Page 13 - NorthAmOil Week 13 2022

NorthAmOil NEWS IN BRIEF NorthAmOil

well as NFE’s growing business around the MOVES ENERGY TRANSITION
world of reducing emissions and pollution by
providing a cleaner, affordable and reliable Topaz Energy acquires Enbridge awarded right to
alternative to oil-based fuels.
NEW FORTRESS ENERGY, March 31, 2022 oil-focused fee mineral advance Alberta carbon hub
title acreage through the Today, the government of Alberta announced
SERVICES that Enbridge has been awarded the right
to pursue development of a carbon dioxide
Helix Energy Solutions acquisition of Keystone (CO2) sequestration hub west of Edmonton,
Royalty
Alberta. Enbridge is developing the Open
announces multi-year Topaz Energy is pleased to announce that Access Wabamun Carbon Hub (the Hub) to
support near-term carbon capture projects
contract with Shell it has entered into a definitive agreement being advanced by project partners Capital
with Keystone Royalty for the purchase
Power and Lehigh Cement, a division of
Helix Energy Solutions Group, a leading of its outstanding common shares, for Lehigh Hanson Materials.
provider of offshore energy services, is pleased CAD85.0mn, payable through the issuance “We are excited to take this next step
to announce it has entered into a new multi- of 4,187,193 Topaz shares. The Keystone in developing the Open Access Wabamun
year contract with Shell Offshore to provide Royalty acquisition is expected to close during Carbon Hub in Alberta,” said Enbridge’s Colin
well intervention services in the US Gulf of the second quarter of 2022, subject to the Gruending, executive vice president and
Mexico. Commencing in March 2022, the satisfaction of customary closing conditions. president, liquids pipelines. “We commend the
three-year contract includes an anticipated The Keystone Royalty acquisition adds Government of Alberta for moving quickly on
75 days utilisation per year with the option to a large and diversified Western Canadian launching a world-class carbon capture and
add additional utilisation days. royalty portfolio consisting of over 480,000 sequestration (CCS) industry in the province.
Under the contract Helix will provide gross acres of royalty lands which includes (i) We look forward to working with project
either the Q4000 or Q5000 riser-based semi- current royalty production of approximately partners Capital Power and Lehigh Cement,
submersible well intervention vessel, a 10k or 450 boepd (83% liquids); (ii) over 310,000 along with our local Indigenous partners, to
15k Intervention Riser System (IRS), remotely gross acres of fee mineral title lands; and advance the hub, creating jobs and economic
operated vehicles, project management and (iii) complementary seismic assets. The growth, and helping Alberta and Canada meet
engineering services to cover operations Keystone Royalty assets, primarily located in emissions reduction goals.”
from fully integrated well intervention to Southeast Saskatchewan, provide low base The hub and associated carbon capture
fully integrated plug and abandonment decline, oil-focused production and include projects being advanced by Capital Power
well services. The Q4000 and Q5000 well royalty interest ownership in a number of and Lehigh Cement represent an opportunity
intervention vessels provide an optimal unitised production areas, including the to avoid nearly 4mn tonnes of atmospheric
platform for a wide variety of tasks, including Weyburn Unit, in which Topaz owns an CO2 emissions with phased in-service dates
subsea well intervention, field and well existing 5% royalty interest. Keystone Royalty starting as early as 2025. Once built, the Hub
decommissioning, installation and recovery of has federal tax pools of over CAD25.0mn, will be among the largest integrated CCS
subsea equipment, well testing and emergency positive working capital and no debt. Pro projects in the world and can be scaled to
well containment. forma, Topaz will have over CAD1.8bn of meet the needs of other nearby industrial
Scotty Sparks, Helix’s executive vice consolidated federal tax pools, approximately emitters.
president and chief operating officer, stated: CAD500.0mn of which are non-capital losses. The hub’s carbon transportation and
“Shell continues to be a valued customer Topaz’s tax profile enhances its shareholder sequestration facilities will be co-developed
of Helix. We appreciate their continued return proposition and provides the Company and ultimately co-owned with local
confidence in our fully integrated well additional flexibility to expand its future indigenous partners, including the First
intervention services, our commitment dividends. Nations Capital Investment Partnership
to safety and cost-effective and efficient Topaz expects to generate approximately (comprised of Alexander First Nation, Alexis
solutions. We are confident in the efficiencies CAD17.0mn of annualised royalty revenue in Nakota Sioux Nation, Enoch Cree Nation and
and value we bring to our customers, and 2022 from the Keystone Royalty assets, based Paul First Nation) and the Lac Ste. Anne Métis
this contract further signals the increasing on current strip pricing. Community.
demand for our services.” TOPAZ ENERGY, March 31, 2022 ENBRIDGE, March 31, 2022
HELIX ENERGY SOLUTIONS GROUP, March 31,
2022

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