Aus Issue 2 - Asset Management + Decom

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ASSET MANAGEMENT & DECOMMISSIONING LEGAL INNOVATION CONTRACT AWARDS DECOMMISSIONING EVENTS

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Welcome to the second issue of the OGV Energy Australia Magazine on the theme of ‘Asset Management and Decommissioning’

To recap from our first issue, OGV Group opened their Australian branch in Perth at the beginning of 2025. Our mission is to continue as a leading outlet for the latest news and insights from the energy sector through providing more of a global offering with a keen focus on Australia and APAC region.

A special thank you to Rotech Subsea for their overview of the last 30 years being the market leader for innovative Controlled Flow Excavation (CFE) and jet trenching technologies, and how they are preparing for their next pioneering adventure: Decommissioning in Australia. For more, please turn to our feature article on page 4.

We are delighted to showcase contributions in this month’s edition from Saturn Fluid Engineering, J+S Subsea, GQS, Elementz Digital, Bureau Veritas and many more. As always, this issue also provides a thorough review of the energy sector across Australia, the North Sea, Europe, the Middle East, Norway and the USA. You’ll also find insightful articles from Brodies LLP, Leyton, and project updates from the EIC.

We hope you enjoy our second issue of OGV Energy Australia!

30 years of innovative solutions

Rotech Subsea, the pioneer and leading provider of Controlled Flow Excavation (CFE) and suspended jet trenching technologies, is proudly celebrating its 30th anniversary. Fittingly, 2024 saw the business deliver a record year, achieving over 40% growth whilst growing its team and equipment fleet due to increasing global demand.

With a rich history of innovation and technological development, Rotech

Subsea is a perfect example of a business that has successfully evolved and adapted with changing market and client demands to remain at the forefront of the subsea sector. Following the high-profile sale of its first range of ‘T-shaped’ Mass Flow Excavation (MFE) Systems in 2011, Rotech returned to the market in 2015 following a period of non-compete, a phase Rotech employees coined ‘Rotech 2.0’. Over the next few years, Rotech’s research, development and engineering team introduced an entire suite of new tools, the RS range of excavators, which have become the market leaders in noncontact Controlled Flow Excavation (CFE).

The RS range was developed using the latest Computational Fluid Dynamics and Computer Aided Design techniques. The resulting tools deliver much more powerful and controllable

jets, and provide significant operational, efficiency and safety benefits. Noticeably shorter project execution times bring financial and environmental benefits to Rotech’s clients, and their equipment is in high demand from the US to the Far East.

With a larger range of tools, Rotech Subsea is now able to offer clients solutions across the entire project lifecycle, from precommissioning (route clearance, trenching), to IRM (de-burial, cable cutting, remedial burial), to decommissioning (de-burial, burial deepening, cutting, pipe recovery).

Global Business Development Director, Stephen Cochrane adds “the evolution of equipment from mass flow to controlled flow enabled us to offer a lot more to clients through our hybrid systems. Our excavators can cope with really soft soils to very hard materials, which really establishes us as a leader in the burial and deburial of subsea assets. In the

past we only really had one tool that tried to do everything, whereas now we have a series of tools and combinations, meaning we can offer a wide variety of tailored solutions to clients.”

Evolving With Innovation In Mind

Continuing to demonstrate its capability to innovate, Rotech added its unrivalled ‘RS3’ to its portfolio in 2023. According to Dr Donald Stewart, Rotech’s MD, “before the RS3 the maximum pressures available were of the order of 50 kPa. With the RS3 generating pressures up to 350 kPa we have opened up entirely new applications previously beyond the reach of non-contact methods.” Purposedesigned for excavating in harder soils, the innovation marked a significant enhancement compared to existing technologies on the market and significantly bolstered Rotech’s capabilities in the decommissioning space.

A Proven Track Record In Decommissioning

With over 75 decommissioning projects successfully completed, Rotech has a proven global track record. The Company’s roots in the sector go back to 2004, working for a major oil and gas client to excavate jacket legs to enable cutting operations. Fast forward 20 years and Rotech has successfully completed projects for over 45 clients in 10 different countries, operating in water depths as deep as 204 meters.

Most recently, Rotech completed a successful rock dump removal scope for a major oil and gas contractor in the UKCS. 50 m of rock dump was dispersed to expose the asset for cutting operations. With cemented rock dump up to 12 inches in size, this scope was far beyond the capabilities of a standard ROV type dredger. The client therefore specifically requested Rotech’s TRS2 CFE system, removing the rock in just 4 hours of operation.

Significant Demand Expected

Still in its infancy, the Australian decommissioning market represents a significant opportunity, with many aging assets approaching retirement age. Now reaching a pivotal point, the industry needs to rapidly prepare itself to meet the large influx of decommissioning work on the horizon. With clear regulatory frameworks and targets in place, Australia is poised to become one of the key decommissioning hotspots globally.

Having successfully completed numerous oil and gas project scopes, Rotech is no stranger to the Australian subsea sector. Combined with an established entity and equipment spreads based in-country in Taiwan, the business is well positioned to support this surging demand.

In what is already shaping up to be a busy 2025, Rotech is looking forward to continuing to support its current and future client base across the globe with safe and efficient excavation solutions. 

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Verlume wins Company of the Year (Under 50 Employees) Award

At a prestigious event in Aberdeen, Verlume won the award for Company of the Year (Under 50 Employees) at the Global Underwater Hub Subsea Expo Awards.

Headquartered in Aberdeen with deployments of its products globally in world-first projects across North America, Europe and the UK, Verlume’s expertise is in subsea batteries and power management systems.

The company acts as a systems integrator, bringing together all relevant parts to make subsea power systems more reliable and efficient. An important part of its business model is remaining agnostic and flexible, meaning that it can work with any power input. 

TWMA Breaks Ground on Unrivalled Drilling Waste Management Facility

TWMA*, a global leader in drilling waste management, has officially broken ground on its latest facility in Habshan, Abu Dhabi. The milestone marks the beginning of construction for the world’s most advanced, self-sustainable drilling waste management site.

Scheduled for completion later this year, the cutting-edge facility is expected to be operational by summer 2025. Designed to streamline the management, transportation, and treatment of drill cuttings, the site will have the capacity to process up to 300 tonnes of drill cuttings per day. Additionally, it will recover up to one barrel of oil or diesel per tonne processed, enabling self-sufficiency through recovered fluids. 

Subsurface, well engineering and well management specialist, Elemental Energies, and geothermal drilling services contractor, Iceland Drilling Company (Iceland Drilling), have announced a joint venture (JV) providing integrated well engineering and project delivery solutions for the global geothermal market.

The JV brings together Iceland Drilling’s expertise in high-temperature geothermal drilling, through their fleet of modern hydraulic drilling rigs, with Elemental Energies’ subsurface and well engineering capabilities. With over 70 years of experience and several hundred geothermal wells delivered worldwide, Iceland Drilling is a global leader in the delivery of geothermal well construction. Elemental Energies has a proven track record in well management spanning over 35 years with extensive experience supporting global geothermal projects.. 

Industry invited to shape the future for skills in engineering construction

Elemental Energies and Iceland Drilling launch global geothermal joint venture Draeger UK secures contract extension with INEOS O&P UK, Grangemouth Unique Group Appoints Fraser Moonie as Global Commercial and Strategy Development Director

The Engineering Construction Industry Training Board (ECITB) is calling on all engineering construction employers, their workforce, training organisations, Government partners and asset owners to get involved in shaping the new training and development strategy for the industry.

2025 is the final year of the current ECITB Leading Industry Learning strategy. The ECITB Board, which comprises industry representatives and independent experts, has developed a draft strategic plan for 2026-30.

It is now seeking the views of industry on the proposed plan and is looking to hold discussions with partners and customers to refine and hone this strategy.

There will be a series of consultation workshops across all regions and nations during April and May 2025. Organisations will also be able to provide their views via an online survey. 

Draeger Safety UK Ltd, a global leader in the field of safety technology headquartered in Blyth in North East England, has secured a contract extension with INEOS O&P UK.

A direct continuation of the existing work scope, the indirect services agreement, which will run until 2029, covers the provision and maintenance of Portable Gas Detection and Rental Robot services to support the company’s operations.

Draeger UK has been working with INEOS O&P UK since 2018, supplying safety critical services and helping to maintain the company’s operations.

Under the updated agreement, Draeger UK will supply new products for use at the site, including ConHub for the individual monitoring of personnel on site, with visibility of real time gas readings.. 

Unique Group, global leaders in subsea technologies and engineering, has appointed Fraser Moonie as their Global Commercial & Strategy Development Director – Survey Equipment. Fraser will play a key role in leading and executing the strategic commercial initiatives for the Survey Equipment division across Unique Group’s global locations.

In his new role, Fraser will be responsible for ensuring that Survey Equipment’s commercial strategy aligns with Unique Group’s overarching corporate goals. His focus will be on driving revenue growth, enhancing market share, and collaborating closely with senior management and cross-functional teams to ensure a cohesive and effective commercial strategy execution. 

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Australia Energy Review

By Tsvetana Paraskova

Australia set a new annual record in LNG exports last year, while it continues to develop battery storage, green hydrogen, and green aluminium projects.

LNG Shipments Hit Record High in 2024

Liquefied natural gas shipments from Australia, the world’s third-largest LNG exporter after the United States and Qatar, set in 2024 a new annual record of 82.0 million tonnes per annum (Mtpa), up from 81.1 Mtpa in 2023. Last year’s shipments beat the previous record of 81.3 Mt shipped during 2022, Australian-based energy advisory firm EnergyQuest said in a monthly report.

The 2024 revenue of AUS$67.7 billion (US$42.5 billion) was less than the record AUS$90.3 billion in 2022 and AUS$74.3 billion during 2023, chiefly due to lower LNG prices, which was countered somewhat by a falling Australian dollar compared to the US dollar, EnergyQuest said in its analysis.

LNG exports in December 2024 jumped from November as the heating season in the northern hemisphere began. At 85.7 Mtpa on

an annualised basis, Australia’s shipments were higher than the 80.9 Mtpa exported in November 2024 and represented 97.3 percent of the country’s nameplate LNG export capacity, according to data compiled by EnergyQuest.

Outlook on Domestic Gas Supply

The near-term outlook for Western Australia’s gas supply has strengthened compared to last year’s report, with domestic gas supply expected to exceed consumption through 2027, said the Australian Energy Market Operator (AEMO), which manages electricity and gas systems and markets across Australia.

AEMO’s latest WA Gas Statement of Opportunities (GSOO) revealed the adequacy of gas supplies and identified investment opportunities from now to 2034, drawing on data from industry participants and public sources.

AEMO interim Executive General Manager WA, Nicola Falcon, said that gas supply is expected to increase from existing facilities and new supply is being brought online from advanced projects. These include Chevron-operated Wheatstone, Karratha Gas Plant and Pluto projects by Woodside Energy, along with new domestic supply expected from Woodside’s Scarborough Energy Project, expected to commence 2026, and West Erregulla by Strike Energy, commencing in 2027.

“The period from 2028 is subject to the most uncertainty. A supply gap in the domestic gas market could materialise if projects are unable to be accelerated to match consumption, or consumption is greater than forecast,” Falcon said.

Gas is expected to support the reliability and security of the electricity sector through the transition to a net-zero emissions future.

“In future, gas storage is likely to be used more frequently and we will need more flexibility in daily domestic gas supply to match this increasingly seasonal and peaky gas demand,” she added.

On the East Coast, the Australian Competition and Consumer Commission (ACCC) expects gas surplus on the immediate horizon. However, the region needs longer-term regulatory certainty to avoid future shortfalls in gas supply, ACCC warned in its latest gas inquiry report.

While the short-term outlook for Australia’s east coast gas market has slightly improved, with a surplus forecast in both 2025 and 2026, domestic gas supply is in structural decline and future investment is uncertain. The southern states are already facing seasonal shortfalls and are dependent on gas being transported from Queensland, the commission said.

LNG Projects Advancing

Meanwhile, companies are progressing gas and LNG projects to boost output and exports.

At the end of 2024, Woodside said that the Scarborough Energy Project had passed another significant milestone with the final Pluto Train 2 modules arriving at the Pluto LNG facility in Karratha, Western Australia.

The successful completion of the Pluto Train 2 module program advances the Scarborough Energy Project towards the targeted delivery of first LNG in 2026, the company added.

Once operational, Pluto Train 2 will have capacity to process approximately 5 million tonnes of LNG per annum. The expanded Pluto facility includes new domestic gas infrastructure and will have the capacity to supply up to 225 terajoules per day to the Western Australian market.

Woodside and the North West Shelf Joint Venture also welcomed the Western Australian Government’s decision to provide environmental approval for the North West Shelf Project Extension.

After six years of assessment and appeals, this is a critical step in the approvals process to underpin the ongoing operation of the North West Shelf Project so it can continue to deliver a reliable supply of energy locally

and globally. The State’s decision re-launches the Federal environmental approvals process, which was paused while appeals were being considered.

In addition, Woodside and Chevron have agreed to an asset swap under which Woodside will acquire Chevron’s interest in the North West Shelf (NWS) Project, the NWS Oil Project, and the Angel Carbon Capture and Storage (CCS) Project, and transfer all of its interest in both the Wheatstone and JulimarBrunello projects to Chevron.

“This transaction simplifies our portfolio, improving our focus and efficiency by consolidating our position in our operated LNG assets,” said Woodside CEO Meg O’Neill.

“It is immediately cash flow accretive and includes a cash payment upon both execution and completion.”

Santos has signed a binding long-term LNG Supply and Purchase Agreement (SPA) with Japanese gas utility Shizuoka Gas Co. Ltd. to provide LNG from Santos’ portfolio of LNG assets. The long-term agreement will supply between 0.35 and 0.4 million tonnes per annum of LNG at plateau. The contract term is 12 years, commencing in 2032 on Delivered Ex-Ship (DES) terms.

