Latest News
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Governor of Bashkortostan, Russia says oil company will continue production after drone attack
Radiy Khabirov, the regional governor of Bashkortostan in Russia, said that a company producing oil will continue to produce despite an attack by drone on Saturday. Ukraine intensified its attacks on Russian energy infrastructure to weaken Moscow's military capability, while peace negotiations are still stuck. The attack caused a fire to break out at an oil refinery operated by Bashneft. Rosneft is Russia's biggest oil producer. Bashneft operates four major oil and petrochemical refineries in the area. Khabirov didn't specify the facility that was targeted. Both drones that were downed fell onto the property of the company. In the first instance, a small flame broke out and was quickly put out. In the second instance, the supply was cut off of technical water," Khabirov stated on Telegram. He said that the plant will continue to function normally and there will be no production reductions or operational stops. In his statement, he did not mention Ukraine. Unverified footage circulated on local Telegram channels, showing an object flying in the facility followed by a fireball. Ufa is approximately 1,400 km (870 miles), or roughly, from the Ukrainian border. Reporting by Lucy Papachristou Editing and Peter Graff
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US Energy Council Chief: Future Offshore Wind Projects Unlikely
U.S. Interior Secretary and Energy Council Chief Doug Burgum has said that it is not likely that there will be future offshore wind projects built in the country under the current Trump administration.During the Gastech conference in Milan, Burgum said the renewable power from offshore wind is ‘just too expensive and not reliable enough’.“We are taking a deep look. There are five projects that are under construction and we’re taking a look at each of those,” Burgum said.When it comes to the solar power, and future projects, Burgum noted that for such projects, solar panels will have be produced by the U.S. itself,He also said during the Gastech conference in Milan that if there was to be a future for solar power in the United States, panels have to be made by the U.S. itself or its allies, and not China, due to reported ‘kill switches’ installed in the equipment supplied by the country.
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US appellate court pauses on climate rule challenges
Court documents show that a federal appeals court said on Friday it would suspend its consideration of the legal challenges against U.S. Securities and Exchange Commission climate regulations until Wall Street regulators decide whether they will change them or defend them in court. The SEC, under former president Joe Biden adopted rules that required publicly traded companies, led by Republican states, to inform investors about climate risks, emissions, and spending. Republican-led state and an industry group immediately challenged this in court. In March, under Republican President Donald Trump the SEC decided to stop defending this rule. The U.S. Court of Appeals, Eighth Circuit, issued an order Friday saying that the legal challenges would be put on hold to encourage judicial economy because the SEC refused to defend its rule in court, or to say if it intended to modify the rule or scrap it entirely. The order stated that it was the responsibility of the SEC to decide whether the Final Rules would be rescinded or repealed. It also noted that the SEC already had stayed the regulations’ effective date while the legal challenge was ongoing, so a delayed court ruling would not harm. The SEC didn't immediately respond to requests for comment, but in July the agency informed the court that it had no intention of reconsidering the rule and asked the court to continue the case anyway. Reporting by Douglas Gillison, Washington; Editing and proofreading by David Gregorio
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US EPA proposes to end mandatory greenhouse gas reporting
The U.S. Environmental Protection Agency (EPA) proposed a rule on Friday to end the mandatory reporting of greenhouse gas emissions by 8,000 facilities. This program, the EPA said, was burdensome for businesses but left the public in the dark about the environmental impact. The agency stated that mandatory collection of GHG emission data is unnecessary as it "is not directly related to potential regulations and has no significant impact on improving the health and environment of humans." KEY QUOTE The Greenhouse Gas Reporting Program, according to EPA Administrator Lee Zeldin, is nothing but bureaucratic red-tape that doesn't improve air quality. BACKGROUND The rule is a response to an executive order that was issued on the first day of President Donald Trump's presidency. It aims to remove barriers to releasing more U.S. Energy, especially fossil fuels. This is just the latest in a long line of regulatory rollbacks that have undone previous U.S. attempts to combat climate changes. Earlier this year, the EPA revealed plans to repeal its "endangerment findings" which allowed it to regulate greenhouse gases from stationary and vehicle sources. The proposal, if finalized, would eliminate reporting obligations for all large facilities, fuel and industrial gas providers, and CO2 injector sites. The Trump administration also announced that it would pull the U.S. out of the Paris Climate Agreement, which requires all countries to reduce greenhouse gas emissions. Key Context The Trump administration also took steps to stop the collection of environmental databases by the EPA and other federal agencies such as the National Oceanic and Atmospheric Administration and NASA's satellites that monitor greenhouse gases. DETAILS Under the Greenhouse Gas Reporting Program, 47 categories of sources covering 8,000 suppliers and facilities are required to calculate their greenhouse gas emission and submit it annually. The agency will continue to require the submission of data on methane emissions for large oil-and-gas operations that are subject to a charge for waste emissions. (Reporting and editing by Richard Chang; Valerie Volcovici)
