oil-gas
14 January 2025
Africa Oil Gas Reportoil-gas
Jan 14, 2025Africa Oil Gas Report
By Macson Obojemuinmoin
Nigeria’s crude oil output in December 2024 was 1,484,585Barrels of oil per day (BOPD), a slight drop from the November 2024 by ~1,000Barrels of Oil per Day. The figure is higher than the October 2024 production by over 150,000BOPD, signaling a continuing end of year uptick. Crude and condensate output for December 2024, was 1,667,560BOPD, compared with 1,690,485BPD in November 2024; condensate output dipped by 22,905BPD from November to December.
What’s noteworthy about the November and December 2024 output, either as oil or both oil and condensate is that they were the highest liquid hydrocarbon production since April 2021.
Still this is a low in historical context; the 2024 (January to December) crude oil and condensate average turns out to be 1, 548,538BPD (or 1.59MMBPD), but the country’s crude oil output alone in 2020 was 1.828MMBPD and in 2019 it was 2.1MMBPD. Between 1999 and 2020 it had ranged from as ‘low’ as 1.89MMBPD and as high as 2.53MMBPD.
Some of the clearest indications that the country is on a course to bolster hydrocarbon output include Seplat’s takeover of the assets of Mobil Producing Nigeria, which had not drilled a single well for the last three years, and the finalisation of the sale of Shell Petroleum Development Company’s operated Oil Mining Leases to Renaissance Africa. But the “surge” that is expected from these events will not happen in a hurry. Shell’s Final Investment Decision to develop Bonga North field as a tie back to the Bonga Main’s FPSO will only bring in the liquids (anticipated peak output of 110,000BOPD) from 2028 at the earliest.
For the second consecutive month, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) published, in its footnote, what it calls the highest and the lowest output in the course of the month. In the footnote for December 2024, it says that “the Lowest and Peak Production in December were 1.57MMBOPD and 1.79MMBOPD respectively”. That footnote is clearly a reference to the argument that erupted in November 2024 over NNPC’s claims that the country produced 1.8MMBPD of crude and condensate and the official figure from the NUPRC turned out to be 1.69MMBPD for that month. The NUPRC doesn’t have to help NNPC clean its act: Simple statistics would indicate that if the average output over the course of 31 days is 1.667MMBPD, a 1.79MMBPD data point would be an extreme outlier, if the lowest figure is 1.57MMBPD. This is, using NUPRC’s own figures.
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Us: Northern Oil And Gas Announces $1.2 Billion Joint Acquisition With Infinity Natural ResourcesHIGHLIGHTS
Northern Oil and Gas (NOG) has entered into a definitive agreement to acquire a 49% stake in Ohio Utica Shale Assets in partnership with Infinity for a purchase price, net to NOG, of $588.0 million in cash, subject to customary closing adjustments.
UPSTREAM ASSETS
The Acquired Assets are located in the Utica shale of eastern Ohio and include approximately 35,000 net acres with over 100 gross identified undeveloped locations.
The acquired upstream asset is one of the few remaining growth assets in the core of the Utica that can support a full rig development pace for multiple years. The upstream asset has an expected 2026 production, net to NOG, of ~65 MMcfe per day (2-stream, 92% gas) for 2026 with a 30%+ compound annual growth rate in production through the end of the decade, assuming a development plan with a continuous one rig program. The upstream asset represents a ~43% working interest net to NOG. In addition, the asset features a low PDP decline rate of ~15% in the next twelve months, falling to ~13% over the next several years. The asset is expected to generate ~$100MM in unhedged cash flow from operations net to NOG in 2026 at recent strip prices with ~19% generated by the midstream assets. The substantial growth expected on the assets on a go-forward basis is based on an average annual capital program of ~$100 million at a single rig cadence.
MIDSTREAM ASSETS
Captive midstream offers opportunity to drive best in class margins with limited incremental midstream growth-capital required. The midstream system has been built to accommodate a peak historical gross level of ~600 MMcfe per day. Significant midstream infrastructure with 140 miles of pipe supporting low- and high-pressure gathering, compression and 90 miles of water delivery systems. The Acquired Assets are positioned to realize improved pricing via direct connections to premium out of basin markets via the Tallgrass Rex pipeline.
The midstream system has ample capacity at regional processing plants (MPLX/Blue Racer) to grow future volumes and provides optionality across phase windows driven by both a rich and dry gas system. Midstream cash flows are expected to grow by 75% by 2028. NOG also believes that third party volume opportunities exist over time driving higher throughput and generating fee-based revenue, creating further upside.
