Latest Energy / Automotive News 03 April 2023: OPEC daily basket price at US$78.12/bl
London, 03 April, 2023, (Oilandgaspress): Oil prices rose about 5 percent on Monday after Saudi Arabia and other major producers announced a surprise cut in crude production. Combined with cutbacks announced on Sunday by several other OPEC producers, will bring a reduction of over 1 million barrels a day, or about 1 percent of global oil supplies, beginning next month.Saudi Arabia, as OPEC’s largest producer, announced the biggest cut at 500,000 barrels a day. Iraq said that it would reduce production by 211,000 barrels each day and the UAE by 144,000, Kuwait by 128,000, Kazakhstan by 78,000, Algeria by 48,000 and Oman by 40,000 barrels a day.
U.S. Rig Count is down 3 from last week to 755 with oil rigs down 1 to 592, gas rigs down 2 to 160 and miscellaneous rigs unchanged at 3. Canada Rig Count is down 26 from last week to 139, with oil rigs down 28 to 58, gas rigs up 2 to 81.
KBR (NYSE: KBR) announced today that its Canadian entity, KBR Industrial Canada Co., has received a Letter of Intent (LOI) from Equinor Canada for the front-end engineering design (FEED) of the topside facilities of the new Bay Du Nord floating production, storage, and offloading facility (FPSO) to be located offshore Newfoundland, Canada.
The agreement also includes an option for continuation of detailed design and procurement management services through to final completion of the FPSO. The FEED scope comes on the back of the pre-FEED engineering carried out by KBR in 2022 and will further mature the engineering and execution planning, working towards a final investment decision with first production expected to be in the late 2020s.
During the FEED engineering, KBR will continue to help Equinor develop one of the lowest carbon emitting FPSO’s in the world, using an onboard combined cycle power system and the latest technology to minimize the number of crew onboard and maximize digital solutions. All these elements will produce energy safely and securely while minimizing carbon emissions.
KBR will execute the work scope jointly with Canadian sub-contractor Hatch Ltd., an employee-owned multidisciplinary engineering, project management, and professional services firm with a local office in St. John’s, Canada, and will provide Equinor with an integrated team across Canada and London.
The Bay du Nord FPSO is a deep-water facility utilizing industry leading technology and digital solutions to ensure safe and reliable production. This award builds upon KBR’s unrivalled knowledge and expertise in this arena. “We are excited to be a part of this significant project with Equinor,” said Jay Ibrahim, president of KBR’s Sustainable Technology Solutions business. “This win is indicative of KBR’s strategic commitment to work with clients not only to secure energy supply for the world but to do it in a safe, responsible, and sustainable way. KBR adds maximum value to clients such as Equinor, by drawing on our extensive global engineering expertise and applying the latest technology and processes to deliver extraordinary outcomes.” Read More
BW Energy has completed the drilling and completion operations on DHIBM-3H, the first production well of the Hibiscus / Ruche Phase 1 development campaign in the Dussafu licence offshore Gabon. Responsibility for the DHIBM-3H well has been handed over to the production team which will finalise preparations for production start-up. First oil from the well is expected in early April. Commissioning and start-up of the new gas lift compressor will follow the first oil activities on the FPSO.
The DHIBM-3H well has been drilled from the BW MaBoMo production facility to a depth of 3,883 metres into Gamba sandstone reservoir in the Hibiscus field. Drilling operations began at the start of the year with batch setting of conductors and surface casing on three Hibiscus wells. In addition, a further three conductors have been batch set on slots planned for Ruche / Hibiscus fields. The drilling campaign followed the successful installation of the production facility, risers, and pipeline. DHIBM-3H drilling results (drain length and reservoir properties) are in line with expectations. The oil produced at Hibiscus / Ruche will be processed on the BW Adolo FPSO together with the established Tortue production before offloading to oil tankers. Read More
Siam Cement Group (SCG), Toyota Motor Corporation (Toyota), and Commercial Japan Partnership Technologies Corporation (CJPT) have signed a Memorandum of Understanding (MOU) to collaborate towards achieving carbon neutrality in Thailand.