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NATO launches "Eastern Sentry" to strengthen eastern flank following Russian drone incursion
NATO Secretary General Mark Rutte announced that NATO launched on Friday an operation called Eastern Sentry in response to Russian drones entering Polish airspace this week. Rutte said at a NATO press conference in Brussels that "we must make it clear to the world our determination and our capability to defend our territories." He said this while standing next to NATO's top commander U.S. Air Force general Alexus Grynkewich. Rutte stated that NATO was still assessing possible intentions behind the incursion. This led to Polish and NATO allies shooting down drones, the first such action NATO has taken since Russia's invasion of Ukraine in 2022. He said that the Russian action was "reckless" and "inacceptable", regardless of whether it was intentional. Russia claimed that its forces were attacking Ukraine when the drones entered the country and they had no intention of hitting any targets in Poland. Warsaw rejected this explanation and said the incursion had been a deliberate attack. FLEXIBLE RESPONSE ALONG EASTERN FLANC Grynkewich stated that Eastern Sentry is designed to be a flexible, integrated operation for bolstering defences along NATO’s entire Eastern flank. This extends from the Baltic States in the north all the way down to Romania and Bulgaria. He said, "Poland's citizens and those from the Alliance in general should feel assured of our swift response this week as well as our important announcement today." NATO has already deployed thousands of troops in Eastern Europe. The number of additional troops involved in this new operation was not specified. The announcement listed a modest amount of new military assets, including two F-16 fighters and a Danish frigate, three Rafale jet fighters from France, and four Eurofighter aircraft from Germany. Grynkewich, however, said that the new operation also aimed to adopt a more flexible strategy to defend the eastern flank in general rather than having static forces dedicated to a specific area. He said: "We will adjust our posture across the eastern flank in a way that keeps the enemy off-guard, while also responding to specific threats when we see them emerge." Reporting by Andrew Gray, Bart Meijer; Writing by Charlotte Van Campenhout, John Irish, Editing by GV de Clercq Alexandra Hudson, Aidan Lewis
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EU countries delay deal on new climate goal, diplomats say
Three EU diplomats said on Friday that the European Union has shelved its plans to adopt a new target for climate change next week after France and Germany resisted plans to reach a quick agreement. The countries are discussing a legally binding target of reducing net EU greenhouse gas emission by 90% from 1990 levels by 2040. A portion of this will be covered by purchasing foreign carbon credits. According to the European Commission, this will provide investors with certainty and help Europe reach net zero emissions in 2050. Climate change has caused Europe to become the fastest-warming continental in the world, unleashing deadly wildfires and record-breaking heatwaves. The EU is divided on how ambitious it should be when tackling global climate change, while also trying to increase defense spending and support struggling industry. On September 18, EU ministers were to have approved the 2040 target for climate change. Three EU diplomats have said that the ambassadors of EU countries cancelled this plan at a Friday meeting. The ministers said that next week they will discuss the goal of 2040, but any agreement will be discussed with EU leaders before the discussion is concluded. The diplomats asked to remain anonymous when discussing the closed-door discussion. If the EU fails to reach a deal by next week, it could miss the mid-September deadline set by the U.N. for all countries to submit their new climate plans in preparation for the COP30 summit on climate change scheduled for November. Diplomats have said that Denmark, Spain, and the Netherlands all support the 90 percent reduction in emissions target. France, Poland, and Italy, among others, have rejected the goal and asked that it be taken up with the heads of government at their next meeting in October. This could make it more difficult to reach an agreement. EU leaders make decisions in a unanimous manner, unlike ministers. Diplomats are discussing ways to convince sceptical nations, such as covering a larger share of the climate goal with carbon credits or tying a deal to other EU laws, like the carbon border tax or the 2035 phase-out of combustion engine cars. A spokesperson for the Environment Ministry said that Germany supports the goal of cutting emissions by 90%, but believes it is important to have discussions among the government leaders prior to a final deal. (Reporting and additional reporting by Holger Hanen in Berlin.)