Upon closing and transition of services, Infinity will be the operator of substantially all of the assets, with NOG participating in development pursuant to cooperation and multi-year joint development agreements entered into in connection with the acquisition.
The effective date for the transaction is July 1, 2025, and closing is expected by the end of the first quarter of 2026. Due to the effective date, NOG expects to receive a material downward closing purchase price adjustment. In connection with signing, NOG is placing a $58.8 million deposit in escrow. The obligations of the parties to complete the acquisition are subject to satisfaction or waiver of customary closing conditions.
MANAGEMENT COMMENTS
'NOG is singularly focused on executing transactions that add value to our platform for the long-term. We are extremely pleased to be partnering with Infinity on one of the last growth assets in the core of the Utica. The vertical integration of this asset adds an incremental dimension of value creation for shareholders and enhances resiliency with lower breakevens to generate free cash flow through cycle,' commented Nick O’Grady, NOG’s Chief Executive Officer. 'The Utica has emerged as one of the target rich natural gas plays in the United States. Infinity has already been a strong operating partner for NOG, and we share their focus on creating value. Our alignment in that vein sets the ground for a successful partnership, and we look forward to working together to achieve our mutual desire to generate returns for our respective investors. This transaction is now the largest we have done to date and is an excellent addition to our Appalachian portfolio, offering the benefit of an integrated midstream and a long-term, visible growth path well past the end of the decade.'
'This Utica transaction exemplifies the intersection where NOG shines – identifying and acquiring best in class assets with the potential for significant long-term upside while also providing valuable capital to like-minded operators seeking to expand their footprint,' commented Adam Dirlam, NOG’s President. 'These assets epitomize our returns-focused strategy: delivering immediately while offering significant growth potential further enhancing NOG’s optionality. Importantly, like our precedent joint development transactions, we have devised an aligned, conservative development and governance plan with a proven E&P company. We continue to be the partner of choice for our operators as the largest, best capitalized and most dependable non-op working interest owner in the United States.'
ADVISORS
Moelis & Company served as financial advisor to NOG for the acquisition.
Gibson, Dunn & Crutcher LLP is serving as legal counsel to NOG for the acquisition.
Original announcement link
Source: Norther Oil and Gas
Energypedia News
oil & gas
11 December 20255 min readUs: Northern Oil And Gas Announces $1.2 Billion Joint Acquisition With Infinity Natural Resources
Energypedia News
11 December 2025
oil-gas
Spe Warns Africa Needs $375 Billion To Scale Natural Gas DevelopmentAfrica will require an estimated $375 billion in investment over the next 10 to 12 years to fully develop its natural gas resources and meet rising domestic and export demand, according to the Society of Petroleum Engineers (SPE).
The estimate was presented by Dr. Riverson Oppong, Africa Director at SPE, during a workshop at the MSGBC Oil, Gas & Power 2025 conference in Senegal. Despite holding roughly 8% of global natural gas reserves, Africa remains underrepresented in global gas markets due to policy constraints, infrastructure gaps and limited access to financing, SPE said.
“Africa is a gas market,” Oppong said. “But despite our immense potential, we don’t participate meaningfully on the global stage. The constraints are policy, commercial frameworks, infrastructure and financing conditions.”
SPE noted that several countries are working to address these challenges through integrated gas master plans, improved contractual terms and stronger institutional capacity. However, large-scale upstream and midstream investment will be required to translate recent discoveries into sustained production growth.
According to industry data shared at the event, 17 high-impact exploration wells were completed across Africa in 2025, reinforcing expectations of continued upstream activity. SLB representatives said oil and natural gas demand on the continent is expected to increase by about 20% by 2050, driven by population growth, industrialization and power demand.
SLB highlighted digital technologies as a key lever for improving exploration success, drilling efficiency and production optimization across African assets. Technologies including IoT, advanced analytics and artificial intelligence were cited as tools to enhance real-time monitoring, predictive maintenance and operational decision-making.
“Data is a key focus area for improving the upstream value chain in Africa,” said Larry Velasco, Africa New Ventures Manager at SLB, noting that poor data quality can result in revenue losses of 15% to 25% for operators.
Paul Freeman, Global Exploration Advisor at SLB, added that rising energy demand underscores the urgency of new investment.
“Energy demand is increasing rapidly, and Africa’s oil and gas industry requires accelerated capital deployment to offset decline and meet peak demand,” Freeman said.
