Indonesia to lift Akasia oil, gas field output capacity

: Crude oil, Natural gas
25/08/13

Indonesian state-owned energy firm Pertamina is upgrading a gathering station in the Akasia Bagus field in west Java to raise output capacity, and aims to complete this in the second half of 2025.

Pertamina's upstream subholding, Pertamina Hulu Energi (PHE), is working on boosting processing capacity at the Akasia Bagus gathering station to 9,000 b/d of liquids and 22mn ft³/d of gas.

The gathering station currently has a capacity of about 1,750 b/d for liquids and 3mn ft³/d for gas. Details on the Akasia Bagus field's current oil and gas reserves were not provided.

The production facility will also be equipped with a CO2 removal "package" comprising an amine system, a gas dehydration unit and thermal oxidation to reduce CO2 and water levels, Pertamina said.

"We hope this project will be on stream in the second half of 2025, so we can monetise the gas reserves in the Akasia Bagus field and contribute to increasing Indonesia's oil and gas production," PHE's president director Awang Lazuardi said.

Indonesian president Prabowo Subianto has set a target for reviving Indonesia's oil output to 900,000-1mn b/d by 2028-29. The country's consumption amounts to more than 1.5mn b/d.

PHE currently manages 24pc of Indonesia's oil and gas blocks and contributes 69pc of domestic oil production and 37pc of national gas production.

PHE recorded total oil and gas production of 1.04mn b/d of oil equivalent (boe/d) in the first half of 2025. This comprised 557,000 b/d of oil production and 2.8bn ft³/d of gas production. This is compared with 556,000 b/d of oil production and a similar 2.8bn ft³/d of gas production in the whole of 2024.

The firm is also still actively conducting exploration and drilling. It recorded an increase in proven oil and gas reserves of 63mn boe in the first half of 2025, as well as additional contingent resources of 804mn boe.

At the same time, PHE is also developing carbon capture, utilisation and storage (CCUS) technologies. It currently has 11 ongoing CCUS/CCS studies and plans to develop two CCS hubs and several projects with a storage capacity totalling 7.3 gigatonnes of CO2, according to Pertamina.

Pertamina has achieved around 68pc of its annual emissions reduction target as of the first half of 2025, with total emissions reductions of more than 1mn t of CO2 equivalent, according to the firm.

By Prethika Nair

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25/12/08

Brazil's Lula eyes draft to step away from fossil fuels

Sao Paulo, 8 December (Argus) — Brazil's president Luiz Inacio Lula da Silva called for the country's own draft roadmap for a "just and planned" energy transition, focusing on the move away from fossil fuels, after leading efforts for such an international plan. Brazil's energy, environment and finance ministries, as well as the chief of staff, must draft a resolution by 60 days from 5 December, or by 3 February, according to a presidential decree published in the official gazette on 8 December. Lula called for the creation of an international roadmap to move away from fossil fuels during a leaders' summit only a few days before the UN Cop 30 climate summit. That led to over 80 countries supporting a call for a roadmap to be included in final agreements at Cop 30. But the proposal did not make it to the summit's final decision. Instead, the Cop 30 presidency pledged to create a roadmap on the issue outside of official negotiations. Cop 30 president Andre Correa do Lago said recently that an initial draft of roadmap could be ready by April , when Colombia is set to host a global summit on the topic . Energy transition fund Lula also requested the creation of a draft resolution to "propose financing mechanisms to implement an energy transition policy", which would include creating an energy transition fund financed "by a portion of government revenues from oil and gas exploration". The ministries and chief of staff will also have 60 days from 5 December to draft this resolution. Lula had also asked oil and mining firms to pay their fair share of climate financing during a speech at Cop 30. This comes after similar efforts at previous climate summits. An initiative from the Cop 29 presidency called for a climate fund, capitalized with voluntary contributions from oil, coal and gas-producing countries and companies, to support developing economies in addressing climate change. But the fund was never set up and the topic slid from the agenda. Brazilian state-controlled oil firm Petrobras did not answer Argus ' requests for comments on the topic. Mining giant Vale declined to comment. But Brazil's oil, gas and biofuels institute IBP "recognizes the importance of creating a fund to finance energy transition and climate change projects and understands that the oil and gas sector can and should be part of the solution for this process", it told Argus . Brazil's oil and gas sector contributes with R325bn ($60.85bn)/yr in taxes and "part of this amount should be directed towards climate finance and a fair and efficient energy transition process", IBP said. But for that it is necessary to maintain oil and gas production, it said. Brazil has been steadily increasing its oil production. It produced 4.03mn b/d of crude in October , a 23pc increase from the same month in 2024, data from hydrocarbons regulator ANP show. The country has plans to expand oil production to 5.3mn b/d by 2030, according to energy research bureau Epe, hinging on new exploratory frontiers such as the southern Pelotas basin and the environmentally sensitive equatorial margin. IBP also argues that Brazil's oil sector already faces a large tax burden, with 66pc of all crude destined for the payment of taxes, fees and royalties. "We want to and will contribute, but it's necessary to point out that there's no way to create more burdens on the sector's supply chain", it said. The group argues that the fund's financing should come from the redistribution of current government oil and gas revenues. "Increasing taxation on oil and gas exploration and production could make future projects unfeasible," it said. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US LNG margins tighten on higher Henry Hub prices

