Editorial comment
In light of the FIFA World Cup this July, it seems only right to do a world round-up of the biggest regional upstream oil and gas news from the past month:
Register for free »
Get started now for absolutely FREE, no credit card required.
Kicking things off in North America, Magnolia has acquired WildFire Energy for US$4.06 billion. The acquisition is set to add approximately 810 000 acres across the Eagle Ford and Austin Chalk plays. All assets acquired are also projected to contribute approximately 53 000 boe/d.1
Chevron have temporarily halted production and moved personnel onshore at their Petronius facility in the Gulf of Mexico ahead of tropical storm Bertha.2 With 51% of the total natural gas processing plant capacity and nearly half of the total petroleum refinery capacity in the US being along the Gulf Coast, there is a high risk to these assets facing disruption. This is because Atlantic hurricanes and tropical storms follow the same path up the coast. Moreover, as global temperature rises, extreme weather becomes more common leading to further disruption.3
In Canada, the Oil Sands Alliance is moving forward with the Pathways project in northeast Alberta that will capture 6 million tpy of CO2 by January 2035. This could be increased by a further 10 million tpy of emissions reductions obtained by future Pathways expansions by 2045.4
Keeping the ball rolling, in South America, Argentine energy company Pampa Energia will be proceeding with the US$4.5 billion Rincon de Aranda oil development in the Vaca Muerta shale formation, with support from companies such as Halliburton.5, 6 After record-breaking production earlier this year, Brazil continues to have one of the world’s strongest upstream outlooks. Guyana is also having a strong 2026, with reports suggesting that offshore output was 903 000 bpd in April.7 And Venezuela, acting President Delcy Rodriguez has signed a new oil and gas reform framework, after a turbulent start to the year.8
Shifting play toward the Middle East and Africa, the Strait of Hormuz continues to dominate global markets and international discussion. The brief reopening and subsequent closure of the Strait increased oil price volatility due to the risk of supply disruption. Those relying heavily on Qatari supplies of LNG are also facing uncertainty, as buyers are forced to look elsewhere, particularly in the US, Europe, and Asia.9, 10 However, it did increase revenue for upstream operators in regions including the North Sea, North and South America, and West Africa. Elsewhere in Africa, Nigeria’s Usan field has received a US$1 billion investment from ExxonMobil, and Angola’s recent oil and gas reform is set to help Algeria with new investments in their upstream sector.11, 12
Making the next pass to Asia, high oil prices improve economics for Asian upstream projects. With the launch of Searah, a new 50:50 JV between Petronas and Eni spanning 19 upstream assets, Wood Mackenzie suggests it could have the ability to reshape the Southeast Asian upstream market.13 This further provides the region with greater energy security – something becoming more important in the wake of the decline in exports from the Middle East due to the conflict continuing.
Bringing it home to Europe, and the North Sea is a key player as always, with continued investment and consolidation this year. This was reinforced by the newly announced acquisition of BlueNord by Vår Energy, creating the largest independent oil and gas producer in Europe.14 Moreover from this, the UK’s new Prime Minister, Andy Burnham, is rumoured to announce plans for renewed oil and gas drilling in the North Sea. This is off the back of a 2024 manifesto to honour existing drilling licences.15 Finally, European energy security remains a top priority for policy makers, with a key concern being the supply of jet fuel as the European summer is in full swing.16
(References available upon request.)
