Arbitration awards Kosmos Energy Senegal LNG project to BP, as the sole purchaser
Kosmos Energy announced on Tuesday that a Paris arbitrator ruled in favor of BP, preventing Kosmos to sell liquefied gas from the Greater Tortue project off Senegal and Mauritania. LNG is a key part of BP's energy transition strategy. Energy major BP has established a significant LNG pipeline across the globe, including Sub-Saharan Africa. Nigeria, Angola Cameroon, and Equatorial Guinea are already shipping significant volumes. The International Chamber of Commerce was asked to arbitrate a dispute between Kosmos Energy (a U.S. listed oil and gas exploration firm) and BP Gas Marketing (a BP subsidiary) over the planned LNG sales of Phase 1 of GTA.
Ithaca Energy joins Eni's North Sea Business
Ithaca Energy announced on Thursday that it had completed a deal worth 754 million pounds ($993 millions) to purchase nearly all the UK oil and natural gas assets of Eni. This was a 100% share transaction, which created one of the largest independent energy companies operating in the North Sea. Luciano Vasques was the former Eni UK Managing Director and CEO of the combined company. This move is part Eni's'satellite strategy', through which the company has spun off businesses that are focused on certain geographical areas to attract investors.
Gunvor chair: Mideast conflict will not affect oil supply but demand is a concern
The CEO of trading firm Gunvor is confident that the conflict in the Middle East won't impact oil supply. He said this on Tuesday. He told the Gulf Intelligence Energy Markets Forum, held in Fujairah that the situation in the Red Sea and Yemen was a nuisance but not disruptive. The market, he said, was more concerned about the weak demand. Brent crude prices dropped by over 2% on Tuesday, to about $70. The prospect of increased supply and a tepid growth in global demand outweighed concerns regarding the escalating conflict and its impact on crude oil exports from Middle East.
Elliott group seeks to buy Citgo Petroleum from Exxon director
Gregory Goff, Exxon Mobil's board director, recently joined a newly-formed company backed by Elliott Investment Management that is seeking to take control of Venezuelan oil refiner Citgo Petroleum. Citgo and Exxon compete in the motor-fuels and lubricants business. Exxon, the third largest U.S. refiner of oil by capacity, and Citgo are the seventh largest. Goff, a former Exxon executive who joined the company in 2021, as part of an oppositional board of directors, has been named CEO of Amber Energy. This Elliott affiliate was announced as the winning bidder at a U.S. Court auction for shares of Citgo parent PDV Holding.
Elliott group seeks to buy Citgo Petroleum from Exxon director
Gregory Goff, Exxon Mobil's board director, recently joined a newly-formed company backed by Elliott Investment Management that is seeking to take control of Venezuelan oil refiner Citgo Petroleum. Citgo and Exxon compete in the motor-fuels and lubricants business. Exxon, the third largest U.S. refiner of oil by capacity, and Citgo are the seventh largest. Goff, who was part of the dissident board of directors that joined Exxon 2021, was identified on Friday as CEO of Amber Energy. This Elliott affiliate had been selected as the winning bidder at a U.S. Court auction of Citgo parent PDV Holding shares. Exxon did not immediately comment on Goff’s status within the company.
US regulators support Venture Global LNG's claims of equipment failure
U.S. regulators said Venture Global LNG took adequate steps on Friday to correct equipment issues at a Louisiana-based gas-processing facility that have prevented the company from delivering goods to long-term customers under contract for over two years. The Federal Energy Regulatory Commission's findings support the U.S. liquefied gas exporter’s claim that the Calcasieu Pass plant in Louisiana has not been fully commissioned. Venture Global LNG is battling a half-dozen contract arbitration suits from customers regarding the plant's issues.
ConocoPhillips wins approval from a judge for the seizure of payments made to Venezuelan PDVSA
ConocoPhillips won approval from a Trinidad court on Friday to seize payments made by the Caribbean nation to Venezuela's oil company in connection with a proposed offshore project between the two countries. ConocoPhillips is trying to recover money for many years from Petroleos de Venezuela for the expropriation of its assets. PDVSA paid Conoco $700 million as part of a settlement deal, but stopped payments at the end of 2019. Conoco, since then, has tried to enforce arbitral rulings against Venezuelan and PDVSA. This includes a $1.33-billion claim against PDVSA at Trinidad's High Court.
Audit shows Senegal debt and deficit is higher than reported
The Senegal's Economy Minister said that the IMF is currently in discussions with Senegal to discuss corrective measures. An audit showed that the debt and deficit of the country were far greater than what the previous administration reported. Abdourahmane Sarr stated that the audit of Senegal’s finances, ordered by the newly elected President Bassirou Diomaye Faye showed a deficit of over 10% at the end 2023 compared to the 5% reported by the previous government. Faye was elected in April with a massive victory amid public outrage against the former administration of Macky Sall. Investigate the handling of affairs by the previous government.
Sources say that Shell is the preferred bidder in Trinidad for a shallow water block
Three people familiar with the process have confirmed that Trinidad and Tobago has selected Shell as its preferred bidder to bid on a shallow-water block. This bidder beat out BP and EOG Resource. Trinidad and Tobago's natural gas production has declined in recent years, and the country has struggled to supply its petrochemical and liquefied gas plants. The government organized bid rounds and pressed producers to deliver the first output of offshore projects. Shell and BP have the largest stakes in Trinidad's Atlantic LNG Project, which is a 15.3 million ton per year project. They are trying to increase production to ensure feedgas for the trains.
Dallas Fed: Regional oil activity declines but electrification gains.
The Federal Reserve Bank of Dallas reported on Wednesday that oil and gas activity in Texas and Louisiana, as well as New Mexico, decreased in the third quarter. According to executives surveyed, third-quarter oil and natural gas production is mixed. Data suggests that oil production has increased, while gas production has decreased. A fifth of oil executives have said that they have converted their drilling rigs to electric power and are using hydraulic fracturing to reduce pollution. Six percent of oil and gas executives said they plan to electrify production.
