Conrad Asia Energy secures two oil and gas blocks offshore Indonesia 

Indonesia has named Conrad Asia Energy as the winning bidder for two oil and gas exploration blocks located off the northern Sumatra coast. 

The blocks, Offshore North West Aceh (ONWA) and Offshore South West Aceh (OSWA), are located offshore the northwest and southwest of the Aceh Province of Indonesia.

Covering a total acreage of 9,182km², the ONWA block comprises the Meulaboh-1 and Meulaboh East-1 gas discovery wells. The 10,700km² OSWA block contains the Singkel-1 gas accumulation. 

Conrad, which is yet to accept the award, will hold a 100% operatorship stake in the two blocks for a period of 30 years. The firm will have the right to develop existing discoveries at the blocks and explore for additional resources. 

Conrad will invest $15m at each of the blocks as part of the work programme, which will also include geological studies for 2023 and 500 square kilometres of 3D seismic acquisition for 2024.

Conrad managing director and CEO Miltos Xynogalas said: “The award of these two production sharing contracts is a transformational event for Conrad as these blocks contain discoveries that significantly increase our resource base and offer the opportunity for Conrad to add several gas projects to its existing large Mako gas project."

COP27: UAE will supply oil and gas “as long as the world needs” 

The UAE’s president Sheikh Mohammed bin Zayed al-Nahyan said at COP27 that the country will remain a “responsible supplier” of oil and gas for “as long as the world needs”. 

At the COP27 climate summit in Egypt, al-Nahyan emphasised the international community’s importance in finding effective climate action solutions. He told the assembled audience of delegates that the summit was vital for the planet’s future and generations. 

He continued by saying that the UAE, which is one of the top producers within the Organization of the Petroleum Exporting Countries (OPEC), made investments in renewable energy to focus on lowering the carbon footprint of its fossil fuel output. He went on to highlight an agreement of $100bn investment in energy transition projects with the US on 1 November. 

According to the National Center for Biotechnology Information, a branch of the US National Institutes of Health, the OPEC countries contributed 7% of global carbon dioxide emissions in 2010.  

 “Oil and gas in the UAE is among the least carbon-intensive around the world,” said al-Nahyan. “We will continue to focus on lowering carbon emissions from this sector. The UAE is a responsible energy supplier, and we will continue to play that role as we transition to alternate resources and technologies.”  

Automation can reduce extraction emissions “by up to 25%”: report

A report by Swiss technology company ABB has shown that oil and gas companies could reduce global carbon emissions by 300,000 tonnes per site per year by adopting more autonomous technology.

ABB has announced its ‘Energy Transition Equation’ for the offshore oil and gas sector.

According to its authors, this report showed how early adoption of technologies to enable autonomous operations could result in an annual carbon emissions reduction of 25%.

The report also explains how the shift to autonomous offshore operations can improve energy supply and production stability.

As part of its ‘Sustainability Strategy 2030’, ABB reduced its own carbon dioxide emissions by 39% in 2021. As a whole, the company aims to be carbon neutral by 2030.

The strategy outlines how ABB will help its clients cut their yearly carbon dioxide emissions by at least 100 megatons by 2030.

Because the energy industry contributes the largest share of greenhouse gas emissions, incorporating renewable energy sources will be critical in reducing the carbon footprint of oil and gas operations in the coming decades.

About 70% of the greenhouse gas emissions from offshore oil and gas installations on the UK Continental Shelf are currently produced by gas-driven generators mounted on offshore platforms.

Brandon Spencer, president of ABB, said: “Even in the most advanced scenarios for renewables, we will still need to invest in oil and gas infrastructure to ensure availability and stability of supply to meet our energy needs."

Saudi Aramco Q3 profits increase by 40% due to higher oil prices

The Saudi Arabian Oil Company (Aramco) has reported a net income of $42.4bn for the third quarter of 2022, up nearly 40% compared to $30.4bn a year ago, benefiting from higher crude prices. 

The company noted that the net income was partially offset by increased production royalties because of higher sales volume and stronger crude oil prices.

For the quarter that ended on 30 September 2022, revenue and other income related to sales rose to $163.7bn, from $108.1bn in the third quarter of 2021. 

The company’s EBIT was $80.5bn for the quarter, marginally up from $80.5bn in the same quarter last year. Free cash flow and cash flow from operating activities stood at $45bn and $54bn, respectively. 

For the third quarter, the firm capital expenditure increased to $9.03bn, from $7.59bn a year ago. Aramco declared $18.8bn in dividend in the third quarter, which will be paid in the fourth quarter of 2022.  

Aramco president and CEO Amin Nasser said: “While global crude oil prices during this period were affected by continued economic uncertainty, our long-term view is that oil demand will continue to grow for the rest of the decade, given the world’s need for more affordable and reliable energy. 

“Against the backdrop of global underinvestment in our sector, we are extending our long-term oil and gas production capabilities while also working towards our previously stated ambition to achieve net-zero scope one and scope two greenhouse gas emissions from our wholly-owned operated assets.” 

UK court imposes penalty on Glencore over African oil bribery case 

Mining firm Glencore’s British subsidiary has been given a penalty of $328m (£281m) by the Southwark Crown Court in the UK over offences pertaining to oil operations in Africa. 

The fine has been imposed on Glencore Energy UK by Judge Peter Fraser, who also approved a confiscation order of $109m (£94m). In June 2022, Glencore pleaded guilty to paying $28m in bribes, via its employees and agents, to secure preferential access to oil in Cameroon, the Ivory Coast, Equatorial Guinea, Nigeria and South Sudan. 

According to the judge, the offences for which Glencore pleaded guilty represented “corporate corruption on a widespread scale, deploying very substantial sums of money in bribes”. 

In May 2022, Glencore agreed to pay penalties of up to $1.5bn to settle probes into bribery and market manipulation allegations in the US, Brazil and the UK. The company has said it is undertaking an extensive corporate reform programme. 

Fraser added: “Glencore has engaged in corporate reform and today appears to be a very different corporation than it was at the time of these offences.” 

ADNOC awards $4bn contracts to boost production capacity 

The Abu Dhabi National Oil Company (ADNOC) has awarded framework agreements worth $4bn to expand its low-carbon oil production capacity. 

The contracts for integrated drilling fluids services have been awarded to the ADNOC Drilling Company, Schlumberger Middle East and Halliburton Worldwide. 

The provision of the integrated drilling fluids services includes engineering, products, technical laboratory support, filtration equipment and solid control equipment.

ADNOC upstream executive director Yaser Saeed Almazrouei said: “These record framework agreements for integrated drilling fluids services continue ADNOC’s significant investment in drilling-related services to enable the expansion of our production capacity and responsibly unlock the UAE’s leading low-cost, lower-carbon intensity hydrocarbons."

Brazilian election winner promises to update “insufficient” climate plans

Luiz Inacio Lula da Silva defeated incumbent president Jair Bolsonaro in the second round of Brazilian elections, pledging to update the “insufficient” climate plan.

Lula’s victory came with 50.9% of votes versus 49.1% for Bolsonaro in the two-choice runoff. In a speech, he invited international cooperation to preserve the Amazon rainforest from deforestation. 

According to Argus Media, Lula wants to change the company’s role in Brazil’s energy transition to focus on financing renewable energy sources.

Under Bolsonaro’s presidential rule, Garimpeiro mining, also known as “wildcat” illegal gold mining, became a billion-dollar industry, accounting for a high percentage of Brazil’s total gold production.

Lula said: “This is a victory for a huge democratic movement that was formed above political parties, personal interests, and ideologies so that democracy would be the winner.”