Saipem has recently clinched two significant offshore contracts, collectively valued at around 1.9 billion USD, in Guyana and Brazil. The first of these contracts, awarded by ExxonMobil’s subsidiary ExxonMobil Guyana Limited, is for the development of the Whiptail oilfield in the Stabroek block, located offshore Guyana at a depth of about 2,000 meters. Saipem’s responsibilities include designing, fabricating, and installing various subsea components such as structures, risers, flowlines, and umbilicals for a substantial subsea production facility. For this project, Saipem will utilize its advanced vessels – FDS2, Constellation, and Castorone – and will leverage its Guyana Offshore Construction Facility in the Port of Georgetown as the primary fabrication site. This approach aims to foster sustainable growth in Guyana.

The commencement of the project is contingent upon government approvals, project sanction by ExxonMobil Guyana Limited and its Stabroek block partners, and authorization for the final phase. This will enable Saipem to start preliminary activities, including detailed engineering and procurement. The second contract, awarded by Equinor, involves the Raia project in Brazil. This project focuses on developing a pre-salt gas and condensate field in the Campos Basin, approximately 200 km off the coast of Rio de Janeiro. Saipem’s role encompasses the offshore transportation and installation of a subsea gas export line and related equipment in waters about 2,900 meters deep, along with horizontal drilling for the shore approach. The company plans to deploy its sophisticated pipelaying vessel, Castorone, for these installation works. Through the Raia project, Saipem is set to play a pivotal role in one of Brazil’s most crucial gas development projects, potentially catering to 15% of the country’s total domestic gas demand. The gas extracted will be transported via pipelines installed by Saipem over approximately 200 km to a new gas receiving facility in Cabiúnas, located in the city of Macaé in the State of Rio de Janeiro.

Framatome has unveiled plans to build a nuclear fuel fabrication facility in the UK, actively scouting for suitable industrial locations in collaboration with the UK Government’s Department for Energy Security and Net-Zero (DESNZ) and EDF in the UK. The company is currently evaluating potential sites, including existing and former nuclear generation locations, as part of the preliminary phase.

This will be followed by comprehensive site justification and pre-licensing studies, slated to begin in 2024 under the supervision of the Office for Nuclear Regulation (ONR). This initiative is a key  component of Framatome’s strategy to expand its UK operations in anticipation of the new wave of nuclear reactors. The proposed facility is designed to produce nuclear fuel for both large Pressurized Water Reactors (PWR) and Light Water Small Modular Reactors (SMR), aiming to supply the burgeoning nuclear fleet in the UK and facilitate the broader roll-out of SMRs across Europe. This move aligns with EDF’s ongoing construction of two EPR reactors at Hinkley Point C and the planned development of two more at Sizewell C.

It also supports the UK government’s recent endorsement of six SMR designs, targeting operational reactors by the mid-2030s. In addition to this new venture, Framatome continues to support the maintenance and extended operation of existing UK nuclear plants and is actively involved in the construction of the new EPR reactors at Hinkley Point C and the upcoming Sizewell C plant.

Mitsubishi Power, a subsidiary of Mitsubishi Heavy Industries, Ltd. (MHI), has successfully carried out a groundbreaking demonstration blending 30% hydrogen with natural gas in a state-of-the-art 1,650-class J-series Air-Cooled (JAC) gas turbine. This test was conducted at both partial and full load, in a grid-connected setup at the T-Point 2 Combined Cycle Power Plant Validation Facility. Located in Takasago Hydrogen Park at the Takasago Machinery Works in Takasago City, Hyogo Prefecture, Japan, this facility boasts a 566 megawatt (MW) output. Remarkably, this demonstration, which utilized locally produced hydrogen from Takasago Hydrogen Park, is the first of its kind globally to test power generation on a large frame gas turbine with a 30% hydrogen fuel mix while connected to the local power grid. Mitsubishi Power aims to further develop hydrogenfired gas turbine technology at Takasago Hydrogen Park, a unique site for integrated testing of hydrogen production, storage, and power generation, advancing towards a carbon-neutral society.

This demonstration, supported by funding from Japan’s New Energy and Industrial Technology Development Organization (NEDO), used a Dry Low NOx (DLN) combustor. It confirmed that low nitrogen oxide (NOx) emissions and stable combustion are achievable with hydrogen co-firing, and that it’s feasible to switch between natural gas and hydrogen fuel blends during both partial-load and full-load operations. Looking ahead to 2024, Mitsubishi Power plans a 100% hydrogen-firing test using a smaller, mid-sized H-25 gas turbine (40 MW class), previously installed for compressor driving at the park’s combustion test facility. Additionally, the company is set to expand the hydrogen storage facility and conduct tests with a 50% hydrogen blended fuel, marking significant strides in hydrogen energy utilization.

