Shell, Equinor to create biggest UK producer: Update

: Crude oil, Natural gas
24/12/05

adds details throughout

Shell and Norway's state-controlled Equinor plan to combine their UK upstream businesses into a joint venture to create the UK North Sea's largest oil and gas producer.

The new business will produce more than 140,000 b/d of oil equivalent (boe/d) from 2025, the companies said. Bank analysts reckon growth projects will enable production to eventually increase beyond 200,000 boe/d.

It marks the latest deal in a wave of consolidation in the the UK sector of the North Sea, including Italian firm Eni's deal earlier this year to merge its UK upstream assets with those of independent producer Ithaca Energy and UK company Harbour Energy's tie-up with Germany's Wintershall Dea last year.

Shell and Equinor are following a similar 50:50 ownership structure and self-financing model that BP and Italy's Eni employed in Angola when they combined their offshore assets there to create Azule Energy in 2022. The Shell-Equinor joint venture's assets will include Equinor's stakes in the Mariner and Buzzard fields, alongside Shell's interests in Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair and Schiehallion projects.

A consequence of the deal is that Shell, having walked away from Ithaca's contentious Cambo oil project in the UK's west of Shetlands area last year, will now be exposed to Equinor's equally controversial 300mn bl Rosebank project, which is currently under judicial review. If Rosebank goes ahead, it is likely to be the largest growth driver of the new company with around 70,000 boe/d of production from 2027.

Although Shell's assets will contribute a greater share of the joint venture's production to begin with, Equinor's assets have greater growth potential. Through the new entity, Shell will also benefit from Equinor UK's £6bn ($7.6bn) of tax losses.

"Equinor's higher UK tax loss position and growth potential offsets the higher current production in Shell's UK portfolio, hence the 50:50 split in ownership of the new company," Barclays analysts wrote in a note.

The deal does not include Equinor's assets that straddle the UK's maritime border with Norway — Utgard, Barnacle and Statfjord. Equinor will also retain ownership of its UK offshore wind portfolio, as well as other low-carbon and gas storage assets.

Shell will retain ownership of its interests in Scotland's Fife NGL plant and St Fergus Gas Terminal, as well as floating wind projects under development. It will also remain the technical developer of the Acorn carbon capture and storage (CCS) project in Scotland.

By Jon Mainwaring

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25/11/15

Cop: 'Tangible' transition from fossil fuels needed

Belem, 15 November (Argus) — Kazakhstan's deputy minister of natural resources Mansur Oshurbayev today called for a "tangible, not rhetorical" transition away from fossil fuels at a panel during the UN Cop 30 climate summit in northern Brazil. Nigerian and Fijian representatives at the same panel noted the need for "real alternatives" for industry and workers, and for the finance to support a transition, respectively. The topic of moving away from fossil fuels has drawn attention at Cop 30, with host country Brazil's President Luiz Inacio Lula da Silva calling for a roadmap to overcome dependence on them . But talks on the topic are moving slowly. Cop 30 chief strategy and alignment officer Tulio Andrade said earlier this week that they are not on the formal negotiation table. Almost 200 countries agreed to transition away from fossil fuels at Cop 28 in 2023. Some developing nations such as Colombia are eager for a phase-out plan at Cop 30, but others, especially in the Middle East and Africa, are concerned that it might hinder their development, according to delegates. A growing number of countries are discussing an option similar to the so-called Baku to Belem roadmap , which sets out paths to scale climate finance for developing countries to $1.3 trillion/yr by 2035. A fossil fuel phase-out roadmap could look similar, a French delegation source said. Any reduction in fossil fuel production can only come "with real alternatives for firms, workers and regions", Oshurbayev said during the panel. "We must preserve and redeploy this human capital into activities that support the climate transition and do not directly compete with the coal and oil and [natural] gas operations", he added. The phase out of fossil fuels is a "difficult conversation", the director general of Nigeria's national council on climate change Omotenioye Majekodunmi said. Around 80pc of Nigeria's economy relies on fossil fuels and the country uses about 40GW of fossil-powered generators to generate electricity, he said. But there have been some strides at the national level, such as removing taxes on photovoltaic systems, solar panels and batteries, which will allow "small mom and pop shops and homes to adopt renewable energy options other than burning gasoline and diesel", he said. The country also removed long-standing fuel subsidies in 2023. The Netherlands' vice-minister of climate and energy Michel Heijdra called on countries to reduce fossil fuels subsidies earlier in the week during a Cop 30 high-level event. And fossil fuel subsidies throughout the world are mostly "underpriced, underused or unjust", the deputy chief of IMF's climate policy division Diego Mesa said. Nigeria is also considering creating an additional tax on oil products, Majekodunmi said, which would encourage the country to "reimagine alternative energy sources to drive its economy". The country will rely on natural gas as a "transition fuel" as it winds down over-dependence on fossil fuels, Majekodunmi said. Electrification can also help countries reduce fossil fuel usage, Oshurbayev said. Bold and joint action will be needed to mitigate the consequences of irreversible climate change, including to phase out fossil fuels, the permanent secretary of Fiji's environment and climate change ministry Sivendra Michael said. And any such action will require financing, he told Argus on the sidelines. Some countries, such as India and Saudi Arabia, are pressing for the climate finance obligations of developed countries to developing countries to be addressed at this summit. This is one of four contentious topics that did not make it onto the official agenda, but that countries are discussing in consultations overseen by the Cop presidency. "The ball is [in the] rich countries' court", Michael said. The technical phase of Cop 30 is now wrapping up, as countries' ministers are starting to arrive. The talks will shift into a political phase from 17 November. By Lucas Parolin and Rhys Talbot Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Croatia's Omisalj crude receipts drop in October

