WTI (Nov) $57.52 -2c, Brent (Dec) $61.01 -28c, Diff -$3.49 -26c
USNG (Nov) $3.40 +39c, UKNG (Nov) 80.13p +0.21p, TTF (Nov) €31.465 -€0.305

Oil price

Oil is flat again today having started quite well, the constant chatter about oil at sea a la Bloomberg or Vortexa and mentioned here yesterday whilst supply worries also abound.

Equinor-Rosebank environmental assessment released

The developers of the Rosebank oil field have released the full environmental assessment for the project – showing how the UK’s largest undeveloped oil field can be advanced responsibly in line with climate goals while delivering billions of pounds of investment and thousands of UK jobs.

Rosebank, located around 80 miles north-west of Shetland, is being advanced by Equinor, Ithaca Energy and Suncor.

According to project estimates, Rosebank will generate £8.5billion in direct investment, with £6.6billion expected to go to UK-based businesses. It is forecast to support around 2,000 jobs during development and maintain an average of 525 full-time UK roles throughout its operational life. Wider economic impacts could boost the UK economy by up to £25billion.

Emissions already included in UK carbon targets

Equinor has published updated figures accounting for all lifecycle emissions from the project, including those from the eventual use of the oil and gas produced (scope 3).

Government modelling already includes the field’s forecast emissions within its long-term decarbonisation plans, meaning approving Rosebank will not increase the UK’s overall projected emissions.

Aberdeen & Grampian Chamber of Commerce has long been a vocal advocate that oil and gas from the UK Continental Shelf (UKCS) – which operates under some of the world’s most stringent environmental standards – is far preferable to relying on higher-emission imports from abroad.

Independent experts note that the UK will continue to need oil and gas for decades even as it decarbonises, particularly for industrial uses and as backup for intermittent renewable generation.

Critics raise familiar objections

Environmental groups including Greenpeace and Uplift continue to oppose Rosebank, describing it as incompatible with the UK’s climate goals. However, the government’s independent Climate Change Committee has acknowledged that managing the decline of North Sea production, rather than ending it abruptly, is essential to safeguard jobs, tax revenues and energy security during the transition.

A public consultation on Rosebank’s updated environmental statement is open until 20 November 2025, after which the Energy Secretary Ed Miliband will decide whether to grant final consent.

For many across the UK’s energy sector, that decision represents not just one project, but a litmus test for confidence in the North Sea’s future – as a source of secure, lower-carbon energy and skilled employment in the decades ahead.

Commenting, AGCC chief executive Russell Borthwick said: 
“The UK has lacked a fully-functioning regulatory regime for oil and gas for some time now, with projects held in limbo.

“This, in conjunction with a broken fiscal regime, has shaken the industry to its core, deterred investment and seen jobs lost and workers and moving overseas to find opportunities.

“It’s vitally important that Rosebank gets the go ahead – without further delay – to signal that responsible extraction of resources from the North Sea, within the highest emissions reduction standards globally, is possible.

“While we still need oil and gas we should produce our own here in the UK – that shouldn’t be a matter of debate, it should be a reality of energy security, economic responsibility and effective government.”

I don’t normally write about Equinor but as Rosebank is so important to the UK in so many ways I felt that I should mention this as the decision that Secretary of State Milliband has a crucial decision to be made, hopefully free of dogma.

This shows ‘how the UK’s largest undeveloped oil field can be advanced responsibly in line with climate goals while delivering billions of pounds of investment and thousands of UK jobs’. in addition ‘according to project estimates, Rosebank will generate £8.5billion in direct investment, with £6.6billion expected to go to UK-based businesses. It is forecast to support around 2,000 jobs during development and maintain an average of 525 full-time UK roles throughout its operational life. Wider economic impacts could boost the UK economy by up to £25billion’.

Even the government’s independent Climate Change Committee has acknowledged that managing the decline of North Sea production, rather than ending it abruptly, is ‘essential to safeguard jobs, tax revenues and energy security during the transition’.

The decision on November 20th will be a litmus test for confidence in the North Sea’s future – as ‘a source of secure, lower-carbon energy and skilled employment in the decades ahead’. I will leave the final comment to Russell Borthwick ‘While we still need oil and gas we should produce our own here in the UK – that shouldn’t be a matter of debate, it should be a reality of energy security, economic responsibility and effective government’. 

I think that the statement is crystal clear and free of any bias, we are already at the forefront of the race to net zero and giving up on the North Sea and our own economy, seems to me to as equal a folly as handing over bundles of notes to Putin and the like and giving in on the world stage…

Serica Energy

Following the announcement on 8 October that an issue with the flare system on the Triton FPSO resulted in a temporary suspension of production, production resumed in line with expectations at a limited level shortly after that date. Since then, the operator has ramped up production, which has now reached a rate of over 25,000 boepd net to Serica.

Obviously good news from Serica but a pat on the back for the operator at this stage is probably over egging the pudding, let’s hope that they keep a tight ship from now on…

Apart from that Serica are doing all the right things at the moment and the share price is reflecting market approval, up 50% in six months and +30% y/y. With attention diverted from operational issues thank goodness, the management is continuing to deliver excellent organic growth and very smart inorganic policy. 

