Blockline and Associate Ltd are sellers of light crude oil and other petroleum products. We also sell and lease out marine equipments, construction machinery and other equipments.
We sell Crude Oil, D2, AGO and other Petroleum product such as:
Nigeria Bonny Light Crude Oil (BLCO, FLCO and ALCO, etc): We sell mostly on FOB, CIF, TTO and TTT/STS Basis.
Automotive Gas Oil (AGO) and D2: We sell mostly on CIF and TTT/STS.
Bitumen: We sell on CIF and FOB Basis
Marine Equipments/Machines:
We sell and lease all kinds of marine equipments/machines.
Well sell and lease all kinds of vessel e.g. oil tanker, cargo vessel, crew vessel etc.
We sell and lease tug-boats of all kinds.
We sell and lease barges and sea going barges.
We sell and lease dredgers, swamp-buggy, cranes of all kinds, tug-boats of all kinds bulldozers, etc.
Crushing machine of all kinds and screening plant: We sell on CIF and FOB Basis.
Steel and Metal:
We sell steel pipes and tubes of all kinds
We sell metals of all kinds.
GENERAL CONTRACTORS:
We are also into real estate, transportation, communications and more.
MILAN, Italy -- Eni has made an important gas and condensates discovery in the Nyonie Deep exploration prospect located in block D4, approximately 13 km from the coast of Gabon and 50 km from the capital city Libreville. Preliminary estimates suggest the new gas discovery is significant, with initial potential in place estimated at 500 MMboe.
BGP completes 3D seismic acquisition offshore Gabon for Perenco ZHUOZHOU, China BGP Pioneer successfully completed Perenco Oil & Gas Gabon 3D seismic acquisition project of approximately 1500 sq km offshore Gabon. The project was challenging as it included undershoot operations
American Sands Energy Corp., an oil sands exploration and development company operating in Utah, has completed the purchase of its pilot plant, used to demonstrate its water-free extraction of bitumen, or heavy oil, from leased oil sands deposits the firm intends to mine. The agreement with Elemax, Inc., included a combination of cash and stock to purchase the trailer-mounted mobile oil recovery system.
The pilot plant, which the company has successfully used to process up to 1 ton of oil sand per hour over multiple days, will be used by American Sands to evaluate other opportunities for hydrocarbon recovery projects, while the company moves toward initial production at its Sunnyside location.
Will Gibbs, chairman and CEO, said that the pilot plant “uses no water, consumes 60% less energy than traditional oil sands mining operations, requires no tailing ponds and produces no toxic byproducts.”
Gibbs added that, going forward, "In addition to the pilot plant being the engineering model for our initial planned 5,000 bpd plant in Utah, we also plan to work with industry partners around the world that can utilize our scalable technology to extract oil from solid materials such as oil sands, oil shale and other substances."
Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Blockline and Associate Ltd Nigeria Ltd, online.
LONDON (Bloomberg) -- Tullow Oil started burning gas off Ghana to sustain production at its largest project. “We are still injecting majority of the gas,” COO Paul McDade said in a phone interview. Flaring “is assisting us, while we are waiting for the gas plant” to “sustain target production,” he said.
HOUSTON -- ConocoPhillips has completed the transaction with Oando Energy Resources (OER), a subsidiary of Oando PLC, for the sale of its Nigeria upstream business for a total sales price, after customary adjustments, of $1.5 billion. The sales price is inclusive of $550 million of deposits received, approximately $900 million received at closing, plus $33 million in deferred payments. The sales price less the cash in the business at closing, approximately $100 million, generated net proceeds of approximately $1.4 billion, after customary adjustments. The company expects to recognize an after-tax gain of approximately $1.1 billion for the sale.?
JOHANNESBURG, South Africa (Bloomberg) -- SacOil Holdings Ltd. is in talks to buy what could be the South African oil and gas company’s first production asset, Chairman Tito Mboweni said. The Johannesburg-based company has “the possibility of an OML,” or oil-mining license, for a project that is in production phase in Nigeria, the continent’s largest economy and crude producer, Mboweni, 55, said in an interview. He declined to provide more detail on the stage of negotiations or the location of the asset.
South Sudan plans to resume crude output in Unity state by July after conflict in the world’s newest nation caused the northern region to freeze production.
Oil fields in Unity will gradually raise output toward the 50,000 bpd they produced before the December shutdown, Petroleum Ministry spokesman Nicodemus Ajak Bior said in an interview in the capital, Juba. A new refinery built by Russian and South Sudanese companies near the state capital, Bentiu, will begin producing 3,000 bpd of diesel in July, he said.
“In the beginning there will be a challenge to bring back production to the pre-shutdown levels,” Bior said. “People are working day and night to see to it that production has restarted.”
South Sudan’s oil output has fallen by about a third since fighting erupted on Dec. 15 between factions loyal to President Salva Kiir and his former deputy Riek Machar. Violence has left thousands of people dead and forced more than a million to flee their homes, according to the United Nations.
The country is currently producing about 160,000 bpd from Upper Nile, the only state still pumping crude, Bior said. Machar has vowed to seize key oil installations in a bid to starve the military of revenue.
Government forces retook Bentiu from rebels on Jan. 26 and the Juba-based Sudd Petroleum Operating Co. has assessed damage to the facilities, Bior said. China National Petroleum Corp., India’s Oil & Natural Gas Corp. and Petroliam Nasional Bhd., the main producers of South Sudan’s oil, evacuated employees from the country due to the fighting.
Construction is finished on Bentiu’s refinery, a JV by Russia’s Safinat and the state-owned Nile Petroleum Corp., Bior said. A later expansion will raise output to 5,000 bpd, he said, without specifying a timescale.
“The refinery is ready, however commissioning will commence once the oil field in Unity state resumes production,” Bior said.
Construction of a 10,000 bpd refinery in Melut county, Upper Nile state, has halted due to the conflict, Bior said. Texas-based Ventech Engineers International LLC was building the facility which is set to produce diesel, kerosene and fuel oil, he said.
South Sudan, which gained independence from Sudan in July 2011, has sub-Saharan Africa’s third-biggest oil reserves, according to BP Plc data.
The country’s low-sulfur crude is prized by Japanese buyers as a cleaner-burning fuel for power generation. The country has the capacity to produce as much as 350,000 to 400,000 bpd, Foreign Minister Barnaba Marial Benjamin said on Feb. 11.
Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Blockline and Associate Ltd Nigeria Ltd, online.
Ophir Energy completes acquisition of Junon 3D seismic survey offshore Seychelles WEST PERTH, Australia WHL Energy Limited (WHL Energy) reported the 1,528 sq km Junon 3D seismic survey has been completed. The specialist seismic acquisition vessel M V Polar Duchess
OMV is consolidating its commitment to oil and gas production in Lower Austria. The Weinviertel region is the third most important production site in the company’s global portfolio after the exploration and production areas in Romania and Norway.
In line with the corporate strategy, OMV has invested heavily in exploration and production in Lower Austria. Investment in Lower Austria is set to rise to around $550 million (EUR 400 million) in the next two years.
Until 2016 around 80% of OMV’s total investment of around EUR 3.9 bn worldwide will go on exploration and production.
OMV CEO Gerhard Roiss: "Anyone striving for international growth needs to have a strong foundation. For us this foundation is Lower Austria. This investment in exploration and production underlines the importance of this region in the OMV portfolio."
"We took the decision on these investments in Lower Austria last year. Resources are needed in order to counter the natural depletion and stabilize production in what are mostly mature fields. Without these investments it wouldn’t be possible for us to maintain production levels", said OMV CEO Gerhard Roiss.
Last year the region produced 35,000 boed. Despite the natural depletion of resources, this level should remain stable in 2014 as the investment is set to balance out the natural depletion of 10% per year.
Drilling additional wells in Lower Austria is the key to securing and increasing production. Up to 24 drillings will be realized in Weinviertel in 2014, with 20 more planned for 2015 and 2016, respectively. 14 projects involve exploration wells with additional production potential.
Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Blockline and Associate Ltd Nigeria Ltd, online.
