Member Info for Thenorseman

BP joins Adnoc in $2 billion gas deal hot on the heels of energy transition pivot

Deal would take NewMed Energy public and give consortium partners a significant stake in the huge Leviathan gas project

28 March 2023 9:36 GMT UPDATED 28 March 2023 11:53 GMT
By Russell McCulley and Nishant Ugal in London and New Delhi
UK supermajor BP and Abu Dhabi National Oil Company (Adnoc) have agreed to jointly acquire a 50% stake in Israeli explorer NewMed Energy for approximately $2 billion.


Money talks: BP investors vote with their wallets on strategy shift
Read more
NewMed Energy, a subsidiary of Delek Group, is the largest shareholder in the Leviathan gas project offshore Israel.

If the deal goes ahead, the BP-Adnoc consortium will acquire the 45% stake in NewMed now publicly held and 5% of issued capital from Delek Group, further consolidating their green energy partnership announced last year.

The acquisition would also mark one of the largest commercial deals by Adnoc in the region, following a peace agreement between the United Arab Emirates and Israel in 2021, dubbed the Abraham Accords.

The consortium has offered 2.05 Israeli new shekels ($3.36) per share, a 72% premium on the pre-deal market price, NewMed said. Reuters put the value of the entire company at nearly $4 billion.

BP on Tuesday confirmed that it had made a nonbinding offer together with Adnoc to take NewMed Energy private through the acquisition of the free float and partial acquisition of Delek’s stake, giving the consortium a 50% stake in the company led by chief executive Yossi Abu.

“BP and Adnoc intend to form a new joint venture that will be focused on gas development in international areas of mutual interest including the East Mediterranean,” BP stated, calling the proposed transaction “a significant first step in establishing this dynamic joint venture”.

The producing Leviathan field, discovered in late 2010 by Noble Energy, holds an estimated 22.9 trillion cubic feet of recoverable natural gas.


Israel halts UAE oil pipeline deal over environmental concerns
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Chevron, which acquired Noble Energy in 2020, operates Leviathan with 39.7% interest. NewMed holds a 45.3% interest and Tel Aviv-based Ratio has a 15% working interest.

Green Energy deal

Adnoc and BP last year signed deals to develop hydrogen and technology hubs in the UK and the United Arab Emirates in a major cleaner-energy push, in signs of an improved relationship between the two players.

In the UK, Adnoc has joined the design phase of the H2Teesside blue hydrogen project, taking a 25% stake in the design stage and marking its first investment in the UK.


UAE joins Middle East club of nuclear power producers
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H2Teesside aims to develop two 500-megawatt hydrogen production units by 2030, with the project set to begin operations in 2027.

Abraham accords

The Abraham Accords, which included Bahrain, normalised relations between the thre

I can think of two catalysts in the near future:
1: Broker note update including the Navitas new information on NPV and resources.
2: RAB Capital should soon have sold all their stock removing the overhang on the sell side.
N.

Dai

I just looked at the first sentence where the word NET to Navitas was used. It actually goes on to state Joint Venture NPV10 so then you are right: 1.5 Billion to RKH.

N

From Malsy: “The NSAI Independent Report contains analysis of cash flows and NPV on the phase 1 and 2 development net to Navitas. Based on the NSAI Independent Report data, the joint venture NPV10 of the development of 269 MMbbls is US$4.3 billion on a post royalty and pre-tax basis, at US$77 Brent.”———For RKH that will be US$2.3billion!!!Plus phase 3 and Ombrina Mare potential award

Redeployed FPSO sought for Falkland Island project

Navitas Petroleum highlights latest development plan for Sea Lion oil discovery

24 March 2023 16:51 GMT UPDATED 24 March 2023 16:51 GMT
By Iain Esau in London
Israel-listed Navitas Petroleum aims to take sanction the long-dormant Sea Lion project in the Falkland Islands in 2024, after slashing some $500 million off the development cost to first oil in 2027.

The project was originally operated by Premier Oil, which was acquired by Harbour Energy in 2021. Harbour subsequently quit the asset, leaving Navitas in control.


Italy ordered to compensate UK's Rockhopper $190 million over oil ban
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Since then, the new operator has worked hard to cut development to first oil from $1.8 billion to $1.3 billion, with a total cost of $2.2 billion.

Navitas’ development solution remains centred on a 100,000 barrels per day, leased floating production, storage and offloading vessel, but this time around the goal is to get hold of a redeployed vessel rather than opt for a conversion.

