June’s top news stories

8 July 2019 (Last Updated August 3rd, 2020 12:08)

Lukoil acquires a 25% stake in Marine XII licence for $800m, the JV of Reliance and BP has decided to develop the third gas project off east coast of India. Offshore-technology.com wraps up the key headlines from June 2019.

June’s top news stories
Reliance and BP to develop the MJ deep-water gas field in Bay of Bengal. Credit: bigday from Pixabay.

Lukoil enters Republic of Congo project for $800m

Russian oil and gas company Lukoil acquired a 25% interest in the Marine XII licence offshore the Republic of Congo for $800m.

The company signed a sale and purchase agreement with African energy company New Age through its subsidiary New Age M12 Holdings. New Age plans to use the proceeds from this transaction to strengthen its balance sheet and redeploy into opportunities at earlier stages in its African portfolio, including the adjacent Marine III licence.

The Marine XII licence is located on the Congolese continental shelf 20km offshore, covering 571km² in water depths of 20m-90m. The licence covers five discovered fields, with proved and provable resources of 1.3 billion barrels of oil equivalent.


Reliance-BP JV to develop third offshore gas project in India

The joint venture (JV) of Reliance Industries and BP has decided to develop the third gas project off the east coast of India in the Bay of Bengal.

The two companies approved the development of the MJ deep-water gas field, one of the three projects in Block KG-D6.

The approval follows sanctions for the development of R-Series deepwater gas field in June 2017 and Satellites cluster in April last year.


Trump administration sued for rolling back offshore safety regulations

A coalition of ten environmental groups is suing the Trump administration for rolling back offshore safety regulations in the US.

They are taking this legal action in response to the weakening of the Well Control and Blowout Preventer Rule, established in 2016 in the aftermath of the 2010 Deepwater Horizon disaster in the Gulf of Mexico.

The rule requires upgrades to drilling practices and technologies, regular tests of safety equipment and inspectors completely independent from the oil and gas industry.


Inpex signs agreement for $20bn Abadi LNG Project

Inpex signed heads of agreement (HOA) for the $20bn Abadi LNG Project, which involves developing the Abadi gas field in the Masela Block located in the Arafura Sea in Indonesia.

The agreement was signed with Indonesian authorities on behalf of the contractors with the endorsement of Shell Upstream Overseas on the basic principles with regard to a revised plan of development (POD) for the project.

Inpex president Takayuki Ueda told reporters that the HOA includes an extension of the company’s contract to operate the Masela field by 27 years until 2055. As part of the project, onshore LNG plant, gas pipeline, and offshore facilities will be constructed.


GM Flow develops automated technology for offshore flow measurement

Scottish start-up GM Flow Measurement Services developed an automated technology to accurately and safely measure and analyse flow data on offshore installations.

The products developed by the Aberdeenshire-based start-up secured the support of Scottish Enterprise and the company is gearing up for growth after completion of field tests.

The new technology is based around two metering products, which are claimed to be safer, more robust and more accurate than others currently on the market. In addition to eliminating the need for manual intervention and costly production shutdowns, the meters have a smaller footprint, saving space on the well site.


BMT and Sonardyne to supply mooring system for deepwater project

BMT and Sonardyne were selected by Sofec to supply a new mooring monitoring system (MMS) for a deepwater development, offshore Mozambique.

The system will involve monitoring of the turret mooring system on a new-build floating liquefied natural gas (FLNG) facility which is being built in South Korea for ENI’s Coral South project located offshore Mozambique.

Sofec aimed to integrate an MMS with water depths ranging from 1,500m to 2,300m to complement its turret mooring solution. The company plans to use the combined engineering strength of BMT and Sonardyne to acquire the technically competent MMS.


W&T Offshore to acquire ExxonMobil’s oil and gas assets in GOM

W&T Offshore signed an agreement to acquire ExxonMobil’s interests in and operatorship of oil and gas producing assets in the eastern region of the Gulf of Mexico (GOM) offshore Alabama for $200m.

The acquisition will also include ExxonMobil’s onshore processing facilities.

W&T Offshore will buy working interests in shallowwater-producing fields and related operatorship in the Mobile Bay area. All the properties are located close to existing properties owned and operated by the company.


BP to sell interests in Egyptian oil assets to Dragon Oil

BP signed an agreement to sell its interests in Gulf of Suez oil concessions in Egypt to Dragon Oil, a wholly owned subsidiary of Emirates National Oil Company (ENOC).

Under the terms of the agreement, Dragon Oil will buy producing and exploration concessions, as well as BP’s stake in the Gulf of Suez Petroleum Company (GUPCO).

The financial details of the deal were not revealed. However, Reuters reported last month that the prospective deal may value $600m, citing familiar sources.


Total takes over Toshiba’s LNG portfolio

French oil and gas company Total agreed to take over Japanese multinational Toshiba’s portfolio of liquefied natural gas (LNG) projects.

This transaction includes a 20-year agreement for 2.2 million tonnes per annum (Mtpa) of LNG from the Freeport LNG Train 3 in Texas, as well as corresponding gas transportation agreements feeding the terminal. Train 3 is expected to start commercial operations by the second quarter of 2020.

Total will acquire all the shares of Toshiba America LNG for a $15m consideration and be assigned all contracts relating to Toshiba Energy Systems and Solutions’ LNG business for a $815m consideration from Toshiba.


INEOS invests $2bn in Saudi Arabia

UK-based chemicals multinational INEOS partnered with French oil and gas company Total and state-owned Saudi Aramco to build three chemicals plants in Saudi Arabia.

The companies signed a memorandum of understanding to develop the Jubail 2 complex, which will host INEOS’s first ever plants in the Middle East.

These developments consist of a 425,000t acrylonitrile plant, a 400,000t linear alpha olefin (LAO) plant and an associated polyalphaolefin (PAO) plant. All three plants are expected to start production in 2025.