Apache strike could close UK North Sea FPS: Update

: Crude oil, Natural gas
26/10/19

Adds Apache statement in paragraph 5

Workers on seven UK North Sea oil and gas platforms will begin a 24-hour strike at 06:00 on 21 October, threatening the entire Forties Pipeline System (FPS), the Unite union said today.

The strike over a pay dispute, which has been threatened since September, involves around 160 workers on US independent Apache Corporation's Forties Alpha, Bravo, Charlie, Delta and Echo platforms and on the Beryl Alpha and Bravo facilities.

The Beryl and Forties fields produced just over 30,000 b/d of oil equivalent (boe/d) in 2025.

Unite said that if the strike is not averted the disruption could close the Charlie platform, through which all the Forties production moves. It could also result in a lack of pressure, which would close the FPS.

Apache said it plans to maintain "experienced personnel" on Forties Charlie to operate the platform and support third-party production, even if all five of its Forties platforms stopped output.

"Any resulting reduction in pipeline pressure if Apache production was suspended would be comparable to that experienced during a routine maintenance outage," it said.

Unite estimates more than 80 offshore fields, along with the St Fergus gas plant, flow through pipelines into the Ineos-operated Forties system.

Argus has approached Apache for comment. Previously, the company said it did not anticipate that industrial action would affect other producers' ability to continue operating through the FPS.

By Jon Mainwaring

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News

26/10/19

Independence costs seen as high in Alberta referendum

Calgary, 19 October (Argus) — Albertans are voting on a non-binding proposal to break away from Canada or remain within it. Polls show a large majority is in favour of staying, suggesting an outcome that is likely to be welcomed by the province's booming oil sands sector. The final day to vote on the issue and nine other questions relating to immigration and changes to Canada's constitution is 19 October. About 22pc of Albertans would like the province to separate, an 8 October poll by analytics firm Leger showed. But about 70pc of respondents are in favour of remaining a Canadian province, up from 65pc in August. More than half of those surveyed said continued talk of separation will have negative economic consequences for Canada's largest oil and gas-producing province, where many energy companies are headquartered. Creating a new country could cost as much as C$170bn ($120bn) in the first five years after separation, the University of Calgary says. "There is no windfall waiting on the other side, only a bill Albertan businesses and communities would have to pay," the Calgary Chamber of Commerce says. The referendum is non-binding but would signal to Edmonton whether it should start the legal process under the Canadian constitution to hold a binding referendum on separation. The warnings over the potential cost of such a move come as higher global crude prices and tightness in refined products markets are raising leading oil sands producers' cash flows to historic highs, according to analysis by Canada's largest bank, RBC Capital Markets. "Canada's majors are printing money and we do not recall ever having seen this degree of collective balance sheet strength," RBC said on 13 October. It attributes this to elevated oil prices and "unprecedented" downstream conditions linked to the US-Iran and Russia-Ukraine wars. Canada's four largest oil sands companies — Cenovus, Canadian Natural Resources, Suncor and Imperial Oil — are expected to have achieved combined free cash flow of C$13.5bn in the third quarter, RBC said. Canadian producers faced a widening heavy sour discount to the US WTI crude benchmark in the third quarter, but higher WTI prices — which make up the bulk of the settled price for most Canadian operators — more than compensated for that wider gap, according to Argus data. Rising shipping rates and tight pipeline capacity limited arbitrage opportunities to Asia-Pacific, pushing down prices for Alberta's Western Canadian Select (WCS) in July-September compared with a year earlier. Canada's heavy sour benchmark at Hardisty, Alberta, averaged a $13.94/bl discount to the WTI calendar month average in the third quarter, widening to close the October trade window at $16.50/bl on 17 August. This compares with a narrower $10.40/bl discount across the third quarter of 2025. The short and the long of it Traders determine the differential for WCS during a roughly two-week trade cycle in the first half of the month prior to delivery. Market participants must then wait for the final WTI settlement in the month of delivery to determine the entire outright price. Cenovus estimates a $1/bl widening in the WCS discount cuts C$80mn from its cash flow, but a $1/bl increase in WTI would by far offset that with a C$160mn boost. WTI at Cushing, Oklahoma, settled at an average of $86/bl in the third quarter, up by $21/bl from $65/bl a year earlier. This more than compensated for a sliding WCS differential, with the resulting outright price coming in at near $72/bl, up from $55/bl a year earlier. And future prospects for Canada's oil sands also appear bright. "Oil-weighted producers are the best positioned we have seen in decades," RBC said, referencing increased optimism over the proposed 1mn b/d Pacific Link pipeline and associated Oil Sands Alliance's Pathways carbon capture project. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

