News Digest, Energy, Oil and Gas, 20th Jan. 2022. OPEC daily basket price stood at $88.50 a barrel on Wed., 19 January 2022
US crude oil stocks,, reportedly rose 1.4 million barrels in the week ended Jan. 14, according to the American Petroleum Institute,
Golar LNG update on the formation of Cool Company Ltd. (“CoolCo”).
CoolCo will have an initial market capitalization of approximately $375 million and Golar will retain a shareholding of a minimum of $125 million. As part of the transaction CoolCo plans to raise around $250 million of external equity through a private placement of equity (“Private Placement”). Eastern Pacific Shipping (“EPS”) has pre-subscribed and guaranteed an allocation of a minimum of $150 million in the contemplated private placement, making EPS the largest shareholder of CoolCo. Proceeds from the private placement, together with the debt facilities described below, will be used to fund the acquisition of 8 TFDE LNG carriers from Golar LNG and for CoolCo’s working capital and general corporate purposes. CoolCo will immediately list on the Oslo OTC exchange and expects to list on Euronext Growth Oslo (“Listing”) during February 2022. CoolCo will also target an additional listing on an internationally recognized stock exchange during 2022. Read More
Climate change and the disasters that come from them have no boundaries. Every community faces the pain and heartache that those events bring. However, not every community has the resources to rebuild, or even relocate when a climate event happens in their backyard. That’s why the Biden-Harris administration is building equity and inclusion into our all-of-government approach to the climate crisis.
The Department of the Interior is playing a critical role in implementing the President’s ambitious climate change goals. We’re rooting our work in equity as we address the barriers to access to the outdoors and how we can close those gaps, create a clean energy economy, and address the legacy of environmental injustice. Read More
The US Departments of the Interior and Agriculture today announced a series of nation-to-nation consultations with federally recognized Tribes and Alaska Natives on the Federal Subsistence Management Program. The program, jointly implemented by the Secretary of the Interior and the Secretary of Agriculture, provides a preference for take of fish and wildlife resources for subsistence uses on federal public lands and waters in Alaska. The consultations will address how climate change has affected subsistence and how federal agencies can better cooperate with Alaska Natives to promote subsistence harvest opportunities and protect habitat. Topics to be discussed also include how the state management regime affects implementation of the federal priority for rural residents, and how the Federal Subsistence Board and the Federal Subsistence Program be changed to better accommodate subsistence needs. Read More
KBR (NYSE: KBR) announced today that along with Mura, it has secured a contract for its breakthrough plastics recycling technology, Hydro-PRTSM, from LG Chem, Korea.Under the terms of the contract, KBR will provide technology licensing and engineering to implement the innovative and scalable Hydro-PRTSM technology at LG Chem’s Dangjin plant. Hydro-PRTSM was developed by Mura and is licensed exclusively by KBR. Utilizing supercritical steam, this technology employs a unique patented process to convert a wide range of single-use and other plastics into commercial raw materials that are used to produce new plastics, delivering a truly circular economy. Read More
The U.S. Department of Energy (DOE) today released the third edition of “Solar Power in Your Community,” DOE’s guidebook to help local governments unlock environmental and economic benefits of increased solar deployment in their communities. This latest edition contains nearly 40 case studies from around the country that show field-tested approaches to reduce solar market barriers, highlights new technologies and strategies to maximize the benefits of solar, such as combining solar with energy storage to improve resilience, and emphasizes strategies for improving the equity of solar deployment at the local level. These efforts support the deployment of more solar energy to reach the Biden-Harris Administration’s goals of achieving 100% clean electricity by 2035 and a net-zero economy by 2050. Read More
Tata Motors, India’s leading vehicle manufacturer has announced a marginal price hike on its passenger vehicles. Effective January 19, 2022, an average increase of 0.9% will be implemented, depending on the variant and model. At the same time, the Company has also taken a reduction of upto Rs 10,000 on specific variants, in response to feedback from customers. While the company is absorbing a significant portion of the increased costs, the steep rise in overall input costs has compelled it to pass on some proportion through this minimal price hike. Read More
| Commodity Prices | Units | Price $ | change |
| Crude Oil (WTI) | USD/bbl | $86.38 | Down |
| Crude Oil (Brent) | USD/bbl | $87.61 | Down |
| Bonny Light | USD/bbl | $89.73 | Up |
| Natural Gas | USD/MMBtu | $4.00 | Down |
| OPEC basket 19/01/22 | USD/bbl | $88.50 | Up |
Gas prices have slumped despite seemingly favourable geopolitical trends such as increased tensions between Russia and Ukraine, delays in the Nord Stream 2 pipeline, and eastward flows on the key Yamal-Europe pipeline for the 30th consecutive day with no further exports to Europe planned from Gazprom in February. Nevertheless, UK natural gas prices are down nearly five percent, with futures trading for March and April reporting near six percent drops. Read More
Masdar, one of the world’s leading renewable energy companies, welcomes today TotalEnergies and its expertise in the energy sector, to a Masdar-led initiative focused on green hydrogen to produce sustainable aviation fuel (SAF). Masdar, Siemens Energy and TotalEnergies today signed a collaboration agreement on the sidelines of Abu Dhabi Sustainability Week (ADSW) 2022, to act as co-developers for a demonstrator plant project, which will be established at Masdar City, Abu Dhabi’s flagship sustainable urban development. Read More
Woodside CEO Meg O’Neill noted a broad range of highlights for the quarter which included strong revenue supported by increased product pricing, executing the binding share sale agreement with BHP for the proposed merger, taking final investment decisions on the Scarborough and Pluto Train 2 projects and progressing Woodside’s strategy for new energy investment.
