Centrifugal BCL compressor. (Image source: Baker Hughes)

Energy technology company, Baker Hughes, has been awarded a contract, to be booked in the third quarter, to supply advanced compression solutions to Saipem for TotalEnergies’ Kaminho Floating Production Storage and Offloading (FPSO) project in Angola

Baker Hughes’ centrifugal BCL compressor and Integrated Compressor Line (ICL) technology were selected because of their capacity to minimise emissions, eliminate routine flaring and reinject associated gas into the reservoir for storage. 

In July, tubular solutions provider Vallourec was onboarded to source 5,000 tonnes of OCTG solutions and associated services for the project.

All-electric project

The all-electric Kaminho project is the first large deepwater development in the Kwanza basin and comprises the conversion of a very large crude carrier (VLCC) to a floating production storage and offloading (FPSO) unit. With final investment decision (FID) on the project reached by TotalEnergies in May this year, production start-up is set for 2028 and is expected to reach 70,000 barrels of oil production a day.

“The all-electric Kaminho FPSO project in Angola is a key example of sustainable energy development whereby the project will provide critical energy supply to the country, leveraging proven technology to lower its overall carbon footprint,” said Alberto Matucci, vice president - gas technology equipment, industrial and energy technology at Baker Hughes. “Baker Hughes is proud to be contributing our vast experience in offshore and our leading low-emission compression technology to support TotalEnergies, Saipem and the Block 20/11 partners on this important project.”

This year, Baker Hughes was also awarded a major gas technology equipment contract in Algeria, further boosting its involvement in critical energy infrastructure projects across multiple geographies.

Petrofac will provide technical authority and discipline engineering support. (Image source: Petrofac)

Petrofac has bagged a new master service agreement (MSA) award from Marathon Oil in Equatorial Guinea

Under the agreement, Petrofac will provide technical authority and discipline engineering support, ensuring operational excellence, integrity and safety. It will support key onshore and offshore assets, including five offshore steel jacket facilities in the Alba Field and the Alba Gas Plant onshore.

This confirms Petrofac's further growth in Equatorial Guinea since April, when the company entered a five-year technical services contract worth US$350mn with GEPetrol on Block B asset. 

Growing interests in Africa

Alex Macdonald, managing director-Europe, Middle East and Africa, for Asset Solutions, said, “This award is testament to our growing reputation in the region as a safe and efficient service provider, delivering value for our clients. Africa is a key focus area for our business - we look forward to building our relationship with Marathon Oil, supporting its assets in Equatorial Guinea.”

Africa is a key focus for Petrofac’s Asset Solutions business, with Equatorial Guinea being the fifth country of interest, after its well-established operations in Ivory Coast, Ghana, and Senegal and Mauritania.

Emissions are set to almost halve by 2050. (Image source: DNV)

DNV has released its 'Energy Transition Outlook', which notes that 2024 will go down as the year of peak energy emissions 

Energy-related emissions are at the cusp of a prolonged period of decline for the first time since the industrial revolution. Emissions are set to almost halve by 2050, but this is a long way short of requirements of the Paris Agreement. The Outlook forecasts the planet will warm by 2.2 °C by end of the century.

The peaking of emissions is largely due to plunging costs of solar and batteries which are accelerating the exit of coal from the energy mix and stunting the growth of oil. Annual solar installations increased 80% last year as it beat coal on cost in many regions. Cheaper batteries, which dropped 14% in cost last year, are also making the 24-hour delivery of solar power and electric vehicles more affordable. The uptake of oil was limited as electrical vehicles sales grew by 50%. In China, where both of these trends were especially pronounced, peak gasoline is now in the past.

China is dominating much of the global action on decarbonisation at present, particularly in the production and export of clean technology. It accounted for 58% of global solar installations and 63% of new electrical vehicle purchases last year. And whilst it remains the world’s largest consumer of coal and emitter of CO2, its dependence on fossil fuels is set to fall rapidly as it continues to install solar and wind. China is the dominating exporter of green technologies although international tariffs are making their goods more expensive in some territories.

