Sarados Milios

BAKU, Azerbaijan, September 20. A memorandum of understanding has been signed today in Baku between bp and the State Oil Company of Azerbaijan Republic (SOCAR), outlining bp's intention to join agreements for two exploration and production blocks in the Azerbaijani sector of the Caspian Sea, Trend reports via bp. #azerbaijan #socar #bp #cooperation #oilandgasindustry #explorationandproduction #caspiansea #offshore

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The “Just Stop Oil” movement, together with its implementers in many western governments and war-waging Russia, have been somewhat successful in their attempt to constrain the supply of oil. While world oil supply has been able to grow despite these headwinds, in many European countries the new production of hydrocarbons is now generally over, while drilling and frac’ing on federal lands in the US has become more difficult. But if you sell a product that is popular because it is life-changing, it is impossible to make big changes to growing demand. When you then disrupt supply, prices for that product increase. That’s Economics 101. This is what we see over the last few years for oil. The US Shale Revolution has lowered the cost to drill and to frac. In the graph below, I compare drilling and completion cost on a per foot of horizontal lateral basis, as it allows comparison with the production revenues per foot of oil & gas producers. The black and orange lines show the decreasing cost per foot for drillers and pressure pumpers, and a reduction in the combined (purple) Drilling & Completion (D&C) cost per foot. Contrast that with the (blue) revenue per foot from oil & gas producers, which is driven by the product of barrels of oil production per foot (in a year) and the market price for a barrel of oil. Back in 2015-2016, following Saudi’s squeeze of US Shale, that barrel of oil did not fetch much, while D&C costs were still relatively high. Consumers enjoyed years of low oil prices. Since the popular push against oil started in 2021, oil prices have been relatively high, while D&C costs decreased to historic lows. Constrained supply has caused consumers to pay more for oil in 2021-2023. “Just Stop Oil”, its government enablers and Russia, however, delivered significant returns to oil & gas company shareholders.  #drillbabydrill #fracbabyfrac #shale #frac #energy #efficiency #innovation #shalerevolution #juststopoil #XR 

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🌍🛢 Oil Markets Update: Cease-Fires, Tariffs, and OPEC+ Talks Here’s a roundup of key developments affecting global oil prices: 1️⃣ Price Movements: NYMEX January WTI settled at $68.77/b, down 17 cents. ICE January Brent dipped 20 cents to $72.81/b. NYMEX December RBOB fell slightly to $1.9918/gal, while ULSD rose to $2.2404/gal. 2️⃣ Geopolitical Impact: Israel and Hezbollah Cease-Fire: A US-brokered agreement eased tensions, pushing crude prices lower. Brief price spikes followed speculation that OPEC+ may delay its January output hike. 3️⃣ Tariff Concerns: President-elect Trump’s proposed 25% tariffs on imports from Canada and Mexico could hike costs for US refiners reliant on foreign crude. Analysts warn this may raise fuel prices for consumers and drive inflation, despite Trump’s focus on lowering costs. 4️⃣ OPEC+ Talks: Ministers from Iraq, Saudi Arabia, and Russia are in pre-discussion ahead of the Dec. 1 meeting, where 2025 oil policy will take center stage. OPEC+ has delayed easing 2.2 million b/d production cuts twice this year, citing $60-$75/b as insufficient for additional output. 💡 Outlook: Analysts believe $80/b may act as a temporary price ceiling, as higher prices could incentivize increased production. Stay tuned for Dec. 1 developments and potential shifts in global supply and demand! 🚦

