The Press and Journal (Aberdeen and Aberdeenshire)
Energy Indicators
INDUSTRY NEWS
The Brent oil price rose this month to $62.72 on February 17, representing a monthly increase of 14.6%. The WTI price also rose, to $60.08, a monthly increase of 15.3%. Oil prices have increased due to increased expectations regarding economic and oil demand recovery. This is attributed to a number of factors, including the continued roll-out of Covid-19 vaccines, US supply slowdowns and heightened tensions in the Middle East. TechnipFMC announced that it had successfully completed its spin-off transaction, splitting its engineering and construction activities from its upstream oil services business. Consequently, two publicly traded companies have been created. TechnipFMC will now be strictly technology and service focused and will continue to drive energy development, while Technip Energies will specialise in engineering and construction, looking to capitalise on the global energy transition. Consortiums involving BP and Total secured three offshore wind projects in Britain’s first major auction of offshore wind farm leases in more than a decade, signalling BP’s entrance into the UK offshore wind market. A consortium of BP and EnBW, a German utilities provider, secured the rights for two 1.5GW projects, agreeing an annual outlay of more than £460m between the companies for both leases. Shell announced plans to gradually reduce its oil production in line with targets to become carbon neutral by 2050. Having reported huge losses due to lower oil demand in 2020, the company has expressed its desire to expand its renewables, biofuels and hydrogen businesses. To achieve this, Shell will look to shift its focus to selling renewable energy, and is aiming for a double digit share of global hydrogen sales. EnQuest announced it had reached an agreement to purchase Suncor’s stake in three producing North Sea oil fields for an initial consideration of $325m. The assets are expected to immediately add production of 10,000 barrels per day of net oil equivalent, with the fields’ lifespans estimated to last into early 2030. EnQuest said the acquisition highlights its continued commitment to the UK North Sea, and diversifies its current production base. Renewable energy Company, Magnora ASA, announced it had established a joint floating wind venture with an unspecified offshore energy and technology service company. Magnora Floating Wind will initially operate in Scotland and Norway, with the view to entering new markets in the coming months.
SIMMONS NEWS
Simmons Energy, A Division of Piper Sandler served as exclusive financial advisor to Ingersoll Rand as the company announced it has agreed to divest a majority interest in its High Pressure Solutions segment to American Industrial Partners for $300m. The company, which provide missioncritical flow creation and industrial solutions, will retain a 45% common equity interest in the business.