INEOS Energy has today announced the acquisition of the Gulf of Mexico business held by CNOOC Energy Holdings U.S.A. Inc., a U.S. subsidiary of CNOOC International Limited (“CNOOC”).
The deal increases INEOS Energy’s production globally to over 90 thousand barrels of oil equivalent per day. These assets in the Gulf of Mexico are the third major investment by INEOS Energy in the USA, in the past three years, following the 1.4 mtpa LNG deal completed with Sempra in December 2022 and the acquisition of Chesapeake Energy’s oil and gas assets in South Texas in May 2023.
The deal includes a portfolio of non operated assets built around two deep water early production assets (Appomattox and Stampede) in the Gulf of Mexico. In addition, INEOS acquires several mature assets and supporting business.
Brian Gilvary Chairman of INEOS Energy said: “This is a major step for us into the deepwater Gulf of Mexico, which builds on our growing energy business. INEOS Energy is all about competing in the energy transition to provide reliable, affordable energy to meet world demand as the population continues to grow. And progressing carbon storage projects.”
The CNOOC Gulf of Mexico assets and strategic partnerships in major U.S. energy projects, will further complement INEOS’ existing onshore portfolio.
David Bucknall CEO INEOS Energy said, "The USA is a very attractive place for INEOS Energy to invest. This is our third deal in three years following the 1.4 mtpa LNG deal with Sempra and the acquisition of Chesapeake Energy’s oil and gas assets in South Texas. Total capital spend on energy assets in the USA now exceeds $3billion, providing a strong platform for future growth.”
INEOS Energy is committed to a dual track approach, to meet society's energy needs through the current energy transition and to investment in carbon storage. The business is actively producing and trading oil, gas, power and carbon credits, as well as investing in LNG, and Carbon Capture and Storage.
In a world first, INEOS demonstrated the feasibility of CO2 storage on the 8th March 2023. The company captured CO2 from INEOS Oxide in Belgium; transported this cross-border then safely and permanently stored it in the INEOS-operated Nini field in the Danish North Sea. On the 10th September this year world-leading provider of risk, verification and standardization services, DNV, verified that the stored CO2 remains safely and permanently sealed in the Nini West reservoir 1,800 metres below the North Sea seabed. Their verification moves the project closer towards commercialisation, expected next year.
Last week, (10th December) INEOS, the day-to-day operator, with its partners Harbour Energy and Nordsøfonden, announced it had made a Final Investment Decision (FID) on the first commercial phase ‘Greensand Future’ with storage operations set to begin at the end of 2025/early 2026. This decision paves the way for expected investments of more than $150 million across the Greensand CCS value chain.
The acquisition of the Gulf of Mexico business held by CNOOC Energy Holdings U.S.A. is subject to the receipt of regulatory approvals and satisfaction of other customary closing conditions.
Tuesday, 31 December 2024
Monday, 30 December 2024
Eni kicks off Baleine Phase 2, increasing production in the offshore of Côte d'Ivoire
Today, Eni successfully started production of Phase 2 from the Baleine field, marking a crucial step in the development of the Côte d'Ivoire’s offshore. Thanks to this milestone, production will reach 60,000 barrels of oil per day and 70 million cubic feet of associated gas (equivalent to 2 million cubic metres).
Phase 2 will see the Floating Production, Storage and Offloading Unit (FPSO) Petrojarl Kong deployed alongside the Floating Storage and Offloading Unit (FSO) Yamoussoukro for the export of oil, while 100% of the processed gas will supply the local energy demand through the connection with the pipeline built during the project’s Phase 1. This achievement further consolidates Côte d'Ivoire's role as a producing country on the global energy scenario, strengthening access to energy on a national scale.
The rapid development of Baleine Phase 2 confirms Eni's excellent time-to-market, enhanced also by the renovation and reuse of the 2 units.
The Final Investment Decision for the project was taken in December 2022; Phase 1 was started in August 2023; in parallel, activities for Phase 2 had been carried and completed in full safety.
