07/16 Weekly oil & gas update

Libya reopens major oil terminals and 70-Kb/d El Feel field

Libya’s NOC has reopened four major oil export terminals after a blockade by eastern factions was lifted. The terminals had been shut down since mid-June, affecting around 850 Kb/d of the country’s 1-MMb/d oil production. Meanwhile, the 70-Kb/d El Feel field, shut down since February, has also been reopened

Norway workers’ strike affects 24-Kboe/d Knarr field

On Tuesday, hundreds of Norway’s rig workers went on strike after wage disputes, and the strike is expected to widen this week. Shell has temporarily closed production on its 24-Kboe/d Knarr oil field, while Equinor has shut down drilling operations at its Snorre B platform

Syncrude project expects return to full capacity by September

Canada’s Suncor Energy, the majority holder of the Syncrude oil sands facility, has announced that the Syncrude project will resume some production in July and only return to full capacity in September. Syncrude’s 360-Kb/d output was disrupted last month due to a power outage, affecting 10% of Canadian oil production and narrowing the WTI-Brent spread

Supermajors reduce holdings in North Sea

Total announced that it plans to sell ~USD1.5 billion worth of pre-existing assets in the North Sea as well as fields gained in the acquisition of Maersk earlier this year. Chevron has also announced its intention to sell all of its UK Central North Sea assets

Anadarko increases buyback program by USD1 billion

Anadarko Petroleum has announced an increase in its share buyback program from USD3 billion to USD4 billion, to be completed by June 2019. An additional USD500 million was allocated to its debt reduction program

Pennsylvania turns down plan to partly reverse fuel pipeline

In a unanimous vote, the Pennsylvania Public Utility Commission turned down a petition by Buckeye Partners to reverse a western portion of the Laurel product pipeline, which connects Philadelphia area refiners to the Pittsburgh market

Saudi refinery exports first gasoline barrels to US

The 400-Kb/d Jubail SATORP refinery, a joint venture between Saudi Aramco and Total, has shipped its RBOB gasoline to the United States for the first time, a potential precursor to more deliveries to a region where prices are currently at seasonal three-year highs

Nigeria LNG enters Train 7 FEED deals

Nigeria LNG Limited (NLNG) has awarded B7 JV and SCD JV Consortia with the FEED contracts for the seventh train at its Bonny Island LNG facility. The USD12-billion expansion will increase the plant’s capacity from 22 mtpa to 30 mtpa. NLNG shareholders include the Federal Government of Nigeria, Shell, Total, and ENI

Total finalizes Engie’s upstream LNG business takeover

Total has announced the closing of its upstream LNG business acquisition from Engie for the total of USD1.5 billion, with an optional payment of USD0.55 billion depending on the future oil price. According to Total, the transaction makes it the second biggest LNG player, with a market share of 10%

Apple and partners form USD300-million China Clean Energy Fund

Apple, along with 10 suppliers, will jointly invest ~USD300 million through 2022 to create the China Clean Energy Fund. The fund, to be managed by the asset management group of Deutsche Bank, aims to develop over 1 GW of renewable energy in China

Average weekly oil & gas prices

Brent (USD/bbl): 76.02 ▼ (-1.54)
WTI (USD/bbl): 71.94 (-1.77)
Henry Hub (USD/mmbtu): 2.80 (-0.06)
TTF (USD/mmbtu): 7.71 (0.07)

New insight

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The European electric bus market is charging ahead, but how will it develop?

Widescale adoption of electric buses in Europe is near. There is still a lot of uncertainty around eBus battery charging strategies and the optimal type of charging hardware, mainly related to costs and operational flexibility.

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