Monday, March 30, 2020

Origin Energy to Defer Shale Drilling in Australia

Illustration only; Image by FerrizFrames - AdobeStock

Origin Energy will defer shale exploration drilling in Australia's Northern Territory until the second half of this year in a bid to protect workers from a coronavirus, the company said on Thursday.Origin, operator of a joint venture with Dublin-based Falcon Oil & Gas Ltd, resumed drilling in the Beetaloo Basin last year after a three-year break when drilling was banned, and had hoped to get first test results around July this year.It has estimated the Beetaloo Basin contains 6.6 trillion cubic feet of potentially recoverable…

Lekoil 'in Process' of Paying $2M to Optimum

Image credit: Lekoil

Nigerian oil company Lekoil has said it is in the process of paying $2 million to Optimum Petroleum, its partner in an offshore block in Nigeria.The 2 million payment was agreed in January, and it is the first of two installments Lekoil is due to pay to Optimum Petroleum to cover "sunk costs and consent fees” for the OPL 310 offshore block. According to the agreement in January, where Lekoil got more time to make the payments, Lekoil is to pay $2 million by March 20, and another $7.6 million by May 2, for a total of $9,6 million to Optimum…

Oilfield Services Giant to Cut Spending by 30%

Illustratoin; Image by ????? ????????/AdobeStock

Schlumberger, the world's largest oilfield services company, on Tuesday said it would cut spending by 30% this year from last year's levels as the oil market has been roiled by the coronavirus outbreak and Saudi-Russia price war.The company expects a rapid reduction in active drilling and hydraulic fracturing activity, estimating the number of rigs in operation could fall to levels last seen during the 2016 downturn.Oil prices have fallen by more than half this year, diving below $24 a barrel on Tuesday, as coronavirus curtails…

U.S. Offshore Oil Lease Sale Weakest Since 2016

Silhouette of an oil platform at sunset in the Gulf of Mexico - Image by Lukasz Z / AdobeStock

A major sale of oil and gas leases in the U.S. Gulf of Mexico on Wednesday generated $93 million in high bids, the lowest total for any U.S. offshore auction since 2016, reflecting caution in the drilling industry amid a steep slide in oil prices.Firing up offshore drilling is a crucial part of U.S. President Donald Trump's "energy dominance" agenda to maximize domestic production of crude oil, natural gas, and coal. But the energy industry is in crisis as the coronavirus outbreak decimates world demand for fuel and crushes prices."While bidding did take a tough hit…

Deepwater Acreage to Attract Investments

Image: Norwegian Petroleum Directorate

Deepwater acreage will continue to attract significant company interest through 2020, said a report.According to GlobalData, a significant portion of the acreage available in Q1 2020 is located in either deep or ultra-deep water, up from the previous quarter.In Q1 2020, approximately 60% of the acreage available in licensing rounds either open or scheduled to close in the quarter is located in deep or ultra-deep water, revealed the report: ‘Q1 2020 Global Bid Round Outlook – Increase in Deepwater Acreage Offered in Q1 2020’.Toya Latham…

Diamondback Cuts Drilling Activity as Oil Prices Tumble

© Alexey Zakirov / Adobe Stock

Diamondback Energy Inc said on Monday it was reducing drilling activity immediately, as the oil and gas producer tackles one of the steepest declines in oil prices in decades.Oil prices lost as much as a third of their value on Monday in the biggest daily rout since the 1991 Gulf War, after Saudi Arabia signaled it would hike output to win market share at a time when the coronavirus epidemic has left the market oversupplied.The company's shares were down nearly 22% in light premarket trading amid a broader fall in oil and gas related stocks.Diamondback expects to drop two rigs in April and a third later in the second quarter.

Saudi Aramco Launches Largest Shale Gas Development Outside US

Amin H. Nasser (Photo: Saudi Aramco)

Saudi Aramco is launching the biggest shale gas development outside of the United States to boost domestic gas supply and end the burning of oil at its power generation plants, Chief Executive Officer Amin Nasser told Reuters on Monday.The world's top crude oil exporter has for years battled for market share with rapidly expanding shale oil producers in the United States, which in just a decade have developed capacity to pump millions of barrels per day of oil from rock formations that were previously too costly to tap.Saudi Arabia fought a price war aimed at putting the U.S. shale industry out of business just six years ago, which ultimately failed.

