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Oryx Petroleum announced that it has successfully completed the testing of the BAN-1 exploration well targeting the Banan prospect, located in the Hawler License in Kurdistan. Successful testing of the well has confirmed Oryx´s fourth consecutive oil discovery in the Hawler license area.
Oryx successfully flowed oil in two of six cased-hole drill stem tests (DSTs) in the well. DST-1 was conducted over a 106m interval in the Butmah formation and flowed oil at a rate of 3.5 Mbbl/d for a 23-hour period. The oil was measured to have an API gravity between 27°-30°. DST-6 was conducted over a 123m interval in the Shiranish and Top Kometan formations and flowed oil at a rate of 820 bbl/d for a 12-hour period. The oil was measured to have an API gravity between 15°-21°.
The well was drilled to a depth of 4,000m utilizing the KS Discoverer 1 rig in mid-Sep-2013.
Hawler License ownership: Oryx (65%, operator), KRG (20%) and KNOC (15%).
Energy XXI announced the acquisition of EPL Oil & Gas for a total consideration of $2.3 billion, including the assumption of debt. The aggregate consideration will be paid 65% in cash and 35% in Energy XXI common shares, based on Energy XXI's closing price on 11-Mar-2014.As a result of the merger, Energy XXI will become...
Energy XXI announced the acquisition of EPL Oil & Gas for a total consideration of $2.3 billion, including the assumption of debt. The aggregate consideration will be paid 65% in cash and 35% in Energy XXI common shares, based on Energy XXI's closing price on 11-Mar-2014.
As a result of the merger, Energy XXI will become the largest public independent producer on the GoM shelf, with production of approximately 65 MBOE/d (70% oil).
Assets overview
Energy XXI Chairman and CEO John Schiller said, "EPL's assets and operations closely resemble our own, predominantly oil, with some of the highest margins in the industry and extraordinary opportunities for reserves and production growth through development and exploration activities."
Hyperdynamics Corporation announced that Tullow Oil has asserted a force majeure at its deep-water block located offshore Guinea.
Tullow states in its notice that the decisions by the US DOJ and the US SEC to open investigations into the activities of Hyperdynamics in obtaining and retaining the block rights constitute a force majeure event under the terms of the block’s PSC and JOA.
Tullow states that the asserted force majeure event prevents it from performing its contractual obligations under the PSC.
Block ownership: Tullow (40%, operator), Hyperdynamics (37%) and Dana Petroleum (23%).
Salamander Energy announced that it has successfully tested gas from the Upper Berai reservoir of the discovery well West Kerendan-1, located in the Bangkanai PSC onshore Indonesia.
A cased hole drill stem test undertaken on the primary target Upper Berai carbonates flowed gas from a 70m interval at a maximum rate of 18.6 MMcf/d, along with 181 bbl/d of crude oil. Salamander stated that it now intends to include the West Kerendan discovery in the Kerendan FDP.
In addition to the Upper Berai reservoir, Kerendan-1 also encountered gas in three other reservoirs: the Middle Miocene sandstones, the Lower Berai formation carbonates and the Tanjung formation sandstones. Volumes attributable to the Lower Berai carbonates are still being evaluated. Further, Salamander also plans to test the Tanjung sandstones, which indicated net gas pay of 8m.
Bangkanai PSC ownership: Salamander (70%, operator) and PT Saka Energi (30%).
Cott Oil & Gas announced that it has engaged Wison Offshore and Marine to prepare a FLNG facility concept study that would be suitable for the Pandora gas fields, located in PRL 38 off PNG. A positive outcome in the study, which is expected to be completed by end-Apr-2014, will allow the Talisman Energy-led JV in PRL 38 to commence pre-FEED operations.
The study is expected to outline a potential FLNG concept that would be appropriate for the resource, location, gas composition and expected production rates of Pandora. It would also provide preliminary advice and recommendations on several topics including financing options and economic viability of the FLNG concept.
The announcement follows an Expression of Interest from Wison in supporting the development of the Pandora fields with an FLNG facility. Currently, the company is building the Caribbean FLNG vessel for Exmar and Pacific Rubiales.
PRL 38 ownership: Talisman (25%, operator), Cott (40%), Kina Petroleum (25%) and Santos (10%).
Chevron announced that it plans to produce approximately 3.2 MMBOE/d in 2017, up from 2.6 MBOE/d in 2013. The planned 800 MBOE/d rise will be achieved by ramping up existing projects, and new start-ups.
Production outlook by 2017
Jay Johnson, Chevron’s SVP for the Upstream division, stated: “Our plan for production growth is solid and will be driven by near-term project ramp-ups as well as our larger major capital projects which begin starting up later this year. These projects are attractive, and when combined with profitable production growth from our shale and tight resource developments, are expected to add over 800 MBOE/d by 2017.”
View Chevron presentation from 11-Mar-2014
View in UCube: Upcoming Chevron Projects
Chevron announced that it plans to sell assets worth $10 billion during 2014-2016. This compares with sale proceeds of $7 billion received by the company during 2011-2013. Of this amount, approximately $2 billion was from sales in its upstream division. These included early-life divestments, such as those in the Browse...
Chevron announced that it plans to sell assets worth $10 billion during 2014-2016.
