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I have a few questions for you.
With reference to the following article:
Hydrom, BP Oman secure $20 billion deals for massive green hydrogen projects
https://www.oilandgasmiddleeast.com/news/hydrom-bp-oman-secure-20-billion-deals-for-massive-green-hydrogen-projects
"Hydrom’s recent social media updates revealed that the first project was awarded to the Amnah consortium, the victor of the initial round public auction for block Z1-01.
The consortium consists of Copenhagen Infrastructure Partners, Blue Power Partners, and Al Khadra Partners.
In another significant move, the agreement for the second project was inked with BP Oman for block Z1-03.
Two additional agreements were also signed to secure the rights for land use and potential project expansion.
The final project was awarded to the Green Energy Oman (GEO) consortium, winners of block Z1-04. The consortium comprises Oman Shell, OQ, EnerTech, Intercontinental Energy, and Golden Wellspring Wealth for Trading."
What do you think? Isn't it a bit strange that BP Oman is without a partner for the second project?
Does BP even have the capabilities to do this alone?
The price of oil is very volatile, whether we are at $76 today is not relevant,
what matters is the longer-term average, and according to the consensus of market participants and agencies,
the price of oil is likely to rise.
I have a few questions for you.
With reference to the following article:
Hydrom, BP Oman secure $20 billion deals for massive green hydrogen projects
https://www.oilandgasmiddleeast.com/news/hydrom-bp-oman-secure-20-billion-deals-for-massive-green-hydrogen-projects
Hydrom’s recent social media updates revealed that the first project was awarded to the Amnah consortium, the victor of the initial round public auction for block Z1-01.
The consortium consists of Copenhagen Infrastructure Partners, Blue Power Partners, and Al Khadra Partners.
In another significant move, the agreement for the second project was inked with BP Oman for block Z1-03.
Two additional agreements were also signed to secure the rights for land use and potential project expansion.
The final project was awarded to the Green Energy Oman (GEO) consortium, winners of block Z1-04. The consortium comprises Oman Shell, OQ, EnerTech, Intercontinental Energy, and Golden Wellspring Wealth for Trading.
What do you think? Isn't it a bit strange that BP Oman is without a partner for the second project?
Does PP even have the capabilities to do this alone?
Petrofac is a major player in the country and has been there for a long time.
Also, Petrofac has signed a Memorandum of Understanding (MOU) with Oman Hydrogen Centre (OHC) to collaborate in building capabilities for Oman's renewable energy sector, particularly in green hydrogen.
Petrofac and Oman Hydrogen Centre collaborate to develop the Sultanate's green hydrogen capabilities
14 September 2022
https://www.petrofac.com/media/news/petrofac-and-oman-hydrogen-centre-collaborate-to-develop-the-sultanate-s-green-hydrogen-capabilities/
The three projects are expected to be worth a total of 20 billion, or probably around 7 billion per project.
June 9, 2023
https://www.oilandgasmiddleeast.com/news/uae-jobs-petrofac-urgently-hiring-for-engineering-and-operations-roles
Thank you for the very detailed and informative article.
It backs up what I said earlier about the chances of Petrofac winning the bid for phase 2.
There are probably not many companies that have the special skills needed for this decommissioning work and at the same time already have a team stationed in Western Australia (Perth).
The chances are quite high that more major decommissioning contracts will follow this year.
Referring to the decommissioning contract won in Australia last year.
https://www.petrofac.com/media/news/petrofac-awarded-major-australian-decommissioning-contract/
"Petrofac’s Australia team based in Perth, WA, has been contracted to complete Phase 1 of the decommissioning of the Northern Endeavour FPSO (Floating Production, Storage and Offtake) facility.
The contract, awarded by the Federal Department of Industry, Science, Energy and Resources, follows a stringent selection and due diligence process by the Government of Australia. The value to Petrofac of Phase 1 has the potential to be up to AUD$325 million (US$236 million)."
If I am not wrong, Phase 2 is now due to be awarded by the Australian Government in the near future.
Decommissioning gig on offer Down Under
Australian government in the market for latter phases of Laminaria-Corallina project
https://www.upstreamonline.com/field-development/decommissioning-gig-on-offer-down-under/2-1-1462154
Unfortunately the article is behind a paywall but it seems plausible to me and the chance is relatively high that the contract will be awarded again to Petrofac.
It is also worth mentioning that the decommissioning sector is expected to grow rapidly in the next few years.
It is probably only a side battle, but there should be a lot of lucrative work to be done in this sector in the next few years.
NSVPatel postet 2 Jun 2023 13:05
Harry, the last time I was invested here I made a 7 figure profit :)
Do you suffer from dementia?
You simply put this negative sentence in the room, let all arguments bounce off you like Teflon and do not even go into arguments that could offer a possible explanation.
This is the kind of behaviour that a troll normally shows, or am I wrong with this statement?
Mr. short (7-figures) patel so you can't get away with everything here.
African Oil Corp. is a very small company that does not have the financial means to dance on two weddings at the same time, so the focus on Namibia seems more than plausible to me.6
Maybe there are also contractual clauses or compensation deals or payments in the background - we will probably never know.
