Burlington Resources News

CNOOC Limited announce that Panyu 4-2/5-1 & Liuhua 4-1 oil fields in the Pearl River Mouth Basin, South China Sea, start production. Panyu 4-2/5-1 oil field has an average water depth of about 100 meters and an adjustment project has been designed to share the existing facilities to develop this oil field more effectively,  and it is expected to hit its peak production in 2014. The Company holds 75.5% interest and acts as the operator of Panyu 4-2/5-1 oil field; its other partner, Burlington Resources China holds the remaining 24.5% interest. Liuhua 4-1 oil field has an average water depth of about 268 meters. In view of the features of the oil field, the Company built a new subsea production system while sharing the surrounding facilities for overall development.

Perenco Ecuador Limited has called on the Government of Ecuador to cease efforts to sell oil seized from Blocks 7 and 21 in defiance of orders by international arbitration tribunals, and instead to seek a negotiated solution to the dispute concerning the applicability of Law 42. Perenco Ecuador is the Operator of the two blocks in question. On February 19, 2009, the Republic of Ecuador and its oil company, Empresa Estatal Petroleos del Ecuador ("Petroecuador"), commenced a coercive process to collect from Perenco approximately $327 million they claimed were due under a 2006 Ecuadorian law ("Law 42") by which the government asserts a right to 99% of the oil revenues above an arbitrary "reference price."  In March 2009…

ENSCO International said last week that the ENSCO 7500, an ultra-deepwater, semisubmersible rig owned and operated by a wholly owned subsidiary, has returned to work as scheduled after successfully completing hull repairs. The rig is back on a TotalFinaElf drilling location and has resumed earning day rate revenue, under an assignment of a long-term contract with Burlington Resources.

As the offshore market, particularly in the Gulf of Mexico, continues to heat up, news from Dallas heralds a new era of ensuring safety and efficiency. ENSCO International took delivery of its new semisubmersible ENSCO 7500 from Friede Goldman Halter of Port Arthur, Texas, marking the drilling rig's place in offshore history as the first to complete certificate of inspection requirements under the USCG Alternate Compliance Program (ACP), as facilitated by ABS of Houston. Through the cooperative efforts of the USCG and ABS, ACP certification - initiated in 1995 but to date only used by shipowners - is now available to offshore rigs, said Lynnda Pekel, ABS project manager.

As the offshore market, particularly in the Gulf of Mexico, continues to heat up, news from Dallas heralds a new era of ensuring safety and efficiency. ENSCO International took delivery of its new semisubmersible ENSCO 7500 from Friede Goldman Halter of Port Arthur, Texas, marking the drilling rig's place in offshore history as the first to complete certificate of inspection requirements under the USCG Alternate Compliance Program (ACP), as facilitated by ABS of Houston. Through the cooperative efforts of the USCG and ABS, ACP certification - initiated in 1995 but to date only used by shipowners - is now available to offshore rigs, said Lynnda Pekel, ABS project manager.

According to reports, ConocoPhillips on posted a 2 percent rise in third-quarter profit on increased production and slightly higher sales. The company posted net income of $3.88 billion compared with $3.80 billion a year ago. Per-share results fell to $2.31 from $2.68, however, as the number shares outstanding increased to 1.68 billion from 1.42 billion. The recent quarter included 37 cents in charges related to unfavorable tax changes in the U.K., impairment on certain refining and marketing assets held for sale and the costs of new Alaska tax laws, partially offset by an insurance gain. Total revenue rose to $49.9 billion from $49.66 billion a year earlier.

ConocoPhillips reported first-quarter net income of $3,291 million, or $2.34 per share, compared to $2,912 million, or $2.05 per share, for the same quarter in 2005. Total revenues were $47.9b, versus $38.9 billion a year ago. During the quarter, the company reinvested 141 percent of its net income into the development of oil and gas resources and its global refining business, excluding the acquisition of Burlington Resources. are pleased with the progress toward integrating the combined companies,” said Jim Mulva, chairman and chief executive officer. “This transaction establishes ConocoPhillips as the leading natural gas producer in North America, with a portfolio comprised mainly of high-quality, long-life natural gas reserves.

Already one of the most aggressive spenders on future supplies, ConocoPhillips CEO James J. Mulva is now poised to make another huge deal: a $30-billion plus acquisition of Burlington Resources (BR), according to a Business Week report. Buying BR would be a giant bet on a red-hot U.S. natural gas market. While Burlington has international operations in Algeria, China, and Latin America, 84% of its reserves are in North America. With U.S. gas prices at record highs, ConocoPhillips is betting that supplies will remain tight for many years, according to the report. The move by ConocoPhillips would round out its expansion strategy. The company recently added capital spending to boost output at its U.S.

Centrica has awarded Aker Kvaerner's Engineering Services a contract for the recertification of pressure safety valves for its operations based out of Morecambe Bay. The contract covers the offshore facilities, which consist of nine offshore platforms, two onshore gas processing terminals at Barrow (North Morecambe and South Morecambe terminals), and the Barrow Condensate Storage Facility. The contract is for a period of five years, with extension options of 2 one year periods. The Morecambe Field is an offshore, hydrocarbon gas reservoir divided into two sections (North and South). Gas is produced through offshore facilities, which are located approximately 25 miles west of Blackpool, Lancashire.

As a division of Brown & Root Energy International, Services (BRES), SubSea International, Inc. has been awarded a contract to provide remotely operated vehicle (ROV) services to support Burlington Resources, Inc.'s drilling program in the Gulf of Mexico. Brown & Root Energy Services is a business unit of Halliburton Company. Operating from onboard semi-submersible Borgny Dolphin, SubSea International's ROV systems. include a custom-built heavy launch and recovery system, a four-point guide wire cursor system and a Pioneer work-class ROV.

ING Barings has raised its ratings of the shares of several oil and gas companies. ING raised Burlington Resources to strong buy from hold, Transocean Offshore to strong buy from buy and Ocean Energy Inc. to buy from hold. On Transocean, analyst Stephen Gengaro wrote: "We believe the stock has lagged the group because of the relatively high level of contract rollovers over the next six months, which includes some of the company's high-specification semis currently working at high day rates. "While these rollovers will likely keep pressure on earnings over the next several quarters, we do not expect the company to sign any long-term contracts…

ENSCO International Incorporated announced the closing of a new $195 million loan facility guaranteed by MARAD. The facility will be used to finance the ENSCO 7500 semisubmersible drilling rig currently being constructed for ENSCO by Friede Goldman Offshore. The rig is scheduled to commence drilling operations for Burlington Resources during the fourth quarter of 2000. The MARAD guarantee covers both interim financing during the construction period as well as 15 year bonds to be issued upon completion of construction. ENSCO expects to begin drawing under the interim financing during the first quarter of 2000. The company also has reached…

ENSCO International Incorporated announced construction of the ENSCO 7500 semisubmersible rig is progressing satisfactorily at the Friede Goldman Offshore, Orange, Texas shipyard. FGO estimates construction of the rig will be completed, and shipyard delivery will take place during October of 2000. This is in line with ENSCO's previously reported expectation the rig will commence its term contract for Burlington Resources during the fourth quarter of 2000. The Burlington contract is expected to generate revenue of approximately $190 million during the three-year primary term. In a related development, Burlington ? while reconfirming their commitment under the ENSCO 7500 drilling contract ?