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Energy Update: September 6, 2024    Increased North Sea well intervention ‘huge opportunity’ for UK supply chain, NSTA says (Energy Voice)  The North Sea Transition Authority (NSTA) reports that an increase in well intervention can give rise to “cheaper, easier, and cleaner” UK production, leading to a great opportunity for the North Sea supply chain’s improvement. Well intervention, which prolongs the production lifespan of oil and gas wells, can yield hydrocarbon production at less than £12 per barrel of oil equivalent (boe). With the current high prices of oil and gas, the NSTA says that it presents itself as a viable and attractive option to lower costs, materials, and operational days compared to new well drilling.    Join the energy leaders—book your stand today: https://lnkd.in/dZmREi29 

CNOOC Launches Oil Production from Liuhua 11-1/4-1 Project in South China Sea Insights: 1. Start of Oil Production: • China National Offshore Oil Corporation (CNOOC) has commenced oil production from its Liuhua 11-1/4-1 secondary development project located in the South China Sea. • This marks a significant milestone for CNOOC as it continues to enhance its oil production capabilities in the region. 2. Project Overview: • The Liuhua 11-1/4-1 project comprises two oilfields, Liuhua 11-1 and Liuhua 4-1, situated at an average water depth of 305 meters. • The development is expected to contribute to China’s domestic oil production and energy security. 3. Key Production Facilities: • The project features a new deepwater platform named Haiji-2, along with the Haikui-1 floating production, storage, and offloading (FPSO) vessel, also referred to as Sea Anemone 1. • These advanced facilities are designed to optimize production efficiency and enhance operational capabilities in deepwater environments. 4. Strategic Importance: • The Liuhua 11-1/4-1 project is part of CNOOC’s broader strategy to boost production from offshore assets and reduce reliance on imported oil. • This initiative aligns with China’s goals to increase domestic energy production and improve self-sufficiency in meeting its energy needs. 5. Technological Advancements: • The deployment of modern deepwater technology, including the Haikui-1 FPSO, underscores CNOOC’s commitment to leveraging advanced engineering solutions in offshore oil production. • This technological edge is crucial for operating efficiently in challenging deepwater conditions. 6. Market Context: • The commencement of production at Liuhua 11-1/4-1 comes amid rising global oil prices and increasing demand for energy, positioning CNOOC to capitalize on favorable market conditions. • The project is expected to enhance CNOOC’s production profile and contribute positively to the company’s financial performance. This analysis highlights CNOOC’s strategic move to initiate oil production from the Liuhua 11-1/4-1 project, emphasizing the significance of the development for China’s energy landscape and the company’s operational capabilities in deepwater environments.

