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NEWS

  • Highlights of the Week Ending 1-Nov-2014

    Global dealsAEP continued its buying spree with a $726 million deal for Wolfcamp assets. KKR signed a $442 million carried interest agreement with Anadarko for the latter’s Eaglebine assets. Anadarko also divested its stake in the Vito field in deep-water GoM to FCX for...

    Highlights of the Week Ending 1-Nov-2014
    Headlines, Global Deals, Results & Reports, Projects & Capex, Exploration

    Global deals

    AEP continued its buying spree with a $726 million deal for Wolfcamp assets. KKR signed a $442 million carried interest agreement with Anadarko for the latter’s Eaglebine assets. Anadarko also divested its stake in the Vito field in deep-water GoM to FCX for $500 million. Carrizo expanded into Eagle Ford with a $250 million deal with Eagle Ford Minerals.

    Outside North America, PGNiG picked up assets on the Norwegian Continental Shelf from Total for $289 million. Ophir announced the acquisition of seven Indonesian permits from Niko Resources. Salamander Energy revealed that it has received a takeover proposal from Ophir Energy.

    Deal flow in the midstream segment continued to be strong with the merger announcement between Williams Partners and Access Midstream. Williams will merge with a subsidiary of Access and the MLP will be named Williams Partners LP. Western Gas Partners is buying Nuevo Midstream for $1.5 billion while ONEOK is acquiring Chevron’s NGL assets for $800 Million. Shell priced the IPO of its US Midstream affiliate.

    Meanwhile, BG expects to finalize a $4 billion sale of its gas pipelines in Queensland by Dec-2014.

    Exploration

    Sino Oil & Gas flowed gas from its second Hz well the Linxing PSC in China. Eni revealed significant gas shows off Borneo. It also hit oil in the Minsala Marine prospect off Congo. Petrobras found ‘good quality’ oil in an exploration well in the Libra prospect. Repsol cheered a hydrocarbon find in the Leon well in GoM.

    ExxonMobil commenced drilling its third deep-water well in Romania.

    Edgon Resources was disappointed by the lack of hydrocarbons in the Burton on the Wolds probe in UK.

    Projects and Capex

    The Q3 results season has begun and it has been a mixed bag so far. While ExxonMobil and ChevronConocoPhillipsShell showed improved profits on the back of refining and asset sales, the likes of TotalBPBGStatoilPTTEPSinopecSuncor suffered as costs rose and weak oil prices took their toll. Eni stuck to its production guidance for 2014 after a tepid show. Phillips 66 revealed blockbuster results as cheap North American crude helped double profits.

    Hess announced FID for the Stampede field in GoM. Meanwhile, the start-up of Chevron’s $12 billion Indonesia Deepwater Development project has been delayed by another two years.

    America’s LNG export plans continued to gather steam as Freeport LNG raised $3.8 billion for the first train.

  • Data analysis Chevron Q3-2014 Profit Up 13% on Assets Sales, Refining

    Chevron reported that its Q3-2014 net profit increased 13% YoY to $5.59 billion, on assets sales and strength in the refining, marketing and chemical segment, despite lower revenue and production.Earnings from exploration and production fell 8.7% YoY to $4.65 billion. Refining, marketing and chemical...

    Chevron Q3-2014 Profit Up 13% on Assets Sales, RefiningData analysis
    Headlines, Results & Reports

    Chevron reported that its Q3-2014 net profit increased 13% YoY to $5.59 billion, on assets sales and strength in the refining, marketing and chemical segment, despite lower revenue and production.

    Earnings from exploration and production fell 8.7% YoY to $4.65 billion. Refining, marketing and chemical operations earnings more than tripled to $1.39 billion from $380 million a year earlier.

    Chevron said its global oil-equivalent production for the period edged down to 2.57 MMBOE/d from the year-earlier tally of 2.59 MMBOE/d. A majority of Chevron's production consists of oil and liquid fuels, making it more exposed to crude prices than peers with output more evenly balanced between oil and gas. Oil prices peaked in Jun-2014 and have fallen by about 25%.

    Source: Reuters

  • ExxonMobil Q3-2014 Profit Rise 3% on Refining

    ExxonMobil reported a better-than-expected 3% YoY increase in Q3-2014 profit on higher results in its refining and chemicals businesses. Profit in Q3-2014 rose to $8.07 billion, from $7.87 billion in Q3-2013.Earnings in Exxon's exploration and production business fell 4.4% YoY to $6.4 billion as lower...

    ExxonMobil Q3-2014 Profit Rise 3% on Refining
    Headlines, Results & Reports

    ExxonMobil reported a better-than-expected 3% YoY increase in Q3-2014 profit on higher results in its refining and chemicals businesses. Profit in Q3-2014 rose to $8.07 billion, from $7.87 billion in Q3-2013.

    Earnings in Exxon's exploration and production business fell 4.4% YoY to $6.4 billion as lower crude oil prices took a toll. Profit in its refining business soared to $1.024 billion from $592 million a year earlier. Exxon's chemicals unit had a profit of $1.2 billion, up 17% YoY from a year earlier.

    Q3-2014 capex was $9.8 billion, down 7% to $10.5 billion.

    Source: Reuters

    View XOM's Q3-2014 result report

  • TransCanada Plans $1.34 Billion Pipeline for Ontario, Quebec

    TransCanada is planning a new, C$1.5 billion (US$1.34 billion) natural gas pipeline serving southern Ontario and Quebec, as it converts other lines to oil service as part of its massive Energy East pipeline project. The company said its 250 km Eastern Mainline pipeline project will have a capacity of 600...

    TransCanada Plans $1.34 Billion Pipeline for Ontario, Quebec
    Headlines

    TransCanada is planning a new, C$1.5 billion (US$1.34 billion) natural gas pipeline serving southern Ontario and Quebec, as it converts other lines to oil service as part of its massive Energy East pipeline project. The company said its 250 km Eastern Mainline pipeline project will have a capacity of 600 MMcf/d.

    The company has filed for regulatory approval for the gas pipeline project along with its application for the C$12 billion Energy East project, which will carry Western Canadian crude to refineries in Quebec and New Brunswick as well as supplying two tanker ports for shipments to the US, Europe and other markets.

    TransCanada and its shippers on Energy East will fund C$500 million of the gas-pipeline's cost, while the conversion of part of the company's existing gas network, valued at C$1 billion.

    Source: Reuters

  • Data analysis Carlyle-Vitol JV Looks to Buy European Refining Assets

    A joint venture between Carlyle Group and Vitol is looking to buy more midstream and downstream assets in Europe, including at least one refinery and storage facilities. "We're looking at top-quartile refineries...in good locations. They have to be the right size," JV Head Marcel van Poecke told...

    Carlyle-Vitol JV Looks to Buy European Refining AssetsData analysis
    Global Deals

    A joint venture between Carlyle Group and Vitol is looking to buy more midstream and downstream assets in Europe, including at least one refinery and storage facilities. "We're looking at top-quartile refineries...in good locations. They have to be the right size," JV Head Marcel van Poecke told reporters at the sidelines of a conference.

    Mr. Poecke added that the JV was also looking at buying storage terminals for distribution of products from its own refineries to end-consumers, rather than for third parties.

