Shell, QatarEnergy make new oil discovery off Namibia
Shell and state-owned QatarEnergy (QE) have made a new oil discovery at a deepwater exploration well around 270km offshore Namibia, the country's third in just over a year.
The "light oil" discovery in the PEL-39 licence in the Orange Basin offshore southern Namibia was announced by QE, which holds a 45pc non-operating interest in the block, and Namibia's state-owned Namcor, which holds a 10pc stake. Shell, which operates the licence with a 45pc share, has yet to make an announcement.
QE said the discovery was made at the Jonker-1X deepwater well, which was drilled in water depths of around 2,200m. Drilling work began at the well in December and concluded several days ago, QE said. Neither QE nor Namcor have issued a reserve estimate, saying further appraisal work is needed still to determine the size and potential of the find.
The news cements Namibia's reputation as a frontier exploration hotspot. It is the third oil discovery in the space of a year. The other two were also in the Orange Basin, which extends from southern Namibia to the east coast of South Africa. The same consortium reported a discovery at the Graff-1 well, also in the PEL-39 licence, in early February 2022. A different consortium — comprising TotalEnergies, QE, UK-based independent Impact Oil and Gas and Namcor, announced a separate light oil discovery at the Venus 1-X well a few weeks later in the PEL-56 licence.
The Jonker find comes less than two weeks after TotalEnergies said it would begin a multi-well drilling campaign to appraise the Venus discovery. TotalEnergies said it plans to spend half of its 2023 exploration budget in Namibia. The company has previously indicated that Venus could hold at least 5bn bl of oil equivalent (boe) of recoverable oil and gas. Consultancy Wood Mackenzie has estimated it could hold as much as 6bn bl of oil, and possibly double that if the appraisal drilling yields positive results.
TotalEnergies holds a 40pc operating interest in the PEL-56 licence, with QE, Impact Oil and Gas and Namcor holding 30pc, 20pc and 10pc stakes, respectively. If successful, the Venus drilling campaign will result in two potentially fully appraised early production centres, Impact Oil and Gas said.
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Beryl menaces eastern Texas with storm surge, rain
Beryl menaces eastern Texas with storm surge, rain
New York, 8 July (Argus) — Hurricane Beryl crashed ashore early today, bringing life-threatening storm surge, strong winds and heavy rainfall to southeast Texas. The hurricane was packing maximum sustained winds of 75mph and was about 40 miles southwest of Houston, Texas, according to the latest advisory from the National Hurricane Center (NHC) issued at 8am ET. About 1.1 million Houston area customers are without power, US utility CenterPoint Energy said. Beryl made landfall as a Category 1 hurricane near Matagorda, Texas, after regaining strength as it crossed the Gulf of Mexico. Heavy rainfall of 5-10 inches is forecast across parts of the middle and upper Texas Gulf coast and eastern Texas. The NHC also warned of the risk of flash and urban flooding. A hurricane warning is in effect for the Texas coast from Mesquite Bay north to Port Bolivar, while a tropical storm warning is in place for the coast north of Port Bolivar to Sabine Pass. On its current forecast track, the center of Beryl will cross eastern Texas today, before sweeping through the lower Mississippi valley into the Ohio valley on Tuesday and 10 July, the NHC said. Beryl is forecast to weaken as it moves inland and is expected to be downgraded to a tropical storm later today and to a tropical depression on Tuesday. Disruptions to US Gulf of Mexico oil and gas operations appear to be limited so far, given Beryl's approach to the west of most US offshore oil and gas operations. But some platforms were evacuated late last week. ExxonMobil said on Sunday it was making operational adjustments in advance of the storm but expected minimal impact to production. It shut in output from the Hoover platform and evacuated remaining staff. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Opec+ crude production falls in June
Opec+ crude production falls in June
