1. New natural gas discovered offshore Abu Dhabi
The Abu Dhabi National Oil Company (ADNOC) announced last week that it has discovered a natural gas deposit in Block 2 offshore Abu Dhabi. The exploration rights in this block are operated by Eni, and the results of the first exploration well show that the gas reserves are between 15,000 and 2 trillion cubic feet. This is the first natural gas discovery since the Abu Dhabi offshore exploration concession was granted.
Block 2 is located in the northwest of Abu Dhabi and covers an area of 4,033 square kilometers. The discovery of the new gas reservoir was facilitated by the world’s largest combined onshore and offshore 3D seismic survey.
In 2019, ADNOC awarded exploration concessions for offshore blocks 1 and 2 to a consortium of Italy’s Eni (70%) and Thailand’s PTTEP (30%). Eni and PTTEP have invested a total of US$230 million in oil and gas exploration and evaluation of existing discoveries in Block 2. Following successful exploration, the two companies will receive priority for two blocks of oil and gas production concessions.
2. Petrobras and Yinson finalize FPSO deal worth over $5 billion
Petrobras and Malaysia’s Yinson jointly announced on Tuesday that they had signed a contract to lease and provide FPSO services for the Parque das Baleias integrated project, which will be installed at the Jubarte field offshore Brazil.
The Jubarte field is located in the northern Campos Basin, where Brazil delayed the Parque das Baleias project by about a year in October 2020 due to COVID-19.
As previously reported, the total contract value is expected to be $5.2 billion, and the FPSO is expected to begin operations in the fourth quarter of 2024.
3. Spanish oil giant Repsol to sell some Canadian assets
Spanish oil major Repsol is considering selling some of its Canadian assets later this year to benefit from higher oil and gas prices. The company is reported to be looking for a buyer for its holding in western Canada’s Duvernay Basin, which is still in the early stages of development. The company’s 170,000 acres (688 square kilometers) of land within Dewey could fetch about C$750 million ($589.9 million), according to industry sources.
Several global oil majors have sold Canadian assets over the past four years, citing high production costs, high emissions, and a shortage of funds for fossil fuel projects.
4. Equinor gets permission to develop Kristen South
The Norwegian Ministry of Petroleum and Energy has approved the development plan for the first phase of Equinor’s Kristin Sør (South) project in the Norwegian Sea.
The project is the first step in developing resources in the southern part of the Kristin field, where there are several discoveries and prospects.
The development project includes two blocks, the Kristin Q block and the Lavrans field east of the Kristin field. Kristin Q will be built on the field’s existing subsea frame, while a new subsea frame will be constructed at the Lavrans field. The products produced by the project will be transported by pipeline to the Kristin platform for processing.
5. OPEC sees bright outlook for global oil demand this year
OPEC said on Thursday that stronger economic growth and the easing of COVID-19 restrictions brightened the short-term outlook for global oil demand with upside potential, maintaining its forecast that oil consumption will exceed pre-pandemic levels in 2022.
6. Bank of America sees oil soaring to $120 by mid-year
Brent could climb 32% from current levels to $120 a barrel by the middle of the year, Bank of America said. “Rising demand, falling spare capacity, low oil inventories and heightened geopolitical tensions point to Brent prices reaching $120 a barrel by the middle of the year before falling back to $80 a barrel in the second half of the year,” the bank said.
Post time: Feb-17-2022