GMS confirms contract extensions for two SESV vessels in the MENA region ABU DHABI Gulf Marine Services (GMS), confirmed that contract extensions have been exercised for two of its Small Class vessels in the MENA region. The first extension is
Cairn Energy resumes drilling at the FAN 1 well offshore Senegal MELBOURNE, Australia FAR Ltd (FAR) reported that drilling has resumed on the FAN 1 well offshore Senegal. FAR had previously stated a modification to the Senegal drilling programme in
Wintershall Norge, operator of production licence 475, has concluded the drilling of appraisal wells 6407/1-7 and 6407/1-7 A.
The wells were drilled about 8 km northeast of the Tyrihans field and 5 km northeast of the 6407/1-6 S gas condensate discovery in production licence 475. The reservoir in this discovery consists of thin sandstone layers from the Lange formation in the Lower Cretaceous. The discovery was made in January 2013. The resource estimate for the discovery was then between 3 and 20 million standard cubic meter of recoverable oil equivalents.
The objective of well 6407/1-7 was to delineate the 6407/1-6 gas/condensate discovery higher up in the structure. A new appraisal well, 6407/1-7 A, was therefore drilled downflank to investigate reservoir thickness and lithology.
Well 6407/1-7 proved gas/condensate in two sandstone intervals with a net vertical thickness of 12 m and a gross reservoir thickness of 16 m. Well 6407/1-7 A proved gas/condensate in two sandstone intervals with a vertical thickness of 7 m and a gross reservoir thickness of 13 m.
The difference in pressure measurements between wells 6407/1-7, 6407/1-7 A and the discovery well 6407/1-6 S indicates that there is no communication between the appraisal wells and the 6407/1-6 S discovery. Well 6407/1-7 has therefore proven a separate discovery, and will be reclassified as a wildcat well.
Preliminary estimates of the size of the new gas/condensate discovery range from 1 to 4 million standard cubic meter of recoverable oil equivalents.
The resource estimate for the 6407/1-6 S gas/condensate discovery has now been downgraded to between 1 and 6 million standard cubic meter of recoverable oil equivalents. The licensees will consider the discoveries in conjunction with other nearby discoveries as regards future development.
This is the second and third exploration well in production licence 475. The production licence was awarded on 29 February 2008 (APA 2007).
Wells 6407/1-7 and 6407/1-7 A were drilled to vertical depths of 3,345 and 3,311 m, respectively, below the sea surface, the latter with a measured depth of 3,571 m. Both wells were terminated in the Lange formation in the Early Cretaceous. Water depth at the site is 280 m. The well has been permanently plugged and abandoned.
Wells 6407/1-7 and 6407/1-7 A were drilled by the Borgland Dolphin drilling facility, which will now proceed to production licence 550 in the northern part of the North Sea to drill wildcat well 31/2-21 S, where Tullow Oil Norge is the operator.
Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Blockline and Associate Ltd Nigeria Ltd, online.
AWE reported that the Pateke-4H development well, including the sidetrack section, was at a measured depth of 4,083 m with the 9 5/8 in. casing successfully installed and cemented to a depth of 3,669 m. Preparations are under way for the drilling of the next interval using an 8 ½ in. drilling assembly to drill horizontally through the reservoir section to a planned measured depth of 5,361 m.
The Kapuni F10 sandstone objective has already been intersected on prognosis with oil shows and real time logging measurements indicating the likely presence of an oil bearing reservoir. The commercial significance of the oil shows will not be clear until the horizontal drilling is completed and the reservoir size and quality is fully assessed.
The Pateke-4H development well is in PMP 38158 and AWE is the operator. Located in the offshore Taranaki basin, New Zealand, PMP 38158 contains the Tui, Amokura and Pateke fields and has been producing since 2007.
Pateke-4H is targeting a mapped northern extension of the currently producing Pateke field. The well is being drilled in water depth of approximately 124 m with a planned total measured depth of 5,361 m, including a 1,272 m horizontal section. If successful, the well will be completed for subsequent tie-back to the Tui FPSO (Umuroa) for production in 2015.
Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Blockline and Associate Ltd Nigeria Ltd, online.
Shell announced April 7 that the Majnoon oil field it operates, in partnership with South Oil Company (SOC), Petronas and Missan Oil, in Southern Iraq has successfully exported its first shipment of crude oil to Shell trading, a significant milestone for the field.
The achievement comes as production at Majnoon has reached a current average of 210,000 bopd, well in excess of the 175,000 bopd First Commercial Production target, which initiates the commencement of cost recovery and was achieved after extensive rehabilitation works at the field.
Shell and its partners successfully recommenced production from Majnoon in September 2013, following the completion of major overhaul works, including 28 sq km of mine clearance, extensive refurbishment of brownfield facilities to meet safety standards, and the construction of a new greenfield central processing facility - the largest to be built in Iraq in the last decade - to allow for increased production capacity. To date, 18 new wells have been drilled at the field.
Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Blockline and Associate Ltd Nigeria Ltd, online.
Royal Dutch Shell Plc postponed a project designed to boost natural gas recovery from its Ormen Lange deposit offshore Norway, citing higher costs and doubts on reserves.
“The oil and gas industry has a cost challenge,” said Odin Estensen, chairman of the Ormen Lange Management Committee, in a statement. “This, in combination with the maturity and complexity of the concepts and the production volume uncertainty, makes the project no longer economically feasible.”
Shell and other oil companies including Statoil ASA are cutting spending amid rising costs and stagnating oil and gas prices. The delay at Ormen Lange, which delivers as much as 20% of the UK’s gas consumption, comes as the standoff between Russia and the European Union over the annexation of Crimea has raised concerns over fuel supplies to Europe.
The delay on the compression project was supported by partners Statoil, Dong Energy A/S and Exxon Mobil Corp. It was opposed by Norway’s state-owned Petoro AS, also a partner. Prime Minister Erna Solberg this month warned companies against “unacceptable” delays to recovery projects, saying they risk damaging the goodwill they enjoy from the government.
Shell shares dropped 0.6% to 2,200 pence as of 10:18 a.m. in London. Statoil fell 0.8% to 165.4 in Oslo.
The partners remain committed to maximizing recovery at Ormen Lange “in a sustainable manner,” said Shell, the operator of Norway’s second-largest gas field.
Norway, western Europe’s largest oil and gas producer, has seen output drop 20% over the past decade. The government is pushing for companies to maximize recovery from existing fields instead of moving on to more profitable projects. Statoil, Norway’s largest producer, has also announced it’s reviewing plans to build a new platform at the North Sea Snorre deposit to extract an additional 300 MMbbl of oil.
Shell said the timing of the Ormen Lange compression project wasn’t critical to the ultimate recovery rate at the field. “We’re fully aligned to the government’s steer to increase the recovery factor,” Kitty Eide, a company spokeswoman, said in an emailed reply to questions.
In a letter to the government in February, Shell said that a tax increase last year on oil and gas companies will make the Ormen Lange project less profitable, echoing other companies that have warned the change would hurt marginal projects.
“It’s not a deciding factor, but did not help the economics of the project,” Eide said. The company declined to provide details on investment or production-volume estimates for the compression project, or when the license partners expected to make a decision on a future project, she said.
Benchmark gas prices in the UK, where Ormen Lange’s production is shipped through the 1,200-km (745 mi) Langeled pipe, the world’s second-longest pipeline, have fallen 24% so far this year.
The field was discovered in the Moere basin of the Norwegian Sea in 1997 and started producing 10 years later. Output reached 21.5 Bcm of gas last year, a fifth of Norway’s total production. Remaining reserves were estimated at 194.5 Bcm of gas at the end of 2013, down from an initial 314.6 Bcm, according to the Norwegian Petroleum Directorate.
The project delay has no implications for current production, Shell’s Eide said.
Troll, Norway’s largest gas field, has remaining reserves of 955 Bcm. Troll produced 29.6 Bcm of the fuel last year.
Shell and its partners had been studying two offshore compression solutions -- either a subsea concept or a platform -- to compensate for declining pressure over time.
Petoro, which manages Norway’s direct stakes in offshore fields, shares Shell’s view that the current concepts for compression were unprofitable, making a postponement reasonable, Sveinung Sletten, a spokesman, said by phone. The company didn’t support the operator’s decision because it lacked clear plans for future compression projects, he said.
“We haven’t been presented with good enough plans for how the operator will continue its work on compression,” he said. “We want a stronger commitment, and we want sufficient resources allocated to the upcoming work to secure the extraction of remaining profitable resources at Ormen Lange.”