25/12/05

US LNG margins tighten on higher Henry Hub prices

Houston, 5 December (Argus) — A narrowing spread between US and European LNG prices and high freight rates in the Atlantic basin have pushed the front-month indicative long-term LNG contract cost above the spot Gulf coast fob price for the first time in two years. But the premium over the spot price will likely be brief, and limited flexibility in annual delivery plans will likely leave export schedules unchanged, with the impact solely on profit margins rather than fundamentals. A steeper backwardation in the US' Henry Hub forward curve compared to the northwest European LNG forward curve beyond February, as well as a steep backwardation in charter rates, means US LNG offtakers likely will not need to alter export plans. Liquefaction fees are also considered a sunk cost, and the Henry Hub remains comfortably below European LNG prices to more than cover the shipping cost between the two markets. This means there is still a strong financial incentive to maximise US LNG export volumes. The indicative long-term LNG contract price — 115pc of Henry Hub plus a $3/mn Btu liquefaction fee — has exceeded the Argus Gulf coast (AGC) spot fob price since 28 November, climbing to a premium of 69¢/mn Btu on 4 December. That premium came with the front-month Henry Hub price at a nearly three-year high of $5.06/mn Btu on forecasts for cold weather and US LNG exports at a record high. At the same time, the front-month NW Europe LNG des price was at $8.83/mn Btu, the lowest since May 2024, with warmer-than-normal weather forecast in Europe and EU underground storage well-supplied. A surge in freight rates, primarily driven by higher Atlantic basin loading demand, including at the 27.2mn t/yr Plaquemines plant, widened the spread between the AGC fob price and delivered spot prices in northwest Europe. The spread grew to 96¢/mn btu on 24 November, near the peak of the freight rally, up from 28¢/mn Btu in mid-October (see spread chart) . The wider spread pushed the AGC fob price for January loading below the indicative long-term LNG contract price for the same month. Forward freight rates are in steep backwardation in the first quarter of 2026, which is reflected in a tighter AGC-NW Europe spread over that span, as are Henry Hub futures contracts. This puts AGC prices above the indicative long-term contract prices from March through June (see forwards chart) . Although exports are unaffected because of liquefaction costs being considered sunk, the dynamic highlights the tightening margins for US LNG as a supply wave brings more liquefaction capacity on line through the end of the decade. The AGC fob's premium over the long-term indicative contract averaged $4.11/mn Btu through 4 December this year, down from $4.63/mn Btu, $5.37/mn Btu and $20.13/mn Btu in 2024, 2023 and 2022, respectively (see margins chart) . By Tray Swanson AGC-NWE spread and freight rates Tighter margins for US LNG $/mn Btu Indicative long-term contract forwards vs LNG spot prices $/mn Btu Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Eni and BP plan deepwater well in Libya in 1Q

25/12/05

Eni and BP plan deepwater well in Libya in 1Q

London, 5 December (Argus) — BP and Italy's Eni will drill a long-planned deepwater exploration well offshore Libya in the first quarter of 2026, a source at state-owned NOC told Argus . It is the most anticipated well since international oil companies, also including Spain's Repsol, Austria's OMV and Algerian state-owned Sonatrach, resumed exploration efforts late in 2024. "The first ultra-deepwater exploration well in Area C is scheduled in 2026," block operator Eni told Argus . NOC said the well is scheduled for January. The planned well is offshore Libya's Sirte Basin oil and gas heartland and targets a gas prospect. Eni and BP started a three-well exploration campaign in late 2024. The first well was drilled on their Area B in the Ghadames basin, but the NOC source said this yielded no commercial quantities of oil and gas. Eni and BP plan another exploration well on Area B in 2026, the source said. Any discoveries could be tied into Eni's nearby facilities. The two firms also hold the close by Area A. Eni is Libya's largest oil and gas producer by volume and is leading the country's exploration revival. It is currently drilling an offshore exploration well in Area D, close to its existing offshore production facilities. It will drill another after this is completed, the source said. IOCs were forced to abandon their exploration efforts in 2014 as the Libya's security situation deteriorated. Firms are returning because NOC lifted force majeure on these plans in 2024. "The companies are genuinely eager to explore," the source said. "This isn't just about them having to fulfill their contractual commitments." Repsol is drilling the third of a nine-well exploration campaign in the onshore Murzuq basin. So far, one of these has proven "successful", the source said. Discoveries will be tied into the Repsol-led 300,000 b/d El Sharara field. NOC has announced six new onshore discoveries this year, including one from OMV and one from Sonatrach . Exploration revival Libya has said it will announce winners of its first upstream licensing round in almost two decades in the first quarter of 2026. Firms including ExxonMobil, Chevron, Shell, BP, TotalEnergies and Eni have been shortlisted to participate in the licensing round. ExxonMobil , Chevron , Shell and BP have also signed bilateral preliminary agreements with NOC that could see them explore new areas and even develop existing onshore fields. The exploration programmes and licensing round are primarily aimed at boosting reserves and extending plateau production once Libya reaches its output goals, but discoveries could surprise to the upside. Libya aims to boost crude production from about 1.4mn b/d to 2mn b/d and gas production from about 1.2bn ft³/d (12.4bn m³/yr) to 4bn ft³/d over the next few years. By Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Golden Pass LNG approved to receive cool-down cargo

