Global Energy Developments: Key Takeaways and Statistics

Strategic Insights -

Major international energy companies are actively pursuing energy projects around the world, with significant developments in Palestine, Iraq, Iran, and other regions. In Palestine, a gas discovery was made 36km offshore Gaza, while in Iraq, Lukoil is on the verge of quitting the West Qurna project due to a deteriorating relationship with Iraq's leadership and dwindling Kremlin support. In Iran, Shell is planning to submit a bid for further development of the giant South Pars offshore field.

In other regions, BG and Iran have formed a joint venture to develop the first liquefied natural gas (LNG) project in Iran, while Hungary's Mol has agreed to sell its upstream assets in Tunisia to Athanor Tunisia. The Nigerian government has received significant aid from the US, and new natural gas wells have come online offshore South Africa. Meanwhile, Shell is upgrading its Bonny oil terminal in Nigeria and Morocco is opening its first-ever bidding round for offshore exploration blocks.

Key Takeaways:

  • Palestine has discovered its first gas, with a well located 36km offshore Gaza flowing at a rate of 37mn [ft.sup.3]/d (770,000 [m.sup.3]/d).
  • Lukoil's Iraq operations are on hold due to UN sanctions and a deteriorating relationship with Iraq's leadership, which may lead to Slavneft replacing it.
  • Shell plans to submit a bid for further development of the 12.3 trillion [m.sup.3] South Pars offshore field in Iran.
  • BG and Iran have formed a joint venture to develop the first LNG project in Iran, which could produce up to 7mn t/yr of LNG by 2006.
  • Hungary's Mol has sold its upstream assets in Tunisia to Athanor Tunisia for around $15mn.
  • Nigeria has received significant aid from the US, including a $760,000 grant for gas development and a $109mn grant for business development.
  • Two new natural gas wells have come online offshore South Africa to supply the Mossel Bay electricity generating plant.
  • Shell is upgrading its Bonny oil terminal in Nigeria at a cost of $1bn over five years.
  • Morocco is opening its first-ever bidding round for offshore exploration blocks, with eight blocks available for tender.

Statistics:

  • 37mn [ft.sup.3]/d (770,000 [m.sup.3]/d) gas flow rate discovered off the coast of Gaza.
  • $760,000 grant received by Nigeria for gas development from the US.
  • $109mn grant received by Nigeria for business development from the US.
  • $1bn estimated cost of upgrading Shell's Bonny oil terminal in Nigeria.
  • 12.3 trillion [m.sup.3] estimated gas reserves of the South Pars offshore field in Iran.
  • 7mn t/yr estimated LNG production capacity of the BG-Iran joint venture.
  • 31,000[km.sup.2] area covered by the Moroccan offshore bidding round.

Sources:

  • WPA (15 November, p8)
  • WPA (18 September, p12)
  • WPA (4 September, p8)
  • WPA (28 August, p9)