This compares with sale proceeds of $7 billion received by the company during 2011-2013. Of this amount, approximately $2 billion was from sales in its upstream division. These included early-life divestments, such as those in the Browse Basin and in the joint development area between Nigeria and Sao Tome, as well as mature divestments such as those in the North Sea, GoM and Alaska’s Cook Inlet.
Chevron also announced that it plans to allocate 67% of its spending in 2014-2016 to upstream exploration and production. The company allocated just 8% to its downstream and chemicals division, where it sold assets worth $2.5 billion in 2011-2013.
Oryx Petroleum announced that it has successfully completed the testing of the Demir Dagh-4 (DD-4) appraisal well. The well is located in the Demir Dagh field within the Hawler License in Kurdistan. A drill stem test conducted over a 53m interval in the Kometan formation flowed oil at a rate of 3.5 Mbbl/d for a six-hour period. The oil was measured to have an API gravity of 21°.
DD-4 was drilled to a depth of 1,895m utilizing the Romfor 22 rig in Dec-2013. It is located 1.5 km south-west of the discovery well Demir Dagh-2 (DD-2) and was completed as a producing well. The rig has since moved and has now spudded the appraisal well DD-5, located 2 km west of DD-2.
Hawler License ownership: Oryx (65%, operator), KRG (20%) and KNOC (15%).
Nido Petroleum announced that the Boni-1 side-track well, located in the Lundin Petroleum-operated Baronang PSC in Indonesia’s Natuna Sea, has been found to be water bearing. The well will now be permanently plugged and abandoned.
Boni-1 was drilled from the wellbore of the exploration well Balquis-1, which was also found to be dry. The side-track well, which was drilled to 2,542m, was targeting the Lower Gabus Formation sandstone approximately 800m west of the vertical Balquis-1 well.
On 24-Feb-2014, Nido Petroleum exercised its farm-in option to increase its participating interest in the PSC from 10% to 15%.
Nido Petroleum MD Phil Byrne commented: “Although Boni-1 was testing a higher risk stratigraphic trap, the result in conjunction with Balqis-1 well is a disappointing outcome. There are clearly good quality sandstone reservoirs developed in the Upper and Lower Gabus Formations in this part of the Baronang PSC. However, it is too early to determine why the wells failed to encounter hydrocarbons in these reservoirs.”
Baronang PSC ownership: Lundin (85%, operator) and Nido (15%).
MGM Energy has received a proposal from Paramount Resources to purchase all of the common shares of the MGM not currently owned by Paramount. Under the proposal, all shareholders of MGM Energy would receive one Class A common share of Paramount for every 300 common shares of MGM. Based on the current trading price of Paramount...
MGM Energy has received a proposal from Paramount Resources to purchase all of the common shares of the MGM not currently owned by Paramount. Under the proposal, all shareholders of MGM Energy would receive one Class A common share of Paramount for every 300 common shares of MGM. Based on the current trading price of Paramount common shares on TSX of approximately $45 per share, this represents $0.15 for every MGM Energy common share.
Paramount currently owns approximately 54 million common shares of MGM representing 13.9% of the currently issued and outstanding common shares of MGM.
WesternGeco and PGS have been awarded contracts by Statoil for 3D seismic acquisition in the south-eastern Barents Sea. Statoil will serve as the operator of the project, which also involves 33 other companies.The surveys cover blocks proposed for the 23rd concession round by the Norwegian Ministry of Petroleum and Energy....
WesternGeco and PGS have been awarded contracts by Statoil for 3D seismic acquisition in the south-eastern Barents Sea. Statoil will serve as the operator of the project, which also involves 33 other companies.
The surveys cover blocks proposed for the 23rd concession round by the Norwegian Ministry of Petroleum and Energy. In total, the surveys will cover an area of approximately 13,700 sq km.
The surveys will commence in Apr-2014 and continue throughout Q2-2014 and Q3-2014, with subsequent processing of data until the summer of 2015.
Cape announced that it has acquired UK-based Motherwell Bridge for a total consideration of £37.65 million (US$62.8 million). Motherwell Bridge, headquartered in Lanarkshire, Scotland, is a leading provider of storage tanks, gasholders and heat exchangers to the energy and steel markets. The total consideration...
Cape announced that it has acquired UK-based Motherwell Bridge for a total consideration of £37.65 million (US$62.8 million). Motherwell Bridge, headquartered in Lanarkshire, Scotland, is a leading provider of storage tanks, gasholders and heat exchangers to the energy and steel markets.
The total consideration includes an initial cash consideration of £34 million, debt of £0.9 million, deferred consideration of £1.25 million contingent on a key contract win and up to £1.5 million related to future performance.
Joe Oatley, CEO of Cape, said: "The acquisition of Motherwell Bridge is in line with Cape's strategy to broaden our portfolio of critical industrial services. By combining the strengths of Cape and Motherwell Bridge we are uniquely able to provide a complete tank maintenance solution to clients in the oil and gas market."
Alliance Oil announced that it has expanded its downstream marketing operations in the Russian Far East by acquiring approximately 75% stake in OJSC Kamchatnefteproduct.Kamchatnefteproduct has two oil product terminals and 18 gas stations. The transaction has been approved by the Russian Federal Antimonopoly Commission.View...
