Strand Hanson’s Post

https://oilnow.gy/ If you'd like to follow what's happening in Guyana in the O&G business from their perspective, here is a link. Guyana has been catapulted in 5 years to a GDP status much like Qatar did many years ago. I am hoping that most of the new wealth is deployed for all Guyanese. It is good to see that the international oil companies, most prominently EOM, are key helpers in capacity building and new O&G infrastructure. Guyana is indeed most fortunate, and the future looks very bright for the country and its people.

The 19th of March is the anniversary of the nationalization of Iran's oil industry! But the important question is whether our oil industry was nationalized or state-owned (government). #iranoilandgas #petrolinkmarketing #oilbusiness #mosadegh

Tonight’s update on Botswana Television BW- The Eye promises to be insightful as Botswana Oil Limited CEO discusses the company’s mandate with a focus on Integrated X-Technology Logistics and energy transition. This is a critical topic, given the growing emphasis on sustainable energy solutions and technological advancements in the energy sector. The exploration of IXTL’s role in streamlining logistics and enhancing efficiency in Botswana Oil’s operations could provide a glimpse into how innovative technologies are shaping the future of the energy industry in Botswana. Additionally, the discussion on energy transition is timely and essential as the global shift towards more sustainable energy sources accelerates. It will be intriguing to hear how Botswana Oil plans to navigate these changes and what strategic initiatives they are implementing to support a greener and more resilient energy future. Tune in to gain valuable insights into how Botswana Oil is positioning itself in the evolving energy landscape and contributing to the broader goals of energy sustainability and innovation.

🇹🇷🇸🇴 🔥🛢️⚡ In my latest analysis for Al-Monitor, I discuss #Türkiye (#Turkey) - #Somalia ties, the Turkish research vessel RV Oruç Reis's misson to prospect for oil & natural gas in Somali waters, and potential implications for 🇪🇹 #Ethiopia and the #Hargeisa-based breakaway region of #Somaliland. Immensely grateful to Kaan Devecioğlu & Mathieu Gotteland for the insights and comments. https://lnkd.in/duuGxVCv

Woodside’s announcement yesterday of first oil at Sangomar means it’s time for (another) cautionary tale for investors. Sangomar offers a striking example of the problems with Woodside’s fossil fuel expansion strategy. Even though the project is likely to become a significant source of revenue, our analysis shows it has eroded well over $1 billion of shareholder value. How can something generate a lot of revenue and lose money…? - Woodside originally acquired ConocoPhillips’ 35% share of the project in 2016 for US$440 million. - Despite Woodside aiming to farm down its stake, the two non-government partners, Cairn and FAR, both pulled out of the project, forcing Woodside to increase, rather than decrease, its stake. The additional shares of the project cost an extra US$650 million. So in total, Woodside spent over $1 billion purchasing its current 82% stake. - Since a final investment decision (FID) was made in 2020, the project faced repeated cost and schedule slips, with the project eventually costing 18% more than the original budget and first oil being more than a year late. - By our analysis, the expected revenue is no longer sufficient to justify the actual costs of the project and, with the benefit of hindsight, the project had a negative value at the FID date. - The incoming Senegalese government was also elected, in part, on a platform of increasing taxes on its oil and gas resources. This is additional downside risk for the project. Woodside’s latest major FID, for Mexico’s Trion oil project, is another example of a high risk project, with our analysis showing it does not appear to be an attractive investment and partnering with Mexican oil company Pemex brings a constellation of risks to Woodside’s portfolio (https://lnkd.in/gKT5mY9E). So, what’s next for Woodside? With the majority of shareholders (https://lnkd.in/grxFfiDW) calling on the company to fix its climate strategy, it’s time to focus on Woodside’s portfolio of unsanctioned oil and gas projects. Our analysis (https://lnkd.in/gehdCjAB) shows this portfolio does not appear to be a material source of value for shareholders, and that reallocating the capital towards a share buyback offers more value and less risk than delivering them. A strategy that delivers more value and less emissions is hard to argue with! Sangomar and Trion represent sunk capital. But projects like Browse, Sunrise and Calypso are still pre-FID and deserve scrutiny from investors looking to manage climate risk and secure value.

Oil Find Helps Namibia Transform Into Business Route for Airlink - Bloomberg: Oil Find Helps Namibia Transform Into Business Route for Airlink  Bloomberg

Oil Find Helps Namibia Transform Into Business Route for Airlink - Bloomberg: Oil Find Helps Namibia Transform Into Business Route for Airlink  Bloomberg

..thought provoking discussion on “Securing Africa’s Critical Minerals wealth: A role for sovereign Wealth Funds” this morning at the Wilson Center Africa Program hosted by Oge Onubogu Bottom line; Mineral wealth MUST benefit the communities and the state. Despite developing legal and operational frameworks to support the entire ecosystem of direct and indirect operations in mineral extraction, weaknesses in contract enforcement still persist due to gaps in state capacity and “will”. On top of stunting growth from anticipated revenues, this has led to violent conflict in mineral-rich countries! The expert panel of Helaina Matza, Abdullahi Sule John Kayode Fayemi, PhD. Chipokota Mwanawasa discussed how this narrative can be changed. Critical for me was the vital role of coordination between the African private and public sectors across national boundaries in; i) negotiating mineral development with international partners ii) developing physical infrastructure like railways and roads 👏🏿🙌🏿

Voice of America Africa News - Prospects for Libya's Oil & Gas Industry Last Monday, the Libya Energy and Economy Summit 2024 concluded. On the sidelines, PM Dbeibha discussed with the Secretary-General of the African Petroleum Producers Organization (APPO), Omar Al-Farouq, the possibility of establishing a gas pipeline from Nigeria to Europe, passing through Niger and Libya. VoA Senior Analyst Mohamed Elshinnawi and I analyzed in Africa News Tonight why this is not very realistic. Furthermore, Mohamed and I discussed the prospects for major foreign investments in Libya's hydrocarbon industry. Keeping the current troubles about the Block NC-7 deal in mind, I recommended that Libyans should be aware that their country is not the only one for major investments of the giant energy companies - and - keeping the global energy transition in mind - time is slowly running out. (10:00 - 14:42) https://lnkd.in/dhCg4Eq7 #libya #oilandgas