Total Share Discussion Threads

[waldron] 20/11/2020 16:59

Brent Crude Oil NYMEX 44.34 +0.29%
Gasoline NYMEX 1.17 +0.28%
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34.5 +1.14%



Engie
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Orange
10.41 +0.24%



Bp
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Vodafone
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Royal Dutch Shell A
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Tullow Oil (TLW)
25.37 0.62 (2.51%)

[grupo guitarlumber] 20/11/2020 08:46

Oil Majors Are Paying The Price For Investing In Renewables
By Alex Kimani - Nov 19, 2020, 7:00 PM CST


Big Oil has been frequently lambasted for trying to burnish its green credentials through half-hearted investments in renewables. That might have been true for much of the past decade, but it appears to be changing as the oil and gas majors have started putting down big money into clean energy. For instance, European oil majors including BP Plc. (NYSE:BP), Royal Dutch Shell (NYSE:RDS.A), Eni SpA (NYSE:E), Total SA (NYSE:TOT), and Norwegian national oil company Equinor ASA (NYSE:EQNR) have already invested billions of dollars in renewable energy and made big clean energy commitments. Yet, Big Oil just can’t seem to catch a break, with stocks of oil and gas companies that are investing heavily in renewables being punished by the markets.

A good case in point is BP, one of the oil majors with some of the largest clean energy commitments. BP has announced plans to achieve net-zero status by 2030 by dramatically increasing its renewables spending. BP stock has, however, cratered 48% in the year-to-date, considerably worse than Europe’s oil and gas benchmark STOXX Europe 600 Oil & Gas Index (SXEP) which is down 32% in the year-to-date or even the Energy Select Sector Fund (XLE) which has lost 41%.

BP’s European peer Shell has probably done more than any other supermajor as far as investing in renewable energy goes. Recently, Shell CEO Ben van Beurden told investors that the company no longer considers itself an oil and gas company but an energy transition company. Shell has been vocal about the shift to renewables, frequently issuing the clarion call for the industry to switch to cleaner energy sources. In 2016, Shell set an ambitious goal to invest $4bn to $6bn in clean energy projects by 2020. Shell stock is down 44% YTD.

Related: Why Iraq Isn’t Producing 10 Million Barrels Per Day Yet
Meanwhile, ENI has the most ambitious climate change pledge with plans to lower its greenhouse gas emissions by 80% by 2050. ENI also says that its renewable portfolio will reach an installed capacity of 3 GW as early as 2023 and 5 GW in 2025. ENI stock has tanked 38%.

Clean energy transition

What’s going on here clearly is a case of damned if you do and damned if you don’t.

The big problem here stems from the way the renewable sector operates.

Green energy requires heavy upfront investments with longer payback periods compared to fossil fuel investments. In fact, green infrastructure is 1.5-3.0x more capital- and labor-intensive than hydrocarbons.

Oil and gas firms are still grappling with the best way to presently use dwindling cash flows; in effect, they are still weighing whether it's worthwhile to at least partially reinvent themselves as renewables businesses while also determining which low-carbon energy markets offer the most attractive future returns.

Most renewable ventures, like solar and wind projects, tend to churn out cash flows akin to annuities for several decades after initial up-front capital expenditure with generally low price risk as opposed to their current models with faster payback but high oil price risk. With the need to generate quick shareholder returns, some fossil fuel companies have actually been scaling back their clean energy investments.



By investing their cash flows in clean energy projects, the oil majors are likely to reap the benefits in the future--but at the expense of today’s dividends and buybacks. In other words, it’s a bit like the markets want to eat their cake and still have it.

Clean energy spinoffs

Obviously, pure-play renewable companies get a lot more leeway from the markets despite the majority still being unprofitable. For instance, the solar sector boasts a median P/E GAAP (FWD) of 31.3 vs. 10.9 for U.S. oil and gas companies thanks to the former’s much better top-and bottom-line growth prospects. In contrast, even the most bullish oil outlook calls for only anemic growth for oil and gas demand over the next decade, meaning pretty limited growth runways for Big Oil. Further, renewables still make up a minuscule fraction of their revenues for most oil majors, meaning it might take many more years of clean energy investments before they can reflect on their valuations.

