Oil Production News

30 Mar 2020

Performance Shipping Delivers Aframax Tanker

 P. Kikuma (Photo: Performance Shipping)

Performance Shipping Inc. (NASDAQ: PSHG) has taken delivery of the M/T P. Kikuma (formerly FSL Shanghai), a 2007-built Aframax tanker of 115,915 dwt that the company entered into an agreement to purchase in February 2020."M/T P. Kikuma marks an additional step in becoming a pure tanker owning company," said Andreas Michalopoulos, the company’s Deputy CEO.

30 Mar 2020

Nigeria Announces Offshore Oil Worker Restrictions to Battle Coronavirus

© Jan/AdobeStock

Nigeria's petroleum regulator has ordered oil and gas companies to reduce their offshore workforce and move to 28-day staff rotations as part of measures to curb the spread of the coronavirus, according to a circular seen by Reuters.Health experts fear a widespread outbreak in Africa's most populous country, which has about 200 million inhabitants, and the country is keen to protect oil production, which provides 90% of much-needed foreign exchange.A coronavirus case on an offshore rig could spread quickly among workers and have a potentially devastating impact on production.Sarki Auwalu…

23 Mar 2020

Coronavirus-related Inspections Delay Venezuelan Oil Exports

© Igor Dashko / MarineTraffic.com

At least two cargoes of Venezuelan crude have been delayed due to health inspections aboard tankers to prevent the spread of the coronavirus, according to an internal document from state oil company Petroleos de Venezuela seen by Reuters.The delays add to a growing glut of tankers loaded with Venezuelan crude that preceded the coronavirus crisis as U.S. sanctions spooked potential customers. With domestic onshore oil inventories approaching capacity, PDVSA has been increasingly…

11 Mar 2020

Saudi's Bahri Books 14 VLCCs

Image: Bahri

Saudi Arabian shipping company Bahri chartered more than a dozen very large crude carriers (VLCCs) in Persian Gulf in 24 hours.According to Reuters, the Saudi Arabia’s National Shipping firm has tentatively chartered as many as 14 super-tankers to ship crude oil to customers worldwide, as the Kingdom follows through with its promise to boost crude oil output.The spike in bookings by Bahri has helped to more than double the charter rates for VLCC amid this week’s ‘fixing frenzy’, shipping sources said.

17 Feb 2020

Gazprom Neft, Mubadala Sign Tech Pact

Image: Gazprom Neft

Gazprom Neft, is the third largest oil producer in Russia, and Mubadala Petroleum (Abu Dhabi, UAE) have entered into a memorandum of understanding in the field of technological cooperation.The partners agreed to work together to create new technologies that include the development of innovative solutions in oil production and digitization of production processes.Gazprom Neft and Mubadala Petroleum are partners in the Gazpromneft-Vostok joint venture, which manages the development of 12 fields in the Tomsk and Omsk regions of Western Siberia.

02 Feb 2020

PGNiG Acquires Duva Field in Norway

Image: PGNiG

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

02 Feb 2020

US Lifts Sanctions on COSCO's Dalian Unit

© Anatoly Menzhiliy / Adobe Stock

The United States on Friday lifted sanctions on one of two units of the Chinese tanker company COSCO, the U.S. Treasury said, partially reversing its punishment on the company for transporting Iranian oil after China complained about the measure in trade talks with Washington.President Donald Trump's administration on Sept. 25 blacklisted two units of COSCO, named after the northeastern Chinese port of Dalian. The move sent worldwide freight costs to record highs and disrupted the global shipping market.The U.S.

27 Jan 2020

Libya's NOC Warning Over Impact of Oil Blockade

The head of Libya's state oil firm warned on Monday that if the international community tolerates a blockade on the country's oil industry it would be complicit in ending the rule of law in the country.The 10-day old blockade is the most extensive for years, shutting down fields and ports in the east and south of Libya and causing production to plunge to 262,000 barrels per day (bpd) from around 1.2 million.Production has gradually been falling since the blockade began as storage capacity in Libya's ports fills up, forcing Libya's National Oil Corp (NOC) to shut in production upstream.NOC Chairman Mustafa Sanalla said that at the Ras Lanuf port only 30% of storage capacity was operational…

14 Jan 2020

China Tax Waiver for Cleaner Ship Fuel Exports

Copyright: Suriyapong/AdobeStock

China has approved a long-awaited tax waiver on exports of cleaner ship fuel, paving the way for refiners to boost output, though Beijing may initially limit shipments to focus on growing its coastal marine fuel market, state refiner officials say.Ships globally have switched to lower sulphur fuels, or use emissions-removing devices, to comply with new rules imposed by the International Maritime Organization this year.China's State Council, or cabinet, gave the go-ahead to waive taxes on the 0.5% or very low sulphur fuel oil (VLSFO)…

20 Dec 2019

BY THE NUMBERS: the OSV Markets

US Offshore Support Vessel Analysis 2018 and 2019. The US GOM Offshore Support Vessel (OSV) market is suffering, utilization remains poor, and many owners are still squeezed financially. However, a poor market forces people to adapt and for those willing to take risks, the upside can be extremely large.US Owners 2018 vs. 2019: Within the US GOM, 2018 saw a period of strategic thinking and tactical business decisions. Tidewater Marine completed their merger with GulfMark Offshore to create the world’s largest OSV player.

