Sujatha Kumar

𝙀𝙭𝙭𝙤𝙣 𝙈𝙤𝙗𝙞𝙡 𝙎𝙚𝙩 𝙩𝙤 𝙎𝙚𝙘𝙪𝙧𝙚 𝙁𝙏𝘾 𝘼𝙥𝙥𝙧𝙤𝙫𝙖𝙡 𝙛𝙤𝙧 𝙋𝙞𝙤𝙣𝙚𝙚𝙧 𝙉𝙖𝙩𝙪𝙧𝙖𝙡 𝙍𝙚𝙨𝙤𝙪𝙧𝙘𝙚𝙨 𝘼𝙘𝙦𝙪𝙞𝙨𝙞𝙩𝙞𝙤𝙣 ExxonMobil's impending $60 billion acquisition of Pioneer Natural Resources Company, making it the largest oil and gas producer in the Permian Basin, is expected to receive approval from the U.S. Federal Trade Commission (FTC). The approval comes with the condition that Pioneer’s co-founder, Scott Sheffield, will not join Exxon's board due to concerns about his previous attempts to influence oil pricing and output. The decision, likely announced soon, follows scrutiny over Sheffield's advocacy for Texas oil production caps and his indirect involvement in a lawsuit alleging collusion with OPEC. Despite this, Exxon aims to boost its production in the Permian Basin significantly, from 600,000 barrels last year to about 2 million by 2027. This deal is part of a broader industry consolidation that the FTC is monitoring closely, especially under the leadership of Lina Khan and amidst political pressures related to energy prices and environmental impacts. Exxon plans to reduce Pioneer's emissions to net zero by 2035, enhancing its sustainability commitments. https://lnkd.in/gVWKJ7CD

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𝙊𝙞𝙡 𝙀𝙭𝙚𝙘𝙪𝙩𝙞𝙫𝙚𝙨 𝙋𝙧𝙚𝙙𝙞𝙘𝙩 𝙐𝙎 𝙋𝙧𝙤𝙙𝙪𝙘𝙩𝙞𝙤𝙣 𝘿𝙞𝙥 𝙄𝙛 𝘼𝙘𝙦𝙪𝙞𝙨𝙞𝙩𝙞𝙤𝙣 𝙎𝙥𝙧𝙚𝙚 𝘾𝙤𝙣𝙩𝙞𝙣𝙪𝙚𝙨 Energy executives are sounding the alarm on the future of US oil production. The latest quarterly survey by the Federal Reserve Bank of Dallas, which polls around 140 energy firm executives in Texas, northern Louisiana, and southern New Mexico, reveals a growing concern about the impact of mergers and acquisitions (M&A) on oil output. 𝑲𝒆𝒚 𝑰𝒏𝒔𝒊𝒈𝒉𝒕𝒔:  1. 𝑪𝒓𝒖𝒅𝒆 𝑪𝒐𝒏𝒔𝒐𝒍𝒊𝒅𝒂𝒕𝒊𝒐𝒏 𝑪𝒐𝒏𝒄𝒆𝒓𝒏𝒔:    ↳ Over half of the surveyed US oil executives believe that the ongoing wave of M&A could lead to a decline in US oil production if the trend continues.    ↳ The first quarter of 2024 alone saw more than $50 billion in M&A deals, following last year’s $192 billion in deals, including ExxonMobil’s $60 billion takeover of Pioneer Natural Resources Company. The majority of these deals involved assets in the Permian Basin, the highest-producing oil field in the US.  2. 𝑷𝒓𝒆𝒅𝒊𝒄𝒕𝒆𝒅 𝑷𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒐𝒏 𝑰𝒎𝒑𝒂𝒄𝒕:    ↳ 48% of executives surveyed expect US oil output to be “slightly lower” over the next five years due to continued industry consolidation, while 6% foresee a “significantly lower” production.    ↳ One executive commented, “The last few years of mergers and acquisitions have decreased activity in the oil patch. The majors will not exhaust reserves to raise domestic production until supply and demand curves meet their goals.”  3. 𝑽𝒆𝒏𝒅𝒐𝒓 𝑴𝒂𝒓𝒌𝒆𝒕 𝑺𝒒𝒖𝒆𝒆𝒛𝒆:    ↳ Another executive predicted that consolidation among oil and gas operators is squeezing the over-supplied vendor market for services, potentially leading to consolidation or extensive bankruptcies among vendors to rightsize the market.  𝑺𝒕𝒂𝒍𝒆 𝑺𝒉𝒂𝒍𝒆: ↳ Despite these concerns, oil and gas production remained essentially unchanged in the second quarter. The U.S. Energy Information Administration expects oil output to grow by around 310,000 barrels per day to 13.2 million this year, significantly less than the 1 million per day increase last year. 𝑾𝒉𝒂𝒕’𝒔 𝒏𝒆𝒙𝒕? If the M&A spree continues, the US oil industry could face reduced production levels, impacting supply and potentially leading to higher prices. The market dynamics are shifting, and the next few years will be critical for the industry’s future. 𝐏.𝐒. What are your thoughts on the impact of mergers and acquisitions on the oil and gas sector? Comment below! https://lnkd.in/g4je2c2h

