Wednesday, August 15, 2018

Oil News

China Move to Drop Crude off Tariff List a Relief for Sinopec

Photo: Sinopec

China's decision to remove crude oil from its latest tariff list in an escalating trade war with the United States was a relief to state oil firms prompted by a strong lobbying effort by main importer the Sinopec Group, Beijing-based oil sources said.Dropping crude oil from the final tariff list on $16 billion in U.S. goods announced late on Wednesday underscores the growing importance of the United States as a key global producer and critical alternative supply source for top importer China…

Oil Falls on Weaker Economic Outlook, U.S. Stocks Rise

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A weaker global economic growth outlook and a report of rising U.S. crude inventories weighed on oil prices on Wednesday, even as U.S. sanctions threatened to curb Iranian crude supplies.Benchmark Brent crude oil was down 60 cents a barrel at $71.86 by 1325 GMT. U.S. light crude fell $1.02 a barrel to a low of $66.02, before recovering slightly to around $66.30, down 74 cents."Oil bears are taking their turn in the driving seat…

Equinor says Effort to Restart Mongstad Refinery Continues

Photo: Equinor

Work to restart Norway's Mongstad oil refinery will continue throughout the evening on Wednesday, following a power outage that shut the facility earlier in the day, operator Equinor said.The unexpected outage happened during routine maintenance on the site's power supply, triggering an evacuation of most workers.Reporting by Nerijus Adomaitis

U.S. Crude Oil Stockpiles Rise Unexpectedly in Week - EIA

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U.S. crude stocks rose unexpectedly last week, while gasoline stocks decreased and distillate inventories grew, the Energy Information Administration said on Wednesday.Crude inventories rose by 6.8 million barrels in the last week, compared with analysts' expectations for an decrease of 2.5 million barrels.Crude stocks at the Cushing, Oklahoma, delivery hub rose by 1.64 million barrels, EIA said.Refinery crude runs rose by 383,000 barrels per day, EIA data showed.

Diamondback Energy Shares Drop on $9.2 billion Deal for Shale Rival

Diamondback Energy Inc shares fell 10 percent early on Wednesday following the U.S. oil and gas producer's all-stock, $9.2 billion deal for shale rival Energen Corp.On Tuesday, Diamondback agreed to pay about $84.95 per share for Energen, a 16 percent premium to the Birmingham, Alabama, company's close on Tuesday.. Energen shares rose 3.8 percent to $75.95 on Wednesday morning trade on the New York Stock Exchange.Diamondback was down 10.4 percent at $119.83 per share on the NYSE.Activist investor Corvex Management LP…

Oil Companies Make Few Bids in US Offshore Lease Auction

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Oil companies bid on less than 1 percent of the parcels offered in a sweeping U.S. auction of Gulf of Mexico exploration leases on Wednesday, showing tepid interest in the region for the second time this year.Oil giant Exxon Mobil Corp was awarded 25 blocks, the largest of any company, followed by BP Plc with 19 high bids and Hess Corp and Equinor, which each had 16.Smaller companies, including Talos Energy Offshore, Houston Energy and W&T Offshore were among the top ten high bidders. In total, 23 companies bid in the U.S.

Signs of Recovery in the US Gulf of Mexico

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Today's U.S. auction of Gulf of Mexico exploration leases drew tepid response from oil companies, but marked notable progress for an industry still in a state of recovery.“While not a barn burner, Lease Sale 251 tops the previous Gulf sale in terms of increased participation, increased competition for offerings, and bid amounts,” said Randall Luthi, president of the National Ocean Industries Association (NOIA). “In addition…

Gazpromneft Issues Tender for Novy Port Crude Oil Loading in Sept 2018

Gazpromneft issued a spot tender on Friday to sell a cargo of light sweet Novy Port crude oil loading from Murmansk port in September, traders said.The producer is offering 100,000 tonnes of Novy Port crude oil loading from the RPK-Nord offshore terminal in the Murmansk port area on September 16-29, subject to weather conditions, traders added.Tender participants are invited to offer premiums to dated Brent quotes on a CIF Rotterdam basis.The tender closes on August 14 at 1200 London time (1100 GMT).

Calm in Oil Markets Could be Short-lived -IEA

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Oil markets have entered a brief period of calm but a storm might be looming later this year when new U.S.

US drillers add most oil rigs since May

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U.S. energy companies this week added the most oil rigs since May as drillers follow though on plans to spend more on exploration and production in anticipation of higher crude prices in 2018 than recent years.Drillers added 10 oil rigs in the week to Aug. 10, bringing the total count to 869, the highest level since March 2015, General Electric Co's Baker Hughes energy services firm said in its closely followed report on Friday.That rig count increase occurred desite U.S.

