China’s Bomesc Offshore Engineering Company has inked a $220 million agreement to participate in an offshore oil and gas project in Qatar with Servizi Energia Italia, a subsidiary of Saipem, the Italian multinational oil field services provider. This move underscores China’s growing interest in Middle Eastern energy endeavors. The Tianjin-based engineering, procurement, and construction firm will be responsible for constructing the compression facility for an oil and gas field situated off the northern coast of Qatar on behalf of Servizi Energia Italia, an industrial machine manufacturer. This deal aims to enhance Bomesc’s economic performance in the coming years, as reported by the Chinese state-owned financial news agency, Yicai Global. In October of the previous year, Saipem disclosed that it had secured a $4.5 billion contract with Qatargas (now QatarEnergy). According to the terms of the contract, Saipem will lead the engineering, procurement, fabrication, and installation of two offshore natural gas compression complexes off the northeast coast of Qatar.

This agreement stands as Saipem’s “largest single offshore contract by total value in the company’s history,” as stated in the October 2022 press release. Bomesc has experienced a 42% decrease in earnings for the first half of the year, amounting to 900 million yuan ($125 million). This drop is attributed to supply chain challenges, a lack of orders, and high labor costs, as noted by the energyfocused online news platform, Upstream. Bomesc, alongside other Chinese energy companies, has exhibited a strong interest in the Middle East, particularly in Qatar, as part of their efforts to regain profitability within the energy and LNG sector. QatarEnergy, Qatar’s majority-state-owned petroleum company, previously entered into a 27-year agreement with the China National Petroleum Corporation in June to supply 4 million tons of LNG annually. In April, the Chinese oil giant Sinopec acquired a stake in Qatar’s North Field East, which has an annual capacity of 8 million tons, according to the Qatar News Agency. Qatar has expressed its intent to sign a record volume of long-term LNG contracts and is looking to engage with Asian countries to achieve this goal, according to a statement made by Energy Minister Saad al-Kaabi in July. Qatar is already one of the world’s leading LNG exporters and has set a target of supplying 40% of the world’s LNG output by 2029.

Affiliates of QatarEnergy and TotalEnergies have entered into two long-term LNG sale and purchase agreements (SPAs) for the supply of up to 3.5 million tons per annum (MTPA) of LNG from Qatar to France. According to these agreements, LNG shipments will be transported by ship to the Fos Cavaou LNG receiving terminal in southern France, and deliveries are set to commence in 2026, spanning a 27-year term.

The LNG volumes will be drawn from joint ventures between QatarEnergy and TotalEnergies, which have stakes in Qatar’s North Field East (NFE) and North Field South (NFS) projects.

A significant achievement in energy security has been reached as the world’s largest offshore wind farm, Dogger Bank, generates its first power. Dogger Bank is now linked to the United Kingdom’s national grid, providing electricity to British homes and businesses for the very first time. This marks a substantial milestone in the development of the industry and the transition toward a cleaner and more reliable energy system. The 3.6 GW Dogger Bank Wind Farm is located 70 nautical miles (approximately 130 kilometers) off the coast of Yorkshire in UK waters, within the North Sea. It is divided into three phases, each with a capacity of 1.2 GW, known as Dogger Bank A, B, and C. At Dogger Bank A, the first turbine has begun to turn and generate electricity. The power generated by this offshore wind farm is now being transmitted to the UK’s national grid through Dogger Bank’s high-voltage direct current (HVDC) transmission system, marking the first use of HVDC technology in a UK wind farm. The production of the first power followed the installation of GE Vernova’s Haliade-X 13 MW turbines, among the largest and most powerful globally, at the Dogger Bank site.

This is a groundbreaking achievement as it represents the first offshore energization of Haliade-X units anywhere in the world. Each rotation of the 107-meter long blades is capable of generating enough energy to power an average British home for two days. Equinor, the lead operator during the operational phase of the wind farm, will be responsible for maintaining and operating Dogger Bank throughout its anticipated 35-year lifespan. Operations and maintenance activities will be conducted from the recently established O&M base at the Port of Tyne, creating around 400 jobs, including personnel from the Dogger Bank Wind Farm, Equinor, GE Vernova, and North Star.

Petrofac Inc. and Saipem SpA have been awarded a contract to aid in the decommissioning of a platform situated in the UK region of the North Sea. In accordance with the contract, the duo will form a unified team to ready and dismantle the 20,000-metric-ton topside using the Saipem 7000, known as one of the world’s largest semi-submersible heavy lifting vessels, as mentioned by Petrofac in a press release on Monday. Although the exact figures of the contract remain undisclosed, it was described as a multimillion-pound agreement by the energy service provider. Petrofac has outlined a two-phase, three-year plan for this project. The initial phase entails preparations on the platform, while the second phase will see the actual removal activities carried out on the Saipem 7000. Petrofac’s role encompasses module separation, lift point examination, lift point setup, riser, and caisson cutting. Nick Shorten, COO of Petrofac Asset Solutions, emphasized the significance of decommissioning as a stepping stone toward cleaner energy alternatives. By collaborating with Saipem and their client, Petrofac aims to utilize its two decades of decommissioning expertise and familiarity with North Sea operations to ensure a safe and predictable operation, which could potentially serve as a benchmark for the North Sea’s transition.