EIA reports that US crude, gasoline, and distillate stocks are falling.
The Energy Information Administration reported on Wednesday that U.S. crude, gasoline, and distillate stocks fell last week. The EIA reported that crude inventories dropped by 4.5m barrels, to 413m barrels for the week ending Sept. 20. This was in contrast with the analysts' polled expectations of a 1.4m barrel draw. Last week, U.S. crude oil inventories, excluding the Strategic Petroleum Reserve (SPR), were at their lowest level since April 2022. The EIA reported that stocks at Cushing, Oklahoma's delivery hub for U.S. Crude Futures increased by 116,000 barrels. Following the report, oil futures traded in negative territory.
As a major hurricane approaches, oil companies are evacuating their staff from the Gulf of Mexico.
On Monday, U.S. producers of oil scrambled to evacuate their staff from offshore oil fields in the Gulf of Mexico as the second major storm to hit in two weeks is predicted to ravage them. The U.S. National Hurricane Center stated that a potential Tropical Cyclone over the warm waters of the Gulf could rapidly intensify and become a major Hurricane with winds up to 115 mph (185 kph). According to the NHC, the storm, called Helene, would hit the U.S. at a category 3 on the Saffir Simpson wind scale. It could bring "the risk of life-threatening surges and damaging hurricane force winds" to Florida Panhandle and the Northeastern Gulf Coast.
Hurricanes force oil companies to evacuate staff from the Gulf of Mexico
U.S. Oil Producers scrambled to evacuate their staff from Gulf of Mexico platforms on Monday as forecasters warned that the second major hurricane within two weeks would likely tear into offshore oil fields. The U.S. National Hurricane Center stated that a potential Tropical Cyclone System Nine, near the western tip of Cuba, was expected to intensify into a Hurricane on Wednesday as it moved across the eastern Gulf of Mexico. The NHC says that it could turn into a major hurricane by the time it reaches the Northeastern Gulf Coast. It will bring "the risk of life-threatening hurricane-force winds and damaging storm surge" to the north and northeast Gulf Coast.
Texas sues Biden Administration over lizards' endangered status, citing oil industry threat
Texas Attorney General Ken Paxton filed a lawsuit against the Biden administration Monday, claiming that the decision to declare the dunes sagebrush Lizard as an endangered species could harm property owners or energy production. Paxton, who is a Republican, claimed that the U.S. Fish and Wildlife Service based its final rule, adopted on May 20, on inaccurate data and arbitrary assumptions regarding the future of the lizard. He said that the move would threaten the ability of private landowners to conduct business, while also ensuring the survival of the lizard in its vast geographic range which overlaps the Permian basin…
TotalEnergies begins early production of Fenix gas in Argentina
TotalEnergies, a French oil company, said that natural gas production had begun earlier than expected at Argentina's Fenix off-shore field. The $700-million project was originally scheduled to start operating in November. It has a daily production capacity of 10,000,000 cubic meters of gas, which represents 8% of Argentina’s total production. Gas from the Fenix Field off Argentina's southern coast will be used for domestic consumption. Argentina is trying to reduce imports and deregulate prices locally, encourage energy investment, and become a LNG exporter.
Analysts say that Colombia must develop a natgas plan soon to prevent blackouts.
If it wants to prevent power blackouts in Colombia, the head of Wood Mackenzie’s Americas Gas and LNG division said that Colombia needs to decide quickly whether it will focus on LNG imports or promote domestic production of natural gas. Colombia, under leftist president Gustavo Petro has moved away fracking in order to develop its reserves shale oil and gas. A Santa Marta court judge ordered earlier this month that work be suspended on a major offshore gas project run by Ecopetrol, the state-controlled company and Brazil's Petrobras. Experts say that the two strategies will be crucial to ensuring gas supply to the country's industrial and utility sectors in the future.
Kiewit resolves dispute with Venture Global LNG regarding construction disclosures
The president of Kiewit Energy announced that construction contractor Kiewit settled its lawsuit against Venture Global LNG for disclosing information to Shell about the Calcasieu Pass LNG Plant. Venture Global filed an arbitration complaint against Kiewit on August 2, alleging that it had passed confidential documents to Shell during a dispute regarding the Louisiana LNG plant's commercial production status. Kiewit Energy's President Tom Shelby said, "There are no ongoing lawsuits. The matter has been settled," on the sidelines Gastech's energy conference. Venture Global LNG is in contract arbitration with several long-term customers over the failure to deliver cargoes.
Chevron CEO criticizes Biden's natural-gas policies and says fuel is essential for AI
Michael Wirth, CEO of Chevron, criticized U.S. president Joe Biden on Tuesday for "attacks" on the natural-gas industry. He also emphasized the critical role that Permian gas plays in accelerating the growth of artificial intelligence. The CEO's comments followed new plans by the government to ensure that power-hungry AI centers do not undermine U.S. Climate Goals. The White House created a taskforce on AI Datacenter Infrastructure last week to coordinate policies that align with government economic and environmental goals. Wirth said that the AI industry's energy needs are increasing and it is better to use low-carbon gas than coal.
BP sells its US Onshore Wind Business
BP announced Monday that it plans to sell the U.S. Onshore Wind Energy business. The assets did not align with its growth plan. BP has announced that it will soon begin the process of selling its wind assets. bp Wind Energy is a company with interests in ten operating onshore wind power assets spread across seven U.S. States. William Lin, BP’s executive vice-president for gas and low-carbon energy, said in a press release that he believed the business would be more valuable to another owner. In the last year, several offshore wind companies have canceled or attempted to renegotiate contracts for power projects planned in the U.S.…
Baker Hughes reports that US drillers have added oil and gas rigs to their fleet for the first time in 5 weeks.