But maybe Big Oil won’t have to wait too long before they can reap the dividends.

RBC Capital Markets analyst Biraj Borkhataria has told Barron’s that the oil majors are likely to start spinning off their renewable businesses once they achieve scale if this valuation disconnect persists. Indeed, Biraj says that standalone valuations of Equinor’s, Energia’s, and Total’s low-carbon businesses currently clock in at 17%, 15%, and 10%, respectively, of their enterprise valuations. Given how aggressively these companies have been investing in renewables, it probably won’t come as a surprise if the value of their clean energy portfolios double in the next five or so years.

That represents a huge amount of value that these companies will no doubt be looking to unlock several years down the line.

By Alex Kimani for Oilprice.com

[grupo guitarlumber] 18/11/2020 11:47

Oil Prices Under Pressure After API Reports Crude Inventory Build
By Julianne Geiger - Nov 17, 2020, 3:43 PM CST

The American Petroleum Institute (API) reported on Tuesday a build in crude oil inventories of 4.174 million barrels for the week ending November 13.

Analysts had predicted an inventory build of 1.95-million barrels.

In the previous week, the API reported a large draw in oil inventories of 5.147-million barrels, after analysts had predicted a draw of 913,000 barrels for the week.

Oil prices were trading down on Tuesday afternoon before the API's data release despite significant vaccine news, as OPEC+ indicated that it could extend its current production cuts for an additional three months. Pressuring prices include widespread lockdowns, weaker than anticipated economic data in the United States, and Libya's surging oil production.

In the runup to Tuesday's data release, at 11:53 a.m. EDT, WTI had fallen by $0.48 (-1.16%) to $40.86 down roughly $0.50 per barrel on the week. The Brent crude benchmark had fallen on the day by $0.61 at that time (-1.39%) to $43.21—down about $0.40 per barrel on the week.

But oil prices ticked higher in the later afternoon hours.

U.S. oil production was unchanged in the last reporting week, at 10.5 million bpd, according to the Energy Information Administration—;2.6 million bpd lower than the all-time high of 13.1 million bpd reached in March.

The API reported a build in gasoline inventories of 256,000 barrels of gasoline for the week ending November 13—compared to the previous week's 3.297-million-barrel draw. Analysts had expected a 450,000-barrel build for the week.

Distillate inventories were down by 5.024-million barrels for the week, compared to last week's 5.619-million-barrel draw, while Cushing inventories rose by 176,000 barrels.

At 4:39 pm EDT, the WTI benchmark was trading at $41.45 while Brent crude was trading at $43.87.

By Julianne Geiger for Oilprice.com

[grupo guitarlumber] 18/11/2020 10:06

Total lists factors keeping investors at bay in Nigeria’s deep water oil and gas sector
November 18, 2020
By Ripples Nigeria

There were no key investment decisions taken on deepwater oil and gas exploration in the Nigerian energy industry between 2015 and 2019, much as opportunities for business existed, Total Exploration and Production Nigeria Limited said on Tuesday.

Mike Sangster, the managing director of the Nigerian operations of the oil supermajor, disclosed that pending dispute resolution, impending lease expiry and escalating costs accounted for the factors that were keeping investors at bay.

“Nigeria has only benefitted from less than five per cent of all investments in oil and gas in Africa between 2015 and 2019 despite having the largest reserves,” the Total chief told the management session of the virtual Nigerian Association of Petroleum Explorationists 2020 conference.

Sangster, who was represented by Total’s Deputy Managing Director Victor Bandele, noted that the interventions by authorities in forging an enduring framework for the energy sector was capable of restoring confidence and delivering attractive benefits, which could offer mutually favourable solutions to the country and investors.

Read also: NSE: Nestle, Total, Dangote Cement drive gains as Nigerian stocks hit 9-month high

“This will further attract more capital investment in an ever more competitive world. A progressive, win-win PIB will no doubt be the catalyst needed for a new wave of hydrocarbon exploration and development investment in Nigeria,” he said.

