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Shell Starts Production At Vito In US Gulf Of Mexico



Shell Starts Production At Vito In US Gulf Of Mexico

Olushola Okunlade Writes

Shell Offshore Inc., a subsidiary of Shell plc (Shell), announced that production has started at the Shell-operated Vito floating production facility in the US Gulf of Mexico (GoM). With an estimated peak production of 100,000 barrels of oil equivalent per day.

Vito is the company’s first deep-water platform in the GoM to employ a simplified, cost-efficient host design.

Vito is Shell’s 13ᵗʰ deep-water host in the Gulf of Mexico with estimated peak production and current estimated recoverable resources presented above are 100% total gross figures.

Shell is the leading operator in the US Gulf of Mexico for oil and gas production. In addition to operations in Brazil and the US Gulf of Mexico, Shell’s deep-water portfolio includes Argentina Shales organization and frontier exploration opportunities in Mexico, Suriname, Sao Tome & Principe, Argentina, and Namibia.

“Vito is an excellent example of how we are approaching our projects to meet the energy demands of today and tomorrow, while remaining resilient as we work toward achieving net zero emissions by 2050,” said Zoe Yujnovich, Shell’s Upstream Director, adding, “Building on more than 40 years of deep-water expertise, projects like Vito enable us to generate greater value from the GoM, where our production has amongst the lowest greenhouse gas intensity in the world for producing oil.”

The Vito development is owned by Shell Offshore Inc. (63.11% operator) and Equinor (36.89%). In 2015, the original host design was rescoped and simplified, resulting in a reduction of approximately 80% in CO₂ emissions over the lifetime of the facility as well as a cost reduction of more than 70% from the original host concept.

Vito also serves as the design standard for our Whale project that will feature a 99% replication of the Vito hull and 80% of Vito’s topsides.

Shell’s Powering Progress strategy to thrive through the energy transition includes increasing investment in lower-carbon energy solutions while continuing to pursue the most energy-efficient and highest-return Upstream investments.


New Energy Security Scenarios Explore How The World Could Evolve



Shell Starts Production At Vito In US Gulf Of Mexico

Shell plc has today published its latest scenarios: the Energy Security Scenarios. The two new scenarios explore how the world could evolve following Russia’s invasion of Ukraine.

Specifically, they look into the possible energy and climate outcomes that could result from a world that has security as its dominant concern.

Shell Scenarios are not predictions or expectations of what will happen, or what will probably happen. They are not expressions of Shell’s strategy, and they are not Shell’s business plan; they are one of the many inputs used by Shell to stretch thinking whilst making decisions.

The first scenario, called Archipelagos, follows how today’s pressures could play out to the end of the century. National interest remains key and renewables are mainly seen as a way to improve energy security. By 2100, net-zero emissions is within sight, but the world has failed to meet the goal of the Paris Agreement. This scenario is “exploratory”: it seeks to plot a course from where the world stood in 2022.

The second scenario, called Sky 2050, shows just how fast the world must move to meet the goal of the Paris Agreement. Global climate security becomes the primary concern. Nations race to switch to cleaner energy and a competitive landscape emerges for technology, minerals, and manufacturing capacity. Competition drives rapid change and the world reaches net-zero emissions in 2050. This scenario is “normative” and extremely challenging: it set goals of net-zero emissions by 2050 and warming restricted to below 1.5°C by 2100, and then worked back to the realities of 2022 to explore how these endpoints could be reached.

Key points from the Energy Security Scenarios include:

  • Fossil fuels lose market share. The energy system is decarbonising, the question is: how fast?
  • There is no realistic path to an instant and steep drop in emissions.
  • The average temperature rise is highly likely to breach 1.5°C.
  • The future of energy is electricity, although hydrogen and bioenergy have significant roles to play.
  • Bringing the temperature rises back down below 1.5°C will require large-scale carbon removal and storage.

Scenarios are informed by data, constructed using models, and contain insights from leading experts in the relevant fields. Ultimately, for all readers, scenarios are intended as an aid to making better decisions. They stretch minds, broaden horizons and explore assumptions.

Explore the Energy Security Scenarios, including a summary, at to find out more.

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Oil & Gas

Budget 2023: Fears As Oil Price Drops 3% To $73.87 Per Barrel



Nigeria Boosts Oil Production By 200,000b/d
There were fears, weekend, as the price of Nigeria’s premium oil grade, Bonny Light, dropped to $73.87 per barrel, from $76.37, recorded last week, indicating a fall of three percent.

