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Energy major, Shell is on a hunt for Permian deals in order to improve its position in the basin. Shell’s deepwater boss said, "If none ever come up then that’s a disappointing outcome.” Its rivals Exxon and Chevron, on the other hand, are planning to produce nearly 2 million barrels of oil by the mid-2020s. According to Sawan, Shell's Permian operations will be cash flow positive in the coming years.
Oil super major ExxonMobil has announced that the company's capital expenditure of 2019 and 2020 will be between $63 billion and $65 billion. The company is under constant pressure from investors to control the expenses as the cash flow is being strained due to large-scale projects and some deals. Exxon expects the earnings to increase by more than $4 billion in 2019 and 2020.
Buoyant output forecasts by Exxon Mobil and Chevron and rising US crude stockpiles sent oil prices for a 1% downfall today. While Brent crude dipped 0.8% to $65.31/barrel, US WTI crude futures fell 0.9% to $56.05/barrel. Chevron and Exxon’s projections for the Permian Basin yesterday indicated escalations in shale oil production. Oil prices also took a hit from API report showing a rise of 7.3 million barrels in the inventories.
According to the sources, Royal Dutch Shell wants to increase output and recoverable reserves from its gas field, Ormen Lange in Norway. The energy giant is planning to install subsea compressors in the field in order to boost production. Shell and its partners, Equinor and Exxon are now aiming to choose between two proposals, which are from OneSubsea and TFMC, intended to improve output and recoverable reserves.
US EPC firm, KBR, Inc. has been awarded a reimbursable contract by oil supermajor ExxonMobil for the recently announced crude expansion project. The contract requires KBR to provide detailed engineering, procurement, and construction (EPC) services for the offsites and interconnecting units. Farhan Mujib, KBR President, Hydrocarbons - Delivery Solutions said "KBR is proud to continue our relationship with ExxonMobil through our partnership on this project."
American international corporation, Air Products has secured a contract for Qatar Petroleum and Exxon Mobil’s Golden Pass LNG project. The Pennsylvania-based firm will provide its proprietary AP-C3MRTM natural gas liquefaction technology and equipment, and three MCR® Main Cryogenic Heat Exchangers. Golden Pass LNG, which is a $10 billion project, is integrating liquefaction and export capabilities to the existing framework near Sabine Pass.
Oil supermajor ExxonMobil has awarded a contract extension to Rowan’s Relentless Drillship for further operations. In a company statement, Rowan Companies plc announced that its R-Class ultra-deepwater drillship, Rowan Relentless will continue its operations for another 180 days in the US Gulf of Mexico. The drillship has been under contract by ExxonMobil from September 2018.
The energy giant ExxonMobil has got its West Coast Canada (WCC) LNG export terminal in Canada delisted from the environmental assessment process. WCC was expected to produce approximately 15 million tonnes per year of LNG. This withdrawal follows the go-ahead of Shell’s British Columbia project and ExxonMobil will now focus on LNG projects in Asia, the Middle East and United States.
Supermajor, ExxonMobil and its joint venture partner BHP have made a final investment decision (FID) on the development of the West Barracouta gas field, offshore Victoria, Australia. FEED work for the project has already been concluded and subsequently, contracts were awarded to Subsea 7 and OneSubsea. The project aims at boosting domestic gas supplies in Victoria. A report published by Australian Energy Market Operator dictates looming gas shortage in Victoria by 2022.
Qatar Petroleum has inked an agreement to buy ExxonMobil’s10% stakes in three blocks in Mozambique. The ExxonMobil affiliate currently owns 60% interest in the blocks. This is Qatar Petroleum’s first expedition into Mozambique’s offshore basins. ENH and Rosneft’s affiliates are the other stakeholders in the block, with each of them owning 20% interest.
ExxonMobil has raised the recoverable resource estimate for the Stabroek Block to more than 5 Bboe. Exxon's 10th discovery offshore Guyana pushed the resource estimate from the block. ExxonMobil’s senior VP said “We will continue to apply what we’ve learned to identify additional exploration prospects and potential future discoveries that will deliver significant value to Guyanese people, our partners and shareholders.” The Stabroek block is spread across 6.6 million acres.
Exxon’s Rotterdam refinery will undergo several key developments to meet the stringent quality standards in base stocks manufacturing. The upgrade will be the final step in support of the full stream production in 2019. The developments will include new lab facilities with state-of-the-art equipment, implementation of ExxonMobil’s proprietary Global BPIMS, and so on. The improvements are in line with ExxonMobil’s pledge towards product integrity and reliability at the Rotterdam refinery.
ExxonMobil has signed largest ever renewable power contract, says Bloomberg. It has signed a 12-year agreement with Denmark’s Orsted A/S and will buy 500 MW of wind and solar power in Permian Basin. Exxon has been accused and sued by investors for increasing the risk of global warming. After this, the company is shifting to clean energy for the regions where electricity demand is growing with the increase in oil production.
Papua New Guinea (PNG) has agreed to set financial terms for Total’s long-awaited gas project in the country. The project is expected to double LNG exports from PNG. Papua LNG will supply gas for two new processing units at Exxon Mobil’s PNG LNG plant. Negotiations over how revenue would be shared still require more work.
Supermajor, ExxonMobil has been slammed with a new lawsuit by the New York Attorney General. The lawsuit alleges Exxon of misleading investors about its readiness to overcome the financial challenges posed by climate change to their business. The suit follows a three-year legal fight against Exxon. Spokesman for Exxon, referring to the allegations as baseless, said that the New York AG’s office is yet to find any evidence against Exxon.
BASF, world’s largest chemical producer, and ExxonMobil are conducting a full scale commercial demonstration of their jointly-developed solvent. The firms have chosen Imperial Oil’s Sarnia Refinery for this purpose. The amine-based solvent is aimed at fulfilling the stringent sulfur emission standards with greater efficiency. The solvent will allow refiners and gas processors to enhance capacity and reduce the operating costs involved with existing equipment.
Mozambique’s government informed that it has signed an oil exploration agreement with ExxonMobil and Rosneft. The energy regulator of Mozambique, National Petroleum Institute said that the government is planning to get into similar agreements with Sasol of South Africa and Itlay’s Eni. These energy firms will drill a minimum of 10 wells which is expected to lead to an investment of as much as $700 million.
ExxonMobil is strategizing according to the new global shipping fuel regulations to be effective from 2020. The energy major will plan on a multi-billion dollar investment in its Singapore refinery. It is Exxon’s chief petrochemical complex with a 592,000 bpd capacity. This move is in line with the IMO’s new rules to limit the sulphur content to 0.5% from present 3.5% in order to reduce pollution by ships worldwide.