TOPICS OF INTEREST
Rystad Sees Global E&P Players Investing $380 Billion in 2021, Says About 20% Is at Risk
Of the total $380 billion of projected investments, about 60% ($234 billion) is likely to come from producing assets, which have two main spending channels: facility and well capital expenditures.
Petrobras Offers 50% Stake in Marlim Cluster
The cluster is the third largest in Brazil and the fourth largest in the Americas, with potential for further development. It is the third offer the company has made over the past five weeks.
Lufkin Industries Acquires Schlumberger Rod Lift Business
With the acquisition of Schlumberger’s rod lift business, Lufkin gains several products, brands, and key proprietary software.
Sandvik To Sell Exploration Business to M Group Subsidiary
The deal includes Sandvik’s exploration rigs, consumables, production stock, and selected trademarks and patents.
Caterpillar Acquires Weir Group’s O&G Division for $405 Million
The acquisition of Weir’s lines of pumps, consumable parts, wellhead, and pressure-control products expands Caterpillar’s well-service capabilities.
Eni To Take Over Chevron’s Role in Indonesia Deepwater Project
The sale of Chevron’s interest in the IDD project is part of its cost-cutting measures.
West White Rose Project Off Newfoundland at Risk of Cancellation
Facing a minimum 1-year delay to startup, Husky Energy discussed the West White Rose extension project’s challenges and risks with Canadian local and federal governments. Cancellation is a possibility, according to a Husky executive.
Baker Hughes Aims To Balance Shifting Portfolio With Energy Transition
As the company aims to become carbon net zero by 2050, it is undertaking a three-pronged approach focused on transforming its core, investing for growth, and positioning for the future.
Economic Downturn Underlines Key Risks for Midstream Operators
An economic downturn and global pandemic are among many issues US midstream operators are dealing with in 2020, including exposure to upstream bankruptcies, limited M&A activity, and regulatory issues.
Another 150 North American E&Ps May Require Chapter 11 Protection Through 2022
Several E&P and OFS companies have already filed for Chapter 11, but unless prices strengthen the total number of filings could be as high as 190 by 2022.
Tellurian Provides Update on Driftwood LNG Project
The company deferred three of four pipelines as it continues to push toward final investment decision.
As One Louisiana LNG Project Begins, Others Still in Development
The Cameron LNG project completed its final train this month, but other LNG projects such as Calcasieu Pass LNG, Driftwood LNG, and Lake Charles LNG face difficulties during the economic downturn.
Brazilian Major Announces Mothballed Platform and Binding Phases for Offshore/Onshore Assets
The announcements are part of the company’s divestment strategy to reduce debt and improve capital.
Carbo Ceramics Leaves Chapter 11 With New Ownership
The investment group Wilks Brothers, now owners of Carbo Ceramics, has sought stakes in other OFS companies this year.
Financing Secured for Mozambique LNG Project
The Mozambique LNG project expects to achieve financial close in Q3.
Petrobras To Build Brazil’s Largest Platform
In its push to boost deepwater production, Petrobras is aiming to launch a leasing tender to build an FPSO described as Brazil’s largest-ever oil platform. Decommissioning work begins in the Campos and the Sergipe-Alagoas Basins.
US Gulf Lease Sale Set for November
Lease Sale 256 was originally set for August but was moved due to COVID-19’s impact on the oil and gas markets. Bids will be accepted by mail only due to the ongoing pandemic.
Aker Solutions To Merge With Kværner
The combined company will target the renewables market. Aker Solutions intends to spin off its wind development and its carbon capture technology businesses into two new companies, which will be part of its renewable energy group, Aker Horizons.
Sercel Invests in Startup AMBPR To Build Robots for Oil and Gas
The partnership will deliver autonomous robots for safe work in adverse land, sea, and downhole environments.
BP Sells Alaska Business To Hilcorp for $5.6 Billion
The deal follows BP’s divestment of its global petrochemicals business in late June.
McDermott Exits Bankruptcy With Restructuring and Sale Of Lummus Technology
McDermott’s restructuring comes 5 months after it filed for Chapter 11 protection. The company was struggling with debt since its 2018 acquisition of CB&I.
