Newsoil-gasChevron Completes Pel 82 Farm-In Offshore Namibia
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EnergyCapitalPower
Feb 13, 2025Chevron Completes Pel 82 Farm-In Offshore Namibia
Independent exploration company Custos Energy has announced the completion of energy supermajor Chevron’s subsidiary Chevron Namibia Exploration II Limited’s farm-in to PEL 82.
Chevron now holds an 80% working interest and operatorship of the license. Custos Energy and the National Petroleum Company of Namibia (Namcor) will retain a 10% interest each. Situated in the Walvis Basin, offshore Namibia, PEL 82 covers Blocks 2112B and 2212A.
Serving as one Namibia’s most attractive exploration opportunities, approximately 70% of the basin is covered by existing 2D and 3D data, over 3,500km and 9,500km2, respectively. Previous drilling on the license includes the Murombe-1 and Wingat-1 wells.
Chevron’s farm-in into PEL 82 adds to its existing offshore exploration portfolio in Namibia. The company currently operates PEL 90 where, together with its JV partners Trago Energy and Namcor, the major completed its first deepwater offshore well in January.
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World Oil
Chevron'S Venezuela Oil Contractors Continue Work Despite Impending Trump Deadline(Bloomberg) – Venezuelan oil contractors are continuing their work with Chevron Corp. and have not been warned of an impending shutdown despite a U.S. government deadline to stop producing oil there by early April.
Local service companies working for three of Chevron’s joint ventures with state-owned Petroleos de Venezuela SA have not slowed down work, according to five people with knowledge of the matter. Chevron hires local companies to maintain oil wells, supply power generators, operate small drills and specialized equipment as well as manage housing contracts for employees.
U.S. President Donald Trump’s administration set an April 3 deadline for the oil major to wrap up operations in Venezuela, cutting short the six-month wind-down period. The fact that Chevron’s work continues apace more than a week after Washington issued its order underscores how challenging it will be for the company to comply with the accelerated timeline, designed to pressure Nicolás Maduro to make a deal over democratic reforms and accept more migrants from the U.S.
Chevron is “aware of the President’s directive and will abide by any direction given by the U.S. Treasury Department to implement that directive,” spokesperson Bill Turenne said by email. The company “conducts its business in Venezuela in compliance with all laws and regulations, including the sanctions framework provided by U.S. government.”
See also: U.S. sets one-month deadline for Chevron to end Venezuela operationsoil-gas
13 March 2025
EnergyCapitalPower
Gecf Forecasts $115Bn Investment Surge In African Gas MidstreamAfrica’s gas midstream sector will attract $115 billion in investments between 2031 and 2040, accounting for 16% of global midstream capital expenditure, according to the Gas Exporting Countries Forum’s (GECF) latest Global Gas Outlook Report.
The surge in investment will be driven by efforts to boost Africa’s natural gas exports. The GECF forecasts Africa to account for 23% of global liquefaction investments, dedicating up to 85% of its midstream spending towards the sector by 2050. Major projects will include Mozambique’s Rovuma LNG and Coral South FLNG, Nigeria’s liquefaction expansions, the Greater Tortue Ahmeyim project in Senegal and Mauritania and Gabon’s first LNG developments.
Africa will allocate $16 billion – 14% of its total midstream spending – toward regasification projects to meet the rising local demand for LNG, driven by economic growth and electrification. South Africa is expected to lead in regasification investments as it diversifies its energy mix and enhance gas accessibility.oil-gas
13 March 2025
ARABIAN GULF BUSINESS INSIGHT
Adnoc To Ramp Up Investments In Us Gas SectorThe international investment arm of UAE state oil company Adnoc will soon make a significant investment in US natural gas, Adnoc CEO Sultan Al Jaber said on Tuesday.
The UAE is a member of the Opec+ producer group and one of the world’s top oil producers. Adnoc’s wholly-owned international investment arm XRG has about $80 billion in assets and Reuters reported last week the UAE was considering options for an XRG IPO.
“It is time to make energy great again,” he told the world’s largest annual gathering of energy executives in Houston, mirroring the Make America Great Again slogan of US President Donald Trump.
“Over the next few months and foreseeable future you will see very large and significant investment by XRG in the US,” he said.
XRG would invest throughout the gas supply chain, from exploration and development through distribution, and wanted to be a one-stop shop for gas, he said.
Trump has reversed some of the energy policies of his predecessor Joe Biden as he overhauls government in the early weeks of his presidency. Trump has exhorted the industry to maximise production, although under Biden there were few checks on production and oil and gas output hit record levels.
Trump ordered the withdrawal of the US from the United Nations’ Paris Climate Agreement in January, removing the world’s biggest historic emitter from global efforts to fight climate change for the second time in a decade.
Al Jaber said it was time for pragmatic energy policy and actions as the world needs all forms of energy supply to meet rising demand.
Oil demand would reach 109 million barrels per day (bpd) by 2035, up from 103 million bpd now, he said. Global power demand would rise 70 percent to 15,000 gigawatts from 9,000GW, he said.
