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Eni Signs $1.35 Billion Production Sharing Deal With Algeria'S Sonatrach
World Oil
Eni Signs $1.35 Billion Production Sharing Deal With Algeria'S SonatrachAlgeria’s state-owned oil company Sonatrach and Italy’s Eni have signed a 30-year production sharing contract to explore and develop the Zemoul El Kbar region of Algeria, Sonatrach said in a statement Monday.  During a meeting on Monday in Algiers, Eni and partner Sonatrach signed a new hydrocarbons contract for the Zemoul El Kbarunder area, in the framework of the Law no. 19-13 governing hydrocarbons activities. The contract, with a duration of 30 years, is estimated at a value of $1.35 billion, and covers a development and exploration area of about 4200 sq km (~1622 sq mi) located approximately 300 km (~186 mi) southeast of Hassi Messaoud, also includes neighboring assets previously under separate contracts. The Minister of State and Minister of Energy, Mines and Renewables Energies Mohamed Arkab, the CEO of Sonatrach Rachid Hachichi, and the CEO of Sonelgaz Mourad Adjal were also present at the meeting, Eni stated. With the renewed framework, Eni and Sonatrach are further enhancing the value of the asset through a plan encompassing exploration and development operations, leveraging innovative technologies to optimize recovery rates and existing nearby facilities.  This new agreement follows the recent award, in the context of 2024 Algeria Bid Round, of the Reggane II block to Eni in partnership with PTTEP.  In addition to the contract signing, Eni and Sontrach also discussed joint programs for gas production, as well as gas and LNG exports to Europe, renewables, hydrogen and the electrical interconnector between Algeria and Europe.  Eni has been present in Algeria since 1981, with an equity production of about 137,000 boed in 2024.
oil-gas
Jul 07, 2025
Exxon Expects $1.5 Billion Earnings Drop From Lower Oil, Gas Prices
World Oil
Exxon Expects $1.5 Billion Earnings Drop From Lower Oil, Gas Prices(Bloomberg) -- ExxonMobil expects lower oil and gas prices to reduce the company’s earnings by about $1.5 billion as a volatile quarter for commodity prices weighs on second-quarter profits.  Oil prices pulled down earnings by about $1 billion while gas contributed another $500 million hit when compared to the first quarter, the Spring, Texas-based company said in a statement Monday. European rival Shell Plc’s shares fell 3.3% Monday after guiding to “significantly lower” trading earnings than the previous quarter.  The two oil giants’ outlook points to a downbeat quarter for the industry, which was already struggling to generate enough free cash to cover the dividends and share buybacks companies hiked after record earnings in 2022. U.S. President Donald Trump’s trade war and larger-than-expected supply increases from OPEC and its allies weighed on oil prices, while U.S. and Israeli attacks on Iran only provided a temporary uplift.   Exxon expects some respite from refining margins, which will add about $300 million to earnings, the company said. The guidance only refers to market pricing and does not factor in operational performance like changes to production or costs, the company said.  Exxon’s guidance is “bang in line” with analysts’ estimates for the second quarter, RBC Capital Markets analyst Biraj Borkhataria said in a research note. Exxon “has a much smaller trading organization than its European peer Shell, and thus was not impacted by the same issues.”
