Malaysia’s Petroliam Nasional Bhd. (Petronas), through its subsidiary Petronas LNG Sdn. Bhd. (PLSB), has signed a heads of agreement (HoA) with SMJ Energy Sdn. Bhd. that formalizes the terms for SMJ Energy’s 25 percent equity participation in PFLNG 3 Sdn. Bhd. Petronas said in a media release the new agreement is a “significant step forward” in its efforts to strengthen its partnership with Sabah’s state government. Dionysia Aloysius Kibat, SMJ Energy CEO, and Shamsairi M Ibrahim, PLSB CEO, signed the agreement. PFLNG 3 is the project company tasked with the upcoming shore-based floating liquefied natural gas (LNG) facility in the Sipitang Oil and Gas Industrial Park (SOGIP) in Sabah. The PFLNG 3 is Petronas’ third FLNG facility. According to the company, it is the first nearshore FLNG facility in the world. The facility will produce up to 2 million tonnes of LNG per annum and is scheduled to start production in 2027. The engineering, procurement and construction contracts have gone to JGC Holdings Corp. and Samsung Heavy Industries. The proposed equity acquisition will be implemented via definitive agreements to be finalized following the HoA, Petronas said. Earlier this month, Petronas formalized several key agreements with the state of Sabah through its unit, Malaysia Petroleum Management. These deals are part of the Commercial Collaboration Agreement that Petronas signed with the state government in 2021. The collaboration agreement aims for a long-term and structured approach to securing a reliable gas supply for the state’s expanding domestic demand, while enabling sustainable industrial growth, according to Petronas. Both Petronas and SMJ Energy are part of the task force that developed the Sabah Gas Strategy. To contact the author, email [email protected] What do you think? We’d love to hear from you, join the conversation on the Rigzone Energy Network. The Rigzone Energy Network is a

Technip Energies NV has partnered with Shell Catalysts & Technologies Ltd. to exclusively work together on a post-combustion amine-based carbon capture solution. The two companies, according to a joint statement, will use Shell’s CANSOLV carbon dioxide capture system. The alliance leverages Shell Catalysts & Technologies’ technology expertise with Technip Energies’ strength in integration and project delivery, the companies said. The parties have committed to working exclusively together to offer an improved, complementary solution in the post-combustion carbon capture sector. Shell Catalysts & Technologies and Technip Energies believe this model will make carbon capture more attractive, scalable, and accessible for industrial sectors, aiding customers in decarbonization efforts. “This agreement marks a significant milestone in a relationship built on shared ambition and delivery. Through our strengthened alliance with Technip Energies, we’re helping customers advance their decarbonization plans, backed by deep expertise and more than a decade of working side by side”, Robin Mooldijk, President for Projects and Technology at Shell, said. “By forming a global alliance with Shell Catalysts & Technologies in the field of carbon capture, we combine cutting-edge technology, smart engineering, and excellence in project execution. This global alliance is the result of more than 10 years of collaboration and continuous innovation,” Arnaud Pieton, Chief Executive Officer of Technip Energies, added. “Our ambition is to deliver a world designed to last by enabling hard-to-abate industries to decarbonize with greater certainty and affordability. “Canopy by T.EN, powered by Shell CANSOLV carbon capture solution, pragmatically delivers on this ambition”. To contact the author, email [email protected] What do you think? We’d love to hear from you, join the conversation on the Rigzone Energy Network. The Rigzone Energy Network is a new social experience created for you and all energy professionals to Speak Up about our industry, share knowledge, connect with peers and industry insiders and engage in

Central European Petroleum (CEP) announced Monday a “major” oil discovery in the Wolin concession on Poland’s side of the Baltic Sea. The Canadian explorer and producer estimates that the Wolin East 1 discovery well holds mean recoverable oil, sales gas and natural gas liquids of 200 million barrels of oil equivalent (MMboe). Based on the estimate, “the oil and gas resources in Wolin East constitute the largest conventional hydrocarbon field yet discovered in Poland, and one of the largest conventional oil discoveries in Europe in the past decade”, CEP said in a statement online. The well was drilled by a jack-up rig in waters 9.5 meters (31.17 feet) deep and about six kilometers (3.73 miles) from the city of Swinoujscie. Drilling reached a vertical depth of 2,715 meters. “Tests confirmed a 62-meter hydrocarbon column and excellent reservoir properties for oil and gas production in the Main Dolomite geological formation”, CEP said. “There is also significant further low-risk exploration, appraisal and secondary recovery potential within the license in the Main Dolomite as well as in the deeper Rotliegend formation”, it added. “With these opportunities included, the Wolin license in total is estimated to contain more than 400 MMboe of recoverable hydrocarbon resources”, CEP said. Krzysztof Galos, undersecretary of state and chief national geologist, said, “The discovery of the Wolin East hydrocarbon deposit – although it still requires the preparation, submission, and approval of the deposit’s geological documentation – may prove to be one of the breakthrough moments in the history of hydrocarbon exploration in Poland, especially with regard to areas that have so far remained insufficiently explored, such as Poland’s Exclusive Economic Zone in the Baltic Sea”. “If this discovery is ultimately confirmed, the Wolin East deposit could become the largest oil and associated natural gas field discovered in Poland to date”, Galos

