Chevron Corporation (NYSE: CVX) announced today that its 50 percent owned affiliate Tengizchevroil LLP (TCO) has safely commenced operations at its Wellhead Pressure Management Project (WPMP) at the Tengiz oil field in Kazakhstan.
TCO achieved this milestone by converting its first metering station at Tengiz to low pressure and activating the associated Pressure Boost Facility (PBF). This marks important progress for TCO’s overall expansion project at Tengiz.
The WPMP is designed to maintain the existing processing plants’ full capacity (approx. 28 million tonnes per annum), by lowering the flowing pressure at the wellheads and then boosting the pressure to the existing plants.
“This is a significant step towards completion of the Future Growth Project (FGP). It is also important progress for the modernization of the existing base business at Tengiz and demonstrates TCO’s commitment to safely and reliably manage operations, while maximizing the ultimate recovery of resources critical to global energy security,” said Clay Neff, President of Chevron International Exploration and Production.
The start-up of additional PBF compressors and the conversion of the remaining metering stations in the oil gathering system at Tengiz, from high pressure to low pressure, is scheduled for completion through the remainder of the year.
The final phase of TCO’s expansion project, FGP, is on track to conclude in the first half of 2025. This will enable TCO to expand Tengiz crude oil production by an incremental 12 million tons per annum (260,000 barrels a day).
“This accomplishment highlights the vital role of partnership. Together with the Republic of Kazakhstan and our other partners, we have safely started operations at the WPMP, which is a positive development as we continue our focus on the FGP-WPMP expansion project,” said Derek Magness, Managing Director of Chevron’s Eurasia Business Unit.
Sunday 28 April 2024
Thursday 25 April 2024
Transformational combination of substantially all of Eni’s UK upstream operations with Ithaca Energy, creating a leading United Kingdom Continental Shelf production and growth company
Eni S.p.A. (“Eni”) is pleased to announce today that it has reached an agreement on the combination of substantially all of its upstream assets in the UK, excluding East Irish Sea assets and CCUS activities (“Eni UK Business”) with Ithaca Energy plc, (“Ithaca”), marking a strategic move to significantly strengthen its presence on the UK Continental Shelf (the "UKCS") (the “Combination”).
Under the terms of the business combination agreement Eni and Ithaca will combine the Eni UK Business with the existing Ithaca business. The Combination is being funded through the issue to Eni UK of such number of new ordinary shares that represents 38.5% of the enlarged issued share capital of Ithaca. The economic effective date for the Combination will be 30 June 2024, with Completion expected in Q3 2024, subject to the satisfaction of certain regulatory and other customary conditions precedent. Certain customary cash adjustments will be made for, amongst other things, cash, financial debt and working capital, each as at the economic effective date.
Ithaca is one of the largest independent oil and gas companies on the UKCS, with a substantial resource base and playing a key role in energy supply security in the region, with stakes in six of the ten largest fields and the top two largest development fields on the UKCS.
The Combination will immediately create an enlarged and stronger Combined Group with 2024 production greater than 100,000 boepd and the underlying potential to organically grow to 150,0001 boepd by the early 2030s. The Combination is aimed at replicating the previous successful execution of upstream combinations that Eni has formed using its distinctive Satellite Model (including Vår Energi in Norway and Azule Energy in Angola). The Satellite Model is a strategic response to the challenges and opportunities of energy markets, creating focussed and lean companies able to attract new capital to create value through operating and financial synergies and the acceleration of growth. The Combination will allow Eni to continue pursuing its successful growth on the UKCS, thereby strengthening its commitment to the UK post the Neptune Energy acquisition. Eni will be a fully committed, long-term and supportive shareholder of Ithaca, and will bring its world class technical capabilities and operational support to benefit the Combination.
