Petrobras acquires a 10% stake in South Africa’s Deep Western Orange Basin block, aligning with its strategy to explore new oil and gas frontiers. (Image source: Adobe Stock)

Petrobras has secured a stake in the Deep Western Orange Basin (DWOB) block after successfully participating in a competitive bidding process organised by TotalEnergies

Situated in deep waters of the Orange Basin, the DWOB block has seen recent major discoveries by TotalEnergies, Shell, and Galp.

Following the acquisition, Petrobras will hold a 10% share in the DWOB block. The consortium overseeing the block will be composed of TotalEnergies, as the operator (40%), QatarEnergy (30%), Sezigyn Pty. (20%), and Petrobras (10%).

This move aligns with Petrobras' strategy to diversify its exploration portfolio, focusing on value creation. It supports the company's long-term objective of replenishing oil and gas reserves by exploring new frontiers in both Brazil and international markets, through strategic partnerships.

The acquisition adheres to all of Petrobras' internal governance and procedural standards, in accordance with its 2024-2028+ strategic plan, and is subject to local regulatory approval.

Rystad Energy highlights increasing breakeven costs in oil projects. (Image source: Adobe Stock)

According to Rystad Energy, the cost of developing new upstream oil projects continues to rise due to ongoing inflationary pressures and supply chain disruptions

Their latest research reveals that the average breakeven cost for non-OPEC oil projects has increased to US$47 per barrel of Brent crude, marking a 5% rise in just the past year. Despite these growing expenses, breakeven prices remain lower than current oil prices.

Offshore deepwater and tight oil projects are still the most economical new supply sources, while oil sands remain the costliest. By evaluating breakeven costs, Rystad Energy estimates future crude oil supply based on the economic viability of different sources. Despite the increasing costs, the research projects that more supply will likely emerge by 2030, primarily driven by low-cost OPEC production and the region's significant resource potential. The estimated equilibrium oil price for meeting a 2030 demand of 105 million barrels per day is approximately US$55 per barrel.

The study also offers a detailed global cost-of-supply analysis, breaking down remaining liquids resources into producing and non-producing fields, with the latter divided into various supply segment categories. Onshore production in the Middle East is identified as the least expensive source of new oil, with an average breakeven price of $27 per barrel and substantial resource potential. Offshore shelf follows at US$37 per barrel, offshore deepwater at US$43, and North American shale at $45. In contrast, oil sands production has an average breakeven of US$57 per barrel, with some projects reaching up to US$75.

"Rising breakeven prices reflect the increasing cost pressures on the upstream industry. This challenges the economic feasibility of some new projects, but certain segments, including offshore and tight oil, continue to offer competitive costs, ensuring supply can still be brought online to meet future demand. Managing these cost increases will be critical to sustaining long-term production growth,”remarked Espen Erlingsen, head of upstream research at Rystad Energy.

McDermott, Saipem, and China Petroleum Engineering win FEED contract for Mozambique’s Rovuma LNG project, advancing energy and economic growth in Africa. (Image source: Adobe Stock)

McDermott, in consortium with Saipem and China Petroleum Engineering and Construction Corporation, has been awarded the front-end engineering design (FEED) contract for the Rovuma LNG Phase 1 Project in Mozambique

The joint venture is between ExxonMobil Development Africa B.V., Eni S.p.A., and CNODC Dutch Cooperatief U.A.

The Rovuma LNG Phase 1 project marks a significant milestone for Mozambique, providing a considerable opportunity for economic growth. The project involves the liquefaction and export of natural gas from the Offshore Area 4 fields located off the Afungi Peninsula in Mozambique.

“LNG helps shape an entirely new era of energy solutions and McDermott plays a significant role in this global shift with more than 60 years of LNG experience,” said Rob Shaul, senior vice-president of McDermott's Low Carbon Solutions business. “McDermott is well established in Mozambique and can apply this knowledge and experience to continue the country's industrial, social and economic development.”

The FEED contract’s scope includes the modular design of a greenfield LNG production facility in Afungi, along with all related gas pre-treatment units, utilities, and offsite systems needed to support LNG production. The facility will have a total production capacity of 18 million tons per annum (MTPA). The contract also covers the engineering, procurement, and construction proposal.

The past year has been highly productive for Tlou. (Image source: Adobe Stock)

Tlou Energy Limited has announced the company's annual report and consolidated financial statements for the year ended 30 June 2024

The transmission line connecting Tlou's Lesedi project directly to both Botswana's power grid and the Southern African Power Pool is effectively complete.

Connection to Serowe substation achieved - Tlou's power project is no longer isolated from primary Botswana electricity market.

The Lesedi substation is about 75% complete and due for completion later this year.

Lesedi production wells continue to produce gas with a focus now on stabilising surging gas flows.

Advanced discussions are being held with a Tier 1 generator supplier.

Additional drilling has been planned to provide sufficient gas for the first megawatt of power.

The power station is anticipated to be commissioned in 2025.

The Company is waiting on the funding to complete grid connection, drill additional wells and commence sale of electricity.

Tlou's managing director, Tony Gilby said, "The past year has been highly productive. We focused on development of the upstream process including substations, transmission line and generation, bringing us closer to our target of grid connection.

"The coming months we will refocus on downstream production, including drilling and dewatering wells aimed at providing sustained gas flow rates ahead of first power generation. Selling electricity into the grid can serve as a catalyst for significant near-term growth, unlocking the potential for further development and expansion.

"I would like to extend my thanks to everyone who has contributed to our progress, and especially to our shareholders, whose support has been instrumental in reaching this stage."