EIG’s Post

Exciting news on the horizon for BP as they announce a pause on their offshore wind projects. Read more about the decision in this article from The Telegraph. This move demonstrates BP's commitment to carefully evaluating their energy investments and adapting to market dynamics. #BP #offshorewind #TheTelegraph https://ift.tt/E1nXdv7

The energy sector has emerged as a luminous part of M&A dealmaking. The robust momentum was a byproduct of cash-rich oil and gas producers going on a buying spree to fuel growth and sustained interest from investors and corporates in energy transition projects.

For this week's #PGE301 post, I will discuss the effects of BP's split from Equinor and BP's increased interest in investing in oil and gas. Recently, BP split from Equinor, an energy company from Norway, with which BP had shared 3 offshore wind projects. During the split, BP sold two of the projects that it had stake in, writing down the value of its offshore wind-based units by over $1 billion. However, BP did maintain some interest in the wind energy business, since it bought the Beacon Wind project after its split with Equinor. This purchase allowed for BP to further its commitment to its goal of net-zero emission by 2050. At the same time, there has been an increased demand of energy over the recent years, and the comparatively high output of oil and gas resources relative to their clean energy counterparts has caused BP to focus more on oil and gas resources. The company hopes to increase its oil and gas production by 2 to 3 percent a year till 2027 in order to meet the increasing demand for energy.

bp has implemented a hiring freeze and stopped new offshore wind projects due to lower energy prices and rising costs. This move is part of BP's strategy to cut expenses and streamline operations amid financial pressures from investors. The company is balancing traditional oil and gas operations with renewable energy commitments. BP’s decision highlights the challenges energy companies face in transitioning to greener sources while maintaining profitability. https://lnkd.in/d3caernm #EnergyIndustry #RenewableEnergy #OilAndGas #BP #EnergyTransition

🌍 Big shifts at BP! 🛢️ Under new CEO Murray Auchincloss, BP is taking a surprising turn back to oil and gas. 🔄 What’s driving this strategic pivot? 🌬️ Wind energy investments are on pause—why now? 💼 A bold move amid escalating financial pressures... but what does this mean for BP's green commitments? 🌿 📉 With $2 billion in cost savings on the horizon, how will this reshape BP's global operations? 🌐 And with talks of acquisitions and strategic refocusing, what’s next for this energy giant? 🤔 Curious about the future of energy? Dive deeper into the strategy shifts and their global impact. 🌟 https://lnkd.in/gRiBuA23 🔗 [Read More] 👀 Stay updated with more insights! Follow us Karmactive 🚀 #BPEnergyShift #OilAndGas #RenewableEnergyPause #StrategicPivot #EnergyTransition #FinancialStrategy #FollowTheEnergy #EnergyNews #karmactive

📌 Australian energy company Woodside Energy has announced its intention to acquire Tellurian and its Driftwood liquefied natural gas (LNG) development project in the southern United States for approximately $900 million. This strategic move reinforces Woodside's commitment to the US market, where it already owns the majority of the Shenzi oil and gas field and plans to invest $5 billion in new energy projects by 2030, including a hydrogen project in Oklahoma. The purchase of Tellurian, supported by the directors of the target company, allows Woodside to position itself more strongly in the Atlantic and Pacific basins, optimizing its global marketing capacity. This acquisition is a reflection of Woodside's appetite to join the wave of consolidations in the energy sector, as Chevron and Exxon Mobil have done with their recent acquisitions. Demand for natural gas, considered by many investors to be a key transition fuel to cleaner energy, continues to rise. According to the International Energy Agency, the LNG market will remain fragile in the near term, although a significant increase in liquefaction capacity is expected by 2030. The US LNG industry has faced regulatory challenges, such as the suspension of permits by the government of Biden, although this measure was later blocked by a federal judge. Tellurian's plans to build five LNG processing units in four phases, with the capacity to produce up to 27.6 million metric tons of LNG annually, present a significant opportunity for Woodside. The company expects to make a final investment decision on the first phase of the Driftwood LNG project in the first quarter of 2025. This acquisition not only expands Woodside's presence in the LNG market, but also strengthens its relationship with Bechtel, a key contractor on its projects in both the United States and Australia. Together, these strategic moves underline Woodside's ambition to lead in the global energy transition and capture new opportunities in the dynamic LNG market. #LNG #Energy #Industry

