Thursday, May 25, 2017

CGG Launched Multi-Physics Imaging Group

Multi-Physics Imaging routinely provides geologically consistent Earth models, such as this Magnetotelluric conductivity inversion integrated with drilling data to define a hydrocarbon prospect. (Image: CGG)

CGG’s Multi-Physics business line has launched its Multi-Physics Imaging group, consolidating its recognized expertise in multi-physics data processing and interpretation, trusted technical consulting services and specialized commercial software development into a single global team. As a complement to CGG’s seismic Subsurface Imaging capabilities…

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.

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…

Seadrill Names Dibowitz CEO

Photo: Seadrill

Oslo-listed rig firm Seadrill named a new chief executive from within its own ranks on Wednesday and said its talks to restructure $14 billion of debt and liabilities had reached an advanced stage. Once the world's most valuable rig firm, Seadrill's business was hard hit when oil companies…

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…

OPEC Set to Prolong Oil Cuts

© SLDigi / Adobe Stock

OPEC will likely agree to extend production cuts for another nine months, delegates said on Tuesday as the oil producer group meets this week to debate how to tackle a global glut of crude. OPEC's de facto leader, Saudi Arabia, favours extending the output curbs by nine months rather than the initially planned six months…

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…

Angelle Named BSEE Director

Scott Angelle (Photo: BSEE)

Former Louisiana state official Scott A. Angelle will head-up the U.S. Bureau of Safety and Environmental Enforcement (BSEE). Angelle, who most recently served as Vice Chairman of the Louisiana Public Service Commission, will assume his new position May 23. “Scott Angelle brings a wealth of experience to BSEE…

US Drillers Add Oil Rigs for 18th Week in a Row

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U.S. energy companies added oil rigs for an 18th week in a row, the second-longest such streak on record, as expectations of higher crude prices have motivated drillers to boost monthly shale production to its highest level since mid-2015. Drillers added eight oil rigs in the week to May 19…

China Threatened War If Philippines Drills for Oil -Duterte

Philippine President Rodrigo Duterte said on Friday Chinese counterpart China Xi Jinping had warned him there would be war if Manila tried to enforce an arbitration ruling and drill for oil in a disputed part of the South China Sea. In remarks that could infuriate China, Duterte hit back…

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…

Colombia Oil Reserves Down 16.8% in 2016

Colombia said on Thursday its oil reserves were down 16.8 percent to 1.66 billion barrels at the end of last year, but that exploration was recovering after the global fall in crude prices. At 2016 production levels the reserves are equivalent to 5.1 years of output, the energy ministry said in a statement.

The New Offshore Reality

(Photo: Oyvind Hagen, Statoil)

Swedbank’s chief economist, Harald Andreassen, isn’t “too hopeful” about the long-term prospects for the oil price, but then again, “I’m less certain of this than I’ve ever been as an economist,” he told a floating production conference in Oslo. After two-and-half years of oil-price collapse followed by layoffs in the thousands…

Output Spike Brightens North Sea's Twilight Years

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New oil projects over the next two years in the North Sea will have combined capacity to produce 1.2 million barrels per day (bpd), offsetting a slide in output from the oldest deepwater basin that produces the world's benchmark crude. The projects stretch from the West Shetlands to the icy fringes of the Arctic Ocean, Reuters research shows.

Elliott Presses BHP to Shed Petroleum

BHP petroleum business has value of more than $20 billion. Activist investor Elliott Management raised the pressure for strategic changes at BHP on Tuesday, calling for an independent review of the mining giant's petroleum business. Elliott, which has built up a 4.1 percent stake in BHP's London-listed arm and is urging changes to boost shareholder value…

Industry Funding to Boost UK Offshore O&G Research

John Underhill (Photo: Heriot-Watt University)

A major funding package for the Institute of Petroleum Engineering (IPE) at Heriot-Watt University will directly support research and training for the future of the industry in U.K. offshore waters. Heriot-Watt’s Chief Scientist, Professor John Underhill, has secured funding of £416,000 (approximately $537…

South Africa Mulls First Shale Gas Exploration Licences

South Africa's government may award its first shale gas exploration licences by the end of September, after environmental objections delayed the process, a senior government official said on Monday. The five licence applications under review are for exploration in the semi-arid Karoo basin.