    Source: Reuters

  • Data analysis Synergy Buys Wattenberg Assets for $125 Million

    Synergy Resources has signed an agreement to acquire producing wells and leaseholds located in the Wattenberg Field, in Colorado. The purchase price of $125 million is comprised of $87.5 million in cash and $37.5 million in Synergy common stock.The acquired assets include non-operated working interests in...

    Synergy Buys Wattenberg Assets for $125 MillionData analysis
    Headlines, Global Deals

    Synergy Resources has signed an agreement to acquire producing wells and leaseholds located in the Wattenberg Field, in Colorado. The purchase price of $125 million is comprised of $87.5 million in cash and $37.5 million in Synergy common stock.

    The acquired assets include non-operated working interests in seventeen horizontal wells, ten of which are in production (including four mid-reach laterals) and seven are in progress of completion. The seven wells are expected to begin production before end-2014. Working interests in the non-operated horizontal wells ranges from 6% to 40%.

    In addition, the acquisition includes 73 operated and 11 non-operated vertical wells plus 5,040 gross acres (4,053 net) with rights to the Codell and Niobrara formations. Sep-2014 net production for the producing assets averaged 1.24 MBOE/d. Other assets purchased include 91 net horizontal PUD locations, 35 permits in process for operated horizontal wells (including 20 extended reach laterals), 3D seismic data and an additional 2,400 gross acres (1,739 net) with rights to other formations, including the Sussex, Shannon and J-Sand.

    View Synergy press release

  • Canadian Oil Q3 Profit Drops on Forex Loss, Lower Prices

    Canadian Oil Sands reported that its Q3-2014 net profit fell by nearly two-thirds to C$87 million (US$77.8 million), when compared to Q3-2013, on foreign-exchange losses, lower commodity prices and higher expenses.Its profit for the quarter was affected by a C$73 million loss on its US-denominated debt as the...

    Canadian Oil Q3 Profit Drops on Forex Loss, Lower Prices
    Headlines, Results & Reports

    Canadian Oil Sands reported that its Q3-2014 net profit fell by nearly two-thirds to C$87 million (US$77.8 million), when compared to Q3-2013, on foreign-exchange losses, lower commodity prices and higher expenses.

    Its profit for the quarter was affected by a C$73 million loss on its US-denominated debt as the Canadian dollar weakened. As well, it sold its crude for an average price of C$102.58/bbl, down from C$112.55/bbl.

    Sales volumes of Syncrude's synthetic crude oil averaged 87.8 Mbbl/d, up 4.2% YoY. Operating costs were C$385 million, up from C$357 million in Q3-2013, because of higher maintenance costs and increased natural gas prices.

    The company also lowered its production target for 2014. It now expects to produce a total 97 MMbbl of synthetic crude this year, down from its prior estimate of about 100 MMbbl.

    Source: Reuters

  • Fluor Bags Fabrication, Procurement Contract from Shell

    Fluor has been awarded a contract from Shell to supply modular fabrication and procurement services for 13 well pads for heavy oil extraction at its Carmon Creek project in northern Alberta. The project is expected to produce about 80 Mbbl/d of heavy oil from Shell’s Peace River operations using steam...

    Fluor Bags Fabrication, Procurement Contract from Shell
    Others

    Fluor has been awarded a contract from Shell to supply modular fabrication and procurement services for 13 well pads for heavy oil extraction at its Carmon Creek project in northern Alberta. The project is expected to produce about 80 Mbbl/d of heavy oil from Shell’s Peace River operations using steam recovery methods. 

    Fluor will fabricate the modules at the El Empalme yard located in Tampico, Tamaulipas, Mexico.

    View Flour press release

  • Oryx Flows Oil from Demir Dagh-7 Appraisal Well in KurdistanData analysis
    Exploration

    Oryx Petroleum has successfully completed testing the Demir Dagh-7 (DD-7) appraisal well, located in the Demir Dagh Field within the Hawler License, Kurdistan. Oryx achieved a maximum sustained natural flow rate of approximately 3.3 Mbbl/d of oil over a period of six hours restricted by a 48/64" choke.

    The well demonstrated high productivity comparable to the DD-2 well with expected production rate to exceed 5 Mbbl/d once the well is completed with an electrical submersible pump. DD-7 encountered similar crude qualities as tested in other wells in the Cretaceous reservoir in the field (20-22° API).

    Meanwhile, observations and data collected during drilling DD-8 were similar to the DD-7 well but mechanical failure in isolating the perforation interval resulted in an unsuccessful test. A short sidetrack is planned to be drilled and the Cretaceous reservoir re-tested in late Q4-2014 or early 2015.

    Oryx has also spudded DD-10 with drilling and testing expected to be completed in Q4-2014. While, DD-9 well will be spudded in shortly with drilling and testing expected to be completed in Q4-2014 or early 2015.

    Hawler License ownership: Oryx (65%, operator), KRG (20%) and KNOC (15%).

    View Oryx press release

    View Oryx's Iraq operations webpage

  • Sinopec Posts 12% Fall in Q3-2014 Profit

    Sinopec posted a 12% YoY fall in Q3-2014 net profit to CNY 19.3 billion (US$3.16 billion), partly because of lower international crude prices, weaker refining profits and slowing Chinese demand.Sinopec has been hurt by a sharp fall in international crude prices since Jun-2014, and an overcapacity in the...

    Sinopec Posts 12% Fall in Q3-2014 Profit
    Headlines, Results & Reports

    Sinopec posted a 12% YoY fall in Q3-2014 net profit to CNY 19.3 billion (US$3.16 billion), partly because of lower international crude prices, weaker refining profits and slowing Chinese demand.

    Sinopec has been hurt by a sharp fall in international crude prices since Jun-2014, and an overcapacity in the domestic refining and chemicals markets as a result of China's economic slowdown.

    Sinopec and PetroChina have been cutting capital spending and bringing private investment into their downstream businesses to enhance returns.

    Source: Reuters

  • Data analysis ConocoPhillips Q3-2014 Profit Up on Asset Sale

    ConocoPhillips reported a 8% YoY growth in Q3-2014 net profit to $2.7 billion, as a result of gains from sale of its Nigerian business . It also posted a 5% YoY rise in Q3-2014 production to 1.47 MMBOE/d. Growth was primarily due to new production from development programs and major projects, partially offset...

    ConocoPhillips Q3-2014 Profit Up on Asset SaleData analysis
    Headlines, Results & Reports

    ConocoPhillips reported a 8% YoY growth in Q3-2014 net profit to $2.7 billion, as a result of gains from sale of its Nigerian business . It also posted a 5% YoY rise in Q3-2014 production to 1.47 MMBOE/d. Growth was primarily due to new production from development programs and major projects, partially offset by normal field decline.

    Excluding Libya, the company’s 2014 production outlook for continuing operations has been reiterated at approximately 1.53-1.54 MMBOE/d.

