Page 19 - Euroil Week 44 2020

EurOil NEWS IN BRIEF EurOil

In a social media update on November 3, company PGNiG is no longer interested,
Polish oil group PKN Orlen Dana Petroleum also confirmed the start of Popescu said.
production from the new well on the Bittern
ExxonMobil holds 50% of Neptun Deep
seeks opportunities to field, which is tied back to the Triton FPSO. (with OMV Petrom holding the other 50%
The Triton FPSO is producing oil and gas
stake) and is also the perimeter’s primary
expand in Romania from the Bittern, Guillemot West & North operator. Thus, replacing ExxonMobil
in this project will require not only a
West fields Clapham and Pict and Saxon
Polish oil refiner and fuel retailer PKN Orlen fields. financial investment but also technological
said it is analysing attractive development It is located in the UK Central North Sea, expertise.
directions, including a possible expansion in Block 21/30, approximately 193 km east of Popescu estimates on a very optimistic
Romania. Aberdeen. note that the first gas deliveries from
PKN Orlen officials met with the Neptun Deep could take place in 2025.
Romanian Government representatives to “The investment decision will be
identify potential business opportunities on Spain’s Repsol cuts capex made next year, and I am very optimistic
the local market, the group said in a press [about a positive decision]. It will take
release on October 29. Spanish oil and gas group Repsol returned another three years, I think, to prepare
“The difficult environment in which we to profit in the third quarter after a deep loss the gas extraction from the Black Sea,”
are currently operating is not only a huge in the second, and suggested it could spin off said Popescu, who also stated that the new
challenge but also an opportunity that can some of its growing renewables business to parliament would undoubtedly amend the
spur further development. We are a serious maximize investment returns. offshore law.
business partner for European players, which Repsol, however, said it would cut its new Under the government’s scenario,
means we must remain open to potential capital expenditure plans by a further 200mn Romgaz must first pay ExxonMobil’s 50%
opportunities for further strengthening euros ($236.4mn), adding to a previous stake in the project, then invest, together
of our business,” PNK Orlen management target to reduce that by 1bn euros. with OMV Petrom, another €3bn to
board president Daniel Obajtek said, Profit. Plummeting crude oil prices prompted start extracting gas from the perimeter.
ro reported. oil producers around the world to slash The exploration works have already cost
Poland’s State Treasury is the largest investments this year. $1.5bn.
shareholder of PKN Orlen, with a 27.5% Adjusted net profit of 7mn euros beat
stake. The group is listed on the Warsaw a company-provided analyst forecast of a
Stock Exchange and has a market 15mn euro loss, but this was still 515mn Dolphin Drilling gets deal
capitalization of over EUR10bn. In euros lower than in the same period a year
2019, PKN Orlen generated PLN 111bn earlier, highlighting the scale of demand off Norway
(EUR24bn) in revenues. destruction wrought by the COVID-19
pandemic. Offshore drilling contractor Dolphin Drilling
The upstream business that extracts has secured a new combined contract for
Dana adds more oil to Triton oil and gas turned a profit as crude prices exploration and plug and abandonment with
rebounded from historic lows, while growth
the Norwegian oil and gas company DNO.
FPSO with new North Sea in the commercial and renewables unit that support both ends of the well lifecycle, with
“The contract will see Dolphin Drilling
includes lower-emission motor fuels helped
well balance losses in refining and unfavorable work confirmed for one exploration well plus
plug and abandonment (P&A) activity on
exchange rates.
South Korea’s Dana Petroleum has started CEO Josu Jon Imaz suggested a joint three wells on the Norwegian Continental
production from a new well on the Bittern venture the company agreed this year to run Shelf (NCS),” the offshore drilling company
field located offshore the UK. The well is tied a portfolio of wind and solar sites in Chile said.
back to Dana’s Triton FPSO. could serve as a blueprint for the future of The initial program of work will start in
In an update on October 30, Tailwind the renewables business. the first quarter of 2021 using the Borgland
Energy, one of the partners in the project, “We are of course working on the best Dolphin semi-submersible drilling rig for
announced the completion and flow-back of financial structure that could allow to boost an estimated five months. The contract also
the B5 production well in the Bittern Field, the return on equity,” Imaz said, adding, “this includes an option for further work into
UKCS. might include potential JVs, partnerships ... 2022.
Tailwind holds a 64.63% equity in the why not, even a potential IPO in the future of The company did not share details on the
Bittern field. this business.” financial value of the deal. Bassoe Offshore
B5 is a sidetrack of an existing Bittern well has estimated the day rate for the Borgland
and has been a close collaboration between Dolphin, as part of the DNO deal, is around
the field operator Dana Petroleum, Waldorf Romania plans to buy $180,000.
Production, and Tailwind and contractors Dolphin said the DNO contract
Petrofac and Stena Drilling. Exxon’s 50% stake in added to its strategic intent of building a
According to Tailwind, B5 was completed significant presence in Norway, following the
significantly under-budget and encountered Neptun Deep offshore block announcement of another NCS contract with
excellent reservoir quality with a gross oil Wellesley Petroleum AS earlier this year.
column of 130 feet. Romanian state-controlled gas producer
Following drilling and completion Romgaz plans to purchase a 50% stake in the
operations, the well was handed back to the Neptun Deep offshore gas perimeter from Bunge to sell Rotterdam
Triton FPSO in October. US group ExxonMobil, according to a plan
After an initial clean-up period, well sketched by the government and confirmed refinery for $300mn
production rates have stabilised in excess of by Minister of Economy and Energy Virgil
5,000 barrels per day of oil. Popescu. Polish state-controlled oil and gas Bunge said on November 3 it agreed to sell a

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