Alliance Oil announced that it has expanded its downstream marketing operations in the Russian Far East by acquiring approximately 75% stake in OJSC Kamchatnefteproduct.
Kamchatnefteproduct has two oil product terminals and 18 gas stations. The transaction has been approved by the Russian Federal Antimonopoly Commission.
Kamchatnefteprodukt operates in wholesale and retail trade of oil refining products. The company is based in Petropavlovsk-Kamchatsky, Russia as a subsidiary of Cyprus-based Vostok Oil.
Dong Energy announced that it has appointed Thomas Thune Andersen as Chairman of the Board.Mr. Andersen has many years of experience from the energy sector and has seats on the boards of Lloyd's Register Group, VKR Holding and Scottish & Southern Energy.With Mr. Andersen not assuming the position until an extraordinary...
Dong Energy announced that it has appointed Thomas Thune Andersen as Chairman of the Board.
Mr. Andersen has many years of experience from the energy sector and has seats on the boards of Lloyd's Register Group, VKR Holding and Scottish & Southern Energy.
With Mr. Andersen not assuming the position until an extraordinary general meeting, Dong's Nomination Committee has recommended that Benny D. Loft be elected Chairman at the annual general meeting to be held on 12-Mar-2014, in order to manage the chairmanship in the interim. The Nomination Committee has simultaneously recommended that Jorn Peter Jensen be elected new Deputy Chairman.
Statoil has announced that it will make some changes to its financial reporting standards based on the recommendations made by the Financial Supervisory Authority of Norway (Finanstilsynet). After the review of Statoil’s 2012 consolidated financial statements, Finanstilsynet identified three errors in relation to the...
Statoil has announced that it will make some changes to its financial reporting standards based on the recommendations made by the Financial Supervisory Authority of Norway (Finanstilsynet). After the review of Statoil’s 2012 consolidated financial statements, Finanstilsynet identified three errors in relation to the company’s reporting standards and has asked it to make the recommended changes.
Statoil believes that its practices were in line with the standards, but will nonetheless consider two of the recommendations made by the authority. However, the company intends to challenge the third issue.
The first error identified involves Statoil's practice related to the impairment testing of its non-financial assets. In order to rectify this error, Statoil will use reliability intervals in impairments tests to make sure there is no uncertainty in the way the company books impairments. The second error relates to Statoil's practice of CGU identification for its unconventional onshore asset, for which Statoil has changed its accounting approach.
The third issue is the timing of provision for a contract for import capacity of LNG to the US. Statoil intends to challenge the Ministry on this matter.
Caza Oil & Gas reported that the West Copperline 29 Fed #3H well, located on its Copperline Property in Lea County, New Mexico, has produced at a peak 24-hour rate of 879 bbl of oil and 1.4 MMcf of natural gas. This is Caza's third well in the Bone Spring formation.
Caza CEO W. Michael Ford commented: "We are excited about this result, as it demonstrates the significant upside to be realized from stacked pay sands in this area. Furthermore, our log and core data suggest the 2nd and 3rd Bone Spring Sands are only two of six potential pays present on this property, which indicates the potential for even greater upside with future development."
Caza currently has a 62.5% working interest (approximate 47.25% net revenue interest) in the West Copperline 29 #1H, #2H and #3H wells.
Max Petroleum has announced that the SAGW-13 appraisal well at the Sagiz West field in Kazakhstan has encountered net oil pay of 16m in the Triassic formation. Max is now setting production casing in the well and will begin testing SAGW-13 soon.
SAGW-13 was drilled to a depth of 1,577m using the Zhanros ZJ-30 rig. Next, the rig will be utilized to drill the SAGW-7 well, which is the final well of the company's current 11-well appraisal program at Sagiz West.
Triangle Energy has announced its intention to discontinue its Moroccan applications due to turbulent political landscape in the country.The company holds six exploration licenses in Morocco and had earlier submitted the proposed work programs for each license to Morocco’s Mines and Petroleum Office, ONHYM. However, ONHYM...
Triangle Energy has announced its intention to discontinue its Moroccan applications due to turbulent political landscape in the country.
The company holds six exploration licenses in Morocco and had earlier submitted the proposed work programs for each license to Morocco’s Mines and Petroleum Office, ONHYM. However, ONHYM has not yet reached an agreement with Triangle on the work programs and will be unlikely to do so in the near term. The company has decided not to allocate further resources to those licenses.
American Eagle Energy has notified its JV partner USG Properties Bakken I that it has exercised a purchase option to acquire additional interest in its Spyglass project area for $47 million. This transaction will increase the company's working interests on existing acreage from approximately 44% to 55% in its total Spyglass...
American Eagle Energy has notified its JV partner USG Properties Bakken I that it has exercised a purchase option to acquire additional interest in its Spyglass project area for $47 million. This transaction will increase the company's working interests on existing acreage from approximately 44% to 55% in its total Spyglass Area, and from approximately 51% to 60% in its proved area of Spyglass.