Baker Hughes, a leading energy services company, said that the U.S. added the most oil and gas rigs in a week in the past year. In the week ending Sept. 13, the oil and gas rig counts, a good indicator of future production, increased by eight to 590. This is a return to levels seen in mid-June. This was the largest increase since the week of Sept. 15, 2023. Baker Hughes reported that despite this week's increase in rigs the total number was still 51 rigs or 8% below last year at this time. Baker Hughes reported that oil rigs increased by five this week to 488. Gas rigs also rose by three, to 97.
Sources confirm that Egypt has awarded the tender for 20 LNG winter cargoes to Egypt.
Four trading sources said on Friday that Egypt's recent bid for 20 cargoes (cartons) of liquefied gas to cover winter demand following a sharp decline in domestic production has been fully allocated. It is the first time Egypt issued an tender to cover the winter demand since 2018. This year, the most populous Arab nation has become a net gas importer. It has purchased more than 50 cargos and abandoned plans to be a reliable European supplier. The tender was issued on September 12 by the Egyptian General Petroleum Corporation and covered the demand for the 4th quarter of 2024. It was awarded with a deferred-payment basis lasting six months.
Senegal president announces election of parliament on November 17
Senegal's President Bassirou Diomaye Faye dissolved Thursday the national assembly led by the opposition, paving the way for legislative elections to be held early on November 17. Faye, the new leader of the country, stated in an evening speech that it was difficult to work with the Assembly after the members refused to begin discussions on the Budget Law and rejected attempts to dissolve wasteful institutions. Faye announced the voting date in his short speech. The two-year anniversary was marked on Thursday, which is the minimum amount of time before a new election.
Seadrill CEO: Seadrill is looking to acquire assets and engage in M&A.
Seadrill, an offshore drilling contractor, is looking to merge with other companies or buy more assets. John Fredriksen, a Norwegian billionaire, lost control of his company, which was once the largest drilling company in the world by market capital, to creditors after two debt restructurings. Seadrill, a New York-listed company that is now leaner and smaller, wants to purchase distressed assets or players who have "distressed" balance sheets. CEO Simon Johnson said this at an investor conference held in Norway. He said, "We won't do anything crazy.
Rural towns in New Mexico's arid region are looking to treated oil wastewater for a drought solution.
Stephen Aldridge, a pilot of a four-seater helicopter, could see a dozen lagoons filled with toxic waste glistening in the distance between drill rigs. The mayor of Jal, a tiny town nestled in the middle of U.S. Oil Country near the Texas border, saw the scene as a chance to find water for the state that is suffering from a worsening drought. Aldridge belongs to a growing number of New Mexico politicians that want to see the state develop regulations to allow the millions of gallons per day of produced water, which is spewed out along with the Permian Basin's abundant oil and gas, to be used instead of being thrown away.
Argentina's energy investments are expected to reach $15 billion next year due to deregulation
The Energy Secretary Eduardo Rodriguez Chirillo stated on Tuesday that Argentina expects to see investments in its energy sector reach $15 billion by 2025, and $16.5 billion by 2026 as a result of the market deregulation efforts. According to Rodriguez, the estimated expenditure includes additional funds flowing from the country's investment promotion regime RIGI, which Rodriguez estimates ranges from $2 billion to $25 billion per year. At an event hosted by Shell, Rodriguez said that the measures would lead to a more favorable business climate and attract investment. "We're at record production," Rodriguez said.
British Business – Sept 10,
These are the most popular stories in the British business pages. These stories have not been verified and we cannot vouch for the accuracy of these reports. BP engineers will now be required to take faster decisions based on AI-generated information about oil and natural gas exploration, following a recent agreement with Palantir Technologies. Hostmore, a British restaurant operator, announced on Monday that it had dropped its plans to purchase pub chain TGI Fridays following the removal of Hostmore as manager of TGIF Funding. The British…
ADNOC will supply Indian Oil with LNG over a 15-year period
Abu Dhabi Media Office announced on Monday that the Abu Dhabi National Oil Company had agreed to a 15-year contract with Indian Oil for 1 million metric tonnes of liquefied gas per year. Government media said that the LNG will mostly come from ADNOC Ruwais LNG Project. ADNOC is a company with big ambitions. It has big plans for gas and LNG. Along with renewable energy, petrochemicals, and petrochemicals, it considers these as the pillars of its future growth. This puts it in direct competition with rivals Qatar, one of world's largest LNG exporters, and Saudi Arabia who also has LNG ambitions.
Sources: Exxon pulls out of race to purchase stake in Namibian oil block from Galp
Exxon Mobil pulled out of the race for half of Galp Energia’s stake in a major oil discovery in Namibia, which has drawn interest from other top energy companies. Sources have previously stated that more than 12 oil companies, including Exxon Shell and Brazil's Petrobras, had expressed an interest in Galp’s 40% stake in Mopane's offshore discovery. Galp also proposes that the buyer operates the field. Exxon did not give any explanation for its withdrawal. Sources claim that other companies have engaged with Galp in the sale. Exxon Galp has declined to comment.
US drillers have cut oil and gas drilling rigs in the fourth week of a row, according to Baker Hughes
Baker Hughes, a leading energy services company, said that the U.S. firms have cut back on the number of natural gas and oil rigs for the fourth consecutive week for the first since late June. The number of oil and gas drilling rigs, a good indicator of future production, dropped by one to 582 during the week ending Sept. 6, which is the lowest level since June. Baker Hughes reported that oil rigs remained at 483 this past week while gas rigs dropped by one to 94. This is their lowest level since April 2021. Oil and gas rig counts dropped by about 20% in the year 2023, after increasing by 33% and 67% respectively in 2022, 2021 and 2022.
Sources say Egypt is seeking 20 LNG cargoes to meet winter demand, as the gas crisis worsens.