The size of the subsea production system for phase one has been cut to 18 wells, which would be beefed up with five extra wells in a second phase.


Navitas takes big bite out of Sea Lion project offshore Falklands
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This initial scheme would exploit 270 million barrels of oil at an overall capital and operating cost of $27.6 per barrel.

In total, Sea Lion could house about 710 million barrels of developable resources, according to reservoir consultancy Netherland Sewell & Associates, which has just completed an independent resource assessment on the Sea Lion area.

This volume is some 200 million barrels more than identified in 2016 by a third-party consultancy commissioned by to London-listed junior Rockhopper Exploration, the only other partner in the asset.


Rockhopper not giving up on Sea Lion development off Falklands
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Navitas continues to optimise the development plan which — as before — calls for output to plateau at 80,000 bpd and peak at 100,000 bpd.

Assuming both finance and an FPSO can be secured, the partners plan to sanction the project next year, targeting first oil 30 months later.

The partners plan to spend some $70 million on front-end engineering an design studies this year to get a detailed handle on costs and technical issues.


Harbour Energy to exit Sea Lion project in Falkland Islands
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Commenting on the Navitas plan, Samuel Moody, chief executive of Rockhopper, said: “To reduce upfront estimated capex by such a significant amount and reduce life of field costs to under $30 per barrel, while increasing recoverable resources and maintaining a peak plateau of 80,000 bpd is hugely encouraging progress.

“We believe the newly reworked Sea Lion project represents an eminently financeable proposition, despite all the well-known political challenges.”

Navitas holds a 65% stake in Sea Lion, with Rockhopper on 35%.

Ignore my last message please. I didn’t notice the RKH RNS just out.

All good! :)

Thanks Daiki

Is there an English version or do we have to Google translate?

N

BD
Thank you.
We can conclude the odds are in our favour!

712 mmbor

Dont forget since the SL discovery well they have:
-Fully appraised the discovery and adjacent ones (712 mom or recoverable 2C as per Navitas CPR with RKH 35% of that).
-Done much of the FEED Engineering so they know what they need (now they are trying to slim down somewhat to bring initial costs down to get the project more easily finansed)
-Got an excellent partner that does not mind Argentina and that spesialises in taking on projects like this.

So not all bad at all.

Took a long time though I agree to that

Best of luck all holders.

N

The now more positive sentiment could have something to with rumours that we are getting close to an outcome (either way) on the ICSID award annulment proceedings (award equal to 30 pence per RKH share if we are successful) and of course Navitas Petroleum top management visiting the Falklands and impressing people with their can do attitude (as reported here previously by a well known poster :) )

ShenHai last week reportedly entered into project financing agreements and loans securing funds totalling $482 million with the option of a further $102 million.

Hyundai, a subsidiary of Korea Shipbuilding & Offshore Engineering (KSOE), in recent months has secured other key contracts for the upstream oil and gas sector.

These include the $450 million turnkey engineering, procurement, construction, installation and commissioning contract for the compression platform for Posco International’s Shwe project offshore Myanmar; and the hull and living quarters for the P-78 floating production, storage and offloading vessel for Petrobras’ Buzios field offshore Brazil.

Hyundai in June delivered the floating production unit for Murphy Oil’s Kings Quay project, also in the US Gulf of Mexico.

Hyundai Heavy Industries wins US floating platform prize

South Korean offshore and marine contractor to build production semi-submersible for Beacon Offshore's flagship Shenandoah project in the US Gulf of Mexico

7 August 2021 15:15 GMT UPDATED 7 August 2021 15:15 GMT
By Amanda Battersby in London
South Korea’s Hyundai Heavy Industries has won a 659 billion won (US$577 million) engineering, procurement and construction contract for the semi-submersible production facility for Beacon Offshore’s Shenandoah field development in the US Gulf of Mexico.

The semisub facility, which will measure 91 by 91 metres and stand 90 metres tall, will be able to produce 100,000 barrels per day of oil and 4 million cubic metres per day of gas.

Hyundai plans to start constructing of the hull at its Ulsan yard in the third quarter of 2022 after a year of engineering and design work. Delivery of the Shenandoah production facility is scheduled for the second half of 2024.

The contractor is also tasked with installation of the facility on the Shenandoah field, which is located in the Walker Ridge area some 300 kilometres south of Louisiana. Hyundai is understood to have beaten off at least three rivals including compatriot Samsung Heavy Industries to scoop the platform EPIC prize.

The high-pressure Shenandoah field holds an estimated 281 million barrels of oil equivalent.

