Houthi tanker attack causes 200-kilometer-long oil slick

Politics, geopolitics and conflicts

An oil tanker attacked by the Houthis in the Red Sea earlier this week has exploded, leaving behind a 200-kilometer-long oil slick. The Liberian-flagged tanker Chios Lion was carrying a cargo of crude oil when it was hit by a drone boat that rammed into its side.

Less than a week before the presidential elections in Venezuela, Maduro arrested the security chief of opposition leader Maria Corina Machado, who is in reality the driving force behind opposition presidential candidate Edmundo González.

Discovery and development

ReconAfrica, together with its partner, Namibian state-owned company Namcor, last week started the Naingopo onshore exploration well in northeastern Namibia on PEL 73. This is the first well drilled in the Damara Fold Best, which is said to contain significant traps that have yet to be tested. ReconAfrica will drill the well to a depth of approximately 3,800 metres using its own drilling rig and hopes to encounter several reservoir intervals containing both oil and natural gas. The company says the well is expected to produce 163 mmbo or 843 BCF net. This week, Recon Africa entered into a contract with Norwegian company BW Energy, which will acquire a 20 per cent interest in Recon’s onshore PEL 73 licence in Namibia for a total consideration of $16 million.

ExxonMobil plans to launch its seventh oil project offshore Guyana, targeting an additional production of 180,000 barrels per day by 2029. This project, called Hammerhead, is part of the Stabroek block, where Exxon and its partners have found around 11 billion barrels…

Politics, geopolitics and conflicts

An oil tanker attacked by the Houthis in the Red Sea earlier this week has exploded, leaving behind a 200-kilometer-long oil slick. The Liberian-flagged tanker Chios Lion was carrying a cargo of crude oil when it was hit by a drone boat that rammed into its side.

Less than a week before the presidential elections in Venezuela, Maduro arrested the security chief of opposition leader Maria Corina Machado, the real driving force behind opposition presidential candidate Edmundo González.

Discovery and development

ReconAfrica, together with its partner, Namibian state-owned company Namcor, last week started the Naingopo onshore exploration well in northeastern Namibia on PEL 73. This is the first well drilled in the Damara Fold Best, which is said to contain significant traps that have yet to be tested. ReconAfrica will drill the well to a depth of approximately 3,800 metres using its own drilling rig and hopes to encounter several reservoir intervals containing both oil and natural gas. The company says the well is expected to produce 163 mmbo or 843 BCF net. This week, Recon Africa entered into a contract with Norwegian company BW Energy, which will acquire a 20 per cent interest in Recon’s onshore PEL 73 licence in Namibia for a total consideration of $16 million.

ExxonMobil plans to launch its seventh oil project offshore Guyana, with the goal of producing 180,000 barrels per day by 2029. This project, called Hammerhead, is part of the Stabroek block, where Exxon and its partners have found around 11 billion barrels of crude oil. Guyana’s oil production has risen sharply since 2019 and has contributed significantly to GDP growth, which has tripled in the last four years. By 2030, Guyana aims to produce over 1.5 million barrels per day, making it the second-largest oil producer in South America.

Kuwait Petroleum Corporation (KPC) has announced a “huge” oil discovery in the Al Nokhatha field east of Kuwait’s Failaka Island. Reserves are estimated at 3.2 bboee, including 2.1 billion barrels of light oil and 5.1 tcf of gas. This discovery is equivalent to Kuwait’s entire production for three years and covers approximately 96 km2.

Turkey will deploy the Oruc Reis exploration vessel off the coast of Somalia in late September or early October to conduct extensive seismic surveys for several months. This exploration is part of a hydrocarbon cooperation agreement between Turkey and Somalia and will focus on three offshore blocks. Two blocks are located 50 km off the coast of Somalia, the third 100 km away. Turkish Energy Minister Alparslan Bayraktar pointed out that after discovering these areas, Turkey will have exclusive rights to search for and produce oil and gas.

Deals, Mergers & Acquisitions

QatarEnergy has acquired a 20% stake in an offshore block in Suriname, joining Chevron (40%) and Paradise Oil Company (40%). Suriname’s current oil production is onshore, but significant offshore discoveries since 2019 indicate great potential. The country’s first major offshore production is expected in about four years. Suriname’s discovered resources are estimated at over 2.4 billion barrels of oil and 12.5 trillion cubic feet of gas. This deal strengthens QatarEnergy’s exploration efforts in Suriname and marks a new partnership with Chevron.

TotalEnergies has agreed to sell its 10 percent stake in the SPDC joint venture in Nigeria to Chappal Energies for $860 million, subject to regulatory approval. The joint venture, which focuses primarily on the Niger Delta, includes Shell (30%) and Eni (5%), with Nigerian National Petroleum Co. holding a majority 55% stake. This sale is part of TotalEnergies’ strategy to focus on offshore oil and gas assets while remaining interested in key gas projects such as Ubeta. The divestment is in line with Shell’s similar exit strategy to focus on deepwater assets and gas operations, although the company may face regulatory scrutiny over environmental liability and the new owner’s technical capabilities.

ConocoPhillips claims its $22.5 billion acquisition of Marathon Oil will be completed by the fourth quarter of 2024, despite a prolonged antitrust review by the FTC. The FTC has issued a “second request” for more transaction details, extending the wait time for the review. The merger, which offers Marathon shareholders 0.255 ConocoPhillips shares for each Marathon share, includes $5.4 million of Marathon’s debt. If approved, the acquisition will expand ConocoPhillips’ U.S. onshore portfolio, add over 2 billion barrels of resources and generate $500 million in cost synergies in the first year.

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