Oslo-based Aker Solutions ASA, which designed a pilot project for Ormen Lange seabed compression, said it wouldn’t comment on the internal decision-making process. The company also worked on the world’s first subsea gas compression facility at Statoil’s Aasgard field in the Norwegian Sea.
“Although delayed, subsea compression at Ormen Lange remains an opportunity for us in the future,” Bunny Nooryani, an Aker Solutions spokeswoman, said in an email.
Norwegian weekly Teknisk Ukeblad reported last month that FMC Corp. had beaten Aker Solutions to an initial contract on the Ormen Lange compression system.
Aker Solutions slid 2.3% to 90.3 kroner in Oslo trading.
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HOUSTON -- Harvest Natural Resources has signed a declaration of commerciality (DOC) with the Gabonese Republic pertaining to the Dussafu Block offshore Gabon. Furthermore, on July 17, 2014, Gabon awarded an exclusive exploitation authorization (EEA) for the development and exploitation of oil discoveries on the Dussafu Block.
MADRID, Spain (Bloomberg) -- Repsol SA’s second-quarter profit beat analyst estimates as bigger refining margins and output from new wells helped Spain’s largest oil producer counter stoppages due to rebel hostilities in Libya. Adjusted net income was 390 million euros ($524 million) compared with 401 million euros a year earlier, the company said in a statement July 24.
GDI awards N KOM contracts worth $110 mn DOHA Gulf Drilling International (GDI) Limited, a subsidiary of Gulf International Services (GIS), has awarded two contracts worth $110 million to Nakilat Keppel Offshore & Marine (N KOM), a joint venture shipyard
Oil India Ltd. is studying an acquisition of Nigerian oil and gas assets owned by Royal Dutch Shell Plc, according to people familiar with the matter.
Oil India is weighing a bid for stakes Shell holds in some onshore blocks, valued at as much as $2 billion, the people said. It will partner with India’s Sandesara Group on the potential purchase, according to the people, who asked not to be identified as the deliberations are private.
The explorer joins Dangote Group, controlled by Africa’s richest man, and Seplat Petroleum Development Co. in seeking to acquire Nigerian assets being sold by Western rivals. Shell and Chevron Corp. are divesting fields in the country amid persistent violence and crude theft in the oil-rich Niger River delta.
India’s government-run oil companies are building on their record $5.5 billion of acquisitions last year to secure supplies for Asia’s second-biggest energy consumer. Oil India, which had 124.9 billion rupees of cash at the end of September, has purchased stakes in gas fields in Mozambique and shale assets in the U.S. over the past two years.
Oil India Chairman S.K. Srivastava and finance director Rupshikha Saikia Borah didn’t answer two calls each to their mobile phones seeking comment. Sandesara Group Chairman Nitin Sandesara didn’t immediately respond to an email and phone call to his office.
Sterling Energy & Exploration Production Ltd., a unit of Sandesara Group, has more than 250 MMbbl of certified oil reserves and 1 Tcf of natural gas reserves in the Niger Delta, according to its website. Nigeria pumped about 2.1 MMbpd last month, data compiled by Bloomberg show.
Shell said in October divestments in India have been deferred to 2014. The Anglo-Dutch company’s earnings in the country were curbed by almost $1 billion last year because of oil theft and a LNG export blockade by the government, CFO Simon Henry said March 13.
Earlier this year, Oil & Natural Gas Corp. and Oil India paid $2.5 billion for a 10% stake in a Mozambique natural gas field. Securing fuel supplies is crucial for Prime Minister Manmohan Singh as India relies on imports to meet about three-quarters of its oil requirements.
Seplat Petroleum, based in Lagos, and its partners are bidding for two Nigerian oil and gas permits Shell is selling, Chairman A.B.C. Orjiako said March 11. Dangote Group is in talks to purchase onshore oil blocks in the country as international companies sell assets, Group Executive Director said in January.
Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Blockline and Associate Ltd Nigeria Ltd, online.
ROME (Bloomberg) -- Eni SpA crews in Angola, Africa’s second-largest crude oil producer, upgraded a production vessel for new pumping this year as the southwest African country targets output rivaling its bigger competitor, Nigeria. Eni plans to start production within five months as operator of Block 15-06’s West Hub fields, estimated to hold reserves of 200 MMbbl, and boost flows to 80,000 bpd, documents on the Rome-based company’s website show.
MAPUTO, Mozambique (Bloomberg) -- Mozambique’s state petroleum company is building a port city to help develop the largest natural-gas discoveries in a decade offshore the southern African country. The 18,000-hectare (44,500-acre) Palma development in the country’s northern Cabo Delgado province will feature residences, industry, stores, parks, farming and tourist attractions constructed through a unit, Empresa Nacional de Hidrocarbonetos EP, or ENH, said in a statement. Public hearings on the proposal are being held today, July 23, in Maputo, the capital, after previous sessions in Pemba and Palma, it said.
Statoil ASA expects to decrease carbon-dioxide emissions per barrel from its Canadian oil-sands projects by 20% within six years, responding to environmental criticism of the crude production method.
Norway’s biggest energy producer said yesterday that carbon intensity from its oil-sands operations rose 25% from a year earlier to 69.7 kilograms of carbon dioxide per barrel.
Statoil is applying solvents to its steam-assisted techniques and will use valves to better direct steam to areas that need it, Staale Tungesvik, president of Canadian operations, said in a telephone interview. The Stavanger-based company also is considering different drilling techniques and more efficient water-recycling processes.
“The difference between oil sands and conventional oil production is that we use gas to heat water to create steam, so the footprint of CO2 is very much out of the generation of steam,” Tungesvik said. “We believe that we have identified technologies that will help us reach our target of reducing CO2 intensity by 20% by 2020.”
Emissions from Alberta’s oil sands have become a focal point for opposition to Calgary-based TransCanada Corp.’s Keystone XL pipeline, which would carry bitumen from the oil sands to U.S. Gulf Coast refineries. Opponents like billionaire Tom Steyer say the line would encourage companies to exploit the world’s third-largest crude reserves, unlocking vast amounts of carbon and accelerating climate change.
Carbon emissions from the oil sands won’t improve without new government policy, said PJ Partington, an Ottawa-based analyst at the Pembina Institute, an environmental think tank.
“Without more stringent policies to drive innovation and deployment of new technologies, carbon intensity is expected to remain flat for the foreseeable future,” Partington said by phone.
The intensity of greenhouse gases in oil-sands emissions fell 7.7% from 2008 to 2012, the Canadian Association of Petroleum Producers, an industry group, said in a Nov. 5 report.
Oil-sands crude is on average 9% more carbon intensive than the U.S. average on a wells-to-wheels basis, which measures CO2 emissions from the start of oil production through to combustion, according to the CAPP report.
Statoil’s carbon emissions from oil-sands production will likely decline this year, Tungesvik said. “With stable production and new technology, I would expect we’ll have lower numbers this year than we had last year,” he said.
By 2025, the Norwegian company has voluntarily targeted to reduce CO2 intensity at its oil-sands operations by 40%.
“It’s about earning more money,” Tungesvik said. “And we think that should go hand-in-hand to improve environmental impact.”
Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Blockline and Associate Ltd Nigeria Ltd, online.
TRIPOLI, Libya (Bloomberg) -- Libya is preparing a new pricing strategy for its crude exports after a sales offer last week failed because potential buyers offered “unacceptable” prices, according to state-run National Oil Corp. Libya plans to offer different crude prices before the end of next month that will compensate customers for the additional risk of loading oil in the country, Ahmed Shawki, marketing director at National Oil, said by phone from Tripoli. The country reduced July export prices for seven grades of crude by as much as $1.90 a barrel, according to a price list from National Oil obtained by Bloomberg News on July 18.
CAPE TOWN, South Africa (Bloomberg) -- A South African environmental group renewed its call for a moratorium on shale-gas fracing, as the government moves closer to a decision on whether to allow the process opponents say imperils water quality.
Gazprombank’s GPB Global signs oil exploration deal in Ethiopia WILLIAM DAVISON MOSCOW (Bloomberg) GPB Global Resources, a unit of Russia’s state owned Gazprombank Group, may invest about $60 million searching for petroleum in northeastern Ethiopia, Executive Director for Corporate Communications
CEPSA has acquired a 30% stake in a hydrocarbon exploration block off the Liberian coast in West Africa. Block LB-10 is operated by Anadarko Liberia Block 10 Company, a wholly-owned subsidiary of Anadarko Petroleum headquartered in The Woodlands, Texas.
