Major Metals Producer Pivots To Renewables

Australia-based iron ore giant Fortescue Metals Group Ltd plans to start producing renewable energy from wind, solar, hydrogen, and ammonia in 2022 or 2023, with an ultimate goal to have as much as 236 gigawatts (GW) of clean energy capacity, founder and chairman Andrew Forrest told Bloomberg in an interview on Monday. Fortescue Metals Group, set up in 2003, currently exports 175 million tons to 180 million tons of iron ore annually, and, according to Bloomberg, the firm is the world’s fourth-largest exporter of iron ore. Fortescue Metals Group plans…

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Libya’s Oil Company Clashes With Central Bank Over Earnings

Libya’s National Oil Corporation (NOC) will not be transferring the revenues from crude oil sales to the Central Bank of Libya until the bank adopts transparent policies on the spending of those revenues, the Libyan state oil firm said on Monday. NOC was responding to a statement from last week from the Central Bank, which, the oil firm says, provided false and misleading figures about the revenues and expenditures between January and October this year. According to NOC, the state oil firm deposited US$3.7 billion to the central bank in…

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Total Bets Big On Libya’s Oil Industry

French Total plans to increase its investments in Libya’s oil industry, the National Oil Corporation said, adding it had discussed with the company raising Libya’s production to “the highest levels.” Total has stakes in several Libyan oil fields, including the nation’s biggest, Sharara. The field, along with many others, was shut down for more than eight months this year after groups affiliated with the eastern government blockade oil export terminals, which pushed Libya’s oil output from above 1 million bpd to less than 100,000 bpd. In late September, when the…

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Oil Search Ready To Restart Alaskan Crude Production

Australian Oil Search plans to make the final investment decision on the Pikka project in Alaska next year and launch production in 2025, chief executive Keiran Wulff told investors in a company announcement this week. The breakeven cost of Pikka has come down to $40 a barrel, but the company and its partner in the development, Spain’s Repsol, plan a further reduction to $35 a barrel by 2025. The cost of the development of Pikka is seen at about $3 billion. “While further appraisal will be required, the 2020 Mitquq…

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Purchasing power

The issue of power purchase, and when it is made, has come up before. Recently, PSO said that it bought additional furnace oil to meet a shortfall by K-Electric in Karachi, so that the people of Karachi would not suffer. The question, however, is why furnace oil was bought when a few months before in August and September, LNG was available at far lower costs. Purchasing it at that point and using it in the future could have saved the country millions of rupees. The Ministry of Energy has denied…

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Vision for an energy secure Punjab

Energy is an essential ingredient of socio-economic development and economic growth. Over the past two years the PTI government which came to power on the promise of increasing economic development has made large strides in ensuring an enhanced supply of commercial energy. Currently Pakistan produces a total of 33,961 MW of energy. Over half of Pakistan’s generation capacity is met by Punjab which is responsible for producing 16,322 MW and consumes 70% of all electricity produced within the country. Punjab’s current electricity consumption lies around 16,915 MW and is projected…

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Libya’s Oil Production Exceeds 1.2 Million Bpd

Oil production in Libya has already exceeded 1.2 million barrels per day (bpd), a source in Libya’s oil industry told Reuters on Friday, while this faster-than-expected output resumption could give OPEC+ yet another reason to reconsider its current plan to ease the ongoing cuts by 2 million bpd from January. Libya’s oil production has now reached 1.215 million bpd, the source told Reuters. Production in Libya started to rise in the middle of September after the self-styled Libyan National Army (LNA) of General Khalifa Haftar lifted the eight-month-long blockade on…

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Michigan Order Enbridge To Shut Down Line 5

Michigan’s Governor Gretchen Whitmer and the director of the state’s Department of Natural Resources have revoked Enbridge’s easement for the operation of the twin Line 5 pipeline, citing repeated violations of the easement and the need to protect the Great Lakes. “The state is revoking the easement for violation of the public trust doctrine, given the unreasonable risk that continued operation of the dual pipelines poses to the Great Lakes,” an official statement said. “Moreover, the state is terminating the easement based on Enbridge’s persistent and incurable violations of the…

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African Oil Producers Face Slump In Production

The five largest producers of crude oil in Africa face a combined production decline of 19 percent as a result of the pandemic’s effect on oil demand and the acceleration of energy transition efforts, according to a new report by PwC. The Africa oil and gas review 2020 notes that the pandemic has caused the worst oil industry crisis in history and that oil demand will likely never recover to pre-pandemic levels. This demand loss will also drive lower revenues for oil exporters, the authors of the reports said, helped…

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Ghana Tells Eni To Merge Oil Field With Local Discovery

Ghana has told Italy’s Eni to merge its Sankofa offshore discovery with another field, discovered by a locally based company, Bloomberg reports, citing a letter by Ghanaian Energy Minister John-Peter Amewu. The letter follows the failure of Eni and the local company, Springfield Exploration and Production, to reach an agreement on how to develop the fields jointly. Eni, which operates the Sankofa discovery together with commodity trading giant Vitol, is against the move, according to the report, arguing that Springfield has not made sufficient tests at its discovery, Afina, to…

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