Wednesday, October 23, 2019

US Gives Chevron More Time in Venezuela

© Phaitoon Sutunyawatchai / Adobe Stock

The U.S. Treasury Department on Monday renewed a license allowing Chevron, the last U.S. operating energy company in Venezuela, to continue drilling in the country for another three months through Jan. 22.The license has been a subject of intense debate within the Trump administration as it pursues a campaign to oust socialist President Nicolas Maduro. Its renewal represented a win by some in the administration, such as Secretary of State Mike Pompeo, who see keeping a U.S. company in Venezuela as an asset that could lead to…

Offshore Wind & Politics: Bernie Sanders

US Senator Bernie Sanders.  Credit: US Senate website.

Offshore wind is hot, and so too is the race to win the Democratic presidential candidate nomination for the 2020 U.S. presidential election. In its October 2019 edition of Marine Technology Reporter, government reporter Tom Ewing takes a closer look at each of the Dem candidates to give insight and overview on their policies and their potential impact on the offshore wind industry.Ten candidates in ten days: Today we take a closer look at Bernie Sanders:Opening statement:“The climate crisis is not only the single greatest challenge facing our country…

19 Fields in Production at Norwegian Sea

Image: Norwegian Petroleum Directorate

Norwegian Sea area, which is twice the size of the North Sea, has 19 fields in production and numerous discoveries are being developed and around 350 exploration wells have been drilled over the past 40 years, said Norwegian Petroleum Directorate (NPD).In many ways, the Norwegian Sea is a miniature version of the Norwegian shelf. It consists of a deep seabed with surrounding continental shelves. "The geology in the Norwegian Sea is the reason why we believed early on that there might be oil and gas there," said NPD.“We want to generate maximum value from the resources.

Halliburton Promises Cost Cuts

© V.Kreinacke / Adobe Stock

Halliburton Co on Monday promised more cost cuts after reporting a bigger-than-expected drop in quarterly revenue as the oilfield services looks to counter weak demand from North American shale producers, sending its shares up about 7%.The biggest hydraulic fracking services provider, which earlier this month cut 650 jobs in North America, said it would take steps over the next few quarters that will lead to $300 million in annualized cost savings.Oilfield service providers are struggling with reduced spending by oil and gas…

Schlumberger Profit Beats Estimates

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Schlumberger NV beat Wall Street estimates for profit on Friday, in the first quarter under Olivier Le Peuch, as higher international drilling activity boosted demand for its equipment and services and helped counter weakness in North America.The international business has been a bright spot for the world's largest oilfield services provider since last year as investor pressure to improve returns has forced North American oil and gas producers to rein in drilling new wells in a volatile price environment.Le Peuch, who took charge in July…

Shell Aims to Operate Egypt Concessions in 2020

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Royal Dutch Shell is aiming to start operating in its concession areas in Egypt in the second half of 2020, a senior executive said.Shell won three oil and two gas concessions in Egypt in February.Eni, BP and ExxonMobil also won some of a total of 12 tenders as Egypt looks to sustain an investment upswing spurred by major discoveries.Shell has also applied to take part in a bidding round in Egypt for oil and gas drilling in the Red Sea, Gerald Schotman, executive vice president upstream JVs at Shell, told Reuters.The company…

Drilling Activity Buoyant in Norway

Graph: Rystad Energy

The number of wells drilled could challenge all-time high levels by the end of the year in the Norwegian Continental Shelf (NCS), while global offshore exploration activity has been flat year-to-date.Rystad Energy expects that this high activity level will be sustained through the winter season and into 2020. Around 30 to 50 exploration wells will be drilled per year towards 2023.“Our preliminary analysis shows that a total of 130 wells are likely to be drilled this year – a 16% increase compared to 2018. The increased activity this year relates primarily to an uptick in exploration drilling…

Wood Names Cox as Americas CEO

Stephanie Cox is the new CEO of Wood’s Americas business (Photo: Wood)

Energy services company Wood said Stephanie Cox  will take over as CEO of its Americas business, succeeding Andrew Stewart who has been appointed executive president of strategy and development for the global business.Responsible for the firm’s $4 billion asset solutions business which employs around 20,000 people working across the US, Canada, Trinidad, Brazil, Mexico and Guyana, Cox will be based in Houston and report directly to Wood’s Chief Executive, Robin Watson.Cox joins Wood following a 28-year tenure with Schlumberger, most recently serving as President of the company’s North America land drilling business.

