Tuesday, March 28, 2017

Statoil Wins Licences Off UK, 'Resets' Exploration Off U.S.

Norway's Statoil was the second top bidder for 13 oil exploration leases in the U.S. Gulf of Mexico and won six licences offshore Britain, it said on Thursday, in a sign it may be looking to boost reserves after slashing costs. Statoil bid a total of $44.5 million for 13 licences in the U.S.

Britain Awards 25 Oil Exploration Licences in Frontier Tender

Britain has awarded 25 licences for oil and gas exploration in previously untapped waters and announced a new licensing round for mature areas to be held in late May or June, the Oil and Gas Authority (OGA) said on Thursday. Seventeen companies received exploration licences in a tender that closed in October.

CNOOC Reports Worst Result Since At Least 2011

File photo: CNOOC

China's offshore oil and gas producer CNOOC Ltd reported its worst annual result since at least 2011, with revenue from its core oil and gas business tumbling 17 percent last year, but it expects to raise output 2017 as oil prices rebound. CNOOC reported a net profit of 637 million yuan ($92.5 million) in 2016…

Cyprus to Move Forward with More Oil Drilling Licensing

Cyprus will move ahead with further licensing for oil drilling after analyzing the results of its most recent exploration, the country's energy minister Yiorgos Lakkotrypis said on Wednesday. Cyprus announced the completion of a third round of licensing for well drilling in which Exxon Mobil, Italy’s ENI and France’s Total won additional blocks offshore.

US to Offer 48 Mln Acres in Next Gulf Lease Sale

The U.S. Department of Interior and the Bureau of Ocean Energy Management will conduct a lease sale on Wednesday, March 22, 2017, offering 48 million acres in federal waters offshore Louisiana, Mississippi and Alabama for oil and gas exploration and development. Lease Sale 247, which includes…

Petrobras Raises Asset Sale Goal for 2017-2018

Petróleo Brasileiro SA raised on Wednesday a goal for asset divestitures and partnerships for this and next year to $21 billion from $19.5 billion previously, a sign Brazil's state-controlled oil company plans to expand ventures with peers in segments from refining to oil exploration. In a presentation detailing fourth-quarter results…

Borr Drilling Scoops up Transocean Rigs for $1.4 Bln

Borr Drilling, founded by former executives of financially troubled Seadrill, has snapped up Transocean's fleet of shallow-water drilling rigs for $1.35 billion. The rig market deal is Borr's biggest since it was set up last year by Tor Olav Troeim and other executives who had left Seadrill…

Cyprus Approves Eni, Total, Exxon Offshore Block Deals

Cyprus's cabinet on Friday approved contracts with France's Total, Italy's Eni , Exxon Mobil and Qatar Petroleum to explore for oil and gas in offshore areas south of the island, officials said. Exploring the Mediterranean's Levant Basin has become more attractive since Eni discovered Egypt's offshore Zohr field in 2015…

Greece, Total-led Venture to Sign Offshore Gas Deal Friday

Greece and a consortium led by France's Total will sign a deal on Friday for deep sea gas exploration in one block in western Greece, an energy ministry official said on Thursday. In October, Greece named a consortium of Total, Greece's biggest oil refiner Hellenic Petroleum, and Italy's…

EU Lawmakers Reject Call for Ban on Arctic Oil Exploration

© ggw / Adobe stock

The European Parliament rejected a call to ban Arctic oil and gas exploration on Thursday, in a symbolic vote seen as a barometer for future moves by Brussels to regulate to protect the region. Lawmakers who back the ban, which had drawn the ire of Norway, say the European Union needs a strategy…

BP Appoints Heads of production, Drilling

BP has reshuffled its exploration and production division as the oil company readies for the biggest jump in output in its history. The British firm is launching a record number of projects this year and plans steep growth in production through 2021. The chief of the production, exploration and development unit or upstream division…

Will LNG Remain a Key Energy Source?

