𝔽𝕣𝕖𝕤𝕙 𝕠𝕚𝕝, 𝕘𝕒𝕤, 𝕒𝕟𝕕 𝕕𝕣𝕚𝕝𝕝𝕚𝕟𝕘 𝕡𝕝𝕒𝕪𝕤 𝕤𝕙𝕒𝕡𝕖 𝕖𝕟𝕖𝕣𝕘𝕪 𝕖𝕔𝕠𝕤𝕪𝕤𝕥𝕖𝕞

𝐓𝐡𝐞 𝐩𝐨𝐰𝐞𝐫 𝐨𝐟 𝐞𝐧𝐞𝐫𝐠𝐲 𝐦𝐨𝐯𝐞𝐬 𝐭𝐡𝐞 𝐰𝐨𝐫𝐥𝐝, 𝐬𝐜𝐮𝐥𝐩𝐭𝐢𝐧𝐠 𝐧𝐞𝐰 𝐩𝐚𝐭𝐡𝐰𝐚𝐲𝐬 𝐚𝐧𝐝 𝐥𝐢𝐠𝐡𝐭𝐢𝐧𝐠 𝐮𝐩 𝐭𝐡𝐞 𝐝𝐚𝐫𝐤 𝐜𝐨𝐫𝐧𝐞𝐫𝐬. 𝐇𝐨𝐰𝐞𝐯𝐞𝐫, 𝐢𝐭 𝐢𝐬 𝐧𝐨 𝐬𝐞𝐜𝐫𝐞𝐭 𝐭𝐡𝐚𝐭 𝐭𝐡𝐞 𝐞𝐧𝐞𝐫𝐠𝐲 𝐥𝐚𝐧𝐝𝐬𝐜𝐚𝐩𝐞 𝐢𝐬 𝐞𝐯𝐨𝐥𝐯𝐢𝐧𝐠, 𝐰𝐢𝐭𝐡 𝐞𝐱𝐩𝐞𝐜𝐭𝐚𝐭𝐢𝐨𝐧𝐬 𝐬𝐞𝐭 𝐢𝐧 𝐬𝐭𝐨𝐧𝐞 - 𝐚𝐭 𝐥𝐞𝐚𝐬𝐭 𝐟𝐨𝐫 𝐬𝐨𝐦𝐞 - 𝐭𝐡𝐚𝐭 𝐢𝐭 𝐰𝐢𝐥𝐥 𝐜𝐡𝐚𝐧𝐠𝐞 𝐝𝐫𝐚𝐬𝐭𝐢𝐜𝐚𝐥𝐥𝐲 𝐛𝐲 𝐦𝐢𝐝-𝐜𝐞𝐧𝐭𝐮𝐫𝐲 𝐭𝐨 𝐦𝐞𝐞𝐭 𝐠𝐥𝐨𝐛𝐚𝐥 𝐧𝐞𝐭 𝐳𝐞𝐫𝐨 𝐚𝐬𝐩𝐢𝐫𝐚𝐭𝐢𝐨𝐧𝐬. 𝐓𝐡𝐞 𝐫𝐞𝐬𝐢𝐥𝐢𝐞𝐧𝐜𝐞 𝐨𝐟 𝐭𝐡𝐞 𝐨𝐢𝐥 𝐚𝐧𝐝 𝐠𝐚𝐬 𝐢𝐧𝐝𝐮𝐬𝐭𝐫𝐲 𝐢𝐧 𝐭𝐡𝐞 𝐟𝐚𝐜𝐞 𝐨𝐟 𝐭𝐡𝐞 𝐚𝐯𝐚𝐥𝐚𝐧𝐜𝐡𝐞 𝐨𝐟 𝐞𝐦𝐞𝐫𝐠𝐢𝐧𝐠 𝐞𝐧𝐞𝐫𝐠𝐲 𝐬𝐨𝐮𝐫𝐜𝐞𝐬 𝐚𝐧𝐝 𝐭𝐡𝐞 𝐠𝐫𝐨𝐰𝐢𝐧𝐠 𝐩𝐮𝐬𝐡 𝐭𝐨𝐰𝐚𝐫𝐝 𝐜𝐥𝐞𝐚𝐧 𝐞𝐧𝐞𝐫𝐠𝐲 𝐢𝐬 𝐝𝐞𝐦𝐨𝐧𝐬𝐭𝐫𝐚𝐭𝐞𝐝 𝐛𝐲 𝐚 𝐦𝐮𝐥𝐭𝐢𝐭𝐮𝐝𝐞 𝐨𝐟 𝐧𝐞𝐰 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬 𝐜𝐨𝐦𝐢𝐧𝐠 𝐨𝐧𝐥𝐢𝐧𝐞 𝐚𝐧𝐝 𝐛𝐞𝐢𝐧𝐠 𝐝𝐞𝐯𝐞𝐥𝐨𝐩𝐞𝐝 𝐨𝐧 𝐭𝐡𝐞 𝐠𝐥𝐨𝐛𝐚𝐥 𝐬𝐭𝐚𝐠𝐞.

