Thursday, July 19, 2018

Chevron News

Transocean Signs 11 Well Contract with Chevron Australia

Photo: Transocean

The international provider of offshore contract drilling services for oil and gas wells Transocean announced that the ultra-deepwater semisubmersible GSF Development Driller I was awarded an 11-well contract (approximately 955 days) commencing offshore Australia in the first half of 2019 with Chevron Australia.The estimated firm contract backlog, excluding integrated services, is approximately USD 158 million. Additionally, the contract includes four one-well options.Two days ago…

Gorgon LNG Faces Scrutiny on Delayed Carbon Capture Project

(File photo: Chevron)

The state of Western Australia has ordered an inquiry into a delay in burying carbon dioxide emissions at Chevron Corp's Gorgon liquefied natural gas (LNG) project, which could lead to a change in conditions on the project.The state approved the $54-billion Gorgon project in 2009 on the condition that at least 80 percent of carbon dioxide released in its gas processing operations over a five-year rolling average period would be buried."It has become apparent there needs to be a clearly defined start point for the commencement of the five-year rolling average…

Shell Offloads Stake in Amberjack Pipeline

Photo: Shell

Royal Dutch Shell will sell its stake in Amberjack Pipeline Co to its master limited partnership Shell Midstream Partners LP for $1.22 billion, the U.S. pipeline operator said on Thursday.Drop down deals - where a parent transfers assets to its master limited partnership (MLP) - are practiced widely by energy companies to boost the value of their midstream assets without losing ownership of critical infrastructure.The Amberjack pipeline, jointly run by Chevron Corp and Shell, is located in the Gulf of Mexico and transports roughly 300…

Record 16 Companies Register for Brazil Pre-salt Auction

File photo: Øyvind Hagen / Statoil

A record 16 oil companies, including heavyweights like Royal Dutch Shell Plc, have registered to participate in the so-called fourth round of bidding for stakes in Brazil's coveted pre-salt layer, oil regulator ANP said on Thursday.American firms Chevron Corp and Exxon Mobil Corp, Norway's Statoil and France's Total SA are also registered for the June auction of blocks in the offshore play, where billions of barrels of oil are trapped under a thick layer of salt below the ocean floor.(Reporting by Roberto Samora and Alexandra Alper; Editing by Lisa Shumaker)

U.S. Court Dismisses Climate Change Lawsuits Against Oil Majors

File Image: Adobestock / © Renaschild

A California federal court dismissed climate change lawsuits against five oil companies by the cities of San Francisco and Oakland, saying the complaints required foreign and domestic policy decisions that were outside the purview of courts, Chevron Corp said on Monday. The cities of San Francisco and Oakland, California sued Chevron, Exxon Mobil Corp, ConocoPhillips, Royal Dutch Shell Plc, and BP Plc last year, seeking an abatement fund to help the cities address flooding they say is a result of climate change.

Benchamas FSO: InterMoor Completes Work

(Photo: InterMoor)

InterMoor has completed work for the installation of the new Floating Storage and Offloading (FSO) facility Benchamas 2 (FSO Benchamas 2). Previously, the Benchamas Explorer FSO, owned and operated by Chevron, was installed in 1999 in Block B8/32 in the Gulf of Thailand. The FSO began initial production in 1999 and after operating the facility for almost 20 years, Chevron decided to replace the aging facility with the new FSO Benchamas 2. The new floating facility FSO Benchamas 2 was delivered by MISC Berhad…

Chevron, Exxon CEOs Worry Global Trade Conflict Could Harm Economy

Mike Wirth (Photo: Chevron)

The leaders of two of the world's largest energy companies said on Tuesday they worry a global trade conflict between the United States and other nations could destabilize the world's economy."The risk of trade wars starts to weigh on people's perception of economic growth in the future," Chevron Corp Chief Executive Mike Wirth said at the World Gas Conference in Washington.Darren Woods, CEO of Exxon Mobil Corp, echoed those sentiments. "The world has been very well served with low tariffs and free trade," Woods said.Reporting by Ernest Scheyder

Valero Boosts Imports of Venezuelan Oil as Sanctions Loom

© sarojmornparn / Adobe Stock

U.S. refiner Valero Energy Corp this year boosted its imports of Venezuelan crude ahead of U.S. sanctions over the country's disputed presidential election and as other customers received less of the OPEC-member's exports, according to Thomson Reuters trade flows data.Venezuelan oil production has tumbled to a multi-decade low this year, cutting shipments to buyers in the United States and elsewhere and worsening a severe economic recession. Its crude exports averaged 1.19 million barrels per day (bpd) in the January-April period…

China's Tariffs on US Oil Would Disrupt $1 Bln Monthly Business

© Igor Groshev / Adobe Stock

China's threat to impose duties on U.S. oil imports will hit a business that has soared in the last two years, and which is now worth almost $1 billion per month.In an escalating spat over the United States' trade deficit with most of its major trading partners, including China, U.S. President Donald Trump said last week he was pushing ahead with hefty tariffs on $50 billion of Chinese imports, starting on July 6.China said Friday it would retaliate by slapping duties on several American commodities, including oil.Investors expect the spat to come at the expense of U.S.