oil-gas
Jul 07, 2025
Totalenergies Moves To Restart Work On $20 Billion Mozambique Lng, Sources Say
World Oil
Totalenergies Moves To Restart Work On $20 Billion Mozambique Lng, Sources Say(Bloomberg) -- Companies hired by TotalEnergies SE to build a $20 billion gas project in northern Mozambique have started preparing to resume work on the venture, four years after it was suspended because of a militant insurgency, according to people familiar with the matter.  Firms have taken preliminary steps, including deploying resources to the project site, said two of the people, who asked not to be identified because the information is confidential. A Total representative declined to comment. The French oil major sent a letter earlier this week along with a so-called notice to proceed with site preparation to companies including Portuguese builder Mota-Engil SGPS SA, which won a $365 million contract with Belgian construction firm Besix Group SA in 2020 to build marine facilities for the project, according to one of the people. Another said discussions have started between contractors and sub-contractors about returning. See also: Mozambique President urges TotalEnergies LNG restart despite risks Mozambique LNG, located in the Cabo Delgado province, is seen as crucial to the future development of the southern African nation, which ranks among the world’s poorest. Total halted work, evacuated workers and declared force majeure in 2021 after an escalation in attacks by Islamic State-linked militants. The plant will liquefy and export the extensive gas reserves off northeast Mozambique that were discovered 15 years ago. Mozambican President Daniel Chapo earlier this week said his government and private companies will have to collectively ensure the necessary security is in place to enable the restart.
oil-gas
Jul 04, 2025
Dno Strikes Deals For Gas Offtake And $500 Million Financing Facility
World Oil
Dno Strikes Deals For Gas Offtake And $500 Million Financing FacilityDNO ASA entered into an offtake agreement with France’s ENGIE SA for DNO’s Norwegian gas production and secured a related offtake financing facility with a major U.S. bank for up to $500 million.  The offtake agreement covers the entirety of DNO’s Norwegian gas production post acquisition of Sval Energi Group AS, offers premium pricing and has a tenor of four years as from 1 October 2025. Related to the agreement, DNO has entered into an offtake financing facility with a U.S. bank for up to $500 million (USD). Under the facility, DNO is paid, by the bank, the value of up to 270 days of scheduled gas production based on future gas sales receivables. The all-in interest rate for drawn amounts under the facility is significantly below conventional reserve-based lending (RBL) terms available to DNO, with no charges for undrawn amounts. There are no financial covenants related to the facility. Proceeds from the offtake financing facility will be used to replace Sval Energi’s similar existing facilities as well as for general corporate purposes. “We have received strong interest by buyers to prepurchase our enlarged North Sea production of 80,000 boed split about equally between oil and gas,” said DNO’s Executive Chairman Bijan Mossavar-Rahmani. “These three-way transactions are made possible because buyers are eager to lock in secure supplies of Norwegian oil and gas and US banks, in particular, have significantly stepped up fossil fuel lending,” he explained. Given availability of attractive offtake financing terms, DNO has repaid and will not renew over $600 million in RBLs across its North Sea subsidiaries. In addition, the Company has borrowed $300 million under a one-year bank bridge loan “to add more arrows to our quiver,” according to Mr. Mossavar-Rahmani. Separately, DNO is in discussions to establish an offtake agreement and related financing facility on comparable terms for its North Sea oil production.
oil-gas
Jul 02, 2025
Equinor, Partners Greenlight $1.3 Billion Investment For Johan Sverdrup Phase 3
World Oil
Equinor, Partners Greenlight $1.3 Billion Investment For Johan Sverdrup Phase 3Equinor and its partners are investing NOK 13 billion in the third phase of Johan Sverdrup, one of the world’s most carbon-efficient oil fields. New subsea infrastructure will increase recovery by 40–50 million barrels of oil equivalent (boe).  “By building on the technologies, solutions, and infrastructure from phases 1 and 2 of Johan Sverdrup, we can carry out an efficient development with a rapid start-up of production," said Trond Bokn, senior vice president for project development in Equinor. "The project increases the recovery rate and value creation from Johan Sverdrup, one of the world’s most carbon-efficient oil and gas fields. At the same time, it contributes to stable energy supplies to Europe." Increased value creation and innovation The development includes two new subsea templates which will be tied into existing infrastructure via new pipelines. The investment will increase recoverable volumes from the field by 40–50 million boe, with production expected to start in the fourth quarter of 2027. To ensure optimal resource utilization, the project leveraged artificial intelligence to analyze field layouts and well paths. This technology has enabled faster decision-making and resulted in cost savings of NOK 130 million for the phase 3 project. The project also facilitates future value creation at Johan Sverdrup by adding extra well slots, and opportunities for connecting additional subsea templates. Contract awards The Johan Sverdrup field contributes significantly to value creation and ripple effects in society and has driven important industrial development in Norway. For the phase 3 project, TechnipFMC has been awarded the contract for engineering, procurement, construction, and installation (EPCI) for the subsea development, with a contract value of approximately NOK 5.3 billion. Additional contracts, including platform modifications and the drilling of eight wells, are planned to be awarded later in 2025. Increased recovery and production Safe and efficient operations at Johan Sverdrup are delivering results, with systematic efforts to maximize recovery. Phase 3 of the development will create additional value. The expected recovery rate from Johan Sverdrup is already world-class at 66 percent. The phase 3 project is an important step towards achieving our ambition of 75 percent. The average for the Norwegian continental shelf (NCS) is 47 percent. “In 2024, Johan Sverdrup set a production record with 260 million barrels of oil, the highest annual oil production ever from a Norwegian field," said Marianne Bjelland, vice president for Johan Sverdrup. "Every third barrel of oil from the Norwegian continental shelf now comes from the field. Phase 3 is an important contribution to maintaining high production from Johan Sverdrup in the years to come.” Equinor aims to maintain a high level of oil and gas production on the NCS towards 2035. Johan Sverdrup phase 3 is one of several projects receiving an investment decision this year that supports this ambition. The partnership has submitted a notification to the authorities in accordance with the existing plan for development and operation (PDO). The notification is subject to governmental approval.
oil-gas
Jul 01, 2025
Fugro Awarded $340 Million In Petrobras Contracts For Brazil Subsea Inspections
World Oil
Fugro Awarded $340 Million In Petrobras Contracts For Brazil Subsea InspectionsPetrobras has awarded Fugro four significant multi-year contracts for the inspection and monitoring of critical subsea infrastructure in Brazil. The contract wins strengthen Fugro’s decades-long partnership with Petrobras, building on a history of collaboration that leverages high-tech survey technologies, including underwater robotics, to support responsible energy development in the region, Fugro said in a news release.  The contracts, once signed, will commence in the fourth quarter of 2025 and span four years with potential one-year extensions. Each of the four day-rate contracts is assigned to a dedicated vessel—two operated by Fugro and two by partner companies—all of which will be equipped with Fugro’s remotely operated vehicles (ROVs) for comprehensive and precise inspection and monitoring of subsea assets. The combined value of the contracts over the next four years is approximately $340 million. Three out of the four, including the one awarded to Fugro Aquarius, are set to replace existing contracts expiring later this year, under improved terms and conditions. The fourth contract is new. Notably, these contracts will see an expansion of Fugro’s remote operations capabilities, including the remote piloting of ROVs. This innovative technique was first deployed successfully in Brazil from the Fugro Aquarius in 2023, in collaboration with Petrobras. The approach relocates people from the field to the office environment, enhancing efficiency, and enabling real-time data analysis for faster decision-making. “These new contracts from Petrobras demonstrate the deep value of our long-standing partnership in Brazil’s offshore energy sector," said Céline Gerson, Fugro’s Group Director in the Americas and President of Fugro USA. "Being selected for this crucial work, which will extend through the decade, fuels our continued drive for innovation and unwavering commitment to excellence as we work collaboratively to ensure a responsible and resilient energy future in the region.”
