Ecopetrol to drill test well in deepwater Caribbean Sea

Alex Procyk,  Aug. 17, 2023

Ecopetrol SA will drill the Orca Norte-1 delimiting well to verify hydrocarbons in an early discovery in the Orca-1 well on Tayrona block at Guajira basin in the deepwater Caribbean Sea, 40 km offshore La Guajira. Colombia.

The well will be drilled by the Noble Discover semi-submersible drilling rig in fourth-quarter 2023. It will be the first deepwater well operated directly by Ecopetrol.

Development will occur only if the reservoir is confirmed. Due to high investment and long lead times for development, the company has started planning for a gas pipeline from Orca to the Chuchupa B platform and further on to land. The company is currently finalizing details of the processes required to support these works, such as the onshore operating base, support vessels and drilling services.

In 2014, a gas accumulation was confirmed at 3,600 m in Orca-1, marking the first discovery in the history of exploratory research in the Colombian Caribbean deep waters. Drilling concluded in September, reaching a total depth of 4,240 m in 674 m of water (OGJ Online, Dec. 3, 2014). Petrobras operates the Tayrona block, which is expected to deliver Colombia’s first gas production from deep water fields in 2026.

 

HMS Dauntless

, August 5th 2023 –

The Royal Navy’s most advanced destroyer has completed a large-scale exercise off the coast of Colombia, marking a return to full front-line action after a major overhaul.

 HMS Dauntless has deployed to the Caribbean Sea to counter drugs smugglers alongside the US Coast Guard and provide support and reassurance to British Overseas Territories during the region’s hurricane season from June to November.

Dauntless in the Caribbean is replacing HMS Medway currently as Falklands patrol.

Kicking off the deployment, Dauntless – which returns to action fitted with  new efficient engines – took part in the world’s longest-running multinational military drills, sailing into Cartagena in Colombia for Exercise Unitas. Dating back to 1959, Unitas (Latin for ‘united’) brings nations together to show a united front in the fight for stability and prosperity in the region, making it the United States Southern Command’s most important exercise. Presence of the Type 45 destroyer  – Dauntless was participating in her second Unitas (the first was in 2012) – shows the UK’s commitment to the deepening relationship with Colombia,  the only Latin American country to be a NATO partner nation.

The destroyer’s Wildcat from 815 Naval Air Squadron was in the thick of the action carrying Sting Ray light torpedoes, hunting down submarines and simulating attacks. Assisted by Dauntless’ powerful array of sensors and a US Navy P8 Maritime Patrol Aircraft, the Wildcat showed its prowess in anti-submarine warfare. It was a major step forward with the Wildcat fitted with new weapon wings – which can hold a variety of armaments for use on a range of targets – as it proves its ability to hunt and destroy submarines and ships.

20 participating nations included Belize, Brazil, Canada, Chile, Colombia, Dominican Republic, Ecuador, France, Germany, Honduras, Jamaica, Mexico, Panama, Peru, Paraguay, Spain, South Korea, UK, United States and Uruguay.

The task group took part in warfare operations, including firing weapons and amphibious landings, while Dauntless operated in her main role as air defence destroyer.
The Royal Navy is one of our oldest allies of Colombia.

While in Cartagena, the Second Sea Lord, Vice Admiral Martin Connell, visited as Dauntless hosted dignitaries and a reception with a performance by the Royal Marines Band.

“We work very closely with the Armed Forces of Colombia and in particular the Colombia Navy in order to co-operate against illicit trading.“

Dauntless’ Commander Dorrington said ”the advanced destroyer is deployed to the Caribbean as part of the UK’s enduring commitment to our overseas territories and nations in the Commonwealth. We stand ready to support in the event of a natural disaster.” (Royal Navy)

 

 

 

Guyana, Brazil  and Argentina   leading  LatAm oil boom

Aug 06, 2023

In a surprising turn of events, the International Energy Agency (IEA) projects  a significant oil boom  in   Latin America over the next five years. Despite the ongoing climate change crisis, global oil production is expected to increase, with Brazil, Guyana, and Argentina   accounting  for a quarter of  world oil production, marking a new chapter in the regional energy landscape.

