Perenco’s offshore subsidiary in the Democratic Republic of Congo (DRC), Muanda International Oil Company (MIOC), has made the first offshore oil discovery in nearly 30 years with the Moke-East well, which revealed a 24-foot net oil-bearing column. Another well, LUKS-A, was abandoned due to insufficient hydrocarbon potential. MIOC continues to drill additional wells to unlock more resources. In Brazil, Perenco acquired the Cherne and Bagre concessions from Petrobras, planning to revitalize these assets and increase production to 10,000-15,000 barrels per day by 2025. This acquisition is part of Perenco’s strategy to extend the life of mature fields and expand its presence in the Brazilian market.

Saipem has secured three contracts worth $3.7 billion from TotalEnergies EP Angola Block 20 for the Kaminho offshore project in Angola. The contracts cover Engineering, Procurement, Construction, Transportation, and Commissioning of the Kaminho Floating Production Storage and Offloading (FPSO) vessel; Operation and Maintenance of the FPSO for 12 years, with an option for an additional eight years; Engineering; Procurement; Supply; Construction; Installation; Pre-Commissioning; and Assistance for the commissioning and start-up of a Subsea; Umbilicals; Risers; and Flowlines (SURF) package. TotalEnergies announced the Final Investment Decision (FID) for the Kaminho deepwater development, expected to start production in 2028 with a peak of 70,000 barrels of oil per day. The project involves converting a Very Large Crude Carrier (VLCC) into an FPSO unit designed to minimize greenhouse gas emissions.
TotalEnergies holds a 40% interest in the project, with Petronas and Sonangol holding 40% and 20%, respectively. Separately, Saipem announced an $850 million contract from Azule Energy Angola S.p.A. for the Ndungu Field development, part of the Agogo Integrated West Hub Project. This contract includes the installation of rigid pipelines and subsea facilities at a depth of around 1,100 meters. Saipem is a global leader in engineering and construction for the energy and infrastructure sectors, operating in over 50 countries with around 30,000 employees.

North America added three rigs week on week, according to Baker Hughes’ latest rotary rig count released on June 28. While the U.S. saw a decrease of seven rigs, Canada added ten, bringing the total North American rig count to 757, with 581 rigs in the U.S. and 176 in Canada. In the U.S., out of the total 581 rigs, 560 are land rigs, and 21 are offshore rigs. The breakdown includes 479 oil rigs, 97 gas rigs, and five miscellaneous rigs. The U.S. rig count consists of 518 horizontal rigs, 45 directional rigs, and 18 vertical rigs. Over the past week, the U.S. saw a decrease of seven land rigs, with the gas rig count dropping by one and the oil rig count by six. The U.S. also reduced its horizontal rigs by seven and vertical rigs by one, while its directional rigs increased by one. Texas dropped five rigs, and both Oklahoma and New Mexico each cut one rig. Canada’s total rig count stands at 176, comprising 116 oil rigs, 59 gas rigs, and one miscellaneous rig. The country added seven oil rigs, two gas rigs, and one miscellaneous rig over the week. Year on year, the North American rig count is down by 84 rigs. The U.S. has driven this decline, reducing its count by 93 rigs, while Canada’s count has increased by nine. Specifically, the U.S. cut 66 oil rigs and 27 gas rigs, whereas Canada added seven oil rigs, one gas rig, and one miscellaneous rig. J.P. Morgan analysts noted in a report sent to Rigzone on June 28 that the rig count in the five major tight oil basins fell by seven rigs, marking the largest weekly drop since August 2023.

The analysts indicated that while improved drilling and fracturing efficiencies allow for production growth with fewer rigs, further sustained reductions in the U.S. oil rig count could materially impact U.S. crude and condensate production by 2025. They projected that without additional efficiency improvements or an increase in the oil rig count, sustained lower drilling activity in the second half of 2024 could reduce the 2025 production forecast by 90,000 barrels per day. Despite these reductions, the analysts still foresee the U.S. contributing 750,000 barrels per day to total liquids supply growth in 2025, accounting for 42 percent of the expected 1.8 million barrels per day increase in non-OPEC+ output. In recent counts, Baker Hughes reported that North America added four rigs in the week ending June 21.
Earlier counts indicated various changes, with some weeks showing increases and others decreases in the number of active rigs. Baker Hughes has been issuing rotary rig counts to the petroleum industry since 1944, providing critical business indicators for the drilling industry and its suppliers.
The company gathers working rig location information partly from Enverus.