Three trading and industry sources confirmed on Friday that Egypt issued a tender for 20 cargoes (cartons) of liquefied gas to meet the demand for electricity during winter, despite a sharp decline in domestic production. It is the first time Egypt issued an tender to cover the winter demand since 2018. In order to be a reliable gas supplier to Europe, the most populous Arab nation has reversed its recent position of being an exporter by buying over 30 cargoes of natural gas to cover summer demand. The Egyptian General Petroleum Corporation's (EGPC) tender closes on September 12.
Kazakhstan asks for a delay in maintenance of the giant Kashagan Oilfield.
Trading sources familiar with the matter claim that Kazakhstan's Energy Ministry has asked shareholders to delay next year's maintenance, which was scheduled to start at the site on October 1st. Two sources claim that the ministry requested a delay in a letter sent to the partners of the North Caspian Operating Company consortium (NCOC), which operates Kashagan. The letter cited the fear of natural gas shortages during the winter season as the main reason. They added that a decision is expected on September 10. In October, the field that produces 400,000 barrels of oil per day was to be closed for 28 days to perform maintenance.
Rystad reports that US oil and gas M&A will reach a record in 2023, with the focus shifting away from Permian.
Analysts at Rystad, a consultancy, said that the appetite of U.S. producers for deals is close to last year's level, as a rise in interest in smaller oilfields offsets sluggish activity in the Permian Basin, which produces most oil. According to Rystad's analysis of the U.S. market through August, nearly $100 billion was spent on mergers and purchases (M&As) by U.S. producers. Another $46 billion worth of assets is currently up for sale. Rystad says that a record-breaking $155 billion in production and exploration deals were signed by 2023.
Perenco will acquire mature gas fields from BP
BP Trinidad and Tobago has signed an agreement with Perenco T&T for the divestment of its Immortelle offshore gas field and production facilities. The oil major said this in a Monday statement. It said that the agreement includes undeveloped resources in the Parang field. All fields except Parang have been in operation since 1993, and produce about 30 thousand barrels equivalents of oil per day. According to the agreement, bpTT is required to buy gas from these fields in order for it meet its contractual obligations. This sale is part of a broader BP strategy to streamline operations and concentrate on assets with higher value.
Min says that seismic work will begin on gas fields shared between Trinidad and Venezuela.
Stuart Young, Trinidad and Tobago's energy minister, said on Facebook on Friday that seismic work is expected to begin in the next few days at the offshore gas fields shared between Venezuela and Trinidad and Tobago. Venezuela issued a license in July allowing for the development of the Cocuina Field, its side of reservoir. In early 2014, the U.S. also approved this project. It will be developed by Britain’s BP and Trinidad’s National Gas Company. Cocuina and Manakin, whose Venezuelan part belongs to the Plataforma Deltana offshore gas project, which is currently idle, have 1 trillion cubic feet in proven reserves of gas.
Shell to make large cuts in its oil exploration division: sources
Shell will cut its oil and natural gas exploration and production workforce by 20%, according to company sources. CEO Wael Sawan is extending his cost-saving efforts to this highly profitable division following the deep cuts made in renewables and low carbon businesses. Sources said that the restructuring of the exploration, wells development, and subsurface units would result in hundreds of job losses around the globe, with the greatest impact in offices in Houston, The Hague, and Britain. Sources added that consultations will be held with the employee representative bodies to determine the exact 20% reduction.
Sources say Shell plans to make large cuts in its oil exploration division.
Shell will cut its oil and natural gas exploration and production workforce by 20%, according to company sources. CEO Wael Sawan is extending his cost-saving efforts to this highly profitable division following the deep cuts made in renewable energy and low-carbon businesses. Sources say that the restructuring of the exploration, wells development, and subsurface units is expected to result in hundreds of job losses around the globe, but will be most felt in Britain and The Netherlands. Sources added that consultations will be held with the employee representative bodies to determine the exact 20% reduction.
Shell to make large cuts in its oil exploration division: sources
Shell will cut its oil and natural gas exploration and production workforce by 20%, according to company sources. CEO Wael Sawan is extending his cost-saving efforts to this highly profitable division following the deep cuts made in renewables and low carbon businesses. Sources say that the restructuring of the exploration, wells development, and subsurface units is expected to result in hundreds of job losses around the globe, but will be most felt in Britain and The Netherlands. Sources added that consultations will be held with the employee representative bodies to determine the exact 20% reduction. Shell's spokesperson refused to comment on the figures.
US crude, gasoline stockpiles fall, distillates build, EIA data shows
The Energy Information Administration (EIA), which released its report on Wednesday, said that the U.S. crude and gasoline inventories decreased last week while distillate stocks increased. Data showed that crude stocks dropped by 846,000 barges to 425.2 million bars in the week ending August 23. This was far below what analysts had predicted in a poll, which expected a draw of 2.3 million barrels. The EIA reported that crude stocks at Cushing, Oklahoma's delivery hub, fell by 668,00 barrels during the past week. The global benchmark Brent and U.S. Crude futures both extended their losses after the data revealed the lower than expected draw.
CNOOC China posts record profit in the first half of 2018 on robust output growth
CNOC, the Chinese offshore oil-and-gas major, posted a record profit for the first half of this year on Thursday. This was largely due to higher oil prices and increased output. CNOOC reported in a filing to the Hong Kong Stock Exchange that net profit attributable shareholders increased 25% to 79.73 yuan (US$11.19 billion). CNOOC's oil and gas production increased by 9.3%, to 362.6 millions barrels of equivalent oil. This was due to the expansion of its reserves. Among the key discoveries made during the reporting period were Lingshui36-1, the first ultra-deepwater field in the South China Sea and the Bozhong26-6 and Penglai9-1 oilfields.
Mexico's new president appoints an energy expert to lead Pemex
On Monday, Mexico's new president nominated Victor Rodriguez as the next executive director of the heavily indebted oil company Pemex. This was one of the last nominations to the politically and financially volatile energy sector. At a press event, Rodriguez stated that working with the Finance Ministry would be crucial in stabilizing his company, the most indebted of all oil companies in the world. He also stressed the importance of producing less polluting fuels. The cabinet of President-elect Claudia Sheinbaum who assumes office in October has been announced. It is a mixture of new faces and holdovers from her mentor's administration.