oil-gas
Jun 30, 2025
Equinor, Partners Greenlight $2 Billion Investment In North Sea Oil And Gas Project
World Oil
Equinor, Partners Greenlight $2 Billion Investment In North Sea Oil And Gas ProjectEquinor and its Fram partners will invest more than $2 billion (NOK 21 billion) in a new subsea development. The plan for development and operation was today submitted to the Minister of Energy, Terje Aasland.  "Fram Sør will contribute to security of energy supply from the Norwegian continental shelf (NCS) to Europe," said Geir Tungesvik, Equinor's executive vice president, Projects, Drilling & Procurement. "The development will put new oil and gas resources on stream by connecting new infrastructure to existing facilities that provide good and robust profitability. With the host platform Troll C being powered from shore, the production from Fram Sør will have very low emissions. The project will generate activity for the Norwegian supply industry, with an estimated employment effect of 4,500 full-time equivalents (FTEs) during the development period," The Fram Sør project is a combined development of several discoveries that will export oil and gas via Troll C. Recoverable volumes are estimated at 116 MMboe, 75% of which is oil and 25% is gas. Production is scheduled to start at the end of 2029. Equinor holds 45% interest in Fram, along with partners Vür Energi ASA (40% interest) and INPEX Idemitsu Norge AS (15% interest). "We have done a thorough job maturing the new resources discovered in the Fram and Troll area in recent years," said Kjetil Hove, Equinor's executive vice president for Exploration & Production Norway. "Fram Sør shows the importance of area solutions and close collaboration between partners and authorities in order to realize the resource values on a mature NCS. We have a large portfolio of projects that will phase in discoveries to our producing fields. Equinor expects to put more than 50 such projects on stream by 2035." In the autumn of 2019, Equinor and partners made a discovery of oil and gas in the Fram area of the North Sea. This discovery, called Echino South, supported the belief that more oil could be found, and contributed to nine discoveries made in the Troll-Fram area over a four-year period. In the spring of 2021, Equinor and partners made the Blasto discovery. Together with two smaller discoveries in previous years, Echino South and Blasto form the basis for Fram Sør. The field development is also technologically groundbreaking, Equinor stated. As the first on the NCS, Fram Sør will use all-electric Christmas trees that eliminate the need for hydraulic fluid supplied from the platform and improve monitoring capabilities of the subsea equipment. It is an efficient and reliable system for operating subsea Christmas trees, as well as reducing the risk of environmental impact.
oil-gas
Jun 26, 2025
Boem Proposes Oil, Gas Lease Sale For 80 Million Acres In Gulf
World Oil
Boem Proposes Oil, Gas Lease Sale For 80 Million Acres In Gulf(WO) — The Bureau of Ocean Energy Management (BOEM) has published a Proposed Notice of Sale (PNOS) for Lease Sale 262, the first of three offshore auctions in the Gulf of America under the 2024–29 Outer Continental Shelf Leasing Program. The sale would offer about 15,000 unleased blocks—roughly 80 million acres—located 3 to 231 miles offshore in water depths from 9 ft to more than 11,100 ft. “Offshore oil and gas play a vital role in our nation's energy portfolio, with the Gulf of America supplying 14 percent of domestically produced oil,” said Matt Giacona, BOEM’s principal deputy director. “This proposed lease sale demonstrates BOEM’s commitment to advancing American Energy Dominance and fostering the production of affordable, reliable energy resources for the nation.” BOEM estimates the broader Gulf outer continental shelf holds about 48 billion barrels of undiscovered oil and 141 Tcf of natural gas. Leases awarded through Sale 262 would be limited to exploration and development; areas withdrawn by a 2020 presidential order, portions near the Eastern Gap and the Flower Garden Banks National Marine Sanctuary remain off-limits. To encourage industry interest, the agency is proposing a 16 ⅔ percent royalty rate for both shallow- and deepwater tracts, the lowest deepwater rate since 2007. “To support robust industry participation, lower production costs, and unleash the full potential of the Gulf of America’s offshore energy reserves, BOEM is proposing a royalty rate of 16 ⅔ percent for both shallow and deepwater leases—the lowest rate for deepwater since 2007,” said Laura Robbins, acting regional director for the Gulf. The PNOS appears in the Federal Register on June 27, opening a 60-day comment period for Gulf-state governors and local governments. BOEM expects to issue a Final Notice of Sale at least 30 days before the scheduled bid reading, now targeted for Dec. 10, 2025, which will be livestreamed.