Fugro in Record Cable Route Survey at Sofia Wind Farm Site

Fugro Pioneer - Image by Philippe Guichot - MarineTraffic

Dutch geotechnical services firm Fugro has said that its Fugro Pioneer vessel has left the Port of Sunderland in the UK earlier this month to begin a 6-month offshore site investigation and survey campaign for innogy's Sofia offshore wind farm.The 1.4 gigawatt (GW) Sofia Offshore Wind Farm, sited on the shallow central area of the North Sea known as Dogger Bank, is the largest project in innogy SE’s current development portfolio."Fugro will provide geophysical and geotechnical services over the project’s 220 km export cable corridor…

Brazil Breaks Oil Output Record in January

Illustration; An FPSO in Brazil - Image by Ranimiro / AdobeStock

Oil companies produced 3.17 million barrels per day (bpd) on average in Brazil in January, a volume 20.4% larger than seen in the same month a year earlier and an output record for the country, oil regulator ANP said on Wednesday. Natural gas production increased 22% over January 2019 to 138.7 million cubic meters per day on average last month, also a record. The deepwater, pre-salt field known as Lula accounted for a third of all oil production in Brazil, reaching 1.05 million bpd of crude on average in January, ANP said.

Offshore Accounts for 60% of Oil Discoveries

Graph:  GlobalData

Offshore discoveries accounted for more than 60% of global discoveries in 2019, up significantly on previous years, according to a study by GlobalData.GlobalData report reveals that while Colombia and Norway saw the highest number of discoveries drilled in 2019, Guyana, Mauritania and Russia hosted the most significant finds.In Guyana, ExxonMobil drilled five discoveries in the deepwater Stabroek Block. Following the additional well drilled in January 2020 (Uaru-1), the company has increased its estimated gross recoverable…

NOV Warns Virus Fallout Could Hit Supply Chain

© Kalyakan / Adobe Stock

U.S. oilfield equipment supplier National Oilwell Varco on Friday called the coronavirus a "wildcard" in the oil industry's outlook, with an extended outbreak potentially hurting access to Chinese-make materials and foreign sales.The Houston-based company said further shutdowns at its Chinese suppliers could limit its production of certain products such as fiberglass resins and drilling pipe.For now, National Oilwell has the latitude to make up lost ground, executives added, noting it has a diversified supply chain."[There is] still a lot of uncertainty related to the extent to which this will impact operations…

Are OSVs Fit for Refit for Offshore Wind?

BEFORE: Island Clipper: Island Offshore of Ulsteinvik, Norway, has had success with conversions.  “before” and “after”.  Photos: Island Offshore

While it is generally agreed that the nascent offshore wind energy market in the U.S. will be a newbuild market, there is a repair and conversion possibility for some stacked OSVs.Though estimates on the pace of the offshore wind energy market in the U.S. vary widely, the direction is clear: offshore wind will be a huge marketplace for construction and support vessels to be deployed in U.S. waters over the next decade. The starting point for estimated vessel demand is the raft of projects along the U.S. East Coast, and to a lesser extent, in the Pacific waters, now in the pipeline.

Russia Leads E&P Race in Arctic Region

Image: GlobalData

Russian and Norwegian exploration and production (E&P) operators have been expanding their operations in the Arctic continental shelf, which is estimated to hold vast deposits of hydrocarbons and rare earth minerals.Warming temperatures in the Barents Sea and northern coastline of Russia are giving an added impetus to resource development in this region, according to GlobalData.GlobalData's report, ‘Arctic Exploitation’, discusses how Russia is keen on hydrocarbon appraisal and development from the Arctic region to such a great…

PGNiG Acquires Duva Field in Norway

Image: PGNiG

PGNiG Upstream Norway, a subsidiary of Polish Oil and Gas Company (PGNiG), has obtained a final administrative consent to purchase additional 10% interests in the PL636 and PL636B licences in the North Sea.Following the transaction, PGNiG Upstream Norway’s (PUN) interests in both licences increased to 30%. As a result, the volume of Duva field gas production attributable to the Company will rise to 0.2 bcm per year.“Acquisition of fields on the Norwegian Continental Shelf is one of the investment priorities of the PGNiG Group.

