Page 11 - NorthAmOil Week 42 2021

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ExxonMobil to boost CCS capacity

at Wyoming’s LaBarge

WYOMING EXXONMOBIL announced this week that it stated ExxonMobil Low Carbon Solutions’
was taking steps to expand carbon capture and president, Joe Blommaert. “ExxonMobil has
storage (CCS) capacity at its LaBarge natural gas long supported policies that provide a predict-
field in Wyoming. The super-major said it had able price on carbon emissions, which enable
kicked off a process for awarding engineering, new or expanded carbon capture and storage
procurement and construction (EPC) contracts investments.”
for the expansion project, having issued a request The company’s low-carbon unit is also eval-
for bids. uating other large-scale CCS opportunities,
The expansion would be the latest in a series including on the Gulf Coast, as well as in Europe
at LaBarge, which ExxonMobil said currently and Asia. ExxonMobil said the unit was initially
accounts for nearly 20% of all carbon dioxide focusing its CCS efforts on point source emis-
(CO2) captured globally each year, at around sions, the process of capturing CO2 from indus-
6-7mn tonnes per year (tpy). The project entails trial activity that would otherwise be vented into
an investment of around $400mn to add capac- the atmosphere, and injecting it into deep under-
ity for capturing up to an additional 1mn tpy of ground formations for permanent storage. The
CO2. unit is also considering future investments into
The gas produced at LaBarge has a high biofuels and hydrogen in a bid to scale up these
CO2 content, previously estimated at around technologies for use by the highest-emitting sec-
65%. tors of the global economy.
If a final investment decision (FID) is The LaBarge expansion project comes as the
announced in 2022 as expected, the expansion industry is increasingly talking up the use of CCS
could enter service in 2025. to help its emissions. However, development is
“This technology is critical to help meet soci- still in its early days and there are few CCS pro-
ety’s lower-emissions goals, and with the right jects targeting emissions from oil and gas pro-
policies in place, is immediately deployable,” duction that are operational to date.™

NEWS IN BRIEF

UPSTREAM of April 1, 2021. to PDP value. With the closing, Oasis’ pro
Oasis also announced the lenders under forma volumes increase by approximately
Oasis Petroleum completes its senior secured revolving credit facility 50%.”
completed their regular semi-annual
“Oasis has fundamentally aligned resources
strategic acquisition of redetermination of the borrowing base, with our core competitive strengths and
resulting in the borrowing base increasing
strategic focus of building a sustainable
Williston Basin assets, from $400mn to $900mn. The elected enterprise that generates attractive returns
commitment amount will remain at $450mn.
and significant free cash flow for the benefit of
announces redetermination The next redetermination of the borrowing the company and shareholders. Oasis remains
committed to increasing its fixed dividend
base is scheduled for April 1, 2022. On
of its borrowing base, and September 30, 2021, Oasis had a cash balance by over 33% to $0.50/share, or $2.00/share
annualised, in November 2021.”
of approximately $818.9mn, $0 drawn on
schedules third quarter its credit facility, and $400mn of unsecured OASIS PETROLEUM, October 21, 2021
notes. Pro forma cash adjusting for the
2021 conference call acquisition would have been $307.6mn. Daybreak Oil and Gas to
“The closing of this asset acquisition allows
Oasis Petroleum announced today it has us to integrate and drive significant value acquire Reabold California
completed the previously announced strategic from our Williston Basin position, where we
acquisition of Williston Basin assets from see long-term running room given our pro Daybreak Oil and Gas, a Washington
Diamondback Energy. The cash payment forma inventory depth,” said Danny Brown, corporation, is pleased to announce that it
made at closing to the seller of $511.3mn is Oasis’ chief executive officer. “The closing has agreed to acquire Reabold California, a
net of the $75mn deposit paid in 2Q21 and follows Oasis’ Permian Basin exit in June and subsidiary of Reabold Resources, a United
reflects customary purchase price adjustments represents a strategic portfolio repositioning, Kingdom company listed on the AIM Market
to the transaction, which was valued at where we were able to buy assets for PDP of the London Stock Exchange under the
approximately $745mn with an effective date value and sell assets for a significant premium ticker “RBD”.

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