SPE said continued collaboration between operators, service companies, governments and financial institutions will be critical to unlocking Africa’s gas potential and advancing long-term energy security across the continent.
Image provided by APO Group on behalf of Energy Capital & Power.
World Oil
oil & gas
11 December 20252 min readSpe Warns Africa Needs $375 Billion To Scale Natural Gas Development
World Oil
11 December 2025
oil-gas
Ge Vernova Expects 80 Gw Of Gas Turbine Contracts By Year'S EndGE Vernova expects 80 gigawatts (GW) of signed combined-cycle gas turbine contracts by the end of the year as electricity demand from Big Tech's data centers ramps up, the manufacturer of power-generation equipment said on Tuesday.
As U.S. power demand reaches record highs due to the proliferation of energy-intensive data centers supporting artificial intelligence (AI) initiatives, demand for turbines and other equipment to produce electricity from natural gas has increased.
GE Vernova has sold out of its gas turbines through 2028 and has less than 10% left to sell the following year, CEO Scott Strazik said at a conference for investors.
On the prospect of AI-related investments developing into a bubble, Strazik said he didn’t see signs of any slowdown.
“What we’re seeing in the fourth quarter, and into 2026, is accelerating growth in demand,” he said. “Orders in the fourth quarter growing materially from hyperscalers.”
Going forward, data centers are expected to account for about a third of the Massachusetts-based company's gas-power transactions in the U.S., Strazik said.
So far this quarter, GE Vernova has signed 18 GW of gas power contracts, the company said, compared to 8 GW in the first three months of the year.
Some of the biggest obstacles include state and local permitting for power plants and the availability of fuel pipelines, which typically face problems being built across states.
Gas Processing and LNG
oil & gas
11 December 20252 min readGe Vernova Expects 80 Gw Of Gas Turbine Contracts By Year'S End
Gas Processing and LNG
11 December 2025
oil-gas
Nog Expands Utica Gas Portfolio In $1.2 Billion Deal With InfinityNorthern Oil & Gas Inc. (NOG) is expanding its Appalachian footprint with a $1.2 billion joint acquisition alongside Infinity Natural Resources, securing a 49% non-operated stake in a premier Utica shale upstream and midstream package previously held by Antero Resources and Antero Midstream. The deal delivers roughly 35,000 net acres, more than 100 undeveloped drilling locations, and a fully built gathering, compression and water-handling network positioned to support long-term growth.
The assets are expected to produce about 65 MMcfe/d net to NOG in 2026—92% gas—with a projected production CAGR above 30% through the decade as the partnership advances a single-rig development plan. NOG noted that the low-decline inventory and integrated midstream system underpin competitive breakevens below $2/MMBtu and support both margin expansion and cash-flow durability.
The midstream portfolio includes more than 140 miles of gathering lines, compression facilities and 90 miles of water infrastructure with capacity for significant throughput growth. NOG anticipates midstream free cash flow to rise more than 25% annually through the decade, supported by premium market access via the Tallgrass Rex pipeline.
Management said the transaction fits NOG’s strategy to build scale in high-quality gas basins while partnering with aligned operators. CEO Nick O’Grady called the Utica package “one of the last growth assets in the core of the play,” adding that the vertically integrated position enhances NOG’s resilience across commodity cycles.
The deal is expected to close by the end of Q1 2026, with an effective date of July 1, 2025. NOG plans to fund the acquisition through operating cash flow, available liquidity, and borrowings under its reserves-based lending facility.
World Oil
oil & gas
09 December 20252 min readNog Expands Utica Gas Portfolio In $1.2 Billion Deal With Infinity
World Oil
09 December 2025
oil-gas
Rystad Energy: Key Digital Initiatives Could Save Oil And Gas Industry Over Us$320 BillionDigital innovation is rapidly emerging as a defining force for the oilfield services (OFS) sector as it adapts to changing market conditions, creating opportunities for steady, long-term growth. Rystad Energy predicts that in the next five years, the oil and gas industry could save more than US$320 billion by further digitalising operations in five key areas: drilling optimisation, autonomous robotics, predictive maintenance, reservoir management, and logistics optimisation. The OFS business ecosystem is expected to undergo a significant transformation as continued merger and acquisition (M&A) activity, new business partnerships with technology firms, and greater software integration drive digital-first business strategies for key OFS players.
“We estimate that US$320 billion is a modest figure, as broader digital adoption across other business domains could generate even greater value. To realize this, executives will need to deliberately prioritise digital transformation by fostering a less risk-averse business culture,” said Binny Bagga, Senior Vice President, Supply Chain.
