Energy News to 19 May 2022. OPEC daily basket price stood at $114.94/bl, 18 May 2022
EU is to unveil a raft of measures ranging from boosting renewables and LNG imports to lowering energy demand in its quest to cut dependence on Russian supplies. The 195 billion-euro ($205 billion) plan will reportedly centre on cutting red tape for wind and solar farms, paving the way for renewables to make up an increased target of 45% of its energy needs by 2030.
Bentley’s bespoke division – Mulliner – has continued to see exponential growth in 2022, continuing the trend seen last year. Requests for personalisation and bespoke content via Mulliner have risen by 200 per cent since 2020, to the highest level in the company’s history. On average, three Bentleys per day are now produced that include bespoke requests. Dating back to the early days at Le Mans, a new feature being introduced is 18K Gold Plated Organ Stops. They pay homage to the original Bentley Boys, whilst providing an iconic and timeless finish. The feature appeared recently in one of Mulliner’s Limited Edition cars and add to the interior of any specially curated Bentley. The Number 9 Edition by Mulliner was in honour of Sir Henry ‘Tim’ Birkin – one of the original ‘Bentley Boys’ of the 1920s and ‘30s. Birkin was a Bentley customer, investor and a racing driver, full of entrepreneurial spirit and ambition – and through the determined collaboration of man and machine, the 4½ litre ‘Blower’ was born.
The second new addition is an increased selection of open-pore veneer. Inspired by the natural effect of Stone veneers, the latest offering now includes Liquid Amber, Vavona and Tamo Ash in more sustainable open-pore finishes. All are treated with an ultra-thin matt lacquer solely for protection and gives the surface the natural texture of the wood, varying from the more traditional smooth gloss finished and using 90 per cent less lacquer. Selected from only the very best, most figured stock available, open-pore veneer is painted with just three ultra-thin layers of lacquer, together totalling only 0.1 mm in thickness. By comparison, Bentley’s High Gloss lacquer coating is 0.5 mm thick and has a glossy, smooth finish. Each layer is applied by hand and sanded between applications, ensuring the lacquer sticks to the natural grooves of the wood. The resulting finish is wax-like and perfectly highlights the authentic, natural colour and texture of the wood species. Read More
Iraq’s representative in OPEC, Muhammad Saadoun affirmed on Saturday, that OPEC agreed to increase Iraq’s exports to 4.5 million barrels, starting from the months of July, August and September. “Iraq’s share during this year increased by 50 thousand barrels per day,” noting that “the production ceiling will reach 4.5 million barrels per day in the month of June,” said Saadoun in a statement to Al-Iraqiya state channel, followed by the Iraqi News Agency (INA). Read More
A statement by the ministry, received by the Iraqi News Agency (INA), stated that “Oil Minister Ihsan Abdul-Jabbar Ismail received the French ambassador in Baghdad, Éric Chevalier,” noting that “the meeting was attended by the second deputy head of the National Oil Company, Laith Al-Shaher, and the deputy head of the economic department at the French embassy in Baghdad, Kévin Besançon”.
The minister stressed, according to the statement, that “The ministry is keen to develop the oil and gas industry and the energy sector in Iraq through joint cooperation with sober international companies,” affirming “the depth of relations between Iraq and France in the field of oil, gas, energy and other sectors.”
He explained that “The Ministry of Oil signed an agreement with the French company Total to implement projects for the development of the Artawi field and the establishment of the Artawi gas complex in Basra Governorate and the sea water project, as well as projects to produce solar electricity with a capacity of 1,000 megawatts.” Read More
ACWA Power Company (“ACWA Power “or “the Company”), a leading Saudi developer, investor, and operator of power generation, water desalination and green hydrogen plants, today announced its financial results for the first three months of 2022, recording strong growth both in operating profit before impairment losses and other expenses and net profit attributable to equity holders of the parent.