The race for supremacy in artificial intelligence (AI) worldwide was essentially an energy play, he said, due to the huge power demand needed for data processing.XRG was designed to help meet the fast-growing demand of energy for AI, he added.
Al Jaber presided over the UN’s Cop-28 climate talks in December 2023, which took place in the UAE. The appointment of an oil industry chief executive to manage talks to combat climate change was controversial. Emissions from fossil fuel use have caused global warming.
Al Jaber said he had wanted to inject realism and pragmatism into climate change talks when he took on that mandate.oil-gas
12 March 2025
Africa oil + gas report
Nigeria’S Crude Oil Output Shrivels By 4.7%Nigeria’s crude oil output shrank by 73,000Barrels of Oil per Day (BOPD) in February 2025, compared with the January 2025 output.
The country’s average daily production of 1,465,006BOPD in February 2025 was the lowest in three months, but it was higher than the October 2024 figure of 1,333,000BOPD by 9% and remains in the ‘revamp mode”, signaled by the uptick in output from November 2024 to January 2025, in the opinion of the editorial board of Africa Oil+Gas Report.
One clear data point to explain the descent in output in February was the sharp drop in production in First E&P’s Anyala/Madu fields by 20,000BOPD, from around 52,000BOPD it has hovered in the four months prior, to 32,000BOPD in February 2025.
Another is that crude oil receipts at the Shell operated Bonny Terminal fell by 33,000BOPD in February 2025, from 244,199BOPD in January to 210,485BOPD in February 2025. Most of that reduction is attributed to fields operated by Shell Petroleum Development Company (SPDC).oil-gas
12 March 2025
Pipeline Technology Journal
Panama Canal Exploring The Feasibility Of Building A Pipeline To Ship U.S Gas To AsiaThe Panama Canal Authority is exploring the feasibility of constructing a pipeline to transport liquefied petroleum gas (LPG) across the waterway, potentially facilitating shipments from the U.S. to Japan, Administrator Ricaurte Vasquez told Reuters on Tuesday.
"We're exploring the possibility of rolling out infrastructure with the capacity to move up to a million barrels per day (bpd), but the market is much larger," Vasquez said.
The canal administration considers gas transport a high priority, though Vasquez acknowledged the project's complexity. Initial studies suggest potential LPG traffic through the canal could reach 2 million bpd within a decade.
A decision on whether to proceed with the pipeline is expected within the next year, Vasquez said.
The pipeline proposal comes amid heightened tensions between the U.S. and Panama. Earlier this month, a consortium led by BlackRock acquired the ports of Balboa and Cristobal, located at either end of the canal, for $22.8 billion.
The deal, which also included stakes in 43 other ports globally, followed President Donald Trump's statements suggesting the U.S. should reclaim control of the canal.
BlackRock paid $19 billion to CK Hutchinson, owned by Hong Kong billionaire Li Ka-Shing, for the Panama ports and the other port holdings.
Last week, President Trump addressed the port deal in a speech to Congress, stating, "My administration will be reclaiming the Panama Canal, and we've already started doing it."
The canal authority's pipeline consideration and the recent port acquisition occur as the U.S. and Panama navigate a period of strained relations.oil-gas
12 March 2025
Pipeline Technology Journal
Totalenergies & Rwe Strike 15-Year Deal For Green Hydrogen SupplyTotalEnergies and RWE have reached a 15-year agreement for the purchase of green hydrogen, marking the largest deal of its kind in Germany, the companies announced Tuesday.
Under the agreement, TotalEnergies will purchase approximately 30,000 metric tons of green hydrogen annually from RWE, starting in 2030, for its refinery in Leuna, Saxony-Anhalt.
The hydrogen will be produced at RWE’s 300-megawatt electrolysis plant in Lingen, Lower Saxony, which is expected to be operational by 2027. RWE will power the electrolyzers with renewable energy sources.
The deal is seen as a significant step in Germany's efforts to decarbonize its industrial sector, particularly refineries, which are required to reduce greenhouse gas emissions.
TotalEnergies estimates that using 30,000 metric tons of green hydrogen will reduce CO2 emissions at its Leuna refinery by 300,000 metric tons annually, equivalent to the emissions of 140,000 cars.
“We are proud to have secured the first long-term offtake agreement for green hydrogen of this size with TotalEnergies in Germany,” said Markus Krebber, CEO of RWE AG, in a statement.
Patrick Pouyanné, Chairman and CEO of TotalEnergies, said the agreement “marks an important milestone to reducing our CO2 emissions at our Leuna refinery.”
The supply relationship will be facilitated by Germany’s hydrogen core network, a 9,000-kilometer pipeline network connecting hydrogen production sites with industrial consumers.
Stephan Weil, Prime Minister of Lower Saxony, and Dr. Reiner Haseloff, Minister President of Saxony-Anhalt, both praised the agreement, highlighting its significance for the development of a hydrogen economy in Germany.
TotalEnergies, which has issued tenders for 500,000 metric tons of green hydrogen annually across Europe, aims to decarbonize its refineries.
