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The United Arab Emirates’ (UAE) chief energy regulator has announced that the country holds a substantial volume of newly discovered unconventional resources as it approved a 5-year spending plan for the Abu Dhabi National Oil Company (ADNOC). The Supreme Petroleum Council, which also serves as ADNOC’s board of directors, placed the estimated reserves of unconventional oil within the Emirate of Abu Dhabi at 22 billion bbl, according to a government news release on 22 November. The figure would place the UAE’s tight reservoir potential on par with that of some of the biggest plays in North America. The government also said that an additional 2 billion bbl of reserves was also recently discovered, raising the UAE’s total conventional reserve estimate to 107 billion bbl. Both the conventional and unconventional estimates were independently verified by Houston-based reserves specialist Ryder Scott.
Industrial artificial intelligence (AI) software company Cognite and engineering company Wood formed a strategic partnership to create AI solutions for heavy-asset, infrastructure, and industrial clients. The collaboration will combine Cognite’s Data Fusion product with Wood’s multisector domain knowledge, data extraction, and technology integration expertise. Data will be transformed from siloed raw information into real-time digital insights to guide business and operational decisions. The companies said they are committed to deploying performance solutions for the energy transition, which would allow for more understanding of assets and operations, and free up data trapped in fragmented and legacy systems. Mark House, Wood president of automation and control, said the companies will leverage physics-based models and AI to provide faster analytics.
Petrobras is offering a 50% stake in its Marlim complex located offshore Brazil in the Campos Basin. The deal is part of the company’s plan to optimize its portfolio, improve capital allocation, and shift its resources to deep and ultradeep waters. Marlim is the third offer the company has made over the past five weeks following its notices for the Bahia Terra and Carmópolis clusters. The offshore development is the third largest in Brazil and fourth largest in the Americas by production, with potential for future activity including near-term field revitalization and pre-salt potential. It’s also the largest post-salt development in Brazil with more than 20 billion bbl of original oil in place (OOIP) and includes licenses through 2052 with potential to increase the current production of approximately 120 million BOE/D by about 60%.
ADNOC LNG signed a supply agreement for up to 6 years with Vitol for the sale of 1.8 mtpa of post-2022 LNG volumes, and a 2-year supply agreement with Total for 0.75 mtpa of 2021 and 2022 LNG volumes. The agreements continue ADNOC’s transition to a multi-customer strategy that began in 2019, and follow its investment partnership with Vitol in global storage terminal owner and operator VTTI. Since then, the company shifted from supplying 90% of its LNG to Japan to supplying 90% of LNG to clients in more than eight countries from across southern and southeast Asia. The agreement is also in line with its 2030 gas strategy to deliver value for UAE and meet global demand, which is expected to grow by up to 5% annually over the next 20 years. ADNOC LNG, owned by ADNOC (70%), Mitsui & Co (15%), BP (10%), and Total (5%), produces about 6 mtpa of LNG from its Das Island facilities off the coast of Abu Dhabi.
US employment rose for a second consecutive month in October for the US oilfield services (OFS) and equipment sector, according to early data from the Bureau of Labor Statistics (BLS) and an analysis by the Petroleum Equipment and Services Association (PESA). BLS data showed OFS sector employment up by about 8,600 jobs in September and October, with October seeing a 1% increase, as companies increased oil and gas production. Revisions showed the sector lost 1,187 jobs in August and added 2,202 jobs in September. The increase in OFS employment was part of the 638,000 jobs the US added in October, which decreased the overall unemployment to 7%. PESA said while the worst of the cutbacks appear to be behind the industry, its too early to tell what the increase in jobs means.
Bonanza Creek Energy said this week it is purchasing smaller rival HighPoint Resources in an all-stock deal the companies said is valued at nearly $376 million. The acquisition is expected to put Bonanza Creek on pace to produce 50,000 BOE/D (about 53% oil) from more than 200,000 contiguous acres in Colorado’s DJ Basin. A key driver behind the deal was Bonanza Creek’s need to improve sustainable free cash flow by creating a company with greater scale, said a company announcement. HighPoint meanwhile is entering into the deal under a restructuring plan, signaling that its only other option is to seek court-supervised bankruptcy protection. Bonanza Creek said its cash flow target for next year is $130 million that will be used to reduce debt, pay investors, and development reinvestment.
The influence of social media has created a lot of concern these days. Facebook was founded by Mark Zuckerberg in 2004, along with fellow Harvard College students and roommates Eduardo Saverin, Andrew McCollum, Dustin Moskovitz, and Chris Hughes. In 2020, the global number of Facebook users is expected to reach 1.69 billion, up from 1.34 million in 2014. Nearly two-thirds of adults in the United States (68% to be precise) report that they are Facebook users. The usage of social media around the world continues to increase. Social media statistics from 2019 show that 3.5 billion people use social media worldwide, and this number is only growing.
KPS Capital Partners affiliate Lufkin Industries acquired Schlumberger’s North American land rod lift unit, for an undisclosed sum. Schlumberger’s rod lift business includes brands such as Don-Nan, Shores Lift Solutions, KBA Engineering, Platinum Pumpjack Services, and RLC Rod Lift Consulting. The products include downhole pumps and accessories, beam pumping units, sucker rods, gas lift products, and its proprietary PumpTrak software. The divestment is the latest change the company is making as it adapts to challenges for the energy industry brought on by the economic downturn. Following salary reductions and job cuts in April, the oilfield services company said it would restructure its business units. In September, it made a deal for its OneStim fracturing services operations with Liberty Oilfield Services in exchange for 37% of Liberty’s stock.
The vessel has a large, flush working deck and a multilevel cargo hold, enabling additional modular components to suit specific project requirements and integrate offshore activities. The Karish field is being developed using the Energean Power floating production, storage, and offloading unit (FPSO) to be installed 90 km offshore. The FPSO will have a gas-treatment capacity of 800 MMscf/D and liquids- storage capacity of 800,000 bbl. First gas is expected in 2H 2021. The charter agreement for the LNG-propulsion vessels is in line with Total’s Climate Ambition and will cut down on several emissions.
An Abu Dhabi National Oil Company (ADNOC) subsidiary awarded three contracts worth $324 million to optimize its onshore field operations and improve efficiencies as part of its investment in driving “smart growth.” The contracts, awarded by ADNOC Onshore, include the procurement and construction (of flowlines and wellhead installations across onshore oil fields in Abu Dhabi, and the engineering, procurement, and construction (EPC) of a bypass system to provide backup for existing crude-receiving stations at the Jebel Dhanna and Fujairah export terminals. A contract worth $71 million was awarded to Galfar Engineering and Contracting (WLL–Emirates), which will procure and construct flowlines and wellhead installations for the Asab and Sahil fields. The second contract ($168 million) was awarded to Robt Stone (Middle East LLC), which will procure and construct flowlines and wellhead installations for the Bab field. The scope of work includes residual engineering, procurement, construction, precommissioning, and commissioning of natural oil producer wells and water injection wells at the respective fields.