The farmout agreement provides, in part, that CEPSA will participate in the drilling of two exploratory wells before August 2016. The block is in a deepwater area, with depths of approximately between 1,000 and 2,000 m. Anadarko has extensive experience as an operator in this basin. Other companies with participation in the block are the London-based company Liberia Japan Petroleum and Spanish integrated Repsol.
This acquisition has enabled CEPSA to add to its offshore portfolio, which already includes two exploratory blocks in Brazil and one in Suriname and exploration and production blocks in Thailand and Malaysia.
The operation is part of CEPSA' s expansion strategy in exploration and production. It will also be an opportunity to increase our technical capacities in the high potential offshore area in West Africa.
Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Blockline and Associate Ltd Nigeria Ltd, online.
Serinus Energy commences drilling Winstar 12bis development well CALGARY Serinus Energy Inc (Serinus) reported that the Winstar 12bis (WIN 12bis) development well has commenced drilling. WIN 12bis is located in the eastern portion of the Sabria Field in central Tunisia.
Eni signs deal to expand oil, gas exploration in Congo BRAZZAVILLE – The Congolese Minister of hydrocarbons, Andre Raphael Loemba, and Eni CEO, Claudio Descalzi, in the presence of President of Congo Dennis Sassou Nguesso and the Italian Prime Minister,
Energen agreed to sell its Alabama natural gas utility to the Laclede Group for $1.28 bn in cash, becoming the latest energy company to shed assets to raise money for exploration and production.
The sale of Alabama Gas is valued at $1.6 bn in total, including about $320 mn of debt, according to a statement from Birmingham, Alabama-based Energen.Energen’s after-tax proceeds are estimated to be $1.1 bn after drilling costs.
Energen will use cash from the deal to reduce short-term debt, allowing it to accelerate drilling in West Texas’ Permian basin. The purchase gives St.Louis-based Laclede, a utility owner that serves 1.13 mn customers in Missouri, the largest gas distributor in Alabama.
The deal “allows Energen to clarify its corporate structure by becoming a pure exploration and production company, a trend being rewarded by the financial markets,” James McManus, Energen’s Chairman and CEO, said in the statement.
The unit, known as Alagasco, serves 422,000 homes and businesses, according to Energen’s website.
Laclede, in a separate statement, said the effective purchase price is $1.34 bn, after taking into account the present value, amounting to approximately $260 mn, of tax benefits from the transaction.
Energen fell 1.4% to $80.37 at the close in New York.Laclede dropped 2.4% to $45.11, the biggest decline since June 20.
The deal is expected to close this year.
Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Blockline and Associate Ltd Nigeria Ltd, online.
ConocoPhillips has reaffirmed its objective to deliver double-digit returns annually to shareholders at its Analyst Meeting held at the New York Stock Exchange. Members of the company’s executive leadership team outlined ConocoPhillips’ goal to consistently deliver 3 to 5% compound annual growth in production and margins.
ConocoPhillips also highlighted its substantial U.S. unconventional position and announced an increase of its estimated resource base in the prolific Eagle Ford play. Based on its prime acreage position and technical knowledge, the company has increased its estimates from 1.8 billion to 2.5 billion bbl of oil in place. Production is also expected to increase from current volumes to more than 250,000 boed by 2017.
“ConocoPhillips’ wells in the Eagle Ford have the highest oil rates per well and are leading the industry in value. This is attributable not only to the fact that we are in the best part of the play, but also to our relentless focus on technical innovation and drilling and completion cost efficiencies,” said Chairman and CEO Ryan Lance. “We are applying these benefits and efficiencies across our unconventional portfolio in the Bakken, Permian, Niobrara, Canada, and outside of North America. We believe our unconventional resource base is unmatched, particularly for a company our size."
“Beginning this year, we will be growing production and margins across our diverse asset base, and allocating 95% of our annual capital expenditures to growth projects and programs with margins that are higher than our average margin today. We believe we have the asset base, technical capability, world-class workforce and financial strength to deliver on our unique value proposition,” Lance added.
Since 2009, ConocoPhillips has added 6.7 billion boe of resources through a diverse and balanced exploration and appraisal portfolio of high-value opportunities. Among the high-quality prospects are four large U.S. Gulf of Mexico discoveries – Tiber, Gila, Shenandoah and Coronado. Further activity is targeting offshore prospects in Australia, Angola and Senegal; conventional exploration in Norway and Indonesia; and unconventional exploration in North America, Poland and Colombia.
In its first two years as an E&P company, ConocoPhillips generated proceeds of $12.4 billion from non-core asset sales, advanced new growth projects, achieved visible margin growth, accessed new organic growth opportunities, participated in successful deepwater Gulf of Mexico discoveries and maintained a strong dividend.
Over the next several years, ConocoPhillips plans to execute a disciplined capital program of approximately $16 billion per year and achieve the company’s organic reserve replacement target of more than 100%. The company expects to generate 3 to 5% compound annual production growth and margin growth from major development programs and projects already under way in the U.S. Lower 48, Canadian oil sands, UK and Norwegian North Sea, Malaysia and Australia.
Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Blockline and Associate Ltd Nigeria Ltd, online.
Chevron Corporation has confirmed that subsidiaries of the company have signed agreements with the Argentine oil company YPF S.A. to continue development of shale oil and gas resources from the Vaca Muerta formation located in the Neuquén province in Argentina.
"This is a significant step in our subsidiaries' joint efforts with YPF to develop one of the most exciting shale plays in the world today," said George Kirkland, vice chairman of Chevron Corporation. "Vaca Muerta could become an important contributor to Chevron' s long term production growth."
The agreements build off the progress made with the drilling program begun in 2013 and call for continued investment toward large-scale drilling and production in the 96,000-acre (388-sq km) Loma Campana concession. The agreements also call for exploration of shale oil and gas resources in the 49,400-acre (200-sq km) Narambuena area located about 70 mi (100 km) north of Loma Campana in the Chihuido de la Sierra Negra concession, one of the main producing areas in the Neuquén basin of west-central Argentina.
"YPF is a reliable partner and operator that is advancing the project in the right direction," said Ali Moshiri, president of Chevron Africa and Latin America Exploration and Production Company. "We are pleased with the progress achieved so far and look forward to continuing to provide our technical expertise and investment to help Argentina achieve its goal of energy self-sufficiency."
Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Blockline and Associate Ltd Nigeria Ltd, online.
AGR secures well management contract for Hunt Oil’s first operation in Benin OSLO AGR has been awarded a contract to provide Well Project Management services to Dallas based ‘Hunt Oil’ for the drilling of one exploration well plus one future
Mubadala Petroleum signs cooperation agreement with Somalia ABU DHABHI Mubadala Petroleum has signed a cooperation agreement with the Ministry of Petroleum and Mineral Resources of the Federal Republic of Somalia. During the first half of 2014, a high level engagement
Eco Atlantic to farm out stake in block 2012A off Namibia to Tullow Kudu TORONTO Eco Atlantic Oil & Gas Ltd (Eco Atlantic) reported that it has executed a Farm out agreement (the Agreement) with Tullow Kudu Limited, a wholly
Foster Wheeler wins Hamada oilfield FEED contract in Libya ZUG Foster Wheeler AG reported that a subsidiary of its Global Engineering and Construction Group, in joint venture with Taknia Libya Engineering Company (Taknia), has been awarded a front end engineering
Parex Resources Inc., the Canadian oil producer operating in Latin America, is focusing its growth efforts on Colombia as it aims to double production in the next five years.
CEO Wayne Foo is planning more land and asset acquisitions to boost the company’s output to as much as 50,000 bpd, he said in an interview at Parex’s headquarters in Calgary yesterday. Colombia’s stable government and well-understood oil resources make it a better investment than other countries in the region such as Argentina, Foo said.
“To be relevant in the market, you really have to be in the range of 25,000 to 50,000 barrels a day,” he said. Production will grow as much as 20% annually from 17,500 to 18,500 bpd this year, he said.
Parex began as an oil producer in Argentina in 2003. The Colombian business was spun off in 2009 and based in Calgary. One of about 10 Canadian energy producers operating in Colombia, Parex produces both light and medium crude in the Llanos basin.