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⚡ #Energy Transition and the Role of Offtakes 🌍 Discover the insights! 🔍💡Join the movement! 🚀💥 To date, only a few low-carbon ammonia projects have had the chance to go live. Among the key reasons is the need for long-term #offtakes, which are often crucial for securing financing and achieving bankability. However, what about clean #hydrogen?♻️ How are we getting along with the current challenges? 🔍 What can be done today to steer #hydrogen market trends upwards? 🚀 🔑 Providing #offtaking assurance to developers is key to accelerating the Energy Transition. We’ll be diving into these topics and more in an upcoming discussion with Katya Klymenko and a great panel of experts this week! Join us and stay tuned! P.S. #Ammonia remains the most common globally traded #hydrogen derivative.

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𝘽𝙋 𝙖𝙣𝙙 𝘽𝙞𝙜 𝙊𝙞𝙡'𝙨 𝙍𝙚𝙩𝙪𝙧𝙣 𝙩𝙤 𝙂𝙪𝙡𝙛 𝙤𝙛 𝙈𝙚𝙭𝙞𝙘𝙤 𝙀𝙭𝙥𝙡𝙤𝙧𝙖𝙩𝙞𝙤𝙣 Over a decade after the Deepwater Horizon disaster, bp is poised to resume its pioneering role in the Gulf of Mexico, planning to develop the Kaskida oilfield, among others. This move signals a bold return to deepwater drilling in an area that still haunts the environmental record of the industry. BP's initiative comes at a time when technological advancements have overcome previous barriers, enabling the exploitation of high-pressure, high-temperature oil reservoirs that were once deemed untouchable. The resurgence in Gulf oil exploration by major players like BP, Chevron, and Shell is set to boost the region's output significantly, potentially adding 500,000 barrels per day. However, this revival occurs amidst a complex backdrop of global climate policy pressures and the U.S.'s ongoing high oil production, which complicates the transition to renewable energy. The developments carry both immense economic potential and environmental risk, demanding stringent oversight to ensure that past mistakes are not repeated. This scenario reflects the broader tension between continuing fossil fuel reliance and the urgent need for sustainable energy solutions. #EnergySector #OilAndGas #SustainableEnergy #EnvironmentalImpact #GulfOfMexico https://lnkd.in/g89mDyVS

