10th Oct 2024
INEOS Energy today announced the start-up of the electric-driven compressor at the Teesside Gas Processing Plant, which will significantly boost gas flows from the INEOS Operated Breagh Gas Field. The new compressor represents a significant investment that will secure domestic gas supplies for UK homes and industry for years to come, helping to stabilise prices. Electric driven compressors have a lower carbon footprint than the gas alternative, which means that Breagh will remain one of the lowest carbon intensity gas fields in the UK.
INEOS Energy CEO David Bucknall said: “We are delighted to see the electric compressor coming on stream at a critical time for UK gas demand. The project taps into precious North Sea gas reserves with a low carbon intensity and is the kind of investment that is crucial to the energy transition and affordable energy security for the UK.”
The Breagh gas field is operated by INEOS Energy. It is located in the Southern North Sea and was awarded development consent in 2011. It consists of a 12-slot minimum facilities wellhead platform with 11 production wells, a 100km wet gas export pipeline to the beach and a further 11km of onshore pipeline to the Teesside Gas Processing Plant - owned by North Sea Midstream Partners (NSMP) - for processing and delivery of gas into the NTS. The field is a normally unattended installation and has one of the lowest carbon intensities of gas fields in the UK.
Thursday, 13 March 2025
Subsea7 awarded contract offshore Norway
Subsea7 today announced the award of a contract by Equinor for a front-end engineering and design (FEED) study with EPCI1 option for the Fram Sør development project, offshore Norway.
The study will finalise the technical definition of the proposed subsea development prior to Equinor and its partners making the final investment decision. Work will begin immediately in our offices in Norway and UK.
If the EPCI option is exercised, any resulting subsea structures, umbilicals, risers and flowlines (SURF) installation scope would be a direct, substantial2 award to Subsea7. Offshore installation activities associated with this contract would be scheduled for 2026, 2027 and 2028.
The Fram Sør area is located 10-30 kilometres north of the Equinor-operated Troll C platform, approximately 70 kilometres north-west of Bergen. The development will be connected to the existing Fram and Troll C infrastructure.
Erik Femsteinevik, Vice President for Subsea 7 Norway said: “This award continues our long-standing collaboration with Equinor. The study enables Subsea7 to engage early in the field development process, optimising design solutions and contributing to the final investment decision. We look forward to working closely with Equinor to unlock the value in Fram Sør”.
The study will finalise the technical definition of the proposed subsea development prior to Equinor and its partners making the final investment decision. Work will begin immediately in our offices in Norway and UK.
If the EPCI option is exercised, any resulting subsea structures, umbilicals, risers and flowlines (SURF) installation scope would be a direct, substantial2 award to Subsea7. Offshore installation activities associated with this contract would be scheduled for 2026, 2027 and 2028.
The Fram Sør area is located 10-30 kilometres north of the Equinor-operated Troll C platform, approximately 70 kilometres north-west of Bergen. The development will be connected to the existing Fram and Troll C infrastructure.
Erik Femsteinevik, Vice President for Subsea 7 Norway said: “This award continues our long-standing collaboration with Equinor. The study enables Subsea7 to engage early in the field development process, optimising design solutions and contributing to the final investment decision. We look forward to working closely with Equinor to unlock the value in Fram Sør”.
Shell to grow working interest in the Ursa platform in Gulf of America
Shell Offshore Inc. and Shell Pipeline Company (SPLC), subsidiaries of Shell plc (Shell), have signed an agreement to increase their stake in the Ursa platform in the Gulf of America.
This will increase Shell’s working interest (WI) in its operated Ursa platform, pipeline, and associated fields from 45.3884% to a maximum of 61.35%, following an agreement to acquire 15.96% WI from ConocoPhillips Company (COP).
“This targeted investment is the latest example of how we are unlocking more value from our existing advantaged Upstream assets and infrastructure,” said Zoë Yujnovich, Shell’s Integrated Gas & Upstream Director. “The acquisition expands our ownership in an established long-producing asset that generates robust free cash flow, while also providing more options for growth.”
The Gulf of America production has among the lowest greenhouse gas intensity in the world. Increasing our working interest in Ursa demonstrates our continued focus on providing secure supplies of domestic energy and pursuing the highest margin and most energy-efficient Upstream investments.
This deal is subject to regulatory clearance, preferential rights election and closing conditions. The deal is expected to be completed by end Q2 2025.