oil-gas
Jun 26, 2025
Carlyle, Diversified Energy To Invest $2 Billion In Producing U.S. Assets
World Oil
Carlyle, Diversified Energy To Invest $2 Billion In Producing U.S. AssetsDiversified Energy Company PLC, a leading publicly traded natural gas and liquids production company, and global investment firm Carlyle have today announced a strategic partnership to invest in up to $2 billion in existing proved developed producing (PDP) natural gas and oil assets across the U.S.  This exclusive partnership will combine Carlyle’s deep credit and structuring expertise, led by Carlyle’s asset-backed finance (ABF) team, with Diversified’s market-leading operating capabilities and differentiated business model of acquiring and optimizing portfolios of existing long-life oil and gas assets to generate reliable production and consistent cash flow. The partnership enhances Diversified’s access to capital in an attractive acquisition market. Under the terms of the agreement, Diversified will serve as the operator and servicer of the newly acquired assets. As investments occur, Carlyle intends to pursue opportunities to securitize these assets, seeking to unlock long-term, resilient financing for this critical segment of the nation’s energy infrastructure. “We are excited to partner with Carlyle, a leader in the asset-backed finance space. This arrangement significantly enhances our ability to pursue and scale strategic acquisitions in what we believe is a highly compelling environment for PDP asset consolidation,” said Rusty Hutson, Jr., CEO of Diversified Energy. “We continue to see a robust pipeline of opportunities and the growing need for operational scale and efficiency. With Carlyle’s support, we are well-positioned to capitalize on these trends while aiming to generate sustainable cash flow and value for our shareholders.” “Diversified is a leading operator of long-life energy assets and a pioneer in bringing PDP securitizations to institutional markets,” said Akhil Bansal, Head of Asset-Backed Finance at Carlyle. “We are excited to bring institutional capital to high-quality, cash-yielding energy assets that are core to U.S. domestic energy production and energy security. This partnership underscores Carlyle’s ability to originate differentiated investment opportunities through proprietary sourcing channels and seek access to stable, yield-oriented energy exposure.”
oil-gas
Jun 24, 2025
Canada'S Strathcona Resources Responds To Meg'S Rejection Of $4.1 Billion Offer
World Oil
Canada'S Strathcona Resources Responds To Meg'S Rejection Of $4.1 Billion Offer“Strathcona firmly believes its offer provides a true win-win for MEG and Strathcona shareholders, uniting two heavy oil ‘pure plays’ into a new Canadian oil champion,” the company said in a statement, adding that it also welcomed a move by MEG’s board to sound out alternative suitors. Earlier this month, MEG Energy’s board urged investors to reject what it called an “inadequate, opportunistic” bid from Strathcona, saying the offer was too low and harmful to MEG’s share price. MEG’s board authorized the oil-sands producer to begin a strategic review with the potential to find a better offer. “Strathcona looks forward to participating in the strategic alternatives process, which will also provide an opportunity for MEG’s board to learn more about Strathcona,” Waterous said, flagging what he said were alleged “inaccuracies” in MEG’s circular on the offer. Waterous is attempting to win over MEG’s shareholders after some of them said the deal he proposed last month undervalued the company. MEG’s board also spurned his earlier approaches, prompting him to take his bid directly to shareholders. Strathcona said it already owns more than 9% of MEG’s shares after buying them through open-market purchases this year. A takeover of MEG would be the biggest acquisition yet for Strathcona, which former investment banker Waterous built through a flurry of deals over the past decade. The deal would make Strathcona a major heavy crude company, adding MEG’s roughly 100,000 barrels of daily output from its Christina Lake asset to Strathcona’s projected 120,000 barrels a day of production. Strathcona has forecast C$175 million in cost savings opportunities from combining with MEG, including operating synergies, overhead reductions and interest savings.
oil-gas
Jun 20, 2025