Map of China Oil Infrastructure Tracks More Than 700 Facilities
Designed to be a “living” map, it focuses on the largest fixed infrastructure for crude oil and refined products such as trunk pipelines, refineries, and storage facilities.
Opportunity Shaping for Renewable Energy Projects: Selecting the Right Investments in a Competitive Environment
For successful development and execution, renewables—as with other capital projects —require diligent opportunity shaping. Five key steps for shaping renewable energy projects are discussed.
Chevron to Divest its Stake in North West Shelf LNG JV
Potential suitors to acquire Chevron’s stake in the LNG project include co-owner and operator Woodside.
Saudi Aramco Acquires Majority Stake in SABIC
Aramco’s acquisition of SABIC positions the company as a major global petrochemical player.
Lake Charles LNG Project Gets New Ownership
With the acquisition of Magnolia LNG, along with its Texas LNG Brownsville project, Glenfarne Group expands its export capacity to 12 mpta.
Energean’s Karish Project Back on Track
Work has resumed on Energan’s Singapore FPSO; subsea installation for the Karish project continues as planned.
Aker Energy Reaffirms Commitment to Pecan Field Development
The FPSO vessel will reduce capital expenditure and breakeven costs and increase commercially feasibility, leading to FID.
No Project Sanctions Expected in Gulf of Mexico This Year
Forecasts are lowered for levels of E&P, budgets, and project sanctioning.
Future of Suncor Terra Nova FPSO Remains Uncertain After Fire
The fire at the Terra Nova FPSO comes 6 months after C-NLOPB found Suncor noncompliant with regulatory requirements and suspended operations.
UPDATE: Total Faces $12 Billion Shortfall as it Continues $20 Billion Mozambique LNG Project
Construction on Mozambique LNG stopped in April due to COVID-19, but Total continues work on the project even amid a $12 Billion shortfall. Financing for the Mozambique LNG project follows engineering contracts awarded by Total in the past few months.
India Looking To Store Oil in the US Petroleum Reserve
India may be the second country to lease space in the US SPR. Capacity at the SPR has been building for the past 5 weeks.
Prudent Ways to Restart Big Projects in Post-Pandemic World
Delays and disruptions have stymied project plans in the past few months. How will companies prevent current stresses from morphing into catastrophic issues?
Cameron LNG Sees First Production from Train 3 In Louisiana
Production from Train 3 comes almost a month after reaching its final commissioning stage. Commercial operations will follow testing and authorization from FERC.
KBR and NIPI Neftegas Form JV in Kazakhstan
The JV continues KBR’s work history in Kazakhstan. The company has worked on various projects in the country since 1993.
Rio Grande LNG FID Expected in 2021
FID on RGLNG was originally expected in 2019, before it was pushed to Q1 2020. NextDecade will continue to develop and de-risk the project.
Southern Delaware Basin Water Infrastructure Transaction Terminated
Centennial said in its 10-Q report for Q1 that the economic downturn increased the likelihood that the transaction would fail to close by its original timeline.
OFS Companies’ Stock Price, EBITA Margins Hit Hard From COVID-19 Fallout
Two intelligence groups share similar views on how the fallout from the COVID-19 pandemic has impacted OFS companies’ valuations and operations.
Premier Recasts First Oil for Tolmount, Seeks Acquisition Deal with BP
North Sea system now on track for completion in Q2 2021.
FPSOs May Need To Be Shut Down During Economic Downturn
FPSO sanctioning is at a minimum and few opportunities remain for FPSO suppliers to find new work and redeploy their vessels. Suppliers may be forced to accept day rate reductions in order to keep their vessels working.
Sempra Energy’s Port Arthur LNG Project the Latest To See Delayed FID
The LNG market remains a mixed bag heading into Q2. Port Arthur LNG is just the latest to see a delayed FID, while other LNG projects are still moving ahead.
Shell Divests Appalachia Shale-Gas Assets to National Fuel Gas Co.
The sale of the Appalachia position is in line with Shell’s strategy to focus on its shales strategy.
Natural Gas Markets Remain Regionalized
Historically, natural gas contract prices were tied to the price of crude; now, volatility and growth in spot-market liquidity signal a shift from long-term linking toward a more integrated market.