    Operational highlights

    • US GoM: Expensed initial wildcat well costs of the Coronado prospect as dry hole
    • Canada: First oil achieved from Foster Creek Phase F, with production expected to ramp up over the next 12-18 months; Surmont 2 remains on track for first steam in mid-2015
    • Alaska: Sanctioned development of Kuparuk Drill Site 2S
    • Asia Pacific and Middle East: First oil achieved at Gumusut Field; APLNG remains on track for first production in mid-2015; Kebabangan project startup expected in Q4-2014
    • Europe: Startup was achieved at the Britannia Long-Term Compression project

    COP Chairman and CEO Ryan Lance commented: “Importantly, we expect strong growth in 2015 driven by ongoing success in the North American unconventionals and startup of several major projects, including Surmont 2 and APLNG. Capital spending on those projects peaked in 2014, which provides increasing capital flexibility.”

    View ConocoPhillips press release

  • Burton on the Wolds Probe in UK Disappoints EgdonData analysis
    Exploration

    Egdon Resources drilled a duster at the Burton on the Wolds-1 exploration well in PEDL201, Leicestershire, UK.

    The well reached a total depth of 1,086m and penetrated only ‘thin’ sands in the primary reservoir objective, the Rempstone Sandstone group, while the deeper secondary objective was encountered as ‘non-reservoir rock’.

    Electric wireline logs have been acquired in the well. Although weak hydrocarbon shows were observed while drilling through the Rempstone sands, interpretation of the log data indicates the thin sands to be ‘water-bearing’. The well is currently being plugged before the drilling rig is released from contract.

    Ownership of PEDL201: Egdon (32.5%, operator), Celtique Energie (32.5%), Terrain Energy (12.5%), Corfe Energy (12.5%) and Union Jack (10%).

    View Egdon press release

    View Egdon's UK operations webpage

  • Lundin Spuds Lindarormen Prospect in Norwegian SeaData analysis
    Exploration

    Lundin Petroleum has spudded the Lindarormen prospect (exploration well 6405/12-1) located in PL584, Norwegian Sea. The planned total depth is 3,280m below mean sea level and the well will be drilled using the semi-sub drilling unit Bredford Dolphin. Drilling is expected to take approximately 60 days.

    The main objective of well is to test the reservoir properties and hydrocarbon potential of Paleocene sandstones in the Rås Basin. Lundin Petroleum estimates the Lindarormen prospect to have the potential to contain unrisked, gross prospective resources of 194 MMBOE.

    Ownership of PL584: Lundin (60%, operator) and Bayerngas (40%).

    View Lundin press release  

  • Eni Signs Cooperation Agreement with Pemex

    Pemex and Eni have signed an MoU that establishes the basis for cooperation and knowledge sharing in the upstream, midstream and downstream areas.The MoU will also include cooperation and best practice exchanges in health, safety and environment as well as human capital management and training.View Eni press...

    Eni Signs Cooperation Agreement with Pemex
    Others

    Pemex and Eni have signed an MoU that establishes the basis for cooperation and knowledge sharing in the upstream, midstream and downstream areas.

    The MoU will also include cooperation and best practice exchanges in health, safety and environment as well as human capital management and training.

    View Eni press release

  • Data analysis PTTEP Q3-2014 Profits Decline 16% on Expenses

    PTTEP reported that its Q3-2014 net profit decreased 16% YoY to $477 million. The decline in profitability was attributed mainly to $256 million in depreciation of PTTEP Australasia and Contract 4 projects as well as greater exploration expenditure which was inflated to $77 million as a result of the...

    PTTEP Q3-2014 Profits Decline 16% on ExpensesData analysis
    Results & Reports

    PTTEP reported that its Q3-2014 net profit decreased 16% YoY to $477 million. The decline in profitability was attributed mainly to $256 million in depreciation of PTTEP Australasia and Contract 4 projects as well as greater exploration expenditure which was inflated to $77 million as a result of the write-off of the hydrocarbon searching cost for PTTEP Australasia and Kenya L10 A projects.

    Revenues grew by 14% YoY to $2 billion, largely buoyed by a rise in sales volumes which came to an average of 325 MBOE/d, up from 286 MBOE/d in Q3-2013.

    South East Asia operational highlights

    • Zawtika project, Myanmar: Commenced gas delivery to Thailand; Construction of additional wellhead platforms for Zawtika and drilling appraisal wells in the acreage underway
    • PSC G and EP 2 projects, Myanmar: Geological structure study in progress and spudding of exploration wells to follow soon

    Australasia operational highlights

    • Montara Field: Resumed normal ops after planned maintenance shutdown
    • Cash Maple Field: Exploration well abandoned as a dry hole
    • AC/P4 Block Permit: Relinquished after completing exploration drilling with no commercial prospect

    Africa and Middle East operational highlights

    • 433a & 416b project, Algeria: Construction of processing and pipeline facilities in progress; Production scheduled to begin at the rate of 20 Mbbl/d by end-2014
    • Rovuma Offshore Area 1 project, Mozambique: To drill appraisal wells to find additional reserves potential

    View PTTEP press release

  • Data analysis Eni Sticks to Output Guidance After Q3-2014 Slowdown

    Eni reiterated its 2014 production outlook after Q3-2014 net profit rose 2.5% YoY to €1.17 billion (US$1.49 billion), with lower taxes offsetting the negative impact of the fall in oil prices and production.Oil and gas production in Q3-2014 fell 4.7% YoY to 1.58 MMBOE/d, hit by mature field declines and...

    Eni Sticks to Output Guidance After Q3-2014 SlowdownData analysis
    Headlines, Results & Reports

    Eni reiterated its 2014 production outlook after Q3-2014 net profit rose 2.5% YoY to €1.17 billion (US$1.49 billion), with lower taxes offsetting the negative impact of the fall in oil prices and production.

    Oil and gas production in Q3-2014 fell 4.7% YoY to 1.58 MMBOE/d, hit by mature field declines and maintenance.

    The company, which is planning about €11 billion of asset sales, said it expected to cut capital expenditure for the full year compared with the €12.8 billion it invested in 2013.

    Source: Reuters

  • MOL Gets FDP Approval for Akri-Bijeel Block, Kurdistan

    Gulf Keystone reported that field development plan (FDP) of MOL-operated Akri-Bijeel Block in Kurdistan has been approved by the Minister for Natural Resources.The FDP is based on two discovery areas – Bijell and Bakrman. The development will be done in two phases, Phase I objective is to determine key...

    MOL Gets FDP Approval for Akri-Bijeel Block, Kurdistan
    Headlines, Exploration

    Gulf Keystone reported that field development plan (FDP) of MOL-operated Akri-Bijeel Block in Kurdistan has been approved by the Minister for Natural Resources.

    The FDP is based on two discovery areas – Bijell and Bakrman. The development will be done in two phases, Phase I objective is to determine key factors such as the reserves base, recovery factor, optimum surface facility design and overall field development cost. It will start immediately with four drilling rigs and one work over rig to help reduce the overall timeline with front-end-loading wherever possible for Phase II.

    Ownership of Akri-Bijeel: MOL (80%, operator) and Gulf Keystone (20%).

    View Gulf Keystone press release

    View Gulf Keystone operations webpage

  • Data analysis Shell Q3-2014 Profit Grows 31%

    Shell reported a 31% YoY jump in Q3-2014 net profit to $5.8 billion. Profit from upstream activities increased 25% YoY to $4.3 billion, supported by higher-margin production and lower exploration expenses. Profit from downstream activities doubled to $892 million, as refining margins expanded.Q3-2014...

