Energy Analytics Institute’s NRGBriefs: October 2022

(Energy Analytics Institute, 31.Oct.2022) — Energy briefs as well as others related to finance and politics during October 2022 including US President Joe Biden congratulating Luiz Inácio Lula da Silva on his election victory in Brazil over Jair Bolsonaro; Equinor inviting analyst to provide estimate for the third quarter of 2022 adjusted results; Europe being in the midst of a full-blown energy crisis with prices having surged to new record highs; Guyana’s President Irfaan Ali meeting with the Minister of Energy Affairs of the State of Qatar HE Eng. Saad bin Sherida Al-Kaabi; and more.

EUROPE

Norway

Equinor invited analysts w/ coverage of the co. to provide estimates for the 3Q:22 adjusted results, the co. revealed 7 Oct. 2022 in a stmt on its website. The co. plans to publish its  3Q:22 financial results on 28 Oct.

Sweden

— Sweden’s security service said recent ruptures in Nord Stream pipelines were due to detonations, UK’s Cityam.com reported on 7 Oct. 2022

UNITED KINGDOM

England

Shell‘s 3Q:22 results Q&A webcast for investor relations.

Shell‘s 3Q:22 results Q&A webcast for media.

— Rishi Sunak is set to replace Liz Truss and become the UK’s third Prime Minister to date in 2022, the young British citizen of Asian parents announced 23 Oct. 2022 in a post on Twitter.

— The British Conservative Party has defeated Labour’s bid to ban fracking amid farcical scenes in the House of Commons, media outlet The National News reported on 19 Oct. 2022.

The North Sea Transition Authority (NSTA) will offer an add’l 34 blks in the 33rd Oil and Gas Licensing Round. The blks will be available in the Central North Sea and Southern North Sea, and the extra acreage is available following further consultation w/ the MoD, the NSTA revealed 13 Oct. 2022 in a stmt on its website. The round opened on 7 Oct. 2022 and will close on 12 Jan. 2023. 

— “Europe is now in the midst of a full-blown energy crisis with prices having surged to new record highs and the EU pledging gas and electricity demand curtailments,” S&P Global wrote 2 Oct. 2022 in a post on LinkedIn. “The winter months will soon challenge the sector’s resilience,” the agency wrote.

LATIN AMERICA AND THE CARIBBEAN

Brazil

— After most nail-biting election in Brazil’s recent history, Luiz Inácio Lula da Silva will return for a third term as president after beating Jair Bolsonaro, the right-wing populist incumbent, in a run-off on 30 Oct., The Economist reported 31 Oct. 2022. With nearly all votes counted, the left-leaning Lula, as he is known, won 50.9% to Mr Bolsonaro’s 49.1%, the tightest margin since Brazil’s return to democratic elections in 1989. It is the first time that an incumbent has failed to win re-election, the magazine reported.

— “I send my congratulations to Luiz Inácio Lula da Silva on his election to be the next president of Brazil following free, fair, and credible elections,” US President Joe Biden announced 30 Oct. 2022 in an official stmt from The White House. “I look forward to working together to continue the cooperation between our two countries in the months and years ahead.”

Petrobras, regarding the news in the media about the readjustment of fuel prices, announced 14 Oct. 2022 in an official stmt that it “maintains its commitment to the practice of competitive prices and in balance with the market, while avoiding the immediate pass-through of external volatility and of the exchange rate caused by circumstantial events.”

Petrobras will release its 3Q:22 Production and Sales Report on 24 October 2022 and its 3Q:22 Financial Performance Report on 3 Nov. 2022, both after the mkts close, the co. announced 13 Oct. 2022 in an official stmt.

Colombia

Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) said that together w/ the subscription of the Declaration of the Nation as majority shareholder and according to the established procedure, the current representatives of the hydrocarbon producing departments in which Ecopetrol operates, signed a document through which they unanimously agreed to nominate Mrs. Sandra Ospina Arango as their candidate to the BODs, the co. revealed 7 Oct. 2022 in an official stmt.

