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It was a week when oil prices rose while natural gas futures fell marginally.
The headlines revolved around hydrocarbon finds by Portugal’s Galp Energia GLPEY and U.K.’s Harbour Energy HBRIY. Developments associated with BP plc BP, Cheniere Energy LNG and Repsol S.A. REPYY also grabbed attention.
Overall, it was a mixed seven-day period for the sector. West Texas Intermediate (WTI) crude futures increased around 4.7% to close at $73.96 per barrel, but natural gas prices moved down 0.9% to end at $3.3540 per million British thermal units (MMBtu).
The crude price rise resulted from optimism surrounding the Chinese stimulus plans to drive growth in the world’s largest oil importer.
Meanwhile, natural gas prices dipped slightly, influenced by updated forecasts predicting milder mid-January weather compared to the earlier expectations
Recap of the Week’s Most Important Stories
1. Galp Energia, a Portuguese integrated energy firm, recently announced a discovery of oil and gas in Namibia's Orange Basin under its Petroleum Exploration License 83, which was successfully spudded in December 2024. The Mopane-2A well, part of an ongoing exploration and appraisal (E&A) campaign, discovered a hydrocarbon column of gas-condensate in the AVO-3 reservoir with a thin net pay in the reservoir and a hydrocarbon column of light oil in the AVO-4 reservoir.
Both AVO-3 and AVO-4 are high-quality reservoirs with good-quality sands, good porosities and permeabilities. They are characterized by high pressure and low fluid viscosities, containing minimum CO2 and no H2S concentrations.
Galp Energia has successfully drilled and logged the Mopane-2A well in the heart of Namibia’s Orange Basin in partnership with NAMCOR and Custos. GLPEY operates well with an 80% working interest, and the partners carry a working interest of 10% each. The company has successfully established itself as a major player in Namibia, which promises significant economic opportunities in the given prospect and elevates Namibia's status in the global energy arena. (Galp Energia Achieves Success in Namibia's Mopane Complex)
2. Harbour Energy and its partner Ithaca Energy recently announced the discovery of hydrocarbons in the Jocelyn South prospect (P032) within Block 30/07a of the U.K. Continental Shelf’s Central North Sea. The discovery was the result of recent exploration drilling activity carried out by the companies in the region and highlights the area’s untapped potential.
Harbour Energy is the operator at the Jocelyn South prospect, holding a 67% interest, with partner Ithaca Energy holding 33%. The Zacks Rank #3 (Hold) U.K.-based independent oil and gas company informed that the top of the Joanne sandstone reservoir was encountered at a depth of 12,620 ft TVDSS (17,763 ft MD), and the gas-condensate was encountered with a net pay thickness of 434 ft MD (307.6 ft TVT) in the well.
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Harbour Energy informed that the top of the Joanne sandstone reservoir was encountered at a depth of 12,620 ft TVDSS (17,763 ft MD), and the gas-condensate was encountered with a net pay thickness of 434 ft MD (307.6 ft TVT) in the well. (Harbour Energy Discovers Hydrocarbons in Jocelyn South Prospect)
3. Energy supermajor BP has announced the successful commencement of gas production from the Greater Tortue Ahmeyim (GTA) project, marking a milestone for Senegal and Mauritania. The offshore fields straddling the maritime border of the two West African nations are set to bolster economic growth and energy capabilities in the region.
The $4.8 billion GTA project, jointly developed by BP and Kosmos Energy Ltd., is a floating liquefied natural gas (“FLNG”) facility designed to produce approximately 2.3 million tons of LNG annually in its initial phase. The project uses wells situated at water depths of 2,850 meters, with gas transported to a floating storage and processing vessel.
"The opening of the first well marks a significant achievement, paving the way for the commercialization of gas," according to a joint statement by the energy ministries of Senegal and Mauritania. Gas deliveries to global markets are expected to commence imminently, reinforcing the project's potential as a transformative energy resource. (BP Begins Gas Output From GTA Project in Senegal & Mauritania)
4. Natural gas exporter Cheniere Energy has announced a significant achievement in its Corpus Christi Stage 3 Liquefaction Project (CCL Stage 3). The project has reached a milestone with the first production of liquefied natural gas (“LNG”) from Train 1, marking the commencement of a new phase in the company's expansion efforts. Although the commissioning process is still in progress, Cheniere expects Train 1 to be substantially completed by the end of the first quarter of 2025, which is more than six months ahead of schedule.
The CCL Stage 3 project is an integral component of Cheniere's strategy to expand its liquefaction capacity and strengthen the company’s position in the global LNG market. The project consists of seven midscale LNG trains, designed to enhance the production capacity of the Corpus Christi Liquefaction facility in Texas. Once completed, the project will increase the facility's total production capacity to more than 25 million tons per annum (mtpa) of LNG.
As of Nov. 30, 2024, the overall project completion was 75.9%, with substantial progress across various phases of the project. The engineering phase was nearly finished, with 96.8% of the work completed. Procurement efforts were also nearing completion, with 97.2% of the necessary materials and equipment secured. Subcontract work was 87.7% complete, and construction, though behind in comparison to other areas, had reached 39.2% completion. (Cheniere Begins LNG Production at Corpus Christi Stage 3 Project)
5. The Spanish energy giant, Repsol S.A., recently returned to Libya’s energy scene with its exploration activities in the Murzuq Basin after a hiatus of more than a decade. On Dec. 31, 2024, the company spudded its first exploration well, A1-2/130 (Muammal Nasr), marking its first step in drilling in Libya since 2014.
The A1-2/130 well is located about 800 km south of Tripoli and just 12 km from the prolific Sharara oil field. It is planned to be drilled to a total depth of 1,844 meters (6,050 feet). If this drilling and exploration activity turns out successful, the company also expects to tie back to this asset in the future.
Sharara is Libya’s biggest oilfield, with a production capacity of 320,000 barrels per day. Repsol is also a partner in Sharara with other eminent stakeholders like NOC, TotalEnergies, OMV and Equinor. (Repsol Restarts Oil Exploration in Libya After a Decade)