US drillers reduce oil and gas rigs in the US for a second consecutive week - Baker Hughes
Baker Hughes, a leading energy services company, said that the U.S. firms have cut back on the number of natural gas and oil rigs for a second consecutive week for the first since late June. The number of oil and gas drilling rigs, a good indicator of future production, dropped by one in the week ending August 23. Baker Hughes reported that the total number of rigs is 47 or 7% lower than it was at this time last. Baker Hughes reported that oil rigs remained at 483 in this week's report, while gas-rigs dropped by one to 97. Oil and gas rig counts dropped by about 20% in the year 2023, after increasing by 33% and 67% respectively in 2022, 2021 and 2022.
Jiaao, a biofuel company in China, has brought BP on board as an investor for its SAF unit
Zhejiang Jiaao Enprotech, a Chinese biofuel company, announced on Friday that its sustainable aviation (SAF), unit had entered into an investment agreement with BP. This is the first time a global oil giant has invested in China's green aviation fuel. BP will invest 354 million yuan (49.56 millions) in Lianyungang Jiaao Enproenergy Co., which is building a 500,000 tons per year SAF facility in the eastern coast city of Lianyungang. Jiaao was one of the first investors in China to invest more than $1 billion in turning waste cooking oil, which is a high-carbon fuel, into aviation fuel that can be exported and used for domestic use.
UK faces legal action for new North Sea oil and Gas Licences
A marine conservation group is challenging in court the decision of Britain to issue new oil and natural gas exploration licenses. The organization claims that ministers failed to take into account the impact of these licences on marine life. Oceana UK has filed a lawsuit against 31 licenses granted by the previous British government to the North Sea Transition Authority in May of this year, as part of its latest round for oil and gas licensing. A licence for exploration does not always lead to a producing field. However, environmental groups…
Senegal establishes commission to review oil contracts
On Monday, Senegal's Prime Minister Ousmane sonko announced that the country had set up a panel of experts in legal, tax and energy sectors to review oil and gas contracts, and to work on rebalancing them to serve national interests. After assuming office, President Bassirou Diomaye Faye - who had defeated the candidate of the ruling coalition in a landslide win in March - ordered an audit of oil, gas, and mining sectors and promised to renegotiate contract terms with foreign operators if necessary. Authorities haven't shared any details about the audit, or provided updates on any renegotiation plan.
Orlen, a Polish oil company, signs a one-year contract with BP for 6 mln tonnes of oil
According to a Monday announcement, the Polish refiner Orlen has agreed to receive 6 metric tonnes of oil per year from British energy giant BP. Orlen, a Polish refiner, said that the deliveries of North Sea crude oil will cover approximately 15% of Orlen’s needs and that both companies are willing to work together on future joint projects. In a press release, BP Polska's CEO Bogdan Kucharski stated that "we count on Orlen for future projects aimed to accelerate energy transformation". Poland produces most of its power from coal but plans to reduce this share due to increasing carbon emissions costs.
US drillers reduce oil and gas rigs a second time in 3 weeks - Baker Hughes
Baker Hughes, a leading energy services company, said that U.S. firms have cut oil and gas rigs this week for the second time within three weeks. The number of oil and gas rigs, a good indicator of future production, dropped by two in the week ending August 16. Baker Hughes reported that the total number of rigs is down by 56 or 8.7% from this time last year. Baker Hughes reported that oil rigs dropped by two this week to 483 while gas rigs increased by one to 98. Oil and gas rig counts dropped by about 20% in the year 2023, after increasing by 33% and 67% respectively in 2022, 2021 and 2022.
Venture Global doesn't need any more time from BP to begin production, BP says to regulators
BP Plc, the oil and gas producer, told federal regulators that it had reviewed confidential documents and did not believe Venture Global LNG needed more time to start commercial production. Calcasieu Pass, a plant owned by Venture Global LNG, has been the subject of a longstanding dispute involving BP and Shell regarding access to liquefied gas produced at the plant. Venture Global will become the second-largest U.S. super chilled gas exporter when it begins producing its new 20,000,000 metric tons per year (MTPA) at the end of this year. This will be the second LNG plant, and it will strengthen the U.S.'s position as the largest LNG exporter in the world.
EIA: US crude oil inventories are rising, but fuel consumption decreased last week.
The Energy Information Administration reported on Wednesday that U.S. crude stockpiles unexpectedly rose last week while gasoline and distillate stocks fell. The EIA reported that crude inventories increased by 1.36m barrels, to 430.7m barrels for the week ending August 9, compared with the 2.2m barrels analysts expected in a poll. The EIA reported that crude stocks at Cushing, Oklahoma's delivery hub, fell by 1.7 millions barrels. Crude futures continued to lose money following the unexpected build. Brent futures traded at $80.32 per barrel at 10:48 am, down 37 cents. ET (1448 GMT), whereas U.S. crude dropped 63 cents to $76.72 a barrel.
Sources say that Brazil's Petrobras is looking to add another oil field in Buzios, according to sources
Three sources familiar with the matter said that Petrobras, the state-run oil company in Brazil, has started studies to implement a new platform for oil production on the Buzios oil field. A source said that each Buzios platform costs an average of $3.5 billion. The vessel under consideration would be a floating production storage and offloading (FPSO) vessel, which is intended to increase gas production in Buzios. Petrobras has not yet commented. Buzios, which is located in the Santos Basin, is Brazil's second-largest field by production.
Analysts say that new drilling technology could bring billions of barrels worth of oil within reach.
Analysts said that a breakthrough in oil production which producers claim can safely tap fields with ultra-high pressure could bring up to 5 billion barrels previously unaccessible crude into production. Chevron announced on Monday that it had successfully pumped the first oil out of a field with a pressure of 20,000 pounds per sq. inch, which is a third higher than any previous well. The $5.7 billion Anchor Project uses specially-designed equipment from NOV Dril-Quip, and drillships by Transocean. The No. The No. The 2010 Macondo blowout in the Gulf of Mexico killed 11 workers and contaminated fisheries. It also covered beaches with oil.
