Energy News to 27 May 2022. OPEC daily basket price stood at $116.50/bl, 26 May 2022
Eni’s Board of Directors, chaired by Lucia Calvosa, in execution of the authorization granted by the Shareholders Meeting held on 11 May 2022 has approved measures to execute the buyback program for an outlay of minimum €1.1 billion, that can be increase for a maximum amount of €2.5 billion according to the Brent price scenario and up to a maximum of 357 million of shares (equal to 10% of the ordinary shares post cancellation) (the “Buyback Program”).
Eni will update its 2022 Buyback Program scenario assessment in July and/or October. For scenarios above $90/bbl further buybacks equivalent to 30% of the associated incremental Free Cash Flow will be made, without prejudice to the aforementioned limits. The potential increases will be promptly disclosed to the public in the manners and terms provided for by the laws and regulations in force.
The Buyback Program is intended to give the Company a flexible option to grant the shareholders additional remuneration beyond the distribution of dividends, with the aim to share the value of Eni’s strategic progress and the improved scenario with investors.
Purchases will be initiated by the first half of June 2022 and will end at the latest in April 2023.
The program will be executed through an authorized third-party agent, who will take decisions regarding purchases at its own discretion, also in relation to the timing of the transactions. Read More
Africa Oil Corp. announced that it has received a dividend from Prime Oil and Gas Cooperatief UA (“Prime”). The Company has a 50% shareholding in Prime. View PDF version.
Prime has distributed a $50.0 million dividend with a net payment to Africa Oil of $25.0 million related to its shareholding. This is the second Prime dividend distributed this year with Africa Oil having received an aggregate amount of $125.0 million. Since acquiring its 50% interest in Prime for a cash consideration of $519.5 million in January 2020, Africa Oil has received 12 dividends from Prime for a total amount of $525.0 million. Read More
Triumvirate of ministers to attend G7 Climate, Energy and Environment Ministerial hosted by Germany to push for accelerated action on climate and the clean energy transition UK Government ministers will push the G7’s leading economies to drive forward progress on climate change, biodiversity and the clean energy transition at this week’s climate and environment ministerial. Read More–>
Poland would be interested in cooperating with Portugal on potential LNG trans-shipping, says Prime Minister Mateusz Morawiecki, adding that gas could be sent to other countries to help them cut their dependence on Russia. Read More
New Terrorism Prevention Act in Nigeria
The scourge of piracy in the Gulf of Guinea (GoG) and along the West African coastline is well known. Until last week, pirates who kidnapped vessels and crew for ransom would likely have been charged with terrorism offences by the Nigerian authorities. A new law, which came into force on 12 May 2022, may change the Nigerian government’s approach.One of the key objectives of the new law is to provide effective measures to assist Nigeria in its fight against terrorism and the financing of terrorism. There has been a recent lull in the frequency of GoG pirate boardings and kidnaps. Nigerians and the international trading community alike hope that this let-up lasts long into the future. However, in the unfortunate event that ship crews are kidnapped in the future, owners and their insurers will need to carefully consider the implications of the new law in relation to any negotiations with pirates and any ransom payments, or risk violating Nigerian law, which has extra territorial application. In particular, the parties must consider specifically the identities of the pirates and their intentions (expressed or implied) in boarding the ship and kidnapping the crew. Read More
Glencore, a mining and commodities trading firm has agreed to pay over $1.1 billion for various infractions, including paying bribes to several African countries to get mouth-watering crude oil purchase contracts. Between approximately 2007 and 2018, a Department of Justice (DoJ) press release, said that Glencore and its subsidiaries caused approximately $79.6 million in payments to be made to intermediary companies. It stated that this was done in order to secure “improper advantages” to obtain and retain business with state-owned and state-controlled entities in the West African countries of Nigeria, Cameroon, Ivory Coast, and Equatorial Guinea. Read More
In response to an article published today in This Day newspaper, stating that the Federal Government of Nigeria has declined consent to the acquisition of Mobil Producing Nigeria Unlimited (“MPNU”), Seplat Energy confirms that it has received a letter from the Chief Executive, Nigerian Upstream Petroleum Regulatory Commission (“NUPRC”) on the process. The Company has also been notified by the shareholders of MPNU confirming that MPNU received a letter from NUPRC declining their consent.