25/12/04

Golden Pass LNG approved to receive cool-down cargo

Houston, 4 December (Argus) — QatarEnergy and ExxonMobil's 18.1mn t/yr (2.4bn ft³/d) Golden Pass LNG export terminal in Texas received federal approval today to unload a cool-down cargo, a key step in commissioning the plant. The Federal Energy Regulatory Commission granted the project's request to introduce hazardous fluids into various systems and receive the cool-down cargo. The 174,000m³ Imsaikah has been holding offshore Texas' Port Arthur since 29 November after departing QatarEnergy's 77mn t/yr Ras Laffan export terminal with a cargo on 27 October. The vessel's LNG will be used to cool down Golden Pass' equipment for its start-up process. The three-train project also has federal approval to introduce fuel gas to train 1 and train 1's gas turbine. Feedgas flows to Golden Pass have yet to materially rise. Pipeline nominations on 4 December were just over 8mn ft³, in line with daily flows since mid-October. Flows to LNG plants can be revised later in the day. The project's developers anticipate the facility will start production by the end of the year or in early 2026, with each of its three trains coming on line in six-month intervals. By Tray Swanson Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Qatar presents 2040 climate target to UN

25/12/04

Qatar presents 2040 climate target to UN

Edinburgh, 4 December (Argus) — Qatar has pledged to reduce its emissions by 42mn t of CO2 equivalent (CO2e) by 2040 from a 2019 baseline, with the oil and gas sector "at the forefront of national mitigation efforts". Qatar does not provide its total greenhouse emissions for 2019, but said its climate plan encompasses CO2, methane and nitrous oxide gases. It covers the energy sector — oil and gas, power and water — construction and industry, transport, waste and agriculture, forestry and other land use. Parties to the Paris Agreement were required to submit climate plans, known as nationally determined contributions (NDCs), for 2035 to the UN climate body UNFCCC this year. Qatar had previously targeted emission reductions of 25pc, or 37mn CO2e, by 2030, compared with a business-as-usual (BAU) scenario. BAU scenarios typically assume emissions based on current policies, leaving room for potential increases. The country's emission cuts in its oil and gas sector will rely on "deploying cleaner fossil fuel technologies, developing engineered sinks to store emissions, diversifying the energy mix, and driving operational excellence across existing facilities and infrastructure", according to its climate plan. Qatar is the world's largest LNG producer, with a production capacity of 77mn t/yr, according to QatarEnergy, and its economy is heavily reliant on hydrocarbon revenues. The country's climate plan highlights the country's vulnerability to response measures to mitigate climate change, resulting from its economy's reliance on hydrocarbons. "Qatar is actively working to reduce the socio-economic effects of global climate action," the plan said, adding that it seeks to balance climate goals with national sustainable development. "Despite many efforts and considering its role as a leading producer and exporter of natural gas, Qatar remains significantly vulnerable to climate response measures," it said. Qatar is part of the Arab Group, a negotiating group in UNFCCC climate talks, which is seeking to focus on cutting emissions from fossil fuels, rather than hydrocarbon production and consumption, through increased adoption of carbon capture technologies. The country said it plays "a pivotal role" in supporting other countries' targets by "reliably supplying them with a cleaner alternative to coal and oil and providing a critical backup for intermittent renewables". Qatar's climate plan sees the secure and affordable supply of lower-carbon energy as well as the deployment of carbon capture and storage (CCS) and the management of emissions of energy production as the focus to pursue sustainable development and climate action. The country considers itself to be among the leaders in CCS with its Ras Laffan project, and aims to capture 11mn t/yr of CO2 by 2035. Engineering firm Samsung C&T was recently awarded a contract to build a 4.1mn t/yr CO2 facility to process and store emissions from Qatar's LNG liquefaction plants. Qatar, in its climate plan, highlighted the country's water supply vulnerability to temperature increases and heat. The power and water sector accounts for a large share of the country's emissions. Water scarcity is also responsible for increasing greenhouse gas emissions (GHG) in Bahrain through desalination, although its energy sector remains the main source of emissions, according to the country's new climate plan. The country is heavily reliant on fossil fuels for its energy and revenues, while "limited land availability and competing land-use demands constrain large-scale deployment" for the development of solar energy. Rising demand over the peak summer months this year meant that Bahrain had to import LNG for the first time since commissioning its 800mn ft³/d onshore LNG receiving and regasification terminal in 2020. But it is looking at renewables options and is in talks with Saudi Arabia for a link to a large-scale solar facility. Bahrain said that response measures to climate change "may lead to economic losses that, in turn, hinder Bahrain's ability to pursue effective climate action and achieve broader sustainable development objectives." By Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Indonesia to lift Akasia oil, gas field output capacity

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