E&P Highlights: Sept. 30, 2024

From LNG vessels to updates after frame agreements, below is a compilation of the latest headlines in the E&P space.

Activity headlines

Petronas Awarded Third Concession in Abu Dhabi

Abu Dhabi’s Supreme Council for Financial and Economic Affairs (SCFEA) granted Petronas a new oil and gas exploration concession in Abu Dhabi’s onshore Block 2.

Under the agreement announced Sept. 26, Petronas Abu Dhabi will hold 100% equity and assume operatorship during the exploration period.

Onshore Block 2, located within the Al Dhafra region of Abu Dhabi and covers an area of over 7300 sq km, is Petronas Abu Dhabi’s third concession, following the unconventional Block 5 in 2024 and the unconventional Block 1 in 2022.

Contracts and company news

TGS, Aker BP Partner in Digitalization of the Yggdrasil Area

TGS has signed a strategic partnership with Aker BP to help digitalize the operations of the Yggdrasil oil and gas area in the North Sea, the company announced Sept. 30.

Aker BP will integrate TGS’ Prediktor Data Gateway into their digital ecosystem for Yggdrasil as a process data server. Prediktor Data Gateway will optimize work processes and enhance operational efficiency through real-time data. With the Prediktor Data Gateway, Aker BP can achieve greater control, leveraging OT system data for improved decision-making.

Prediktor Data Gateway is designed to adapt to the specific needs of Yggdrasil, providing scalable solutions that can grow with Aker BP’s needs.

MET Group to Build Its First LNG vessel

Swiss-based MET Group reached a partnership agreement with Celsius Tankers to build MET’s first LNG vessel, the company announced Sept. 30.

The LNG carrier will be constructed by China Merchants Heavy Industry (Jiangsu) and is scheduled to be delivered in 2027. The purchase of the vessel supports MET Group’s strategy to enhance its ability to supply its customers with LNG from various sources.

MET recently signed an agreement with Shell to purchase U.S. LNG over a period of 10 years starting in 2027.

Golar Issues Notice to Proceed to CIMC Raffles and Black & Veatch on Golar MK II FLNG Project

On Sept. 30, CIMC Raffles gave subcontractor Black & Veatch permission to proceed on the Golar MK II FLNG project.

Under the agreement with CIMC, Black & Veatch will provide its licensed PRICO technology, perform engineering design, procure topside equipment and provide commissioning support for the floating LNG (FLNG) topsides and liquefaction process. The topside modules will be constructed and installed by CIMC Raffles onto the converted LNG carrier.

The MK II FLNG vessel will have a production capacity of about 3.5 million tons per annum (mtpa) and is expected to be delivered in the fourth quarter of 2027.

DeepOcean Signs Frame Agreement with Large UK Operator

An unnamed operator in the U.K. awarded DeepOcean with a long-term frame agreement, the company announced Sept. 25. The contract is for the provision of diverless subsea inspection, maintenance and repair (IMR) services on the U.K. continental shelf.

The frame agreement is valid for a firm five-year period, plus five optional periods of one-year each, maximum ten years in total. The agreement covers subsea IMR work on the U.K. continental shelf for which DeepOcean will also provide associated project management and engineering support.

DeepOcean will manage deliveries under the frame agreement from its office in Aberdeen, U.K.

Regulatory updates

BSEE Provides Final Update Following Hurricane Helene

The Bureau of Safety and Environmental Enforcement (BSEE) provided on Sept. 29 its final update on oil and gas operations in the Gulf of Mexico (GoM) following Hurricane Helene.

From operator reports, BSEE estimates approximately 3.35% of the current oil production and 0.91% of the current natural gas production in the Gulf of Mexico is shut-in. BSEE also confirmed that only 0.91% of natural gas production in the offshore region is closed, less than the 17% reported Sept. 26. 

Based on offshore operator data, personnel have been evacuated from only three of the 371 manned production platforms in the GoM. No personnel have been evacuated from any of the five non-dynamically positioned rigs, currently operating in the Gulf. Only one dynamically positioned rig was moved off location out of the storm’s path as a precaution.

Now that the storm has passed, facilities will be inspected. Once all standard checks have been completed, production from undamaged facilities will be brought back online immediately. Facilities sustaining damage may take longer to bring back online.