Neptune Energy announced the successful acquisition of the 3D broadband seismic survey of the extensive Petrel field located in the Bonaparte basin of Australia.
The 2,900 km2 survey significantly expanded the area of seismic data Neptune holds and increased the quality and breadth of data.
Initial findings from the survey have been received with the remaining processed data due to be delivered later this year.
Internal analysis and interpretation of the acquired data will allow Neptune and its partners to plan for the future.
“The seismic survey was the first significant investment in this part of the Bonaparte basin in more than five years and it continues to present exciting future growth opportunities for Neptune offshore Australia. Our deeper understanding of the area also positions us well for the upcoming offshore petroleum exploration release later this year.”
The Polarcus Asima carried out the survey which began towards the end of 2019.
Neptune, on behalf of the Petrel JV, entered into an exclusive data licensing agreement with Polarcus Asia Pacific Pte Ltd, which acquired the Petrelex 3D seismic survey.
Neptune holds 54 per centof the project and, alongside its partners Santos (40.25 per cent) and Beach Energy (5.75 per ceny), invested in new broadband technology over an expanded area to enhance understanding of the potential resources Petrel holds.
Venture Global LNG announced the successful raising of the second LNG storage tank roof at the company’s Calcasieu Pass LNG export facility in Cameron Parish, Louisiana, US.
This major project milestone was completed nearly three months ahead of schedule and comes a mere nine months after the project’s final investment decision (FID).
The 1.8 million pound tank dome and assembly were air raised into place on Tuesday, May 19th, less than a month after the raising of the first LNG tank roof on April 24th. Air raising allows for better and safer access as well as a faster construction schedule, as the roof can be erected concurrently with the shell. The tank dome was raised in one hour and 20 minutes using 0.25 psi of pressure. CB&I Storage Tank Solutions, a division of McDermott International, Inc., is constructing the project’s dual 200,000 m3 tanks.
Venture Global also said in a press statemen that the first modules for the export facility’s 720 MW combined cycle gas turbine power plant have now arrived at site. Key components of the gas insulated switchgear (GIS) have been successfully installed on schedule, and the site has also begun receiving and setting modules for the air cooled condenser (ACC).
Aberdeen Drilling Consultants (ADC), a specialist rig inspection company, has launched a resilience audit to help the global oil and gas industry maintain safe operations by protecting against the spread of COVID-19 on offshore installations.
In a time when it feels like COVID-19 advice is constantly evolving and can come from many sources, ADC has combined guidance from the world’s leading advisory, regulatory and legislative bodies, including the Health & Safety Executive (HSE) and Oil & Gas UK, with its 35 years of global operator and drilling contractor experience to produce a COVID-19 Resilience Audit.
The audit, which was developed in collaboration with ADC’s operator clients, is a one-stop-shop to offer the industry the opportunity to adapt successfully to the new working environment, protect its workforce and maintain successful operations.
The audit provides a holistic review of life offshore, from best practices in serving food and social distancing during helicopter transfers to team communications and the safe management of toolbox talks. The audit is included within ADC’s TRAMS digital rig audit management system but is also available separately and has been used with a number of clients so far.
ADC Director, Austin Hay said: “In these uncertain times, and with the world coming to terms with COVID-19, ADC is doing what it can to support our clients and others in helping prevent the spread of the COVID-19 on offshore installations across the globe.
“The virus has hit our industry hard at a time when many felt they were on the road to recovery following the downturn. However, our COVID-19 Resilience Audit, which combines new policies, distancing measures and recommendations, including advice from bodies such as Oil & Gas UK, the HSE and governments, gives clients the assurance that operations can continue, maintenance can be managed and risks reduced. This will allow them to safely carry on delivering successful operations on time and on budget.”
ADC’s COVID-19 Resilience Audit covers policies and procedures; communication; operational planning and risk management; management of change; emergency response; competence; resourcing; maintenance and inspection.
Mr Hay added: “Naturally, the health and wellbeing of our own specialists are of paramount importance to us when they travel offshore, or to a shipyard to one of the projects we are part of. But our business focus has always been to ensure drilling operations can continue as smoothly as possible. Reduced staffing levels due to COVID-19 has both health and productivity implications for an asset. We can help companies avoid unnecessary risks and thereby maintain operations by ensuring they comply with the most up-to-date best practices.”