Performance
• Delivered sales revenue of $2,852 million, up 86% from Q3 2021.
• Average realised price increased to $90 per barrel of oil equivalent, up 53% from Q3 2021.
• Delivered production of 22.6 MMboe, up 2% from Q3 2021.
• Delivered sales volume of 31.8 MMboe, up 22% from Q3 2021.
Highlights
• Signed a binding share sale agreement with BHP Group for the merger of BHP’s oil and gas portfolio with Woodside.
• Approved final investment decisions for the Scarborough and Pluto Train 2 projects.
• Entered into a sale and purchase agreement with Global Infrastructure Partners for the sale of a 49% non-operating participating interest in the Pluto Train 2 Joint Venture.
• Announced a $5 billion investment target for new energy products and lower-carbon services by 2030.
• Achieved start-up of Pyxis Hub and Julimar-Brunello Phase 2.
• Appointed Mr Graham Tiver as Chief Financial Officer and Executive Vice President. Read More
Woodside has undertaken a review as of 31 December 2021 of the carrying values of its assets in accordance with the Group’s accounting policies and the accounting standards. As a result, the financial statements for the full-year ended 31 December 2021 (Financial Statements) are expected to recognise a non-cash, post-tax impairment reversal related to oil and gas properties of US$582 million comprising:
• $319 million related to Pluto-Scarborough
• $263 million related to NWS Gas.1
The impairment reversal for Pluto-Scarborough is due to the additional value generated by Scarborough and Pluto Train 2, which have been combined with Pluto into a new Pluto-Scarborough cash generating unit for the purposes of impairment assessment, following the final investment decisions for Scarborough and Pluto Train 2 in November 2021.
The impairment reversal for NWS Gas is due to updated cost and production profiles including the incorporation of the impact of third-party processing agreements, and improved short-term pricing assumptions. Both impairment reversals represent the maximum reversal values allowable under relevant accounting standards. Impairment reversals are limited to historical impairment losses recognised, net of depreciation and amortisation that would have been incurred had no impairment taken place. Read More
A supportive oil market, robust non-oil momentum, strengthening balance sheets and easing tensions are driving a compelling GCC story in 2022, according to a report by MUFG Research. “The GCC authorities’ aim to realise strategies to structurally transform away from hydrocarbons will continue to gain traction,” said Ehsan Khoman, Head of Emerging Markets Research. Higher oil prices and production and momentum in non-oil activity, buoyed by rapid vaccination inoculations, will see GDP growth in the regional bloc rise to 6.1 percent in 2022, “not only the fastest pace of cyclical expansion since 2011, but also higher than emerging market peers.” Read More
OPEC officials and analysts say that an oil rally may continue in the next few months, and prices could top $100 a barrel as demand shrugs of the spread of the Omicron COVID-19 variant. Read More
| Region | Period | No. of Rigs | Change from Prior Count |
| U.S.A | 14th January 2022 | 601 | +13 |
| Canada | 14th January 2022 | 191 | +50 |
| International | December 2021 | 834 | +17 |
OilandGasPress Energy Newsbites and Analysis Roundup |Compiled by: OGP Staff, Segun Cole @oilandgaspress.
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