Latest news with #Upstream
Barnama
3 days ago
- Business
- Barnama
PETRONAS Carigali Unveils Pioneering AI Venture - TriCipta AI with Beicip-Franlab & AFED Digital to Deliver Breakthrough Performance Across Upstream Value Chain
KUALA LUMPUR, June 18 (Bernama) -- PETRONAS Carigali Sdn Bhd today announced a groundbreaking strategic partnership for its Upstream business with Beicip-Franlab, a leading geoscience and reservoir technology company, and AFED Digital, a specialist in advanced AI and digital solutions. Together, they have entered into a Joint Development Agreement (JDA) via TriCipta AI, a pioneering venture aimed at accelerating hydrocarbon discovery, reducing uncertainties, and maximising recovery sustainably across PETRONAS Carigali's operations. The partnership will initially focus on delivering high-impact and tangible AI solutions to directly address key challenges in exploration, development, and production. Built on a long-term vision of collaborative success, the strategic partnership reflects PETRONAS' drive towards operational excellence and future readiness across its value chain.
Business Insider
29-05-2025
- Business
- Business Insider
TotalEnergies sells stake in Nigeria's Bonga field to Shell for $510 million
French energy giant TotalEnergies announced on Thursday that it will sell its 12.5% non-operating stake in Nigeria's Bonga oil field to a subsidiary of Shell for $510 million. TotalEnergies has agreed to sell its 12.5% stake in Nigeria's Bonga oil field to a Shell subsidiary for $510 million. This transaction will increase Shell's ownership in the Bonga field to 67.5%. The deal remains subject to regulatory approvals and is expected to conclude by year-end. French energy giant TotalEnergies announced on Thursday that it will sell its 12.5% non-operating stake in Nigeria's Bonga oil field to a subsidiary of Shell for $510 million. The divestment, made through TotalEnergies EP Nigeria, was confirmed in an official statement from the company. The deal will increase Shell's ownership in the Bonga oil field to 67.5%, stressing its sustained focus on offshore oil production in Nigeria, even as it retreats from onshore operations plagued by oil spills. " TotalEnergies continues to actively high-grade its Upstream portfolio, to focus on assets with low technical costs and low emissions, and to lower its cash breakeven" said Nicolas Terraz, President Exploration & Production at TotalEnergies. 'In Nigeria, the Company is focusing on its operated gas and offshore oil assets and is currently progressing the development of Ubeta project, designed to sustain gas supply to Nigeria LNG." Shell recently sold those assets to Renaissance, a consortium made up of ND Western, Aradel Energy, First E&P, Waltersmith, and Petrolin, in a deal worth up to $2.4 billion. Bonga field set for major expansion In a move to boost output, Bonga's stakeholders approved a field extension project aimed at adding 110,000 barrels of oil equivalent per day, with the first oil expected by the end of the decade, according to Reuters. The field's floating production, storage and offloading (FPSO) vessel has a total processing capacity of 225,000 barrels per day. 'This acquisition brings another significant investment in Nigeria deep-water that contributes to sustained liquids production and growth in our Upstream portfolio,' said Shell's upstream chief Peter Costello. Esso Exploration and Production Nigeria, a subsidiary of Exxon, holds a 20% stake in the Bonga field, while Agip, owned by Oando, controls 12.5%. The transaction is pending regulatory approvals and is anticipated to be finalized by year-end.
Business Insider
29-05-2025
- Business
- Business Insider
TotalEnergies sells stake in Bonga field to Shell for $510 million
French energy giant TotalEnergies announced on Thursday that it will sell its 12.5% non-operating stake in Nigeria's Bonga oil field to a subsidiary of Shell for $510 million. TotalEnergies has agreed to sell its 12.5% stake in Nigeria's Bonga oil field to a Shell subsidiary for $510 million. This transaction will increase Shell's ownership in the Bonga field to 67.5%. The deal remains subject to regulatory approvals and is expected to conclude by year-end. French energy giant TotalEnergies announced on Thursday that it will sell its 12.5% non-operating stake in Nigeria's Bonga oil field to a subsidiary of Shell for $510 million. The divestment, made through TotalEnergies EP Nigeria, was confirmed in an official statement from the company. The deal will increase Shell's ownership in the Bonga oil field to 67.5%, stressing its sustained focus on offshore oil production in Nigeria, even as it retreats from onshore operations plagued by oil spills. " TotalEnergies continues to actively high-grade its Upstream portfolio, to focus on assets with low technical costs and low emissions, and to lower its cash breakeven" said Nicolas Terraz, President Exploration & Production at TotalEnergies. 'In Nigeria, the Company is focusing on its operated gas and offshore oil assets and is currently progressing the development of Ubeta project, designed to sustain gas supply to Nigeria LNG." Shell recently sold those assets to Renaissance, a consortium made up of ND Western, Aradel Energy, First E&P, Waltersmith, and Petrolin, in a deal worth up to $2.4 billion. Bonga field set for major expansion In a move to boost output, Bonga's stakeholders approved a field extension project aimed at adding 110,000 barrels of oil equivalent per day, with the first oil expected by the end of the decade, according to Reuters. The field's floating production, storage and offloading (FPSO) vessel has a total processing capacity of 225,000 barrels per day. 'This acquisition brings another significant investment in Nigeria deep-water that contributes to sustained liquids production and growth in our Upstream portfolio,' said Shell's upstream chief Peter Costello. Esso Exploration and Production Nigeria, a subsidiary of Exxon, holds a 20% stake in the Bonga field, while Agip, owned by Oando, controls 12.5%. The transaction is pending regulatory approvals and is anticipated to be finalized by year-end.