Canadian Energy Sector to Boost Spending

© muratart / Adobe Stock

Capital spending by Canada's oil and gas industry will rise by 6%, or C$1.9 billion, in 2020 from the previous year, halting a six-year decline due to improving economics, the Canadian Association of Petroleum Producers (CAPP) forecast on Thursday.CAPP said a corporate tax cut by Alberta's provincial government last year and its easing of oil production limits will lead to higher spending.Congested pipelines created a glut of oil in storage in the Western Canadian province in recent years, depressing prices and causing its…

CaribX Ups Stake in Cape Licence Off Honduras

Image by CaribX

The Central American and Caribbean specialist exploration company CaribX said that it is increasing its share of the Main Cape Operating contract in Honduras.Following government approval CaribX will hold a 55% interest in the highly prospective licence area.CEO Rory Scott Russell said: "We are pleased to have closed this latest round of funding and delighted to have such a highly qualified and experienced group of explorers and entrepreneurs joining the company. Attracting the team behind Sierra and the giant Zama discovery demonstrates the enormous potential offshore Honduras…

Alaska's North Slope Holds 3.6 Bn Barrels Oil

Image: USGS

U.S. Geological Survey (USGS) department estimated that Alaska's Central North Slope 3.6 billion barrels of oil. Assessment also included estimate for 8.9 trillion cubic feet of natural gas.This assessment does not include discoveries made by industry between 2013 and 2017.“Alaska is synonymous with energy, and this assessment just reinforces that,” said USGS Director Jim Reilly. “The State of Alaska and its industry partners have responsibly produced billions of barrels of oil from Prudhoe Bay, and we think there are still…

Rotterdam Port Explores Option of Geothermal

Image: Port of Rotterdam Authority

Research into the geothermal port of Rotterdam is entering the next phase, according to the Port of Rotterdam Authority.Shell Geothermal BV and the Port of Rotterdam Authority are jointly investigating the options for geothermal energy in the western part of the port of Rotterdam. The two companies have received an exploration permit from the Ministry of Economic Affairs.The subsurface has been mapped out thoroughly in recent years as part of the Ultra-Deep Geothermal Energy (UDG) green deal. Obtaining the exploration permit means that Shell and the Port Authority will have time in the coming years to further detail their plans…

Global Demand Lifts Schlumberger Profits

© Igor Golovnev / Adobe Stock

Schlumberger NV reported a 9.4% rise in adjusted quarterly profit on Friday, as buoyant demand in international markets helped the world's largest oilfield services provider make up for lower drilling activity in North America.Net income fell to $333 million, or 24 cents per share, in the fourth quarter ended Dec. 31, from $538 million, or 39 cents per share, a year earlier.The year-ago quarter included a gain from an asset sale.Excluding charges and credits, net income rose to $545 million, or 39 cents per share, from $498 million, or 36 cents per share.(Reporting by Shariq Khan in Bengaluru; Editing by Sriraj Kalluvila)

Oilfield Services Giants Start Year with Asset Sales

Illustration - Image by pichitstocker - Adobe Stock

Schlumberger, Halliburton Co, and Baker Hughes Co have kicked off the new year by putting units up for sale, as the three largest names in oilfield services seek to reshape their businesses and adjust to falling demand.Oilfield service providers are facing reduced spending by oil and gas producers as investors push for higher shareholder returns rather than more drilling activity. Competition also is forcing service companies to exit less profitable businesses. The trio, which hold about 26% of the global oilfield services market…

Wood Group Sees Higher Annual Earnings

Wood is delivering brownfield modifications services to Equinor’s Martin Linge offshore installation on the Norwegian continental shelf. (Photo: Jan Arne Wold / Woldcam / Equinor)

Oilfield services provider John Wood Group Plc expects higher core earnings in 2019, with strong performance in its engineering services unit in the Middle East, Asia and the Caspian region offseting slowing U.S. onshore drilling demand.The Aberdeen-headquartered company said on Thursday adjusted earnings before interest, tax, depreciation and amortization (EBITDA) is expected to be in a range of $850 million to $860 million for the year ended Dec. 31, compared with $693.8 million a year earlier.(Reporting by Shanima A in Bengaluru; Editing by Subhranshu Sahu)

Oil And Gas Discoveries Hit 4-Year High

Graph: Rystad Energy

The global oil and gas explorers powered ahead and discovered 12.2 billion barrels of oil equivalent (boe) in 2019, the highest volume since 2015.According to Rystad Energy, last year recorded 26 discoveries of more than 100 million boe, with offshore regions dominating the list of new oil and gas deposits.Guyana’s success story from 2018 continued in 2019, with ExxonMobil adding four new discoveries within its offshore Stabroek block, while Tullow Oil’s Jethro and Joe exploration wells established the presence of a working petroleum system to the west of the Stabroek block.

