Oil Field News

03 Feb 2020

Russia Leads E&P Race in Arctic Region

Image: GlobalData

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

26 Jan 2020

IOOC Launches First PIMS

Image: Iranian Offshore Oil Company

Iranian Offshore Oil Company (IOOC), a subsidiary of the National Iranian Oil Company, has successfully launched its first offshore pipeline integrity management system (PIMS) in the Iranian oil industry.According to IOOC, the system was launched in order to comply with international and national requirements for the standard, safe and continuous operation of the Salman Oilfield’s gas pipelines with a Norwegian company and the Pipeline Technology Company.The project is dubbed as the first of such projects in the Iranian offshore oil industry…

15 Jan 2020

Corpus Christi Crude Exports Boom

© Brent Coulter / Adobe Stock

U.S. crude exports from Corpus Christi, Texas, have surged to a record in recent weeks, often surpassing hubs such as Houston and Beaumont, Texas, thanks to faster-than-expected infrastructure additions.The infrastructure boom at Corpus Christi helped push crude exports there to a weekly record of 1.59 million barrels per day (bpd) in late December, more than doubling levels that held for the first eight months of last year, and above Houston's 2019 peak of 1.36 million bpd, according to vessel-tracking firm ClipperData.The heavy flows suggest that fears of a bottleneck that would impede U.S.

07 Jan 2020

Norwegian PM Opens Johan Sverdrup Field

Image: Equinor

Norway's prime minister Erna Solberg has opened the Johan Sverdrup field center, and the Minister of Petroleum and Energy, Sylvi Listhaug, also attended the opening.Since Equinor and the Johan Sverdrup partners Lundin Norway, Petoro, Aker BP and Total started the field on 5 October last year, production has increased to a level well above 300,000 barrels per day.Johan Sverdrup is expected to yield a total production revenue exceeding NOK 1 400 billion and more than NOK 900 billion…

27 Dec 2019

Offshore Energy Outlook for 2020

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

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

26 Dec 2019

Five Common Mistakes in Maritime Contracts

Copyright: byemo/AdobeStock

“An ounce of prevention is worth a pound of cure.” – Henry de Bracton, DeLegibus, ~1240Often clients or prospective clients come to me with a commercial contract issue perched on the precipice of full-blown litigation or arbitration. When I ask to see the contract, often times I see errors in drafting that either (1) give rise to the problem before me or (2) could create a bigger problem for the client in the future.The risk of drafting error is higher for Europeans looking to contract with American companies.

17 Dec 2019

EnQuest Selects Esvagt as ERRV Provider

The 'Esvagt Capri' is one of four vessels chartered by EnQuest. Image: ESVAGT

Offshore vessel provider Esvagt has been awarded a new contract with the United Kingdom-based petroleum exploration and production company EnQuest for the provision of emergency response and rescue vessels (ERRV).According to the provider of safety and support at sea, under this contract, four ESVAGT vessels will support EnQuest Heather Ltd’s operation in the UK.The contract includes a continued support on the Kraken oil field and Kittiwake and, since December 2019, ERRV duties…

13 Dec 2019

GoM: Total Begins Two Deepwater Projects

Map: Total

Total S.A announced the final investment decision (FID) to develop the Anchor oil field located in the deepwater U.S. Gulf of Mexico (GoM), off the coast of Louisiana.Additionally, front-end engineering and design (FEED) has begun for the North Platte discovery in the deepwater GoM.Total holds a working interest of 37.14% in Anchor, alongside operator Chevron (62.86%).The Anchor field will be developed with seven subsea wells connected to a semi-submersible floating production unit (FPU) with a capacity of 75,000 barrels of crude oil and 28 million cubic feet of gas per day.

13 Nov 2019

Profab Gets Apsara Gig from KrisEnergy

A representation of the Apsara oil field arrangement in Block A, offshore Cambodia. Image: KrisEnergy

Southeast Asia-focused oil and gas company KrisEnergy Apsara Co signed a conditional letter of award with PT Profab for the supply of a minimum facilities wellhead “mini-platform” for the Apsara oilfield – Cambodia’s maiden oil development.According to a press note from the Singapore-based parent company KrisEnergy, the scope of work covers key procurement, and the fabrication and construction of the jacket, topsides and other related accessories for the Mini-Platform, including…

13 Nov 2019

Japanese Firms in Brazilian FPSO Gig

Image: MODEC

Japanese companies have decided to proceed with the deepwater floating production, storage, and offloading system (FPSO) charter project for the Petrobras-operated Búzios pre-salt oil field located offshore Brazil.MODEC, Mitsui & Co., Mitsui O.S.K. Lines (MOL), and Marubeni Corporation have agreed that Mitsui, MOL, and Marubeni will invest in a long-term charter business currently promoted by MODEC for the purpose of providing  FPSO for use on the Búzios field off the coast of Brazil.Based on these agreements, Mitsui, MOL and Marubeni will invest in Buzios5 MV32 B.V.

