Energy News Digest to 10th Mar. 2022. OPEC daily basket price stood at $128.46/bl, Wed, 9th Mar. 2022
Fitch Ratings has downgraded Russia’s Long-Term Foreign Currency Issuer Default Rating (IDR) to ‘C’ from ‘B’.
Fitch typically does not assign Outlooks or apply modifiers for sovereigns with a rating of ‘CCC’ or below. ‘The ‘C’ rating reflects Fitch’s view that a sovereign default is imminent,’ the agency said in a statement, adding its new downgrade came because recent developments had ‘further undermined Russia’s willingness to service government debt.’
In its March STEO published this week, the EIA said it expects Brent Crude prices to average $117 a barrel in March, $116 for the second quarter of this year, and $102 per barrel in the second half of 2022. Forecasts that global consumption of petroleum and liquid fuels will average 100.6 million b/d for all of 2022, up 3.1 million b/d from 2021.
The Executive Board of the International Monetary Fund (IMF) approved a disbursement of US$1.4 billion (SDR 1,005.9 million) under the Rapid Financing Instrument (RFI) to help meet urgent financing needs and mitigate the economic impact of the war.
The Executive Board expressed its strong support for the Ukrainian people.
The war in Ukraine is resulting in tragic loss of life and human suffering. While the outlook is subject to extraordinary uncertainty, the economic consequences are already very serious, with refugee flows of over 2 million persons in just 13 days and large-scale destruction of key infrastructure in Ukraine. This disbursement under the RFI, equivalent to 50 percent of Ukraine’s quota in the IMF, will help meet urgent balance of payment needs arising from the impacts of the ongoing war and will provide critical support in the short term while playing a catalytic role for financing from other partners. Read More–>
TC Energy Corporation announced signing of option agreements to sell a 10 per cent equity interest in the Coastal GasLink Pipeline Limited Partnership to Indigenous communities across the project corridor. The opportunity to become business partners through equity ownership was made available to all 20 Nations holding existing agreements with Coastal GasLink. The Nations have established two entities that together currently represent 16 communities who have confirmed their support for the option agreements: CGL First Nations Limited Partnership and the FN CGL Pipeline Limited Partnership. The formal establishment of these agreements comes from interest expressed by Indigenous groups across the project corridor to become owners in Coastal GasLink alongside Alberta Investment Management Corporation, KKR, and TC Energy.
The equity option recognizes the important relationship that TC Energy and Coastal GasLink have with the Indigenous groups along the approved pipeline route and the desire to be true partners. The equity option is in addition to 20 agreements Coastal GasLink has with Indigenous groups along the route which provide opportunities for contracting and employment as well as other long-term benefits. The equity option is exercisable after commercial in-service of the pipeline, subject to customary regulatory approvals and consents, including the consent of LNG Canada. Read More
Blue Arc™ EV Solutions, a new go-to-market brand of The Shyft Group (NASDAQ: SHYF), makes its debut today alongside a trio of initial product offerings—an industry-first commercial grade purpose-built EV chassis; a fully reimagined from the ground up all-electric Class 3 delivery walk-in van; and a fully portable, remote-controlled charging station, the Power Cube™. “We created Blue Arc not just for companies looking to evolve their parcel delivery fleets to electric power, but for the people – for our customers and the drivers,” said Shyft CEO Daryl Adams. “Blue Arc is the electric mobility company that can deliver end-to-end holistic EV solutions and meet sustainability and performance goals with a full ecosystem of electric-powered solutions. We are ready to charge ahead and bring the EV promise to reality for future generations.” Adams announced the new Blue Arc brand at NTEA Work Truck Week in Indianapolis, along with the news that North Carolina-based Randy Marion Dealer Group will be the first dealer in the U.S. to offer Shyft’s new all electric Class 3 delivery vehicle. Read More
In Q4 2021, Pipestone achieved record average quarterly production totaling 28,623 boe/d (30% condensate, 44% total liquids), representing a 16% quarterly increase over Q3 2021, and a 61% increase over Q4 2020. Full year 2021 production for the Company totalled 24,584 boe/d (31% condensate, 45% total liquids), achieving previously announced guidance of 24,000 – 26,000 boe/d, representing a 58% year-over-year growth in average daily production volumes; As a result of its continued production growth combined with improving commodity prices during the quarter, the Company generated record revenue of $137.3 million, nearly tripling revenue from Q4 2020 of $45.9 million and increasing revenue from Q3 2021 by 37% or $37.1 million; More
The Russia and Ukraine war seriously impacted the global oil & gas industry as Kyiv urged for a full embargo for Russian oil & gas. The Ukrainian foreign minister has also taken to their social media and tweeted, “Buying them (Russian goods) will now mean paying for the murder of Ukrainian men, women, and children.” This led world to stand against Russia. The UN has also strongly condemned this act of Russia, while several countries, including the U.S., U.K., Germany, France, Italy, Spain, and many others, have put sanctions on Russia.
