Welligence Energy Analytics

Argentina LNG Alert! Shell has signed a "Project Development Agreement" with YPF to work together on the NOC's Argentina LNG project. The project remains at a very early stage, so the goal of the 2 companies is to mature it towards a FEED decision. If it is eventually sanctioned, the first phase of the project will provide 10 MMtpa of liquefaction capacity. This commitment of Shell is a welcome boost for Argentina's oil & gas sector and the project. The Major replaces PETRONAS as YPF's partner, and this news comes just a week after ExxonMobil moved forward with the divestment of its onshore portfolio, in separate deals with Pluspetrol and YPF. There is cautious optimism for the country's macroeconomic outlook under the Milei administration, and oil & gas sector momentum is growing with recent announcements, including significant investment in much-needed infrastructure to transport Vaca Muerta production.

Australia Deal Alert! Chevron and Woodside Energy have swapped their non-operated interests in the Carnarvon Basin. Woodside will receive a cash payment of US$ 400 million and acquire Chevron’s 16.67% stake in the North West Shelf (NWS) Gas Project, 16.67% stake in NWS Oil Project (CWLH) and 20% stake in Angel CCS. In exchange, Chevron will acquire Woodside’s 13% in Wheatstone LNG and 65% in the Julimar-Brunello fields. The transaction has simplified both companies’ presence in the Carnarvon Basin, with the respective portfolios now including only operated positions, and also provides Woodside with additional capital for reinvestment. Woodside is understood to be exploring life extension to the NWS assets and potential acquisitions outside Australia. The deal also supports Chevron’s intention to divest its non-core assets since 2020. 

Brazil M&A Alert! Independent BRAVA Energia is seeking a financial advisor for asset sales and new partnerships. The company secured a 30-day exclusive agreement with Azevedo e Travassos and Petro-Victory Energy Corp. to negotiate the sale of its onshore Porto Carao and Barrinha clusters in the Potiguar Basin. Together, these include 11 onshore contracts and averaged ~250 boe/d of production in 2024, representing less than 2% of Brava's total production from the basin. A sale of this nature was anticipated, a consequence of the ongoing consolidation trend among independent E&Ps. Post-consolidation, the enlarged companies are focusing on key assets and preparing to divest non-core ones. We expect this trend to continue with other companies, creating a secondary market for onshore assets.

Egypt deal update! bp and ADNOC Group have announced the formation of their new joint venture (JV) - Arcius Energy. The new JV will manage interests in two development concessions and three exploration concessions in Egypt’s East Mediterranean Sea. This completes the deal first announced in February 2024. The JV is owned 51% by bp and 49% by XRG, an energy investment company, wholly owned by ADNOC. Arcius Energy’s initial focus will be on its interest in two gas producing fields – Atoll (North Damietta) and Zohr, as well as its exploration concessions North El Tabya, Bellatrix-Seti East, and North El Fayrouz. The JV has a gas focussed strategy and plans to explore opportunities internationally.

Egypt deal update! bp and ADNOC Group have announced the formation of their new joint venture (JV) - Arcius Energy. The new JV will manage interests in two development concessions and three exploration concessions in Egypt’s East Mediterranean Sea. This completes the deal first announced in February 2024. The JV is owned 51% by bp and 49% by XRG, an energy investment company, wholly owned by ADNOC. Arcius Energy’s initial focus will be on its interest in two gas producing fields – Atoll (North Damietta) and Zohr, as well as its exploration concessions North El Tabya, Bellatrix-Seti East, and North El Fayrouz. The JV has a gas focussed strategy and plans to explore opportunities internationally.

Nigeria FID Alert! SHELL NIGERIA EXPLORATION AND PRODUCTION COMPANY LIMITED (SNEPCo) has taken the Final Investment Decision on the Bonga North deepwater development on OML 118. Shell operates the Bonga development with TotalEnergies, ExxonMobil and Eni as partners. The project will be a subsea tie-back to the existing Bonga FPSO which is currently running at less than 60% capacity. First oil is expected by the end of the decade, with peak production of 110,000 bbl/d. Bonga North holds an estimated 300 MMboe in recoverable resources. This is Nigeria’s first deepwater FID in over a decade, following the announcement of deepwater capital incentives. Other undeveloped deepwater projects like Preowei and Owowo could progress soon.  

Vietnam project updates! Two key projects, Lac Da Vang (LDV) and Block B have made good progress since FID. Murphy Oil Corporation awarded the Yinson Production-PTSC joint venture a contract to provide an FSO vessel for ten years (plus an optional five-year extension) for LDV. Using JDC’s Hakuryu-11 jack-up rig, Murphy Oil is currently drilling HSV-1X (Block 15-02/17) and targeting LDH-1X (Block 15-1/05) next. In Block B (operated by a consortium of PETROVIETNAM, PetroVietnam Exploration Production Corporation, Mitsui Oil Exploration Co., Ltd. and PTTEP), the McDermott International, Ltd-PTSC JV began constructing the central processing platform, which has a design capacity of 490 MMcf/d of gas and ~20,000 bbl/d of condensate and will supply the O Mon gas power plants. Both projects faced significant regulatory delays, and this progress since government approval represents a boost for the country’s upstream industry and in due course, energy security of supply.

US GoM Deal Alert! INEOS is to acquire CNOOC International's portfolio in the US GoM for an undisclosed consideration. The package comprises producing assets spread across the Gulf - the key projects are the Shell-operated Appomattox and Hess Corporation-operated Stampede. Petrochemical giant INEOS has been active in the upstream space for a few years now. Initially the focus was the North Sea, but the company has been looking elsewhere. This is its 2nd upstream acquisition in the US, following its purchase of Chesapeake's (now Expand Energy) assets in South Texas in 2023. For CNOOC, this is a step towards a US country exit, a move that has been on the cards for a number of years given the strained relations between China and the US.

Namibia Exploration Alert! QatarEnergy continues to expand its exposure to one of the world’s exploration hotspots. The NOC has farmed-in to PEL 90 in Namibia’s Orange Basin, taking a 27.5% stake from operator Chevron. It already has an extensive footprint in the basin and has stakes in TotalEnergies’ Venus discovery (PEL 56) and Shell’s Graff/Jonker fields (PEL 39). It also has a large non-operated position in the South African portion of the basin. The first well on PEL 90 is expected to be spudded imminently. It is likely to be the Kapana-1X well and may test a potential extension of the Mangetti/Tamboti reservoirs in the north of PEL 56. The other partners in PEL 90 are NAMCOR NAMIBIA, Sintana Energy Inc. (TSXV: SEI) (OTCQX: SEUSF) and Grisham Assets.

Namibia Exploration Alert! QatarEnergy continues to expand its exposure to one of the world’s exploration hotspots. The NOC has farmed-in to PEL 90 in Namibia’s Orange Basin, taking a 27.5% stake from operator Chevron. It already has an extensive footprint in the basin and has stakes in TotalEnergies’ Venus discovery (PEL 56) and Shell’s Graff/Jonker fields (PEL 39). It also has a large non-operated position in the South African portion of the basin. The first well on PEL 90 is expected to be spudded imminently. It is likely to be the Kapana-1X well and may test a potential extension of the Mangetti/Tamboti reservoirs in the north of PEL 56. The other partners in PEL 90 are NAMCOR NAMIBIA, Sintana Energy Inc. (TSXV: SEI) (OTCQX: SEUSF) and Grisham Assets.