Commenting on the Combination, Eni’s CEO, Claudio Descalzi, said: “This agreement represents a further example of Eni adapting to the demands of the changing energy market and in this case deploying our successful Satellite Model. It affords the opportunity to build scale, realising efficient upstream growth and maximising value under a dedicated and focused management structure supported by Eni resources and expertise. The combination with Ithaca represents an exciting opportunity for us to bring together complementary portfolios establishing a material position on the UKCS with significant growth and optimisation opportunities. We have moved quickly after the acquisition by Eni of Neptune Energy to transform our competitive position in the UK and we see the opportunity for Eni and Ithaca to realise material long-term value in helping to address the key challenges of security, affordability and sustainability of energy supply. Indeed, establishing a leading position in the UK upstream market will mirror our equally strong position in CCS with our Hynet and Bacton Thames projects which together with 3 other CO2 storage licences gives us around 1Giga Tonn of gross storage capacity and will see us become a key player in the decarbonisation of the UK’s hard-to-abate industries. With our significant investment as a partner in the giant Dogger Bank offshore wind farm, Eni is pleased to be a major player across key activities in the UK’s energy sector.”
Combination Highlights
The Combination will result in Eni becoming a significant minority shareholder in the leading independent UKCS operator, with:
Immediately accretive to CFFO, providing enhanced flexibility and optionality for shareholder returns and growthComplementary portfolio unlocks potential for material long-term organic growth with significant value to be unlocked through operational and financial synergies
Organic growth potential to increase the Combined Group’s production to potentially over 150,000 boepd by the early 2030s
Strong cash flow generation and scale of operations create optionality for future shareholder returns as well as inorganic investment to deliver further growth
The Combination is expected to improve Ithaca’s credit rating with a pathway towards investment grade
Committed 2024 and 2025 dividend of 30% post-tax CFFO with an ambition for special dividends to increase total shareholder distributions to up to $500 million per annum, including through special dividends as required. All dividends are subject to operational performance and commodity prices as well as Combined Group refinancing
Tangible benefits to be derived from Eni as a long-term supportive shareholder of the Combined GroupAs part of the transaction, the Combined Group to enter into a technical services agreement with Eni, enabling it to leverage Eni’s leading operational capabilities and leadership to support future growth plans, all areas where Eni has a strong track-record
Potential for the Combined Group to benefit from (i) Eni’s operational support, including access to subsurface technical expertise and Eni’s innovation centre as well as suite of digital tools, and (ii) Eni’s world class exploration capabilities, including access to proprietary supercomputer and rigorous screening process
Relationship Agreement and Corporate Governance
At Completion, Eni will enter into a relationship agreement with Ithaca on substantially similar terms to the relationship between Delek and Ithaca Energy. This will entitle Eni, for so long as it directly or indirectly holds greater than 20% of the Combined Group’s issued share capital, the right to appoint two non-executive directors to the Ithaca Board and for so long as it holds greater than 25% of the Combined Group’s issued share capital, to appoint one observer to the Remuneration Committee and the Audit and Risk Committee; and appoint one director to the Nomination and Governance Committee.
From Completion, it is anticipated that Eni will be entitled to recommend the nomination of the next proposed CEO of the Combined Group in accordance with the policies and processes of Ithaca’s Nomination and Governance Committee.
Further information on the composition of the board of directors of the Combined Group, and other senior management appointments, will be announced in due course.
Free Float
As a consequence of the issue of shares to Eni UK, and Ithaca’s existing shareholder structure, the Combination would result in the number of ordinary shares in public hands being 7%, and below the minimum 10% as required by the Financial Conduct Authority listing rules. Therefore, in order to ensure that the number of ordinary shares in public hands remains at or above 10%, Delek has undertaken to sell-down approximately 3% of the enlarged issued share capital of Ithaca prior to Completion.
Delek will also enter into a call option arrangement with Eni UK, pursuant to which it will have the option to require Eni UK to transfer to Delek such shares in Ithaca as represents approximately 1% of the enlarged issued share capital. Once the sell down is complete and if this call option is exercised, Delek will hold 52.7% and Eni will hold 37.3% of Ithaca’s ordinary shares, with 10% of Ithaca’s ordinary shares being held in public hands.