Total confirmed its commitment to completing the sale of its UK North Sea non-core assets, first announced in July 2019, and that it had renegotiated financial terms with private equity investor HitecVision.
In a press statement, the French oil giant said that: “Reflecting recent significant market volatility, Total and Norway-based private equity investor HitecVision have successfully renegotiated the financial terms of the deal to respond to the current environment – while Petrogas is no longer part of the transaction.”
“We have worked closely with HitecVision and its portfolio company NEO Energy to reconfirm our mutual commitment to completing the deal. The agreed revisions respond to current market conditions while retaining the majority of the value of the transaction. The structure of the consideration and phasing of payments has been modified, including interest-bearing vendor financing and earnout arrangements,” declared Jean-Pierre Sbraire, Chief Financial Officer at Total. “We look forward to progressing swiftly to completion and for NEO Energy to take over operations. We are confident that this sale is the right thing for both parties and for the business and its employees.”
Total and NEO Energy have developed detailed transition plans to deliver a smooth handover of operations upon completion, while allowing NEO to focus on embedding planned operating efficiencies and growth plans as rapidly as possible.
Subject to regulatory approvals, the parties expect to complete the transaction by the third quarter 2020.
Malaysia's Petronas has completed the farm-down of 50 per cent of its participating interest to ExxonMobil from a 100 per cent participating interest in Block 52, offshore Suriname.
Block 52 is located north of the coast of Paramaribo, Suriname’s capital city, and is situated in the prospective Suriname-Guyana basin where several major hydrocarbon discoveries were made recently. Block 52 covers an area of 4,749 km² with water depths ranging from 50 to 1,100 meters.
Subsequent to the farm-down the Petronas subsidiary, Petronas Suriname Exploration & Production B.V. (PSEPBV), as the operator of Block 52 holds 50 per cent equity, while ExxonMobil holds the remaining 50 per cent.
Petronas’ Vice President of Exploration, Emeliana Rice-Oxley said: “Our upcoming exploration activities for Block 52 will involve the drilling of a well in Q3 2020, in addition to acquiring new 3D seismic data utilising the latest technology, covering the whole block to further evaluate the block’s upside potential. We look forward to this partnership with ExxonMobil and are determined to continue with the success story on hydrocarbon discoveries in the basin.”
In 2016, PSEPBV drilled the Roselle-1 well in Block 52 which provided crucial subsurface information and data on the petroleum system of the area. Subsequent detailed analysis carried out by PSEPBV indicated that Block 52 contains multiple geological play types and is within the favourable fairway for hydrocarbon generation and accumulation. The recent oil discoveries in an adjacent block further support this assessment.
Neptune Energy announced that it has agreed to terminate the agreement to acquire Edison E&P’s UK and Norwegian subsidiaries from Energean Oil and Gas.
Neptune will pay a US$5 million termination fee to Energean.
Intially Neptune Energy agreed in October last year to acquire Edison E&P’s UK and Norwegian assets for $250 million in cash. The assets to be acquired included an estimated 30 million BOE of 2P reserves and near-term production close to infrastructure.
Neptune said in a statement that it will continue to pursue its pipeline of global development projects and other growth opportunities.
McDermott International and its joint venture partner, Japan’s Chiyoda Corporation announced that Train 3 of the Cameron LNG project in Hackberry, U.S has begun producing liquefied natural gas (LNG).
This significant project accomplishment is a precursor to substantial completion of Train 3 and comes just weeks after announcing introduction of feed gas to Train 3 on April 22.
"I applaud the hard work and commitment of the entire joint venture project team whose focus on safety and delivery during this dynamic time brought Train 3 to the state of producing liquefied natural gas," said Mark Coscio, McDermott's senior vice president for North, Central and South America. "The teamwork and diligence they have placed on safety and health as we navigate through the current COVID-19 pandemic has enabled us to continue our operations and deliver the project."