ProPetro Cuts Almost 150 Workers

AdobeStock / © Diter

ProPetro Holding Corp this month cut about 150 workers, people familiar with the matter said on Monday, the latest sign of growing trouble in the oilfield services sector as U.S. shale producers reduce drilling.The job cuts reflect slowing shale activity due to weak prices for oil and gas, and producers exhausting their spending budgets for the year, one of the people said.Midland, Texas-based ProPetro said last week it would cut the number of hydraulic fracturing fleets operated this quarter by as much as 28%, far surpassing analysts' expectations.

Activists Climb Shell North Sea Platform

Greenpeace activists from the Netherlands, Germany and Denmark boarded two oil platforms in Shell’s Brent field (© Marten van Dijl / Greenpeace)

Greenpeace activists boarded two Royal Dutch Shell oil platforms in the British North Sea on Monday in protest against plans to leave parts of the giant structures in place after production shuts down.Pictures provided by Greenpeace show two people in yellow hats scaling one of giant two large, rusty structures and unfurling a banner reading "Clean up your mess, Shell!"Shell confirmed that protesters boarded the Brent Alpha platform and the Brent Bravo concrete legs.Shell is in the process of dismantling the 40-year-old Brent field east of the Shetland islands, in what is known as decommissioning, as its oil and gas reserves dwindle after producing mor

Chestnut Field Extended Up to Three Years

Hummingbird Spirit FPSO (Photo: Teekay)

Partners Spirit Energy and Dana Petroleum will invest £140 million ($177 million) to extend the life of the Chestnut field in the UK North Sea by as much as three years.The companies announced on Friday that they reached a deal with Teekay to extend the employment of the Hummingbird Spirit floating production, storage and offloading unit (FPSO) until March 2023 as the partners plan to drill a fourth production well by the first quarter of 2020.Drilling at Chestnut will kick off before the end of the year and follows a similar…

Eni Committed to Cyprus Exploration

(Photo: Eni)

Italian oil major Eni is committed to the exploration of Cyprus' Exclusive Economic Zone and its contractual engagements with the country, its chief executive said on Friday.Turkey said last week it had sent an oil-and-gas drilling ship to waters off southern Cyprus where Greek Cypriot authorities have already awarded hydrocarbon exploration rights to Italian and French companies.In reply to a Reuters request for comment on Eni's position, Chief Executive Claudio Descalzi added the group was planning a joint exploration campaign in the first half of 2020 together with its French partner Total.(Reporting by Stephen Jewkes, writing by Giulio Piovaccari)

Global Energy Takes Over Nigg Oil Terminal

Photo by Global Energy (Group) Limited

Global Energy Group has reached an agreement with Repsol Sinopec Resources UK to take over the long-term operation of the Nigg Oil Terminal jetty under a new lease with Crown Estates Scotland.Since cessation of production from the Beatrice oil field, Repsol Sinopec has been exploring reuse options for the facilities at Nigg Oil Terminal, including the jetty.Under the agreed deal, the jetty will be operated as an extension to the Port of Nigg which has already established itself as a leading deep-water port servicing oil and gas…

Digitalization: Oil Industry Could Save up to $100Bln

Graph: Rystad Energy

The global oil and gas industry can save as much as $100 billion through automation and digitalization in the 2020s, energy research firm Rystad Energy said."As much as $100 billion can be eliminated from E&P upstream budgets through automation and digitalization initiatives in the 2020s. Service companies are reinventing themselves to help operators unlock these savings," said the study by  Rystad.In 2018, $1 trillion was spent on operational expenditures, wells, facilities and subsea capital expenditures across more than 3,000 companies in the upstream space.

