(RTTNews) – bp plc (BP.L, BP_UN.TO, BP) announced Monday that production has begun from its Block 61 Phase 2 Ghazeer gas field in Oman, 33 months after the development was approved.

Ghazeer was initially expected to come into production in 2021. The first phase of development of Block 61 – Khazzan – was brought online in September 2017.

Total production capacity from Block 61, comprising both Khazzan and Ghazeer, is expected to rise to 1.5 billion cubic feet of gas a day and more than 65,000 barrels a day of associated condensate. With an estimated 10.5 trillion cubic feet of recoverable gas resources, the block has the capacity to deliver approximately 35% of Oman’s total gas demand.

Mohammed Al Rumhy, Minister of Energy & Minerals of the Sultanate of Oman, stated that the gas from Ghazeer will contribute towards Oman’s 2040 vision in terms of providing additional energy to local industries as well as diversifying the economy.

Bernard Looney, bp chief executive, said, “This project has been delivered with capital discipline four months early, wells are being drilled in record times and, importantly, safety performance has been excellent. It exemplifies what a strong and resilient hydrocarbons business looks like – a core part of our strategy.”

The company noted that as this important first gas milestone is achieved, Omanisation in bp Oman reached over 80%.

Omani-registered companies were also used for over 85% of all project spend.

In London, bp shares are trading at 218.35 pence, down 1.69 percent.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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SINGAPORE – Oil prices dropped for a second straight session on Monday as U.S. producers began restoring output after Hurricane Delta weakened, while a strike that had affected production in Norway came to an end.

Brent crude LCOc1 for December fell 55 cents, or 1.3%, to $42.30 a barrel by 0023 GMT and U.S. West Texas Intermediate CLc1 for November was at $40.08 a barrel, down 52 cents, or 1.3%.

Front-month prices for both contracts gained more than 9% last week, the biggest weekly rise for Brent since June, but fell on Friday after Norwegian oil firms struck a wage bargain with labour union officials, resolving a strike that threatened to cut the country’s oil and gas output by close to 25%.

HURRICANE DELTA ROILS OIL RIGS, SQUEEZES GASOLINE PRICES

“We had good support for both Brent and West Texas on the back of some supply concerns,” said Michael McCarthy, chief market strategist at CMC Markets in Sydney.

“Given that the hurricane season in the U.S. has just started, there’s potential for that to keep prices firm.”

The Well-Safe Guardian plug and abandonment rig, operated by Well-Safe Solutions Ltd, stands in the Port of Cromarty Firth during sunrise in Cromarty, U.K., on Tuesday, June 23, 2020. Oil headed for a weekly decline — only the second since April —

In the United States, Hurricane Delta, which dealt the greatest blow to U.S. offshore Gulf of Mexico energy production in 15 years, was downgraded to a post-tropical cyclone by Sunday.

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Workers headed back to production platforms on Sunday while Total SA TOTF.PA continued restarting its 225,500 barrel-per-day Port Arthur, Texas, refinery on Sunday.

However, Colonial Pipeline, the largest oil products

(Reuters) – Tesla Inc <TSLA.O> Chief Executive Elon Musk said on Wednesday the company will produce Model Y with a new structural battery design and technology at its Berlin factory next year and that could result in a “significant production risk”.

The U.S. electric carmaker plans to manufacture a new version of its Model Y crossover vehicle, and possibly even battery cells at the site. Last month, Musk said that Tesla will use its Germany-based plant to demonstrate a radical overhaul of how its cars are built.

The company plans to start the production of Model Y at Gigafactory Berlin during the second half of 2021.

Tesla’s new battery cell – a larger cylindrical format called 4680 that can store more energy and is easier to make – is key to achieving the goal of cutting battery costs in half and ramping up battery production nearly 100-fold by 2030.

The company’s new structural battery pack requires the new 4680 battery cells in order to work.

Musk said on Wednesday that it will take about two years for Tesla factories in Fremont and Shanghai to embrace the new technology.

“Fremont and Shanghai will transition in 2 years when new tech is proven,” Musk said in a tweet https://bit.ly/2I8Gam3.

The company said last week that it delivered 139,300 vehicles in the third quarter, a quarterly record for the electric carmaker.

Tesla’s delivery push has been supported by its new Shanghai factory, the only plant currently producing vehicles outside California, as it is also building a new vehicle and battery manufacturing facility near Berlin.

(Reporting by Sabahatjahan Contractor and Kanishka Singh in Bengaluru, Editing by Sherry Jacob-Phillips)

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(Reuters) – Tesla Inc

Chief Executive Elon Musk said on Wednesday the company will produce Model Y with a new structural battery design and technology at its Berlin factory next year and that could result in a “significant production risk”.

The U.S. electric carmaker plans to manufacture a new version of its Model Y crossover vehicle, and possibly even battery cells at the site. Last month, Musk said that Tesla will use its Germany-based plant to demonstrate a radical overhaul of how its cars are built.

The company plans to start the production of Model Y at Gigafactory Berlin during the second half of 2021.

Tesla’s new battery cell – a larger cylindrical format called 4680 that can store more energy and is easier to make – is key to achieving the goal of cutting battery costs in half and ramping up battery production nearly 100-fold by 2030.

The company’s new structural battery pack requires the new 4680 battery cells in order to work.

Musk said on Wednesday that it will take about two years for Tesla factories in Fremont and Shanghai to embrace the new technology.

“Fremont and Shanghai will transition in 2 years when new tech is proven,” Musk said in a tweet https://bit.ly/2I8Gam3.

The company said last week that it delivered 139,300 vehicles in the third quarter, a quarterly record for the electric carmaker.

Tesla’s delivery push has been supported by its new Shanghai factory, the only plant currently producing vehicles outside California, as it is also building a new vehicle and battery manufacturing facility near Berlin.

(Reporting by Sabahatjahan Contractor and Kanishka Singh in Bengaluru, Editing by Sherry Jacob-Phillips)

Copyright 2020 Thomson Reuters.

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Toyota Motor Corp.’s Lexus brand outsold luxury rivals Mercedes and BMW in the latest quarter as inventory shortages triggered by the pandemic hampered the German brands.

Lexus, which hasn’t won the annual US luxury sales race in a decade, grew 2 percent on the year to 75,285 vehicles in the third quarter. Deliveries at Daimler AG’s premium line declined 9.4 percent to 69,631 units, and BMW AG suffered a 16 percent decline to 69,570. Mercedes is still leading the other two carmakers year-to-date by a wide margin.

Lexus has weathered the pandemic better than its German rivals, with the brand’s best-selling RX SUV seeing strong demand. Both Mercedes and BMW have been hamstrung by tight inventory as the pandemic idled plants in Europe and the United States for weeks. Lexus saw a 31 percent jump in September alone, led by its RX, NX crossover, and ES sedan. That pared declines this year to 13 percent.

“BMW used sales have been very strong — I think it’s eating the new car demand because of the inventory shortage,” said Marc Cohen, vice president at Priority 1 Automotive Group in Maryland, which operates two BMW stores.

BMW dealers adapted by selling customers on vehicles that hadn’t yet arrived on the lot and on off-lease cars. After making do with tight inventory in July and August, BMW had a record month in September as its supply of vehicles was replenished, said Bernhard Kuhnt, president of BMW’s North America business.

“In September, we had for the first time what I’d call better inventory levels,” Kuhnt said by phone. “For the rest of the year I’m cautiously optimistic, but definitely much more optimistic than I was in March.”

Lexus has edged out BMW for the number two spot in year-to-date sales by 2,105 units, but Mercedes