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Tullow Oil Agrees Preliminary Terms For $120M Kenyan Asset SaleTullow Oil has reached an agreement to divest its Kenyan subsidiary, Tullow Kenya, to Gulf Energy for a minimum consideration of $120m (ÂŁ90.48m).
The deal was signed by its own subsidiary Tullow Overseas Holdings.
The transaction’s payment structure includes an initial $40m upon completion, another $40m due by 30 June 2026, or with the approval of the field development plan, whichever comes first, and the final $40m to be paid over five years, starting from the third quarter of 2028.
Additionally, Tullow retains the right to a royalty payment, contingent on certain conditions, and a back-in option for a 30% stake in any future development phases at no cost.
This deal is not only accretive to Tullow’s equity and leverage metrics but also expedites the company’s deleveraging efforts.
This transaction will be classified as a significant transaction under the UK Listing Rules (UKLR), specifically UKLR 7 as updated on 29 July 2024 .
Tullow interim chief executive officer and chief financial officer Richard Miller said: “Today’s announcement marks another step forward in Tullow’s accelerated deleveraging journey with near-term cash receipts of $80m and mitigating significant capital exposure, whilst retaining a material option on the future development of the project. I am confident that the proceeds from this transaction, coupled with the $300m from the disposal of our assets in Gabon, position the business strongly for a successful refinancing.
“We look forward to working with Gulf Energy, who have the requisite financing to complete the transaction and are a strong and credible counterparty, and by doing so, unlock material value for the people of Kenya.”
Last month, Tullow Oil agreed to sell its Gabon assets to Gabon Oil Company for $300m, net of tax.
The deal encompasses Tullow’s Gabonese assets, which are expected to produce 10,000 barrels of oil per day by 2025 and include around 36 million barrels of proven reserves.oil-gas
Apr 16, 2025
Offshore Technology
Us Oil Production Forecasted To Peak At 14Mbbl/D In 2027: Eia ReportThe US Energy Information Administration (EIA) forecasts that US oil production will peak at 14 million barrels per day (mbbl/d) in 2027, maintaining this level until the end of the decade, before declining.
This projection signals the impending end of the US shale boom, with output expected to fall to approximately 11.3mbbl/d by 2050.
The EIA’s Annual Energy Outlook highlights that the US, the world’s largest oil producer, will see a gradual decline from the current production level of around 13.7mbbl/d.
The report suggests that former US President Joe Biden’s policies have influenced this trajectory, despite record-setting oil output during his tenure in 2023 and 2024.
The Department of Energy (DOE) attributed this decline to Biden’s policies, stating they have set a “disastrous path” for US energy production.
However, the issuance of drilling permits accelerated under Biden compared with Trump’s first term, according to the DOE, reported Reuters.
The International Energy Agency (IEA) noted that Trump’s tariffs on trading partners have increased costs for shale drillers, impacting US oil output forecasts for 2025.
US shale oil production is projected to peak at 10mbbl/d in 2027, up from around 9.69mbbl/d this year, before declining to 9.33mbl/d by 2050, as per the EIA.
The post-pandemic recovery in US oil demand is expected to stabilise next year, with demand edging up slightly from 20.51mbbl/d this year to 20.52mbbl/d next year.
Before the Covid-19 pandemic, US oil consumption averaged 20.54mbbl/d in 2019, with a record high in 2005 of 20.80mbbl/d.
The EIA recently lowered its global oil demand growth forecasts, citing weaker economic activity due to the US-China trade war.
Brent crude is expected to average $67.87 a barrel (bbl) this year, down from an earlier forecast of $74.22/bbl. US benchmark West Texas Intermediate (WTI) crude oil is forecasted to average $63.88/bbl in 2025, nearly $7 below the prior forecast.
Brent futures were trading slightly below $65/bbl on Tuesday, down around 13% this year, while WTI futures were around $61.25/bbl, down about 14%.
The IEA also predicts that global oil demand growth will slow, with US production tapering due to Trump’s tariffs and retaliatory moves from trading partners.