Despite this, fossil fuels are losing some ground to renewables, as green agendas get pushed forward. This is illustrated by the changes in the energy environment and fresh decarbonization moves made to implement state-of-the-art technologies. With the quarterly results season now upon us, the oil majors' performance during 2023 brought multi-billion-dollar profits while spotlighting the dominant role oil, natural gas, and LNG still play in the energy mix.

𝗤𝘂𝗮𝗿𝘁𝗲𝗿𝗹𝘆 𝗿𝗲𝘀𝘂𝗹𝘁𝘀 𝘀𝗲𝗮𝘀𝗼𝗻 𝗸𝗻𝗼𝗰𝗸𝘀 𝗼𝗻 𝗼𝗶𝗹 & 𝗴𝗮𝘀 𝗽𝗹𝗮𝘆𝗲𝗿𝘀' 𝗱𝗼𝗼𝗿𝘀

ExxonMobil and Chevron have raked in $36 billion and $21.37 billion, respectively during 2023. These profits present a steep fall compared to all-time high ones of $55.7 billion and $35.5 billion in 2022. This drop in the energy giants’ combined profits from $91.2 billion in 2022 to $57.37 billion in 2023 is driven by the downward trend in oil and gas prices. However, the batch of new acquisitions has bolstered the duo's capacity to boost production.

While Shell ’s annual profit fell by 29% on a year-over-year basis in 2023, the UK player still reported a profit of $28 billion. An analysis of the firm’s highest-ever annual profit of almost $40 billion in 2022 leads to the conclusion that the decrease is driven by the shifts in global energy markets, putting the limelight on the downward trend in oil and gas prices and the upswing in LNG trading.

While bp saw a 50% fall in profit on a year-over-year basis, the oil major still reported a profit of $13.8 billion for 2023. While working to transform itself from an International Oil Company (IOC) to an Integrated Energy Company (IEC), the UK player is following the goals set in its existing strategy, which revolves around resilient hydrocarbons, convenience and mobility, and low-carbon energy.

While announcing “robust” results in line with its objectives and confirming the relevance of its strategy in an uncertain environment, TotalEnergies , which is celebrating its 100th birthday in 2024, disclosed a net income of $21.4 billion for the full year 2023, a 4% increase compared to $20.5 billion for the full year 2022.

Patrick Pouyanné, CEO of TotalEnergies, commented: “In an uncertain environment, TotalEnergies’ balanced transition strategy, which combines growth in Oil & Gas, in particular in LNG, and Integrated Power, delivered strong results in 2023, in line with its objectives."

The 2023 results are perceived to be the “highest profit” in the firm’s history, according to Greenpeace. This performance is underpinned by the success of the LNG and electricity divisions. However, the overall results were affected by the drop in oil and gas prices and refining margins compared to the highs observed in 2022.

𝗥𝗶𝗴 𝗺𝗼𝘃𝗲𝘀 𝗮𝗻𝗱 𝗼𝗳𝗳𝘀𝗵𝗼𝗿𝗲 𝗱𝗿𝗶𝗹𝗹𝗶𝗻𝗴 𝗷𝗼𝗯𝘀

Serica Energy plc is setting the stage to embark on its four-well drilling campaign and well work-over program in the UK sector of the North Sea. These wells are scheduled to take about three months each to drill, meaning that drilling will continue into 2025.

Shell picked a jack-up rig from Valaris Limited for a two-well drilling campaign in the North Sea. This entails an exploration well and an appraisal well, which will be drilled sequentially, with the contract and mobilization slated to begin in the June-July 2024 period.

A new drilling assignment will enable Paratus Energy's jack-up rig to continue carrying out operations offshore Mexico for another year.

