Venezuela oil exports slipped despite big assist from Iran

Venezuela oil exports slipped despite big assist from Iran

Venezuela's oil exports last year declined due to infrastructure outages, U.S. sanctions and rising competition in its key Asia market despite assistance from ally Iran, according to shipping data and documents, said Reuters.

Exports this year are expected to get a lift after the United States relaxed oil sanctions by authorizing some partners of state-run firm Petroleos de Venezuela (PDVSA) to resume taking Venezuelan crude.

Iran expanded its role in Venezuela last year, sending supplies to boost exports and technicians to repair a refinery. But the poor condition of the country's ports, oilfields and refineries and harsh competition from Russia on crude supplies to China will keep limiting export gains, experts said.

PDVSA and its joint ventures exported some 616,540 barrels per day (bpd) of crude and refined products last year, a 2.5% drop from 2021 and slightly below 2020, according to a Reuters tally of data and documents.

"Despite the increased Iranian help, the decline in net exports results from a combination of production stagnation and the increasing competition of Russian exports in the Chinese black market," said Francisco Monaldi, a Latin American energy expert at Rice University's Baker Institute.

The OPEC-member country boosted its exports of petroleum coke, methanol and other oil byproducts, which helped offset some of the revenue loss. Shipments of these lower-value products more than tripled to 4.36 MM metric tons last year from 2021.

PDVSA's refineries began the new year processing 386,000 bpd of crude, less than 30% of their 1.3 MMbpd installed capacity, according to figures from employee unions.

We remind, U.S. oil producer Chevron Corp plans to export this month its first cargo of Venezuelan crude to its Pascagoula, Mississippi refinery following a U.S. license granted last year. The 500,000-barrel cargo of Hamaca heavy crude, to be loaded at state-run PDVSA's Jose port, comes from the Petropiar oil joint venture operated by both companies.
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Technip Energies wins large project management consultancy contract by Kuwait Oil Company

Technip Energies wins large project management consultancy contract by Kuwait Oil Company

Technip Energies has been awarded a large contract for Project Management Consultancy (PMC) by Kuwait Oil Company (KOC), said Hydrocarbonprocessing.

The five-year framework agreement contract covers front-end engineering design (FEED), project management, and associated services for KOC’s major projects.

This contract represents a renewal of the first five-year framework agreement that was awarded to Technip Energies by KOC in 2014.

Charles Cessot, Senior Vice-President T.EN X of Technip Energies, commented: “We are delighted by the continued confidence shown by KOC with this award to support them on their major developments. This award reinforces the strong and lasting relationship we have built with KOC and reaffirms our outstanding consultancy delivery as well as our long-standing presence in Kuwait."

A “large” award for Technip Energies is a contract award representing between €250 MM and €500 MM of revenue. As the framework agreement is call-off in nature, the overall value of the contract will be progressively added to order intake as it is called off by the client.

We remind, Technip Energies has been awarded a contract for the supply of proprietary cracking furnaces for the 2,000,000 tpy ethane cracker for the Golden Triangle Polymers project, a joint venture between Chevron Phillips Chemical (CPChem) and QatarEnergy, along the Gulf Coast in Orange, Texas. This latest award is in line with our early engagement strategy with CPChem and QatarEnergy, which resulted in the selection of our proprietary ethylene technology and includes the successful completion of the ethylene license and Process Design Package (PDP).
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Petrobras reinforces security at refineries after threats

Petrobras reinforces security at refineries after threats

Petroleo Brasileiro SA stepped up security at its refineries in a precautionary measure after threats against assets, including Brazil's biggest fuel plant, two company officials said, speaking on condition of anonymity, said Reuters.

The threats were detected by Petrobras' intelligence unit monitoring social media communications of supporters of Brazil's far-right former President Jair Bolsonaro, the two people said. The state-controlled company said on Sunday night all its assets and refineries were operating normally.

"Petrobras is taking all the preventative protective measures required, as a standard procedure," it said in a statement. Thousands of Bolsonaro' supporters on Sunday invaded the country's Congress, presidential palace and Supreme Court, destroying furniture and shattering windows, in an echo of the U.S. Capitol invasion in Jan. 6, 2021, by supporters of former President Donald Trump.

The threats to Petrobras targeted assets such as refineries in Sao Paulo, Rio de Janeiro and Parana states, the people said. Petrobras has a 1,000-person private security workforce and is working with state police. Brazil's Mines and Energy Minister, Alexandre Silveira, said Brazil's fuel supply would run normally, as would the country's refineries.

"Besides monitoring the status of protests in these structures, we remain alert and in coordination with other ministries and states to ensure the supply," he said in a statement.

Rio de Janeiro's governor Claudio Castro said on Twitter he had deployed on Saturday state and city police to reinforce security at Reduc, the state's main refinery.

We remind, Petrobras has started output at the Itapu pre-salt field in the Santos basin via the P-71 floating production, storage and offloading vessel. The P-71 FPSO, which features a processing capacity of 150,000 barrels per day of oil and 6 million cubic metres per day of natural gas, was deployed in water depths of 2010 metres. “We were able to anticipate production of the P-71 platform, which was originally scheduled for 2023,” said Petrobras production development director Joao Henrique Rittershaussen.
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Idemitsu restarts Yokkaichi No.2 CDU after maintenance

Idemitsu restarts Yokkaichi No.2 CDU after maintenance

Japan's second-biggest oil refiner, Idemitsu Kosan Co, restarted the 100,000 bpd No.2 crude distillation unit (CDU) at its Yokkaichi refinery in central Japan on Dec. 3, said Reuters.