Cost Estimates at Equinor Norway Fields Goes Up

Image: Equinor

The cost of developing two major Norwegian oil and gas fields has increased due to the complexity of the projects, with the start of production delayed for one of them.The Ministry of Petroleum and Energy reports on the status of major projects that are currently undergoing development or have recently started operation.Thirteen of Equinor’s projects are on this list. Eight of the projects have reduced costs since submitting their plans for development and operation, one project remains unchanged, while four projects have reported higher costs.Two projects have seen an increase greater than 20 per cent…

Keppel, Sembcorp Reach Deal with Embattled Brazil Firm

When the Settlement Agreement is completed, Keppel O&M will have full ownership over the four uncompleted rigs to explore various options to extract the best value from the assets.  Keppel O&M is also in discussions with Magni Partners on the terms to complete the construction of the drilling rigs Urca (pictured) and Frade, which are about 92% and 70% completed respectively. (Photo: Keppel)

Singapore firms Keppel Corp and Sembcorp Marine said on Monday they had reached settlements with indebted Brazilian firm Sete Brasil over long-standing contracts to build drillships and rigs.Sete, which leased oil rigs to Brazil's state oil firm Petroleo Brasileiro SA (Petrobras), filed for bankruptcy protection in 2016 after being engulfed in a massive corruption scandal.Keppel and Sembcorp Marine are among a host of firms caught up in the wide-ranging "Car Wash" investigation.

U.S. Drillers Cut Rigs Again: Baker Hughes

File Image: AdobeStock / © mentoys

U.S. energy firms this week reduced the number of oil rigs operating for a seventh week in a row as producers follow through on plans to cut spending on new drilling this year.Drillers cut 3 oil rigs in the week to Oct. 4, bringing the total count down to 710, the lowest since May 2017, General Electric Co's Baker Hughes energy services firm said in its closely followed report on Friday.In the same week a year ago, there were 861 active rigs.The oil rig count, an early indicator of future output, has declined over a record…

PTTEP, Halliburton Ink Automation Deal

(Image: Halliburton)

PTTEP, a national petroleum exploration and production company in Thailand, selected Halliburton Landmark for joint development of new well design workflow to automate drilling and completion engineering processes across the well lifecycle, the US-based oilfield services company announced.Halliburton said the new workflow is based on PTTEP well design initiative which will be developed using Landmark Digital Well Program, an application within DecisionSpace 365, which transforms how wells are constructed and delivered by combining a digitalized planning and design process with engineering models on a single and open platform.

Schlumberger Debuts At-bit Steerable System

The NeoSteer ABSSs aim to improve horizontal well drilling performance by providing high-dogleg capability and increased rate of penetration in the curve and the lateral, (Image: Schlumberger)

Schlumberger Introduces At-Bit Steerable System for Drilling Horizontal Wells in a Single RunNeoSteer at-bit steerable system design integrates a unique cutting structure and steering mechanismsSchlumberger introduced today the NeoSteer at-bit steerable system (ABSS) at Society of Petroleum Engineers Annual Technical Conference and Exhibition (SPE ATCE). The NeoSteer ABSSs improve horizontal well drilling performance by providing high-dogleg capability and increased rate of penetration in the curve and the lateral.Developed as a fit-for-basin solution…

Halliburton Introduces Automated Drilling Telemetry Service

Quick and reliable data transmission enables faster well deliveryOilfield services company Halliburton released a new measurement while drilling (MWD) technology designed to provide quick and reliable downhole information at extended depths to deliver wells faster. This capability helps operators drill longer laterals, make improved geosteering decisions and reduce well time to maximize their asset value, the manufacturer said.The QuickPulse Automated Directional Gamma Service system combines directional, vibration and gamma ray sensors with a strong transmission signal that overcomes most downhole interference.