SCG and Toyota jointly established Siam Toyota Manufacturing Co., Ltd., an engine production company, in 1987. SCG also made a capital investment in Toyota Motor Thailand, Co., Ltd., Toyota’s local entity in Thailand, in the following year. Since then, SCG and Toyota have long been deepening the strong trusting relationship between both, while growing the two companies’ businesses in line with the development of Thai society and economy.
SCG and Toyota, both of which have been supported and raised by Thailand, have been exploring collaboration with CJPT to contribute to the country through carbon neutrality have been aiming for conducting social implementation and achieving results by the end of this year, considering with CJPT how they can contribute to the happiness of the 67 million Thai citizens under the concept of “doing what can be done now, together with partners who share the same view” towards carbon neutrality in Thailand. After considering the use of solar and hydroelectric power generation and conducting Carbon Neutrality Mobility Event in Thailand, the three companies reached an agreement to deepen and expand the existing collaboration between SCG and Toyota, and to promote initiatives for carbon neutrality suited to Thailand in the three areas of energy, data and mobility, taking advantage of the country’s resources. Read More
Toyota Motor Corporation (TMC) will hold a press briefing regarding our new organization policy in Tokyo on April 7, 2023 from 13:30 JST.
The press briefing will be live streamed (with English interpretation) on this webpage. Video from the presentation will be available on-demand after the live stream. Read More
Toyota transfers its Saint Petersburg plant to NAMI
Following the closure of its St Petersburg manufacturing operations in September 2022, Toyota confirms that it has concluded the transfer of its vehicle production plant to NAMI* effective from 31/03/2023. The agreement includes the full transfer of ownership of the plant buildings and land.
*NAMI is a Russian Federal State Unitary Enterprise known as “Central Scientific Research Automobile and Automotive Engines Institute” Read More
Africa Oil Corp. reports the following share capital and voting rights update in accordance with the Swedish Financial Instruments Trading Act.
As a result of the cancellation of shares repurchased by Africa Oil under the Company’s previously announced share repurchase program, the exercise of stock options, and the settlement of share units issued under the Company’s Long-Term Incentive Plan, Africa Oil now has 462,217,871 common shares issued and outstanding with voting rights as at March 31, 2023. The Company has revised the date for its annual general meeting of shareholders, and the meeting will be held on May 25, 2023. Read More
Vestas has received an order for two wind projects totalling 370 MW to repower the Pleasant Valley and Border Winds projects owned by Xcel Energy in the USA.
The order for the 213 MW Pleasant Valley project in Minnesota consists of 97 V110-2.0 MW wind turbines delivered in 2.2 MW operating mode, while the 156 MW Border Winds project, located in North Dakota, consists of 71 V110-2.0 MW wind turbines delivered in 2.2 MW operating, which will update the current V100-2.0 MW technology at both sites.
“Vestas and Xcel Energy have a strong history of bringing wind energy to local communities across the US and we look forward to continuing this partnership by extending the longevity and increasing the energy projection of current wind projects like Pleasant Valley in Minnesota and Border Winds in North Dakota,” said Laura Beane, President of Vestas North America. “Upgrading the site’s current technology will not only extend the lifespan of the project and bring clean energy to thousands of households, it will also provide needed economic opportunities to these communities.”
“As a national leader in wind energy, we’re pleased to work with Vestas on repowering two Upper Midwest wind farms which have long provided clean, affordable energy to our customers as well as economic benefits to surrounding communities. Advancing the technology at Pleasant Valley in Minnesota and Border Winds in North Dakota is important to our plan for achieving 85% carbon-free energy by 2030 in the region while keeping energy costs as low as possible,” said Chris Clark, President, Xcel Energy Minnesota, North Dakota and South Dakota. Both projects include supply, delivery, and commissioning of the turbines, and Vestas will continue to service the turbines and provide an energy-based availability guarantee, designed to ensure optimised performance of the asset. Turbine delivery for both projects will begin in the second quarter of 2025 with commissioning scheduled for completion in the fourth quarter of 2025. Read More
U.S. Environmental Protection Agency (EPA) is issuing a decision that grants two requests for waivers of preemption regarding four California Air Resource Board (CARB) regulations related to California’s heavy-duty vehicle and engine emission standards. Under the Clean Air Act, California is afforded broad discretion to adopt emissions requirements to meet their significant air quality challenges, but they must seek waivers from EPA for new motor vehicle emission standards. In this instance, CARB requested two waivers for regulations relating to heavy duty vehicles and engines. After reviewing the technical information provided by CARB, reviewing comments submitted by the public, and applying the limited authority for review under section 209 of the Clean Air Act, EPA determined it appropriate to grant the waiver and authorization requests.