Exxon reports 59 job losses at Texas agency following the acquisition of Pioneer
Exxon Mobil laid off 59 employees following the acquisition of Pioneer Natural Resources for $60 billion, according to an application filed with the Texas Workforce Commission. Exxon has confirmed that more than 1,500 Pioneer workers will be offered new jobs as a result of the merger. Around 2,200 people worked for Pioneer. According to the filing, 39 workers were laid off from Las Colinas in Irving, Texas - a Dallas suburb that was home to Pioneer Natural Resources’ former headquarters. Exxon didn't say how many people of the 59 would be laid off or how many would get new jobs with the company.
Chevron achieves industry-first in ultra-high-pressure oil field
Chevron announced on Monday that it had achieved a breakthrough in technology by producing the first oil under extreme pressures from a U.S. Gulf of Mexico Field. The $5.7 billion project called Anchor ushers in a new era of deepwater production that was previously off limits due to the lack of equipment capable of coping with pressures up to 20,000 pounds square inch. Chevron, along with TotalEnergies, expects the Anchor project to be productive for at least 30 years. The floating platform can pump up to 75,000 bbls of oil per day and 28 million cu ft of natural gas. The field is located about 140 miles away (225 km) from the coast of Louisiana.
Kemp: Oil traders focus on economy, not dwindling stock.
The oil prices have fallen in recent weeks, as traders focus their attention on a potential slowdown of the major economies. At the end of the month of June, the Organization for Economic Cooperation and Development's (OECD) advanced economies had 2,761,000,000 barrels of crude and refined product in their commercial stocks. The stocks were 120 million barrels below the seasonal average of the past ten years (-4%, or -7.71 standard deviations), and the deficit was now 74 million barrels higher than the previous end-of-March (-3%, or -4.47 standard deviations). According to the Short-Term Energy Outlook, prepared by the U.S.
Sources say that Petrobras has obtained environmental licenses for Brazil's oil production to increase.
Three people familiar with the matter said that Brazil's state oil company Petrobras obtained environmental permits to expand production at two offshore fields and one vessel could start earlier than expected. Petrobras can now increase production at the Mero and Buzios oil fields. Buzios will benefit from the early launch of the FPSO vessel Almirante Tamandare (floating production, storage and offloading). The fields are located in the Santos Basin of the Atlantic Ocean. Petrobras and Brazil’s environmental agency Ibama didn't immediately comment on these licenses. Petrobras stated that the FPSO will still start production in 2025.
Kemp: Oil traders focus on the economy, not dwindling stock
The oil prices fell in recent weeks, as traders looked past the depletion of global inventories and focused on a future threat that could be posed by the possible slowdown of major economies.At the end of the month of June, the Organization for Economic Cooperation and Development's (OECD) advanced economies had 2,761,000,000 barrels of commercial crude and refined product stocks.The stocks were 120,000,000 barrels below the seasonal average of the past ten years (-4%, or -7.71 standard deviations), and the deficit was now a whopping 74,000…
Venture Global LNG Accuses Kiewit of Sharing Confidential Documents with Shell
Venture Global LNG, a U.S.-based liquefied gas company, sued Kiewit Construction on Friday for allegedly passing confidential documents to Shell Plc.Calcasieu Pass, a plant owned by Venture Global LNG in Louisiana has long been the subject of a dispute involving BP Plc and Shell over the access to LNG produced at the facility.Venture Global filed with the New York State Supreme Court stating that "Kiewit had been entrusted this information in order to facilitate its construction of a natural-gas liquefaction terminal and export facility in Cameron Parish in Louisiana, developed by Venture Global."Venture Global stated that the confidential information includes proprietary
Sources say that the new'supermanager' of Brazil's Petrobras has been tasked to boost investment.
Sources said that the Brazilian oil giant Petrobras appointed Wagner Victer as a "super manager" to increase capital expenditures in order to satisfy President Luiz-Inacio Lula Da Silva's demands. Lula sees Petrobras as a vehicle for creating jobs and developing the economy, but in recent years the company faced obstacles to investing due to environmental licensing and supplier issues. Two sources with knowledge of the situation said that Victer would oversee and coordinate the 102 billion dollar investment plan 2024-2028. This year alone, the investment plan is estimated to be $18.5 billion, mainly in exploration and oil production.
Australian regulator: No decision on Woodside Browse Gas Project yet
Western Australia's environmental regulator announced on Monday that it will release recommendations in 2025 on Woodside Energy’s Browse gas project. A newspaper had reported earlier this week that the large project could be rejected. This $20.5 billion gas project off the coast of Western Australia, the largest in the country but still untapped resource has been on the drawing boards for years. The Sydney Morning Herald reported on Monday that the Western Australian Environmental Protection Authority (EPA) sent preliminary comments to the company, in February, calling the proposed terms "unacceptable".
Oil and Gas Rig Numbers Drop in the US
U.S. energy firms today cut the number of oil and natural gas rigs operating for the first time in three weeks, energy services firm Baker Hughes stated in its closely followed report on Friday.The oil and gas rig count, an early indicator of future output, fell by three to 586 in the week to Aug. 2. the overall rig count down 73, or 11%, below this time last year. Baker Hughes said oil well were consistent at 482 this week, while gas rigs fell by three to 98. focused on paying for financial obligation and improving shareholder returns rather of raising output. U.S. while U.S. gas futures were down about 24 %up until now in 2024 after plunging by 44% in 2023.