The additional interest equates to:
View American Eagle press release
Ghana will start processing gas from the Tullow Oil-operated Jubilee oil field by Sep-2014, according to Alex Mould, the head of state-run Ghana National Petroleum Corporation (GNPC). Construction work on the $750 million plant, originally scheduled to be completed last year, has been delayed because of financial and technical problems.
"Mechanical completion is expected at the end of this month... then commissioning that may take up to three months. So we believe that somewhere in the third quarter, it [gas processing] should happen," added Mr. Mould.
Ghana began commercial production of crude from the field in late 2010 with reserves estimates of up to 1.2 Bbbl. The field also has estimated reserves of up to 1.4 Tcf of gas. Oil production has slowed because of delays in starting gas processing.
Mr. Mould said that the plant would ramp up to a maximum 150 MMcf/d of gas, most of which would be fed into a plant for power generation.
Jubilee field ownership: Tullow (35.5%, operator), Kosmos (24.1%), Anadarko Petroleum (24.1%), GNPC (13.6%) and Sabre/PetroSA (2.7%).
Source: Reuters
South African petrochemicals group Sasol is keen to invest in Shell's shale acreage in the Karoo area of South Africa, according to its CEO David Constable."We are really interested in what is going in the Shell block and would love to farm in or take a piece of it,” stated Mr. Constable. South Africa's...
South African petrochemicals group Sasol is keen to invest in Shell's shale acreage in the Karoo area of South Africa, according to its CEO David Constable.
"We are really interested in what is going in the Shell block and would love to farm in or take a piece of it,” stated Mr. Constable.
South Africa's cabinet proposed new regulations to govern exploration for shale gas in 2013 after it lifted a 2012 moratorium on activity in the central Karoo region. However, the prospect of fracking occurring in the semi-arid and sparsely-populated Karoo region has raised concerns among conservationists. Mr. Constable said Sasol's experience in British Columbia would enable the company to carry out the process "in an environmentally friendly fashion".
Source: Reuters
YPF reported a 31.3% increase in its 2013 net profit to ARS 5.1 billion (US$650 million) on the back of higher prices and higher production.2013 financial highlightsRevenue of ARS 90.1 billion, up 34.1% YoYTotal capex of ARS 29.8 billion, up 81.1% YoY, in part due to increased development activity in the Neuquina basinUpstream...
YPF reported a 31.3% increase in its 2013 net profit to ARS 5.1 billion (US$650 million) on the back of higher prices and higher production.
2013 financial highlights
2013 operational highlights
Kazakhstan's Ministry of Oil and Gas has signed an MoU with CompactGTL to finance, design and build the world’s first small-scale gas-to-liquids (GTL) plant in Kazakhstan. CompactGTL expects the GTL plant to be operational in 2017. It is expected that initial engineering will take approximately 12 months,...
Kazakhstan's Ministry of Oil and Gas has signed an MoU with CompactGTL to finance, design and build the world’s first small-scale gas-to-liquids (GTL) plant in Kazakhstan.
CompactGTL expects the GTL plant to be operational in 2017. It is expected that initial engineering will take approximately 12 months, followed by a construction period of around two years. Up to 820 Mcm/d (29 MMcf/d) of associated gas that might otherwise be wasted will be fed through the plant to produce approximately 3 Mbbl/d of synthetic diesel.
InterOil announced that it has commenced the drilling of Wahoo-1 exploration well located in PPL 474, Papua New Guinea. Wahoo-1 is the second of four exploration wells the company plans to drill in the Gulf Province of Papua New Guinea over the next 12-15 months.
Additionally, InterOil will drill up to four appraisal wells on the Elk-Antelope and Triceratops discoveries under a $300 million exploration and appraisal program. The drilling program is one of the largest in Papua New Guinea and is part of InterOil’s exploration of four new petroleum prospecting licenses (PPL) granted last week by the Government of Papua New Guinea. The newly granted licenses – PPLs 474, 475, 476 and 477 – are valid for six years and cover the same area as PPLs 236, 237 and 238, which were previously held by InterOil.
InterOil owns 100% interest in PPL 474.
The partners in the Noble Energy-operated Tamar natural gas field said that they expect to sign a deal in the next few days to supply about $750 million worth of gas to IPP Delek Soreq, which is building a power plant in Israel. IPP Delek Soreq is controlled by Delek Group.
A total of 3.3 Bcm will be sold over 15 years, or when IPP Delek Soreq consumes the amount of gas in the contract, starting in Q1-2016. The contract may be extended by two more years if after 14 years the quantity has not been fully used.
The Tamar field, discovered in 2009 in the Mediterranean Sea off Israel, is estimated to hold more than 280 Bcm of gas. It began production a year ago and has already signed a number of deals in Israel. In Feb-2014, the Tamar partners agreed to sell at least $500 million of gas to two Jordanian companies, in the first deal outside of Israel.
Tamar ownership: Noble (36%, operator), Isramco Negev 2 (28.75%), Delek Group (15.62%), Avner Exploration (15.63%) and Dos Gas Exploration (4%).
Source: Reuters
The Norwegian Petroleum Directorate (NPD) announced that the Statoil-operated wildcat (35/11-16 S), located in PL248C in northern North Sea, is dry. The well will now be permanently plugged and abandoned.
