Exxon withdraws from talks with Guyana about shallow water oil blocks, says the government
Exxon Mobil, a U.S. oil company and its partners pulled out of negotiations on Thursday with Guyana’s government over terms for exploring and developing an oil block in shallow water. Exxon, Hess of the United States and CNOOC from China won the offshore block S8 during a bid round that was launched by President Irfaan Ali in late 2022 to diversify Guyana’s energy industry. Exxon officials and Exxon had stated that the companies were engaged in negotiations this year for the non-fiscal aspects of the project. Natural Resources Minister Vickram Bharrat confirmed that Hess and CNOOC partners also withdrawn from the discussions.
Fourth oil production vessel to leave Guyana in Q1 of 2025
The CEO of U.S. oil producer Hess John Hess stated on Wednesday that Guyana's fourth floating production, storage and offloading facility (FPSO) is expected to depart the South American nation in the first quarter of next year. Yellowtail, the fourth project of the firm that is responsible for the oil and gas production throughout South America, will add an additional 250,000 barrels a day (bpd). Hess said at the Wolfe Research Oil and Gas Conference that Yellowtail is "the exciting thing for 2025". He said that the FPSO for Yellowtail should be sailing to Guyana by the first quarter of the year, with startup later in the same year.
Norway's oil and gas sector invests record amounts due to inflation
A survey by the Norwegian National Statistics Office (SSB) showed that investment in oil and gas projects in Norway will reach a new record in 2018. It may even increase in 2025, as inflation increases costs for development. Norway has sanctioned new fields in recent years as companies have taken advantage of tax breaks during the pandemic to accelerate projects. This is part of a strategy to increase oil and gas production over decades. The largest business sector in the country forecasts a record-breaking investment of $22.9 billion in 2024.
Occidental Petroleum exceeds profit expectations for the third quarter on higher production
Occidental Petroleum, a U.S. oil-and-gas firm, beat Wall Street expectations for the third quarter profit on Tuesday. However, overall earnings dropped 14% due to losses on asset sales and a decline in chemical results. The third quarter results of oil companies were lower than the previous year due to lower prices for oil and gas. Occidental's quarter profit includes one-time losses on asset sales, and gains from share sales and derivatives. Occidental reported that its operating profit for pumping oil and natural gas dropped 25% to $1.2 Billion due to losses on asset sales. It suffered a loss of $572 million on the sale.
EOG Resources beats Q3 profit estimates, boosts share buyback program
EOG Resources increased its share-repurchase program after beating Wall Street expectations for the third-quarter profits, due to higher production and lower prices. The U.S. Energy Information Administration reported that total oil consumption in the United States rose to its highest level for the season since 2019. In July, the gasoline demand also reached its highest levels for the season since 2019. The demand for jet fuel was at its highest level since August 2019 and benefited oil companies like EOG Resources. The quarterly crude oil equivalent volume was up 7.7% to 1.08 million barrels per day (MMboepd).
Ghana's oil production increases for the first time in five years
Ghana's crude output increased 10.7% on an annual basis in the first half of 2024. This reversed a five-year-old decline in production. Ghana, Africa's largest gold producer, started producing crude oil in 2010. However, output dropped to a 5-year low by 2023, due to declines in production from existing fields. This effectively erased gains made by new wells. PIAC, a government body tasked to monitor the oil sector, reported that the production of crude oil had risen to 24,86 million barrels in June 2024. This is compared with a decline of 13.2% over the same time period in 2023.
Devon Energy beats profit estimates, raises production forecast
Devon Energy, an oil and gas company, reported a third-quarter profit that was above expectations due to strong production. It also forecast higher production for the current quarter as a result of its $5 billion Grayson Mill purchase. In after-market trading, shares of the company rose 1.5% to $39.92. The U.S. Energy Information Administration reported that total oil consumption in the United States reached its highest level for the season since 2019. The demand for jet fuel was the highest since August 2019. Oil companies like Devon benefited from this.
Orsted says US Green Energy Demand Will Grow Regardless of Election Results
Orsted said that the demand for green power will continue to grow in the United States, regardless of the person who is elected as president. However, the group also pointed out construction issues and increased costs at an offshore wind farm in the United States.The U.S. offshore industry is a young one, and it has already been affected by cancelled projects. Lease sales have also been put on hold. And there was a serious construction accident that occurred at the first major offshore project in the country.As part of the administration of President Joe Biden…
Diamondback Energy misses Q3 profit estimates, raises annual production forecast
Diamondback Energy missed Monday's estimates for the third quarter profit as it was hit by lower prices. However, its forecast for production for this year got a boost thanks to its acquisition of Endeavor Energy for $26 billion. Oil prices dropped in the third quarter, after an interest rate reduction by the Federal Reserve that was larger than expected sparked concern about the U.S. economic situation as well as global demand. The company has been announcing its results for the month of September. Lower prices for its third quarter oil and gas production. This makes it the third U.S.
Aker BP Q3 profits fall short of forecasts, but output guidance is raised
Aker BP, a Norwegian oil company owned in part by BP, reported a larger-than-expected drop in operating profit for the third quarter. It also said that full-year production would be at or above its guidance. A poll of analysts conducted by the company showed that an average of $1.89 billion was expected. The company reported a third-quarter output of 414.700 boed, down from the 449.800 boed it had a year ago, due to maintenance planned at several fields. Aker BP expects the production to increase in the fourth quarter.