McDermott and Chiyoda have provided the engineering, procurement and construction for the Cameron LNG project since the project's initial award in 2014. The project includes three liquefaction trains with a projected export of 12 million tonnes per annum of LNG, or approximately 1.7 billion cubic feet per day.
Cameron LNG is jointly owned by affiliates of Sempra LNG LLC, Total, Mitsui & Co., Ltd. and Japan LNG Investment, LLC, a company jointly owned by Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha (NYK).
France’s Total announced that it will no longer pursue the completion of the purchase of Occidental Petroleum’s Ghana assets after Occidental informed Total that they could no longer sell their Algeria assets as part of the original deal.
In August 2019, Total and Occidental \ entered into a Purchase and Sale Agreement (PSA) in order for Total to acquire Anadarko’s assets in Africa. Under this agreement, Total and Occidental have since completed the sale and purchase of the Mozambique and South Africa assets.
The PSA provided that the sale of the Ghana assets was conditional upon the completion of the Algeria assets’ sale. Occidental has informed Total that, as part of an understanding with the Algerian authorities on the transfer of Anadarko’s interests to Occidental, Occidental would not be in a position to sell its interests in Algeria.
In a statement, Total said: “Given the extraordinary market environment and the lack of visibility that the Group faces, and in light of the non-operated nature of the interests of Anadarko in Ghana, Total has decided not to pursue the completion of the purchase of the Ghana assets and, as a consequence, to preserve the Group’s financial flexibility.”
“This decision not to pursue the completion of the purchase of the Ghana assets consolidates the Group’s efforts in the control of its net investments this year and provides financial flexibility to face the uncertainties and opportunities linked to the current environment,” said Patrick Pouyanné, Total Chairman and CEO.
Saipem, in joint venture with Daewoo E&C and Chiyoda Corporation, has been awarded by Nigeria LNG Limited the contracts for the Engineering, Procurement & Construction of the Nigeria LNG Train 7 Project to be executed at Bonny Island LNG complex in Nigeria.
The overall value of the contracts is above US$4 billion and Saipem’s share amounts to around $2.7 billion
The NLNG Train 7 Project consists of the construction of one complete LNG train and one additional liquefaction unit with a total capacity of approximately eight (8) MTPA, plus other extensive associated utilities and infrastructures.
Saipem is leader in SCD JV with a 60 per cent share.
Stefano Cao, Saipem’s CEO, commented: “This new project in Nigeria - where we have been operating for over 50 years - confirms our ability to build solid relationships, qualifying Saipem as a global company. It also proves the validity of the management methods of Covid-19 emergency thanks to the flexibility of our organizational model and the practise of our people to work remotely. The investment decision by Nigeria LNG Limited, which includes several important energy companies, demonstrates that natural gas, in whose value chain Saipem has a recognized leadership, will be pivotal to the energy transition. The award of this contract contributes to increase the portion of non-oil-related backlog and confirms the overcoming of the link between Saipem’s share value and oil price”.
Nigeria LNG Limited (NLNG) main shareholders are the Federal Government of Nigeria represented by the Nigerian National Petroleum Corporation (NNPC), Shell Gas B.V., Total Gaz Electricité France and Eni International (N.A.).
Equinor, Shell and Total have decided to invest in the Northern Lights project in Norway's first exploitation licence for CO₂ storage on the Norwegian Continental Shelf. Plans for development and operation have been handed over to the Ministry of Petroleum and Energy.
"The Northern Lights project could become the first step to develop a value chain for Carbon Capture and Storage (CCS), which is vital to reach the global climate goals of the Paris Agreement. Development of CCS projects will also represent new activities and industrial opportunities for Norwegian and European industries, says Anders Opedal, executive vice president for Technology, Projects & Drilling at Equinor.
The investment decision is subject to final investment decision by Norwegian authorities and approval from the EFTA Surveillance Authority (ESA).
"This unique project opens for decarbonisation of industries with limited opportunities for CO2-reductions. It can be the first CO2 storage for Norwegian and European industries, and can support goals to reduce net greenhouse gas emissions to zero by 2050," says Opedal.
