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…
Oil Falls as OPEC Mulls Extended Output Cuts
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.
Shell, Exxon May Appeal Over Planned Groningen Gas Output Cut
A joint venture between Royal Dutch Shell and Exxon Mobil said on Wednesday it was considering appealing against a Dutch government plan to cut production at the Groningen gas field by 10 percent. The Dutch state earlier on Wednesday confirmed it intended to go ahead with a tightening of output at the massive field from Oct. 1. It said interested parties had until July 7 to announce an appeal.
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…
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.
OPEC Nearing Deal to Extend Output Cut to March 2018
OPEC and non-member oil producers moved closer on Wednesday to clinching a deal on extending output cuts by nine months to clear a global stocks overhang and prop up the price of crude. The Organization of the Petroleum Exporting Countries meets in Vienna on Thursday to consider whether to prolong the accord reached in December in which OPEC and 11 non-members agreed to cut oil output by about 1.8 million barrels per day in the first half of 2017.
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…
DONG to Sell O&G Business to Ineos for $1.3 Bln
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.
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.
Proserv Secures Multiple Middle East Contracts
Energy services company Proserv said it has been awarded a series of contracts worth a combined value of more than $11 million for its production control new-build and after-market services in the Middle East. In the UAE, Proserv will engineer and manufacture wellhead control panels, hydraulic power units (HPUs) and chemical injection systems to national oil companies, service companies and engineering…
Should OPEC Worry About Contango and Backwardation?
"Backwardation is the solution" to OPEC's problem of how to raise output and revenues without sparking another shale boom, according to the influential oil research team at Goldman Sachs. Backwardation would allow low-cost oil producers in OPEC to sell their output at a higher price linked to the spot market while curbing growth from shale firms that sell at prices linked to the forward curve.
Norway Oil Ministry: No Plan to Cut Output
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…
Shell Shareholders Reject Emissions Target Proposal
Royal Dutch Shell shareholders on Tuesday widely rejected a proposal by an environmental group calling for the oil company to set and publish annual targets to reduce carbon emissions. The vote is a setback for climate activists who are increasing pressure on global oil companies, including U.S. firms Exxon Mobil and Chevron, to become more ambitious in helping combat climate change.
OPEC Set to Prolong Oil Cuts
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, as it seeks to speed up market rebalancing and prevent oil prices from sliding back below $50 per barrel.
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.
Angelle Named BSEE Director
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, having spent many years working for the safe and efficient energy production of both Louisiana’s and our country’s offshore resources…
Sarawak State Govt Seeks Stake in LNG Train
Malaysia's Sarawak state government said it is negotiating with Petroliam Nasional Berhad to acquire a 10 percent equity stake in a liquefied natural gas (LNG) production facility at Petronas' LNG complex in Bintulu, Sarawak. The government is looking to buy a stake in the LNG Train 9 facility, the site's ninth liquefaction unit, which can produce 3.6 million tonnes of LNG per year.
Sinochem No Longer Pursuing Stake in Noble Group
China's state-owned Sinochem is no longer pursuing an investment in Noble Group Ltd due to concerns over the finances and business outlook of the loss-making commodity trader, three sources familiar with the matter told Reuters. When it held talks with Noble earlier this year to buy a stake, Sinochem's thinking, sources have told Reuters, was that a deal could help the oil, gas and petrochemicals producer to become a globally active energy trader.
Statoil's Digitalization Drive
Statoil is establishing a digital center of excellence and launching a roadmap with seven specific programs for digitalization in the company towards 2020. Towards 2020 Statoil expects to invest $120 to $240 million in new digital technologies, accelerating the digital roadmap work. Digital technologies will also be part of other Statoil technology and research projects. “Aiming to be a global digital leader within our core areas…
EUROPE POWER: Spot slides on increased wind
European spot electricity prices for day-ahead delivery fell on Monday, pressured by increased wind power supply, while the June and July contracts gained on a warm and dry weather forecast. * The German baseload spot power price for Tuesday delivery stood at 33.70 euros ($37.85) per megawatt-hour (MWh), down 1.80 euros from the price paid on Friday for Monday delivery. * The French…
Chile to Export Gas to Argentina to Cover Winter Demand
Chile will send some 276 million cubic meters of gas from June to Argentina to help its neighbor cope with demand in the southern hemisphere winter, Chile's state-run oil and gas distributor ENAP said Friday. Last year, Chile began sending liquefied natural gas to Argentina for the first time. Although energy investment in Argentina is increasing, it is still a long way from regaining the self-sufficiency it lost in 2010.