Huge Opportunities in Norwegian Shelf

Image: Norwegian Petroleum Directorate

Even after more than 50 years, the Norwegian shelf still holds vast opportunities, says  Norwegian Petroleum Directorate (NPD).According to NPD's  2019 resource report on fields and discoveries, more than half of the estimated remaining resources on the Norwegian shelf have already been discovered. 85 per cent are located in the fields and 15 per cent are located in discoveries that are being considered for development.There is also a potential that even more proven oil and gas could become profitable to produce by applying new technology and knowledge…

NGA in Rig Settlement Pact with Industri Energi

 Image: Norwegian Shipowners' Association

The Norwegian Shipowners' Association (NGA) reached an agreement with Industri Energi and SAFE in the Mid-Term Settlement for employees on mobile offshore units, drilling and catering on permanently placed facilities on the Norwegian Continental Shelf, after mediation at the national Mediator’s Office several hours past deadline.The result involves a general wage growth of 3,6%. A strike among under 1600 rig workers is thus prevented."For the sake of the competitive situation and jobs on the Norwegian Continental Shelf, it is essential that we have avoided conflict and feel both parties have had to give and take…

Corvus, Kawasaki Pact for Novel ESS for Offshore Vessels

Below seated: KHI Managing Executive Officer, Takeshi Ohata; and Corvus Energy CEO, Geir Bjørkeli.Standing left to right: KHI—Tatsuya Onodera, Technical Manager; Tatsuya Ohno, Technical Manager; Takenori Hino, Senior Manager; Corvus— Per Erik Schumann-Olsen, Executive Advisor; Pradeep Datar, VP Sales – Asia; Sean Puchalski, EVP Strategy & Business Planning. Photo: Corvus Energy

Kawasaki Heavy Industries (KHI) and Corvus Energy have reached a licensing agreement for a novel lithium-ion capacitor (LiC) technology developed by Corvus for KHI.The LiC-based energy storage systems (ESS) to be sold by Corvus to offshore vessels and oil rigs globally.“Corvus Energy has been an outstanding development partner for the LiC technology,” says Takeshi Ohata, Managing Executive Officer of Kawasaki Heavy Industries at their headquarters in Tokyo, Japan.“Their battery engineering experience and marine market leadership gives Corvus Energy expertise unlike any other.

Four Steps to Successful Rig Intake

© Mike Mareen / Adobe Stock

After a period of dormancy, drilling activity and rig utilization is up. Yet despite an increase in demand for rigs, there is still an oversupply. Few long-term fixtures, gaps in schedules and rigs moving between different regulatory regimes create new rig intake challenges.What does this mean for your rig intake strategy? Your preference may be to contract a hot rig, as the operational risks are significantly less when compared to contracting a rig which has been nonoperational. But are the hot rigs actually “hot”? And what happens if you can’t get a hot rig?The rig intake process can be extensive and unpredictable.

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.

Timor Resource to Drill 5 Wells in Timor-Leste

Australian privately-owned oil and gas company Timor Resources said it has commissioned Eastern Drilling to commence drilling operations in the Southeast Asian country of Timor-Leste.One of the world’s last frontiers for oil and gas, Timor-Leste's most recent drilling undertaken onshore was nearly 50 years ago in 1972, when Timor-Leste (then East Timor) was under Indonesian rule.In 2017, Timor Resources made history by securing the rights to explore and develop approximately 2,000 km2 of under-explored onshore acreage on Timor-Leste’s south coast. Timor Resources is in a joint venture with TIMORGAP, the national oil company.

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 a pivotal producer…

U.S. oil production remains near record high

© Robert Coy / Adobe Stock

U.S. crude production remained close to a record level in June but growth has slowed significantly since the end of last year in response to lower oil prices and the slowdown is set to extend into 2020.Crude output averaged 12.1 million barrels per day (bpd) in June, essentially unchanged from record levels in May and April, according to data from the U.S. Energy Information Administration (EIA) published on Thursday.Nevertheless, the shale boom is moderating in response to the decline in oil prices since the start of the fourth quarter of 2018…

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 Brent crude posting…

US Rig Count Slides

© Jim / Adobe Stock

U.S. energy firms this week reduced the number of oil rigs operating for a fourth week in a row as producers cut spending, leading to slower growth in crude output.Drillers cut five oil rigs in the week to Sept. 13, bringing the total count down to 733, the lowest since November 2017, General Electric Co's Baker Hughes energy services firm said in its closely followed report on Friday.In the same week a year ago, there were 867 active rigs.The oil rig count, an early indicator of future output, has declined over a record-tying…