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𝙏𝙚𝙭𝙖𝙨 𝙎𝙩𝙚𝙥𝙨 𝙐𝙥 𝙉𝙖𝙩𝙪𝙧𝙖𝙡 𝙂𝙖𝙨 𝙋𝙤𝙬𝙚𝙧 𝙋𝙡𝙖𝙣𝙩 𝘿𝙚𝙫𝙚𝙡𝙤𝙥𝙢𝙚𝙣𝙩 In response to the heightened demand for reliable energy, Texas is significantly ramping up its infrastructure with a strong push toward natural gas power plants. Fueled by a $10 billion Texas Energy Fund initiative, developers are proposing over 55 gigawatts of new capacity, potentially doubling the state’s existing gas-fired resources. Municipalities and educational institutions are actively participating, with places like Sugar Land and Texas A&M offering lands for these strategic developments. These efforts are bolstered by industry giants forming the Powering Texans group, aiming to add thousands of megawatts to the grid, addressing the surge from data centers and other heavy electricity consumers. As Texas grows, so does its energy strategy, balancing increased gas power with rising investments in solar and battery storage. This dynamic shift highlights Texas' multifaceted approach to meeting future energy demands while also stirring debates on environmental impacts. #EnergyDevelopment #TexasPower #NaturalGas #ERCOT #SustainableEnergy #BusinessDevelopment https://lnkd.in/gfkZdub3

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Mergers and acquisitions in the U.S. oil and gas industry went up by 57% last year, a report by Ernst & Young found. The increased consolidation activity followed record profits and intensified competition for a limited amount of untapped resources. Per the report, the value of M&A deals last year reached $49.2 billion, which was up from $31.4 billion for the previous year. The number was driven higher by a couple of so-called megadeals featuring Big Oil majors Exxon and Chevron. Exxon last year struck a deal to acquire Pioneer Natural Resources for some $60 billion, while Chevron agreed to take over Hess Corp. for some $53 billion, although that deal has stalled due to Exxon’s opposition focusing on Hess interests in Guyana’s Stabroek Block. According to EY, dealmaking will remain robust this year as well, and in 2025 too, with spending on mergers and acquisitions rising further. “We started to see in 2023 a focus to consolidate the positions that operators had,” EY strategy and transactions group partner Bruce On told Reuters in an interview.

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Importance of Skilled Labor to Critical Minerals Establishing a robust domestic midstream for critical minerals is important, and something I'm often asked about. Recently, I published a paper on the topic for the Bipartisan Policy Center (linked below). A key factor to overcome, and one of the most cited by project owners, is the significant recruiting and retaining challenges due to severe labor shortages and intense competition for skilled workers. The U.S. industrial manufacturing sector, which had a shortfall of over 600,000 workers in 2023, is expected to see this gap widen to 2.1 million positions by 2030. This shortage directly impacts critical minerals projects that rely on similar skill sets, exacerbating the pressure on the industry. Critical minerals projects compete with semiconductor and battery manufacturing companies for skilled positions such as machinists, electricians, maintenance staff, equipment operators, and construction workers. Additionally, there is a notable shortage of individuals qualified for specialized roles essential for operational efficiency and quality control, including chemists, quality control analysts, and laboratory technicians. The talent pool is further strained by a 39% decline in mining engineering graduates since 2016, limiting the availability of essential professionals like mining engineers, metallurgists, and geologists. The construction sector, vital for building and maintaining critical minerals processing facilities, is also experiencing a severe labor shortage, with a deficit of 650,000 workers as of July 2023. This shortage impacts infrastructure development in regions where midstream operations are necessary, often requiring significant relocation efforts. To address these challenges, strategic investments in training programs, relocation incentives, supportive immigration policies, and advanced manufacturing technologies are essential. By establishing industry-specific training initiatives and partnering with educational institutions, the sector can develop a pipeline of skilled labor but it will take time a forward-thinking. We must grow the potential pool of interested professionals, with efforts like Project MFG. The topic of skilled labor is one I intend to evaluate deeper to consider what must be done to establish these projects successfully while growing the quality of life for American workers. Link to my recent report: https://lnkd.in/gSy7WSau