News

Venezuela turns to getting its house in order

26/10/19

News

26/10/19

Venezuela turns to getting its house in order

Houston, 19 October (Argus) — Growing Venezuela's nascent increase in crude production will take more time and billions of dollars, but early replumbing of its energy apparatus has begun. Venezuelan crude output has ticked up by about 200,000 b/d since January to 1.2mn b/d in September, with 1mn b/d exported regularly and roughly half of that often headed to refineries on the US Gulf coast. But the moderate boost since the US lifted sanctions after its 3 January seizure of former Venezuelan leader Nicolas Maduro is starting to slow, and more output will take fresh investment. Venezuela's government says it plans to sign 44 agreements in oil, gas or electricity by December, in addition to the 61 it has already signed this year. A third stage of talks with an opposition-led alternate assembly that US secretary of state Marco Rubio says are key to democratic elections also resumed last week. The US lifted sanctions on acting assembly head Jorge Rodriguez — brother to interim president Delcy Rodriguez — just before the talks restarted. Legislation on issues such as pollution from tankers continues to wind through the assembly as well. And the national assembly is readying a final debate on electricity law reforms meant to end power outages that trouble oil production and hurt the population. But Venezuela is still "a long way" from where it needs to be to draw more investment, ConocoPhillips chief executive Ryan Lance told the Energy Intelligence Forum in London this month. "We're not interested in putting... [millions of] dollars of investment back into the country," he says. Venezuela still owes ConocoPhillips $12bn from the expropriation of assets in 2007-08. And Caracas' recent hydrocarbon law reforms and new contract structures do not provide adequate investor certainty, Lance says, adding that he has no such concerns about the company's recent upstream deals in Iraq. Chevron was the only US company to stay in Venezuela after Caracas' expropriations and it now faces a different calculation. "We made the decision to stay and it put us in a position where now... we're advantaged," Chevron chief executive Mike Wirth said at the same forum. Chevron produces 300,000 b/d of crude in three joint ventures with state-run PdV and aims to double that in five years with $7bn. Expanding output in other areas lacking infrastructure may cost more, Wirth said. But several smaller and newer companies are placing their bets on Venezuela, despite the challenges. Two drilling rigs have arrived in Venezuela to support Barbados-based North America Blue Energy Partners' plans to grow its 200,000 b/d of production by fivefold under a US-brokered deal. Where's the beef? Brazil's Fluxus Energy aims to increase output in its Petrororaima extra-heavy crude joint venture with PdV by fourfold to 100,000 b/d in the next three years, a company source says. Brazilian brothers Wesley and Joesley Batista of global food processor and meatpacker JBS are the owners. And Californian independent Pacific Coast Energy plans to double output in its heavy crude Venezuelan fields to 40,000 b/d by the end of 2027 under a recently signed deal with PdV. Even cryptocurrency entrepreneurs are entering Venezuela's oil patch, with Coinbase cofounder Fred Ehrsam also cofounding energy firm Primavera, which has signed a deal with PdV. It has hired former staff from Chevron and US independent Occidental to "rapidly scale crude oil development in its fields", Primavera says. Critical uncertainties remain, including if Venezuela will regain control of its biggest international asset, US refiner Citgo. It is in limbo in a US court-ordered auction process . And despite the rush of interest from upstream newcomers, "you're going to have to see more companies like [Chevron] come in" for Venezuela to return to its past peak of 3mn b/d, Wirth said. By Carla Bass Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