I suspect that there is more to come from Serica, they are not standing still and with the inorganic growth they are minimising the effect should any other misfortunes befall the operator…

Pharos Energy

Pharos has provided an update on its drilling activities in Vietnam.

Key Highlights:

• Vietnam six-well drilling programme, designed to drive material production growth from both existing fields from 2026 and de-risk additional development opportunities, commenced well operations on 18 October with the first infill well on TGT
• TGT: three infill wells and one appraisal well, targeting the block’s untapped western area. Appraisal well TGT-18X expected to commence in early December
• CNV: one infill well and one appraisal well, targeting the northern part of the field. Appraisal well CNV-5X expected to commence in mid-February
• Two rigs to run in parallel, with the first rig now operational and the second rig expected to commence drilling in mid-November
• This fully funded drilling programme to be completed by mid-2026
• All wells can be brought immediately onto production utilising existing facilities

Katherine Roe, Chief Executive Officer, commented:
“We are delighted to begin our six-well infill and appraisal drilling programme in Vietnam, starting with the first infill well on TGT. This important and material campaign is the most significant investment into our Vietnamese assets since the initial development and is designed to drive material production growth from both fields from 2026 onwards. The total capex for this Vietnam programme is expected to be c. $36 million. The Board, having run this investment through its capital allocation framework, is satisfied the returns from the investment will be higher than other uses of capital. We look forward to delivering a safe and successful drilling campaign and to updating the market in due course as the drilling campaign progresses.”

Make no mistake, this is a material move by Pharos and one that could well make a significant difference to the company over the next year or so. This six well programme has started already and the first well, H1 on the TGT field will take some 28 days to drill and complete targeting the H1 fault block. 

The drilling, which will be done using two rigs, the GunnLod at TGT and the Thor rig at CNV and with the former drilling four wells and the latter two wells. TGT continues with the H5 infill well and weather permitting move on to the TGT-18X appraisal well targeting the untapped western area in early December. 

 At CNV with the rig mobilising next month and commencing drilling scheduled for mid-November starting with the CNV-8P infill well which is expected to take 90 days. After that the second well will be the CNV-5X appraisal well,  intended to unlock the potential of the northern part of the field, is expected to start in mid-February and is estimated to take 108 days to complete. The CNV drilling programme is also expected to be completed by mid-2026.

The company are clear that this programme has been thought through, having been run through its capital allocation framework and is ‘satisfied that the returns from the investment will be higher than other uses of capital’. Accordingly the programme is fully funded and if successful will bolster production and increase resources bringing substantial value add to the company, using existing facilities will bring increased production on swiftly.

The total capex for this Vietnam programme is expected to be c. $36 million. The Board, having run this investment through its capital allocation framework, is satisfied the returns from the investment will be higher than other uses of capital. We look forward to delivering a safe and successful drilling campaign and to updating the market in due course as the drilling campaign progresses.”

Pharos is pleased to announce that its six-well infill and appraisal drilling programme in Vietnam has now commenced, starting with the first infill well on the TGT Field targeting the H1 fault block. Pharos has the balance sheet strength to fully fund this programme.

The programme, which includes four TGT wells and two CNV wells, will employ two drilling rigs, GunnLod and Thor. Drilling operations on TGT will be completed using the GunnLod Drilling Rig, and CNV using Thor Drilling Rig.

On TGT, it is expected to take 28 days to drill and complete the H1 infill well. The GunnLod Rig will then move location to drill the H5 infill well. Depending on the weather window, drilling of the TGT-18X appraisal well, targeting the block’s untapped western area, is scheduled to commence in early December and will take around 40 days to complete before the rig can begin drilling the final TGT infill well in the sequence, TGT-H4. Drilling operations on the four TGT wells are expected to finish in 1H 2026.

On CNV, the Thor Drilling Rig is expected to mobilise in early November, and drilling operations are scheduled to commence in mid-November, starting with the CNV-8P infill well which is expected to take 90 days. Drilling of the second and final CNV well, the CNV-5X appraisal well intended to unlock the potential of the northern part of the field, is expected to start in mid-February and is estimated to take 108 days to complete. The CNV drilling programme is also expected to be completed by mid-2026.

All six wells can be brought immediately onto production as they are drilled from existing facilities. In a success case, Pharos could see material incremental volumes from current production levels and a de-risking of additional development opportunities. Further updates will provided in due course.

Petrofac

As announced on 17 October 2025, Petrofac has been working towards the announcement of a Lock Up Agreement in respect of the identified implementation route for the Restructuring. Since this announcement, there has been a change in circumstances relating to certain stakeholders, which impacts the timing and/or deliverability of this Restructuring.

Urgent discussions are taking place in relation to this change in circumstance and the Company will provide further details when it is able to.

Am I the only one getting bored with this restructuring process?

Original article   l   KeyFacts Energy Industry Directory: Malcy's Blog