Green Energy Push

Investments in battery storage within Australia’s National Electricity Market (NEM) have become increasingly profitable thanks to higher power price volatility and changing market dynamics, consultancy Wood Mackenzie said in a recent report.

Australia has a massive pipeline of 60 gigawatts (GW) of projects under development representing more than AU$80 billion (US$50 billion) of potential investment, according to WoodMac.

As the world’s second largest producer of both bauxite and alumina with the best access to solar and wind resources in the developed world

“Our analysis of both the base case and scenarios with increased price volatility indicates that investment returns for 4-hour battery systems will exceed 10% in the top three National Electricity Market (NEM) regions: Queensland (QLD), Victoria (VIC), and New South Wales (NSW),” said Max Whiteman, Research Associate, Asia Pacific Power & Renewables at Wood Mackenzie.

“This underscores the profitability of battery storage across various market conditions.”

WoodMac projects that internal rates of return (IRRs) for 4-hour battery systems would range from 13 percent to 15 percent, highlighting their viability in a volatile energy market.

Moreover, the planned coal retirements in Australia create more opportunities for battery storage projects, the consultancy noted.

to aluminium smelters transitioning to renewable energy by 2036. Smelters will receive incentives for every tonne of clean aluminium produced over a decade, boosting confidence and investment in local facilities, the government said.

The Clean Energy Council welcomed the initiative, saying it would help retain aluminium manufacturing on Aussie shores and lay the foundations for future investment in clean energy technologies and local jobs.

“As the world’s second largest producer of both bauxite and alumina with the best access to solar and wind resources in the developed world, Australia is ideally positioned to be the long term home of clean aluminium production,” said Kane Thornton, Clean Energy Council Chief Executive.

In green energy project news, Lumea, part of the Transgrid Group, says it is progressing works to connect one of the world’s biggest batteries to the grid, delivering renewable, affordable, reliable energy to electricity consumers in Victoria.

The Melbourne Renewable Energy Hub (MREH) is expected to be operational by the end of 2025 when it will start storing excess rooftop solar and surplus energy from the grid, providing extra power to meet Victoria’s growing demand.

Hydrogen technology and solutions provider Plug Power Inc has announced a purchase agreement with Allied Green Ammonia (AGA) under which Plug will supply 3 GW of electrolyser capacity to AGA’s green hydrogen-to-ammonia plant, currently under development in Australia.

“The agreement underscores Santos’ commitment to providing reliable, cost competitive energy within the Asia-Pacific region,” Santos managing director and CEO Kevin Gallagher said.

“Additionally, we look forward to future discussions on Santos’ carbon capture and storage, and synthetic gas opportunities.”

In January 2025, the Australian Government announced AUS$2 billion in production credits for the domestic aluminium industry, aiming to position it as a cornerstone of the nation’s economic and green future.

Australia, the world’s sixth largest aluminium producer, is introducing the Green Aluminium Production Credit offering targeted support

In a significant step towards a clean energy future, AGA will install a 4.5 GW solar plant to power the Plug electrolysers with zero emission clean electricity. The green hydrogen produced will be used to make green ammonia.

Upon a positive Final Investment Decision (FID) expected by Q2 2025, Plug will launch the manufacturing and delivery of Proton Exchange Membrane (PEM) electrolysers starting in the first quarter of 2027. 

UK North Sea Energy Review

By Tsvetana Paraskova

The energy skills passport, the overturning of the government consent for two major new oil and gas projects in the North Sea, and production and project updates were the highlights of the UK North Sea oil and gas sector over the past few weeks.

Offshore Energies UK (OEUK) and RenewableUK, supported by the UK and Scottish Governments, have launched the first stage of a new website to help workers move around the UK’s energy mix, including oil and gas and offshore wind.

The Energy Skills Passport website is a tool which will enable workers to easily identify which qualifications, such as technical and safety standards, are needed for specific roles in oil and gas and offshore wind, as well as mapping out potential future career pathways within the energy sector. Research commissioned by OEUK has shown that 90 percent of oil and gas workers have skills which can also be applied to renewable energy.

“To grow our world-class industry as fast as possible, we need the valuable experience that oil and gas workers can bring,” said Jane Cooper, RenewableUK’s Executive Director of Offshore Wind.

Offshore Energies UK’s Director of Supply Chain & People, Katy Heidenreich commented:

“The UK’s offshore energy workforce has a proud heritage and continues to have high value jobs in oil and gas, which support a broad range of skills from engineering and construction to legal and commercial expertise. These skills are essential for the homegrown oil and gas the UK needs for decades to come together with the expansion in energy production we’ll need in future.”

In late January, the Court of Session in Edinburgh ruled that the government consent of two new oil and gas fields in the North Sea, Rosebank and Jackdaw, was unlawful as it did not account for the effect that burning the new oil and gas production would have on climate. The court upheld the legal challenge of environmental groups Uplift and Greenpeace against the government approval of the projects.

Despite the ruling, work on the fields’ development can continue while the operators apply again for consent.

Development of the projects can continue while new information is being gathered and new assessments made. However, the fields cannot produce oil and gas unless they receive consent at the end of the new development consent application process. Shell is developing the Jackdaw project while Equinor and Ithaca are developing the Rosebank oil project, with Equinor as operator.

of three to two that a local UK council’s decision to grant planning permission to an onshore oil project was unlawful because the environmental assessment for the project failed to assess the effect on climate of the combustion of the oil to be produced.

Ithaca Energy plc welcomed the ruling and is pleased with the outcome, which allows it to continue progressing the Rosebank project while awaiting new consents.

Equinor, as operator of the Rosebank project, remains confident that the project timeline remains on track, with the start-up still planned in 2026/2027, Ithaca said.

The Rosebank development is expected to lead to £8.5 billion of total direct investment, of which £6.6 billion is likely to be invested in UK-based businesses, Equinor’s partner in the project said.

“Ithaca Energy, together with Equinor as Operator, will continue to work closely with the Regulators and Department for Energy Security and Net Zero (DESNZ) to progress the Rosebank project,” Ithaca said.

We have spent more than £800 million since the regulator approved Jackdaw in 2022. Swift action is needed from the Government so that we and other North Sea operators can make decisions about vital UK energy infrastructure,”

The environmental legal challenge was made possible after the so-called Finch ruling of the Supreme Court in the summer of 2024. Back then, the Supreme Court held by a majority

“This includes submitting a downstream end user combustion emissions (‘scope 3’) assessment in full compliance with the Government’s new environmental guidance which is targeted to be published this spring.”

Shell, the developer of Jackdaw, said that the ruling “rightly allows work to progress on this nationally important energy project while new consents are sought.”

“We have spent more than £800 million since the regulator approved Jackdaw in 2022. Swift action is needed from the Government so that we and other North Sea operators can make decisions about vital UK energy infrastructure,” Shell added.

Photo by Steve McCaul

“When operational, Jackdaw would provide enough fuel to heat 1.4 million UK homes, at a time when older gas fields are reaching the end of their production and the UK is reliant on imported gas to meet its energy needs.”

Aberdeen & Grampian Chamber of Commerce has called on the UK Government to reduce the 78-percent tax burden on North Sea oil and gas producers as a key first step towards greater domestic energy security.

Prioritising domestic oil and gas would minimise global uncertainty with the US threats of tariffs on countries including China, Canada, and Mexico, the Chamber says.

“The UK’s response to a global energy crisis in 2022 ran contrary to all good sense,” said Aberdeen & Grampian Chief Executive Russell Borthwick.

“With the world on the brink of a trade war, we cannot afford to repeat these mistakes.”

Borthwick continued, “The smart response would be to remove the EPL sooner rather than later – protecting our domestic energy sector and ensuring we’re not putting the UK economy at a significant disadvantage in an increasingly uncertain global context.”

Harbour Energy guides for 2025 production of 450,000-475,000 boepd, materially higher than in 2024, reflecting a full year’s contribution from the Wintershall Dea portfolio and broadly stable production in the UK.

Harbour Energy expects free cash flow of around $1 billion this year, at Brent oil prices of $80 per barrel and European and UK natural gas prices of $13/mscf.

The Jocelyn South discovery in the UK is expected on-stream in Q1 2025, Harbour Energy said.

Serica Energy said in a trading update that the five-well drilling campaign at Triton is now halfway through and delivering excellent results, with the Gannet GE05 well performing ahead of expectations.

The company continues to be very active in screening a broad range of cash-generative and

UK ENERGY REVIEW

value accretive M&A opportunities in both the North Sea and other geographies, Serica added.

“While we continue to deliver value from our existing portfolio, we are also actively screening multiple M&A opportunities to grow and diversify our business,” Serica Energy’s chief executive Chris Cox stated.

Capricorn Energy is also evaluating M&A opportunities, the company said in its operational and trading update.

“We are currently evaluating M&A opportunities in the UK North Sea and in the MENA region against a strict set of strategic, financial and returns criteria, and look forward to updating the market on our efforts when appropriate,” said Randy Neely, chief executive at Capricorn PLC.

Serica Energy plc announced in January that the OFAC License and secondary sanctions assurance relating to the Rhum field have been extended by two months to 31 March 2025. Serica Energy, which owns 50 percent in the gas and condensate field Rhum in the UK North Sea, needs a US license because Iranian Oil Company has a 50-percent interest in Rhum. This extension is to allow the processing of the company’s application for a new long-term license to be completed following the transition in US Administrations. The License and assurance permit certain US and US-owned or controlled entities, and all non-US entities, to continue providing goods, services and support to the Rhum field.

UK Oil & Gas PLC has announced that a workover campaign has achieved a significant increase in the Horndean field’s production and resultant revenues.

Based upon the improved post-workover performance, the operator, Star Energy, now forecasts 2025 annual field production to be 61,195 barrels compared to 49,402 barrels produced in 2024. This would be a 24-percent increase if achieved. The forecast assumes an average daily rate of 168 bopd. 

Europe Energy Review

By Tsvetana Paraskova

New licences and drilling updates offshore Norway, exploration and production news in the Mediterranean, energy storage opportunities in the UK, and milestones in renewable power generation and hydrogen featured in Europe’s energy sector in the past month.

Oil & Gas

Norwayawarded53newproductionlicences in its 2024 licensing round for acreage in developed areas, the so-called APA licensing round.

Of the 53 production licenses offered in APA 2024, 33 are located in the North Sea, 19 in the Norwegian Sea, and one in the Barents Sea. As many as 20 oil companies were offered parts in one or more of these licences and 13 companies were offered one or more operatorships.

In the APA round, Norwegian major Equinor was awarded 20 licences in the North Sea, six in the Norwegian Sea, and one in the Barents Sea. The company is the operator of seven of the licences and a partner in 20 others.

Norwegian oil and gas operator DNO ASA said in February that it plans to drill between four (firm) and six North Sea exploration wells in 2025. Meanwhile, complementing its ongoing exploration activities, DNO was awarded 13 new licences in Norway’s 2024 APA licensing round, including four operatorships.

“In Norway, we are applying a similar ‘can-do’ spirit to get our barrels from a string of recent discoveries out of the ground and into the market and do so faster than is the norm here,” DNO’s Executive Chairman Bijan MossavarRahmani said.

The company has raised its planned 2025 operational spend to US$750 million, driven by increased North Sea activity.

In the south of Europe, ExxonMobil and its partner offshore Cyprus, QatarEnergy, in January started drilling for gas in an exploration block in the Cyprus exclusive economic zone, the President of Cyprus, Nikos Christodoulides, said.

The U.S. supermajor and Qatar’s state energy giant launched drilling activities in Block 5, Christodoulides wrote on X.

“Cyprus progresses exploration activities, aiming to be an alternative and reliable source of Natural Gas for the EU,” the Cypriot president added.

Cyprus has been hoping that its waters could hold giant natural gas resources, similar to the ones recently discovered in the Eastern Mediterranean offshore Egypt and Israel.

The other U.S. supermajor, Chevron, started oil production at its Future Growth Project (FGP) located at the Tengiz oil field in Kazakhstan. The expansion project aims to increase crude oil production at Tengiz, Kazakhstan’s largest oil field, by 260,000 barrels per day at full capacity.

In Germany, bp is seeking potential buyers for its refinery in Gelsenkirchen and DHC Solvent Chemie GmbH in Mülheim an der Ruhr.

BP Europa SE in early February announced its intention to market its Ruhr Oel GmbH –BP Gelsenkirchen operation in Germany for potential sale, with the marketing process for a suitable buyer beginning immediately and sales agreements targeted for 2025.

“bp needs to continually manage its global portfolio as we position to grow as a simpler, more focused, higher-value company,” Emma Delaney, EVP, customers & products, said.

“After a thorough review, we have concluded that a new owner would be better suited for the site to take it forward. We are convinced that the refinery can unlock its full potential under new ownership.”

Low-Carbon Energy

The government is forecast to miss its revised Clean Power 2030 targets for offshore wind, onshore wind, and solar PV by a combined 32 gigawatts (GW), new forecasts from Cornwall Insight showed.

Solar PV is set for the biggest underperformance, reaching 29 GW compared to the 45-47 GW government target—a shortfall of 16 GW. Despite the underperformance, Cornwall Insight’s forecast still represents a 70-percent surge in solar PV compared to the 17 GW currently installed.

Although onshore wind has been boosted by changes in policy, growth is expected to be 10 GW short of the 27-29 GW goal as planning issues continue to hamper progress of projects at the scale needed.

Offshore wind comes closest to the target, falling just 6 GW short of the 43-50 GW goal. Despite cost inflation issues, the sector has received consistent support through successive Contract for Difference allocation rounds, according to Cornwall Insight.