The well was drilled to a vertical depth of 3,211m in a water depth of 367m. The objective of the well was to prove petroleum in Upper Jurassic reservoir rocks of the intra-Draupne formation sandstone. It is located approximately 5.5 km north of the Fram field.
This is the first exploration well in PL248C, which was carved out of PL248 in 2013.
PL248C ownership: Statoil (60%, operator) and Petoro (40%).
Global Energy Development (GED) has entered into an agreement with Everest Hill Energy Group to farm-out 50% interest in the Bolivar permit, located in Colombia’s Middle Magdalena Basin.
Transaction details
Everest is an affiliated company of the Quasha family trusts which also have an interest in Lyford Investments, an existing shareholder in GED.
BP has announced that it had mothballed plans to explore in Libya's Ghadames Basin because of security concerns. The company in its 2013 annual report said, "With respect to the onshore exploration drilling program, a security review in Jun-2013 concluded that this could not be safely and securely delivered by BP...
BP has announced that it had mothballed plans to explore in Libya's Ghadames Basin because of security concerns.
The company in its 2013 annual report said, "With respect to the onshore exploration drilling program, a security review in Jun-2013 concluded that this could not be safely and securely delivered by BP at this time. Alternative approaches are being considered.”
BP signed the agreement with Libya in 2007, when it was seen as a landmark deal that sealed former dictator Muammar Gaddafi's return to the international fold after years of sanctions. BP is still at the exploration stage and does not produce oil in Libya. Its assets there were worth $472 million at the end of 2013, according to its annual report.
Three years of turmoil since the Arab Spring and tough contract terms have prompted oil firms to reassess their role in Libya, and several have said they would postpone their plans or scrap them altogether.
Source: Reuters
Petrobras announced that it has confirmed the discovery of good quality oil at two wells located in the Transfer of Rights area in the Santos Basin. The wells are located in the Florim and Entorno de Iara pre-salt reservoirs respectively.
The Florim-2 well confirmed the discovery of good quality oil (29°API) at a depth of 5,412m. The well was drilled to a total depth of 5,679m. The Entorno de Iara-2 well also confirmed the discovery of good quality oil (26ºAPI) at a depth of 5,116m. The well, drilled to a depth of 5,907m, encountered a 526m thick oil column. The wells are located about 200-225 km off the coast of Rio de Janeiro.
The exploratory phase of these areas is expected to complete by Sep-2014. According to the Transfer of Rights Agreement, Petrobras may declare commerciality of the area by this date.
View in UCube: Production Forecast from Upcoming Petrobras Projects
Mermaid Marine Australia (MMA) has secured a contract for two PSVs from Inpex for A$160 million (US$145 million).
Under the contract, MMA will operate two newbuild Vard 1 08 PSVs for the Inpex-operated Ichthys LNG Project with a fixed term of five years plus options.
The PSVs will be built in Asia, for delivery to MMA in late 2015 and early 2016 respectively. They will be operated by an Australian resident crew, and will supply the Ichthys project’s offshore facilities from Darwin and Broome in Western Australia.
The Ichthys LNG Project aims to develop the Ichthys gas and condensate field discovered in the Browse Basin off Australia. The field is owned by Inpex (as operator), Total and a consortium of Japanese utility firms.
Swala Energy announced the signing of a binding farm-out agreement for a 25% interest in Block 12B, Kenya with an undisclosed company.
Under the agreement, the Farmee will pay all of Swala’s costs associated with:
Block 12B ownership, post transaction: Tullow (50%, operator), Swala (25%) and Undisclosed Farmee (25%).
China-based Landbridge Group has announced that it conditionally intends to make an unsolicited off-market takeover bid for all of the shares in WestSide Corporation. Each WestSide share will be acquired at a cash consideration of A$0.36, valuing WestSide at A$160 million (US$145 million).
WestSide operates the Meridian SeamGas coal seam gas fields in Queensland’s Bowen Basin, where it holds 51% interest, with Mitsui holding the remaining 49%. The project area contains, net to Westside, 732 Bcf of certified 3P reserves including 44 Bcf of 1P reserves and 327 Bcf of 2P reserves.
WestSide also operates an exploration and appraisal program at the Paranui, Tilbrook and Mount Saint Martin sites in Queensland.
United Rentals has entered into a definitive asset purchase agreement to acquire pump rental company National Pump for $780 million, comprising $765 million in cash and $15 million in stock. Under the terms of the agreement, United Rentals will also acquire GulfCo, a two-branch general rental business also based in...
United Rentals has entered into a definitive asset purchase agreement to acquire pump rental company National Pump for $780 million, comprising $765 million in cash and $15 million in stock. Under the terms of the agreement, United Rentals will also acquire GulfCo, a two-branch general rental business also based in Texas.
The deal marks United Rentals' foray into the pump rental sector.
National Pump, which was founded in 2007, will become part of United Rentals' specialty division. United Rentals, which also rents out forklifts, water pumps, diesel generators and earthmoving and trench safety equipment, said the deal offered significant cross-selling opportunities.
United Rentals President and CEO Michael Kneeland commented, “This transaction is an important step in our strategy to create a company that delivers strong financial returns through the cycle. We have been executing against a plan to strengthen and diversify our business, as demonstrated by our 18 specialty cold starts in 2013 and 13 planned for 2014”.
