EAI’s NRGBriefs: May 2024

Instant Max AI Immediate Frontier

(Energy Analytics Institute, 31.May.2024) — Energy briefs as well as others related to finance and projects during May 2024 including Offshore Technology Conference (OTC) 2024 highlights from Houston, Texas; the government of Trinidad and Tobago receiving a specific 2-yr licence from OFAC to pursue the exploration, production and export of gas with the government of Venezuela for the Cocuina-Manakin hydrocarbon field; TotalEnergies taking a FID for the Atapu-2 and Sépia-2 pre-salt developments offshore Brazil; ADNOC acquiring a 11.7% stake in Phase 1 (Trains 1-3) of NextDecade Corporation’s LNG export project located in Texas; CGG changing its name to Viridien; BPX Energy, the U.S. upstream subsidiary of BP looks to invest an avg. $2.5bn/yr in CAPEX between 2024-2030 as it looks to boost production to 650,000 boe/d by 2030; WoodMac commenting on investments if the Republicans win in November 2024; PetroTal reporting 1Q:24 average sales and production of 18,347 b/d and 18,518 b/d, respectively; and more.

NORTH AMERICA

Canada

— “During 1Q:24, our high-grade Segovia Operations produced 44,909 ounces of gold at a processed grade of 9.42 g/t, which was in-line with our mine plan for the quarter. As we announced in Apr., our operations are on-track to achieve full year 2024 production guidance of 220,000-0240,000 ounces,” Aris Mining CEO Neil Woodyer said 14 May 2024 in an official stmt. 

— PetroTal reported 1Q:24 avg. sales and production of 18,347 b/d and 18,518 b/d, respectively. The co. generated free funds flow of $53mn (10% quarterly yield), inked a purchase and sale agreement (PSA) to acquire blk 131, and declared a dividend of $0.015/shr payable 14 Jun. 2024, the co. said 9 May 2024 in an official stmt.

US — Non-OTC

— The lead contractor for Golden Pass LNG filed for bankruptcy protection, creating risk of a potentially extended delay for the LNG project owned by ExxonMobil and QatarEnergy. The timing for Golden Pass is a key factor that could swing natural gas demand and prices in 2025, East Daley Analytics said 30 May 2024 in a research rpt.

Paratus Energy Services Ltd. gave notice 30 May 2024 in an official stmt. that in response to it solicitation of consents from the holders of the Senior Secured Notes due 2026 (CUSIPs 81173J AC3, G8000A AH6 and 81173J AD1; ISINs US81173JAC36, USG8000AAH61 and US81173JAD19) (the “Notes”) governed by that Amended and Restated Indenture, dated as of 20 Jan. 2022, as set forth in the co.’s Consent Solicitation Statement dated 23 May, that the Requisite Consent was achieved.

Golden Pass LNG acknowledges the bankruptcy filing by Zachry Industrial, Inc., a party to the EPC contract for construction of our LNG terminal. Work continues on the project w/ McDermott and Chiyoda, the other two parties to the EPC contract. The project is already 75% progressed and Golden Pass LNG reiterated 21 May 2024 in an official stmt its commitment to complete the project.

ADNOC acquired a 11.7% stake in Phase 1 (Trains 1-3) of NextDecade Corporation’s LNG export project located in Texas, which is expected to produce a less carbon-intensive LNG, ADNOC said 20 May 2024 in an official stmt.

APA Corporation announced the sale of non-core producing properties by Apache Corporation and certain of its subsidiaries in two separate transactions with aggregate proceeds of more than $700mn, prior to customary closing adjustments. Combined, the properties represent estimated net production in the 1Q:24 of 13,000 (boe/d), of which just over one-third is oil. Proceeds from these asset sales will be used primarily to reduce nearer-term borrowings. Closing for both sales is expected early in the 3Q:24, APA said 20 May 2024 in an official stmt.

— A judge cleared the way for final offers for Citgo Petroleum Corp.’s US parent, denying objections from Venezuela’s state-owned oil co. PDVSA to the bidding process for the oil refiner’s court-ordered sale, Bloomberg reported 17 May 2024. According to the NYC-based news agency, Judge Leonard Stark concluded at a hearing in Wilmington, Delaware, that a special master’s proposed instructions for taking final bids next mth was “not inconsistent” w/ the approved sale process. The instructions didn’t improperly favor investors holding a defaulted 2020 bond backed by a controlling stake in PDV Holding, which owns the US refiner, the judge found.

BPX Energy, the US upstream subsidiary of BP looks to invest an avg. $2.5bn/yr in capex between 2024-2030 as it looks to boost production to 650,000 boe/d by 2030, up from an avg. 424,000 in the 1Q:24. BPX also looks to achieve zero routine flaring at its U.S. onshore operations by 2025. The co. aims to accomplish this primarily through significant investments in new and upgraded infrastructure, according to details on the co.’s website.