25/11/14

Croatia's Omisalj crude receipts drop in October

Barcelona, 14 November (Argus) — Crude receipts at the Croatian terminal of Omisalj fell in October, as a refinery served by the port caught fire and a disagreement continued between Omisalj's terminal operator and Hungary. Overall Mediterranean crude imports dropped sharply in the month. Omisalj receipts declined to 75,000 b/d last month, from 145,000 b/d in September, according to Argus tracking. Deliveries averaged 125,000 b/d in January-October, up from 110,000 b/d across 2024. The terminal serves Croatian firm Ina's 90,000 b/d Rijeka refinery and is the start of the 400,000 b/d Adria pipeline that can supply three landlocked refineries — Mol's 161,000 b/d Szazhalombatta in Hungary and 115,000 b/d Bratislava in Slovakia, and NIS' 96,000 b/d Pancevo in Serbia. Receipts fell as the US sanctioned NIS, and Szazhalombatta had a fire . There were sharp words over transit conditions between Mol and Janaf, in a long-running dispute. October deliveries to Omisalj comprised 45,000 b/d of Azeri BTC Blend, plus 30,000 b/d of Caspian CPC Blend. Argus assessed average crude quality at Omisalj in January-October at 37°API and 0.7pc sulphur, lighter than the 2024 average of 35.8°API and 0.7pc sulphur. Seaborne crude receipts at Mediterranean terminals — including Croatia, Spain, Greece, France's Fos-Lavera and Italy excluding Trieste — fell to 3.39mn b/d from 3.63mn b/d on the month. This was the lowest since June, when there were major works at two Greek refineries and Spain sharply cut crude purchases as a consequence of the end-April Iberian power outage. October arrivals were down on a combination of a string of planned and unplanned works and an ownership dispute in Italy, unplanned maintenance in France, Szazhalombatta's fire and the US' NIS sanctions. For refineries functioning correctly, middle distillate and gasoline cracks are buoyant . Greek's Helleniq Energy expects them to stay strong to year-end . For the second month in a row the biggest crude supplier to the Mediterranean region was the US, with 495,000 b/d down from 565,000 b/d in September. Libya supplied 440,000 b/d and Iraq 445,000 b/d. This was the most Iraqi crude in the Mediterranean since November 2023, supported by strong Greek demand for Basrah Medium, plus returning Kirkuk supply . By Adam Porter Mediterranean Europe crude imports mn bl Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