The growth was mostly driven by higher share of net results of equity accounted investees, primarily from Jazan’s start of operations and partially offset by mainly lower operating income on account of lower production in the CSP plants in Morocco because of extended outages. For the first three months of 2022, ACWA Power earned an operating income before impairment loss and other expenses of SAR 517 million, which was 19.5% higher than the same period in 2021. Three water and seven power projects that came into operation between February and December 2021 were the engine of this growth in the first three months of 2022 by generating additional contractual, operations and maintenance revenue streams. This was further increased by the collection of performance liquidated damages from the EPC contractor of one of the projects, with the Company’s operating profit adversely affected by extended outages in certain projects. Read More
NATO Secretary-General Jens Stoltenberg said Wednesday that the military alliance stands ready to seize a historic moment and move quickly on allowing Finland and Sweden to join its ranks, after the two countries submitted their membership requests. The official applications, handed over by Finland and Sweden’s ambassadors to NATO, set a security clock ticking. Russia, whose war on Ukraine spurred them to join the military organization, has warned that it wouldn’t welcome such a move, and could respond. Read More
Schlumberger recently held its first Supplier Innovation Program Summit (SIP) in Houston. The two-day Summit event brought together 50 of Schlumberger’s key suppliers with Schlumberger business leaders to discuss joint projects and innovative solutions that will drive improved performance for customers—and create mutual value for Schlumberger and its suppliers. “To succeed in today’s world, we need to work more closely together, leveraging each other’s strengths and growing together” said Gwen Boyault, vice president, Planning & Supply Chain, Schlumberger. “That’s why we launched the SIP to facilitate a unique face-to-face opportunity where ideas and experiences can be shared and proliferated.” Read More
GE’s Grid Solutions business [NYSE:GE] has successfully completed the three-month trial of its Static Var Compensator (SVC) upgrade to the existing SVCs at two substations belonging to Statnett, Norway’s electrical transmission system operator (TSO). The Flexible AC Transmission System (FACTS) upgrade improves the operational efficiency and stability of Statnett’s alternating current (AC) power system in order to accommodate more renewable energy. The upgrade marks the largest SVC revamp project Statnett has ever undertaken — and is also one of the largest in the industry.
During the three-month performance trial period, which ended in October 2021, not a single interruption occurred at the Rød and Verdal substations. Ongoing operation of the two SVCs continues, including the use of advanced features such as Power Oscillation Damping, due to the implementation of GE’s “SmoothSine” control software, which provides better consistency and efficiency of the software development, testing and implementation. This repeatable, standardized, robust software and architecture offers the ability for GE to “configure” all control functions in a very simplified manner for every specific project implementation. More
Worley has announced that it has been awarded a three-year engineering and procurement (EP) services contract by Shell to support five of its assets in the Gulf of Mexico, USA. This contract will support Shell’s transition to a digitised and more efficient project delivery model for the maintenance of offshore assets as part of Shell’s work to continue to lower the carbon intensity of its GOM portfolio, already among the lowest in the world. This contract also allows for the future support of the Shell Whale deep-water development in the Gulf of Mexico. Under this new contract, Worley will provide professional services in digital enablement, engineering, procurement and support fabrication and construction. The services will be executed by Worley’s offices in Metairie, Louisiana; Houston, Texas and with our engineering teams in India. Read More
SDX Energy, the MENA-focused energy company, announced the spudding of the MSD-24 infill development well on the Meseda field. This well is the fourth in a fully funded 13-well development drilling campaign on the Meseda and Rabul oil fields in the West Gharib concession in the Egyptian Eastern Desert. The campaign is aimed at growing production to c.3,500 – 4,000bbl/d by early 2023.
The MSD-24 infill development well on the Meseda Field (SDX: 50% working interest) spud on 15 May 2022 and is targeting the Asl Formation reservoir at approx.imately 3,300ft TVDSS. It is estimated that the well will take around six weeks to drill, complete and tie-in to the existing infrastructure. MSD-24, with an expected cost to drill and tie in of US$0.9-US$1.0 million (gross), is anticipated to come on-line and produce at around 300bbl/d (gross), which would immediately contribute to Group cashflow and result in a payback period of five to six months at current oil prices. The Company expects to update the market on its result in mid-June. The first two wells in the campaign, MSD-21 and MSD-25, have been successfully tied-in and are contributing to production. Operations at the MSD-20 well have been slower than expected due to the performance of the rig that was being used on this well. This rig has now been permanently replaced and the Company is confident of improved and accelerated performance in the campaign going forward. It is hoped that results from MSD-20 will be available in the next three to four weeks. Read More
VAALCO Energy has announced entry into a new credit agreement, effective May 16, 2022, for a new five-year Reserve Based Lending (‘RBL’) facility with Glencore Energy UK that includes an initial commitment of $50 million and is expandable up to $100 million. Read More
| Oil and Gas Blends | Units | Oil Price $ | change |
| Crude Oil (WTI) | USD/bbl | $110.10 | Down |
| Crude Oil (Brent) | USD/bbl | $110.40 | Down |
| Bonny Light | USD/bbl | $113.60 | Down |
| Saharan Blend | USD/bbl | $113.17 | Down |
| Natural Gas | USD/MMBtu | $8.20 | Up |
| OPEC basket 17/05/22 | USD/bbl | $114.94 | Down |
Aker Horizons ASA (OSE: “AKH”), through its wholly owned subsidiary Aker Narvik AS (“Aker Narvik”), will collaborate with UiT The Arctic University of Norway’s (“UiT”) Faculty of Engineering Science and Technology (“IVT faculty”) in Narvik to develop the skills and competencies required for the green industrial jobs of the future.