To ensure a reliable hydrogen supply, RWE Generation will use booked capacities of the hydrogen storage facility in Gronau-Epe, operated by its subsidiary, RWE Gas Storage West, which plans to put the facility into operation in 2027.
Refineries traditionally use hydrogen derived from fossil natural gas, contributing to high CO2 emissions. The use of green hydrogen will help refineries meet Germany’s greenhouse gas emissions reduction targets.oil-gas
12 March 2025
ARABIAN GULF BUSINESS INSIGHT
Ceraweek Day 2: ‘Cautious Optimism’ Among The OilmenOn day two of CERAWeek in Houston, AGBI spoke to Joseph McGonigle, founder of the Global Center for Energy Analysis and former head of the International Energy Forum, about the second Trump administration.
Watch the video to find out why McGonigle, who worked at the US Department of Energy under President George W Bush, sees “cautious optimism” at the oil industry gathering – and which Middle Eastern state he describes as “the country of the future”.oil-gas
12 March 2025
World Oil
Opec+ Oil Production Surges As Kazakhstan Ignores, Exceeds Quota(Bloomberg) -- OPEC+ crude production surged last month as Kazakhstan, which has long flouted the cartel’s output quotas, further breached its agreed limit.
The alliance’s output climbed by 363,000 barrels a day (bpd) to just over 41 million bpd in February, according to a report from OPEC’s secretariat on Wednesday, preempting the group’s supply revival by two months.
Last week, the coalition led by Saudi Arabia and Russia surprised oil traders by announcing it would press on with long-delayed plans to restore halted output amid pressure from President Donald Trump to reduce fuel prices.
Some OPEC+ delegates have privately said that exasperation among the group’s leaders with persistent quota-cheats like Kazakhstan was a factor in the decision. Kazakh Energy Minister Almassadam Satkaliyev said on Friday that he has asked international oil companies including Shell Plc and Exxon Mobil Corp. to cut their output this month, but the nation has a poor track record of delivering on its commitments.
Kazakhstan’s production soared by 198,000 bpd in February to 1.767 million bpd, at least 300,000 bpd above its OPEC+ ceiling. Astana has consistently violated this target as it starts new projects such as the expansion of the giant Tengiz oil field.
The Organization of Petroleum Exporting Countries and its partners have been restraining output since late 2022 in a bid to stave off an oil surplus and shore up prices. Their decision on March 3 to finally green-light a series of production increases surprised traders, who had expected that faltering Chinese demand and brimming American supply would require yet another pause.
Oil futures declined after the move and have continued to weaken on concern that Trump’s tariffs will ignite a global trade war. Brent briefly sank to the lowest since 2021, but has since recouped some of its losses to trade near $70 a barrel in London.
OPEC+ has said it can “pause or reverse” the scheduled series of output increases depending on market conditions, and has just under a month to consider the next hike.oil-gas
12 March 2025
EnergyCapitalPower
Uk Commits To Boosting Libya’S Oil IndustryBritain has reaffirmed its commitment to supporting the growth of Libya’s energy sector through cooperation with the National Oil Company (NOC).
During a meeting with Masoud Suleiman, Acting Chairman of the NOC, British Ambassador to Libya Martin Longden emphasized Britain’s dedication to assisting the NOC in advancing Libya’s oil industry and strengthening the country’s economy. The discussions focused on expanding collaboration between the two nations in the energy sector.
The renewed commitment comes as Libya prepares to launch its 2025 licensing round, creating new opportunities for global investors and oil and gas companies seeking to participate in the country’s energy sector growth.oil-gas
12 March 2025
EnergyCapitalPower
Natural Gas Demand To Increase By 32% By 2050 According To Gecf ReportGlobal demand for natural gas will rise by 32% by 2050, increasing from 4,018 billion cubic meters (bcm) in 2023 to 5,317 bcm, according to latest edition of the Gas Exporting Countries Forum (GECF)’s Global Gas Outlook 2050.
Released on March 10, the report highlights that growth will be driven by economic expansion in developing economies and an increase in global population to 9.8 billion by 2050.
Natural gas will surpass coal as the second-largest energy source by the late 2030s, increasing its share of the global energy mix from 23% in 2023 to 26% by 2050. Up to $11.1 trillion in upstream and midstream investment is required to meet the growing demand.
According to Eng. Mohamed Hamel, General Secretary of the GECF, seismic shifts in trade, energy and environmental policies coupled with evolving geopolitical realignments are reshaping global energy markets with energy security and affordability reemerging as dominant priorities.
He said natural gas serves as a catalyst for growth, industrialization and a pathway to lift people out of poverty in developing economies.
“The findings of the GGO confirm our argument that only a diverse energy mix – tailored to the unique circumstances and priorities of individual countries, regions and cities – can ensure a balance of energy security, affordability, and sustainability,” stated Hamel.oil-gas
12 March 2025Pipeline Gas Journal
Ukraine Eyes U.S. Lng Imports As Gas Needs Grow(Reuters) — Ukraine may import large volumes of U.S. gas this year via terminals in Germany, Greece, Lithuania and Poland, its state gas operator said, as Kyiv struggles with the impact of Russian attacks on its infrastructure.
