ExxonMobil Corp. initiated arbitration proceedings on March 6 to clarify the terms of the joint operating agreement for the Stabroek block offshore Guyana, involving Chevron Corp. and Hess Corp.

This move comes in the wake of Chevron’s announcement last autumn of its intention to acquire Hess for $53 billion, a deal that ExxonMobil contends should trigger its right of first refusal for Hess’s 30% stake in the Stabroek block, which is operated by ExxonMobil and includes participation from China National Offshore Oil Corp. Despite Chevron’s assertion that the right of first refusal does not apply to its acquisition of Hess, ExxonMobil has escalated the matter to the International Chamber of Commerce for arbitration, a process that could extend up to six months, according to ExxonMobil’s Senior Vice-President Neil Chapman.

Speaking at a Morgan Stanley conference on the same day, Chapman emphasized the importance of arbitration to safeguard the value of the Stabroek project for shareholders, expressing confidence in ExxonMobil’s position based on the contract’s language, which the company had a hand in drafting. The news of the arbitration request positively impacted ExxonMobil’s stock, which saw a 1.5% increase to approximately $107 by early afternoon on March 6. Meanwhile, Chevron’s shares experienced a slight rise to around $150, but Hess’s stock fell by about 1% to nearly $145.

Cepsa, in collaboration with Apical Group’s Bio-Oils division, has initiated the construction of what is set to become the largest biofuels production facility in Southern Europe. The plant, boasting a production capacity of 500,000 metric tons annually, will focus on generating renewable diesel and sustainable aviation fuel (SAF). The project represents a significant step in the companies’ transition towards more sustainable energy solutions, with a total investment of 1.2 billion euros, an increase from the initially planned 1 billion euros. This additional funding is allocated for infrastructural enhancements at the adjacent port of Huelva.

Owned by the Abu Dhabi fund Mubadala and the Carlyle Group, Cepsa is channeling up to 8 billion euros into its transformation towards low-carbon energy sources. The establishment of this biofuels plant in Andalusia, Spain, is a key component of this strategy, as stated by CEO Maarten Wetselaar. Utilizing organic waste, including used cooking oils, the facility aims to significantly contribute to Cepsa’s objective of producing 2.5 million tons of biofuels by 2030, with 800,000 tons dedicated to SAF. This initiative is crucial for the decarbonization of challenging sectors like aviation, where electrification remains a complex challenge.

The European Commission has committed up to €370 million in funding to establish a ‘Green Hydrogen Valley’ in the Puglia region of Italy, as announced by participating energy companies.

Edison, Saipem, and Sosteneo, a green investment arm of Generali, revealed that the project has been recognized as a key venture of shared European interest, thereby securing financial support from the European Union. This initiative aims to leverage green hydrogen, generated from renewable energy sources, to phase out fossil fuels in certain high-energy-consuming sectors across the EU, aligning with the bloc’s carbon reduction goals. The project outlines the creation of a 260 MW solar photovoltaic power capacity and a 160 MW electrolysis facility near Brindisi and Taranto for green hydrogen production.

This eco-friendly fuel is intended for use in a direct reduced iron process to lower carbon emissions in Taranto’s major steel plant and several other Italian steel factories. Additionally, Italy’s national grid operator Snam disclosed that its proposal to upgrade and extend pipelines for the hydrogen project in Puglia has also been selected for the EU’s important project list. Snam anticipates the project’s completion by 2028, with an estimated investment of €100 million.

In a surprising move, the Environmental Protection Agency (EPA) announced a shift in its strategy for implementing environmental regulations on fossil fuel power plants, which are responsible for over 60% of the United States’ electricity production. The EPA revealed that while it will proceed with certain aspects of its proposed regulations introduced in May 2023, it will postpone the enactment of measures affecting existing natural gas facilities until later this year or the following year.

EPA Administrator Michael Regan explained that the agency is adopting a holistic approach in its forthcoming standards to reduce climate-related emissions from both existing coal-fired and new natural gas power plants. This comprehensive strategy aims to address a broader spectrum of emissions, including greenhouse gases, toxic substances, and other significant air pollutants.

Eni has announced the successful appraisal of the Cronos-2 well, located in Block 6 offshore Cyprus, which was initially drilled in August 2022 to evaluate the Cronos gas discovery. The production test conducted at Cronos-2 revealed a potential well production capacity exceeding 150 million standard cubic feet per day (MMSCFD), marking a significant step forward in the development of fast-track options for the field. The primary objective of drilling Cronos-2 was to verify the extent of the Cronos gas discovery, initially made by the Cronos-1 exploration well situated approximately 3 kilometers away.

The appraisal well confirmed the presence of a consistent carbonate reservoir sequence, identical to that encountered in Cronos-1, demonstrating effective hydraulic connectivity and a substantial gas column with high-permeability zones. The operation was carried out using the Transocean Barents semi-submersible rig. In addition to comprehensive data gathering, Cronos-2 underwent an extensive production testing phase, which underscored the discovery’s robust gas production capabilities.

Cronos-2 represents the fourth exploration well drilled by Eni in Block 6, following the Calypso gas discovery in 2018 and the subsequent discoveries of Cronos and Zeus in 2022. The swift drilling of Cronos-2 after the Cronos discovery underscores the commitment of Eni and its partner TotalEnergies to rapidly identify the most effective and economically feasible development strategy. This strategy aims to enhance gas supplies to Europe and the surrounding region. Eni has been operating in Cyprus since 2013 and holds a 50% interest in Block 6, with TotalEnergies as its partner.

