Page 17 - EurOil Week 39 2021

EurOil NEWS IN BRIEF EurOil

electricity producer was cited as saying, of greenhouse gas emissions. The increase in the uptime assumption
adding: “Weather forecasts we have suggest Equinor and Rosneft will also evaluate is a combination of there being no planned
a grim winter for hydro, thus electricity potential cooperation envisaging maintenance shutdowns anticipated in the
bills.” opportunities for the use of renewables, period, and reflecting the excellent production
Electricity and natural gas make up carbon capture, utilization and storage uptime that has been seen on the FPSO to
4.4% of Turkey’s consumer price index, (CCUS), and low-carbon hydrogen date, the company said.
meaning a 15% price hike across the board solutions. “The guidance for the Period is slightly
would increase consumer prices by 0.7 The agreement aims to identify low lower than the average for the full year 2021
percentage points. carbon solutions in the companies’ joint due to the expected gradual production
Asian liquefied natural gas (LNG) prices upstream projects in Russia, as well as decline from the reservoir over time,
climbed by around 10% this week, with engage in joint activities in the area of partially offset by the higher FPSO uptime
demand continuing to intensify in Asia sustainability based on the United Nations assumption,” Hurricane Energy added.
despite higher prices and amid a supply Sustainable Development Goals and “Based on current trends, management
crunch. Turkish state energy company recognized environmental, social and estimates that wellhead flowing pressure in
Botas was said to be seeking 20 cargoes for governance (ESG) frameworks. the Lancaster reservoir may reach the bubble
delivery in winter. point by the end of Q1 2022, consistent
with the time range estimation previously
announced on 25 May 2021. Whilst this has
Equinor and Rosneft in Hurricane expects been factored into the guidance for the period,
Lancaster to deliver
there will remain a degree of uncertainty
carbon management tie-up regarding the full impact of this, along with
the risk that gas liberated from the reservoir
Norway’s and Russia’s oil and gas giants, at upper end of output could be produced which could result in
Equinor and Rosneft, have signed an guidance by end of year production either being reduced or ceased
agreement on collaboration in carbon altogether,” the company said.
management, including potential Hurricane Energy, the operator of the Antony Maris, CEO of Hurricane, said:
collaboration on the use of renewables, Lancaster field west of Shetland, has said that “The company has benefited from higher
CCUS, and low-carbon hydrogen the annual output from the field would be than expected oil prices and excellent
solutions. at the upper end of the 8,500 - 10,500 bopd performance to date of the FPSO. As a result
As explained by Equinor on Wednesday, guidance. of the combined efforts of the Hurricane and
the agreement builds on the two The company issued output guidance on Bluewater teams, we anticipate being towards
companies’ strategic partnership in Russia Wednesday, taking into account additional the upper end of our production guidance for
where the Norwegian company has been production and pressure data gathered since 2021 and this is also reflected in our guidance
present for over 30 years. Drawing on this the annual maintenance shutdown in July for the next six months to 31 March 2022.”
longstanding cooperation and aiming to 2021. Back in June, Hurricane Energy plc said it
support the goals of the Paris Agreement, On April 30, 2021, Hurricane Energy would face the business wind-down unless it
Equinor and Rosneft will join forces to provided annual production guidance for the managed to secure a shorter charter extension
develop low carbon solutions and reduce full year 2021 of 8,500 - 10,500 bopd. for the Aoka Mizu FPSO than originally
the carbon footprint from joint projects. “The Company continues to forecast that agreed with the FPSO owner Bluewater.
Equinor and Rosneft have been partners average production for the year is expected Hurricane Energy, which started producing
in Russia since 2012 when they entered to remain within this range. This annual from the Lancaster field west of Shetland in
into strategic cooperation, which was the guidance is based on an FPSO production 2019 using the FPSO, said it would not extend
basis for Equinor’s operations in Russia uptime assumption of 90% and production the charter of the Aoka Mizu FPSO for a
going forward. from the P6 well alone on artificial lift via period of three years from June 2022 to June
Al Cook, executive vice president for ESP. The production uptime assumption 2025 “on current terms.”
Exploration and Production International of 90% includes the impact of the annual Hurricane, which last year significantly
at Equinor, said: “Equinor aims to maintenance shutdown, evenly spread across downgraded Lancaster reserves estimate, said
proactively support emissions reductions the year. that it was open to a shorter FPSO extension.
wherever we invest based on our decades The Lancaster field produces via The three-year initial term of the bareboat
of experience from Norway. We are happy Bluewater’s Aoka Mizu FPSO. charter expires in June 2022, “unless, by June
to work together with Rosneft and share Hurricane Energy’s production guidance 4, 2021, the company has exercised an option
best practice to address climate change”. from the Lancaster field for October 1, 2021, to extend for a period of three years, to June
Under the agreement, the companies to March 31, 2022 period is 8,500 - 10,000 2025.”
will share experience and explore bopd, which is based on an improved FPSO
opportunities within such areas as production uptime assumption of 96.5% and
the reduction in flaring and methane production from the P6 well alone on artificial
emissions, energy efficiency, and reporting lift via ESP.

Week 39 30•September•2021 www. NEWSBASE .com P17