OPEC, non-OPEC Won't Decide On Oil Pact Extension till Jan
OPEC and other oil producers will not take a decision until January on whether to extend their pact to curb oil production, Russia's Energy Minister Alexander Novak said on Friday. "I believe that January is the earliest date when we can actually, credibly speak about the state of the market," he said after he was asked when a decision on extending the pact would be taken. He was speaking…
Statoil Achieves Climate Target Two Years Ahead of Schedule
Statoil has already achieved its 2015 target of reducing the CO2 emissions from the Norwegian continental shelf by 1.2 million tonnes annually from 2008 to 2020. The reduction equals the emissions from some 600 000 private cars annually, or almost every fourth car on Norwegian roads. “It is essential that we take strong and effective actions to meet the challenges associated with man-made climate change and to realize the important goals set in the Paris Agreement.
Oil Steadies as OPEC Mulls Next Move
Oil prices were steady on Friday, as investors waited to see whether major producers meeting in Vienna would back an extension to output cuts beyond March next year. Brent crude futures were up 4 cents at $56.47 a barrel at 1100 GMT. U.S. West Texas Intermediate (WTI) crude futures were down 2 cents, at $50.53 per barrel. Some ministers from the Organization of the Petroleum Exporting Countries…
OPEC Says Winning Battle to Curb Glut
Producers began cuts in January; deal due to expire in March 2018. Output cuts by OPEC and other oil producers are clearing a supply glut that has weighed on crude prices for three years, ministers said at a meeting on Friday to review the pact that expires in March 2018. The Organization of the Petroleum Exporting Countries, Russia and several other producers have cut production by about 1.8 million barrels per day (bpd) since January.
Aker Solutions Wins Troll FEED Contract With EPCI Option From Statoil
Aker Solutions said it has won a contract from Statoil for front end engineering and design of a module that will increase output at Troll, one of Norway's largest natural gas fields. The order includes an option for engineering, procurement, construction and installation of the module, which will receive and process gas from the Troll West field before it is exported to the onshore Kollsnes facility near Bergen in Norway.
Mission Accomplished? OPEC Banishes Contango
“There is no doubt that the oil market is moving in the right direction,” the Organization of the Petroleum Exporting Countries noted with satisfaction in its most recent bulletin published on Wednesday. “The rebalancing process was never going to happen overnight; it was never going to happen in a linear fashion; and it was always going to require a concerted effort,” OPEC observed.
Oil Prices Slip Ahead of Key OPEC Meeting
OPEC meeting in Vienna on Friday as U.S. crude production has reached pre-Harvey storm levels. Oil prices slipped on Thursday, giving up some recent gains before a meeting of oil producers that could extend production limits aimed at clearing a glut in supplies that has depressed the market for more than three years. Ministers from the Organization of the Petroleum Exporting Countries…
Anadarko Petroleum to Buy Back $2.5 Bln in Shares
Anadarko Petroleum Corp said on Wednesday that its board had authorized a $2.5 billion share repurchase program through 2018. The company's shares were up 3.8 percent at $46.5 in after-market trading. Anadarko also reaffirmed its 2017 production forecast for its Gulf of Mexico and Delaware Basin assets. (Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Maju Samuel)
New Electrical Steam Boiler Module for Aoka Mizu FPSO
Parat Halvorsen AS said it recently secured a contract to design and fabricate a complete, turnkey steam boiler module for the Floating Production & Storage Offshore (FPSO) vessel Aoka Mizu owned by Bluewater Energy Services BV. The FPSO is being decommissioned for the Lancaster project which is owned and operated by Hurricane Energy UK. The module will include 2 x 3200kW electric steam boilers based on the PARAT MEL design and will provide an additional 9…
ROG Ship Repair Completes FPSO Moonpool Project
Holland’s ROG Ship Repair said it has come to the aid of a Floating Production & Storage Offshore (FPSO) vessel ran into problematic weather conditions while being towed from Europe to the Middle East. Having recently been assigned a new contract, the 89,184 dwt, 248.1 m long FPSO Aoka Mizu (Japanese for Bluewater), owned and operated by Holland’s Bluewater Energy Services, will be…
Chevron Drills Oil Well in Iraqi Kurdish Area after Two-year Gap
U.S. firm Chevron drilled its first exploration well this month in Iraqi Kurdistan after a two-year break, industry sources said, signalling its confidence in the area despite an international row over region's independence referendum plan. Chevron, the second largest U.S. oil and gas company, drilled the well in Sarta block, north of the regional capital Erbil, the first such well since the second half of 2015, two industry sources told Reuters.