— Rising fuel prices have been a worrisome issue across LatAm, often leading to social unrest, CGTN reported on 5 Oct. 2022, adding that Colombia has had some of the cheapest fuel in the region only behind Venezuela and Bolivia. However, now, the new gov’t of Gustavo Petro in Bogota says the price needs to rise but carefully. 

Guyana

ExxonMobil reports that two FPSO vessels, Liza Destiny and Liza Unity, are produced above design capacity and achieved an average of nearly 360,000 b/d in the 3Q:22. Additionally, two new discoveries offshore Guyana announced this wk bring the total to more than 30 discoveries on the co.’s Stabroek Block in Guyana to date. A third project, Payara, is expected to start up by YE:23, and a fourth project, Yellowtail, is expected to start up in 2025. ExxonMobil is also currently pursuing environmental authorization for a fifth project, Uaru, the co. announced 28 Oct. 2022 in an official stmt. Lastly, by 2030, we expect Guyana’s oil production capacity to be more than 1 MMb/d.

— “Two additional discoveries announced in Guyana further enhance [Hess’] long-term visibility/cash flow profile,” Wells Fargo equity analysts Roger D. Read and Lauren Hendrix Walker wrote Oct. 26 in an research rpt to clients.

— In the 3Q:22 Hess Corporation sold eight crude oil cargos from Guyana vs three cargos in the 3Q:21, the co. announced 26 Oct. 2022 in an official stmt. In the 4Q:22, Hess expects to sell nine crude oil cargos.

— Guyana’s President Irfaan Ali met w/ the Minister of Energy Affairs of the State of Qatar and Managing Director and CEO of QatarEnergy, HE Eng. Saad bin Sherida Al-Kaabi, and his delegation at the Office of the President to discuss issues related to potential collaboration between the govts of Guyana and Qatar in the areas of energy, food, infrastructure and aviation, Guyana’s Ministry of Natural Resources reported 12 Oct. over Instagram.

Aris Mining Corporation (TSX: ARIS) (OTCQX: TPRFF) announced effective 1 Oct. 2022, Mónica de Greiff was appointed as an independent member of the BODs, and as Chair of the Sustainability Committee of the Board.

Mexico

Pemex will host its 3Q:22 webcast to discuss operating and financial results for the qtr on 28 Oct. 2022, the co. announced in an official stmt.

Source: Wintershall Dea

Wintershall Dea inked a deal w/ Hokchi Energy, the Mexican subsidiary of Pan American Energy, to buy a 37% non-operated participating interest in the Hokchi Block, w/ a conditional option to increase its participation up to 40% at a later stage, Wintershall revealed 24 Oct. 2022 in an official stmt.

— Mexico has started its massive annual oil-hedging program, which typically draws Wall Street banks such as Goldman Sachs Group Inc. and seeks to lock in crude revenues, Bloomberg reported 11 Oct. 2022.

Trinidad and Tobago

— Trinidad and Tobago’s Minister of Energy and Energy Ministers Stuart Young said on 5 Oct. 2022 over Instagram that he was offering himself to “the PNM for the position of Chairman of the Party.”

Venezuela

— The Iranian oil minister Jawad Owji said that the first refinery built by Iran in an overseas country is El Palito refinery in Venezuela, Mehr News reported 16 Oct. 2022. The minister said the refinery has the capacity of refining 100,000 b/d of crude oil from the country’s fields.

NORTH AMERICA

Canada

Pan American Silver Corp. (NASDAQ: PAAS) (TSX: PAAS) will release its unaudited financial results for the 3Q:22 after mkt close on 9 Nov. 2022. The co. will host a conf. call and webcast at 11am ET on 10 Nov. to discuss the results. Participants may join the conference call via webcast or through the following dial-in numbers: Toll-free in Canada and the US: 1-800-319-4610. Int’l: +1-604-638-5340

SSR Mining Inc. (NASDAQ: SSRM) (TSX: SSRM) (ASX: SSR) will release details containing its 3Q:22 consolidated financial results on 8 Nov. 2022, before mkts open and have a conf. call and webcast: 8 Nov. at 5pm EST. To listen in dial toll-free in US and Canada: +1 (800) 319-4610. All other callers: +1 (604) 638-5340. Webcast: http://ir.ssrmining.com/investors/events

Liquid Meta Capital Holdings Ltd. (NEO: LIQD) (FRANKFURT: N5F) (OTCQB: LIQQF) a decentralized finance infrastructure and technology co. focused on bridging the gap between traditional and decentralized finance, announced on 4 Oct. 2022 in an official stmt that the addition of Christel Sasse as the co.’s chief product officer.