“Renewables are set for substantial growth over the next five years, as the country strives to meet its clean power ambitions,” said Tom Musker, Modelling Manager, at Cornwall Insight.

Recommendations include incentivising electrolysis to happen at the time and place when electricity is cheapest, and removing barriers to enable hydrogen producers to co-locate their projects with renewable energy generators which already have planning consent.

In a separate report, RenewableUK recommended actions and policy measures to encourage more battery and green hydrogen projects to “co-locate” with offshore wind farms. Proposed measures include reforming the Contracts for Difference (CfD) auctions to encourage the co-location of energy storage and offshore wind, by enabling new metering arrangements and interactions with the Hydrogen Production Business Model which supports new projects. Another major hurdle could be overcome if the government improves the efficiency of the planning system by enabling developers to seek consent for offshore wind and energy storage projects simultaneously rather than separately, RenewableUK said.

In company and project news, Statkraft has secured planning consent for Kitland Solar Farm, a new 39.9 MW scheme north of Langford, in North Somerset, which will power the equivalent of around 13,000 homes. To maximise the renewable energy potential of the development, the consented plans also include the opportunity for a Battery Energy Storage System (BESS), Statkraft said.

Apatura has secured planning consent for a new 150 MW Battery Energy Storage System in Paisley, Renfrewshire, just 17 miles southwest of Glasgow. The latest approval increases Apatura’s BESS portfolio to more than 1 GW, while the new BESS site is the sixth BESS that Apatura has received planning consent for in the last 14 months, the company said.

“Renewables are set for substantial growth over the next five years, as the country strives to meet its clean power ambitions,”

“However, despite promising progress, the gap between this growth and government targets underscores the urgent need to address both the operational and investment barriers slowing renewables growth.”

Trade groups RenewableUK and Hydrogen UK have launched a joint report aimed at lowering hydrogen production costs to drive demand.

The recommendations of the associations – if fully implemented – could take the cost of hydrogen from £241 per megawatt hour (MWh), which was achieved in the first Hydrogen Allocation Round in 2023, to less than £100/MWh.

Following local feedback, Low Carbon has confirmed a further reduction of more than 25 percent in the number of turbines proposed for the High Brenfield project, an onshore wind farm project in Ardrishaig, Scotland.

Amberside Energy has sold to Elgin its development business which includes a pipeline of over 1 GW of solar and battery assets in the UK.

“This is a great strategic acquisition to grow our pipeline across the UK,” said Ronan Kilduff, CEO of Elgin.

The equal joint owners of Inch Cape Offshore Wind Farm, ESB and Red Rock Renewables,

have announced that the Scottish project has reached financial close, raising more than £3.5 billion of funding. The 1-GW offshore wind farm, located 15 kilometres off the Angus coast in the North Sea, will now progress into its offshore construction phase.

Haventus, owner of the under-construction Ardersier Energy Transition Facility near Inverness, Scotland, has been selected by Cerulean Winds, the lead developer of more than 3 GW UK floating offshore wind, as its chosen deployment port.

Cerulean’s commitment to using the facility marks a major step toward realising the UK and Scottish governments’ vision of creating a world-leading floating offshore wind (FLOW) industrial base, Haventus said.

Innova have received planning consent for their Almholme Energy Hub project by Doncaster Council. With a 1025MW/2050MWh energy storage capacity and a 49.9 MW solar capacity, this is the second largest battery storage project in the UK to gain planning consent to date. The site will be able to store enough energy to power over 37,000 homes in Doncaster for an entire week and will generate enough electricity to power over 15,000 homes in Doncaster every year.

Polish refiner ORLEN and Northland Power in early February began installing the foundations for Poland’s first offshore wind farm in the Baltic Sea.

The first two of a total of 78 monopiles have already been installed. These steel structures will support 15 MW wind turbines. With a total capacity of 1.2 GW, the Baltic Power wind farm is expected to commence operations in 2026, delivering clean, reliable electricity capable of powering over 1.5 million Polish households.

bp and Iberdrola’s joint venture launched construction work on Spain’s largest green hydrogen project of 25 MW. The next milestone of the project will be the reception and installation of the first main equipment, including the electrolysers, which is expected to take place in the second half of 2025.

In later phases of the project, the green hydrogen produced could also be used in hardto-decarbonise key industries in the region of Valencia such as ceramics, chemicals, and heavy transport.

Wind turbine manufacturer ENERCON, a subsidiary of Salzgitter AG Ilsenburger Grobblech GmbH, and TM Group company SMB Schönebecker Maschinenbau GmbH have teamed up to produce a tower using loweremissions steel which is entirely recyclable. 

USA Energy Review

By Tsvetana Paraskova

The U-turn in US energy policy under President Donald Trump and the repercussions of these sweeping changes and proposed tariffs on Canada and Mexico grabbed headlines in the US oil and gas industry at the start of the year.

While US oil and gas producers and refiners welcomed the efforts to boost output, accelerate energy infrastructure development, and expedite LNG export permits, they were far more cautious and called for dialogue regarding tariffs on imports from Canada and Mexico, although they stopped short of criticizing the new president’s trade policy.

Trump’s Executive Orders Look to Unleash American Energy

President Trump signed dozens of executive orders and other presidential actions on his first day back in the White House. Of these, several have direct relevance to the US energy industry.

The President declared a national energy emergency, which gives the Administration more powers to expedite approvals for infrastructure for fossil fuels, biofuels, nuclear power, and critical minerals, but not solar and wind.

The declaration includes measures to expedite the delivery of energy infrastructure, emergency approvals by agencies “to facilitate the identification, leasing, siting, production, transportation, refining, and generation of domestic energy resources, including, but not limited to, on Federal lands.”

In the executive order, the President’s new energy policy is to “encourage energy exploration and production on Federal lands and waters, including on the Outer Continental Shelf, in order to meet the needs of our citizens and solidify the United States as a global energy leader long into the future.”

The new policy also includes the elimination of the “electric vehicle (EV) mandate” and the promotion of true consumer choice. President Trump reversed on Day 1 most of

Biden’s energy and climate policies, signing a series of executive orders to boost oil and gas production, expand areas for drilling, withdraw from the Paris Agreement (again), halt offshore wind permits until a review into the economics is made, eliminate EV incentives and mandates, and promote true consumer choice.

The American Petroleum Institute (API) applauded the energy executive orders on President Trump’s Day One.

“Directing regulators to expand access to resources, lift the LNG pause, streamline permitting processes and roll back heavyhanded vehicle mandates will help deliver a stronger, more prosperous energy future for all Americans,” API President and CEO Mike Sommers said.

“This is a new day for American energy, and we applaud President Trump for moving swiftly to chart a new path where U.S. oil and natural gas are embraced, not restricted.”

The biggest US oil lobby also welcomed the reintroduction of bipartisan legislation to encourage investments in American energy.

The proposed bipartisan Promoting Domestic Energy Production Act of 2025 fixes a tax liability for companies that use accelerated cost-recovery of intangible drilling costs (IDCs). This allows producers to receive the same treatment for IDCs under the corporate

by

Photo

Tom Fisk

alternative minimum tax (CAMT) as under the ordinary corporate tax rate.

“American voters sent a clear message in support of U.S. energy leadership, and this bipartisan legislation is critical to supporting the production of our nation’s abundant oil and natural gas resources,” API Vice President of Corporate Policy Aaron Padilla said.

American Fuel & Petrochemical Manufacturers (AFPM) President and CEO Chet Thompson welcomed the administration’s move to protect consumer choice and end petrol car ban policies across the United States.

“Leadership from the Trump-Vance administration is critical to protecting consumer choice and stopping federal and state efforts to phase out and effectively ban internal combustion engine vehicles and American-made liquid fuels,” Thompson said.

“We look forward to working with the administration and Congress on policies that protect consumer choice, further improve vehicle and fuel efficiency, and advance U.S. energy security.”

Tariff Threats Spook Markets and US Energy Producers

As promised on the campaign trail and in his inaugural address, President Trump announced tariffs on all imports from Canada, Mexico, and China to have them help tackle the extraordinary threat posed by illegal aliens and drugs, including deadly fentanyl.

Under the plan, Canada and Mexico goods would be taxed with 25 percent and Chinese imports with 10 percent. Canadian energy exports to the US would be taxes with a lower, 10-percent, rate.

The tariffs on China went into force on 4 February 2025, to which Beijing responded with tariffs on US energy and farm equipment, among others. China imposed a 15-percent tariff on coal and LNG imports from the US and 10 percent on US crude oil.

The measures against Canada and Mexico were paused until March 4 after the two US neighbors agreed to take immediate steps to address the immigrant and illegal drugs flows. During the pause the US is assessing whether these steps constitute sufficient action to alleviate the crisis.

The announcement of tariffs on the North American trade partners and on the world’s second-largest economy, China, rattled global markets in early February, sending equities and cryptocurrencies lower.

US producers and refiners pointed out in statements that Canada and Mexico provide most of the heavy crude that US refiners in the Midwest and the Gulf Coast need.

“Energy markets are highly integrated, and free and fair trade across our borders is critical for delivering affordable, reliable energy to U.S. consumers,” API President and CEO Mike Sommers said.

“We will continue to work with the Trump administration on full exclusions that protect energy affordability for consumers, expand the nation’s energy advantage and support American jobs.”

Although the US is the world’s largest oil producer, US refineries—primarily in the Midwest—rely on Canadian crude to produce the gasoline, diesel, and jet fuel that’s critical for transportation, agriculture, and American consumers, API said.

The US is the largest market for Canadian crude oil exports and Mexico is the top destination for US refined product exports. US oil and natural gas exports to China totaled more than $14.4 billion in 2023 and are critical to reducing our trade deficit, the institute noted.

AFPM, the trade body of US refiners and petrochemical manufacturers, expressed hopes for quick resolution to the tariff threat, with CEO Thompson saying that “American refiners depend on crude oil from Canada and Mexico to produce the affordable, reliable fuels consumers count on every day.”

Asia and Europe, where refiners would benefit from higher and diversified supply.

US Upstream Mergers Hit $105 Billion in 2024

Last year saw $105 billion worth of US upstream oil and gas deals, the third highest total tracked by Enverus.

The value of the deals announced in 2024 trailed only behind a record-setting $192 billion in 2023 and just under the $108 billion booked in 2014, Enverus Intelligence Research (EIR) said.

However, mergers and acquisitions (M&A) activity tumbled in the latter half of 2024 with $9.6 billion of upstream deals recorded in the fourth quarter, which marked the fourth consecutive decline in quarterly value, according to Enverus tracking.

We look forward to working with the administration and Congress on policies that protect consumer choice, further improve vehicle and fuel efficiency, and advance U.S. energy security.

“Some regions in our country also rely on Canadian refined products, like gasoline, diesel and heating oil. We are hopeful a resolution can be quickly reached with our North American neighbors so that crude oil, refined products and petrochemicals are removed from the tariff schedule before consumers feel the impact,” Thompson added.

Analysts say that the tariffs would further reduce the already falling profitability of US refiners, who were reeling from declining margins even before the tariff announcement. If Canada and Mexico’s oil is taxed, the large exporters to the US could re-direct some of their oil flows to other countries, including

The Permian continued to lead deals, but the top US-producing oil basin has also become the most challenging in terms of available deals at reasonable prices, according to Enverus.

Buyers looking beyond the Permian are likely to consider a wide range of options, including more mature, established areas like the Williston Basin and Eagle Ford and emerging opportunities like the liquids window of the Utica, the intelligence company said.

“Deal value and volume continued to drop in the final quarter of 2024 from its peak at the end of 2023 as buyers grappled with fewer M&A targets to pursue. There are also quite a few larger E&Ps working to integrate their previous deals before returning to market to acquire more,” said Andrew Dittmar, principal analyst at EIR.

“Increased volatility in oil prices may have also deterred some buyers, while there is rising enthusiasm for gas and gas-weighted assets to feed burgeoning demand from LNG and data centers.” 

Middle East Energy Review

By Tsvetana Paraskova

Global oil demand is set to grow by 1.4 million barrels per day (bpd) in each of 2025 and 2026, according to OPEC.

bbl to US$3.90/bbl over the benchmark – the highest level since December 2023 and the largest monthly increase since August 2022.

OPEC’s latest oil demand and economic growth forecasts, the hike of Saudi oil prices to Asia, and various diversification projects of the main national oil companies in the Middle East featured in the region’s energy sector in the past month.

OPEC Continues to Expect Robust Oil Demand Growth

OPEC, led by the major oil producers in the Middle East, continues to see healthy global oil demand growth for this year and next, while it noted that the “impact of US trade policy on global macroeconomic growth remains to be seen.”

In its Monthly Oil Market Report for February, the organization left its oil demand and world economic growth forecasts unchanged from the previous month.

The world economic growth forecasts remain unchanged at 3.1 percent for 2025 and 3.2 percent for 2026, and the US growth forecast is unchanged at 2.4 percent for 2025 and 2.3 percent for 2026.

Demand growth this year is expected to be driven by transportation fuels on the back of strong air travel demand and healthy road mobility. Support is also expected to come from the industrial, construction and agricultural sectors in non-OECD countries, according to the organization.

Liquids supply from producers outside the OPEC+ pact is expected to rise by 1 million bpd each in 2025 and 2026, with the US, Brazil, Canada, and Norway the key supply growth drivers, OPEC said.

Saudi Arabia Hikes Oil Prices To Asia

Saudi Aramco, the state oil giant, raised its official selling prices (OSPs) for crude loading for Asia in March by more than expected and by the most since August 2022, as the Middle Eastern benchmark prices rallied amid lower availability of Russian and Iranian oil for Asia.