Under the terms of the business combination agreement Eni and Ithaca will combine the Eni UK Business with the existing Ithaca business. The Combination is being funded through the issue to Eni UK of such number of new ordinary shares that represents 38.5% of the enlarged issued share capital of Ithaca. The economic effective date for the Combination will be 30 June 2024, with Completion expected in Q3 2024, subject to the satisfaction of certain regulatory and other customary conditions precedent. Certain customary cash adjustments will be made for, amongst other things, cash, financial debt and working capital, each as at the economic effective date.
Ithaca is one of the largest independent oil and gas companies on the UKCS, with a substantial resource base and playing a key role in energy supply security in the region, with stakes in six of the ten largest fields and the top two largest development fields on the UKCS.
The Combination will immediately create an enlarged and stronger Combined Group with 2024 production greater than 100,000 boepd and the underlying potential to organically grow to 150,0001 boepd by the early 2030s. The Combination is aimed at replicating the previous successful execution of upstream combinations that Eni has formed using its distinctive Satellite Model (including Vår Energi in Norway and Azule Energy in Angola). The Satellite Model is a strategic response to the challenges and opportunities of energy markets, creating focussed and lean companies able to attract new capital to create value through operating and financial synergies and the acceleration of growth. The Combination will allow Eni to continue pursuing its successful growth on the UKCS, thereby strengthening its commitment to the UK post the Neptune Energy acquisition. Eni will be a fully committed, long-term and supportive shareholder of Ithaca, and will bring its world class technical capabilities and operational support to benefit the Combination.
Commenting on the Combination, Eni’s CEO, Claudio Descalzi, said: “This agreement represents a further example of Eni adapting to the demands of the changing energy market and in this case deploying our successful Satellite Model. It affords the opportunity to build scale, realising efficient upstream growth and maximising value under a dedicated and focused management structure supported by Eni resources and expertise. The combination with Ithaca represents an exciting opportunity for us to bring together complementary portfolios establishing a material position on the UKCS with significant growth and optimisation opportunities. We have moved quickly after the acquisition by Eni of Neptune Energy to transform our competitive position in the UK and we see the opportunity for Eni and Ithaca to realise material long-term value in helping to address the key challenges of security, affordability and sustainability of energy supply. Indeed, establishing a leading position in the UK upstream market will mirror our equally strong position in CCS with our Hynet and Bacton Thames projects which together with 3 other CO2 storage licences gives us around 1Giga Tonn of gross storage capacity and will see us become a key player in the decarbonisation of the UK’s hard-to-abate industries. With our significant investment as a partner in the giant Dogger Bank offshore wind farm, Eni is pleased to be a major player across key activities in the UK’s energy sector.”