US

— Gasoline shortages have begun to hit the Northeast, kicking pump prices higher, as Russia’s invasion of Ukraine disrupts energy supplies across Europe and elsewhere. New England states and New York are dependent on imports of the fuel, as infrastructure constraints isolate them from Gulf Coast refineries that export heavily to LatAm, LinkedIn reported on 28 Oct. 2022. Even as prices have continued to moderate in much of the rest of the US, they jumped as much as $0.10/gal overnight on Wednesday from Maine to New York.

— CERAWeek 2023 will take place in Houston, Texas from 6-10 Mar. 2023 under the theme “Navigating a World in Upheaval: Energy, Climate and Security.”

Chevron Corporation (NYSE: CVX) will hold its 3Q:22 earnings conf. call on Friday 28. Oct. 2022, at 11am ET (8am PT). Dial-in (listen-only mode): 1-877-502-9276, conf. ID #: 9382025. Speakers will incl.: Chairman of the Board & CEO Mike Wirth, VP and CFO Pierre Breber, and General Manager, Investor Relations Roderick Green.

Comstock Resources, Inc. (NYSE:CRK) changed the date and time of its previously announced earnings release and conf. call for the 3Q:22. The co will now release results on 1 Nov. 2022 after the mkt closes and host its qtrly conf. call at 9am CT on 2 Nov. to discuss the results.

— The Federal Energy Regulatory Commission (FERC) prepared a draft environmental impact statement (EIS) for the Northern Natural Gas Company Northern Lights 2023 Expansion Project in Docket No. CP22-138-000. Northern proposes to construct and operate certain interstate natural gas facilities in Freeborn, Washington, Scott, Sherburne, and Stearns Counties, Minnesota and Monroe County, Wisconsin, the commission announced 14 Oct. 2022 in a stmt on its website. The project would involve six new pipeline segments (4 pipeline extensions and 2 pipeline loops) totaling 9.8 miles of pipe.

IMF‘s “Promoting Inclusive Growth in the Middle East and North Africa: Challenges and Opportunities in a Post-Pandemic World,” published on 13 Oct. 2022 is available here.

— On 6 Oct. 2022 the FERC conducted its first in-person tech conf. at the commission’s HQs in 2.5yrs w/ a full day look at transmission planning and cost mgmt (AD22-8-000), it announced on its website. FERC, or the Federal Energy Regulatory Commission, is an independent agency which regulates the interstate transmission of natgas, oil, and electricity. FERC also regulates natgas and hydropower projects.

SSR Mining Inc. (NASDAQ: SSRM) (TSX: SSRM) (ASX: SSR) announced positive results from 151 diamond drill holes for the Çakmaktepe Extension (Ardich) for the period from May 2021 to June 2022. These results build upon, and are subsequent to, the Çakmaktepe Extension Mineral Reserves reported in the Çöpler Technical Report Summary (“TRS”) effective as of 31 December 2021, in which the Çakmaktepe Extension deposit contributed 1.2 million ounces of gold production to the Çöpler life of mine production profile beginning in 2023 for total development capital of $69mn. As outlined in the TRS, the Çakmaktepe Extension currently hosts 1.7 million ounces of Mineral Reserves, along with an additional 0.6 million ounces of Measured & Indicated Mineral Resources and 0.8 million ounces of Inferred Mineral Resources. Of the 151 diamond drill holes included in this news release, 34 were infill within the current Mineral Reserve pit, 82 targeted Mineral Reserve conversion within the existing Mineral Resource block model, and 35 were step-out intercepts identifying new mineralization outside of existing Mineral Resources.

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By Ian Silverman, Aaron Simonsky and Piero Stewart. © Energy Analytics Institute (EAI). All Rights Reserved.