Wednesday, February 26, 2020

Oil Firms to Spend $53Bn at Stabroek Block

Image: Rystad Energy

Global oil firms are preparing to spend more than $53 billion in Guyana’s coveted Stabroek Block during the coming decade.According to Rystad Energy research, recent discoveries in the Guyana-Suriname basin have proven a wider petroleum system and may cause an upgrade in resource estimates…

USA Ups BOEM Offshore Wind Budget

Image: BOEM

The Trump Administration has proposed a $189m fiscal year 2021 budget for the Bureau of Ocean Energy Management (BOEM), designating just under $27m for offshore wind.The FY 2021 budget includes approximately $26.5 million to advance offshore renewable energy development.In recognition of…

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…

Tullow to Axe a Third of Its Workforce

(Photo: Tullow Oil)

Tullow Oil plans to cut a third of its staff to slash its administration costs by a fifth, or around $20 million, a source with direct knowledge of the matter said, after weak output in Ghana, delays in East Africa and lower-than-hoped-for oil quality in Guyana.The move would shrink Tullow…

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…

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%.

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…

PGNiG Open to Mergers with State-run Firms

(Photo: PGNiG)

Polish gas company PGNiG is open to consolidation with other energy companies, its newly appointed chief executive said on Friday, as the government tries to merge state-run firms to strengthen their market position.The Polish state is a major shareholder in the energy sector, which is undergoing unprecedented consolidation, with PKN Orlen planning to take o

Stork Worley JV Wins Neptune Energy Gig

Stork’s Carla Rodenburg together with Lex de Groot, Neptune Energy, and Worley’s Jim Lenton sign a four-year engineering services agreement for Dutch assets in the North Sea. (L to R with pens in hand) (Photo: Business Wire)

Stork Worley Integrated Solutions, a joint venture of American multinational engineering and construction firm Fluor Corporation, has secured a four-year framework agreement for EPCIC (engineering, procurement, construction, installation & commissioning) and decommissioning services for brownfield…

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…

Exxon to Load First Crude from Guyana This Weekend

The Liza Phase 1 development project utilizes the Liza Destiny floating, production, storage and offloading (FPSO) vessel moored approximately 120 miles offshore Guyana, with four undersea drill centers supporting 17 wells. (Photo: Hess Corp)

The first-ever cargo of Guyana's crude for export is scheduled to begin loading this weekend so the oil can be processed at Exxon Mobil's refining system, the company told Reuters on Friday.Exxon has so far made 15 discoveries of oil reserves in Guyana, turning a risky exploration venture into one of the world's most promising oil mega-projects.

Gassco Urges to Boost Barents Sea Gas Export

Minister of Petroleum and Energy Sylvi Listhaug receives the report on gas transport from CEO of Gassco, Frode Leversund (left). Kjell Agnar Dragvik, Director Analyses and framework at the NPD, also attended the presentation. Photo: Norwegian Petroleum Directorate (NPD)

Norwegian state-owned natural gas pipelines operator Gassco published a study saying that  it could be profitable to increase the transport capacity for gas.According to the study regarding the transport of gas from the southern Barents Sea several gas transport options from the Barents Sea…

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…

China Opens Up to Foreign E&P Firms

© ddukang / Adobe Stock

For the first time, China will this year allow foreign companies to explore for and produce oil and gas in the country, opening up the industry to firms other than state-run energy giants, as Beijing looks to boost domestic energy supplies.The long-awaited opening accompanies a reshuffle of the so-called "midstream" pipeline business, but experts say it may

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…

Energean, DEPA Pact for EastMed Pipeline

Image: Energean

UK-based international oil and gas exploration and production company Energean Oil & Gas and the Public Gas Corporation of Greece (DEPA) have agreed to cooperate to further support the EastMed Pipeline Project.The have signed a Letter of Intent (LoI) for the potential sale and purchase of…

Eni Extends Abo FPSO Contract

Image: BW Offshore

BW Offshore, a provider of floating production services to the oil and gas industry, has signed an extension agreement for Abo FPSO with Nigerian Agip Exploration Ltd, a subsidiary of ENI S.p.A.The contract is extended until end Q4 2020, with options until Q4 2021, said a press release from…

Yamal LNG Starts Using New Storage Tank

Image: Novatek

Novatek, the largest independent natural gas producer in Russia, started using a dedicated LNG transshipment tank at the Zeebrugge LNG terminal in Belgium.Novatek booked the tank’s capacity as part of a 20-year transshipment agreement between Yamal LNG’s unit Yamal Trade and Fluxys LNG.The…

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…

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.