One of Ocean Oilfield's jack-up rigs has finished a plug and abandonment (P&A) program at an offshore field in the UAE for Sinochem’s Atlantis (UAQ) Limited.

A semi-submersible rig, owned by Valaris Limited, has started drilling the first of eight wells on a Woodside Energy -operated gas field off the coast of Western Australia.

TotalEnergies has sealed a deal to obtain a majority stake from VANTAGE DRILLING in a drillship, which is currently working in Namibia. With its hook load capacity of 2.5 million pounds, offline capabilities, and managed pressure drilling equipment, this drillship is said to meet the French player’s envisaged future global needs.

𝗡𝗲𝘄 𝗼𝗶𝗹 & 𝗴𝗮𝘀 𝗽𝗿𝗼𝗷𝗲𝗰𝘁 𝘀𝘁𝗮𝗿𝘁-𝘂𝗽𝘀

China National Offshore Oil Corp. brought on stream an oilfield secondary adjustment and development project, which is located in Liaodong Bay of Bohai Sea. This project will have 118 development wells, including 81 production wells and 37 water injection wells. According to the Chinese player, the project has been developed relying on an onshore power supply. As a result, it will consume green electricity generated onshore, enabling the green and low-carbon development of offshore oil and gas resources.

TotalEnergies has started production from a field, which has been tied to an existing FPSO operating offshore Nigeria. The field is expected to add 14,000 barrels of condensate production per day, to be followed by up to 4 million cubic meters of gas per day by 2028.

𝗚𝗲𝘁𝘁𝗶𝗻𝗴 𝗺𝗼𝗿𝗲 𝗼𝗳𝗳𝘀𝗵𝗼𝗿𝗲 𝗮𝘀𝘀𝗶𝗴𝗻𝗺𝗲𝗻𝘁𝘀

Wood 's latest multi-million-dollar contract extension is for the delivery of maintenance and modification solutions to optimize wellhead platforms and floating production storage and offloading (FPSO) unit located at a field off the coast of Rio de Janeiro, Brazil. This is said to be Equinor ’s largest operated field outside Norway.

An RM400 million ($84.67 million) contract for a new MOPU is expected to provide long-term financial visibility to T7 Global Berhad upon first oil. This MOPU is destined to move to an oil field in the Gulf of Thailand soon, where it will be leased to the operator of the field, Valeura Energy Inc.

After QatarEnergy announced the award of four multi-billion-dollar EPCI contract packages to multiple players, McDermott International, Ltd confirmed two new assignments with North Oil Company Qatar , a joint venture between QatarEnergy (70%) and TotalEnergies (30%), related to the delivery of the EPCIC scope for the development of the next phase of the largest oil field off the coast of Qatar.

𝐑𝐞𝐚𝐝 𝐦𝐨𝐫𝐞:

• 📎QatarEnergy dishes out $6 billion to boost production at Qatar’s largest oil field

MODEC hired Axess Group on a long-term inspection contract related to its recently converted FPSO, which will work on the Woodside Energy-operated offshore oil development project in Senegal, Africa.

𝗘𝘅𝗽𝗮𝗻𝗱𝗶𝗻𝗴 𝗼𝗶𝗹 & 𝗴𝗮𝘀 𝗽𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼𝘀 𝘄𝗶𝘁𝗵 𝗻𝗲𝘄 𝗮𝗰𝗾𝘂𝗶𝘀𝗶𝘁𝗶𝗼𝗻𝘀

JAPEX Norge has wrapped up the acquisition of an interest in an offshore license, allowing it to enrich its portfolio with initial producing assets offshore Norway.

In addition, the company brought to an end its sale of partial interests in two exploration licenses on the Norwegian Continental Shelf (NCS) to Norway’s Concedo.

Eni and Vår Energi have added new assets to their portfolios by completing the acquisition of Neptune Energy ’s oil and gas assets - aside from the firm’s German portfolio - for a total aggregate enterprise price of $4.9 billion.

DNO ASA is in the process of expanding its North Sea portfolio with the acquisition of ONE-Dyas's interest in a Shell-operated gas field on the UK Continental Shelf (UKCS).

Deltic Energy has taken steps to sell a partial stake in a Shell-operated license, containing a prospect, which is due to be drilled later this year with Valaris Limited's jack-up rig. Dana Petroleum Limited has decided to snap up this asset and join the planned hydrocarbon exploration game once drilling activities begin.