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Chevron-led operator Tengizchevroil has successfully completed a major turnaround at its legacy oil and associated gas processing facilities in Kazakhstan, while continuing with the commissioning of new units under the $47.1 billion production capacity expansion program. Tengizchevroil announced that planned turnaround maintenance on two of the five production trains at the legacy KTL processing plant at the Tengiz oilfield was "safely completed within schedule and budget," achieving a "23% improvement in execution efficiency" compared to a similar maintenance job in 2019. The operator also emphasized the increased use of Kazakh labor and services during this turnaround, in response to requests from local authorities to engage more domestic providers. "Over 7,000 Kazakhstani employees participated in the turnaround, and 20 local contractor companies implemented several improvement activities focused on plant integrity and reliability," Tengizchevroil stated. The completion of the turnaround will enable Tengizchevroil to restore normal levels of oil export shipments to international markets via the Caspian Pipeline Consortium (CPC) pipeline. This pipeline, which transports about 95% of Tengiz's oil output, runs from the Tengiz field across Kazakhstan and Russia to a marine terminal near the Russian port of Novorossiysk on the Black Sea. This KTL turnaround is the second major maintenance project at the Tengiz field's legacy facilities this year, with a previous turnaround completed in the second quarter. Both projects were carried out simultaneously as part of the commissioning and start-up of new development wells and processing units under Tengiz's two-phase production expansion program, known as the Wellhead Pressure Management Project (WPMP) and Future Growth Project (FGP). During an August conference call, Chevron Chief Executive Mike Wirth highlighted milestones in the process of bringing various WPMP-FGP facilities online. "The [legacy] wells converted to low pressure are meeting expectations, and the pressure boost facilities are operating with high reliability. Over the next two quarters, we'll continue converting the field to low pressure while further commissioning key equipment for FGP," Wirth said. According to a Kazakh industry source, gas is currently being fed into the new sour gas injection system, which is also part of the WPMP-FGP project. The operator remains on schedule to bring all new production, processing, and gas reinjection facilities online by the second quarter of 2025. The capacity expansion program aims to increase crude production at the Tengiz field—the largest oil asset in Kazakhstan—by an additional 260,000 barrels per day, bringing total output to 1 million bpd.

#Rosneft subsidiary #Vostsibneftegaz (East Siberian Oil & Gas Company) marks its 30th anniversary. #Vostsibneftegaz is developing "the oldest deposit on the planet", Yurubcheno-Tokhomskoye (Yu-T), which is more than 1 billion years old. Yu-T is located in Evenkiyskiy District in northern Krasnoyarskiy Territory, East Siberia. The company entered the #Rosneft fold in 2007. By 2016, full-scale development of the field, Yu-T, began. Early oil production was delivered to #Transneft's Kuyumba – Tayshet oil pipeline (connected to the East Siberia - Pacific Ocean / #ESPO pipeline system). #Vostsibneftegaz's cumulative production is ~ 18 million tons [~ 130 MM bbls] of oil. Well stock includes 267 horizontals, with 5 multilaterals. The presence of numerous cavities and cracks in the sub-surface formation necessitated the "use of advanced exploration and drilling technologies". Given the remoteness of the Yu-T field, the primary oil and gas production facilities and infrastructure are supplied with energy from a gas-turbine power plant, which runs on associated petroleum gas (#APG). #Rosneft also notes #Vostsibneftegaz's flagship #ESG initiative, a grant program to support environmental and ethnographic research, which is celebrating its tenth anniversary this year. The program supports 29 scientific projects focused on the study of bioindicator populations and ecosystems of the region, and the preservation of the Evenki language (the Evenki are the regional indigenous peoples). In 2023, the company organized for the first time a large-scale festival of northern culture in the city of Krasnoyarsk. #Vostsibneftegaz employs > 2500 personnel. https://lnkd.in/giVqDPaq

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Gazprom Advances Pipeline Connector Project to Fulfill Gas Delivery Commitments to China Insights: 1. Pipeline Connector Initiative: • Gazprom is moving forward with the construction of a connecting pipeline between its existing networks, Sila Sibiri 1 and Sakhalin-Khabarovsk-Vladivostok, to ensure it can meet its contractual obligation to deliver 10 billion cubic meters of gas annually to China. 2. Response to Delays: • The decision to expedite the connector project comes in light of significant delays in securing subsea gas production infrastructure for the South Kirinskoye offshore field, which was initially intended to supply gas to China. 3. South Kirinskoye Field Potential: • With recoverable reserves exceeding 800 billion cubic meters (Bcm), South Kirinskoye is a critical asset for Gazprom’s gas supply strategy to China. The field was expected to be a key source for the Sakhalin-Khabarovsk–Vladivostok pipeline. 4. Historical Agreements: • Gazprom’s partnership with China National Petroleum Corporation (CNPC) includes a second gas supply agreement signed in February 2022, building on the first deal from 2014 that established the Sila Sibiri 1 pipeline. 5. Challenges with Equipment Suppliers: • Gazprom has faced challenges with international contractors, notably FMC Technologies, which withdrew from a contract to manufacture subsea production equipment due to sanctions imposed after Russia’s annexation of Crimea. This has contributed to delays in the South Kirinskoye project. 6. Operational Timeline: • Gazprom’s deputy executive chairman, Vitaly Markelov, announced that the 880-kilometer connector is expected to be operational by 2026, allowing gas from East Siberian fields to flow into the Sakhalin-Khabarovsk–Vladivostok pipeline. 7. Future Capacity Expansion: • The Sila Sibiri 3 pipeline, which will utilize the new connector, is projected to become operational by January 2027, further enhancing Gazprom’s ability to supply gas to China. 8. Supplier Readiness: • Almaz-Antey, the contractor responsible for the subsea wellheads for South Kirinskoye, is anticipated to begin supplying equipment by the end of the year, with subsea trees expected to be delivered in 2026. 9. Interconnected Manufacturing Capabilities: • Almaz-Antey has established assembly and testing workshops to manufacture subsea production parts concurrently with its defense systems, indicating a strategic pivot to support Gazprom’s needs amidst geopolitical pressures. 10. Strategic Importance of Gas Exports: • Gazprom’s efforts to enhance its infrastructure and meet gas delivery commitments to China underscore the strategic importance of gas exports in Russia’s energy policy, particularly in light of shifting global energy dynamics and sanctions.

