Tuesday, May 30, 2017

Oil News

Norway Oil Ministry: No Plan to Cut Output

© Lukasz Z / Adobe Stock

Norway has no plans to cut its oil output, the country's oil and energy ministry said on Tuesday. "The Ministry has a good dialogue with other countries about the oil market. We are not in a situation in which regulating production is on the agenda for Norway," the ministry said in a statement. Kuwait's oil minister said earlier on Tuesday that Saudi Arabia's oil minister had spoken to countries including Norway, Turkmenistan and Egypt which had signalled a willingness to join oil output cuts.

Venezuela Struggles to Manage Crushing Debt

Venezuela is considering several options to repay its debts, the oil minister said on Thursday, after a deep recession and low crude prices hit output and prompted Caracas to seek funds from China and Russia. Venezuelan oil production has slipped to its lowest levels in about 20 years, hurting a nation which relies almost solely on crude exports for revenues. Oil minister Nelson Martinez, speaking at a meeting of the Organization of the Petroleum Exporting Countries…

Oil Agreement Will Help to Balance Market -UAE

The extension of a global oil output cut deal will help to bring balance to the oil market and encourage investments in the oil sector, the United Arab Emirates energy minister said on Friday. The agreement "will help motivate balance of the market," Suhail bin Mohammed al-Mazroui said according to a statement on state news agency WAM. The Organization of the Petroleum Exporting Countries and some non-OPEC producers on Thursday…

Most Norwegian Oil Workers Agree to Wage Deal

File photo: Harald Pettersen / Statoil

Energy firms operating offshore Norway on Wednesday agreed wage deals for 2017 with the two largest trade unions representing oil and gas workers, while talks with a smaller union will continue at a later stage under mandatory mediation rules. Industri Energi and Safe, representing some 87 percent of Norwegian oil workers, said the outcome of the talks was disappointing, but added they had nevertheless accepted it as they did not have the right to go on strike this year due to a clause in last year's agreement.

DONG to Sell O&G Business to Ineos for $1.3 Bln

File photo: DONG Energy

Danish utility and offshore wind farm developer DONG Energy has agreed to sell its oil and gas business to petrochemicals firm Ineos for $1.3 billion, it said on Wednesday, the latest in a string of North Sea deals. The sale is a blow to shipping group A.P. Moller-Maersk , which had sought to merge its oil and gas business with DONG into a company worth more than $10 billion as part of a major restructuring. Talks between the two stalled late last year over price…

Oil Slips as OPEC Prepares to Extend Output Cuts

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Oil prices fell on Thursday as OPEC prepared to extend limits to production by nine months to March 2018 in an attempt to drain a glut that has depressed markets for almost three years. The cuts are likely to be shared again by a dozen oil exporters outside OPEC led by top producer Russia, which reduced output in tandem with the Organization of the Petroleum Exporting Countries from January. OPEC's cuts have helped to push oil back above $50 a barrel this year…

Petrobras Sees Higher Oil Exports as Presalt Fields Develop

Brazilian government-controlled Petroleo Brasileiro SA expects higher oil exports this year than initial projections, Guilherme França, executive manager of trade and marketing, said Wednesday. Petrobras expects oil exports to reach 742,000 bpd by 2021 as the company advances development of its pre-salt oil reserves, which are capable of producing lighter varieties which are demanded internationally, França said. In March, França told Reuters in an interview that the company's oil exports would reach 450,000 bpd this year.

US Drillers Add Oil Rigs in a Record Streak but Pace Slows

© Natalia Bratslavsky / Adobe Stock

U.S. energy firms added oil rigs for a record 19 weeks in a row as expectations of higher crude prices after an OPEC-led decision to extend current output curbs motivate producers to boost spending on new drilling. The pace of those additions, however, has slowed with the total added so far in May falling to the lowest since October due to soft oil prices. Drillers added two oil rigs in the week to May 26, bringing the total count up to 722, the most since April 2015, energy services firm Baker Hughes Inc said on Friday.

Oil Prices Steady as Market Awaits US Data, Extended Output Cut

Oil prices were little changed on Wednesday as investors awaited official data on inventories in the United States and the outcome from Vienna where ministers from OPEC and other exporting countries were discussing whether to extend production cuts. Data from the U.S. Energy Information Administration is due to be released at 10:30 a.m. EDT (1430 GMT). Late Tuesday, data from industry group American Petroleum Institute showed crude inventories fell by 1.5 million barrels to 521.9 million barrels in the week to May 19…

Oil Falls as OPEC Mulls Extended Output Cuts

File Image: U.S. shale operations continue to impact global crude pricing despite OPEC efforts to curb production. (CREDIT: AdobeStock / (c) Shamtor)

Delegate says OPEC decides to extend output cuts for 9 months, but rising U.S. output threatens to undermine OPEC-led cuts. Oil prices fell on Thursday as OPEC ministers met to decide how long to extend oil production cuts in an attempt to drain a global glut that has depressed markets for almost three years. One OPEC delegate at the meeting in Vienna said the group of 14 oil producers had agreed to extend cuts in production by nine months to March 2018.