Subsea 7 has announced securing a substantial contract, valued between USD 300 million and USD 500 million, from Woodside. Woodside, acting as the operator for the Scarborough Joint Venture, has entrusted Subsea 7 with the Scarborough project, situated around 380km offshore in North West Australia. This project encompasses a comprehensive scope of work, including the engineering, procurement, construction, and installation (EPCI) of subsea pipelines and production systems. The development plan involves installing 45 kilometres of rigid flowlines, six flexible flowline risers, 42 kilometres of umbilicals, and eight trees, along with other necessary subsea equipment, in water depths of about 950 metres.

The Subsea Integration Alliance, a strategic global collaboration between Subsea 7 and OneSubsea (a division of Schlumberger specializing in subsea technologies, production, and processing systems), will spearhead this project. This alliance, formed during the initial front-end engineering and design phase in January 2019, is now set to progress into the full EPCI phase. The project management and engineering activities will be conducted in Perth, Australia, supported by Subsea 7’s Global Project Centre in Malaysia, the UK, France, and various OneSubsea offices.

The offshore operations for this project are scheduled between 2023 and 2025, utilizing Subsea 7’s advanced reel-lay and flex-lay vessels. This alliance combines expertise in field development planning, project execution, and comprehensive lifecycle solutions, backed by a broad technology and service portfolio.

Eni and Saipem have recently entered into a partnership aimed at advancing biorefining technology. This collaboration, formalized on November 6 through an agreement signed by Giuseppe Ricci, Eni’s Chief Operating Officer for Energy Evolution, and Alessandro Puliti, CEO of Saipem, is set to revolutionize the traditional refinery sector and foster the growth of new Eni biorefineries. Aligned with both companies’ commitment to decarbonization, the agreement focuses on the exploration and potential establishment of facilities dedicated to producing sustainable aviation fuel, biojet, and HVO diesel – a biofuel made entirely from renewable sources in compliance with the EU Directive 2018/2001 “REDII”.

HVO diesel, marketed by Eni under the brand name HVOlution, is versatile, suitable for road, naval, and rail transport. This partnership will leverage Eni’s proprietary Ecofining technology, which has already been successfully implemented in converting two conventional refineries into biorefineries in Venice Porto Marghera and Gela, Sicily. These facilities now process waste feedstocks like used cooking oil, animal fats, and residues from the agro-food industry, utilizing Ecofining technology. Saipem’s role in this initiative is crucial, bringing its unique design and construction expertise to the table, having already contributed to the success of the projects in Venice and Gela.

Shell Egypt NV has recently made a notable gas discovery in the North East El-Ammiya block, located in the Mediterranean Sea off the coast of Egypt. This discovery, achieved at a depth of around 820 feet in the offshore Nile Delta, is a promising development in the region’s gas exploration. However, further analysis is required to fully assess the discovery’s size and extraction potential. In a strategic collaboration, Shell and Kuwait Foreign Petroleum Exploration Company (KUFPEC) are jointly advancing this project. KUFPEC has acquired a 40% stake in the block, reinforcing its commitment to expanding its offshore portfolio in Egypt. In a related development, KUFPEC’s subsidiary announced an oil discovery in the Geisum and Tawila West Concession in the Gulf of Suez. This discovery, made through the GNN-11 exploration well, is significant as it marks the first time oil has been found in the Nubia formation in this area.

The well is already producing over 2,500 barrels of oil per day, substantially increasing the overall production of the asset. These discoveries by Shell Egypt and KUFPEC represent major advancements in Egypt’s offshore energy sector. They not only underscore the fruitful collaboration between international energy companies and the Egyptian government but also highlight the potential of the Mediterranean Sea and the Gulf of Suez as key areas for future energy exploration and development. This progress is pivotal for Egypt’s energy landscape, promising to enhance the country’s energy independence and economic growth.