Global DealsThe week kick started with Snam, an Italian natural gas infrastructure company, announcing that it may launch a capital increase to acquire the TAG gas pipeline, which carries Russian gas into Italy. TAG’s current main shareholder, Italian state lender Cassa Depositi e Prestiti, bought the pipeline for...
Global Deals
The week kick started with Snam, an Italian natural gas infrastructure company, announcing that it may launch a capital increase to acquire the TAG gas pipeline, which carries Russian gas into Italy. TAG’s current main shareholder, Italian state lender Cassa Depositi e Prestiti, bought the pipeline for €719 million (US$971 million) in 2011. Later the same day, UIL Holdings entered into an agreement to acquire Philadelphia Gas Works, Philadelphia's municipally-owned natural gas utility, for $1.86 billion.
Meanwhile, BP announced that it plans to establish a separate business to manage its onshore oil and gas assets in the US Lower 48 states. The move is designed to improve competitiveness of the Lower 48 onshore business "through greater speed of innovation, faster decision-making, shorter cycle times...with more efficient cost management."
The week ended with a bang with Total announcing its plan to sell its LPG division, TotalGaz, for approximately €750 million (US$1.03 billion) and Indian Oil Corporation acquiring a 10% stake in Petronas-led Pacific Northwest (PNW) LNG export terminal in Canada.
Exploration
The week saw some discoveries which were offset by a few dusters. Talisman drilled a duster at the exploration well 07/03-CD-1X, located in the Block 07/03 off Vietnam. Lundin also announced that no hydrocarbons were encountered at the wildcat well Balqis-1, located in the Baronang PSC in Indonesia’s Natuna Sea.
Meanwhile, Statoil announced that it has successfully flowed gas from the Zafarani-2 discovery well, located in Block 2 off Tanzania. Oryx also cheered the discovery of natural gas and crude oil at the exploration well E-1, targeting the Elephant prospect in the Haute Mer A license off Brazzaville, Congo.
Projects & Capex
While Rosneft announced an investment of around $83 billion on developing the Vankor oil and gas field in Eastern Siberia over the next decade, Anadarko also made news announcing its plans to spend $7 billion, or 85% of its capital budget of $8.1 billion-$8.5 billion, on liquids production in 2014.
XOM also announced that it expects to produce about 4 MMBOE/d in 2014, little changed from last year.
Meanwhile, PTTEP announced that it has cut its five-year investment budget by 8% to $25 billion, due to lower investment requirements in the Kai Kos Dehseh (KKD) oil sands project in Canada after an asset swap with Statoil.
Rooster Energy has entered into an agreement with Morrison Energy Group to acquire 100% of the membership interest in Morrison Well Services for consideration of $95 million. The company has also entered into an agreement to acquire 100% of the membership interests in Cochon Properties for $30 million. Under the agreements,...
Rooster Energy has entered into an agreement with Morrison Energy Group to acquire 100% of the membership interest in Morrison Well Services for consideration of $95 million. The company has also entered into an agreement to acquire 100% of the membership interests in Cochon Properties for $30 million.
Under the agreements, Rooster will acquire Cochon, which owns oil and gas leases covering three shallow water oil and gas fields in the Gulf of Mexico, and Wells Services, the primary business of which is the plugging and abandonment of wells with 15 rigless plug and abandonment units.
Cochon assets overview
Robert P. Murphy, CEO of Rooster said, "We continue to see the shallow waters of the GoM as a key US producing basin with extensive reserves remaining in identified reservoirs and vast exploratory potential beneath the shadows of the established fields... Well Services, an established leader for well abandonment services in the Gulf, will be a key enabler for Rooster to continue its near infrastructure strategy while providing the same safe and efficient plug and abandonment services for existing and new clients in the Gulf of Mexico and beyond."
Indian Oil Corporation (IOC) has acquired 10% stake in Petronas-led Pacific Northwest (PNW) LNG export terminal in Canada for an undisclosed sum. As part of the transaction, IOC has also agreed to offtake 1.2 MMTPA of LNG, representing 10% of the LNG facility’s production, for a minimum period of 20 years.The...
Indian Oil Corporation (IOC) has acquired 10% stake in Petronas-led Pacific Northwest (PNW) LNG export terminal in Canada for an undisclosed sum. As part of the transaction, IOC has also agreed to offtake 1.2 MMTPA of LNG, representing 10% of the LNG facility’s production, for a minimum period of 20 years.
The development of PNW LNG's facility is progressing steadily with plans to reach a final investment decision by end-2014 and targeting first LNG exports in late 2018. The facility is designed for two trains of approximately 6 MMTPA each with the option for a third train of the same size.
PNW LNG ownership, post transaction: Petronas (77%, operator), IOC (10%), Japex (10%) and Petroleum Brunei (3%).
Southcross Energy Partners has acquired natural gas pipelines near Corpus Christi, Texas from Onyx Pipeline Company for $40 million in cash.The pipelines, which range from 12” to 24” in diameter, transport natural gas to two power plants in Nueces County, Texas under fixed-fee contracts that extend through 2029. The...