Moreover, Petrofac has earned a three-year contract extension, valued over $100 million, to continue supporting Repsol Sinopec Resources UK’s North Sea ventures. This extension, announced in an earlier press release, covers operations and maintenance services. Since its initial engagement by Repsol Sinopec in 2016, Petrofac’s workload has expanded steadily, securing contracts for six more North Sea assets in 2020. Shorten acknowledged the evolving partnership with Repsol Sinopec, adapting to new challenges and operational contexts. The contract extension reflects the dedication and effort to maintain safe and effective operations, looking forward to ongoing cooperation and engagement across Repsol Sinopec’s North Sea assets. The contract encompasses services for a variety of assets including Arbroath, Auk, Bleo Holm, Claymore, Clyde, Fulmar, Montrose, Piper, Saltire, and Tartan assets in the North Sea, with additional support extended to Flotta Oil Terminal and Nigg Oil Terminal.

Westinghouse Electric Company has unveiled a new design and manufacturing hub situated near downtown Pittsburgh, aimed at expediting the commercial rollout of the eVinci microreactor. This past June saw Westinghouse setting up eVinci Technologies LLC, a distinct business division within the firm, to ensure a smooth transition of the microreactor to the marketplace. Nestled in Etna borough, the eVinci accelerator occupies an expansive 87,000 square-foot area, becoming the focal point for engineering, licensing procedures, testing phases, prototype evaluations, along with business growth and sales ventures. The facility also houses manufacturing zones dedicated to the production of the revolutionary heat pipes, a core element of the eVinci technology, among other components. Initiated earlier this year, the construction activities on the premises are slated for completion by the first quarter of 2024.

The state of Pennsylvania has extended financial support in the form of economic development grants to the initiative, aligning with its broader objective of fostering innovation and job creation. On the federal front, the Department of Energy (DOE) sustains its backing of the eVinci technology via its Nuclear Energy and Advanced Research Projects Agency (ARPA-e) channels. Alongside federal awards and strategic governmental alliances with Idaho National Laboratory and Los Alamos National Laboratory, Westinghouse is propelling forward the design, licensing, and manufacturing aspects of the eVinci microreactor. The choice of Etna as the location was influenced partly by its closeness to globally recognized academic institutions that are collaborating with Westinghouse on this novel technology. These include Carnegie Mellon University, Penn State – New Kensington, and the University of Pittsburgh.

In Q3 2023, Baker Hughes reported orders totaling $8.5 billion, marking a 14% rise sequentially and a 40% increase year-over-year. The company’s adjusted net income reached $716 million, up 13% sequentially and 42% year-on-year. Baker Hughes’ Chairman and CEO, Lorenzo Simonelli, expressed satisfaction with the quarterly performance, citing optimism for the future despite global economic challenges. Strong order performance was observed in both the Industrial & Energy Technology (IET) and Oilfield Services & Equipment (OFSE) segments, with notable awards from Venture Global in the Liquefied Natural Gas (LNG) sector and Vår Energi in subsea operations. The resilience in oil demand and production cuts have bolstered oil prices, leading to expectations of inventory reductions throughout 2023. Key factors to monitor heading into 2024 include the discipline among major producers, the rate of oil demand growth amidst economic uncertainty, and geopolitical risks.

Moreover, the global LNG market remains tight, as evidenced by recent price surges due to conflicts in the Middle East and strikes by LNG workers in Australia temporarily halting operations at several facilities. The demand for LNG in 2023 is projected to near 410 million tons per annum (MTPA), a 2% increase from the previous year. With a global nameplate capacity of 490 MTPA anticipated this year, effective utilization is likely to exceed 90%, historically indicating a tight market. Consequently, the pipeline for LNG projects remains robust both domestically and internationally, concluded Simonelli.

Equinor, acting on behalf of the partnership, has formally submitted a Plan for Development and Operation (PDO) for the Eirin gas field to the Ministry of Petroleum and Energy. The Eirin field holds estimated recoverable reserves of 27.6 million barrels of oil equivalent, primarily consisting of natural gas. This field, initially discovered in 1978, will undergo development as a subsea facility, connected to the Gina Krog platform in the North Sea. The total anticipated investment for this endeavor stands at slightly over NOK 4 billion in 2023 currency. A noteworthy aspect of this project is the increased gas export from the Gina Krog platform, achieved by exporting gas that had previously been injected to enhance oil recovery. However, this necessitated an acceleration of projects aimed at extending the field’s operational life, with Eirin emerging as a pivotal component of these efforts. Impressively, the project has undergone rapid maturation, and production commencement is anticipated as early as 2025.

Situated 250 kilometers west of Stavanger, Eirin is a gas field that was originally proven in 1978 and was initially included in the Gina Krog field development plans before being deferred. It is located at a depth of approximately 4,000 meters, with a water depth at the field site measuring around 120 meters. The development strategy for Eirin entails the establishment of a subsea facility designed to accommodate and facilitate tie-ins for potential future discoveries in the vicinity, including the option for expansion with two to four additional wells. The chosen development solution involves a subsea template linked to the Gina Krog platform through a production flowline and an umbilical connection.