As a result of strong Middle Eastern prices –against which Middle Eastern supply to Asia is priced – Saudi Arabia hiked its OSPs for all grades and to all regions for March loadings. The price of Aramco’s flagship Arab Light grade into Asia was increased by US$2.40/

Middle East’s Oman and Dubai prices and the physical market have been strong since the beginning of 2025 as U.S. sanctions are curtailing the available supply of oil from Russia and Iran to the Asian market.

Qatar Calls for Realistic Energy Transition

The world and all economies need a realistic energy transition with a diverse and balanced energy mix that takes into consideration each country’s economic growth plans, energy requirements, and environmental targets, said Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs and the President and CEO of QatarEnergy.

The rise in population and global middle class means that “we need more power, we need oil, we need gas, and we need more renewables to get a resilient energy mix for the long term. We need all resources on deck,” Al-Kaabi said at the Ministerial Plenary Session of the India Energy Week 2025 in New Delhi in early February.

“Demonizing energy producers does not help in solving our environmental problem, nor does it help in securing affordable energy supplies”, AlKaabi added.

UAE, Saudi Arabia Lead New Energy Diversification in Middle East

Several major Middle Eastern oil producers and their national oil companies (NOCs) are strategically positioning themselves to become manufacturing hubs and leaders in new energy markets, Ed Tockman, Senior Vice President & Head of MENA at Rystad Energy, wrote in a special insight in early February.

The Middle East will continue to play a key role in the global oil and gas markets, but it also aims to capture opportunities in the new low-carbon energy sector.

The result of the drive to diversification is an increasing divergence between the strategies of NOCs in the more forward-leaning countries, led by the UAE and Saudi Arabia, and, on a more regional level, Oman, and the more traditional petrostates, such as Kuwait and Qatar, where NOCs are primary focused on delivering operational results and revenues to the state, Tockman notes.

“The UAE and Saudi Arabia have emerged as strategic players in the global energy transition, with both ADNOC and Saudi Aramco recognizing that the future of energy will require more than just oil and gas,” the expert said.

While the UAE and Saudi Arabia and their NOCs lead the drive for diversification, other Middle East and North Africa (MENA) countries such as Kuwait, Qatar and others, especially in North Africa, remain largely focused on developing traditional oil and gas resources to maximize state revenues for the coming decades.

– coupled with its financial strength, human talent and strategic location, positions its NOCs at the forefront to lead in traditional oil and gas as well as new energy markets,” according to Rystad Energy.

One of these, Saudi Aramco, signed a nonbinding Heads of Terms, which envisages the formation of a minerals exploration and mining joint venture (JV) with Ma’aden in Saudi Arabia. The proposed JV would focus on energy transition minerals, including extracting lithium from high concentration deposits and advancing cost-effective direct lithium extraction (DLE) technologies. Commercial lithium production could potentially commence by 2027.

“We expect that this partnership will leverage the world’s leading upstream enterprise to apply significant low-cost advantages, industry experience, technological innovation, accumulated subsurface knowledge and an integrated supply chain ecosystem, with a view to meeting the Kingdom and potentially the world’s projected lithium demand,” said Nasir K. Al-Naimi, Aramco Upstream President.

The UAE and Saudi Arabia have emerged as strategic players in the global energy transition, with both ADNOC and Saudi Aramco recognizing that the future of energy will require more than just oil and gas

In the United Arab Emirates (UAE), ADNOC and AIQ announced the successful proof-ofconcept trial of ENERGYai, the world’s firstof-its-kind agentic artificial intelligence (AI) solution tailored for the energy sector. A 90day proof-of-concept trial demonstrated that ENERGYai’s agentic AI can deliver significant improvements in the pace and accuracy of upstream exploration through rapid, precise and detailed seismic survey analysis, alongside relevant, actionable insights to support production optimization at ADNOC’s existing wells, the Abu Dhabi’s energy giant said.

dioxide equivalent per barrel of oil equivalent (kgCO2e/boe), setting a benchmark among global oil fields. The field reached this milestone through optimized field development, deployment of digitalization, AI and advanced technologies to maximize efficiencies and minimize emissions.

ADNOC Gas has signed a 14-year sales and purchase agreement with Indian Oil Corporation Ltd (IndianOil) for the export of up to 1.2 million tonnes per annum (mtpa) of LNG to India’s largest integrated and diversified energy company. First deliveries are expected to begin in 2026 under the deal which is valued in the range of $7 billion to $9 billion over its 14-year term.

The MENA region’s “unique endowment of both traditional oil and gas resources and renewable energy potential – particularly solar and wind

ADNOC has also announced that its onshore Shah oil field has achieved an industry-leading carbon intensity of 0.1 kilograms of carbon

TA’ZIZ has announced an engineering, procurement and construction (EPC) contract award of $1.7 billion to SAMSUNG E&A for the construction of one of the world’s largest methanol plants in Al Ruwais Industrial City in the Al Dhafra region, Abu Dhabi. The 1.8 million tons per annum (mtpa) plant will be the first methanol production facility in the UAE. Upon completion in 2028, it will be powered by clean energy from the grid, making it one of the world’s most energy-efficient methanol plants, ADNOC said. 

Photo by Anoop VS

Norway Energy Review

By Tsvetana Paraskova

Norwegian natural gas production reached a record high in 2024 as Western Europe’s biggest oil and gas producer continued to award production licences to boost exploration and keep a high level of hydrocarbon production in the coming years.

Record High Gas Output

The Norwegian Offshore Directorate published in January its annual report, The Shelf in 2024, which showed that natural gas production offshore Norway is higher than ever, but continuous exploration and investments are required if Norway is to delay an anticipated decline in production going forward.

Norway’s gas production reached a recordhigh in 2024 and a total of 124 billion standard cubic metres of gas were sold last year, up from 122.8 billion cubic metres of gas sold in 2022.

“Since the transport of gas from Russia through Ukraine ended at year-end, gas from Norway has become even more important,” said Torgeir Stordal, director general of the Norwegian Offshore Directorate.

“Electricity exports are a hot topic these days. Energy content of our gas exports are nearly 100 times larger than net electricity export,” Stordal added.

Going forward, production is expected to remain at a stable, high level before a gradual decrease toward the end of the 2020s, the authority said.

Exploration activity offshore Norway also held at a high level last year. Although most of the discoveries were small, several of these are being considered for development tied back to existing fields.

“We’ve seen that even small discoveries can generate substantial values. Our analyses of exploration activity on the NCS also show that exploration is highly profitable for the community,” Stordal commented.

Investment levels continue to be relatively high, and operators are expected to submit a number of new development plans in the coming years.

More Investments and Exploration Needed to Offset Output Decline Later This Decade

Yet, more investment and exploration are needed to slow the expected decline in oil and gas production in the late 2020s.

“Exploration will need to take place close to infrastructure and in more frontier areas, in addition to more investments in fields, discoveries and infrastructure. Failure to invest will lead to rapid dismantling of the petroleum activities,” the Directorate says.

This year, investments are expected to rise by 2.5 percent from 2024. Significant activity and scarce capacity in parts of the supplier industry, a weakened Norwegian currency, and growth in costs have led to higher cost

and investment projections for 2024–2026 in particular, compared with what was presented at the end of 2023. Higher drilling costs per development well also contributes to a higher level of investment.

This year, exploration activity and exploration costs are expected to remain about the same as in 2024, the Directorate said.

In 2025, the Norwegian Offshore Directorate expects a total of about 40 exploration wells, where 20–25 will be in the North Sea, 10–12 in the Norwegian Sea, and 4–6 wells in the Barents Sea.

“Despite the high level of activity in the industry, new investment decisions will be necessary to maintain activity in the future,” it noted.

At the same time, emissions from offshore operations in Norway are coming down, and emissions per produced unit are expected to decline over the next few years despite the slight increase in production expected over the short term.

Emissions have been declining since 2015, mostly thanks to transitioning power solutions to power from shore.

One example of higher production with lower emissions is the giant Troll field in the North Sea. Troll produced record high volumes of natural gas in 2024, up by nearly 10 percent from the previous record set in 2022, the field’s operator Equinor said early this year.

“With record-high production in 2024, the Troll field confirms its position as a pillar of Europe’s energy security. The field contributes to a stable gas supply for millions of households and is important for European industry,” said Kjetil Hove, Equinor’s executive vice president for Exploration & Production Norway.

Norway Awards 53 New Production Licences

As oil and gas production rises, Norway aims to keep activity on the shelf high and it awarded 53 new production licences in the APA 2024 licensing round. These annual licensing rounds were introduced in 2003,

with the purpose of facilitating the discovery and extraction of profitable resources in mature areas, before existing infrastructure is shut down.

A total of 20 companies were offered parts in licences, or operatorships, including Equinor, Aker BP, ConocoPhillips, Harbour Energy Norge, OKEA, OMV, Sval Energi, Vår Energi, and Wellesley Petroleum.

“Continued development of the Norwegian continental shelf is important for employment, value creation, and the ripple effects of petroleum activites on the mainland going forward,” said Energy Minister Terje Aasland.

“We need new discoveries to ensure that Norway can remain a stable and predictable supplier of oil and gas to Europe. It is therefore very positive to see such great interest in new exploration areas.”

After the rift in the ruling coalition, the government instead outlined in early February new steps to reduce electricity bills and maintain control over Norway’s national energy resources.

The package includes introduction of a fixed price for Norwegian consumers and reduction of VAT on grid tariffs.

“Given the great instability in the European energy markets, the Government does not want Norway to align itself more closely to the European energy system by introducing the controversial market rules included in the Clean Energy Package. This also applies for the next parliamentary period,” the cabinet said.

We need new discoveries to ensure that Norway can remain a stable and predictable supplier of oil and gas to Europe.

Kalmar Ildstad, Director of licence management in the Norwegian Offshore Directorate, commented,

“This year’s awards show that the companies on the NCS are still very confident in their ability to make more discoveries near existing oil and gas infrastructure. This is important for further value creation.”

Norway’s Government Collapses amid Spat over EU Energy Policies

At the end of January the Norwegian government collapsed after the Centre Party, the junior coalition partner and a Eurosceptic party, quit the cabinet over disagreements about Norway adopting some of the EU energy policies.

While not a part of the European Union, Norway is a key EU partner and is party to many EU single market initiatives, including in electricity interconnection and power markets.

The departure of the junior coalition partner leaves the Labour Party, which has ruled since 2021, to govern alone the remaining eight months before the general election in September.

The Labour party was considering adopting some EU rules concerning renewable energy consumption, energy performance in buildings, and measures to boost overall energy efficiency.

The Government will also ask Norwegian power system operator Statnett to postpone planning for new subsea interconnectors to other countries until 2029.

Norway also plans to establish closer cooperation with its Nordic neighbours to counteract high, unstable prices and safeguard the Nordic power supply system.

Norway Sets New Record in Share of EVs Sales

While Norway looks to boost its hydrocarbon production, it continues to lead the world in terms of market share of new electric vehicle sales.

In 2024, Norway set a new record for EV sales share—electric vehicles accounted for 88.9 percent, up from 82.4 percent in 2023, according to data from the Norwegian Road Federation OFV.

The EV share of light commercial vehicle sales stood at 29.6 percent in 2024.

No car running on petrol or diesel made the top ten list of the most sold cars in Norway last year.

“We are confident this share will grow even further in 2025, the year we aim to reach our goal of 100 percent zero-emission vehicle sales nationwide,” said Christina Bu, Secretary General of The Norwegian EV Association.

In 2016, the Norwegian Parliament committed to a goal that all new cars sold in 2025 should be zero-emission vehicles—fully electric or hydrogen-powered.

Offshore Wind Project Advances

Ventyr, the alliance developing the Sørlige Nordsjø II (SNII) offshore wind project, signed in January a collaboration agreement with Ramboll as the FEED designer for the project. Ventyr and Ramboll will design the foundations for turbines ranging from 15 to 18 MW.

Sørlige Nordsjø II is expected to power more than 500,000 Norwegian households with electricity from the offshore wind project.

Ventyr is an alliance of Parkwind and Ingka Investments, supported by strategic partner NorSea Group. 

BRENT OIL PRICES

OVER THE YEARS

1 YEAR AGO

$86.16

Brent traded to its highest levels since November the previous year on the back of OPEC+ extending voluntary supply cuts. As well as this, the market was boosted as a result of Ukranian attacks on Russian refining capacity and lingering disruptions to oil flows through the Red Sea. The price in the second half of the year looked dependent on whether OPEC+ would continue with voluntary cuts.

5 YEARS AGO

$22.58

The price of oil sank to levels which had not been seen since 2002 as demand for crude collapsed amid the Coronavirus (COVID-19) pandemic. Demand for transport was hammered by grounded airlines and fewer cars on the road as countries brought in tougher measures to fight the outbreak. It was announced that people in the UK may only leave home to exercise once a day, travel to and from work, and when it’s “absolutely necessary.”

10 YEARS AGO

$57.88

Oil prices rose and shares fell after Saudi Arabia, the world’s biggest crude exporter, and its allies launched airstrikes on rebel targets in Yemen. Pressures on the oil price eased after it became clear there was no immediate threat to Middle East oil shipments but fears remained that Iran could be drawn into the conflict.

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Energy projects and business intelligence in the energy sector

The EIC delivers high-value market intelligence through its online energy project database, and via a global network of staff to provide qualified regional insight. Along with practical assistance and facilitation services, the EIC’s access to information keeps members one step ahead of the competition in a demanding global marketplace.

The EIC is the leading Trade Association providing dedicated services to help members understand, identify and pursue business opportunities globally.

It is renowned for excellence in the provision of services that unlock opportunities for its members, helping the supply chain to win business across the globe.

The EIC provides one of the most comprehensive sources of energy projects and business intelligence in the energy sector today.

TAYRONA BLOCK –SIRIUS DISCOVERY

The operator is set to start drilling the Buena Suerte-1 well in March. The well be drilled by the Noble Discover semi-submersible rig. Petrobras is advancing the conceptual design for the project which will likely comprise of a 117km long subsea pipeline to connect Sirius to shore.