    Shell Q3-2014 Profit Grows 31%Data analysis
    Headlines, Results & Reports

    Shell reported a 31% YoY jump in Q3-2014 net profit to $5.8 billion. Profit from upstream activities increased 25% YoY to $4.3 billion, supported by higher-margin production and lower exploration expenses. Profit from downstream activities doubled to $892 million, as refining margins expanded.

    Q3-2014 financial highlights

    • Revenue of $110 billion, down 7% YoY
    • Capex of $7.9 billion, down 18% YoY
    • Divestment proceeds of $3.6 billion

    Q3-2014 operational highlights

    • Production at 2.8 MMBOE/d (51% liquids), down 5% YoY; mainly due to Abu Dhabi license expiry, PSC price effects and security impacts in Nigeria
    • Liquids production of 1.4 MMBOE/d, down 4% YoY
    • Gas production at 7.9 Bcf/d, down 6% YoY

    View Shell press release

  • Eni Hits Oil at Minsala Marine Prospect Off CongoData analysis
    Headlines, Exploration

    Eni has made a ‘significant’ oil discovery in the Minsala Marine exploration prospect located in the Marine XII Block off Congo.

    The discovery was made through the Minsala Marine 1 well which was drilled in 75m of water depth and reached a total depth of 3,700m. The well encountered an accumulation of light oil in the Lower Cretaceous age pre-salt sequence, passing through a hydrocarbon column of 420m.

    Eni estimates the potential of Minsala Marine discovery at about 1 BBOE (80% oil).

    View Eni press release

    View Eni's Congo discoveries

  • Data analysis AEP to Raise $800 Million Subordinated Notes

    American Energy Partners’ (AEP) affiliate American Energy – Permian Basin (AEPB) intends to offer $800 million of exchangeable junior subordinated notes due 2022 in an unregistered offering to institutional investors.The net proceeds from the offering of the notes will be contributed to AEPB and...

    AEP to Raise $800 Million Subordinated NotesData analysis
    Others

    American Energy Partners’ (AEP) affiliate American Energy – Permian Basin (AEPB) intends to offer $800 million of exchangeable junior subordinated notes due 2022 in an unregistered offering to institutional investors.

    The net proceeds from the offering of the notes will be contributed to AEPB and used by it to fund pending acquisitions, accelerate development drilling, pay related fees and to repay all outstanding borrowings under its revolving credit facility.

    View AEP press release

  • Data analysis Murphy Q3-2014 Profit Slips on Lower Oil Prices

    Murphy Oil reported a 14% fall in Q3-2014 net profit to $ 245.7 million, on the back of lower average realized oil sales prices.Production rose 11% YoY to 230 MBOE/d due to higher production across the Gulf of Mexico and MalaysiaRoger W. Jenkins, President and CEO, said: "The signing of the Malaysia...

    Murphy Q3-2014 Profit Slips on Lower Oil PricesData analysis
    Results & Reports

    Murphy Oil reported a 14% fall in Q3-2014 net profit to $ 245.7 million, on the back of lower average realized oil sales prices.

    Production rose 11% YoY to 230 MBOE/d due to higher production across the Gulf of Mexico and Malaysia

    Roger W. Jenkins, President and CEO, said: "The signing of the Malaysia sales agreement marks the value of those long term assets at near $7 billion, and we continue to progress our exit of the downstream business in the United Kingdom. In production, we continue to set quarterly production records, with the Eagle Ford Shale and offshore Malaysia projects leading in oil growth."

    View Murphy press release

  • Data analysis Whiting Q3-2014 Profit Falls 23% on Lower Crude Prices

    Whiting Petroleum reported a 23% YoY decline in Q3-2014 net profit to $158 million, mainly due to lower crude prices.Whiting’s Q3-2014 production totaled 10.7 MMBOE (88% liquids), up 26% YoY, driven by higher Bakken/Three Forks output of 87 MBOE/d, up 33% YoY.The company also reiterated its 2014...

    Whiting Q3-2014 Profit Falls 23% on Lower Crude PricesData analysis
    Results & Reports

    Whiting Petroleum reported a 23% YoY decline in Q3-2014 net profit to $158 million, mainly due to lower crude prices.

    Whiting’s Q3-2014 production totaled 10.7 MMBOE (88% liquids), up 26% YoY, driven by higher Bakken/Three Forks output of 87 MBOE/d, up 33% YoY.

    The company also reiterated its 2014 production guidance of 40.7-41.3 MMBOE and 2014 capex of $2.8 billion.

    Whiting Chairman, President and CEO James J. Volker commented, “Despite the recent pullback in oil prices, we remain confident in our outlook for continued strong growth in our production and reserves... Also, Whiting has been proactive in rationalizing its portfolio to build a strong balance sheet and liquidity position. In conjunction with the pending Kodiak acquisition, we have arranged $3.5 billion of bank commitments under our credit facility. In addition, Whiting continues to review its asset base for further liquidity enhancements. In the last 15 months, Whiting has generated $1.1 billion of liquidity through asset sales.”

    View Whiting press release

  • Suncor Q3-2014 Profit Drops 46% on Prices, Weaker Output

    Suncor Energy reported a 46% YoY fall in Q3-2014 net profit to C$919 million (US$822 million) on the back of lower production and weaker commodity prices.The company also posted Q3-2014 production of 519 MBOE/d, down 13% YoY because of maintenance at its operations, lower output from its Libyan properties and...

    Suncor Q3-2014 Profit Drops 46% on Prices, Weaker Output
    Results & Reports

    Suncor Energy reported a 46% YoY fall in Q3-2014 net profit to C$919 million (US$822 million) on the back of lower production and weaker commodity prices.

    The company also posted Q3-2014 production of 519 MBOE/d, down 13% YoY because of maintenance at its operations, lower output from its Libyan properties and the sale of some Western Canadian reserves.

    Source: Reuters

  • Phillips 66's Q3-2014 Profit Soars on Cheap N American Crude

    Phillips 66 announced that its Q3-2014 net profit more than doubled to $1.18 billion from $535 million, as it benefited from cheap crudes produced by the North American onshore oil boom.The company said its realized refining margin was $10.89/bbl and that a record 95% of its crude slate came from so-called...

    Phillips 66's Q3-2014 Profit Soars on Cheap N American Crude
    Headlines, Results & Reports

    Phillips 66 announced that its Q3-2014 net profit more than doubled to $1.18 billion from $535 million, as it benefited from cheap crudes produced by the North American onshore oil boom.

    The company said its realized refining margin was $10.89/bbl and that a record 95% of its crude slate came from so-called advantaged US crudes.

    Although profits at the company's chemical, midstream and marketing units rose slightly or dipped during the quarter and earnings from the refining business climbed to $558 million from a loss of $30 million in Q3-2013.

    The company also announced its plans for investing in the midstream business and dropping assets into a new master limited partnership.

    Source: Reuters

  • Freeport Raises $3.8 Billion for First LNG Train

    Freeport LNG has raised approximately $3.85 billion for the development of its first train facility (Train One) at its proposed natural gas liquefaction and LNG loading facility on Quintana Island near Freeport, Texas.The Train One debt financing is being provided by Japan Bank for International Cooperation,...