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…

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…

DNV GL, DNO Pact on North Sea

(L-R) Geir Egil Eie, Head of Department, Subsea and Asset Risk Management, DNV GL – Oil & Gas, Arve Johan Kalleklev, Regional manager, Norway, DNV GL – Oil & Gas. Photos: DNV GL

The international accredited registrar and classification society DNV GL has been awarded a framework agreement by the Norwegian oil and gas operator DNO ASA to provide a broad portfolio of engineering and management support and verification services to support the operator, as it expands…

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…

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…

Liberia Lines Up 2020 Offshore Licence Round

Map: TGS

The Liberia Petroleum Regulatory Authority (LPRA), has announced the launch of the next licensing round, expected to commence in April 2020.In a meeting held between NOCAL, LPRA and TGS, the next steps were unanimously agreed, to allow the government of Liberia to conduct a successful license…

Enabling AI in E&P

© Dmitry / Adobe Stock

Oilfield services company Schlumberger and software firm Dataiku have teamed up to enable the exploration and production (E&P) industry to build and deploy their own artificial intelligence (AI) solutions across the full breadth of their upstream workflows within the DELFI cognitive E&P environment.Under an exclusive technology agreement…

PGNiG Inks Exploration Deal with ERU

(Photo: PGNiG)

Poland's dominant gas firm, state-run PGNiG, said on Monday it was signing a contract with Ukraine's ERU Management Services on cooperation on oil & gas extraction and exploration in Ukraine."This contract makes us an active player in the region's gas market and also contributes to the safety of Poland and all countries," said Polish presidential aide Krzysz

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…

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)…

China to Launch State Pipeline Group

© Xiangli / Adobe Stock

China plans to launch its long-awaited national oil and gas pipeline company on Monday, part of a sector-wide reform aimed at providing fair market access to infrastructure and boost investment in oil and gas production.Most of the country's pipeline infrastructure is controlled by energy giant PetroChina, CNPC's listed arm, and small, non state-owned oil an

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…

Croatia Awards Licence to INA for Gas and Oil Exploration

The Croatian government said on Thursday it had awarded a licence to energy group INA for gas and oil exploration and exploitation on one block in the country's central and mountainous southern area.It gave no financial details.Earlier this year Croatia received one bid from INA for exploration…

Oil Companies Swap Stakes in Mexico

© somartin / Adobe Stock

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…

Vietnam Inks Crude Oil Supply Deal with SOCAR

(File photo: BSR)

Vietnam's state-run Binh Son Refining and Petrochemical Co (BSR) has inked an agreement with Azeri state energy company SOCAR to buy five million barrels of crude in 2020, BSR said late on Friday.SOCAR Trading will provide five million barrels of Azeri Light crude to BSR's Dung Quat refinery during the first half of 2020, BSR said in a statement on its web s

Energean Targets Net Zero Carbon Output by 2050

(Photo: Energean)

Mediterranean-focused oil and gas producer Energean has joined a U.N.-backed initiative and committed to reducing its net carbon emissions to zero by 2050, its chief executive said on Monday.Oil and gas producers have come under heavy pressure in recent years to tackle greenhouse gas emissions as the world battles climate change.Energean's pledge came as the

Indonesia Mulls Production Contract Schemes

© Zerophoto / Adobe Stock

Indonesia considers allowing for production sharing oil and gas contracts optionsIndonesia is considering letting energy companies stick with the "cost recovery" system for oil and gas production sharing contracts, the energy minister said on Monday, after the government decided to adopt a new scheme in 2017.In 2017…

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…

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…

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…

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…

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.

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…

CNPC Inks Two Cooperation Deals in Kazakhstan

© Viorel Railean / Adobe Stock

China's CNPC said it has signed a Memorandum on expanding cooperation with KazMunayGas (KMG) and a Memorandum on natural gas cooperation with the Ministry of Energy of the Republic of Kazakhstan and KazTransGaz, respectively.Signing of the two agreements will further promote comprehensive cooperation between the two sides in oil and gas business…

Petrobras to be World's Largest Oil Producer

Graph: Rystad Energy

Brazil’s Petrobras is on track to become the world’s largest oil producer among publicly listed companies by 2030, based on Rystad Energy’s latest data and forecasts.Brazil’s biggest-ever oil auctions in November were generally deemed to be disappointing, receiving muted interest from international exploration and production companies.However…

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…

Hackers Demand $5M from Pemex

copyright Leo Lintang/AdobeStock

Hackers demanded about $5 million in bitcoin from Mexico's Pemex, they told Reuters on Tuesday, saying the state oil firm missed a special discount by not paying immediately after a cyberattack that fouled up the company's systems.The hack, which Pemex said it detected on Sunday, forced the company to shut down computers across Mexico…