The White House has spearheaded talks to end the more than three years of war that have followed Russia's invasion of Ukraine. Kyiv said it was willing to accept a ceasefire proposal on Tuesday, but Moscow has yet to agree to a deal.
U.S. imports of gas into Ukraine have the potential to strengthen an economic partnership with Washington and the presence of U.S. gas in Ukraine's storage facilities could deter Russian attacks.
Dmytro Lyppa, the head of Ukraine's gas operator, told Reuters in an interview Ukraine could import at least 4 billion cubic meters of gas between April and October.
Reuters calculations based on average prices for gas find the total imports bill would be at least $1 billion.
Of the total imported via Europe, up to half would be made up of LNG shipped to European terminals, rather than pipeline gas, and of this, Lyppa said as much as possible could be from the United States.
"If we take the political aspect, it is better for us to bring as much (U.S. LNG) as possible to Poland and gradually bring it to us," Lyppa said in an interview cleared for publication on Wednesday.
The geopolitical situation meant that U.S. LNG could be preferred over rival Qatari LNG, for instance, Lyppa said, provided the price difference was not significant.
End to Russian Transit
Ukraine was a major pipeline transit route for Russian gas until the beginning of this year, when the transit deal between the two countries expired, depriving Russia of revenues from transit fees.
Ukraine also has large underground gas storage facilities, and President Volodymyr Zelenskiy said Kyiv and the White House have discussed using the sites to store U.S. LNG that could replace some of the western European gas on which Ukraine relies.
Russian forces have intensified attacks on Ukrainian gas infrastructure - production and underground storage facilities - in recent weeks, reducing Ukraine's gas production and limiting its ability to remove fuel from storage.
Ukraine was producing 52-53 million cubic meters of gas per day before the latest attacks, but a senior industry source said the attacks reduced production by up to 40%, forcing Kyiv to increase imports. Some output has been restored, but officials have declined to give updated figures.
In preparation for the 2025-26 winter heating season, Ukraine typically starts pumping gas into storage when the current peak demand season ends around April as temperatures rise and consumption begins to decline.
Energy officials have estimated Ukraine needs to have at least 13 Bcm of gas in reserve by mid-October for the winter season to run smoothly.
Lyppa said that LNG could be supplied to Ukraine from terminals in Germany, Greece, Lithuania and Poland.
The Polish and Lithuanian routes were the cheapest, but Lyppa said Ukraine would also have to use other pipelines as the Polish interconnector allows the import of only up to 7 million cubic meters per day, compared with demand of 20-25 million.
($1 = 0.9158 euros)oil-gas
12 March 2025Pipeline Gas Journal
Egypt To Lease German Floating Lng Unit To Offset Gas Decline(Reuters) — Egypt, which has struggled with declining domestic gas production, plans to lease a German floating gas liquefaction unit, the Egyptian petroleum ministry said in a statement on Tuesday.
Egypt, the most populous Arab country, has been seeking to ramp up production at its giant Zohr offshore gas field, in a bid to cover rising domestic demand during the summer heat.
Zohr's operator Eni has resumed drilling last month after output dropped in the largest gas field found in the Mediterranean to 1.9 billion cubic feet per day in early 2024, well below the peak reached in 2019.
Egypt's Petroleum Minister Karim Badawi discussed the leasing plans of a unit currently in Germany's Baltic Sea terminal of Mukran with Philipp Steinberg, the German director-general for economic stabilization, energy Security, gas, and hydrogen infrastructure on the sidelines of CERAWeek energy conference held in Houston, Texas.
The two also discussed Germany's possible purchase of Cypriot gas that flows through Egypt's liquefaction facilities for re-export to Europe, the ministry added.
Egypt will send a delegation to Berlin this month to complete the contractual provisions.
Egypt and Cyprus signed agreements last month to enable the export of gas from Cyprus's offshore fields via Egypt as both countries seek to bolster the Eastern Mediterranean's role as an energy hub.oil-gas
12 March 2025Gulf Oil and Gas
Totalenergies And Rwe Sign Major Green Hydrogen Offtake DealIn a groundbreaking step for the hydrogen market, TotalEnergies and RWE have for the first time agreed on conditions for the purchase of green hydrogen over a period of 15 years. The agreement stipulates that TotalEnergies will purchase around 30,000 metric tons of green hydrogen per year from RWE for its refinery in Leuna (Saxony-Anhalt) from 2030. This is the largest quantity of climate-neutral hydrogen ever contracted from an electrolyser in Germany.
The agreement is a signal for the German market because fuel suppliers such as refineries are encouraged to gradually reduce their greenhouse gas emissions over time. Using 30,000 metric tons of green hydrogen in a refinery saves 300,000 metric tons of CO2 per year. That's how much 140,000 cars emit on average per year.
Markus Krebber, CEO RWE AG: ”We are proud to have secured the first long-term offtake agreement for green hydrogen of this size with TotalEnergies in Germany. Six months after the investment decision for the construction of the 300-megawatt electrolysis plant in Lingen, we have acquired an important anchor customer in TotalEnergies. This shows that hydrogen works with the right incentives for customers.”
