Shell to sell interest in Singapore Energy and Chemicals Park to CAPGC

Shell Singapore Pte Ltd, a subsidiary of Shell plc, has reached an agreement to sell its Energy and Chemicals Park in Singapore to CAPGC Pte. Ltd., a joint venture company between Chandra Asri Capital Pte. Ltd. and Glencore Asian Holdings Pte. Ltd. The transaction will transfer all of Shell’s interest in Shell Energy and Chemicals Park Singapore to CAPGC.


“This agreement marks a significant step in Shell’s ongoing efforts to high-grade our Chemicals and Products business, and is a testament to our commitment to deliver more value with less emissions, as outlined at our Capital Markets Day last year.” said Huibert Vigeveno, Shell’s Downstream, Renewable and Energy Solutions Director. “We are proud of our history at Bukom and Jurong Island and our contributions to the economic growth of Singapore in this sector in the past decades. Our commitment to Singapore remains steadfast and its importance as a regional hub for our marketing and trading business remains important. As Singapore continues to decarbonise, Shell looks forward to a continued partnership with the country, and with our customers in the region.”


Shell ran a competitive bid process to reach this milestone. Staff in Shell Energy and Chemicals Park Singapore will continue their employment with CAPGC under the new ownership, providing continuity for staff and contributing to ongoing operational reliability and safety.

Notes to editors

• The Shell Energy and Chemicals Park Singapore comprises its integrated refining and chemicals assets on Pulau Bukom and Jurong Island.
• The Pulau Bukom assets include a 237,000 barrels-per-day refinery and a 1.1 million tonnes-a-year ethylene cracker. It was Singapore’s first refinery in 1961.
• Shell Jurong Island occupies more than 60 hectares on Jurong Island, and manufactures petrochemicals including ethylene oxide, ethoxylates, styrene monomer and propylene oxide. It is Shell’s largest petrochemical production and export center in the Asia Pacific region.
• Shell is selling 100% of its interests in its Energy and Chemicals Park in Singapore, including the physical assets and commercial contracts.
• As announced on its Capital Markets Day in June 2023, Shell had initiated a strategic review of its Energy and Chemicals Park assets on Bukom and Jurong Island in Singapore. This review is in response to the ongoing high-grading of Shell Group’s Chemicals and Products portfolio, changing market conditions and enhanced capital discipline. Following the strategic review, divestment has been the priority focus.
• Following completion, all employees providing dedicated support to the Shell Energy and Chemicals Park Singapore will retain their employment with CAPGC.
• Shell and CAPGC have also signed crude supply and products offtake agreements that will come into effect following completion.
• Singapore’s position as a trading and marketing hub to serve Shell’s customers in the region remains important.
• Shell continues to support Singapore’s energy needs through Liquefied Natural Gas supply and trading. Shell is also investing in electric vehicle charging infrastructure in the country.
• In March 2024, the Singapore government announced their partnership with a consortium formed by Shell and ExxonMobil to study the feasibility of a cross-border carbon capture and storage project.
• CAPGC Pte. Ltd. (“CAPGC”) is a joint venture that is majority-owned and operated by Chandra Asri Group and minority-owned by Glencore through their respective subsidiary companies. Chandra Asri is Indonesia’s leading chemical and infrastructure solutions company, supplying products and services to various manufacturing industries in both domestic and international markets. Glencore is one of the world’s largest global diversified natural resource companies and a major producer and marketer of more than 60 commodities that advance everyday life.

First Oil Production on Eldfisk North Ahead of Plan

The licensees of the Eldfisk Field, operated by ConocoPhillips Skandinavia AS, announce successful first oil production on the Eldfisk North Project, located in the Greater Ekofisk Area in the North Sea. Oil and gas resources from the new project development are being produced some weeks ahead of plan.

The Eldfisk North Project is located in PL018, and the licensees are TotalEnergies EP Norge AS (39.896%), ConocoPhillips Skandinavia AS (35.112%), Vår Energi ASA (12.388%), Sval Energi AS (7.604%) and Petoro AS (5.000%).

In December 2022, the Norwegian authorities approved the Eldfisk North Plan for Development and Operation (PDO) with original production start scheduled in the second quarter of 2024. Cooperation and efficiency across companies have unlocked earlier first oil production.

“Sound and productive collaboration among our employees and the many contractors and business partners has contributed to strong safety results with zero personnel injuries, delivering yet another successful project ahead of schedule,” said Steinar Våge, ConocoPhillips’ President for Europe, Middle East and North Africa.

The Eldfisk North Project comprises three 6-well subsea templates located approximately seven kilometers from the Eldfisk Complex. The PDO included drilling of up to 14 wells, whereof nine are producers and the other five will inject water into the reservoir. The Eldfisk North Project will use available capacity at Eldfisk 2/7 S for processing and transportation, utilizing existing infrastructure in the Greater Ekofisk Area.