Indonesia Plans New Gas Pricing for Industrial Users

© anekoho / Adobe Stock

Indonesia plans to unveil a new gas pricing policy for industrial customers in March in a bid to lower energy costs for manufacturers, Energy and Mineral Resources Minister Arifin Tasrif said on Thursday.Indonesia's President Joko Widodo earlier this week asked his cabinet to come up with a strategy to lower gas prices for manufacturers to around $6 per million British thermal units (mmbtu).Manufacturers have been complaining about gas prices running at about $8-$9 per mmbtu, despite a 2016 rule that ordered energy companies to cut natural gas prices for some industries.The energy ministry is studying a so-called Domestic Market Obligation (DMO)…

Apache Makes Major Discovery Offshore Suriname

Photo courtesy of Total

Apache Corp and Total SA said on Tuesday they had made a major oil discovery in a closely watched area off the coast of South America's Suriname, sending Apache's shares surging nearly 27%.The discovery, dubbed "among the most anticipated in the world" by one brokerage, is seen as central to Apache's efforts to reduce its reliance on the Alpine High venture in Texas' Permian basin, which has suffered from a dive in natural gas prices.Analysts said it was impossible to ascertain as yet how much oil the well would generate but…

US Drillers Cut Oil Rigs

© zef art / Adobe Stock

U.S. energy firms reduced the number of oil rigs operating for the second straight week as producers follow through on plans to slash spending on new drilling.Drillers cut 7 oil rigs in the week to Jan. 3, bringing the total count down to 670, energy services firm Baker Hughes Co said in its closely followed report on Friday.In the same week a year ago, there were 877 active rigs.Even though the number of rigs drilling new wells has fallen in 2019, U.S. oil output has continued to increase. In part this is because the productivity…

Gazprom Neft Crosses 12-MT Oil at ARCO

Image: Gazprom Neft

Russian oil and gas company Gazprom Neft said that its Prirazlomnaya offshore platform in the southeastern Russian Barents Sea has produced its 12-millionth metric ton (13.23 MM ton) of ARCO (Arctic-blend) oil.The shipment was delivered by the Kirill Lavrov ice-class shuttle tanker to the storage tanker in Kola Bay, for onward transport to locations in Europe.The Prirazlomnoye field is the first — and, thus far, the only — project at which oil is being produced on the Russian Arctic Shelf. Commercial development of this field has seen 18 wells drilled…

U.S. Drillers Add Rigs for First Month in 13

AdobeStock / © Edelweiss

U.S. energy firms reduced the number of operating oil rigs for the first time in three weeks as producers follow through on plans to slash spending on new drilling.Drillers cut 8 oil rigs in the week to Dec. 27, bringing the total count down to 677, the lowest since the week to Nov. 15, energy services firm Baker Hughes Co said in its closely followed report on Friday. <RIG-OL-USA-BHI>In the same week a year ago, there were 885 active rigs.That put the oil rig count down 208 for the year, its first annual decline since 2016.

Saipem Tallies $1.7 Bln Drilling Contracts

(File photo: Saipem)

Italian oilfield services firm Saipem announced Friday it has secured approximately $1.7 billion in new and extended drilling contracts for its offshore and onshore divisions.The offshore drilling contracts relate to activities to be executed in Norway and in Angola, Saipem said in a press release.The onshore contracts encompass 19 land-rigs located in Middle East, with power between 1,500 and 2,000 horsepower, and their duration range from three up to 10 years. In addition, new contracts and extensions on other existing contracts have been assigned for new works that will be executed in Bolivia, Perú and Romania, the company said.

Offshore Energy Outlook for 2020

Equinor’s Hywind Tampen project will use floating wind turbines to provide power to the Snorre and Gullfaks oil and gas production facilities.  (Image: Equinor)

The “new normal” is a phrase tossed around often in offshore energy circles today as those servicing and operating in the sector grapple with the harsh realities of the prolonged industry downturn. Operators, service companies and equipment suppliers have been forced to adjust to oil selling at prices well below the $100+ per barrel mark seen in years past. As of this writing, Brent oil was hovering around $62 per barrel, and analysts expect prices will remain in this range for some time into the future.On top of this, there’s another new reality for oil and gas companies to come to grips with: the so-called “energy transition”.

Wintershall Dea Norge Wins Norway Permit

Image: Wintershall Dea GmbH

The Norwegian Petroleum Directorate (NPD) has granted Wintershall Dea Norge, a Norwegian unit of the German oil company Wintershall Dea, a drilling permit for well 66046604/5-2 S, which is located in the Norwegian Sea.According to NPD, the well will be drilled from the Scarabeo 8 drilling facility in after concluding the drilling of wildcat well 6604/6-1 for Wintershall Dea Norge AS in production license 894.The drilling program for well 6604/5-2 S relates to the drilling of an appraisal well in production license 894.Wintershall Dea Norge AS is the operator with an ownership interest of 40 percent.