Parex’s shares have more than doubled in the past 12 months, valuing the company at about C$1 billion ($911 million). The stock declined 2.1% yesterday, closing at C$9.50 in Toronto.
“They still have upside,” said John Stephenson, who helps oversee about C$3.1 billion at First Asset Investment Management Inc. in Toronto. “Historically they have been drilling targets that were small and they’re now going after bigger plays to add resource.”
The Canadian company has focused on purchasing land near its current holdings in the Llanos basin, boosting its position to about 2 million acres (809,371 hectares) from 250,000 acres in 2009.
Parex’s largest non-state-owned competitor is Pacific Rubiales Energy Co., a Bogota and Toronto-listed company with a market value of about C$6.7 billion. Colombia in February produced about 1 MMbpd of crude, according to the country’s Mines and Energy Ministry.
Oil transportation infrastructure has caught up with production, helping to relieve a bottleneck that existed for producers a couple of years ago, said Parex V.P. Mike Kruchten. Last year the Bicentenario line began operating, while the Ocensa pipeline has been expanded. Calgary-based Enbridge Inc. is also considering building a line to Colombia’s Pacific coast.
“At present there’s lots of excess capacity” in pipelines, said Foo.
Parex earns about 3% to 4% less on its Colombian oil than Brent crude, the global benchmark, said Kruchten. Brent crude for May settlement traded at about $106 a barrel on April 7.
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HOUSTON -- Deep Down, a services company specializing in complex deepwater and ultra-deepwater oil production distribution system support services, has been awarded a contract to supply vessel-based equipment and personnel at an umbilical and flexible flow line recovery and re-installation project located offshore West Africa.
ABERDEEN, United Kingdom -- KCA Deutag has been awarded a $170-million contract by Sonangol Pesquisa e Produção, S.A., for the provision of the Ben Rinnes jackup rig in Angola. The two-year agreement, which comes with a two-year extension option, will see KCA Deutag’s offshore division provide drilling and completion services, in various offshore locations in Angola.
Deep Down secures work offshore West Africa HOUSTON Deep Down Inc (Deep Down), reported that it has been awarded a contract to supply vessel based equipment and personnel at an umbilical and flexible flow line recovery and re installation project
Roc Oil Co. reported the farm in to a Production Sharing Contract (PSC), which includes three fields D35, D21 and J4, located offshore Malaysia in water depths of approximately 50 m.
The fields are currently 100% owned and operated by Petronas Carigali and ROC has farmed into a 50% participating interest. The fields are in production with a combined daily oil rate of approximately 10,000 bopd and gas sales of approximately 17 MMscfd gross working interest. ROC’s economic interest (50%) of the 2P reserves from the Fields is 8.7 MMboe.
Roc Oil Co’s CEO Alan Linn said: “The farm in is an excellent fit for our business and in line with our Asian development strategy, we expect the fields to become cornerstone development assets within our growing regional portfolio. The fields, particularly D35, contain material in place oil and gas volumes, and overall field recovery is expected to benefit significantly from the introduction of secondary and tertiary recovery technologies. The fields provide a portfolio of immediately bookable reserves plus contingent and prospective resources, which combined materially add to and extend the reserves and resources life of ROC.
"The farm in agreement includes amendments to the existing PSC, effective from January 1, 2014, until December 2034.The PSC terms are designed for field redevelopment and enhanced oil recovery (EOR) to commercially encourage progressive incremental oil development over the full life of the PSC. ROC’s experience in the redevelopment of the Zhao Dong fields, offshore Bohai Bay, China, is a good analogy for the redevelopment potential of the fields.
"Since 2006, ROC has doubled the recoverable reserves in Zhao Dong with a combination of reservoir development optimisation, facilities debottlenecking, capacity enhancement and the introduction of low cost drilling for production and injection wells designed to maximise recovery from compartmentalised reservoirs. Petronas Carigali and ROC will work together to unlock the Fields’ redevelopment potential and our track record has been key in bringing this significant redevelopment opportunity to ROC.”
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TRIPOLI, Libya (Bloomberg) -- Two ports in eastern Libya that reopened this month after a yearlong protest may still be weeks from exporting crude because the terminals need maintenance work first, according to a ministry official. The nation’s government gave the go-ahead on July 6 for operations to resume at Es Sider and Ras Lanuf, the largest and third-largest terminals. Work on the two facilities may take until the beginning of August, Oil Ministry Measurement Director Ibrahim Al Awami said July 16.
Saipem wins contracts for FPSO' s in Brazil, Angola worth a total $600 mn SAN DONATO MILANESE Saipem has been awarded contracts for the extension of leasing and upgrading works of the Cidade de Vitoria FPSO (Floating Production Storage and Offloading
Kentz Corporation Limited has announced the award of a $570m (AUS$615m) contract to it' s Australian subsidiary for the electrical and instrumentation (E&I) construction packages for the Ichthys Project Onshore LNG Facilities in Darwin, Australia.
This contract was awarded by JKC Australia LNG, a JV between JGC, KBR and Chiyoda. JKC is responsible for the engineering, procurement and construction of the Ichthys LNG Project' s onshore facilities, including the gas processing plant at Blaydin Point.
The contract, for which site preparation work will commence in August 2014, has a duration of 30 months and will provide more than 1,200 jobs for construction personnel. The contract scope includes the provision of services for site wide E&I installation on a unit rate re-measurable basis for the two process trains and utilities, and additional pre-commissioning and commissioning expertise.
The Ichthys LNG Project is a JV between INPEX group companies (the operator), major partner Total and the Australian subsidiaries of Tokyo Gas, Osaka Gas, Chubu Electric Power and Toho Gas. It is expected to produce 8.4 million tonnes of LNG and 1.6 million tonnes of LPG per annum, along with approximately 100,000 barrels of condensate per day at peak.
Michael Murphy, Group President Construction and TSS of Kentz, commented: "It is extremely pleasing to secure a further major construction contract on the Ichthys Project Onshore LNG Facilities, in this instance for the E&I construction contract."
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Tangiers Petroleum provides TAO 1 operational update WEST PERTH Tangiers Petroleum Limited (Tangiers) provided an update on the drilling of the TAO 1 exploration well, located offshore Morocco. No major operational issues have occurred to date and the well is
Gazprom Neft, operator of the Badra oilfield development project, has appointed a contractor to lay the pipeline connecting the field to the power station in Zubaidiah, Wasit Province. The tender was won by Pakistani company Techno Engineering Services (Pvt.) Ltd.
In line with the contract, Techno Engineering Services will produce the designs, supply the equipment and materials, and carry out construction of the pipeline. The pipeline - which will be nearly 100-km long and have a daily capacity of 4.4 million cubic meters (circa 1.6 Bcm per year) - is scheduled to begin operations in 2015.
Under Gazprom Neft’s contract with the Iraqi government for the development of the Badra oil field, investors are to be compensated for costs related to infrastructure construction.
Gas supply from the Badra oil field will enhance the Zubaidiah power station’s daily power output and provide a 24-hour power supply to the city of Kut, which currently has electricity supplied for only 16 hours per day. Some of the extracted gas will be used to provide electricity to the Badra oil fields themselves.
In March, Gazprom Neft completed testing on a second well at Badra. The laying and testing of the oil pipeline to the Gharraf oilfield was completed in February, connecting the section to Iraq’s main pipeline system. The construction of the first phase of a central gathering station point with a capacity of 60,000 bpd is nearing completion. Work has also started on a gas treatment plant with the capacity to process 1.5 Bcm per year.
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LONDON -- Tullow Oil has announced that the Gardim-1 exploration well, drilled on the eastern flank of the Chew Bahir basin in the South Omo license, onshore Ethiopia, has reached a total depth of 2,468 m in basement, without encountering commercial oil. The well intersected lacustrine and volcanic formations, similar to those found in the Shimela-1 well on the north-western flank of the basin. Minor intervals with thermogenic gas shows were intersected just above basement. The well will be plugged and abandoned and drilling operations will now be demobilized whilst these results are integrated into the regional basin model.
LONDON (Bloomberg) -- Africa has surpassed the Middle East as the oil-and-gas producing region that attracts the second-highest number of the best-paid staff, international advisory firm Von Essen Group said. Africa accounts for 13% of advertised roles that pay more than $170,000 for oil and gas experts, second only to Europe, London-based Von Essen said in an emailed statement.