Global Oversupply of Crude Leads to Scramble for Storage Solutions and Alternatives
No vacancy? The hunt for global alternatives to store crude oil includes offshore, global strategic reserves, pipelines, rail cars, and trucks.
Oil and Gas Steelmakers, Pipemakers Announce Cuts
Tubular steelmaker Vallourec is latest to join reductions in workforce.
Shell Postpones FIDs on GoM and North Sea Projects
The deferments are the latest actions Shell has taken in response to record low crude prices.
ADNOC Cancels Contracts Worth $1.65 Billion for Dalma Gas Project
The contracts were awarded in February. Petrofac said it is working with ADNOC to explore alternative options.
UPDATE: Limited Storage Capacity and Global Supply Glut Lead to Record Low Oil Futures
Nymex WTI crude opened Monday on track for its worst day on record, falling nearly 40% to $11.05/bbl on the back of excess supply vs. low demand and dwindling storage capacity.
China’s GCL Subsidiary Plans LNG JV With Shell in Jiangsu
The planned JV is for one of three LNG terminals GCL is planning to build in China.
Chevron Sells Azerbaijan Assets to MOL Hungarian Oil and Gas
The deal is part of the company’s divestment program targeting proceeds of $5 to 10 billion between 2018 and 2020.
Industry Has Little Room for Further Cost Cutting
Energy research groups Wood Mackenzie and Rystad Energy say improvements in operations costs since the last downturn 5–6 years ago have made it difficult for companies to make further reductions amid the current drop in demand.
Aker Solutions Joins Ranks of Service Companies To Reduce Capex and Workforce
Sandvik and SNC-Lavalin made similar announcements in late March and would take further action if necessary.
Two Strategic Partnerships Emerge for Offshore Unmanned Systems
Fugro and SEA-KIT’s partnership will develop unmanned vessels, while HII and Kongsberg will market naval and maritime products.
How Will Asia Pacific's Upstream Sector Respond to the Oil Price Crash?
Unprecedented, perfect storm, a black swan event—all ways of describing the situation the oil and gas sector finds itself in right now. Here’s an analysis on the near-term outlook for projects in Asia Pacific.
BLM Sees Tepid Results from Federal Land Lease Sale
Wyoming sold the most parcels during the recent US Bureau of Land Management’s auction for oil and gas leases on federal land.
COVID-19 May Impact More Than Half of all Oil and Gas Projects Being Sanctioned
Revised estimates of project sanctioning total $61 billion in 2020, which is down from $192 billion forecast in 2019.
European Gas Demand and Power Consumption Estimates Revised on COVID-19
Gas demand is expected to grow by just 2 Bcm in 2020, down from previous expectations of 6 Bcm. The Netherlands, UK, Germany, and Spain are expected to see the biggest impact.
Europe's Oilfield Service Companies at Risk of Bankruptcy Amid $5 Billion in Cuts
More than 200 companies could become insolvent in the UK and Norway. This number may be larger when including the rest of Europe.
TechnipFMC Postpones Split Into Two Companies
The company plans to split when the markets recover.
Offshore Industry More Resilient Than Shale Amid COVID-19 Impact
Because offshore project lead times are longer than in shale, production is likely to come on line in 2–5 years when oil prices may be higher. But the number of FPSOs to be sanctioned this year may be cut by half.
Eni Resolves Dispute With Partners To Restart Damietta LNG Plant in Egypt
The Damietta LNG plant is expected online by June 2020. The plant will be owned by ENI, EGAS and EGPC.
Romanian Romgaz and Others To Make Offer for ExxonMobil’s Stake in Black Sea Project
Romgaz seeks 20% stake in ExxonMobil’s Neptun Deep project
Wood Sells Industrial Services Business
The company's industrial services business provides integrity and fabric maintenance for assets in the offshore oil and gas, process energy, marine, and infrastructure sectors across the UK and Ireland.
BW Offshore To Spin Off Its E&P Business BW Energy
BW Offshore plans to float its exploration and production unit BW Energy through an initial public offering in the first quarter of 2020.
