Vietnam Scraps South China Sea Oil Drilling Project
Vietnam's state oil firm PetroVietnam has ordered Spanish energy firm Repsol to suspend its "Red Emperor" project off the country's southeastern coast following pressure from China, the BBC reported on Friday. It would be the second time in less than a year that Vietnam has had to cancel a major oil development in the South China Sea under pressure from China. The move comes as Repsol was making final preparations for commercial drilling. A rig, the Ensco 8504, was scheduled to depart from Singapore for the drill site on Thursday, the report said, citing an unnamed energy industry source. The cancellation could cost Repsol and its partners $200 million in sunk investment, according to the BBC. Repsol and PetroVietnam executives could not immediately be reached for comment.
Despite Protests Gazprom Starts Arctic Oil Production
Gazprom says it has started producing oil from the Prirazlomnoye field, which is the first Russian project for developing the Arctic shelf and the commencement, they say, of their large-scale activities aimed at creating a large hydrocarbon production center in the region. The Prirazlomnoye oil field [scene of an earlier Greenpeace protest] is located in the Pechora Sea, 60 kilometers off the shore. The recoverable oil reserves amount to 71.96 million tons, projected oil production comes up to some 6 million tons a year (to be reached after 2020).
Subsea Production, Arctic Shelf Oil, Gazprom 2013 Milestones
Gazprom lists amongst its 2013 achievements: the first subsea gas production facility by any Russian company, and secondly, extraction of the first oil from the Russian Arctic Shelf. Russia's first subsea production facility was successfully tested in the Kirinskoye field within the Sakhalin III project. The subsea production facility makes it possible to produce gas with no platforms or other above-water facilities. The Kirinskoye field and other fields within the Sakhalin III…
Asian Oil, Gas Producers Stepping up Activity after Long Lull
Asia's oil and gas producers are starting to revive projects aimed at deflating years of ballooning energy imports after new investment dried up following the 2014 industry crisis. Spending has so far been driven mainly by state oil companies such as India's ONGC, Thailand's PTTEP and PetroVietnam, which need to produce more oil and gas to ensure their countries' energy security, executives said this week during an industry event in Kuala Lumpur, Malaysia. Asia is by far the biggest, fastest-growing consumer of oil, yet its output is falling faster than in any other region.
Barents Sea Driller Seeks Partner
The Prirazlomnoye field will be the first offshore oil field in the Russian Arctic to start production. After numerous postponements, the field is now to start producing oil early 2013 reports the 'Barents Observer'. Russia’s third biggest oil producer is negotiating with foreign companies over a possible partnership at the Dolginskoye field. “We believe it will be right to include partners in order to share and reduce the technological risks,” company President Aleksandr Dyukov told journalists. He confirms that negotiations are being held with several companies, but does not want to name the candidates, Oilru.com reports. Gazprom Neft, a subsidiary of Gazprom, in 2010 took over the licenses to the Dolginskoye field, as well as the Prirazlomnoye field, from its mother company.
Maersk's 3Q Profit Beats Street
Danish shipping and oil group A.P. Moller-Maersk's third-quarter net profit beat expectations, boosted by a strong performance at its container shipping business Maersk Line. Net profit rose 25 percent to $1.5 billion compared with the same period last year, Maersk said on Tuesday, beating an average forecast of $1.38 billion in a Reuters poll of analysts. It stuck to its forecast for an underlying profit for the full year of around $4.5 billion, but raised its net profit forecast for Maersk Line - the world's largest container shipping company - to above $2 billion from a previous forecast of "significantly" above $1.5 billion. The group said its improved results were due to strong performances at its main units of Maersk Line, Maersk Oil and port operator APM Terminals.
TEN Orders1A Ice-Class Suezmaxes
Tsakos Energy Navigation Limited (TEN) announced that it has ordered two suezmax, double hull, 1A ice-class tankers, with carrying capacity of 162,400 dwt each. The vessels are scheduled for delivery in the first half of 2007. Both vessels are to be constructed by Hyundai Heavy Industries (HHI), and represent the 26th and 27th vessels in TEN's newbuilding program since 1997. The vessels are specifically designed to meet the stringent requirements of classification societies and other regulatory bodies, the rules and guidelines of oil majors and various port authorities and terminals relating to environmental protection. Additionally, the 1A ice class specification ensures that the vessels will be able to operate in ice blocked ports.