Observer
20-05-2025
- Business
- Observer
Energy shift must balance business, climate
MUSCAT, MAY 20 The energy transition must strike a pragmatic balance between climate ambitions and business sustainability, said Emry Hisham Yusoff, Senior General Manager of the Carbon Management Division, Upstream at Malaysia's Petronas. Speaking at a panel session during the Oman Petroleum & Energy Show (OPES), Yusoff addressed growing concerns among industry stakeholders about the economic viability of decarbonisation pathways, especially in the context of carbon capture and storage (CCS) and other capital-intensive interventions. 'Yes, there is pressure in investor and stakeholder meetings,' he acknowledged. 'But we must ensure that alignment remains between long-term climate targets and the realities of running viable energy businesses.' Yusoff noted that natural gas continues to play a critical role in Malaysia's energy mix, not just as a transition fuel but also as a core product in global markets. 'Gas demand is still growing—especially in Asia. We continue to see interest in LNG and related projects. It's not about stopping activity, but about transforming it responsibly.' On CCS, Yusoff was cautious but optimistic. 'In places like the US, where the government supports CCS through incentives such as the Inflation Reduction Act (IRA), projects are moving. But for us in Southeast Asia, the economics are different. The CO₂ concentration in our emissions streams is often below 4%, which makes capture much more energy- and cost-intensive,' he explained. He added that Petronas is now reassessing how best to approach energy efficiency and emissions reduction. 'We are working to reduce our own energy use and emissions intensity across upstream operations. But we also need to consider whether investments are achieving meaningful impact or just adding operational complexity.' Yusoff emphasised that energy transition strategies must be tailored to regional and operational contexts. 'This is not a copy-paste exercise. We must understand what works locally and where we need to refocus efforts.'
Yahoo
12-05-2025
- Business
- Yahoo
BKV Corp (BKV) Q1 2025 Earnings Call Highlights: Strategic Growth Amidst Challenges
Revenue: Not explicitly mentioned in the transcript. Net Loss: $79 million or a loss of $0.93 per diluted share. Adjusted Net Income: $35 million or $0.41 per diluted share. Combined Adjusted EBITDAX: Just over $100 million, including $90 million from upstream and $10 million from power. Power JV Adjusted EBITDA: $20 million, with BKV's 50% share being $10 million. Development CapEx: $48 million, 26% below the midpoint of the guided range. Total CapEx: $58 million, significantly below the low end of the first quarter guidance range of $75 million. Net Production: 761 million cubic feet equivalent per day. Cash and Cash Equivalents: Approximately $15 million at the end of the first quarter. Net Leverage Ratio: Less than 0.7 times net debt to adjusted EBITDAX. Adjusted Free Cash Flow: $6 million, or $22 million excluding premiums paid. Hedging Position: 58% of natural gas hedged at $3.44 per MMBTU for 2025. Warning! GuruFocus has detected 4 Warning Signs with BKV. Release Date: May 09, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. BKV Corp (NYSE:BKV) is positioned to grow rapidly in multiple economic scenarios, leveraging megatrends in energy. The company is one of the largest natural gas producers in Texas, with robust domestic and global demand projections. BKV's carbon capture business is accelerating, supported by strong bipartisan backing for the 45Q tax credit. The company's power joint ventures in Texas are well-positioned to capitalize on growing power demand, particularly from data centers. BKV's four business linesupstream, midstream, carbon capture, and power generationcreate premium margins and differentiated products. The macroeconomic landscape presents challenges such as persistent inflation and potential tariff impacts. Despite strong performance, BKV reported a net loss of $79 million in the first quarter. There are concerns about the resilience of the 45Q tax credit, although BKV remains confident in its robustness. The company faces potential supply chain disruptions, although it projects minimal impact. BKV's CCS projects require significant capital investment, and the pace and scale of these investments may shift. Q: With the recent JV with CIP and Comstock projects, do you think the momentum behind CCS projects is picking up, especially for gas processing projects? A: Christopher Kalnin, CEO: The momentum for carbon capture, particularly in natural gas processing, is strong. The 45Q tax credit is robust, with bipartisan support, enhancing U.S. energy competitiveness. BKV is leading in carbon capture, crucial for decarbonizing power for data centers. Eric Jacobsen, President of Upstream, added that the momentum around natural gas processing plants remains strong, with robust project economics and BKV establishing itself as a leader in this space. Q: Why weren't the Cotton Cove and Comstock projects included in the JV? A: Eric Jacobsen, President of Upstream: The exclusion was due to timing criteria. The first two projects are in the JV, with more to come in the FID and pre-FID phases. Q: Can you explain the unchanged CapEx for CCUS despite the new JV? A: Eric Jacobsen, President of Upstream: The JV with CIP allows us to optimize capital spend in CCS and diversify across other sectors. While the aggregate amount remains robust, near-term timing may shift. We remain committed to delivering on FID projects and achieving a 1 million ton per year CO2 injection rate by 2027. Q: What is your inclination to grow production given the current strip pricing? A: Eric Jacobsen, President of Upstream: We maintain a disciplined capital investment framework based on commodity price ranges. With current strip prices, we are committed to 2-3% growth for 2025. We are monitoring macroeconomic conditions closely and have the opportunity set to invest further if conditions remain favorable. Q: Can you elaborate on the funding mechanism for the JV with CIP? A: David Tameron, CFO: While specific upfront capital details are confidential, the JV provides significant flexibility and a funding mechanism. Capital will be drawn down over 12 to 24 months as projects are deployed. Projects will be contributed to the JV based on board approval. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