Patrick Pouyanné, Chairman and CEO of TotalEnergies: “We are looking forward to developing further our partnership with RWE, our partner in several offshore wind projects in Germany and the Netherlands. This long-term green contract for green hydrogen marks an important milestone to reducing our CO2 emissions at our Leuna refinery. It will be made possible thanks to the completion of the H2 backbone by German authorities and their efficient support to green H2 customers like our Leuna refinery.”
Stephan Weil, Prime Minister of Lower Saxony: ”This contract also sends an important signal to the important energy city of Lingen and for the development of a hydrogen economy in Lower Saxony and throughout Germany. The production and marketing of green hydrogen on an industrial scale, which we as a state also support financially, is an essential prerequisite for the successful transformation of our industry towards climate neutrality. Lower Saxony is leading the way in this area in Germany: 50 per cent of the EU-approved production of green hydrogen in Germany is in Lower Saxony, and 20 per cent of the hydrogen core network is being realised in Lower Saxony. Now it is important to further strengthen industry demand and push ahead with the expansion of the hydrogen core network with all our power. We also need to design the framework conditions in such a way that hydrogen projects can be approved more easily and quickly.”
Dr. Reiner Haseloff, Minister President of Saxony-Anhalt: ”Saxony-Anhalt is a land of the chemical industry as well as of renewable energies. Green hydrogen is an important link between these two industries. Therefore, we support the development of a hydrogen pipeline network as well as the production and use of green hydrogen. The use of hydrogen is a central component for the maintenance and modernisation of our chemical industry. The signing of the contract between RWE and TotalEnergies underscores Saxony-Anhalt's prominent position in the ramp-up of the climate-neutral hydrogen economy. This will strengthen Saxony-Anhalt as a business location by using green hydrogen at TotalEnergies' refinery in Leuna and it will promote innovation and sustainable industrial jobs in southern Saxony-Anhalt.”
TotalEnergies needs significant quantities of green hydrogen to decarbonise its refineries in Europe. The company has invited tenders for 500,000 metric tons per year across Europe. The 30,000 metric tons that have been contractually agreed upon will be produced at RWE's 300-megawatt electrolysis plant in Lingen (GET H2 Nucleus), which will go into operation by 2027.
RWE operates its electrolysers with electricity from renewable energy sources. Under EU law, these electrolysers may only be operated with renewable electricity generated in the same hour as the hydrogen. In order to be able to reliably supply the contractually agreed hydrogen even at times when there is little sun and wind, RWE Generation will use booked capacities of the hydrogen storage facility in Gronau-Epe. A subsidiary of RWE, RWE Gas Storage West, plans to put this facility into operation in 2027.
Refineries already use large quantities of hydrogen today. This mainly comes from fossil natural gas, which causes high CO2 emissions. In Germany, fuel suppliers are encouraged to gradually reduce the greenhouse gas emissions (GHG quota) generated by their fuels, for example by 25% by 2030.The use of green hydrogen is one way for refineries to prevent CO2 emissions and thus meet their GHG quota.
The supply relationship between RWE and TotalEnergies will be facilitated by the German hydrogen core network. This will connect ideal hydrogen production sites, such as Lingen in Lower Saxony, with large centres of industrial hydrogen consumption, such as Leuna. The more than 9,000-kilometre-long pipeline network is to be phased into operation between 2025 and 2032 by both repurposing existing gas pipelines and building sections of new pipelines.oil-gas
12 March 2025Gas Processing and LNG
Archrock To Acquire Natural Gas Compression Systems Inc.Archrock Inc. and Natural Gas Compression Systems Inc. (NGCSI), a high-quality provider of contract gas compression services, have entered into definitive agreements under which Archrock will acquire NGCSI and NGCSE Inc. (collectively “NGCS”), in a cash and stock transaction valued at approximately $357 MM.
“We’re excited to announce our agreement to acquire NGCS, which further enhances our position as a premier provider of natural gas compression services in the United States,” said Brad Childers, President and Chief Executive Officer of Archrock. “With the addition of NGCS’s portfolio of high-quality, large horsepower and electric compression assets, we are increasing our scale and expanding customer relationships as demand for natural gas and compression remains robust. Additionally, by deepening our operational footprint in the premier Permian Basin and other key regions, we will continue to align our resources with profitable, high-demand market segments. We have been disciplined about transforming our portfolio by investing in attractive, high-return opportunities, and believe that this transaction will enable us to build on these efforts and drive durable, profitable growth for Archrock shareholders.”
Childers continued, “As with Archrock, we recognize that NGCS’s success starts with its dedicated, highly talented employees. We have a successful integration track record and are enthusiastic about welcoming the NGCS team into the Archrock family as we work together to maximize uptime for our customers and to power a cleaner America.”
“Archrock shares our commitments to safety, operational excellence and putting the customer first,” said A.J. Yuncker, President and Chief Executive Officer of NGCSI. “NGCS and Archrock have highly complementary operations and capabilities, and we believe our customers and employees will benefit from Archrock’s scale, experience and financial strength.”