London, 8 July (Argus) — Opec+ crude output by members subject to cuts fell for a third straight month in June, as lower Russian production offset rises from some serial overproducers. Output fell by 90,000 b/d to 33.98mn b/d in June, according to Argus estimates, the lowest in three years. But it could have been lower, with the alliance overshooting its target for the month by 130,000 b/d (see table). Lower Opec+ production has played a key role in tightening oil markets in recent weeks. The $7-8/bl rise in oil prices over the past month will have come as a relief to Opec+, which initially saw prices slide after key members signalled their intention to start unwinding some of their production cuts from October . The nine Opec members subject to cuts were 150,000 b/d above target in June, but this was partially offset by the nine non-Opec members of the group, which produced 20,000 b/d below. Leading non-Opec producer Russia has driven much of the alliance's output falls in the past three months, as a pre-existing export cut pledge was replaced with an output reduction. And while it reduced production by 120,000 b/d to 9.14mn b/d last month, this was still well above its target of 8.98mn b/d. Much steeper falls could be on the horizon from Russia if it makes good on a promise to compensate for producing above target in recent months. Kazakhstan was another big overproducer last month, with its output rising by 80,000 b/d to 1.56mn b/d — 90,000 b/d above target. Despite outlining a plan to drive down output and compensate for overproducing this year, Kazakhstan has not met its target in any of the first six months of 2024. But lower production is on the horizon, with Kazakhstan undertaking maintenance at key fields later in the year — probably in August and October, according to its initial compensation plan. Iraq was again the alliance's largest overproducer last month, with output rising by 40,000 b/d to 4.2mn b/d — around 200,000 b/d above target. Like Kazakhstan, Iraq has failed to meet its target in any month this year, despite also outlining a plan to compensate for producing above quota. Rising summer temperatures boosted crude burn for power generation last month, but most of its overproduction is down to Baghdad's unwillingness to acknowledge surging production from the semi-autonomous Kurdish region. Iraq and Kazakhstan's combined overproduction has averaged 290,000 b/d this year, making their task of compensating much harder in the coming months. Disruption and decline In contrast, an emerging number of Opec+ members have been unable to hit their production targets in recent months. Grappling with natural decline and upstream challenges, Azerbaijan produced 80,000 b/d below its target of 550,000 b/d in the first six months. Malaysia also underproduced, by an average of 40,000 b/d in the same period. War-torn Sudan's production has fallen to just 20,000 b/d from pre-conflict levels of around 70,000 b/d. And South Sudan, which is entirely reliant on Sudan for its exports, has seen its production more than halve owing to the continued shutdown of a key pipeline in Sudan . Production was relatively uneventful in the Mideast Gulf Opec+ contingent. Saudi Arabia's output fell by 10,000 b/d to 8.95mn b/d, the UAE shed 10,000 b/d to 2.94mn b/d and Kuwait dropped by 20,000 b/d to 2.4mn b/d. Production from the three members exempt from production targets edged up in June. Sanctions-hit Iran continued its upward trajectory, adding 20,000 b/d to 3.31mn b/d — the highest since September 2018. Libya added 40,000 b/d to reach 1.22mn b/d on recent upstream work and Venezuela edged higher by 20,000 b/d despite the return of US sanctions in April. By Aydin Calik Opec+ crude production mn b/d Jun May* Jun target† ± target Opec 9 21.38 21.44 21.23 +0.15 Non-Opec 9 12.60 12.63 12.62 -0.02 Total 33.98 34.07 33.85 +0.13 *revised †includes additional cuts where applicable Opec wellhead production mn b/d Jun May Jun target† ± target Saudi Arabia 8.95 8.96 8.98 -0.03 Iraq 4.20 4.16 4.00 +0.20 Kuwait 2.40 2.42 2.41 -0.01 UAE 2.94 2.95 2.91 +0.03 Algeria 0.91 0.90 0.91 0.00 Nigeria 1.44 1.48 1.50 -0.06 Congo (Brazzaville) 0.26 0.26 0.28 -0.02 Gabon 0.23 0.25 0.17 +0.06 Equatorial Guinea 0.05 0.06 0.07 -0.02 Opec 9 21.38 21.44 21.23 +0.15 Iran 3.31 3.29 na na Libya 1.22 1.18 na na Venezuela 0.86 0.84 na na Total Opec 12^ 26.77 26.75 na na †includes additional cuts where applicable ^Iran, Libya and Venezuela are exempt from production targets Non-Opec crude production mn b/d Jun May* Jun target† ± target Russia 9.14 9.26 8.98 +0.16 Oman 0.76 0.76 0.76 +0.00 Azerbaijan 0.47 0.46 0.55 -0.08 Kazakhstan 1.56 1.48 1.47 +0.09 Malaysia 0.35 0.36 0.40 -0.05 Bahrain 0.18 0.18 0.20 -0.02 Brunei 0.05 0.05 0.08 -0.03 Sudan 0.02 0.02 0.06 -0.04 South Sudan 0.07 0.06 0.12 -0.05 Total non-Opec 12.60 12.63 12.62 -0.02 *revised †includes additional cuts where applicable Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Heavy rain, wind expected in Houston from Beryl: Update
Heavy rain, wind expected in Houston from Beryl: Update
