Partial electrification of Sleipner approved

The Ministry of Petroleum and Energy has approved a revised plan for development and operation (PDO) for partial electrification of the Sleipner field centre. The field centre will be tied to the Utsira High area solution, and Sleipner is expected to cut emissions by more than 150,000 tonnes of CO₂ per year.

“Partial electrification of the Sleipner field centre will contribute to major cuts in emissions from our activities and provide significant assignments for the supplier industry in a demanding time. As the authorities have approved the PDO, we can keep developing the Norwegian continental shelf (NCS) towards the goal of zero greenhouse gas emissions in 2050,” says Arne Sigve Nylund, executive vice president for Technology, Projects and Drilling in Equinor.

In June, Equinor and its partners Vår Energi, LOTOS and KUFPEC submitted a revised plan for development and operation (PDO) to the authorities. The investments are in the size of NOK 850 million. Sleipner is scheduled to be tied in to the Utsira High area solution by the end of 2022.

“Sleipner is an important field on the NCS contributing enormous value to Norwegian society. The partners have focused on being in the forefront of technology development and innovation to carry out for example carbon capture, injection and storage at the field. The decision to partly electrify the field helps the partners in their effort of further developing the field,” says Kjetil Hove, executive vice president for Development and Production Norway in Equinor.

Arne Sigve Nylund, executive vice president for Technology, Projects and Drilling in Equinor, and Kjetil Hove, executive vice president for Development and Production Norway in Equinor.

The Sleipner field centre solution involves laying a power cable from Sleipner to the Gina Krog platform, which will be tied to the power from shore Utsira High area solution.

The Utsira High area solution was originally planned for the four fields: Johan Sverdrup, Edvard Grieg, Ivar Aasen and Gina Krog. The Sleipner field centre and the Gudrun, Gina Krog, Utgard, Gungne and Sigyn tie-in fields will now receive power from shore through the area solution.

In June, Aibel was awarded the EPCIC contract (engineering, procurement, construction, installation and commissioning) for Sleipner modifications. The contract for production and laying of cables was awarded to the NKT cable supplier.

Worth around NOK 400 million, the EPCIC contract will require approximately 170 man-years distributed on two years at Aibel’s offices in Stavanger and at their yard in Haugesund. Purchase of equipment from sub-suppliers is expected to be in the size of NOK 150 million.

Sleipner licence partners: Equinor Energy AS (operator) 59.6%, Vår Energi AS 15.4%, LOTOS Exploration and Production Norge AS 15.0%, KUFPEC Norway AS 10.0%

Original article link: https://www.equinor.com/en/news/20210211-partial-sleipner-electrifiction-approved.html

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Equinor selected for largest-ever US offshore wind award

Equinor has been selected to provide New York State with offshore wind power in one of the largest renewable energy procurements in the U.S. to date.

Under the award, Equinor and incoming strategic partner BP will provide generation capacity of 1,260 megawatts (MW) renewable offshore wind power from Empire Wind 2, and another 1,230 MW of power from Beacon Wind 1 – adding to the existing commitment to provide New York with 816 MW of renewable power from Empire Wind 1 – totaling 3.3 gigawatts (GW) of power to the State. The execution of the procurement award is subject to the successful negotiation of a purchase and sale agreement, which the partnership looks forward to finalizing together with the New York State Energy Research and Development Authority (NYSERDA).

As part of the award by NYSERDA, the companies will partner with the State to transform two venerable New York ports – the South Brooklyn Marine Terminal (SBMT) and the Port of Albany – into large-scale offshore wind working industrial facilities that position New York to become an offshore wind industry hub.

“These projects will deliver homegrown, renewable electricity to New York and play a major role in the State’s ambitions of becoming a global offshore wind hub. The U.S. East Coast is one of the most attractive growth markets for offshore wind in the world. The successful bids for Empire Wind 2 and Beacon Wind 1 represent a game-changer for our offshore wind business in the U.S. and underline Equinor’s commitment to be a leading company in the energy transition. These projects will also create value through economies of scale and support our strategic ambition of becoming a global offshore wind major,” says Anders Opedal, CEO of Equinor.