OFS Sector Expected to Take a Hit

Graph: Rystad Energy

Lower oil prices will push the global oilfield services (OFS) sector into a recession in 2020 after three successive years of growth, according to Rystad Energy.In a new sector outlook update, Audun Martinsen, head of oilfield services research at Rystad Energy, forecasts a 4% decline in global oilfield service revenue if oil prices stay flat next year.“Lower oil prices call for negative growth in the service market in 2020,” says Martinsen. “For suppliers, this means that a three-year growth story will come to an end regardless of which market segment you look at.”The service market will likely achieve a 2% growth in 2019, to $647 billion.

Russia: Arctic Offshore Oil Feasible at $130/bbl

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The head of Russia's Rosnedra subsoil agency said on Tuesday that the development of the Pobeda (Victory) offshore Arctic oilfield in the Kara Sea is feasible only at oil prices of $130 to $140 per barrel, Interfax news agency reported.Rosneft, the world's top listed oil firm by output, drilled a first exploration well in 2014 in the Kara Sea, which is part of the Arctic Ocean, with a rig provided by U.S. partner Exxon Mobil Corp.Exxon Mobil has pulled out from the project due to U.S. sanctions imposed over Moscow's annexation of Ukraine's Crimea Peninsula in 2014 and its support for pro-Russian armed separatists in eastern Ukraine.

#Oi2020: Drill Bit Rescue from 30,000 ft.

Photo Credit: American Oil & Gas Historical Society

Drilling wells more than three miles deep in the late 1960s was something that GHK Company and partner Lone Star Producing Company believed would product massive amounts of natural gas. The two companies that began this project discovered in 1974 that South of Burns Flat in Washita County their Bertha Rogers No. 1 rig would reach almost six miles deep, following a deep-sea fishing trip. Averaging 60 feet per day, the rig (at that time) was destined to become the world’s deepest well. However, following 16 months of drilling, the rotary rig drill stem sheared from the stem, causing more than 4,100 feet of pipe (and the drill bit) to become stuck.

Increased Confidence in CO2 Storage

The bespoke drill rig being lowered over the side of the RRS James Cook. The rig is designed to push the curved steel pipe into the seabed sediment. Image: Copyright STEMM-CCS Project

If we are going to store large volumes of carbon dioxide (CO2) in depleted oil and gas reservoirs beneath the seabed we need to be sure that, in the unlikely event of a leak, we can detect it. A research expedition, carrying a world-first experiment designed to develop methods for the detection and monitoring of leaks, has just returned from the North Sea; it has been declared a great success.Climate change, driven by increasing CO2 levels in the atmosphere, is now a well-established side-effect of human activities that is having profound effects on the Earth’s natural systems.

Velesto Bags Contracts from Petronas Carigali

Image: Velesto Energy Bhd

Malaysia-based Velesto Drilling, indirect wholly- owned unit of Velesto Energy Bhd’s (VEB), has received a letter of award from Petronas Carigali Sdn Bhd (PCSB) for the provision of jack-up drilling rig Naga 7.In a filing with Bursa Malaysia, the company said the contract worth an estimated US$8 million  is for the provision of drilling rig services for PCSB’s drilling program, which is expected to commence in the third quarter of 2019.The Malaysian offshore drilling and services provider said that the contract is expected…

Baker Hughes: U.S. Oil Drillers Cut Rigs Again

file Image: credit AdobeStock / © Diter

U.S. energy firms this week reduced the number of oil rigs operating for a third week in a row after drilling slowed for nine straight months as independent producers cut spending by about 10% this year.Drillers cut four oil rigs in the week to Sept. 6, bringing the total count down to 738, the lowest since November 2017, General Electric Co's Baker Hughes energy services firm said in its closely followed report on Friday. <RIG-OL-USA-BHI>In the same week a year ago, there were 860 active rigs.The oil rig count, an early indicator of future output…

Green Light for Arctic LNG 2

Image: Novatek

The $21.3 billion Arctic liquefied natural gas (LNG)-2 project on the Gydan Peninsula headed by the Russian largest independent natural gas producer Novatek won a green light on Thursday.The project will have a production capacity of 19.8 million tons per year (Mt/y) and is expected to export its first LNG cargo by 2023, the second and third train to start up by 2024 and 2026.Total has a direct 10% interest in Arctic LNG 2 alongside Novatek (60%), CNOOC (10%), CNPC (10%) and a Mitsui-Jogmec consortium, Japan Arctic LNG (10%).