Houston, 8 July (Argus) — Tropical storm Beryl is expected to regain hurricane strength before coming ashore near Matagorda, Texas, early Monday, bringing heavy rain and wind to the Houston area. As of 8pm ET Sunday, the center of the storm was about 120 miles east-southeast of Corpus Christi, Texas, with maximum sustained winds of 70mph, moving northwest at 12mph, according to the National Hurricane Center (NHC). The storm track forecast has shifted to the north of Corpus Christi, likely sparing that city's refining and oil export industries from the most severe conditions, although Citgo said its 165,000 b/d Corpus Christi refinery is running at reduced rates as part of its hurricane preparedness plan. Peak storm surge of 4-7ft is expected between Matagorda Bay and San Luis Pass, including at Freeport, home to a number of petrochemical plants and an LNG export terminal. Galveston Bay, which includes numerous refineries and oil export terminals along the Houston Ship Channel and Texas City, is expected to see 4-6ft of storm surge. The ports of Houston, Galveston, Freeport and Texas City were closed to all traffic at 5pm ET Sunday, according to the US Coast Guard. The Port of Corpus Christi has been closed since Saturday afternoon. US Gulf coast refiners appear to have robust fuel inventories for this time of year should the storm lead to operational issues. The four-week average of Gulf coast gasoline inventories in the week ended 28 June was up by over 4pc from the same period in 2023 and up by 6pc from 2022, after hitting a near six-month high in the penultimate week of June. Residents and businesses in the Houston area may see power outages Monday from the high winds, according to local emergency management officials. Rainfall is expected to range between 6-10 inches with 15 inches in some isolated areas, according to NHC. Little oil, gas production disruption Disruptions to US Gulf of Mexico oil and gas operations appear to be limited given Beryl's approach to the west of most US offshore oil and gas operations, although some platforms were evacuated late last week. Chevron said it has already started to send non-essential workers who were evacuated back to offshore facilities. Mexican offshore operations were halted late last week when the storm first entered the Gulf after passing over the Yucatan Peninsula. Early last week Beryl was a Category 5 storm, which made it the strongest on record for the month of July, as it left a trail of destruction in the Caribbean . The second named storm of the 2024 Atlantic hurricane season, Beryl followed tropical storm Alberto, which came ashore in northeastern Mexico late last month. This year's Atlantic hurricane season is expected to be more active than normal, according to the US National Oceanic and Atmospheric Administration, with 4-7 major hurricanes that pack sustained winds of 111mph or higher possible. By Tom Fowler, Nathan Risser and Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Beryl aims between Corpus Christi, Houston
Beryl aims between Corpus Christi, Houston
Houston, 7 July (Argus) — Tropical storm Beryl was expected to regain hurricane strength today before coming ashore between Corpus Christi and Houston, Texas, early Monday. As of 11am ET today the center of the storm was about 195 miles southeast of the refining and oil export hub of Corpus Christi with maximum sustained winds of 65mph. Moving northwest at 10mph, its landfall was expected at about 2am ET Monday, according to the National Hurricane Center (NHC). The track of the storm's landfall has moved toward the east for the past two days, moving Corpus Christi out of the area likely to see the highest winds and storm surge. The most powerful winds and storm surge should be centered on areas near Matagorda Bay, according to the forecast, with 4-6ft of storm surge expected. Galveston Bay, which include numerous refineries and petroleum export terminals along the Houston Ship Channel and Texas City, was expected to see 3-5ft of storm surge. The port of Corpus Christi was closed to all traffic as of Saturday afternoon while the ports of Houston, Galveston, Freeport and Texas City were set to "Yankee" status at 8am ET today, suspending all inbound traffic, bunkering and lightering operations. The Houston-area ports were expected to close to all traffic later today as the storm nears landfall, according to the US Coast Guard. Disruptions to US Gulf oil and gas operations so far appear to be limited given Beryl's approach to the west of most US offshore and gas operations. Mexican offshore operations were halted late last week when the storm first entered the Gulf after passing over the Yucatan peninsula. Early last week Beryl was a Category 5 storm, which made it the strongest on record for the month of July, as it left a trail of destruction in the Caribbean. The second named storm of the 2024 Atlantic hurricane season, Beryl followed tropical storm Alberto, which came ashore in northeastern Mexico late last month. This year's Atlantic hurricane season is expected to be more active than normal, according to the US National Oceanic and Atmospheric Administration, with 4-7 major hurricanes that pack sustained winds of 111mph or higher possible. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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