US Drillers Add Oil Rigs for 18th Week in a Row
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, bringing the total count to 720, the most since April 2015, energy services firm Baker Hughes Inc said on Friday.
Nigerian Oil Labour Union Calls for Exxon Mobil Shutdown in Delta
A Nigerian oil labour union on Friday called for the shutdown of all Exxon Mobil Corp facilities in the Niger Delta, a union representative said. Reuters was unable to independently verify whether union members had shut down the company's facilities. Oil sources said there had been no impact on production. Madubuezi Azubuike, who chairs the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) in Rivers state…
Full Tanks & Tankers: A Stubborn Oil Glut Despite OPEC Cuts
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…
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…
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 figure was down compared to the 2015 figure of 2.0 billion barrels. "Thanks to a recovery in international prices…
The New Offshore Reality
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; stacked oil rigs and order freezes for offshore shipping, price insecurity itself is a partial expression of confidence.
Shell to Sell Tunisian Gas Assets
Royal Dutch Shell is seeking to sell its gas fields in Tunisia for some $500 million, sources said, as the Anglo-Dutch company pushes forward with its vast disposal programme. The Tunisian assets, accounting for some 65 percent of the North African country's gas production, were acquired as part of Shell's $54 billion take over of BG Group last year. The assets include two offshore gas fields -- Miskar…
Oil Falls as Market Stays Well Supplied
Oil prices fell on Thursday on signs that the market remained well supplied with crude despite efforts by OPEC and other big exporters to curb production and support prices. Signs of a deepening political crisis in Washington accelerated the decline in prices with investors becoming increasingly cautious following the latest reports of links between Russia and the team in the White House.
US Crude Sails to Asia as OPEC Weighs More Cuts
Oil tankers carrying around 10 million barrels of U.S. crude are en route to Asia, according to shipping data and trade sources, as U.S. producers take advantage of favorable prices to ship to the region while OPEC ponders further supply cuts next week. At least eight tankers are in transit, sources said and the shipping data in Thomson Reuters Eikon showed, with one of them carrying…
Semco Wins Order for Culzean Hook-up
Semco Maritime to participate in the preparation (hook-up) of Maersk Oil UK’s new gas field in the U.K. sector of the North Sea when the production units arrive from Singapore in the summer of 2018. The largest order ever for Semco Maritime’s Aberdeen office. Maersk Oil UK has selected Semco Maritime to participate in the installation and preparation (hook-up) of the new gas production field Culzean, which is located 240 kilometers east of the coast of Aberdeen in the U.K.
Hellenic Petroleum Q1 Core Profit Rises 35$
Greece's biggest oil refiner Hellenic Petroleum posted on Wednesday a 35 percent rise in first-quarter core profit thanks to stronger production capacity and robust demand for heating oil at home. Core profit, or underlying earnings before interest, tax, depreciation and amortisation (EBITDA) - stripping out oil inventory holdings - came in at 229 million euros ($254.46 million), beating analysts average forecast of 216.4 million euros in a Reuters poll.
BP CEO Takes a Pay Cut
BP shareholders on Wednesday approved an $11.6 million pay package for chief executive Bob Dudley, after the oil and gas company cut it in response to investor pressure. Shareholders at BP's annual general meeting also approved a new remuneration policy that will lower performance incentives. With the vast majority of votes counted, shareholders adopted BP's 2016 pay by a majority of 97.09 percent…
Saudi Aramco to Set Up Chemicals Unit
Saudi Aramco plans to set up a new chemicals subsidiary, the company said in its official magazine, The Arabian Sun, on Wednesday. "The Board... approved the creation of a new subsidiary to conduct the company's chemicals business," Aramco said. It did not give further details in the weekly in-house publication. Aramco's board met last week in Shanghai to discuss the company's plans and appointed a new downstream head as well as several vice presidents in other key positions.
Growing U.S. Shale Activity Confounds OPEC
As oilfield workers for Lilis Energy Inc threaded together drill pipes one recent morning in the Permian Basin, a bulldozer cleared sagebrush to make way for the company's fifth well since January. Lilis aims to expand production sevenfold this year in America's most active oilfield. The whir of activity is all the more impressive after the small firm nearly collapsed in late 2015…
Oil Turns Positive as Market Awaits EIA Data
Surprise rise in U.S. API crude stocks weighs on prices; investors await U.S. EIA inventory data later on Wednesday. Oil prices strengthened on Wednesday ahead of U.S. crude inventory data that could give investors a clue as to whether an OPEC-led output cut is making progress in reducing the persistent global supply overhang. Brent crude was up 33 cents at $51.98 per barrel by 1100 GMT. U.S. light crude rose 18 cents to $48.84.