U.S. Drillers Add Most Rigs Since Feb 2018

AdobeStock / © Shamtor

U.S. energy firms added the most oil rigs this week since February 2018 - primarily in the Permian shale - even though producers have been reducing spending on new drilling for much of this year.Companies added 18 oil rigs in the week to Dec. 20, bringing the total count to 685, the most since early November, energy services firm Baker Hughes Co said in its closely followed report on Friday.In the same week a year ago, there were 883 active rigs.In the Permian in West Texas and eastern New Mexico, the nation's biggest shale oil play…

Beach Energy Eyes Offshore New Zealand

Map of the Great South and Canterbury basins showing the location of PEP50119 and the Tawhaki prospect relative to the Beach-operated PEP38264 permit and the Wherry and Gondola prospects. Map: Beach Energy Limited

Australian oil and gas exploration and production company Beach Energy Limited has signed an agreement with OMV GSB Oil Exploration to acquire a 30% participating interest in exploration permit (EP) PEP50119 in the Great South Basin, offshore New Zealand.Under the agreement, Beach will acquire a 30% participating interest in the permit in exchange for funding a 30% share of the Tawhaki-1 well cost and the associated work program and budget. The estimated capital exposure is approximately $25 million net to Beach.The transaction is subject to New Zealand government and regulator approval…

U.S. Drillers Add Rigs for first Week in Eight

AdobeStock / © Nightman

U.S. energy firms added rigs for the first time in eight weeks even as producers follow through on plans to reduce spending on new drilling.Companies added 4 oil rigs in the week to Dec. 13, bringing the total count to 667, energy services firm Baker Hughes Co said in its closely followed report on Friday.In the same week a year ago, there were 873 active rigs.That keeps the oil rig count on track to fall for the first year since 2016. The decline, however, only totals 218, which is much smaller than 2015's record 963 rig decline…

PTTEP Charters Energy Drilling for Arthit Gig

EDrill-1 in the Gulf of Thailand. Image: Energy Drilling

Singapore based Energy Drilling  has been awarded a contract by the Thailand's oil and gas company  PTT Exploration & Production International (PTTEP) to provide drilling services on the Arthit field in Gulf of Thailand.The builder and manager of self-erecting tender assist drilling rigs said in a release that this contract secures employment for the high specification tender rig EDrill-1, for a firm term of 3 years and 4 months with an option period of 7 months.The Arthit field is located 230km offshore of Thailand’s Songkhla province in the Gulf of Thailand.

Offshore: OSV Market Report

Photo courtesy Ulstein Group/Marius Beck Dahle

The environment in oil patches onshore and offshore alike has been challenging throughout 2019; worries about an economic slowdown – whether cyclical or induced by a trade war – have weighed heavily on oil prices, even in the face of reduced production by the big producers. Though storm clouds persist, there appears a clearing on the horizon.The fate of Offshore Service Vessels (OSVs) is, naturally, closely tied to the price of oil. Seacor Marine’s John Gellert, in reviewing its Q2 results, said: “Activity levels in the U.S.

Majors Press Mexico to Resume Oil Auctions

© Denys / Adobe Stock

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 met output targets and investment pledges worth hundreds of millions of dollars in the initial phases of their contracts."We've been complying (with contractual obligations)…

Sapura Energy Secures New Order

Image: Sapura Energy

Malaysian oil and gas services firm Sapura Energy has secured several new contracts and contract extensions for its engineering and construction (E&C) as well as drilling segments.The contracts, valued at approximately RM615 million (USD 148 million), brings the total order book year-to-date to RM15.1 billion, which will increase work volume and utilization of assets.Building on its long-term relationship, Sapura Fabrication Sdn Bhd has won a contract from Hess Exploration and Production Malaysia B.V under the PETRONAS frame agreement…

KCA Deutag Wins UK North Sea Contract Extension

Image: KCA Deutag Group

Canadian Natural Resources International (CNRI) has awarded KCA Deutag a five-year extension to a drilling operations and maintenance services contract.The UK-based international oil and gas services company said that multi-million pound contract is for the provision of drilling operations and maintenance services on CNRI’s three platforms - Ninian South, Ninian Central and Tiffany platforms.The two companies have a long history of working together, and over recent years have won various collaboration awards, in conjunction with other partners…