“Under the Clean Air Act, California has longstanding authority to address pollution from cars and trucks. Today’s announcement allows the state to take additional steps in reducing their transportation emissions through these new regulatory actions,” said EPA Administrator Michael S. Regan.
These waivers of preemption address the following California programs:
• The 2018 Heavy-duty 2018 Warranty Amendments, which extend the emissions warranty periods for 2022 and subsequent model year on-road heavy-duty diesel engines and for 2022 and subsequent model year diesel vehicles with a gross vehicle weight rating exceeding 14,000 pounds powered by such engines.
• The Advanced Clean Trucks (ACT) Regulation, which requires that manufacturers produce and sell increasing quantities of medium- and heavy-duty zero-emission vehicles (ZEVs) and near zero emission vehicles (NZEVs) in California. This waiver request also includes two additional regulations: Read More
Vestas and Vibrant Energy have signed a deal for two wind projects in India. As part of the order, Vestas will supply a total of 36 V155-3.6 MW turbines.
This is Vestas’ second order from Vibrant in India in less than a year, following a 54 MW order for a project in Maharashtra signed in 2022. With this, Vestas continues to solidify its position as a reliable and trusted partner in sustainable energy solutions in India.
“Vestas has been our key partner in delivering our wind projects, and we are glad to announce the second order for V155-3.6 MW turbines. With this order of 36 turbines totaling 130 MW, we can strengthen our product offering for wind-solar hybrid power projects for our corporate customers. We look forward to expanding this partnership and delivering our shared vision of a sustainable-energy driven future”, said Srini Viswanathan, CEO – Vibrant Energy. “Vibrant Energy is one of India’s fastest growing renewable energy companies. We have worked closely with them over the last one year over the execution of their current project in Maharashtra and I am confident that this second order will only be another steppingstone to a long and mutually fruitful partnership between the two companies. I would like to thank them for once again trusting in Vestas’ ability to deliver reliable and efficient solutions”, says Purvin Patel, CEO & President, Vestas Asia Pacific Deliveries of the turbines are expected to begin in the fourth quarter of 2023, while commissioning of all turbines is expected to be completed by second quarter of 2024. Read More
Energy crisis helps drive record global sales for heat pumps
Global sales of heat pumps1 grew by 11% in 2022, according to the latest IEA analysis, marking a second year of double-digit growth for the central technology in the world’s transition to secure and sustainable heating. Increased policy support and incentives for heat pumps in light of high natural gas prices and efforts to reduce greenhouse gas emissions were key drivers behind the strong uptake. In Europe, heat pumps enjoyed a record year, with sales growing by nearly 40%. In particular, sales of air-to-water models, which are compatible with typical radiators and underfloor heating systems, jumped by almost 50% in Europe. In the United States, heat pump purchases exceeded those of gas furnaces. However, in China, the world’s largest heat pump market, sales remained stable amidst a general slowdown of the economy. Globally, heat pumps, when used as a main heating device, cover around 10% of heating needs in buildings today. This corresponds to over 100 million households, meaning that one in ten homes that require substantial heating are served by heat pumps today. However, many more households use heat pumps only part of the winter or as a supplementary source of heating in regions where they are mainly used for cooling buildings. To align with all existing national energy and climate pledges worldwide, heat pumps will have to meet nearly 20% of global heating needs in buildings by 2030. The world is almost on track to reach this milestone if new installations continue to grow at a similar rate globally as they did the last two years. However, sales need to expand by well over 15% per year this decade if the world is to achieve net zero emissions by 2050. Installations of heat pumps remain concentrated in new buildings and existing single-family homes. Multistorey apartment buildings and commercial spaces will need to be a priority area if solid growth is to continue. Energy efficiency retrofits also need to accelerate to ensure that new heat pumps installed in existing buildings are as efficient as possible and not oversized. This will lower upfront and operating costs for consumers and reduce strains on power systems, especially if combined with smart controls for flexible operation. Read More