    Freeport Raises $3.8 Billion for First LNG Train
    Headlines

    Freeport LNG has raised approximately $3.85 billion for the development of its first train facility (Train One) at its proposed natural gas liquefaction and LNG loading facility on Quintana Island near Freeport, Texas.

    The Train One debt financing is being provided by Japan Bank for International Cooperation, Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking Corporation, Mizuho Bank, Sumitomo Mitsui Trust Bank, Mitsubishi UFJ Trust and Banking Corporation and ING Bank.

    Michael S. Smith, CEO of Freeport LNG, noted: "We look forward to commencing construction of the initial two trains of the liquefaction project in the coming weeks and beginning commercial exports in 2018."

    View Freeport press release

  • BG Expects $4 Billion Australian Pipeline Sale by Dec-2014

    BG Group expects to finalize a $4 billion sale of gas pipelines in Australia's Queensland by 25-Dec-2014, a source close to the deal said. Bidders have been given a deadline of end-Nov-2014 to lodge final offers for the 335-mile pipeline, the source told, declining to be identified because of the...

    BG Expects $4 Billion Australian Pipeline Sale by Dec-2014
    Headlines, Global Deals

    BG Group expects to finalize a $4 billion sale of gas pipelines in Australia's Queensland by 25-Dec-2014, a source close to the deal said. Bidders have been given a deadline of end-Nov-2014 to lodge final offers for the 335-mile pipeline, the source told, declining to be identified because of the sensitivity of the sale process.

    Those expected to bid include Hong Kong's Cheung Kong Infrastructure Holdings and Australian Pipeline Ltd in a consortium with Marubeni. Queensland government fund Queensland Investment Corp and pension fund IMF are expected to lodge a joint bid, as is Australian fund manager AMP Ltd, the source added.

    Source: Reuters  

  • Data analysis BP Puts Rotterdam's Pernis Storage Terminal on Sale

    BP has put its Pernis storage terminal in Rotterdam up for sale as part of a broad push to sell assets. The 90-acre terminal is connected via pipeline to BP's 400 Mbbl/d Rotterdam refinery and is used for storing and loading oil products such as gasoline and diesel onto barges and trucks.The site has...

    BP Puts Rotterdam's Pernis Storage Terminal on SaleData analysis
    Global Deals

    BP has put its Pernis storage terminal in Rotterdam up for sale as part of a broad push to sell assets. The 90-acre terminal is connected via pipeline to BP's 400 Mbbl/d Rotterdam refinery and is used for storing and loading oil products such as gasoline and diesel onto barges and trucks.

    The site has storage capacity of 150 Mcm and includes a jetty terminal and loading facility.

    Source: Reuters

  • CNOOC Q3-2014 Output Remains Flat

    CNOOC posted marginally lower production for Q3-2014, when compared to Q3-2013, as its overseas output dipped slightly due to maintenance at some fields. Q3-2014 production reached 103 MMBOE, little changed from 103.4 MMBOE in Q3-2013.Production growth in Bohai offshore China remained steady, while overseas...

    CNOOC Q3-2014 Output Remains Flat
    Headlines, Results & Reports

    CNOOC posted marginally lower production for Q3-2014, when compared to Q3-2013, as its overseas output dipped slightly due to maintenance at some fields. Q3-2014 production reached 103 MMBOE, little changed from 103.4 MMBOE in Q3-2013.

    Production growth in Bohai offshore China remained steady, while overseas production fell slightly primarily due to scheduled maintenance at the Buzzard oilfield in the UK North Sea.

    During the period, the company's capex reached approximately CNY 26.33 billion (US$4.29 billion), up 19.6%, mainly due to the increase in the number of development projects and higher exploration costs on overseas deep-water projects.

    The company also posted Q3-2014 unaudited oil and gas sales revenue of CNY 53.57 billion, down 4.6% YoY.

    View CNOOC press release

  • Chevron's IDD Project Start-Up Further Defered by Two years

    The target for full operation of Chevron’s Indonesia Deepwater Development (IDD) gas project has been delayed by up to two years to around 2020.The delay to the $12 billion ultra-deepwater IDD project comes as Indonesia scales back exports of LNG and looks to future imports to help meet rapidly growing...

    Chevron's IDD Project Start-Up Further Defered by Two years
    Projects & Capex

    The target for full operation of Chevron’s Indonesia Deepwater Development (IDD) gas project has been delayed by up to two years to around 2020.

    The delay to the $12 billion ultra-deepwater IDD project comes as Indonesia scales back exports of LNG and looks to future imports to help meet rapidly growing domestic demand.

    Source: Reuters

  • Technip Bags Bangka Subsea Contract from Chevron

    Technip has secured a subsea contract from Chevron for the Bangka Development, located in Rapak PSC, Indonesia.The contract covers engineering, procurement, construction, installation, commissioning and pre-commissioning of flexibles, umbilical and subsea structures for the project.View Technip press release

    Technip Bags Bangka Subsea Contract from Chevron
    Others

    Technip has secured a subsea contract from Chevron for the Bangka Development, located in Rapak PSC, Indonesia.

    The contract covers engineering, procurement, construction, installation, commissioning and pre-commissioning of flexibles, umbilical and subsea structures for the project.

    View Technip press release

  • Data analysis Total Q3-2014 Profit Slips on Weak Oil Prices

    Total reported a 2% YoY slip in Q3-2014 net profit to $3.6 billion, due to weaker oil prices.Q3-2014 financial highlightsRevenue of $60.4 billion, down 2% YoYUpstream operating profit of $2.8 billion, down 10% YoYRefining and Marketing operating profit of $786 million, up 70% YoYInvestments of $7 billion...

    Total Q3-2014 Profit Slips on Weak Oil PricesData analysis
    Headlines, Results & Reports

    Total reported a 2% YoY slip in Q3-2014 net profit to $3.6 billion, due to weaker oil prices.

    Q3-2014 financial highlights

    • Revenue of $60.4 billion, down 2% YoY
    • Upstream operating profit of $2.8 billion, down 10% YoY
    • Refining and Marketing operating profit of $786 million, up 70% YoY
    • Investments of $7 billion (excluding acquisitions and including changes in non-current loans), up 7% YoY
    • Excluding A&D, net investments of $5.7 billion, up 19% YoY

    Q3-2014 operational highlights

    • Production was 2.1 MMBOE/d (49% liquids), down 8% YoY, in part due to expiration of ADCO License in UAE partially offset by lower planned maintenance and improved security conditions in Nigeria
    • Liquids production of 1.04 MMbbl/d, down 11% YoY
    • Gas production of 5.9 Bcf/d, down 4% YoY
    • Total refinery throughput of 1.9 MMbbl/d, up 7% YoY
    • CLOV project achieved plateau production of 160 Mbbl/d ahead of schedule
    • Launched development of Edradour and acquired an interest in Glenlivet in the UK

    View Total press release 

  • Data analysis FCX Buys Vito Deep-Water GoM Field from Anadarko

    Anadarko Petroleum has sold its 18.67% stake in its US GoM's Vito deep-water development project to Freeport-McMoRan, for $500 million.In addition, Anadarko also closed more than $200 million of other transactions entered during the Q3-2014 including the divestiture of a portion of its Utica assets in...