Learn more with Rystad Energy’s Service Market Solution.
The importance of digitalisation, although unstandardised and sometimes difficult to measure, is more often emerging in financial disclosures. Most of the market players in the supply chain do not yet break out standalone, generally accepted accounting principle (GAAP)-level ‘digital profit’ in the same way a pure software as a service company would. However, this has slowly started to change, with SLB now reporting a digital division in its earnings. SLB expects its digital division’s margin to reach 35% on a full-year basis in 2025. Another example is Viridien, a global technology and geoscience leader. Its digital, data and environment (DDE) segment generated US$787 million, growing 17% and delivering adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$458 million last year. Digital revenue streams offer more stable, resilient growth trajectories that are less exposed to the volatility of upstream capex.
“The investment community is increasingly valuing energy-technology narratives, with service companies that clearly articulate technology-driven and recurring-revenue strategies often commanding higher valuation multiples than those tied solely to equipment cycles. However, such premium valuations hinge on demonstrated scalability. Emphasising digitalisation is a direct pathway to creating lasting shareholder value,” Bagga said.
Nevertheless, widespread adoption of digital oilfields faces significant barriers, including substantial upfront costs for hardware, software, ongoing maintenance and cybersecurity. These hurdles are especially acute for smaller firms or those operating with legacy infrastructure, complicating the justification of such investments amid economic uncertainty. To mitigate these challenges, mid-tier companies are selectively enhancing their offerings with targeted digital capabilities, while smaller niche players and specialised software vendors focus on delivering modular, custom solutions.
A notable trend in digital investment is the growing use of partnerships with technology firms, which complements internal capability building and acquisitions in the digital space. The overall intensity and frequency of these partnerships have increased sharply, especially since 2021, with the most significant uptick observed in the past two years among leading companies such as SLB, Halliburton, NOV and Baker Hughes. This pattern highlights a clear industry shift toward digital transformation, with large suppliers actively accelerating their collaborations with technology partners in recent years.
Oilfield Technology’s November/December 2025 issue
The November/December 2025 issue of Oilfield Technology focuses on how the upstream sector is modernising to stay efficient, competitive, and lower-carbon. It explores decarbonising drilling operations, improving performance through advanced monitoring and drilling technologies, reshoring and strengthening supply chains, enhancing offshore inspections, and tightening cybersecurity. Together, the articles highlight a sector pushing towards greater efficiency, resilience, and sustainability across the full lifecycle of oilfield operations.
Read the article online at: https://www.oilfieldtechnology.com/digital-oilfield/05122025/rystad-energy-key-digital-initiatives-could-save-oil-and-gas-industry-over-us320-billion/
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Oilfield Technology
oil & gas
06 December 20254 min readRystad Energy: Key Digital Initiatives Could Save Oil And Gas Industry Over Us$320 Billion
Oilfield Technology
06 December 2025
oil-gas
Digitalization May Unlock $320 Billion In Oil And Gas Savings By 2030, Analysts SayThe oil and gas industry could capture more than $320 billion in savings over the next five years by accelerating digital adoption across core operational domains, according to new analysis from Rystad Energy. The findings underscore how digital technologies—once considered optional enhancements—are rapidly becoming essential tools for efficiency, resilience and long-term competitiveness.
Rystad identifies five priority areas where digitalization can deliver the largest near-term gains: drilling optimization, autonomous robotics, predictive maintenance, reservoir management and logistics optimization. Together, these technologies could reshape cost structures for operators and oilfield service (OFS) companies as they contend with shifting market conditions and tighter capital discipline.
“We estimate that $320 billion is a modest figure,” said Binny Bagga, Senior Vice President, Supply Chain at Rystad Energy. “Broader digital adoption across additional business domains could generate even greater value. To realize this, executives will need to deliberately prioritize digital transformation by fostering a less risk-averse business culture.”
Digitalization’s growing influence is increasingly reflected in financial reporting across the OFS sector. While most service providers do not yet break out standalone digital revenue, that is beginning to change. SLB now reports results for its digital division, which is expected to reach a 35% margin in 2025. Technology and geoscience firm Viridien reported $787 million in digital, data, and environmental revenue last year, growing 17% with strong EBITDA performance.
According to Rystad, investors are rewarding companies that articulate credible, scalable digital strategies. Energy-technology narratives are commanding higher valuation multiples, but only when companies demonstrate that new platforms and software-based revenue streams can scale.