The collaboration is part of Aker Horizons’ development of a green industrial hub in Narvik in Northern Norway, where UiT offers several engineering programs at the IVT faculty. Aker Horizons and its portfolio companies, together with local industry, are utilizing their capabilities across hydrogen and renewable energy to develop green value chains and sustainable export industries in the Narvik region. UiT’s mission is to deliver high-quality education and research that contributes to development, value creation and growth in the High North. The IVT faculty educates engineers, civil engineers and PhD candidates in subject areas that are of high relevance to the green industrial shift. Read More
Crude oil is once again challenging the upper end of the trading range that has prevailed for the past six weeks. Relative calm market action during this time has, however, been hiding a market in continued turmoil where major opposing forces have managed to keep it rangebound. However, Russian sanctions and the departure of international service companies is hurting Russia’s ability to maintain production. As well as easing lockdowns in China, both factors point to a renewed risk of higher prices.
Crude oil is once again challenging the upper end of the trading range that has prevailed for the past six weeks. Relative calm market action during this time has, however, been hiding a market in continued turmoil where major opposing forces have managed to keep it rangebound. During this time, the U.S. government has injected millions of barrels in a failed attempt to suppress the price, while Chinese demand has suffered due to its zero-Covid Strategy.
The fact the market has not fallen below $100 highlights the underlying strength – with a tight supply of key fuels, self-sanctioning of Russian crude oil, OPEC struggling to increase production and unrest in Libya all supporting the market. With China potentially starting to ease lockdowns and with unrest in Libya still growing, the short-term price risk remains firmly skewed to higher prices. Read More
Electrify America announced an agreement with Genesis Motor America to offer three years of 30-minute complimentary charging sessions from the date of vehicle purchase for the fully electric GV60 to be released by Genesis. Owners of model year 2023 GV60 SUVs will have access to ultra-fast charging on Electrify America’s coast-to-coast charging network. Additionally, Genesis GV60 owners can seamlessly locate and access charging stations while on the road via the Electrify America mobile app. “We are continuing to transform the ultra-fast charging experience for EV drivers through our collaborations with leading automakers” said Giovanni Palazzo, president and chief executive officer of Electrify America. “By offering three years of complimentary 30-minute charging sessions to new Genesis EV drivers, together we’re helping create an electric transportation future that benefits drivers and communities across the U.S.” Charging benefits will be accessed through the user-friendly Electrify America mobile app allowing customers to locate a charger, initiate a charge and track a charging session. With charging speeds from 150kW to 350kW – the fastest charging speeds available today – Electrify America’s ultra-fast network will enable owners of the Genesis GV60 SUV to charge with confidence. Read More
A loyal customer base is good for business. But how do you ensure customer loyalty and how can you both retain and grow your customer base? According to numerous studies and insights, one of the most valuable investments your company can make in terms of both retaining and gaining customers is to have an effective Customer Relationship Management solution and strategy in place to ensure you are delivering an exceptional customer experience. A loyal customer is defined as someone who is likely to do repeat business with your company. But today’s customers are spoilt for choice when it comes to where they spend their money and just one bad experience can send them to your competitor. Read More
| Region | Period | Rig Count | Change from Prior |
| U.S.A | 13 May 2022 | 714 | +9 |
| Canada | 13 May 2022 | 88 | -3 |
| International | April 2022 | 806 | -9 |
