Big Oil Digs North Sea's 'Final Frontier'
"Little hope of THIS rock ever producing oil," BP geologist Bill Senior scribbled in 1977 on a note assessing a recent oil discovery in a distant corner of the North Sea.That same rock is today the heart of BP's prized Clair field in the West of Shetland region, which this week started its second phase of production.The giant bridge-linked Clair Ridge platforms are among the projects that have given new life to this area of the North Sea, one of the oldest offshore basins…
Argentina to Export First LNG in 2019
Argentina is due to begin exports of liquefied natural gas from a part of its vast Vaca Muerta shale gas resource next year through a floating LNG liquefaction (FLNG) vessel provided by Exmar, the Belgian shipping company said on Wednesday.The operations, due to start in the second quarter of 2019, will introduce Argentina into the small club of around 20 countries exporting LNG while the FLNG will be only the world's fourth and the smallest.The country's state-controlled oil company YPF signed a 10-year agreement with Exmar to deploy the barge-based FLNG…
Australian Firm Finds Oil, Gas in Zimbabwe
Zimbabwe's President Emmerson Mnangagwa said on Thursday that Australia's Invictus Energy had found oil and gas deposits in the northern Muzarabani area of the country.Invictus Energy has agreed to enter a production sharing arrangement with Zimbabwe once the project reaches commercial production, Mnangagwa said."Government of Zimbabwe will work very closely with Invictus to ensure that Invictus realises its plans to sink an exploration well by mid 2020," Mnangagwa…
Unmanned Platform Starts Production at Oseberg Vestflanken 2
The Oseberg Vestflanken 2 field in the North Sea came on stream on Sunday. Remote-operated from the Oseberg field center, the new Oseberg H platform is the first unmanned platform on the Norwegian Continental Shelf. Recoverable resources are 110 million barrels.“With Oseberg H we take a huge technological leap forward. The fully automatic, unmanned and remote-operated platform is digitalization in practice, and I am proud of Equinor and its partners having chosen this in-house developed solution…
Ghana Resurrects LNG Import Terminal with Chinese Deals
Ghana has chosen two Chinese companies to build the infrastructure it needs to import liquefied natural gas, resurrecting the $350 million Tema terminal project that would make the country the first in sub-Saharan Africa to buy LNG.Tema LNG, backed by Africa-focused private equity firm Helios Investment, signed deals with China Harbour Engineering Company to build onshore facilities and Jiangnan Shipyard for a floating storage and regasification unit (FSRU), the Ghanaian government said in a statement issued on Monday.It gave no further financial details of the deals b
Trump Bets on New European LNG Terminals
U.S. President Donald Trump expects the European Union to fund 9 to 11 liquefied natural gas (LNG) ports to absorb "vastly" more shipments from the United States but current EU investment in new projects will only help open small markets.In a White House press conference with Italian Prime Minister Giuseppe Conte late on Monday, Trump said part of the U.S.-EU trade talks sought to expand America's reach into the continent's gas markets which were awash in Russian supply."And we are already talking to the European Union about building anywhere from 9 to 11 ports…
PGS Below Q2 Expectations but Outlook Improves
Shares of seismic services company PGS, which surveys the seabed for oil and gas deposits, dropped on Thursday on lower-than expected second-quarter results but its CEO said the market outlook was improving.PGS's April-June core operating earnings (EBITDA) rose to $136.0 million, below the $144 million expected by analysts in a Reuters poll, but up from $112.5 million in same quarter last year.Its shares traded three percent down by 0911 GMT, after dropping eight percent in early trade."We see a clear sign of improvement, it's a lot more tender activity, and we have re
TGS Boosted by Seismic Market Recovery
Q1 revenues rose by 56 pct; shares jump 13 pct. Oslo-listed seismic data provider TGS, a key supplier to the oil industry, reported first-quarter revenues far above forecasts as markets continue to improve, it said on Tuesday, sending its share price surging. Net revenues for the January-March quarter rose by 56 percent year-on-year to $135 million, beating the average $106 million forecast by analysts, according to Thomson Reuters estimates. TGS, whose vessels scan the seabed for potential oil and gas deposits…
Rosneft, Eni Fail to Discover Oil at Black Sea Well
Russia's state oil company Rosneft and Italy's Eni did not make a commercial oil discovery in the Black Sea as the well they were drilling proved to be dry, a source close to the operations told Reuters on Wednesday. Rosneft chief executive, Igor Sechin, has partnered with a number of foreign companies to develop Russia's offshore regions, though western sanctions have forced some of its partners such as ExxonMobil to suspend projects. Sechin has counted on…
TGS: Seismic Market Recovery 1-2 Years Away
"The uncertainty of the oil price is affecting the spending of the oil companies. We do not believe that 2018 is going to be the year of the big recovery. We believe in a flat market," Larsen said on the margins of an oil conference. "All the major oil companies are still quite cautious on average in terms of their spending. If you see that, we should actually expect a small decline in exploration spending in 2018," he added. "Another interesting pattern is…
Rising Investment Drives Spectrum's Revenues
Seismic surveyor Spectrum's fourth-quarter revenue surge reflects a shift among oil firms towards more exploration, its chief executive told Reuters. Spectrum on Wednesday reported preliminary sales of $46 million for the October-December period, an increase of 31 percent from the $35 million it reported for the same quarter of 2016. "The fourth quarter was significantly better than the fourth quarter of 2016, and I think that will be reflected for the rest of the industry also.