The oil and gas sector of Nigeria, Africa’s biggest oil producer, is proving a hard sell to international investors on account of myriad regulatory bottlenecks and difficulty in doing business, causing it to receive only 5 per cent or $3 billion of all oil and gas funds invested on the continent between 2015 and 2019.

The chair of the Society of Petroleum Engineers, Olatunji Akinwunmi, observed that the Niger-Delta Basin, where more than 90 billion barrels of oil had been discovered, remained technically attractive.

“Funds for E&P development is globally more scarce in light of the planned gradual transition from fossil fuels dependence to an energy mix that would have increasing contribution from renewables.

“There is every need to encourage and support speedy win-win resolutions of the outstanding blocking points in the new PIB as time is not on our side,” he said.

AuthorRecent Posts

Ripples Nigeria
We are an online newspaper, very passionate about Nigerian politics, business and their leaders. We dig deeper, without borders and without fears.
www.ripplesnigeria.com

[waldron] 18/11/2020 09:29

Jadestone Energy Inc. said Wednesday that it has relinquished an exploration license offshore Philippines, and expects to book a $50.5 million impairment related to historical expenditure at the site.

The AIM-listed energy company said its subsidiary Mitra Energy and operator Total E&P Philippines BV have decided to terminate their interest in the Service Contract 56. Jadestone said SC56 would require a multi-year capital program prior to production, and that major investments in new pipelines and facilities don't fit its sustainability objectives.

Mitra had a 25% interest in SC56, with Total holding the remaining 75%.

Jadestone and Total will be subject to a payment in respect of unfulfilled work commitments. Jadestone said it will meet its share from a portion of the proceeds of an arbitration ruling between Mitra and Total. A tribunal ruled in favor of Mitra in January, and awarded it $11.1 million in monetary damages and $4.3 million in legal costs.

Shares in Jadestone at 0837 GMT were down 1.5 pence, or 2.6%, at 56.5 pence.



Write to Jaime Llinares Taboada at [e-mail]; @JaimeLlinaresT



(END) Dow Jones Newswires

November 18, 2020 04:07 ET (09:07 GMT)

[waldron] 18/11/2020 08:39

Total SE has won a contract from the city of Paris to manage its electric-vehicle charging-point network for the next 10 years, the French energy company said Wednesday.

The contract covers the maintenance and extension of the network, including the supply, installation and technical and commercial operation of the public charging points. The network will be extended to around 2,300 charging points, up just over half from the current number, including fast-charging hubs installed in underground parking lots, Total said.

The company included in its proposal the development of solar farms in France dedicated to covering the network's power needs. "Our promise is to provide our customers with a 100% renewable electricity charge," Alexis Vovk, Total president for marketing and services, said.



Write to Joshua Kirby at [e-mail]; @joshualeokirby



(END) Dow Jones Newswires

November 18, 2020 03:04 ET (08:04 GMT)

[the grumpy old men] 14/11/2020 19:04

Shearwater GeoServices awarded Senegal 3D acquisition and processing contract by Total

Oil & GasUpstreamExploration

By NS Energy Staff Writer 12 Nov 2020

The exploration survey covers 5,000km2 in the UDO Block Exploration area, offshore Senegal
12-11 PR1

Shearwater GeoServices awarded Senegal 3D acquisition and processing contract by Total. (Credit: Shearwater GeoServices)

Shearwater GeoServices Holding AS (“Shearwater”) today announced the award for a large towed streamer 3D acquisition and Fast Track processing project by Total E&P Senegal (“Total”).

The exploration survey covers 5,000 sq. km in the UDO Block Exploration area, offshore Senegal. The data acquisition will be carried out by the SW Empress using an ultra-wide tow Flexisource configuration together with Fast Track processing enabled by Shearwater’s proprietary Reveal software.