Chevron Reports Outage at Gorgon LNG Plant

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

Chevron Corp has shut the first production line at its giant Gorgon liquefied natural gas (LNG) export plant in Australia and expects the outage to last about a month in order to replace a faulty device, a spokesman said on Monday. "Production on Gorgon Train 1 was stopped on May 12 due to a failure of a flow measurement device…

Total Expands Oil Search Offshore West Africa

Total has signed a deal to explore for oil and gas offshore Mauritania, the French company said on Friday, expanding the scope of its search for new fields in the deep waters off West Africa's Atlantic coast. Under an agreement with Mauritania's state-run oil company SMHPM, Total will take a 90 percent operating stake in Block C7…

Total: Brazil Drilling No Risk to Amazon Reef

A French oil firm on Thursday rejected concerns that exploration off Brazil could damage a unique coral reef at the mouth of the Amazon river as it awaits final approval to start drilling. "Drilling activity will not impact the reef system," a spokeswoman for Total told the Thomson Reuters Foundation.

BP, Kosmos Announce 'major' gas find Offshore Senegal

BP and joint venture partner Kosmos Energy revealed a major gas discovery off Senegal on Monday, adding to other recent finds off the West African coast. Oil majors including BP and Total are investing in the waters of Senegal and Mauritania in the hope of repeating the recent exploration success of smaller players.

CFD Simulation of a Fully Featured Offshore Platform Model

(Photo: Hydrocean)

CFD simulations of offshore oil and gas platforms are used to predict the maximum wind loads acting on the structure of the platform topsides (the upper half of the platform, above sea level and outside the splash zone, including the oil production plant, the accommodation block and any drilling equipment).

ECO Affiliates Ink 5-Year Deal with Shell for IMR Vessel

Island Enforcer (Photo: ECO)

Two affiliates of Louisiana-based Edison Chouest Offshore (ECO) have signed a five-year contract with Shell Brazil for light subsea construction, and inspection, maintenance and repair (IMR) services from the M/V Island Enforcer, a 402-ft. subsea installation and construction vessel. According to ECO…

US Drillers Add Oil Rigs for 16th Week

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U.S. energy firms added oil rigs for a 16th week in a row, extending a drilling recovery into a 12th month even as the pace of those additions has slowed in recent weeks as crude prices have held below $50 a barrel. Drillers added six oil rigs in the week to May 5, bringing the total count up to 703…

Pemex Seeks Refinery Investors, but Who's Buying?

File Image (CREDIT: AdobeStock / (c) Sharrif Che'Lah)

Sweeping energy reforms have turned Mexico into one of the world's most attractive offshore prospects, but one segment is getting no love from U.S. investors: the nation's aging refineries. Efforts by Mexico's state-owned oil company Pemex to attract about $5 billion in capital to help modernize its two largest refineries so far have proved futile…

Marathon Oil Posts Bigger Quarterly Loss

U.S. shale exploration company Marathon Oil Corp reported a bigger quarterly loss on Thursday, due to a nearly $5 billion impairment charge related to the sale of its Canadian oil sands business. The company's net loss widened to $4.96 billion, or $5.84 per share, in the first quarter ended March 31, from $407 million, or 56 cents per share, a year earlier.

Brazil Pre-salt AuctionRules Rile Oil Firms

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

The Brazilian government has approved terms for another auction of exploration rights to high potential oil prospects, in the so called pre-salt layer, but oil firms are not totally happy with the rules. Brazil's Energy Ministry said on Thursday in the official gazette that it has cleared the round…

African Petroleum Holds Senegal Oil Block Claimed by Total

African Petroleum, an oil firm founded by Romanian-Australian businessman Frank Timis, said in a statement it still owns a licence to explore an oil block off the coast of Senegal that French oil major Total said it bought this week. The claim could set up a battle over potentially lucrative…

DONG Energy Settles Platform Dispute

DONG Energy said it has reached a settlement with Daewoo Shipbuilding & Marine Engineering and Technip over who bears responsibility for construction errors concerning an offshore platform for the idled Hejre field. The settlement clears a major hurdle for the Danish company's plans to divest…

Statoil Profit Jumps on International Ops Growth

File Image: A typical Statoil offshore installation.

First-quarter operating profit $3.3 bln is firm's first international profit since third-quarter of 2014. Statoil reported a far bigger jump in first-quarter operating profit than expected on Thursday, helped by the first profit from the Norwegian company's international operations since 2014 and higher oil prices.

