Petrobras on natural gas flow and processing

Petróleo Brasileiro S.A. – Petrobras informs that together with Equinor Energy do Brasil Ltda. (Equinor) signed the contracts for the Campos Basin Integrated Natural Gas Flow System (SIE-BC) and access to the Cabiúnas Gas Treatment Unit (UTGCAB). 

With the signing of these contracts, Equinor will be able to transport natural gas from the Roncador field, located in the Campos Basin, from January 1, 2024. Equinor has a 25% stake in Roncador, while Petrobras is the operator of the field and holds the other 75%. 

The SIE-BC is made up of sea and land pipelines owned by Petrobras, which connect to the UTGCAB, also owned by Petrobras, located in Cabiúnas, Rio de Janeiro. 

In this way, Petrobras complies with the provisions of the Gas Law, negotiating access to infrastructure and enabling the diversification of agents in all links of the natural gas chain. Petrobras currently has contracts to share the infrastructure in the Santos Basin (SIE BS and SIP), the Catu Cluster (BA) and the Cacimbas Cluster (ES)

ConocoPhillips Makes Final Investment Decision to Develop the Willow Project

ConocoPhillips (NYSE: COP) announced today that it will move forward with development of the Willow project in Alaska. This Final Investment Decision approves the project and funds construction needed to reach first oil. The decision follows the Department of the Interior March 2023 Record of Decision and recent positive court orders, including this week’s Ninth Circuit Court of Appeals denial of plaintiffs’ request for an injunction.

“We are excited to reach this significant milestone,” said Ryan Lance, chairman and chief executive officer. “With this project authorization, we’ve begun winter construction and Alaskans have started to receive the benefits from responsible energy development.”

According to the Bureau of Land Management, the Willow project is projected to deliver $8 billion to $17 billion in new revenue for the federal government, the state of Alaska and Alaska Native communities. When completed, Willow is estimated to produce approximately 600 million barrels across the lifetime of the project, decreasing American dependence on foreign energy supplies. Designed to support and coexist with subsistence activities on Alaska’s North Slope, the Willow project underwent five years of rigorous regulatory and environmental review. Willow will be built using materials primarily made and sourced in the U.S. and has the potential to create over 2,500 construction jobs and approximately 300 long-term jobs.

“We are grateful for the many supporters who advocated for Willow. Alaska Native communities and groups, especially those closest to the project on the North Slope, continually provided input that helped shape this project. We also appreciate the unwavering support from Alaska’s bipartisan Congressional Delegation – Senators Lisa Murkowski and Dan Sullivan and Representative Mary Peltola – the state legislature and organized labor groups,” Lance added. “Our employees and the contractor community have dedicated years to designing a project that will provide reliable energy while adhering to the highest environmental standards.”

Transformational acquisition of Wintershall Dea asset portfolio

Harbour is pleased to announce that it has reached an agreement with BASF and LetterOne, the shareholders of Wintershall Dea AG ("Wintershall Dea"), for the acquisition of substantially all of Wintershall Dea’s upstream assets (the "Target Portfolio") for $11.2 billion (the "Acquisition").

The Target Portfolio includes all of Wintershall Dea’s upstream assets in Norway, Germany, Denmark1, Argentina, Mexico, Egypt, Libya2 and Algeria as well as Wintershall Dea’s CO2 Capture and Storage ("CCS") licences in Europe. Wintershall Dea's Russian assets are excluded. The Acquisition will add 1.1 bnboe of 2P reserves at c.$10/boe and more than 300 kboepd of production at c.$35,000/boepd3.

The Acquisition is expected to transform Harbour into one of the world’s largest and most geographically diverse independent oil and gas companies, adding material gas-weighted portfolios in Norway and Argentina and complementary growth projects in Mexico. Harbour will also benefit from an increased reserve life and improved margins with lower operating costs and greenhouse gas ("GHG") intensity.

