The Baleine field is Eni's first development in the country. (Image source: Adobe Stock)

Eni has agreed to sell a 10% stake in the Baleine Project, Cote d’Ivoire, to SOCAR, the State Oil Company of the Republic of Azerbaijan

The Baleine offshore development is operated by Eni (47.25%), with Vitol and Petroci having stakes of 30% and 22.75% respectively.

The transaction aligns with Eni's strategy of optimising its upstream portfolio by accelerating the monetisation of exploration discoveries through the divestment of equity stakes, a model known as the "dual exploration model."

The agreement also reflects the broader collaboration between Eni and SOCAR. In 2024, the companies signed three Memoranda of Understanding (MoUs) focused on energy security - aiming to expand cooperation on hydrocarbon exploration and production - as well as greenhouse gas emissions reduction and the biofuel production chain.

Eni has been present in Cote d’Ivoire since 2015. The giant Baleine deepwater field, discovered by Eni in 2021, is Eni’s first development in the country, and the first net-zero emission development in Africa, according to the company. The largest discovery in the country’s history, it achieved production in record time, in 2023. Currently, Baleine produces over 62,000 barrels of oil and more than 75 million cubic feet of gas per day from Phases 1 and 2. With the launch of Phase 3, production is expected to rise to 150,000 barrels of oil and 200 million cubic feet of gas per day, positioning Baleine, the country’s main offshore development, as a cornerstone in meeting the country's domestic energy needs.

The LNG market faces a potential oversupply. (Image source: Adobe Stock)

The gas and LNG markets face potential oversupply thanks to record FID and demand uncertainty, according to energy consultancy Wood Mackenzie, which identifies five key global gas and LNG themes for 2026:

LNG FID momentum to moderate despite continued project progress

2025 was a record year for final investment decisions, with nine projects totaling 72 mmtpa moving ahead. Three smaller floating LNG projects, two in Argentina and one in Mozambique, advanced, with CP2

Phase 2, Delfin FLNG 1 and Cheniere's Sabine Pass Stage 5 "probable" FID for 2026, supported by strong contracting and cost advantages.

However, with 225 mmtpa of LNG supply currently under construction, the expectation is for lower LNG prices and rising EPC costs. Several projects face delays from inflated construction costs, supply chain constraints and evolving financing conditions. Competition for customers between pre-FID projects and post-FID players is likely to increase. FIDs for well positioned projects, including LNG Canda and

Qatar’s North Field West, may slip into 2027. The outlook for FIDs is expected to moderate in 2026.

Prediction: 4-5 projects take FID in 2026

Asian LNG demand expected to rebound after sharp 2025 contraction

Asian LNG demand contracted by more than 12 Mt year-on-year (4.5%), with China declining by 11 Mt due to a mild winter, high LNG prices and US trade tariffs.

Supply growth of nearly 30 Mt is likely to drive spot prices below oil price parity, encouraging more spot procurement from emerging markets.

China will be the market to watch. Gas demand should grow by 5% on infrastructure projects and real estate recovery. With stable domestic production and flat pipeline imports, LNG will fill the gap, increasing by around 6 Mt but still below 2024 import levels. New gas-fired power stations and regasification capacity will contribute to increased demand across Taiwan, Bangladesh and Vietnam. Weather remains a wild card.

Firmer Asian demand will prove increasingly critical to absorb the wave of new LNG supply.

Prediction: Asian LNG demand to increase by 14 Mt (+5%) in 2026

Russia-Ukraine peace deal could reshape European gas and global LNG balances

The prospect of a US-brokered peace deal in Ukraine fuelled sharp gas price swings in 2025. Should a peace agreement be announced, the most likely market impact would be the lifting of sanctions on Arctic LNG-2 and Portovaya, which could add up to 10 mmtpa to a global LNG market already poised to increase by close to 30 Mt in 2026.

The EU agreed to phase out Russian LNG by 2027 and pipeline gas by 2028. Russian supply under short-term contracts is expected to end from April 2026 for LNG and June 2026 for pipeline flows. The immediate 2026 market impact would be limited, though the EU's resolve may be tested if the ban becomes a peace settlement bargaining point.

Prediction: The EU moves ahead with ban on Russian imports

Henry Hub to trade above US$4/mmbtu as US gas market tightens structurally

Colder than average temperatures briefly drove Henry Hub futures as high as $5.50/mmbtu in December 2025. The US gas market is becoming structurally tighter. LNG exports have increased 17% compared to the same period last year.

LNG export capacity expansion will require incremental feedgas of 2.7 bcfd, with data centres and other sectors adding 3.4 bcfd total in 2026, equivalent to 3%.

As usual, weather dynamics will be key for where prices settle in the winter. Beyond that, the pace and magnitude of price correction will depend on how quickly suppliers respond to tightening fundamentals.

Higher Henry Hub prices longer term will be necessary to promote growth.