The investment decision concludes the study phase during which the Equinor, Shell and Total worked closely with Norwegian authorities to conduct engineering studies and project planning, drill a confirmation well and develop the necessary agreements. Following the investment decision, the partners intend to establish a joint venture company.
The initial investments will total almost NOK 6.9 billion. The project will generate much needed jobs for Norwegian industry, with an estimated 57 per cent of the investment going to Norwegian contractors.
“CCS is a crucial technology to help society and economies thrive through the energy transition. Shell is active in all parts of the CCS value chain and Northern Lights further strengthens our global CCS portfolio. We appreciate the leadership shown by the Norwegian Government to accelerate the development of CCS value chains and believe that the Northern Lights CO2 transport and storage solution has the potential to unlock investment in capture projects across Europe,” says Syrie Crouch, vice president for CCUS in Shell.
“Total is proud to be part of this first commercial-scale carbon transportation & storage project in Europe. Together with our industrial partners, under the leadership of Norway, we’ve managed to conclude successfully the technical studies and we have achieved an important step towards the realization of the project. Today, more than ever, we are willing to maintain our efforts on the development of the CCS technology which is needed to reach the EU carbon neutrality goals and is fully part of Total’s new Climate Ambition to get to Net Zero by 2050,” says Philippe Sauquet, president Gas Renewables & Power at Total.
The project will be developed in phases. Phase 1 includes capacity to transport, inject and store up to 1.5 million tonnes of CO2 per year. Once the CO2 is captured onshore by industrial CO2-emitters, Northern lights will be responsible for transport by ships, injection and permanent storage some 2,500 metres below the seabed.
The CO2 receiving terminal will be located at the premises of Naturgassparken industrial area in the municipality of Øygarden in Western Norway. The plant will be remotely operated from Equinor’s facilities at the Sture terminal in Øygarden and the subsea facilities from Oseberg A platform in the North Sea.
The facility will allow for further phases to expand capacity. Investments in subsequent phases will be triggered by market demand from large CO2 emitters across Europe.
If the project receives a positive final investment decision from the Norwegian Government in 2020, Phase 1 is expected to be operational in 2024.
Petrofac is set to build on its provision of digitally enhanced services for BP, following the award of a three-year extension to its existing maintenance contract and a new four-year metering contract.
The metering services contract includes on and offshore consulting and support services. Under the agreement, Petrofac will continue to harness digital technology to drive improvements and increase efficiencies for BP.
Under the terms of the maintenance agreement, Petrofac will continue to provide campaign inspection and maintenance services on the Operator’s North Sea assets, many of which Petrofac has supported for the last decade.
In 2019, Petrofac worked with BP to prove new execution techniques. Combining use of Digital Twin technology, Connected Worker and Petrofac’s proprietary software, BuildME, Petrofac digitalised all forms of campaign maintenance and inspection activity - achieving significant productivity gains compared to industry standards – and continues to work with BP to extend the benefits of this approach to other applications.
Nick Shorten, managing sirector, Petrofac Engineering and Production Services, West, said: "We are proud to build on our long-standing relationship with BP, who have been an early adopter of our digital execution processes. We look forward to building on the gains made through this approach and establishing our metering services provision."
France’s Total is stepping up its research into Carbon Capture, Utilization and Storage (CCUS) technologies by signing a multi-year partnership with UK start-up Cambridge Quantum Computing (CQC).
In a statement, Total said that the partnership aims to develop new quantum algorithms to improve materials for CO2 capture. Total’s ambition is to be a major player in CCUS and the Group currently invests up to 10 per cent of its annual research and development effort in this area.
To improve the capture of CO2, Total is working on nanoporous materials called adsorbents, considered to be among the most promising solutions. These materials could eventually be used to trap the CO2 emitted by the Group's industrial operations or those of other players (cement, steel etc.). The CO2 recovered would then be concentrated and reused or stored permanently. These materials could also be used to capture CO2 directly from the air (Direct Air Capture or DAC).
The quantum algorithms which will be developed in the collaboration between Total and CQC will simulate all the physical and chemical mechanisms in these adsorbents as a function of their size, shape and chemical composition, and therefore make it possible to select the most efficient materials to develop. Currently, such simulations are impossible to perform with a conventional supercomputer, which justifies the use of quantum calculations.