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Japan imported 8.3 million metric tons of LNG in January, an increase of 1.06 million metric tons compared to the previous year. The data, released by the Japanese Ministry of Finance, also reveals that the amount the country pays for LNG imports had increased by 6.7 percent since 2015. Japan…

Montenegro Inks 30-year Oil Licensing Deal with Greek Producer

Montenegro awarded Greece's sole oil producer Energean Oil & Gas a 30-year oil and gas exploration licences in two offshore blocks in the Adriatic sea on Wednesday. The contract for the blocks covering 338 square km was awarded in line with the terms of a 2014 tender. The Balkan country produces…

Australia in Talks With Gas Majors to Avert Local Shortage

File Image: CREDIT AdobeStock Fotmart

Australian PM in crisis talks with gas majors; Australia faces gas shortage despite exports soaring. Australia's top gas producers, led by ExxonMobil Corp and Royal Dutch Shell, agreed to boost supply to the country's domestic market to help avert an energy shortage following crisis talks with Prime Minister Malcolm Turnbull.

Oil Industry Renews Deepwater Quest

File Image: The Harvey Deepsea, operated by Harvey Gulf International, a firm focused on servicing the offshore oil industry. (CREDIT: Harvey Gulf)

Oil price recovery, low service cost boost offshore exploration; firms slash costs of deepwater projects by 50 pct. Deepwater oil drilling can be expensive, time-consuming and a hard sell to investors. But the world's top energy firms are restarting their search for giant oilfields under the ocean after a two-year lull.

Exxon to Buy Offshore Mozambique Gas Stake

Exxon Mobil Corp said on Thursday it would buy a 25 percent stake in a natural gas-rich block, offshore Mozambique, from Italy's Eni for $2.8 billion in cash. The offshore gas reserves discovered by Eni in Mozambique are large enough to need a giant liquefied natural gas (LNG) export plant.

Oil Industry Costs Will Rise as Focus Shifts to Growth

© Gino Santa Maria / Adobe Stock

Oil industry costs are notoriously pro-cyclical, which is one of the main reasons for the pattern of boom and bust that has afflicted in the industry from the beginning. The cost of everything from skilled and unskilled labour to engineering contracts, field services, raw materials, equipment…

Shell Nigeria Shuts Bonga Oil Field For At Least A Month

Shell Nigeria Exploration and Production Company (SNEPCo) halted production at Nigeria's Bonga oil field on March 4 for maintenance that will last at least a month. SNEPCo said in a statement that Bonga, which has capacity to produce 225,000 barrels per day (bpd) of oil and 150 million standard cubic feet (scf) of gas…

OMV Eyes Further Cooperation with Gazprom

\OMV sees scope for further cooperation with Gazprom, the Austrian oil and gas group's exploration and production head said on Monday, hours after agreeing to buy into a Gazprom-majority owned gas field for $1.85 billion. OMV is also working on swapping a stake in its Norwegian holding for a stake in another Siberian field with Gazprom.

BHP Billiton, Pemex sign Trion Contract

Pedro Joaquín Coldwell, Mexican Minister of Energy,  Enrique Peña Nieto, President of Mexico, Andrew Mackenzie, BHP Billiton CEO and José Antonio González Anaya, CEO of PEMEX. Photo: BHP Billiton

BHP Billiton has advanced its exploration and production interests in the Gulf of Mexico by executing a contract with PEMEX Exploration & Production Mexico (Pemex) to complete work on the significant Trion discovery in Mexico. In December 2016, BHP Billiton successfully bid on the resource that…

US Oil Rig Count Grows for 7th Week Straight

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U.S. drillers added oil rigs for a seventh week in a row, extending a recovery into a tenth month as energy companies, including Exxon Mobil Corp, boost spending plans to take advantage of a crude price recovery. Drillers added seven oil rigs in the week to March 3, bringing the total count up to 609…

U.S. Shale Renews Challenge to OPEC

File Image: CREDIT Edelweiss AdobeStock

U.S. crude oil production appears to be rising strongly thanks to increased shale drilling as well as rising offshore output from the Gulf of Mexico. Production averaged almost 9 million barrels per day (bpd) in the four weeks to Feb. 24, according to the latest weekly estimates published by the Energy Information Administration.