The African Export-Import Bank (Afreximbank) and the African Petroleum Producers Organization (APPO), have signed an agreement for the joint establishment of an African Energy Bank at the 8th African Petroleum Congress and Exhibition (CAPE VIII) in Luanda, Angola. All parties involved in the signing – Rene Awambeng, Director and Global Head Client Relations, Afreximbank, and Dr Omar Farouk, Secretary General of APPO, in the presence of H.E. João Manuel Gonҫalves Lourenҫo, President of the Republic of Angola, and APPO Ministers – are concerned about challenges faced by Africa’s oil and gas industry and the continent’s economic development, and all parties acknowledge the impact of climate change on the continent and the need for a just transition in line with the United Nations Sustainable Development Goals and the African Union Agenda 2063. In line with the agreement, the two institutions have resolved to work together to find an African-led solution to combat the threat presented to the African oil and gas industry, brought on by the coordinated withdrawal of international trade and project financing, and have committed to taking necessary steps to find a solution to this challenge. Read More
U.S. gasoline and diesel prices are soaring to record highs nearly every day these days, as crude oil prices hold above $110 a barrel, the Russian invasion of Ukraine upends global crude and refined product trade flows, and refinery capacity globally is now lower than before the pandemic after some refineries—including in the United States—closed permanently after COVID crippled fuel demand in early 2020. There isn’t a quick fix for all-time high fuel prices in America— or elsewhere — analysts say. The quickest fix is actually not one American consumers would want — a recession that would lead to job losses.
Despite the Biden Administration’s months-long efforts to lower gasoline prices — including massive releases of crude from the Strategic Petroleum Reserve (SPR) and blaming oil companies for price gouging — U.S. refineries cannot catch up with demand. Read More
Washington will start to relax restrictions placed on U.S.-based oil company Chevron with regards to its crude business in sanctioned Venezuela. Chevron will soon be able to negotiate directly with the Venezuelan government and its state-run oil company, PDVSA, with the final details of the new arrangement expected to be complete as early as today. The move is thought to support the talks between Venezuela’s socialist government led by Nicolas Maduro and the Western-backed opposition government led by Juan Guaido, the Washington Post reported on Tuesday afternoon. Read More
Ameriflight and Jetstream Aviation Capital have partnered on the lease and delivery of 15 Saab 340B(F) cargo aircraft for the nation’s largest Part 135 Cargo airline. The addition represents another step forward in a multifaceted corporate strategy shift for Ameriflight.
The first aircraft are intended to join the Ameriflight operation in the fourth quarter of this year. This latest fleet type will be used to support unprecedented demand for the company’s services, including Ameriflight’s expedited supply chain services, dedicated operations, and regional feeder service for the world’s largest overnight express carriers.
After careful analysis amongst many platforms and the exploration of multiple aircraft, the company landed on the Saab 340B as an excellent fit for the operation, noting the aircraft’s exceptional safety record and compelling operating economics. Read More
MOL Group delivered Clean CCS EBITDA of USD 833mn in Q1 2022, down by 6% compared to the previous quarter
Upstream Q1 2022 Clean EBITDA more than doubled year-on-year and jumped to USD 504mn driven by rising oil prices coupling with the impact of an elevated gas price environment Downstream CCS EBITDA remained flat at USD 254mn in Q1 2022 year-on-year, overall macro volatility and the wholesale price regulation in Hungary influenced the results Consumer Services reached an EBITDA of USD 64mn in Q1 2022, decreasing by 44% year-on-year, as fuel price margin regulation in Hungary, Croatia and other CEE countries dented EBITDA generation Read More
Building a UK-wide delivery network for hydrogen takes a step closer to reality with the SGN trial at Grangemouth in partnership with INEOS.