The IEA reported a sharp cut in world oil demand growth this year, projecting a rise of 730,000 barrels per day (bpd), down from the previous forecast of 1.03mbbl/d.
“The deteriorating outlook for the global economy amid the sudden sharp escalation in trade tensions has prompted a downgrade to our forecast for oil demand growth this year,” the IEA stated.
In 2026, the IEA predicts a further slowdown in demand growth to 690,000bpd due to economic fragility and increased electric vehicle adoption.oil-gas
Apr 16, 2025
Offshore Technology
Totalenergies Inks 15-Year Lng Supply Deal In Dominican RepublicTotalEnergies has entered into an agreement with Energia Natural Dominicana (ENADOM), a joint venture between AES Dominicana and Energas, to supply 400,000 tonnes per annum of liquefied natural gas (LNG).
The 15-year contract, subject to the finalisation of the sale and purchase agreements (SPAs), is expected to commence in mid-2027, with pricing indexed to the Henry Hub.
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TotalEnergies LNG senior vice-president Gregory Joffroy said: “We are pleased to have signed this agreement to answer, alongside AES and its partners, the energy needs of the Dominican Republic.
“This new contract underscores TotalEnergies’ leadership in the LNG sector and our commitment to supporting the island’s energy transition. It will be a natural outlet for our US LNG supply, which will progressively increase.”
The deal will facilitate the provision of natural gas to a new 470MW combined-cycle power plant in the Dominican Republic, which is currently under construction.
This initiative is part of the country’s efforts to transition towards cleaner energy sources and reduce reliance on coal and fuel oil, thereby lowering carbon emissions.
ENADOM chief executive officer Edwin De los Santos added: “This agreement with TotalEnergies is the result of the confidence placed in the Dominican Republic’s energy sector and, specifically, in ENADOM and AES.
“This partnership, alongside ENADOM’s has demonstrated investment capabilities in providing natural gas to the Dominican electricity market by ensuring a reliable, competitive and environmentally responsible energy supply. ENADOM is proud to play a pivotal role in the expansion and strengthening of the nation’s energy matrix in the Dominican Republic.”
TotalEnergies recently opted to buy LNG from Train 4 at NextDecade’s Rio Grande LNG facility in Brownsville, Texas.oil-gas
Apr 16, 2025
Offshore Technology
Indonesia Plans To Boost Us Energy Imports By $10Bn Amid TariffsIndonesia is set to propose an increase in energy imports from the US, with plans to purchase additional crude oil and liquefied petroleum gas (LPG) worth around $10bn (Rp168.4trn), reported Reuters.
This move is part of the country’s strategy to address its trade surplus with the US and avoid a 32% tariff on Indonesian exports.
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Indonesian Energy Minister Bahlil Lahadalia announced the initiative to local media, highlighting that Indonesian officials will soon head to Washington for tariff negotiations.
The overall goal is to acquire US goods valued at $18bn–19bn.
Bahlil suggested that to meet this target, Indonesia should raise the LPG import quota from the US and boost crude oil purchases.
To accommodate the increased imports from the US, Indonesia may need to reduce LPG imports from other sources.
Energy Shift Institute managing director Putra Adhiguna mentioned that Indonesia could start by cutting 20–30% of its LPG imports from non-US suppliers, depending on the contracts.
Data from Kpler indicates that Indonesia imported approximately 306,000 barrels per day (bpd) of crude oil last year, primarily from Nigeria, Saudi Arabia and Angola, with around 13,000bpd sourced from the US.
In response to the proposed changes in LPG imports, a spokesperson from Pertamina, the nation’s leading LPG retailer, stated that the company is reviewing its import strategy and awaiting government directives.
Recently, Venezuela’s state oil company, PDVSA, withdrew several permissions it had granted to Chevron, a US-based company, for loading and exporting Venezuelan crude oil.
This decision follows the US tariffs imposed on Venezuela’s oil customers and comes after Washington revoked essential licences for several PDVSA partners, including Chevron, last month.
