LNG

Italian major Eni said it had begun to introduce feed gas into the “Tango FLNG” floating production plant ahead of the shipping of the first cargo in a project located offshore the Republic of Congo in West Africa.

Exmar NV, the supplier of floating liquefied natural gas import facilities and an FLNG production unit to the Netherlands and the Republic of Congo respectively, has issued clarification to a letter sent to shareholders on the voluntary public takeover bid launched by Saverex NV for Exmar and open for acceptance until September 15.

The moves over the takeover process begun in June 2023 and involving Saverex, the holding company of the family of Exmar Executive Chairman Nicolas Saverys, came as Exmar also reported its first-half earnings.

Exmar revenues jumped to $200.2 million in the first six months of 2023 compared with $57.1M in the same period of 2022.

Proft returns

The Antwerp, Belgium-based company’s net profits amounted to $2M versus a loss of $8.5M in last year’s first half.

In regard to its latest letter to shareholders, the company said this may have “created the impression with certain shareholders that they are under an obligation to sell” their shares.

“This certainly was not the company’s intention and we, therefore, ask you to disregard this Letter and we hereby rectify that each shareholder is free to either tender or not to tender their shares to Saverex,” explained the company

“In the event shareholders have already tendered their shares in this second acceptance period, they also have the right to retract their tender,” it added.

“Certain shareholders have allegedly been approached in the name of the company, to convince or induce them to tender their shares to Saverex. The company takes the opportunity to underline that it has not taken such initiative and it would not support any such actions,” it declared.

FLNG progress

In the earnings report, Exmar, said that the “FSRU Eemshaven LNG” chartered to an affiliate of Dutch utility Gasunie has been running steadily at 300 million standard cubic feet per day of capacity.

Exmar added that progress was being made on the Congo export project involving the conventional LNG carrier “Excalibur”, which is undergoing conversion to a floating storage unit (FSU).

The “Excalibur” will be used alongside the “Tango FLNG” production vessel in a project being developed by Italian oil and gas major Eni.

Exmar retains an extensive fleet of other vessels, including three Vary Large Gas Carriers, 17 mid-sized liquefied petroleum gas carriers, two newbuilds and 10 pressurised carriers.

“The three VLGCs continue under their current employment. The VLGC market continues to perform well and prospects for the remainder of 2023 are positive,” stated Exmar.

“In the Midsize Gas Carriers (MGC) market, 2022 was an eventful year for LPG and ammonia with increased freight and higher ton-mile, while 2023 has seen a correction with reduced ammonia shipping demand, while LPG trade remained robust,” the company added.

“Owners managed to keep MGC hire rates at good levels despite recent newbuilding deliveries,” Exmar said.

TotalEnergies Chairman and Chief Executive of Patrick Pouyanné explained to shareholders the positive consequences of fighting off moves by environmentally extremist activists and remaining on track to increase liquefied natural gas and other hydrocarbons supplies needed now.

The LNG carrier “Lobito” with 160,000 cubic metres capacity has just lifted the 400th cargo from the Soyo LNG export plant in Angola that has made the southwest African nation a key global supplier for the past 10 years and an example of how oil and gas and LNG can change lives in developing economies.

Belgian shipping company Exmar, which chartered a regasification barge to the Netherlands and sold a floating LNG production vessel to Italy’s Eni for deployment in Africa, said the takeover process had begun involving Saverex NV, the holding company of the family of Exmar Executive Chairman Nicolas Saverys.

Italian energy company Eni said the “Coral-Sul FLNG” production vessel offshore Mozambique shipped its first cargo from the Rovuma Basin to launch the southeast African nation as an LNG exporter.

China’s Cosco Shipping Heavy Industry said it had completed the construction of the floating production, storage and offloading (FPSO) unit that will be deployed as part of the BP-led floating LNG export project offshore the West African nations of Mauritania and Senegal.

Kosmos Energy, based in Dallas, Texas, is the partner of BP in the joint venture centred on the Greater Tortue-Ahmeyim gas fields, the first phase of which is about 80 percent complete.

The first Mauritania-Senegal FLNG production facility is scheduled to have first gas in early 2023.

The Greater Tortue-Ahmeyim LNG project has the FPSO as one of its key installations.

As part of support for the FPSO, mooring piles were pre-installed offshore while Cosco Shipping was completing the facility.

Cosco Shipping confirmed it had completed the construction of the FPSO at its Qidong shipyard and a completion ceremony had been held.