The trial which is funded by the Energy Regulator and gas distribution companies, will use hydrogen supplied by INEOS in a 29km section of decommissioned pipeline between the Grangemouth site and Granton. SGN Director of Energy Futures Gus Mcintosh said: “Our Local Transmission System is part of the national critical infrastructure that reaches millions of homes and businesses across the UK. So, repurposing it for hydrogen could support a hydrogen system transformation that is least cost and least disruptive to customers.” Andrew Gardner, Chairman INEOS Grangemouth, said, “We are delighted to be partnering with SGN in a trial that will help determine how the UK’s transmission networks can be repurposed for hydrogen gas. We believe that Grangemouth is the ideal location in Scotland to create a hub for hydrogen production, use and export.” Read More
Nordic Aviation Capital (NAC) will be a launch lessor of Embraer’s E-Jet P2F – Passenger-to-Freighter – program announced in March 2022. NAC, the world’s largest regional aircraft lessor, will convert up to 10 of its fleet of E190s and E195s to freighter aircraft. The E190F and E195F are perfectly sized for new revenue-generating opportunities.The E-Jet Freighters will have over 50% more volumetric capacity, three times the range of large cargo turboprops, and up to 30% lower operating costs than narrowbodies. The conversions will be completed at Embraer’s facilities in Brazil. NAC’s first P2F E-Jet is scheduled for delivery in 2024. Read More
Airbus has selected MAGicALL to supply the motors of the electric vertical take-off and landing (eVTOL) aircraft CityAirbus NextGen. Airbus’ eVTOL prototype will be equipped with a tailored version of the MAGiDRIVE, the newest generation of electric motors manufactured by MAGicALL.
The detailed customisation of CityAirbus NextGen’s electric propulsion system will enable the prototype to benefit from features that will match its unique design, making for increased performance and reliability. The lightweight brushless motors that will be integrated into CityAirbus NextGen are a product of innovative design and manufacturing: they incorporate the latest generation of MAGicALL’s magnetics and power electronics technology. Joerg P. Mueller, Airbus’ Head of Urban Air Mobility (UAM), said: “We are proud to benefit from the experience of MAGicALL to develop the electric propulsion system of CityAirbus NextGen. The electric motors are a major component of our prototype: the high torque and low weight of the MAGiDRIVE as well as its robust design will be highly beneficial for the overall efficiency of the aircraft.” The electric motors will also contribute to the seamless architecture of Airbus’ eVTOL prototype, thanks to a fully integrated solution comprising both the motor itself and its control system, as part of a fully enclosed, air-cooled propulsion unit. Read More
ITA Airways, Italy’s new national carrier, has taken delivery of its first A350, becoming the 40th operator of the type. The aircraft, which is on lease from ALAFCO, landed for the first time in Italy at Rome Fiumicino Leonardo da Vinci International Airport on Wednesday evening. ITA Airways’ A350 cabin is configured in a two-class layout, with 334 seats comprising 33 full lie-flat bed Business and 301 Economy seats.
ITA Airways’ A350 will start operations early June 2022 to serve the new intercontinental routes that the company will open in the summer season from Rome Fiumicino to Los Angeles, Buenos Aires and Sao Paulo. The Airbus A350’s clean-sheet design features state-of-the-art aerodynamics, fuselage and wings made of advanced materials, plus the most fuel-efficient Rolls-Royce Trent XWB engines. Together, these latest technologies translate into unrivalled levels of operational efficiency and sustainability for ITA Airways, with a 25% reduction in fuel-burn and CO2 emissions compared to previous generation aircraft. Read More
Thales strengthens its partnership with Dassault Aviation through maintenance agreement for electrical systems on Falcon 900 and Falcon 2000 Fleets. The successful partnership began with the Falcon family of Business Jets back in the seventies starting with the Falcon 50 followed by the Falcon 200, Falcon 900 and Falcon 2000, and most recently the Falcon 6X. Dassault Aviation and Thales share the same commitment to excellence in design innovation and for reliable and affordable electrical generation and conversion products. More than 2100 Falcon aircraft operate worldwide cumulating over 21,000,000 flight hours in 2021.
Both companies achieved a new stage in their relationship through the signature of a partnership agreement on April 1st, 2022. Through this agreement Thales and Dassault Aviation will bring to Falcon operators unprecedented value for Premium Services along with significant reductions in Direct Maintenance Cost (DMC) and a robust incentive campaign for Starter Generators P/N 8060-160 upgrade to a new P/N 8060-170. This upgrade offer on the Thales Starter Generator improves DMC while providing annual savings for operators thanks to design enhancements that help reduce maintenance operations including brush wear inspections and removals. Read More
OilandGasPress Energy Newsbites and Analysis Roundup |Compiled by: OGP Staff, Segun Cole @oilandgaspress.
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