ExxonMobil aims for net-zero Permian Basin emissions by 2030

7 December | Environment

ExxonMobil has said that it aims to achieve net-zero greenhouse gas emissions from working assets in the US Permian Basin by the end of this decade.

The company plans to reduce greenhouse gas emissions in the Permian by electrifying operations with renewable energies and using natural gas with carbon capture and storage, a move which furthers its plans for unconventional operations in New Mexico and Texas. It will also use satellite surveillance and a network of ground-based sensors for methane detection and mitigation.

ExxonMobil aims to reduce flaring volumes across its operations in the Permian Basin by more than 75% by the end of this year, compared to its 2019 figures, and then completely eliminate the flares by the end of 2022. The company also aims to reduce the intensity of upstream greenhouse gas emissions by 40-50% in 2030, compared to its levels in 2016.

ExxonMobil chairman and CEO Darren Woods said: “Our ground-breaking plans to reach net-zero for Permian Basin operations further demonstrate our commitment and support of society’s ambitions for a lower-emission future.

“We have plans to reduce greenhouse gas emissions across our businesses by deploying the capabilities and technical strengths that are foundational to ExxonMobil.”

ExxonMobil unconventional senior vice-president Bart Cahir added: “Our goal of net-zero for scope one and scope two greenhouse gas emissions is one of the most ambitious and wide-reaching in the Permian Basin. Throughout the value chain, our people are working hard to help reduce the greenhouse gas emissions associated with the products that enable modern life.”

Main image: Irving, Texas, United States. ExxonMobil Signage Logo on Glass Building
Credit: askarim / Shutterstock

6 December | Exploration

PGS to conduct 4D survey of Brazilian offshore fields


Norway-headquartered PGS has secured a contract from Petrobras to conduct a 4D seismic acquisition survey over two Brazilian offshore fields.

The contract will involve surveying the Roncador and Albacora Leste fields, both located in the Campos basin, and the survey is scheduled to be completed between the second and third quarters of 2022. A Ramform-class vessel will be used for the survey works.

PGS president and CEO Rune Olav Pedersen said: “We are very pleased to provide this significant 4D survey for Petrobras in the prolific Campos basin. We have acquired several 4D surveys offshore Brazil and gained significant operational experience.

Last month, Petrobras announced plans to invest $68bn to boost oil production in the subsea pre-salt area. The Brazilian state-owned firm will make this investment over the five-year period from 2022 to 2026. This represents a significant increase from the previously announced investment of $55bn for the 2020-2025 period.

“We appreciate Petrobras’ recognition of our Ramform-vessel acquisition platform and our GeoStreamer technology, which are well suited for large, high-quality 4D acquisition programmes.”

6 December | Safety

Fire shuts down Shell’s Prelude LNG facility; crew evacuated


Shell’s Prelude has been shut down since 3 December following a fire that started the previous night. The exact cause of the blaze, which was started in an electrical utility, is unknown and an investigation has been launched.

In response, 150 of the vessel’s crew were evacuated, though a Shell spokesperson has said a “skeleton crew” remains on board.

The Prelude facility, located in northwest Australia, marked a mammoth undertaking, costing between $12bn-$17bn for its 488m-long, 74m-wide bulk and is anticipated to produce 3.6 million tonnes of LNG each year. Full capacity has never been reached however, and production has been hobbled by delays.

Operations only resumed at the site in January this year following an 11-month closure due to electrical issues and three incidents that the National Offshore Petroleum Safety and Environmental Management Authority described as “dangerous occurrences”.

“The incident resulted in the loss of main power and the facility is currently operating on back-up diesel generators,” a Shell spokesperson said. “While work is underway to restore main power, production on Prelude has been suspended temporarily.”

3 December | Projects

Shell withdraws from North Sea Cambo project amidst environmental pushback


Oil major Royal Dutch Shell has pulled out of its stake in the controversial Cambo oil project in the UK’s North Sea.