Compelling strategic and financial benefits include:
Transaction, leadership and closing details. Under the terms of the agreement, Archrock intends to fund the $298-MM cash portion of the total consideration with available capacity under its ABL credit facility. Archrock will issue up to 2.312 MM new Archrock common shares to the sellers to fund the remaining transaction value. The transaction funding approach is consistent with Archrock’s stated target leverage ratio range of between 3.0 times and 3.5 times.
The transaction has been unanimously approved by the board of directors of Archrock and is expected to close in 2Q 2025, subject to customary closing conditions.oil-gas
12 March 2025Gas Processing and LNG
Egypt To Lease German Gas Liquefaction Unit To Bolster ProductionEgypt, which has struggled with declining domestic gas production, plans to lease a German floating gas liquefaction unit, the Egyptian petroleum ministry said.
Egypt, the most populous Arab country, has been seeking to ramp up production at its giant Zohr offshore gas field, in a bid to cover rising domestic demand during the summer heat.
Zohr's operator Eni has resumed drilling last month after output dropped in the largest gas field found in the Mediterranean to 1.9 billion cubic feet per day in early 2024, well below the peak reached in 2019.
Egypt's Petroleum Minister Karim Badawi discussed the leasing plans of a unit currently in Germany's Baltic Sea terminal of Mukran with Philipp Steinberg, the German director-general for economic stabilization, energy Security, gas, and hydrogen infrastructure on the sidelines of CERAWeek energy conference held in Houston, Texas.
The two also discussed Germany's possible purchase of Cypriot gas that flows through Egypt's liquefaction facilities for re-export to Europe, the ministry added.
Egypt will send a delegation to Berlin this month to complete the contractual provisions.
Egypt and Cyprus signed agreements last month to enable the export of gas from Cyprus's offshore fields via Egypt as both countries seek to bolster the Eastern Mediterranean's role as an energy hub.oil-gas
12 March 2025Gas Processing and LNG
Siemens Energy Secures $1.6-B Gas-Fired Power Plant Projects In Saudi ArabiaSiemens Energy has been awarded a $1.6-B project to provide technology for two gas-fired power plants in Saudi Arabia, the German company said.
The project will allow Rumah 2 and Nairyah 2 in the country's western and central regions to add 3.6 gigawatts of power to the national grid, Siemens Energy said in a statement.
The project, with Harbin Electric International as a contractor, includes long-term maintenance agreements to support the plants' operational reliability over the next 25 years, it added.oil-gas
12 March 2025ARABIAN GULF BUSINESS INSIGHT
Oil Prices Slip Below $70 As Us Recession Fears LingerOil prices fell for a second day on Tuesday, as concerns mounted over a potential US recession, the impact of tariffs on global growth and as Opec+ sets its sight on ramping up supply.
Brent futures fell 6 cents, or 0.1 percent, to $69.22 a barrel at 04:02 GMT, while US West Texas Intermediate crude futures lost 13 cents, or 0.2 percent, to $65.90 a barrel.
US President Donald Trump’s protectionist policies have roiled markets across the world, with Trump imposing and then delaying tariffs on his country’s biggest oil suppliers, Canada and Mexico, while also raising duties on Chinese goods.
China and Canada have responded with tariffs of their own.
Over the weekend, Trump said a “period of transition” for the economy was likely but declined to predict whether the US could face a recession amid stock market concerns about his tariff actions
“Trump’s comments triggered a wave of selling as investors started pricing in the risk of weaker growth in demand,” Daniel Hynes, senior commodity strategist at ANZ said.
Stocks, which crude prices often follow, slumped on Monday, with all three major US indexes suffering sharp declines. The S&P 500 had its biggest one-day drop since December 18 and the Nasdaq slid 4 percent, its biggest single-day percentage drop since September 2022.
The US commerce secretary, Howard Lutnick, said on Sunday that Trump would not let up pressure on tariffs on Mexico, Canada and China.
On the supply front, Russia’s deputy prime minister, Alexander Novak, said on Friday that the Opec+ group agreed to start increasing oil production from April, but could reverse the decision afterwards if there were market imbalances.
Despite the market noise, Brent at around $70 a barrel is quite a strong support and oil prices may look to stage a technical bounce at current levels, said Suvro Sarkar, energy sector team lead at DBS Bank in Singapore. Opec+’s supply response will continue to remain flexible depending on market conditions, Sarkar said.
“If oil prices fall below the $70 per barrel mark for an extended period, output hikes may be paused in our opinion. Opec+ will also keep a careful eye on Trump’s Iran and Venezuela policies,” he said.
“The US has already taken back Chevron’s licence to operate in Venezuela and it remains to be seen whether Iran sanctions will be intensified. However, in the interim, worries about global growth amid policy uncertainties and trade wars will dominate.”
In the US, crude oil stockpiles were expected to have risen last week, while distillate and gasoline inventories are likely to have fallen, a preliminary Reuters poll showed on Monday.
