WTI (Nov) $88.82 -$1.97, Brent (Dec) $90.71 -$1.49, Diff -$1.89 +48c
USNG (Nov) $2.84 -9c, UKNG (Nov) 96.66p -13.0p, TTF (Nov) €36.78 -€4.47

Oil price

Oil weakened yesterday, it was a combination of a bit of profit taking as the quarter started and also the weak dollar had its turn in putting off buyers. Also the news about the Turkish pipeline reopening finally convinced the market that supply was increasing although only a little. The Opec meeting starts tomorrow and given that Brent is off the top I can’t see the Saudis offering to cut back this time.

Angus Energy

Angus Energy Third Quarter Production and Operations Update

• Production for the Quarter was 7.9 mm therms up
• Estimated revenues of £6.3m for the Quarter

Gas volumes produced and sold from the Saltfleetby Field equalled 7.9 mm therms in aggregate for the months of July, August and September 2023 combined, compared to 6.8 mm therms produced and sold in the second quarter of this year. Third quarter production equates to an average of 2.6 mm therms per month (2.3 mm therms per month in the second quarter), as against hedged volumes of 1.5 mm therms per month for the third quarter (1.75 mm therms per month for the second quarter).  Operational efficiency was 90% for the 3rd quarter (88% operational efficiency for the second quarter). Gas condensate (liquid) production averaged 160 bbl/day.

The quarter included a planned full plant shut down for 4 days at the end of August for safety-critical maintenance and remedial work on one of the two compressor engines on the Saltfleetby site. One of the compressor engines suffered a mechanical issue in the second half of September. The compressor returned to service on 2 October, allowing dual compressor operations to recommence.

The B07T well has continued to clean up through the temporary flowline connecting it to the field facilities and now returns only minor quantities of solids, associated with the drilling fluids used to drill the well. Construction of the permanent flowline from the well continues, with civil works complete and the fabrication of the pipework largely finished. Installation of the flowline will take place in the coming weeks, with commissioning planned for the second half of October.

Work on the previously announced global refinance of the Company’s debt is well advanced, with a new reservoir model and production forecasts in the process of being finalized for lenders.

This is a very good update from Angus with better than expected production and estimated revenues of £6.3m for the Quarter also beat targets. Excellent operating efficiency which again beat the whisper and the liquids number was good. 

With the numbers continuing to beat targets Angus is operationally in good shape, and the news that the refinancing is ‘well advanced’ is also good news. I remain very happy with Angus and am impressed with the way management has seamlessly continued.

Petrofac

Petrofac has been awarded an Engineering, Procurement and Construction (EPC) contract by ADNOC Gas for its Habshan Carbon Capture, Utilisation and Storage (CCUS) project, one of the largest carbon capture projects in the Middle East and North Africa region.

The contract is valued at more than US$600 million and involves the delivery of carbon capture units, associated pipeline infrastructure and a network of wells for carbon dioxide (CO2) recovery and injection. Located at the Habshan gas processing plant, 150 kilometres southwest of Abu Dhabi, the project is part of ADNOC’s accelerated decarbonisation plan.

Tareq Kawash, Petrofac’s Group Chief Executive, said:
“By accelerating plans to make energy cleaner, the UAE is investing in its future. We look forward to combining our CCUS expertise and UAE project delivery experience to support ADNOC Gas in delivering on their decarbonisation plans, maximising energy output while minimising emissions, and helping to support the UAE’s energy transition.”

Elie Lahoud, Chief Operating Officer, Petrofac Engineering & Construction, commented:
“Petrofac is committed to supporting ADNOC Gas in delivering lower-carbon growth. We have over 30 years’ experience of successful delivery here in the UAE and continue to put In-Country Value at the centre of our operations, utilising the local supply chain, developing capabilities and creating new opportunities for UAE Nationals.”

Petrofac has been deploying its expertise in gas processing, transport, and storage, to support the early development and definition of large-scale CCUS projects since 2015. The company first established a presence in the UAE in 1991 and has developed a large workforce to support both regional and international energy projects. With a commitment to deliver In-Country Value, Emiratisation is a key business priority and Petrofac is actively promoting current career opportunities.

Petrofac have every base covered it seems, with their quality and excellent reputation in the carbon capture area they have a long term opportunities to take advantage of their market leading position. Another major contract and yet the market remains to be convinced of the recovery, it surely won’t be long. 

Reabold Resources

Earlier today I had the great pleasure of interviewing the Joint CEO’s of Reabold Resources, Sachin Oza and Stephen Williams. The link to the recording is below.

Core Finance CEOs Interview: Stephen Williams and Sachin Oza, Reabold Resources

KeyFacts Energy Industry Directory: Malcy's Blog