Southcross Energy Partners has acquired natural gas pipelines near Corpus Christi, Texas from Onyx Pipeline Company for $40 million in cash.
The pipelines, which range from 12” to 24” in diameter, transport natural gas to two power plants in Nueces County, Texas under fixed-fee contracts that extend through 2029. The total length of the pipelines is approximately 80 km. During 2013, the natural gas volumes transported through the pipelines averaged 97 MMcf/d.
David Biegler, Chairman and CEO of Southcross’ general partner, commented: "We are expanding our platform with the acquisition of these pipelines. They complement our integrated midstream strategy of delivering products to end-use markets and customers and are significant additions to our pipelines in the Corpus Christi area.”
The Jakarta Post reports:Pertamina EP has allocated $400 million to 2014 drilling activities, with a target to drill up to 87 development wells. The 2014 E&P budget is slightly lower than the 2013 budget, which was set at $460 million for drilling 111 development wells.Pertamina EP operations and production director Satoto...
The Jakarta Post reports:
Pertamina EP has allocated $400 million to 2014 drilling activities, with a target to drill up to 87 development wells. The 2014 E&P budget is slightly lower than the 2013 budget, which was set at $460 million for drilling 111 development wells.
Pertamina EP operations and production director Satoto Agustono said that the company was also planning to work on around 12-14 exploration wells, with each well roughly costing up to $15 million.
The company aims to increase its oil production by 8% YoY to 128 Mbbl/d in 2014. The company's gas production of 1.07 Bcf/d in 2013 is nearly 100% of the production target for 2014, according to Mr. Agustono.
The Economic Times reports:Total is planning to sell its LPG division, TotalGaz, for approximately €750 million (US$1.03 billion), a French daily reported citing unidentified sources. The company has mandated two banks to scout for buyers and plans to kick off the sale in Apr-2014.View original articleTotalGaz operates in...
The Economic Times reports:
Total is planning to sell its LPG division, TotalGaz, for approximately €750 million (US$1.03 billion), a French daily reported citing unidentified sources. The company has mandated two banks to scout for buyers and plans to kick off the sale in Apr-2014.
TotalGaz operates in more than 58 countries with annual revenues of approximately €300 million. The company is involved in the distribution of butane and propane.
Kazakhstan is suing the North Caspian Operating Company (NCOC) consortium developing the huge Kashagan oilfield in the Caspian Sea for 134.2 billion tenge (US$737 million) over damage to the environment, the Environment Protection Ministry said.
The Kashagan field, which is the world's biggest oil discovery in 35 years, took 13 years and approximately $50 billion to bring on-line. Production from Kashagan began in Sep-2013 but was stopped just weeks later after gas was found to be leaking from its pipelines. Residual sour gas was then burnt in flares at Kashagan's processing plants, polluting the environment, the ministry said in a statement. Checks at the oilfield showed that the volume of gas burnt in flares last Sep-Oct 2013 were 2.8 MMcm, exceeding legal limits, the ministry said.
NCOC ownership: KazMunaiGas (16.81%), ENI, (16.81%), ExxonMobil (16.81%), Shell (16.81%), Total (16.81%), Inpex (7.56%) and CNPC (8.33%).
Source: Reuters
Vallourec has been awarded a contract worth $100 million to supply pipes for the Total-operated Maharaja Lela Jamalulalam (MLJ) South Project off Brunei. MLJ South is located in Block B and is an extension of the producing MLJ field, which is located in a water depth of approximately 65m.
After a successful exploration campaign started in 2007 at the field, Total will commence a drilling program starting with six development wells from 2015.
Block B ownership: Total (37.5%), Shell (35%) and Government of Brunei (27.5%).
Oilex announced that it has commenced drilling operations at the Cambay-77H horizontal production well, located in India’s Cambay Basin. The rig is currently drilling ahead at 76m and is expected to take approximately 30 days to reach the total depth.
Cambay-77H is located adjacent to the Cambay-76H horizontal well that underwent a successful multiple staged fracture stimulation program in 2012 but was suspended due to mechanical problems.
Post-transaction ownership of Cambay PSC: Oilex (30%, operator), Gujarat State Petroleum Corporation (55%) and Magna Energy (15%).
Tethys Petroleum has announced that the exploration well AKK17, located in the Akkulka permit in Kazakhstan, has encountered a 4m gas-bearing interval. AKK17, which was drilled to a total depth of 653m, is the first shallow gas exploration well of the company's 2014 program.
Analysis of data from the well indicates that it is similar to the AKK15 well which tested gas at a stable rate of approximately 7 MMcf/d. The drilling rig has now been mobilized to the second shallow gas exploration well location, AKK18, where the drilling is expected to commence within the next week.
The current shallow gas program includes the drilling of up to ten new exploration wells and is targeting a three-fold increase in gas production by the beginning of 2015.
The Akkulka permit is wholly owned and operated by Tethys Petroleum.
Petronas’ subsidiaries Malaysia LNG (MLNG) and Petronas LNG Ltd (PLL) have signed contracts with Taiwan’s state-owned CPC Corp to supply up to 2.6 MMTPA of LNG for a period of six years.MLNG and PLL will deliver LNG to CPC from Q2-2014 and Q2-2015 respectively. The LNG will be shipped from the Petronas LNG complex in...