The same goes for Total, who have the financial means but are currently only concentrating on the really lucrative mega projects. This should be clear to you if you take a look at the strategy Total has been pursuing over the past months and years.
You might also be interested in this:
TotalEnergies And Africa Oil Withdraw From Kenyan Oil Project
https://oilprice.com/Latest-Energy-News/World-News/TotalEnergies-And-Africa-Oil-Withdraw-From-Kenyan-Oil-Project.html
India’s ONGC Videsh and Oil India Ltd are interested in buying 50% in the project, Indian outlet PTI reported on Monday, citing sources familiar with the matter. However, the Indian bid faces stiff competition from Chinese state-held giant Sinopec, which is also reportedly in talks to buy into the Kenyan oil project. Sinopec has expressed interest in the stake after the Indian companies delayed the finalizing of a deal, PTI reported.
Expectations for a step-change in cash generation in the medium term, with US$700mln to US$800mln of free cash forecast per year in 2024 and 2025.
Everything else (Kenya etc.) is just a welcome bonus.
And an avg. oil price of 80$ in 2023 -2025 seems to me more than realistic.
Petrofac has confirmed its technical bid submission. EPC contracts are expected to be awarded in Q4 2023.
EPC contractors submit bids for ADNOC’s $30 billion Upper Zakum megaproject
https://www.oilandgasmiddleeast.com/news/epc-contractors-submit-bids-for-adnocs-30-billion-upper-zakum-megaproject
You might also be interested in:
ADNOC’s Upper Zakum project: 5 facts you need to know
https://www.oilandgasmiddleeast.com/exploration-production/adnocs-upper-zakum-project-5-facts-you-need-to-know
I just came across an interesting article which discusses the intended investments (5-year plan (period 2023-2027) in Algeria.
As algeria is a core market for Petrofac see also: Petrofac led JV selected for US$1.5 billion EPC project in Algeria
I expect we will hear more good news over the coming months and years.
It's good to see Petrofac in such a strong position (they can't even walk properly for all their muscle).
small excerpt:
Algeria promotes development of national energy strategy
https://baodaknong.vn/algeria-day-manh-phat-trien-chien-luoc-nang-luong-quoc-gia-152152.html
"In the 5-year plan (period 2023-2027) with a total investment capital of 40 billion USD of Sonatrach, this group plans to invest 30 billion USD in oil and gas exploration and production, especially natural gas to improve supply for the world market.
Within the framework of the plan, Sonatrach intends to invest more than 7 billion USD in refining, petrochemical and liquefied gas projects to create more added value and enhance export potential.
Algeria possesses a number of competitive advantages that have allowed it to develop hydrogen as a strategic area in the energy transition.
It is estimated that the green hydrogen sector can bring in an annual revenue of nearly 10 billion USD for Algeria. The North African country is aiming to produce one million tonnes of green hydrogen per year from 2040."
The $23 billion $ by the end of 2023 is only for E&C.
Asset solution should have an additional $8 billion pipeline of opportunities by the end of 2023.
This is a total of $31 billion of opportunities by the end of the year.
If we win only win 10% of these, the backlog would already be completely restored.
In addition, there is the contract in Algeria worth $ 1.5 billion, of which Petrofac's share is valued at over $ 1 billion. + 0.2 billion (ORLEN Lietuva extension) + smaller contracts.
The Tennet contract of $ 14 billion until 2030, of which Petrofac receives 50% (approx. 7 billion $) would be equivalent to approx. $ 1 billion per year until 2030.
To clarify, the six 2 GW contracts have a total value of about €13 billion which is equivalent to about 14 billion $ or 2.3 billion $ / 2GW.
The first of these was awarded immediately, the second is expected to follow later this year and contracts number 3 - 6 are expected to be awarded over a period from 2024 to 2026.
Putting this into correlation of the current annual revenue of $2.6 billion would mean that about half of this will be from renewable wind energy by about 2030.
But I hope that as soon as possible they will reach their target of a medium-term revenue of 4 - 5 billion $, then of course this will be put into perspective again.
A small note: The individual 2GW projects follow a modular concept and the first of them serves as a blueprint, so the gross profit margin should increase over time.
In my opinion, only the first of these contracts, if any, is reflected in the share price and it should actually be much higher under normal circumstances.
Very good. When the time comes, the short squeeze will only be bigger.
only a complete idiot would stand up here and admit that he has earned a 7-figure sum with short selling.
all his statements in the past and in the future should be judged from this point of view.
patel alias dongodoc**** ........... it's over.
If I had earned a 7-figure sum with short selling and still had nothing better to do than to annoy other people 24 hours a day and talk everything down, I would seriously start to worry about my mental health.
Do you perhaps have multiple personality disorder?
The multiple account you have created would suggest that.
Or maybe you're just a dumbass who has only made 1 million Indian rupees and is still living at Hotel Mama.
My money is on the last statement.
Brent may rise toward $100/bbl as Saudi output cut could worsen supply gap - analysts
https://www.reuters.com/markets/commodities/brent-may-rise-toward-100bbl-saudi-output-cut-could-worsen-supply-gap-analysts-2023-06-05/
And don't Feed the Trolls!