The Economist  reported   that the era of oil dominance once limited to  Venezuela, Mexico, Ecuador, and Colombia appears to be shifting. Francisco Monaldi, Director of the Latin American Energy Program at the Baker Institute in Texas, suggested that these earlier oil-producers might find it difficult to reverse their decline.  Instead, the spotlight has shifted to Guyana, Brazil, and Argentina as they embrace a fresh wave of oil production.

Guyana,  once considered  small and economically challenged, experienced a transformation following  discovery of significant oil reserves in the Stabroek Block offshore by ExxonMobil in 2015. Now, with estimated proven reserves of around 11 billion barrels, Guyana is poised to become the country with the highest oil wealth per capita in the world, potentially surpassing even Kuwait. This newfound wealth  has driven Guyana’s per capita income to increase ninefold over the past two decades, solidifying its position as the world’s fastest-growing economy.

Brazil, the giant of Latin America, stands as another formidable player in the impending oil boom, boasting vast underwater oil deposits, positioning it as one of the world’s largest marine oil sources. In 2017, Brazil overtook Mexico to become Latin America’s top oil producer, a trend that  continues as its oil production surged to 2.2 million barrels in 2022. What sets Guyana and Brazil apart is not just their production volume, but also their commitment to more efficient, profitable and sustainable oil extraction methods.

Both countries emit a lower amount of CO2 per barrel produced compared to many other nations, making their endeavours seemingly more environmentally conscious.

However, the projected oil boom is not without its complexities. As the global energy landscape evolves, renewable energy sources are anticipated to gain more prominence in the latter part of the decade, potentially altering the trajectory of oil demand and production. Emphasis was also placed on the fact that the balance between fossil fuels and renewable energy remains a critical consideration for policymakers and industries alike.

While Latin America is on the cusp of a significant oil boom, with Guyana and Brazil emerging as the primary drivers of this transformation it is also important that a watchful eye is kept on how the citizens will benefit. In addition, as the world grapples with climate change concerns, the region’s newfound oil prospects present both opportunities and challenges for the years to come.

 

Future of Caribbean  Energy

1-3 November 2023 , Barbados.

Hosted by the Government of Barbados under the patronage of the Ministry of Energy and Business and co-hosts BNOCL, NCP, Invest Barbados and Expert Barbados, the inaugural Caribbean Energies & Investment Summit (CEIS 2023) will take place from 1-3 November 2023 in Bridgetown, Barbados.

Under the theme “Sustainable Energy Paths for the Caribbean”  CEIS 2023 will deliver an annual must attend event for regional and international collaboration to drive energy security, democracy of energy supply, industry decarbonization and new paths to create a sustainable energy future for the region while attracting new investment opportunities for the region.

CEIS delivers cutting edge content and industry insight. The executive programme across three days is structured around key themes and topics and designed with clear objectives and outcomes to catalyse and accelerate regional sustainable development.

The programme will welcome over 150 speakers including:

• • • • government officials,
      • CEOs,
      • policy makers,
      • energy experts,
      • innovators,
      • leaders and
      • the entire value chain in the Caribbean sustainable energy market.

Regional and international energy companies, investors, developers, and technology providers can meet, collaborate and agree benchmarks and actionable outcomes in line with the Vision to 2030 and Net Zero Emissions by 2050.