GATO DO MATO OIL FIELD

A final investment decision on the project is expected in March/April 2025. Plans for Gato do Mato envisage the installation of a mid-sized FPSO with oil and gas processing capacities of 120,000b/d and 10.19MMcm/d (360MMcf/d).

The unit, which would have an oil storage capacity of 1.6 million barrels, would be linked to a total of 12 development wells, being five oil producers, four gas injectors and two water injectors, plus a spare slot.

LOWER ZAKUM – LONG TERM PHASE-1

ADNOC has selected Tecnicas Reunidas, NMDC Energy and Target Engineering as the successful contractors for three separate EPCI packages as part of the Lower Zakum oil field expansion under its P5 programme. The initiative aims to increase production by 150,000 barrels per day, targeting 5 million bpd by 2027.

NAHR BIN OMAR FIELD DEVELOPMENT AND FLARE GAS PROJECT

Basra Oil Company has signed two agreements with Halliburton to develop Nahr Bin Omar and Sinbad fields. Halliburton will build the technical and economic model to improve production of oil which currently stands at 45,000 b/d but could reach 300,000 b/d. The agreement will also look to invest in development of the associated gas which could be produced at a rate of 300MMcf/d. Basra Oil Company will remain operator while Halliburton will manage the surface and subsurface projects.

WASSANA REDEVELOPMENT PROJECT

The operator is continuing to move forward with FEED work in connection with a potential redevelopment of the field to commercialise the additional oil volumes discovered through appraisal and exploration drilling in 2023 and 2024. A final investment decision could be made at the start of Q2 2025.

MAROOMBA FIELD DEVELOPMENT

ID on the US$1.2bn development is to be issued in February 2025 as project financing by BW Energy nears completion. The FPSO would arrive the Maromba field in Q3 2027 ahead of first oil in Q1 2028. Orders for long lead items are to be placed by March 2025.

ZOHR GAS FIELD EXPANSION

Drilling operations are set to commence on the gas field. Saipem will be using the Saipem 10,000 drillship to drill two deepwater wells in the Zohr field.

VENUS 1-X OIL DISCOVERY

While the joint venture partners are progressing with the fast tracking the development studies for Venus, TotalEnergies has announced plans for the project’s FID to be postponed from 2025 to 2026. TotalEnergies remains committed to the basin and plans to drill two wells offshore Namibia, Marula and Olympe, by the end of 2025.

NEFERTARI GAS DISCOVERY

ExxonMobil Egypt (Upstream) Limited has successfully completed the drilling of the Nefertari 1 well in the North Marakia Block using the Valaris DS-9 drillship. Gas-bearing reservoirs were encountered, and ExxonMobil will proceed with further evaluation of the results. Preliminary estimates place the discovery size at 3Tcf to 5Tcf of gas.

SAUDI ARABIA

$2.4 billion

Saudi Aramco

JAFURAH FIELD DEVELOPMENT –PHASE 3

Baker Hughes has been awarded a gas technology contract for Jafurah Gas Field Expansion. The contract, awarded by Técnicas Reunidas, includes six gas compression trains, six propane compressors, and associated balance of plant and auxiliary systems.

KUDA-TASI AND JAHAL OIL DEVELOPMENT

Finder is looking to move forward with the project which is currently in the concept select phase which the company aims to complete by Q3 2025. Once completed the plans are to move into the FEED phase in Q4 2025.

KATMAI WEST SUBSEA TIE BACK

Talos has announced the discovery of commercial quantities of oil and gas at the Katmai West-2 well. The well is projected to produce approximately 15,000 to 20,000 barrels of oil equivalent per day. Talos plans to start production by the end of June.

Demand for Asset Management and Decommissioning Services Grows

By Tsvetana Paraskova

Asset management and asset integrity are top priorities for energy companies which seek operational excellence and at the same time safe and efficient operations. When assets reach their end of life, operators and project developers need to decommission these assets.

The decommissioning industry has been growing in recent years as many oil and gas fields mature and near their end-of-life operations.

Decommissioning activities represent multi-billion business opportunities in various regions, especially for companies in the supply chain and for firms looking to create innovative solutions to recycling the components used in energy installations.

Asset Management

Effective asset management solutions help the energy industry, as well as other asset-heavy industries such as manufacturing and infrastructure, to boost the reliability, safety, and efficiency in operations as demand for energy continues to grow and governments pay increasing attention to energy security.

Proper asset integrity management systems and practices assure that offshore rigs and turbines, onshore processing facilities, producing and refining assets, pipelines, and wind and solar plants operate smoothly and efficiently, and failures are prevented.

With safety, reliability, and efficiency in mind, demand for asset integrity management solutions is growing and is expected to continue rising in the coming decades.

Decommissioning Industry Growing

CODA has just celebrated three years of independently serving as Australia’s peak body for decommissioning. Over this period, CODA has grown to become an organisation of more than 130 partners, uniting industry stakeholders from across the entire supply chain. Together, the partners have worked to address key challenges, develop innovative solutions, and promote best practices in decommissioning.

CODA has partnered with the WA Government and industry to develop a Decommissioning Forward Outlook tool—a dynamic, interactive online tool that provides visibility into Australia’s offshore oil and gas infrastructure. Users can explore asset characteristics and details for fixed and floating facilities, subsea infrastructure, pipelines, and wells. The tool also offers detailed information on upcoming decommissioning workload and project timelines for offshore oil and gas projects in Australia.

CODA has also commissioned Deloitte for a study to explore the state of decommissioning in Australia and assess the opportunities and demand for skills for a thriving domestic decommissioning industry.

To best support the decommissioning industry to meet anticipated demand in the medium to long-term, the study concluded that there are six opportunities that are of high importance and urgency to move the industry forward in a sustainable and meaningful manner.

As assets mature and reach the end of operations, decommissioning should begin to ensure the safe removal, disposal, or recycling of the assets and infrastructure.

In recent years, the decommissioning industry has been growing globally, as well as in Australia.

The Australian government has Australia’s Offshore Resources Decommissioning Roadmap - a plan to create a domestic decommissioning industry.

Oil and gas titleholders will spend an estimated AUS$60 billion to decommission offshore infrastructure over the next 30 to 50 years. The roadmap shows how Australia can grow its decommissioning industry to maximise the benefits for the Australian economy and environment, and support a Future Made in Australia.

Australia aims to maximise the amount of decommissioning activity that happens domestically, improve the efficiency and transparency of planned decommissioning activities, and grow its industrial capability in decommissioning and materials management.

Research by the Centre of Decommissioning Australia (CODA), an independent initiative working with industry, government, and the community to create a collaborative and sustainable approach to decommissioning Australia’s aging oil and gas infrastructure, has shown that there is more than US$40billion of decommissioning work necessary over the coming 50 years in Australia’s offshore oil and gas industry alone – over half of which needs to start within the next decade. Topsides and substructures equivalent to 75 Eiffel Towers need to be decommissioned, while Australia also has a very significant quantity of onshore work associated with wells and process infrastructure.

These opportunities are 1) develop a consolidated view of upcoming decommissioning activity to enable more effective planning, data management and execution of activities, 2) bring the sector together for more industry-wide education, training, networking and solutioning, 3) determine a detailed view of critical capabilities and workforce management requirements against projected demand, 4) build local capability in critical gap areas to better manage upcoming demand, 5) drive rapid and impactful change through accelerated collaboration, and 6) redesign work based on workforce planning and supply considerations.

In Australia, the decommissioning industry is relatively nascent, which has led to a lower level of research capability in developing technologies for the sector than other countries with more mature practices, such as the UK, Norway, or the US, the Australian Academy of Technological Sciences & Engineering (ATSE) said in a December 2024 report on technologies and career opportunities associated with the decommissioning of Australian offshore oil and gas facilities.

But Australia has research strengths in marine science, contamination research, recycling research, and expertise in adjacent extractive industries such as minerals processing, which can be applied to oil and gas decommissioning, ATSE noted.

“It will be important that the research sector works closely with industry to understand current and emerging needs, and to harness the expertise in the current offshore oil and gas workforce,” the authors of the report wrote.

Australia could use the expertise and institutional knowledge of the offshore workforce to support decommissioning activities in the future, as well as for leadership and training.

“This is critical as tertiary and technical education providers are shifting away from areas such as petroleum engineering, and towards offerings in areas such as renewable energy,” ATSE said. 

Human market intelligence keeps unique trusted pair of hands on-point

.

The pace of change in our sector means it’s never been more important to uphold existing infrastructure and drive forward new energy developments, so we’ve made building strong relationships and staying ahead of the curve our business.

By building strong relationships inside and outside of our business, we continually identify key trends, technological breakthroughs, and challenges that will shape the future of subsea asset integrity software – and we’ve been doing it for longer than most.

Elementz represents the latest chapter of a unique corporate story that goes back to mid-1980s in the UK, then, in 1989 Elementz’

How does what is believed to be one of the oldest software systems in the world stay on point in delivering innovative services every single day? Relationships

forerunner [Coabis] landed in Australia, thanks to a partnership with Woodside that continues to deliver mutual benefit today.  In fact, some parts of the system were honed by one of our founders whilst he was aboard a vessel off the coast of Western Australia with Woodside.  Since then, the likes of Chevron, INPEX and others have joined the portfolio of clients we are proud to serve in Australia and New Zealand.

We are ready for a transformative period in the subsea industry and Australia sits front and centre in our plans.  We’re 100% dedicated to delivering the right solutions in the right places at the right times, tackling these challenges head on.  Elementz enhances the speed and quality of the entire integrity cycle by

prioritising the user, leveraging their expertise and delivering an offering that seamlessly integrates into a broader digital ecosystem, driving efficiency in subsea operations and solving real problems for customers.

Key to our Australian expansion has been the human market intelligence gained by regular face-to-face interactions, meaning we’ve been able to develop our products exactly in step with the needs of our Australian clients.

The world is changing but the fundamental planning, execution and reporting needs of the sector remain and, with our corporate DNA and focus on relationships, we are ready to write the next chapter together. 

Ian Smith, Elementz Head of Product

A leading hydraulics and fluid management specialist has set its sights on consolidating its presence in Australia as it fulfils ambitious growth plans.

Saturn Fluid Engineering Group is headquartered in Dundee and operates bases and facilities in Dubai, Canada and Australia. The company is committed to delivering integrated, dynamic and customer focused environmentally conscious solutions that solve problems by channelling a wealth of experience into thinking out of the box and working in step with clients’ individual operational needs to consistently exceed expectations.

In the emergent and flourishing Australian market, Saturn FE Pty Ltd’s operations are co-ordinated from Adelaide SA and Perth WA with hopes high that the current geographic footprint will soon expand to include the strategically important cities of Cairns and Sydney to support commercial marine and naval sustainment programmes.

The company’s global team of 50 is committed to delivering top-drawer fluid management services and innovative solutions to a growing number of clients from across critical markets

Saturn Fluid Engineering Expands Ambitious Growth Plans in Australia with Strategic Investments and Bespoke Solutions

including marine, decommissioning, mining, oil and gas, food and beverage, power generation and chemical supply/development sectors and naval defence which accounted more than 50% of total revenues in 2024. This is underscored by strong naval and defence sector credentials which mean that the Saturn team currently supports the UK naval fleet when in the UK or internationally and, with the creation of nimble, bespoke concept “Saturn in a box,” they can support clients in remote locations efficiently and effectively.

With around $1 million invested in establishing a footprint in Australia so far, another $3.1 million over the next two years will notably increase the progressive company’s presence in Western Australia’s energy sector and develop a bespoke facility in Adelaide SA to support its growing number of partners in the significant defence sector.

Meanwhile, six-figure investment in the creation of Saturn’s UK-based, globally active integrity management division has been critical in further broadening the company’s offering to a growing client base. Saturn Integrity Management offers inspection services including flexible hose assemblies, small bore tubing and accumulator management and enhances the depth of technical expertise within Saturn’s established whole fluid management service. The Saturn team now offers technical authorities in fluid management, SBT and FHA.

With a commitment to delivering excellent, bespoke services that ably meet the demands of Australian industries, core specialities include environmentally friendly cleaning solutions including pipework chemical cleaning and flushing, hydraulic system repair and refurbishment, system design and manufacture, pipework and subsea services. Throughout, the emphasis is on maximum performance with minimum ecological impact using innovative methods that balance precision and efficiency with environmental sustainability.

Saturn was founded by Ewen and Shona Clunie in 2016 and is primarily focused on working proactively in partnership with clients to become the preferred provider of unrivalled, bespoke solutions. It has a strong and enviable record of accomplishment in delivering reliable, efficient and environmentally sustainable fluid management solutions using unrivalled technical expertise and support that goes above and beyond project criteria. 

J+S Subsea Expands Globally: Unlocking Subsea Potential in Australia

J+S Subsea, the awardwinning subsea controls specialist known for delivering

With fresh investment backing their international expansion, the company is poised to offer its renowned expertise to a region showing strong signs of interest in its capabilities.

We have teamed up with experienced Business Development Manager Thomas Hutchinson, who has recently re-joined the J+S Subsea team to lead this expansion. He brings a wealth of experience to the role, having previously contributed to the company’s success and now returning to drive its international growth. Thomas will be responsible for strengthening relationships with key stakeholders and identifying opportunities to support operators in Australia’s growing subsea sector. His mission is clear: position J+S Subsea as a trusted partner for subsea controls and late-life asset management.

One of the core elements of J+S Subsea’s entry into the Australian market will be its flagship initiative, the Legacy Locker. The Legacy Locker addresses equipment obsolescence through a circular economy approach—remanufacturing, recertifying and reusing existing subsea assets to minimise lead times and support sustainability goals. The programme is expected to be a vital solution for Australian

operators seeking to extend the life of ageing subsea infrastructure while keeping operations efficient and environmentally sound.

