Wednesday, January 22, 2020

Chevron Corp News

US Refiners Grab HSFO on Back of IMO 2020

© Fotos von Schiffen / Adobe Stock

U.S. refiners are scooping up cheap high-sulfur fuel oil for processing from Russia and the Baltic states as they take advantage of new shipping rules that have cut demand for the dirtier marine fuel, according to oil traders and shipping data.U.S. refiners Valero Corp, Chevron Corp and Phillips 66 have been buying HSFO, traders said, taking advantage of their complex operations to turn HSFO blended with crude oils into products like diesel, gasoil and gasoline.This month, 2.2 million tonnes of fuel oil, largely from Russia and the Baltic states…

Oxy Slashing Jobs 'Significantly'

© supakitmod / Adobe Stock

Occidental Petroleum Corp said on Wednesday it would begin dismissing workers in a new cost-cutting move following its $38 billion acquisition of Anadarko Petroleum.The company has already "significantly" cut staff through a voluntary program, spokeswoman Melissa Schoeb said in an email. She did not respond to requests for information about the number of employees to be cut or any potential charge to earnings.The combined company had about 16,000 workers when it merged.Occidental has been selling assets and cutting costs since it outbid Chevron Corp last year for Anadarko, quadrupling its debt to $40 billion.

Chevron Pulls Staff from Northern Iraq

Chevron Corp removed its expatriate staff operating in northern Iraq as a security precaution, a spokeswoman said on Monday, joining other oil companies pulling staff following the U.S. killing of an Iranian general in the country.U.S. officials last week called for American citizens to leave Iraq hours after a drone strike killed Iranian Quds Force leader Qassem Soleimani and Iraqi militia commander Abu Mahdi al-Muhandis.Chevron said a small contingent of expatriate employees and contractors temporarily left its Kurdistan region operations as a precautionary measure. Other U.S.

U.S. Drillers Add Rigs for first Week in Eight

AdobeStock / © Nightman

U.S. energy firms added rigs for the first time in eight weeks even as producers follow through on plans to reduce spending on new drilling.Companies added 4 oil rigs in the week to Dec. 13, bringing the total count to 667, energy services firm Baker Hughes Co said in its closely followed report on Friday.In the same week a year ago, there were 873 active rigs.That keeps the oil rig count on track to fall for the first year since 2016. The decline, however, only totals 218, which is much smaller than 2015's record 963 rig decline…

Chevron: GoM Anchor Project Needs $5.7 bln

© Andrei / Adobe Stock

Chevron Corp said on Thursday its Anchor project in the Gulf of Mexico would need an investment of about $5.7 billion.Announcing its final investment decision on the planned facility, the oil major said first oil from the field is expected in 2024.The Anchor field is located about 140 miles off the coast of Louisiana and is in water depths of 5,000 feet.The planned facility has a design capacity of 75,000 barrels of crude oil and 28 million cubic feet of natural gas per day. The total potentially recoverable oil-equivalent resources for Anchor are estimated to exceed 440 million barrels.Chevron…

Chevron Plans Assets Sale

© Andrei / Adobe Stock

U.S. oil major Chevron Corp said on Tuesday it is evaluating strategic alternatives, including divestment of gas-related assets in Appalachia shale, Kitimat LNG, and other international projects.Chevron, which set a 2020 spending program of $20 billion, said these actions are estimated to result in non-cash, after tax impairment charges of $10 billion to $11 billion in its fourth quarter, with more than half related to the Appalachia shale.The second-largest U.S. oil company also said it will reduce funding…

Majors Press Mexico to Resume Oil Auctions

© Denys / Adobe Stock

Big oil companies operating in Mexico have launched a drive to convince leftist President Andres Manuel Lopez Obrador to resume auctions of oil and gas contracts he has branded a failure in reviving the industry.Chevron Corp, Exxon Mobil Corp and Royal Dutch Shell Plc, among other firms in Mexico's Association of Hydrocarbon Companies (Amexhi), say they have met output targets and investment pledges worth hundreds of millions of dollars in the initial phases of their contracts."We've been complying (with contractual obligations)…