Energy leaders confirmed to speak include:

• • • • Senator The Hon. Lisa R. Cummins, Minister of Energy and Business Development, The Government of Barbados
      • Joseph Cox, Assistant Secretary-General of the Directorate of Economic Integration, Innovation and Development, Caribbean Community (CARICOM)
      • Edwin Edwards, Chief Executive Officer, Atom Solutions Inc.
      • Kiesha Farnum, Director, Public Sector Projects, Caribbean, Climate-Smart Accelerator
      • Dr. James Fletcher, Chairman of the Executive Board, Caribbean Centre for Renewable Energy and Energy Efficiency
      • Kaye-Anne Greenidge, Chief Executive Officer, Invest Barbados
      • Devon Gardner, Deputy Executive-Director and Head Technical Programmes, Caribbean Centre for Renewable Energy and Energy Efficiency
      • Dr. Legena Henry, PhD, CEO, Rum and Sargassum Inc
      • Mark Hill, Chief Executive Officer, Export Barbados
      • Deodat Maharaj, Executive Director, Caribbean Export Development Agency
      • Judith Pryor, First Vice President and Vice Chair of the Board of Directors, Export-Import Bank of the United States

FOR GENERAL ENQUIRIES

Alex Moulds, Event director, amoulds@gep-events.com   

Cell: +44 77 0627 8111      Whatsapp: +44 78 3473 3975

FOR SPONSORSHIP & EXHIBITION ENQUIRIES

Sadia Malick, Commercial Director,  smalick@gep-events.com

Cell: +44 7931 289382

FOR DELEGATE SALES

James Eka,  Business Development Manager,  jeka@gep-events.com

Cell: +44 7412 073478

FOR SPEAKER ENQUIRIES

Manuela Perez,  Programme Manager,  mperez@gep-events.com

Cell: +57 318 653 7575

FOR OPERATIONS & LOGISTIC ENQUIRIES

Marcela Cuartas,  Marketing & Operations Director,  mcuartas@gep-events.com

Cell: +44 7577 932329

 

 

 

Panama Canal

By Lisa Baertlein and Marianna Parraga

August 21, 2023

LOS ANGELES/HOUSTON, Aug 21 (Reuters) – Before the Ever Max ship carrying lava lamps, sofas, Halloween costumes and artificial Christmas trees could make its inaugural Panama Canal voyage this month, a historic drought forced it to drop weight by offloading hundreds of containers.

Weather-related disruptions denied the vessel, owned by Taiwanese shipping company Evergreen Marine, a chance on Aug. 1 to set a record for carrying the most containers through the vital maritime shortcut that connects the Pacific and Atlantic oceans.

The Panama Canal Authority reduced maximum ship weights and daily ship crossings in a bid to conserve water. Maritime transportation experts fear such events could become the new normal as rainfall deficits in the world’s fifth-wettest country spotlight climate risks affecting the ocean shipping industry that moves 80% of global trade.

Ship owners have the options of carrying less cargo, shifting to alternate routes that can add thousands of miles to the trip or grappling with queues that earlier this month backed up 160 vessels and delayed some ships by as much as 21 days.The restrictions already are sending China-U.S. spot shipping prices up as much as 36% amid soaring sea temperatures that climate scientists warn could supercharge extreme weather.

“You have to wave a caution flag because the temperatures are so far above normal,” said Drew Lerner, founder and senior agriculture meteorologist at World Weather, whose customers include global commodity traders.

Canal operators are on a tightrope as they work to manage maritime trade disruption and prepare for what is shaping up to be an even drier period next year, said Peter Sand, chief analyst at air and ocean freight rate benchmarking platform Xeneta.

Over 14,000 ships crossed the canal in 2022. Container ships are the most common users of the Panama Canal and transport over 40% of consumer goods traded between Northeast Asia and the U.S. East Coast.

U.S-bound vessels caught in the bottlenecks have carried toys, auto parts, BYD solar panels, water treatment equipment, diabetes testing kits and other goods, according to data from Steve Ferreira, CEO of a company that audits ocean shipping bills.

Restrictions at the canal started earlier this year, affecting about 170 countries and virtually every type of good – including soybeans and liquefied natural gas from the United States, copper and fresh cherries from Chile and beef from Brazil. Bulk carriers that transport commodities from corn to iron ore, as well as tankers that move oil, fuel, gas and chemicals also are affected. Some energy companies are rerouting vessels laden with coal and liquefied natural gas to the Suez Canal.

