A sale and purchase agreement is in place. (Image source: Adobe Stock)

Vantage Drilling International Ltd has created a joint venture entity with TotalEnergies called TEVA Ship Charter LLC

The entity have all definitive agreements executed to acquire the Tungsten Explorer rig, which is currently held under contract for operations in Congo. Once completed, a sale and purchase agreement has been put in place to take over the rig, besides a management agreement that allows Vantage its operation for 10 years with the option to extend for an additional five years.

Offshore drilling collaboration

Ihab Toma, CEO of Vantage Drilling, said, “We are proud to partner with TotalEnergies in this joint venture, marking a significant milestone for both companies. The creation of TEVA and the execution of all definitive agreements reinforce our shared commitment to value creation through collaboration and creative business models in offshore drilling. We look forward to leveraging our expertise to ensure the long-term success of this partnership.”

The policy will ensure local collaboration. (Image source: Adobe Stock)

The National Upstream Local Content Policy now stands official post approval by the government of Namibia 

As Namibia continues to give international-scale discoveries since the last few years, this new policy will be put into place to navigate the high-risk investment zone it is turning into. The region's rapid upstream growth have also triggered its digital advancement with companies such as Baker Hughes and Halliburton entering the market. 

Prioritising local content

Under the supervision of the Ministry of Mines and Energy, the policy will serve in alignment with the country's broader development frameworks, such as the National Development Plan, Harambee Prosperity Plan and Vision 2030, to realise the goal of an industrialised economy that is primarily led by local expertise and resources. 

While ensuring regulatory flexibility for investors, the new policy also mandates operators to submit extensive 'Local Content Plans' in their proposal for exploration and production license acquisition. This implies clarifying the operators' collaboration plans with indigenous workforces and services. 

The phase out of cuts shift from 12 months to 18 months. (Image source: Rystad Energy)

OPEC+ members have extended the voluntary adjustments of 1.65 million bpd announced in April 2023 until the end of December 2026

The organisation has extended the additional voluntary adjustments of 2.2 million bpd announced in November 2023 until the end of March 2025, with shifting the phase out from September  2025 to September 2026
New compensation schedules for overproducing countries will be submitted by the end of December 2024. 

“Oil markets have been anxiously awaiting this OPEC+ meeting since the US election results made clear a Trump 2.0 presidency was on the horizon. Trump’s tariff-forward stance toward China and persisting weak demand provided the group with all of the encouragement needed to extend production cuts until the first quarter of 2025. The overall signal to the market is constructive and will likely prevent any price downsides in the short term. The announcement makes crystal clear that the group is worried about both a potential supply glut and a lack of compliance with production targets among member countries,” said Mukesh Sahdev, global head of commodity markets, Rystad Energy.

Addressing supply glut

The latest OPEC+ announcement hints that compliance among members is a concern. The organisation, however, has maintained that monthly changes can be paused or reversed at any time.

With the latest announcement, the production profile and oil balances clearly indicate an acknowledgment of the emerging supply glut without the extension in 2025.

The phase out of cuts shift from 12 months to 18 months is constructive for the crude balances for 2025, with a swing from average 0.7 million bpd surplus to average 0.3 million bpd deficit.

The confirmation that the UAE’s new baseline (300,000 bpd higher) will only start in April 2025 and will be gradually phased in over an 18-month period establishes the country's firm commitment towards OPEC+.

Rystad believes that the non-OPEC+ supply hasn't posed much of a concern for OPEC+.

Bourbon will utilise its data management system for end-to-end execution. (Image source: Adobe Stock)

Bourbon has been awarded a new fully integrated logistics contract for a major exploration campaign, with first drilling to begin offshore southern Namibia

The first integrated logistics contract for the operator, its scope ranges from freight forwarding and logistics base services to marine services. This involves everything from international shipment and customs clearance of the equipment to arrive at Walvis Bay, all the way from Houston, Singapore and Antwerp. The contract reserves the deployment of three platform supply vessels – Bourbon Diamond, Ruby and Topaz.

Incidentally, Chevron Namibia Exploration Limited had entered Petroleum Exploration License 82 (PEL 82) in May with an 80% working interest and operatorship.

Ambitious project

Spearheading the entire logistics operations from planning to conduct, Bourbon will utilise its data management system, Bourbon Logistics Suite software, which enables all logistics operations to be planned, executed and controlled from end to end. The 7-hectare logistics base is located in Walvis Bay and will employ almost 50 shore-based staff, 96% of whom are Namibians, who will benefit from specialised training, particularly in materials handling.

Nicolas Chateau, managing director of Bourbon Logistics, said, “Bourbon Logistics is mobilised to bring exemplary management of the client's supply chain, with strict adherence to deadlines and constant attention to the highest safety standards. This new contract confirms Bourbon Logistics’ expertise and recognition by major O&G operators to bring increasingly comprehensive services to its clients, in their most ambitious projects.” 

In April, Bourbon Mobility had announced a major investment with Piriou to receive six new crewboats for operation in West Africa, which are due for delivery next year.