ExxonMobil has unveiled an ambitious plan to achieve net-zero greenhouse gas emissions from its operated assets in the U.S. Permian Basin by 2030. This move represents a significant acceleration and expansion of their emission-reduction efforts for unconventional operations in both New Mexico and Texas. These actions are integral to the company’s broader corporate commitment to reduce greenhouse gas emissions intensity in its Upstream operations by 40-50% by 2030, compared to 2016 levels. Key Highlights: Net-zero objective aligns with ExxonMobil’s strategy to reduce greenhouse gas emissions intensity. Commitment to eliminate routine flaring in Permian Basin operations by the end of 2022. Electrification of operations in New Mexico and Texas to include low-carbon power sources. Expanded and accelerated efforts in methane monitoring, equipment upgrades, and flaring reduction. ExxonMobil’s efforts to reduce greenhouse gas emissions in the Permian Basin will involve several strategies, including the electrification of operations, continued investments in methane mitigation and detection technology, the elimination of routine flaring, equipment upgrades, and the utilization of emissions offset technology, potentially including nature-based solutions.

The company plans to power its operations with low carbon energy sources, which may encompass wind, solar, hydrogen, natural gas with carbon capture and storage, and emerging technologies. Additionally, ExxonMobil intends to expand its methane detection programs through satellite surveillance, ground-based sensors for continuous monitoring, and aerial flyovers to quickly identify and repair leaks. ExxonMobil anticipates a reduction in flaring volumes of over 75% across its Permian Basin operations by the end of 2021 compared to 2019 levels. The company is committed to completely eliminating routine flaring in the Permian by the close of 2022, aligning with the World Bank’s Zero Routine Flaring initiative. To further minimize non-routine flaring, ExxonMobil is securing alternative natural gas delivery points across the basin. ExxonMobil acknowledges that achieving its 2030 net-zero goal in the Permian Basin will necessitate well-designed policies and advancements in technology to enhance the availability and reliability of carbon-neutral power sources such as wind and solar. Through longterm purchase contracts, the company is actively supporting the development of wind and solar power generation. As of the end of the third quarter in 2021, ExxonMobil reported an average daily production of 500,000 barrels of oil equivalent from its unconventional assets in the Permian Basin, representing over 40% of the company’s U.S. net production. As production continues to rise in the Permian, greenhouse gas emissions are expected to decrease accordingly. The costs associated with lower-emissions technology are incorporated into the corporate plan through 2027, as previously announced earlier this month.

BP has entered into a Memorandum of Understanding (MoU) with Subsea Integration Alliance with the aim of enhancing the performance of subsea projects. This agreement, forged with the partnership of Subsea7 and OneSubsea, a subsidiary of Schlumberger, will leverage the collective expertise, knowledge, and experience of these three entities across a diverse global project portfolio.

The MoU will harness BP’s proficiency in project conceptualization, construction, and execution, combining it with the Alliance’s capacity to deliver comprehensive subsea production systems (SPS) and subsea umbilical, riser, and flowline (SURF) systems. Collaboratively, they will work across all phases of project development, from initial concept to the full-field lifecycle, promoting project delivery through novel methodologies and an innovative commercial framework. A dedicated team will be established to oversee and manage program activities, placing a strong emphasis on safety, quality, and optimizing subsea project performance. The MoU was officially signed during a ceremony in London on September 22, 2023.

The secretary-general of the Organization of the Petroleum Exporting Countries (OPEC) has indicated that the influential alliance of producers is actively seeking new members. When asked about expanding the OPEC coalition, Haitham al-Ghais, the secretary-general, confirmed during a press conference on Wednesday, “Yes, we are.” Currently, the group consists of 13 members, primarily located in the Middle East, North and West Africa, and South America. The organization of oil producers faces the challenge of reconciling expectations of a tighter crude oil supply in the second half of the year with ongoing concerns about the macroeconomy and inflation. OPEC members coordinate their oil production levels to influence prices. Ecuador left the group in 2020 due to political circumstances but was invited to rejoin OPEC in May, as stated in a letter from al-Ghais shared by the Ecuadorian Energy Ministry. “The organization considers it a top priority for Ecuador to rejoin the OPEC family,” the letter stated. The response from the Ecuadorian ministry has not been disclosed.

Al-Ghais declined to disclose the names of potential new members. However, he mentioned recent visits to oil-producing countries, including allies that are part of the OPEC+ group, which implements a joint production strategy with OPEC countries. “I visited Malaysia and Brunei,” he mentioned, emphasizing that he did not necessarily invite these countries to join the organization. “I also visited Azerbaijan and Mexico.” OPEC previously clarified in late June that although there has been speculation about Guyana’s potential membership, the South American country had not received an invitation to join, although it is recognized as an emerging player in the international oil market. When asked about the requirements for becoming an OPEC member, al-Ghais explained, “They need to be a substantial net oil exporter and share similar goals with OPEC. These criteria are clearly outlined in our statute. Many of the countries I mentioned earlier actually fit this profile. So, it’s a work in progress.”