Baleine is the first net zero emission Upstream project (Scope 1 and 2) in Africa, made possible through the adoption of advanced technologies, which minimize the operations’ carbon footprint, and innovative initiatives developed in close collaboration with the Ivorian ministries. These include the improved cookstoves’ distribution program (i.g. clean cooking program), which leverages the local production and has already benefited over 575,000 people in vulnerable conditions, and the initiative to protect and restore 14 classified forests, both contributing to the project’s carbon neutrality. In addition, a wide range of initiatives in the areas of vocational training, education, health and economic diversification enrich Eni's collaboration with the country.
Eni has been present in Côte d'Ivoire since 2015 with a current equity production of around 22,000 barrels of oil equivalent per day. The company operates 10 blocks in the Ivorian deepwaters (CI-101, CI-205, CI-401, CI-501, CI-801, CI-802, CI-504, CI-526, CI-706 and CI-708) in partnership with Petroci Holding.
With the start-up of Baleine's Phase 2 and the development of Phase 3, currently under study, total production is set to reach 150,000 barrels of oil per day and 200 million cubic feet of associated gas, further consolidating Côte d'Ivoire's role as a regional energy hub and strengthening strategic collaboration with the local partner.
Phase 2 will see the Floating Production, Storage and Offloading Unit (FPSO) Petrojarl Kong deployed alongside the Floating Storage and Offloading Unit (FSO) Yamoussoukro for the export of oil, while 100% of the processed gas will supply the local energy demand through the connection with the pipeline built during the project’s Phase 1. This achievement further consolidates Côte d'Ivoire's role as a producing country on the global energy scenario, strengthening access to energy on a national scale.
The rapid development of Baleine Phase 2 confirms Eni's excellent time-to-market, enhanced also by the renovation and reuse of the 2 units.
The Final Investment Decision for the project was taken in December 2022; Phase 1 was started in August 2023; in parallel, activities for Phase 2 had been carried and completed in full safety.
Baleine is the first net zero emission Upstream project (Scope 1 and 2) in Africa, made possible through the adoption of advanced technologies, which minimize the operations’ carbon footprint, and innovative initiatives developed in close collaboration with the Ivorian ministries. These include the improved cookstoves’ distribution program (i.g. clean cooking program), which leverages the local production and has already benefited over 575,000 people in vulnerable conditions, and the initiative to protect and restore 14 classified forests, both contributing to the project’s carbon neutrality. In addition, a wide range of initiatives in the areas of vocational training, education, health and economic diversification enrich Eni's collaboration with the country.
Eni has been present in Côte d'Ivoire since 2015 with a current equity production of around 22,000 barrels of oil equivalent per day. The company operates 10 blocks in the Ivorian deepwaters (CI-101, CI-205, CI-401, CI-501, CI-801, CI-802, CI-504, CI-526, CI-706 and CI-708) in partnership with Petroci Holding.
With the start-up of Baleine's Phase 2 and the development of Phase 3, currently under study, total production is set to reach 150,000 barrels of oil per day and 200 million cubic feet of associated gas, further consolidating Côte d'Ivoire's role as a regional energy hub and strengthening strategic collaboration with the local partner.
Saturday, 28 December 2024
TechnipFMC Awarded Substantial Subsea Contract for Shell’s Bonga North Development in Nigeria
TechnipFMC (NYSE: FTI) has been awarded a substantial contract by Shell Nigeria Exploration and Production Company Limited to supply Subsea 2.0® production systems for the Bonga North development in Nigeria.
The contract covers the design and manufacture of subsea tree systems, manifolds, jumpers, controls, and services.
Jonathan Landes, President, Subsea at TechnipFMC, commented: “Shell was the first to adopt our Subsea 2.0® configure-to-order solution, and continues to deploy it across multiple basins—underscoring its commitment to the technology globally. This award further positions us for future deepwater opportunities in the region.”
The contract covers the design and manufacture of subsea tree systems, manifolds, jumpers, controls, and services.
Jonathan Landes, President, Subsea at TechnipFMC, commented: “Shell was the first to adopt our Subsea 2.0® configure-to-order solution, and continues to deploy it across multiple basins—underscoring its commitment to the technology globally. This award further positions us for future deepwater opportunities in the region.”
Shell invests in Bonga North deep-water project, Nigeria
Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, has announced a final investment decision (FID) on Bonga North, a deep-water project off the coast of Nigeria.