The poll was conducted ahead of weekly reports from the industry group the American Petroleum Institute, due at 20:30 GMT later on Tuesday, and the Energy Information Administration, the statistical arm of the US Department of Energy, at 14:30 GMT on Wednesday.oil-gas
11 March 2025World Oil
Ceraweek 2025: Oil And Gas Revenue Is Fueling A Resilient Economy, Guyana’S President SaysDay two of CERAWeek by S&P Global held many energetic and notable discussions, with key themes surrounding innovation, energy security, and the global forces shaping the industry. Notably, a luncheon and discussion between S&P Global Vice Chairman Daniel Yergin and Guyana’s President and Commander-in-Chief H.E. Dr. Mohamed Irfaan Ali, shed light on what has fueled the nation’s rapid economic growth, and what’s to come.
The South American nation has become a powerhouse of oil and gas development in recent years and holds keen interest for the global energy sector, an enthusiasm that was apparent by the full ballroom of attendees eager to hear direct insights from the country’s leader. Yergin enlightened a brief history on oil development in Guyana, noting that first discovery was just shy of a decade ago in 2015, with first production coming in 2019. Today, Yergin noted, Guyana produces 500,000 barrels per day (bpd) and is on a fast track to increase production to 1.5 million bpd in just two years’ time.
President Ali showed humility and confidence in Guyana’s growth story, noting the importance of infrastructure investment, and the broader goal of establishing resilience for Guyana’s economy.
“You can’t have investment without resources. And you can’t have resources without exploring the natural reserves that you have,” explained Ali. “This has allowed us to develop Guyana through economic diversification, and with resilience at the center. We want to be an energy hub. A stable force that offers energy security, stability and ultimately political stability as well.”
Investing in necessary infrastructure to enable the private sector was critical for Guyana’s successful expansion into the oil and gas sector, Ali noted. "One thing we knew from first starting oil development was that this was a very complex industry," Ali said. "Our private sector was new to all this, and we did not have the scale to participate without first heavily investing in infrastructure."
Discussion of infrastructure then segued into S&P Chairman Yergin prompting President Ali to share Guyana's progress on bringing natural gas onshore for electric generation—a topic Ali was eager to talk about.
Ali noted that while cost will remain an inhibiting factor, Guyana is pursuing opportunities to turn this to their competitive advantage, referencing the highly anticipated Gas-to-Energy project. A collaborative development between the Guyanese government and ExxonMobil, the Gas-to-Energy project will consist of a 12-inch pipeline with a maximum capacity of 120 MMcf/d, and is designed to transport gas from Exxon's offshore operations in the Stabroek block to onshore facilities for power generation. The project is slated to begin operations in 2025, with an initial capacity of 50 MMcf/d.
On another note, progress has been made the past several years to establish a cooperative, collaborative regional 'energy corridor' between Guyana, Suriname and Brazil. President Ali mentioned at CERAWeek that they are specifically looking into developing a facility to connect Suriname to northern Brazil in order to facilitate an integrated regional energy hub.
Talk of large-scale data hub development was prominent across CERAWeek’s day-two sessions, and President Ali iterated that Guyana is pursuing this avenue as well. “We’re striving to be a major player on the technical frontier,” Ali said, “and we are working on using natural gas to generate power to drive large-scale data centers.”
Ali does not shy away from truth that oil and gas developments have been the main catalyst for propelling Guyana forward, although he made the distinction that there are a wide array of economic strengths and goals in sight. "We want to be known as an economy that was propelled by revenue from oil and gas projects, but also an economy that is resilient and highly integrated,” H.E. Dr. Ali concluded. “In the next three to four years, we’ll have perhaps two of the largest oil operators in Guyana. A lot of opportunities will be unlocked.”
Header image: ExxonMobil's Liza 2 FPSO, offshore Guyanaoil-gas
11 March 2025World Oil
The Gas Exporting Countries Forum (Gecf) Launches 9Th Edition Of Global Gas Outlook 2050(WO) – The Gas Exporting Countries Forum (GECF) has released the 9th edition of its Global Gas Outlook 2050, offering an in-depth analysis of the future of natural gas. This latest edition explores key trends and developments in the natural gas market. The report will support global companies and policymakers in navigating the energy trilemma, balancing economic growth, energy demand supply challenges and evolving market dynamics.
The Global Gas Outlook 2050 was launched on March 10 during a GECF-led webinar, coinciding with a crucial period for Africa’s natural gas industry. Africa’s natural gas reserves account for approximately 6% of global supply, with an expected growth of 15% by 2030. This expansion, while moderate compared to other regions, underscores Africa’s LNG potential, particularly as global gas demand is projected to increase at a CAGR of 1.5% until 2030, with LNG representing approximately 10-15% of that demand. GECF’s participation at AEW 2025 will highlight Africa’s role as a key investment destination in the global natural gas landscape, emphasizing opportunities in infrastructure development and gas monetization.
“The findings of the report confirm our argument that only a diverse energy mix tailored to the specific needs of various regions can balance affordability, security and sustainability,” stated Eng. Mohamed Hamel, GECF Executive Secretary. “We are convinced now more than ever that natural gas is not only a bridge to the future, but an integral part of the future. I would like to emphasize the role of GECF member countries, who play a vital role in meeting the world’s energy needs. Their contributions, by 2050, will meet half of all global natural gas supplies.”