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I will be speaking at the 1st International Conference on Energy and Enhanced Oil Recovery 2024, which will be held on May 20-22, 2024, at Kazakh-British Technical University, Almaty, RoK, and would welcome your valued attendance at my session. The report title is "Important Aspects for Effective Implementation of Tertiary EOR Methods at brownfield Oil & Gas fields." The oil and gas production maintains a high contribution to Kazakhstan's economy - by the end of 2022, the sector's share in total exports of goods will exceed 50%, in net investment inflows - almost 40%. At the same time, the average oil recovery rate in Kazakhstan is about 30-35%, while in developed countries of the world it has reached 40-60%. Therefore, one of the key challenges for the domestic oil and gas industry is to improve the efficiency of development of current onshore fields, which are currently in the late stage of development. This stage is characterized by high water cut and the remaining oil reserves are classified as difficult to recover. High water cut and excessive water volumes entail significant costs for lifting, transportation, treatment and reinjection, and are a significant cause of carbon footprint in the ecosystem. At the same time, the volume of produced water in these fields is constantly increasing. And in the case of inactivity, this process continues to deteriorate, with production efficiency and economic indicators declining year after year. Under these conditions, tertiary methods of enhanced oil recovery (EOR) are effectively applied in world practice. There are commonly several directions of EOR: gas (CO2, N2, hydrocarbon, immiscible), thermal (steam, hot water, in-situ combustion, SAGD), chemical (polymer (P), surfactant polymer (SP), alkaline surfactant polymer (ASP) floods) and others (microbiological). However, gas and thermal methods are limited by the need for significant gas and freshwater sources and high capital costs. In contrast, chemical EOR methods have a wide range of applicability due to their ease of implementation, especially in the late stages of field development. A well-known example of the widespread use of chemical EOR methods in Kazakhstan is the Kalamkas field. The reservoirs' main geological and physical features attract the implementation of chemical EOR methods, such as polymer flooding (PF), conformance control (CC) and water shut-off (WSO). In view of the low reservoir T, elevated M, and high K, it was recognized that there is considerable potential for EOR by PF, CC and WSO. Pilot projects were conducted since September 2014. Although polymer based EOR worldwide has been applied ~60 years, and it still requires further investigation to provide improvements. Thus, this work describes important aspects of the effective implementation of tertiary EOR methods in the Kalamkas field, as well as applicability analysis for other Kazakhstan oilfields. #conference #eor #science #polymerflood #oil

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https://lnkd.in/dapfkDNg A short analysis of what is going on in the Russian and Kazakhstani investment segments of the power markets. ( Russian, English summary expected)

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https://lnkd.in/d388DCiF Aramco is considering expansion of its LNG footprint to consider large US investments including options such as Sempra, Next Decade projects. Do read the story!