TotalEnergies is in the process of enlarging its overall gas portfolio with more assets offshore Malaysia, thanks to a deal with OMV, which will enable the French player to obtain a stake in SapuraOMV Upstream, a 50:50 joint venture between Sapura Energy and the Austrian firm. The oil major’s portfolio enhancement is expected to come with a total price tag of $903 million.

𝗨𝗞 𝗴𝗼𝗲𝘀 𝗼𝗻 𝗹𝗶𝗰𝗲𝗻𝗰𝗲 𝗮𝘄𝗮𝗿𝗱𝗶𝗻𝗴 𝘀𝗽𝗿𝗲𝗲

The UK has revealed its second tranche of license awards from 115 applications in its 33rd offshore oil and gas licensing round. Due to this, the total number of licenses awarded so far has climbed to 51. The latest batch brought 24 new licenses to 17 oil and gas players - including Shell, Equinor , BP, TotalEnergies, and NEO - in the North Sea and West of Shetland areas.

𝗪𝗼𝗼𝗱𝘀𝗶𝗱𝗲 𝗺𝗮𝗸𝗲𝘀 𝗮 𝗽𝗹𝗮𝘆 𝗳𝗼𝗿 𝗦𝗮𝗻𝘁𝗼𝘀 𝗯𝘂𝘁 𝗺𝗲𝗿𝗴𝗲𝗿 𝘁𝗮𝗹𝗸𝘀 𝗳𝗮𝗹𝗹 𝘁𝗵𝗿𝗼𝘂𝗴𝗵

While the news that Woodside Energy and Santos Ltd are abandoning merger talks may be shocking to some, others have expected this outcome all along. These discussions could have brought an A$85.7 billion (about $55.9 billion) merger to life, creating an Australian gas market giant, had they been successful.

📰For more recent news, check out these headlines and visit our website:

• 🔗Venezuela and Bermuda player in talks over potential FLNG tech investment
• 🔗Wintershall Dea’s drilling ops with Transocean rig cleared for take-off
• 🔗Chevron’s CEO: Oil & gas go hand in hand with low-carbon solutions
• 🔗International offshore rig count activity gets a boost in January
• 🔗Sweden closes investigation on Nord Stream pipeline incident
• 🔗Centrica concludes LNG supply deal with Repsol
• 🔗Sempra and JBIC join forces to pursue energy transition opportunities
• 🔗MOL emerges as preferred supplier of Poland’s first FSRU
• 🔗As ink dries on another collaboration deal, PTTEP going in hot pursuit of CCS tech advancement

Thanks for reading this newsletter and stay tuned for our next edition!

Kind Regards,

𝑴𝒆𝒍𝒊𝒔𝒂 Č𝒂𝒗č𝒊ć

Senior Editor at Offshore Energy Today

📌 Want to stay in the loop?

Let us be your eyes and ears in the offshore energy industry and do not forget to subscribe to Offshore Energy's daily newsletter, which will be sent straight to your inbox, so that, you can start your day with your morning dose of coffee/tea and all our content at your fingertips.

📌Wondering where you can showcase your experience and expertise in #oilandgas, #offshorewind, #greenmarine, #subsea, #marineenergy, #hydrogen, and other offshore energy sectors while getting the latest scoop on the developments in the industry?

Look no further than Offshore Energy Exhibition & Conference 2024 (OEEC 2024) and come to RAI Amsterdam in the Netherlands on November 26 & 27, 2024. You can now buy your ticket for this event at Offshore Energy's OEEC event website! The registration is due to open in May 2024, but keep an eye out for early bird ticket rates. If you want to exhibit at #OEEC2024, hurry up and book your stand! If booked until February 29, new exhibitors receive a 5% discount and previous exhibitors a 10% one.

📌To ensure you do not miss out on overviews from other markets available on Offshore Energy, subscribe to their market-specific LinkedIn newsletters:

• offshoreWIND.biz LinkedIn page: offshoreWIND.biz daily recap
• Offshore Energy - Subsea LinkedIn page: Subsea News Weekly
• Offshore Energy - Green Marine LinkedIn page: Green Marine Gazette - weekly publication
• Offshore Energy – Alternative Fuels LinkedIn page: Clean Fuel weekly

Follow us on: LinkedIn | X (former Twitter) | Facebook | Google News | Google News - Offshore Energy

#offshoreenergy offshoreoilandgas #fossilfuels #offshoredrilling #rigs #offshoreenergytoday