Allseas’s flagship vessel, the Pioneering Spirit, has successfully completed the infield pipelaying work for BP’s ambitious GTA liquified natural gas project, situated in the ultra-deep waters off the coasts of Mauritania and Senegal. Just two months after its arrival at the project site, the vessel’s production team accomplished the welding, scanning, and coating of the final segment for the second 16-inch gas export pipeline. The pipeline was precisely positioned within a 2-meter accuracy box at a depth of 2400 meters. The next phase involves lifting the pipeline in a J-mode configuration to attach the end assembly, facilitated by a custom-built J-mode frame on the vessel’s stern, capable of handling a 1000-tonne load.

This frame, a testament to Allseas’s proactive and solution-oriented approach, was designed, constructed, and mounted on the Pioneering Spirit in a mere eight weeks by the company’s engineering and fabrication divisions. The project’s pipelaying component includes around 75 kilometers of 16-inch export pipelines and 10 kilometers of 10-inch CRA infield pipelines, with parts extending down to depths beyond 2700 meters. To achieve the ambitious production targets set by Allseas, the Pioneering Spirit’s main firing line and double jointing facilities were operated simultaneously throughout the project. The vessel is set to finalize the offshore operations by installing six remaining flowline termination assemblies, marking the completion of a significant phase in the GTA project.

Baker Hughes, a leader in energy technology, has been awarded a significant contract by Petrobras to provide comprehensive well construction services for the Buzios field, located offshore Brazil.

This extensive project is scheduled to commence in the first half of 2025 and will encompass a wide array of services including drilling, the supply of drill bits, wireline operations, cementing, wellbore cleaning, fishing, the provision of remedial tools, fluids, services, and geosciences expertise. Baker Hughes is set to deliver these services utilizing three rigs throughout the duration of this multi-year agreement. In the initial phase of the Buzios field’s development, Baker Hughes has already played a pivotal role by supplying cutting-edge technology and equipment.

The company’s contributions extend beyond drilling, completions, and wireline services; it has also provided WAG (water and gas) manifolds and over 240 kilometers of flexible pipes. These pipes, designed for production lines, gas lift, water injection, and gas injection, are suitable for depths of up to 2,000 meters. Furthermore, Baker Hughes has equipped 10 out of the 11 Floating Production, Storage and Offloading (FPSO) units in the field with advanced turbomachinery, including turbo generators, motor compressors, and turbo compressors, along with systems for condition monitoring, fault detection, and protection of critical machinery.

TotalEnergies, in collaboration with its consortium partners, has initiated production at the Akpo West field within the PML2 license offshore Nigeria. Situated 135 kilometers from the coastline, the Akpo West field is integrated with the pre-existing Akpo Floating Production Storage and Offloading (FPSO) unit, which has been operational since 2009 and reported an output of 124,000 barrels of oil equivalent per day in 2023. By the middle of 2024, it is anticipated that Akpo West will contribute an additional 14,000 barrels of condensate daily, with expectations to further increase by up to 4 million cubic meters of gas daily by 2028.

The development strategy for Akpo West capitalizes on the established infrastructure of the Akpo facilities to optimize cost-efficiency and reduce environmental impact. The project is designed with a low carbon footprint in mind, projecting a carbon intensity of less than 5 kg CO2 equivalent per barrel of oil equivalent (CO2e/boe), aligning with TotalEnergies’ commitment to lowering the carbon intensity across its portfolio. TotalEnergies leads the operation of the PML2 license, holding a 24% stake, alongside its partners CNOOC with a 45% interest, Sapetro owning 15%, Prime 130 with 16%, and the Nigerian National Petroleum Company Ltd, which acts as the concessionaire for the Production Sharing Contract (PSC).

The Joint European Torus (JET), situated within the Culham Centre for Fusion Energy in Oxfordshire, UK, stands as one of the globe’s most formidable fusion reactors, having recently showcased its capability to produce fusion energy with remarkable consistency. This achievement is further highlighted by the establishment of a new global benchmark in energy production. These significant feats mark a pivotal advancement in the realm of fusion science and technology.

During its latest series of deuterium-tritium experiments, known as DTE3, JET achieved sustained high levels of fusion power over a duration of 5 seconds, culminating in an unprecedented energy yield of 69 megajoules from a minimal fuel input of just 0.2 milligrams. The reactor’s design, known as a tokamak, employs intense magnetic fields to contain plasma in a toroidal, or doughnut-like, configuration. This method is widely favored in the pursuit of commercial fusion energy and relies on the fusion of deuterium and tritium. This process generates helium and a significant energy output, laying the groundwork for the operational principles of future fusion power plants.

The experiments drew upon the collective expertise of over 300 scientists and engineers from EUROfusion, a collaborative network of European researchers, who convened at the UK Atomic Energy Authority (UKAEA) facility in Oxford. This collaborative effort underscores the exceptional commitment and proficiency of the international team working at JET, driving forward the frontiers of fusion research.

Helmerich & Payne has confirmed finalizing the contractual details with Saudi Aramco for a recent tender involving seven rigs. These high-performance rigs have secured five-year contracts, with an option to extend for an additional year, and are slated to begin operations soon after their delivery, primarily expected in the last quarter of 2024.

Following a similar pattern to the single-rig contract awarded by Saudi Aramco in August 2023, these rigs will be adapted from H&P’s currently idle highspec FlexRigs in the U.S. Throughout fiscal 2024, the company intends to modify these rigs into walking configurations and upgrade them to meet the specific requirements for Saudi Aramco’s unconventional gas drilling operations.