News

Asian spot LNG prices hit almost four-year high in Oct

26/10/19

News

26/10/19

Asian spot LNG prices hit almost four-year high in Oct

Singapore, 19 October (Argus) — The ANEA, the Argus assessment for spot LNG deliveries to northeast Asia, rose over the month to hit an almost four-year high on escalating tensions between the US and Iran. The front-half month ANEA rose to $29.97/mn Btu on 19 October, up by $1.04/mn Btu from a day earlier and $2.38/mn Btu from a week earlier. The front-half month ANEA was last higher at $30.715/mn Btu on 21 December 2022 at the peak of the Russia-Ukraine war. Asian spot LNG prices were likely mostly driven by strength in the TTF, Europe's benchmark gas hub. The Dutch TTF front-month price opened at €88.85/MWh ($99.73/MWh) on 19 October and remained largely rangebound around €88-89/MWh over the early Asian trading session. The contract price peaked briefly at €89.15/MWh at 1:50am GMT (09:50 Singapore time) and dipped to €88.175/MWh at 5:30am GMT (13:30 Singapore time). Spot LNG prices have likely risen on the escalation of attacks in the strait of Hormuz over the past weeks. At least 12 vessels were attacked in the strait of Hormuz in the last week but many attacks are not being reported, according to the UK Maritime Trade Operations (UKMTO) Centre on 16 October. The recent increase in attacks have come after the 159,800m³ Maran Gas Mystras was rumoured to be struck in the strait on 5 October. This has again fuelled concerns about Middle East LNG supply flows, raising concerns about LNG supply disruptions once again because LNG carriers are seemingly also at a higher risk of being attacked. About 20 vessels managed to load and exit the strait of Hormuz in September, according to data from Kpler, which translates to about four to five cargoes weekly coming through from the Middle East. But this has since dropped to about seven vessels so far this month, according to data from Kpler as of 19 October, which translates to about two to three cargoes weekly from the Middle East. Market participants are increasingly worried about transits through the strait of Hormuz and the sufficiency of LNG supplies over the upcoming peak winter season. Northeast Asia's demand has been relatively muted on expectations of a warmer-than-usual winter because of the effects of El Niño, but market participants remain concerned about the relatively higher demand from the Atlantic basin. Europe's inventories currently stands at 74.47pc on 18 October, AGSI data show. The pace of injections has slowed, rising by only 0.79 percentage points from 73.68pc on 11 October. This compares with a 1.27 percentage point increase on 11 October from 72.41pc on 4 October, and a 1.52 percentage point rise on 4 October from 70.89pc on 27 September. The slower pace of injections could possibly be attributed to higher demand for gas as colder weather across the continent kicked in, traders said. But this has also sparked concerns that the region may need to seek more spot cargoes in the upcoming weeks, potentially intensifying inter-basin competition for cargoes if winter demand across northeast Asia also materialises. By Joey Chan Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

News

Australia’s Amplitude hits record gas output in Jul-Sep

26/10/19

News

26/10/19

Australia’s Amplitude hits record gas output in Jul-Sep

Sydney, 19 October (Argus) — Australian independent Amplitude Energy produced record gas, oil and condensate in July-September due to higher production at its Orbost processing plant, Cooper Basin and Otway Basin projects. Amplitude produced 7.5PJ of gas, oil and condensate in July-September, up by 12pc on the year, the company said in its latest quarterly report today ( see table ). This was the firm's highest quarterly production rate on record, it said. The firm's Orbost processing plant in the Gippsland Basin operated above its original nameplate capacity of 68 TJ/d on 95pc of days in July-September, and above 70 TJ/d on 75pc of days, Amplitude said. The firm's Gippsland Basin operations produced 6.6PJ of gas in July-September, up by 11pc on the quarter. Oil production at the firm's Cooper Basin project rose by 3pc on the quarter to 20,400 bl (222 b/d), supported by optimisation projects and contributions from three new wells at Callawonga, Amplitude said. Gas production at the firm's Otway Basin operations offshore Victoria state rose by 9pc on the quarter to 0.78 PJ in July-September, partly on higher production from the restarted Casino-4 well. The firm reached a final investment decision (FID) for its east coast supply project (ECSP) in the Otway basin in September, with first gas targeted for 2028. The project, a 50:50 joint venture with Israel's OG Energy, aims to boost production through an existing plant by up to 90 TJ/d (2.4mn m³/d). Subject to the completion of Amplitude's 50pc acquisition of the Artisan gas field , the ECSP development will include the discovered Annie, Juliet and Artisan fields. It will also include Nestor upon exploration success, Amplitude said. The Artisan acquisition is targeted for completion in early 2027. Amplitude completed drilling at the Juliet-1 gas well in September, the firm said. Work on the well's reserve estimates will be undertaken over coming months. The company's drilling operations at the Annie-2 well are expected to be completed by mid-November, subject to operational conditions. The ECSP joint venture has also agreed to sanction drilling of the Nestor exploration prospect, following completion of the Annie-2 development well. Amplitude is also progressing its project to restart production from the Patricia Baleen field in the Gippsland Basin through existing wells and pipeline connection to the Orbost processing plant. The project is targeting FID for the project in early 2027. By Emma Partis Amplitude Energy results Jul-Sep '26 Jul-Sep '25 y-o-y ± % Production (PJe) 7.5 6.7 12 Sales volume (PJe) 7.5 6.8 10 Average gas price (A$GJ) 10.7 10.2 5 Sales revenue (A$mn) 83.3 69.9 19 Source: Amplitude Energy Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