Russia Ramps up Fuel Exports in Fight for European Market
Russia plans to sharply increase fuel exports and carve out a larger share of the European market following an extensive $55 billion modernisation of its refineries, companies' plans and analysts' reports show. Russia embarked on a modernisation of its biggest refineries in 2011 following a fuel shortage crisis. It also changed its tax system to favour production of cleaner and higher-quality fuel. The modernisation, which has not been completed yet, led to a surge in output of light products and exports, which has hurt European refineries' margins.
Aker Solutions Slow Out of the Blocks
"The slow start to 2013 is truly disappointing," says Øyvind Eriksen, Executive Chairman of Aker Solutions ASA. Aker Solutions decided to disclose preliminary information on its financial performance in the first three months of 2013 as the results so far considerably lag current consensus market estimates. Aker Solutions expects to report revenue of NOK 11.1 billion and earnings before interest, tax, depreciation and amortisation (EBITDA) of NOK 868 million for the first quarter of 2013. The earnings were impacted by increased costs at the Ekofisk Zulu platform project as work was accelerated to ensure the platform will be transported from the Egersund yard to the Ekofisk field in mid-June and start producing oil by October 2013.
Threat from wandering greenhouse gas
On the seafloor of the shallow coastal regions north of Siberia, microorganisms produce methane when they break down plant remains. If this greenhouse gas finds its way into the water, it can also become trapped in the sea ice that forms in these coastal waters. As a result, the gas can be transported thousands of kilometres across the Arctic Ocean and released in a completely different region months later. This phenomenon is the subject of an article by researchers from the Alfred Wegener Institute, published in the current issue of the online journal Scientific Reports.
Exxon Mobil buys LNG to Chill Papua New Guinea Project
ExxonMobil Corp has bought a liquefied natural gas (LNG) cargo to keep its Papua New Guinea plant cold after a powerful earthquake triggered a production halt last month, several trade sources said on Monday. The cool-down cargo could be a first step toward restarting LNG production at the facility ahead of schedule or it may simply be needed to maintain operational readiness, traders said. Stopping the liquefaction process which condenses gas into a liquid at minus 162 degrees Celsius causes LNG plants to warm up…
Construction Begins on Saudi Aramco's Shipyard Joint Venture
Construction work has begun on a joint venture to build a shipyard on Saudi Arabia's eastern coast, oil rig builder Lamprell Plc said in a statement on Friday. The joint venture, International Maritime Industries (IMI), started operations after reaching agreement for a loan from the state-backed Saudi Industrial Development Fund (SIDF), the statement said. The SIDF agreed in principle last year to provide 3.75 billion riyals ($1 billion) in financing for the project. IMI is a partnership between United Arab Emirates-based Lamprell, state oil giant Saudi Aramco, National Shipping Co of Saudi Arabia (Bahri) and South Korea's Hyundai Heavy Industries Co.
Sharp Contrasts in Markets Impact Van Oord
The year 2017 was dominated by the difficult market conditions in the dredging and oil & gas sectors, says Pieter van Oord, CEO, Van Oord, the Dutch contracting company that specializes in dredging and land reclamation. The global contractor specialising in dredging, marine engineering and offshore projects (oil, gas and wind) said that the volume of work in offshore wind was stable, and the market dynamic in the offshore wind sector will generate a lot of opportunities for years to come.
BP Platform ‘Atlantis’ Begins Gas Exports
BP Plc and BHP Billion Ltd. have started oil and gas exports from the Atlantis platform in the Gulf of Mexico. Atlantis, located about 150 miles south of New Orleans in 7,070-ft. of water, is designed to produce 200,000 barrels of oil and 180 million cubic feet of natural gas per day. The Atlantis started production in October and is expected to reach its capacity by the end of 2008.
ADNOC Signs Major Offshore Concession Agreements with Total
The Abu Dhabi National Oil Company (ADNOC) has signed agreements with Total of France, awarding them stakes in two of Abu Dhabi’s new offshore concessions. Under the terms of the agreements, Total has been awarded a 20% interest in the Umm Shaif and Nasr concession and a 5% interest in the Lower Zakum concession. Total is ADNOC’s largest and one of its longest international partners, active in Abu Dhabi’s oil and gas sector since 1939. Today, the French super-major collaborates with ADNOC across the value chain…
Shell Starts Bonga Phase 3 in Nigeria
Shell Nigeria Exploration and Production Company Ltd (SNEPCo) announced the start-up of production from the Bonga Phase 3 project. Bonga Phase 3 is an expansion of the Bonga Main development, with peak production expected to be some 50,000 barrels of oil equivalent, Shell said. This will be transported through existing pipelines to the Bonga floating production storage and offloading (FPSO) facility, which has the capacity to produce more than 200,000 barrels of oil and 150 million standard cubic feet of gas a day.