“We’ve already seen signs of interest from operators in Australia who are eager to explore our innovative solutions,” said Thomas. “The Legacy Locker is perfectly suited to address late-life asset challenges, and we’re confident that our reactive and tailored approach will resonate well with the market.”

J+S Subsea’s reputation for being highly responsive and adaptive to the needs of their clients has earned them numerous accolades, including recent recognition for innovation in the supply chain. Their ability to provide customised, cost-effective solutions—whether through refurbishing existing equipment, delivering critical components or designing bespoke systems—is expected to give them a competitive edge in Australia.

As the subsea sector in the region grows, J+S Subsea’s proactive approach aims to support operators with practical, reliable and sustainable solutions. With strong backing, experienced leadership and innovative offerings, J+S Subsea is set to establish itself as a key player in Australia’s evolving subsea landscape. 

Maximising Late Life Operational Value

Approaching the end of life and decommissioning of your energy assets may seem daunting, but Bureau Veritas experts are there to assist you and have been providing decommissioning support services since 1992.

The management of late life offshore oil & gas assets present unique challenges and opportunities. As fields mature, operators must focus on maximizing efficiency, extending production life, and preparing for cost-effective decommissioning. A strategic approach to latelife asset management is essential to ensure that these assets remain economically viable until their eventual retirement.

One of the primary strategies involves optimizing production through advanced technologies and enhanced recovery techniques. The adoption of digital tools such as predictive analytics and real-time monitoring systems can significantly improve operational efficiency. By analysing data from production and reservoir simulations, opportunities for intervention can be identified, thereby maintaining output levels and minimizing declines.

Moreover, effective asset integrity management is crucial in late-life operations. Regular inspections, preventive maintenance, and critical upgrades to aging infrastructure are necessary to avoid unexpected failures. A wellmanaged maintenance programme increases the reliability and maintainability of the asset. Bureau Veritas Maintenance Optimization (MO) offering has the objective of establishing a preventative maintenance (PM) baseline based on legislative, regulatory, corporate and technical compliance requirements. These studies are used as a basis for improvement of preparing, planning and executing preventative maintenance activities across the clients asset and rationalising maintenance programs in line with field production with a focus on technical content, safety and compliance. Process Optimization (PO) is another key area to add late life value. This is a process-based approach mapping and evaluating end-to-end work management processes within the maintenance loop context and focuses on process, safety and compliance. Our MO and PO scopes have resulted in a 60% controlled reduction of asset preventative maintenance, and a 50% reduction of maintenance activities in the following year.

We encourage owners and operators to explore the transformative potential of rethinking decommissioning operations through the 10 R’s, Repair, Restore, Reuse, Regift, Refuse, Reduce, Recover, Repurpose, Recycle, and Refurbish. We must rethink the way we operate with a focus on sustainability but it’s about maximising the value of existing assets, minimising waste, and driving worthy innovation at every stage of the process.

Partnerships and collaboration with service providers can also enhance value. Outsourcing specific services can lead to cost reductions and efficiency improvements, allowing operators to focus on core competencies. Moreover, engaging with regulatory bodies early in the process can streamline approvals for modifications, explore the reuse of infrastructure for clean energy projects e.g. CCS or commence decommissioning activities, leading to a more efficient transition.

A well-planned decommissioning strategy is critical. Early engagement with stakeholders can facilitate smoother decommissioning processes and mitigate risks. By planning decommissioning activities during the late-life phase, operators can potentially secure better economic outcomes and develop sustainable practices that align with environmental standards.

Decommissioning spend is significant and therefore decom is a highly strategic matter which spans economic, social, safety, regulatory, environmental and sustainability topics. When the right solution for your asset is decommissioning, finding the right expertise can also be challenging. Our experts are on hand to guide you through the often complex process as we have successfully guided countless projects, in particular in the North Sea, Gulf of Mexico, Australia and South Asia.

In conclusion, maximizing value in offshore oil and gas late life asset management requires a holistic approach that combines technology, integrity management, collaboration, and strategic planning for decommissioning. Through these measures, operators can ensure that they extract maximum value from their assets while preparing for a responsible end-oflife transition.

Our late life operational excellence services support you in deciding how best to maximise the remaining life of your asset. Whether you opt for life extension, the sale of the asset, repurposing or decommissioning, you can rely on our expertise to lead a successful project.

Bureau Veritas works alongside owners and operators to help them navigate the challenges and uncertainty of decommissioning. Strategically supporting our clients to optimise and simplify late life operations and decommission efficiently, safely and sustainably. 

Pacific Green sells Limestone Coast North Energy Park to Palisades for $460m

US-based battery development company Pacific Green has announced today it is selling Limestone Coast North Energy Park in SA to Intera Renewables – owned by investment firm Palisade – in a deal worth $460 million.

Limestone Coast North Energy Park, a 250-megawatt storage project set to begin operations in early 2027, is the first project in Pacific Green’s 10GWh battery development pipeline in Australia.

The park is one of two assets being developed in Limestone Coast to enhance grid stability, supporting Australia’s net-zero transition. Under the transaction, Pacific Green will oversee construction until commercial operations, after which Palisade Integrated Management Services (PIMS) will take over asset management.

“We are delighted to have entered this agreement with Palisade, one of Australia’s leading infrastructure fund managers. Limestone Coast North is critical to South Australia’s Electricity network and is the first of Pacific Green’s 10 GWh Australian pipeline,” Pacific Green CEO Scott Poulter.

“We are also very pleased to enter into the first of a portfolio of long-term tolling Power Purchase Agreements with Zen Energy.”

Limestone Coast West, a 250MW / 1,000MWh storage project, is finalising grid approvals ahead of construction in September 2025, while the 1,000MW / 2,500MWh Portland Energy Park in Victoria is set to begin construction in March 2026.

In November 2024, Pacific Green secured land rights in Wagga Wagga for its first NSW project.

“We are excited to be working with Pacific Green on this significant project for both our investors, and Australia’s broader clean energy transition goals,” Palisade executive director Simon Parbery.

“Limestone Coast North represents Palisade’s first investment in large-scale energy storage, providing both attractive risk-adjusted returns, as well as long-term strategic benefits for our Australian renewables platform.”

Palisade was advised by Macquarie Capital, Kidder Williams, KWM, Clayton Utz and Ekistica.

“This is a significant milestone for our Australian business and underscores our focus on assets that represent clear commercial feasibility and deliver net-zero objectives for Australia,” Pacific Green Australia managing director and CEO Joel Alexander.

“The backing of Palisade, a leading global infrastructure and real assets manager, will accelerate the build out of the Limestone Coast North Energy Park and ensure it reaches operational stage by early 2027.” 

Green iron fund will lay foundations for Australia to become renewable energy superpower

The Albanese government has announced a landmark package to salvage the beating heart of South Australia’s steel industry and provide the necessary, strategic public intervention to future-proof and catalyse the region’s transition to a nation-leading green iron and steel hub.

Building on the federal government’s $2 billiion Aluminium Production Tax Credit announcement to decarbonise the energy demand of the nation’s aluminium smelters – the largest source of emissions in the aluminium supply chain – the $1bn Green Iron Investment Fund leverages strategic public capital to crowd in private investment into value-added green iron projects.

Comparatively, iron is the largest source of emissions in the steel value chain, with blast furnaces accounting for up to 87% of traditional, coal-based steel emissions.

CEF has continued to emphasise the critical importance of getting moving and supporting first-of-a-kind (FOAK) capital deployments to learn-by-doing in the domestic context. The rescue and reindustrialisation package announced on Thursday is exactly that.

Whyalla is strategically important for Australia for its manufacturing capacity and highly skilled workforce. It is imperative that we protect and build upon our sovereign capabilities, and massive investment, employment and export potential to lead the world in shifting to green steel supply chains.

As Climate Energy Finance (CEF) emphasised in its submission to the Senate Inquiry into the Future Made in Australia’s (FMIA) Production Tax Credits Bill, Australia’s iron ore exports generated $138 billion in revenues in 2023-24, the largest fuel and resource industry in Australia by volume and value. 

AGL targets another five big battery projects amid falling costs and grid price volatility

AGL Energy has outlined plans to lock in another 1.4 gigawatts (GW) of grid scale battery storage projects over the coming year, in the race to transform its electricity generation portfolio from its current mix of roughly 80 per cent coal to a majority of firmed renewables.

In an investor presentation delivered after the release of its half-year results for the 2025 financial year, AGL says it is targeting final investment decisions for four new big batteries totalling 900 MW in New South Wales and one 500 MW battery in Queensland. Most appear to be around two hours of storage, although this could change.

AGL already owns and operates the Torrens Island big battery in South Australia and the Broken Hill battery in NSW, is building the 500 MW, 1,000 MWh Liddell battery at the site of the shuttered coal plant and has contracted the second stage of the big Western Downs battery in Queensland being built by Neoen.

“As we seek to accelerate options and our decarbonisation pathway where possible, we now have a clear pathway to Financial Investment Decision (FID) for 1.4 GW of batteries,” AGL CEO and managing director Damien Nicks said on Wednesday.

The push to batteries comes as AGL reports a “strong” first half result – including stable earnings (EBITDA) of $1,068 million –which Nicks attributes to the flexibility of its generation fleet and its ability to capture volatile electricity pricing – namely through its growing battery portfolio.

“We expect volatility to remain elevated as coal-fired generation comes to the end of its life and renewable penetration continues to increase, boding well for our growing portfolio of grid-scale batteries,” Nicks says.

“As solar penetration continues to increase in the NEM, there is an increasing divergence between pricing in the middle of the day compared to other timeframes over a 24-hour period.

“The graph on the right [below] shows that overnight prices are contributing more to average daily prices than in the past. This is benefitting both wind and the existing baseload fleet.”

AGL has been vocal about the success of its first operating big battery – at Torrens Island in South Australia – which was one of the star performers in the last financial year, delivering profits of $28 million (before tax, interest and depreciation) in its first nine months of operations.

Referring to the below chart, AGL CFEO Gary Brown notes that the 17-million-dollar bar for “batteries” reflects the full six months of operation of the Torrens Battery compared to only three months in the prior period, as well as the commissioning of the Broken Hill Battery in the half.

“Just as importantly,” Brown says in the presentation, “we can observe the premium that hydro, gas and batteries are able to achieve based on being very flexible assets. It is these asset classes that we continue to focus on delivering as we progress through the transition.”

Also driving the case for further investment in grid-scale battery storage are falling costs. In a Q&A session with analysts after the results presentation on Wednesday, Nicks said AGL was

seeing “30 to 40% reductions across the board” since developing the Torrens Island battery.

“As we’re thinking about these new batteries, I would say … what we’re seeing is, you know, 30 to 40% reductions across the board. And I think we’ll continue to see more benefits from batteries going forward, in terms of where the cost positioning goes,” he said.

And the gentailer’s development pipeline is also looking healthy, with the key highlight for the reporting period being the addition of 1.2 GW of selected firming projects from the acquisition of Firm Power and Terrain Solar, announced last August.

“You will also notice that we’ve also added 2.4 gigawatts of firming projects from the acquisition to our early-stage opportunities, strengthening portfolio optionality. Additionally, there is approximately a further four gigawatts worth of projects from the acquisition that will be assessed in the future,” Nicks said.

“Overall, we are well positioned with the size, maturity and quality of our development pipeline – the focus now is on the continued timely execution of projects of the highest portfolio value, and it should be noted that the pipeline will continue to evolve as projects will come in, and where not economic, out of the pipeline.”

The half-year announcement also gives a nod to the increasing impact on the Australian energy market of electrification, both of households and vehicles, as consumer shift away from fossil fuels.

“It is interesting to note that for the first time in six years we are seeing growth in native demand,” Nicks says in the investor presentation.

“As we’ve discussed previously – the major driver of this expected growth is the electrification of the home, transportation and broader industry, and we continue to see growing demand for electrification products from our consumer and large business customers.

Nicks says one of the company’s core customer-focused strategic pillars is to “lead in electrification,” and he says AGL is “incredibly well positioned to leverage the opportunities presented by the near doubling of NEM demand projected by 2050.”

On electric vehicles, Nicks points to the “significant opportunity to orchestrate the ever-increasing flexible load of EV batteries,” including incentivising off-peak charging, which for AGL’s still coal-heavy fleet currently means shifting load to overnight through pricing signals.

“We also recognise the major growth opportunities of adjacent products and services such as EV subscriptions, fleet transitioning and public charging,” he says.

Nicks says AGL is capturing a “disproportionate share” of Australia’s growing EV market, through what he describes as a “compelling suite of EV plans, propositions and partnerships which will be the foundation of continued expected growth.” 

When relations turn sour: resolving disputes during major energy and infrastructure projects

Ken MacDonald and Chris Duff, Brodies LLP

Ken and Chris are both experts in dispute resolution in the energy industry. For more information visit Brodies.com

Major energy and infrastructure projects, both new projects and those being decommissioned, often involve a wide range of participants based in different jurisdictions.

Such projects are notoriously complex, especially when there is a combination of innovative energy generation solutions, new materials and technologies being deployed and challenging local geography. Technology marked for the project also frequently develops during the construction phase, which can lead to changes to project planning, personnel and cost. In short, it is somewhat inevitable that, despite best intentions, this complexity can lead to unavoidable commercial disputes.

We all recognise the energy and infrastructure sectors as diverse. They span differing geographical and legal jurisdictions and there is prolific but not universal use of standard form contracts. There is also plenty of risk, which helps explain why disputes arise. It is necessary to factor in behaviours by the parties to the contract, which are often tied to a project's finance outturn. Further, some of the sub sectors often contract with bespoke or amended terms which may not be as industry recognised or well known, and which can promote uncertainty. The mantra is 'where there is uncertainty, there is scope for dispute'.