— A Republican victory in 2024 could roll back decarbonisation policies and usher in a delayed energy transition for the US, WoodMac said 16 May 2024 in a research rpt. Low carbon supply investment occurs, just not at the pace for net zero, and Nov. election results in the US could decelerate energy transition, w/ $1tn in energy investment on the line, WoodMac said.

Citgo Petroleum reported EBITDA of $1.4bn in 1Q:24, net income of $410 mn, EBITDAof $709mn and Adjusted EBITDA of $677mn. Total liquidity at qtr-end was $4.5bn, including full availability under Citgo’s $500mn A/R securitization facility, the Houston-based refiner said 9 May 2024 in an official stmt. Total throughput of 830,000 b/d, the third highest avg throughput for a qtr in co. history. Also, Citgo reported strong asset reliability for the qtr, w/ 95% overall avg crude utilization despite turnaround activities.

Occidental’s (NYSE: OXY) BODs declared a regular quarterly dividend of $0.22/shr on common stock, payable on 15 Jul. 2024, to stockholders of record as of the close of business on 10 Jun., the co. announced 1 May in an official stmt.

US: Houston — Offshore Technology Conference (OTC)

— OTC’s inaugural Young Professionals Day successfully launched on 9 May 2024, OTC announced in an official stmt. Tailored to provide learning and networking opportunities for the next generation of energy professionals, the program featured panel sessions with experts and executives from academia and the private sector sharing their knowledge. Key organizations included, Rice University, ExxonMobil, Chevron, Baker Hughes, Tenaris and Shell, discussing a range of topics from career progression to the role of AI and Machine Learning. In addition, attendees joined an exclusive tour of the exhibit floor and networking happy hour.

— Italy is taking a comprehensive approach to a sustainable energy transition. Industry experts and bilateral trade groups convened for the Around the World panel to emphasize the need for increased investments to power the future of energy, OTC announced 9 May 2024 in an official stmt. Carbon capture and renewable growth were highlighted as two key areas critical to Italy’s achievement of emissions reductions goals.

— W/ successful oil projects underway in Guyana, ExxonMobil’s Guyana President, Alistair Routledge and Guyana’s Energy Minister, Vickram Bharrat sat down to discuss the country’s emergence as a regional powerhouse, “we are very encouraged with the work that has been going on with all the technical teams and concepts, and maturing and understanding of that resource both from a reservoir static to a dynamic performance perspective,” OTC announced 9 May 2024 in an official stmt.

Chevron’s Chris Powers delivered key insights into the co.’s low carbon developments during an Executive Dialogue session, emphasizing it would “take all solutions to help navigate the world energy evolution and meet the world’s continued demand for energy…. the world is always on an energy evolution.” In a separate panel session, project managers for the co.’s Anchor Deepwater Project discussed the progress the drillship has made to reach oil by mid-2024.

— Audiences during the Marine Mining and Understanding the Narrative panel session were engaged as speakers elaborated on marine mining’s evolving role in the energy landscape. Samantha Smith, Director at Blue Globe Solutionshighlighted that the world would need to build a city the size of New York City every 11 wks to meet growing urbanization and population growth by the end of the century. Marine Mining was recognized as a key tool to power increased demand because of the resources’ multi-mineral properties and low environmental impact.

— It was a full house at this afternoon’s Africa Energy Forum. Energy ministers from Nigeria, Ghana and Namibia highlighted the policies African govt’s and oil cos. are adopting for sustainable oil exploration. The Around the World session also explored the participation of women in the industry, key regulations and policies to enable exploration and ESG.

— Dr. Scott Tinker, Director Emeritus of the Bureau of Economic Geology at UT Austin kicked off OTC 2024 with a keynote session on the environmental footprints and economic impacts of energy, OTC said 7 May 2024 in an official stmt. The session explored the trade-offs of varying energy resources and the challenge facing the human race as we work to increase human flourishing while also protecting the environment.

SLB’s Vision of the Future Offshore Energy Market exec dialogue session, featuring Abdellah Merad, EVP of Core Services & Equipment, captured the minds of individuals in the room as he discussed the realities of autonomous drilling and the significance of digitization in increasing performance efficiencies and driving emissions reductions, OTC said 7 May 2024 in an official stmt.

EUROPE

France

CGG changed its name to Viridien after approval from the shareholder at the Annual General Meeting on 15 May 2024, positioning the co. to further accelerate growth as an Advanced Technology, HPC and Earth Data co., CGG said 17 May in an official stmt.

Norway

— “A mild winter, ample storage levels, demand subversion and significant contribution from renewables have reduced European LNG demand,” Flex LNG said 23 May 2023 in an official stmt. “Declining LNG prices help to reboot demand from developing countries in Asia that otherwise turn to coal. Current EU storage levels at 67%. However, the bloc remains significantly spot exposed, with 58%-66% of its total LNG demand currently uncontracted.”

CHC Helikopter Service, the Norwegian division of CHC Helicopter agreed a 12-mth contract w/ Shell to support its operations in the North Sea. The contract covers crew change and transportation services from the Deepsea Yantai Rig to the operator’s Sola and Bergen bases. CHC will utilise an S-92 aircraft to support the rig.