TotalEnergies SE is planning to exit its gas-condensate discoveries off the coast of South Africa to prioritize exploration efforts closer to Namibia, according to sources familiar with the matter. The French energy giant invested over $400 million to explore South Africa’s challenging coastal waters, discovering an estimated 1 billion barrels of light liquid hydrocarbon at the Brulpadda field in 2019.

This success was followed by the Luiperd well discovery in 2020. However, neither field has advanced to development. TotalEnergies intends to relinquish the license for Block 11B/12B due to doubts about the commercial viability of these deep-water finds, considering South Africa’s limited gas market, one source said. Instead, the company will focus on the Orange Basin, located further north on the Atlantic coast near promising oil discoveries in Namibian waters. A spokesperson for TotalEnergies declined to comment on the matter. This move could significantly impact South Africa, which lacks domestic oil and gas sources. The potential production from these fields was expected to help reduce the country’s dependence on coal and supply feedstock for PetroSA’s 45,000-barrela-day gas-to-liquids plant, which currently relies on depleted fields nearby. Africa Energy Corp., holding a 20% stake in the discoveries, announced its intention to withdraw from the joint operating agreement, having been informed that TotalEnergies’ local unit is “currently reviewing its options.”

Questions directed to Petroleum Agency South Africa were referred to TotalEnergies. South Africa has faced challenges in bringing oil and gas developments online, hindered by legislative uncertainty and delays in passing a new hydrocarbon law. Additionally, environmental groups have increased efforts to block seismic surveys and related activities planned by Shell Plc and other companies.

Eni SPA has announced plans to divest its non-strategic Nikaitchuq and Oooguruk fields in Alaska to Hilcorp Energy Co. The Italian government-controlled company stated that the transaction value would be disclosed upon closing. The deal is subject to regulatory approvals and customary conditions. Nikaitchuq, Eni’s first operated asset in Arctic waters, began production in January 2011.

Located offshore on the North Slope at a depth of three meters (9.8 feet), the field holds an estimated 200 million barrels of oil. Oooguruk, located approximately five kilometers (3.1 miles) off the North Slope coast, started production in 2008. “This transaction aligns with Eni’s strategy of rationalizing upstream activities by rebalancing its portfolio and divesting non-strategic assets,” Eni stated. The company has reduced its target net capital expenditure for 2024–27 by over 20 percent compared to last year’s plan, aiming to maintain capital costs at UR 7 billion ($7.5 billion) annually during this period. Eni plans to exercise capital discipline through “optimization, improved project quality, and greater portfolio management,” according to a statement released on March 14 outlining strategic targets for 2024–27. Announcing the Alaska sale, Eni emphasized its commitment to delivering a net €8 billion ($8.6 billion) portfolio inflow, front-loaded over the 2024-27 plan.
Proceeds are expected from three main sources: high-grading the upstream portfolio, diluting high equity ownership in exploration discoveries, and accessing new capital pools via Eni’s satellite strategy to support the growth of its transition businesses and confirm progress in value creation.

Bloomberg reported that Eni is considering upstream disposals from its global portfolio to raise EUR 4 billion ($4.3 billion), potentially including operations in Cyprus and Indonesia. The report, citing anonymous sources, suggested that Eni might divest smaller projects attractive to local buyers and consider selling stakes in major projects. Eni could gain between EUR 850 million ($912.3 million) and EUR 1 billion ($1.1 billion) from the sale to Hilcorp and a similar amount by offloading a 30 percent stake in the Ivory Coast. The company anticipates generating about EUR 13.5 billion ($14.5 billion) in cash flow from operations before working capital this year and EUR 62 billion ($66.5 billion) over 2024–27, with a projected upstream production growth rate of three to four percent annually during this period.

OPEC+ has announced an extension of production cuts, surpassing market expectations, to bolster a fragile oil market. Key members like Saudi Arabia and Russia will continue their voluntary cuts well into next year. However, the coalition also plans to gradually increase oil supply starting October, earlier than anticipated, indicating a balancing act between supporting crude prices and easing production restraints.