Slumping Oilfield Services Sector bets on Offshore Tech

File Image: CREDIT Global Marine Systems

The oil industry's top equipment and services suppliers this week are hawking vastly cheaper ways of designing and equipping subsea wells, aiming to slash the cost of offshore projects to compete with the faster-moving shale industry. At the Offshore Technology Conference, the industry's annual gathering of floating rig and subsea well suppliers…

Centrica to Raise Morecambe Bay Gas Production

British utility Centrica will spend 60 million pounds ($77 million) to unlock an extra natural gas reserves from fields under the East Irish Sea, it said on Wednesday, helping to ease a potential shortage next winter. The project to produce the extra three billion cubic feet (bcf) will simplify…

Lundin Raises Output Guidance Despite Arctic Setback

Sweden's Lundin Petroleum lifted its full year production guidance on Wednesday and said it still expected to find more oil in the Barents Sea despite a recent setback. Lundin, a partner in Norway's giant Johan Sverdrup field, reported $355.8 million in earnings before interest, tax, depreciation and amortisation (EBITDA)…

Anadarko Posts Smaller Quarterly Loss

Oil and gas producer Anadarko Petroleum Corp reported a bigger-than-expected quarterly loss on Tuesday, as expenses rose about 53 percent, failing to offset gains from higher crude prices. North American oil producers faced prolonged weakness in crude prices after oil hit near-record lows in February 2016…

Petrobras Shifts Focus to Oil E&P, Alternative Energy

Petróleo Brasileiro SA will focus on oil and gas exploration and production while seeking opportunities in alternative sources of energy over the next five years, as Brazil's state-controlled oil firm moves toward more profitable core segments, Chief Executive Officer Pedro Parente said on Tuesday.

Total to Explore Senegal's Deepwater Potential

Total has signed an agreement to explore for oil and gas off Senegal's Atlantic coast, boosting the prospect of major oil developments in the West African country. Under the deal Total will explore in the deepwater Rufisque Offshore Profond Block where it will be the operator with a 90 percent…

BMT Takes New Approach to Big Data Management

BMT Group subsidiary BMT Scientific Marine Services has launched an initiative driven by over 20 years’ experience of measuring and modeling data for the global oil and gas industry. The solution, Data Exploration and Analytics Platform for Actionable Insights (DEAP-AI), is an intelligent…

Norway Offers 87 Offshore Blocks in Mature Areas

File Image: An existing offshore Norway oil installation (CREDIT: Statoil)

Norway offered oil and gas companies 87 blocks in the mature areas of the Norwegian and the Barents seas on Tuesday, the oil and gas ministry said. The offer includes 34 blocks in the Norwegian Sea and 53 blocks in the Barents Sea, the second largest expansion so far of Norway's so-called…

Noble Energy to Shed Shale Assets for $1.23 bln

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

U.S. oil and gas producer Noble Energy Inc said it would sell all its exploration and production assets in the Marcellus shale field in North West Virginia and South Pennsylvania for $1.23 billion.   Noble did not name the buyer.   Reporting by Sayantani Ghosh 

Australia Gas Export Restrictions Counterproductive

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

When governments adopt new policies the benchmark for success should be that the change works, is efficient and fair to all parties and does not create unintended consequences. The decision by the Australian government to restrict exports of natural gas if the domestic market is constrained meets none of these criteria…

Australia Plans to Limit LNG Exports

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Australia's conservative government unveiled a radical plan on Thursday to restrict exports of liquefied natural gas (LNG) at times when domestic shortages push up local prices, aiming to ease soaring energy costs for local manufacturers. The plan would allow Australia's resources minister…

Op/Ed: Trump Signals New Day for Offshore Energy

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National Ocean Industries Association president Randall Luthi weighs in on President Trump’s Executive Order on offshore energy. It’s a new day and a new attitude for American energy. The National Ocean Industries Association (NOIA) applauds President Donald Trump’s Executive Order recognizing…

Saipem Teams Up with Italy Railways in Russia Project Bid

Saipem has teamed up with Italy's state railways to bid for work on a Russian high-speed train project as the Italian oil engineering and contracting firm seeks new business to offset an ongoing slump in the energy industry. Oil service groups like Saipem have been hit by a sharp fall in…

Semco Maritime Revenue Dips 8% in 2016

Photo courtesy of Semco Maritime

Semco Maritime said the low oil and gas prices in 2016 did not encourage new industry activity or investments its customers. The low demand entailed a decline in Semco Maritime’s revenue to DKK 1,598 million compared to DKK 1,744 million in 2015. The revenue decline of 8 percent in 2016 was smaller than the decline in 2015…

Total Expects Decision on First Libra FPSO by Summer

A decision on the first floating, production, storage and offloading (FPSO) vessels on the giant Libra project in Brazil will be made by the summer, Total's head of exploration and production said on Thursday. "We are actively working actively on Libra to have the first FPSO decided before summer," Arnaud Breuillac told an oil summit in Paris.

Drilling Costs Rise Along with U.S. Oil & Gas Activity

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

U.S. oil and gas drilling costs have started to rise in response to a surge in activity and are set to increase further as the slack in the rig market declines. Drilling costs increased by 7 percent between November 2016 and March 2017, according to preliminary data on producer prices from the U.S. Bureau of Labor Statistics.