WATER WATCH

A naturally occurring El Nino climate pattern associated with warmer-than-usual water in the central and eastern tropical Pacific Ocean is contributing to Panama’s drought. The area around the canal is experiencing one of the two driest years in the country’s 143 years of keeping records, data from the canal authority and the Smithsonian Tropical Research Institute (STRI) showed. Rainfall measurements around the area are 30-50% below normal.

Water levels in Gatun Lake, the rain-fed principal reservoir that floats ships through the Panama Canal’s lock system, have remained below normal despite accumulation from the current rainy season.

A potential early start to Panama’s dry season and hotter-than-average temperatures typical of major El Nino events in the country could increase evaporation from Gatun Lake and result in near-record low water levels by March or April 2024, said STRI’s Steven Paton.

“It’s the perfect storm of events,” said Paton, who has monitored rain patterns in the Central American country for more than three decades. The frequency of major El Nino drying patterns has risen significantly during the last 25 years of the canal’s 109-year history. If that continues, “it will be increasingly difficult for (the Panama Canal) to guarantee that the largest ships are going to be able to get through,” Paton said.

BRACING FOR MORE CUTS

Canal operators have lowered ship weight limits to accommodate lower water depth – posing a problem for large vessels like the Ever Max,  built to carry over 8,650 40-foot (12-metre) cargo boxes. It arrived at the Pacific side of the canal over the limit even though it was only carrying the equivalent of 7,373 containers. The vessel unloaded about 700 containers onto trains, retrieved them on the Atlantic side and continued on to the U.S. East Coast, according to the Canal Authority and Eikon vessel tracking. Ship owner Evergreen Marine (2603.TW) declined comment.

Canal operators  cut the number of daily ship crossings to 32 from about 36 during normal operations since each passage requires about 50 million gallons of water, only a portion of which is recycled. Shipping executives are bracing for more reductions later this year, noting that in 2020 a less severe drought prompted  operators to reduce daily crossings to 27.

“Anyone shipping product around the world should be paying attention to possible disruptions due to climate change,” said Brian Bourke, global chief commercial officer at SEKO Logistics. “The Panama Canal is just the latest example.”

[Reporting by Lisa Baertlein in Los Angeles, Marianna Parraga in Houston, Elida Moreno in Panama City and Louise Breusch Rasmussen in Copenhagen, editing by Deepa Babington]

 

 

 

Venezuela

 Caracas

President Nicolás Maduro Moros  spoke of a new campaign against his country and urged  all citizens to prevent fascism and a coup d’état from filling the streets with violence and sterile confrontation.

Maduro also said in his own TV show that he had ordered the activation of the Peace Squads, with more than four million militiamen nationwide to guarantee the civic-military union. The head of state   spoke    after statements by former Caracas  Mayor Antonio Ledezma.

“With these statements, Antonio Ledezma and all his coup groups are completely naked. We have to prepare ourselves institutionally to defend sovereignty, peace, and internal union. I call for the maximum organization to guarantee the maximum mobilization,” Maduro argued

Exxon asks court to attach awards against Venezuela to Citgo case

Exxon Mobil (NYSE:XOM) for the first time has registered arbitration awards against Venezuela with a U.S. federal court that soon plans an auction of shares in Venezuela-owned oil refiner Citgo Petroleum, Reuters reported Monday.

Exxon’s (XOM) Cerro Negro and La Ceiba oil projects were expropriated by Venezuela in 2007, which led to lengthy international arbitration cases.

The company had not previously participated in the case brought by miner Crystallex, which has drawn at least a dozen other companies seeking to attach their claims; Monday was the deadline to notify the court about claims to be considered.

Exxon (XOM) listed three awards it has won since 2007 – $179M for La Ceiba, $1.4B for Cerro Negro and another $9M for production and export curtailments at Cerro Negro; part of the claims have been paid over time.

[ Source – Seeking Alpha ]