Op/Ed: Offshore Energy Can Power US Growth

Randall Luthi  (Photo: NOIA)

Following President Trump’s address to the joint session of Congress, National Ocean Industries Association (NOIA) president Randall Luthi weighs in on  shifting U.S. policy and its effects on offshore energy and the American economy. As President Trump begins work on his ambitious agenda…

Maersk, Danish State Agree on North Sea Taxes

File Image: An offshore Maersk oil installation (CREDIT: Maersk)

A.P. Moller-Maersk has agreed with the Danish state on terms for a new framework agreement regarding exploration and production of oil and gas in the North Sea, Berlingske daily reported on Wednesday, citing anonymous sources. Maersk Oil had asked authorities for tax relief in order to proceed with an upgrade of the maturing Tyra field…

Seadrill Could Be Heading for Bankruptcy

Photo: Seadrill Limited

The oil rig owner SeaDrill could be forced into bankruptcy protection soon, if it fails to reach a restructuring agreement with its lenders, reports Reuters. The rig firm, controlled by John Fredriksen, is battling with $14 billion in debt and liabilities. "In the event a consensual restructuring…

Gabon: Total sells interests in mature fields to Perenco

Transaction summary

Total has signed an agreement for the sale of stakes and the transfer of operatorship in various mature assets in Gabon to Perenco. The transaction is subject to approval by the authorities. This agreement includes the sale of the Group’s 100%-owned affiliate Total Participations Petrolières Gabon, which holds interests in 10 fields.

Hathon is Director Exploration, Cairn

Simon Thomson, Chief Executive Photo Cairn

Cairn announced the appointment of Eric Hathon as Director of Exploration. Dr Hathon, who has more than 25 years experience in the international oil and gas industry, will join Cairn from Marathon Oil Corporation where he held the position of Director Conventional Exploration, based at the company’s Headquarters in Houston, USA.

Somali President Appoints Oil Firm Executive as PM

Somalia's newly elected president on Thursday appointed the country director of British firm Soma Oil and Gas as the new prime minister, raising questions about possible conflicts of interest in the Horn of Africa country. President Mohamed Abdullahi Mohamed, known as "Farmajo", named Hassan Ali Khaire as prime minister…

Oil-Starved India to Expedite Exploration Auction

India plans to auction some oil exploration blocks by June and will allow bidders to carve out areas where they want to drill in order to attract greater interest, a government official told Reuters on Wednesday. The move is part of a drive by New Delhi to quickly generate income from its oil and gas reserves.

Pipeline Fight Moves from Dakotas to Louisiana

File Image (CREDIT: AdobeStock)

When Hope Rosinski's father gave her a six-acre plot in Louisiana more than a decade ago, she was surprised to find oil and gas pipelines crisscrossing the property. Pipeline companies later secured her permission for two more lines, one of which has since caused flooding and consistently leaves her land saturated. Now she's had enough.

Fugro Awarded Seeps Survey Offshore Kenya

Photo: Fugro

Fugro has been awarded a contract by Shell/BG Kenya for the execution of a seabed survey to detect natural leakages of hydrocarbons. The seeps survey complements a seismic exploration program that was completed recently offshore Kenya. Undertaking a four-week campaign of multibeam data acquisition and precise sampling…

Ecopetrol: Proven Reserves Plunge 14 pct in 2016

Colombian state-run oil company Ecopetrol said on Tuesday its proven oil and gas reserves fell 14 percent in 2016 to 1.60 billion barrels equivalent because of a decline in exploration caused by low crude prices. The reserves were equivalent to 6.8 years of output, down from 7.4 years in 2015, the company said in a statement.

Iran finds 2 bln barrels shale oil reserves in western province

Iran has found shale oil reserves of 2 billion barrels of light crude in its western Lorestan province, a senior official at the state-run National Iranian Oil Company (NIOC) was quoted as saying on Saturday. "Based on studies, it is estimated that the shale oil reserves in Ghali Koh in Lorestan amount to 2 billion barrels of oil in place…

US Drillers Add Oil Rigs for rth Straight Week

U.S. energy companies added oil rigs for a fifth straight week, extending a nine-month recovery as drillers take advantage of crude prices that have held mostly over $50 a barrel since OPEC agreed to cut supplies in late November. Drillers added six oil rigs in the week to Feb. 17, bringing the total count up to 597…

CGG Completes Industry-First FalconPlus Survey BAPCO

Extent of the Bapco FalconPlus survey area. Existing seismic and well data will be included in the interpretation of the new data set (Photo: CGG)

CGG has completed the acquisition and processing of the first ever Airborne Gravity Gradiometry (AGG) survey of the Kingdom of Bahrain. Conducted on behalf of the Bahrain Petroleum Company (Bapco), this was the first commercial survey to be acquired worldwide using Falcon Plus, the newest…

Saudi Arabia Debating Shape of Aramco Ahead of IPO

Saudi Arabia is considering two options for the shape of Saudi Aramco when it sells shares in the national oil giant next year: a global industrial conglomerate, and a specialised international oil company, industry and banking sources said. The listing of Aramco <IPO-ARMO.SE>, expected to…

Cairn Energy is Frontrunner for DONG Energy Assets

Independent oil exploration company Cairn Energy has emerged as the frontrunner for North Sea oil and gas assets put up for sale by DONG Energy, sources familiar with the matter said. Interest from Cairn Energy and several other potential buyers could put pressure on shipping and oil group A.P.

