Mozambique Rovuma Venture (MRV) SpA  has let an engineering, procurement, construction, installation, and commissioning (EPCIC) contract to Technip Energies, in partnership with JGC and Samsung Heavy Industries, for the Coral North FLNG project offshore Mozambique. Under the contract, JGC France and Technip Energies, through their joint venture, will be primarily responsible for the engineering and procurement of the FLNG topside infrastructure as well as overall project management. Samsung Heavy Industries will undertake the engineering, procurement, and construction of the FLNG hull and the fabrication of the topside modules. The Coral North project includes construction of a new FLNG vessel with a production capacity of about 3.6 million tonnes/year (tpy). The vessel will be installed in Coral gas field, about 50 km offshore northern Mozambique. Coral North is designed as an enhanced replica of Coral Sul, the first development in Mozambique’s Area 4 offshore gas block, and is expected to double Coral hub’s capacity to 7 million tpy.  Coral FLNG SA is a special-purpose entity incorporated by Area 4 partners Eni SPA (operator), China National Petroleum Corp. (CNPC), Empresa Nacional de Hidrocarbonetos (ENH), Galp Energia SGPS SA, and Korea Gas Corp. (KOGAS).

In its June 2026 Short-Term Energy Outlook (STEO), the US Energy Information Administration (EIA) assumes the Strait of Hormuz will remain effectively closed in the near term, with oil shipments resuming in third–quarter 2026. The agency expects it will take until early 2027 for traffic through the waterway to return to pre-conflict levels. Some Middle East oil production is expected to remain disrupted beyond the forecast period. Global oil producers in the Middle East reduced crude oil production by more than 11 million b/d in May compared with pre-conflict levels because of limited shipping traffic through the strait. EIA estimates production shut-ins averaged 11.3 million b/d in May and forecasts disruptions of 11.34 million b/d in June before easing to 10.11 million b/d in the third quarter and 5.70 million b/d in the fourth quarter. Stay updated on oil price volatility, shipping disruptions, LNG market analysis, and production output at OGJ’s Iran war content hub. As a result, EIA expects global oil inventories to fall by an average of 6.3 million b/d in second-quarter 2026 and 7.6 million b/d in third-quarter 2026. OECD commercial inventories are forecast to fall to just under 2.3 billion bbl by December 2026, the lowest level since 2003. On a days-of-supply basis, OECD inventories are expected to fall to 50 days by yearend 2026. Brent crude oil averaged $107/bbl in May, down $10/bbl from April. EIA forecasts Brent prices will average about $105/bbl in June and July before declining to an average of $89/bbl in fourth-quarter 2026 as oil flows gradually resume. Brent is forecast to average $95/bbl in 2026 and $79/bbl in 2027. High fuel prices, reduced fuel availability, and government initiatives have lowered oil demand, EIA said. The agency now forecasts global oil demand will decline by 1.1 million b/d in 2026 compared

EnQuest PLC subsidiary EnQuest Petroleum Production Malaysia Ltd. has agreed to acquire interests in producing upstream assets in Peninsular Malaysia and Sarawak. The company expects to leverage its integrated technical capabilities and experience in managing brownfield and late-life assets to support continued operations and redevelopment. Under three separate transaction packages with Petronas Carigali Sdn. Bhd. and E&P Malaysia Venture Sdn. Bhd., EnQuest will acquire interests in four offshore production sharing contracts (PSCs) for a maximum total consideration of up to $833 million. As part of the agreements, EnQuest Petroleum Production Malaysia will assume operatorship and participating interests in the Balingian PSC (Package 1, 90% participating interest), SK8 PSC (Package 1, 100% interest), and D35 PSC (Package 2, 50% interest), and will hold a nonoperated participating interest in the PM6/12 PSC (Package 3, 30% interest). The transaction also includes participation by Terengganu-based TI Exploration & Production Sdn. Bhd. (TI EP), which will hold a nonoperated interest in the PM6/12 PSC. TI EP is a joint venture between TI Petroleum Sdn. Bhd., a subsidiary of state-owned Terengganu Inc., and Ping Petroleum Ltd., an independent upstream company. On a 2025 net participating interest basis, the acquired interests are expected to add about 57,400 boe/d of production (47% liquids, 53% gas). This would increase EnQuest’s group production to more than 100,000 boe/d, representing a 134% increase compared with its 2025 production. The assets are expected to support production at around 100,000 boe/d through the end of the decade, the company said. EnQuest would also add 138 MMboe of 2P reserves and 208 MMboe of 2C resources (net WI). The acquisitions are expected to close by yearend, subject to customary conditions, including the waiver or expiry of applicable pre-emption rights associated with Package 2.  Package 1, Package 2, and Package 3 are subject to separate acquisition

US crude oil inventories for the week ended June 5, excluding the Strategic Petroleum Reserve, decreased by 7.2 million bbl from the previous week, according to data from the US Energy Information Administration (EIA). At 426.5 million bbl, US crude oil inventories are about 5% below the 5-year average for this time of year, the EIA report indicated. EIA said total motor gasoline inventories increased by 200,000 bbl from last week and are about 6% below the 5-year average for this time of year. Finished gasoline inventories increased while blending components inventories decreased last week. Distillate fuel inventories decreased by 200,000 bbl last week and are about 13% below the 5-year average for this time of year. Propane-propylene inventories increased by 1.1 million bbl from last week and are about 35% above the 5-year average for this time of year, EIA said. US crude oil refinery inputs averaged 17.0 million b/d for the week ended June 5, which was 80,000 b/d more than the previous week’s average. Refineries operated at 95.3% of capacity. Gasoline production increased, averaging 9.7 million b/d. Distillate fuel production increased, averaging 5.2 million b/d. US crude oil imports averaged 5.9 million b/d, down 500,000 b/d from the previous week. Over the last 4 weeks, crude oil imports averaged about 5.9 million b/d, 5.8% less than the same 4-week period last year. Total motor gasoline imports averaged 714,000 b/d. Distillate fuel imports averaged 130,000 b/d.

Shell discovered oil at the Merlin-1X exploration well in Orange basin 250 km off the southern coast of Namibia. Merlin-1X, spudded on Apr. 8, 2026, is the tenth well drilled in Petroleum Exploration License 39 (PEL 0039). The well penetrated the Coniacian play and has delivered the most promising subsurface results to date in PEL 0039, indicating good reservoir quality with light oil and limited associated gas, the operator said in a release June 9. Shell said additional drilling late this year is under consideration as part of a broader exploratory appraisal program. PEL 0039 covers 12,000 sq km. Over the last 4 years, 10 wells have been drilled in the license: Graff-1X, La Rona-1X, Jonker-1X, Graff-1A, Lesedi-1X, Cullinan-1X, Jonker-1A, Jonker-2A, Enigma-1X, and Merlin-1X. Shell is operator of PEL 0039 with 45% working interest. Partners are QatarEnergy (45%) and the National Petroleum Corp. of Namibia (NAMCOR) (10%).

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