𝐓𝐫𝐚𝐧𝐬𝐟𝐨𝐫𝐦𝐢𝐧𝐠 𝐄𝐧𝐞𝐫𝐠𝐲 𝐄𝐱𝐩𝐥𝐨𝐫𝐚𝐭𝐢𝐨𝐧 𝐰𝐢𝐭𝐡 𝐂𝐨𝐢𝐥𝐞𝐝 𝐓𝐮𝐛𝐢𝐧𝐠 𝐓𝐞𝐜𝐡𝐧𝐨𝐥𝐨𝐠𝐲-IndustryARC™ The Coiled Tubing Market is at the forefront of advancing oil and gas exploration, unlocking unparalleled efficiency and cost savings. Here’s why this market is crucial for the energy industry 𝐃𝐨𝐰𝐧𝐥𝐨𝐚𝐝 𝐑𝐞𝐩𝐨𝐫𝐭 𝐒𝐚𝐦𝐩𝐥𝐞:https://lnkd.in/gJU-T4js The Coiled Tubing Market size is estimated to reach US$ 75.49 billion by 2030, after growing at a CAGR of 4.3% from 2024 to 2030. 𝐊𝐞𝐲 𝐌𝐚𝐫𝐤𝐞𝐭 𝐃𝐲𝐧𝐚𝐦𝐢𝐜𝐬 Growing Demand for Energy: With the rise in global energy consumption, coiled tubing is essential for enhancing oilfield efficiency. Cost Optimization: Its ability to perform multiple tasks like well cleaning, stimulation, and logging without extensive downtime is revolutionizing operations. Increased Exploration Activities: Especially in shale gas and unconventional oil reservoirs in North America, boosting market demand. 𝐓𝐞𝐜𝐡𝐧𝐨𝐥𝐨𝐠𝐲 𝐃𝐫𝐢𝐯𝐢𝐧𝐠 𝐭𝐡𝐞 𝐌𝐚𝐫𝐤𝐞𝐭 Real-Time Data Analytics: Smart coiled tubing units equipped with sensors for accurate and real-time well analysis. Advanced Materials: High-strength, corrosion-resistant tubing for extended lifespan in harsh environments. Automation: New automated coiled tubing systems enhancing worker safety and operational precision. 𝐑𝐞𝐠𝐢𝐨𝐧𝐚𝐥 𝐈𝐧𝐬𝐢𝐠𝐡𝐭𝐬 North America: Leading the market, driven by intensive shale gas and tight oil operations. Middle East & Africa: Surge in investments in oilfield infrastructure provides growth opportunities. Asia-Pacific: Emerging as a lucrative region due to increasing energy demand and exploration activities. 𝐆𝐞𝐭 𝐦𝐨𝐫𝐞 𝐢𝐧𝐟𝐨:https://lnkd.in/gfEpsmtp 𝐀𝐩𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬 𝐀𝐜𝐫𝐨𝐬𝐬 𝐭𝐡𝐞 𝐈𝐧𝐝𝐮𝐬𝐭𝐫𝐲 Well Interventions: Unmatched efficiency in clearing and restoring well productivity. Pipeline Maintenance: Cleaning and inspecting pipelines with minimal disruptions. Enhanced Oil Recovery: Crucial for maximizing extraction in mature fields. 𝐎𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐢𝐞𝐬 𝐟𝐨𝐫 𝐒𝐭𝐚𝐤𝐞𝐡𝐨𝐥𝐝𝐞𝐫𝐬 Collaborate with technology providers for digital integration in coiled tubing operations. Focus on sustainability initiatives, such as eco-friendly materials and low-carbon solutions. Leverage regional growth opportunities by expanding services in untapped markets. 𝐊𝐞𝐲 𝐏𝐥𝐚𝐲𝐞𝐫𝐬: SLB|Baker Hughes|NOV| NexTier Completion Solutions |Superior Energy Services|C&J Energy Services|Archer|Key Energy Services|Liberty Oil|Calfrac Well Services|Patterson-UTI|Expro|Blue Ocean Technologies LLC, an Oceaneering International, Inc. company|TechnipFMC|Saipem|Transocean|Precision Drilling|Helix Energy Solutions Group #CoiledTubingMarket #EnergyInnovation #OilAndGas #SustainabilityInEnergy #MarketOpportunities

PETROS IN MALAYSIA Petroleum Sarawak Berhad (Petros), established in 2017, is Sarawak's state-owned oil and gas company, playing a pivotal role in managing and developing the state's hydrocarbon resources. Onshore Drilling Initiatives In October 2023, Petros, in collaboration with Petra Energy Berhad, commenced its inaugural onshore drilling at Block SK433 in the Miri-Marudi area. This block spans approximately 3,100 square kilometers and includes the Adong Kecil West discovery. The project employs about 75% Sarawakians, with expectations for increased local participation as operations progress. - malaymail.com Carbon Capture and Storage (CCS) Projects Petros is actively involved in carbon capture and storage initiatives to support sustainable energy practices: Licensing and Partnerships: In March 2023, Petros received its first license for carbon storage, covering an area in the North Luconia province offshore from Bintulu.- thestar.com.my Collaboration with Posco: In December 2022, Petros partnered with South Korea's Posco Group to develop the CCS business in Sarawak. This collaboration focuses on assessing potential carbon storage sites, CO₂ transportation, and sequestration solutions. - thestar.com.my Infrastructure Investments Demonstrating a commitment to enhancing Sarawak's energy infrastructure, Petros has pledged RM1 billion to the Samalaju gas pipeline project in Bintulu. Scheduled for completion by November 2025, this 70-kilometer pipeline aims to bolster natural gas supply to energy-intensive industries in the Samalaju Industrial Park and support a new combined-cycle gas turbine power station in Bintulu.- themalaysianreserve.com Strategic Collaborations In September 2024, Petros partnered with CelcomDigi Bhd to provide high-speed connectivity solutions at its onshore drilling site in the Miri-Marudi area. This initiative ensures over 100 employees have access to reliable communication services, enhancing operational efficiency and safety. - theedgemalaysia.com Through these initiatives, Petros is solidifying its role in advancing Sarawak's oil and gas industry while prioritizing sustainable and innovative energy solutions. www.octrexholdings.com Octrex Holdings