London-listed oil and gas company Harbour Energy has inked a five-year master service agreement (MSA), covering work related to three production assets in the UK sector of the North Sea, to EthosEnergy, a provider of services and solutions for rotating equipment in the energy and industrial sectors. hEthosEnergy teammates working on a gas turbine; Courtesy of EthosEnergy According to EthosEnergy, this agreement, which comes with an extension option, will enable it to become Harbour Energy’s primary service provider for the maintenance and support of a fleet of light industrial gas turbines across three production assets in the North Sea. While the names of the three assets have not been disclosed, Harbour Energy’s operated UK offshore assets encompass the Greater Britannia Area, J-Area, AELE, Catcher, and Tolmount areas. Mario Cincotta, East Hemisphere EVP at EthosEnergy, commented: “As a mature basin, the North Sea is home to aging infrastructure which requires ongoing and meticulous maintenance to keep assets operational and safe. The harsh environmental conditions and 24/7 activity on assets demand expertise and efficiency from companies across the supply chain, and for those companies to deliver through a lens of emissions reduction. “We are proud to provide our comprehensive suite of services, including the repair and ongoing maintenance of the gas turbine units, to Harbour Energy. The expansion of our relationship builds on the impressive steps we have taken alongside Harbour Energy to support the company in lowering life cycle costs, increasing reliability of its turbines and extending equipment life across its asset portfolio.” https://lnkd.in/ep38pWtV

BOEM outlines plans for offshore wind in the Gulf of Mexico The US Bureau of Ocean Energy Management (BOEM) has received an unsolicited lease request from Hecate Energy Gulf Wind LLC to acquire commercial wind energy lease(s) on the Outer Continental Shelf (OCS) in the Gulf of Mexico (GoM).  In response, BOEM is seeking information regarding whether competitive interest exists in the areas included in Hecate Energy’s request. The areas are offshore southeast Texas and had been previously identified by BOEM as potential wind energy areas (WEAs) suitable for offshore wind leasing in 2021. WEA Option C totals 74,113 acres, and WEA Option D totals 68,239 acres, for a total of 142,352 acres. As required by the OCS Lands Act, BOEM is issuing a Request for Competitive Interest (RFCI) seeking comments and specific input regarding whether there is competitive interest in commercial offshore wind energy development in the areas requested by Hecate Energy. The RFCI will be published in the Federal Register on July 29. BOEM may use comments received to further identify and refine the area(s) being considered for wind energy development and inform future environmental analyses related to the potential lease area. If BOEM receives one or more indications of interest in acquiring a commercial wind lease from qualified entities, it may decide to proceed with a competitive lease sale. If it does not receive competing indications of interest from qualified companies, it may proceed with a noncompetitive lease issuance to Hecate Energy. BOEM worked with NOAA’s National Centers for Coastal Ocean Science to identify 14 potential WEAs via a comprehensive ecosystem-based ocean planning model, as detailed in a joint report published in 2021.  The areas contained in Hecate Energy’s unsolicited lease request were identified as part of that effort and are different than the areas (WEA I-1, WEA I-2, WEA J, and WEA K) included in BOEM’s proposed sale notice for a second GoM offshore wind lease sale, published on March 21. The first lease sale in the GoM was held in August 2023, and one lease was awarded to RWE Offshore US Gulf LLC. BOEM received 25 comments in response to the March 2024 proposed sale notice, with one company expressing interest in participating. As a result, BOEM is canceling this sale due to a lack of competitive interest. Based on industry interest, BOEM may decide to move forward with a lease sale at a future time, it said.  Since January 2021, the US Department of the Interior (DOI) has held four offshore wind lease auctions, including what BOEM called a "record-breaking sale" offshore New York and the first sales offshore the Pacific Coast and in the GoM. The DOI also recently announced a schedule of up to 12 additional lease sales through 2028.  

🔔 Big news: The GOM CCS landscape is changing with the entry of Total. S.A. 👉 Talos Energy Inc. is divesting Talos Low Carbon Solutions LLC in a sale to TotalEnergies E&P USA, Inc. 👉 The transaction value is $148 million. 🗺 We currently map and track multiple projects of Talos with White Castle (Harvest Bend CCS) Bayou Bend CCS Coastal Bend CCS and Freeport LNG CCS. Total is gaining access to significant pore space along the Gulf Coast, with a stake in Bayou Bend CCS at 140'000 acres and an already submitted Class VI application in Louisiana with White Castle (Harvest Bend CCS), see here: https://lnkd.in/d86AWkjB The news announcement can be found here: https://lnkd.in/dfkSqpkP

Capitalizing on the Philippine’s liquefied natural gas (LNG) industry will improve the country’s energy sustainability and supply, a think tank said. According to Stratbase Institute President Dindo Manhit, this will also provide more opportunities for infrastructure and technology development and jobs for Filipinos. Other local and international companies have also agreed with the push for more LNG expenditures in the country between the government and the private sector. https://lnkd.in/gtQtvT53