The agreement aims to maintain market stability, but reactions are mixed, with some analysts seeing bullish impacts while others express concerns about the market’s ability to absorb increased supply. The deal also addresses tensions within the alliance, with the UAE receiving a production boost, resolving a potential rift with Saudi Arabia. Compliance with pledged cutbacks remains crucial, with some members lagging behind, raising questions about the coalition’s ability to manage output levels effectively.

North America’s rig count, as reported by Baker Hughes on May 31, increased by eight rigs from the previous week. While the U.S. count remained unchanged, Canada saw a significant gain of eight rigs, bringing the total rig count in North America to 728, with 600 rigs in the U.S. and 128 in Canada. Of the U.S. total, 578 rigs are land-based and 22 are offshore.

The U.S. rig count comprises 496 oil rigs, 100 gas rigs, and four miscellaneous rigs. Notable changes in specific regions include Louisiana and Pennsylvania adding one rig each, while New Mexico and Oklahoma each dropped one rig. Canada’s total rig count consists of 74 oil rigs and 54 gas rigs, with a decrease of two gas rigs and an increase of 10 oil rigs compared to the previous week. Year-on-year data reveals a decline of 65 rigs in the total North American count, primarily driven by a reduction of 96 rigs in the U.S., while Canada saw an increase of 31 rigs. This latest update is part of a fluctuating trend observed over recent weeks and months, reflecting ongoing dynamics in the drilling industry.

Statistics Norway has increased its forecast for Norway’s oil and gas investments in 2025 by 5.2

percent, totaling NOK 216 billion ($20.5 billion). This adjustment is attributed to higher growth

estimates for field development and exploration. The projection for 2025 suggests a nominal growth

of 19 percent compared to 2024. Production in the Hanz field and upcoming projects in the

Norwegian Barents Sea contribute to this growth. Despite optimism, concerns about future gas

exports to Europe post-2030 persist, prompting a focus on new gas discoveries and potential

expansions in export capacity. Additionally, the Norwegian Energy Ministry is encouraging

exploration in the Barents Sea, doubling production licenses offered in the region for APA 2024.

Cristian Signoretto, the current President of Proxigas, was elected last Friday during the General

Assembly as the President of Eurogas, the Brussels-based Association representing companies in

the gas sector from 28 European countries. Signoretto’s election signifies a significant opportunity

for both the industry and the Italian gas sector, enabling them to bring their extensive experience

and substantial support to shaping European energy policy. Following his Mechanical Engineering

degree from Politecnico di Milano and an MBA from Columbia University in New York, Signoretto

began his career at McKinsey. In 2007, he joined Eni, where he held various key roles in Eni’s Gas &

Power business, eventually becoming the Chief Gas & LNG Marketing and Power Officer. Presently,

he serves as the Deputy to the General Manager of Natural Resources and also as the Director of

the Global Gas & LNG Portfolio at Eni. Since 2022, Signoretto has been the President of Proxigas,

the leading association representing the Italian gas industry.

The Nigerian Content Development and Monitoring Board (NCDMB) recently toured the facilities of

Brightwaters Energy Ltd. (formerly Willbros Nigeria Ltd.), Solewant Nigeria Ltd., and Pipe Coaters

Nigeria to showcase the capabilities of local companies to Shell Petroleum Development Company

of Nigeria. The Board aimed to emphasize the potential of local firms to serve the oil and gas

industry, positioning them as preferable alternatives to international players. The NCDMB assured

stakeholders that service companies and manufacturers with established capacities in Nigeria will

continue to receive patronage through the awarding of contracts. During the visits, NCDMB

Executive Secretary Engr. Felix Omatsola stressed the importance of acquiring first-hand knowledge

of in-country capabilities before making key decisions on oil and gas projects. He insisted that

operating companies must support and patronize local service companies in compliance with the

Nigerian Oil and Gas Industry Content Development Act, according to a press release from the

NCDMB. Scott Gregory, the chief executive of Brightwaters Energy, expressed the company’s goal

of returning to high-performance levels and sought the Board’s support in securing oil and gas

projects. Ernest Nwapa, chairman of Tenaris Nigeria and former executive secretary of the NCDMB,

noted that long-pending oil and gas projects are now moving forward after nearly ten years. He

expressed hope for optimizing existing local capacities in executing these projects. At Solewant

Group, an EPCI and Pipe Coating Company, the NCDMB delegation toured the facilities and

inspected new investments, such as five-megawatt generators, acquired to ensure a stable power

supply to the facility.