Rosneft, BP to Jointly Tap Arctic Oil & Gas
Russian energy giant Rosneft and its shareholder BP have agreed to jointly develop oil and gas deposits in Russian Arctic Yamal-Nenets region, Rosneft said on Thursday. The project "envisages the development of the traditional gas reserves of the Cenomanian deposit, pilot production and subsequent full-scale development of the Turonian deposit as well as oil production optimization and efficiency," it said. The deal covers the Kharampurskoe and Festivalnoye licence areas with total geological reserves exceeding 880 billion cubic metres of gas.
Putin Okays Loading Start at Yamal LNG
President Vladimir Putin on Friday launched the first loading of liquefied natural gas at the Novatek-led Yamal LNG project in the Arctic, which will further expand Russia's global energy reach. The Yamal project, which required investments of $27 billion, will allow Russia to fulfil a plan to double its share of the global LNG market by 2020 from around 4 percent now. The LNG was loaded onto the ice class tanker "Christophe de Margerie", named after the former head of France's energy major Total, who died in a plane crash in Moscow in 2014.
Statoil to Step Up Offshore Norway Exploration
Norway's Statoil will ramp up its search for oil and gas deposits on the Norwegian continental shelf next year, the company said on Friday. Oil companies are stepping up efforts to find more oil and gas offshore after cutting exploration budgets following the oil price drop since 2014, meaning more work for owners of drilling rigs, such as Transocean or Seadrill. Majority-state owned Statoil is emerging from the downturn as one of the most active offshore explorers. "We are looking at drilling 25 to 30 wells in Norway in 2018.
Brazil Extends Oil Industry 'Perks' Through 2040
Brazil on Friday extended through 2040 a preferential customs regime for the oil and gas industry called Repetro, which was set to expire in 2019, as it seeks to entice investment ahead of key auctions later this year. The move was accompanied by another decree creating a special tax regime to bolster local suppliers for the oil and gas sector. The Repetro system, which was put in place in 2009, suspends the payment of federal taxes on imports and exports of goods used in research and mining of oil and natural gas deposits.
Activists Protest near Oil Rig in Norway's Arctic Sea Area
Environmental activists protested on Friday near an offshore rig contracted by Statoil in the remote Norwegian Arctic, where the firm is looking for oil and gas deposits. The Nordic country wants to open up northern areas for exploration to offset declining production in the south. Oil and gas production is Norway's leading industry, accounting for 20 percent of its economy. From the Greenpeace Arctic Sunrise ship, 11 campaigners launched inflatable boats carrying banners opposing Statoil's Songa Enabler oil rig…
Premier Oil: North Sea Exploration No Longer Attractive
Shares at three-month high after Zama oil discovery. Premier Oil, which produces more than half its oil in the British North Sea, said on Thursday that exploring for resources in the basin was no longer attractive, a day after it announced a major discovery off Mexico. The company's shares have surged to a three-month high after it found potentially more than a billion barrels of oil in the Mexican Zama field, which Wood Mackenzie analysts called one of the 20 largest shallow-water finds in two decades.
UK Mulls Revisiting Oldest North Sea Blocks
Britain wants oil and gas drillers to recover pockets of gas that are more difficult to reach in a part of the North Sea where drilling for fossil fuels started over 50 years ago. Britain's oil regulator, the Oil and Gas Authority (OGA), said on Thursday that some 3.8 trillion cubic feet (tcf) of tight gas remain in the southern North Sea, one of the world's oldest offshore gas extraction areas that has produced more than 40 tcf. Drilling activity in Britain's North Sea has been at a record low for two years as weak oil prices make projects less attractive.
Russia Ramping Up Arctic LNG Production
Russia may produce more than 70 million tonnes of liquefied natural gas (LNG) per year in its remote Arctic regions, the head of gas producer Novatek said on Wednesday. "The Gydan and Yamal peninsulas have a vast resource base that allows the production of over 70 million tonnes (of LNG); it is comparable to LNG production in Qatar", Leonid Mikhelson, the head and co-owner of Novatek told a conference. Novatek, which was put on the list of Russian companies sanctioned by the West over Moscow's role in the Ukraine crisis…
US, Mexico, Cuba to sign GoM "Doughnut Hole" Deal
The United States, Mexico and Cuba are ready to sign an agreement determining the territorial water limits in the Eastern Gap of the Gulf of Mexico, three diplomatic officials familiar with the matter said on Tuesday. The talks on the agreement concluded at the end of 2016 after trilateral discussions began mid-last year, and the plan is to sign the accord before U.S. President-elect Donald Trump takes office on Jan. 20, the three officials said. One of the three, who were speaking on condition of anonymity, said the deal could be signed on Wednesday.