“Total is very pleased to be launching this new collaboration with Cambridge Quantum Computing: quantum computing opens up new possibilities for solving extremely complex problems. We are therefore among the first to use quantum computing in our research to design new materials capable of capturing CO2 more efficiently. In this way, Total intends to accelerate the development of the CCUS technologies that are essential to achieve carbon neutrality in 2050” said Marie-Noëlle Semeria, Total's CTO.
Ilyas Khan, CEO of CQC, said: “We are very excited to be working with Total, a demonstrated thought-leader in CCUS technology. Carbon neutrality is one of the most significant topics of our time and incredibly important to the future of the planet. Total has a proven long-term commitment to CCUS solutions. We are hopeful that our work will lead to meaningful contributions and an acceleration on the path to carbon neutrality.”
BP Australia announced that it will invest in a feasibility study into an export-scale renewable hydrogen production facility in Western Australia.
The project will include an initial investment from BP of (AUS) $2.7 million, with a further $1.7 million being funded by Australian Renewable Energy Agency (ARENA) as part of its Advancing Renewables Program. BP Australia will be supported by GHD Advisory to deliver the study.
The extensive study will help BP and the energy sector better understand the possibilities of using hydrogen to export renewable energy at scale.
The feasibility study will deliver a detailed techno-economic evaluation of pilot and commercial scale green ammonia production plants in Geraldton. This will include an evaluation of the different technologies and process configurations required to manufacture green hydrogen and green ammonia.
The potential pilot plant will look to produce green hydrogen, using onsite and/or grid-sourced renewable power. This will then be converted into around 20 kilo-tonnes per annum (ktpa) of green ammonia. Once developed to commercial scale, this is expected to increase to around 1,000 ktpa of green ammonia, targeted at domestic and export markets.
The commercial-scale plant would require around 1.5GW of power. This is expected to be sourced from greenfield renewable power generation, enabling the project to benefit from the advantaged solar and wind resource in the region. Lightsource bp, a 50:50 joint venture between Lightsource and bp, in the funding, development and long-term management of solar projects, will provide and advise on the renewable power solutions.
Frédéric Baudry, BP chief operating officer for Asia Pacific, said: “Western Australia is the study location due, in part, to its vast solar and wind resources, existing port infrastructure and proximity to large, long-term markets for green hydrogen. The study further demonstrates bp’s long-standing investment and commitment to the region. I would like to thank the Australian government for their support for this important project and the development of advanced fuels in Australia.”
The study support’s BP’s ambition to become a net zero company by 2050 or sooner and to help the world get to net zero.
Dev Sanyal, executive vice president of bp Gas and Low Carbon Energy, said: “We believe that green hydrogen will play an increasingly important role, not only as a new, clean energy vector, but also in enabling the further growth of renewable power. This aligns with bp’s ambition to support the world’s decarbonisation agenda. This feasibility study is an important step towards developing a large-scale export project and understanding this hydrogen value chain in full.”
ARENA chief operating officer Darren Miller said: “Australia is a key market for bp and other companies to progress their strategic developments for the future renewable hydrogen industry because of our abundant renewable energy resources and established trade partners.”
Ashley Wright, GHD’s chief executive, added: “We are not waiting for a clean energy future – we are building it with our clients and communities. Renewable hydrogen has the potential to be a significant part of the solution by decarbonising a range of industries where it is difficult to meaningfully reduce emissions any other way.”
Norway‘s energy firm Equinor reported a fall in earnings due to low oil prices that saw adjusted earning come in at $2.05 billion, down from $4.19 billion in the same period last year.
Equinor reported a $0.71 billion net loss after taking net impairments of $2.45 billion. It announced that due to market uncertainties, government-imposed production curtailments and Equinor’s value over volume approach, Equinor has suspended further production guidance for 2020.
“The COVID-19 pandemic is impacting people, societies and industries across the world. We have taken forceful actions to strengthen our financial resilience, and we are prepared to take further measures as necessary to protect people, operations and value creation,” says Eldar Sætre, president and CEO of Equinor ASA.