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Venture Global’s S-1 Filing: A Major Step Forward for LNG and Energy Security Industry Venture Global’s recent S-1 filing with the SEC represents a pivotal milestone for the company and the global liquefied natural gas (LNG) market. Poised to redefine the energy sector, Venture Global is committed to delivering low-cost, reliable, and cleaner energy to meet the world’s growing demand. Although some foundation customers are claiming delays in COD which have prevented the receipt of long-term contracted loads and remain in arbitration to resolve their disputes, as reported by media sources. It is worth reading the attached S1. JPMorgan Chase & Co.’s research analysts have estimated Venture Global’s enterprise value at over $100 billion, a figure that accounts for substantial debt related to terminal construction. This valuation underscores the company’s crucial role in the LNG sector and reflects investor confidence in its growth trajectory. The IPO, expected to raise approximately $3 billion and backed by a prestigious group of underwriting banks—J.P. Morgan, Goldman Sachs, Morgan Stanley, Citigroup, and Bank of America Corp.—is set to be one of the largest energy offerings in recent years. These financial institutions bring unparalleled expertise, ensuring a robust and well-supported offering that is anticipated to attract global investors. The proceeds from the IPO will support the expansion of Venture Global’s LNG facilities and operations, helping to meet the rising global demand for energy security and decarbonization. Under the leadership of co-founders Robert Pender and Michael Sabel, who together control 84% of the company’s shares, Venture Global has secured long-term contracts with some of the world’s largest energy companies, including Shell and BP. Although it’s not known if they have delivered any contracted loads to their customers. . The S-1 filing represents more than just a financial event; it is a testament to Venture Global’s business model and how the market is rewarding VG, resilience, innovation, and dedication to long-term value creation. As the global energy landscape evolves, the company’s focus on balancing economic growth with environmental responsibility positions it as a key player in the transition to a lower-carbon future. With an expected valuation of $100 billion, the backing of top-tier financial institutions, and a proven track record of delivering value to stakeholders, Venture Global’s IPO marks the beginning of a new chapter. This is a moment of optimism for the industry that proves that the LNG business is here to stay and the market likes the sector, not just for the company but for the future of global energy. https://lnkd.in/dfVT8M3x #VentureGlobal #LNG #EnergyTransition #CleanEnergy #IPO #EnergySecurity #Decarbonization #Sustainability #Innovation #NaturalGas #GlobalEnergy #Investing #Underwriting #EnergyLeadership

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#US_pipeline US pipeline operator ONEOK Inc. agreed to buy a Permian Basin rival and a controlling stake in another company in two transactions valued at a combined $5.9 billion. ONEOK will acquire Global Infrastructure Partners’ entire interest in EnLink Midstream LLC and also buy GIP’s equity interests in Medallion Midstream, the largest closely held crude gathering and transportation system in the Permian, it said in a statement late Wednesday. The move expands ONEOK’s presence in the most prolific US oil and gas basin. It’s the latest in a spate of deals in the industry as private equity firms offload assets to corporate buyers. Operators of oil and gas assets are looking to scale up as cash-flush fossil fuel companies consolidate and look to refresh their drilling inventory. New York-based Global Infrastructure Partners is a private equity firm specializing in energy, transportation, water and waste management. ONEOK shares gained 0.8% in New York. EnLink surged 11%. https://lnkd.in/dCFiT6nS

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𝙐𝙎 𝙗𝙪𝙮𝙨 3 𝙢𝙞𝙡𝙡𝙞𝙤𝙣 𝙗𝙖𝙧𝙧𝙚𝙡𝙨 𝙤𝙛 𝙤𝙞𝙡 𝙛𝙤𝙧 𝙎𝙩𝙧𝙖𝙩𝙚𝙜𝙞𝙘 𝙋𝙚𝙩𝙧𝙤𝙡𝙚𝙪𝙢 𝙍𝙚𝙨𝙚𝙧𝙫𝙚 The U.S. Department of Energy (DOE) has announced the purchase of 3 million barrels of oil for the Strategic Petroleum Reserve (SPR) at an average price of $77.69 per barrel. This purchase is part of an ongoing effort to replenish the SPR following significant sales in 2022. 1. Replenishment Efforts: The DOE is buying 3 million barrels for delivery in November. This move follows the largest sale from the SPR in 2022 when 180 million barrels were released to control fuel prices after Russia invaded Ukraine. The DOE has already purchased back 38.6 million barrels and will continue to look for opportunities to replenish the SPR. 2. Pricing Strategy: The Biden administration aims to buy back oil for the SPR at approximately $79.99 per barrel or lower. 3. Historical Context: The SPR was created after the Arab oil embargo in the 1970s to ensure oil supply security. 4. Contract Awards: Contracts for this purchase were awarded to: bp Products North America Inc. for 600,000 barrels. Macquarie Group Commodities Trading US LLC for 1.5 million barrels. Atlantic Trading & Marketing Inc for 900,000 barrels. 5. Three-Pronged Strategy: The administration's strategy includes: Buying back oil. Returning oil loaned from the SPR to companies. Canceling congressionally mandated sales of 140 million barrels through 2027. 6. Legislative Background: Democratic and Republican lawmakers had voted for mandated sales to fund government programs, but these are now being reconsidered. Implications: The replenishment of the SPR is critical for maintaining U.S. energy security. The current purchases are part of a broader strategy to stabilize the reserve while managing market conditions and legislative mandates. https://lnkd.in/gmGVuDjt

