Thursday, January 23, 2020

Oil Firms News

Majors Press Mexico to Resume Oil Auctions

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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…

Oil Companies Swap Stakes in Mexico

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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…

Big Oil Stuns Brazil in Back-to-back Auction Flops

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Major global oil firms snubbed a second Brazilian oil auction in a row on Thursday, passing up offshore blocks and forcing officials to reconsider a bidding system that gives a privileged position to state-run Petroleo Brasileiro SA.The only block awarded in Thursday's bidding went to Petrobras, as the Brazilian state-run firm is known, and Chinese state firm CNODC, a unit of China National Petroleum Corp, which offered the minimum bid.

India, S. Arabia in New Petro Relationship

Indian Prime Minister, Narendra Modi meeting the King Salman bin Abdulaziz Al Saud of Saudi Arabia, in Riyadh, Saudi Arabia on October 29, 2019. Photo: PIB

India and Saudi Arabia have decided to expand its ‘energy relationship’ into next phase to include Saudi partnership in building additional crude oil storage reserves in India, a new refinery on the west coast of India and investment in retail sector in petroleum.Saudi Arabia is its second-biggest supplier of crude oil after Iraq. It sold 40.33 million tonnes of crude oil to India in 2018-19 fiscal…

Norway Sovereign Fund to Divest E&P Firms

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Norway's $1.1 trillion sovereign fund will divest companies solely dedicated to oil and gas exploration and production in a bid to shield itself from a long-term fall in oil prices, the finance ministry said late on Tuesday.The move will partly shift the world's largest sovereign wealth fund away from oil and gas, as called for by the central bank, which had…

Equinor, SSE Win Contract for Largest Offshore Wind Project

(Image: Equinor)

Equinor and Britain's SSE have won a tender to build three wind farms off Britain, which the Norwegian firm said together will form the world's largest such development.Like other European oil firms, Equinor is developing its renewables business and is focused on offshore wind given its experience as an offshore oil platform operator."The successful bids for…

Mexico's Pemex Narrows Loss

Mexican state oil company Pemex reported a narrower loss of 52.7 billion pesos ($2.7 billion) in the second quarter on Friday, as the heavily indebted firm faces the prospect of a fresh downgrade from credit rating agencies critical of its direction.The loss was nearly 70% lower than what the company, formally known as Petroleos Mexicanos, reported in the second quarter last year…

Vattenfall May Raise Offshore Wind Target

(Photo: Vattenfall)

Sweden's Vattenfall may raise its target for installing offshore wind power generation in Europe beyond the 11,000 megawatts (MW) it now plans to have in place by 2025, an executive said.Gunnar Groebler, the Swedish power firm's board member in charge of wind, had announced the 11,000 MW target in January, after installed capacity reached 3,000 MW at the end…

Only 10% of Shale Firms Reports Positive Cash Flow

Graph: Rystad Energy

Only four, out of the financial performance of 40 dedicated US shale oil firms under study, reported a positive cash flow balance in the first quarter of 2019, bringing down the share of companies with a positive cash flow balance from the recent norm of around 20% to just 10%.Nine in ten US shale oil companies are burning cash, according to Rystad Energy.Total…

Russia Signals OPEC Should Raise Output

(Photo: Lukoil)

One of the key Russian officials to foster a supply pact with OPEC, Kirill Dmitriev, signaled on Monday Russia wanted to raise oil output when it meets with OPEC in June because of improving market conditions and falling stockpiles.Dmitriev, head of the Russian state's direct investment fund, was the first Russian official to predict a deal with OPEC in 2016 and since then became a key defender of the pact despite pressure from domestic oil firms

Oil Majors Rush to Dominate US Shale

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In New Mexico's Chihuahuan Desert, Exxon Mobil Corp is building a massive shale oil project that its executives boast will allow it to ride out the industry's notorious boom-and-bust cycles.Workers at its Remuda lease near Carlsbad - part of a staff of 5,000 spread across New Mexico and Texas - are drilling wells, operating fleets of hydraulic pumps and digging…