The Federal government had benchmarked the 2023 budget at $75 per barrel and 1.8 million barrels per day, bpd, including condensate, which Nigeria has the capacity to produce between 300,000 – 400,000 barrels per day, bpd.

The drop in price that also affected other crudes was attributed to the global economic slowdown, especially some developed economies that buy commercial oil from Nigeria and other major oil nations.

In its latest report obtained by Vanguard, yesterday, Goldman Sachs – a research organization – disclosed that based on the global economic slowdown, it would not be possible for oil to hit $100 per barrel this year, which it had earlier forecasted.

Goldman Sachs noted that the current poor state of the global economy has already culminated in the collapse of two big banks in the United States.

The report which now expects oil price to hover at $94 per barrel in the coming 12 months, before landing at $97 per barrel in 2024, stated: “Oil prices have plunged despite the China demand boom given banking stress, recession fears, and an exodus of investor flows.”

Oil price, production

In its March 2023 Monthly Oil Market Report, Monthly Oil Market Reports, MOMRs, obtained by Vanguard, the Organisation of Petroleum Exporting Countries, OPEC, that Nigeria’s oil production rose MoM by 3.8 percent to 1.306 million bpd in February 2023, from 1.258 million bpd recorded in the preceding month of January 2023.

Also, on year-on-year, YoY, the nation’s oil production increased by 3.8 percent to 1.306 million bpd in February 2023, from 1.258 million bp/d recorded in the corresponding period of 2022.

Budget 2023 challenged — OGSPAN

Despite the rise in oil output, the National President, Oil, and Gas Service Providers Association of Nigeria, OGSPAN, Mazi Colman Obasi, observed that Nigeria might be challenged to meet its 1.8 million bpd OPEC quota, excluding condensate, because of increased pipeline vandalism, oil theft and illegal refining in the Niger Delta.

He said: “The governments still have a long way to go in funding the budget. We should not be comfortable because of the recent increase in production. There are indications that the recent gains remain by far less than the huge volumes we still lost to oil thieves in the Niger Delta.”

But in another interview with Vanguard, the Lead promoter, EnergyHub Nigeria, Prof. Felix Amieyeofori, noted that the current market situation would be short-lived.

He said: “This is seasonal. The average price forecast as China stabilizes this year will be around $80-100 bpd. It will bounce back.”

New administration should implement PIA — EnergyHub

He said: “The new Government in 2023 must ensure full implementation of the PIA in order to optimize the operating environment for investors. Otherwise, funding will be a challenge. There must be collective efforts from all sectors and agencies between government and the private sectors to midwife the 2023 budget targets.”

We intend to produce 2.2 million bpd — NNPC Limited

Recently, the Nigerian National Petroleum Company (NNPC) Limited said in 2023, Nigeria was working to realize an average of 2.2 million barrels per day (bpd), including condensate.

Speaking in an interview session at the 13th global United Arab Emirate, UAE virtual energy forum, Mele Kyari, group chief executive officer (GCEO), NNPC Limited, who attributed low production to the limited investment of the past, had said: “In our case, we have a different challenge other than just a lack of investment in the last four to five years. There has been no investment in the last four to five years. That is correct. That is true in many other jurisdictions where cash flows do not support the investment.

“In our case, we had a different challenge – security challenge – that became very manifest in early-2022. And of course, we took definite steps to bring back production and this is paying up.

“For instance, in around July, our net crude oil, excluding condensate, came down to around 1 million bpd. That is the lowest ever in the history of our country and our industry.”

He also said: “So for us, we see a trajectory of restoring production, including condensate, within the year. Definitely, we believe that we can hit our target of 2.2 million bpd but our OPEC target is 1.8 million bpd, but we know that it is practical to do 2.2 million within 2023.”

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Oil & Gas

NLNG’s Bonny Plant Still In Operation



NLNG Refutes Online Publication By Nigerian Daily

Olushola Okunlade Writes

Nigeria LNG Limited (NLNG) confirms that operations at its plant on Bonny Island are still active despite a Force Majeure declared in October 2022 and feed gas supply challenges.

The plant continues to produce LNG and LPG commensurate to the feed gas it receives from its upstream gas suppliers.

In addition to ensuring steady operation, NLNG remains committed to its culture of transparency and maintains consistent communication with key stakeholders on developments in the upstream sector.

The company is closely monitoring the resolution of supply challenges by all relevant parties.

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