NGO Pushes for Green Recycling in North Sea

Pic: NGO Shipbreaking Platform

With the oil and gas sector seeing a downturn since 2014, the Platform has documented an increasing number of offshore units sold for scrap.While the recycling of fixed installations occurs under strict regulations, there are serious concerns regarding the recycling of floating structures, which classify as vessels.Around 200 floating structures have been identified as scrapped globally since 2015 – an estimated 40% of these assets ended up on South Asian beaches, where they were broken up under conditions that cause irreparable…

Harvey Gulf Continues Global Expansion

Harvey Gulf CEO Shane Guidry

The Company announced today that its two PSV 3250’s arrived without incident in Nigeria on August 12, 2019 and immediately began one-year contracts.CEO Shane Guidry commented, “We want to thank our local partner and our Nigeria employees for working 100 percent within our policies, procedures and most importantly our safety culture. We look forward to growing our business in the region.” The Company continues to expand globally, with two additional PSV 5400’s arriving in Trinidad on August 24, 2019 to begin drilling support…

Rates Slowdown in Permian Basin

Graph: Rystad Energy

Though the Permian Basin still dominates US land drilling, the pace of growth in this region has slowed significantly.Older tight oil wells decline by 20% per year without material intervention, according to Rystad Energy.Contrary to common belief, the Permian Basin systematically offers the lowest oil decline rates, along with the Bakken Shale.In turn, the Eagle Ford and DJ basins exhibit steeper decline rates throughout the first eight years of production across most vintages.Rystad Energy has examined all horizontal oil-producing wells in the Bakken…

PGNiG Starts Norwegian Drilling

Platform Deepsea Nordkapp. Photo: Odfjell Drilling

Polish state-controlled oil and gas company PGNiG said its unit PGNiG Upstream Norway started drilling an exploration well in licence area PL838 (the Shrek prospect) on the Norwegian Continental Shelf, for the first time in the role of the operator.It is the first exploration well in this licence area, located in the vicinity of the Skarv oil and gas field, in which PGNiG holds a 12% interest, said the subsidiary of Polish Oil and Gas Company."The main objective of our operations in Norway is to scale up our own production of gas in the region.

BP Exits Alaska with $5.6Bln Sale

Aerial view of BP Alaska's Prudhoe Bay operations. Photo: BP Images

British oil major BP Alaska announced that it is selling its entire business to Hilcorp Alaska, marking the exit from Alaska after six decades.The $5.6 billion sale includes Opens a New Window. interests in the Prudhoe Bay oil field, Point Thomson gas field and the trans-Alaska pipeline system, BP said in a release.Bob Dudley, BP group chief executive, said: "Alaska has been instrumental in BP's growth and success for well over half a century and our work there has helped shape the careers of many throughout the company. We are extraordinarily proud of the world-class business we have built…

U.S. To “Drown The World” In Oil

Image: Global Witness

A staggering 61% of the world’s new oil and gas production over the next decade is set to come from one country alone: the United States.According to a report by Global Witness, the sheer scale of this new production dwarfs that of every other country in the world and would spell disaster for the world’s ambitions to curb climate change – the effects of which we’re already witnessing through massive heat waves, flooding, and extreme weather.Earlier this year, we crunched the numbers from the latest climate science and industry…

NOV Cuts Staff for Second Time This Year

© bomboman / Adobe Stock

Oilfield equipment and service provider National Oilwell Varco has begun trimming its workforce for the second time this year, two people familiar with the matter said this week, as oil producers cut spending budgets.The Houston, Texas-based company last quarter rolled out a voluntary early retirement program and said it was reorganizing operations to reduce costs as part of a broader restructuring plan. The latest cuts, which are already underway, are in addition to those job reductions, the people said.Newer staffing cuts are aimed at eliminating redundant functions within the company, such as marketing or recruitment, one person said.