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#US_pipeline US pipeline operator ONEOK Inc. agreed to buy a Permian Basin rival and a controlling stake in another company in two transactions valued at a combined $5.9 billion. ONEOK will acquire Global Infrastructure Partners’ entire interest in EnLink Midstream LLC and also buy GIP’s equity interests in Medallion Midstream, the largest closely held crude gathering and transportation system in the Permian, it said in a statement late Wednesday. The move expands ONEOK’s presence in the most prolific US oil and gas basin. It’s the latest in a spate of deals in the industry as private equity firms offload assets to corporate buyers. Operators of oil and gas assets are looking to scale up as cash-flush fossil fuel companies consolidate and look to refresh their drilling inventory. New York-based Global Infrastructure Partners is a private equity firm specializing in energy, transportation, water and waste management. ONEOK shares gained 0.8% in New York. EnLink surged 11%. https://lnkd.in/dCFiT6nS

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The global chemical distribution market is expected to grow from $274.5 billion in 2023 to $431.6 billion in 2028 at a rate of 9.5%. The market is then expected to grow at a CAGR of 9.8% from 2028 and reach $690.3 billion in 2033. https://lnkd.in/eisA9Ek3

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Israel prepared for hit to gas production It will also affect Jordan and Egypt, which rely on gas imports from Israel

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This article on the rise of Gazprom by Johnathan Stern reminds us of the challenges and Geopolitical roadblocks facing Europe in the past, and present of a troubled geopolitical journey.

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I had the pleasure of joining Grayson Brulte on The Road to Autonomy® podcast for an enlightening conversation! We explored a range of topics including the geopolitical impacts on oil and natural gas markets, challenges of persistent price inflation, and the effects of household and corporate debt burdens. We also discussed how rising interest rates are influencing economic growth and the implications of escalating electricity prices. 🎙️ Don't miss this insightful episode! 🔗 Listen on Apple Podcasts 🔗 Listen on Spotify 🎥 Watch on X 🎥 Watch on YouTube #EconomicOutlook #OilMarket #NaturalGas #EnergyTrends #TXOGA #MarketInsights #Business #Economics #Inflation #Prices #Markets #Data 

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When Russia invaded Ukraine in 2022 the world imposed trade sanctions - owning certain Russian assets, selling to certain Russians, selling certain technologies...all stopped. The intent was to crush the Russian economy. Companies in the upstream oil & gas industry were hugely and negatively impacted as Russian trade halted and as companies sold their Russian assets at massive discounts to their Russian partners. So how badly did that action hurt Russia? Before the invasion they drilled 9000 new wells per year. Today, 11000. The chart here compares Russia's annual new well drilling to the annual new well drilling of the IOCs and NOCs around the world (but not NoAm). Nary a speed bump for the Russians. I hate the war, but I also think trade sanctions rarely impose hardship on the imposed country. The majority of the "hurt" is on the companies no longer allowed to sell to or work in the sanctioned country.

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Kazakhstan’s Compensation Claims Against Kashagan Oil Firms Jump to $150 billion. Government adds demand for compensation for lost revenue. Kashagan oil project has seen many delays and cost overruns. "Kazakhstan has increased its arbitration claims against international oil companies that developed the Kashagan oil field to more than $150 billion, demanding compensation for lost revenue in addition to a dispute over costs, according to people familiar with the matter. Kazakhstan’s government was already involved in a $15 billion arbitration over production costs at the giant field, which has been beset by delays, technical difficulties and cost overruns since development began more than 20 years ago. The additional claim is for as much as $138 billion in lost revenue, reflecting the calculation of the value of oil production that was promised to the government but not delivered by the field developers, the people said, asking not to be identified because the information isn’t public." https://lnkd.in/et2rVNPK FCPA: Eni spills about its growing global bribery probe. https://lnkd.in/eTGBVqMQ FCPA Investigation Follows Allegations of Improper Payments to Customs Officials in Kazakhstan (2012) https://lnkd.in/emBfHXDB FCPA allegations involving customs clearance in Kazakhstan. https://lnkd.in/eP_bZjhn SBM Offshore Resolves $238 Million FCPA Enforcement Action https://lnkd.in/eauEaSh Eni et le Kazakhstan négocient l'exploitation de Kashagan. https://lnkd.in/eMz6Jeeh Kashagan : déboires à répétition pour le projet pétrolier géant (2014) https://lnkd.in/eb5tT44w Le Kazakhstan engage une procédure d'arbitrage contre les géants pétroliers. https://lnkd.in/eZidgV7t Pétrole : la somme colossale que Total espère grâce à Kashagan. https://lnkd.in/e-hu2DpU & https://lnkd.in/era8uZ7N Kashagan, un défi pétrolier hors normes https://lnkd.in/eAnAkZGd

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