Top stories today:
ExxonMobil plans to cut nearly 400 jobs in Texas.
OMV Wins $243 Million Arbitral Award vs Gazprom over Undelivered Gas
European oil giants commit $500 million to help boost access to energy
Nigeria Oil Production Reaches 1.8 Million Barrels a Day
ExxonMobil plans to cut nearly 400 jobs in Texas
ExxonMobil is reducing its workforce in Texas by approximately 400 positions following its acquisition of Pioneer Natural Resources. The company plans to eliminate 376 jobs in Irving and 18 in Midland, while maintaining its commitment to retaining Pioneer's skilled employees. According to a Worker Adjustment and Retraining Notification letter, the job cuts will be phased out over three years: 110 employees will be released by the end of 2024, 178 employees will be affected in 2025, and the remaining 100 job cuts are scheduled for 2026. Despite offering jobs to around 1,900 Pioneer employees, most of whom accepted, ExxonMobil is still downsizing. The company recently sold its Permian Basin conventional oil assets to Hilcorp Energy for about $1 billion. In its third-quarter financial report, ExxonMobil reported a 4.4% decrease in earnings compared to the previous year.
OMV Wins $243 Million Arbitral Award vs Gazprom over Undelivered Gas
OMV, an Austrian energy company, won a major legal victory against Gazprom, Russia's gas supplier. The international arbitration awarded OMV €230 million in damages due to irregular gas deliveries that stopped in September 2022. Despite the potential strain on their business relationship, OMV has prepared for potential supply disruptions by diversifying its gas sources. The company now obtains gas from Norway and has alternative pipeline capacities, with its Austrian gas storage currently over 90% full. This arbitration follows similar legal actions by other European energy companies seeking compensation for interrupted Russian gas supplies. OMV remains confident it can meet all customer gas volume commitments, aligning with the European Union's goal of reducing Russian fossil fuel imports by 2027.
European oil giants commit $500 million to help boost access to energy
Four major European oil companies—BP, Equinor, Shell, and TotalEnergies—are investing $500 million to improve energy access in developing regions. The joint investment aims to support communities in Sub-Saharan Africa, South, and Southeast Asia by providing electricity and better cooking solutions. Their project will focus on renewable technologies like solar home systems, mini-grids, clean cooking methods, and energy storage. This commitment supports the United Nations' Sustainable Development Goal 7, which seeks to ensure affordable and reliable energy for everyone. A global private equity firm will manage the investment. Despite recent shifts back to traditional oil and gas operations, these companies express a continued commitment to supporting energy transition efforts and helping underserved communities gain modern energy resources.
Nigeria Oil Production Reaches 1.8 Million Barrels a Day
Nigeria's national oil and gas company, NNPC, has increased hydrocarbon production to 1.8 million barrels per day, with ambitious plans to reach two million barrels daily by year's end. The Production War Room initiative has driven this growth, improving production from 1.43 million barrels in June. Despite an exodus of major energy companies, NNPC remains optimistic about expanding production, with board chair Pius Akinyelure targeting three million barrels per day. The company has launched several upstream projects in the Niger Delta, including OML 13, Madu field, and Awoba field. Additionally, NNPC signed a significant ten-year gas supply agreement with Dangote refinery and completed a strategic license conversion with Chevron, leveraging the more investor-friendly Petroleum Industry Act.