“Together, Equinor and the State of New York will create a robust offshore wind supply chain capable of manufacturing, assembling, and staging these projects at scale. As Equinor works to expand its renewable energy presence across the United States and the globe, New York’s leadership clearly illustrates the transformative benefits of offshore wind on climate goals and economic activity alike. We are looking forward to developing Empire Wind and Beacon Wind together with local authorities, communities and our incoming partner bp in growing this new industry,” says Siri Espedal Kindem, President of Equinor Wind U.S.

Taken together, these offshore wind projects will help the State’s economic rebound and strengthen disadvantaged communities while helping the State achieve its nation-leading renewable energy goals.

ABOUT SOUTH BROOKLYN MARINE TERMINAL (SBMT)

Equinor will invest in port upgrades to help transform SBMT into a world-class offshore wind staging and assembling facility and become the operations and maintenance (O&M) base both for Equinor and other project developers going forward.

SBMT will be one of the largest dedicated offshore wind port facilities in the United States at approximately 73 acres, with the capacity to accommodate wind turbine generator staging and assembly activities at the scale required by component manufacturers.

ABOUT PORT OF ALBANY

Equinor will combine forces with established wind industry companies Marmen and Welcon at the Port of Albany to help the port become America’s first offshore wind tower and transition piece manufacturing facility, where it will produce components for Equinor’s projects.

The site, located in the State’s Capital Region, stands to become a go-to destination for future projects to source offshore wind towers, transition pieces, and other manufacturing components for many years to come as offshore wind continues to grow along the East Coast.

ABOUT THE ASSETS

Empire Wind is located 15-30 miles southeast of Long Island and spans 80,000 acres, with water depths of between 65 and 131 feet. The lease was acquired in 2017 and is being developed in two phases (Empire Wind 1 and 2) with a total installed capacity of more than 2 GW (816 + 1,260 MW).

Beacon Wind is located more than 60 miles east of Montauk Point and 20 miles south of Nantucket and covers 128,000 acres. The lease was acquired in 2019 and has the potential to be developed with a total capacity of more than 2.4 GW. This first phase will have an installed capacity of 1,230 MW.

In September 2020, Equinor and bp announced that they formed a strategic partnership for offshore wind in the U.S., and that bp will be a 50 percent partner in the Equinor-operated Empire Wind and Beacon Wind assets on the U.S. East coast. The transaction is expected to close in early 2021.

ABOUT EQUINOR

Equinor is developing into a broad energy company, building a material position in renewable energy. Equinor now powers more than one million European homes with renewable offshore wind from four projects in the United Kingdom and Germany. Equinor commissioned the world’s first floating offshore wind farm in 2017 off the coast of Scotland. In the U.S., Equinor holds two lease areas, the Empire Wind lease area located approximately 20 miles south of Long Island, and the Beacon Wind lease area that lies 60 miles off the coast of Long Island.

Original article link: Equinor selected for largest-ever US offshore wind award

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Noreco: Tyra redevelopment project delayed from 2022 into Q2 2023

Norwegian Energy Company ASA (“Noreco” or “the Company”) announces today the following update on the Tyra Redevelopment Project:

• As a consequence of the ongoing COVID-19 pandemic, first production from the Tyra Redevelopment is expected in Q2 2023 instead of 2022 as previously communicated
• The project remains on track to be delivered within budget

Due to COVID-19, local governmental imposed restrictions at the fabrication yards have impacted the schedule of the new Tyra topsides, including through the global supply chain delivering key components for the topsides. As a direct consequence of this impact the installation of the four new topsides is rescheduled from 2021 to a 2022 installation-window. 

First production from the redeveloped Tyra is then expected in Q2 2023.