Oil Companies Swap Stakes in Mexico

© somartin / Adobe Stock

With Mexico's government insisting that energy companies increase oil and gas output before it auctions off more of the country's vast reserves or offers more partnerships with state-run Pemex, firms ranging from foreign majors to local players are scrambling to buy and sell blocks they already own.The negotiations are creating a dynamic secondary market for oil acreage, which could be the only investment opportunity left for firms until leftist President Andres Manuel Lopez Obrador unblocks his predecessor's…

Chevron Profit Falls

© SUNDRY PHOTOGRAPHY / Adobe Stock

Chevron Corp reported a larger-than-expected 36% drop in third-quarter profit on Friday, hit by lower oil and gas prices despite an overall increase in its output.Results mirrored weaker earnings at BP Plc and Royal Dutch Shell, which indicated they might delay dividend increases or a buyback program due to low prices. Exxon Mobil earlier on Friday reported its profits fell by nearly half from a year ago, citing lower oil and gas prices."Lower crude oil and natural gas prices more than offset" production increases…

Woodside Targets Scarborough FID in Early 2020

(Photo: Woodside)

Woodside Petroleum Ltd has pushed out the final approval date for its mammoth Browse gas project but slightly brought forward plans to sign off on its smaller Scarborough project as it races to fill an anticipated global supply gap.Woodside, Australia's top independent gas producer, said on Thursday it is now targeting a final investment decision on the $20.5 billion Browse project in the first half of 2021 as it continues to wrangle with its partners. It had previously expected approval in late 2020.However…

Shell Consortium, Petronas Win Oil Blocks Off Brazilian Coast

A consortium of Royal Dutch Shell Plc, Chevron Corp and Qatar Petroleum won oil exploration and production rights in the C-M-713 block off the coast of Brazil on Thursday, paying the government a signing bonus of roughly 551 million reais ($133 million).Shortly before, Petronas won a separate offshore block, C-M-661, with a signing bonus of roughly 1.116 billion reais.(Reporting by Gram Slattery, Marta Noguiera and Rodrigo Viga Gaier, editing by Deepa Babington)

Oil Companies Push Carbon-capture Efforts

Since 1996, the Equinor-operated Sleipner field offshore Norway has been used as a carbon capture and storage facility, marking the longest ongoing CO2 storage project in the world. (Photo: Harald Pettersen / Equinor)

A group of 13 major oil companies charted out a plan on Monday to promote investments in carbon capture, use and storage (CCUS), ahead of a gathering in New York.Oil chiefs grappling with growing demand for action to fight climate change have looked to invest in carbon-capture and sequestration techniques that some executives, including Occidental Petroleum Corp CEO Vicki Hollub, say could make drilling carbon neutral.With fossil fuel development growing worldwide, the oil and gas industry faces growing criticism from activists concerned about accelerating climate impacts from melting ice caps to sea-level rise and extreme weather.

ExxonMobil Looks to Sell Australian Assets

(Photo: ExxonMobil)

Exxon Mobil Corp said on Wednesday it was looking to sell its 50% stake in the Gippsland Basin oil and gas development in Australia's Bass Strait as part of a broader review of its global portfolio of assets.The sale could fetch up to $3 billion, however decommissioning costs for the ageing fields could dent the price tag, analysts and bankers said.The Gippsland Basin joint venture, off the state of Victoria, has long been the mainstay oil and gas supplier for southeastern Australia, but output is in decline."As…