The unit was shut on Sept. 26 for scheduled maintenance. Separately, a fire broke out at a catalytic reformer at its Hokkaido refinery in northern Japan on the night of Dec. 20, but was extinguished within a few hours, the spokesperson said.

The 150,000-bpd CDU at the refinery continues to operate, she said, but declined to comment on the current run rate and the impact on other equipment.

We remind, Idemitsu Kosan Co Ltd , Japan's No. 2 oil refiner, expects cleaner fuels such as ammonia, green pellets and sustainable aviation fuel (SAF) to contribute to its profits by 2030, its president said. Like global energy giants, Idemitsu is changing its portfolio by scaling down fossil fuel assets while investing in greener energy and battery metals.
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ADNOC allocates USD15 bn to low-carbon solutions, new energies and decarbonization technologies

ADNOC allocates USD15 bn to low-carbon solutions, new energies and decarbonization technologies

ADNOC announced a bold new strategy to progress the world-scale decarbonization of its operations, said Hydrocarbonprocessing.

The announcement follows the guidance by ADNOC’s Board of Directors in November 2022 to accelerate delivery of its low-carbon growth strategy and the approval of its Net Zero by 2050 ambition. This builds on ADNOC’s strong track record as a leading lower-carbon intensity energy producer, which includes its use of zero carbon grid power, a commitment to zero flaring as part of routine operations and deployment of the region’s first carbon capture project at-scale.

Acting on the Board’s guidance, ADNOC has allocated USD15 B to advance an array of projects across its diversified value chain by 2030. These projects will include investments in clean power, carbon capture and storage (CCS), further electrification of its operations, energy efficiency and new measures to build on ADNOC's long-standing policy of zero routine gas flaring. ADNOC will apply a rigorous commercial and sustainability assessment to ensure that each project delivers lasting tangible impact.

Throughout 2023, a suite of new projects and initiatives will be announced, including a first-of-its-kind CCS project, innovative carbon removal technologies, investment in new, cleaner energy solutions and strengthening of international partnerships. Together with the recent formation of the ADNOC’s new Low Carbon Solutions and International Growth Directorate, these represent tangible and concrete action as the company reduces its carbon intensity by 25% by 2030 and moves towards its Net Zero by 2050 ambition.

His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, said: “Under the directives of the UAE’s wise leadership and the ADNOC Board of Directors, ADNOC continues to take significant steps to make today’s energy cleaner while investing in the clean energies and new technologies of tomorrow. Now, more than ever, the world needs a practical and responsible approach to the energy transition that is both pro-growth and pro-climate, and ADNOC is delivering tangible actions in support of both these goals.

"Cementing our strong track record of responsible and reliable energy production, ADNOC will fast-track significant investments into landmark clean energy, low-carbon and decarbonization technology projects. As we continue to future-proof our business, we invite technology and industry leaders to partner with us, to collectively drive real and meaningful action that embraces the energy transition. This strategic, multi-billion-dollar initiative underscores ADNOC’s industry leadership as a leading global provider of lower-carbon energy."

Building on ADNOC’s Al Reyadah facility, which has the capacity to capture up to 800,000 tons of CO2 per year, the company will announce plans to deploy technologies to capture, store and absorb CO2 by leveraging the UAE’s geological properties while preparing for its next major investment to capture emissions from its Habshan gas processing facility. Combined with ADNOC’s planned expansion of its carbon capture capacity to 5 MMtpy by 2030, the UAE will be firmly established as a worldwide hub for carbon capture expertise and innovation.

ADNOC’s expansion of CCS is planned to support the significant scale-up of hydrogen and lower-carbon ammonia production capabilities in Abu Dhabi as ADNOC advances a world-scale 1 MMtpy blue ammonia production facility at TA’ZIZ, the industrial services and logistics ecosystem that is enabling the expansion of the Al Ruways Industrial City, as well as Abu Dhabi’s wider chemicals, manufacturing and industrial sectors. To-date, ADNOC has already delivered test cargoes of low-carbon ammonia to Europe and Asia.

ADNOC’s expansion of its new energy portfolio will largely be delivered through its stake in Masdar, the UAE’s clean energy powerhouse with over 20 gigawatts (GW) of clean energy today and plans to increase its capacity to 100 GW by 2030. Masdar is also spearheading the UAE’s drive to develop a leading position in green hydrogen.

Since January 2022, ADNOC has received 100% of its grid power supply from Emirates Water and Electricity Company’s (EWEC) nuclear and solar energy sources, making it the first major company in the industry to decarbonize its power at scale through a clean power agreement of this kind. ADNOC also concluded a $3.8 B deal to build a first-of-its-kind, sub-sea transmission network in the MENA region, connecting ADNOC’s offshore operations to the onshore power network, with the potential to reduce ADNOC’s offshore carbon footprint by up to 50%.

Building on the multi-billion capital investment in decarbonization projects, ADNOC is working closely with its international partners and stakeholders across the energy value chain to collaborate on technology, best practices and policy to support and drive global decarbonization efforts.

We remind, Abu Dhabi National Oil Company (ADNOC) and Mubadala announced a transaction involving OMV, a global energy and chemicals group, headquartered and listed in Vienna, Austria. Under the agreement, ADNOC will acquire a 24.9% shareholding in OMV from Mubadala. Financial details of the transaction are not being disclosed. Upon completion of the transaction, which is subject to certain closing conditions and regulatory approvals, ADNOC will own 24.9% of OMV, Osterreichische Beteiligungs AG (OBAG), an Austrian independent holding company, holding 31.5%, with the remaining share capital in free float.
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