Shell PLC and China National Offshore Oil Corp. (CNOOC) have approved an expansion of their petrochemical complex in Daya Bay, Huizhou, south China, primarily aimed at meeting domestic demand. The expansion includes a third ethylene cracker with a planned capacity of 1.6 million metric tons a year and associated downstream derivatives units to produce chemicals including linear alpha olefins. A new facility will also be built to produce 320,000 metric tons per annum of high-performance specialty chemicals such as polycarbonates and carbonate solvents. “The new facilities, primarily aimed at meeting domestic demand in China, will produce a range of chemicals that are widely used in the agriculture, industrial, construction, healthcare and consumer goods sectors”, Shell said in an online statement Wednesday. The partners expect to complete construction 2028. Put into operation 2006, the complex is operated by CNOOC and Shell Petrochemicals Co. Ltd, a 50-50 venture between Shell subsidiary Shell Nanhai BV and CNOOC subsidiary CNOOC Petrochemicals Investment Ltd. Phase 2 of the complex started operation 2018. The complex currently supplies over six million metric tons per year of chemical products to the Chinese market, according to Shell. In May 2020, the CSPC partners and the Huizhou government signed a strategic cooperation agreement to invest in the phase 3 expansion of the complex. “This investment will contribute to CSPC’s competitiveness by extending its value chains, drive further integration with the existing site, and enable greater innovation capability to meet customer demand in the fast-growing Chinese market”, Shell said Wednesday. Huibert Vigeveno, Shell director for downstream, renewables and energy solutions said, “For more than two decades, CSPC has provided high-value products to the market, becoming one of the largest petrochemical joint ventures in China”. “This new investment is a key enabler to realize CSPC’s transformation strategy towards more premium and highly

In an oil and gas report sent to Rigzone by the Macquarie team this week, Macquarie strategists revealed that they are forecasting that U.S. crude inventories will be up 3.0 million barrels for the week ending January 10. “This compares to our early look for the week which anticipated a 4.3 million barrel build, and a 1.0 million barrel draw realized for the week ending January 3,” the strategists said in the report. “On the product side of the ledger, in aggregate, our expectations for another large build are little changed from our early view,” the strategists added. In the report, the Macquarie strategists noted that, “for this week’s crude balance, from refineries”, they “model crude runs lower (-0.4 million barrels per day)”. “Among net imports, we model a modest decrease, with exports (-0.2 million barrels per day) and imports lower (-0.3 million barrels per day) on a nominal basis,” they added. The strategists warned in the report that timing of cargoes remains a source of potential volatility in this week’s crude balance. “Likewise, the shadow of potential year-end/timing effects in the prior week’s balance could insert additional volatility in this week’s stats,” the strategists said in the report. “From implied domestic supply (prod.+adj.+transfers), we look for a moderate increase (+0.4 million barrels per day) following a soft print last week, although here too we note potential volatility due to winter weather,” they noted. “Rounding out the picture, we anticipate another small increase in SPR [Strategic Petroleum Reserve] inventory (+0.5 million barrels) on the week,” they went on to state. The Macquarie strategists also noted in the report that, “among products”, they “look for another large gasoline build (+4.4 million barrels), with distillate (+1.3 million barrels) and jet stocks (+1.9 million barrels) also higher”. “We model implied demand for these

The North Sea Transition Authority (NSTA) has fined CNOOC Petroleum Europe Limited $152,593 (GBP 125,000) for venting without consent at the company’s Buzzard field, 60 miles northeast of Aberdeen in Scotland. The NSTA said in a statement that venting was done on two separate occasions in two weeks. Venting is when gas, primarily methane, is emitted directly into the atmosphere without combustion. In May 2022, CNOOC detected a leak in the line that supplies fuel needed to keep the flame lit on Buzzard’s flare stack. CNOOC shut off the fuel line and began venting excess gas into the atmosphere unignited. The company confirmed to the NSTA in June 2022 that it had breached the annual consent for Buzzard, “only to continue venting until a fault with a generator led to production operations shutting down” in the same month, the regulator said. CNOOC then restarted production and export activities from Buzzard and further venting took place due to a faulty valve on the fuel gas system, according to the statement. The NSTA stated that between May 31 and June 13, 2022, CNOOC exceeded its annual venting limit for Buzzard by a total of 435.13 metric tons of gas. The regulator gave revised consent on June 14, 2022, bringing Buzzard back in compliance for any further venting for the rest of the year. The regulator noted that the company “cooperated throughout the investigation and introduced measures to prevent recurrences, including improved monitoring and a new approach to consent applications”. Previously, CNOOC had only requested consent to vent minimal volumes of gas, as venting was uncommon on Buzzard, according to the statement. Jane de Lozey, NSTA Director of Regulation, said, “North Sea operators have taken up the challenge of cutting flaring and venting, almost halving emissions from these processes since 2018. However, at