Still, digital transformation is not without challenges. High upfront hardware and software costs, cybersecurity requirements, and aging infrastructure continue to complicate adoption—particularly for smaller operators and service companies. To overcome these barriers, many mid-tier OFS firms are selectively adding digital capabilities, while niche players are offering modular software solutions tailored to specific operational needs.
A significant trend highlighted in the report is the accelerating pace of partnerships between OFS companies and external technology providers. Collaboration across oilfield engineering, automation, AI, cloud, and data-management firms has surged since 2021, driven heavily by SLB, Halliburton, NOV and Baker Hughes.
Rystad concludes that the OFS ecosystem is entering a new phase defined by digital-first business models, deeper technology integration, and a heightened focus on recurring revenue streams—marking a structural shift in how services will be delivered across the upstream value chain.
World Oil
oil & gas
06 December 20252 min readDigitalization May Unlock $320 Billion In Oil And Gas Savings By 2030, Analysts Say
World Oil
06 December 2025
oil-gas
Mauritania Accelerates Green Hydrogen Drive, Eyes 12.5M-Ton Output By 2035Mauritania is accelerating plans to become Africa’s premier green hydrogen producer, targeting 12.5 million tons by 2035. Backed by world-class solar and wind resources and proximity to Europe, the country is positioning itself as a competitive supplier for emerging global markets. A supportive regulatory framework – including Africa’s first dedicated Green Hydrogen Code and the creation of the Mauritanian Agency for Green Hydrogen – is helping attract large-scale foreign investment.
The country’s project pipeline has expanded rapidly in recent years, with multi-gigawatt developments led by global partners such as CWP Global, TotalEnergies, Chariot, GreenCo Energy, Masdar and Hynfra. International finance institutions, including the World Bank, European Investment Bank (EIB) and the EU, are providing technical and financial backing as Mauritania builds out regulatory systems, infrastructure and skills required to support the new industry.
Project Pipeline and Strategic Advantages
Mauritania holds the largest green hydrogen pipeline in sub-Saharan Africa. Flagship initiatives include CWP Global’s AMAN project, one of Africa’s most advanced developments, aiming for 30 GW of wind and solar capacity to produce up to 1.7 million tons of green hydrogen or 10 million tons of green ammonia annually. Chariot and TotalEnergies are advancing the 10 GW Project Nour near Nouadhibou, supported by a partnership with the Port of Rotterdam for future exports.
GreenCo Energy’s Megaton Moon is designed for 6 GW of electrolysis powered by a combined 13 GW of solar and wind, with Phase 1 expected in 2029. Additional projects include Hynfra’s $1.5-billion green ammonia facility scheduled for 2030 and a 10 GW green ammonia development by the Infinity Power-Masdar-Conjuncta consortium. The Mauritanian government views these investments as key to economic diversification, universal electrification and new industrial activity, including green steel and hydrogen-enabled mining.
Infrastructure, Workforce and Investment Requirements
Despite strong momentum, significant sector-wide challenges remain. Water scarcity is a critical constraint, requiring large-scale desalination – an energy-intensive process that will demand grid expansion. Planned upgrades include new wells, desalination plants in Nouadhibou and Ndiago, and a 1,400-km 225 kV transmission line from Néma to Nouakchott to link regional grids. A comprehensive World Bank assessment has also identified gaps in export infrastructure, including pipelines, storage terminals and port capacity.
Human capital readiness is another priority. The government notes a current lag in technical training, with the risk that Mauritania could be excluded from specialized jobs. The World Bank-backed Development of Energy Resources and Mineral Sector Support project will support vocational education, institutional strengthening and the country’s first utility-scale battery storage system to stabilize the grid.
To bridge financing and capacity gaps, Mauritania is working closely with Germany, France, Spain, the EU, the EIB and multilateral institutions under initiatives such as Global Gateway, which aims to mobilize €300 billion for green hydrogen in Mauritania. These partnerships aim to mobilize large-scale capital, de-risk private investment and support the regulatory clarity offered by the Green Hydrogen Code.
Mauritania’s green hydrogen ambitions will be spotlighted at the upcoming MSGBC Oil, Gas & Power 2025 conference and exhibition – taking place in Dakar from December 8-10. The hydrogen-focused session From Vision to Reality: How Will Hydrogen Shape Africa’s Landscape will examine how the region is moving from potential to execution, exploring green hydrogen’s broader economic impact across the MSGBC basin and positioning the resource as a cornerstone of West Africa’s energy and economic transition.
