popular articles

North Sea gas exploration: Oil companies pull out

Some major oil companies, such as JX Nippon, are withdrawing from North Sea exploration on a massive scale. Some major oil companies, such as JX Nippon, are withdrawing from North Sea exploration on a massive scale.
gaz mer du nord

Please share:

Some major oil companies, such as JX Nippon, are withdrawing from North Sea exploration on a massive scale. This echoes the recent Roadmap to Carbon Neutrality published by the IEA. But the UK is resisting and granting new permits.

Major oil and gas groups are less and less interested in prospecting in the North Sea

Some oil companies are currently withdrawing from prospecting in the North Sea. This, to focus on the energy transition in their chosen sector. Oil and gas assets are gradually being sold off to private companies. These companies believe they will be able to exploit the remaining reserves more profitably.

One of the biggest operators pulls out

Active in the basin since 2002, JX Nippon has increased its exploration requests and purchases of new fields. Today, he is involved in some of the largest operations in the North Sea. However, the Group is now looking to sell its oil and gas assets.

The sale includes the Andrew (oil), Mariner (oil) and Culzean (gas) projects. These represent 300 million barrels of reserves, or around 5% of Britain’s gas requirements. In 2018, before the start-up of Marinier and Culzean, JX Nippon’s fields produced 6,500 barrels ofoil equivalent per day.

jx nippon
JX Nippon sells its three North Sea oil and gas assets Mariner, Andrew and Culzean.

Asset sales could top $1.5 billion

JX Nippon hired Bank of America and Kirk Lovegrove as advisors for the sale of its numerous assets. Some estimate that the final deal could be as high as $1.5 billion, given the size of JX Nippon’s fields. BP has also sold its interest in the Shearwater field to Tailwind, for an undisclosed sum.

Both BP and JX Nippon appear to be undergoing global restructuring. The withdrawal from North Sea exploration is in line with the energy transition.

Oil and gas: “undesirable investments” according to the IEA

TheInternational Energy Agency (IEA) recently published its shock scenario and recommendations for achieving totally decarbonized emissions by 2050. Presenting Net Zero by 2050, A Roadmap for the Global Energy, IEA Executive Director Fatih Birol called oil and gas “undesirable investments”.

This roadmap will also be submitted to leaders ahead of COP26 in Glasgow in November 2021.

The British government continues to grant exploration permits

The IEA’s main recommendation is therefore to stop investing in fossil fuels. While the UK appears to be on the right track for transition, this report nevertheless issues a warning. Recently, the British government was accused of slowing down the closure of an environmentally damaging coal mine.

What’s more, an agreement signed in March 2021 allows the British government to award new oil licenses in the North Sea. The UK has awarded numerous offshore exploration licenses, which it refuses to suspend. Exploration work, which was interrupted in March 2021 for technical reasons, is due to resume shortly.

“Phase out international fossil fuels”.

“All future licenses are only granted because they are in line with the Government’s wider climate change ambitions, including the UK’s goal of achieving net zero by 2050,” says the UK Department for Business, Energy and Industrial Strategy.

The UK has thus authorized prospecting in the North Sea in exchange for promises to reduce emissions. The UK’s oil and gas industry body (OGUK) agrees with the IEA’s statements. At the same time, continued exploration under government control seems essential to the current British economy.

Stopping local exploration would be a major disadvantage for the ongoing energy transition,” adds Mike Tholen, OGUK’s Director of Sustainable Development.

Finally, the UK and G7 countries share many of the priorities set out in the IEA report. However, they say that fossil fuels must be phased out gradually, at a pace adapted to local conditions.

Register free of charge for uninterrupted access.