According to the report, global primary energy demand is expected to increase by 18% between 2023 and 2050, with no peak in sight. The global energy mix is diversifying, with natural gas projected to supply 26% of total energy by 2050. As a result, natural gas demand is set to rise steadily, reaching 5.1 trillion cubic meters by 2050—a 32% increase from 2023 levels. This represents the second-fastest growth rate in energy demand after renewables. Africa, the Middle East and Eurasia are expected to drive nearly 87% of the global natural gas production expansion by 2050.
“The GECF Global Gas Outlook 2050 provides policymakers, investors and stakeholders with valuable insights into the future of global energy markets. Today’s launch comes at a pivotal moment. The energy sector must evolve to meet these evolutions while addressing energy security, sustainability and economic growth. Despite the world’s tremendous progress, energy poverty remains a pressing challenge and natural gas plays a central role in meeting the world’s challenges,” stated Sheik Mishal bin Jabor Al-Thani, GECF Executive Board Member.
The global natural gas trade is undergoing a transformation, with LNG taking center stage. LNG trade is projected to double, reaching 800 million tons by 2050. To support this expansion, cumulative global investments in natural gas are expected to total $11.1 trillion by 2050, with $10.4 trillion allocated to upstream development and $700 billion to downstream infrastructure. Natural gas, when combined with decarbonization technologies such as carbon capture, utilization and storage, provides a viable pathway to a balanced and sustainable energy transition.
According to the outlook, key drivers of natural gas growth include favorable policies, increasing global LNG production and rising demand for power generation. With Africa’s urbanization rate expected to reach 68% by 2030, natural gas is positioned to drive technological innovation, economic growth and regional cooperation. Primary energy demand in Africa is forecasted to grow at an annual rate of 0.6% through 2050, accounting for a quarter of the global increase. Notably, Africa is set to lead global natural gas demand growth at a rate of 3% annually—the fastest worldwide.
With over 600 million people across Africa lacking electricity and over 900 million without access to clean cooking solutions, insights from GECF at AEW: Invest in African Energies 2025 will showcase Africa’s vast investment opportunities. As global interest in African hydrocarbons rises, GECF member countries—including Angola, Algeria, Libya, Nigeria, Senegal, Mauritania, Egypt and Mozambique—are well-positioned to drive economic expansion and maximize energy monetization strategies.oil-gas
11 March 2025World Oil
Oil Revival Plan Put Forth By Ecuador’S President Falters Amid Re-Election Effort(Bloomberg) – Ecuador President Daniel Noboa’s plan to revitalize the nation’s biggest oil field is crumbling as he scrambles to secure re-election weeks before a runoff vote.
Since striking a deal last year to hand Ecuador’s Sacha field to Sinopetrol, an obscure consortium of foreign oil companies, Noboa has faced mounting criticism over his handling of the deal. His finance minister, Juan Carlos Vega, resigned over it, according to people familiar with the matter who asked not to be named discussing private matters. And his rival for the presidency, socialist candidate Luisa Gonzalez, has said she would revoke the arrangement if elected in the April 13 runoff.
Although Sacha’s revival, which is critical for Ecuador’s ailing economy, depends on foreign investment, critics spanning party lines have blasted Noboa’s approach to finding an operator for the asset and questioned whether the consortium – consisting of Amodaimi, a subsidiary of China’s Sinopec, and Petrolia, a unit of Canada’s New Stratus Energy Inc. – has the cash and expertise to boost production.
Amid the controversy, Noboa last week threatened to cancel the contract unless Sinopetrol pays a $1.5 billion entry bonus by March 11, about a month earlier than agreed. The accelerated deadline sets a practically insurmountable challenge for the consortium, leading analysts to speculate that Noboa is deliberately trying to scuttle the deal in an attempt to save his candidacy after edging out Gonzalez by just 15,000 votes in the first round of the election.
“The damage has already been done, but he’s limiting his losses” said Sebastian Hurtado, head of political risk consultancy Prófitas in Quito. Former Oil Minister Fernando Santos separately characterized Noboa’s ultimatum as “a pretext to end the negotiations elegantly.”
Noboa’s office didn’t immediately return a request for comment, but the president affirmed the deadline during an event in Guayaquil Monday. “We are going to keep our word,” he said of the deal, according to newspaper El Universo. “If the bonus isn’t paid tomorrow, then it won’t go ahead.”
See also: Ecuador's President Noboa demands $1.5 billion early payment for major oil deal
Raising Sacha’s output would provide revenue for whichever candidate wins the election, but the promised $1.5 billion would have given Noboa an immediate fiscal shot in the arm, regardless of the deal’s long-term benefits.
Ecuadorian officials have long aimed to boost Ecuador’s output to 1 million barrels a day but financial instability, bureaucratic dysfunction and disputes with foreign oil companies have all hampered progress. Production from the nation’s top field has fallen 15% from a 2014 peak of 560,000 barrels a day. Petroecuador produces 80% of the nation’s output with the rest pumped by a dozen mostly foreign companies.oil-gas
11 March 2025