AJDABIYA, Libya (Bloomberg) -- Rebels in Libya’s east committed to keeping open the country’s largest oil port, Es Sider, and dissociated themselves from a protest that shut a smaller crude export terminal. Brent traded near the lowest in three months. “This incident, in the port of Brega, has no impact on the agreement with the government to open Es Sider and Ras Lanuf,” said Ali al-Hasy, a spokesman for the self-declared Executive Office for the Barqa region. “We stand by the agreement with the government. Es Sider and Ras Lanuf will stay open.”
African Petroleum to farm out interest in block CI 509 offshore Cote d’Ivoire LONDON African Petroleum Corporation (African Petroleum) reported that it has entered into an agreement with Buried Hill Africa Limited (Buried Hill) to farm out a 10% interest
Petronas has launched the hull of its first floating LNG (PFLNG 1) facility at the Daewoo Shipbuilding & Marine Engineering (DSME) shipyard in Okpo, South Korea. The facility, scheduled to be completed in Quarter 4 of 2015, will be the world’s first floating LNG facility in operation.
The launch, which took place on April 5, 2014, saw the 365 m long hull equivalent to three NFL football fields in length float out at a dock and launched to anchor at a quayside of DSME shipyard where the facility is being constructed.This phase marks another milestone in the development of the facility and signifies the near completion of hull construction works, less than 10 months since the cutting of the first steel in June 2013.
Petronas’ VP Datuk Abdullah Karim said, “It is an impressive achievement that we launch the hull within a short time frame following the keel laying process that began on 6 January 2014.In addition, the project has also achieved more than 5.5 million total safe man-hours since the project commenced in March 2012, with no occurrence of loss time incidents at the project site.”
“Petronas is currently working closely with its strategic partners, Technip and Daewoo Shipbuilding & Marine Engineering to ensure that the project is delivered safely, in accordance to project specification and quality, within cost and on schedule,” he added.
The PFLNG1 vessel, also known as PFLNG SATU, will be moored in Malaysia’s Kanowit gas field, 180 km offshore Sarawak and will produce 1.2 mtpy of LNG.It will play a significant role in Petronas’ efforts to unlock the gas reserves in Malaysia' s remote and stranded fields currently deemed uneconomical to develop and evacuate and will help meet the growing demand for gas.
The floating LNG facility is expected to change the landscape of the LNG business where the liquefaction, production, storage and offloading processes of LNG previously only possible at onshore plants will now be able to be carried out hundreds of km away from land and closer to the offshore gas fields.The facility can also be the solution for early monetisation and more agile LNG production.
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Stabilis Energy has signed a definitive agreement to purchase substantially all of the U.S. based assets of Encana Natural Gas Inc. (ENGI).
Denver-based ENGI is a leading distributor of LNG fuel to domestic high horsepower engine operators in the oilfield, mining, rail, marine, over the road transportation, and industrial sectors. ENGI is a subsidiary of Encana Corporation. The transaction is scheduled to close on April 30, 2014.
"We are proud to announce the addition of Encana Natural Gas Inc.' s people, assets, and customer relationships to Stabilis Energy," said Casey Crenshaw, President and CEO of Stabilis Energy.
In addition to adding ENGI' s staff, Stabilis has agreed to purchase its fleet of cryogenic rolling stock assets including storage and regasification trailers, mobile fueling units, and other related equipment. Stabilis will fulfill all of ENGI' s existing customer obligations including its existing contracts, subject to customer consent.
Stabilis plans to open its first LNG production facility in George West, Texas, in January 2015 to service oilfield customers in the Eagle Ford shale. The facility is being built as part of a previously announced venture with Flint Hills Resources LLC to build up to five LNG production facilities that target oilfield customers.
The George West facility is under construction now and will be able to produce approximately 100,000 LNG gallons per day when complete. Other targeted LNG liquefaction plant locations include West Texas, North Dakota, and other major oilfield regions. Stabilis also will continue to source fuel from ENGI' s large existing third-party supply network.
"Encana is pleased that Stabilis Energy will carry on the outstanding LNG business that our Natural Gas team has worked hard to build over the past several years," said David Hill, executive V.P. of Encana Corporation. "Encana believes that natural gas has a bright future as a domestic fuel source for high horsepower engines and that LNG will be an important part of this value chain." Encana will remain a customer of Stabilis Energy for LNG.
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Chevron is on track to post its lowest first quarter production in eight years after bad weather disrupted operations in Central Asia and North America.
Chevron by its market value also signaled that profit for the first three months of the year was the lowest since late 2010, according to a statement. Chevron, which is overseeing the $54 bn Gorgon natural gas export project in Australia, cited currency fluctuations and the falling value of some assets for the decline.
Chevron said it pumped the equivalent of 2.579 MMbpd during January and February. If output persisted at that pace through March, production for the full quarter would have been the lowest for that time of year since 2006.
Chevron is scheduled to disclose results for the entire three month period on May 2.
Before its statement, the company was expected to report full quarter output of 2.61 MMbbl, based on the average of three analysts’ estimates compiled by Bloomberg. That compares with 2.645 MMbbl in the first three months of 2013.
Chevron is accelerating oil exploration from Argentina to China to add reserves and revive output. Chairman and CEO John Watson is spending almost $40 bn this year to find, extract, transport and process oil and gas. Watson’s strategy also calls for auctioning off $10 bn in oilfields and other assets to hone the Chevron’s focus on the highest profit projects.
The statement was released after the close of regular trading in New York, where the shares fell 0.7% to $118.22.
Chevron declined 4.7% this year through the close, after advancing 16% in 2013. In March, Watson cut the company’s long-term production target by 6.1% to the equivalent of 3.1 MMbpd in 2017.
The company’s output fell for a third consecutive year in 2013, the longest streak of declines since the 2001-2004 period, according to data compiled by Bloomberg.
Exxon Mobil is the biggest energy company by market value, followed by Shell.
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Statoil and its partners, GDF SUEZ and OMV, have started production from the Gudrun oil and gas field in the North Sea.
"Gudrun is the first new Statoil-operated platform to come on stream on the Norwegian continental shelf since 2005. This is a red-letter day for the company," says Arne Sigve Nylund, Statoil' s executive V.P. for the Development and Production Norway business area.
The new field contributes to important production from the Norwegian shelf. Statoil expects to recover 184 million barrels of oil and gas (oil equivalent) from the field.
"Gudrun illustrates how we can maximize value creation and realize new projects on the Norwegian shelf by combining new field developments with existing pipelines and facilities," says Nylund.
The Gudrun investment decision was made during the financial crisis. When the plan for development and operation (PDO) was submitted in 2010, Gudrun was Statoil' s only mega-project (investments in excess of NOK 12 billion). Now Gudrun is the first in a long line of field developments operated by Statoil.
"We have delivered the Gudrun field on time and below the cost estimate in the PDO. Choosing a global strategy for Gudrun has contributed to reducing the costs," says Margareth Øvrum, head of the Technology, Projects and Drilling business area in Statoil.
Gudrun was discovered in 1975. It is a high temperature-high pressure field, and the need for new drilling technology was one of the reasons why these reserves were left in the bank for such a long time. Now Statoil also has available capacity in existing facilities and pipelines.
Oil and gas from Gudrun is sent to Sleipner, where it will be processed before the oil is sent on to KårstØ and the gas to Europe, all through existing pipelines tied in to Sleipner. This allows Statoil to benefit from previous investments made on the Norwegian shelf.
"The Gudrun concept is a win-win situation. By using existing infrastructure, the Gudrun development costs less and Sleipner gains an extra customer. Gudrun' s start-up came at the perfect time," Nylund explained.
Modifications have also been carried out on Sleipner and at KårstØ as part of the Gudrun project.
Gudrun will be operated from Statoil' s offices at Vestre Svanholmen in Sandnes, and is the first new field Statoil operates from the Stavanger region since Sleipner in 1993.
"It' s good to see a new field joining the old giants - Statfjord, Snorre and Sleipner. Later on, Gina Krog will also come to Operations South. This field will also be tied in to Sleipner - yet another win-win situation," says Nylund.
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DUBLIN, Ireland (Bloomberg) -- Falcon Oil & Gas Ltd. expects to be awarded a permit to start exploration at its shale plot in the Karoo basin in South Africa in the second half of the year after technical regulations are published. “Our focus will be South Africa over the next 12 months,” CEO Philip O’Quigley said in an interview. The Dublin-based company, which signed a five-year exclusive co-operation agreement with Chevron Corp. in 2012, may sell a stake in the asset following the approval.