Dimensions

The Chinese company said the FPSO is 270 metres in length, 54.5 metres wide, 31.5 metres deep and the living quarters can accommodate 140 people.

Cosco was responsible for the FPSO’s main hull and living quarters, as well as the construction of topside modules.

“This FPSO is a key part of the Greater Tortue-Ahmeyim LNG project and will soon sail to Mauritania and Senegal to create a new energy hub in Africa,” added a statement.

In addition to the FPSO, a floating liquefaction plant is being completed at Singapore’s Keppel Shipyard.

This involves the conversion to a liquefaction facility of the conventional LNG carrier, the “Gimi”, which will have 2.5 million tonne per annum of output.

The FPSO will process gas from the Tortue-Ahmeyim field, removing heavier hydrocarbon components, prior to delivering it to the FLNG hull.

The Greater Tortue-Ahmeyim project is expected to have a second phase producing gas on the Mauritania-Senegal maritime border in partnership with the national oil and gas companies of Senegal and Mauritania, Petrosen and SMHPM respectively.

The 50th anniversary Gastech Exhibition and Conference on LNG, pipeline natural and emerging energies is beginning on September 5 in the Italian city of Milan with global energy leaders and executives set to discuss the growing global gas crisis.

Kosmos Energy, the US-based shareholder in the floating liquefied natural gas joint venture offshore the West African nations of Mauritania and Senegal, has adjusted its shareholdings for the pre-emption rights of Tullow Oil plc of the UK after spending $550 million to acquire shareholdings in oil and gas fields offshore Ghana from Occidental Petroleum of the US.

Kosmos, a specialist in Atlantic Margin exploration and production and based in Dallas, Texas, had agreed in October 2021 to acquire an additional 18 percent interest in the Jubilee field and an additional 11 percent stake in the Tweneboa, Enyenra and Ntomme (TEN) oil and gas fields offshore of Ghana.

Ghana National Petroleum Corp. (GNPC) was also acquiring stakes in the same fields from Occidental for $200M and will be the main partner of Kosmos.

The new Kosmos focus on Ghana comes as FLNG projects being developed with UK major BP offshore Mauritania and Senegal continue to progress, centred on the Greater Tortue-Ahmeyim gas fields.

The first Mauritania-Senegal FLNG production facility is scheduled to have first gas in early 2023.

Kosmos explained that in Ghana after execution of definitive transaction documentation and receipt of required government approvals, Kosmos and Tullow have now concluded their pre-emption transaction.

For another shareholder PetroSA of South Africa, the process is ongoing and remained subject to execution of definitive agreements and required government approvals.

Reductions

Following completion of the pre-emption by both Tullow and PetroSA, the ultimate interest of Kosmos will be reduced in Jubilee by 3.8 percent to 38.3 percent.

Under the changes Kosmos would retain 80 percent of the original acquired interest.

The ultimate Kosmos interest in the Tweneboa, Enyenra and Ntomme oil and gas fields offshore of Ghana will be reduced by 8.3 percent to 19.8 percent with Kosmos retaining 25 percent of the original acquired interest.

The consideration paid to Kosmos from Tullow after taking into account closing adjustments was around $118 million in the first quarter.

An additional $10M is expected to be payable on completion of the PetroSA pre-emption process and Kosmos plans to accelerate debt reduction with the proceeds.

The net 2022 production impact of the pre-emption exercise for Kosmos is a reduction of about 4,000 barrels of oil per day and is expected to result in one less Ghana cargo lifting this year and a reduction in 2022 capital expenditure of around $30M.

LNG progress

Kosmos said in its March 2022 earnings that the Mauritania-Senegal FLNG venture was 70 percent completed.

Both BP and Kosmos said the Greater Tortue-Ahmeyim LNG project had made steady progress in 2021.

All eight process modules have now been lifted onto the deck of the Floating Production Storage Offloading unit and mechanical completion of the process sub-systems was underway,

Construction was also completed of the 21st and final caisson of the breakwater and the subsea pipe-laying vessel completed its nautical trials in preparation for the offshore installation campaign in the second quarter of 2022.

Kosmos said that the FLNG hull had all four mixed-refrigerant compressors lifted onboard and pipe-rack installation operations had commenced.

New Fortress Energy, the New York-based LNG-for-power company. has welcomed a court ruling in its favour in Sri Lanka allowing its floating import project and power joint venture to proceed.