U.S. House of Representatives Speaker Nancy Pelosi announced on 7th March 2022 that they are looking for legislation to ban the import of Russian oil and that Congress this week intended to enact $10bn (£7.6bn) of aid for Ukraine in response to Russia’s military invasion.
The war resulted in a sharp increase in oil & gas prices. The increase in the price is record-breaking as the prices are approaching USD 130 a barrel. American Automobile Association stated that U.S. petrol prices at the pump soared by 11% over the past week to the highest level since July 2008. The cost of petrol and diesel in the U.K. has risen, and now averages 153p and 157p a liter respectively. Read More
Energy Capital & Power (ECP) announced the dates for the 2022 edition of Angola Oil & Gas (AOG); organized by ECP, and in partnership with Angola’s Ministry of Mineral Resources, Petroleum and Gas, AOG 2022 will be taking place from November 29 to December 01 in Luanda; representing the Ministry’s official energy event and the country’s premier international conference, AOG 2022 features high-level discussions about key investment opportunities across the entire energy value chain in Angola, marking the ideal platform for growth-oriented dialogue. Read More
| Oil and Gas Blends | Units | Oil Price $ | change |
| Crude Oil (WTI) | USD/bbl | $111.60 | Down |
| Crude Oil (Brent) | USD/bbl | $111.54 | Down |
| Bonny Light | USD/bbl | $123.10 | Down |
| Natural Gas | USD/MMBtu | $4.54 | Up |
| OPEC basket 09/03/22 | USD/bbl | $128.46 | Up |
ACWA Power, a leading Saudi developer, investor, and operator of power generation, water desalination and green hydrogen plants, and Water Global Access (a R&D company, developer of a world-leading water desalination technology by hydraulic injection) announced a strategic partnership to develop further WGA’s disruptive, green water desalination technology, at the sidelines of the Saudi Water Forum.
This partnership agreement represents a key element within ACWA Power’s ambitious technology innovation roadmap that aims to deliver exceptional value to future projects and to the Kingdom of Saudi Arabia as it will involve the integration of WGA’s Hydraulic Injection Desalination (HID) into ACWA Power projects. Read More
ConocoPhillips announced the pricing terms of the previously announced tender offer (the “Tender Offer”) by ConocoPhillips and its wholly-owned subsidiary, Concho Resources Inc. (“CXO” and, together with ConocoPhillips, the “Company”), to purchase the outstanding debt securities (collectively, the “Notes” and each a “Series” of Notes) identified in the Company’s Offer to Purchase dated February 22, 2022 (as amended, the “Offer to Purchase”). The Tender Offer was previously amended to increase the Maximum Aggregate Purchase Price (as defined in the Offer to Purchase) to an amount sufficient to permit the Company to accept for purchase all Notes that were validly tendered and not validly withdrawn on or before 5:00 p.m., New York City time, on March 7, 2022 (the “Early Tender Deadline”). The terms and conditions of the Tender Offer are described in the Offer to Purchase. Read More
ConocoPhillips announced that it has completed the sale of the subsidiary that indirectly owns its 54% interest in the Indonesia Corridor Block Production Sharing Contract (PSC) and a 35% shareholding interest in the Transasia Pipeline Company to MedcoEnergi for $1.355 billion, with an effective date of Jan. 1, 2021. After customary closing adjustments, net cash from the sale is approximately $0.8 billion, which accounts for $0.1 billion restricted cash transferred to MedcoEnergi at closing. Read More