Explore opportunities, foster partnerships and stay at the forefront of the MSGBC region’s oil, gas and power sector. Visit www.msgbcoilgaspower.com to secure your participation at the MSGBC Oil, Gas & Power 2025 conference. To sponsor or participate as a delegate, please contact sales@energycapitalpower.com
Gulf Oil and Gas
oil & gas
06 December 20253 min readMauritania Accelerates Green Hydrogen Drive, Eyes 12.5M-Ton Output By 2035
Gulf Oil and Gas
06 December 2025
oil-gas
Egypt'S Petrojet Secures $273M Oman Gas Pipeline Deal, Deepening Energy TiesEgypt's Petroleum Projects and Technical Consultations Company (PETROJET) has secured a $273 million Engineering, Procurement, and Construction (EPC) contract to build a 193-kilometer natural gas pipeline in Oman.
The contract, announced on Monday during a meeting between Egyptian Minister of Petroleum and Mineral Resources Karim Badawi and OQ Gas Networks (OQGN) Managing Director Mansoor Ali Al-Abdali, highlights the growing energy infrastructure cooperation between the two nations.
In addition to the gas pipeline, PETROJET will implement the first phase of OQGN's planned hydrogen pipeline network, undertaking 400 kilometers of the total 2,000-kilometer project at an estimated cost of $250 million.
The Egyptian firm is also preparing to compete for upcoming green hydrogen and Natural Gas Liquids Extraction (NGLE) projects, leveraging its international expertise. The announcement was made at Oman’s Green Hydrogen Summit, where leaders discussed collaborative opportunities.
Separately, Minister Badawi and Mohsen Al-Hadhrami, Undersecretary of the Ministry of Energy and Minerals and Chairman of Petroleum Development Oman (PDO), reviewed PETROJET’s involvement in civil works and housing under a new framework agreement, alongside five other firms.
Other Egyptian firms, Engineering for the Petroleum and Process Industries (ENPPI) and Egypt Gas, are moving forward with registration on OQGN’s Tawreed platform. Both companies are finalizing technical pre-qualification documents for gas pressure reduction stations at Duqm Refinery, aiming for completion before the end of the year.
ENPPI, a current partner with OQGN, Oman Tank Terminal Company (OTTCO), and Duqm Refinery, is listed as a strong contender for all forthcoming project tenders.
Further discussions, including meetings with OQ Alternative Energy and Hydrogen Oman Company (Hydrome), focused on expanding Egyptian companies’ footprint in oil, natural gas, green hydrogen, and ammonia projects, particularly in the key regions of Salalah and Duqm.
The suite of agreements solidifies the deepening relationship between the Egyptian and Omani energy sectors, with PETROJET, ENPPI, and other Egyptian firms poised for pivotal roles in Oman’s emerging energy and industrial development initiatives.
Pipeline Technology Journal
oil & gas
03 December 20252 min readEgypt'S Petrojet Secures $273M Oman Gas Pipeline Deal, Deepening Energy Ties
Pipeline Technology Journal
03 December 2025
oil-gas
Petrobras Trims $109 Billion Capex Plan As Lower Oil Prices Pressure Dividends(Bloomberg) – Brazilian oil major Petrobras announced a 2% decrease in its next five-year investment plan to $109 billion, putting dividend payments in doubt at a time of lower oil prices. Shares fell.
The state-controlled oil producer is caught between the government’s desire to grow the economy - especially ahead of a 2026 presidential election - and investors who demand high dividends and low debt. While Petrobras announced a regular dividend payout of at least $45 billion for the 2026-2030 period, similar to the previous plan, it didn’t commit to pay any extraordinary payouts to shareholders.
Petrobras shares slid as much as 3.4% in Sao Paulo on Friday, the largest intraday drop since August, while Brent prices were are slightly lower.
“The absence of short-term capex optimization could result in single-digit dividend yields ,” Itau Unibanco Holding SA said in a note to clients. “This could be perceived as disappointing by investors.”
Petroleo Brasileiro SA, as it is formally known, will direct $91 billion of the total capital expenditure to projects under implementation, of which $10 billion will still need budget confirmation subject to a financing analysis. The rest is still under analysis “with a lower degree of maturity,” it said in a filing on Thursday.
The spending plan is being closely watched by investors as it has an important political dimension in Brazil. The company is a major source of cash for the federal budget. It is the first time Petrobras has reduced its five-year budget after President Luiz Inacio Lula da Silva took office in 2023.
