WTI $70.56 -70c, Brent $72.41 -48c, Diff -$1.85 +22c, NG $4.03 +9c, UKNG 106.93 -0.07p
Oil drifted yesterday, Covid numbers are still rising in key parts of the world and vaccines rolling out very slowly elsewhere. Having said that the economic data from China today was more welcoming and demand numbers for crude continue to be solid.
The geopolitical situation is warming up a bit however, last week’s attack on a ship in the Gulf was followed by a hijacking off the UAE also allegedly by Iranians, headed for Iran the pirates have apparently left the ship this morning. This is ahead of the new President’s inauguration tomorrow.
IOG has announced its completion of a comprehensive Emissions Assessment (EA), undertaken by its internal Environmental, Social and Governance (ESG) Taskforce in collaboration with Genesis. On the basis of the EA the Company has committed to Scope 1 & 2 Net Zero status as of 2021.
Highlights of the report are, IOG is expected to have one of the lowest emissions profiles in the industry throughout this decade and that over their economic life, the projected cumulative average intensity of the Phase 1 Blythe and Southwark platforms is just 0.4 kgCO2e/boe.
IOG’s estimated Phase 1 lifetime Scope 1 and 2 average emissions intensity is estimated at 3.97 kgCO2e/boe, compared to the North Sea average of 20.2 kgCO2e/boe¹. Phase 1 alone could generate a lifetime saving of close to 1 million tonnes of CO2e emissions versus a weighted average of UK gas imports²
IOG has committed to Scope 1 and 2 Net Zero status as of 2021, via investment in appropriate accredited voluntary offsets and in parallel, the Company has recognised the importance of its ESG work, led since 2020 by James Chance, by appointing him to a new role as Head of Capital Markets and ESG.
IOG has set suitable internal targets for annual actual emissions, to which employee remuneration is linked and the emissions model will also be used as a planning tool to optimise the design of future developments to engineer out emissions at source as far as reasonably possible.
Andrew Hockey, CEO of IOG, commented:
“As our industry transforms in light of climate challenges, IOG’s ambition remains constant: to be a safe, efficient and low-carbon developer and producer of high-value gas. We know how important it is to all our stakeholders that IOG’s contribution to UK gas supply is consistent with a successful UK energy transition and the Paris Accord objectives. That is why we have committed to Scope 1 and 2 Net Zero, not as a future pledge but starting right now in 2021.
In our 2020 Climate Change and Sustainability policy we committed to a detailed Emissions Assessment as our primary ESG objective for 2021 and I’m pleased that it confirms our very low carbon intensity operating model. Maximising the value of domestic energy resources with this Net Zero policy makes IOG a leading exponent of the OGA’s revised strategy, which should be an important differentiator as we look to scale up the business.”
Christophe Malaurie, Senior Vice President at Genesis, said:
“Genesis has been extremely pleased to work with IOG to help bring practical implementation of their ESG commitments. Genesis’ mission is to be a trusted adviser to its clients to help accelerate the journey towards a more sustainable future and it is especially heartening to have our class leading environment, technical and commercial skills utilised by IOG as an integral part of their low carbon journey”.
IOG has always stated that it was to be a UK domestic gas producer and with as close to net zero status as possible. The fact that they are starting right now is very creditable and sets the marker for others in the sector, doing nothing is no longer an option.
President has provided an operational update in relation to its oil and gas activities in Argentina and Paraguay as well as the contemplated listing of Atome on the London Stock Exchange.
The new oil treatment plant at the Puesto Flores field, Rio Negro, Argentina is fully operational with savings in line with expectations at approximately US$4 per barrel and at Puesto Guardian, Salta Province, Argentina drilling programme to start October.
The targeted initial projected new oil production of 120 M3/d, with no material increases in infrastructure or opex costs giving significant benefit to bottom line is of significant importance. Reprocessing of 202 km2 3D seismic at the Pozo Escondido field, Puesto Guardian Concession, Salta now in progress with results expected in November in time for any follow on drilling that may be identified.
The company confirm that the Paraguay farm-out is on track to receive regulatory approvals by end of the current quarter and that the Atome spin off and listing on the standard list of the London Stock Exchange on track for later this year.
Peter Levine, Chairman, commented
“We have much to look forward to in the coming months with at least three distinct initiatives, Salta, Paraguay and Atome that could each have a material impact on the Group
“The market can expect an increasing level of newsflow as we move towards the final part of the year
Trinity Exploration & Production
‘The Board of Trinity Exploration & Production is saddened to announce the sudden death of Bruce Dingwall, CBE, Executive Chairman, who passed away on 3 August 2021, aged 61. Bruce founded Trinity in 2005, following the acquisition of Venture Production Plc’s Trinidadian assets, and became Executive Chairman of the Group in 2013′.
Jeremy Bridglalsingh, Managing Director, said:
“We are deeply saddened and shocked by Bruce’s death. First and foremost, our thoughts are with his family at this difficult time, and we extend to them our deepest sympathies.
“No-one can escape the fact that Bruce was instrumental in the formation, growth and success of Trinity over the years. He will be sorely missed, not only as a colleague, but also as a close friend to so many of us within the Trinity team. We all remain committed to building on Bruce’s legacy through delivering against the growth opportunities that the business now has.”
Bruce Dingwall CBE was born in Trinidad 61 years ago, the son of a doctor who worked for an oil company which made his entry into the industry a natural choice and he joined Exxon after unsurprisingly studying at Fettes and Aberdeen University.
Best known in the industry for being a founder of Venture Production it was a travesty that it was taken over in a contested bid but Bruce had set up a highly successful vehicle. Given his background it came as no surprise that Trinity became the ideal vehicle for him and he was determined to make it succeed, something I’m sure he would have done.
I am proud to be able to say that I was a friend of Bruce’s, a real gentleman who was equally at home in Trinidad on a rig or developing a new plan with colleagues, or in his beloved Perthshire. Having shot with him in the past I can testify to his eye, love for game and immense hospitality plus a great sense of humour and ability to tell a story. He was also a man of the water, as a youngster he wanted to be an Olympic swimmer so he would have loved this week in Tokyo. He was a keen yachtsman and I managed to see him occasionally at the Royal Thames Yacht Club.
But most of all he was a kind, compassionate man, always thinking about other people and he gave everything his all, I reckon if you can say that about someone then you must have been a top bloke which basically was what he was, a top bloke. My thoughts and prayers go out to his family at home and his second family at Trinity Exploration in San Fernando, Trinity, we will all miss him.
Over to Tokyo where Team GB has had another good day. Sky Brown, aged 13 won a bronze in skateboarding and Hannah Mills and Eilidh McIntyre won gold in sailing 470 class. Ben Maher has won a gold in the individual show jumping and Ben Whittaker won a silver and Frazer Clarke a bronze in the boxing ring.
The 1st test between England and India started today at Trent Bridge, England has started indifferently and are 138-4 as I write.