Oil on Course for Strongest Q3 since 2004
Brent crude set for Q3 rise of nearly 16 pct. Oil rose was on course for its largest third-quarter gain in 13 years as prices rose on Wednesday after the Iraqi oil minister said that OPEC and its partners are considering extending or deepening output cuts aimed at reducing a global supply glut. Brent crude futures were up 48 cents at $55.62 a barrel by 1020 GMT, while U.S. West Texas Intermediate (WTI) crude futures rose 54 cents to $50.02.
Lebanon Passes Oil Tax Law
Lebanon made progress in its efforts to develop a hydrocarbons industry on Tuesday when lawmakers passed a petroleum tax law, as companies prepare to bid on a first round of offshore exploration licences next month. Earlier this month, Energy Minister Cesar Abi Khalil extended by four weeks the deadline for companies to submit bids for exploration and production. Bidding will be held for offshore blocks 1, 4, 8, 9 and 10.
BP's Thunder Horse Platform Shut Temporarily on Power Issue
BP Plc halted production at its Thunder Horse platform in the U.S. Gulf of Mexico on Monday following a power outage, a company spokesman confirmed on Tuesday. The benchmark for sour crude rallied to its strongest in more than two years on the disruption. BP evacuated its workforce of about 300 people from the facility after the power outage as a precaution, according to the statement. Technical and essential personnel were scheduled to return to the platform on Tuesday.
US Natural Gas Prices Rise as Winter Stocks Look Tight: Kemp
U.S. natural gas stocks look somewhat tight after low prices this summer worked off the excess stocks that built up in the first half of the year. Current stocks are in line with the five-year seasonal average but that may not be enough given the increase in exports and the number of additional combined-cycle power plants that have become operational in 2017. The last two winters have been exceptionally mild…
Oil Nears Five-Month Highs
Saudi crude exports fell to three-year low in July, as U.S. shale output seen rising for 10th month in October. Oil prices traded close to five-month highs on Tuesday after key Middle Eastern producers showed they continued to comply with output cuts under an OPEC-led deal that Iraq's oil minister said could be extended or deepened. A weaker U.S. dollar also lent support to dollar-denominated commodities such as oil, traders said.
Corbin Joins Sparrows Group as European Director
Sparrows Group has appointed Matt Corbin as its regional operations director for the UK and Europe to support the company’s continued growth in the oil and gas, renewables and industrial sectors. Corbin, who has more than 20 years’ experience working in the oil and gas industry, has held several leadership positions including UK managing director for the subsea division of Aker Solutions and UK regional general manger for GE Oil & Gas.
US Drillers Cut Most Oil Rigs since January
U.S. energy firms cut the most oil rigs in a week since January as a 14-month drilling recovery stalled due to weak crude prices. Drillers cut seven oil rigs in the week to Sept. 15, bringing the total count down to 749, the least since June, General Electric Co's Baker Hughes energy services firm said in its closely followed report on Friday. Drillers have not added any rigs since the week of Aug. 11.
Domestic Diesel Stocks Tighten in Storm's Wake
U.S. diesel stockpiles did something this year that has never happened in the summer before: They shrank. And that was even before Hurricane Harvey landed, knocking out a quarter of U.S. refining capacity, crippling production of fuel products. Thanks to surprising summer demand, particularly from exports, inventories of diesel, jet fuel and heating oil were heading into the busy winter at their lowest levels in three years.