Houston-based Beacon operates the project after last year acquiring LLOG’s 31% stake - boosting its interest to 46.9%. Beacon’s sole co-venturer is ShenHai, a subsidiary of Israel’s Navitas Petroleum, on 53.1%.

Beacon and ShenHai in June reached a deep-water Gulf of Mexico export agreement with New York-listed Williams for Shenandoah. Williams will provide offshore gas gathering and transportation services and onshore natural gas processing services to Shenandoah via its Discovery infrastructure in the central Gulf.

“Our interconnected offshore and onshore infrastructure allows us to maximise value for our customers by providing a safe, seamless, and direct path to market for deepwater producers in the Gulf,” Williams chief operating officer Micheal Dunn said at the time.

The new facilities under this agreement include an eight-kilometre offshore lateral pipeline from the Shenandoah production unit to Discovery’s existing Keathley Canyon Connector pipeline and additional onshore processing facilities to handle the expected rich Shenandoah production.

Transocean expects to start its $250 million Shenandoah development drilling campaign in the third quarter next year with the drillship Deepwater Atlas. Meanwhile, TechnipFMC has been tasked with supplying subsea trees for the project

Shenandoah’s partners expect to take the final investment decision before the end of August.

…..

Dx Thank you for posting.

From LinkedIn it looks like they all came from Murphy Oil 6-8 months ago for Sea Lion so should have got done some good progress already.

N.

That is 68 million barrels more than the 181 million barrels (35% of 517 million barrels) 2C that Rochopper is already claiming based on their own CPR.

Just thought I’d mention it again to keep positive in these falling markets. Good luck all holders.
N.

See link below. Navitas is claiming 463 million barrels of oil in Sealion 2C reserves! 463 million barrels dividend by 0.65 is 712 million barrels in total and 249 million 2C to Rockhopper!

———
https://il.linkedin.com/posts/navitas-petroleum_innovation-collaboration-energy-activity-6980796362799865856-fM6b

From Upstreamonline just now

——/
Intense week of talk in Houston shows shifting energy debate

The Ukraine conflict has revived strategic thinking on energy, and fostered a more honest debate, but eyes are on China

15 March 2023 15:09 GMT UPDATED 15 March 2023 16:12 GMT
By Editorial
OPINION: A key industry conference in Houston and a Saudi-Iran peace deal brokered by Beijing highlighted the shifting sands of the energy debate last week.

CERAWeek, by S&P Global, in Houston drew back the curtains on the debate about the transition to low carbon energy.

The Ukraine war has put energy security and oil and gas investment back on the agenda.

Governments are on a knife’s edge over energy prices and put affordability at the top of their list of concerns when contemplating policies.

For oil companies, an apparent dichotomy between highly profitable fossil fuel investments and decarbonisation commitments is increasingly tense, as shown by the conflicting positions of their own institutional investors.

International Energy Agency (IEA) calculations suggest that peak demand for oil, which is sailing past 100 million barrels per day, is likely to be several years away.

The agency suggests demand will be nudging 103 million bpd next year and the decline, when it begins, looks likely to be a long, slow one.

To oil and gas companies the energy transition means investing in cleaner technologies, but not necessarily renewables.

The view that this means investing in fossil fuel production for decades to come has gained traction.

As many Western financiers continue to turn away from fossil fuel investment, the future of oil and gas output could increasingly be in the hands of low cost producers offering the best scope for lower carbon intensity.

Middle East producers, the US and few others such as Brazil and Guyana look likeliest to retain their shares, along with some parts of Africa, where world class fields are being found.

Agree. Sentiment has changed as oil price is no expected to rise going forward long term as Covid is behind us. RKH share price should revert to pre-Covid 20p-35p at least IMHO. Then on good news regarding the OM award and/or Navitas progress substantially higher.

Today will be interesting.

Good luck all holders

N.

Now that Navitas is the operator of Sealion I believe we should use their CPR numbers (>700 million barrels of oil recoverable) and not ours (517 million). Their CPR was prepared by NSAI which is the Rolls Royce of companies undertaking this type of analysis. I think Rockhopper management should do the same going forward and will email them and ask.
———-
From their website:”Netherland, Sewell & Associates, Inc. (NSAI) is a worldwide leader of petroleum property analysis to industry and financial organizations and government agencies”.

Stu255 , CaptGuns (on shooting seicmic) …. Sooo many knowledgeable contributors at that time. It really was the good old days.

Btw shame iii destroyed their website with a new design some years back. Is anyone using iii now ?