Norway Oil Exploration Refunds Are Not State Aid -ESA

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Norway's regulations allowing oil and gas companies to claim refunds for exploration spending do not constitute state aid, the European Free Trade Association Surveillance Authority (ESA) said on Wednesday."Having scrutinized it on the basis of a comprehensive complaint, ESA is satisfied that this tax rule does not entail state aid," ESA President Bente Angell-Hansen said in an emailed statement.The case was brought to ESA by Bellona…

Large Oil Firms Invest in Shale

Image: Rystad Energy

Oil majors are readying themselves for the energy transition by investing in shale and waiting for renewable technology to be economical, said Rystad Energy, energy research and business intelligence company.A recent review of 2019 capital budgets reveals that oil majors are the only group to increase shale expenditure from 2018 to 2019.Big companies such as…

Norway Production Costs Rising

(Photo: Equinor)

Petroleum production costs on the Norwegian continental shelf rose in 2018 after falling for three consecutive years, state-owned oil firm Petoro said on Thursday.Cost cuts were high on oil firms' agenda following a sharp fall in crude prices in 2014, making it possible to develop discoveries that had previously been considered too expensive, including Equinor's Arctic Johan Castberg field.Oil prices have partly recovered however…

Dutch Prosecutors Target Shell Over Nigeria Oil Deal

(Photo: Shell)

Dutch prosecutors are preparing criminal charges against Royal Dutch Shell over the $1.3 billion acquisition of an Nigerian offshore oilfield, ramping up pressure on the energy firm that already faces bribery charges in Italy over the case.Within hours of Friday's announcement on the Nigerian case, the Dutch prosecution said the oil and gas giant would also be…

Maersk Drilling Mulls Listing in Recovering Market

File Image: CREDIT Maersk Drilling

Drilling rig contractor Maersk Drilling, which will soon list on the Copenhagen stock exchange, said the offshore drilling market is improving as oil firms generate more cash and look to boost reserves.A fall in oil prices in 2014 prompted a severe downturn in the industry as oil companies cancelled or postponed exploration plans, reducing demand for offshore…

Brent Hits 2019 High on U.S.-China trade Hopes

Credit: AdobeStock / © Scanrail

U.S. crude stocks rise to 454.5 mln barrels as crude exports from U.S. hit record 3.6 mln bpd.Oil prices rose on Friday, supported by OPEC's ongoing supply cuts and hopes that Washington and Beijing may soon end their trade dispute.International Brent crude futures hit a new 2019 high of $67.60 a barrel, up 53 cents from Thursday's close.Further gains were tempered by U.S.

Shell Shrugs off Brexit, Eyes UK Offshore Wind

File image / credit Siemens

Shell plans to enter Britain’s offshore wind market by acquiring seabed leases or taking stakes in existing projects, despite the country's impending departure from the European Union, the head of the company's New Energies division said.Oil firms are increasingly building portfolios of clean energy projects to satisfy investor demands that they reduce their carbon footprint.

Norway Oil Firms Lower 2019 CapEx Forecast

A typical offshore Equinor operation. CREDIT: Equinor

Oil and gas companies operating in Norway have lowered their investment forecasts for 2019 to 172.7 billion crowns ($20.06 billion) from 175.3 billion crowns seen in November, a survey by the country's statistics agency (SSB) showed on Thursday.In 2020, investments are expected to fall to 158.5 billion crowns according to initial forecasts, SSB said.Norway's…

Norway Awards Record Number of Exploration Blocks

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Norway awarded a record 83 blocks to explore for petroleum resources in mature areas of the Norwegian continental shelf, in a sign of continuing interest from oil companies in the country's oil sector, the energy ministry said on Tuesday.A lack of large discoveries on the shelf has prompted concerns that Norway's top industry, which employs about 170,000 people directly and indirectly…