Venezuela's Crude Sales to U.S. Fall in July

Venezuela's crude exports to the United States declined to 494,400 barrels per day (bpd) in July after rising the prior three months, showing the impact of asset seizures against state-run oil firm PDVSA, according to Thomson Reuters data.July was the first month crude exports fell below 500,000 bpd since the months of January through March.U.S. oil producer ConocoPhillips in May began seizing PDVSA's overseas assets in an attempt to collect on a $2 billion arbitration award.

Sovcomflot's Pskov Loads First Cargo from Yamal LNG

Image: Sovcomflot Group

The liquefied natural gas (LNG) carrier Pskov completed loading at the Port of Sabetta (YNAD), with the first cargo of LNG produced from the second high-tech production line at the Yamal LNG plant.August 08 marked the launch of the second production train at Yamal LNG, which happened six months ahead of schedule.Pskov is a state-of-the-art Atlanticmax LNG carrier with a cargo capacity of 170,000 cubic metres. She was built to order for Sovcomflot Group in 2014…

BP Offloads Last Two Stranded Oil Cargoes in China

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Oil major BP on Tuesday offloaded about 1 million barrels of Angolan crude from supertanker Olympic Light to an independent Chinese refiner after holding the oil at sea for about three months, people with knowledge of the discharge said on Wednesday.The oil had been aboard one of four supertankers held up or delayed off China's east coast near Shandong since as long ago as April, unable to discharge BP's oil due to slowing buying from private refiners in the world's second-biggest economy.All four have delayed cargoes…

Woodside Petroleum Half-year Profit Rises

(Photo: Woodside Energy)

Australia's Woodside Petroleum Ltd said on Wednesday that its first-half net profit rose 6 percent and it raised its 2018 production outlook after strong performances from its Wheatstone and Pluto LNG projects.For the 2018 fiscal year, Woodside said it now expects fiscal 2018 production between to 87 mmboe to 91 mmboe from an earlier outlook of 85 mmboe to 90 mmboe.Production costs per barrel of oil equivalent across all operating assets for 2018 are expected to be between $5.50 and $5.80…

Aker Solutions to Supply Umbilicals for Liuhua FPSO

(Photo: Aker Solutions)

Aker Solutions said it has been contracted to deliver power umbilical systems to China National Offshore Oil Corporation's (CNOOC) Liuhua oil fields in the South China Sea, off Hong Kong.The order, which is said to be worth more than NOK 350 million ($36.6 million), was booked in the third quarter of 2018. The work scope includes more than 35 kilometers of dynamic and static power umbilicals for the Liuhua 16-2, 20-2 and 21-2 fields…

Oil Slips as Focus Shifts to Demand in Coming Months

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Oil prices edged lower on Monday as troubled emerging markets and trade tensions dented the outlook for fuel demand, though U.S. sanctions against Iran could mean tighter supply ahead. Brent crude futures fell 14 cents to $72.67 a barrel by 11:18 a.m. EDT (1518 GMT). U.S. West Texas Intermediate (WTI) crude fell 29 cents to $67.34 a barrel.Futures have struggled to find a footing since Wednesday, after they fell about 3 percent…

Indian Oil Sees No Impact from U.S. Sanctions on Refinery JV Investment with Iran

Indian Oil Corp.'s planned $5.10 billion expansion of its unit Chennai Petroleum , partly owned by Iran, is not expected to be hit by U.S. sanctions against Tehran, Chairman Sanjiv Singh said on Monday.Chennai Petroleum plans to invest up to 356.98 billion rupees to replace its 20,000 barrel per day (bpd) Nagapattinam refinery in Southern Tamil Nadu state with a 180,000 bpd plant, it informed stock exchanges last year.Naftiran Intertrade…

GEA Presents New Marine Separator

Image: GEA Group Aktiengesellschaft

GEA presents innovative solutions that combine environmental protection with economy - The new GEA marine Separator increases efficiency on board.The new GEA separator for marine applications massively changes the working day on board. After a service interval of 16,000 operating hours, the compact plug-and-play exchange unit is replaced. No unplanned maintenance is required.The maintenance effort on board is reduced by up to 90% with simultaneous lower maintenance costs and maximum machine availability.

Mexico's Obrador Pledges More Than $11 Bln for Refineries

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Mexican President-elect Andres Manuel Lopez Obrador said on Monday his administration will invest more than $11 billion to boost refining capacity in order to curb growing fuel imports.Lopez Obrador, who will take office on Dec. 1, told reporters his government plans to invest $2.6 billion to modernize existing domestic refineries owned and operated by national oil company Pemex, and spend another $8.4 billion to build a…

Colombia's Ecopetrol to Invest Up to $3.5 bln in 2018

Colombia's state-run oil company Ecopetrol said on Wednesday it will invest $3 billion to $3.5 billion during 2018, less than it had previously said it would spend.Ecopetrol originally planned to spend $3.5 billion to $4 billion in investment in 2018, mostly in exploration and production. First quarter investment was stymied by protests which led to the temporary closure of some fields and laws that restrict public company contracting during elections. The company spent $1 billion in investment during the first half.