Coal Exporters Watch as China, India Mull Policy Change
Coal exporters may be feeling more comfortable about their future as they see both reasonable demand from Asia's top importers and prices which appear to be stabilising at levels that allow for decent profits. This renewed optimism was evident at this week's Coaltrans Asia conference on the Indonesian resort island of Bali, where much of the discussion among delegates at the region's…
Venezuela Supports Extending Production Cuts
Venezuela on Tuesday said it supported a nine-month extension of an agreement between OPEC and non-OPEC countries to limit crude production, hoping to achieve a "stabilization" of the oil market. The crisis-hit OPEC nation, which relies on oil for some 94 percent of its export revenue, has long fought for "fair" oil prices. "Venezuela believes that the agreement between OPEC and non-OPEC countries…
Output Spike Brightens North Sea's Twilight Years
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. North Sea crude output was 2.54 million bpd in 2016 and is forecast to reach 2.59 million bpd in 2017 and 2.63 million bpd in 2018…
Global Oil Market is Rebalancing: IEA
The global oil market is rebalancing and the pace at which supply and demand are falling into line is picking up, even if inventories still fail to reflect the impact of OPEC supply cuts, the International Energy Agency said on Tuesday. In its monthly report, the IEA kept its global demand growth forecast for 2017 unchanged at 1.3 million barrels per day (bpd), because of slowdowns in previously robust consumer countries such as the United States, Germany and Turkey.
Nigerian Strike Spreads to Chevron, Agip and Shell
Nigerian workers from an oil labour union have extended a strike to oil majors Chevron , Shell and Eni subsidiary Agip in protest over the sacking of members from Exxon Mobil Corp , the union's general secretary said on Tuesday. Nigerian labour unions have held a number of strikes in the last few months in protest at the sacking of workers by oil companies. Members of the Petroleum…
Oil Rises on Supply Cut Extension Hopes
Kuwait says it supports Saudi/Russian push to extend curbs; rising supplies elsewhere undermine output cuts. Oil prices extended gains on Tuesday after top producers Saudi Arabia, Russia and Kuwait supported prolonging supply cuts until the end of March 2018 in an effort to drain a global glut. Brent crude oil was up 20 cents at $52.02 a barrel by 1010 GMT. U.S. light crude also gained 20 cents at $49.05 a barrel.
Ecopetrol Output Falls at Big Oil Field amid Protests
Colombia's state oil company Ecopetrol on Monday said it reduced output in one of its key production areas due to protests by residents who reject changes to the company's hiring policy for local labor. The protest forced the closure of 92 wells producing about 10,000 barrels of oil daily near the municipality of Acacias, in central Meta province, and affected the Castilla and Chichimene fields.
Pieridae Seeks Natural Gas Acquisitions, CEO Says
Pieridae Energy Ltd, the company behind a proposed liquefied natural gas terminal on Canada's east coast, is looking to buy producing assets in western Canada or in the Marcellus shale play in the United States, its chief executive said on Monday. Alfred Sorensen told Reuters in a phone interview that Calgary-based Pieridae wanted to buy about 200 million cubic feet a day of natural gas production to supply its terminal and would consider buying a company or just assets.
Coal: India's Energy Mainstay for Next 30 Years
Coal will remain India's main energy source for the next three decades although its share will gradually fall as the country pushes renewable power generation, according to a government report seen by Reuters. The country is the world's third-largest coal producer and the third-biggest greenhouse gas emitter. It depends on coal for about three-fifths of its energy needs and aims to double its output to 1.5 billion tonnes by 2020.
Industry Funding to Boost UK Offshore O&G Research
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 $537,000) from Verus Petroleum, an independent oil company active on the U.K. Continental Shelf (UKCS).
Eoltech Wins Repeat Contracts
Wind energy consulting firm Eoltech announced that it won contracts from major French customers to deploy IREC-Index. With this advanced multi-source wind energy index, Eoltech will aim to refine the monitoring of 24 wind farms in France, representing a total output of 500MW. IREC-Index will enable Eoltech’s clients to check the consistency of their fleet’s output against the available wind resource to detect potential turbine performance discrepancies.