Iran Finds New Oil Field of 53bln Barrels

Hassan Rouhani. Photo: Official website of the President of the Islamic Republic of Iran

Iran has discovered a new oil field in the country’s south with an estimated 50 billion barrels of crude oil in the oil-rich Khuzestan province, its president Hassan Rouhani said.However, the US  sanctions against Iranian oil could make it difficult for the oil to find its way to international…

Iran Finds New 53 Bln Barrel Oilfield

© Azat Valeev / Adobe Stock

Iran has discovered a new oilfield in the southwest of the country that has the potential to boost its reserves by about a third, President Hassan Rouhani said on Sunday."Workers and the exploration arm of the National Iranian Oil Company ...have found an oilfield with 53 billion barrels of reserves…

Shell Eyes Brazil Exploration Areas

The head of Royal Dutch Shell Plc in Brazil said on Friday that it currently made more sense for the company to look for exploration areas.Speaking after Brazil's disappointing oil auctions this week, which Shell chose to sit out, Andre Araujo said the Buzios block, where state-run oil company Petroleo Brasileiro SA won rights to extract proven reserves…

West of Shetlands Ups Offshore Production

Graph: GlobalData Plc

West of Shetland production likely to overtake North Sea for Shell and BP’s UK portfolios by 2020, said a report.Over the last four years oil and gas production in the West of Shetlands has risen and with that, a growing relevance for the biggest players still active in the UK continental shelf (UKCS)…

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

© Simon Mayer / Adobe Stock

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…

Aramco Signs 34 EPC Contracts Worth $18bn

Saudi Aramco delivers crude oil cargo at Pengerang Deepwater Terminal 2 in Malaysia. Photo: Saudi Aramco

Saudi Aramco has signed 34 engineering, procurement and construction (EPC) related contracts (worth over US$18bn) for projects such as the Marjan and Berri field incremental development program in Saudi Arabia, during Q3 2019, according to GlobalData.The most important is ADNOC’s US$3.6bn…

Ghana Energy Official Calls for Regulatory Changes

© Birgit / Adobe Stock

Ghana's Deputy Energy Minister Amin Adam said on Wednesday that domestic laws must be changed to allow companies already producing to further explore offshore areas for more oil."We're changing our law to allow companies that are already producing in a certain area to continue with exploration.

US Eyes India for Quantum Leap in LPG Exports

Pic: World Energy Consultants, LLC

Trump administration trade tariffs on China will need to cease and India will have to rely more on U.S. LPG supplies for the world to clear the quantum leap expected for U.S. LPG exports, says a study.The study of global seaborne LPG trade flows using Kpler LPG cargo tracking data questions…

India Gets 8 Bids for 7 Onshore Blocks

India has received 8 bids for 7 onshore oil and gas exploration blocks under the latest auction, a government statement said.State-run Oil and Natural Gas Corp has submitted bids for all 8 blocks.State-run Oil India has put in a bid for 1 block.(Reporting by Nidhi Verma; editing by David Evans)

E&P Companies Struggle on RoI

Graph: Rystad Energy

International  exploration & production (E&P) are struggling to make money from offshore investments made during the latest investment upturn, according to a new study by Rystad Energy.Rystad Energy has evaluated all offshore oil fields sanctioned since 2010 and ranked them by estimated value per barrel of oil (boe) under various oil price scenarios.

U.S. NatGas Prices Near 25-year Low as Glut Weighs

AdobeStock / © Kasto

In the shale field that helped launch the U.S. natural gas boom a decade ago, Chesapeake Energy Corp this month set aside its last drilling rig. The problem for the once No. 2 U.S. gas producer was not a lack of gas, but too much of it.A long, steady increase in U.S. gas production – much…

Oilfield Services Firms Moving Beyond Oil

Graph: Rystad Energy

Heavyweight oilfield service providers like Saipem and Baker Hughes are moving past just oil and gas projects and embracing more renewable energy projects going forward.In 2014, non-upstream oil and gas activities accounted for 22% of revenues among service suppliers. This share grew to 27% in 2018.According to Rystad Energy…

Premier Oilfield Group Names Keenan CEO

Paddy Keenan is the new CEO of Premier Oilfield Group (Photo: Premier Oilfield Group)

Premier Oilfield Group has appointed Patrick “Paddy” Keenan as CEO, beginning October 28, 2019, the oilfield services company announced on Tuesday.Keenan brings to the role experience in both the US and international oil and gas industries, having held leadership roles in a number of oilfield service companies…