Page 15 - AsianOil Week 10 2023

AsianOil NEWS IN BRIEF AsianOil

Activist investors challenge Bohai Sea, with an average water depth of Cheniere counts on Asian LNG
22 meters, and is identified as the largest
Santos' growth plans metamorphic buried hill oilfield in China. shipments
The oil property is light crude, and the main
Activist shareholder groups Snowcap oil-bearing play is Archean buried hill. Cheniere Energy expects to increase LNG
Research and Market Forces have criticized The discovery well BZ26-6-2 was drilled shipments to Asia this year after European
Australian oil and gas explorer Santos for and completed at a depth of 4,480 meters customers took the majority of its cargoes
prioritizing growth strategies that could and encountered a total of 321.3 meters oil in 2022. Cheniere is the top U.S. exporter
potentially increase carbon emissions and pay zones. The well was tested to produce of LNG and shipped a total of 638 cargoes
reduce shareholder value. The groups have an average of approximately 2,040 barrels last year, with over 70% delivered to Europe.
identified executive incentives as driving of crude oil and 11.45 million cubic feet The company's CEO, Jack Fusco, said that a
Santos to invest in high-cost, high-risk, and of natural gas per day. This is the third little more than half of Cheniere's customers
long-term upstream production projects oilfield discovery with hundred million are European firms, which ensures it will
that are misaligned with shareholder tons of reserves in the southern Bohai continue to have a balance between Asia
interests and climate goals. Sea after Kenli 6-1 and Kenli 10-2. The and European markets.
Market Forces has filed a statement on discovery demonstrates the broad prospect Cheniere last year gave the financial
behalf of 100 shareholders urging all investors of exploration for subtle buried hills in the go-ahead for an expansion of its Corpus
to vote against Santos' remuneration report Bohai Sea, providing important guidance Christi, Texas, liquefaction plant and has
at the upcoming annual general meeting on for exploration in similar basins. The Bohai sought an early environmental review
April 6. Last year, over 25% of shareholders Sea has been one of the targeted areas of with federal regulators for an expansion
opposed the 2022 remuneration report, and exploration for the company and they will at its Sabine Pass, Louisiana, facility. The
if this threshold is met again this year, it could continue to look for mid-to-large sized proposed expansions would add 30 million
potentially require the entire board to stand for oil and gas fields to fortify the resource tonnes per year of LNG production capacity
re-election. foundation for the high-quality and combined.
According to Market Forces' analysis, sustainable development of the company.. According to Chief Operating Officer
Santos' increasing oil and gas output plans Corey Grindal, construction of Cheniere's
are expected to result in a 40% increase in and other LNG plants along the U.S. Gulf
emissions from 2022 to 2030. Snowcap has Jera, Chevron sign CCS MoU Coast is stressing existing gas transportation
also criticized Santos for committing to $7 and storage infrastructure. Grindal added
billion of new growth projects since 2021 and Chevron New Energies and JERA Co. have that in states like Louisiana, there is a need
having another $6 billion of potential spending signed a Memorandum of Understanding to continue to expand the infrastructure.
targeted for final investment decisions, which (MOU) to collaborate on carbon capture Despite the return of Russian gas to the
it says represents "by far the most aggressive and storage (CCS) projects located in the market, Cheniere is confident that long-
upstream capex plan" in the sector. Snowcap United States and Australia. The MOU has term contracts with its expanding customer
has called for an overhaul of Santos' growth the potential to expand the existing liquid base will continue to provide balance
strategy, saying it is "misguided and reckless," natural gas (LNG) relationship between between Asian and European markets. The
and advocated reforms that it claims could Chevron and JERA and further their executives noted that Europe is putting
increase shareholder value by as much as 50%. commitment to advancing lower carbon the infrastructure in place to import LNG
In response, Santos said its remuneration solutions. Chevron has stated that the MOU for the long-term, reducing its reliance on
structure is designed to incentivize builds on their collaboration with JERA in Russian pipeline gas. However, CEO Fusco
management to achieve its "purpose and vision the lower carbon space, which began with said that a permitting reform in the country
to provide cleaner energy that is both affordable their joint announcement in November needs to happen, referring to red tape that
and sustainable." However, the company 2022 on the potential co-development of often causes delays and bottlenecks to
did not immediately respond to requests for lower carbon fuel in Australia and the study expanding LNG capacity.
comments from Reuters. Shares of Santos and of liquid organic hydrogen carriers (LOHC) Cheniere is also monitoring the
Woodside Energy rose more than 1%, despite in the United States. Federal Energy Regulatory Commission's
the criticism. Chevron has been granted permits to requirements for rival Freeport LNG to
undertake evaluation and appraisal work restart its fire-damaged Texas facility.
for the potential storage of carbon dioxide The monitoring is intended to ensure its
CNOOC strikes oil at Bozhong offshore Australia as part of three joint facilities meet all FERC standards.
ventures, including two in the Carnarvon
26-6 field Basin and one in the Bonaparte Basin.
These blocks, which total more than 31,500
CNOOC Limited, a Chinese oil company, km2 or nearly 7.8 million acres, are larger Yinson teams up with AVEVA to
has announced the discovery of the than Belgium. Chevron also entered into
Bozhong 26-6 oilfield in the Bohai Sea, a U.S. Gulf of Mexico carbon capture and develop fully autonomous FPSOs
off China. According to the company, this storage joint venture with Talos Energy and
discovery "brings another hundred million Carbonvert in May 2022. The partnership between Malaysian FPSO
tons of reserves." The Bozhong 26-6 oilfield provider Yinson and industrial software
is located in the southern region of the firm AVEVA aims to develop "fully

Week 10 09•March•2023 www. NEWSBASE .com P15