“We are pleased to be awarded this contract by Total in North West Africa, providing us with back-to-back work for one of our vessels,” said Irene Waage Basili. “Leveraging our strong geographically dispersed fleet to drive efficiencies and minimise transit times and thereby create commercial and environmental benefits for our clients is a key element of our strategy.”

The two-month survey is scheduled to commence in Q4 2020, adding to another recent award by Total to Shearwater for work in North West Africa’s MSGBC Basin.

Source: Company Press Release

[grupo guitarlumber] 14/11/2020 11:30

BOIX
14 Nov '20 - 11:05 - 51966 of 51966
0 0 0
Great news





Tullow targets Kenya FID in 2022, first oil 2024

Published date: 13 November 2020


London-listed independent Tullow Oil aims to make a final investment decision (FID) on its South Lokichar oil project in Kenya in 2022 and to start production in 2024.

The firm outlined the new timeline in an implementation programme presented to the government two weeks ago, according to commissioner of petroleum at the energy ministry Martin Heya. "The timelines bring the oil development project back on track and give confidence to the service providers," Heya told Argus.

Tullow and its partners in the project, Total and Canada's Africa Oil, had initially planned to reach FID in 2019 and first oil in 2021-22. But the decision was pushed back, first because the government took longer than expected to finalise land and water rights and then because the project partners declared force majeure in response to tax changes and Covid-19 restrictions.

The force majeure notices were withdrawn in August "following productive discussions with the government, an improvement in the Covid-19 situation and assurances from government that the tax incentives granted to the phased project will continue to apply", Tullow said.

The project's "foundation stage" will involve developing the Amosing, Ngamia and Twiga fields in the South Lokichar basin using a 60,000-80,000 b/d central processing facility and an export pipeline to the port of Lamu. Further development could see output plateau at over 100,000 b/d. A pilot scheme to test the market's appetite for Kenyan crude — which involved trucking oil from South Lokichar by road to the Indian Ocean port of Mombasa — ended in June this year.

Tullow is operator of the project with a 50pc stake, while Total and Africa Oil hold 25pc each. Tullow plans to sell part of its interest but suspended the farm-down process earlier this year to allow for a comprehensive review of the development concept.

By Mercy Matsiko

[waldron] 13/11/2020 17:42

Brent Crude Oil NYMEX 42.89 -1.02%
Gasoline NYMEX 1.13 -1.68%
Natural Gas NYMEX 3.18 +3.45%
WTI 40.25 USD -1.12%

FTSE 100
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Dow Jones
29,354.74 +0.94%
CAC 40
5,380.16 +0.33%
SBF 120
4,255.46 +0.38%
Euro STOXX 50
3,439.93 +0.16%
DAX
13,076.72 +0.18%
Ftse Mib
20,948.41 +0.63%



Eni
7.66 +0.55%


Total
32.645 +1.37%



Engie
12.3 +3.19%

Orange
10.335 +0.68%

Bp
236.9 -0.38%

Vodafone
119.52 +1.07%

Royal Dutch Shell A
1,165.8 -0.78%


Royal Dutch Shell B
1,115 -0.92%

Tullow Oil (TLW)
:22.63 -1.42 (-5.90%)

[adrian j boris] 13/11/2020 10:54

Total SE has said it will continue to explore and exploit crude oil in Gabon, according to a statement released Friday by Vincent de Paul Massassa, the country's Minister of Mines and Hydrocarbons.

The move comes after the French energy major has made several divestments from the Gabonese oil industry. In July, Total said it would sell several of its interests in the country to Perenco Oil & Gas Gabon for $350 million.

Nicolas Terraz, CEO of Total Gabon, said the company's departure from Gabon was "not at all on the agenda."

"The government is happy to see Total continue its investments in Gabon and welcomes the commitment of the company's management, Mr. Massassa said.



Write to Barcelona Editors at [e-mail]



(END) Dow Jones Newswires

November 13, 2020 05:05 ET (10:05 GMT)

[the grumpy old men] 12/11/2020 08:41

Total SE has acquired Charging Solutions, a German business that operates electric-vehicle charging infrastructure, the French energy company said Thursday.