“Solar PV and batteries are driving the energy transition, growing even faster than we previously forecasted,” said Remi Eriksen, group president and CEO of DNV. “Emissions peaking is a milestone for humanity. But we must now focus on how quickly emissions decline and use the available tools to accelerate the energy transition. Worryingly, our forecasted decline is very far from the trajectory required to meet the Paris Agreement targets. In particular, the hard-to-electrify sectors need a renewed policy push.”

Striking shifts in energy mix

The success of solar and batteries is not replicated in the hard-to-abate sectors, where essential technologies are scaling slowly. DNV has revised the long-term forecast for hydrogen and its derivatives down by 20% (from 5% to 4% of final energy demand in 2050) since last year. And although DNV has revised up its carbon capture and storage forecast, only 2% of global emissions will be captured by CCS in 2040 and 6% in 2050. A global carbon price would accelerate the uptake of these technologies.

Wind remains an important driver of the energy transition, contributing to 28% of electricity generation by 2050. In the same timeframe, offshore wind will experience 12% annual growth rate although the current headwinds impacting the industry are weighing on growth.

Despite these challenges, the peaking of emissions is a sign that the energy transition is progressing. The energy mix is moving from a roughly 80/20 mix in favour of fossil fuels today, to one which is split equally between fossil and non-fossil fuels by 2050. In the same timeframe, electricity use will double, which is also at the driver of energy demand only increasing 10%.

“There is a growing mismatch between short term geopolitical and economic priorities versus the need to accelerate the energy transition. There is a compelling green dividend on offer which should give policymakers the courage to not only double down on renewable technologies, but to tackle the expensive and difficult hard-to-electrify sectors with firm resolve,” added Eriksen

The Outlook also examines the impact of artificial intelligence on the energy transition. AI will have a profound impact on many aspects of the energy system, particularly for the transmission and distribution of power. And although data points are currently sparse, DNV does not forecast that the energy footprint of AI will alter the overall direction of the transition. It will account for 2% of electricity demand by 2050.

*CO2 emissions from the combustion of coal, oil and gas

Springfield E&P partners with NOL’s Deepsea Bollsta rig to appraise the Afina-1x well, advancing Ghana's deepwater oil production. (Image source: Adobe Stock)

Springfield E&P has announced its engagement of the Deepsea Bollsta rig, operated by Northern Ocean Limited (NOL), to conduct the appraisal of the Afina-1x well in Ghana’s deep offshore block, WCTP-2 

This initiative, in collaboration with GNPC and GNPC Explorco, demonstrates Springfield's dedication to advancing oil production in Ghana. The focus is on completing the unitisation process for the Afina-Sankofa fields, which aims to deliver substantial benefits to the Ghanaian government and all involved stakeholders.

The well testing using the Deepsea Bollsta rig is set to begin in October. Numerous reputable local and international service providers have been contracted to deliver support services for the operations.

Springfield's CEO, Kevin Okyere, remarked, “I am hoping that our tenacity and persistence will inspire Ghanaians and the youth across Africa to know that they can all dare to dream and achieve anything they want.”

On July 8th, the International Court of Arbitration mandated that Springfield undertake further work to finalize the unitisation process. In response, Springfield promptly secured the necessary rig and technical resources to proceed with the appraisal and testing of the Afina-1x well. The company emphasises its commitment to respecting judicial decisions, whether national or international.

Springfield, alongside GNPC and GNPC-Explorco, is eager to collaborate with Northern Ocean on this landmark drilling operation, marking the first time an independent African company will operate in deep water.

The successful execution of this project will position Springfield as the first independent African producer operating in deep water. Northern Ocean’s strong track record, efficiency, and expertise made them an ideal partner, allowing both companies to organise and initiate this drilling campaign in record time. Springfield is optimistic about the potential of a lasting partnership that brings substantial benefits to all stakeholders.

Arne Jacobsen, CEO of NOL, stated, “We are excited to announce this strategic alliance agreement with Springfield, which is an important step in the company’s plan to build a solid order backlog. In addition, this alliance creates the foundation for NOL and Springfield to work as partners to deliver first-in-class operation with our tier 1 HE rigs. Springfield is an important operator in Ghana, and we are eager to build a long-term relationship with this esteemed company.”