Disputes often arise because of a difference of opinion about what the parties' contract requires of them, or perhaps what their entitlements are. Disputes are relatively commonplace on major projects but whether those disputes result in a formal process will typically turn on behaviours, the strength of the parties' relationships, the merits of parties' positions and ultimately the value that attaches.

Many disputes which emerge in a project can be resolved during the project itself with

effective contract or project management. But sometimes the party's position is just too polarised, or the value which attaches to the point is just too great to resolve it without at least starting down the road of a formal process. Very often contracts include tiered or escalation clauses to try to have a final attempt at resolving matters before going into a formal process.

International energy and infrastructure disputes are particularly complex because of both practical and cultural considerations to contend with. In terms of practical challenges, it is necessary for the parties to the contract to agree the rules of process for dispute resolution. These rules of engagement as to how disputes are resolved might be very different from how those parties deal with disputes in their domestic markets, both in terms of choice of law and procedure. International Arbitration is often selected as the compromise by counterparties with economic parity.

Further, during a dispute, for example, in international arbitration there might be resort to local courts at the seat of the arbitration to enforce certain decisions of the arbitral tribunal. A party might need to procure local law advice in foreign jurisdictions and have a working understanding of that country's local courts.

Language, misinterpretation and translation can sometimes be an issue to overcome. Turning to cultural factors and without adopting lazy tropes, there may be differences in how each party approaches their dispute depending on how they tend to contract and behave in their home jurisdiction.

Disputes advice can be a distress purchase, and everyone deals with distress differently. If you have language barriers and different values and expectations at play, that can make resolving the dispute more difficult. That could be particularly important in international arbitration because there may also be differing ethical standards applying to attorneys than would apply in domestic courts, so the brakes, which are sometimes placed on party and on attorney behaviour are perhaps not as effective in all jurisdictions.

In cross-border disputes, a key issue is how do parties enforce the decision. In a sense, what happens if you win? Usually, it is obvious what happens if you lose, but what you do not want to do is win but then run aground trying to enforce that decision in your favour so that is always a key issue for parties at the outset.

Consideration should be given at an early stage to see if it is possible to resolve the dispute by agreement because that achieves certainty. If negotiation would prove too challenging, then mediation is a good option where an independent third party facilitates discussions to achieve consensual settlement. There is, however, patchy application of mediation across the globe, some jurisdictions mandate it, very effectively with cost sanctions, whilst others barely recognise or understand it. There are differences about the mediator's role depending on your global location. In some jurisdictions there would be an expectation that the mediator would play a purely facilitating role trying to bring the parties together to reach an agreement, whilst in other jurisdictions parties would look to the mediator for some recommended outcome to their dispute. There is also the possibility of Med ARB where the dispute starts as mediation but morphs into arbitration, and that is where the mediator becomes the arbitrator if no resolution is achieved in the initial mediation stage.

Whatever your project is, consideration should be given at the outset for appropriate contract mechanisms to encourage early and consensual resolution with resort to a formal process a last resort where circumstances so dictate.

and details of our energy expertise visit brodies.com

Brodies LLP is a UK top 50, and leading Scottish, law firm with offices across Scotland, the UK and internationally. For more useful insight

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Navigating the Energy Transition: Workforce Planning for a New Era

As the energy industry evolves, it is embracing a more integrated approach, balancing traditional oil and gas operations with the increasing adoption of renewable and sustainable energy sources.

Rather than a complete transition to a renewables-only model, the sector is moving towards a diversified energy mix, leveraging both existing infrastructure and emerging technologies to progress towards net zero. The urgency of climate change, evolving regulatory frameworks, and shifting consumer expectations are accelerating this shift. However, achieving a sustainable energy landscape will require overcoming significant challenges, particularly in workforce planning and skills development.

The Landscape of Change

The expansion of renewable energy sources such as wind, solar, and hydrogen presents both opportunities and challenges for the sector. Established companies are investing heavily in low-carbon technologies, while new start-ups are entering the market to drive innovation. However, oil and gas remain a crucial component of global energy security, with projections indicating that fossil fuels will still play a role in the energy mix for decades to come. This evolving landscape necessitates a dual focus: developing new talent for emerging energy technologies while also reskilling the existing workforce to support a more sustainable and resilient energy sector.

Immediate Challenges

1. Skill Gaps and Workforce Shortages: As we pivot towards renewables, there is a heightened demand for specific technical skills that are often lacking in the current workforce. The sector will need to be willing to invest in utilising technology to help develop and adapt technical learning programs as changes in standards become more frequent.

2. Retaining Experienced Workers: As the industry shifts, there is a risk that experienced oil and gas professionals may feel uncertain about their future and choose to leave the sector. It is critical that we address the emotional and professional

needs of these individuals, providing them with opportunities for retraining and upskilling in renewable technologies.

3. Cultural Resistance to Change: Many organizations with a rich history face internal resistance to transitions due to entrenched cultures focused on traditional energy production. This resistance can slow down the adoption of new technologies and methodologies that are essential for a successful transition. Learning programs will need to focus on more heavily on mindset and behaviours.

Future Challenges

1. Regulatory and Policy Changes: The energy landscape is heavily influenced by government policies aimed at reducing carbon emissions. Navigating these regulations will require a workforce that is not only technically skilled but also knowledgeable about the legal frameworks governing renewable energy.

2. Technological Advancements: As the industry evolves, new technologies will emerge, necessitating a workforce that is adaptable and committed to continuous learning. For example, advancements in smart grid technology and artificial intelligence will require professionals who can operate in these complex ecosystems.

3. Market Volatility and Investment Risks: The transition to renewable energy sources can be fraught with financial risks. The workforce must be equipped to analyze market trends and make informed decisions that align with both immediate and long-term business goals.

Workforce Planning for the Energy Transition

In light of these challenges, companies in the energy sector must develop comprehensive workforce planning strategies that prioritize both immediate needs and future aspirations.

Here are several key areas to focus on:

1. Upskilling and Reskilling Initiatives: Organizations need to invest in training programs that equip employees with the necessary skills for renewable energy roles whilst integrating regular capability tests to ensure a sharp agile technical workforce.

2. Attracting New Talent: As the industry evolves, attracting new talent will be essential. Partnerships with universities and vocational schools to promote careers in renewable energy will help generate interest among the next generation of professionals and help the cultural transition shift.

3. Fostering a Culture of Continuous Learning: Emphasizing a culture that values lifelong learning will be crucial. This can be facilitated through mentorship programs, coaching, and facilitating best practice sharing via peer to peer learning programs to complement highly technical learning streams.

Key Skills for the Future

As we look ahead, to support technical skills, we will need to develop Data Analysis, Project management, Regulatory Knowledge, Agility, and Critical thinking. More than ever we must learn to analyse situations, identify problems, and devise effective solutions quickly. This takes years of experience to develop, coming up with new ways to accelerate how we develop critical thinking will be key to developing a capable future workforce.

Conclusion

The energy transition presents both challenges and opportunities. By proactively addressing the immediate concerns and laying the groundwork for future workforce needs, we can ensure that the industry not only survives but thrives in this new era. Embracing more agile ways of learning and integrating them into the foundational technical learning streams will secure a skilled workforce. Those that invest in a forward thinking learning and skills strategy, integrating informal coaching, mentoring and peer to peer learning programs will adapt faster, and thrive. At Leyton UK, we have seen the power of a similar learning ecosystem, as an accredited exceptional learning organisation, we have seen the power a diverse learning culture can have on support the transition of an organisation. 

By

James Swift, Head of Talent Development, Leyton UK + USA

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Baker Hughes bags ‘major’ deal for ExxonMobil’s Guyana-bound FPSO duo

U.S.-headquartered energy technology giant Baker Hughes has been hired on a multi-year assignment related to two floating production, storage, and offloading (FPSO) vessels, which are destined to work on upcoming oil projects on the Stabroek block off the coast of Guyana, operated by an affiliate of America’s energy giant ExxonMobil.

Baker Hughes disclosed a long-term contract it described as a “major” and “significant” award with ExxonMobil Guyana, a subsidiary of the U.S.-based ExxonMobil.

This deal enables the firm to provide specialty chemicals and related services for the U.S. oil major’s FPSOs Errea Wittu and Jaguar, featuring a combined 500,000 barrels per day capacity, which will be deployed at the Uaru and Whiptail offshore greenfield developments in Guyana’s prolific Stabroek block.

The multi-year contract encompasses all topsides, subsea, water injection, and utility chemicals for the FPSO duo, which are currently under development. While the FPSO Errea Wittu is targeted to begin production in 2026, the FPSO Jaguar is scheduled to start operations in 2027.

Baker Hughes, which celebrated in 2022 the opening of a multimodal supercenter in Georgetown, also provides a variety of services and equipment to operators in the country, such as turbomachinery for ExxonMobil Guyana’s FPSO fleet and production chemicals for the FPSO Liza Unity.

Amerino Gatti, Executive Vice President of Oilfield Services & Equipment at Baker Hughes, commented: “ExxonMobil Guyana and Baker Hughes share a long history of supporting Guyana’s energy sector, and we look forward to working together to write its next chapter.

“Our experience operating across the country’s energy supply chain and unmatched expertise in oilfield and industrial chemicals make Baker Hughes uniquely suited to support complex FPSO operations such as these.”

TechnipFMC installed its first Subsea 2.0 equipment piece in Guyanese waters for the $12.7 billion Uaru project, which is ExxonMobil’s fifth oil development in the Stabroek block, in the last few weeks of 2024, after winning a similar deal for the U.S. firm’s sixth oil development offshore Guyana in April 2024.

The Uaru and Whiptail projects will include up to 20 drill centers and 92 production and injection wells. As each FPSO will have a capacity of 250,000 barrels per day, these two additions will bring the country’s total daily production capacity to approximately 1.3 million barrels.

Japan’s MODEC disclosed progress in the construction of the FPSO Errea Wittu in October 2024, with the completion of the hull block assembly 40 days ahead of the original schedule. China’s Dalian Shipbuilding Industry Company (DSIC) launched the FPSO at the end of December 2024.

On the other hand, the Netherlands-based SBM Offshore secured $1.5 billion with a consortium of 16 international financial institutions in November 2024 to cover the construction costs of the FPSO Jaguar.

ExxonMobil (45% interest) operates the Stabroek block, spanning 6.6 million acres or 26,800 square kilometers, with its partners, including Hess Guyana Exploration (30%) and CNOOC Petroleum Guyana (25%).

The list of ExxonMobil’s four other projects in Guyana includes Liza Phase 1 and Phase 2, Payara, and Yellowtail. However, wheels have been set in motion to get the required approvals for Hammerhead as the firm’s seventh deepwater oil project in Guyana.

This project will add between 120,000 and 180,000 barrels per day (bpd) by 2029, raising the country’s overall production capacity bar to nearly 1.5 million bpd. Since Hess is in the process of merging with Chevron, the latter may become ExxonMobil’s new partner this year.

Hess and Chevron passed the Federal Trade Commission (FTC) antitrust review. However, the completion of the merger remains subject to closing conditions, including the satisfactory resolution of ongoing arbitration over preemptive rights in the Stabroek block joint operating agreement.

Meanwhile, Baker Hughes recently won a deal with Venture Global for LNG equipment and signed a multi-year services frame agreement for the latter’s LNG terminal in Louisiana.

Shelf Drilling bags $50m rig contract extension from Chevron

United Arab Emirates-based jackup rig pure-play Shelf Drilling has secured an extension for one of its rigs.

Namely, the 2008-built Shelf Drilling Scepter will continue its drilling operations offshore West Africa for one more year.

The name of the client was left undisclosed in an Oslo Bors filing. However, the company’s latest fleet status report states that the rig has been working for US oil and gas supermajor Chevron in Nigeria since June 2023.

The initial deal was set to expire in July 2025 but Chevron had a one-year extension option which was now exercised.

The extension will begin in direct continuation of the rig’s current contract, extending the commitment until July 2026. The total added contract value is around $50m.

Earlier this week, Shelf Drilling and Arabian Drilling signed a memorandum of understanding to form a strategic alliance which will see Shelf use some of Arabian Drilling’s high-specification jackups to meet contract requirements.

Arabian Drilling is the largest onshore and offshore drilling company in Saudi Arabia by fleet size and currently has 12 jackup rigs in its fleet. 

Shearwater Geoservices gets work in oil-rich Guyana with ExxonMobil

Norwegian offshore seismic vessel player Shearwater Geoservices has been awarded a contract for a large deepwater 4D OBN reservoir surveillance program by US supermajor ExxonMobil in Guyana.

Under the award, Shearwater will commence a six-month survey starting in the first half of 2025. The field unit will be comprised of a Shearwater seismic vessel as a source vessel and a dual ROV vessel for node deployment.

This follows the company recently completing a 4D towed streamer operation for ExxonMobil in Canada.

“We see a steady increase in deepwater 4D OBN monitoring activity internationally, and Shearwater is well positioned for this growth […],” said Irene Waage Basili, CEO of Shearwater.

Last week was a big one for ExxonMobil in Guyana. The supermajor submitted its environmental impact assessment for the development of its seventh oil project in the

Stabroek block named Hammerhead. It will consist of 14 to 30 development wells, the installation and operation of an FPSO, and the installation of a gas export pipeline from the FPSO.

The project would start production in 2029, once it receives the required governmental approval, with a crude oil production capacity estimated at 120,000 and 180,000 bpd, increasing the country’s production capacity to more than 1.4m bpd.

Also, the fourth FPSO to be operated by an ExxonMobil-led consortium in Guyana is on its way to the South American country’s waters from Singapore. The One Guyana FPSO will be followed by two more FPSOs in the next two years. 

