Saturday, January 19, 2019

Oil News

Bahrain's First LNG Terminal Ready for Business

Bahrain expected to start LNG imports early this year; FSU on 20-year time charter to Bahrain LNG arrives in the GulfBahrain's first liquefied natural gas (LNG) floating unit arrived in the Gulf this week as the country gets ready for its maiden imports of the super-chilled fuel this year, data from Refinitiv Eikon showed.Bahrain Spirit, a floating storage unit (FSU) with a capacity of about 173,000 cubic meters, is currently anchored in Fujairah after docking in the United Arab Emirates region on Jan.

Government Shutdown: Atlantic Seismic Permitting Blocked by Judge

© DedMityay/AdobeStock

A federal court judge on Friday ruled that the federal government cannot process seismic testing permits for offshore oil drilling during the ongoing government shutdown, dealing a blow Trump administration's energy agenda.Judge Richard Gergel of the U.S. District Court in South Carolina issued the decision in response to a motion filed by a range of conservation and business groups and coastal cities opposed to the adminstration's efforts to expand U.S.

Oil Climbs as OPEC Output Drop Eases Concerns About Glut

© Richard / Adobe Stock

Oil prices rose on Friday after an OPEC report showed its production fell sharply last month, easing some concerns about prolonged oversupply.Brent crude was up 48 cents, or 0.78 percent, at $61.66 a barrel at 1450 GMT. Brent has risen around 2 percent this week, its third straight week of gains.U.S. West Texas Intermediate (WTI) crude futures were up 33 cents, or 0.63 percent, at $52.40 per barrel.The Organization of the…

Schlumberger to Manage Equinor Project in Brazil

(Photo: Equinor)

Schlumberger signed a contract worth over $200 million with oil major Equinor to manage an offshore rig as part of a drilling program in Brazil's offshore Campos oil basin, a person familiar with the matter said on Thursday.The deal would be the first time an oil services company replaces a drilling-rig contractor, the person said, adding pressure to offshore drillers still reeling from an industry-wide contraction."Schlumberger will provide the full scope of well construction services…

Oil Refining Capacity to Grow at Record Pace

© VanderWolf Images / Adobe Stock

Global oil refining capacity is set to increase at its fastest pace on record this year, possibly boosting stocks of products such as diesel, gasoline and marine fuel, the International Energy Agency said on Friday.Oil refining capacity will rise by 2.6 million barrels per day (bpd) and demand for refined products by around 1.1 million bpd, the IEA said in a monthly report.It was not clear yet what that meant for margins…

Schlumberger Sees International Growth in 2019

Boosting technology from Schlumberger's OneSubsea (File image: Schlumberger)

Schlumberger NV on Friday reported quarterly revenue that topped estimates and forecast single-digit growth in international markets this year even as crude prices have tumbled roughly 30 percent since October.With the drop in oil prices many producers were evaluating spending budgets for 2019, stoking concerns that a slowdown in activity would hurt oilfield service companies that have struggled to boost prices since the 2014 downturn.Schlumberger…

Norway Awards 15 Exploration Licences to Lundin Petroleum

Map: Lundin Petroleum AB

Europe’s independent oil and gas exploration and production company Lundin Petroleum announced that its wholly owned subsidiary Lundin Norway has been awarded a total of 15 exploration licence interests in the 2018 Norwegian licensing round (Awards in Predefined Areas, APA).The record-high award includes 8 licences in the North Sea, 2 licences in the Norwegian Sea and 5 licences in the southern Barents Sea. 9 of the awarded…

Woodside Boosts Spending for Next Leg of Growth

(Photo: Woodside)

Australia's Woodside Petroleum Ltd on Thursday flagged higher-than-expected investment spending for 2019 as it steps up early work on the two big natural gas developments that will drive its growth in the next decade.Australia's largest independent gas and oil producer plans to spend between $1.6 billion and $1.7 billion in 2019 on projects, significantly higher than an estimate from UBS of $1.2 billion.At the same time it…

Aker BP Plans Output, Dividend Hike

Valhall field (Photo: Kjetil Alsvik / Aker BP)

Norway's Aker BP will boost dividend payments between now and 2023 and step up investment in developing offshore oil and gas fields next year, the independent oil company said on Thursday.The result of a 2016 merger between the Norwegian operations of BP and the Det norske oil firm owned by Norwegian billionaire Kjell Inge Roekke, Aker BP has become the second largest licence holder on the Norwegian continental shelf.While Aker BP expects its output to be broadly flat year-on- year in 2019 at between 155…

Shell Appoints Sawan as Upstream Boss

Wael Sawan (Photo: Shell)

Royal Dutch Shell has appointed Wael Sawan to head its oil and gas production division, replacing Andy Brown who will step down after 35 years at the Anglo-Dutch company.Sawan, 44, a Canadian citizen of Lebanese origin, currently heads Shell's deepwater operations, one of the company's cash growth engines in recent years. He joined Shell in 1997.Brown, 56, will remain a member of Shell's executive committee until his departure on Sept.