Notes to editors
This will increase Shell’s working interest (WI) in its operated Ursa platform, pipeline, and associated fields from 45.3884% to a maximum of 61.35%, following an agreement to acquire 15.96% WI from ConocoPhillips Company (COP).
“This targeted investment is the latest example of how we are unlocking more value from our existing advantaged Upstream assets and infrastructure,” said Zoë Yujnovich, Shell’s Integrated Gas & Upstream Director. “The acquisition expands our ownership in an established long-producing asset that generates robust free cash flow, while also providing more options for growth.”
The Gulf of America production has among the lowest greenhouse gas intensity in the world. Increasing our working interest in Ursa demonstrates our continued focus on providing secure supplies of domestic energy and pursuing the highest margin and most energy-efficient Upstream investments.
This deal is subject to regulatory clearance, preferential rights election and closing conditions. The deal is expected to be completed by end Q2 2025.
Notes to editors
- Shell is the operator of Ursa Tension-Leg Platform (TLP) and currently holds a 45.3884% working interest (WI) ownership in the asset with BP Exploration & Production Inc. (22.6916% WI), ECP GOM III, LLC (15.96%) and ConocoPhillips Company (COP) (15.96% WI).
- COP’s 15.96% membership interest in the Shell-operated Ursa Oil Pipeline Company LLC, which will be held by Shell Pipeline Company.
- COP’s 1% WI in the Europa prospect (also operated by Shell).
- COP’s 3.5% Overriding Royalty Interest (ORRI) in Ursa. This royalty interest was acquired by COP through the Marathon Oil Corporation merger, which was completed in November 2024.
- Reference to an increase in WI to a maximum of 61.35% is subject to preferential rights election by other WI partners.
- The Ursa TLP, which began production in 1999, is located approximately 130 miles (209 kilometres) southeast of New Orleans within the Mars Basin, one of the most prolific hydrocarbon basins in the world.
- The Ursa/Princess field is well established, having produced more than 800 million barrels of oil equivalent total gross over ~25 years, providing Shell with reliable production and growth opportunities.
- Shell US is the leading deep-water operator and one of the largest leaseholders in the Gulf of America (GoA), focused on opportunities close to our existing assets in the most prolific corridors.
- The reference to our GoA production having among the lowest greenhouse gas intensity in the world is a comparison among other members of the International Association of Oil & Gas Producers.
Fluor-Led JV Supports Successful Completion and Startup of Major Project at Tengiz Oil Field in Kazakhstan
Fluor Corporation (NYSE: FLR) is pleased to announce that it successfully led a joint venture that supported the completion and startup of Tengizchevroil’s (TCO) Future Growth Project (FGP) at the Tengiz oil field in Kazakhstan. The Fluor-led joint venture, including partners Worley, Kazakh Institute of Oil and Gas, and KazGiproNefteTrans Engineering Company, has provided a suite of engineering, procurement, construction, operations and maintenance services for TCO since 2011.
“Achieving first oil is a significant accomplishment and we congratulate the TCO team,” said Mike Alexander, President of Fluor’s Energy Solutions business. “Fluor has supported TCO for the past 14 years and has been active in the Republic of Kazakhstan since 1982, working on projects that have helped shape the oil and gas industry.”
As part of the FGP, a new Third-Generation Plan (3GP) was built at the Tengiz oil field, which was discovered in 1979 and ranks as one of the world’s largest and deepest fields. This project milestone marks the beginning of a ramp-up of crude oil production over the coming months. Once all Tengiz facilities are operating at full capacity, TCO’s total annual crude oil production is expected to reach approximately 40 million tons per annum.
As part of its work on the project, significant contributions and commitments to building a sustainable economic future for residents have been made. These include the development of programs for schools and universities to train craft labor and professional engineers, as well as new capabilities for the Republic of Kazakhstan in engineering, high-tech equipment servicing, project management, construction and fabrication.
Tengizchevroil LLP is a Kazakhstani partnership owned by Chevron (50%), KazMunayGas (20%), ExxonMobil (25%) and Lukoil (5%).
“Achieving first oil is a significant accomplishment and we congratulate the TCO team,” said Mike Alexander, President of Fluor’s Energy Solutions business. “Fluor has supported TCO for the past 14 years and has been active in the Republic of Kazakhstan since 1982, working on projects that have helped shape the oil and gas industry.”
