Page 19 - AsianOil Week 48 2020

AsianOil NEWS IN BRIEF AsianOil

emissions reduction,” Mr Gallagher said. company positioned for disciplined growth BHP reduce CO2-e emissions by 30 per
“The world still relies on hydrocarbon fuels and sustainable shareholder returns. cent on a per voyage basis compared to a
for 80 per cent of its primary energy, the same “Our strategy has been to establish a conventional fuelled voyage between Western
as 45 years ago, so to achieve global emissions disciplined low-cost operating model that Australia and China, and contribute to our
reduction goals it is vital that companies like delivers strong free cash flows through 2030 goal to support 40 per cent emissions
Santos focus on making these fuels cleaner the oil price cycle. Our 2020 forecast free intensity reduction of BHP-chartered shipping
and eventually zero emissions.” cash flow breakeven oil price is less than of our products.”
SANTOS, December 1, 2020 US$25 per barrel before hedging and Steve Hill, Executive Vice President,
around US$20 per barrel after hedging,” Mr Shell Energy, said: “I would like to
Santos upgrades 2020 Gallagher said. congratulate BHP on reducing emissions
“Our base business is strong with
in their maritime supply chain with the
guidance production levels expected to remain world’s first LNG-fuelled Newcastlemax
bulk carriers. Decarbonisation of the
relatively steady for the next decade and
Santos today upgraded its 2020 production providing significant free cash flow. This cash shipping industry must begin today
guidance to 87-89 million barrels of oil flow combined with a strong balance sheet and LNG is the cleanest fuel currently
equivalent (mmboe) and lowered its and control over the timing of our major available in meaningful volumes.”
production cost guidance to $8.00-8.50/boe. projects, means we are well positioned for “This LNG bunkering contract strengthens
The upgrade in production guidance, from disciplined growth.” the bunkering market in the region and we
83-88 mmboe, is due to strong operating SANTOS, December 1, 2020 look forward to working with BHP and other
performance across the base business and customers in the maritime sector on their
represents 15-18 per cent production growth BHP awards LNG supply journey to a net-zero emissions future.”
for the year and more than 50 per cent growth The contract is the result of a tender
since 2015. agreement to Shell for LNG- process that included potential suppliers
Santos is also on track to deliver the across several geographies. Technical
production cost reductions announced in fuelled iron ore vessels capability, available infrastructure and cost
March in response to the COVID pandemic, competitiveness were among the stringent
which sees 2020 guidance lowered to BHP has awarded its first LNG supply criteria.
$8.00-8.50/boe. Capital expenditure is still agreement for five LNG-fuelled Newcastlemax BHP, December 1, 2020
expected to be approximately $900 million, bulk carriers, which will transport iron ore
consistent with the 38% reduction for the year between Western Australia and China from OMV advises Contact
announced in March. 2022.
Integration of the ConocoPhillips Shell has been awarded the contract to of reduced gas supply
acquisition completed in May 2020 is fuel the vessels, which BHP will charter from
proceeding well, with guidance on acquisition Eastern Pacific Shipping (EPS) for five-year estimate for 2021
synergies upgraded to $90-105 million per terms.
annum. BHP Chief Commercial Officer, Vandita Gas producer OMV New Zealand (‘OMV’)
Speaking at the company’s Investor Day in Pant, said: “The LNG bunkering contract has revised down its estimates of the gas
Sydney, Santos Managing Director and Chief marks a significant step in how BHP is available to Contact Energy from the Maui
Executive Officer Kevin Gallagher said the working with our suppliers to reduce and Pohokura fields in the 2021 calendar year
consistent and successful execution of Santos’ emissions across the maritime supply chain.” by 3.7 petajoules (PJ) to 10.6 petajoules.
Transform-Build-Grow strategy has the “LNG fuelled vessels are forecast to help CONTACT ENERGY, December 2, 2020

Week 48 03•December•2020 www. NEWSBASE .com P19