Empyrean Energy to Spud Well in Indonesia

Image: Empyrean Energy

Australia's Empyrean Energy provided an operational update in relation to the upcoming drilling campaign in the Duyung PSC in the West Natuna basin, offshore Indonesia, in which Empyrean holds an 8.5% interest.The oil and gas development company with interests in China, Indonesia and the United States, said that  campaign will comprise of two wells, an exploration well designed to test the Tambak prospect beneath the central area of the Mako gas field, and an appraisal well designed to primarily appraise the intra-Muda sandstone reservoir in the southern area of the Mako field…

Gazprom Oil Touch 100mln Barrels at Badra

Badra field. Wasit Province, Eastern Iraq. Pic: Gazprom Neft

Russian oil producer Gazprom Neft said that its subsidiary Gazpromneft-Badra has now produced 13.5 million tonnes — or 100 million barrels — of oil in Iraqi oil field.Cumulative production at the Badra field in the five years since this asset went into commercial operation has reached 100 million barrels — the first shipment of liquid hydrocarbons having taken place in 2014. Oil production at the field stands at more than 1.8 million tonnes (13.5 million barrels) since the start of 2019.Twenty-two operating wells, each running to an average depth of 4,500 meters, have been drilled by Gazpromneft-Badra since discovering this asset.

US Drillers Add Oil Rigs

© FerrizFrames / Adobe Stock

U.S. energy firms this week increased the number of oil rigs operating for the first time in seven weeks despite plans by most producers to cut spending on new drilling this year.Companies added six oil rigs in the week to Aug. 16, the biggest increase since April, bringing the total count to 770, General Electric Co's Baker Hughes energy services firm said in its closely followed report on Friday.In the same week a year ago, there were 869 active rigs.The oil rig count, an early indicator of future output, has declined over…

Woodside Begins Greater Enfield Project

Image: Woodside

Australian energy giant Woodside has announced in a press release that it will produce first oil from its Greater Enfield project located offshore Australia this month."We expect first oil from the Greater Enfield reservoirs in August 2019. The delivery of the Greater Enfield Project, on schedule and under budgeted cost, is a further demonstration of our capacity to execute our growth plans, Woodside CEO Peter Coleman said.The Ngujima-Yin floating production storage and offloading (FPSO) facility being offline for refurbishment in Singapore ahead of its restart at Greater Enfield…

Total Extends Pacific Santa Ana Gig

Image: Pacific Drilling

Offshore drilling contractor Pacific Drilling has been awarded a one-well extension for its drillship working for French oil major Total in Offshore Mauritania.Pacific Santa Ana is expected to run from this month to September, said offshore ultra-deepwater drilling company."We added backlog for our fleet as an option was exercised for Pacific Santa Ana. The increase in revenue in second-quarter 2019 resulted primarily from the Pacific Santa Ana commencing operations with Total in Senegal,” said CEO Bernie Wolford.Accordingly…

Chinese Ship Returns to Vietnam's EEZ

A Chinese survey ship returned to Vietnam's exclusive economic zone off its coast on Tuesday, ship tracking data showed, less than a week after it left the area where vessels from the two countries were locked in a month-long standoff.The Haiyang Dizhi 8 first entered the zone under Chinese coast guard escort in July and appeared to conduct a seismic survey of waters that are a potential global flashpoint as the United States challenges China's maritime claims.The survey ship, which according to Vietnam left the area on Aug.