Gazprom Neft Starts Oil Production, Shipments from Iraqi Badra Field
Russia's Gazprom Neft said on Monday it started commercial production and shipments of oil produced at its Iraqi Badra oil field. Gazprom Neft, the oil arm of state gas company Gazprom , said that first oil was to be delivered via Iraq's pipeline system to the export terminal in Basrah. "Current deliveries from Badra to the pipeline stand at over 15,000 barrels of oil per day and this level should be maintained until the end of 2014," the company added. (Reporting by Katya Golubkova; Editing by Lidia Kelly)
Production Begins at North Sea Golden Eagle Field
Denmark's Maersk Oil, a unit of conglomerate A.P. Moller-Maersk , said on Monday oil production from the Golden Eagle field in Britain's North Sea had started. There are two Golden Eagle wells with potential to produce about 18,000 barrels of oil per day. Nexen Petroleum, a subsidiary of Chinese state-run CNOOC , has a 36.54 percent interest in the development and is the operator. Maersk Oil holds a 31.56 percent interest, Suncor Energy has 26.69 percent and Edinburgh Oil and Gas has 5.21 percent. Reporting by Ole Mikkelsen
Fire Aboard Teekay-owned FPSO Petrojarl Knarr
A fire started aboard the Teekay-owned FPSO Petrojarl Knarr this morning. The fire was the second aboard the FPSO unit, which was built in 2014, during its young life at sea. The blaze occurred just a week after the Petrojarl Knarr produced its first oil from the Knarr field in the North Sea. The fire erupted west of the Norwegian coastal town of Florø. The 100-member crew on board were all safe and Norwegian authorities quickly controlled the fire, according to TradeWinds. The previous fire occurred in October, when the unit was working for the UK's BG Group.
Libya Reaches Deal to Reopen Brega Oil Port
Libya state oil company National Oil Corp (NOC) has reached a deal with security guards to end a protest at eastern Brega oil port, which is expected to allow the terminal to reopen on Tuesday, a company spokesman said. Reopening Brega would allow the state-run Sirte Oil Company to start producing again and further boost Libya's output after an end to other port and oilfield protests. Late last week, the NOC said production was around 555,000 barrels per day. (Reporting by Feras Bosalum; writing by Patrick Markey, editing by David Evans)
DOI Signs Agreement on 1998/1999 Lease
ssistant Secretary of Land and Minerals Management, C. Stephen Allred signed agreements with BP, ConocoPhillips, Marathon Oil Company, Shell, and Walter Oil and Gas Corporation, addressing deepwater Gulf of Mexico offshore oil and gas leases issued in 1998 and 1999. Under the agreements these companies will pay royalties on oil and gas produced under leases issued in 1998-1999. Revenue will be received for products starting from October 1, 2006 onward. Deepwater leases issued during this time included a royalty incentive to encourage companies to explore for oil and gas in areas where the costs to explore and produce were high. The incentive allowed companies to produce a set volume of oil and gas before they would begin paying royalties.
Sovcomflot Better, Despite Challenging Year
PAO Sovcomflot (SCF Group), one of the world leaders in energy shipping and marine services to offshore oil and gas upstream projects, said that its gross revenue for the full year to 31 December 2017 grew by 3.4% to $1.43 billion. According to the statement, 2017 proved to be one of the worst years for the conventional tanker market in the last quarter of a century, with similar conditions experienced to those seen in 2011 and 1992. Conventional tanker freight rates fell by almost 50 per cent year-on-year…
Hardy Takes Over as Vitol CEO
Ian Taylor, who helped build Vitol into the world's biggest oil trader, will step down as chief executive and continue as chairman, the company said on Friday, naming a long-time ally and insider, Russell Hardy, as the new group CEO. Taylor said two years ago he was battling cancer although he continued to travel the world, chasing deals from Africa to the United States and Australia while also working as chairman of the board of trustees for London's Royal Opera House. Hardy, who started his career at BP and traded fuel oil, was long seen as one of two front-runners to succeed Taylor alongside another Vitol veteran Chris Bake. Vitol said in a statement that Hardy joined the firm in 1993 and held a number of trading and management roles in Singapore and London.