Woodside Mulls Texas Sempra LNG Exit

The chief executive officer of Woodside Petroleum Ltd said on Tuesday that Australia's biggest independent oil and natural gas company will soon decide whether to continue to invest in Sempra Energy's Port Arthur liquefied natural gas (LNG) export project in Texas. "We've got to make some decisions pretty soon about our continued pursuit (of Port Arthur) with Sempra," said Coleman, noting that Woodside has been paying part of the project's development costs. "What we've been doing is just paying our way (with Port Arthur)…

Oil Drops as Demand Shows Signs of Slowing

File Image (CREDIT: AdobeStock / © Leeylutung)

U.S. crude stocks rise by 4.9 mln bbl to 435.6 mln bbl even as production by oil majors is rising. Oil eased on Wednesday after a rise in U.S. crude inventory added to signs demand may be slowing in spite of ongoing output cuts by producer group OPEC and imminent U.S. sanctions against Iran. Brent crude futures were last down 65 cents at $77.78 a barrel by 1147 GMT, while U.S. crude futures fell 32 cents to $70.99 a barrel, leaving the spread between the two just shy of a 2015 high of $7 a barrel.

For Big Oil, Reserve Size Matters Less Than Ever

File Image: CREDIT BSM

Oil and gas reserves life falls below 12 years, lowest level in at least 20 years. A decade ago, the news that the world's top oil and gas companies had less than 12 years of production left in their reserves might have caused a panicked sell-off in their shares. But as consumers try to move away from fossil fuels to cleaner and cheaper energy sources, investors and executives say reserve size is no longer the gold standard for measuring the value and health of a company. The cost of developing existing reserves and the amount of carbon those reserves produce has now become more important…

Oil Gains After Larger than Expected U.S. Stock Draws

File Image (CREDIT: AdobeStock / © Redindie)

U.S. crude stocks fall by 1.4 million barrels. Global oil demand likely to moderate this year. Oil prices gained on Wednesday, shaking off the effects of a strengthening dollar, after an inventory report showed U.S. crude and gasoline stocks fell more than expected. Brent crude futures gained 85 cents to settle at $79.28 a barrel, while U.S. crude futures gained 18 cents to settle at $71.49 a barrel. "We rallied as the day went on," said Gene McGillian, manager of market research at Tradition in Stamford.

Chevron exits Indonesia's Makassar Strait block

Chevron will exit the Makassar Strait gas block in the Indonesia Deepwater Development (IDD) offshore natural gas project to focus on more promising areas in the venture, Indonesian officials said on Wednesday.Indonesia's energy minister had issued a decree terminating Chevron's Makassar Strait production sharing contract (PSC) after it decided not to extend its operation of the block beyond 2020, upstream oil and gas regulator SKKMigas said."Chevron was not interested in requesting an extension," SKKMigas chairman Amien Sunaryadi told reporters.

China Willing to Invest $3 Bln in Nigerian Oil Operations

China National Offshore Oil Corp (CNOOC) is willing to invest $3 billion in its existing oil and gas operation in Nigeria, the Nigerian National Petroleum Corporation (NNPC) said on Sunday following a meeting with the Chinese in Abuja.During a visit to Nigeria's state-owned NNPC, CNOOC Chief Executive Yuan Guangyu said the Beijing-based oil company had invested more than $14 billion in its Nigerian operations and expressed readiness to invest more.Guangyu said Nigeria was their largest…

Subtropical Storm Alberto's Landfall Expected Early Next Week

File Image (CREDIT: AdobeStock / © mode_list)

U.S. Gulf of Mexico producers and refiners are monitoring Subtropical storm Alberto, which is expected to make landfall between east Louisiana and the Florida panhandle early next week, the companies said on Friday. The National Weather Service on Friday predicted the storm would bring heavy rain to the central Gulf Coast region and the southeastern United States later this weekend and continue into early next week. The Louisiana Offshore Oil Port (LOOP), located about 20 miles south of the Louisiana coast in the Gulf, was operating normally, according to the company's website.

Alberto Moves Inland, Flash Floods Threaten Alabama

File Image (CREDIT: AdobeStock / © mode_list)

Subtropical storm Alberto fizzled into a subtropical depression as it rolled into Alabama on Tuesday but forecasters warned of potentially dangerous flash floods even as winds dropped to 30 miles per hour (48 km per hour). At its height, Alberto, the first storm of the 2018 Atlantic hurricane season, blasted sustained winds of 65 mph (105 kph) with gusts that packed full hurricane punches of 75 mph (121 kph), said meteorologist David Roth of the National Weather Service. "It's slowly weakening and it's not regaining any strength," Roth said.

Venezuela Frees Chevron Executives Held Since April

Venezuela has released two local executives of U.S. oil major Chevron Corp jailed since mid-April during a corruption probe in the oil sector, authorities and the company said on Wednesday. The arrests of Carlos Algarra and Rene Vasquez by intelligence agents at Chevron's Puerto La Cruz offices spooked other foreign companies operating in the OPEC nation in partnership with state oil company PDVSA. "They are free," the state prosecutor's office said in an email to Reuters, adding that both had been given unspecified alternative conditions to jail.

Statoil sells non-core asset on UK Continental Shelf

Hedda Felin Photo Statoil

Statoil has agreed to sell its 17 percent non-operated interest in the Alba oil field on the UK Continental Shelf (UKCS) to Verus Petroleum. Alba is an oil field in the UK Central North Sea that Statoil entered in 1995 and which is operated by Chevron. To date, it has produced around 420 million barrels of oil. Statoil’s equity production in 2017 was around 2,300 barrels per day. “With this transaction we focus on core activities in line with our high value, low carbon strategy. We are committed to a broad energy portfolio in the UK…

Chevron to Idle Gorgon LNG Unit in May

Chevron will idle the second production unit at its Gorgon liquefied natural gas (LNG) project in May to carry out modifications already implemented at the other two units, a senior executive said.Pat Yarrington, Chevron's vice president and chief financial officer, said in an earnings call on Friday that Gorgon Train 2 in Australia has a planned "pit stop" in May for crews to replicate performance improvement modifications.Traders said the maintenance is expected to last 30 days.The work will focus on remedying vibration problems already fixed on Trains 1 and 3…

Cookie Settings