Page 15 - EurOil Week 44 2021

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Shell not to attend COP26

NETHERLANDS ROYAL Dutch Shell CEO Ben van Beurden said servants seen by the newspaper, one official said
on October 28 that the oil major would not be BP “[does] not currently fit our success crite-
“We ere told that we attending the upcoming COP26 climate talks ria for COP26”, while another said “it’s unclear
were not welcome,” in Glasgow, after being told it would not be whether [its net-zero] commitments stack up
Shell’s CEO said. welcome. yet.”
“We are not represented,” van Beurden said BP has announced some of the industry’s
in an earnings call on October 27. “We were most ambitious climate targets, with plans to
told that we were not welcome, so we will not be scale down its oil and gas production by 40% over
there. That’s probably all there is to it.” the next decade and rapidly deploy renewables.
Shell has faced unprecedented criticism for Shell announced it would step up its own tar-
failing to do enough to reduce its emissions. It gets on October 28, but not to the extent ordered
was ordered by a Dutch court in May to increase by a Dutch court in May. The company said it
its targets for cutting emissions over the coming would seek to halve its Scope 1 and 2 absolute
decades, but has appealed against the ruling. emissions over the next decade, using 2016 as a
“I do hope that, indeed, people who are rep- baseline. Previously in February it vowed to cut
resenting the nations of the world are going to the net carbon intensity of its products by 6-8%
make the right choices,” he said. by 2023, 20% by 2030, 45% by 2035 and 100% by
Representatives of almost 200 countries 2050, also using 2016 as a baseline.
will meet in Glasgow for climate talks between However, the court ordered the company
October 31 and November 12. The goal will be instead to attempt a steeper 45% reduction in
to accelerate efforts to reach the goals envisaged Scope 1, 2 and 3 emissions, using emissions in
in the 2015 Paris Agreement, 2019 as a baseline. Shell is yet to commit to a
The Guardian reported on October 21 that Scope 3 target.
oil and gas companies had been given no official Van Beurden said the new targets were “clear
role in COP26, in contrast to previous climate evidence of how we are accelerating our Powering
summits. According to letters from UK civil Progress strategy, purposefully and profitably.” ™

PROJECTS & COMPANIES

OMV sells 25% interest in

Norwegian oil find to Lundin

NORWAY AUSTRIA’S OMV has sold its 25% stake in the Lundin said the Wisting area would be a core
Wisting oil discovery off Norway to Sweden’s production area for the Swedish company. It also
OMV framed the sale Lundin for at least $320mn, the companies said holds rights to the acreage surrounding the dis-
as part of its refocus on October 28. covery, where it wants to target a further 500mn
towards gas. OMV discovered Wisting in the Barents Sea barrels of oil in prospective resources.
in 2013, and its reserves are estimated at 500mn “The acquisition of a further stake in the
barrels of oil equivalent (boe). Now the Aus- high-quality Wisting development is a perfect
trian firm is exiting the project as part of its shift example of how we look to supplement our
towards natural gas, it said. organic growth strategy with opportunistic
“We intend to increase the share of natural acquisitions, fitting our ambition to sustain the
gas over oil to reduce the carbon intensity of the company long term,” Lundin CEO Nick Walker
product portfolio in the future,” Johann Plei- said in a statement. “With strong project eco-
ninger, OMV board member, commented. nomics, Wisting will be powered from [the]
Gas now accounts for more than 60% of shore and will be a significant contributor to
OMV’s upstream production. In addition to gas, sustaining our long-term production profile.”
OMV also wants to build up its petrochemicals The deal between Lundin and OMV is due to
business, where it is betting on robust long-term be completed in the fourth quarter after securing
growth in demand. Norwegian regulatory approval. It will be back-
Lundin already has a 35% position at Wisting. dated to January 1, 2021. Norway’s Equinor and
It aims to file a plan for development and oper- Petoro are also shareholders, with stakes of 35%
ation of the project by the end of next year, and and 20% respectively, as is Japan’s Idemitsu with
launch production in 2028. 10%. ™

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