Edison: More Egypt Gas Awaits Discovery

The chief executive of Italian energy group Edison said on Tuesday he is confident more gas discoveries will be made in Egypt in the next three years. Edison has signed a $86 million agreement with state-run Egypt Natural Gas Holding (EGAS) for natural gas and oil exploration in the Mediterranean, the Egyptian Petroleum Ministry said on Jan.

US Drillers Continue to Add Oil Rigs

U.S. energy companies added oil rigs for a 14th week in the last 15, extending a nine-month recovery as drillers take advantage of crude prices that have held mostly over $50 a barrel since OPEC agreed to cut supplies in late November. Drillers added eight oil rigs in the week to Feb. 10…

Total on Hunt for Deals After Outperforming Rivals

French oil company Total is on the hunt to buy assets from struggling rivals, it said on Thursday, as it reported some of the biggest profits in the industry for last year and raised its dividend. Chief Executive Patrick Pouyanne said Total was reaping the benefit of cutting costs more quickly…

103 Cranes Ordered for East Anglia ONE Wind Farm

Image: Sparrows Group

Aberdeen-based Sparrows Group said it has signed a contract to supply 103 cranes for installation at ScottishPower Renewables’ 714 megawatt East Anglia ONE offshore wind farm. Located off the coast of Suffolk, the wind farm will be capable of producing enough electricity to power around 500…

BP back in the black

Bob Dudley, Group Chief Executive Photo BP

BP has made a profit of $115 million for the year 2016. This compares to its loss of $6.5 billion in the previous year. The company in its report stated having focused on growth: strategic portfolio additions, new projects coming onstream, costs and spending reduced ahead of schedule. Bob Dudley…

Eco Atlantic to List in London on Wednesday

Eco Atlantic Oil & Gas, a Canadian oil explorer, will list on London's junior AIM market on Wednesday, raising 4.8 million pounds ($6 million) to help finance a drilling campaign offshore Guyana with partner Tullow Oil. Eco Atlantic, which expects to have a market capitalisation of around 20 million pounds when it lists on Wednesday…

BP Lifts Break-Even Oil Price

Lowest annual profit in at least a decade; raises breakeven oil price to around $60 per barrel. BP raised the oil price at which it can balance its books this year to $60 a barrel on Tuesday due to higher spending following a string of investments as annual earnings fell for a second consecutive year.

Statoil's Mulls Offshore U.S. Exploration Plan

Norway's Statoil will become more cautious in its exploration spending offshore the United States, but does not plan to leave the region, the company's exploration chief told Reuters on Tuesday. As a junior partner, Statoil has been part of several discoveries in the U.S. Gulf of Mexico,…

OPEC Secretary General meets Eni's CEO Descalzi

OPEC Secretary General Mohammad Sanusi Barkindo with Eni's CEO Claudio Descalzi (ENI Photo)

The OPEC Secretary General, Mohammad Sanusi Barkindo met Eni’s CEO Claudio Descalzi yesterday at Eni’s headquarters in San Donato Milanese, south of Milan. The visit of the OPEC delegation, headed by Secretary General HE Mohammad Barkindo, was an opportunity to discuss the major issues facing the oil and gas sector…

Qatar Petroleum Seeks International Projects in Cyprus, Morocco

State-owned energy giant Qatar Petroleum (QP) is exploring oil and gas in Morocco and Cyprus as it aims to expand its liquefied natural gas (LNG) assets abroad while trimming costs at home, chief executive Saad al-Kaabi said on Monday. "You will see us going internationally with some of the partners we have in Qatar, this year and next year...