Spain

Pan Global Resources Inc. (TSXV: PGZ) (OTCQX: PGZFF) (FRA: 2EU) announced the addition of a second drill rig at the Escacena Project to augment the planned 2024 drilling program at the co.’s 100%-owned Escacena Project in the Iberian Pyrite Belt, southern Spain, the co. said 23 May 2024 in an official stmt.

LATIN AMERICA AND THE CARIBBEAN

Argentina

GeoPark Limited inked an Asset Purchase Agreement with Phoenix Global Resources (PGR), a subsidiary of Mercuria Energy Trading, for the acquisition of non-operated working interest (WI) in four adjacent unconventional blocks in the Neuquén Basin in Argentina as follows: a 45% WI in each of the Mata Mora Norte producing block and Mata Mora Sur exploration block, located in Neuquén Province, and a 50% WI in each of the Confluencia Norte and Confluencia Sur exploration blocks, located in Rio Negro Province, GeoPark said 13 May 2024 in an official stmt.

Brazil

TotalEnergies, together w/ operator Petrobras and their partners in the Atapu and Sépia consortiums, have taken the FID for the second development phase of Atapu and Sépia fields, located in the prolific pre-salt Santos Basin, offshore Brazil, the French energy giant said 27 May 2024 in an official stmt.

Petrobras dismissed 20 employees who worked closely w/ former CEO Jean Paul Prates, Reuters reported 17 May 2024. Petrobras announced Prates’ exit, sending its shares down. Magda Chambriard, who previously led oil and gas regulator ANP and who holds views considered more closely aligned w/ those of Brazil’s President Luiz Inacio Lula da Silva, has been tapped by the gov’t to take the helm of the state-run oil firm.

Colombia

Ecopetrol S.A. reports that Moody‘s downgraded its global credit rating from Baa3 to Ba1 and changed the outlook from negative to stable. Additionally, the agency reduced the individual rating (BCA1) from Ba3 to B1, the state energy co. said 23 May 2024 in an official stmt.

Trinidad and Tobago

— The Trinidad and Tobago gov’t rec’d a specific 2-yr licence from OFAC at US Treasury to pursue the exploration, production and export of gas w/ the gov’t of Venezuela for the Cocuina-Manakin hydrocarbon field. This licence expires on 31 May 2026, Trinidad and Tobago’s Ministry of Energy and Energy Industries (MEEI) said 30 May 2024 in an official stmt.

AFRICA

— The first ever high-level summit focused on providing clean cooking access to the 1bn people in Africa who currently lack it recently took place in Paris. Organised by the IEA and its partners, it delivered a breakthrough financial commitment for addressing one of the world’s most persistent and deep-seated inequalities. Co-chaired by President Samia Suluhu Hassan of Tanzania, Prime Minister Jonas Gahr Støre of Norway, IEA Executive Director Fatih Birol and African Development Bank Group President Akinwumi A. Adesina, the Summit on Clean Cooking in Africa mobilised $2.2bn in financial pledges from governments and the private sector. Close to 60 countries took part in the Summit, with more than 1,000 delegates attending. President Emmanuel Macron of France also hosted a special session for heads of state and other leaders at the Elysée Palace, including President Julius Maada Bio of Sierra Leone, President Faure Gnassingbé of Togo, Executive Vice President Maroš Šefčovič of the European Commission, and Director-General Tedros Adhanom Ghebreyesus of the World Health Organization.

Gabon

— The national oil co., Gabon Oil Company (GOC), will participate as a Platinum Sponsor at Invest in African Energy 2024, as Gabon seeks new investment to redevelop mature assets and maximize production, GOC announced 9 May 2024 in an official stmt.

ASIA

Indonesia

PETRONAS E&P Bobara Sdn. Bhd., a subsidiary of PETRONAS, inked a PSC for the Bobara Working Area located at the offshore of West Papua, Eastern Indonesia. PETRONAS has been awarded the Bobara Working Area with a total acreage of 8,444.49 km2 during the third round of Indonesia Petroleum Bid Round 2023,  PETRONAS said 14 May 2024 in an official stmt.

IPC Ketapang II Ltd. (PCK2L), a subsidiary of PETRONAS, inked a PSC extension for the Ketapang Contract Area located in the Java Sea following the approval granted by the Indonesian govt through the Ministry of Energy and Mineral Resources on 21 Dec. 2023, effectively extending the contract until 2048, PETRONAS said 14 May 2024 in an official stmt.

Japan

ADNOC delivered the world’s first certified bulk commercial shipment of low-carbon ammonia enabled by CCS to Mitsui & Co., Ltd. for use in clean-power generation in Japan. The low-carbon certification process, from production to delivery, has been conducted by TÜV SÜD, an internationally certification agency, ADNOC said 14 May 2024 in an official stmt. 

____________________

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

Previous post Ecopetrol Reports on Registry of Amendments of its Bylaws
Next post Petrobras on Minority Shareholder Correspondence