The “golden age of gas” that the International Energy Agency foresees as a result of the U.S. energy boom is hardly the future being embraced by industry executives.
At least based on comments from company officials presenting at the Independent Petroleum Association of America’s conference in New York yesterday. For them, oil is still the prize. Gas is almost an afterthought.
Abraxas Petroleum Corp. CEO Bob Watson boasted about how much of his company’s proved reserves are oil and liquids rather than gas (74%). PDC Energy Inc. said it’s sitting on huge leases in gas fields that aren’t worth drilling. Whiting Petroleum Corp. Chairman and CEO James Volker explained why: oil sells for three times as much as the equivalent amount of natural gas.
That’s no knock against the producers for chasing oil - the commodity that makes the best return for their shareholders. Still, at a time when President Barack Obama is saying natural gas will be a bridge for the U.S. economy from fossil fuels to clean energy, the industry’s views put some realism into the discussion about what energy resources get unlocked by fracing shale rocks.
U.S. natural gas futures have plunged 72% from their 2005 peak to $4.476 as supply expanded to a record. Even after the coldest winter in decades drained stockpiles, the fuel costs about half as much as in Europe. Crude oil, by contrast, is stuck at around $100 a barrel. Even as the growth of U.S. oil supplies has brought the domestic price below the international benchmark, it’s still 7.6% higher than a year ago.
The U.S. is still very much addicted to oil. Consumption will inch up to 19 MMbbl a day this year, more than Europe and China combined, the IEA estimates. Even as expanding domestic supplies reduce imports, they haven’t curbed reliance on oil outright.
If natural gas is to be a bridge fuel, the transition can’t depend on supply alone.
Now that natural gas is so abundant, it needs more uses. While power plants are switching to gas, the U.S. still gets more electricity from coal.
Billionaire T. Boone Pickens wants trucks and buses to run on natural gas. The chemical industry is investing more than $100 bn in expansion projects spurred by cheap shale gas, according to the American Chemistry Council in Washington. And the Energy Department has approved seven projects to export about 9.3 Bcf a day of natural gas in liquid form.
In the time it takes for those new demand sources to develop, making natural gas more valuable in its own right, its role as a byproduct of oil drilling is contributing to more pollution. In North Dakota, drillers pumping oil in the Bakken shale formation are burning off about $1.4 million worth of natural gas every day.
While politicians and industry may pay lip service to natural gas as the clean fuel of the future, the companies out exploiting America’s oil fields leave no doubt that they’re interested in the same fuel as 100 years ago.
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Petronas has awarded a small field risk service contract (SFRSC) to EQ Petroleum Developments Malaysia and Uzma Energy Venture (Sarawak) (Uzma) for the development and production of the Tanjong Baram field, located about 6 km offshore Sarawak.
The SFRSC was signed on 27 March in Kuala Lumpur, where Petronas was represented by its V.P. of Petroleum Management Encik Adif Zulkifli, EnQuest by its Head of International Mr Faysal Hamza and Uzma by its CEO Dato’ Kamarul Redzuan Mohamed.
Under the terms of the contract, Petronas is the project owner while EnQuest and Uzma are the contractors for this petroleum arrangement.
“This SFRSC will see EnQuest and Uzma conduct development and production works at the Tanjong Baram field. The first hydrocarbon from the Tanjong Baram field is expected to be within 11 months from now,” said Adif Zulkifli.
Petronas has awarded four RSCs to date, the Berantai field to Petrofac and Sapura Kencana Petroleum in January 2011, the Balai-Bentara cluster off Sarawak to a consortium comprising Roc Oil, Dialog Group and Petronas Carigali in August 2011, the Kapal, Banang and Meranti cluster to Coastal Energy KBM in June 2012 and the Tembikai-Chenang cluster to Vestigo Petroleum in October 2013.
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Liquefied Natural Gas Limited has reported that Magnolia LNG, LCC (MLNG), its wholly-owned subsidiary, has executed a technical services agreement (TS Agreement) with SK E&C USA, Inc., a wholly-owned subsidiary of SK Engineering and Construction Co. Ltd., of Korea (SKEC Group).
The TS Agreement relates to the ongoing engineering, procurement and construction (EPC) activities for MLNG’s planned 8 mtpa Magnolia LNG Project, in Lake Charles, Louisiana.
SKEC Group has already completed a satisfactory detailed review of Liquefied Natural Gas Limited’s OSMR process technology, which will be employed in the Magnolia LNG Project, and provided the company with an initial estimated EPC cost of $1.57 bn, which was consistent with the company’s budget estimate, including appropriate contingencies.
Liquefied Natural Gas Limited’s Managing Director, Maurice Brand, said that the EPC activities remained on schedule with the SKEC Group and will be managed going forward by the recently appointed COO, John Baguley, who will commence on May 1, 2014.
“We also remain on schedule to lodge our application for Filing with the Federal Energy Regulatory Commissions on the 30 April 2014,” Brand said.
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Petroceltic completes sale of stake in Algerian PSC DUBLIN Petroceltic International Plc (Petroceltic), reported the completion of its sale of an 18.375% interest in the Isarene PSC to Sonatrach, the National Oil and Gas Company of Algeria. The assignment was
Aquatic appoints Martin Charles as new regional general manager ABERDEEN Aquatic Engineering & Construction Ltd, an Acteon company, has appointed Martin Charles as regional general manager, Europe, Middle East and Africa (EMEA). This appointment contributes to Aquatic’s business strategy for
Petrobras has announced the start-up of well 7-SPH-04-SPS, at a water depth of 2,120 m, in Sapinhoá field, in the Santos basin pre-salt region. This well has an estimated production potential of 26,000 bpd and is interconnected to the FPSO Cidade de São Paulo through the platform connecting system known as BSR (Buoyancy Supported Risers).
This is the third production well of the Sapinhoá Pilot Project and the second to go in operation through the BSR gathering system, following the start-up of well SPS-77A, which has been producing approximately 36,000 bpd since February 18, 2014.
FPSO Cidade de São Paulo has the capacity to process up to 120,000 bpd and has been in operation since January 5, 2013, when it was directly interconnected to well SPS-55. The fourth production well of the project will be interconnected early in the second half of the year. With the start-up of this well, the platform will reach its full output capacity.
Besides the first buoy already installed in Sapinhoá field, three other similar systems have been commissioned for installation in Santos basin pre-salt fields. Of these three, one more will be destined for Sapinhoá field (Sapinhoá Pilot Project - FPSO Cidade de São Paulo) and the other two for Lula field (Lula Nordeste Pilot Project - FPSO Cidade de Paraty). FPSO Cidade de Paraty, with the capacity to process up to 120,000 bpd, went into operation on June 6, 2013, when it was directly interconnected to the output of well LL-11.
Installation of the second buoy, destined for Lula field, was completed in February in less than a third of the time it took to install the first one, due to improvements made to installation processes. Then, on March 9, installation of the rigid steel pipelines to gather the output from two NE Lula wells, through the buoy, was completed.
At this time, installation is underway of the flexible pipelines of well 7-LL-22D-RJS, the first production well to be connected to the Lula NE buoy. This well will go in operation this quarter. Then, two other wells will be interconnected and FPSO Cidade de Paraty will reach its full output capacity in the third quarter of this year.
Two other buoys will be installed in the first half of the year
Operations to interconnect the third buoy in Sapinhoá field are ahead of schedule. The buoy is already submerged and attached to its foundations. Installation work will be completed this quarter.
The fourth and last buoy, designed for Lula field, is already on site and is currently in the initial installation phase, according to schedule. Installation is also expected to be completed this quarter.
Sapinhoá field is operated by Petrobras (45%), in partnership with BG E&P Brasil Ltda (30%) and Repsol Sinopec Brasil S.A. (25%).
Lula field is operated by Petrobras (65%), in partnership with BG E&P Brasil Ltda (25%) and Petrogal Brasil S.A. (10%).
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Inpex plans to spend $44 bn on exploration and development to double its production by early next decade, investing a significant amount in Australia.