Under the terms of the Sale and Purchase Agreement (“SPA”), announced on 25 February 2022, which remains valid and subsisting, the Company will further its engagement with all relevant stakeholders. Seplat Energy is confident that the process to obtain all approvals on the acquisition of MPNU’s entire share capital is being followed and will be achieved. This announcement is made pursuant to Rule 17.10 of the Rulebook of the Nigerian Exchange Limited, 2015 (Issuer’s Rule). Read More
Seplat Energy PLC, a leading Nigerian energy company dual listed on both the Nigerian and the London Stock Exchanges, announce that Mr. Basil Omiyi, CON, has been appointed as the Company’s new Independent Non-Executive Chairman, effective immediately. His appointment follows a thorough assessment of internal and external candidates and was approved after a unanimous vote by all Directors of Seplat Energy, in compliance with the Companies and Allied Matters Act in Nigeria (“CAMA”).
In addition, Dr. Charles Okeahalam succeeds Mr. Omiyi as the Senior Independent Non- Executive Director.
Mr. Omiyi has been a member of Seplat Energy’s Board of Directors since March 2013 and as Senior Independent Non-Executive Director from 1 February 2021. During this period, he sat on the Company’s Remuneration, Nominations & Governance, Energy Transition, and Risk Management & HSSE committees. More
From buildings, to transportation, to electricity generation and energy storage, Pacific Northwest National Laboratory has long been a leader in providing clean energy solutions. Now, as one of four national laboratories in the Department of Energy’s Net Zero Labs (NZL) Pilot Initiative, announced earlier today, the laboratory is aiming to be among the first federal facilities to achieve net-zero greenhouse gas emissions.
Reducing greenhouse gas emissions—including carbon dioxide—is a key step towards addressing climate change. As part of NZL, PNNL will demonstrate how new technologies, innovative approaches and partnering with industry and communities can lead to net-zero emissions and decarbonization of operations. Read More
Earth-friendly process may help make critical materials sourcing economically feasible in the U.S.
PNNL and Moselle have successfully competed for technology development funding, including two Cooperative Research and Development Awards and a 2021 DOE Advanced Manufacturing Office award, to advance the process for capturing strategically important elements from water sources.
The core nanoparticle consists of a form of iron oxide better known as magnetite. This core particle is used to anchor the adsorbent shell that selectively binds the compounds of interest. That’s the key to the patented technology. The nanoparticles can be introduced into brines from geothermal plants, produced water, mineral mining effluent, and seawater, where they latch onto free floating target compounds. When exposed to a magnet, the nanoparticle’s iron core behaves like iron filings do in the classic science experiment—they migrate toward the magnet, along with the critical material to which they are bound, and can be filtered from the brine. The technology is being adapted for the capture of lithium, a versatile lightweight metal perhaps best known for its roles in battery technology.Lithium, nickel, cobalt and rare earth elements are in high demand by makers of semiconductors and wind turbines, as well as batteries used in electric vehicles and in other green energy technologies. But currently, the global supply chain for these elements relies heavily on dated extraction processes that are energy intensive, consume a lot of water, and create toxic waste Read More
UK’s only local authority Net Zero network welcomes oil and gas windfall tax u-turn but urges long-term support to lower energy bills
Commentators are too quick to criticise u-turns, but leadership is knowing when to change your mind The windfall tax is welcome, but it’s a short term sticking plaster for the energy price crisis, long term support is needed Upgrading draughty homes and accelerating the transition away from expensive gas heating is the long term solution The cheapest and cleanest energy is the energy we don’t use
Responding to the news that the UK Government has u-turned on its refusal to impose a windfall tax on oil and gas firms, Polly Billington, Chief Executive of UK100, says: “Struggling families desperately need support as the energy price crisis continues to bite, especially with the news that prices will rise again in the autumn. And communities up and down the country overwhelmingly support a windfall tax on excessive fossil fuel profits. Commentators can be too quick to criticise u-turns, but we should welcome leaders who can make the right decision — no matter how they get there.”
UK100 is the UK’s only network of local authorities, representing almost 40 million people, committed to reaching Net Zero as soon as possible, but no later than 2045 — five years ahead of the national target. At the flagship UK100 local Net Zero conference last summer, local leaders and metro mayors from across the UK came together to call on the Government to implement a long term plan to support local authorities to decarbonise homes across the country. Polly adds:
“But, this one-off tax is a sticking plaster. Prices will rise again in the autumn, and, by all accounts, high gas prices will be with us for years, not months. To avoid throwing good money after bad, the Government needs to support people to lower their bills in the long term. That means doubling down on renewable energy ambitions and being open to changing its mind on onshore wind. It also means boosting support for a nationwide, locally-led programme to upgrade our draughty homes while accelerating the transition from expensive gas boilers to clean heating. Not only will this help bring down household energy bills, but it will also drive progress toward our Net Zero targets.”
