AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
.jpg)
Highlights
- OGUK report found that UK oil and gas companies are estimated to spend about £16.6 billion on decommissioning over the next 10 years, as business activity recovers from the pandemic
- About 1.2 million tonnes of disused oil and gas structures are expected to be recovered.
UK oil and gas companies are estimated to spend about £16.6 billion on decommissioning over the next 10 years, as business activity recovers from the pandemic, according to media reports citing the 12th Decommissioning Insight 2021 report by offshore industry body Oil and Gas UK (OGUK).
The latest decommissioning report found that about 1.2 million tonnes of disused oil and gas installations will be recovered for recycling, reuse, or disposal. An estimated 150 wells are expected to be decommissioned in 2021, compared to 84 wells in the last year.
These oil and gas wells and other infrastructure equipment are located in the North Sea.
According to the report, nearly 600 wells and 45 platform structures will be decommissioned. The report also stated about 69 km pipelines, nearly 6,000 tonnes of subsea structures and other equipment are anticipated to be removed.
The OGUK stated that approximately 95 per cent of the decommissioned material from disused oil and gas platforms and other structures are generally recycled.
The move forms a key part of the industry’s shift towards a low carbon future.
Here we are going to review 2 FTSE 250 index listed stocks in the oil and gas sector in view of the latest development:
- Harbour Energy PLC (LON:HBR)
Harbour Energy is a British oil and gas company. The company’s Norway based subsidiary Chrysaor Norge AS entered into an agreement with Ikon Science, a geoprediciton tech company.
According to the agreement, the projects will be delivered via Ikon’s new knowledge management tool, Curate, to help with faster and better decision making.
Image source: Refinitiv
The company’s shares closed at GBX 401.00, up by 7.80 per cent on 22 November, while the FTSE 250 index ended at 23,429.70, down by 0.27 per cent.
HBR’s market cap was at £3,711.39 million, and its one-year return was at 3.62 per cent as of Monday.
- Energean PLC (LON:ENOG)
Energean is a natural gas driven exploration and production company. The company recently released its trading statement for the 9-month period ending on 30 September, reporting its revenue at US$ 350 million, while its EBITDAX stood at US$ 141 million.
The company also stated it was on track to meet its FY 2021 revenue target of over US$ 450 million and also its FY 2021 EBITDAX target of over US$ 190 million.
Image source: Refinitiv
The company’s shares closed at GBX 902.00, up by 2.04 per cent on 22 November.
ENOG’s market cap was at £1,601.98 million, and its one-year return was at 25.77 per cent as of Monday.