Harbour is expected to receive investment grade credit ratings and to benefit from a significantly lower cost of financing resulting from the porting of existing euro denominated Wintershall Dea bonds with a nominal value of c.$4.9 billion4 (the "Wintershall Dea Bonds") and a weighted average coupon of c.1.8 per cent. The Acquisition is also accretive to Harbour’s free cash flow, supporting enhanced and sustainable shareholder returns.

Wintershall Dea Assets

• Algeria
• North Reggane Gas Fields 
• Argentina
• Vega Pleyade Offshore Gas Field 
• Denmark
• Cecilie Oil Field 
• Nini Oil Field 
• Germany
• Mittelplate Oil Field 
• Libya
• Al Jurf Oil Field 
• Norway
• Dvalin Gas Field 
• Maria Oil Field 
• United Arab Emirates
• Ghasha and Hail Sour Gas Fields
• United Kingdom
• Wingate Gas Field 

Shell Invests in the Sparta Development in the Gulf of Mexico

Shell Offshore Inc., a subsidiary of Shell plc, today announced the Final Investment Decision (FID) for Sparta, a deep-water development in the U.S. Gulf of Mexico that represents our competitive approach to simplifying and replicating projects.

Owned by Shell Offshore Inc. (51% operator) and Equinor Gulf of Mexico LLC (49%), Sparta is expected to reach a peak production of approximately 90,000 barrels of oil equivalent per day (boe/d) and currently has an estimated, discovered recoverable resource volume of 244 million boe. Sparta will be Shell's 15th deep-water host in the Gulf of Mexico and is currently scheduled to begin production in 2028.

Sparta showcases Shell's cost-efficient development approach through standardized, simplified host designs, first utilized at the Vito development and later replicated at the Whale development. An enhanced replication of Vito and Whale, Sparta replicates about 95% of Whale's hull and 85% of Whale's topsides.

"Shell's latest deep-water development demonstrates the power of replication, driving greater value from our advantaged positions," said Zoë Yujnovich, Shell's Integrated Gas & Upstream Director. "This investment decision is aligned with our commitment to pursue the most energy-efficient and competitive projects while supplying safe, secure energy supplies today and for decades to come."

Building on more than 40 years of deep-water expertise, Sparta also marks Shell's first development in the Gulf of Mexico to produce from reservoirs with pressures up to 20,000 pounds per square inch.

The Sparta development will be the first of Shell's replicable projects to feature all-electric topside compression equipment, significantly reducing greenhouse gas intensity and emissions from our own operations.

Notes to editors

• The Sparta development spans four Outer Continental Shelf (OCS) blocks in the Garden Banks area of the U.S. Gulf of Mexico.
• Sparta will feature a semi-submersible production host in a depth of more than 1,400m/4,700ft of water, initially with eight oil and gas producing wells.
• Sparta's design closely replicates the 100,000 barrel per day Vito and Whale designs, both of which are four-column semi-submersible host facilities. Vito is located in the greater Mars Corridor and began production in February 2023. Whale will be located in the Perdido corridor and is scheduled to come online in 2024.
• Current estimated recoverable resource volumes of the primary Sparta development are 244 million boe. The estimate of resource volumes is currently classified as 2P under the Society of Petroleum Engineers' Resource Classification System.
• The estimated peak production and current estimated recoverable resources presented above are 100% total gross figures.
• Shell is the leading operator in the U.S. Gulf of Mexico.

Barossa Development Drilling and Completions Environment Plan (EP) accepted

The Barossa Development Drilling and Completions Environment Plan (EP) was accepted by the regulator, the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) on Friday 15 December 2023.

Following the setting aside of NOPSEMA’s March 2022 approval of the EP in September 2022, Santos has conducted further extensive consultation with Tiwi Island people and other relevant persons consistent with the applicable regulations, NOPSEMA’s guidelines, and guidance provided by the decision of the Full Federal Court in the Tipakalippa proceedings.

Santos is proceeding with applications for all remaining approvals for the Barossa Gas Project.

Shell Takes Investment Decision For Phased Wells Campaign At Perdido In US Gulf Of Mexico

Shell Offshore Inc., a subsidiary of Shell plc (Shell), announced the Final Investment Decision (FID) for a phased campaign to deliver three wells in the Great White unit designed to boost production at the Shell-operated Perdido spar in the US Gulf of Mexico (GoM).