The acquisition of the Munich-based business from Viessmann Group provides Total with a network of 2000 charge points in the country. The points are installed at the sites of private businesses, with some accessible to the public, Total said.

The company provided no financial details of the deal, but said that the integration of Charging Solutions into its German affiliate Total Deutschland was effective as of Nov. 1.

Alexis Vovk, Total's president for marketing and services, said the company's ambition was to operate 150,000 charge points in Europe by 2025.



Write to Joshua Kirby at [e-mail]; @joshualeokirby



(END) Dow Jones Newswires

November 12, 2020 02:49 ET (07:49 GMT)

[the grumpy old men] 12/11/2020 07:56

ADNOC, Total deliver first unconventional gas from UAE’s Ruwais Diyab concession

Oil & GasUpstreamOnshore

By NS Energy Staff Writer 12 Nov 2020

The gas is delivered through a purpose-built pipeline and a centralised early production facility in the Diyab field for distribution
gas-863195_640 (1)



Abu Dhabi National Oil Company (ADNOC) and French oil and gas major Total have commenced unconventional gas production from the Ruwais Diyab Concession located 200km west of Abu Dhabi city in the UAE.

The move, which marks a key step ahead towards full field development, follows the signing of the region’s first unconventional gas concession agreement between ADNOC and Total in 2018.

The firms deliver the unconventional gas from the Ruwais Diyab concession through a purpose-built gas pipeline and a centralised early production facility in the Diyab field. This enables distribution through ADNOC’s gas network.

ADNOC upstream executive director Yaser Saeed Almazrouei said: “This achievement marks another important milestone in the development of the UAE’s unconventional gas resources as we deliver on our integrated gas strategy and work to achieve gas self-sufficiency for the nation.

“The accelerated progress in Ruwais Diyab is a testament to the long-standing partnership between ADNOC and TOTAL, which has enabled us to expedite the learning curve in the production of unconventional gas resources, provided cost optimization opportunities and driven efficiencies.

“All of these remain key as we move forward with confidence to further develop the concession and unlock its substantial potential to drive sustainable value for the UAE and its people.”
ADNOC targets 1 billion scfd of gas production from concession

ADNOC aims to produce one billion standard cubic feet (scfd) of gas from the concession before 2030.

The company said that the concession would enable UAE to attain gas self-sufficiency.

As per the terms of the deal signed in 2018, Total agreed to explore, appraise and develop the concession area’s unconventional gas resources. ADNOC has also awarded 40% stake to Total in the concession.

The state-controlled oil company retains a stake of 60% in the onshore concession.

ADNOC also intends to unlock gas resources from its Ghasha concession and Abu Dhabi’s giant gas caps, apart from developing the Ruwais Diyab concession.

[grupo guitarlumber] 11/11/2020 17:04

Total Petrochemicals & Refining USA on Wednesday reported an operational problem at its refinery in Port Arthur, Texas that led to excessive emissions of sulfur dioxide and other gases.

"An unanticipated failure of the blower at Unit 870 necessitated a shift of acid gas from Unit 870 to Units 871 and 836," the refinery said in a statement to the Texas Commission on Environmental Quality. "The sudden volume of acid gas received at Unit 871 resulted in an exceedance of sulfur dioxide and hydrogen sulfide emissions from its Incinerator."

It said the emissions began Tuesday and lasted nine hours.

The 225,000-barrel-a-day Total Port Arthur refinery is located 95 miles east of Houston.