Oil Nears Five-Month Highs
Brent, WTI on track for biggest weekly gains in two months; U.S. refineries restarting after hurricane shutdowns. Brent oil prices held steady near five-month highs, and were on track for the highest weekly rise since the end of July on higher demand forecasts and the restart of oil-hungry refineries in the United States. The Organization of the Petroleum Exporting Countries this week forecast higher demand for its oil in 2018 and pointed to signs of a tighter global market…
US Shale Sector at Critical Price Threshold: Kemp
Forward U.S. oil prices for 2018 have climbed back above $50 per barrel, a level that should be high enough to stabilise drilling activity over the next two months. But if prices continue their current upward trend, shale firms will almost certainly interpret that as a sign to increase output and begin ramping up their drilling programmes again. Shale drilling has proved very sensitive to changes in the value of West Texas Intermediate (WTI) crude…
25 More Years in the ACG Field
Statoil, together with co-venturers and the Azerbaijan Government sign amended and restated Azeri-Chirag-Deepwater Gunashli PSA. The Azerbaijan Government and the State Oil Company of the Republic of Azerbaijan (SOCAR) together with BP, Statoil, Chevron, INPEX, ExxonMobil, TPAO, ITOCHU and ONGC Videsh today sign the amended and restated Azeri-Chirag-Deepwater Gunashli (ACG) Production Sharing Agreement (PSA) which will be effective until the end of 2049.
Brazil: 17 Firms Registered to Bid for Pre-salt Oil Exploration
A total of 17 companies have registered to take part in two rounds of bidding for licenses to explore pre-salt oil areas in Brazil, Oil and Gas Secretary Marcio Felix said on Thursday. The auctions next month include some of the most promising oil blocks in the world. Pre-salt oil, referring to reserves found beneath a deep layer of undersea salt, has been said to be of high quality and commercial value.
Premier Oil Seeks North Sea Gas Field Buyer
Premier selling 23.5 stake in Babbage gas field; CEO says bidding process yet to be launched. Premier Oil is seeking to sell half of its stake in the Babbage gas field in the North Sea, according to a document seen by Reuters, as it tries to pay down a heavy debt pile it accrued during the oil market downturn. The London-listed oil and gas producer completed a financial restructuring…
Oil Rises on Stronger Demand, Supply Restrictions
Global oil demand estimates rising; U.S. Gulf oil refineries slowly returning after storms. Oil prices rose on Thursday, building on recent gains after forecasts for stronger oil demand by the International Energy Agency (IEA). Brent crude was up 40 cents at $55.56 a barrel by 1100 GMT, having risen by 89 cents, or 1.6 percent, on Wednesday. U.S. light crude was up 40 cents at $49.70 after a 2.2 percent gain in the previous session.
Eni Inks Cooperation Deal with CNPC
Eni signed a cooperation agreement with China National Petroleum Corporation (CNPC) on Wednesday in a move that could give the Italian oil major greater access to the Chinese market. Eni said in a statement it had agreed to work with state-owned CNPC in the fields of exploration and production, liquefied natural gas (LNG), trading and refining-petrochemicals. The deal will cover operations in China and abroad, it said, without giving further details.
Coal's Problem is Not Climate Change: Kemp
U.S. coal companies blame climate campaigners and the Obama administration for waging a war on coal that has cost thousands of jobs and threatened struggling mining communities. But coal’s long-term problems stem not from politics but from physical properties that make it an inferior source of energy compared with oil, gas and (arguably) renewables. Coal has been losing the “war” for…
Shell to Shed Iraqi Oil Assets
Royal Dutch Shell is set to end a century of oil production in Iraq by withdrawing from two of the Arab state's flagship fields to focus on more profitable gas development. Shell's retreat highlights the challenges foreign operators face with low-margin oil contracts in Iraq, an OPEC member that sits on some of the world's biggest oil reserves and wants to boost production after years of conflict hindered development.
Aker BP to Drill 6-8 Wells in 2018
Aker BP plans to drill between six and eight exploration wells off Norway next year, including four in the Barents Sea, the Norwegian oil firm's chief executive told Reuters. One of these will target a prospect in the southeast Barents on the maritime border with Russia and could contain significant new resources. "Yes, it can, but it also (has) quite a bit of risk," Chief Executive Karl Johnny Hersvik said in an interview at Aker BP's office near Oslo.
Oil Rises on IEA Optimism
IEA raises 2017 global oil demand growth; says investors sees tighter market, higher oil prices. Oil prices rose on Wednesday after the International Energy Agency (IEA) said the global oil surplus was starting to shrink due to robust global demand and an output drop from OPEC and other producers. By 1021 GMT, international benchmark Brent crude was up 27 cents, or 0.5 percent, at $54.54 a barrel. U.S.