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Poland contradicts Trump by saying that the Russian drone incursions were not a mistake.
Poland rejected Donald Trump's suggestion that Russian drone incursions in its airspace may have been an error, a rare contradiction from one of Washington’s closest European allies. Poland, supported by aircraft from NATO allies, shot down drones on Wednesday that violated its airspace. This is the first time an alliance member has fired during the Russian war in Ukraine. Russia claimed that its forces were attacking Ukraine at the moment and had no intention of hitting any targets in Poland. Trump told Washington reporters on Thursday that it could have been an accident. Donald Tusk, the Polish Prime Minister, responded on X. "We too would wish that the drone strike on Poland was a miscalculation." It wasn't. "We know it." Trump told Fox News in an interview on Friday that he was losing patience with Russian president Vladimir Putin. Germany announced on Friday that it had increased air patrols over Poland after European leaders strongly condemned Russia over the incident. It also summoned Russia's ambassador. On Poland's initiative, the United Nations Security Council would meet Friday to discuss this incident. NATO's top military officials, including its chief, Mark Rutte and Supreme Allied commander Europe Alexus Grynkewich (a U.S. Air Force General), were scheduled to hold a joint press conference on Friday afternoon. Questions about European Defence It is rare for Warsaw to directly contradict Trump. This shows the alarm of Europe at Trump's willingness, in this case, to accept Moscow's version of events. Poland is one of the closest U.S. ally in Europe. The Trump administration has praised Poland for its commitment to greater European military expenditures. Warsaw has described the drone incursions by Russia as an attempt to test the response capabilities of Poland and NATO. The incident this week has raised concerns about NATO's readiness for drone attacks, and the safety of civil aviation in Europe. The European leaders claim that this is yet another demonstration of Moscow's lack of interest in a peace agreement in Ukraine. This comes weeks after Trump met with President Vladimir Putin in Alaska, and retracted his demand for Russia to accept a ceasefire immediately. Trump has repeatedly given Moscow deadlines to reach a ceasefire, or else face new sanctions. But he's backed down. This week, European officials are in Washington to coordinate sanctions against Russia with the U.S. government. Previously, such announcements of sanctions were made in tandem. However, this hasn't happened since Trump took office. The U.S. Treasury urged allies in the Group of Seven (G7) and European Union to impose "meaningful" tariffs on Chinese and Indian goods to stop their purchases of Russian crude oil. A G7 emergency finance meeting was convened to discuss ways to increase pressure on Moscow and end the conflict in Ukraine. The EU member states have agreed to extend by six months the existing travel bans, and to freeze bank accounts for individuals and companies in response to the Russian invasion. Dmitry Peskov, Kremlin spokesperson, said that peace negotiations had been halted and "the Europeans" were hindering the peace process. The French announced that they would be deploying three Rafale jet fighters to Poland to protect their airspace, and the Germans said they would increase their commitment to NATO's eastern borders. RUSSIA AND BELARUS HOLD MILITARY ACTIVITIES On Friday, Russia and Belarus began a joint military drill that had been planned for years. The drills took place in both countries as well as in the Baltic Sea and Barents Sea. Peskov dismissed concerns about the exercise abroad, saying that Western European countries suffered from "emotional overload" and that Russia was not a threat. Local Ukrainian prosecutors reported that Russia continued to attack Ukraine and killed three people in Sumy, a region located in northern Ukraine. The regional governor reported that Ukrainian drones had attacked the port of Primorsk in Russia's northwest, setting a fire to both a vessel as well as a pumping station. This was the first drone attack on a major oil and fuel terminal in the country. (Additional reporting from Anna Koper in Warsaw; Anastasiia Melenko in Kyiv; John Irish and Michel Rose, in Paris; Andrea Shalal, in Washington; William James and Marktrevelyan, in London. Writing by Timothy Heritage. Editing by Peter Graff.