    FCX Buys Vito Deep-Water GoM Field from AnadarkoData analysis
    Headlines, Global Deals

    Anadarko Petroleum has sold its 18.67% stake in its US GoM's Vito deep-water development project to Freeport-McMoRan, for $500 million.

    In addition, Anadarko also closed more than $200 million of other transactions entered during the Q3-2014 including the divestiture of a portion of its Utica assets in Ohio, Bear Head in Nova Scotia and the Springfield gathering system in East Texas.

    View Anadarko’s Q3-2014 report

    View Freeport press release

  • Data analysis Statoil Sinks in to Red for Q3-2014

    Statoil reported a Q3-2014 net loss of NOK 4.8 billion (US$727 million), compared to a net profit of NOK 13.7 billion in Q3-2013, weighed down by a string of impairment charges on projects from Canada to Angola.Q3-2014 financial highlightsRevenue of NOK 147.4 billion, down 9% YoYDepreciation, amortization and...

    Statoil Sinks in to Red for Q3-2014Data analysis
    Headlines, Results & Reports

    Statoil reported a Q3-2014 net loss of NOK 4.8 billion (US$727 million), compared to a net profit of NOK 13.7 billion in Q3-2013, weighed down by a string of impairment charges on projects from Canada to Angola.

    Q3-2014 financial highlights

    • Revenue of NOK 147.4 billion, down 9% YoY
    • Depreciation, amortization and net impairment losses of NOK 27.6 billion, up 22% YoY
    • Expex of NOK 3.6 billion, down 34% YoY, reduced drilling and field development activities partly offset the decrease in adjusted earnings

    Q3-2014 operational highlights

    • Total production of 1.83 MMBOE/d (63% liquids), marginally lower than Q3-2013; Start-up and ramp-up of production on various fields partly offset the decrease by divestments and lower gas off-take on the Norwegian Continental Shelf
    • Total liquids production of 1.15 MBOE/d, up 3% YoY
    • Gas production of 678 MBOE/d, down 8% YoY

    Helge Lund, Statoil's President and CEO, noted: “Statoil delivered solid operational performance in the quarter, with continued high production regularity on the Norwegian Continental Shelf and project execution according to plan. We have deferred gas production to enhance value, but remain on track for delivering on our production guiding for 2014. Our quarterly earnings were impacted by divestments, seasonal effects and lower gas prices. For the first half of the year, earnings were around the same level as in the same period last year.”

    View Statoil press release

  • Noble Q3-2014 Profit Jumps 104% on Higher Prices

    Noble Energy reported a 104% YoY hike in Q3-2014 net profit to $419 million on the back of higher natural gas sales and prices.Q3-2014 financial highlightsRevenue of $1.3 billion, down 17% YoYCapex of $1.3 billion, down 16% YoYQ3-2014 operational highlightsDelivered production of 302 MBOE/d (43% liquids), up...

    Noble Q3-2014 Profit Jumps 104% on Higher Prices
    Headlines, Results & Reports

    Noble Energy reported a 104% YoY hike in Q3-2014 net profit to $419 million on the back of higher natural gas sales and prices.

    Q3-2014 financial highlights

    • Revenue of $1.3 billion, down 17% YoY
    • Capex of $1.3 billion, down 16% YoY

    Q3-2014 operational highlights

    • Delivered production of 302 MBOE/d (43% liquids), up 3% YoY; US sales volumes of 182 MBOE/d (51% liquids), up 14% YoY; International sales volumes 120 MBOE/d (43% liquids), down 15% YoY
    • DJ Basin: Drilled 75 wells, including 22 extended reach laterals, for average lateral length of more than 6,000 ft
    • Marcellus: Drilled 23 operated wells at average lateral length of more than 8,600 ft
    • GoM: Drilled one appraisal well (Dantzler-2)

    David L. Stover, Noble's President and CEO, commented: "Enhancements in our US onshore business are being delivered through continued focus on extended reach laterals, optimization of completion designs, and well downspacing in both the DJ Basin and Marcellus Shale. In addition, we brought forward significant value with the very successful IPO of our midstream Marcellus."

    View Noble Q3-2014 press release

  • Data analysis Western Gas Partners Buys Nuevo Midstream for $1.5 Billion

    Western Gas Partners, an Anadarko-affiliated MLP, has agreed to acquire Nuevo Midstream for $1.5 billion. The partnership expects the acquisition to close in Q4-2014.Nuevo's assets currently include a 300 MMcf/d cryogenic processing complex with an additional 400 MMcf/d of processing capacity that is...

    Western Gas Partners Buys Nuevo Midstream for $1.5 BillionData analysis
    Headlines, Global Deals

    Western Gas Partners, an Anadarko-affiliated MLP, has agreed to acquire Nuevo Midstream for $1.5 billion. The partnership expects the acquisition to close in Q4-2014.

    Nuevo's assets currently include a 300 MMcf/d cryogenic processing complex with an additional 400 MMcf/d of processing capacity that is scheduled to be in service in 2015, 275 miles of gathering pipeline, 1,800 gpm of amine treating capacity and four compressor stations. The assets serve production from Reeves, Loving and Culberson counties in Texas and Eddy and Lea counties in New Mexico.

    The partnership will partially finance the acquisition through the issuance to Anadarko of $750 million of Class C units. The Class C units will convert into common units on a one-for-one basis on 31-Dec-2017, unless the partnership converts such units earlier or Anadarko delays the conversion. The Class C units will be disregarded with respect to calculating the partnership's cash distributions until they are converted to common units.

    View Western Gas Partners press release

  • Data analysis Anadarko Q3-2014 Profit Soars on Higher Output, Asset Sales

    Anadarko Petroleum reported a 498% YoY rise in its Q3-2014 net profit to $1.09 billion, mainly due to higher output from its Wattenberg Field in Colorado and asset sale proceeds.Anadarko also posted a 10% YoY jump in Q3-2014 production to 849 MBOE/d, up from 775 MBOE/d in Q3-2013.The company raised its 2014...

    Anadarko Q3-2014 Profit Soars on Higher Output, Asset SalesData analysis
    Headlines, Results & Reports

    Anadarko Petroleum reported a 498% YoY rise in its Q3-2014 net profit to $1.09 billion, mainly due to higher output from its Wattenberg Field in Colorado and asset sale proceeds.

    Anadarko also posted a 10% YoY jump in Q3-2014 production to 849 MBOE/d, up from 775 MBOE/d in Q3-2013.

    The company raised its 2014 output forecast for the third time this year to 833-838 MBOE/d.

    Source: Reuters  

  • Eni Withdraws from Heron Area in Timor SeaData analysis
    Others

    MEO Australia reported that Eni has elected to withdraw from the Heron Area of NT/P68, approximately 300 km north-west of Darwin in the Timor Sea. As a consequence, MEO will regain a 100% participating interest in the area.

    Eni has also elected not to increase its participating interest in the Blackwood Area and has advised that it intends to retain 50% working interest. The parties have agreed on the process to negotiate certain amendments to the Blackwood Area agreements to define the basis of the JV’s future activities on Blackwood.