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www.polymerupdate.com *China’s petrochemical surge drives global crude oil demand* The International Energy Agency (IEA) has forecasted global crude oil demand growth at 1.24 million barrels per day (bpd) in the calendar year 2024, over 1 million bpd lower than the projection made by the Organization of the Petroleum Exporting Countries (OPEC) and its allies (OPEC+) for the current year. The wide difference in the energy demand projection is attributed to the difference in data compilation between the two globally renowned and trustworthy organisations. However, both organisations confirmed a positive growth in global crude oil demand in the calendar year 2024. Please open link to read full article: https://bit.ly/45bVrZO www.polymerupdate.com

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𝙀𝙭𝙭𝙤𝙣 𝙖𝙣𝙙 𝘾𝙝𝙚𝙫𝙧𝙤𝙣 𝙋𝙧𝙤𝙥𝙚𝙡 𝙂𝙧𝙤𝙬𝙩𝙝 𝙬𝙞𝙩𝙝 𝙎𝙩𝙧𝙖𝙩𝙚𝙜𝙞𝙘 𝘼𝙘𝙦𝙪𝙞𝙨𝙞𝙩𝙞𝙤𝙣𝙨 𝙖𝙣𝙙 𝙄𝙣𝙘𝙧𝙚𝙖𝙨𝙚𝙙 𝙋𝙧𝙤𝙙𝙪𝙘𝙩𝙞𝙤𝙣 ExxonMobil and Chevron, two of the largest U.S. oil companies, are witnessing significant growth in crude production, particularly from the #PermianBasin and #Guyana, two of the world's most productive oil fields. This surge is underpinned by their strategic investments exceeding $100 billion in acquisitions. Exxon's first-quarter production in Guyana saw a remarkable 70% increase, contributing significantly to global demand. Simultaneously, both companies anticipate a 10% increase in Permian production this year. Exxon is poised to become the largest producer in the Permian following its $64 billion acquisition of Pioneer Natural Resources, while Chevron is expanding its stake in Guyana's Stabroek Block with a $52 billion investment in Hess Corporation. This aggressive expansion positions them ahead of European competitors and underscores their commitment to bolstering oil and gas production amid global supply concerns. Despite shifting market dynamics and increased interest in renewable energy, Exxon and Chevron remain focused on fossil fuels. They leverage their robust positions in low-cost, high-yield regions to ensure profitable production and meet rising energy demands. https://lnkd.in/gGNm-3Pz

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Flaring emissions from global upstream oil and gas production activity increased by 7% from 2022 to 2023, according to latest Rystad Energy research. Upstream activities emit about 1 gigatonne per year of carbon dioxide (CO2) in total, with flaring contributing around 30% of those emissions in 2023 assuming 98% flaring efficiency on average. Flaring reduction is considered a low-hanging fruit for oil and gas companies trying to reduce their carbon footprint. However, this recent uptick underscores the challenges facing the industry, particularly in key producing countries such as Russia, Iran and Iraq. Flaring — the process of burning off excess natural gas during oil extraction — has been a longstanding concern for environmentalists and policymakers. Although non-routine flaring is often essential for safety or operational reasons, limiting routine flaring can greatly reduce the industry’s emissions intensity. The unexpected reversal of most of these gains in 2023 represents a step in the wrong direction from a climate perspective.

