Page 11 - NorthAmOil Week 19 2022

NorthAmOil NEWS IN BRIEF NorthAmOil

UPSTREAM DOWNSTREAM gallons per year (over 50,000 barrels per day)
of renewable transportation fuels, including
SilverBow Resources Phillips 66 makes final renewable diesel, renewable gasoline and
sustainable aviation fuel. Production of these
announces closing of investment decision to fuels is projected to reduce lifecycle carbon
emissions by approximately 65% — the
SandPoint acquisition convert san francisco equivalent of taking 1.4mn cars off California
roads each year. Rodeo Renewed is also
SilverBow Resources announced today refinery to a renewable expected to cut criteria pollutant emissions
that it has closed its previously announced at the site by 55% and water use by 160mn
acquisition of certain assets from SandPoint fuels facility gallons per year.
Operating, a subsidiary of SandPoint The scope of the project includes the
Resources. Purchase consideration due Phillips 66 made a final investment decision construction of pre-treatment units and
to the seller, subject to customary closing Wednesday to move forward with Rodeo the repurposing of existing hydrocracking
adjustments, was comprised of approximately Renewed, the project to convert its San units to enable production of renewable
$31mn in cash and 1.3mn shares of Francisco Refinery in Rodeo, California, fuels. The converted facility will leverage
SilverBow’s common stock. The cash portion into one of the world’s largest renewable its flexible logistics infrastructure to secure
of the purchase was funded with cash on fuels facilities. The project, which recently renewable feedstocks from local, domestic and
hand and borrowings under the company’s received approval from Contra Costa County, international sources and supply renewable
revolving credit facility. is expected to cost approximately $850mn fuels to California and other markets.
Sean Woolverton, SilverBow’s chief and begin commercial operations in the first PHILLIPS 66, May 11, 2022
executive officer, commented: “This is the quarter of 2024.
fourth deal we have closed since August of “Rodeo Renewed stands to play a major United Becomes first US
last year as we continue to execute on our role in helping us lower our carbon footprint
strategic objectives. The SandPoint assets as we continue to provide reliable, affordable airline to sign agreement
add meaningful production, inventory energy,” said Greg Garland, Chairman and
and reserves across a highly contiguous CEO of Phillips 66. “This is a project that to purchase sustainable
acreage position in La Salle and McMullen will help meet growing demand for lower-
counties. Looking ahead, we expect to close carbon fuels, preserve jobs and support aviation fuel overseas
the acquisition of the Sundance assets in California in achieving its climate goals. It is
June or July, at which time we will provide a great example of how Phillips 66 is making United, which has invested in more
updated guidance. We expect an uplift to meaningful investments in a sustainable sustainable fuel production than any other
our borrowing base in conjunction with the energy future that can create long-term value airline in the world, became the first US
closing of Sundance assets, which positions for our shareholders.” airline to sign an international purchase
SilverBow with enhanced liquidity and Upon completion of Rodeo Renewed, the agreement for sustainable aviation fuel (SAF).
multiple avenues of continued growth through converted facility will no longer process crude The airline has signed a new purchase
the drill-bit and accretive acquisitions.” oil and instead use waste oils, fats, greases and agreement with Neste that provides United
SILVERBOW RESOURCES, May 11, 2022 vegetable oils to produce an initial 800mn the right to buy up to 52.5mn gallons over
the next three years for United flights
at Amsterdam’s Schiphol Airport, and
potentially other airports as well.
“Reducing carbon emissions from fuel is
the fastest way United will reach our 100%
green goal by 2050. As the airline that has
invested more than any other airline in
sustainable aviation fuel production, it makes
sense to expand our network of partners
internationally with a leading company like
Neste,” said Lauren Riley, United’s Chief
Sustainability Officer. “The demand from
our customers to limit their emissions from
flying is growing exponentially, and this
agreement means that United customers
flying from Amsterdam, and potentially
more airports, will be partners in our
sustainability efforts.”
Neste will provide United with 2.5mn
gallons of SAF in Amsterdam in the first year.
United will also have the right to purchase up
to 20mn gallons in the second year, and up to
30mn gallons in the third year, at Amsterdam
or other locations that Neste can supply

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