Combination Highlights
The Combination will result in Eni becoming a significant minority shareholder in the leading independent UKCS operator, with:
- Increased scale and asset diversification, with strategic interests in key assets on the UKCS Proforma 2024 production of 100,000 to 110,000 boepd with potential to become the largest operator on the UKCS by production in 2030
- Material combined long-life 2P reserves and 2C resources base of 658[3] mmboe, with resource life in excess of 15 years based on 2023 pro-forma production, with interest in 37 producing assets, and stakes in 6 of the 10 largest fields on the UKCS (including Rosebank, Cambo, Schiehallion, Mariner Area, Elgin/Franklin and J-Area)
- The Combination to create a diversified and balanced portfolio, with 49% gas weighting based on 2023 pro-forma production
Immediately accretive to CFFO, providing enhanced flexibility and optionality for shareholder returns and growthComplementary portfolio unlocks potential for material long-term organic growth with significant value to be unlocked through operational and financial synergies
Organic growth potential to increase the Combined Group’s production to potentially over 150,000 boepd by the early 2030s
Strong cash flow generation and scale of operations create optionality for future shareholder returns as well as inorganic investment to deliver further growth
The Combination is expected to improve Ithaca’s credit rating with a pathway towards investment grade
Committed 2024 and 2025 dividend of 30% post-tax CFFO with an ambition for special dividends to increase total shareholder distributions to up to $500 million per annum, including through special dividends as required. All dividends are subject to operational performance and commodity prices as well as Combined Group refinancing
Tangible benefits to be derived from Eni as a long-term supportive shareholder of the Combined GroupAs part of the transaction, the Combined Group to enter into a technical services agreement with Eni, enabling it to leverage Eni’s leading operational capabilities and leadership to support future growth plans, all areas where Eni has a strong track-record
Potential for the Combined Group to benefit from (i) Eni’s operational support, including access to subsurface technical expertise and Eni’s innovation centre as well as suite of digital tools, and (ii) Eni’s world class exploration capabilities, including access to proprietary supercomputer and rigorous screening process
Relationship Agreement and Corporate Governance
At Completion, Eni will enter into a relationship agreement with Ithaca on substantially similar terms to the relationship between Delek and Ithaca Energy. This will entitle Eni, for so long as it directly or indirectly holds greater than 20% of the Combined Group’s issued share capital, the right to appoint two non-executive directors to the Ithaca Board and for so long as it holds greater than 25% of the Combined Group’s issued share capital, to appoint one observer to the Remuneration Committee and the Audit and Risk Committee; and appoint one director to the Nomination and Governance Committee.
From Completion, it is anticipated that Eni will be entitled to recommend the nomination of the next proposed CEO of the Combined Group in accordance with the policies and processes of Ithaca’s Nomination and Governance Committee.
Further information on the composition of the board of directors of the Combined Group, and other senior management appointments, will be announced in due course.
Free Float
As a consequence of the issue of shares to Eni UK, and Ithaca’s existing shareholder structure, the Combination would result in the number of ordinary shares in public hands being 7%, and below the minimum 10% as required by the Financial Conduct Authority listing rules. Therefore, in order to ensure that the number of ordinary shares in public hands remains at or above 10%, Delek has undertaken to sell-down approximately 3% of the enlarged issued share capital of Ithaca prior to Completion.
Delek will also enter into a call option arrangement with Eni UK, pursuant to which it will have the option to require Eni UK to transfer to Delek such shares in Ithaca as represents approximately 1% of the enlarged issued share capital. Once the sell down is complete and if this call option is exercised, Delek will hold 52.7% and Eni will hold 37.3% of Ithaca’s ordinary shares, with 10% of Ithaca’s ordinary shares being held in public hands.
Thursday 18 April 2024
TechnipFMC Awarded Large Subsea Contract for ExxonMobil Guyana’s Whiptail Project
TechnipFMC (NYSE: FTI) (the “Company”) has been awarded a large1 contract in Guyana’s Stabroek Block by Exxon Mobil Corporation (NYSE: XOM) affiliate ExxonMobil Guyana Limited to supply subsea production systems for the Whiptail project.
TechnipFMC will provide project management, engineering, and manufacturing to deliver 48 subsea trees and associated tooling, as well as 12 manifolds and associated controls and tie-in equipment.
Jonathan Landes, President, Subsea at TechnipFMC, commented: “ExxonMobil Guyana will utilize our Subsea 2.0® systems and manifolds, which help provide schedule certainty. We have already delivered more than 100 subsea trees for ExxonMobil Guyana – the location of one of the world’s fastest developing basins – and we look forward to deepening our relationship with them through Whiptail.”
TechnipFMC currently employs nearly 140 Guyanese, and expects to continue to hire and train additional local staff in support of this award.
Whiptail is TechnipFMC’s most recent award from ExxonMobil Guyana, where the Company has been awarded subsea production system contracts since the first contract award in 2017 for Liza Phase 1.
TechnipFMC will provide project management, engineering, and manufacturing to deliver 48 subsea trees and associated tooling, as well as 12 manifolds and associated controls and tie-in equipment.