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is aiming for an oil production of at least 2.1 million barrels a day (MMbd) for 2025, its chief executive told the senate. Nigeria currently has 32 rigs, doubled from 2021, NUPRC Chief Executive Engr Gbenga Komolafe said before the Senate Committee on Appropriation when presenting the NUPRC’s achievements since its formation in 2021, according to a press release by the Commission. On November 14, 2024, Nigerian National Petroleum Co. Ltd. (NNPC) said Nigeria’s hydrocarbon production ramped up to 1.8 MMbd of oil and 7.4 billion cubic feet per day of gas, with the possibility of crude production increasing to two MMbd by the end of 2024. The level grew from 1.43 MMbd last June, according to NNPC. The national oil and gas company put online several upstream projects last year. It said May 12, 2024, it had started production at Oil Mining Lease (OML) 13 in the Niger Delta. OML 13 started up at a rate of 6,000 barrels of oil per day (bopd), expected to increase to 40,000 bopd before the end of May. NNPC earlier said it had put online the Madu field and restarted production in the Awoba field, adding a combined 32,000 bpd to Nigeria’s output capacity. Both are also in the Niger Delta. Madu is expected to average 20,000 bpd, NNPC said in a news release April 19, 2024. Meanwhile, Awoba restarted production at an initial rate of 8,000 bpd, expected to scale up to as much as 12,000 bpd within a few weeks, NNPC said April 23, 2024. On September 9, 2024, NNPC said its joint venture with Chevron Corp. is targeting to reach production of 165,000 bopd by the end of 2024 after converting their licenses under the terms of the Petroleum Industry Act (PIA).

In a release sent to Rigzone on Tuesday, SPE (Society of Petroleum Engineers) Aberdeen Section officially announced the finalists for this year’s Offshore Achievement Awards (OAA). The OAAs recognize outstanding achievements in the energy industry, according to SPE Aberdeen’s website, which notes that the awards “give recognition to the superlative achievements of those who go above and beyond in the energy sector”. The OAAs will take place on March 13 at the P&J Live in Aberdeen this year, the release highlighted. It pointed out that this iteration of the OAAs will mark the 38th time the awards ceremony has taken place. “This year’s event saw the introduction of two new awards and a record number of applicants across all award categories,” SPE Aberdeen noted in the release. The full list of finalists for this year’s event can be seen below: Emerging Technology BP Cavitas Energy Hydrafact Ltd Field Proven Technology Seek Ops TechnipFMC Zelim Collaboration Bp/Weatherford Score Group Wood Sustainability ASCO J+S Subsea TWMA Skills Development 3t Training Services Aberdeenshire Council Foundation Apprenticeships BP Stats Group Offshore Workplace of Choice Bumi Armada Harbour – Lomond Platform Ithaca Serica – Bruce Platform Inclusivity Champion Stork Eilidh Reid, TAQA Well Completions Weatherford Industry Expert Mike Smith, BP Michael Laird, Enermech Fraser Thomson, Oceaneering Dr Rachel Gavey, sustain:able Professor Jon Gluyas, The National Geothermal Centre Young Professional Nandini Nagra, BP Dr Callan Noble, Fennex Stuart Hamilton, Fugro Hamish Adamson, Harlyn Solutions Darrell Lines, Integrity HSE Tanya Gill, PBS Alex McAuley, TAQA UK Industry Returner/Transferer Gypsy Castillo, Harbour Energy Shabnum Hanif, IntrospeXion Mariana Yarnold, PBS Laura Beaton, Wood SPE Aberdeen noted in the release that the Significant Contribution Award will be announced on the evening of this year’s awards ceremony. “The caliber of entries this year has been truly outstanding,” Graham Dallas, Chair of the

Norway’s Energy Ministry on Tuesday awarded 53 hydrocarbon production leases on the country’s continental shelf under last year’s licensing round. A total of 20 firms, out of 21 that applied under the 2024 Awards in Pre-Defined Areas (APA), were offered ownership interests. Thirteen companies were offered one or more operatorships, according to a list published on the ministry’s website. “Continued development of the Norwegian continental shelf (NCS) is important for employment, value creation, and the ripple effects of petroleum activities on the mainland going forward”, Energy Minister Terje Aasland said in a statement. “We need new discoveries to ensure that Norway can remain a stable and predictable supplier of oil and gas to Europe. It is therefore very positive to see such great interest in new exploration areas”. Thirty-three of the new licenses are on Norway’s side of the North Sea. Nineteen are in the Norwegian Sea, while one is in the Norwegian portion of the Barents Sea. The Nordic nation, the top gas supplier for Europe having overtaken Russia since 2022, holds about 7.1 billion standard cubic meters of oil equivalent remaining resources in its continental shelf. The figure includes 3.5 billion standard cubic meters of oil equivalent undiscovered resources, according to the Norwegian Offshore Directorate’s 2024 “Resource Report”. Aker BP ASA has the most operatorships, numbering 16, among the 2024 APA winners. It is a participant in a total of 19 licenses under the 2024 APA. Fornebu, Norway-based Aker BP said in a separate online statement it plans to start drilling in the former Frigg field, which is among its new NCS operatorships, in the second quarter. “Phasing in oil and gas from new discoveries will be crucial to ensuring long-term activity on the shelf”, said Per Øyvind Seljebotn, senior vice president for exploration and reservoir development at