Battered U.S. Oil Producers Soar on Saudi Attacks

Photo: Exxon Mobil

Shares of U.S. oil and gas companies surged on Monday, as a jump in oil prices in the wake of attacks on Saudi Arabia's oil facilities drove a relief rally in one of the S&P 500's worst performing sectors this year.Shares in major energy conglomerates including Exxon Mobil Corp and Chevron Corp jumped nearly 3%, while some of this year's weakest performers saw huge gains: Chesapeake Energy Corp was up 17%, Denbury Resources up 26% and California Resources up 15%.Oil prices at one point surged nearly 20%, with…

Exxon, Chevron See Consolidation in Top U.S. Shale Field

The two largest U.S. oil and gas companies on Tuesday left the door open for more acquisitions in the country's top shale field.Exxon Mobil Corp expects to see industry consolidation to happen "over some period of time," in the Permian Basin in west Texas and New Mexico, Chief Executive Darren Woods told investors at a Barclays energy conference in New York.If Exxon sees an opportunity it has the balance sheet to "be in a position to transact on that," Woods said, but he added that "time's on our side."Chevron Corp also will take an "opportunistic" approach in the basin…

Anadarko Shareholders Go for Cash in Oxy Buyout

(Photo: Anadarko)

Shareholders of Anadarko Petroleum Corp on Thursday voted overwhelmingly to sell the company for $38 billion to rival Occidental Petroleum Corp, ending a short-lived contest that pitted two of the most storied names in the oil industry against one another.Occidental in May beat out Chevron Corp to grab a major oil industry prize: Anadarko's nearly quarter million acres in the Permian Basin, the top U.S. shale field, where low-cost output has helped turn the United States into the world’s top oil producer at…

Chevron Profit Surges 26%

(Photo: Chevron)

Chevron Corp reported a 26.3% jump in quarterly profit on Friday, as higher oil and gas production and a one-time breakup fee from its failed bid for a rival more than offset lower energy prices and a rise in expenses.Results benefited from a $1 billion fee it received after Occidental Petroleum wrecked its $33 billion deal to buy Anadarko Petroleum with a winning $38 billion bid. The termination fee added $720 million to the quarter's profit, Chevron said.Its U.S. shale production rose 21% during the quarter, but was overshadowed by sharply weaker oil and gas prices.

Baker Hughes: U.S. Cuts Rigs for Fifth Straight Week

file Image: an offshore oil installation (CREDIT: DNV-GL)

U.S. energy firms this week reduced the number of oil rigs operating for a fifth week in a row as most independent producers cut spending even though majors were still pushing ahead with investments in new drilling.Drillers cut six oil rigs in the week to Aug. 2, bringing the total count down to 770, the lowest since February 2018, General Electric Co's Baker Hughes energy services firm said in its closely followed report on Friday. <RIG-OL-USA-BHI>That is the most weekly declines in a row since March when drillers cut rigs for six consecutive weeks.During the same week a year ago there were 859 active rigs.The rig count…

Enterprise Products to Build GoM Crude Terminal

File Image: AdobeStock / © Jose Gill

Enterprise Products Partners LP said on Wednesday it expects to take about two years to construct its oil export project called Sea Port Oil Terminal, or SPOT, in the U.S. Gulf of Mexico.Permitting for the terminal was expected to reach the final stages by the end of the first quarter of 2020 and final approval was expected during the second quarter, a company executive said on its second quarter earnings call.Enterprise Products signed long-term agreements with Chevron Corp to support the development of SPOT…

Enterprise, Chevron to Build Offshore Port

Chevron in the Gulf of Mexico. Image: Chevron

Pipeline operator Enterprise Products Partners  signed long-term agreements with Chevron Corp to develop Enterprise’s Sea Port Oil Terminal (SPOT) in the Gulf of Mexico.The American midstream natural gas and crude oil pipeline company said in a release that its SPOT project consists of onshore and offshore facilities, including a fixed platform located approximately 30 nautical miles off the Brazoria County, Texas coast in approximately 115 feet of water.SPOT is designed to load Very Large Crude Carriers (VLCCs) at rates of approximately 85,000 barrels per hour, or up to approximately 2 million barrels per day.