Providence to Operate Avalon as Total Exits

Image: Providence Resources

As Total E&P Ireland, a subsidiary of the French multinational oil giant, has withdrawn, Providence Resources has taken over operatorship of the Frontier Exploration Licence (FEL) 2/19, which contains the Avalon prospect, located offshore Ireland.FEL 2/19 is located in the southern Porcupine Basin, offshore Ireland and contains the undrilled Paleocene “Avalon” exploration prospect. FEL2/19 lies adjacent to FEL3/04 in which Providence also has an interest.Total had agreed a farm-out with the Irish oil and gas exploration company in 2017, with the French group taking a 50%  increase in the prospect.

Oil Edges Lower on U.S. Crude, Gasoline Build

AdobeStock / © Mikesjc

Oil eased on Wednesday after a report showing U.S. crude inventories grew unexpectedly last week and gasoline stocks surged, but losses were limited by optimism that a U.S.-China trade deal would be reached soon.Brent crude futures fell 34 cents, or 0.5%, to $63.93 a barrel by 1:14 p.m. EST (1814 GMT). U.S. West Texas Intermediate crude fell 34 cents, or 0.8%, to $57.93 a barrel.WTI trade volumes were also on track to be lower for the week ahead of the U.S. U.S. Thanksgiving holiday.U.S. crude stocks swelled by 1.6 million barrels last week as production hit a record high at 12.9 million barrels per day and refinery runs slowed…

U.S. Drillers Cut Rigs for 12th straight Month

AdobeStock / © xmentoys

U.S. energy firms reduced the number of oil rigs operating for a record 12th month in a row after this week cutting rigs for a sixth consecutive week as producers slash spending on new drilling.Drillers cut three oil rigs in the week to Nov. 27, bringing the total count down to 668, the lowest since April 2017, energy services firm Baker Hughes Co said on Wednesday in a report released two days early due to the U.S. Thanksgiving holiday. <RIG-OL-USA-BHI>In the same week a year ago, there were 887 active rigs.In November, drillers cut 28 oil rigs.That puts the oil rig count on track to fall for the first time in three years.

Solveig buys oilfield operator Capricorn from Cairn

AdobeStock / © don Victorio

Norwegian pipeline firm Solveig Gas has agreed to buy oil firm Capricorn Norge from Cairn Energy for $100 million, completing its transformation into a North Sea field operator, Solveig's owner HitecVision said on Wednesday.The private equity fund told Reuters earlier this year it aimed to turn Solveig into an integrated exploration and production company, using the cash flow from its gas pipelines to fund expansion.Cairn separately confirmed the deal, adding it will use the proceeds to fund its ongoing oil business in British waters.Capricorn owns 10% in the Wintershall Dea-operated Nova field in the North Sea…

Masirah Contracts Wings Offshore for FSO

Image: Ministry of Technology and Communications, Oman

Masirah Oil, an exploration and production company operating Block 50 offshore Oman, has awarded a contract to Wings Offshore for a floating storage and offloading (FSO) vessel, which will be used on a field located offshore Oman.Masirah said it had awarded the FSO contract to Wings Offshore for the Mt Bull Papua, which is an Aframax tanker with a storage capacity of 750,000 barrels.The FSO will be used to store crude oil that will be produced during the early appraisal phase of the Yumna field in Block 50 Oman.Drilling of the Yumna 1 appraisal well is planned to start in December 2019…

Qatar Ups LNG Production by 64% to 126 MTPA by 2027

Pic: Qatar Petroleum

Qatar Petroleum has announced that it will raise Qatar’s LNG production capacity to 126 million tons per annum (mtpa) by 2027, representing an increase of 64% from the current 77 mtpa.The announcement was made by Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of Qatar Petroleum, at a press conference held in Doha, during which he also announced that new studies have revealed that the North Field’s productive layers extend well into Qatari land in Ras Laffan, paving the way for a new LNG production project in the north of Qatar.Al-Kaabi said: “During the past two years…

U.S. Needs to Revive Shallow-Water GoM E&P

Image: Bureau of Safety and Environmental Enforcement (BSEE)

The US should define the Gulf of Mexico Shallow Water Province as a distinct entity to avoid stranding more than $20 billion of its oil and gas resource, said a new research.According to a research from the Bureau of Safety and Environmental Enforcement (BSEE) and Bureau of Ocean Energy Management (BOEM) the GOM Shallow Water Province, comprised of water less than 200 meters deep, is a historically energy-rich area which now produces natural gas, accounting for 33% of the gulf’s gas production and just over 10% of its oil production.Production and infrastructure investment used to be substantially higher in the Shallow Water Province…

