Petroly - 30 September 2023

Qatar Secures Long-Term Crude Supply Deal with Shell, Bolstering Strategic Partnership

• QatarEnergy signs its first five-year crude oil supply agreement with Shell, committing up to 18 million barrels annually.

• This strengthens their existing partnership and secures reliable off-taker for Qatari crude.

• The deal coincides with Qatar's ongoing LNG expansion projects, where Shell also holds minority stakes.

• Qatar aims to become a major global LNG supplier, with 40% of new LNG by 2029 expected to come from their projects.

ExxonMobil Scores 4th Discovery in 2023, Pushing Guyana's Recoverable Resources to 11 Billion Barrels

• ExxonMobil, with partners Hess and CNOOC, makes a "significant" oil and gas discovery in Guyana's Stabroek block (Lancetfish-2 well).

• This is the fourth discovery in 2023, boosting Guyana's recoverable resources to 11 billion barrels.

• The discovery boasts 20 m of oil-and-gas reservoir and 81 m of oil-and-gas sandstone within Exxon's Liza production license region.

• The prolific Stabroek block, producing since 2019, aims to reach 1.2 million barrels of oil equivalent per day (MMboed) by 2027.

EIG Expands Offshore Presence with $390m Acquisition of Brazilian Oil & Gas Provider Ocyan

• EIG acquires Ocyan, a leading Brazilian provider of offshore oil & gas maintenance solutions, for $390m.

• Deal strengthens EIG's footprint in Brazil and expands into renewables with Ocyan's new energy division.

• Ocyan boasts 23 years of experience and expertise in subsea construction, decommissioning, and FPSO operations.

• Acquisition includes long-term contracts with major clients like Libra Consortium and Karoon Energy.

• Ocyan employs over 3,000 and plans to leverage its expertise in digitalization for renewable energy projects.

Kinder Morgan Expands Pipeline Network with $1.81bn Eagle Ford Basin Acquisition

• Kinder Morgan acquires STX Midstream assets from Nextera Energy for $1.81 billion, boosting its natural gas pipeline network.

• STX Midstream includes high-pressure pipelines connecting the Eagle Ford basin to Mexico and Gulf Coast markets, with a combined daily capacity of 4.9 billion cubic feet.

• Acquisition provides strategic access to growing LNG, industrial, and export markets, and strengthens Kinder Morgan's presence in the Eagle Ford basin.

• Kinder Morgan expects the deal to positively impact its 2024 budget guidance.

• Nextera Energy sees the sale as a key step in its transition plans, freeing up capital for other investments.

Williams Buys Up Gulf Coast Gas Storage for $1.95B, Bolsters LNG and Power Play

• Williams acquires six gas storage facilities with 115 Bcf capacity from Hartree for $1.95 billion.

• Deal includes 230 miles of pipelines connecting to LNG markets and Transco, the largest US gas pipeline.

• Williams aims to capitalize on growing demand for LNG exports, power generation, and renewables integration.

• Acquisition strengthens Williams' position in Gulf Coast, a major gas-consuming region.

• Company sees significant earnings growth potential in high-deliverability storage assets.