    The proposed amendments include agreement on the scope and commencement of Blackwood development studies, as required by the NT/P68 farm-in agreement, to determine whether the resources contained in the Blackwood Area are commercial to develop.

    View MEO press release  

  • KKR, Anadarko Sign $442 Million Eaglebine Deal

    Anadarko has signed a $442 million carried-interest agreement with KKR for its Eaglebine acreage. Under the agreement, Anadarko will convey 40% of its WI to KKR in approximately 91,000 net acres primarily located in Burleson, Brazos and Robertson counties, Texas.Through this agreement, KKR expects to...

    KKR, Anadarko Sign $442 Million Eaglebine Deal
    Headlines, Global Deals

    Anadarko has signed a $442 million carried-interest agreement with KKR for its Eaglebine acreage. Under the agreement, Anadarko will convey 40% of its WI to KKR in approximately 91,000 net acres primarily located in Burleson, Brazos and Robertson counties, Texas.

    Through this agreement, KKR expects to participate in more than 500 future horizontal wells.

    This is KKR’s first investment with Anadarko and first investment in the Eaglebine Formation.

    View KKR press release

    View Anadarko's Q3-2014 report

  • Shell Midstream Prices $920 Million IPO

    Shell Midstream Partners has priced an IPO of 40 million common units representing limited partner interests at $23 per common unit. The underwriters of the offering have a 30-day option to purchase up to an additional 6 million common units from Shell Midstream Partners.The common units will begin trading on...

    Shell Midstream Prices $920 Million IPO
    Headlines

    Shell Midstream Partners has priced an IPO of 40 million common units representing limited partner interests at $23 per common unit. The underwriters of the offering have a 30-day option to purchase up to an additional 6 million common units from Shell Midstream Partners.

    The common units will begin trading on the NYSE on 29-Oct-2014 under the ticker symbol "SHLX." 

    The offering is expected to close on or about 3-Nov-2014.

    View Shell Midstream press release

  • Data analysis AEP Buys Wolfcamp Assets for $726 Million

    American Energy Partners’ (AEP) affiliate American Energy – Permian Basin (AEPB) has acquired net production of 1.4 MBOE/d and 27,000 net acres of Wolfcamp leasehold located in the central Midland Basin, from multiple parties. These assets are located primarily in Reagan County, Texas, and will be...

    AEP Buys Wolfcamp Assets for $726 MillionData analysis
    Headlines, Global Deals

    American Energy Partners’ (AEP) affiliate American Energy – Permian Basin (AEPB) has acquired net production of 1.4 MBOE/d and 27,000 net acres of Wolfcamp leasehold located in the central Midland Basin, from multiple parties. These assets are located primarily in Reagan County, Texas, and will be acquired for $726 million.

    Following the closing of the transactions, AEPB will own approximately 90,000 net acres in the Wolfcamp play and will have 1P reserves of approximately 158 MMBOE. AEPB is targeting to produce an average of approximately 33-38 MBOE/d (70-75% oil) during 2015.

    AEPB anticipates financing the transactions with proceeds from a privately-placed offering of exchangeable notes to institutional investors during the next 60 days. Subject to market conditions, AEPB currently anticipates that it will pursue an IPO in the next 12 months.

    View AEPB press release  

  • Hess Makes FID for Stampede Field in GoM
    Headlines, Projects & Capex

    Hess has reached an FID to proceed with the development of the Stampede project located in the deep-water US Gulf of Mexico.

    Discovered in 2005, the Stampede Field is located approximately 115 miles south of Fourchon, Louisiana, in the Green Canyon Blocks 468, 511 and 512. The field is located in approximately 3,500 ft of water, with a reservoir depth of 30,000 ft. The plan initially calls for six subsea production wells and four water injection wells from two subsea drill centers tied back to a TLP. A two-rig drilling program is planned with the first rig commencing operations in Q4-2015. First production is expected in 2018.

    Gross topsides processing capacity for the project is approximately 80 Mbbl/d and 100 Mbbl/d of water injection capacity. Total estimated recoverable resources for Stampede are estimated in the range of 300-350 MMBOE. The development is estimated to cost approximately $6 billion.

    Ownership of Stampede project: Hess (25%, operator), Chevron (25%), Statoil (25%) and Nexen (25%).

    View Hess press release

    View Chevron press release

    View Hess' GoM operations webpage

  • Phillips 66, Energy Transfer Form Bakken JV

    Energy Transfer Equity, Energy Transfer Partners and Phillips 66 have formed two joint ventures to develop the Dakota Access Pipeline (DAPL) and Energy Transfer Crude Oil Pipeline (ETCOP) projects. The DAPL and ETCOP projects are expected to begin commercial operations in Q4-2016.Based on contractual...

    Phillips 66, Energy Transfer Form Bakken JV
    Others

    Energy Transfer Equity, Energy Transfer Partners and Phillips 66 have formed two joint ventures to develop the Dakota Access Pipeline (DAPL) and Energy Transfer Crude Oil Pipeline (ETCOP) projects. The DAPL and ETCOP projects are expected to begin commercial operations in Q4-2016.

    Based on contractual commitments to date, DAPL is expected to deliver in excess of 450 Mbbl/d of crude oil from the Bakken/Three Forks production area in North Dakota to market centers in the Midwest. DAPL will provide shippers with access to Midwestern refineries, unit-train rail loading facilities to facilitate deliveries to East Coast refineries, and the Gulf Coast market through an interconnection in Patoka, Illinois, with ETCOP.

    ETCOP will provide crude oil transportation service from the Midwest to the Sunoco Logistics Partners and Phillips 66 storage terminals located in Nederland, Texas.

    Ownership of Bakken JV: Energy Transfer (75%, operator) and Phillips 66 (25%).

    View Energy Transfer press release

  • Data analysis Lundin Spuds Kopervik Prospect in Norwegian North Sea

    Lundin Petroleum has spud the Kopervik prospect (well 25/10-12S) located in Norwegian North Sea’s PL625. The planned total depth of the well is 2,570m below mean sea level and is expected to take approximately 60 days.The main objective of the well is to test the reservoir properties and hydrocarbon...

    Lundin Spuds Kopervik Prospect in Norwegian North SeaData analysis
    Exploration

    Lundin Petroleum has spud the Kopervik prospect (well 25/10-12S) located in Norwegian North Sea’s PL625. The planned total depth of the well is 2,570m below mean sea level and is expected to take approximately 60 days.

    The main objective of the well is to test the reservoir properties and hydrocarbon potential of the Upper and Middle Jurassic Sandstones in the Kopervik sub-basin. Lundin estimates the prospect to have the potential to contain unrisked, gross prospective resources of 163 MMBOE.

    Ownership of PL625: Lundin (40%, operator), Bayerngas (20%), Maersk Oil (20%) and Petoro (20%).

    View Lundin press release  

  • Data analysis BG Q3-2014 Profit Drops 26% on Lower Output, Higher Costs

    BG Group reported a 26% drop in Q3-2014 net profit to $1.3 billion, on the back of ‘significant’ profit reductions in Kazakhstan as a result of revenue declines, continued decline of production in Egypt, and higher cost of new developments and shutdowns in the UK.Q3-2014 financial...