The total resource potential is in the range of 50-90 million barrels of oil equivalent while total capital expenditure is estimated at almost NOK 13 billion (USD 1.24 billion), capturing cost developments for extended drilling duration, inflation, and currency exchange rates. The project has created approximately 4,000-4,500 jobs, and more than 80% of the total contract value has been awarded to Norwegian businesses.

About Eldfisk

The Eldfisk Field was discovered in 1970 and original plan for development and operation was approved in 1975. A new plan for development and operation was approved for the Eldfisk II Redevelopment Project in 2011. The Eldfisk reservoir consists of fractured chalk containing mainly oil, similar to surrounding fields in the Greater Ekofisk Area.

Seatrium Secures FPSO Topsides Integration Contract with MODEC

Seatrium Limited (Seatrium or the Group) is pleased to announce that it has secured a Floating Production Storage and Offloading (FPSO) topsides integration contract from longstanding customer, Offshore Frontier Solutions Pte. Ltd., a MODEC Group company. 

The contract scope of work covers the installation and integration of topside modules onboard the FPSO Errea Wittu, and includes completion and commissioning support for MODEC. 

Mr Marlin Khiew, Executive Vice President, Oil & Gas (Americas) of Seatrium, said, "We are pleased to be working with our longstanding customer, MODEC, on yet another FPSO topsides integration project, solidifying our position as the industry leader in FPSO conversions. Through our strong partnership and unwavering dedication, including decades of collaboration with MODEC, we continue to deliver cutting-edge offshore solutions that redefine excellence. Leveraging our deep engineering expertise, international yard footprint, and strong track record, Seatrium provides innovative, reliable, quality, and value-added offshore and marine solutions for our esteemed customers." 

The FPSO Errea Wittu will be deployed in the Uaru Field, Stabroek Block, approximately 200 kilometers offshore Guyana. The FPSO Errea Wittu is expected to have a production capacity of 250,000 barrels of oil per day (bopd), water injection capacity of 350,000 barrels of water per day (bwpd), 540 million cubic feet per day (mmscfd) of gas production and a storage capacity of two million barrels of oil. 

Over the years, Seatrium has built a strong track record in the FPSO space, including delivering a significant number of FPSO projects for MODEC since its first FPSO conversion Whakaaropai in 1996. The Group is currently undertaking integration work for FPSO Bacalhau, which will be operating in the Bacalhau field, Santos Basin, offshore Brazil. Separately, BrasFELS, Seatrium’s yard in Angra dos Reis, Brazil, is also currently executing topside modules fabrication for FPSO Raia.

ADNOC Announces First Production from Belbazem Offshore Block

ADNOC announced today the start of crude oil production from its Belbazem offshore block, underscoring the company’s commitment to responsibly meet the world’s growing demand for energy.
The Belbazem offshore block is operated by Al Yasat Petroleum, a joint venture between ADNOC and China National Petroleum Corporation (CNPC). ADNOC’s innovative approach in developing the block includes leveraging operational synergies with adjacent fields, artificial intelligence (AI) and digitalization to enhance efficiency and safety while reducing emissions and cost.

Abdulmunim Saif Al Kindy, ADNOC Upstream Executive Director, said: “The start of crude oil production from the Belbazem offshore block is testament to the success of our strategic partnership with CNPC and the robust bilateral energy relationship between the UAE and China. ADNOC continues to maximize value from Abu Dhabi’s resources, while reducing our carbon footprint to ensure a secure, reliable, and responsible supply of energy to customers locally and internationally.”

Production capacity at the Belbazem offshore block is set to progressively ramp up to 45,000 barrels per day (bpd) of light crude and 27 million standard cubic feet per day (mmscfd) of associated gas, contributing to ADNOC’s target of reaching 5 million bpd by 2027 and enabling UAE gas self-sufficiency for the UAE.

Al Yasat is pioneering the implementation of AI modelling and analysis tools across its offshore concession area. The Belbazem block uses WellInsight, an AI tool developed by AIQ, to analyze reservoir data and manage operations for enhanced safety and performance. The block will also integrate advanced technologies already deployed at Al Yasat’s Bu Haseer offshore field, to optimize production and reservoir management.

The Belbazem block is leveraging operational synergies by utilizing the facilities of Satah Al Razboot (SARB), an offshore field operated by ADNOC Offshore, resulting in cost savings and reduced environmental impact. Located 120 kilometers northwest of Abu Dhabi city, the Belbazem Block consists of three offshore fields; Belbazem, Umm Al Salsal and Umm Al Dholou.

Tengizchevroil starts WPMP operations at tengiz oil field in Kazakhstan

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.

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:

• 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.

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.