Greece conducts 2D seismic surveys for two offshore gas blocks

Greece has completed two-dimensional seismic surveys for two blocks off the island of Crete, reported Reuters, citing a state-owned energy resources company.

The work forms part of the country’s efforts to identify potential gas reserves and boost domestic production. Following the Russia-Ukraine conflict in 2022, Greece has accelerated its exploration plan at six onshore and offshore blocks this year to assess potential gas reserves.

Hellenic Hydrocarbons and Energy Resources Management Company (HEREMA) said that the 2D seismic surveys were carried out by processing company PGS offshore Crete on behalf of ExxonMobil and Greece’s biggest oil refiner, HelleniQ Energy.

ExxonMobil and HelleniQ Energy own 70% and 30% stakes, respectively, in the gas exploration rights of the two offshore blocks. The operators will now assess the 2D seismic survey data to enter the next exploration phase. The next stage of the HEREMA’s gas exploration plan involves the collection of more enhanced 3D seismic data to determine the need for test drilling by the operators.

The country, which earlier produced crude oil in small quantities, attempted to undertake hydrocarbon exploration work. However, the exploration plans were stalled due to low crude prices in previous years. This forced the country to shift its focus towards green energy.

Greece Energy Minister Kostas Skrekas said: “Our goal is to have the first exploration drilling within 2025. We need to discover if a new potential source of wealth exists.”

India’s Russian oil imports surge to record high in January

India’s imports of Russian oil climbed to an all-time high of 1.4 million barrels per day (bpd) in January. This marks a 9.2% increase from December last year, keeping Moscow as the top oil seller to New Delhi.

Russian oil accounted for 27% of the five million bpd of crude oil imported by India last in January, data from trade sources via Reuters showed. Russia is followed by Iraq, Saudi Arabia, the United Arab Emirates and Canada as India’s top oil suppliers.

State-run oil refiners typically avoid maintenance shutdowns in December and January in efforts to meet their annual production targets for the first quarter. As a result, rises in oil imports in India frequently occur in December and January.

However, until February 2022, Russian oil was rarely bought by refiners in India due to high costs. In December 2021, India imported 36,522 bpd of crude oil from Russia, with its overall share of imports from Russian oil for the year totalling about 1%.

Since Russia’s invasion of Ukraine and the breakdown of trading between it and Europe, the country discounted its oil supply. After this, India, China, and other countries have significantly increased their buying of Russian crude oil, with India now standing as Russia’s key oil client.

India’s oil imports from Canada also rose significantly last month, hitting 314,000bpd at its peak. Iraqi oil imports climbed to a seven-month high of 983,000bpd, up 11% from December, the data showed.

“India’s oil imports from Russia would continue to rise this year, mainly because of discounts if there are no further stringent actions by the Western countries targeting Russian oil,” a source at an Indian refiner told Al Jazeera.

Williams closes Southwest Gas’ MountainWest Pipelines business acquisition

Williams Companies has completed the acquisition of MountainWest Pipelines Holding from Southwest Gas Holdings for an enterprise value of $1.5bn.

The divestment is part of Southwest Gas’ plan to simplify its portfolio of businesses. The deal follows a months-long battle with activist investor Carl Icahn.

MountainWest business includes approximately 2,000 miles of interstate natural gas pipeline systems primarily located across Utah, Wyoming, and Colorado.

These pipeline systems have a transmission capacity of approximately eight billion cubic feet (bcf) per day. The natural gas transmission and storage business also owns 56bcf of total storage capacity, including the Clay basin underground storage reservoir.

Southwest Gas plans to use proceeds from the sale to repay its term loan of nearly $1.07bn. The company also plans to completely spin off its owned subsidiary Centuri Group to create a new, independent, publicly traded utility infrastructure services company during Q4 2023 or Q1 2024.

With the acquisition, Williams intends to expand its infrastructure network and strengthen its FERC-regulated natural gas transmission and storage business.

Southwest Gas president and CEO Karen S Haller said: “This is a significant step toward returning Southwest Gas to its core regulated utility business of providing reliable, sustainable, and affordable energy to meet the expectations of customers and communities while continuing to maximise its growth potential.

“We look forward to continuing to enhance our focus as we move forward with the planned spin-off of Centuri to create two focused industry leaders.”

Santos gains regulatory approval for Dorado project in Western Australia

Santos has secured approval from the National Offshore Petroleum Safety and Environmental Management Authority for its Dorado oil and gas development project in Western Australia.

The approval allows Santos to undertake the first phase of the Dorado liquids and gas development project in the Bedout Sub-basin, located in Commonwealth waters, approximately 140km offshore Port Hedland.

The initial phase of the project involves liquids development, with gas re-injection enhance resource recovery, while the second phase will see gas recovery and supply via a pipeline to the Western Australian domestic and liquefied natural gas (LNG) markets.

As per the estimates, the Dorado and Pavo fields hold gross 2C contingent resources of 189 million barrels of liquids and 401 petajoules of gas.

The Dorado project is expected to have liquid handling rates of 100,000 standard barrels per day and a gas reinjection capacity of 235 million standard cubic feet per day over a period of 20 years.

Santos owns an 80% stake in the Dorado project and a 70% interest in the Pavo field. The remaining stakes in the project are owned by Carnarvon Energy.

Santos managing director and CEO Kevin Gallagher said the Dorado development opportunity is further enhanced by the recent discovery at the adjacent Pavo field.

Gallagher added: “Our focus now is to finalise the concept for an integrated liquids and gas development and obtain the remaining approvals required to support a final investment decision.

“Dorado will provide a welcome boost to Australia’s energy security while the potential subsequent gas development provides a future source of supply for Western Australia’s domestic market and LNG projects.”