Jonathan Landes, President, Subsea at TechnipFMC, commented: “ExxonMobil Guyana will utilize our Subsea 2.0® systems and manifolds, which help provide schedule certainty. We have already delivered more than 100 subsea trees for ExxonMobil Guyana – the location of one of the world’s fastest developing basins – and we look forward to deepening our relationship with them through Whiptail.”
TechnipFMC currently employs nearly 140 Guyanese, and expects to continue to hire and train additional local staff in support of this award.
Whiptail is TechnipFMC’s most recent award from ExxonMobil Guyana, where the Company has been awarded subsea production system contracts since the first contract award in 2017 for Liza Phase 1.
Friday 12 April 2024
SBM Offshore Awarded Contracts for ExxonMobil Guyana’s FPSO Jaguar
SBM Offshore is pleased to announce that ExxonMobil Guyana Limited (“EMGL”) has confirmed the award of contracts for the Whiptail development project located in the Stabroek Block in Guyana. Under these contracts, SBM Offshore will construct and install FPSO Jaguar. Ownership will transfer to EMGL prior to the FPSO’s installation in Guyana, and SBM Offshore expects to operate the FPSO for 10 years under the Operations and Maintenance Enabling Agreement signed in 2023. The award follows completion of front-end engineering and design studies, receipt of requisite government approvals and the final investment decision on the project by ExxonMobil and block co-venturers.
The Whiptail development is the sixth development within the Stabroek block, circa 200 kilometers offshore Guyana. EMGL is the operator and holds a 45 percent interest in the Stabroek block, Hess Guyana Exploration Ltd. holds a 30 percent interest and CNOOC Petroleum Guyana Limited, holds a 25 percent interest.
The FPSO Jaguar’s design is based on SBM Offshore’s industry leading Fast4Ward® program that incorporates the Company’s 7th new build, multi-purpose floater hull combined with several standardized topsides modules. The FPSO will be designed to produce 250,000 barrels of oil per day, will have associated gas treatment capacity of 540 million cubic feet per day and water injection capacity of 300,000 barrels per day. The FPSO will be spread moored in water depth of about 1,630 meters and will be able to store around 2 million barrels of crude oil.
SBM Offshore remains committed to working with Guyanese companies and will continue to expand these activities. More Guyanese engineers will be recruited and employed as part of the FPSO Jaguar project team.
The Whiptail development is the sixth development within the Stabroek block, circa 200 kilometers offshore Guyana. EMGL is the operator and holds a 45 percent interest in the Stabroek block, Hess Guyana Exploration Ltd. holds a 30 percent interest and CNOOC Petroleum Guyana Limited, holds a 25 percent interest.
The FPSO Jaguar’s design is based on SBM Offshore’s industry leading Fast4Ward® program that incorporates the Company’s 7th new build, multi-purpose floater hull combined with several standardized topsides modules. The FPSO will be designed to produce 250,000 barrels of oil per day, will have associated gas treatment capacity of 540 million cubic feet per day and water injection capacity of 300,000 barrels per day. The FPSO will be spread moored in water depth of about 1,630 meters and will be able to store around 2 million barrels of crude oil.
SBM Offshore remains committed to working with Guyanese companies and will continue to expand these activities. More Guyanese engineers will be recruited and employed as part of the FPSO Jaguar project team.
Tuesday 2 April 2024
MODEC secures FEED for Shell’s Gato do Mato FPSO project in Brazil
MODEC Inc. (“MODEC”) is pleased to announce that it has been successful in securing the Front-End Engineering and Design (FEED) for a Floating Production, Storage and Offloading (FPSO) system for Shell do Brasil Ltda (“Shell”) on the Gato do Mato development, offshore Brazil.
Gato do Mato FPSO will be moored at a water depth of approximately 2,000m, some 250km off the coast of Brazil. MODEC will be responsible for the design of the hull and all related topsides facilities for the FPSO, which is projected to be moored by a SOFEC Spread Mooring system. The produced stabilized crude will be stored in the FPSO tanks and the oil will be offloaded to shuttle tankers to go to market.