Bonga North will be a subsea tie-back to the Shell-operated Bonga Floating Production Storage and Offloading (FPSO) facility which Shell operates with a 55% interest.
The Bonga North project involves drilling, completing, and starting up 16 wells (8 production and 8 water injection wells), modifications to the existing Bonga Main FPSO and the installation of new subsea hardware tied back to the FPSO.
The project will sustain oil and gas production at the Bonga facility. Bonga North currently has an estimated recoverable resource volume of more than 300 million barrels of oil equivalent (boe) and will reach a peak production of 110,000 barrels of oil a day, with first oil anticipated by the end of the decade.
“This is another significant investment, which will help us to maintain stable liquids production from our advantaged Upstream portfolio,” said Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director.
Bonga North will help ensure Shell’s leading Integrated Gas and Upstream business continues to drive cash generation into the next decade.
Notes to editors:
Bonga North will be a subsea tie-back to the Shell-operated Bonga Floating Production Storage and Offloading (FPSO) facility which Shell operates with a 55% interest.
The Bonga North project involves drilling, completing, and starting up 16 wells (8 production and 8 water injection wells), modifications to the existing Bonga Main FPSO and the installation of new subsea hardware tied back to the FPSO.
The project will sustain oil and gas production at the Bonga facility. Bonga North currently has an estimated recoverable resource volume of more than 300 million barrels of oil equivalent (boe) and will reach a peak production of 110,000 barrels of oil a day, with first oil anticipated by the end of the decade.
“This is another significant investment, which will help us to maintain stable liquids production from our advantaged Upstream portfolio,” said Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director.
Bonga North will help ensure Shell’s leading Integrated Gas and Upstream business continues to drive cash generation into the next decade.
Notes to editors:
- SNEPCo (55%) operates the Bonga field in partnership with Esso Exploration and Production Nigeria Ltd. (20%), Nigerian Agip Exploration Ltd. (12.5%), and TotalEnergies Exploration and Production Nigeria Ltd. (12.5%), on behalf of the Nigerian National Petroleum Company Limited (NNPC).
- Bonga is a deep-water development located in OML 118, at water depths exceeding 1,000 meters. Production at the Bonga FPSO began in 2005, with a capacity to produce 225,000 barrels of oil per day. The project produced its one-billionth barrel of crude oil in 2023.
- The Bonga North development holds estimated recoverable resource volumes of more than 300 million barrels of oil equivalent (boe). These volumes are currently classified as 2P (proven and probable) under the Society of Petroleum Engineers’ Petroleum Resources Management System.
- The estimated peak production and recoverable resources mentioned above are 100% total gross figures.
- The investment in Bonga North is expected to generate an internal rate of return (IRR) in excess of the hurdle rate for Shell’s Upstream business.
- Shell’s Upstream business continues to set new benchmarks in performance through near-field opportunities like Bonga North, leveraging technical expertise, strong partnerships, and a model built on simplification and replication.
Phillips 66 announces agreement to sell interest in Gulf Coast Express
Phillips 66 (NYSE: PSX) announced today that it has entered into a definitive agreement to sell DCP GCX Pipeline LLC, which owns a 25% non-operated equity interest in Gulf Coast Express Pipeline LLC, to an affiliate of ArcLight Capital Partners, LLC for pre-tax total cash proceeds of $865 million, subject to purchase price adjustments.
“With this transaction, we have exceeded our $3 billion asset divestiture target established in our strategic priorities. We intend to continue to optimize the portfolio and rationalize non-core assets going forward,” said Mark Lashier, chairman and CEO of Phillips 66. “The evolution of our portfolio underscores our position as a leading integrated downstream energy provider, enhancing shareholder value and positioning the company for the future.”
Gulf Coast Express Pipeline is an approximately 500-mile pipeline system that transports about 2 billion cubic feet per day of natural gas from the Permian Basin to the Agua Dulce, Texas area. Following the transaction, Gulf Coast Express Pipeline LLC will be jointly owned by subsidiaries of Kinder Morgan, Inc. (NYSE: KMI) and affiliates of ArcLight Capital Partners, LLC.