Inpex, developing the $34 bn Ichthys LNG project in northern Australia, already has stakes in 10 exploration blocks surrounding the Ichthys field, President Toshiaki Kitamura said in notes for a speech he’s scheduled to give at a conference in Perth. The LNG will be produced in the Northern Territory capital of Darwin.
“I fully expect we will discover resources to supply the Ichthys LNG plant in Darwin well into the future,” he said. The investment goal is over five years through 2016, he said.
The Ichthys LNG project, one of seven under construction in Australia to meet rising Asian demand for the fuel, is expected to generate total revenue of more than $232 bn, Kitamura said. The developments are forecast to make the country the world’s largest exporter of LNG.
Disagreement between LNG buyers and sellers about how the gas should be priced and future supply and demand could delay the expansion of the LNG industry in a “worst-case scenario,” Kitamura said. Buyers should consider becoming the sellers’ partners in the development of the gas fields as one way to align their views on the market, the Inpex president said.
Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Blockline and Associate Ltd Nigeria Ltd, online.
Brent oil trades near three week low on Libya supply, WTI Steady BEN SHARPLES NEW YORK (Bloomberg) Brent traded near the lowest price in more than three weeks as Libya prepares to increase exports and amid speculation that Iraqs crude
U.S. regulators, acting after an oil-train derailment last year ignited a fireball that killed 47 people in Canada, said they intend to require at least two crew members for crude shipments, a proposal opposed by the railroads.
The Federal Railroad Administration also will establish minimum crew size standard for most freight trains and passenger rail lines, the agency said in a statement.
“We are committed to taking the necessary steps to assure the safety of those who work for railroads and shippers, and the residents and communities along shipping routes,” Transportation Secretary Anthony Foxx said in a statement.
The agency is acting after a train that was operated by one person was left unattended for the night in July and rolled into the center of Lac-Megantic, triggering a fatal explosion that destroyed half the town.
The Association of American Railroads, whose members include Berkshire Hathaway Inc.’s BNSF, said large railroads already run oil trains with at least two crew members.
Nevertheless, Edward Hamberger, the group’s CEO, said the Federal Railroad Administration “has never shared an iota of data that shows or proves two-person crews are safer.”
“If a regulation is proposed, then the least that can be expected is that a federal agency should back it up with grounded data that justifies the recommend rule,” Hamberger said in a statement.
FRA administrator Joseph Szabo said in the agency’s statement that two-person crews would improve the safe transport of crude oil.
Crude-by-rail shipments have soared as oil drillers employ new technologies to crack open and free oil and gas from shale formations at a faster pace than pipelines can handle.
Canadian investigators found that the brakes on the Quebec train weren’t applied with enough force. Canadian regulators have since banned one-person train crews when hauling hazardous material.
“Whether a railroad is carrying crude oil through towns across America, or people taking a well-earned vacation or commuting to work, we need to make sure people are safe, whether on the train and near the tracks,” said Senator Patty Murray, a Washington Democrat.
Murray is the chairman of the Senate Appropriations transportation subcommittee, which is holding a hearing on rail safety today.
Previously, the Transportation Department ordered energy companies using rail to ship oil to test the chemical composition of all crude before loading it on tank cars. It is also studying whether rail cars carrying crude need to be made more robust to lower the risks a derailment will cause an explosion.
Foxx told the subcommittee the oil industry has provided a minimal amount of data on the characteristics of oil from North Dakota’s Bakken shale region, which is slowing down efforts to improve the safety of transporting the fuel. Bakken crude may be more volatile than other types of oil.
Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Blockline and Associate Ltd Nigeria Ltd, online.
OPEC trimmed estimates for the amount of crude it will need to pump this year amid rising U.S. supplies, and predicted that a “supply buffer” will accumulate before demand peaks in the summer.
The Organization of Petroleum Exporting Countries, responsible for 40% of the world’s oil supply, will need to provide an average of 29.6 MMbpd of crude this year, according to its monthly market report. The assessment is 100,000 bpd lower than last month’s because of higher output from the U.S. and Canada, and in line with the group’s March production level. Oil inventories, currently “tight,” will rebuild as demand sags in the second quarter, it said.
Reliance on OPEC is being frayed as the U.S. pumps the most crude in more than two decades by tapping shale formations in North Dakota and Texas. Brent crude futures have lost 2.9% this year, trading for $107.58 a barrel today in London, amid speculation OPEC members Libya and Iran may restore supplies curbed respectively by political unrest and sanctions. OPEC would “accommodate” their return to the market, group Secretary-General Abdalla El-Badri said in Doha, Qatar, yesterday.
“Demand for OPEC crude for 2014 was revised down” from last month “reflecting the upward adjustment of non-OPEC supply,” the group’s Vienna-based secretariat said in the report. “Oil markets have now entered into a period of lower demand, which provides the opportunity to re-build tight product inventories.”
OPEC’s 12 members reduced production by 626,200 bpd to 29.6 MMbpd in March because of declines in Iraq, Angola and Libya, according to secondary sources cited by the report. Iraqi production fell most, declining 288,400 bpd to 3.2 MMbpd, according to the report, which didn’t specify a reason.
The second-largest drop was in Angola, where output fell by 154,800 bpd to 1.5 MMbpd, followed by Libya, where supplies slipped by 117,700 a day to 243,000 a day. Saudi Arabia, the group’s biggest member, trimmed output by 80,500 bpd to 9.7 MMbpd.
The group boosted its projection of supplies from outside OPEC by 60,000 bpd. Non-OPEC producers, led by the U.S., Canada and Brazil, will increase output by 1.4 MMbpd in 2014 to 55.6 MMbpd.
The organization kept its forecast for global oil demand in 2014 stable. World consumption will increase by 1.1 MMbpd, or 1.3%, to 91.2 MMbpd, the report indicated.
OPEC’s 12 members are Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the U.A.E. and Venezuela. The group will next meet on June 11 in Vienna to discuss output targets.
Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Blockline and Associate Ltd Nigeria Ltd, online.
Woodside to farm in to Chariot' s Rabat deep permits offshore Morocco PERTH, Australia Woodside advises that it has finalised an agreement with Chariot Oil & Gas to farm in to the prospective Doukkala Basin offshore north western Morocco. Under the
NEW YORK (Bloomberg) -- West Texas Intermediate fell for a sixth day, the longest losing streak since May 2012, while Brent slid amid speculation that crude supplies will increase after Libyan rebels agreed to hand over two export terminals. Futures dropped as much as 0.5% in New York. Libya is reopening the Es Sider and Ras Lanuf facilities after reaching an agreement with a group that blockaded ports in the country’s east in the past year, said Ahmed al-Amin, a government spokesman. Fighting in Iraq, OPEC’s second-largest producer, still hasn’t spread to the south, home to more than three-quarters of its crude output.
Deep Sea Mooring expands into Egypt with Maersk Drilling STRAUME, Norway Deep Sea Mooring (DSM) has won the contract to provide a comprehensive range of mooring services to Maersk Drilling for its sixth generation, semi submersible drilling rig Maersk Discoverer.
AJDABIYA, Libya (Bloomberg) -- Rebels who helped decimate Libyan oil production by blockading eastern ports said the nation’s largest and third-largest export facilities can ship crude again, in a gesture of support for the newly elected parliament. Es Sider and Ras Lanuf, which have combined capacity of 560,000 bpd, will reopen July 2, according to Ali Al-Hasy, a spokesman for the rebels’ Executive Office for Barqa.
LEIDSCHENDAM, The Netherlands -- Fugro has completed the acquisition of the Geofor Group based in Libreville (Gabon), Douala (Cameroon), Pointe Noire (Republic of Congo) and São Tomé City (São Tomé) to strengthen its presence in the Central Africa region and the French speaking African countries. In addition to its longer established offices, Geofor has significant working experience in Niger, Chad and Equatorial Guinea.
DUBAI, United Arab Emirates -- Polarcus Limited has received a Letter of Intent for a 3D marine seismic acquisition project for an undisclosed client offshore West Africa.
LONDON -- Wood Group Kenny (WGK) has been awarded an engineering services contract to support Tullow Ghana Limited and its partners through the execution phase of the Tweneboa, Enyenra and Ntomme (TEN) project, offshore Ghana. WGK will provide subsea, umbilical, risers, flowlines (SURF) engineering services. The Tweneboa, Enyenra and Ntomme oil fields are situated in the Deepwater Tano area, offshore Ghana, approximately 30 km from the existing Jubilee field.