12 Nov 2019

Southeast Asia Bullish on OFS Market

Graph: Rystad Energy

Offshore project sanctions in Southeast Asia could lift greenfield investments in the oilfield services market by nearly 70 percent in 2020, said Rystad Energy.According to Norwegian energy research firm, the growth will be driven by a handful of new mega-projects across Malaysia, Myanmar and Vietnam, according to the latest tally of project commitments in Southeast Asia by the Norwegian energy research and consulting firm.New final investment decisions (FIDs) in 2021 are expected to sound the starting gun for big contract awards in Vietnam…

10 Nov 2019

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 markets.Rouhani made the announcement in a speech in the desert city of Yazd. Some 53 billion barrels would be added to Iran’s proven reserves of roughly 150 billion, he said.He said the oilfield is located in the southwestern province of Khuzestan in a land stretching 2…

30 Oct 2019

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, the trend to accelerate in the next decade.“If pure-play contractors within drilling, well services and seismic – which don’t have much to offer outside the upstream oil and gas industry – are removed from the equation…

21 Oct 2019

Oil Market to Depend on AI to Fix Downtime

Graph: Rystad Energy

Unplanned outages are on the rise globally from both equipment failures and damages. Smaller operators do not have the excess capital to conduct the same level of planned outages.As traditional methods of predicting equipment failure can be unreliable in a dynamic operating environment, they can be hesitant to sanction significant shutdown work unless it is absolutely necessary."Thus, they are forced to ride out operational uncertainty and have unfortunately seen unplanned outages increase…

17 Oct 2019

Kinder Morgan's Elba Island LNG up by mid-2020: CEO

Kinder Morgan's Elba Island facility (CREDIT: Kinder Morgan)

Kinder Morgan expects to bring the remaining nine units of its liquefied natural gas (LNG) export facility at Elba Island into service by the first half of next year, Chief Executive Officer Steven Kean said on Wednesday.The first unit of Kinder Morgan's Elba Island facility began producing LNG natural gas for export last month, and is one of several new U.S. projects adding to global supplies.The Houston pipeline operator plans to bring three more into service this year, with another six to start up in the first half of 2020…

11 Oct 2019

Iranian Tanker Hit by Missiles, Oil Rises

© PhotoGranary/AdobeStock

Oil prices jumped more than 2% on Friday, October 11, 2019, after Iranian media said a state-owned oil tanker had been struck by missiles in the Red Sea near Saudi Arabia, raising the prospect of supply disruptions weeks after attacks on Saudi oil plants.The Suezmax crude tanker Sabiti was ablaze and suffered heavy damage after being hit by two missiles, Iranian media reported.Both oil benchmarks recorded their biggest daily rise since Sept. 16, the first trading day after the…

10 Oct 2019

Global Energy Takes Over Nigg Oil Terminal

Photo by Global Energy (Group) Limited

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

08 Oct 2019

Digitalization: Oil Industry Could Save up to $100Bln

Graph: Rystad Energy

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

26 Sep 2019

CPIH, Equinor Team Up on Offshore Wind

Image: Equinor

Chinese power giant China Power International Holding (CPIH) and Norwegian energy firm Equinor have inked a memorandum of understanding (MoU) to cooperate on offshore wind projects off China and Europe.“China is rapidly increasing its use of renewables and natural gas. The country is set to become the world’s biggest offshore wind market by 2030. As an offshore wind major, Equinor is excited to collaborate with CPIH to develop offshore wind” says executive vice president New Energy Solutions…

24 Sep 2019

Equinor to be ‘Offshore Wind Major’

Graph: Rystad Energy

The multi-billion capital investment by Equinor at its new Dogger Bank Offshore Wind Farm will see it rival its major oil and gas projects, according to Rystad Energy."The offshore wind project Dogger Bank in the UK North Sea will not only be Equinor’s largest project through 2026, it will also rank as the sixth largest offshore development project in the world during this period," said the energy research firm.UK authorities announced on Friday that Equinor and joint venture partner SSE have been chosen to develop the world’s largest offshore wind farm…

15 Sep 2019

Aramco Suspends 50% of Production

Amin H. Nasser. Photo: Saudi Aramco

Saudi Arabia has temporarily halted production at two Aramco oil facilities that were attacked by Yemeni rebels, interrupting about half of the company’s total output.Saudi Aramco said the production of 5.7 million barrels of crude a day had been suspended after drone attacks on the world’s largest oil processing plant at Abqaiq – near Dammam in the Eastern Province – and the country’s second-largest oilfield at Khurais, about 200 kilometers away.Earlier, the oil giant said that emergency crews contained fires at its plants.After visiting the incident locations, Amin H.

12 Sep 2019

OFS Sector Expected to Take a Hit

Graph: Rystad Energy

Lower oil prices will push the global oilfield services (OFS) sector into a recession in 2020 after three successive years of growth, according to Rystad Energy.In a new sector outlook update, Audun Martinsen, head of oilfield services research at Rystad Energy, forecasts a 4% decline in global oilfield service revenue if oil prices stay flat next year.“Lower oil prices call for negative growth in the service market in 2020,” says Martinsen. “For suppliers, this means that a three…

10 Sep 2019

Bumi Armada Sells FPSO for $40 Mln

Malaysian oilfield services company Bumi Armada Bhd has found a buyer for its floating production storage and offloading (FPSO) vessel Armada Perdana in Nigerian company Century Energy Services (CESL) for RM167.17 million ($40 million).Kuala Lumpur-based floater player said in a Bursa Malaysia filing that its subsidiary, Armada Oyo Limited (AOL), had entered into an agreement with CES) for the sale of the Armada Perdana.CESL plans to redeploy the vessel to another field in Nigeria, said the statement.CESL has already paid $4.5 million out of a $5.5 million deposit to AOL, with the outstanding amount to be satisfied before the end of the year.Additional vessel expenses incurred from August 1 until the delivery date of the FPSO will be offset against the purchase price.Then…

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