Eni Concludes Sale of Alaska Oil and Gas Assets

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Today’s Key Takeaways:  Eni leaves Alaska. China signs 15-year LNG deal with TotalEnergies. Pogo’s Fantastic Achievement. Oil executives give millions to Trump campaign.

OIL:

Eni Concludes $1B Sale of Offshore Oil and Gas Assets in Alaska
Offshore Energy, November 4, 2024

Italian energy giant Eni has completed the sale of its Nikaitchuq and Oooguruk assets upstream offshore assets in Alaska to Hilcorp for $1 billion.

The transaction, which received the approval of all relevant authorities, is in line with Eni’s strategy focused on the rationalization of the upstream activities by rebalancing its portfolio and divesting non-strategic assets.

Eni acquired 70% and operatorship of the Oooguruk oil field in Alaska, increasing its interest to 100% back in 2019.

The Oooguruk oil field, located in the Beaufort Sea approximately 5 kilometers off Alaska’s North Slope coast, has been in production since 2008.

Eni is also the operator with full working interest in the Nikaitchuq oil field, located approximately 13 km North-East of Oooguruk. Nikaitchuq has been in production since 2011.

Eni will continue to be present in the United States in the upstream of Gulf of Mexico as well as in energy transition projects in the renewables, biofuels, and magnetic fusion.

GAS:

China’s Sinopec signs agreement for 15-yr LNG deal with TotalEnergies
Chen Aizhu, Reuters, November 4, 2024

China’s state oil and gas major Sinopec Corp said on Monday it has signed Heads of Agreement to buy from TotalEnergies (TTEF.PA), opens new tab two million metric tons of liquefied natural gas a year for 15 yrs starting 2028.

The deal, signed in Shanghai at the China International Import Expo, is a step forward from a strategic alliance the companies agreed in May, Sinopec said in a statement.

MINING:

Pogo on pace to top 280k oz gold in 2024
Shane Lasley, October 25, 2024

Despite a five-week shutdown, the Alaska mine produced 56,000 oz gold in Q3; now positioned for 300,000 oz/yr production.

Northern Star Resources Ltd. Oct. 24 reported that, despite the mill being down for more than a month for maintenance and repairs, its Pogo Mine in Alaska produced 56,131 oz of gold during the third quarter.

Over the first nine months of this year, Pogo poured 206,641 oz of gold, putting the company’s only operation outside of Australia on pace to top 280,000 oz in 2024.

The third-quarter shutdown at Pogo was preplanned to carry out a normal relining of the mill, plus a major rebuild of one of the motors. Given this scheduled downtime, the company only expected the high-grade underground mine in Alaska to produce 50,000 oz of gold during the third quarter of calendar year 2024 and the first quarter of Northern Star’s fiscal year 2025.

During an Oct. 24 call with investors and analysts, Northern Star Managing Director and CEO Stuart Tonkin commended its Alaskan team for the “fantastic achievement” of successfully completing the major mill rebuild and still delivering a strong quarter of gold production.

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POLITICS:

ELECTION COUNTDOWN – OIL INTERESTS GIVE MILLIONS TO TRUMP CAMPAIGN: High-profile oil and gas executives such as Harold Hamm of Continental Resources, Kelcy Warren of Energy Transfer Partners, and Jeffery Hildebrand of Hilcorp Energy Co. contributed more than $15 million to former President Donald Trump’s campaign, the New York Times reports

The New York Times said oil and gas interests have given around $75 million to the Trump campaign, the Republican National Committee, and other affiliated groups. 

Trump has promised to lower energy costs and accelerate fossil fuel production. “We will drill, baby, drill, which will lead to a large-scale decline in prices,” Trump said. The Trump campaign has not met the goal of raising $1 billion, but the oil industry remains a top donor. 

From the Washington Examiner, Daily on Energy, November 2, 2024