US Energy Firm Payouts to Oil Investors Top Exploration Spending for First Time
Top U.S. energy companies last year paid out more of their earnings to shareholders than they invested in new oil and gas fields for the first time, according to a report released on Tuesday.The outlook for stronger energy prices has not changed the focus on investor returns from the U.S. industry, according to the report's authors, Ernst & Young LLP. U.S. energy companies have been focused on regaining favor with investors after years of overspending on production growth hurt returns and put them in the doghouse.The returns focus has lifted the energy sector to about 4.5% of the S&P 500's market valuation…
OMV Petrom Makes Largest Crude Oil Discovery in Decades
Romanian oil and gas group OMV Petrom, majority-controlled by Austria's OMV, said on Tuesday it discovered new crude oil and natural gas deposits equal to about three quarters of its overall 2022 production.The deposits are the largest crude oil discovery OMV Petrom has made in decades, it said, and were found in southern Romania holding over 30 million barrerls of oil equivalent (boe) of recoverable resources."The new discoveries will contribute to reducing the decline of our production and to the continuity of the supply of essential products for the economy…
Equinor Finds New Oil Near North Sea Fram Field
Equinor and partner Wellesley report discovering oil in the Troll and Fram area in exploration wells 35/10-7 S and 35/10-7 A in the Toppand prospect. Preliminary calculations of the expected size indicate between 3.3 and 5.2 million standard cubic meters of recoverable oil equivalent, or around 21–33 million barrels of recoverable oil equivalent.“Our exploration activity is central for our ambitions at the Norwegian continental shelf. We are pleased to see that our success in the Troll- and Fram area continues. We also regard this discovery to be commercially viable and will consider tying it to the Troll B or Troll C platform.
Williams Inks Deal for Whale Deepwater Transport Services
Williams (NYSE: WMB) reached an agreement with Shell Offshore Inc. and Chevron U.S.A. Inc. to provide offshore natural gas gathering and crude oil transportation services as well as onshore natural gas processing services for the Whale development located approximately 10 miles from the Shell-operated Perdido host facility.Williams plans to expand its existing Gulf of Mexico offshore infrastructure via a 25-mile gas lateral pipeline build from the Whale platform to the existing Perdido gas pipeline and a new 125-mile oil pipeline to the existing Williams-owned GA-A244 junction platform.
Buyers Reportedly Line-up for a Crack at Seadrill
Noble Corp and a consortium that includes Transocean Ltd and Dolphin Drilling are competing to acquire the assets of Seadrill Ltd, the bankrupt offshore oil driller controlled by Norwegian-born tycoon John Fredriksen, people familiar with the matter said on Tuesday.Seadrill is trying to emerge from its second U.S. Chapter 11 bankruptcy in four years: like many in the industry, it expanded its drilling rigs too aggressively in the mid-2010s to withstand a subsequent plunge in energy prices and rig hire rates. It is negotiating a deal to restructure its more than $7 billion debt pile in exchange for handing company control to its creditors.U.S.
WTI-Brent Spread Narrows as Oil Market Tightens
The price gap between the world's two most actively traded oil contracts narrowed to its lowest in more than seven months, demonstrating that U.S. oil output is still in the COVID-19 doldrums with the market likely to remain undersupplied.North Sea Brent futures traded at a premium of $1.89 to U.S. West Texas Intermediate (WTI) on Friday, its narrowest since November 11."We believe that the recent narrowing of the WTI-Brent price spread ... is noteworthy, with North America taking the mantle from Chinese demand or OPEC cuts and disruptions in tightening the global oil market…
Oil Drillers, Bitcoin Miners Bond over Natural Gas
On U.S. oil patches stretching along the Rockies and Great Plains, trailers hitched to trucks back up toward well pads to capture natural gas and convert it on the spot into electricity.The trailers - carrying pipes, generators and computers - are called “mining rigs.” But their owners aren’t there to drill for oil. They are using stray natural gas unwanted by oil companies to power their search for another treasure: cryptocurrencies like Bitcoin.Cryptocurrencies are virtual coins exchanged without middlemen, such as central banks, to purchase goods and services. Extracting the currency from cyberspace, however, requires vast amounts of often expensive electricity.
Biden to Target Drilling, Fossil Fuel Subsidies in New Climate Orders
President Joe Biden was set on Wednesday to sign executive actions to combat climate change, including pausing new oil and gas leases on federal land and cutting fossil fuel subsidies as he pursues green policies in stark contrast to those of his predecessor Donald Trump.The orders map out the direction for the Democratic president's climate change and environmental agenda and mark a reversal from Trump, a Republican businessman-turned-politician who sought to maximize U.S. oil, gas and coal output by removing regulations and easing environmental reviews.Biden's focus on climate change has cheered international partners and environmental advocates…
US Oil Rig Count Rises for First Week Since March
U.S. energy firms cut the number of oil and natural gas rigs operating to a record low for a 12th week in a row, although they added one oil rig in the first weekly increase since March as a recovery in crude prices tempt some producers back to the well pad. The U.S. oil and gas rig count, an early indicator of future output, fell by two to an all-time low of 251 in the week to July 24, according to data on Friday from energy services firm Baker Hughes Co going back to 1940.That was 695 rigs, or 73%, below this time last year.U.S. oil rigs rose to 181…
Shale Pioneer Chesapeake Energy Files for Bankruptcy
Chesapeake Energy Corp filed for Chapter 11 on Sunday, becoming the largest U.S. oil and gas producer to seek bankruptcy protection in recent years as it bowed to heavy debts and the impact of the coronavirus outbreak on energy markets.The filing marks an end of an era for the Oklahoma City-based shale pioneer, and comes after months of negotiations with creditors. Reuters first reported in March the company had retained debt advisers.Chesapeake was co-founded by Aubrey McClendon, an early and high profile advocate of shale drilling who died in 2016 in a fiery one-car crash in Oklahoma while facing a federal probe into bid rigging.