Publicite

Recently published in

Cheniere has signed a long-term gas supply agreement with Canadian Natural Resources to support the planned expansion of its Sabine Pass liquefaction terminal in Louisiana from 2030.
Cnooc will immobilise its Hai Yang Shi You 301 barge in July, temporarily reducing LNG bunkering capacity in China, where only five units handle supply.
Cnooc will immobilise its Hai Yang Shi You 301 barge in July, temporarily reducing LNG bunkering capacity in China, where only five units handle supply.
The Iraqi federal government initiates legal proceedings against the autonomous region of Kurdistan regarding gas contracts signed with American companies, while Washington reaffirms its support for these strategic energy agreements.
The Iraqi federal government initiates legal proceedings against the autonomous region of Kurdistan regarding gas contracts signed with American companies, while Washington reaffirms its support for these strategic energy agreements.
South Africa aims to revive the exploitation of its shale gas reserves by seeking technological and commercial support from the United States, proposing a major purchasing agreement for American liquefied natural gas.
South Africa aims to revive the exploitation of its shale gas reserves by seeking technological and commercial support from the United States, proposing a major purchasing agreement for American liquefied natural gas.
Several Chinese companies have signed long-term contracts to purchase liquefied natural gas indexed to the U.S. Henry Hub, despite heightened trade tensions and the recent application of specific tariffs on American hydrocarbons.
Jereh integrates artificial intelligence solutions into its oil operations, increasing fracturing efficiency by 36% through an autonomous electric system tested in the Sichuan Basin.
Jereh integrates artificial intelligence solutions into its oil operations, increasing fracturing efficiency by 36% through an autonomous electric system tested in the Sichuan Basin.
The Australian government has authorized an extension of the major North West Shelf gas project until 2070, sparking economic, cultural, and environmental debates both domestically and on international liquefied natural gas markets.
The Australian government has authorized an extension of the major North West Shelf gas project until 2070, sparking economic, cultural, and environmental debates both domestically and on international liquefied natural gas markets.
Pacific Energy’s Canadian subsidiary plans to produce liquefied natural gas with one of the lowest carbon intensities in the sector, using low-emission technologies and local carbon credits.
Pacific Energy’s Canadian subsidiary plans to produce liquefied natural gas with one of the lowest carbon intensities in the sector, using low-emission technologies and local carbon credits.
South Africa has proposed a liquefied natural gas import agreement with the United States to strengthen bilateral trade and establish a long-term business partnership.
ICSID increases compensation owed to Enagás to USD 302 million in dispute over Peru’s cancellation of a major gas pipeline project.
ICSID increases compensation owed to Enagás to USD 302 million in dispute over Peru’s cancellation of a major gas pipeline project.
Belgrade has confirmed the temporary extension of its gas supply contract with Moscow, ensuring the daily delivery of 6 million cubic metres until autumn at an unchanged price.
Belgrade has confirmed the temporary extension of its gas supply contract with Moscow, ensuring the daily delivery of 6 million cubic metres until autumn at an unchanged price.
European gas reserves reach 50.3 bcm, but current injection rates may prevent meeting the 90% regulatory target before November.
European gas reserves reach 50.3 bcm, but current injection rates may prevent meeting the 90% regulatory target before November.
The U.S. federal commission has authorised Venture Global to begin construction of the CP2 plant, a 28 Mt/year LNG terminal that could become the country’s largest.
The Algerian state utility plans a 56% increase in 2025 investment, targeting domestic network expansion and electricity export growth towards Europe and Africa.
The Algerian state utility plans a 56% increase in 2025 investment, targeting domestic network expansion and electricity export growth towards Europe and Africa.
Wood Mackenzie warns of a potential gas supply deficit in Indonesia, due to slow development of untapped resources and a lack of attractive regulatory framework.
Wood Mackenzie warns of a potential gas supply deficit in Indonesia, due to slow development of untapped resources and a lack of attractive regulatory framework.
Mubadala Energy will supply natural gas to two Pupuk Indonesia plants starting in late 2028, when production begins at the South Andaman block, according to statements made at an industry forum in Jakarta.
Mubadala Energy will supply natural gas to two Pupuk Indonesia plants starting in late 2028, when production begins at the South Andaman block, according to statements made at an industry forum in Jakarta.
QatarEnergy is set to begin liquefied natural gas production in the US by the end of 2025 and expand its North Field East project in Qatar starting mid-2026.
TotalEnergies has signed a 20-year contract to purchase 2 million tonnes per annum (Mtpa) of LNG from Ksi Lisims LNG, a liquefaction project located in British Columbia, Canada.
TotalEnergies has signed a 20-year contract to purchase 2 million tonnes per annum (Mtpa) of LNG from Ksi Lisims LNG, a liquefaction project located in British Columbia, Canada.
Shell shareholders approved 21 out of 22 resolutions at the Annual General Meeting, rejecting a motion related to liquefied natural gas activities despite strong overall support for the group’s strategy.
Shell shareholders approved 21 out of 22 resolutions at the Annual General Meeting, rejecting a motion related to liquefied natural gas activities despite strong overall support for the group’s strategy.
An Australian tribunal has approved Santos' $2.3 billion Narrabri gas project despite objections from Indigenous communities and environmental concerns, citing major public benefits for gas supply.
An Australian tribunal has approved Santos' $2.3 billion Narrabri gas project despite objections from Indigenous communities and environmental concerns, citing major public benefits for gas supply.
Indonesian state-owned oil company PT Pertamina has signed ten gas sales agreements with domestic firms, including gas distributor PGN and electricity provider PLN.
Physical and derivatives trading of liquefied natural gas in Asia reached unprecedented levels during the June pricing period, with a significant increase in bids and transactions amid the shoulder season.
Physical and derivatives trading of liquefied natural gas in Asia reached unprecedented levels during the June pricing period, with a significant increase in bids and transactions amid the shoulder season.
Mexico could eliminate imports of 384 billion cubic feet of gas per year by reaching 45% clean electricity by 2030, according to Ember.
Mexico could eliminate imports of 384 billion cubic feet of gas per year by reaching 45% clean electricity by 2030, according to Ember.
Energean transfers its offshore stakes in Morocco to Chariot just one year after entering the market, following below-expectation outcomes from the Anchois-3 gas well.
Energean transfers its offshore stakes in Morocco to Chariot just one year after entering the market, following below-expectation outcomes from the Anchois-3 gas well.

Advertising