Navigate the shifting tariff landscape with real-time data and market-leading analysis.
Request a free demo for GlobalData’s Strategic Intelligence here.oil-gas
Apr 16, 2025
Offshore Technology
Venture Global’S Calcasieu Pass Lng Export Project Starts OperationsVenture Global has started commercial operations at its Calcasieu Pass liquefied natural gas (LNG) export project in Cameron Parish, Louisiana, south of the city of Lake Charles.
The company has also started the sale of low-cost, US LNG to the long-term customers of the project.Â
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The project, notable for its rapid completion, started commercial operations in just 68 months after the final investment decision in August 2019.
The Federal Energy Regulatory Commission (FERC) recently gave the green light for full operations at the Calcasieu Pass facility and its associated TransCameron pipeline in Louisiana.
This project will help bolster the US trade, particularly with European allies, through multi-billion-dollar contracts.
Despite facing substantial challenges such as a global pandemic, two hurricanes and a force majeure event related to manufacturing issues with the power island, the project’s owner-led approach to construction helped complete the project.
Venture Global CEO Mike Sabel said: “I am incredibly proud of our team who have worked relentlessly and diligently to successfully construct and commission our first LNG project. We are excited to reach this milestone and are grateful for our regulators and supply chain partners who have worked with our team to reach commercial operations as efficiently and safely as possible.”
The Calcasieu Pass facility covers 432 acres and has a mile of deep waterfront.
It includes 18 liquefaction units capable of processing 626,000 tonnes per annum, arranged in nine blocks, along with three units for gas pre-treatment.
The site offers two berths for loading ships up to 185,000mÂł and has two LNG storage tanks, each with a capacity of 200,000mÂł.
Additionally, the operation includes a 720MW gas turbine power plant with an extra 23MW gas turbine on site.
The facility offers some of the most competitive liquefaction fees in the global market, with rates below $2 per million British thermal units.
Long-term sales and purchase agreements ensure that customers will benefit from low-cost North American LNG throughout the 20-year contract duration.oil-gas
Apr 16, 2025
Offshore Technology
Totalenergies, Nextdecade Sign 20-Year Lng Deal For Rio Grande Train 4TotalEnergies has exercised its option to purchase liquefied natural gas (LNG) from Train 4 of NextDecade’s Rio Grande LNG facility near Brownsville, Texas, US.
Subsidiaries of both companies have entered into a long-term sale and purchase agreement (SPA) in which TotalEnergies Gas & Power North America will acquire 1.5 million tonnes per annum (mtpa) of LNG over a 20-year period.
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The agreement is contingent upon a positive final investment decision (FID) for Train 4, which will be decided based on various factors including the arrangement of sufficient financing for the construction of Train 4 and its associated infrastructure.
The LNG will be provided on a free-on-board (FOB) basis, with pricing indexed to the Henry Hub benchmark.
NextDecade chairman and chief executive officer Matt Schatzman said: “TotalEnergies has been a key contributor to the success of Rio Grande LNG Phase 1, and we are pleased to be expanding our strategic partnership with TotalEnergies with the execution of this Train 4 SPA.
“This SPA completes the commercial support we need for Rio Grande LNG Train 4, and we are now focused on progressing Train 4 toward a positive FID.”
NextDecade has secured long-term commitments for a total of 4.6mtpa from Train 4 and anticipates that these agreements will be adequate to support a positive FID.
The Rio Grande LNG facility, situated on a 984-acre site in Brownsville, is designed to produce LNG with a lower carbon intensity, aligning with the industry’s shift towards more sustainable energy practices.
NextDecade is developing and constructing the facility through its subsidiaries.
Last month, NextDecade signed a framework agreement with Baker Hughes to supply gas turbine and refrigerant compressor technology for Trains 4 through 8 at the Rio Grande LNG facility.
This agreement also includes the provision of maintenance services for the equipment supplied.oil-gas
Apr 15, 2025
Offshore Technology
Eu To Unveil Detailed Plan To Cut Russian Oil And Gas Imports Next MonthThe EU is set to unveil a comprehensive plan to end its reliance on Russian oil and gas by 2027, following delays.