The cost of production of oil and gas is a critical factor that can determine the success or failure of a company in the energy sector. Here’s an overview of the key elements and global factors that influence this game: Key Elements in the Cost of Production 1. Exploration Costs: Finding new oil and gas reserves is a costly and risky process. Companies must invest in geological surveys, seismic data analysis, and exploratory drilling. 2. Development Costs: Once a viable reserve is found, developing the infrastructure to extract the oil or gas, including drilling wells, constructing platforms, and building pipelines, requires significant capital. 3. Operational Costs: These include the daily expenses of running the extraction operations, such as labor, maintenance, transportation, and utilities. 4. Regulatory Compliance: Companies must adhere to environmental and safety regulations, which can add to the costs through required equipment, monitoring, and potential fines for non-compliance. 5. Technology: Advanced technologies can reduce costs through more efficient extraction methods, but the initial investment in these technologies can be high. 6. Decommissioning Costs: After the productive life of a well, companies are responsible for safely decommissioning the site, which can be a substantial cost. Global Factors Affecting the Cost of Production 1. Oil Prices: Global oil prices, driven by supply and demand dynamics, geopolitical events, and market speculation, heavily influence the profitability of oil and gas projects. High prices can justify higher production costs, while low prices can make even efficient operations unprofitable. 2. Geopolitical Stability 3. Supply Chain Issues: Disruptions in the supply chain 4. Environmental polices 5. Technological Advancements 6. Currency Exchange Rates 7. Market Competition 8. Natural Disasters and Climate Change Strategic Considerations for Companies Diversification: Companies often diversify their portfolios to include different regions and types of energy sources (e.g., renewable energy) to mitigate risks associated with oil and gas production. Cost Management: Effective cost management strategies, such as operational efficiencies, technology adoption, and strategic partnerships, are crucial for maintaining profitability. Risk Management: Implementing robust risk management frameworks to handle geopolitical, environmental, and market risks is essential for long-term.

When it comes to the oil and gas industry, there are always new and innovative ways to enhance output and efficiency. In the end, production optimization increases asset value by reducing expenses and increasing operational efficiency. Enhancement techniques improve well production by reducing a wide range of operational obstacles. #EOG #oilandgas #productionoptimization #operationalefficiency

#Thoughts ~ ADNOC projects in Malaysia 1. Carbon Capture and Storage (CCS) Initiative (Penyu Basin): ✅Technical Capture: Likely involves post-combustion capture technology at industrial facilities (power plants, refineries, etc.) in Malaysia, where CO2 is separated from other gases. This requires specialized equipment and significant energy input. Transport: Pipelines will be needed to transport the captured CO2 from the source to the storage site in the Penyu Basin. Pipeline construction, especially offshore, can be complex. Storage: Injecting CO2 into deep saline aquifers requires careful geological characterization to ensure long-term containment. This involves extensive seismic surveys, well drilling, and reservoir modeling. Monitoring post-injection is crucial to detect any leaks. ✅Cost: CCS projects are very capital intensive. A 5 million tonne/year capacity project could easily cost billions of dollars (USD). Costs are influenced by capture technology, transport distance, and storage reservoir characteristics. Given the target capacity and offshore location, the higher end of cost estimates would be expected. ✅Timeline: Target is 2030. Given project's complexity, this timeline is ambitious. FS, FEED, environmental impact assessments, permitting, construction, and commissioning all need to be completed. Delays common in large-scale CCS projects. 2030 start date possible but requires focused and expedited execution 2. LNG Supply Agreement ✅This project primarily involves supply LNG, not its production in Malaysia. Technical aspects relate to LNG export facility in Ruwais (UAE) and shipping LNG to Malaysia. Malaysia will handle regasification and distribution ✅Cost for Malaysia will be purchase LNG price, which is tied to market prices. For ADNOC, the costs associated with Ruwais export facility (already under development) and LNG shipping fleet, 15-year agreement provides long-term revenue stream for ADNOC ✅Timeline: The agreement starts in 2028. The Ruwais facility is likely already under construction or in advanced planning stages to meet this commitment. Shipping logistics need to be finalized. The 2028 start date appears achievable 3. Strategic Framework Agreement (Upstream, Downstream, Trading, Technology) ✅Technical: Specific projects under this umbrella (hydrogen, CCUS, EOR) will have their own technical challenges and requirements. It's too early to speculate on the specifics. The focus on technology development suggests potential R&D collaborations ✅Costs will vary significantly depending on the specific projects pursued. Upstream oil and gas development, for example, can be very expensive, while technology development might involve smaller but still substantial investments ✅Timelines will be defined for individual projects that arise from it. The agreement itself provides a framework for long-term collaboration. It is expected that activities are ongoing. For example, the CCS project likely falls out of this agreement