Cambo, situated more than 1,000m underwater, is thought to contain some 800 million barrels of oil, with the project’s first phase targeting the recovery of 170 million barrels. Shell, which was set to develop the field alongside fossil fuel explorer Siccar Point, released a statement on the decision following a “comprehensive screening” into the project.

Despite Shell’s decision, Siccar, which owns 70% of the project, has said its collaboration with the UK Government on the field’s development will continue unabated.

The project has been plagued with backlash since its granting. Concerns have been raised given the project’s location within protected marine areas, potentially endangering biodiversity in the area and posing a significant threat of an oil spill. A review from the Environmental Law Alliance Worldwide also warned that the project “could jeopardise hundreds of species over several decades, as well as livelihoods.”

Philip Evans, oil campaigner at Greenpeace UK, said in a statement: “With yet another key player turning its back on the scheme the government is cutting an increasingly lonely figure
with their continued support for the oil field.”

In a statement, Shell said it was still intending to progress its other projects in the North Sea area.

“Continued investment in oil and gas in the UK remains critical to the country’s energy security,” the company said. “As Shell works to help accelerate the transition to low-carbon energy, we remain committed to supplying UK customers with the fuels they still rely on, including oil and gas."

1 December | Exploration

Shell looks to re-enter Libya’s oil and gas sector


Royal Dutch Shell is reportedly planning to develop new oil and gas fields and infrastructure in Libya to tap into the country’s vast oil and gas resources.

The plan, which has been discussed with the state-run National Oil Corporation (NOC), would mark the firm’s re-entry into the country after an almost decade-long hiatus following the political unrest in the country. Shell is exploring new projects to maintain output in the country as the reserves in their existing fields have dropped due to slow drilling activity.

As a part of the new Libya plan, Shell is considering creating new oil and gas fields in blocks offshore the Cyrenaica basin and onshore the Sirte and Ghadames basins. The firm is also planning to develop new fields in the Ain Jarbi block, and re-develop ageing fields, including block NC-174 in the Murzuq basin.

Other firms, including TotalEnergies, Italy’s Eni, and ConocoPhillips, are also working in Libya’s oil and gas sector. In September 2021, Royal Dutch Shell agreed to sell 225,000 net acres in the Permian Basin to ConocoPhillips for $9.5bn.

1 December | Production

OPEC misses oil production targets once again


A Reuters survey has found that the November oil output of the Organisation of the Petroleum Exporting Countries (OPEC) missed its target again, marking the latest in a several months long trend that has seen OPEC nations consistently unable to reach their production quotas.

The quotas were laid out under the OPEC+ deal, which states that members should be raising their combined production by 254,000 barrels per day. According to the latest Reuters survey, OPEC’s crude oil production rose by only 220,000 bpd over the month of November.

Of the participating nations, Saudi Arabia and Iraq – OPEC’s top two producers – had the highest increases in production, while Angola saw the greatest decline, with output dropping by 50,000 bpd between October and November.

The pandemic’s impact on oil-producing continues to be felt and the market has seen significant volatility as a result. While demand is gradually picking up again, some nations simply no longer have capacity to meet the renewed calls for supply, while others are reluctant to push supplies for fear of continued restrictions and delays.

In brief

Iberdrola divests its natural gas storage business in Canada


Iberdrola has divested its natural gas storage business in Canada as part of its decarbonisation strategy, selling its stake in the Alberta Hub Gas Storage facility to the Canadian group ATCO through its subsidiary Scottish Power Overseas.

ConocoPhillips buys Shell’s Permian business for $9.5bn


ConocoPhillips has acquired the Permian assets in the US from Shell Enterprises for $9.5bn. The deal includes more than 600 miles of crude gas and water pipelines and infrastructure, and the assets are expected to produce around 200 million barrels oil equivalent per day in 2022.

Mexico’s Pemex launches new subsidiary to sell petrochemical product

Pemex has created a direct subsidiary to focus on the national marketing activities of oil, gas and petrochemical products. The new subsidiary will focus on strengthening and boosting Pemex’s place in the national market for oil, gas and petrochemical products.