Wood secures $120 million engineering contract extension with Shell UK

Wood, a global leader in consulting and engineering, has been awarded a $120 million contract extension by Shell UK Limited to provide brownfield engineering, procurement and construction (EPC) to onshore and offshore assets across the UK.

The two-year, cost-reimbursable contract extension, centres on providing brownfield EPC services, as well as subsea and integrity management, at the Shell UK-operated St Fergus and Mossmorran onshore terminals and the Nelson, Gannet and Shearwater offshore assets. New to the contract scope, Wood is also providing EPC services on the Penguins FPSO.

Ken Gilmartin, CEO at Wood said: “We are proud to continue our decades-long relationship with Shell in the UK, focusing on the continued delivery of safe, reliable energy supply. The extension is recognition of our people and their commitment to deliver bestin-class outcomes for our clients.”

The contract extension will be supported by around 240 Wood employees. 

Wood secured the original EPC contract in 2021

A new rule could speed up unused oil well decommissioning. Gulf States are suing to stop it

Thousands of oil and gas wells in the Gulf of Mexico no longer in use need to be removed from the water, causing an environmental and economic problem at a time when the Trump administration wants to keep drilling for more oil.

As of 2023, there are almost 3,000 wells and 500 platforms that are overdue for decommissioning in the Gulf, according to a report from the Government Accountability Office. That same GAO report also says the Bureau of Ocean Energy Management (BOEM) and the Bureau of Safety and Environmental Enforcement (BSEE) aren’t doing enough to make sure this infrastructure is getting cleaned up.

Abandoned oil and gas wells can pollute the water by leaking methane, releasing corroded metal into the water or even causing oil spills. They could also pose a problem for navigation for the fishing industry and even the oil and gas industry itself.

“Almost half of the remaining active wells in the Gulf of Mexico are either approaching or are already past the end of their useful life,” said Andrew Hartsig, an expert on offshore oil and gas policy and senior director of Arctic Conservation at Ocean Conservancy. “Problems there are expected to increase, and that’s especially true for the older shallow water wells as those continue to decline in productivity and profitability.”

The BOEM finalized a rule last year to help ensure old wells are cleaned up. The rule also protects taxpayers from shouldering the cost, but a few Gulf States sued the office saying stricter criteria for cleanup would crush independent oil companies

When an oil company goes bankrupt, it leaves that infrastructure in the water for BOEM to clean up. Between 2015 and 2021, 148 oil and gas producers in Louisiana, Mississippi, Alabama and Texas, filed for bankruptcy. To prevent taxpayers footing the bill for cleanup, a 20-year-old BOEM rule says a company has to provide financial assurance to prove it can clean up the infrastructure afterward before it can get a lease to drill.

BOEM’s new rule updates the ways companies can provide financial assurance, including slightly stricter criteria to prove they can meet those financial obligations for clean up. Those who can’t provide that financial assurance in other ways have to put up a surety bond.

The GAO report recommended this change, estimating that BOEM needs between $40 and $70 billion for clean up. It currently only has $3.5 billion in bonds to pay for it.

The new criteria is harder for smaller oil companies to meet and they say they can’t afford to get those bonds.

Gulf States sue

Louisiana, Mississippi and Texas are suing against the new rule.

The lawsuit says it will “crush” their independent small and mid-sized oil companies and spare the major companies, such as Chevron and Shell. According to the lawsuit, independent companies produce about half of U.S. oil, and this rule will cause the loss of more than 30,000 jobs.

For these smaller companies, it’s a struggle to get the bonds needed.

“There’s not that many companies out there that do these kinds of bonds the government is requiring,” said Mike Moncla, president of the Louisiana Oil and Gas Association, one of the plaintiffs in the lawsuit.

Moncla said the bonds are too high to impose on leases that already exist and many of the association’s companies would go bankrupt trying to get them.

“We don’t mind the increase in the bonds going up for future stuff,” he added. “It’s changing the rules of the game and trying to

change contractual agreements that we have the issue with.”

Tracy Krohn, CEO of W&T Offshore, said one of the bonding companies he works with asked for $250 million in collateral, which his company cannot afford.

“We employ about 390 people. We employ probably another couple of hundred of contractors, so for us, having to post all this collateral would cause the company to go bankrupt,” said Kohn.

The lawsuit argues that going up the “chain of title,” another method that BOEM can use to get the infrastructure cleaned up, was working fine. Often, oil companies sell the leases to each other, so if a company goes bankrupt and cannot decommission the infrastructure, BOEM can ask the previous owner to clean it up.

“Honestly, I don’t see that there’s a problem,” Moncla said. “I think that the Biden administration invented a problem that wasn’t necessary to fix in the last 20 years.”

Unlikely bedfellows

Going up the chain of title, however, takes time and using bonds instead speeds up decommissioning, said Ava Ibanez Amador, an attorney for Earthjustice.

The nonprofit filed an amicus brief on behalf of environmental groups supporting the rule.

“The longer that you leave an infrastructure in the water, the harder it becomes to decommission,” said Ibanez Amador, “because it becomes more hazardous to have someone go in there and see what needs to be done.”

Ibanez Amador added faster cleanup protects coastal communities from the safety and environmental risks of leaving that infrastructure in the water, especially at a time when current administration encourages more offshore drilling.

“The more infrastructure that goes in the water, the more infrastructure that will be left in the water to the detriment of mostly coastal communities,” said Ibanez Amador. “If we don’t have strong rules that make sure that (the oil and gas industry) is able to pay the price of doing business in the Gulf of Mexico.”

Larger oil companies are actually aligned with environmental groups on this issue. The American Petroleum Institute (API), the largest trade association for the oil and gas industry supports the rule. The organization sued to try to stop the other lawsuit and will be filing an amicus brief in support of the rule. 

Australia’s decommissioning roadmap needs “tangible” support, says law firm

Global law firm Clifford Chance has provided its feedback on Australia’s recently-published roadmap for decommissioning, calling the blueprint a welcome development but one that needs “tangible” support to ensure success.

In its report – The Road to Decommissioning: Establishing a Global Decommissioning Hub in Australia – it charts the steps Australia plans to make following the release of the government’s long-awaited Offshore Resources Decommissioning Roadmap. In its closing remarks on where to next for the industry, Clifford Chance highlights some of the many opportunities –and challenges –ahead.

“There is significant potential for growth in the Australian decommissioning industry through involvement in upskilling employees, repurposing existing ports and building facilities that will improve the efficiency of recycling decommissioned materials,” it states. “The government’s commitment to ensuring Australia is equipped to grow the decommissioning industry is a welcome development, which needs to be matched with tangible actions.”

Testimony to Australia’s continuing commitment to energy transition, the main objective of the roadmap is to develop a world leading decommissioning hub in Australia. This proposed hub will service global demands, seizing the opportunity to capitalise on the estimated US$60bn spend on decommissioning

offshore facilities over the next 30 to 50 years. Among the growth opportunities highlighted by Clifford Chance are prospects for international collaboration. It notes that Australia lacks adequate vessels for engaging in heavy offshore decommissioning and there is also an opportunity for stakeholders to collaborate with other global markets to import machinery. Port modification is also seen as another area of opportunity. No existing Australian port researched by CODA and KPMG has all the required attributes to handle offshore decommissioning, Clifford Chance noted in its report. This means existing ports will need to be modified to host decommissioning.

But ultimately, this is only the beginning of the journey, it adds. “It is clear that the Australian government, and its state counterparts (who must come along this journey), are still in the information-gathering phase of developing the industry, as there has been a recent request for tender by the Department of Industry Science and Resources for technical advice relating to decommissioning.

“It is a long road ahead, but the areas of development highlighted by the government should act as a checklist for interested parties in ensuring that Australia is at the forefront of the decommissioning industry.

“The roadmap is a welcome and significant stepping stone in Australia’s energy transition journey, and in developing and fostering stakeholder engagement on Australia’s ambitions to become a global leader in the offshore decommissioning sector. Australia’s next step is eagerly awaited.” 

Shell taps Asian duo for ‘first major’ decom project offshore Brunei

Serikandi Hilong, a joint venture (JV) between Brunei’s Serikandi Oilfield Services and Hilong Group’s Hong Kong-based affiliate Hilong Marine Engineering, has won a contract with Brunei Shell Petroleum (BSP), a subsidiary of the oil major Shell, for the engineering, preparation, removal, and disposal (EPRD) of redundant offshore structures in Bruneian waters.

According to Serikandi, the project aims to restore offshore environments to their natural state using innovative techniques and best practices in line with applicable legislation. While the value of the EPRD contract has not been disclosed, the Bruneian player described it as significant.

Revi Bhaskaran, Chief Executive Officer (CEO) of Serikandi Group, said: “This milestone reflects our commitment to environmental preservation and operational excellence. Collaborating with Hilong enables us to expand our capabilities while supporting regional decommissioning expertise.”

The project is said to prioritize resource reclamation, ecosystem revitalization, and economic growth in line with global sustainability

goals. The decommissioning activities are expected to start in November 2025.

“We’re honored to contribute to Brunei’s first major decommissioning project. Together with Serikandi, we will ensure successful delivery while upholding the highest safety and environmental standards,” noted Jeffrey Gu, Executive Deputy President of Hilong Group.

This follows last week’s deal between Hilong Offshore Engineering and another energy heavyweight–Eni. The Italian player hired Hilong to work on the second phase of the offshore transportation and installation works for Congo LNG, its liquefied natural gas (LNG) project in Congolese waters. 

UPCOMING GLOBAL EVENTS

Future of Utilities

19-20 March 2025

SugarFactory, Amsterdam

2nd Edition Global Summit on Oil, Gas, Petroleum Science and Engineering 19-20 March 2025

Amsterdam, Netherlands

Middle East Energy Dubai 7-9 April 2025

Dubai, UAE

Expo Gas 8-10 April 2025

Kielce, Poland

International Green Energy Expo

23-25 Apr 2025

Daegu, South Korea

Oman Petroleum & Energy Show

12-14 May 2025

Muscat Oman

Africa Energies Summit

13-15 May 2025

London, United Kingdom

SPE Offshore Europe 2-5 September 2025

Aberdeen, United Kingdom

Investing in People –ATPI’s Commitment to Skills, Training and Wellbeing

The Foundation of Organisational Success: People

A thriving organisation depends on its people. Ensuring employees have the necessary skills, knowledge, and resources to succeed is fundamental to long-term business growth. A workforce that feels valued and supported is more engaged, productive, and innovative. Companies that invest in professional development, training, and wellbeing create environments where employees can excel, contributing to organisational resilience and sustainability.

Travel management company (TMC) ATPI embraces this approach by fostering a workplace culture that prioritises employee wellbeing, professional growth, and inclusivity. Through a range of initiatives, ATPI ensures that its workforce remains motivated, engaged, and prepared to meet industry challenges.

A People-First Culture

ATPI recognises that business success is closely linked to employee wellbeing and satisfaction. The company has established a strong, people-first culture, ensuring employees feel supported both professionally and personally. In a landscape where workplace wellbeing is increasingly recognised as a crucial factor in business performance, ATPI sets a benchmark by proactively implementing initiatives that nurture talent and enhance job satisfaction.

A key component of this effort is the ATPI Wellbeing Team, which develops and delivers wellness programs, mental health support initiatives, and resources designed to promote a healthy work-life balance. Flexible working arrangements and tailored support programs further reinforce ATPI’s commitment to employee wellbeing.

By integrating wellbeing into its business strategy, ATPI fosters a motivated workforce that is better equipped to adapt to challenges and provide high-quality service to clients.

Investing in Skills and Training

Recognising that a well-trained workforce is the foundation of a successful organisation, ATPI has developed comprehensive training and development programs that align with both individual aspirations and business objectives.

The ATPI Academy is a prime example of this commitment. Offering over 220 courses covering essential skills, compliance, and rolespecific training, the Academy ensures that employees have access to continuous learning opportunities. In 2023-2024 alone, employees completed 23,000 courses, reflecting a strong commitment to professional development.

ATPI’s Rising Stars Programme is a further example of an initiative which nurtures talent, by identifying high-potential employees and providing them with opportunities for career advancement, mentorship, and crossdepartmental exposure. By fostering leadership skills and supporting career progression, ATPI ensures that its workforce remains futureready, capable of driving the company’s longterm success.

Commitment to Diversity, Equity, and Inclusion

Beyond professional development, ATPI actively fosters an inclusive workplace where diversity, equity, and inclusion (DEI) are central to its business strategy. With 61% of its global workforce and 56% of leadership roles held by women, the company is committed to creating equitable opportunities for all employees.

ATPI’s DEI initiatives include gender pay gap analysis, global focus workshops, and employee-led cultural programs. These efforts promote an inclusive and respectful work environment, strengthening employee engagement and reinforcing ATPI’s reputation as an employer of choice.

By embedding DEI principles into its core values, ATPI encourages collaboration and innovation, driving organisational success.

Enhancing Employee Retention and Business Growth

ATPI’s focus on people has yielded tangible results in employee retention and business growth. The company’s Aberdeen office, has achieved a 93% retention rate, reflecting a 20% increase since 2022. Globally, ATPI has experienced a 23% rise in staff numbers between 2023 and 2024, demonstrating its ability to attract and retain top talent.

Higher retention rates bring numerous benefits, including cost savings, operational continuity, and improved client service. Employees choose to remain with ATPI not only for career growth opportunities but also for the supportive and dynamic work environment it fosters.

Creating a Sustainable Workforce

As businesses navigate an evolving workforce landscape, ATPI’s approach serves as a model for organisations aiming to prioritise employee wellbeing, skills development, and inclusivity. By investing in its people, ATPI ensures long-term engagement, motivation, and business growth.

In a competitive market, organisations that put their people first are best positioned for success, and ATPI exemplifies this philosophy. 

Rachel Brown, Global Talent and Culture Lead - ATPI

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