Welcoming oil & gas with open arms while cushioning economy woes with offshore energy plays

𝐓𝐡𝐞 𝐰𝐡𝐞𝐞𝐥𝐬 𝐨𝐟 𝐭𝐡𝐞 𝐠𝐥𝐨𝐛𝐚𝐥 𝐞𝐧𝐞𝐫𝐠𝐲 𝐦𝐢𝐱 𝐜𝐨𝐧𝐭𝐢𝐧𝐮𝐞 𝐭𝐨 𝐭𝐮𝐫𝐧, 𝐦𝐚𝐤𝐢𝐧𝐠 𝐜𝐡𝐚𝐧𝐠𝐞𝐬 𝐭𝐨 𝐭𝐡𝐞 𝐟𝐨𝐬𝐬𝐢𝐥 𝐟𝐮𝐞𝐥-𝐝𝐨𝐦𝐢𝐧𝐚𝐭𝐞𝐝 𝐬𝐜𝐞𝐧𝐞𝐫𝐲 𝐦𝐨𝐫𝐞 𝐯𝐢𝐬𝐢𝐛𝐥𝐞 𝐰𝐢𝐭𝐡 𝐧𝐞𝐰 𝐩𝐚𝐭𝐡𝐰𝐚𝐲𝐬 𝐛𝐞𝐢𝐧𝐠 𝐟𝐨𝐫𝐠𝐞𝐝 𝐭𝐨 𝐩𝐮𝐬𝐡 𝐝𝐞𝐜𝐚𝐫𝐛𝐨𝐧𝐢𝐳𝐚𝐭𝐢𝐨𝐧 𝐟𝐨𝐫𝐰𝐚𝐫𝐝 𝐚𝐧𝐝 𝐚𝐜𝐜𝐨𝐦𝐦𝐨𝐝𝐚𝐭𝐞 𝐞𝐦𝐞𝐫𝐠𝐢𝐧𝐠 𝐞𝐧𝐞𝐫𝐠𝐲 𝐬𝐮𝐩𝐩𝐥𝐲 𝐬𝐞𝐜𝐭𝐨𝐫𝐬. 𝐑𝐞𝐠𝐚𝐫𝐝𝐥𝐞𝐬𝐬, 𝐭𝐡𝐞 𝐩𝐫𝐞𝐯𝐢𝐨𝐮𝐬 𝐰𝐞𝐞𝐤 𝐬𝐭𝐢𝐥𝐥 𝐛𝐫𝐨𝐮𝐠𝐡𝐭 𝐦𝐮𝐥𝐭𝐢𝐩𝐥𝐞 𝐮𝐩𝐝𝐚𝐭𝐞𝐬 𝐨𝐧 𝐬𝐭𝐞𝐩𝐬 𝐭𝐡𝐞 𝐨𝐢𝐥 𝐚𝐧𝐝 𝐠𝐚𝐬 𝐢𝐧𝐝𝐮𝐬𝐭𝐫𝐲 𝐡𝐚𝐬 𝐭𝐚𝐤𝐞𝐧 𝐭𝐨 𝐬𝐜𝐚𝐥𝐞 𝐮𝐩 𝐭𝐡𝐞 𝐩𝐫𝐨𝐝𝐮𝐜𝐭𝐢𝐨𝐧 𝐚𝐧𝐭𝐞, 𝐢𝐧𝐜𝐥𝐮𝐝𝐢𝐧𝐠 𝐟𝐮𝐫𝐭𝐡𝐞𝐫 𝐜𝐨𝐧𝐬𝐨𝐥𝐢𝐝𝐚𝐭𝐢𝐨𝐧 𝐦𝐨𝐯𝐞𝐬.

⁕ Many, including Offshore Energies UK , believe that oil and gas entwined with other offshore energy sources can lend a helping hand in boosting the economy and pave the way for a much anticipated sustainable future. While oil and gas projects have the potential to create £145 billion (around $182.85 billion) for Britain’s supply chain, new offshore wind farms around the UK could generate £260 billion (nearly $327.9 billion), new hydrogen projects £25 billion (over $31.5 billion), and carbon capture and storage (CCS) technology could bring in £34 billion (almost $42.9 billion).

David Whitehouse, Offshore Energies UK’s CEO, highlighted: “A homegrown energy transition can generate a £450bn domestic opportunity for UK firms by 2040 that could kickstart growth across the UK economy. But investors, firms and workers need stability, predictability and fair returns to build a low carbon future here and keep jobs in the UK. We are in a global race for investment, and UK energy companies need supportive long-term policies, a stable tax regime, and responsible rhetoric from all sides."

⁕ A jack-up rig, operated by Northern Offshore Ltd , has spudded the first well in Masirah Oil Limited 's drilling program offshore Oman and will move to the work-over of two existing production wells at the field, once it finishes drilling this well.