“The cheapest and cleanest energy is the energy we don’t use.” Read More
| Oil and Gas Blends | Units | Oil Price $ | change |
| Crude Oil (WTI) | USD/bbl | $113.80 | Up |
| Crude Oil (Brent) | USD/bbl | $117.20 | Up |
| Bonny Light | USD/bbl | $121.00 | Up |
| Saharan Blend | USD/bbl | $120.84 | Up |
| Natural Gas | USD/MMBtu | $8.78 | Down |
| OPEC basket 26/05/22 | USD/bbl | $116.50 | Up |
Eni CEO Claudio Descalzi received the 2022 Distinguished Business Leadership Award from the Atlantic Council yesterday. This prestigious honour was awarded for the “extraordinary role” he has assumed in the energy sector at an international level, for the technological transformation of the company aimed at complete decarbonisation by 2050 and for his contribution to the new challenge of Italian and European energy security.
This is the first time that an Italian representative has been honoured in the Business Leadership category. On the same evening, Italian Prime Minister Mario Draghi received the Distinguished International Leadership Award. Introduced by Sultan Ahmed Al Jaber, United Arab Emirates Special Representative for Climate Change and Minister of Industry and Advanced Technology, and in the presence of top leaders from the US political, economic and financial community, Claudio Descalzi commented: “I am honoured to receive this award right after our Prime Minister and I want to share it with all the people at Eni who, together with me, are making a great effort in contributing to ensure energy security in Italy and Europe at this time of great crisis. Read More
ACWA Power (TADAWUL:2082), OQ, Oman’s leading integrated energy group, and Air Products (NYSE:APD) signed a joint development agreement (JDA) toward a multibillion-dollar investment in a world-scale green hydrogen-based ammonia production facility powered by renewable energy in Oman.
The JDA signing follows a memorandum of understanding signed in December 2021.
Envisioned for Oman’s Salalah Free Zone, the joint venture project would be based on proven, world-class technology and include: the innovative integration of renewable power from solar, wind and storage; production of hydrogen by electrolysis; production of nitrogen by air separation; and production of green ammonia.
It is anticipated that the green hydrogen-based ammonia production facility would be equally owned by the project partners. Read More
EIA analysis shows California drought will decrease hydropower, increase natural gas use and CO2 emissions
The extended drought in California could cut the state’s summer electricity generation from hydropower nearly in half compared with normal precipitation conditions, according to an analysis by the U.S. Energy Information Administration (EIA). EIA’s analysis indicates that hydropower would produce 8% of California’s electricity generation in a drought year, compared with 15% under normal precipitation conditions.
EIA expects that level of decrease in hydropower generation would lead to an 8% increase in California’s electricity generation from natural gas, a 6% increase in energy-related carbon dioxide (CO2) emissions in the state, and an average 5% increase in wholesale electricity prices throughout the West given the current system configuration. Read More
MINUTES of the 2022 ANNUAL GENERAL MEETING of the Members of BW Energy Limited (the “Company”) held at Washington Mall Phase 2, 4th Floor, Suite 400, 22 Church Street, HM 1189, Hamilton HM EX, Bermuda on 26 May 2022 at 9:00 a.m. Bermuda time. Read More
Chevron Corporation (NYSE: CVX) announced that the independent directors of the Chevron Board have selected Dr. Wanda M. Austin as lead independent director, effective May 25, 2022. Dr. Austin succeeds Dr. Ronald D. Sugar in that role, who will remain on the Chevron Board. Austin has served on the Chevron Board since December 2016. Read More
Baker Hughes Rig Count: U.S. +14 to 728 Canada unchanged at 88
| Region | Period | Rig Count | Change |
| U.S.A | 20 May 2022 | 728 | +14 |
| Canada | 20 May 2022 | 88 | — |
| International | April 2022 | 806 | — |
UK has unveiled a £15 billion emergency aid package to help millions of the most vulnerable households tackle the cost of living crisis.
The Chancellor’s latest round of government support — to be partly paid for by a £5bn windfall tax on oil and gas giants — will hand all households a £400 grant to help pay their soaring energy bills. The payment replaces an earlier plan for a one-off £200 rebate on people’s energy bills in October, which was supposed to be clawed back over five years.
In addition, Mr Sunak announced:
- Extra support for eight million of the country’s lowest income households, with those on means tested benefits set for a one off cost of living payment of £650.
- More money for pensioners who receive the winter fuel payment who will get an extra one off payment of £300 Read More
The Board of Directors of Hess Corporation (NYSE: HES) today declared a regular quarterly dividend of 37.5 cents per share payable on the Common Stock of the Corporation on June 30, 2022 to holders of record at the close of business on June 15, 2022. Read More
OilandGasPress Energy Newsbites and Analysis Roundup |Compiled by: OGP Staff, Segun Cole @oilandgaspress.
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