As part of the FGP, a new Third-Generation Plan (3GP) was built at the Tengiz oil field, which was discovered in 1979 and ranks as one of the world’s largest and deepest fields. This project milestone marks the beginning of a ramp-up of crude oil production over the coming months. Once all Tengiz facilities are operating at full capacity, TCO’s total annual crude oil production is expected to reach approximately 40 million tons per annum.
As part of its work on the project, significant contributions and commitments to building a sustainable economic future for residents have been made. These include the development of programs for schools and universities to train craft labor and professional engineers, as well as new capabilities for the Republic of Kazakhstan in engineering, high-tech equipment servicing, project management, construction and fabrication.
Tengizchevroil LLP is a Kazakhstani partnership owned by Chevron (50%), KazMunayGas (20%), ExxonMobil (25%) and Lukoil (5%).
Tuesday, 7 January 2025
Técnicas Reunidas awarded an engineering and management contract for the Vaca Muerta project
VMOS SA, a company part-owned by YPF —the largest company in the Argentine energy sector— has awarded Técnicas Reunidas the contract for the engineering and management services related to the Vaca Muerta project, the large oil field that extends over 30,000 square kilometers in several provinces in central Argentina.
This oil project, which is the largest in the country and has one of the largest non-conventional oil and gas reserves in the world, strengthens YPF’s position in the global energy market, and also boosts Argentina’s economic development by creating jobs and attracting foreign investments.
The work entrusted to the Spanish company includes the engineering, procurement and construction management services, under an EPCm type contract, for a hydrocarbon storage and dispatch terminal to be located in Punta Colorada, on the coast of the province of Río Negro.
The terminal will have a storage capacity of 600,000 m3, a very significant figure from an international scale perspective, and will be divided into five tanks. Its dispatch capacity will be 62,000 m3 per day through two monobuoys that will be able to load very large crude carriers (VLCC)) tankers.
The worth of the contract awarded to Técnicas Reunidas will amount some 440 million dollars, of which more than 70 million will correspond to engineering and project management services. The total investment to be made by YPF and its partners for the full implementation of the terminal will be around 1.8 billion dollars.
The work entrusted to Técnicas Reunidas will be carried out by engineers from the company’s centers in Madrid, Argentina and Chile. Its execution will require around 1 million working hours.
In a previous stage of this project, Técnicas Reunidas was in charge of optimizing the conceptual engineering previously developed by YPF. This work made it possible to reduce the investment figures and the execution periods for the planned infrastructures, with the aim of enabling the Argentinean company to export fuel at reduced capacity as quickly as possible, once local demand had been met.
The award of the new contract extends Técnicas Reunidas’ relationships with this client, as the Spanish company is currently and successfully completing the project to upgrade the Luján de Cuyo refinery that YPF recently awarded it.
The Vaca Muerta contract is in line with the boost that Técnicas Reunidas is currently applying to its involvement in projects in which construction risks are minimized, in line with the SALTA strategic plan presented last May.
This oil project, which is the largest in the country and has one of the largest non-conventional oil and gas reserves in the world, strengthens YPF’s position in the global energy market, and also boosts Argentina’s economic development by creating jobs and attracting foreign investments.
The work entrusted to the Spanish company includes the engineering, procurement and construction management services, under an EPCm type contract, for a hydrocarbon storage and dispatch terminal to be located in Punta Colorada, on the coast of the province of Río Negro.
The terminal will have a storage capacity of 600,000 m3, a very significant figure from an international scale perspective, and will be divided into five tanks. Its dispatch capacity will be 62,000 m3 per day through two monobuoys that will be able to load very large crude carriers (VLCC)) tankers.
The worth of the contract awarded to Técnicas Reunidas will amount some 440 million dollars, of which more than 70 million will correspond to engineering and project management services. The total investment to be made by YPF and its partners for the full implementation of the terminal will be around 1.8 billion dollars.
The work entrusted to Técnicas Reunidas will be carried out by engineers from the company’s centers in Madrid, Argentina and Chile. Its execution will require around 1 million working hours.
In a previous stage of this project, Técnicas Reunidas was in charge of optimizing the conceptual engineering previously developed by YPF. This work made it possible to reduce the investment figures and the execution periods for the planned infrastructures, with the aim of enabling the Argentinean company to export fuel at reduced capacity as quickly as possible, once local demand had been met.