Occidental (NYSE: OXY) announced the tender results of its offers to purchase for cash (each, an “Offer” and collectively, the “Offers”) its outstanding notes listed in the tables below (the “Notes,” and each, a “Series” of Notes) in two separate pools (each, a “Pool”). The Offers were made on the terms and subject to the conditions set forth in the Offer to Purchase dated February 28, 2022 (the “Offer to Purchase”). In connection therewith, Occidental further announced that it is increasing (a) the maximum aggregate purchase price of Pool 1 Notes (as defined below) it will accept for purchase, excluding accrued but unpaid interest (as amended herein, the “Pool 1 Maximum Purchase Price”), from the previously announced amount of $1,500,000,000 to $1,527,015,840 and (b) the maximum aggregate purchase price of Pool 2 Notes (as defined below) it will accept for purchase, excluding accrued but unpaid interest (as amended herein, the “Pool 2 Maximum Purchase Price”), from the previously announced amount of $1,000,000,000 to $1,289,817,270. Capitalized terms used in this release but not otherwise defined have the meaning given in the Offer to Purchase. Read More
Nel is ready to increase its electrolyser production capacity to meet the European Union’s raised ambitions for renewable hydrogen. “We are ready to add the electrolyser production capacity needed in Europe and abroad when required by the market”, says Nel’s CEO Jon André Løkke. “Our brand-new and fully automated electrolyser manufacturing facility at Herøya is already producing at tree shifts. We are reaching new production records every week and will start a site selection process for additional production capacity in Europe”, says Løkke. Nel’s electrolyser plant at Herøya can provide 500 MW of capacity to the market with the possibility to expand up to 2 GW.
On Tuesday this week, the European Commission announced its “REPowerEU” communication which outlines the EU’s plans to make Europe independent from Russian fossil fuels well before 2030. The communication also highlights a series of measures to respond to soaring energy prices in Europe. Read More–>
Lundin Energy AB (”Lundin Energy”) is pleased to note the publication of an Exemption Document, prepared by Aker BP ASA (”Aker BP”), in relation to the proposed combination (the ”Combination”) between Lundin Energy’s E&P business and Aker BP.
The Exemption Document includes among other things:
Relevant risk factors applicable to the Combination and the combined company
Business overview of Aker BP and Lundin Energy’s E&P business
Unaudited pro forma financial statements for the financial year 2021 which has been prepared as if the Combination had taken place on 1 January 2021
Completion of the Combination is conditional upon, among other things, the Combination being approved at the Annual General Meetings of Lundin Energy and Aker BP, respectively, and receipt of necessary governmental clearances. According to a preliminary timetable, completion of the Combination is planned to occur late in the second quarter 2022 Read More–>
UK delivers 3,600 anti-tank missiles to Ukraine as Chernobyl ‘cut off from grid’. Read More
The war and the sanctions imposed on Russia will have spillovers. First and foremost, for countries neighboring Ukraine and Russia. But, also through commodity price channels, through migration channels, and through confidence channels. There are far-reaching consequences.
It is very relevant for the IMF because Ukraine is our member. And we are there for the people of Ukraine in this terrible moment. What we do is threefold. First , immediate financial assistance for Ukraine. Read More
| Region | Period | Rig Count | Change from Prior |
| U.S.A | 4th March 2022 | 650 | — |
| Canada | 4th March 2022 | 217 | -7 |
| International | February 2022 | 813 | -28 |
The United Arab Emirates and Saudi Arabia have declined calls with President Biden as the latter seeks to drum up further support for sanctions against Russia, the Wall Street Journal has reported, citing unnamed officials from the U.S. and the Middle East. According to the sources, both Crown Prince Mohammed bin Salman of Saudi Arabia and Sheikh Mohammed bin Zayed declined requests for direct communication with President Biden in recent weeks, the report said. “There was some expectation of a phone call, but it didn’t happen,” a Washington official told the Wall Street Journal about Crown Prince Mohammed. “It was part of turning on the spigot [of Saudi oil].”
