Wholesale gas prices rose by 37% earlier this week, to £4 ($5.44) /therm in short-term global market (or $1.92/cu.m). This represents a 700% increase over the average levels at the beginning of 2021.
Russia’s decision by reducing gas supplies to the EU via its Belarussian pipes by 70% and the high global demand for LNG, especially in Asia, are two reasons.
Brent crude oil was $1.17 higher, or 1.4% at $82.43 per barrel by 1345 GMT. It had risen 2.5% Monday. After gaining 2.3% in the previous session, U.S. West Texas Intermediate oil (WTI), rose $1.10 or 1.4% to $78.72.
Already, oil prices have risen more than 50% in the past year. This has created inflationary pressures that countries such as India and the United States are worried will hamper recovery from the COVID-19 pandemic.
Petrofac (PFC.L) was fined £77m on seven separate charges related to failing to prevent bribery from the Middle East. The London-listed oil service provider pleaded guilty to the charges last month.
For failing to stop Petrofac employees from offering or making payments to agents in relation to projects that were awarded between 2012-2015, the penalty includes a £22.8m forfeiture, another £47.2m Fine, and the Serious Fraud Office (SFO) costs totalling £7m.
All of the employees involved have left the company, and Petrofac’s corporate restructuring influenced the amount of the penalty, Southwark Crown Court heard today.
PetroTal Corp. (PTAL.L) 30-day initial production rate for well 8H at over 7,700 bopd. PetroTal is also pleased to announce it has entered into additional put options with strike prices of $70/bbl Brent oil for approximately 25% of the H1 2022 management production profile.
Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented:
“Well 8H is an example of a fantastic well performing at the most opportune time of the year, and it has also provided a wealth of reservoir data. We aim to continue delivering this type of operational quality in the future.
Empyrean Energy PLC (EME.L) has awarded a contract for the well site survey over the Jade prospect to China Oilfield Services Limited (“COSL”) on Block 29/11, offshore China. COSL expects to start the survey operations in October.
Empyrean is the operator of Block 29/11 in China and has 100% working interest during the exploration phase. In the event of a commercial discovery, its partner, China National Offshore Oil Company (“CNOOC”), may assume a 51% participating interest in the development and production phase.
In preparation for spudding of the Jade prospect well in mid-December 2021, the Company has agreed a comprehensive scope for the survey with COSL .
Diversified Energy Company PLC (DEC.L), struck its most recent deal in the United States. It bought a set of Oklahoma-based gas producing assets for US$218mln cash.
Echo Energy PLC (ECHO.L) The Company announced, a further three wells from the Campo Molino oilfield have been brought online. All the recently reactivated wells are producing in-line with expectations. Maximum daily reported production achieved after these wells have been online has been around 350 bopd (net to Echo) This represents a further 20% increase from production levels announced on 26 August.
In the month of September liquids production net to Echo averaged approximately 290 bopd. This continues to represent an almost 50% increase in the total daily liquid production rate at Santa Cruz Sur when compared to the period immediately prior to the restoration of production from the Campo Molino field just over a month ago.
Genel Energy PLC (GENL.L) confirmed that oil sales in the Kurdistan area of Iraq were made for the month July. The Kurdistan Regional Government provided a total amount of US$32.8mln.
Quadrise fuels International PLC (QFI.L) chair Mike Kirk highlighted the “great progress” in the company’s final results for the twelve months ended June 30, 2018. Kirk cited the launch of Quadrise’s low-carbon bioMSAR fuel, as well as what he called a successful fundraise, and other milestones as key achievements for the period.
“Quadrise has a strong position to deliver its promises and, having made a progression as chairman since January 2020, when Jason Miles was named chief executive officer, to ensure a seamless transition in executive duties, it seems that now is the right moment for me to hand over to a non-executive chair.”
OGUK urges urgent action to address UK’s North Sea gas issues. OGUK noted that the UK’s North Sea and East Irish Sea fields continue to produce less than they used to, and there are not enough new fields being developed. Today, the UK’s gas supply is only half what it was in 2004 when it was self-sufficient.
The association reported that Britain used 74 billion cubic meters of gas in 2020. Half of this was imported from countries such as Norway, Qatar and Russia.
OGUK’s Energy Transition Outlook, due to be released later this month by OGUK, will warn that reliance on external sources will rise unless the UK invests in its gas resources. The UK’s gas output is expected to drop by 75% by 2030 if there are no new commitments.
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