Exciting News! in the gas production industry , I'm thrilled to share that Equinor , along with the Troll partners, has committed over $1.13 billion (NOK 12 billion) to further develop the gas infrastructure in the Troll West gas province, offshore Norway. This investment aims to accelerate production from the reservoir, maintaining high gas export levels from the Troll and Kollsnes value chain up to 2030. The Troll Phase 3 project, Stage 2, will see the addition of eight new wells from two new templates, with subsea controls extended from existing templates. A new gas flowline will be laid as a tie-back to the Troll A platform, with modification work also planned for Troll A. The first wells are expected to come on stream by the end of 2026. Geir Tungesvik, Equinor's EVP for Projects, Drilling & Procurement (PDP), stated, "This is a highly profitable project that will secure high gas production from the Troll field. The partnership's decision is crucial for fully utilizing the capacity of existing infrastructure. We've chosen to use solid, familiar suppliers, most of which already have framework agreements with us. "The new infrastructure is set to accelerate production, adding approximately 55 billion standard cubic meters of gas. At its peak, this new development will contribute around 7 billion standard cubic meters of gas annually. Kjetil Hove, EVP for Exploration and Production Norway, added, "We have been working alongside our partners, Gassco AS , and the Norwegian authorities to maximize energy deliveries from the Norwegian continental shelf (NCS) since 2022. This project will allow Troll and Kollsnes to continue their substantial contributions to European energy security in challenging times. The gas from Troll alone meets around 10% of Europe’s demands."The first stage of gas production from Troll West began in 2021, featuring eight wells and a new pipeline to Troll A, along with a new inlet module. This initial phase extended plateau production by 5-7 years. Stage 2 aims to further extend plateau production by approximately four years and reduce production decline over the next 10-12 years. Recent upgrades at the Kollsnes processing plant have increased maximum production from 121 million to 129 million standard cubic meters of gas per day. The new Troll wells will add about 20 million standard cubic meters of gas per day. The Troll partnership includes Equinor as operator (30.58%), Petoro (56%), AS Norske Shell (8.10%), TotalEnergies EP Norge (3.69%), and ConocoPhillips Skandinavia (1.62%). #coconophilips #continentalshelf #energy #equinor #europeanenergysecurity #gasproduction #gassco #infrastructuredevelopment #petero #plateau #shell #offshoredrilling #totalenergies #trollfield

Improve Your Wells Value Proposition – this requires immediate capex reduction followed by wells life cycle value improvement Energy transition outlooks are pivoting to the realization that oil and gas will remain a key constituent for years to come. Projections (Rystad) show that an additional 56 million barrels a day will be needed by 2030 simply to offset reservoir depletion. However, projected increases in stockpiles of oil can cause downward pressure on pricing. Costs for hydrocarbon development are important as investors demand capital discipline, the need for oil and gas delivery to compete with declining green energy costs and the access to reservoirs becomes more challenging. Wells capital is particularly important because it constitutes a significant portion (often 50%) of a field development cost. Field development economics require both mitigation of capital and operating well costs and a deterministic value (budget / AFE). Well costs are impacted from the concept stage through construction, operation and abandonment which are interdependent with subsurface modelling and facilities design. Project NPV is impacted by both the capital cost (Capex) and operating cost (Opex) as well as the revenue stream (production). Realization of maximum NPV can only be achieved through a full well life cycle appreciation. Significant reduction in well construction (drilling and completion) duration not only drives a reduction in capex, but it also accelerates production realizing improved NPV. Oil and gas clients require the near-term positive impacts on their Capex with a long-term improvement in value (net income). Client diagnostics performed with data analysis and face-to-face interviews leads to an articulation of current state for client debate and confirmation; insight sharing and debate leads to a collectively (operator multiple competencies and suppliers) developed aggressive future state opportunity. Lean Drilling™ workshop facilitates clients to generate initiatives that rapidly cross this gap, deliverables and timelines drive near term step change in well construction (drilling and completion – capex). Results achieved include up to 50% drilling / completion time reduction, 30% cost reduction, 50% production increase ranking best in class global drilling performance on Rushmore Review from a step change implementation. Happy to facilitate. Creating real collaboration across disciplines is the true lever to generate improved value through opportunistic well concepts, lowered reservoir modeling uncertainty, increased productivity and reduced abandonment costs. Enhancing this collaboration across any organization enables harvesting the maximum value from field development life cycle. Keys to this door include developing a highly effective life cycle organizational architecture, creating joint value goals, mitigating life cycle risks, effectively implementing digitalization. Climb on board – DM me! #spe #iadc #oilandgas #drilling 

2024 is proving to be an interesting time in the oil and gas industry. Reduced demand for crude oil across the world, paralleled by higher production rates of crude oil from non-OPEC+, is creating market uncertainty. Alongside growing demands from government bodies to reduce emissions and embrace renewable energy, it’s a tough time for the oil and gas industry. In this article, we’re going to explore how the role of equipment #manufacturers and service providers is beneficial to the health and stability of the industry. #oilandgas #energysector #hr #logistics #recruiting #executivesearch https://lnkd.in/erFKgUP8