    BG Q3-2014 Profit Drops 26% on Lower Output, Higher CostsData analysis
    Headlines, Results & Reports

    BG Group reported a 26% drop in Q3-2014 net profit to $1.3 billion, on the back of ‘significant’ profit reductions in Kazakhstan as a result of revenue declines, continued decline of production in Egypt, and higher cost of new developments and shutdowns in the UK.

    Q3-2014 financial highlights

    • Upstream profit of $746 million, down 36% YoY; LNG segment profit of $576 million, down 4% YoY
    • Revenue of $4.58 billion, down 4% YoY, reflecting increase in Brazil oil volumes largely offset by lower net production across other fields and lower commodity prices
    • Upstream revenue of $2.91 billion, up 5% YoY; LNG segment revenue of $1.8 billion, marginally higher than previous quarter
    • Capex of $153 million, down 70% YoY

    Q3-2014 operational highlights

    • Total production of 569 MBOE/d (36% liquids), down 2% YoY; production increase in Brazil, UK and Bolivia offset by production decrease in Egypt and US
    • Gas production of 363 MBOE/d, down 8% YoY
    • Oil production of 206 Mbbl/d, up 11% YoY

    The group's 2014 production guidance remains unchanged at 590-630 MBOE/d, although production is now expected to be at the lower end of the range, given the issues in Egypt.

    View BG press release

  • BP Q3-2014 Profit Down 19% on Lower Prices, Forex

    BP reported a 19% YoY decline in Q3-2014 profit to $3 billion, mainly due to lower oil prices, expiry of an Abu Dhabi concession and depreciation of rouble against the dollar over the period.Q3-2014 financial highlightsUpstream pre-tax profit of $3.9 billion, down 11% YoYUpstream capex of $4.5 billion, down...

    BP Q3-2014 Profit Down 19% on Lower Prices, Forex
    Headlines, Results & Reports

    BP reported a 19% YoY decline in Q3-2014 profit to $3 billion, mainly due to lower oil prices, expiry of an Abu Dhabi concession and depreciation of rouble against the dollar over the period.

    Q3-2014 financial highlights

    • Upstream pre-tax profit of $3.9 billion, down 11% YoY
    • Upstream capex of $4.5 billion, down 6% YoY
    • Downstream pre-tax profit of $1.5 billion, up 114% YoY; driven by stronger refining environment and increased contribution from supply and trading activities

    Q3-2014 operational highlights

    • Total group reported production, including Russia, was 3.1 MMBOE/d, marginally higher than previous quarter; due to increased production from higher-margin areas in Upstream and higher production in Rosneft
    • BP reported underlying net income from Rosneft for the quarter of $110 million compared with $808 million in Q3-2013
    • Downstream: Refining availability maintained at 94.8%

    In exploration, three oil discoveries have been made since mid-year: Vorlich in the central UK North Sea, Xerelete in Brazil’s Campos Basin, and Guadalupe in the deep-water US GoM.

    View BP's Q3-2014 report

  • CNPC to Pay $400 Million to Settle Chad Dispute

    CNPC has agreed to pay $400 million in compensation to settle an environmental dispute with Chad, Oil Minister Djerassem Le Bemadjiel said.The dispute arose in Jul-2013 after Chad said it discovered large quantities of crude oil had been dumped into pits dug in the Koudalwa region, where CNPC has held...

    CNPC to Pay $400 Million to Settle Chad Dispute
    Headlines

    CNPC has agreed to pay $400 million in compensation to settle an environmental dispute with Chad, Oil Minister Djerassem Le Bemadjiel said.

    The dispute arose in Jul-2013 after Chad said it discovered large quantities of crude oil had been dumped into pits dug in the Koudalwa region, where CNPC has held licenses to several oil blocks since 2009.

    Source: Reuters

  • Chevron Achieves First Gas at Bibiyana Project, Bangladesh

    Chevron has commenced natural gas production from the Bibiyana Expansion project in the northeastern part of Bangladesh. The project included an expansion of the existing gas plant to process increased natural gas volumes from the Bibiyana Field, additional development wells and an enhanced gas liquids...

    Chevron Achieves First Gas at Bibiyana Project, Bangladesh
    Headlines, Projects & Capex

    Chevron has commenced natural gas production from the Bibiyana Expansion project in the northeastern part of Bangladesh. The project included an expansion of the existing gas plant to process increased natural gas volumes from the Bibiyana Field, additional development wells and an enhanced gas liquids recovery unit.

    The project is expected to boost Chevron-operated natural gas production capacity in Bangladesh by more than 300 MMcf/d to 1.4 Bcf/d. In addition, the project is expected to increase the company-operated NGL production capacity by 4 Mbbl/d to 9 Mbbl/d.

    Chevron has a 99% working interest in the Bibiyana Field.

    View Chevron press release  

  • Oaktree Buys Hess' Stake in HETCO

    Alternative investment management group Oaktree Capital Management has purchased Hess’ stake in energy trader HETCO. Oaktree will provide working capital to HETCO and has committed up to $500 million of additional capital for potential new investments in the commodity space.The main founders of HETCO,...

    Oaktree Buys Hess' Stake in HETCO
    Headlines, Global Deals

    Alternative investment management group Oaktree Capital Management has purchased Hess’ stake in energy trader HETCO. Oaktree will provide working capital to HETCO and has committed up to $500 million of additional capital for potential new investments in the commodity space.

    The main founders of HETCO, Stephen Hendel and Stephen Semlitz, will remain with the company after the acquisition. No financial details were released.

    The transaction is expected to close in Q1-2015.

    Source: Reuters

  • Saudi's Wasit Gas Plant to Start-Up in Q1-2015
    Projects & Capex

    Gulf Business reports, quoting industry sources, that Saudi Aramco-operated Wasit gas plant is expected to commence operations in Q1-2015.

    The plant, north of Jubail on the Saudi Arabia’s gulf coast, is anticipated to supply 1.75 Bcf/d of sales gas and could produce up to 3.05 Bcf/d to meet the peak demand. It will process 2.6 Bcf/d of non-associated gas from the offshore fields Hasbah and Arabiyah.

    View original article

    Disclaimer: 1Derrick has not verified this story and does not vouch for its accuracy.

  • Data analysis Repsol Cheers Hydrocarbon Find in Leon Well, GoM

    Ecopetrol reported that Repsol has discovered hydrocarbons in the Leon exploratory well located in the US Gulf of Mexico. The well, drilled to a total depth of 9,676m, is 354 km offshore and 1,865m deep in Keathley Canyon Block 642.The results for the well are being evaluated and that additional work is...

    Repsol Cheers Hydrocarbon Find in Leon Well, GoMData analysis
    Headlines, Exploration

    Ecopetrol reported that Repsol has discovered hydrocarbons in the Leon exploratory well located in the US Gulf of Mexico. The well, drilled to a total depth of 9,676m, is 354 km offshore and 1,865m deep in Keathley Canyon Block 642.

    The results for the well are being evaluated and that additional work is required to determine the size of the hydrocarbon deposit.

    Ownership of Keathley Canyon Block 642: Repsol (60%, operator) and Ecopetrol (40%).

    View Ecopetrol press release