Petrobras has announced a new quarterly record in its operated oil and gas production for the third quarter of the year, achieving an impressive 3.98 million barrels of oil equivalent (boe) per day, marking a 7.8% increase from the second quarter. Additionally, the company set a new monthly production record in September, reaching 4.1 million boe per day, which is 6.8% higher than the production in August. This significant increase in production is primarily attributed to the ramp-up of several platforms. These include the Almirante Barroso platform in the Búzios field and the P-71 platform in the Itapu field, both located in the pre-salt layer of the Santos Basin. Additionally, the Anna Nery and Anita Garibaldi units in the Marlim and Voador fields, situated in the Campos Basin, contributed to this growth.

A contributing factor to this record-breaking performance was the reduced number of maintenance shutdowns on the platforms during this period. This achievement in monthly operated production coincided with a record month in the pre-salt layer, where Petrobras reached 3.43 million boe in September. Moreover, Petrobras reported an accumulated production exceeding 27 billion boe in the third quarter. The company is poised for further growth with the FPSO Sepetiba in the Mero field slated to begin production by the year’s end, marking the deployment of five platforms within a 12-month span.

Exxon Mobil Corporation has announced its ambition to become a prominent lithium producer, a critical element in electric vehicle (EV) batteries. The company has initiated the first phase of its lithium production project in southwest Arkansas, a region with substantial lithium reserves.

This new venture will be marketed under the name Mobil Lithium, leveraging Mobil’s longstanding and deep technical collaboration with the automotive sector. In early 2023, ExxonMobil secured rights to approximately 120,000 acres in the Smackover formation in southern Arkansas, recognized as one of North America’s most abundant lithium sources. Southwest Arkansas, traditionally known for its oil and natural gas production, boasts a well-understood geological landscape.

ExxonMobil is collaborating with local and state authorities to facilitate the growth of Arkansas’ nascent lithium industry.

Kinder Morgan is set to acquire the South Texas assets of NextEra Energy Partners, known as STX Midstream, for a total of $1.815 billion. This acquisition includes a comprehensive pipeline system, primarily consisting of large, high-pressure natural gas pipelines. These pipelines are strategically positioned, connecting the Eagle Ford basin to significant demand areas in Mexico and the Gulf Coast. A key component of STX Midstream is its 90% stake in the NET Mexico pipeline, with the remaining 10% owned by MGI Enterprises, an affiliate of PEMEX. Additionally, STX Midstream operates the Eagle Ford Midstream, a 158-mile pipeline that links the Eagle Ford basin to the Agua Dulce Hub in Nueces County, Texas. This pipeline is interconnected with several major systems, including Kinder Morgan’s own Tennessee Gas Pipeline, Kinder Morgan Tejas Pipeline, and the Natural Gas Pipeline Company of America.

STX Midstream also holds a 50% interest in Dos Caminos LLC, a joint venture with Howard Energy Partners (HEP), who manages the operation and owns the other half. Dos Caminos recently launched a 62-mile pipeline, bridging HEP’s existing midstream infrastructure in Webb County, Texas, to Kinder Morgan’s newly operational Eagle Ford pipeline. The portfolio of assets involved in this deal is notable for its long-term stability, featuring an average contract duration of over 8 years. A significant portion, approximately 75%, of the business is underpinned by take-or-pay contracts, ensuring a steady revenue stream.

TotalEnergies has finalized deals to purchase Quadra Energy, a leading German firm owned by the Aloys Wobben Foundation (AWS), marking a significant expansion in the renewable energy sector. Established in 2012, Quadra Energy operates a substantial “virtual power plant” with a capacity of 9 GW, positioning it as one of Germany’s top three renewable energy aggregators. Germany not only has the largest electricity market in Europe but also the fastest-growing renewable energy sector. Quadra Energy’s core business is the aggregation of renewable energy, having procured output from approximately 5,000 wind and solar installations in 2022. It successfully sold 14 TWh of this energy to wholesale markets, German resellers, and direct customers.

Additionally, since 2021, Quadra Energy has been building a portfolio of medium-term agreements for buying 2 TWh of renewable energy, which it then sells through corporate Power Purchase Agreements (PPAs). Pending regulatory approval, this acquisition is set to bolster TotalEnergies’ integrated power operations within Germany. The company plans to capitalize on the expertise of Quadra Energy’s 40-strong workforce and its cutting-edge weather prediction technology. These resources will enhance TotalEnergies’ trading capabilities in the intraday markets and expand its marketing efforts, providing German clients with competitive corporate PPAs and reliable, clean energy. Moreover, Quadra Energy’s comprehensive understanding of the local renewable energy landscape will facilitate TotalEnergies in growing its own renewable energy production, building on its recent acquisition of a 3 GW offshore wind project in July.