Global Energy Sector Update: Shell, Eni, and BP Make Significant Moves

Strategic Insights -

International oil giants Shell, Eni, and BG Group are making significant strides in the energy sector, with major investments, contract awards, and debt relief discussions underway. Shell has signed a memorandum of understanding with Iranian state-owned NIOC and NPC to study the development of a new gas-to-liquids facility in Iran, while Eni is investing $1 billion in Nigeria over the next three years. In addition, BG Group has made a significant discovery in Egypt's West Delta Deep Marine concession, which could lead to a liquefied natural gas export agreement.

Key Takeaways:

  • Shell has signed a memorandum of understanding with NIOC and NPC to study the development of a new gas-to-liquids (GTL) facility in Iran, which will be fed with gas from the giant South Pars fields.
  • The GTL conversion plant will have a capacity of 70,000 b/d and will be constructed in six months.
  • Shell has awarded a contract to an international consortium led by Hyundai Heavy Industries to build early production facilities at Iran's Nowruz and Soroush offshore oil fields for $80 million.
  • Eni is investing $1 billion in Nigeria over the next three years and plans to increase crude production to over 300,000 b/d by 2003.
  • BG Group has made a significant discovery in Egypt's West Delta Deep Marine concession, which could lead to a liquefied natural gas export agreement.
  • Abu Dhabi's Adma-Opco has awarded a $260 million contract to ABB Lummus Global and NPCC to install a new gas gathering network and gas processing platform at the offshore Abu al-Bukhoosh field.
  • Foster Wheeler International has been awarded a $10 million contract to provide project management consultancy for the Abu al-Bukhoosh field project.
  • Nigeria is seeking debt relief from creditor nations and a possible increase in Opec crude output, which President Obasanjo discussed with UK and Italian leaders.

Statistics:

  • 70,000 b/d: Capacity of the GTL conversion plant to be constructed in Iran.
  • $1 billion: Amount of investment Eni plans to make in Nigeria over the next three years.
  • 300,000 b/d: Targeted crude production output in Nigeria by 2003.
  • 2.03 million b/d: Current crude production output of Opec member Nigeria.
  • $800 million: Value of the buy-back contract Shell awarded to Iran to boost output of the Nowruz and Soroush offshore oil fields.
  • $260 million: Value of the engineering, procurement, and construction contract awarded to ABB Lummus Global and NPCC for the Abu al-Bukhoosh field project.
  • $10 million: Value of the project management consultancy contract awarded to Foster Wheeler International for the Abu al-Bukhoosh field project.
  • $37 billion: Amount of debt Nigeria owes to creditor nations.

Sources:

  • Shell
  • Iran's NIOC and NPC
  • Hyundai Heavy Industries
  • Eni
  • BG Group
  • Abu Dhabi's Adma-Opco
  • ABB Lummus Global
  • NPCC
  • Foster Wheeler International
  • Reuters
  • Bloomberg News
  • Middle East Economic Digest (MIDEM)