Mako Gas Field Exceeds Hopes: Conrad

Image: Conrad Petroleum

Indonesian oil & gas exploration and production company Conrad Petroleum has flowed dry gas from its Tambak-1 well located in the Duyung PSC in the West Natuna Basin, offshore Indonesia.The Tambak-1 well was designed to both appraise the Mako gas field and test the underlying Tambak exploration prospect. Coro Energy plc holds a 15% interest in this project.The drill stem test (DST) flowed dry gas from the intra-Muda sands at a rate of 11.4 MMcf/day on a 181/64-inch (2.8 inches) choke, maintaining a wellhead tubing pressure of 225psi.

GoM Oil Output Set for Record Year

Graph: Rystad Energy

The U.S. Gulf of Mexico is positioned for another year of record oil production in 2020, despite massive cuts in investment.According to Rystad Energy, most of this growth coming from deep water projects.“2020 is expected to be another record year with average production above 1.9 million barrels per day,” says Joachim Milling Gregersen, an analyst on Rystad Energy’s upstream team.Oil production in the Gulf of Mexico has grown every year since 2013, with an average of 104,000 barrels per day added annually. An essential contribution has come from infill drilling in legacy producing fields such as Mars…

EIA, IEA Grossly Overestimating US Shale: ESAI

 Pic: ESAI Energy

ESAI Energy, an oil & energy data provider, believes both the US Energy Information Administration (EIA) and the International Energy Agency (IEA) are overly optimistic in their November projections of US crude oil production in 2020, according to the company’s latest North America Watch.ESAI Energy sees a deceleration in growth to about 650,000 b/d next year, in contrast to the EIA and IEA forecasts of 1.0 million b/d and 900,000 b/d, respectively.ESAI points to declining capital expenditures by many shale producers in response to investor pressure to spend within cash flow…

LR Bolsters Well Management Team

Melvin Banford, John O’Neill, Derek Harrold, Steve Harris and Matt Rothnie (Photo: Lloyd's Register)

Lloyd’s Register announced it has made several key appointments to its wells engineering and project management consultancy following a series of major contract wins and global growth.John O’Neill brings more than 25 years’ experience in global wells projects to the newly created position of Head of Wells Delivery. Having worked predominantly across the North Sea and Middle East for BP, Shell and Schlumberger, he most recently held the role of UK Director – Wells at Maersk Oil followed by Drilling Manager at Total post-acquisition.Joining O’Neill is Melvin Banford, who assumes the new role of Head of Wells Assurance.

ConocoPhillips targets $50 bln free cash flow over next decade

(Photo: ConocoPhillips)

ConocoPhillips unveiled a long-term plan on Tuesday to boost oil and gas production by about 3% per year, restrain annual spending to about $7 billion and return $50 billion to shareholders over the next decade.The announcement comes as investors, frustrated by weak commodity prices for 5 years, have been pressuring oil and gas companies to cut back on drilling and shore up cash to return to shareholders.The Houston-based company's shares were up a fraction at $57.15 in afternoon trading.ConocoPhillips has been one of the better-performing energy stocks…

US Shale Sector Performs Well

Graph: Rystad Energy

U.S. shale operators are on track to grow 2019 oil production by around 16% over 2018 thanks to impressive operational execution so far this year.The third quarter earnings season revealed that shale companies increased their oil production by about two percent, all while cutting the midpoint guidance for yearly drilling and completions expenses, according to Rystad Energy.The energy research and consulting firm headquartered in Norway said that U.S. shale operators will continue expanding in the fourth quarter, growing oil…

ADNOC to Buy Dozens of Rigs

(Photo: ADNOC)

The Abu Dhabi National Oil Company (ADNOC) said its drilling subsidiary will acquire dozens of rigs to support that national oil company’s upstream growth plans.In the first phase of the wider fleet expansion program, ADNOC acquired, in November 2019, four technologically advanced and UAE-built land rigs with a total value of over AED 350 million ($100 million). Following the integration of the four rigs, which will join the fleet in the first quarter of 2020, ADNOC Drilling plans to acquire dozens of additional land, offshore…

Sandvik to Supply OCTG for ADNOC

(Photo: Sandvik)