MODEC has previously delivered sixteen (16) FPSOs to Brazil and has two (2) more under construction currently. The FPSO Gato do Mato would be the second unit to be delivered directly to Shell by MODEC for operation in Brazil.
MODEC President and CEO, Hirohiko Miyata, expressed his delight in securing the FEED project. “MODEC is proud to be working on its nineteenth (19th) FPSO for Brazil and our second for Shell in Brazil. This milestone indicates the strong relationship between the two companies which now spans more than 20 years. We are excited about performing this FEED study for Shell.”
Gato do Mato FPSO will be moored at a water depth of approximately 2,000m, some 250km off the coast of Brazil. MODEC will be responsible for the design of the hull and all related topsides facilities for the FPSO, which is projected to be moored by a SOFEC Spread Mooring system. The produced stabilized crude will be stored in the FPSO tanks and the oil will be offloaded to shuttle tankers to go to market.
MODEC has previously delivered sixteen (16) FPSOs to Brazil and has two (2) more under construction currently. The FPSO Gato do Mato would be the second unit to be delivered directly to Shell by MODEC for operation in Brazil.
MODEC President and CEO, Hirohiko Miyata, expressed his delight in securing the FEED project. “MODEC is proud to be working on its nineteenth (19th) FPSO for Brazil and our second for Shell in Brazil. This milestone indicates the strong relationship between the two companies which now spans more than 20 years. We are excited about performing this FEED study for Shell.”
Aramco awards $7.7 billion contracts to add 1.5 bscfd of raw gas to Fadhili Gas Plant
Aramco, one of the world’s leading integrated energy and chemicals companies, today awarded engineering, procurement and construction (EPC) contracts worth $7.7 billion for a major expansion of its Fadhili Gas Plant in the Eastern Province of Saudi Arabia. The project is expected to increase the plant’s processing capacity from 2.5 to up to 4 billion standard cubic feet per day (bscfd).
This additional 1.5 bscfd of processing capacity is expected to contribute to the company’s strategy to raise gas production by more than 60% by 2030, compared to 2021 levels. The Fadhili Gas Plant expansion, which is expected to be completed by November 2027, is also expected to add an additional 2,300 metric tons per day to sulphur production.
Wail Al Jaafari, Aramco Executive Vice President of Technical Services, said: “The award of these contracts reflects Aramco’s goal to increase supplies of natural gas, help efforts to reduce greenhouse gas emissions, and free up more crude oil for value-added refining and export. Together with leading international companies, we are advancing our goal to increase gas production. The expansion also supports our ambitions to develop a lower-carbon hydrogen business, while associated liquids from gas are an important feedstock for the petrochemical industry.”
Aramco awarded EPC contracts for the Fadhili Gas Plant increment project to SAMSUNG Engineering Company, GS Engineering & Construction Corporation, and Nesma & Partners.
This additional 1.5 bscfd of processing capacity is expected to contribute to the company’s strategy to raise gas production by more than 60% by 2030, compared to 2021 levels. The Fadhili Gas Plant expansion, which is expected to be completed by November 2027, is also expected to add an additional 2,300 metric tons per day to sulphur production.
Wail Al Jaafari, Aramco Executive Vice President of Technical Services, said: “The award of these contracts reflects Aramco’s goal to increase supplies of natural gas, help efforts to reduce greenhouse gas emissions, and free up more crude oil for value-added refining and export. Together with leading international companies, we are advancing our goal to increase gas production. The expansion also supports our ambitions to develop a lower-carbon hydrogen business, while associated liquids from gas are an important feedstock for the petrochemical industry.”
Aramco awarded EPC contracts for the Fadhili Gas Plant increment project to SAMSUNG Engineering Company, GS Engineering & Construction Corporation, and Nesma & Partners.
Subscribe to:
Posts (Atom)