 Facts:  

• Noreco is a North Sea E&P company and the second largest producer in Denmark with a 36.8% ownership in The Danish Underground Consortium (“DUC”).
• The DUC is a partnership between the operator Total (43.2%), Noreco (36.8%) and Nordsøfonden (20%).
• The Tyra Field is the largest gas condensate field in the Danish Sector of the North Sea. Its facilities process more than 90% of the gas produced in Denmark, as well as the entire gas production of the DUC.
• Due to seabed subsidence, the Tyra field required a redevelopment, a project that was sanctioned by the DUC in 2017.
• The Tyra Redevelopment consists of three main elements: Removal and decommissioning of the prior Tyra platforms, reuse and 13 meters extension of the current jackets at six platforms that will have new topsides and a new process platform and a new accommodation platform. The project is, to date, the largest project carried out on Danish Continental Shelf. 
• When back in operation, Tyra is expected to reach peak production of approximately 60,000 boepd.

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Impact farms out South African offshore to Shell

Impact Oil & Gas Limited (“Impact” or the “Company”), a privately-owned, African-focused, exploration company, is pleased to announce that its wholly-owned subsidiary, Impact Africa Ltd has entered into an agreement with BG International Limited, a wholly owned subsidiary of Royal Dutch Shell plc (“Shell”) for the farm-out of a 50% working interest and operatorship in the Transkei & Algoa exploration right, offshore South Africa (Exploration Right reference 12/3/252).

Under the terms of the farm-out agreement, Shell will acquire a 50% working interest in the Transkei & Algoa blocks and operatorship. Shell has also been granted the option to acquire an additional 5% working interest should the joint venture elect to move into the Third Renewal Period, which is expected to be approximately 2024.

Siraj Ahmed, CEO of Impact Oil & Gas, commented:

“We are delighted to have secured a farm-out partner of Shell’s calibre, highlighting the significant value potential of our exceptional South African exploration portfolio. Shell joins the Transkei & Algoa licence at a very exciting time for exploration drilling in South Africa. They bring substantial exploration expertise, with particular understanding of the potential of offshore South Africa, and an agreed strategy to accelerate the work programme to build upon the considerable work already undertaken by Impact and the previous JV partnership.”

Whilst part of the same licence, the Transkei & Algoa blocks have different geological settings. The Algoa block is situated in the South Outeniqua Basin, a short distance east of Block 11B/12B, containing the Brulpadda gas condensate discovery and where Total has recently announced a further significant gas condensate discovery, following the successful drilling of the Luiperd-1X exploration well, which it is currently testing. The Transkei block is situated north-east of Algoa in the Natal Trough Basin where Impact has identified highly material prospectivity associated with several large submarine fan bodies, which this joint venture will explore with focused 3D seismic data and then potential exploratory drilling. Impact and Shell plan to acquire over 6,000km² of 3D seismic data during the first available seismic window following completion of the transaction. This window is expected to be in the first quarter of 2022.

Closing of the transaction is subject to customary conditions, including the approval of the Government of South Africa.

The participating interests in the Transkei & Algoa blocks following completion of the farm-out by Impact will be as follows: Shell (Operator), 50% and Impact, 50%.

Transkei & Algoa, offshore South Africa

Exploration Right 12/3/252, Transkei & Algoa is located offshore eastern South Africa and covers approximately 45,838km² in water depths up to 3,000 metres. The licence was initially awarded to Impact as a Technical Cooperation Permit in 2012, followed by an application for an Exploration Right, which was granted in 2014.

Original article link: https://impactoilandgas.com/farm-out-of-transkei-algoa-to-shell/

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Idemitsu Petroleum Norge to sell part of participating interests of Production Licenses in Barents Sea

20^th October 2020

Idemitsu Kosan Co.,Ltd. (Head Office: Chiyoda-ku, Tokyo; Representative Director and CEO: Shunichi Kito, the “Company”) is pleased to announce that Idemitsu Petroleum Norge AS^*1 (Head Office: Oslo Norway; Managing Director: Futoshi Tsuneyama), a wholly owned subsidiary of Idemitsu Snorre Oil Development Co., Ltd. (Head Office: Chiyoda-ku, Tokyo; President: Jun Miki)^*2, has entered into an agreement with Lundin Energy Norway AS (Head Office: Oslo Norway), to sell a 10% participating interest in production licences PL 537 & PL 537B including Wisting discovery and a 15% participating interest in production licences PL 609, PL 609B, PL 609C, PL 609D and PL 851 including Alta discovery in the Barents Sea, Norway.