Novatek Production Rose 6.9% in 2018

Pic: Novatek

Russia's largest independent natural gas producer Novatek said that total hydrocarbon production during 2018 increased by 6.9%, and had increased sales of gas."In 2018, Novatek’s hydrocarbon production totaled 548.4 million barrels of oil equivalent (boe), including 68.81 billion cubic meters (bcm) of natural gas and 11,800 thousand tons of liquids (gas condensate and crude oil), resulting in an increase in total hydrocarbons produced by 35.1 million boe…

Seacor Marine Acquires Three Cosco PSVs

Image: DNV GL

The offshore marine support vessels operator Seacor Marine Holdings announced it has entered into definitive agreements to acquire three platform supply vessels (PSVs) from Cosco Shipping Heavy Industry, an affiliate of Cosco Shipping Group, the world’s largest ship owner.Aggregate consideration for the vessels will be approximately $46 million, of which 30% will be paid in cash and 70% will be paid under a four-year deferred…

Offshore Service Market to Outspace Onshore Shale

Graph: Rystad Energy

Spending on the offshore service sector will outpace spending on the onshore shale sector this year, said Rystad Energy.According to Rystad's Oilfield Service Research report, service companies exposed to the offshore subsea market and the maintenance, modifications and operations (MMO) sector are set to benefit from this trend reversal.At current oil price levels, spending on land rigs, fracking and other services for the shale industry is likely to stay essentially flat in 2019.

Adnoc Fleet Slashes Carbon Emission 23%

Image: Adnoc

Adnoc Logistics & Services (Adnoc   L&S) announced that it has reduced fuel consumption and carbon emissions by 23% across a fleet of 27 vessels.The marine and logistics subsidiary of the Abu Dhabi National Oil Company (Adnoc ) said in a press release that the ‘Al Daffah Energy Efficiency Project’ is one of many ongoing initiatives by the shipping and logistics giant to deliver greater operational efficiency and a more competitive…

U.S. Crude Stockpiles Fall More Than Expected - EIA

U.S. crude oil stocks fell more than expected last week, while gasoline and distillate inventories rose more than forecasts, the Energy Information Administration said on Wednesday.Crude inventories fell by 2.7 million barrels in week to Jan. 11, compared with analysts' expectations for a decrease of 1.3 million barrels.Crude stocks at the Cushing, Oklahoma, delivery hub fell by 743,000 barrels, EIA said.Refinery crude runs fell by 343,000 barrels per day, EIA data showed.

PetroChina Boosts European LNG Activity with Yamal Cargoes

Photo courtesy of PetroChina

China's top oil and gas company PetroChina is selling spot liquefied natural gas (LNG) cargoes on the European market from Russia's Yamal plant, adding to a flood of volumes to the continent amid subdued Asian demand, trade sources said.PetroChina's increased presence in Europe is an example of how Asian energy companies are expanding their role as LNG traders, engaging in LNG transactions globally.The early start-up of Yamal LNG's second and third trains…

Petrobras 2018 Production Shy of Target

(Photo: Petrobras)

Petroleo Brasileiro produced an average of 2.03 million barrels per day (bpd) in Brazil last year, the oil company said in a statement on Tuesday, just below the company's target of 2.1 million bpd.Petrobras' total production of oil and natural gas was 2.63 million barrels of oil equivalent per day (boe/d), with 101,000 boe/d produced abroad, it said.

CNOOC Storing LNG Offshore

© Juan Calcedo / Adobe Stock

China's state-owned CNOOC is temporarily storing liquefied natural gas (LNG) in a tanker off South Korea as a warmer than usual winter cuts expected spot demand for the fuel, industry sources said on Wednesday.China faced a severe winter gas shortage last year after switching millions of households to natural gas from coal for heating, prompting Chinese companies this winter to secure supply well ahead of time, they said.However…

Woodside Awards Scarborough FEED Contracts

(Photo: Woodside)

Australian independent oil and gas company Woodside said Wednesday it has awarded four contracts for front-end engineering design (FEED) activities for the proposed US$11 billion Scarborough Project offshore Western Australia.Each contract was awarded and will be funded initially by Woodside on a 100% basis, without financial support from 25% joint venture partner BHP.McDermott Australia Pty Ltd has been awarded a contract to undertake engineering studies for the floating production unit…

Tullow to Boost 2019 Output

(Photo: Tullow Oil)

Africa-focused Tullow Oil's production is set to grow to between 94,000 and 102,000 barrel of oil equivalent per day (boed) this year, it said in a trading update on Wednesday, from 90,000 boed last year as it increases output in Ghana.Free cash flow stood at $400 million. It had previously said that with oil prices of $70 a barrel, its cash flow for 2018 could reach as much as $700 million. Crude oil slumped by more than…