Norwegian infrastructure fund Aker to launch 1 billion euros in 2025
The head of the Infrastructure unit at Industry Capital Partners, a Norwegian investment fund for energy transition, backed by Aker ASA industrial group, said that it plans to launch a 1 billion euro ($1.08 billion), inaugural fund in 2019. Christian Rynning Toennesen, the head of ICP Infrastructure in Oslo said that they were working on energy projects onshore. He added that the projects were mainly for onshore winds, along with investments in data centers and power grid technologies, and are currently focused in Norway, Sweden. Rynning-Toennesen was the former CEO of Statkraft, a Norwegian energy producer.
Source: Energean has loaded a new oil unit on a vessel off Israel
LONDON, October 25 - Energean added a second unit of oil production to a production vessel that is floating off Israel. This will boost the crude production by as much as two-thirds over the next few months, according to an industry source. Recent days, the M10 oil train modules was lifted onto the Energean Power floating storage and offloading vessel (FPSO), which produces primarily natural gas for the Israeli domestic market from the Karish Field. The source stated that installation and commissioning of the module could take up to 6 months.
Vaar Energi Q3 operating profit beats expectations
Vaar Energi, a company listed in Oslo and majority owned by Italy's Eni, reported a higher-than-expected third-quarter operating result on Tuesday. It also forecast lower capital expenditures and production costs for 2024. The company's earnings before tax and interest (EBIT) fell from $907 to $740 in the April-June period, but were still higher than the $702 average forecast of 13 analysts who took part in the poll. Vaar expects to have its production costs below $13 for the entire year, compared to an earlier guidance of $13.5-14.5 per barrel of equivalent oil (boe).
Norway court rejects environmental order against oil and gas field
The Norwegian Court of Appeal ruled on Monday in favor of the Government in an appeal brought by environmentalists who wanted to stop the development of three gas and oil fields. Greenpeace, among others, sued the Norwegian Government to stop the development of new oil and natural gas resources. This is the latest dispute related to climate change. In January, a lower court found that Norway's Energy Ministry failed to assess fully the climate impact of future oil and gas use in the fields, also known as scope three emissions. This ruling was made in response to a lawsuit filed by Greenpeace and Nature and Youth.
Equinor, Aker BP, Vaar face rising project costs, Norway budget shows
The Norwegian government announced on Monday that Aker BP, Equinor and Vaar Energi had raised their estimates of costs for major oil and natural gas development projects in the Norwegian continental shelf. The government's fiscal budget documents revealed that the cost of Equinor Johan Castberg is expected to rise from 80.3 billion crowns, which was estimated a year ago. Aker BP’s Yggdrasil will likely cost 134.4 billion crowns compared to 120.2 billion crowns a year ago, and Vaar’s Balder Future is expected at 52.2 billion crowns compared to 44.5 billion crowns.
Infinity Natural, a company that produces oil and natgas, files for an IPO in the US
Infinity Natural Resources, an oil and natural gas developer, is planning to launch its initial public offering (IPO) in the United States. This comes after the company nearly doubled its revenue during the first half year. Infinity, backed by investment firms Pearl Energy Investments (PEI) and NGP Capital (NGP Capital), will seek to list at the NYSE. The filing was made just days after the shares of BKV, a natural gas producer, began trading. Infinity will enter the public markets in a strong financial position.
Petrobras claims that the Sirius gas field in Colombia could produce 13.3 million cubic metres of gas per day.
Petrobras' exploration general manager Rogerio Soares, who spoke at a conference for the industry on Thursday, said that Colombia's offshore Sirius well could produce 13.3 million cubic metres per day in 10 years. Soares, speaking at the Colombian Petroleum Association (ACP)'s forum on oil and gas in Cartagena, said that the initial concept of Sirius envisioned the first offshore gas production in 2029- 2030. Four wells would be producing and a total of 13,3 million cubic metres per day was expected for a period of 10 years.
Ithaca Energy joins Eni's North Sea Business
Ithaca Energy announced on Thursday that it had completed a deal worth 754 million pounds ($993 millions) to purchase nearly all the UK oil and natural gas assets of Eni. This was a 100% share transaction, which created one of the largest independent energy companies operating in the North Sea. Luciano Vasques was the former Eni UK Managing Director and CEO of the combined company. This move is part Eni's'satellite strategy', through which the company has spun off businesses that are focused on certain geographical areas to attract investors.
Suriname oil and gas project worth $10 billion to be approved by TotalEnergies and APA
TotalEnergies, a French company, and APA Corp, based in the United States, announced on Tuesday a positive decision to invest in Block 58 of Suriname, the most promising offshore oil and gas project. This is expected launch Suriname’s first offshore production. The small South American nation wants to follow the example of its neighboring Guyana. In 2019, a consortium led Exxon Mobil began developing over 11 billion barrels worth of recoverable gas and oil resources, making the country a major producer. Total said that the decision to invest $10 billion in the project will be taken in the fourth quarter.
Sources say that Shell is the preferred bidder in Trinidad for a shallow water block
Three people familiar with the process have confirmed that Trinidad and Tobago has selected Shell as its preferred bidder to bid on a shallow-water block. This bidder beat out BP and EOG Resource. Trinidad and Tobago's natural gas production has declined in recent years, and the country has struggled to supply its petrochemical and liquefied gas plants. The government organized bid rounds and pressed producers to deliver the first output of offshore projects. Shell and BP have the largest stakes in Trinidad's Atlantic LNG Project, which is a 15.3 million ton per year project.