Irish Minister for Environment, Climate and Communications Eamon Ryan and French Minister for Energy Transition Agnès Pannier-Runacher have been elected by the IEA’s Governing Board to co-chair the 2024 IEA Ministerial. The Governing Board also elected four vice chairs for the meeting: Chris Bowen, Australia’s Minister for Climate Change and Energy; Jonathan Wilkinson, Canada’s Minister of Natural Resources; Rob Jetten, the Netherlands’ Minister for Climate and Energy Policy; and Anna Moskwa, Poland’s Minister of Climate and Environment. The meeting will be held in Paris in February 2024, coinciding with the 50th anniversary of the Agency’s founding. The IEA Ministerial takes place every two years to set the Agency’s mandate and review its achievements. The 2024 Ministerial will provide a key opportunity for countries to assess the latest developments in global energy markets and how they can advance international cooperation on energy security and tackling climate change. Read More
| Oil and Gas Blends | Units | Oil Price $ | change |
| Crude Oil (WTI) | USD/bbl | $79.87 | Up |
| Crude Oil (Brent) | USD/bbl | $84.15 | Up |
| Bonny Light | USD/bbl | $79.33 | Up |
| Saharan Blend | USD/bbl | $78.87 | Up |
| Natural Gas | USD/MMBtu | $2.08 | Down |
| OPEC basket 31/03/23 | USD/bbl | $78.12 | Up |
OPEC Reference Basket (ORB) made up of Saharan Blend (Algeria), Girassol (Angola), Djeno (Congo), Zafiro (Equatorial Guinea), Rabi Light (Gabon), Iran Heavy (Islamic Republic of Iran), Basra Medium (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).
The electric vehicle (EV) charging tool is developed under the framework of the GEF-7 Global Programme to Support Countries in the Shift to Electric Mobility
The EV charging tool allows planners and policymakers to quantify and visualise the EV charging demand profile for different vehicle classes and charging use cases. The results could be assessed by comparing with the typical transformer capacities in a user’s distribution grid area, or compare it with typical time period of peak load
This tool is intended for planners and policymakers to estimate the implications of the charging load profiles based on their expected electric mobility uptake. Read More
The 48th Meeting of the Joint Ministerial Monitoring Committee (JMMC) took place via videoconference on Monday, 03 April 2023.
The Committee reviewed the crude oil production data for the months of January and February 2023 and noted the overall conformity for participating OPEC and non-OPEC countries of the Declaration of Cooperation (DoC).
The Members of the JMMC reaffirmed their commitment to the DoC which extends to the end of 2023 as decided at the 33rd OPEC and non-OPEC Ministerial Meeting (ONOMM) on 5th of October 2022, and urged all participating countries to achieve full conformity and adhere to the compensation mechanism.
The Meeting noted the following voluntarily production adjustment announced on 2 April 2023 by Saudi Arabia (500 thousand b/d); Iraq (211 thousand b/d); United Arab Emirates (144 thousand b/d); Kuwait (128 thousand b/d); Kazakhstan (78 thousand b/d); Algeria (48 thousand b/d); Oman (40 thousand b/d); and Gabon (8 thousand b/d) starting May until the end of 2023. These will be in addition to the production adjustments decided at the 33rd OPEC and non-OPEC Ministerial Meeting,
The above will be in addition to the announced voluntary adjustment by the Russian Federation of 500 thousand barrels per day until the end of 2023, which will be from the average production levels as assessed by the secondary sources for the month of February 2023.
Accordingly, this will bring the total additional voluntary production adjustments by the above mentioned countries to 1.66 million b/d.
The Meeting noted that this is a precautionary measure aimed at supporting the stability of the oil market.
The Committee thanked the OPEC Secretariat for their contribution to the meeting.
The next meeting of the JMMC (49th) is scheduled for 4th of June 2023. Read More
Baker Hughes Rig Count
Baker Hughes Rig Count: U.S. -3 to 755 Canada -26 to 139
| Region | Period | Rig Count | Change from Prior |
| U.S.A | 31 March 2023 | 755 | -3 |
| Canada | 31 March 2023 | 139 | -26 |
| International | February 2023 | 915 | +14 |
OilandGasPress Energy Newsbites and Analysis Roundup | Compiled by: OGP Staff, Segun Cole @oilandgaspress.
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