Perenco has announced a successful drilling operation for its Onyx well, encountering significant columns of natural gas in two separate geological compartments. The Onyx field is an undeveloped gas discovery located within the TSP license, offshore Trinidad.
The producer aims to reach oil output of 2.4 million barrels a day after dropping to less than half of that level in 2022. Nigeria has taken measures to reduce vandalism and improve regulations, as oil majors have divested from onshore and shallow water fields due to security concerns. Local independent companies are expected to raise output as assets are transferred from recent sales.
“Petrobras is no longer active in Nigeria, but they are very keen on coming back to Nigeria. They said they want frontier acreage in deep waters,” Nigeria’s foreign minister said, as quoted by Reuters. The publication recalls that Brazil used to operate in the deepwater sector of Nigeria’s continental shelf some 30 years ago but a decade ago it sold its operations there to raise cash for growth at home.
“Our emerging partnership with Corcel is emblematic of our strategy to work with best-in-class partners and deploy high-impact capital that brings us exposure to large potential resource outcomes that require little additional capital. We look forward to the expansion of our West African conjugate margin exposure through KON-16, one of the most promising blocks in a proven, underexplored basin,” said Sintana CEO Robert Bose.
During the dealmaking round, Aramco finalized an agreement to buy 1.2 million metric tons per annum (MMtpa) of LNG for 20 years from the fourth train of the under-construction Rio Grande LNG project in Brownsville, Texas. Owner NextDecade Corp. is seeking purchase commitments to be able to make an FID (final investment decision) on trains 4 and 5. NextDecade has so far approved three trains, which comprise phase 1 – out of eight planned for the project.
In May and June, the Organization of the Petroleum Exporting Countries and its partners are due to add 411,000 barrels a day each month. Ministers will decide on July production levels during a video-conference on June 1, and Goldman Sachs Group Inc. predicts they will agree a third and final hike of about 411,000 barrels a day.
Trump is visiting the Middle East this week, hoping to strike deals with countries including Saudi Arabia. The kingdom — the de-facto leader of the Organization of the Petroleum Exporting Countries and its allies — has pushed the cartel to increase output to punish noncompliant members. A further boost expected at a June 1 meeting would add to concerns about a surplus.
The company previously said it plans to make the final investment decision on the new facility by mid-2025 but, its chief executive said, it needs the go-ahead from the regulator. FERC had earlier rescinded its approval for the project on the grounds of concern related to its impact on air quality in the area. The concern prompted a second environmental assessment, which the regulator completed last week, concluding there was no danger for air quality, after all.
The Montney formation in Western Canada spans Alberta and British Columbia is one of the largest natural gas deposits on the continent. Currently, the Montney shale produces some 2 million barrels of oil equivalent daily. A lot of this is gas, and even more will be gas once LNG Canada begins operation, with the launch scheduled for later this year. Indeed, the launch of the project is leading to growing interest in the play, which also has some rather solid crude oil resources—and some of the lowest production costs in the industry.
“This agreement marks an important milestone in XRG’s global growth strategy and builds on the strengthening relationship between the UAE and Turkmenistan. It strengthens XRG’s presence in the Caspian region, expands our resource base and reflects our ambition to be a reliable supplier of cleaner energy to meet the world’s evolving needs,” said Mohamed Al Aryani, XRG president of International Gas.