The government says permission to drill will be granted as part of a careful transition away from fossil fuels, safeguarding jobs and the economy. But the environmentalists say that the government should refuse the new licences as there are enough fossil fuels to ruin the climate.
However, according to ministers, the strategy will be work. Oil&gas will face targets to reduce emissions by 10% by 2025 and 25% by 2027. It is also committed to cut emissions by 50% by 2030. It will be helped by joint government and private investment of up to £16bn by 2030.
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.

LUKOIL will build a Petroleum Residue Recycling Facility at its Nizhny Novgorod refinery. Construction is already underway. The facility is set for commissioning in the fourth quarter of 2021. The project should allow to decrease annual fuel oil output at the Nizhny Novgorod refinery by 2.6 million tonnes and increase annual Euro-5 diesel fuel output by 0.7 million tonnes. The refinery yield will thus increase to 97%, with light products yield reaching 74%. Implementation of the project will lower LUKOIL Group’s total fuel oil output to less than 4% and increase light products yield to 75%.

Qatar could be set for a “boom” in new gas investments across the coming years, says an industry analyst. This comes after much of the nation’s attention over the past decade has been focused on preparations for hosting the FIFA World Cup in 2022, with a range of key infrastructures – such as stadiums, airports, metro lines, and leisure and hospitality facilities – being developed in recent years. Qatar wants to attract more sports companies to the Gulf state, aiming to develop a $20 billion sports sector ahead of the 2022 World Cup.

According to the independent oil&gas consulting and business intelligence data firm Rystad Energy, after a challenging 2020, around 54,000 oil and gas wells will be drilled around the world in 2021.
The efforts for the vaccination against Covid and the cuts to the OPEC+ supply are supporting the recovery in demand for oil and gas and are proving positive for drilling activity. With regards to 2022 instead, drilling is expected to increase even more, by another 19% on an annual basis to about 64,500 wells, although the activity will still be less than the 73,000 wells drilled in 2019. Onshore drilling should increase by 12% from 46,000 wells drilled in 2020 to about 51,700 wells in 2021.
Regarding offshore drilling, Rystad Energy previews that perforation activity will increase of around 10% in 2021. This will bring the number of offshore wells drilled from less than 2300 to nearly 2500 this year.

The U.S. State Dept. has warned all companies participating in the completion of the controversial gas pipeline Nord Stream 2, to stop immediately works on the project or face sanctions. The US believes the project to be a Russian plan to “divide Europe and weaken European energy security”.
USA said it is monitoring and assessing information about companies doing work on the project. According to a State Dep. Statement, “Any entity involved in the Nord Stream 2 pipeline risks US sanctions and should immediately abandon work on the pipeline.

Mexico announced it will begin the building of Cuxtel 1, a 16 kilometre pipeline that will supply natural gas to the Yucatan region, comprising the states of Campeche and Quintana Roo, to produce cheaper electricity. The $25 million project will be built by the multinational electric utility company Engie. Currently, Yucatan generates power at five plants with natural gas from Nuevo Pemex, a processing centre in neighbouring Tabasco owned by the State oil company. With more gas supply allowing the Peninsula to generate more electricity locally, a reduction in transmission constraints may significantly lower power prices. At first stage, Cuxtal I will connect to the national system Sistrangas with the 780 kilometre long Mayakan pipeline (also owned by Engie). The future plan is to extend the pipeline for another 158 kilometres to take gas to the Cancun area.

After a number of hearings during the past three years, the court of Milan has acquitted oil companies Shell, Eni, along with the latter’s chief executive of wrongdoing in a corruption case centred on a Nigerian offshore oil field. In fact, according to court documents, the money was received by a Nigerian company owned by a former oil minister. From there, the money was paid out in kickbacks that funded a variety of purchases by Nigerian nationals. The origins of the case go back to 2011. At that time, Shell and Eni settled a huge exploration lease dispute, paying the Nigerian government $1.3 billion via an escrow account overseen by J.P. Morgan Chase. The Nigerian government then transferred $875 billion of the funds to a company controlled by former Nigerian oil minister Dan Etete (who was convicted money launderer). However, the court has reached a different conclusion finding that the firms and the named executives were not guilty.

Petrogas E&P Netherlands B.V. has awarded a one-well contract for the harsh-environment jack-up rig Maersk Resolute. The contract will commence next month and calls for performing well maintenance and drilling a side-track of the A9 well at the P9 Horizon field in the Dutch North Sea.
The drilling contractor stated the approximate value of the award is US$4.5 million, and it estimates a 45-day contract duration. Maersk Drilling’s chief operating officer, Morten Kelstrup, remarked: “We’re happy to add this contract for Petrogas which will bring Maersk Resolute back to work on an extreme extended reach well at P9 Horizon, which the rig originally completed in the autumn of 2019,”.

US oil major Chevron CEO Michael Wirth has pledged to raise its low-carbon spending to more than $3bn by 2028 while holding investment in oil and gas production flat amid growing shareholder pressure to make its business green and boost flagging returns. Wirth said during the annual investor meeting that it would power more of its operations with renewables, slash methane emissions from its shale operations and invest more than $1bn to capture and store carbon from its plants as part of an effort to clean up its oil and gas business. At the same time, it said it would hold capital expenditure on new oil and gas projects to about $14bn to $16bn a year through 2025.

Oil giant Eni announced new oil discovery through Var Energi in the Barents Sea. According to the company: “Eni through Var Energi, jointly owned by Eni (69.85%) and by HitecVision (30.15%) announces a new oil discovery in production license PL532 in the Barents Sea by drilling the exploration well 7220/7-4 on the Isflak exploration prospect. Var Energi AS holds a 30% stake in the licence, while Equinor Energy (which is the Operator) holds 50% and Petoro AS 20%,” the company said in a statement. The well is situated approximately 10 km southwest of the Skrugard discovery and 230 km northwest of Hammerfest in a water depth of 349 m. It was drilled with the semisubmersible drilling rig Transocean Enabler,”. The discovery is estimated to contain between 65-100 million barrels of oil.