More oil, gas firms have emissions action plans: OGDC

25/11/14

More oil, gas firms have emissions action plans: OGDC

London, 14 November (Argus) — Oil and gas firms that are signatories to the Oil and Gas Decarbonisation Charter (OGDC) have increasingly set out plans to address their operational emissions, methane emissions and flaring, a report from the OGDC said today. Of the companies signed up to the charter in 2024, 36 reported having "interim action plans" for scope 1 and 2 emissions reductions for 2030, 31 reported that they had methane action plans and 33 reported having flaring action plans — up from 31, 20 and 22, respectively, in 2023. Of the signatories, 36 have third-party verification systems in place, the report found. The charter was signed at Cop 28 in 2023 and now has 55 signatories, representing around 40pc of global oil production and around 35pc of global oil and gas output. Of the signatory companies, around two-thirds are state-owned. OGDC signatories produced nearly 59mn b/d of oil equivalent (boe/d) in 2024. The OGDC estimated that total operated scope 1 and 2 emissions for all charter signatories stood at around 1bn t/CO2 equivalent (CO2e) in 2024. The estimate was based on submissions for operated scope 1 and 2 emissions from 41 signatories, which totalled just above 800mn t/CO2e in 2024. Scope 1 and 2 emissions usually make up a minority of oil and gas producers' total emissions. But scope 3, or end-use, emissions represent the vast majority of oil and gas producer emissions, with estimates in the range of 80-95pc of the total. A report from a group of more than 130 scientists on 13 November found that emissions from fossil fuels are projected to reach a record high of 38.1bn t/CO2 this year. Global emissions from "human activities" stood at 53.2bn t/CO2 equivalent (CO2e) in 2024, without factoring in emissions from land use, land use change and forestry, the EU's Edgar programme found in September. Charter signatories invested around $32bn in "low-carbon solutions" which include renewables, carbon capture, hydrogen and "low-carbon fuels" in 2024, according to the report. Signatories agree to aim for net zero operations by 2050, "near-zero upstream methane emissions" by 2030, zero routine flaring by 2030 and to "set and share" a 2030 goal for scope 1 and 2 emissions. TotalEnergies, a signatory to the charter, today committed $100mn to a fund which supports technologies to cut emissions "across the oil and gas value chain". The fund — Climate Investment — is partnered with the charter and will help signatories "on their decarbonisation path", within the charter's scope, TotalEnergies said. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US, allies fall out over Venezuela: Update

25/11/13

US, allies fall out over Venezuela: Update

Adds update on US operations, Venezuelan opposition comment. Washington, 13 November (Argus) — US president Donald Trump's administration is pushing back on allies' criticism of its strong-arm approach toward Venezuela — the latest point of disagreement within the G7 group of major economies. The US has built up a large naval presence near Venezuela since early September — including the Gerald R Ford aircraft carrier strike group as of 11 November — and has carried out almost 20 lethal attacks on small boats it accuses of ferrying drugs. US defense secretary Pete Hegseth on Thursday labeled efforts to remove "narco-terrorists from our hemisphere" as Operation Southern Spear, to be led by the Southern Command which oversees military forces in Central America, South America and the Caribbean. The US administration's legal pretext for the build up and Trump's statements that he is considering attacks on Venezuela's soil have come under skeptical review from US lawmakers from both parties. G7 foreign ministers ahead and during their meeting in Canada on 10-11 November expressed similar sentiments. The US strikes against boats disregard international law, French foreign minister Jean-Noel Barrot said. There is no legal basis for the US attacks, EU foreign affairs commissioner Kaja Kallas told NBC News on Wednesday. "I don't think that the EU gets to determine what international law is," US secretary of state Marco Rubio told reporters late on Wednesday. "I do find it interesting that all of these countries want us to send and supply, for example, nuclear-capable Tomahawk missiles to defend Europe, but when the US positions aircraft carriers in our hemisphere where we live, somehow that's a problem." The EU has backed Ukraine's request last month to equip Ukrainian forces with Tomahawk missiles to enable Kyiv to strike targets deep inside Russia. But Trump appears to have denied the request. The US armada assembled near Venezuela, including the Gerald R Ford group, carries an estimated 170 Tomahawks, defense experts Mark Cancian and Chris Park with think tank the Center for Security and International Studies wrote on 10 November. The Tomahawk inventory is comparable with the number of missiles the US military previously used in campaigns of limited duration, such as in Libya in 2011, the experts said. US naval maneuvers and boat strikes so far have had no impact on Venezuela's oil exports and energy shipments across the Caribbean. Chevron — allowed to resume business in Venezuela just before the naval build up began — appears to have imported 155,000 b/d to the US from Venezuela in October, based on data from Kpler ship tracking. Venezuela's crude output was at an estimated 1.1mn b/d in October. Independent refiners in China absorb the bulk of Venezuelan crude exports not loaded by Chevron. Venezuelan imports to China were at an estimated 500,000 b/d in October, with many more cargoes available than there are buyers, despite Merey discounts widening to $12/bl against Ice Brent. What next? The US has not carried out a unilateral military intervention in the western hemisphere since 1989, when it toppled Panamanian president Manuel Noriega's government and transported him to the US where he was convicted in court of involvement in drug trafficking. Trump, Rubio and other US officials have made public statements suggesting that removing Maduro from power is among possible options for the US naval force. Maduro faces a US prosecutors' indictment over alleged drug trafficking and the US has offered a $50mn bounty for his capture. Venezuela this week passed a law obligating the general population to defend Maduro's regime, with the president calling for "maximum preparation". Additional military forces have not been highly visible in the capital of Caracas in recent days. Interior minister Diosdado Cabello threatened members of Venezuela's political opposition, saying "don't say we didn't warn you" if the US "does anything to any of us." Opposition leader Maria Corina Machado said from hiding late on Wednesday that Venezuela is "in the final hours" of what will be a "peaceful transition." But the US military resources assembled in the Caribbean suggest that a full blown invasion is not likely. Trump's deployment of the US military has been more limited so far this year — bombing Yemen's Houthis and Iran, and quickly declaring victory. "Attacks on the cartels have the advantage that the US can walk away at any time ... claiming that it damaged cartel operations and thereby reduced the flow of drugs into the US," Cancian and Park wrote. The Trump administration has told US lawmakers that its military operations are a "non-international armed conflict" with an unspecified group of "designated terrorist organizations". A legal opinion written by Trump's Justice Department in late July — and shared with the US Congress in early November — did not explicitly mention Venezuela and merely asserted the right to target trans-national criminal organizations anywhere, by all means. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