The sales price represents an implied Enterprise Value/EBITDA multiple of 10.6x based on expected 2025 EBITDA. Proceeds from the sale will support the strategic priorities of Phillips 66, including returns to shareholders and debt reduction.
The sale is expected to close in January 2025.
“With this transaction, we have exceeded our $3 billion asset divestiture target established in our strategic priorities. We intend to continue to optimize the portfolio and rationalize non-core assets going forward,” said Mark Lashier, chairman and CEO of Phillips 66. “The evolution of our portfolio underscores our position as a leading integrated downstream energy provider, enhancing shareholder value and positioning the company for the future.”
Gulf Coast Express Pipeline is an approximately 500-mile pipeline system that transports about 2 billion cubic feet per day of natural gas from the Permian Basin to the Agua Dulce, Texas area. Following the transaction, Gulf Coast Express Pipeline LLC will be jointly owned by subsidiaries of Kinder Morgan, Inc. (NYSE: KMI) and affiliates of ArcLight Capital Partners, LLC.
The sales price represents an implied Enterprise Value/EBITDA multiple of 10.6x based on expected 2025 EBITDA. Proceeds from the sale will support the strategic priorities of Phillips 66, including returns to shareholders and debt reduction.
The sale is expected to close in January 2025.
Tennessee Gas Pipeline Announces Final Investment Decision on Mississippi Crossing Project
Tennessee Gas Pipeline, L.L.C. (TGP), a subsidiary of Kinder Morgan, Inc. (NYSE: KMI), today announced its decision to proceed with its Mississippi Crossing Project (MSX Project) after securing long-term, binding transportation agreements with customers for all the capacity.
“This transformative project will benefit the Southeast region as it will provide incremental access to diverse sources of supply,” said Natural Gas Pipelines President Sital Mody. “The additional supply will help satisfy growing energy demand and lower energy costs, allowing power generators and other energy suppliers in the region to attract new residential, commercial and industrial opportunities. We are in final discussions with customers for up to an additional 0.4 Bcf/d of long-term commitments, which would require additional capital for incremental horsepower.”
The approximately $1.4 billion MSX Project is designed to transport up to 1.5 Bcf/d of natural gas and primarily involves the construction of nearly 206 miles of 42-inch and 36-inch pipeline and two new compressor stations. The project will originate near Greenville, Mississippi, and conclude near Butler, Alabama, with connections to the existing TGP system and third-party pipelines to provide critical supply access sourced from multiple supply basins. Pending the receipt of all required permits and clearances, the project is expected to be placed in service November 2028.
“The fundamentals in the natural gas market are robust, with significant growth expected over the next five years from LNG exports, exports to Mexico and power generation,” said KMI CEO Kim Dang. “With today’s announcement, KMI has sanctioned approximately $3.1 billion (KMI share) in expansion capital between the SNG South System 4 Expansion and TGP’s Mississippi Crossing Project. We expect to announce additional projects in the coming months.
“This transformative project will benefit the Southeast region as it will provide incremental access to diverse sources of supply,” said Natural Gas Pipelines President Sital Mody. “The additional supply will help satisfy growing energy demand and lower energy costs, allowing power generators and other energy suppliers in the region to attract new residential, commercial and industrial opportunities. We are in final discussions with customers for up to an additional 0.4 Bcf/d of long-term commitments, which would require additional capital for incremental horsepower.”
The approximately $1.4 billion MSX Project is designed to transport up to 1.5 Bcf/d of natural gas and primarily involves the construction of nearly 206 miles of 42-inch and 36-inch pipeline and two new compressor stations. The project will originate near Greenville, Mississippi, and conclude near Butler, Alabama, with connections to the existing TGP system and third-party pipelines to provide critical supply access sourced from multiple supply basins. Pending the receipt of all required permits and clearances, the project is expected to be placed in service November 2028.
“The fundamentals in the natural gas market are robust, with significant growth expected over the next five years from LNG exports, exports to Mexico and power generation,” said KMI CEO Kim Dang. “With today’s announcement, KMI has sanctioned approximately $3.1 billion (KMI share) in expansion capital between the SNG South System 4 Expansion and TGP’s Mississippi Crossing Project. We expect to announce additional projects in the coming months.
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