Page 14 - EurOil Week 48 2022

EurOil EurOil

parliament to move on with the legislation. them. This should apply to energy produced where we have not had drilling activity since
RTVS also notes there have been no already since December 1, and will consist of 2019. It has never been a better time to invest
talks with the Slovak oil-processing refinery 90% of the difference between the selling price in further drilling and field development
Slovnaft, which is owned by Hungary’s MOL, and the price for MWh stipulated by law. activities to ensure that the recovery from the
over whether taxation could raise price Economist Petr Barton said much will DUC fields is maximized.
of fuel in Slovakia. “I am not leading any depend on the real market price. This will “Several highly economic opportunities are
negotiations, but there is no guarantee” as determine “how much will have to be currently being matured and this is the first
to the possible hike in fuel prices, OLaNO collected to subsidise the difference between of many investment decisions to be made, in
Chairman of the Parliamentary Economy the capped price and the real price”, he said, line with Noreco’s objective to maximise gas
Committee Peter Kremsky said. and explained that the measure complements output in the short-, medium- and long-term.”
The exemption on imports of Russian the windfall tax. “The more government
oil also entails that Slovnaft curtails export collects on the pricing the less it will collect on
of produced fuel abroad over the next 18 the extra profits,” Barton was quoted as saying Wintershall Dea expands CCS
months. Slovnaft is working on replacing by Czech TV.
Russian oil. work in Denmark
Noreco, partners to sink two German oil and gas producer Wintershall Dea
Czech cabinet to introduce infill wells in Danish North Sea said on Thursday it was teaming up with other
companies to expand carbon capture and
energy price caps for large Norwegian Energy Company ASA (Noreco) storage activities around a hub near Hirtshals
on Denmark’s northern North Sea coast.
companies has reached a Final Investment Decision Greensand CCS project, in which Wintershall
The hub will be linked to the Danish
(“FID”) on two infill wells in the Danish
Czech cabinet members are discussing the North Sea. Dea is a key player. The company is aiming to
introduction of energy price caps for large The two wells will be drilled at the Tor safeguard gas usage - even as countries look
businesses in the country. Finance Minister reservoir in the Halfdan North East area, to cut emissions - by collecting and storing
Zbynek Stanjura (ODS party) told Czech located in the central part of the Danish North the carbon dioxide, it releases rather than
TV that this is going to be a similar measure Sea. allowing it to enter the atmosphere.
as the energy price caps for households and The wells are expected to increase gas “(Wintershall Dea) has joined other
that the costs of the measure will be between production from the Halfdan field, with companies in signing an agreement to
CZK30bn-50bn (€1.2bn-2bn). plateau production expected during autumn jointly pursue and develop the Greenport
Stanjura said there is no other option. 2023. Scandinavia project,” it said in a press release,
“I expect a quick agreement on the cabinet The first well alone is expected to have without naming the other companies.
level if it turns out that European solution on an initial production rate of 3 mboe/day net “By participating in Greenport
capping energy prices is not possible”, he told to Noreco where approximately 75% is gas. Scandinavia, we are showing that we are
Czech TV. The expected gain from the infill wells is driving decarbonization forward,” it said,
Vice-president of the Union of Industry approximately 2.9 mmboe net to Noreco, of adding it had signed a memorandum of
and Transportation Radek Spicar said two which c. 50% is gas. understanding (MoU) and was applying for
thirds of the business federation’s members The first well is expected to be drilled by relevant CCS licenses.
have prices capped until the end of this year, the jackup rig Shelf Drilling Winner (ex- Greenport Scandinavia will serve as a
but only 20% of them have caps for next year. Noble Sam Turner) in the early spring of 2023. collection point for some 1.5 million tonnes of
“It is high time to approve a solution which The Halfdan field is owned by the Danish CO2 generated from biogas in the region and
would help companies”, said Spicar. Underground Consortium (DUC), a joint from countries on the Baltic Sea, from where
The cabinet would have to notify the venture involving TotalEnergies (43,2%), it will be shipped to Greensand for storage in
European Commission after agreeing on the Noreco (36,8%) and Nordsøfonden (20%) depleted oil fields.
parameters. The opposition says it wants to The total cost of the two wells net to Financial details were not disclosed.
see caps on the same level as in Germany Noreco is $39 million, implying a total unit First injections of CO2 test volumes at
“They want [to cap] €130/MWh there development cost of approximately $13 per Greensand are planned for the beginning
which is CZK3,250 […] we call on [the barrel of oil equivalent, Noreco said. Based on of 2023, with view to reaching 4-5 million
government to cap] at the same level, and not Noreco’s disclosed net drilling cost figure, the tonnes of CO2 storage annually from 2030,
CZK6,000” as was the case with household total drilling cost of the two wells will come in Wintershall Dea said.
and small businesses caps, ex-minister of at around $106 million. The firm has long-term plans to build up
trade and industry from the populist ANO Based on expected reserves and forward a business capturing 20-30 million tonnes
party Karel Havlicek told Czech TV. curves of Brent and TTF from November of CO2 per annum by 2040, including deals
The cabinet wants to cover expenses on the 2022, the forecast IRR is above 200% with a with Norway, where sector peer E.ON has also
price caps from the income secured through payback period of c. six months, making the forged some ties.
windfall tax legislation, which is expected to infill wells highly attractive from an economic Some environmentalists say CCS
be ratified by the Senate this week. and strategic perspective, the company said. technology serves to prolong the age of
On Friday parliament also approved an Marianne Eide, Chief Operating Officer burning carbon for energy, and a more
amendment to the energy law which stipulates in Noreco said:”I am delighted to announce decisive shift to renewables is needed.
price caps for energy producers based on this significant milestone for the Danish
how much windfall tax will be collected from Underground Consortium (the “DUC”)

P14 www. NEWSBASE .com Week 48 02•December•2022