The U.S. has been looking to Saudi Arabia and its closest regional ally, the UAE, to boost oil production in order to bring down oil prices, but neither has been particularly forthcoming. By extension, OPEC has also demonstrated its reluctance to boost production by more than originally agreed. Read More
Solar energy storage systems work by storing excess energy from the solar panes, which help your home become energy independent from the power grid and save your electricity bills. There are many different types of solar storage batteries for home use available on the market today. To make a solar energy storage system work well, you need to be careful to choose the most suitable solar storage battery for your home.Battery’s capacity shows how much electrical power can be stored in a battery. This value is commonly expressed in kilowatt hours. The majority of batteries for residential use are separate modules that can be stacked together to expand the capacity of the solar energy storage systems.
The capacity of the solar energy storage system should be appropriate to meet residential consumption demand. In principle, the storage system should be large enough to supply a household with solar power all the night. A battery capacity of 4 to 8 kWh is usually sufficient for an average four-person home consuming around 4,500 kWh annually. If the storage system is too small, not enough energy can be stored to cover the energy needs. The purchase of additional power from the grid becomes necessary. If the storage system is too large on the other hand, unneeded power is permanently stored, reducing the battery’s service life and not saving you any cost. Read More
Infrastructure and Energy Alternatives, Inc., a leading infrastructure company with renewable energy and specialty civil expertise, today announced results for the fourth quarter and full-year 2021.FULL-YEAR 2021 RESULTS
(As compared to the Full-Year 2020)
Total Revenues of $2,078.4 million, +18.6% y/y
Net Loss of $(83.7) million, versus Net Income of $0.7 million
Net Loss includes Loss on Extinguishment of Debt of $101.0 million
Adjusted EBITDA of $135.1 million, +5.6% y/y
Total revenue increased by 39% on a year-over-year basis in the fourth quarter 2021, supported by growth across both the Renewable and Specialty Civil segments. Within Renewables, fourth quarter solar and wind-related project revenue increased by 96% and 29%, respectively. Specialty Civil segment revenue increased 38% on a year-over-year basis in the fourth quarter, driven primarily by increased environmental remediation activity. Read More
Europe faces a tough choice: Is it worth a recession to choke off oil and gas money to Russia while it fights a war in Ukraine? Europe gets around 40% of its natural gas and 25% of its oil from Russia, whereas the U.S. gets meager amounts of oil and no natural gas. An EU boycott would mean higher prices at the pump and on utility bills, and ultimately the threat of an energy crisis and recession while the economy is still recovering from the coronavirus pandemic. Read More
The principal continuing activities of Horizon Minerals Limited (ASX:HRZ) and its controlled entity during the period consisted of exploration and evaluation of gold projects across the portfolio with trial mining and toll processing on the Boorara Gold Project.
The company continued acquisition growth including the purchase of the Penny’s Find gold mine and the Cannon Gold Project.
Divestment of Janet Ivy royalty with Norton Goldfields and Lehman’s Gold joint venture with Northern Star Resources (previously Saracen Mineral Holdings). Further work on the consolidated Feasibility Study for the Boorara Gold Project and a strategic review of the Nimbus zinc-silver project including an offtake process. Read More
Imperium3 New York Inc (iM3NY) which is 60% owned by Australian listed company Magnis Energy Technologies Limited is set to begin production of its lithium-ion battery cells in June this year. Importantly, the batteries produced will not contain cobalt or nickel, two battery metals which have experienced extraordinary price increases in the last weeks due to significant geopolitical risks.
Nickel prices have risen from $20,000 per tonne to over $100,000 per tonne in the last month while Cobalt prices are now approaching $85,000 per tonne. Such price increases to both these battery metals will translate in to a price hike of over $1,000 per electric vehicle. As sanctions between the west and Russia intensify and the need to reduce dependency on China in the battery supply chain, the non-china supply chain built over the last 7 years could be the most significant piece in iM3NY’s production. Read More
OilandGasPress Energy Newsbites and Analysis Roundup |Compiled by: OGP Staff, Segun Cole @oilandgaspress.
Disclaimer: News articles reported on OilAndGasPress are a reflection of what is published in the media. OilAndGasPress is not in a position to verify the accuracy of daily news articles. The materials provided are for informational and educational purposes only and are not intended to provide tax, legal, or investment advice.
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