Prediction: Henry Hub will average US$4/mmbtu in 2026

EU Methane Regulation and CSDDD face industry criticism over compliance challenges

The EU Methane Regulation (MER) and the Corporate Sustainability Due Diligence Directive (CSDDD) have faced strong criticism from the gas and LNG industries in 2025, especially from major global exporters.

Companies support MER objectives but say compliance difficulties are delaying new contracts and risk disrupting imports as Europe ends Russian reliance.

The CSDDD has already been scaled back by EU officials. Yet critics point out that the EU is imposing obligations on companies outside its jurisdiction, a major sticking point. The US and Qatar warned that the rules could threaten their ability to supply LNG to the bloc.

Prediction: The EU is likely to proceed with both regulations, but further watering down and additional practical compliance measures should be expected

"The gas and LNG industry is navigating a complex transition as abundant new supply meets questions about demand growth and regulatory risks," said Massimo Di Odoardo, vice president, Gas and LNG Research. "The structural tightening of the US gas market, combined with Europe's push to end Russian imports while implementing stricter methane rules, creates both opportunity and risk. How Asia responds to lower prices will be critical to absorbing the supply wave ahead."

Panora achieved average net production was 10,263 bopd for the full year. (Image source: Adobe Stock)

Panoro Energy, the Africa-focused exploration and production company, has achieved record production in 2025

In an operational and financial update in advance of its full year 2025 results, Julien Balkany, executive chairman of Panoro, commented, “Our average net production was 10,263 bopd for the full year, and is a new record high for Panoro. Our crude oil liftings of around 3.1 million barrels were in line with previously communicated expectations.”

Of the 10,263 bopd, 5,813 bopd came from Gabon, 2,919 bopd from Equatorial Guinea and 1,530 bopd from Tunisia.

“Looking ahead, we enter 2026 with significant exciting growth projects underway. As planned, we will resume drilling in Gabon with four new production wells at MaBoMo Phase 2 which we expect will increase gross production at Dussafu to the nameplate capacity of around 40,000 bopd when all wells are onstream. Once processed and analysed the new state-of-the-art seismic data we have recently acquired covering the Niosi, Guduma and Dussafu blocks will allow us to confirm future high-impact drilling targets and further unlock the considerable upside potential of those blocks.

"In Equatorial Guinea we have high-graded the Estrella discovery on Block EG-23 as a potential fast-track appraisal and development project that could be tied back to existing infrastructure, and have an extensive inventory of additional prospects under evaluation.”

Numerous ongoing productive and asset integrity projects will continue in Equatorial Guinea throughout 2026 and contribute to field life extension.

Production has remained stable at the TPS Assets in Tunisia where Panoro holds 49%, with ongoing workovers and upcoming optimisation campaigns expected to positively impact production

The company distributed a total of NOK 411mn (US$41.7mn) to shareholders in the calendar year, with quarterly cash distributions amounting to NOK 320mn (US$32.5mn) complemented with NOK 91mn (US$9.3mn) through share buybacks.

“With healthy cash position at 2025 year-end of approximately US$78mn, we continue to be well positioned to deliver on our organic and external growth strategy coupled with our shareholder returns policy in order to maximise value for all our stakeholders,” Balkany concluded.

The project will combine the recognised OBN expertise of both parties to deliver an unparalleled subsurface dataset for Egypt and international exploration partners. (Image source: Adobe Stock))

Viridien and SLB have entered into an agreement with the Egyptian Natural Gas Holding Company (EGAS) to launch a major multi-client ocean bottom node (OBN) seismic acquisition and imaging programme in Egypt’s Eastern Mediterranean offshore

The largest project of its kind in the region, it will combine the recognised OBN expertise of both parties to deliver an unparalleled subsurface dataset for Egypt and international exploration partners, which will be available through a multi-client model. Data acquisition is scheduled to begin in the first quarter of 2026.

The project will give explorers and investors a clearer understanding of the region’s complex subsurface and help them identify new opportunities for exploration and enhanced production, as the country looks to boost production and decrease its reliance on imported fuel. The gpvernment is actively addressing policies to support an encouraging work environment for global investors,with a view to accelerating oil exploration and production rates, and there have been some encouraging new discoveries recently.

Mahmoud Abdel Hamid, chairman of EGAS, said: “The Egyptian Eastern Mediterranean has great potential for development but features some of the most challenging environments for seismic imaging owing to the complex faulting and the Messinian evaporite layer that masks deep reservoirs formed from complex channel sand bodies. We are pleased to work with our partners, Viridien and SLB, who have decades of specialized imaging expertise in the region and will apply their cutting-edge technologies to deliver the clearest insight into the subsurface to help operators better evaluate and prioritize opportunities.”

Dechun Lin, head of Earth Data, Viridien, said: “This agreement with SLB and EGAS marks a significant milestone for Viridien, giving new momentum to our commitment to Egypt as a key partner with over 30 years of in-country operating experience. Expanding our multi-client data library into the Egyptian Eastern Mediterranean with our advanced OBN imaging technologies will help showcase Egypt’s subsurface opportunities to the world.”