Centrica to Boost North Sea Drilling
Centrica said it will drill a new production well at its Chestnut oilfield in the North Sea, which was going to be shut later this year. The Chestnut oilfield is off the coast of Aberdeen in Scotland and has been producing oil since 2008 but was only expected to do so for three years. The field produces 4,000 barrels of oil equivalent a day and the additional production well should bring a further 10…
Chevron Reports Outage at Gorgon LNG Plant
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," the company said in a statement. "Train 1 is expected…
Oil Dips as US Adds Rigs for 17th Straight Week
Oil prices fell slightly on Friday as evidence that U.S. production was still rising overshadowed hopes that the global crude glut would diminish on expected production cut extensions from OPEC and other producing countries. U.S. drillers added oil rigs for the 17th week in a row, according to data from Baker Hughes on Friday. Horizontal rigs, the type most often used to extract oil or gas from shale, rose by 8 to 742. Oil rigs rose by 9 to 712.
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, which covers 7,300 square kilometres, and SMHPM will take the remaining 10 percent.
UEC Presents Industrial Gas Turbine Equipment in Algeria
Russian United Engine Corporation (UEC) (www.UECrus.com), a company offering solutions for development, mass production and maintenance of gas turbine engines for customers engaged in oil and gas, power generation and aerospace, as well as marine and railways, for the first time participates in the 50th Algiers International Fair (FIA–2017) and presents cutting edge products for the oil and gas industry. The Algerian fair has been held since 1964.
Sonatrach CEO Urges Simplifying Business, Focus On Output
The new chief of Algeria's state energy company Sonatrach has urged employees to simplify bureaucracy, and focus on the core business of production as the North African state deals with lower oil prices, an internal company letter shows. The message from new CEO Abdelmoumen Ould Kadour was sent to Sonatrach employees just over a month after he took the job as the oil giant's sixth chief executive in seven years…
Nigerian Government to Mediate Between Union, Exxon to End Strike
A Nigerian oil labour union and U.S. oil major Exxon Mobil Corp will hold talks with government officials early next week in an effort to end a strike over the sacking of workers, a union official said on Friday. Workers at Exxon Mobil went on strike this week to protest against the sacking of 150 staff in December. Nigerian labour unions have held a number of similar strikes in the past few months.
ACE Winches' Mooring System on the Iron Lady Barge
ACE Winches has mobilized a six point mooring system to anchor the Iron Lady Barge being used on the Brent decommissioning project. The equipment, designed and manufactured by ACE Winches at its global headquarters in Turriff, Aberdeenshire is now in situ and being supported by a team of ACE Winches offshore personnel. ACE Winches manufacture a range of standard and bespoke drum winches, available in single or double drum configurations.
Oil Firms, on Track for Biggest Gain in Five Weeks
U.S. oil inventories fell by more than forecast last week; OPEC-led production curbs expected to be extended. Oil prices on Friday were on track for their biggest weekly gain in five weeks, helped by expectations of an extension of OPEC-led output cuts and buoyed by falling U.S. crude inventories. Benchmark Brent was trading 5 cents higher at $50.82 per barrel at 1141 GMT, on target for a 3.5 percent rise on the week. U.S. light crude oil was up 2 cents at $47.85.
BASF: Role of Oil & Gas Unit to Decline
CEO says focus of profitability drive to be on chems, agchems, but sees no reason to exit oil and gas activities. BASF, the world's largest chemicals maker, said its focus would be on boosting profitability at its chemicals and crop protection businesses as the contribution to earnings from oil and gas, hurt by low crude oil prices, diminishes further. The company, whose products include catalytic converters…
Caspian Pipeline Eyes Expansion With New Oilfields
The Caspian oil pipeline will boost its capacity this year by some 47 percent thanks to new oilfields in the region including the giant Kashagan deposit in Kazakhstan, the director general of the consortium that owns it, Nikolai Gorban, said on Friday. The plans to boost the oil exports may undermine OPEC-led efforts to cut production of oil in order to reduce bloated global inventories and support sagging oil prices.
Oil Soars on OPEC Hopes, U.S. Crude Supplies
Central European, African countries to join OPEC cuts; U.S. crude stocks fall 5.2 mln barrels to lowest since February. Oil prices rose for a second day on Thursday, closing more than 1 percent higher as support grew for OPEC output cuts a day after the U.S. government reported a big draw in crude inventories, boosting confidence that a global glut might diminish. U.S. light crude oil ended the day up 50 cents, or 1.6 percent, at $47.83.