After completion of this campaign in April 2025, these wells collectively are expected to produce up to 22,000 barrels of oil equivalent per day (boe/d) at peak rates.

“Shell is the leading operator in the US Gulf of Mexico, and we continue to find ways to build on that position,” said Rich Howe, Shell’s Executive Vice President for Deep Water. “By expanding our Perdido development, we continue to unlock the greatest value from this exceptional resource.”

This investment underscores Shell’s long-term commitment to the US Gulf of Mexico, where production is essential to ensuring a reliable and secure supply of energy. Additionally, production in the US Gulf of Mexico has among the lowest greenhouse gas (GHG) intensity in the world for producing oil.

Notes to editors

• Perdido, a production spar in the US Gulf of Mexico, began production in 2010. It is located approximately 200 miles south of Galveston, Texas in about 8,000 feet of water.
• The wells will be drilled in the Great White unit, where Shell Offshore Inc. is operator with 33.34% WI, with Chevron U.S.A. Inc. holding 33.33% WI, BP Exploration & Production Inc. holding 33.33% WI.
• This phased campaign includes three wells which combined are expected to produce up to 22 kboe/d at peak rates.
• Shell Offshore Inc. is operator of the Perdido Regional Host with 35% Working Interest (WI) in Perdido, with Chevron U.S.A. Inc. holding 37.5% WI, 3C Perdido Holdings LLC holding 26.5% and BP Exploration & Production Inc. holding 1% WI.
• Perdido’s production capacity is 125 kboe/d at peak rates.
• The reference to our U.S. Gulf of Mexico production being among the lowest GHG intensity in the world is a comparison among other IOGP oil-and gas-producing members.
• Shell is the leading operator in the U.S. Gulf of Mexico for oil and gas production.

Shell Assumes 100% Working Interest In Us Gulf Of Mexico Kaikias Field

Shell Offshore Inc., a subsidiary of Shell plc (Shell), has acquired the 20% Working Interest (WI) of MOEX North America LLC (MOEX), a 100% subsidiary of Mitsui & Co., Ltd., in the Kaikias field in the US Gulf of Mexico. Shell now has 100% WI and remains the operator.

“Since its discovery, the Kaikias field has been a productive investment,” said Rich Howe, Shell’s Executive Vice President for Deep Water. “By increasing Shell’s working interest in the field, we are creating options for our future as the leading producer in the US Gulf of Mexico.”

This investment underscores Shell’s long-term commitment to the US Gulf of Mexico, where production is essential to ensuring a reliable and secure supply of energy. Additionally, production in the US Gulf of Mexico has among the lowest greenhouse gas (GHG) intensity for scope 1 and 2 in the world.

Shell and MOEX will submit for federal regulatory approval.

Notes to editors

• The Kaikias field in the US Gulf of Mexico is a deep-water project that uses a subsea tieback to the nearby Ursa production hub.
• Shell discovered the Kaikias field in 2014. The field is located in the prolific Mars-Ursa basin, approximately 130 miles from the Louisiana coast. Production began in May 2018.
• The reference to Shell’s US Gulf of Mexico production being among the lowest GHG intensity in the world is a comparison among other IOGP oil-and gas-producing members.
• Shell is the leading operator in the US Gulf of Mexico for oil and gas production.

Transocean Ltd. Announces $251 Million Harsh Environment Semisubmersible Contract

Transocean Ltd. (NYSE: RIG) (“Transocean”) today announced a minimum 540-day contract for the Transocean Barents with OMV Petrom S.A. in the Romanian Black Sea at a rate of $465,000 per day, excluding additional services. The program is expected to commence in the first quarter of 2025 and is estimated to contribute approximately $251 million in backlog, excluding full compensation for mobilization and a demobilization fee. For each day over 540 days, including the two option periods, the operating dayrate will be $480,000.

The rig will be utilised on the Neptun Deep Gas Fields project