⁕ Shell is moving forward with an oil development offshore Brazil for which a final investment decision is targeted next year. The oil major has now selected MODEC to provide front-end engineering and design (FEED) services for an FPSO that will work on the project.

⁕ Beacon Offshore Energy has sold its non-operated interests in multiple fields in the Gulf of Mexico.

⁕ Following a tragic fire incident at its offshore platform in Gabon, Perenco is determined to find the cause of this fatal accident, which resulted in the death of five workers while one worker remained missing.

⁕ One of the highlights of the week came from Ithaca Energy , which disclosed a potential transformational combination, thanks to an exclusivity agreement with Eni , covering substantially all of the oil major's UK upstream assets, entailing the recently acquired Neptune Energy portfolio but excluding some assets such as the Italian player’s carbon capture, utilization, and storage (CCUS) ones and its Irish Sea portfolio.

⁕ Woodside Energy has wrapped up the sale of a partial stake in the Scarborough Joint Venture, comprising the giant Scarborough gas field and associated offshore and subsea infrastructure, to LJ Scarborough, a subsidiary of LNG Japan, which is a joint venture between Sumitomo Corporation and Sojitz Corporation .

⁕ ADNOC Group has kicked off oil production from an offshore block in the UAE, intending to meet the growing demand for Abu Dhabi’s lower-carbon intensity oil and gas.

⁕ Norway is anticipating more oil and gas after Equinor and DNO ASA finished drilling an appraisal well and side-track to delineate an oil and gas discovery, which was made last year in the Norwegian sector of the North Sea.

⁕ Stena Drilling has put the wheels into motion to enhance its newest drillship with an equipment upgrade, which is anticipated to enable the drilling of previously inaccessible reservoirs.

⁕ Blue Water Shipping has tucked a new deal under its belt with Yinson Production related to the transport of FPSO modules destined for a project offshore Angola.

⁕ As inflation takes its toll, Beach Energy Ltd has revealed plans to cut its headcount by 30% to achieve efficiency and operational cost improvements.

⁕ McDermott International, Ltd is going back to work on a project in Malaysia, thanks to an offshore transportation, installation, and commissioning contract with PTTEP . The U.S. player previously worked on this project in the early 2010s.

⁕ As the energy transition journey gains ground, North Sea Transition Authority has come up with a new plan to curb the emissions footprint and reach net zero targets, which calls for more action to decarbonize production, encompassing flaring and venting and the electrification of oil and gas installations.

⁕ There is no smooth sailing for the oil and gas industry, as it is facing many attempts from environmental and climate activists to ban offshore drilling and shut down new projects before they can even come onstream. This was illustrated by Greenpeace activists at the headquarters of OMV Petrom in Bucharest, Romania. These protesters want to stop the development of a natural gas project in the Romanian part of the Black Sea, as they are convinced that the energy industry should direct all its attention to the transition to renewable and clean energy rather than more fossil fuels.

𝗣𝘂𝗿𝘀𝘂𝗶𝗻𝗴 𝗟𝗡𝗚 𝘄𝗶𝘁𝗵 𝗱𝗲𝗳𝗶𝗻𝗶𝘁𝗲 𝘀𝗽𝗿𝗶𝗻𝗴 𝗶𝗻 𝗲𝘅𝗽𝗮𝗻𝘀𝗶𝗼𝗻'𝘀 𝘀𝘁𝗲𝗽

⁕ QatarEnergy has enlarged its LNG fleet with 19 more vessels, expanding its shipbuilding program to 104 conventional LNG vessels, thanks to deals for the operation of six ships by CMES LNG Carrier Investment, another six by Shandong Marine Energy (Singapore), three by MISC Group, and four more, which will be operated by a joint venture of "K" line (Kawasaki Kisen Kaisha, Ltd) and Hyundai Glovis. According to Qatar's natural gas heavyweight, 15 of these LNG vessels are being constructed at Samsung Heavy Industries while the remaining four are being built at Hanwha Ocean.

⁕ Hanwha Ocean has got its hands on the KRW 2.4 trillion (approximately $1.8 billion) contract to construct eight LNG vessels that are scheduled for delivery by January 31, 2028.

⁕ Stena Bulk has brought the sale of two LNG carriers to an end. The new owner of these high-specification tri-fuel diesel electric (TFDE) propulsion vessels is BW LNG .

⁕ VTTI and IKAV Energy Inc have entered into a consortium to acquire the majority ownership of Terminale GNL Adriatico, also known as Adriatic LNG , which operates the regasification terminal located 15 kilometers off the coastline of the Veneto region in Italy.

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

• 🔗PetroVietnam to buy LNG from QatarEnergy, first shipment due in April
• 🔗AG&P inks 20-year deal to operate Indonesian LNG import infrastructure
• 🔗New guidance to aid North Sea industry in managing CO2 storage sites

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

Kind Regards,

𝑴𝒆𝒍𝒊𝒔𝒂 Č𝒂𝒗č𝒊ć

Senior Editor at Offshore Energy Today

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