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𝘼𝙗𝙪 𝘿𝙝𝙖𝙗𝙞 𝙄𝙣𝙫𝙚𝙨𝙩𝙨 𝘽𝙞𝙡𝙡𝙞𝙤𝙣𝙨 𝙞𝙣 𝙀𝙭𝙭𝙤𝙣𝙈𝙤𝙗𝙞𝙡’𝙨 𝙏𝙚𝙭𝙖𝙨 𝙃𝙮𝙙𝙧𝙤𝙜𝙚𝙣 𝙋𝙧𝙤𝙟𝙚𝙘𝙩 Abu Dhabi has committed significant investment in ExxonMobil's hydrogen project in Baytown, Texas, purchasing a 35% stake through its state oil company, ADNOC Group. This "multibillion-dollar" deal could propel the project, poised to be the world's largest low-carbon hydrogen plant, producing 1 billion cubic feet of "blue" hydrogen per day. Blue hydrogen is made from natural gas with carbon capture technology, aligning with clean energy initiatives. Despite uncertainty over U.S. government incentives, this investment by Abu Dhabi could accelerate the project, which aims to supply hydrogen to markets in Japan, Korea, and Europe. The final investment decision, contingent on supportive government policies and regulatory approvals, is scheduled for next year, with production aimed for 2029. #HydrogenEnergy #CleanEnergy #Investment #ExxonMobil #Adnoc #SustainableDevelopment https://lnkd.in/gQvEe6zX

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The Evolution of AI in the Oil, Gas, and Petrochemical Industry: Making for a better future The integration of artificial intelligence (AI) into the oil, gas, and petrochemical industry has arrived it’s a transformative force reshaping the sector today. From upstream exploration to downstream processing, AI is driving efficiencies, reducing costs, and enhancing safety. 1. Exploration and Production Imitation Seismic Data Interpretation: Traditionally, Geo scientists spend hours analysing seismic data to locate potential oil and gas reserves. Today, AI algorithms, particularly deep learning models, can process seismic data with unprecedented speed and accuracy. Reservoir Management: AI-driven reservoir management tools analyse vast amounts of data from various sources, including well logs, production rates, and historical performance. 2. Predictive Maintenance and Asset Management Equipment Monitoring: In the high-stakes environment of oil and gas production, equipment failure can lead to significant downtime and financial loss. AI-powered predictive maintenance systems use sensors and IoT (Internet of Things) devices to continuously monitor the condition of critical equipment. Digital Twins: The concept of digital twins – virtual replicas of physical assets – has gained traction in the industry. AI integrates with digital twin technology to simulate and predict the performance of equipment and systems. 3. Enhanced Safety and Risk Management Incident Prediction: Safety is paramount in the oil, gas, and petrochemical industry. AI systems analyse historical incident data, environmental conditions, and operational metrics to predict potential safety hazards. Emergency Response: In the event of an emergency, AI-powered systems can provide real-time analysis and decision support. By integrating data from multiple sources, such as sensors, cameras, and communication networks, AI helps coordinate and optimise emergency response efforts 4. Supply Chain and Logistics Optimisation Demand Forecasting: Accurate demand forecasting is crucial for efficient supply chain management. AI algorithms analyse market trends, historical data, and external factors to predict demand fluctuations. Logistics Optimisation: AI enhances logistics by optimising routing, scheduling, and resource allocation. Machine learning models consider various factors, such as traffic conditions, weather, and fuel prices 5. Sustainable Practices and Environmental Impact Emissions Monitoring: Environmental sustainability is a growing concern in the industry. AI systems monitor and analyse emissions data in real-time, identifying sources of greenhouse gases and other pollutants,thus reducing the carbon footprint Energy Efficiency: AI-driven energy management systems optimise energy consumption across operations. By analysing data from production processes, AI identifies opportunities to reduce energy use, improve efficiency, and lower operational costs.

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