Fred. Olsen Energy: Market to Bottom in 2017
Rig firm Fred. A total increase in exploration and production spending of approx. A further decline of approx.
Shell, Petrobras Expand Deep Water Partnership
Two of the world’s largest energy companies, Royal Dutch Shell and Petrobras, signed last week in The Hague, Netherlands, a Memorandum of Understanding (MoU) to establish a long-term mutual collaboration in developing pre-salt fields in Brazil. Shell said the partnership will allow it to benefit from technical solutions, contract management expertise and cost efficient initiatives Petrobras applies to Brazil’s pre and post-salt projects.
Nuclear Newbuild Projects at Decade Low -Report
The number of nuclear newbuild projects worldwide has dropped to a decade low in the wake of the 2011 Fukushima disaster and due to the rising cost of atomic energy, an industry report showed. From a high of 15 in 2010, the number of construction starts of nuclear reactors worldwide dropped to 10 in 2013, eight in 2015, three in 2016, and just one in the first half of 2017, according to the World Nuclear Industry Status Report (WNISR).
Dover Mulls Upstream Energy Unit Sale
U.S. industrial conglomerate Dover Corp said on Monday it was exploring strategic alternatives, including a sale, for its upstream energy unit. The company said the options also include a tax-free spinoff of the unit. The upstream energy unit is part of Dover's overall energy business, which provides lift equipment services and diamond cutters used in oil and gas exploration and production. Reporting by Ahmed Farhatha
Swiss Traders Grab $10 Billion Slice of LNG Market
Traders mopping up LNG glut, finding new emerging market buyers. Swiss trading houses are muscling in on the global market for liquefied natural gas, until now the preserve of energy giants, and expect to grab a $10 billion share of the rapidly growing business this year. Trafigura, Gunvor, Vitol and Glencore are all shaking up a decades-old system dominated by Western oil majors and state energy producers which sell LNG directly to large consumers on long-term contracts.
OPEC Sees Higher 2018 Demand, Trims Output
OPEC on Tuesday forecast higher demand for its oil in 2018 and pointed to signs of a tighter global market, indicating its production-cutting deal with non-member countries is helping to tackle a supply glut that has weighed on prices. In a monthly report, the Organization of the Petroleum Exporting Countries said the world would need 32.83 million barrels per day (bpd) of OPEC crude next year, up 410,000 bpd from its previous forecast.
Maduro Sees Progress after Algeria Oil Talks
Venezuela's President Nicolas Maduro on Monday held energy talks with Algerian officials saying there had been a "good atmosphere" between the two OPEC nations and advances on how to restore global crude prices, but gave no details. Maduro was in Algiers to discuss bilateral cooperation, including talks on the 15-month production pact between OPEC and non-OPEC producers including Russia. The deal aims to curb a glut that has weighed on crude prices for more than three years.
Saudis, UAE: Oil Cut Extension can be Considered
Saudi Arabia's Energy Minister Khalid al-Falih agreed with his UAE counterpart that an extension of a pact on global oil supply cuts beyond March 2018 may be considered depending on market fundamentals, the Saudi ministry said in a statement on Monday. Falih and the Minister of Energy of the United Arab Emirates, Suhail al-Mazroui, held a meeting in Astana, at which both men discussed oil market dynamics and "expressed satisfaction with improving market fundamentals"…
Oil Weakens on Fears Irma Could Dent U.S. Demand
Losses capped by talks over extension to production pact; Saudi Arabia, Venezuela, Kazakhstan discuss deal extension. Oil prices edged lower on Monday on concerns that Hurricane Irma's pounding of heavily populated areas of Florida could dent oil demand in the world's top oil consuming nation. Losses were capped by weekend talks between Saudi Arabia's oil minister and counterparts over a possible extension to a pact to cut global oil supplies beyond next March.
BP in South American Venture with Bridas
British oil major BP has agreed to merge its interests in South American oil company Pan American Energy (PAE) with refiner and fuel retailer Axion Energy in a new joint venture with Axion's owner and PAE partner Bridas Corporation. BP and Bridas, an Argentine energy company 50 percent-owned by China's CNOOC, will hold equal stakes in the newly merged Pan American Energy Group (PAEG) after a cash-free deal that is expected to close early next year, the companies said.