Sandvik, a developer and producer of advanced stainless steels, special alloys, titanium and other high-performance materials, said it has entered into a long-term agreement with Tenaris to supply Oil Country Tubular Goods (OCTG) following its award from the Abu Dhabi National Oil Company (ADNOC) in August 2019.ADNOC has awarded Tenaris a long-term contract for the provision of tubulars and Rig Direct services over the next five years, with the possibility of a two-year extension. The award forms part of an initiative by ADNOC…

Equinor Sells Eagle Ford Asset for $325 Mln

Eagle Ford production site in Texas. (All photos: Ole Jørgen Bratland)

Norwegan energy company Equinor said it  has signed an agreement to divest to Repsol its 63% interest in, and operatorship of, its onshore business in the Eagle Ford in the US state of Texas.The transaction is effective October 1, 2019, and covers all of Equinor’s interests in the Eagle Ford Joint Venture with Repsol, covering 69 000 net acres. Following this transaction Repsol will have a 100% interest in the asset.The total consideration is $325 million.“This transaction supports Equinor’s strategy to optimise our onshore US portfolio…

World’s Biggest Floating Wind Turbine Readies

Image: ABS

The largest floating wind turbine in the world, an 8.4-megawatt (MW) ABS-classed offshore wind turbine, is about to be installed.ABS has classed the semi-submersible floating wind turbine is the first of three classed by ABS and designed by Principle Power housing MHI Vestas turbines that will make up for a total of 25 MWs of floating offshore wind power. The turbines are to be installed 20 km off the coast of Viana do Castello, Portugal.“ABS has supported innovation in offshore energy since 1958. This landmark installation underlines how we continue to support promising technology more than 60 years later,” said Christopher J.

Kosmos Strikes Oil Off Equatorial Guinea

 Image: Kosmos Energy

American upstream oil company founded and based in Dallas Kosmos Energy made an offshore oil discovery in Equatorial Guinea, Reuters reported quoting the Ministry of Mines and Hydrocarbons.The S-5 well was drilled at a total depth of 4,400 meters and encountered 39 meters of net oil play in the Santonian reservoir, in the offshore Rio Muni Basin, it said. “The discovery is a strong validation of our strategy to replace oil reserves by exploring the highly prospective oil basins like Rio Muni,” the nation’s Minister of Mines…

Stuck Pipe Solution Cut Through

(Photo: Churchill Drilling Tools)

Oilfield services company Churchill Drilling Tools announced four successful drill-string severs using its HyPR HoleSaver, following stuck pipe events across the Middle East, including two in the UAE.Over the last six months, four drilling teams from three major Middle East operators deployed the HyPR stuck pipe solution. All successfully cut their drill-strings in a matter of hours, a 100% success rate. One UAE operator severed its drill-string in 60 minutes, after getting stuck due to heavy losses.Churchill’s HyPR is a safe, simple stuck pipe solution, pre-placed in the string, that enables operators to reinitiate operations rapidly.

Drilling Ban Proposals Divide Democrats

AdobeStock / © Shamtor

In the southeast corner of New Mexico, new houses, hotels and jobs are sprouting like flowers in the desert. Trucks hauling equipment and laborers jam once-barren highways on the way to thousands of oil rigs.The Democrats who control the state's government have lofty plans for the billions of dollars in projected tax revenues from the drilling industry in the Permian Basin, the world’s biggest oil field, starting with an overhaul of New Mexico's ailing public education system. The biggest threat to those plans, however, may…

Weatherford Wins Russia Contracts

Oilfield services firm Weatherford announced it has signed two contracts totaling $67.4 million for drilling services with two major operators in Russia.The first contract spans two-and-a-half years. Operations began in July 2019 and will last through the end of 2022. Weatherford will provide logging-while-drilling (LWD), measurement-while-drilling (MWD), rotary steerable systems (RSS), drilling, and geo-data interpretation services at several oilfields in Western Siberia.The second contract is a three-year drilling services contract.

Lundin Petroleum's Q3 Beats Forecast

(Photo: Lundin Petroleum)

Swedish oil firm Lundin Petroleum , a partner in Norway's giant Sverdrup oilfield, posted a smaller-than-expected decline in third-quarter earnings on Thursday, while raising output forecasts and cutting capital spending guidance.Earnings before interest, tax, depreciation and amortisation (EBITDA) fell to $411 million in the third quarter from $504 million a year earlier as crude prices declined, beating a mean estimate of $378 million in a Refinitiv poll.The company's shares hit an all-time high in early trade but later pulled…