The previous plan was based on an oil price assumption of $83 a barrel, while Brent crude is currently trading near $63.
Petrobras earmarked 71.6% of the 2026-2030 plan, or $78 billion, for exploration and production. That includes boosting output at its deep-water fields in the so-called pre-salt region, while also exploring new areas in Brazil and abroad.
The Rio de Janeiro-based company’s plan includes eight new offshore production units by 2030, and an additional 10 production vessels that are being considered for after 2030. It expects to drill 15 wells at Brazil’s Equatorial Margin — an offshore region where it recently got a permit for its first well — and is hoping to find discoveries similar to the ones Exxon Mobil Corp. has made off the coast of Guyana.
Oil production
Oil production is expected to peak at 2.7 million barrels a day by 2028, up from a previous plan ceiling. Petrobras also raised the short-term target to 2.5 million barrels of oil a day next year from the previous 2.4 million, potentially adding to a global glut at a time when the International Energy Agency is concerned about oversupply.
Refining and related business lines such as fertilizers and logistics will account for about $20 billion of spending over the next five years. Petrobras is developing a portfolio of renewable fuels in an effort to decarbonize industries including shipping and aviation. The company said it will not build new refineries.
Planned spending on gas and low-carbon projects is at $4 billion, driven by biofuels, biomethane and a return to ethanol production. Petrobras is looking at taking preferably strategic minority partnerships or shared control with relevant players in these areas, it said.
Petrobras kept its debt ceiling at $75 billion.
The plan “could make investors more skeptical toward the Petrobras investment thesis, as it shows a tight financial situation amid lower Brent prices, despite solid operating performance,” BTG analyst Gustavo Cunha wrote in a report, noting that Petrobras’s outlook now depends even more on a decline in Brazil’s sovereign risk heading into the 2026 elections.
World Oil
oil & gas
29 November 20254 min readPetrobras Trims $109 Billion Capex Plan As Lower Oil Prices Pressure Dividends
World Oil
29 November 2025
oil-gas
Uae: Adnoc Gas And Emsteel Sign $4 Billion, 20-Year Natural Gas Supply Agreement To Power Uae’S Industrial GrowthADNOC Gas and its subsidiaries, a world-class integrated gas processing company, has announced the signing of a landmark agreement, valued between $3.5 and $4.2 billion with EMSTEEL, one of the region’s largest integrated steel and building materials manufacturers. The 20-year agreement, effective January 1, 2027, secures a stable and reliable supply of lower-carbon natural gas to power EMSTEEL’s operations and future growth.
This milestone reinforces the long-standing partnership between ADNOC Gas and EMSTEEL and demonstrates both companies’ commitment to driving sustainable economic growth in the UAE. The agreement not only secures a dependable energy supply for one of the country’s leading industrial producers but also strengthens ADNOC Gas’ competitive position as a key enabler of industrial resilience and cleaner energy transition.
Fatema Al Nuaimi, Chief Executive Officer of ADNOC Gas, said: 'This landmark agreement to supply EMSTEEL with lower-carbon natural gas underpins ADNOC Gas role in boosting the UAE’s industrial growth and economic development. We remain firmly committed to delivering reliable, lower-carbon energy that powers national industries, drives value creation, and helps secure the UAE’s long term prosperity.'
Engineer Saeed Ghumran Al Remeithi, Group Chief Executive Officer of EMSTEEL, said: 'EMSTEEL is proud to extend its long-standing partnership with ADNOC Gas through this landmark agreement, which reflects the strength of collaboration between two national champions driving the UAE’s industrial and economic transformation. This strategic partnership not only ensures a secure and sustainable energy supply for our operations but also reinforces our shared commitment to maximizing In-Country Value and supporting national economic resilience. With ADNOC Gas as a key energy partner, EMSTEEL will continue advancing green steel production, enhancing efficiency across our value chain, and contributing to the sustainable growth of the nation’s industrial ecosystem.'
In clear recognition of ADNOC Gas’ strategic importance, the ADNOC Board of Directors selected Habshan, one of its most critical operational sites, to hold its annual meeting last Monday. The decision underscores the vital contribution of ADNOC Gas to the UAE’s energy security, industrial resilience, and global standing as a responsible and dependable energy provider.
During the visit, their Highnesses toured key facilities and were briefed on ADNOC Gas’ ongoing expansion programs, including major processing, compression, and sustainability initiatives that strengthen operational excellence and support the UAE’s long-term energy strategy. The Board’s presence at Habshan reflects strong confidence in the company’s direction, its people, and its growing contribution to the national economy.