BP’s Glen Lyon FPSO Classed by DNV GL
DNV GL said it has awarded class to BP’s Glen Lyon Floating Production Storage and Offloading (FPSO) vessel located west of Shetland. Glen Lyon is a purpose-built FPSO expected to produce 130,000 barrels of oil a day at peak production. The vessel was transferred into class shortly after first oil in May 2017. DNV GL’s Maritime and Oil & Gas business areas have together provided BP…
Lebanon Extends Offshore Oil Bid Deadline
Lebanon's energy ministry has extended a deadline for bids in its first licensing round for offshore oil and gas exploration by four weeks to Oct. 12, the state-run National News Agency (NNA) reported on Friday. Lebanon relaunched the licensing round in January after a three-year delay due to political paralysis at home. The original deadline for pre-qualified companies to submit their bids for exploration and production was Sept. 15.
Will Saudi Aramco Deliver Record Profit for IPO?
Saudi Aramco is world's biggest oil producing company; but valuation demands annual earnings around $130 billion. When oil giant Saudi Aramco discloses its financials for the first time next year, it must either surprise investors with world record profits or reduce its aspirations for a $2 trillion valuation in its initial public offering (IPO). Investors have long debated whether Aramco could be valued anywhere close to $2 trillion…
Oil Steady as Irma Heads for Florida
Hurricane Harvey shut 8 pct of U.S. oil production; even bigger Hurricane Irma heads for Florida. Oil prices steadied on Friday after almost a week of sharp rises as Hurricane Irma, one of the most powerful storms in a century, drove towards Florida after tearing through the Caribbean. Irma is the second major hurricane to approach the United States in two weeks and has already killed 14, flattening whole islands. Its predecessor, Harvey, shut a quarter of U.S.
Novak Says Premature to Extend Global Oil Deal, Market is Being Balanced
It is premature to decide on extending the global deal to reduce oil production as the oil market has been rebalancing, Russian Energy Minister Alexander Novak said on Thursday, according to the ministry's Twitter feed. He also said that if the market struggles to reach balance, "we would discuss the option of the deal extension" after it expires after March 31. Novak also said that…
Final Turbine Installed at Dudgeon Wind Farm
This week saw the last of the 67 wind turbines being installed on the Dudgeon field and all of them are now producing electricity. During October, the wind farm will provide 410,000 homes in England with electricity. Thirty-two kilometers off the coast of Norfolk in England the wind farm has grown gradually since the first turbine was installed at the beginning of the year. The wind…
Statoil: Rosneft Oilfield Deal Complies with Sanctions
Norway's Statoil said on Thursday its cooperation with Russia's Rosneft in developing the onshore North Komsomolskoye oilfield was compliant with European Union and U.S. sanctions imposed on Russia over the conflict in Ukraine. Statoil confirmed plans to take a 33 percent stake in the northwest Siberian field under an agreement signed with Rosneft in 2013, a year before sanctions on cooperation in oil production were imposed.
Oil Firms as Gulf Refineries Restart
Hurricane Harvey's impact on oil industry slowly fading. Brent oil prices firmed on Thursday, hovering near 3-1/2-month highs as U.S. refiners restarting after Tropical Storm Harvey increased their crude processing and the U.S. dollar declined. Brent crude futures were up 28 cents at $54.48 a barrel by 1143 GMT, close to their highest since May 25. U.S. West Texas Intermediate (WTI) crude futures eased by 11 cents to $49.05 a barrel, near a four-week high. U.S.
Traders Expect Tighter 2018 Oil Market
While the headlines have been dominated by the devastation wrought by Hurricane Harvey, oil traders have quietly become more bullish, or at least less bearish, about 2018. Brent calendar spreads have resumed their steady march from contango towards backwardation as Texas refineries resume operations after shutting down during the storm. Brent spreads from November to December and December…
Wood Group Wins Ichthys Subsea Deal
Wood Group has secured a new, five-year contract with INPEX Operations Australia Pty Ltd (INPEX Australia) to provide subsea engineering services for the integrity of the INPEX-operated Ichthys LNG Project, offshore Western Australia. The operations of all subsea assets and the gas export pipeline will be supported under the contract which includes two, one-year extension options and is effective immediately.