Write to Dan Molinski at [e-mail]



(END) Dow Jones Newswires

November 11, 2020 11:14 ET (16:14 GMT)

[waldron] 11/11/2020 05:20

S and P Global Platts

10 Nov 2020 | 18:19 UTC London

Oil and gas CEOs play down industry fears of Biden; stress 'collaboration'

Author Nick Coleman with Dania Saadi in Dubai Editor Richard Rubin Commodity Electric Power, Natural Gas, Oil Topic 2020 US Elections, Energy Transition, Environment and Sustainability, US Policy

Highlights

Occidental's Hollub 'not so worried' about Democrat's agenda

Total's Pouyanne sees US investment opportunities

Vitol's Hardy sees 'European flavor' entering US market

London — Oil and natural gas industry executives have given a cautious welcome to the prospect of a Joe Biden presidency in the US, with Occidental Petroleum CEO Vicki Hollub saying the industry will be "OK" provided it pursues a long-term strategy and Total CEO Patrick Pouyanne saying he sees increased US investment opportunities.
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Speaking at Abu Dhabi's virtual ADIPEC conference Nov. 10, Hollub said she did not share fears harbored by some of a clamp-down on the industry, but it was important to "collaborate" with, and educate the new administration on advances in the fracking industry, as well as techniques such as carbon capture.

Biden promoted a $2 trillion clean energy and infrastructure plan as part of his successful presidential campaign, and has also talked of constraining oil and gas activity on federal lands, although as Hollub pointed out he is expected to face resistance in Congress to some of his pledges.

US ELECTIONS: Biden administration unlikely to much affect Oxy permitting: executives

CAPITOL CRUDE: US energy outlook under Biden White House as Senate control still undecided

Also, the less focus from the incoming administration, the more time Oxy has to begin working with his staff, she said.

"The transition from the [Trump] administration that's been very, very supportive of the industry to Mr. Biden, who will become president in January, I think is going to be one that will surprise some people," Hollub told the online event, also noting Occidental's role as the world's largest "handler" of carbon dioxide emissions, which it uses to reinject into oil fields to boost recovery rates, including in the US.

"Mr. Biden also has some knowledge of carbon capture, his staff is certainly aware of what that means for us and for the industry, for the world," Hollub said. "I have hopes that as we go forward that the regulations will be things that the industry really is doing already today. I'm not so worried about it. There may be times when our development plans are slowed down a bit by permitting processes that may be a little more bureaucratic, but in the end as long as we have our long-term development plans in place, I think we'll be okay as an industry.

"It gets back to collaboration," Hollub said. "No matter who's in the White House, no matter which party controls the Senate and the House, it's really imperative for us as an industry to collaborate with them, with the regulators and with people in our society to help people understand what fracking really is, how we're doing it so much better today than we have done in the past. I'm not as worried as some people are, it's going to take some work to share that knowledge and to get his staff on board."
Total's investments

Total's Pouyanne took a relaxed stance as he noted earlier in the conference the French company is the US' largest exporter of LNG, as well as holding a controlling interest in California-based renewables company SunPower and stakes in Gulf of Mexico oil fields.

US policy is "mainly driven by the economics," Pouyanne told the event Nov. 9. "Looking at renewables, the US is one of the most mature markets, renewables were developed in Europe, in China and in the US [and] this is a market where we made our first steps in renewables. And we are thinking now to come back and to increase our exposure to the US.

"If there are policies encouraging the transition it's fine," Pouyanne said. "The US will be for us a field of opportunities where we will develop our strategy based on two pillars: natural gas and renewables. So I'm welcoming these policies, but these are long trends and the US economic players... know how to jump to the profitable markets."

Former BP CEO Bob Dudley, who now chairs a consortium called the Oil & Gas Climate Initiative, said Biden would have to strike a balance between calls for a rapid energy transition described as a "Green New Deal," and concerns over affordability, as well as population growth in the wider world.

"I think he understands it, it can't be as fast," Dudley said. "Hopefully he'll talk to many people in the industry about what's possible, what technologies are coming and what can be done. I don't think you can go as far as the Green New Deal in the US because it simply can't afford it and it won't actually deliver the energy, so there's somewhere along that spectrum that I think he'll come to."

Russell Hardy, CEO of trading company Vitol, said he detected a "change of mood" in the US industry, with more European attitudes coming to prevail.

"I think that pushes up the cost of capital in the US," he said. "It gives the American oil market a more European flavor. There will be more ESG (environmental, social and governance) pressure. There will be more shareholder pressure over how businesses conduct themselves, over the way that businesses extract oil and gas."