Oil Firms Take 'great interest' in exploring Norway's Arctic

File Image: an offshore Statoil oil installation (CREDIT: Statoil)

Oil companies are expressing great interest in exploring Norway's Arctic Barents Sea ahead of the government's latest licensing round, the 24th such round since awards were first made in the 1965, Oil and Energy Minister Terje Soeviknes said. "The new signals today regarding the 24th round is that companies are taking a big interest…

Richards Appointed CFO, Beach Energy

Australian oil and gas exploration and production company Beach Energy Limited has appointed Richard Richards the Chief Financial Officer of Seven Group Holdings Limited as a non‐executive director of Beach. Richards is a nominee of Seven Group Holdings Limited and related corporations who…

Europa – Farm-Out of Holmwood, Weald Basin

Map courtesy Europa Oil & Gas (Holdings)

The wholly owned subsidiary of Europa Oil & Gas (Holdings) plc, UK and Ireland focussed exploration, development and production company announced that its  has signed a Farm-Out Agreement (`FOA') in relation to a 12.5% interest in the PEDL143 licence in the Weald Basin with a wholly owned subsidiary of Angus Energy PLC (‘Angus’).

Keppel to Deliver First FPSO of 2017

Keppel Offshore & Marine subsidiary Keppel Shipyard Ltd is on track to deliver a floating production storage and offloading (FPSO) vessel to Yinson Production (West Africa) Pte Ltd (Yinson), a subsidiary of Yinson Holdings Berhad, marking the first FPSO delivery of 2017. The spread-moored…

US Energy Jobs Rise as Higher Prices Boost Oil Drilling

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U.S. oil and natural gas producers added jobs in December and January as drillers continued to return to the well pad with crude prices holding near 18 month highs, according to U.S. jobs data on Friday. Oil and gas extraction jobs increased by 100 to 177,400 in January, while support services jobs increased by 600 to 195…

Statoil discovers gas in Valemon West

The Valemon platform in the North Sea. (Photo Harald Pettersen Statoil)

Two years after Valemon came on stream Statoil has made a new gas discovery on the field, called Valemon West. The discovery is estimated to contain between 20 and 50 million barrels of oil equivalent. “This is an important discovery for the further development of Valemon,” says Gunnar Nakken…

Petrobras Mulls Refining Assets Sale

File Image (Credit: AdobeStock)

Petroleo Brasileiro SA remains undecided about the sale of some refineries, a sign Brazil's state-controlled oil company might be leaning toward forming partnerships by offering stakes in some of them, a person with direct knowledge of the matter said on Thursday. The person said Boston Consulting…

ExxonMobil Earns $7.8 Bi in 2016

Earning Summary

Exxon Mobil Corporation today announced estimated 2016 earnings of $7.8 billion, or $1.88 per diluted share. An asset recoverability review was completed in the fourth quarter and resulted in a U.S. Upstream asset impairment charge of about $2 billion mainly related to dry gas operations with undeveloped acreage in the Rocky Mountains region of the U.S.

CCS names Reynolds business development and advisory manager

David Reynolds Photo CCS

Cornerstone Completion Services (CCS), a recently-launched division of Wellsite Fishing and Rental Services, LLC (“Wellsite”), a leading provider of drilling and completion rental equipment, has appointed David R. Reynolds as its new business development and advisory manager. As business development and advisory manager…

Lebanese Oil Production Slated to Start in 2018

Lebanon expects to start oil production in 2018 and will deposit the resulting revenues into a sovereign wealth fund, President Michel Aoun said on Tuesday. "Everything that is extracted will be for the Lebanese people," he said during a meeting with a press syndicate delegation. Aoun said the revenues would be invested in development projects…

Imperial Oil Profit Boosted by Asset-Sale Gain

Imperial Oil Ltd, majority owned by Exxon Mobil Corp, reported a sharp rise in fourth-quarter profit, helped by a gain from the sale of its service stations. Canada's No.2 integrated oil producer and refiner sold its remaining company-owned Esso retail stations to five fuel distributors for about C$2.8 billion ($2.15 billion)…

Wood Group Bags Hess Contract in Malaysia

Wood Group has been awarded a five year contract with Hess Exploration & Production Malaysia. The operations and maintenance contract is to support Hess' new-build fixed and floating offshore facilities in the North Malay Basin development area located approximately 150km north east of the Peninsular Malaysia, and includes a one-year extension option.

Industry Group Boosts Canadian Oil Well Drilling Forecast

© Steve Boyko / Adobe Stock

The Petroleum Services Association of Canada upped its 2017 oil and gas well drilling forecast by 23 percent on Monday as global oil prices recover from a two-year rout. The industry body now estimates 5,150 wells will be drilled across Canada this year, up from its previous 2017 forecast, made in November, of 4,175 wells.