Norway Oil Companies Slash Investment Plans
Norwegian oil and gas investment, a key economic driver, is expected to decline sharply in 2021 after rising less than previously anticipated this year, an industry survey by the national statistics agency (SSB) showed on Thursday.The biggest drop will come in the exploration for new reserves and in spending on development plans, while ongoing oilfield construction work continues largely as expected, the data showed.The closely watched forecasts, based on data from oil companies, show 2020 investment plans have been cut to 180.3 billion Norwegian crowns ($19 billion) from 185.4 billion seen in February…
Nigeria Launches Licensing Round for Marginal Oilfields
Nigeria has launched its first licensing round for marginal oilfields in nearly 20 years, the Department of Petroleum Resources (DPR) said on Monday, despite court rulings last week that barred some of the fields from being auctioned.Marginal fields are smaller oil blocks that are typically developed by indigenous companies. The new licensing round is the first marginal field round since 2002, which the country hopes will boost oil output and bring in much-needed revenues from fees associated with the licenses."A total of 57 fields located on land…
Melbana Gets More Time to Find Beehive Drilling Partner
Australian oil and gas company Melbana Energy has been given more time to work on its Beehive offshore prospect in the Bonaparte Basin off W. Australia.The company said Friday that the National Offshore Petroleum Titles Administrator had approved Melbana's application for a 12-month suspension of the work program conditions in respect of Permit Year 3 (with a corresponding extension of the permit term) for the WA-488-P block containing the Beehive prospect.As a result, Permit Year 3 now ends on 21 December 2021 and the permit term will end…
US Proposal Would Allow Oil and Gas Drillers to Delay Royalty Payments
The U.S. Department of Interior has proposed allowing oil and gas companies to delay royalty payments due to the impacts of the new coronavirus pandemic.According to the web site of the White House Office of Management and Budget, Interior's Office of Natural Resources Revenue on May 20 sent a proposed rule titled "ONRR Reporting and Royalty Payment Delay Related to Coronavirus Disease 2019 (COVID-19)." Details of the proposal were not available.Interior Department officials were not immediately available for comment.(Reporting by Nichola Groom, Editing by Franklin Paul)
Norway: OMV Gets NPD Nod for Hades Drilling
Austrian oil and gas firm OMV has been granted a permit for the drilling of the offshore well 6506/11-12 S in the Norwegian Sea.The company's Norwegian subsidiary OMV Norge will use the Island Innovator semi-submersible to drill the appraisal well at the prospect named Hades in the production license 644.OMV Norge is the operator with an ownership interest of 30 percent. The other licensees are Equinor (40 percent), DNO (20 percent), and Spirit Energy (10 percent).The well will be drilled about 4 kilometers west of the Morvin field. This is the second exploration well to be drilled in the license.The drilling permit…
Petrofac Starts Rubie and Renee P&A Work
UK oilfield services firm Petrofac has kicked off the plugging and abandonment work on the Rubie and Renee fields in the North Sea using Awilco's WilPhoenix rig.Petrofac won the Rubie and Renee P&A contract with Hess in August 2019.Over the next three months, Petrofac will provide Well Operator, Well Engineering, and Project Management services to decommission four wells within the Rubie and Renee fields, 200km northeast of Aberdeen.Petrofac is responsible for detailed planning, direct procurement, and management of all sub-contracted services…
NOIA: U.S. Offshore Drilling Ban Would Crush Jobs, Govt Revenues
A U.S. ban on new offshore drilling in the Gulf of Mexico, which presidential hopeful Joe Biden promised to enact if elected, would lead to hundreds of thousands of job losses and billions in lost government revenue over 20 years, an offshore drilling industry group said on Tuesday.The report by the Washington-based National Ocean Industries Association comes as Biden and other Democrats hoping to unseat Republican President Donald Trump in November's election have vowed to shift the country away from planet-warming fossil fuels to help avert the worst impacts of climate change."It's important for the public and policymakers to understand the ramifications…
China to Boost Energy Reserve Capacity, Support Unconventional Gas Exploration
China said on Friday it will bolster the capacity of the country's energy reserves and offer lower gas and electricity charges to key industries, as it looks to ensure energy supply and offset the impact of the coronavirus pandemic.In energy announcements on the first day of the parliament, known as the National People's Congress (NPC), authorities also pledged to boost the country's oil and gas network and continue to support exploration for unconventional gas reserves.The National Development and Reform Commission (NDRC) said in a statement it would push forward construction of crude oil reserves.The coronavirus pandemic has led to a slump in demand for crude oil…
US Grants Royalty Relief to Hard-hit Drillers
The Trump administration has granted royalty relief to several drilling companies producing oil and gas on federal lands in recent weeks, according to a government database, as the industry seeks help weathering low energy prices.The move shows drillers are taking the government up on its offer to consider royalty cuts on a case-by-case basis after the Interior Department rejected industry calls for blanket relief covering all federal leases.The U.S. Bureau of Land Management approved royalty rate cuts on at least 76 federal drilling leases in the state of Utah in recent weeks, according to the database.
Rystad: Oilfield Services Firms' Market Cap Halved. Offshore Drillers Have it Worst
Oilfield services companies have collectively lost almost half of their market capitalization, hit by the combination of the coronavirus pandemic and low oil prices, with offshore drillers, in particular, the most affected, Norway's Rystad Energy has said in its analysis released on Friday."It is widely acknowledged that the oilfield services sector (OFS) is the energy world’s worst-hit market from the Covid-19 pandemic. What is staggering is the extent that the capitalization of listed OFS companies has fallen," Rystad said.Analyzing a representative group of 116 listed OFS companies…
Transocean Disposing Of Two Semi-Submersibles
Offshore drilling contractor Transocean is disposing of a pair of floating drilling units, the ultra-deepwater semi-submersible drilling rig GSF Development Driller II, and the midwater semi-sub Transocean 712.The 2005-built GSF Development Driller has been stacked since 2016.According to the company's recent fleet status report, the 1983-built Transocean 712 was stacked in April 2020, having worked for Chrysaor. The rig's contract will Chyrsaor will be substituted with either the Paul B. Loyd or the Transocean Leader rig."The company expects…