*1: Shareholders: Idemitsu Snorre Oil Development Co., Ltd. (100 %)

*2: Shareholders: Idemitsu Kosan Co.,Ltd. (50.5 %), Osakagas Summit Resources Co., Ltd. (49.5 %)

Idemitsu Petroleum Norge AS acquired a 20% participating interest in PL537 & PL537B, and a 30% participating interest in PL 609, PL 609B, PL 609C, PL 609D and PL 851 through the Norwegian licensing rounds. The Wisting and Alta discoveries were made in PL 537 in 2013 and PL 609 in 2014 respectively. Studies are ongoing with a view to progressing these discoveries to development.

The transaction is part of the Company’s long-term business strategy, and capital and cash management plan. It will reduce development cost exposure in future. A cash consideration of USD125 million is to be paid on completion of the transaction. (The transaction is subject to Norwegian authority approvals.)

【Change of licence share in the production licenses in Barents Sea】

Original article link:

https://www.idemitsu.com/news/2020/201020.html

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TOTAL delivers its first carbon neutral LNG cargo

TOTAL has delivered its first shipment of carbon neutral liquefied natural gas (LNG) to the Chinese National Offshore Oil Corporation (CNOOC). The loading operation was carried out at the Ichthys liquefaction plant in Australia, and the shipment was delivered on September 29 to the Dapeng terminal, China.

“We are proud to have completed this first shipment of carbon neutral LNG with CNOOC, a long-standing partner of TOTAL. This first LNG shipment, whose carbon emissions have been offset throughout the value chain, represents a new step as we seek to support our customers towards carbon neutrality,” explains Laurent Vivier, President for Gas at TOTAL. “The development of LNG is essential to meet the growth in global demand for energy while reducing the carbon intensity of the energy products consumed.”

The carbon footprint of the LNG shipment was offset with VCS (Verified Carbon Standards) emissions certificates financing two projects: 

• Hebei Guyuan Wind Power Project, which aims to reduce emissions from coal-based power generation in northern China
• Kariba REDD+ Forest Protection Project, which aims to protect Zimbabwe's forests

The term “carbon neutral” indicates that TOTAL and CNOOC have offset the amount of carbon dioxide equivalent associated with the whole carbon footprint of the LNG Cargo (including the production, liquefaction, shipping, regasification, and end-use) through VCS certified emission reduction projects.

TOTAL: Second Largest Private Global LNG Player

TOTAL has made natural gas, the least pollutant of all fossil fuels, a cornerstone of its strategy to meet a growing global demand for energy while helping to mitigate climate change. We are focusing in particular on LNG, which can be easily transported and delivered as close as possible to consumer markets.

TOTAL is present across the entire LNG value chain, from production and liquefaction of natural gas to LNG shipping and trading, regasification using terminals and floating storage regasification units (FSRUs) and contributes to the development of the LNG sector for maritime transportation.

TOTAL is the second-largest global LNG stakeholder in the private industry, with an overall portfolio of nearly 50 Mt/year by 2025 and a worldwide market share of 10%. With over 34 Mt of LNG sold in 2019, the Group has solid and diversified positions across the LNG value chain. TOTAL sells LNG in all world markets via its stakes in liquefaction plants in Qatar, Nigeria, Russia, Norway, Oman, Egypt, the United Arab Emirates, the United States, Australia and Angola.

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FAR from a solution

FAR has defaulted on its most recent development cash call on Phase 1 of the Sangomar/SNE development.

Under the Sangomar Joint Operating Agreement, any party that defaults on its financial obligations and cash calls have a six month rectification period, during which time it will pay LIBOR+2% on the unpaid amounts. FAR will also not be able to participate in any of the operating committee meetings or participate in any voting on JV issues.

If FAR fails to rectify on its default, it will forfeit its entire interest in Sangomar with no compensation - i.e. FAR will lose the asset and the value of it will be zero.

In the meantime, FAR is investigating a sale of a stake and will have a race against time to find a solution.

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