UK NEWS

This will include up to £10bn for hydrogen production and £3bn for a technology called carbon capture, usage and storage - where carbon emissions are either turned into other products such as plastics or buried.The government says the deal should cut pollution by up to 60 million tonnes by 2030, while also supporting up to 40,000 jobs across the supply chain.

Spending by oil and gas companies operating in the UK North Sea fell to the lowest levels since 2004 last year as they concentrated on preserving cash during the pandemic, while production from the more than half a century-old basin has re-entered “longer-term” decline.

If approved, the 37,000-panel extension would result in 20% of the plant's energy coming from all onsite renewables. Nissan has announced plans for expansion to renewable energy generation at its plant in Sunderland, UK. The company claims that the existing wind turbines and solar farm, the proposed 20MW solar farm extension represents a step in Nissan's path to carbon neutrality.

The UK Government’s Budget announcement has legislated for the creation of an infrastructure bank and green finance schemes. On Wednesday, UK Chancellor Rishi Sunak announced a package of business measures. These included a raise in corporation tax set for two years’ time. Until then, the UK Government will allow companies to deduct 130% of their investments from their taxes.

Ocean Infinity and MMT announced an acquisition to bring together MMT’s expertise and track record as a marine survey and data analytics provider and Ocean Infinity's robotic technology and operational expertise. Following the acquisition by Ocean Infinity, MMT will continue to operate under the MMT brand. The enlarged group will have a headcount of over 300 people and will operate from an expanded geographical footprint with offices in the US, Sweden, UK, Singapore and Norway.

Royal Dutch Shell will not raise salaries for most of its employees this year as it looks to save cash amid an overhaul of the company. There will be as many as 9,000 job losses over the next two years, with cuts already announced in Netherlands, UK and Malaysia. In July, Chief Financial Officer Jessica Uhl told analysts that halted bonus payouts would save the company about $1billion.

The leading representative body for UK oil and gas has today announced appointment of a new co-chair to its board, Arne Gürtner, Senior Vice President UK & Ireland Offshore at Equinor, as the sector focuses on industry’s recovery whilst meeting net-zero targets for 2021. Arne leads organisation supporting Equinor’s UK and Ireland upstream activities, which includes Mariner development and Rosebank.

Neptune Energy and its joint venture partners bp and JAPEX, announced drilling has commenced on Seagull project in the UK Central North Sea. The Gorilla VI (JU-248) jack-up rig, operated by Valaris, will drill four wells for development over the course of drilling campaign which is expected to last 18 months. Seagull is expected to produce 50,000 boe/day (gross).

British Prime Minister Boris Johnson has hailed the “incredible things” being done by India in the solar energy sector as he warned that the emergency facing the world from climate change was far more destructive than even the coronavirus pandemic

The UK’s offshore oil and gas sector has announced plans to cut half of its emissions over the next decade. The latest move comes as the fossil fuel sector in the country aims to transition to a net-zero emissions basin by 2050, as part of its commitment to address climate change and help decarbonize the global economy.

UK development and production company, Independent Oil & Gas has awarded the core project phase one well management contract to Petrofac. The AIM-traded firm said the award followed a competitive tendering process, and the approval last month of the phase one field development plan by the UK Oil and Gas Authority (OGA). The contract scope covered planning, execution and close-out phases of the phase one drilling programme.

OVO Energy, which bought the household supply business of SSE for £500m just months ago, has announced plans to slash 2,600 jobs. The company said its integration plans, including a drive for digital and investment in a zero-carbon future, had been accelerated by the COVID-19 pandemic. OVO said it had initially expected the mergers to have taken a number of years but it hoped to achieve the cuts through volunteers.

Oil supermajor, BP Plc yesterday reported a slump in its earnings for the first quarter, sliding over the challenging circumstances generated due to declining oil prices and collapse in the demand. The British energy giant recorded a net loss of $4.37 billion from a profit of $2.93 billion for the quarter that ended March 31. However, BP has still maintained its quarterly dividend at 10.25 cents a share.

Oil & Gas UK has estimated a significant drop in production revenue from the UK Continental Shelf. It has also predicted that the UK oil and gas industry might lose as many as 30,000 jobs over the next 12–18 months. The industry trade body commented, "The outlook is bleak compared to the picture of steady growth seen only two months ago, before the grip of the pandemic became clear”.

British offshore services provider, Valaris is reportedly looking towards an imminent bankruptcy, as it struggles against lower contract awards. If news agency Reuters were to be believed, Valaris has been preparing for talks with creditors to agree on bankruptcy terms. News of Valaris having already appointed restructuring advisors is also being reported. Valaris reported $6.5bn of outstanding debt last year, compared to small $100m cash.

UK-based subsea well-decommissioning specialist Well-Safe Solutions has awarded a subsea well decommissioning support contract to Dutch geological survey major, Fugro. The three-year-long contract requires Fugro to support the semi-submersible Well-Safe Guardian which will carry out the decommissioning. The scope of the contract includes the provision of remotely operated vehicle (ROV) services, rig positioning and remote operations for the decommissioning process.

In a welcome move, the UK government has announced major funding for multiple carbon capture schemes in its Budget for 2020. Although UK chancellor Rishi Sunak refrained from mentioning any new measures for North Sea oil and gas extraction, his first budget laid emphasis on environment-friendly investment. The UK Committee on Climate Change has proposed the country’s first carbon capture, utilisation and storage (CCUS) facility and it should be operational by 2026.

Oil supermajor, BP has acquired majority stakes in fibre optic innovation company, Fotech through its business development branch, Launchpad. Founded in 2008, Fotech develops fibre optics products for transportation, smart cities, energy and the security sector. The UK-based firm deploys artificial intelligence and edge computing in its products, spanning areas like surveillance, transport management, cable monitoring and rail management.