[sarkasm] 11/11/2020 02:14

An Oil Market Recovery Is On The Horizon
By Cyril Widdershoven - Nov 10, 2020, 7:00 PM CST
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The major participants at ADIPEC 2020’s ADNOC Trading Forum expressed a wide range of sentiment, but the general message was one of caution or even outright pessimism when it came to oil price movements. The Virtual Conference, which was held in Abu Dhabi, was dominated by three main topics, the impact of COVID-19, global oil and gas demand destruction, and the U.S. election results. With a wide range of speakers including representatives from Abu Dhabi’s national oil company ADNOC, the major storage company VITOL, Japanese company ENEOS, Abu Dhabi Global Markets (ADGM), and OMV amongst others, the forecasts for 2021 were plentiful and varied. The main takeaways for observers were that markets may be growing increasingly optimistic about a COVID recovery, but oil prices are unlikely to see a real recovery before the end of 2021. Oil market fundamentals are very weak at the moment and even if a COVID-19 vaccine is produced, the impact on fundamentals will be slow. Furthermore, any oil market recovery could easily be halted by a change in the strategy of OPEC+ or any other supply increase before demand picks back up. According to Energy Intelligence, Platts and Argus, the overall expectation for oil prices in 2021 is in the high $30s to mid $40s per barrel. In a panel with Martin Fraenkel, Euan Craik, and Alex Schindelar, all three industry leaders agreed that they expected a more optimistic situation in 2022. The three oil analysts emphasized that much will depend on the success of tackling COVID globally and the resilience of the market in the face of a possible supply boost.

Russel Hardy, the CEO of Vitol, argued that 2020 has shown how resilient the hydrocarbon sector still is. Despite the major breakdown of demand due to the COVID-19 pandemic, Hardy claimed that Vitol has been able to ride out the storm and is fully prepared for 2021. While a combination of negative prices, demand destruction, and a storage glut means that a return to normal is still a long way away, an industry recovery is well and truly underway. Kajo Fujiwara, the Executive Officer of Crude Trading and Shipping for Japanese company ENEOS emphasized that “work continued even in COVID time”. He said that was particularly difficult as a state of emergency had been put in place in Japan as its refineries were forced to cut, exports decreased and margins were very low. The company’s investment plans were also altered as several projects were delayed. In H2, however, ENEOS saw refinery runs increase and signs of demand recovering.

Related: This Just Became The World's Largest Gas Hub

When asked about ADNOC Trading, Khaled Salmeen, the Executive Director, stated that the company “has not stopped doing what we wanted to do….we wanted to go strong on trading and we are as ADNOC Global Trading is going to go live in the coming weeks”. When asked about the impact of COVID on trading, Salmeen stated that for his company it had been an opportunity, as working on risk management and pricing has allowed the company to become more resilient. ADNOC Trading is developing well, with the crude book having gone live in September and the products book via Global Trading set to go live in the coming weeks. ADNOC is now starting to train and support the next generation of traders in the UAE. An ADNOC Trading official added that ADNOC Trading plans to set up representation internationally, including in the U.S. As well as trading, Salmeen confirmed that ADNOC Trading is also looking at entering the shipping space. ADNOC has always been an FOB seller. Shipping is now going to be a major part of the company. The cost of both second hand and new vessels in the current climate is extremely attractive for those with capital.

Overall it was a mixed takeaway from the event. COVID is once again hovering over markets with a second round of lockdowns in the EU, and price volatility has increased. For some, such as Hardy, real optimism could return to markets in H1 2021. There doesn’t seem to be any significant demand increase set to take place in winter and even if a COVID vaccine is produced, the real impact won’t be felt in the market before end H2 2021. At the same time, all participants agreed that the OPEC+ strategy is one of the major factors to watch. Vitol expects normal stock levels by Summer 2021, but even that will depend on OPEC+ strategies. New additional production, such as from Libya or Iran, could set markets back. A return to normal stock levels would see prices rising at the end of 2021. Hardy is cautiously optimistic but admits that it all depends on a continuous flow of “good news”. The Vitol official expects oil prices to recover to the high 40s or even the 50s in H1 2021, although any demand reduction would hurt that prediction.