Sætre added: ““Our financial results in the quarter were impacted by the lower commodity prices. However, we delivered strong operational performance with record high production and solid cash flow under these market conditions. Uncertainty remains high with very low commodity prices and increased differentials towards the end of first quarter and in the start of the second quarter. We will continue to prioritise value over volume and have already reduced activity, particularly in the US onshore. We will consider further activity reductions and use the flexibility we have in our portfolio as necessary.”
In first quarter, Equinor announced a plan for reducing costs for 2020 by around US$700 million compared to original estimates. Operating costs in first quarter 2020, were improved from last quarter and we see lower unit production costs.
Equinor said it delivered record high total equity production of 2,233 mboe per day in the first quarter, up 3 per cent from the same period in 2019.
“The flexibility in the gas fields was used to defer production into periods with higher expected gas prices. Successful rampup of new fields as well as new well capacity, contributed to growth in production. The ramp- up of Johan Sverdrup contributes significantly to the increased production in the quarter, and the field reached a higher plateau production level at 470,000 boe per day in late April,” he energy firm said in a statement.
“In times like this, with the current unprecedented market conditions and uncertainties, it is more important than ever to have a clear direction for the long-term development of the company. Our values and strategy remain firm, and we are committed to develop Equinor as a broad energy company. It is a sound business strategy to ensure competitiveness and drive change towards a low carbon future, based on a strong commitment to value creation for our shareholders,” said Sætre.
Hungary’s MOL Group announced a US$152 million net loss for Q1 2020, which it blamed on the COVID-19 pandemic-related crisis.
MOL said that underlying operations were running strong until mid-March, as reflected by the US$622 million Clean CCS EBITDA, however, the pandemic had already started to severely affect all business lines in the last 2-3 weeks of March and the situation further deteriorated in April.
“Due to the unpredictable external environment, 2020 EBITDA guidance was withdrawn, and organic capital expenditure guidance was cut by more than 25 per cent,” said MOL.
Chairman-CEO Zsolt Hernádi commented on the results: “Covid-19 shapes and rules the world and the energy industry. The pandemic situation and economic crisis that follows will cast a long shadow on our overall performance in 2020. While we are fighting the pandemic and doing our best to protect our people, our customers and partners, we are also working hard to make sure MOL can continue to operate even under extreme scenarios and can eventually emerge even stronger from this crisis. Our dedicated people, high quality assets, strong balance sheet and our resilient, integrated business model shall help us navigating through these unchartered waters. We have already made a series of difficult decisions that will help us to achieve cash neutrality, to maintain our liquidity and financial flexibility and to grab opportunities which may arise on the way towards normalisation.”
MOL reported that in Q1 it’s upstream EBITDA decreased to US$185 million in Q1. Oil and gas production volumes were 110.6 mboepd, 4 per cent lower than a year ago, due to the natural decline in CEE.
On the downstream side, MOL said that the Clean CCS EBITDA doubled and increased to US$295mn in Q1 from a low base, supported by doubling refinery margins. The polyol project reached 60 per cent completion at the end of Q1. The pandemic affects the project’s supply chain and makes workforce mobilisation increasingly difficult. Its full impact on the project schedule is not yet possible to assess, but delays are expected.
McDermott International announced CB&I Storage Solutions has been awarded a contract for four liquefied petroleum gas (LPG) spheres for an energy infrastructure project in the Caribbean region.
The scope of the project includes the engineering, procurement, fabrication and construction (EPFC) of four LPG spheres—each measuring 88 feet in diameter, with 63,100 barrels nominal capacity and 290 pounds per square inch design pressure.
McDermott said in a statement that fabrication and procurement will be performed at the company's Fairbanks facility in Houston, Texas, and engineering will be performed at the company's office in Plainfield, Illinois.
"We have a strong track record of executing world-class storage projects in the Caribbean and Central and South America," said Cesar Canals, senior vice president of CB&I Storage Solutions. "This new award highlights the confidence our customer has in our service offerings and capabilities in engineering, fabricating and constructing high-pressure LPG spheres and other storage solutions that are critical components to its energy infrastructure."