ADNOC to invest up to $127bn between 2022 and 2026


The Abu Dhabi National Oil Company has unveiled its capital spending plan of $127bn over next five years, following significant increase of national reserves by 16 trillion standard cubic feet of natural gas and four billion stock-tank barrels of oil.

30 November | Production

Iran’s oil production set to increase amidst talks of nuclear deal


Iran is intending to increase its oil production levels to five million barrels per day, Bloomberg has reported, the same amount as it was seeing before a clamp down in sanctions from the Trump administration in 2018.

The managing director of National Iranian Oil, Mohsen Khojastehmehr, was cited as a source for this announcement, also saying that talks are under way with Chinese companies to develop the country’s oil fields, though no further details have been given on the claim.

The news comes as the nation has restarted talks with China, France, Germany, Russia, and the UK on the reestablishment of the Joint Comprehensive Plan of Action (JCPOA), more commonly known as the Iran nuclear deal. The talks, taking place in Vienna, have resumed following a five-month hiatus triggered by the election of new Iranian president Ebrahim Raisi.

The talks are also considering the US’s return to a 2015 agreement that removed sanctions against Iran – including in the oil sector – in return for the monitoring and restriction of Iran’s nuclear activities. However, some diplomats and industry members have warned returning to JCPOA will not be easy given Trump’s pulling out of the deal in 2018 and his administration imposing sanctions targeting the Iranian oil industry.

In a statement, foreign minister Hossein Amir-Abdollahian said: “There is no way to return to the JCPOA without verifiable and effective lifting of all sanctions imposed on the Iranian nation after the US departure.”

30 November | Projects

Aramco awards $10bn contracts for Jafurah field development project


Saudi Aramco has awarded subsurface and engineering, procurement and construction contracts worth $10bn for the development of the Jafurah gas field.

The contracts have been awarded to 16 undisclosed domestic and international service companies for the Jafurah Gas Plant and gas compression facilities, as well as infrastructure and related surface facilities. The contracts for the unconventional gas field mark the start of the company’s development phase, with the company expecting to invest $68bn over the next ten years into the project.

According to estimations, the Jafurah basin holds 200 trillion standard cubic feet of gas, making it the Middle East’s largest liquid-rich shale gas play. The Saudi Arabian oil giant said that the Jafurah field is a ‘major component of its unconventional gas programme which aims to reduce greenhouse gas emissions in the national energy sector’.

The Jafurah field is expected to make Saudi Arabia one of the largest natural gas producers in the world and aims to produce 200 million standard cubic feet per day (MMSCFD) of gas by 2025. By 2030, the field’s production is expected to reach up to two billion standard cubic feet per day of gas, approximately 630,000 barrels per day of gas liquids and condensates, and 418MMSCFD of ethane.

Saudi Arabia Minister of Energy Abdulaziz bin Salman Al Saud said: “The development of Jafurah will positively contribute to the Kingdom’s energy mix and it has been made possible thanks to close co-operation between more than 17 different agencies.”

In brief

Iberdrola divests its natural gas storage business in Canada


Iberdrola has divested its natural gas storage business in Canada as part of its decarbonisation strategy, selling its stake in the Alberta Hub Gas Storage facility to the Canadian group ATCO through its subsidiary Scottish Power Overseas.

ConocoPhillips buys Shell’s Permian business for $9.5bn


ConocoPhillips has acquired the Permian assets in the US from Shell Enterprises for $9.5bn. The deal includes more than 600 miles of crude gas and water pipelines and infrastructure, and the assets are expected to produce around 200 million barrels oil equivalent per day in 2022.

Oil Search turns down $6.5bn takeover offer from Santos


Pemex has created a direct subsidiary to focus on the national marketing activities of oil, gas and petrochemical products. The new subsidiary will focus on strengthening and boosting Pemex’s place in the national market for oil, gas and petrochemical products.

ADNOC to invest up to $127bn between 2022 and 2026


The Abu Dhabi National Oil Company has unveiled its capital spending plan of $127bn over next five years, following significant increase of national reserves by 16 trillion standard cubic feet of natural gas and four billion stock-tank barrels of oil.