News

Joint presidencies a first for Cop 31

26/10/16

News

26/10/16

Joint presidencies a first for Cop 31

Mitigation, adaptation and climate finance may be areas the two presidents push for agreement on, writes Georgia Gratton London, 16 October (Argus) — Turkey will host the UN Cop 31 climate summit in November, but Australia will hold the role of presidency for the negotiations. This dual presidency setup is a first for Cop conferences and it is not yet clear how it will affect the outcome. The Cop host rotates among five UN regional groups and is selected by the other countries in that group. Turkey and Australia were both determined to host this year's talks. The countries reached a compromise that will see Turkey host Cop 31 in Antalya, with Australian energy minister Chris Bowen overseeing the formal negotiations between nearly 200 country delegations. The Turkish presidency has outlined its key concerns, including a 35x35 goal — to increase the share of electricity in final worldwide energy demand to 35pc by 2035. Part of the Australian presidency's priority list will be ensuring that Pacific islands — low-lying and intensely vulnerable to climate change — have a voice at the summit. Bowen and Murat Kurum — Turkey's environment minister and Cop 31 president — will "take forward a presidency-led decision… which captures the global moment and calls for action", Bowen said earlier this month. This could be a reference to a cover decision, which offers an opportunity for countries to set out wider, overarching goals, not always connected to specific agenda items, and which often work to a longer timeframe a decade or more ahead. "We don't want to negotiate a lengthy political statement, but a focused and concrete response to the challenges and opportunities of our time," Bowen said. The decision "could recognise" the inevitable overshoot of the Paris Agreement goal to limit the global rise in temperatures to 1.5°C above pre-industrial levels, Bowen said. He also floated the inclusion of "high-impact solutions for mitigation and adaptation" — cutting emissions and adjusting to climate change — and reaffirming existing climate finance pledges. These are areas in which it has been difficult to form consensus at recent Cops. Background politics As always, geopolitics will loom over this year's Cop, and wider Cop goals must compete with countries' individual priorities. Many will push for faster decarbonisation for energy security, cost and emissions reduction reasons. But other countries will use the same reasons to warn against a hastened transition. Turkey and Australia are dependent on fossil fuels, although both were represented at the International Conference on Transitioning Away from Fossil Fuels in April. Turkey's energy supply was mostly met by fossil fuels in 2025, at 81.6pc, data from energy watchdog the IEA show. But solar, wind, hydropower and other renewables made up 46.5pc of the country's domestic energy production last year, according to the IEA, lending some weight to the presidency's 35x35 electrification goal. Australia is the world's second-largest coal exporter but the country's highest court this month upheld a ruling that blocked a coal mine expansion and could be leveraged to restrict further coal mine approvals. Australia typically aligns with other developed countries at Cop summits, but Turkey is rare in that it is not part of a negotiating bloc. This "could work in its favour", climate think-tank E3G senior researcher Oyku Senlen tells Argus. "By virtue of its geopolitical position, Turkey is accustomed to flexible diplomacy. It has experience in gauging the expectations of different actors and finding common ground," Senlen says. Turkey will oversee the world leaders' summit, while Australia is likely to chair plenaries charting the progress of negotiations. The countries have supported one another's agendas and Bowen affirmed at a pre-Cop event that the countries are united. "We are working hand in glove, for the parties together, for a very strong outcome," he said. Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more