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 more than 12 million…

EOG Bags Offshore Ireland Licence

Image: Europa Oil & Gas

United Kingdom-based exploration and production company Europa Oil & Gas  (EOG) has been awarded a 15-year frontier exploration licence for an area in the Slyne Basin, offshore Ireland.The area includes Europa’s flagship Inishkea prospect, which lies immediately to the north-west of the producing Corrib gas field in the Corrib Field Petroleum Lease Area.The Inishkea prospect has estimated gross mean un-risked prospective gas resources of 1.5 trillion cubic feet (TCF) and has been assigned a one in three chance of success.The next steps for the Licence…

Borr Drilling Wins Premium Jack-up Deal

File Image: Borr Drilling Limited

The international drilling contractor to the oil and gas industry Borr Drilling has been awarded an additional jackup rig contract by Mexico’s Petróleos Mexicanos (Pemex).Borr currently has two jackup rigs about to commence work with Pemex, who have now contracted a third rig.The first rig, the "Grid", has arrived on site and is currently commencing its contract, while the second rig, the "Gersemi", is expected to commence shortly thereafter.The Bermuda-based company is also pleased to announce that it has received an award from Pemex for an additional contract…

Investments in Exploration Drilling to Double

Image: Rystad Energy

Rystad Energy sees investments both in offshore and onshore exploration drilling doubling in the next five years, compared to the last five years. Conventional onshore demand will be driven by Asia, Africa and South America.Europe on the other hand, will be a hot spot for offshore exploration, led by investments on the Norwegian Continental Shelf, the energy research and business intelligence company said.In the past few years conventional exploration drilling has been on a rocky road, dropping from 3000 exploration wells drilled…

Seadrill Ivory Coast Contract Terminated

West Vencedor. Image: Seadrill Partners

Seadrill Partners, the deep-water drilling contractor for the petroleum industry, has received an early termination notice from an unnamed operator for the West Vencedor rig contract offshore Ivory Coast.The contract was expected to start in 3Q 2019. In January, the rig received a six-well contract with three option wells.The West Vencedor unit had recently completed its work in Myanmar and will now stay in Southeast Asia to be marketed for additional opportunities.Seadrill Partners is expected to receive a lump sum early termination…

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…

Oxy Q2 Earnings Dip

© Pongpob / Adobe Stock

Occidental Petroleum Corp , which is battling activist investor Carl Icahn over its $38 billion purchase of Anadarko Petroleum, reported a 14% drop in quarterly profit on Wednesday, as costs related to the deal and weaker chemical earnings hit its bottom line.Still, the results topped Wall Street estimates for the period and Occidental's operating cash flow rebounded from last quarter to $2.96 billion, up 7% from the same quarter a year ago. Investors closely watch operating cash flow as a sign of a company's ability to cover shareholder payouts and operating expenses.Core income fell to $729 million…

MDL Wins Equatorial Guinea Pipelay Work

Pic: Maritime Developments

Maritime Developments (MDL), a provider of back-deck equipment for the subsea sector of oil and gas industry, has been awarded a contract to supply a complete pipelay spread and personnel for a flexible installation offshore Equatorial Guinea.The award comes from a new client, whose work scope covers the launch of a number of new wells in an existing network of drill centres in the West African basin, MDL said.The MDL spread will consist of the MDL Horizontal Lay System (HLS), delivered with a 4-track pipelay tensioner; an…

Hess Corp Posts Smaller Quarterly Loss

(Photo: Hess Corp)

Hess Corp reported a smaller-than-expected quarterly loss on Wednesday, helped by lower exploration costs and a surge in output in its Bakken shale and Gulf of Mexico assets that also prompted the company to raise its 2019 production forecast.The company also cut its full-year spending plans by $100 million to $2.8 billion against the backdrop of increased investor pressure to boost shareholder returns.Hess' shares rose 6.3%, the second-biggest percentage gainer on the S&P 500 Energy Index.Oil output in the United States has soared in recent years…

GSP Offshore, Trident Black Sea Bid in Ukraine

Image: Upetrom Group

GSP Holding company GSP Offshore SRL is the preferred drilling and engineering services provider of Trident Black Sea, in its bid for the right to negotiate a production sharing agreement (PSA) with the Ukrainian government for the offshore Dolphin block in the northwestern part of the Black Sea.According to a press release from the Romanian company providing offshore integrated services for oil and gas industry said that Trident Black Sea will be the operator of the project, in the event of a winning bid.Other partners of Trident for this project are San Leon Energy for non-operating technical assistance…