A New Offshore Investment Cycle Is in the Making
The amount of oil and gas resources approved for development last year surpassed 20 billion BOE, the highest level seen since 2011. Telltale signs have emerged that we are entering a new offshore investment cycle.
Energy Companies Well Suited To Adapt to Industry 4.0
Industry 4.0, the latest industrial revolution, has hit the manufacturing sector, building upon the adoption of computers and automation into industrial processes. How well suited is the oil and gas industry to leverage the new autonomous systems that could emerge from this transformation?
UK Leads Global Drop in Operational Production Costs
Global OPEX is falling, and the UK has emerged as a cost-cutting powerhouse among global offshore regions feeling the squeeze of uncertain oil prices. In pursuit of lower unit prices, Rystad Energy says that operators and contractors have begun nurturing operational improvements.
Premier Acquires North Sea Assets from BP, Dana
The company will shell out more than $800 million to acquire interests in the Andrew and Shearwater areas, as well as the Tolmount field, offshore Scotland.
Talos Energy Spends $640 Million on Gulf of Mexico Assets
The deal boosts Talos' 2019 production by 35%, helping the independent E&P company become one of the top 10 producers in the Gulf of Mexico.
Woodside Submits Proposal for Senegal Offshore Field
One of the biggest discoveries in the past decade, Sangomar, moves closer to sanction as operator Woodside and its joint venture partners submit the plan for the field's development. First oil from Senegal's first offshore development is scheduled for 2023.
Saipem Considering Merger With Subsea 7
Bloomberg reports that Saipem is seeking to bulk up and weather an industry downturn. A potential deal could create an oilfield service giant with more than $12.4 billion in revenue.
Ithaca Completes $2-Billion Deal for Chevron’s North Sea Assets
The deal, first announced in May, gives the Delek subsidiary 10 additional producing field interests in the UK North Sea, boosting its 2019 production by 300%.
Abu Dhabi Investor Commits $50 Million to NextDecade
NextDecade and Mubadala Investment Co. have reached agreement for Mubadala to purchase $50 million of NextDecade’s common stock in a private placement. The capital buoys the development of the Rio Grande LNG export solution linking Permian Basin associated gas to the global LNG market.
TechnipFMC’s Newly Named E&C Player To Focus on LNG
Technip Energies will work on a backlog comprising more than 50% in LNG-related business. Retaining the TechnipFMC name, RemainCo will generate nearly 90% of its revenue outside the US and Canada.
SBM Offshore Completes Financing of Liza Unity FPSO
As construction continues, SBM Offshore secured the $1.14 billion needed to finance work on the vessel. Liza Unity is scheduled for deployment at ExxonMobil's Liza Phase 2 development offshore Guyana.
Santos Acquires ConocoPhillips's Australian Assets for $1.39 Billion
The deal for ConocoPhillips’s northern Australian portfolio will help the Australian company boost its position in the country’s gas market, as it gains majority ownership in a set of key assets including Darwin LNG and the Barossa project.
Total Expands Partnership With Adani on India’s Gas Market
The agreement—in which Total will reportedly pay $600 million for a 37.4% stake in the Indian gas conglomerate—boosts the supermajor’s LNG market access in India and neighboring countries. It is the latest move in Total’s aggressive expansion of its LNG portfolio.
ExxonMobil Eyes Sale of Malaysian Offshore Assets
A month after it got out of Norway, Bloomberg reports that the company is working with advisers on a potential Malaysian sale, which could raise as much as $3 billion. ExxonMobil plans to divest around $15 billion in nonstrategic assets by 2021.
Qatar Petroleum Takes Over Pair of Offshore Fields from Oxy
As Oxy looks to divest billions in assets and focus more on its prime US shale fields, it sheds itself of the ISND and ISSD fields off the eastern coast of Doha. In announcing the lease loss last year, Oxy said the fields need significant infrastructural investment.
Var Energi Seeks NCS Portfolio Boost From ExxonMobil Sale
With its $4.5-billion acquisition of ExxonMobil’s remaining portfolio on the Norwegian Continental Shelf now official, Var Energi says it hopes to realize its ambitious growth plans.
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29 October 2020
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ITEMS OF NOTE
07 August 2018
20 July 2018
16 February 2018
18 December 2017
28 November 2017