Oil edged down, extending its losing streak from last week, on lingering worries about crude demand as US trade talks stall and the European Union’s latest sanctions have yet to dent Russian energy exports. West Texas Intermediate crude ended the day marginally lower near $67 a barrel on Monday, after slipping 1.6% last week. EU envoys are set to meet as early as this week to formulate a plan to respond to a possible no-deal scenario with US President Donald Trump, whose position is seen to have stiffened ahead of an Aug. 1 deadline. Late last week, the 27-nation bloc agreed on a package of sanctions against Moscow, including a lower price cap on the country’s crude and a ban on a large refinery in India. Still, restrictions on Russian diesel won’t fully come into effect until January. US crude futures for August delivery are set to expire on Tuesday, contributing to muted volumes and listless trading. Oil has trended higher since early May, but WTI is still down for the year as Trump ratchets up his trade war and OPEC+ relaxes supply curbs. Prices have been jolted by developments in the Middle East, as well as sanctions on crude from producers including Russia and Iran. “In the absence of catalysts, the path of least resistance could be lower,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Group. Diesel’s price relative to crude in Europe, a gauge for profitability of producing the fuel, was near the highest since early 2024, while its prompt time spread — the difference between its closest two contracts — also rallied on Friday, widening its bullish backwardation structure. Oil Prices WTI for August delivery, which expires Tuesday, edged 14 cents lower to settle at $67.20 a barrel in New York. The more

Treasury Secretary Scott Bessent said the next round of US-China talks could include a discussion of China’s purchases of Russian and Iranian oil, a signal that the focus could shift from more traditional trade issues to ones that cross over into matters of national security. “Trade is in a good place,” Bessent said on CNBC, referring to recent and ongoing negotiations with China. “And I think now we can start talking about other things. The Chinese, unfortunately, are very large purchasers of sanctioned Iranian oil, sanctioned Russian oil — so we could start discussing that.” Bessent was also asked about new sanctions on Russia, and he hinted the US was more likely to pursue a tariff-based strategy that would impose hefty duties on any country it found to be purchasing sanctioned Russian energy. “Any country who buys sanctioned Russian oil is going to be subject to up to 100% secondary tariffs,” he said. “President Trump has changed the conversation here and I would urge our European allies, who have talked a big game, to follow us if we implement these secondary tariffs.” President Donald Trump last week threatened “very severe tariffs if we don’t have a deal in 50 days” on the Russia-Ukraine war. “tariffs at about 100%.” WHAT DO YOU THINK? Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

The UK joined the European Union’s efforts to diminish Russia’s revenues further by lowering the price cap on its crude oil, extending a broader push to pressure the Kremlin for continuing the war in Ukraine.  The cap on Russian oil, currently set at $60 per barrel, will be lowered to $47.60 on September 2, the UK government announced Friday. The price caps of $100 on high-value refined oil products, such as diesel and petrol, and $45 on low-value refined oil products, such as fuel oil, remain unaffected. EU states earlier approved a fresh sanctions package on Russia that included new banking restrictions and curbs on fuels made from the nation’s petroleum. The package – the bloc’s 18th since Moscow’s full-scale invasion of Ukraine – will also cut off 20 more Russian banks from the international payments system SWIFT and impose restrictions on Russian petroleum refined in other countries. A large oil refinery in India, part-owned by Russia’s state-run oil company, Rosneft PJSC, was also blacklisted. The latest sanctions from the UK and EU are aimed at further crimping the Russia’s energy revenue, the bulk of which comes from oil exports to India and China. It comes after the original price cap imposed by the Group of Seven had a limited impact due to a large shadow fleet of tankers that haul its oil without using western services. The revised cap approved by the EU will be set at 15 percent below market rates moving forward and revised automatically at least twice a year. “This decisive step to lower the crude Oil Price Cap will target Russia’s oil revenues and ramp up the pressure on Putin by exploiting his biggest vulnerability – while keeping energy markets stable,” said UK Chancellor of the Exchequer Rachel Reeves.  The UK and EU have so far failed to convince