API pitches revamp of biofuel exemptions: Update

25/11/13

API pitches revamp of biofuel exemptions: Update

Updates throughout New York, 13 November (Argus) — The American Petroleum Institute (API) is pitching the White House and biofuel groups on a total revamp of how the US exempts oil companies from a program that requires biofuel blending, according to three people familiar with the lobbying group's work. API recently withdrew its support for a bill that would authorize 15pc ethanol gasoline (E15) year-round on its frustrations with changes to biofuel policy this year that oil companies see as too friendly to farmers and to some small refining competitors. The US for instance recently granted small oil refiners generous hardship waivers from a biofuel blend mandate and proposed requiring larger companies to blend more biofuels in future years as an offset. API's pitch — shared at a White House meeting this week — would require that companies seeking program exemptions must show that economic hardship stems directly from the biofuel program, a more stringent requirement than today, according to two of the people familiar with the group's work. Exemptions would also be restricted to companies with limited collective refining capacity, cutting off larger enterprises like Delek and Par Pacific that own multiple small units that qualify now. Smaller companies like Ergon and Kern Oil could still request waivers, but the total pool of potentially exempted gas and diesel volumes would be far lower. The oil group then wants the US to prohibit hiking other oil companies' blend requirements to offset those exemptions, a tougher sell to biofuel and crop groups that fear unchecked program waivers curb demand for their products. Larger merchant refiners that do not qualify for small refinery relief have also long pushed lawmakers for updates to the program and would not benefit from this proposal. API's idea is to pass legislation pairing updates to the small refinery exemption program with year-round authorization of E15, generally prohibited in the summer without emergency waivers because of summertime fuel volatility restrictions that do not apply to typical 10pc ethanol gasoline. That's a top priority for ethanol companies, otherwise at risk from an increasingly efficient and electric light-duty vehicle fleet. Congress last year nearly passed narrower E15 legislation, which API supported at the time but no longer does without more changes. Courts have struck down past attempts by federal officials to authorize E15 without emergency declarations and to drastically restrict biofuel exemption eligibility, likely limiting what President Donald Trump's administration can do without new legislation. API made the pitch to the White House this week, the sources familiar with API's work said. The White House is hosting other groups for meetings on fuel policy, including another one on Thursday on E15 that featured biofuel groups. Officials from across Trump's administration, including the US Department of Agriculture, have attended. "Administration officials hosted listening sessions with biofuel groups, agriculture and oil refiners to discuss their proposals on year-round E15", a source familiar with the matter said. It is not clear that biofuel advocates, insistent that the Trump administration entirely offset the impact of recent refinery exemptions, are open to the attempted compromise. The ethanol group Renewable Fuels Association declined to comment on E15 talks. Regulatory tweaks to boost ethanol supply would also do little on their own to help producers of other biofuels like renewable diesel. API declined to elaborate on what was discussed at any meetings with the Trump administration. "We appreciate the administration's leadership in bringing stakeholders together to advance a practical solution on E15 and small refinery exemption reform", API said. "We look forward to continuing to work together to advance a framework that supports fuel choice, strengthens the refining and agricultural sectors, and helps ensure a stable, reliable supply for American consumers." Under the Renewable Fuel Standard, the US requires oil refiners and importers to annually blend different types of biofuels or buy credits from those that do. The administration is late setting new biofuel quotas for 2026 but is expected to do so in the coming months, kicking off a flurry of last-minute lobbying about future volumes, exemptions and potential cuts to credits from foreign fuels and feedstocks. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Shell, Equinor to create biggest UK producer: Update

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