Subsea 7 announced the award of a contract by Independent Oil and Gas (IOG) for the Blythe and Vulcan Satellites field development, located in the UK sector of the southern North Sea.
The contract scope includes the project management, engineering, procurement, construction and installation of 35km of flow lines between the Southwark, Blythe and Elgood fields, together with subsea structures, an umbilical, and associated subsea tie-ins.
Subsea 7 said in a statement that project management and detailed engineering has started at it's office in Aberdeen, and offshore activities are scheduled to commence in 2020.
Jonathan Tame, vice president UK & Canada, said: “We are pleased to be awarded this contract, which strengthens our reputation as a global provider of value-driven SURF solutions. We look forward to collaborating with IOG to ensure the cost-effective, safe and timely execution of each phase of the development.”
Petrofac’s Engineering & Production Services business (EPS) has been awarded two three-year renewals in the UK, worth a combined total of more than US$100 million.
Both awards come with options to extend beyond the initial term.
The awards, gained under a competitive tender process with an international oil company, involve the provision of Duty Holder support services for an offshore support vessel, and operations and maintenance services for an oil and gas development project and gas terminal.
Nick Shorten, managing director for Petrofac’s EPS business in the Western Hemisphere, commented: “These new contracts with a long-standing client are an excellent example of our ability to scale and integrate our service provision in line with their latest requirements. We very much look forward to combining our extensive operations’ experience and digital technology programme to deliver sustainably efficient support on these contracts.”
Norway's Equinor has agreed to sell its remaining financial shareholding in Lundin Energy, comprising around 14 million shares (4.88 per cent stake) for US$335 million.
This follows Equinor divestment last year of a 16 per cent stake for $1.56 billion.
“This transaction follows our divestment of a 16 percent shareholding in Lundin in July 2019 and concludes what has been a successful investment for Equinor. We have created significant value and increased our direct exposure in the Johan Sverdrup field. Although we are now no longer a shareholder in Lundin, we continue to consider the company a strong partner on the Norwegian Continental Shelf,” says Lars Christian Bacher, CFO of Equinor ASA
Lundin holds a 20 per cent stake in the Equinor-operated Johan Sverdrup oilfield, western Europe's biggest producing field.
Wintershall Dea and its license partners have made significant oil discoveries on the Polok and the Chinwol prospects in Block 29 offshore Mexico.
The discoveries in Mexico’s Block 29 are 88 kilometers from the Mexican coastline of Tabasco and approximately 50 kilometers west-northwest of the world class Zama discovery, where Wintershall Dea holds a 40 per cent stake.
Polok is a play opening discovery within the Early Miocene reservoir of the Salina Basin (part of the Sureste Basin), whereas Chinwol encountered oil in formations of the Pliocene.
Hugo Dijkgraaf, Wintershall Dea Chief Technology Officer and Executive Board member responsible for global exploration, said: “These are breakthrough discoveries, confirming the materiality and quality of Wintershall Dea’s exploration license portfolio in the Sureste Basin. They emphasise Mexico’s importance as one of Wintershall Dea’s key target regions for growth globally.”
Polok and Chinwol are the first announced discoveries from a block, awarded in Mexico’s deep water round 2.4. in 2018.
Juan Manuel Delgado, Managing Director for Wintershall Dea’s Mexican business, pointed out: “This is a great success. We have had a strong belief that discoveries like these could be made here. The Polok and Chinwol discoveries are a strong evidence of the oil potential of the Salina Basin. Opening a new play there, we are confident to further unlocking additional resources in Block 29 and the wider Wintershall Dea license portfolio. We are well positioned and looking forward contributing to the development of Mexico’s oil and gas sector.”
The reservoirs show excellent petrophysical properties. An intensive data collection has been carried out in both wells, including a total of 108 meters of core. The license partnership will work on potential appraisal measures and development options for the Polok and Chinwol discoveries, taking into account current market conditions.
The Block 29 partners are Wintershall Dea (25%), Repsol (operator, 30%), PC Carigali Mexico Operations S.A de C.V., the Mexican subsidiary of PETRONAS (28.33%) and PTTEP Mexico E&P Limited, S. de R.L. de C.V. (16.67%).