EMSTEEL is the UAE's largest publicly listed steel and building materials company, operating an integrated manufacturing plant, and exporting its products globally. By delivering a stable, long-term supply of lower carbon natural gas, ADNOC Gas is enabling EMSTEEL to scale production while managing emissions and strengthening the resilience of the UAE’s manufacturing base.
Original announcement link
Source: ADNOC Gas
Energypedia News
oil & gas
28 November 20253 min readUae: Adnoc Gas And Emsteel Sign $4 Billion, 20-Year Natural Gas Supply Agreement To Power Uae’S Industrial Growth
Energypedia News
28 November 2025
oil-gas
Angola Starts Up $4 Billion Gas Facility To Advance Energy Security, Gas Monetization(Bloomberg) – Angolan President João Lourenço opened a $4 billion gas processing plant in Soyo as the longtime crude producer increases its focus on the fuel.
The facility, built by the Novo Consórcio de Gás, can process 400 million cubic feet of gas a day from Angola’s first standalone fields, Minerals and Petroleum Minister Diamantino Azevedo said at the site. It was finished months ahead of schedule.
NCG stakeholders include Azule Energy, Sonangol E&P, Chevron and TotalEnergies.
With the start of operations Thursday, the plant will supply fuel for domestic power, industrial users and LNG exports as Angola works to broaden its energy mix and reduce its dependence on crude. That includes using gas for electricity generation, petrochemicals, ammonia and urea production, Azevedo said.
The project will make an important contribution to energy security and to Angola’s industrialization capacity. “This is only the beginning,” Azevedo said. “We will continue developing additional gas resources offshore and onshore.”
Azule Energy Chief Executive Officer Adriano Mongini said he is “proud to deliver a project with a truly transformative impact on Angola’s gas sector.” The Eni SpA and bp Plc joint venture completed the Quiluma and Maboqueiro gas field platforms earlier this year.
World Oil
oil & gas
28 November 20251 min readAngola Starts Up $4 Billion Gas Facility To Advance Energy Security, Gas Monetization
World Oil
28 November 2025
oil-gas
Uae’S Adnoc Gas And Emsteel Sign $4 Billion 20-Year Natural Gas Supply AgreementUAE’s ADNOC Gas Plc and its subsidiaries announced the signing of a landmark $4-billion agreement, valued between $3.5 and $4.2 billion with EMSTEEL, one of the region’s largest integrated steel and building materials manufacturers.
The 20-year agreement, effective January 1, 2027, secures a stable and reliable supply of lower-carbon natural gas to power EMSTEEL’s operations and future growth.
The company stated that, this milestone reinforces the long-standing partnership between ADNOC Gas and EMSTEEL and demonstrates both companies’ commitment to driving sustainable economic growth in the UAE. The agreement not only secures a dependable energy supply for one of the country’s leading industrial producers but also strengthens ADNOC Gas’ competitive position as a key enabler of industrial resilience and cleaner energy transition.
In clear recognition of ADNOC Gas’ strategic importance, the ADNOC Board of Directors selected Habshan, one of its most critical operational sites, to hold its annual meeting last Monday. The decision underscores the vital contribution of ADNOC Gas to the UAE’s energy security, industrial resilience, and global standing as a responsible and dependable energy provider.
During the visit, their Highnesses toured key facilities and were briefed on ADNOC Gas’ ongoing expansion programs, including major processing, compression, and sustainability initiatives that strengthen operational excellence and support the UAE’s long-term energy strategy. The Board’s presence at Habshan reflects strong confidence in the company’s direction, its people, and its growing contribution to the national economy.
EMSTEEL is the UAE’s largest publicly listed steel and building materials company, operating an integrated manufacturing plant, and exporting its products globally. By delivering a stable, long-term supply of lower carbon natural gas, ADNOC Gas is enabling EMSTEEL to scale production while managing emissions and strengthening the resilience of the UAE’s manufacturing base.
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SaudiGulf Projects – October 2025 Updates along with summary of Major Projects awards
Now available in PDF format!
Stay ahead with the latest project news, developments, and insights from across the Gulf.
For more details, please visit: Monthly Reports-October 2025
Saudi Gulf Projects
oil & gas
27 November 20252 min readUae’S Adnoc Gas And Emsteel Sign $4 Billion 20-Year Natural Gas Supply Agreement
Saudi Gulf Projects
27 November 2025
oil-gas