The European Commission will release the strategy next month, addressing the EU’s commitment to quit Russian fossil fuels following Moscow’s 2022 invasion of Ukraine, reported Reuters.
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The initial plan was postponed due to uncertainties surrounding US President Donald Trump’s proposed tariffs, which could impact EU-US energy trade discussions.
Despite reduced Russian pipeline gas deliveries since 2022, the EU increased imports of Russian liquefied natural gas (LNG) last year, with Russia accounting for 19% of the EU’s total gas and LNG supply in 2024.
While the EU has not sanctioned Russian gas imports, Hungary has vowed to block energy sanctions that require unanimous EU approval, the report said.
Some governments are hesitant to sanction Russian LNG without securing alternative supplies.
The Commission has not specified the tools it will propose to expedite the Russian energy phase-out, though the Bruegel think tank suggests imposing tariffs on Russian gas imports.
The EU may increase LNG purchases from the US, which helped fill the Russian supply gap during the 2022 energy crisis.
The US was Europe’s third-largest gas supplier last year after Russia and Norway.
However, businesses and EU diplomats’ have expressed concerns about potential vulnerabilities from relying on US gas, especially as Trump considers energy a trade negotiation tool.
Meanwhile, Russia’s new energy strategy anticipates stable crude production and significant growth in natural gas production and exports over the next 25 years.
Russian pipeline gas exports to Europe have collapsed since the 2022 invasion, but crude exports continue globally.
Russia is aiming for natural gas exports of 293 billion cubic metres (bcm) by 2030, up from 146bcm in 2023, potentially reaching 438bcm by 2050.
The strategy also projects stable annual oil production of 540 million tonnes (mt) through 2050, slightly increasing from 531mt in 2023.
Oil exports are expected to remain stable at 235mt annually from 2030 to 2050.
However, US sanctions have hindered LNG deliveries from Russia’s Arctic LNG-2 plant, which began production in December 2023.
Russia expects LNG exports to rise to 142bcm by 2030 from 45bcm in 2023, further increasing to 241bcm by 2050, according to its energy strategy.
Russia’s oil shipments through the Baltic Sea declined by around 10% in the last four months of 2024 due to the effects of EU sanctions.oil-gas
Apr 15, 2025
Offshore Technology
Evolution Petroleum Acquires Non-Operated Oil And Gas Assets Across Three StatesEvolution Petroleum has completed the acquisition of non-operated oil and natural gas assets across three US states – New Mexico, Texas and Louisiana.
The $9m acquisition, effective 1 February 2025, was funded through cash and existing credit facilities.
This strategic move aims to enhance Evolution’s portfolio with a focus on long-life oil and gas properties.
The acquisition is valued at approximately 3.4-times the estimated next 12 months adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation), based on current strip pricing.
It is expected to add approximately 440 net barrels of oil equivalent per day (boepd) of stable, low-decline production, comprising 60% oil and 40% natural gas.
This acquisition is set to provide enhanced cash flow visibility and strengthen long-term dividend sustainability.
Evolution Petroleum’s acquisition offers low-risk development opportunities with potential for incremental production growth.
The $9m purchase price is set against an estimated $13m of Proved Developed PV-10, highlighting the strategic value of the assets. The company aims to maintain a diversified portfolio through acquisitions and selective development opportunities.
Evolution Petroleum president and CEO Kelly Loyd said: “Despite recent commodity price and market volatility, our TexMex transaction remains highly accretive to both near-term and long-term cash flows and directly supports our core objective – preserving and enhancing the long-term sustainability of our dividend.
“Our negotiated deal represents a significant discount to PV10 at the current strip and, due to its low-decline nature, should only get better if oil prices move back up to a more normalised price range.
“TexMex is yet another execution of our proven strategy and represents exactly the kind of transaction that underpins Evolution’s long-standing commitment to deliver a stable and sustainable dividend.”