The award of the new contract extends Técnicas Reunidas’ relationships with this client, as the Spanish company is currently and successfully completing the project to upgrade the Luján de Cuyo refinery that YPF recently awarded it.
The Vaca Muerta contract is in line with the boost that Técnicas Reunidas is currently applying to its involvement in projects in which construction risks are minimized, in line with the SALTA strategic plan presented last May.
Wednesday, 1 January 2025
Sanha lean gas connection achieves first gas
Cabinda Gulf Oil Company Limited (“CABGOC”), Chevron’s subsidiary in Angola, and Block 0 partners, have successfully achieved first gas on the Sanha Lean Gas Connection (SLGC) project.
"First gas from the Sanha Lean Gas Connection shows CABGOC’s success in maximizing value from existing resources in Block 0 while growing capabilities in Angola" said Billy Lacobie, managing director of Chevron's Southern Africa Strategic Business Unit. “The Sanha Lean Gas Connection project will help supply gas from Block 0's Sanha field to Soyo power plants and Angola Liquefied Natural Gas (ALNG), serving as a gas hub for CABGOC operations. As a long-term partner, Chevron builds upon a legacy of 70 years of operational excellence in Angola and remains dedicated to continuing to provide reliable, affordable, and lower carbon energy to benefit the people of Angola.”
Currently, CABGOC operations export 300 Million Standard Cubic Feet (MMSCF) per day to ALNG through the Congo River Crossing Pipeline (CRX). The first stage of SLGC will deliver an additional 80 MMSCF per day of Sanha gas to the Angola LNG gas plant. The next stage involves commissioning the Booster Compression (BC) module, which will add 220 MMSCF per day, bringing the CRX pipeline to its full capacity of 600 MMSCF per day.
The SLGC is a world-class facility built in Benguela province. It involved the design and construction of a new platform, which was integrated with the existing Sanha facilities and the CRX Pipeline. This integration connects the gas supply from CABGOC operations to the Angola LNG Plant (ALNG).
CABGOC operates and holds a 39.2 percent interest in Block 0, a concession adjacent to the Cabinda coastline, and a 31 percent operated interest in a production-sharing contracts in deepwater Blocks 14, located West of Block 0. With 36.4 percent, CABGOC is also the largest equity shareholder in the Angola LNG (Liquefied Natural Gas) project in Soyo, and shareholder with 31 percent in the New Gas Consortium, operated by Azule Energy.
"First gas from the Sanha Lean Gas Connection shows CABGOC’s success in maximizing value from existing resources in Block 0 while growing capabilities in Angola" said Billy Lacobie, managing director of Chevron's Southern Africa Strategic Business Unit. “The Sanha Lean Gas Connection project will help supply gas from Block 0's Sanha field to Soyo power plants and Angola Liquefied Natural Gas (ALNG), serving as a gas hub for CABGOC operations. As a long-term partner, Chevron builds upon a legacy of 70 years of operational excellence in Angola and remains dedicated to continuing to provide reliable, affordable, and lower carbon energy to benefit the people of Angola.”
Currently, CABGOC operations export 300 Million Standard Cubic Feet (MMSCF) per day to ALNG through the Congo River Crossing Pipeline (CRX). The first stage of SLGC will deliver an additional 80 MMSCF per day of Sanha gas to the Angola LNG gas plant. The next stage involves commissioning the Booster Compression (BC) module, which will add 220 MMSCF per day, bringing the CRX pipeline to its full capacity of 600 MMSCF per day.
The SLGC is a world-class facility built in Benguela province. It involved the design and construction of a new platform, which was integrated with the existing Sanha facilities and the CRX Pipeline. This integration connects the gas supply from CABGOC operations to the Angola LNG Plant (ALNG).
CABGOC operates and holds a 39.2 percent interest in Block 0, a concession adjacent to the Cabinda coastline, and a 31 percent operated interest in a production-sharing contracts in deepwater Blocks 14, located West of Block 0. With 36.4 percent, CABGOC is also the largest equity shareholder in the Angola LNG (Liquefied Natural Gas) project in Soyo, and shareholder with 31 percent in the New Gas Consortium, operated by Azule Energy.
Tuesday, 31 December 2024
INEOS Energy to acquire oil and gas assets in US Gulf of Mexico
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.
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.
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