Uruguay to Tender 17 Offshore Blocks for Exploration

Uruguayan state oil company Ancap said on Tuesday it will tender 17 off-shore blocks for exploration in areas up to 3,000 meters deep, with offers to be presented in April 2019. The tender, called Uruguay Round III, will be launched in Houston in September. "Ancap is working with the ministry of industry and energy in the preparation of the model contract…

Venezuelan Crude Sales to the US Down in March

Venezuelan crude oil sales to the United States declined in March for the third month in a row this year to 651,710 barrels per day due to falling exports of main grade Merey, according to Thomson Reuters trade flows data. Venezuela's crude output fell in 2016 to its lowest level in 23 years.

Norway Expects Record Arctic Drilling in 2017

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

Norway expects 15 exploration wells to be drilled in the Barents Sea this year, two more than in the record year 2014, the head of the Norwegian Petroleum Directorate said on Tuesday. Of these, Norway's Statoil is planning to drill five or six wells, including one in the formerly disputed border area with Russia…

Norway Doubles Barents Sea Oil & Gas Estimates

Norway on Tuesday doubled its estimate of undiscovered oil and gas resources in its region of the Arctic Barents Sea as a formerly disputed area bordering Russia was included for the first time, the country's oil regulator said. The new forecast by the Norwegian Petroleum Directorate (NPD)…

Statoil Downplays Risks Ahead of Arctic Drilling

File photo: Ole Jørgen Bratland / Statoil

Norway's Statoil on Monday played down concerns that drilling in the Arctic is risky, days before it kickstarts its drilling campaign in the Barents Sea, where the country believes around half of its remaining resources could be located. "We will start drilling the first well, Blaamann, during May ...

New Executive Orders Loom on Environment, Energy

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U.S. President Donald Trump this week will sign new executive orders before he completes his first 100 days in office, including two on energy and the environment, which would make it easier for the United States to develop energy on and offshore, a White House official said on Sunday. "This…

US Drillers Add Oil Rigs for 14th Week in a Row

© Steve Boyko  / Adobe Stock

U.S. drillers added oil rigs for a 14th week in a row, extending an 11-month recovery that is expected to boost U.S. shale production in May in the biggest monthly increase in more than two years. Drillers added five oil rigs in the week to April 21, bringing the total count up to 688, the most since April 2015…

ConocoPhillips: Slow & Steady Wins the Race

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

ConocoPhillips has beaten its 2017 asset sales target less than four months into the year, after shedding $30.8 billion worth of energy assets in six years. But instead of a chorus of cheers on Wall Street, Chief Executive Ryan Lance is facing investor skepticism that the company can deliver growth from remaining oil and gas fields.

Statoil Confident About Offshore Brazil Deal

File Image: a typical Statoil offshore installation (CREDIT: Statoil)

Norway's Statoil is confident that its deal with Petróleo Brasileiro SA to acquire a stake in exploration block BM-S-8 offshore Brazil will eventually go ahead despite a court suspension, a spokesman said on Tuesday. "We are confident that he deal will go ahead... We are considering various legal options…

Premier Oil CEO Pay Rises as Company Recovers

Photo: Premier Oil

The head of North Sea oil producer Premier Oil saw his final pay package rise by a third last year to 1.4 million pounds ($1.7 million) as a reward for his work to cut costs amid weak oil prices, the company said in its annual report. London-listed Premier Oil, which had been struggling with high debt before agreeing a restructuring deal in February…

Eni, Shell Deny Illicit Payments in Nigeria

Oil majors Royal Dutch Shell and Eni reiterated on Monday that neither they nor their personnel had been involved in any wrongdoing in Nigeria, including improper payments to Nigerian officials. The comments follow media reports alleging how hundreds of millions of dollars from the two companies were used for illicit payments.

Oil Surplus or Scarcity? Shale Makes it Hard to Predict

File Image: AdobeStock (Edel Weiss)

Goldman Sachs sees large oil surplus in two years, but the forecast is at odds with most predictions of looming shortage. The shale oil boom has transformed the U.S. and global energy sector to such an extent that it has upended traditional supply dynamics and made forecasts far more polarised.

US Oil Rig Count Rises for 12th Straight Week

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U.S. drillers added oil rigs for a 12th week in a row, extending the recovery into an 11th month as energy companies boost spending on new production to take advantage of a recovery in crude prices. Drillers added 10 oil rigs in the week to April 7, bringing the total count up to 672, the most since August 2015…

Hurricane Energy Triples North Sea Recoverables Estimate

Hurricane Energy, listed on London's Alternative Investment Market (AIM), has tripled its estimate of recoverable oil from its Lancaster field in the North Sea, the company said on Friday. The statement comes just over a week after the company announced an oil discovery in the Halifax well in the West Shetlands region…