Full Tanks & Tankers: A Stubborn Oil Glut Despite OPEC Cuts

© Andrei Pashkov / Adobe Stock

After the first OPEC oil production cut in eight years took effect in January, oil traders from Houston to Singapore started emptying millions of barrels of crude from storage tanks. Investors hailed the drawdowns as the beginning of the end of a two-year supply glut - raising hopes for steadily rising per-barrel prices. It hasn't worked out that way. Now, many of those same storage tanks are filling back up or draining more slowly than investors and oil firms had expected…

OPEC Meets Again But Has it Had an Impact on Oil Prices?

Ministers from OPEC and non-OPEC oil exporters are meeting in Vienna today and tomorrow to decide whether to extend production cuts that have been in effect since the start of the year. The formal conference comes after extensive consultations in recent weeks which seem to have produced a consensus to extend cuts at the same level for a further nine months to the end of March 2018. But with oil traders focused on Vienna, it is worth asking whether the cuts agreed by OPEC on Nov. 30 and non-OPEC on Dec.

EnQuest Sticks to Annual Target as Oil Production Falls

North Sea-focused oil producer EnQuest said its production fell 11 percent year on year in the first four months of the year due to the natural decline of its fields but it maintained its annual output target. The oil company also said its flagship Kraken oilfield in the North Sea was on track to begin producing oil before the end of June. EnQuest reported production levels of 37,856 barrels per day (bpd) in the four months to the end of April…

Mexico Oil Regulator OKs New Gulf Area for Pemex

Mexico's oil regulator on Tuesday approved a promising new deep water block to state oil company Pemex, but conditioned the allotment on the firm developing the area with a partner that would eventually operate it. The new Chachiquin area, adjacent to Pemex's Nobilis-Maximino block, could produce 80,000 barrels per day of oil once it reaches peak output, according to the regulator's estimates. Development of the area is not expected to begin until 2024 at the earliest.

OMV, ADNOC Mull Possible Partnerships

Austrian oil and gas group OMV and Abu Dhabi National Oil Company (ADNOC) agreed on Thursday to explore opportunities for cooperation, among others in downstream projects. The two companies said in a joint statement they had signed a memorandum of understanding. The agreement provides for cooperation areas, including the evaluation of opportunities in downstream projects, the exchange of knowledge and experience in refining operations and refinery-petrochemical integration and optimization…

Petrobras to Use 'Priority Rights' in Brazil Oil Auctions

File Image (CREDIT: AdobeStock / (c) Donvictorio)

Brazil's state-controlled oil company Petróleo Brasileiro SA will exercise its preferential rights in two offshore pre-salt oil auctions scheduled for this year, the company said in a statement on Thursday. Petrobras, as the company is known, said it will exercise its rights to explore an area adjacent to the Sapinhoá field, as well as the Peroba and the Alto de Cabo Frio Central areas. The company said it will acquire at…

Indonesia Offers 15 Oil Blocks amid Thin Industry Interest

Indonesia is offering 15 conventional and unconventional oil and gas blocks to potential bidders, government officials said on Friday, hoping more flexible terms will help reverse flagging interest in the sector after lacklustre performance in 2016. This year the government is applying new production sharing rules and will revise rules on recoverable costs and cut import duties on exploration equipment where possible, said deputy energy minister Arcandra Tahar, among efforts to incentivise new investment.

OMV Says It's Owed $148 Mln from Iran

The National Iranian Oil Company (NIOC) still owes Austrian oil and gas group OMV $148 million, OMV's exploration and production chief Johann Pleininger told a meeting of shareholders on Wednesday. "We are in intensive negotiations to complete the relevant contracts to settle the claims," Pleininger said. Chief Executive Rainer Seele had previously declined to name the outstanding amount but has said the issue stood in the way of making quick progress with OMV's business in Iran.

Rosneft Cuts Oil Output Temporarily

Russia's Rosneft is ready to resume full oil output quickly once OPEC-led cuts end as the country's top producer has focused its own cuts on newer fields, its chief executive has said. Those cuts run until June 30, though oil ministers from OPEC and non-OPEC countries meeting in Vienna this week are expected to agree to extend a deal that has seen 22 countries reduce global output by 1.8 million barrels per day (bpd) since January 1.

PTT Exploration and Production Plans Asia Investment

Thailand's largest oil and gas explorer PTT Exploration and Production Pcl (PTTEP) is planning new investments or an extension of its operations in fields in Thailand, Malaysia and Myanmar, it said on Tuesday. In Thailand, state-owned PTTEP would bid to extend its concession to operate the Bongkot gas field beyond the existing expiry date of 2023, Executive Vice President Yongyot Krongpanich told an investor briefing. "We…