Petronas’ subsidiaries Malaysia LNG (MLNG) and Petronas LNG Ltd (PLL) have signed contracts with Taiwan’s state-owned CPC Corp to supply up to 2.6 MMTPA of LNG for a period of six years.
MLNG and PLL will deliver LNG to CPC from Q2-2014 and Q2-2015 respectively. The LNG will be shipped from the Petronas LNG complex in Bintulu, Sarawak and some other sources.
Petronas began its LNG supply to CPC in 1995 through a 20-year contract for 2.25 MMTPA of LNG.
Petroamerica has entered into an agreement with Parex Resources to farm-out 50% operated interest in the El Porton Block, located in Colombia.
Under the agreement, Parex has agreed to pay 80% of the dry-hole costs for Crypto-1, which is the next exploration well to be drilled on the block. Parex is expected to operate this well, which is anticipated to be spud during Q2-2014.
Petroamerica expects this farm-out to reduce its risk exposure and result in a capex reduction for 2014.
El Porton Block ownership, post transaction: Parex (50%, operator) and Petroamerica (50%).
The Norwegian Petroleum Directorate (NPD) announced that the Det Norske-operated Langlitinden wildcat (7222/11-2), located in PL659 in the Barents Sea, has encountered a gross oil column of 30m. However, preliminary assessments indicated that the discovery is not commercially interesting, and the well will now be permanently plugged and abandoned.
The Langlitinden well was drilled to a vertical depth of 2,918m in a water depth of 338m. The objective of the well was to prove petroleum reserves in Middle Triassic reservoir rocks from the Kobbe formation.
PL659 ownership: Det Norske (20%, operator), Petoro (30%), Lundin (20%), Tullow Oil (15%), Atlantic (10%) and Rocksource (5%).
View Det Norske operations webpage
Italian utility firm Edison is in talks to buy the Tanin and Karish gas fields from Noble Energy and Delek Drilling, according to sources with knowledge on the matter. The two fields are estimated to hold up to 70 Bcm (2.5 Tcf) of gas.
According to sources, Noble and Delek, which are developing the Leviathan gas field, are selling these gas fields to avoid being branded a cartel by Israel's antitrust authority. However, the talks are progressing slowly due to tough terms set by the antitrust authority, such as forcing the operator to build costly infrastructure and at the same time restricting sales to Israel's domestic market.
The sources further stated that Noble and Delek hope that the regulator would amend the terms so that the companies would be allowed to export some of the gas from the fields. The companies also hope that a buyer such as Edison would be allowed to merely lease capacity on existing or planned pipelines, rather than financing them itself.
Source: Reuters
LNG Ltd announced that it has been authorized by the US Department of Energy (DOE) to export an additional 4 MMTPA of LNG to Free Trade Agreement (FTA) countries from its Magnolia LNG project in Louisiana.This follows the DOE’s initial approval granted on 26-Feb-2013 to export up to 4 MMTPA of LNG to Free Trade Agreement...
LNG Ltd announced that it has been authorized by the US Department of Energy (DOE) to export an additional 4 MMTPA of LNG to Free Trade Agreement (FTA) countries from its Magnolia LNG project in Louisiana.
This follows the DOE’s initial approval granted on 26-Feb-2013 to export up to 4 MMTPA of LNG to Free Trade Agreement countries. The DOE authorization is valid for first LNG sales to commence within ten years and then for a period of 25 years from first LNG sales.
LNG Ltd MD Maurice Brand said: "Negotiations are progressing smoothly with the three proposed existing tollers for long-term tolling agreements, Brightshore Overseas, Gas Natural SDG and LNG Holdings. The company now has signed a fourth non-binding tolling term sheet with the AES Group and will be negotiating a long-term tolling agreement with that counter party as well."
Canacol Energy Ltd announced that operator, ExxonMobil, has successfully tested the La Luna Formation in the Mono Arana-1 exploration well located in the VMM2 license, Colombia. The well flowed at a gross rate of 590 bbl/d of 22° API oil.
As reported on 28-Jan-2013, the well encountered 230 ft of net oil pay within the naturally fractured Cretaceous La Luna Formation.
VMM2 ownership: ExxonMobil (70%, operator), Canacol (20%) and Vetra E&P (10%).
View Canacol Nov-2013 presentation
View in UCube: Recent XOM Discoveries
Canadian Natural Resources Limited (CNRL) reported a 17% YoY increase in Q4-2013 net profit to C$413 million (US$373 million) on the back of higher output at its Pelican Lake project in Alberta. CNRL said its heavy crude oil production at Pelican Lake jumped 27% YoY to about 46 Mbbl/d in Q4-2013.Q4-2013 highlightsRevenue of...
Canadian Natural Resources Limited (CNRL) reported a 17% YoY increase in Q4-2013 net profit to C$413 million (US$373 million) on the back of higher output at its Pelican Lake project in Alberta. CNRL said its heavy crude oil production at Pelican Lake jumped 27% YoY to about 46 Mbbl/d in Q4-2013.
Q4-2013 highlights
CNRL is also targeting 2014 production between 521-560 Mbbl/d of liquids and between 1.17-1.21 Bcf/d of natural gas.