13 Dec 2019

Japanese Partners Buy into Sepetiba FPSO

(File photo: SBM Offshore)

Mitsubishi Corporation (MC) and Nippon Yusen Kabushiki Kaisha (NYK) have purchased minority interests in the lease and operation of a newbuild floating production, storage and offloading unity (FPSO) from majority owner SBM Offshore. FPSO Sepetiba, formerly known as Mero 2, is currently under construction and will be leased for 22.5 years to Petrobras for deployment at the Mero field in the Santos Basin offshore Brazil. MC acquired 20% and NYK acquired 15.5% ownership interest in the companies.

12 Dec 2019

Norway's Oil Production Up in November

Photo: Morten Berentsen/NPD

Norway's preliminary production figures for November 2019 rose in November from the previous month, beating official forecast by 13.2%, said the Norwegian Petroleum Directorate (NPD).The average daily production stood at 2,016,000 barrels of oil, NGL and condensate in November, which is an increase of 235,000 barrels per day compared to October.Total gas sales were 10.0 billion Sm3 (GSm3), which is an increase of 0.6 GSm3 from the previous month.Average daily liquids production in November was: 1 711 000 barrels of oil…

08 Dec 2019

Offshore: OSV Market Report

Photo courtesy Ulstein Group/Marius Beck Dahle

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

24 Nov 2019

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

Image: Bureau of Safety and Environmental Enforcement (BSEE)

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

25 Nov 2019

GoM Oil Output Set for Record Year

Graph: Rystad Energy

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

24 Nov 2019

EIA, IEA Grossly Overestimating US Shale: ESAI

 Pic: ESAI Energy

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

15 Nov 2019

US Shale Sector Performs Well

Graph: Rystad Energy

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

13 Nov 2019

Hackers Demand $5M from Pemex

copyright Leo Lintang/AdobeStock

Hackers demanded about $5 million in bitcoin from Mexico's Pemex, they told Reuters on Tuesday, saying the state oil firm missed a special discount by not paying immediately after a cyberattack that fouled up the company's systems.The hack, which Pemex said it detected on Sunday, forced the company to shut down computers across Mexico, freezing systems such as payments, according to five employees and internal emails.Hackers have increasingly targeted companies with malicious programs that can cripple systems overseeing everything from supply chains to manufacturing…

24 Oct 2019

Brazil to Lead in Global FPSO Deployments

Graphs: GlobalData

Brazil continues to drive global floating production storage and offloading vessels (FPSOs) deployment with 21 planned and announced FPSOs during the period 2019 to 2025, according to GlobalData.Brazil is expected to deploy a total of 11 planned and ten announced FPSOs by 2025. The crude oil production capacity of these upcoming FPSOs is expected to be 2.5 million barrels per day (mmbd) during the outlook period. In Brazil, FPSOs are being deployed to develop hydrocarbons in the Santos and Campos basins.Brazilian state-controlled oil…

13 Oct 2019

Teekay Extends Hummingbird Spirit FPSO

Pic: Teekay Corporation

Teekay Corporation, a provider of crude oil and gas marine transportation services, has entered into an agreement with the Chestnut Joint Venture to extend the employment of the Hummingbird Spirit FPSO unit (Hummingbird) on the Chestnut field in the North Sea until March 2023.Chestnut is  a joint venture between Spirit Energy Ltd. and Dana Petroleum Ltd.The contract extension was done in conjunction with the Chestnut Joint Venture’s plan to drill a new well at the Chestnut field.The new Hummingbird contract took effect on October 1…

08 Oct 2019

NAT Bullish on Tanker Market

Picture courtesy: NAT

Bermuda-headquartered Nordic American Tankers (NAT) said that its tanker segment is on upswing mode following he strong market improvement for its Suezmax tankers."However, seeing is believing and if anyone had doubts, last week, the international shipbroking firm of Clarkson Platou Research reported the largest week-on-week increase in the history of their freight index,"pointed out the company.From Thursday to Friday last week, reported Suezmax rates jumped 60% on the day and 400% on the month…

04 Oct 2019

VLCC Rates Surge as U.S. Sanctions COSCO

File Image: AdobeStock / © Carabay

Freight rates to ship U.S. crude to Asia continued to surge, with costs to charter a supertanker rising to a record $12 million on Thursday, shipping sources familiar with the matter said.South Korea's top refiner, SK Energy, tentatively chartered the supertanker Maxim to ship U.S. crude to South Korea in November for a record $10 million earlier in the week but that fixture has since failed, the sources said.The company now has conditionally booked the Pacific M at a new record of $12.35 million…

03 Oct 2019

Chevron Sets New Goals for Greenhouse Gas Reduction

Image: Chevron

American multinational energy giant Chevron Corporation unveils new goals to reduce oil production-related greenhouse gas (GHG) emissions by 5% to 10% over a seven-year period ending 2023 as part of an ongoing effort to combat global climate change.The GHG emission intensity reduction metrics apply to all upstream Chevron oil and natural gas, whether Chevron has operational control or not. Emission intensity is the emission rate of greenhouse gas per unit of energy produced.“Global demand for energy continues to grow…

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