When asked about Biden, Hardy said that any U.S. supply response would be price related. He stated that if Biden rejoins JCPOA and Iranian oil flows again, prices will be hit hard. He doesn’t expect the Biden Administration to have much of an impact on U.S. shale production though. While new regulations would impact production by increasing overall costs, the sector itself is largely non-political.

Even the oil and gas situation in Asia remains unclear. According to ENEOS’ Kajo, the COVID impact is still very much being felt. While the economies have suffered less than their western country parts, the impact on demand is still tangible. She said that China’s demand is healthy, but other countries such as Japan and India are still suffering. In Japan, refining margins are still suffering as JET demand is very low, and export markets are yet to recover. When asked about a possible Peak Oil demand scenario in Japan, the ENEOS official said that COVID has moved it forward dramatically.

By Cyril Widdershoven for Oilprice.com

[maywillow] 10/11/2020 13:15

Total SE said Tuesday that its wholly-owned subsidiary Saft Groupe SA opened a manufacturing hub for energy-storage solutions in Zhuhai, China.

The plant will have a manufacturing capacity of around 200 containers a year, which equates to 480 megawatt hours, according to the French energy company.

Total said the hub will allow Saft to serve its customers with an integrated approach to energy storage--from initial concept and sizing to system engineering, delivery and grid connection.



Write to Giulia Petroni at [e-mail]



(END) Dow Jones Newswires

November 10, 2020 06:44 ET (11:44 GMT)

[waldron] 10/11/2020 09:53

Commissioning delayed for Total’s $3.3bn Tyra Redevelopment project in North Sea

Oil & GasUpstreamOffshore

By NS Energy Staff Writer 09 Nov 2020

A redevelopment of the Tyra field was sanctioned by the DUC in 2017 due to seabed subsidence
oil-platform-484859_640

The Tyra field is located in the Danish waters of North Sea. (Credit: D Thory from Pixabay)

Norwegian Energy Company (Noreco) and its partners have postponed the first production from the $3.3bn Tyra Redevelopment project in the Danish waters of North Sea, from 2022 to second quarter of 2023 due to the ongoing Covid-19 pandemic.

The firm, however, said it would complete the Danish Underground Consortium (DUC)-operated Tyra Redevelopment project, within budget.

DUC is a partnership between the operator Total with 43.2% stake, Noreco with 36.8% interest and Nordsøfonden with 20% stake.

The local governmental restrictions amid Covid-19 have affected the schedule of the new Tyra topsides at the fabrication yards, including through the global supply chain delivering topsides’ key components.

As a consequence, the installation of the four new topsides has been rescheduled from 2021 to 2022.

Claimed to be the largest gas condensate field in the Danish Sector of the North Sea, the Tyra Field facilities process more than 90% of the Danish gas.

A redevelopment of the Tyra field was sanctioned by the DUC in 2017 due to seabed subsidence.

The Tyra Redevelopment project involves the removal and decommissioning of the prior Tyra platforms, reuse and 13m extension of the current jackets at six platforms featuring new topsides and a new process platform and a new accommodation platform.
Tyra Redevelopment project to have 60,000 boed production capacity

Upon commissioning, the Tyra Redevelopment project is expected to have a peak production capacity of approximately 60,000 barrels of oil-equivalent a day (boed).

In August, Allseas said it heavy lift vessel Pioneering Spirit has removed the processing and accommodation topsides and flare jackets for the Tyra redevelopment project.

Under a contract, Allseas is responsible for engineering, preparation, removal, transportation, load-in to shore and recycling of the Tyra East Alpha (TEA) and Tyra West Alpha (TWA) topsides and jackets, integrated production facilities (IPF) module along with two flare jackets and monopole.

[waldron] 09/11/2020 12:12

Dow futures jump 1,200 points as Pfizer, BioNtech say Covid-19 vaccine is 90% effective

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Yun Li
@YunLi626