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Russia unveils monument for Ukraine war dead near St Petersburg
On Friday, hundreds of people, including Russian soldiers' relatives, gathered in front of St Petersburg to unveil a memorial for those killed in Ukraine. It was the first time such a memorial had been erected so close to one of Russia’s two largest cities. "A monument is one way to immortalize history." "Now we have a brand new history," Anna Krasnova said, after seeing the statue of two soldiers with guns unveiled at Kudrovo in a commuter city of 60,000. She said that her husband is fighting there and that her brother's name is missing in action. The memorial is unique in its proximity to Moscow and St Petersburg. Similar monuments were erected throughout Russia in the provinces. At the dedication ceremony, Alexander Drozdenko said, "The memory of our people is the most valuable asset we have." "Our cause will prevail, our enemy will be defeated, and we will win." The inscription on the monument, which is located above the figures, does not mention a date nor the location of the battles it honors. The inscription reads: "To the Heroes of the SMO", which is an acronym for Special Military Operation (the official term used by the Kremlin for this conflict). Kirill Drantsov, another spectator, stated that the monument would remind young people how to serve their country. We will not have to explain to anyone why and how we love and defend the Motherland. (Reporting in Kudrovo, writing by Lucy Papachristou).
Esgian Week 18 Report: Confirmations, Terminations and Suspensions
Esgian reports an eventful week with contract confirmations, terminations and suspensions in its Week 18 Rig Analytics Market Roundup.
Report Summary
Contracts
Burullus Gas Company, the self-operated joint venture between Shell Egypt, the Egyptian Natural Gas Holding Company (EGAS), the Egyptian General Petroleum Corporation (EGPC) and Petronas, has agreed to move forward with the development of Phase 11 in Egypt's Nile Delta in the Mediterranean Sea.
QatarEnergy has exercised a one-year option for Borr Drilling 400-ft jackup Groa, keeping it working in Qatar into April 2025.
Following a letter of award announced earlier this month, Shelf Drilling North Sea has secured a contract for the 400-ft jackup Shelf Drilling Fortress with a North Sea operator for operations in the UK Continental Shelf. This campaign with an unnamed operator believed to be TotalEnergies is scheduled to begin following the completion of the rig’s current contract.
Dolphin Drilling has issued a notice of termination of a contract to General Hydrocarbons Limited (GHL) for the 6,000-ft semisub Blackford Dolphin.
Following a letter of intent (LoI), Transocean is working to firm up a new contract extension for its 10,000-ft semisub Transocean Spitsbergen in Norway.
Transocean has secured a contract for an additional four wells for 12,000-ft drillship Deepwater Atlas in the US GOM at a dayrate of $505,000.
ExxonMobil has exercised a six-month priced option offshore Angola for Valaris 12,000-ft drillship Valaris DS-9, starting in January 2025 in direct continuation of the rig’s existing firm program. Valaris DS-9 has been working for ExxonMobil offshore Angola since mid-2022.
Harbour Energy has sent a contract suspension notice to Valaris for 225-ft jackup Valaris 92, which has been working for Harbour Energy in the UK North Sea.
Equinor has exercised a 60-day priced option offshore Brazil for Valaris 12,000-ft drillship Valaris DS-17, starting in May 2025 in direct continuation of the rig’s existing contract.
Following the previously announced suspension of the Saudi Aramco contract for ARO Drilling-managed 350-ft jackup Valaris 143, ARO Drilling intends to terminate the contract and return the rig to its owner Valaris.
