July 29, 2022 China and Foreign Oil and Gas Express (1954)
Friday, the first day of July in the lunar calendar
【Oil price】
Oil prices for July 28, 2022
【Sino-foreign oil and gas news】
1. Total has launched three projects in oil, gas and solar to drive its multi-energy strategy. As part of its multi-energy strategy in Angola, Total announced the launch of the Begonia field, the development of the Quiluma and Maboqueiro gas fields, as well as its first photovoltaic project in the country with a capacity of 35 MWp and possibly adding 45 MWp in the second phase. Located in Angola's Block 17/06, the Begonia field is the first development project, 150km off the coast, with five wells connected to the Pazflor FPSO and expected to be operational later in 2024 with a production capacity of approximately 30,000 bpd with an investment of US$850 million. The Quiluma and Maboqueiro gas field development is the first non-associated gas project in Angola, operated by Eni (25.6%), with partners Total (11.8%), Chevrom (31%), Sonangol (19.8%) and bp (11.8%), and the project is expected to start production by mid-2026.
The Quilemba solar project, Total's first solar project in Angola, will build a solar farm with a capacity of 35 MWp, with an additional 45 MWp in the second phase, with phase I expected to start production by the end of 2023. (TotalEnergies, July 28)
2.Eni successfully drilled and tested the Baleine East-1X well in CI-802, Côte d'Ivoire. Eni successfully drilled the Baleine East-1X well, the first exploration well in CI-802 and the second discovery on the Baleine structure offshore in Côte d'Ivoire. This good result has increased the oil and gas reserves of the Baleine field by about 25%, which is currently estimated to have oil reserves of 2.5 billion barrels and associated natural gas reserves of 3.3 trillion cubic feet. The block is operated by Eni (90%), partner Petroci Holding (10%), with a depth of 3165 meters and a water depth of 1150 meters. Located 5 km east of the CI-101 Block Baleine 1X Discovery Well, the well is the first commercial discovery in CI-802 and has been confirmed as an extension of the Baleine field. Tests confirmed a production capacity of at least 12,000 barrels per day of oil and 14 million cubic feet per day of associated gas. (Eni, July 28)
3. The EU's classification will lead to new nuclear energy projects and more expensive natural gas. Rystad Energy's research suggests that the impact of the new EU classification system (which classifies which investments are sustainable) may support nuclear power development in some countries, but it may not be realistic to introduce new natural gas within the limits of the prescribed emission limit of 270 grams of CARBON dioxide equivalent/kWh. Natural gas faces a double challenge: emissions reduction technologies have not yet been brought to market on a large scale, and once implemented, their costs could push up prices even further. According to our research, the resulting spike in production costs suggests that even existing natural gas power plants may become economically unfeasible. Hydrogen blending and carbon capture and storage (CCS) are the main options for reducing gas emissions, which are unlikely to become viable options until the mid-2030s.
Rystad Energy's research also revealed a potential gap of 800,000 tonnes between the hydrogen production target of the earlier REPowerEU program aimed at improving energy security and the target implicit in the classification. This difference could make hybrid hydrogen power generation a challenge. (Rystad, July 26)
Well 31/4-A-13C drilled by Wintershall Dea near the Brage field in the North Sea, Norway, is a dry well. Wintershall Dea, the operator of PL 055, has completed the drilling of the 31/4-A-13C Wildcat well. The well is 7 km south of the Brage oil field and 125 km from Bergen. The main destination layer of the well is the Brent group of the Middle Jurassic Reservoir, and the secondary destination layer is the Upper Triassic to middle Jurassic reservoir Statfjord group and the Cook group. Drilling concluded that the well was dry. Data collection has been completed and the well will be permanently sealed and disposed of. (energy-pedia, July 29)
5. TotalEnergies and ADNOC collaborate on fuel distribution in Egypt. The partnership between TotalEnergies and ADNOC was further strengthened following the signing of an agreement by ADNOC Distribution to acquire a 50% stake in TotalEnergies Marketing Egypt LLC for $200 million. Prior to this, on the occasion of uae president Mohammed bin Zayed Al Nahyan's state visit to Paris, TotalEnergies signed a strategic cooperation agreement with ADNOC. The acquisition is expected to close in the first quarter of 2023, pending the satisfaction of certain conditions, including customary regulatory approvals. (TotalEnergies, July 29)
6. Cenovus raises production and spending forecasts amid stable oil prices. Oil producer Cenovus Energy Inc. said the company could spend hundreds of millions of dollars more this year than originally planned due to the acquisition of a deal in Alberta and the restart of a maritime project off the coast of Newfoundland. According to a statement Thursday, the Calgary-based company expects capital expenditures of $3.3 billion to $3.7 billion. Both figures were 400 million Canadian dollars ($312 million) higher than previous forecasts. Cenovus said it expects production to be equivalent to 780,000 to 810,000 barrels per day this year. At the midpoint of that range, production increased by 15,000 barrels per day, in part due to BP's acquisition of a 50 percent stake in Sunrise's oil sands project in Alberta in June. (worldoil, July 28)