Page 22 - EurOil Week 40

EurOil NEWS IN BRIEF EurOil

in line with the ambitions of the UN’s good experience with the company, and it and ambitions adopted by member states
International Maritime Organization, will be exciting to develop this further,” says of the International Maritime Organization
and by introducing a common way of Erik G. Kirkemo, senior vice president of (IMO), a specialized agency of the United
calculating alignment it will be easier to drilling & well operations in Equinor. Nations responsible for regulating shipping.
have a united front and increase awareness Deepsea Aberdeen is a semi-submersible This includes its ambition for greenhouse
in the industry. 6th generation rig with a dual derrick. gas emissions from international shipping
“Sustainable shipping cannot be “In this contract we have further to peak as soon as possible and to reduce
achieved by one player alone; we have to developed the performance-based shipping’s total annual greenhouse gas
collaborate and be transparent to deliver compensation system, enabling the supplier emissions by at least 50% of 2008 levels
on our maritime ambitions. Equinor to increase their profit per well delivery by by 2050, with a strong emphasis on zero
is delighted to become a Signatory of completing safe and efficient operations. emissions.
the Sea Cargo Charter, and by joining We regard this as an important step towards
forces with influential and ambitious reaching our ambition of shifting focus from TOTAL, October 7 2020
charterers we aim to pull the industry rate per day to cost per well, a move we
in the right direction to make shipping believe is important to ensure sustainable Premier Oil and Chrysaor
more sustainable,” says Heidi Aakre, vice costs in the future,” says Equinor’s chief
president for Shipping in Equinor ASA. procurement officer Peggy Krantz- to merge in largest
“With around 100 ships in our tanker Underland.
fleet, we are a significant charterer in the At the end of September, Equinor and its independent oil & gas
shipping market,” she continues. “We have partners submitted the PDO for Breidablikk.
recently launched our maritime climate Several contracts have been awarded and player on LSE
ambitions with clear targets for 2030 and Norwegian companies are expected to
2050. The signing of the Sea Cargo Charter account for around 70% of the value creation UK oil and gas company Premier Oil has
is for us a step towards joining forces with in the development phase. Estimated field reached an agreement with Harbour’s UK
the shipping industry in reaching these recovery is around 200mn barrels and operating company Chrysaor regarding a
targets.” investments will be around NOK18.6bn. proposed all-share merger between Premier
All contracts are subject to the authorities’ and Chrysaor and the reorganisation of
EQUINOR, October 8 2020 approval of the PDO. Premier’s existing debt and cross-currency
The licence partners in Breidablikk are swaps.
Odfjell Drilling chosen for Equinor (operator), Petoro AS, Vår Energi Tuesday, the deal will create the largest
According to Premier’s statement on
AS and ConocoPhillips Skandinavia AS.
Breidablikk drilling EQUINOR, October 5 2020 independent oil and gas company listed on
the London Stock Exchange with combined
A letter of intent has been issued to Odfjell production of over 250,000 boepd, as of June
Drilling and the Deepsea Aberdeen rig for Total joins the Sea Cargo 30 2020.
drilling of 15 wells for the Breidablikk group, Premier will merge with Chrysaor
for which the partnership recently submitted Charter through a reverse takeover with London
the plan for development and operation listing retained.
(PDO). Drilling is scheduled to start in A group of the world’s largest energy, The transaction is expected to result in
the spring of 2022, and the campaign is agriculture, mining, and commodity trading Premier’s stakeholders owning up to 23% of
estimated to last until the autumn of 2024. companies will for the first time assess the combined group and Harbour and other
The agreement includes options for and disclose the climate alignment of their Chrysaor shareholders owning at least 77%.
drilling additional nine wells before shipping activities. United Nations agencies Premier’s shareholders are expected to
continuous optionality apply. The estimate the international shipping industry to own up to 5.45% of the combined group.
estimated value of the fixed part of the carry around 80% of world trade flows and to Chrysaor’s largest shareholder, Harbour,
agreement is $290mn. Additional costs be responsible for 2-3% of global greenhouse is expected to own up to 39.021% of the
include a number of integrated services, gas emissions annually. combined group.
maintenance, modifications, mobilization Large industrial corporations are Premier’s approximately $2.7bn of total
and demobilization. significant users of international shipping gross debt and certain hedging liabilities will
The contract is estimated to create 200 services. The shipping of crude oil, coal, be repaid and cancelled on completion.
man-years in Norway connected to the rig, iron ore, grain and other bulk commodities A cash payment of $1.232bn will be
and an additional 20-40 man-years related to used worldwide make up over 80% of global made to financial creditors of Premier and
support functions. seaborne trade. The Sea Cargo Charter its subsidiaries and Premier Group’s cross-
“We have had excellent cooperation with is a global framework that allows for the currency hedge counterparties; Premier’s
Odfjell over time, and they have consistently integration of climate considerations into approximately $400mn of letters of credit
delivered wells safely and efficiently to us chartering decisions to favor climate-aligned will be refinanced; Existing Creditors will
by use of the Deepsea Atlantic drilling rig. maritime transport. also receive shares in the combined group.
This time a sister rig with the same technical The Sea Cargo Charter establishes a
design will be used and we have high common baseline to quantitatively assess
expectations to Deepsea Aberdeen as well. and disclose whether shipping activities are
Through this agreement we are enhancing aligned with adopted climate goals. The Sea
our cooperation with Odfjell based on our Cargo Charter is consistent with the policies

P22 www. NEWSBASE .com Week 40 08•October•2020