Valaris 350-ft jackup Valaris 144 has secured a 13-well contract offshore Angola, which will see the rig leave the US GOM in 2025 for the first time since 2021.
TotalEnergies has exercised a one-well priced option for the 400-ft harsh environment jackup Valaris Stavanger in the UK waters of the North Sea.
The 400-ft jackup Arabia I, owned by Borr Drilling, is currently on contract suspension for up to 12 months, and is on standby in Ras Tanura.
Drilling Activity and Discoveries
Following its positive appraisal of the Venus discovery offshore Namibia, TotalEnergies plans to take the final investment decision (FID) on the Venus development by the end of 2025.
Bursa Malaysia-listed Hibiscus Petroleum has made an oil discovery at the Malaysia–Vietnam PM3 CAA PSC.
The Norwegian Offshore Directorate (NOD) has granted Equinor a drilling permit for two wells in the North Sea off Norway. Included in the permit are exploration well 35/10-14 S and sidetrack well 35/10-14 A, targeting Kvernbit and Mimung prospects.
Wintershall Dea and its partners, Petoro and DNO, have spudded the Cuvette exploration well next to the Vega field in the North Sea with the 10,000-ft semisubmersible Transocean Norge.
Oil and gas company LLOG started drilling the Who Dat East exploration/appraisal well on Sunday, 28 April, using the 12,000-ft drillship Noble Valiant.
Deltic Energy, a partner in the Shell-operated Pensacola discovery in the UK North Sea, is struggling to secure a partner to help fund its share of drilling costs for the upcoming appraisal well amid fiscal uncertainty in the UK.
BW Energy has begun drilling the DHBSM-2P well offshore Gabon with Borr Drilling 400-ft jackup Norve.
Following its successful Mopane exploration campaign, Galp Energia is fast tracking plans for a four-well campaign for further exploration and appraisal of the Mopane complex on PEL 83 offshore Namibia.
Demand
Hess has stated that exploration activities are planned at Block 42 and Block 59 offshore Suriname in 2024.
Australian oil and gas company Santos, and its partners Carnarvon Energy and CPC, are working to optimise the project design for the first phase of the Dorado oil field development in Australia, to cut the costs and the time to first oil.
OKEA has handed over the plan for development and operation (PDO) for the Bestla oil and gas field, previously known as Brasse, to Norwegian Energy Minister Terje Aasland.
Transocean, one of the drilling contractors participating in recent tenders in Brazil, expects state oil company Petrobras to award contracts in its tender for floating rigs to work at the Roncador field during the third quarter of 2024.
Mobilisation/Rig Moves
Valaris 12,000-ft drillship Valaris DS-7 is en route from the Canary Islands to Angola, where it will begin an 850-day contract with Azule Energy.
The ME-ADS-owned 300-ft jackup Sea Challenger has been loaded onto the heavy lift vessel Seaway Albatross and is now moving to the United Arab Emirates from Greece.
Other News
Chevron affiliate Chevron Namibia Exploration Limited has executed an agreement to enter into a Petroleum Exploration License (PEL ) 82 offshore Namibia, assuming an 80% interest and operatorship of the license.
Transocean Ltd. reported a net income attributable to controlling interest of $98 million, for the first quarter of 2024, compared to a net loss of $104 million in the fourth quarter of 2023.
The Norwegian Ministry of Energy has received applications from eight companies in connection with the announcement of two areas in the North Sea for potential storage of CO2 on the Norwegian shelf.
The Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) has issued Call for Bids No. NL24-CFB01, a call for bids for exploration licences in the Eastern Newfoundland region offshore Canada.
Valaris Limited reported net income of $26 million for the first quarter of 2024, down from $829 million in the fourth quarter of 2023 when the company received a tax benefit of $790 million.
Europa Oil & Gas was contacted by the UK’s North Sea Transition Authority (NSTA) regarding the company's application for a licence as part of the 33rd UK Offshore Licensing Round that closed on 12 January 2023, proposing a marriage between Europa and another party for the licence.
(source: Reuters)