Evolution Petroleum’s strategy focuses on building a diverse portfolio of long-life oil and natural gas properties.
The company seeks to achieve this through acquisitions, production enhancements and other exploitation efforts, ensuring long-term sustainability and growth.oil-gas
Apr 15, 2025
Offshore Technology
Us Ends Eis Requirement For Western Oil And Gas LeasesIn a move aligned with President Donald Trump’s agenda, the US will no longer require environmental impact statements (EISs) for approximately 3,244 oil and gas leases across the western states.
This decision by the Interior Department aims to reduce regulatory barriers and expedite domestic energy development.
The leases are located in Colorado, Montana, New Mexico, North Dakota, South Dakota, Utah and Wyoming.
The rescission of the notice of intent by the Bureau of Land Management (BLM) supports the policy direction of Executive Order 14154 and Secretary’s Order 3418, both titled Unleashing American Energy.
Former President Joe Biden’s BLM had announced on 16 January that it would prepare the analysis following lawsuits challenging the leases, according to a report by Reuters.
A court had remanded the matter to BLM for further environmental analysis. Such EISs are mandated by the 1970 US National Environmental Policy Act (NEPA).
President Donald Trump has long opposed NEPA’s requirements.
On 20 January, his first day back in office, he signed an executive order to speed up energy permitting by proposing the elimination of NEPA requirements, including the consideration of greenhouse gas emissions for major projects.
The Interior Department stated that the BLM is evaluating options for NEPA compliance regarding oil and gas leasing decisions.
Additionally, the US Energy Information Administration (EIA) anticipates a decline in global oil demand growth through 2026, influenced by recent trade policy developments and changes in oil production.
The EIA’s April Short-Term Energy Outlook (STEO) highlights significant uncertainties around energy supply, demand and prices.
The STEO notes that early April developments have notably impacted global oil markets.
On 2 April, President Trump signed an executive order imposing a minimum 10% tariff on imports from all countries, with higher tariffs on some.
In response, China imposed 34% tariffs on US imports on 4 April.oil-gas
Apr 14, 2025
Offshore Technology
Europe’S Lng Imports To Increase By 25% In 2025: IeaThe International Energy Agency (IEA) forecasts a significant rise in European liquefied natural gas (LNG) imports of 25% in 2025.
This increase is driven by lower piped gas imports and stronger domestic demand, necessitating higher LNG imports to meet energy needs.
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In contrast, Asia’s LNG imports are forecast to decline due to strong competition from Europe for flexible LNG cargoes.
Global gas demand growth is expected to slow to around 1.5% in the same year due to tight market conditions and macroeconomic uncertainties.
An international Summit on the Future of Energy Security will be held by the IEA and the UK Government on 24–25 April 2025 to address energy security risks.
Following the gas supply shock of 2022/23, natural gas demand returned to structural growth in 2024, with Europe and North America experiencing increased consumption due to weather conditions.
In contrast, Asia saw a slowdown in gas demand growth due to higher LNG prices and milder winters, particularly in China.
According to the forecast report, tighter market fundamentals have led to upward pressure on gas prices, exacerbated by geopolitical tensions.
Below-average growth in global LNG output and reduced piped gas exports from Russia to the EU have kept supply tight, increasing reliance on gas storage and reserve mechanisms.
In Europe, gas consumption rose nearly 10% year-on-year due to lower renewable electricity output, while in North America, a colder winter pushed gas consumption to an all-time high.
In Asia, gas demand growth slowed, with China’s demand declining by around 2% year-on-year due to milder weather and high LNG spot prices.
In Eurasia, natural gas consumption decreased by an estimated 3% year-on-year due to a mild winter in Russia.
In Europe, lower piped gas imports from Norway and Russia increased reliance on underground storage facilities.
The EU saw net storage withdrawals grow by more than 50% year-on-year, accounting for more than 30% of natural gas demand during the November–March period.
In the US, higher gas consumption led to a 40% increase in storage draws compared with the previous year.oil-gas
Apr 14, 2025