Page 19 - EurOil Week 42

EurOil PROJECTS & COMPANIES EurOil

Tulip halves output at Q10-A field in Q3

NETHERLANDS DUTCH gas producer Tulip Oil halved produc- over summer, following the demand destruction
tion at the Q10-A field in the Dutch North Sea in caused by coronavirus (COVID-19) lockdowns.
Tulip opted to leave the third quarter, owing to a temporary shut-in But despite high levels of gas in storage, prices
some gas in the ground and low prices. have recovered in recent months. The November
earlier this year to wait Tulip scaled back extraction at the site to futures contract at the Dutch TTF hub closed on
until prices recover. 119mn cubic metres in the second quarter in October 15 at €14.2 per MWh, up from a low of
response to historically low gas prices, down €10.3 in late July.
from 198 mcm in the previous three months. Beyond weak market conditions, another
In an update on October 14, it said that it had factor weighing down on Dutch North Sea pros-
shut in production completely on September pects is the strict rules on nitrogen oxide emis-
1 so that maintenance could take place at the sions that came into force last year. Operators
neighbouring P15 platform. This meant that have also been waiting for years for the introduc-
only 59 mcm of gas was recovered in the third tion of a marginal field incentive programme.
quarter. But the price was higher at €6.1 ($7.2) In other recent developments off the Neth-
per MWh, versus €5.6 previously. erlands, Wintershall Noordzee, a joint venture
Even at this reduced output level, the Q10-A between Germany’s Wintershall Dea and Rus-
field continues to generate strong EBITDA mar- sia’s Gazprom, drilled their third well in late
gins, Tulip said. The company has also taken September at the Sillimanite field. Sillimanite
steps to increase its production capacity in the straddles the border between Dutch and UK
fourth quarter by activating existing third-party waters.
compression facilities. It aims to add two more The well is being hooked up to the D12-B
production wells at the site – one a completion production platform. Sillimanite’s first and sec-
of an unfinished well and another a side-track. ond wells were brought on stream in February
Tulip is also considering alternatives for and June respectively. Wintershall Noordzee has
extending the field’s life, while reducing its oper- a 39.5% participation in the project, while Dutch
ational expenditure and adding reserves. state-owned EBN has 50% and Neptune Energy
European gas prices slumped to record lows 10.5%. ™

NEWS IN BRIEF
Croatia’s Janaf signs oil Bulgaria’s Bent Oil wins 2023 to 2028, resell some of the natural gas
that it receives from the Danish part of the
storage deal with Sweden’s fuel supply deal with state North Sea to PGNiG.
According to the company, in the period
Litasco reserve from January 1 2023 to October 1 2028,
PGNiG expects to buy around 70 TWh
Croatia’s state-controlled oil pipeline operator Bulgaria’s state reserve and war-time stocks of the natural gas that Orsted purchases
Jadranski Naftovod said on October 20 it agency said on Wednesday that it has awarded from the Dansk Underground Consortium
signed an oil storage deal with Swiss company a BGN10.4mn($6.3mn) diesel fuel supply (DUC) under a long-term gas purchase
Litasco. contract to local fuel trader Bent Oil. agreement.
The deal is valid for the period from The contract envisages the supply of “The agreement is based on existing
November 1 until April 30 2021, as the oil 11,957 tonnes of diesel fuel, the state reserve natural gas purchase agreements that
will be stored at Janaf’s Omisalj terminal, the agency said in a notice. The deal was signed Orsted is still party to. Today, Orsted
Croatian company said in a statement with on October 14. invests exclusively in clean energy and
the Zagreb bourse. Sofia-based Bent Oil booked sales of some does no longer have any oil and natural gas
The announcement comes after last BGN725mn in 2018, according to its latest production.
month’s arrest of Janaf’s general manager publicly available annual financial statement. “Orsted does not enter into new
Dragan Kovacevic by Croatia’s Office for gas purchase agreements and does not
Suppression of Corruption and Organised renew existing long-term gas purchase
Crime (USKOK) for suspected economic PGNiG to buy Danish agreements“, the company stated.
crime and corruption.
Janaf controls terminals on the island offshore gas from Orsted
of Krk, as well as in Sisak, Virje, Slavonski Equinor hires TechnipFMC
Brod and Zitnjak, and operates 631 km Danish offshore wind developer Orsted has
of pipelines. It has 1.94mn cubic metres signed a deal to sell gas to Polish oil and gas for Breidablikk pipelaying
of storage capacity for oil and 222,000 company PGNiG under a multi-year contract.
cu metres of capacity for the storage of Orsted said on October 21 that the deal project
petroleum products. was made with PGNiG’s Supply & Trading
subsidiary (PST). Oilfield services firm TechnipFMC has
Under the agreement Orsted will, from said it has won a “significant” engineering,

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