France to End Oil & Gas Production by 2040
France plans to pass legislation by the end of 2017 to phase out all oil and gas exploration and production on its mainland and overseas territories by 2040, becoming the first country to do so, according to a draft bill presented on Wednesday. President Emmanuel Macron wants to make France carbon neutral by 2050 and plans to curb green house gas emissions by leaving fossil fuels, blamed for contributing to global warming, in the ground.
Guangzhou Halts Foreign Coal Imports
Port handles 60 mln tonnes/year of foreign and domestic seaborne coal. Guangzhou port, the largest coal transport hub in southern China, has halted foreign coal imports, according to traders who use the port and said they had been informed of the shutdown by customs authorities and senior company officials. Traders said the move caught merchants using Guangzhou by surprise and interpreted…
BP, Shell Double Down on North Sea
BP, Shell plan around 10 exploration wells, even though both companies have sold many North Sea assets. Two of the most veteran oil and gas producers in the UK North Sea, Royal Dutch Shell and BP, still tie their future to the ageing offshore basin despite a broad retreat in recent years. Both companies plan to explore this year for new resources in the North Sea, one of the oldest deepwater hubs faced with harsh weather conditions, executives told Reuters.
ConocoPhillips: Eagle Ford Shale Output Nears Pre-Harvey Levels
ConocoPhillips said on Tuesday that oil output from the Eagle Ford shale region of Texas is near 80 percent of levels from before Tropical Storm Harvey. The company pumped 130,000 barrels per day from the Eagle Ford before the storm. It said in a statement it expects to resume that production level within the next week or two. (Reporting by Ernest Scheyder; Editing by Chizu Nomiyama)
US Gasoline Prices Climb as Refineries Gradually Restart
U.S. retail gasoline prices climbed Tuesday, even as oil refineries rumbled back into service after Hurricane Harvey disrupted operations along the Texas coast. The average gasoline price was $2.648, 30.2 cents higher than a month ago, according to motorist advocacy group AAA. Gasoline prices normally retreat after the U.S. Labor Day holiday weekend. Benchmark U.S. gasoline futures fell more than 3 percent, however, as refineries restarted. U.S.
Pemex: Harvey Caused Crude Oil Shipment Delays
Mexican national oil company Pemex said on Tuesday that Hurricane Harvey forced the cancellation of several crude oil export shipments. Due to the damage inflicted by Harvey on the U.S. Gulf coast refining center, Pemex arranged for alternative gasoline and diesel cargos from suppliers elsewhere, the company said in a statement. The company also moved up maintenance plans for its Ku-Maloob-Zaap field, its biggest producer, located in shallow waters of the Bay of Campeche.
Harvey's Windfall for Asian Refiners Could be Short Term
The window for refiners in Asia to make windfall profits by ramping up output to replace production lost in the United States to Hurricane Harvey appears to be fast closing. Saudi Arabia, the world's biggest crude exporter and a major supplier to many Asian refiners, on Monday hiked its official selling price for October by more than expected. The kingdom's benchmark Arab Light grade was boosted by $0.55 a barrel to a premium of $0.30 a barrel to the Oman/Dubai average…
Petrobras Hikes Fuel Prices after Harvey
Brazil's state-controlled oil company Petroleo Brasileiro SA has hiked gasoline and diesel prices twice for September to match price spikes in U.S. prices caused by Hurricane Harvey. The storm roared into Texas, crippling ports along the U.S. Gulf Coast and flooding oil refineries, resulting in about 21 million barrels of gasoline and distillates in lost production as of Wednesday.
Brazil's 20% Ethanol Import Tax Rule Takes Effect
New rules governing Brazil's ethanol imports, which slap a 20 percent penalty for volumes above a tax-free import quota, took effect on Friday, authorities said. Brazil's foreign trade chamber Camex said in an official written resolution that the rules will be valid for two years. It is the first time that Brazil has taxed ethanol imports, with the government reversing its position of avoiding taxes on the biofuel's trade…
US Drillers Add No Oil Rigs as Harvey Slows Production
U.S. energy firms did not add any oil rigs this week as Hurricane Harvey barrelled into the nation's energy heartland, forcing drillers to halt production and refiners to shut plants. The total oil rig count for the week ended Friday stayed at 759, General Electric Co's Baker Hughes energy services firm said in its report on Friday. That compares with 407 active oil rigs during the same week a year ago.