From leadership changes at Talos Energy and Wood Mackenzie to a new ban on offshore oil and gas leasing by the Biden administration, below is a compilation of the latest headlines in the E&P space.

Activity

CNOOC Starts Production at Panyu Field in South China Sea

CNOOC Ltd. announced Jan. 1 that Panyu 11-12 Oilfield/Panyu 10-1 Oilfield/Panyu 10-2 Oilfield Adjustment Joint Development Project has commenced production.

The project is in the eastern South China Sea, with an average water depth of approximately 100 m. The project is expected to achieve a peak production of approximately 13,600 boe/d in 2025. The oil property is medium and heavy crude.

The Panyu oilfield has produced more than 380 MMbbl of crude oil since it commenced production in 2003.

Contracts and company news

Mills Resigns from Positions at Talos Energy, Replacement Expected Soon

Talos Energy Inc. said Joseph Mills has resigned from his roles as interim president and CEO effective immediately, with a replacement expected to start by the end of the first quarter. Mills is also giving up his seat on the board of directors.

The company will announce the appointment of the new CEO once details have been finalized, said Neal Goldman, chairman of the Talos board of directors. It said Mills’ departure was unrelated to any operational issues or accounting matters.

Talos reiterated its 2024 full-year production guidance issued on Nov. 11, with expected average daily production of 91,000 boe/d to 94,000 boe/d.

Baker Hughes Wins Contracts for Woodside’s Louisiana LNG Project

Baker Hughes is supplying gas technology equipment to two liquefaction plants that are part of the first phase of Woodside Energy Group Ltd.’s Louisiana LNG development project, Baker Hughes announced Dec. 30.

Baker Hughes will provide eight main refrigeration compressors powered by LM6000PF+ gas turbines and eight expander-compressors, the company said.

The order, made by Bechtel Energy Inc., comes as Woodside targets a 2025 final investment decision for the 11 million tonnes per annum facility.

Baker Hughes was also chosen to supply electric-powered integrated compressor line packages and other turbomachinery equipment for the export terminal’s associated pipeline.

Subsea7 Awarded Contract for Gas Field Offshore Turkey

Subsea7 SA has been awarded a contract by the Turkish Petroleum Offshore Technology Center (TP-OTC) for work in the Sakarya gas field in the Black Sea. Subsea7 said the contract was in the range of $50 million to $150 million.

The inspection, repair and maintenance work will take place in 2025 and 2026. The contract includes project management and engineering, and Subsea7 will provide equipment and construction personnel on one of TP-OTC’s light construction vessels.

Varel Energy Solutions Acquires Ace Well Technology

Varel Energy Solutions (VES) said Jan. 6 that it has acquired Ace Well Technology (“ACE”), a supplier of oilfield casing, cementing and completion products.

The transaction adds to VES’ portfolio of primary cementing equipment and expands smart completions offerings in support of the offshore and premium market sectors. 

Wood Mackenzie Names Garet Guthrie as CFO

Global data and analytics company Wood Mackenzie Inc. has appointed Garet Guthrie as CFO effective Jan. 6. Guthrie succeeds Simon Crowe, who is stepping down to pursue other opportunities after working with Guthrie for a transition period. Guthrie joins Wood Mackenzie after more than a decade at McGraw Hill.

Regulatory updates

Biden Acts to Ban New Offshore Oil and Gas Development

President Biden will ban new offshore oil and gas development along most U.S. coastlines in a mostly symbolic move.

The White House said on Jan. 6 that Biden will use his authority under the 70-year-old Outer Continental Shelf Lands Act to protect all federal waters off the East and West coasts, the eastern Gulf of Mexico and portions of the northern Bering Sea in Alaska. The ban will affect 625 million acres of ocean.

Biden said the move was aligned with both his efforts to combat climate change and his goal to conserve 30% of U.S. lands and waters by 2030. It will not affect areas where oil and gas development has begun, and it mainly covers zones where drillers have no important prospects.

RELATED

Biden Bans E&Ps from 625 Million Acres of Offshore Oil, Gas Leases

API Sees Positives in Hydrogen Production Tax Credit Rules

The U.S. Treasury Department’s final regulations for the Section 45V Clean Hydrogen Production Tax Credit are a “meaningful step forward, encouraging innovation while driving progress on emissions,” the American Petroleum Institute said.

The rules offer “an opportunity for natural gas, when paired with carbon capture and storage, to compete more fairly in new markets and meet growing demand for affordable, reliable, lower-carbon energy,” the API said. “We look forward to collaborating with the incoming administration to uphold technology-neutral hydrogen policies that position the U.S. as a global leader in innovation.”

Reuters and Hart Energy Staff contributed to this report.

Comments