1Derrick. Bringing News, Data and Experts Together
A leading provider of business research for the Oil & Gas Industry

NEWS

  • Statoil: Resuming Ordinary Operations at In Amenas

    Statoil reported that its In Amenas gas plant, located in Algeria, will return to full output within months once its third and last processing train, damaged during an attack by Islamist militants 18 months ago, is repaired.A Statoil spokesman Knut Rostad said, "The work to repair the third processing...

    Statoil: Resuming Ordinary Operations at In Amenas
    Headlines, Projects & Capex

    Statoil reported that its In Amenas gas plant, located in Algeria, will return to full output within months once its third and last processing train, damaged during an attack by Islamist militants 18 months ago, is repaired.

    A Statoil spokesman Knut Rostad said, "The work to repair the third processing train is ongoing and it will take another few months before it is fixed, so that production can return to normal. When the third processing train is back, we expect to return to full production."

    View Statoil press release

  • Data analysis SapuraKencana Hits Gas at Bakong-1 Off Sarawak

    SapuraKencanca Petroleum has made a gas discovery at Bakong-1, the fifth and final well in its 2014 drilling campaign within the SK408 PSC area, offshore Sarawak, Malaysia. Bakong-1 has encountered a gross gas column in excess of 600m in the primary target reservoir located within Late Miocene...

    SapuraKencana Hits Gas at Bakong-1 Off SarawakData analysis
    Exploration

    SapuraKencanca Petroleum has made a gas discovery at Bakong-1, the fifth and final well in its 2014 drilling campaign within the SK408 PSC area, offshore Sarawak, Malaysia. Bakong-1 has encountered a gross gas column in excess of 600m in the primary target reservoir located within Late Miocene Carbonates.

    SK408 Block is located in shallow waters, approximately 120 km off Sarawak covering an area of approximately 4,480 sq km in the prolific Central Luconia Gas Province.

    Ownership of SK408 PSC:  SapuraKencana (40%, operator), Petronas (30%) and Shell (30%).

    View SapuraKencana press release

  • Lundin Spuds Vollgrav South Prospect in North SeaData analysis
    Exploration

    Lundin Petroleum has spud the Vollgrav South prospect (33/12-10 S) located in PL631, North Sea. The well is 150 km west of Florø on the Norwegian west coast and between the giant Gullfaks and Statfjord fields.

    The planned total depth is 3,050m below mean sea level and the well will be drilled using the drilling rig Bredford Dolphin. Drilling is expected to take approximately 55 days.

    The main objective of well is to test the reservoir properties and hydrocarbon potential of the Upper Jurassic Sandstones equivalent to the reservoir in the Borg Field (which forms part of the Tordis Field discovered by Saga Petroleum 20 km further north in 1992). Lundin estimates the Vollgrav South prospect to have the potential to contain unrisked, gross prospective resources of 57 MMBOE.

    Ownership of PL631: Lundin (60%, operator), Bayerngas (30%) and Fortis Petroleum (10%).

    View Lundin press release

    View Fortis operations webpage

  • Highlights of the Week Ending 30-Aug-2014

    Global DealsShellentered into agreements for some of its Nigerian oilfields which the company offered for sale in 2013. A Shell spokesman said, “We have signed sales and purchase agreements for some of the oil mining leases, but not all that we are seeking to divest.”Parsley Energyinked separate...

    Highlights of the Week Ending 30-Aug-2014
    Exploration, Projects & Capex, Global Deals, Headlines

    Global Deals

    Shell entered into agreements for some of its Nigerian oilfields which the company offered for sale in 2013. A Shell spokesman said, “We have signed sales and purchase agreements for some of the oil mining leases, but not all that we are seeking to divest.”

    Parsley Energy inked separate agreements with Cimarex Energy and other undisclosed sellers to acquire certain undeveloped acreage and producing oil and gas properties located in Reagan County, Texas, for $252 million.

    Exploration

    Shell, Tullow, BG, Cairn Energy, Lundin and YPF cheered hydrocarbon discoveries during the week. Shell encountered gas shows at the Marjoram-1 well located in Block SK318 off Malaysia. YPF also struck oil and gas at a drill located in the province of Santa Cruz, Patagonia. Lundin cheered discovery at its Luno II appraisal well (16/4- 8 S) located in PL359.

    Meanwhile, in Africa, Tullow announced three discoveries in Blocks 10BB and 13T onshore Kenya. BG flowed gas from its Mzia-3 well at a maximum rate of 101 MMcf/d. Cairn Energy also hit oil at the FAN-1 exploration well located in the Sangomar Offshore Block off Senegal.

    Projects & Capex

    CNOOC commenced production from its Wenchang 13-6 oilfield. Horizon Oil also made some progress after hitting about 96m at the Stanley-5 production well in PRL4, Papua New Guinea.

    Saudi Aramco announced in a conference that it is planning to invest $40 billion a year over the next decade to keep oil production capacity steady and double gas production.

    Energean Oil & Gas also launched a $225 million investment program to develop 30 MMbbl of reserves in North West Greece. 

  • Heimdalshoe Probe Disappoints Det Norske

    Det Norske did not hit any hydrocarbons at the Heimdalshoe wildcat (2/9-5S) located in PL494. The purpose of the well was to prove petroleum in Upper Jurassic reservoir rocks and to prove sandstones with hydrocarbons in the pre-Jurassic rocks.The well encountered a few thin sandstones with reservoir quality...

    Heimdalshoe Probe Disappoints Det Norske
    Exploration

    Det Norske did not hit any hydrocarbons at the Heimdalshoe wildcat (2/9-5S) located in PL494. The purpose of the well was to prove petroleum in Upper Jurassic reservoir rocks and to prove sandstones with hydrocarbons in the pre-Jurassic rocks.

    The well encountered a few thin sandstones with reservoir quality in the main target and only few and thin sandstones in the secondary target. No traces of hydrocarbons were proven.

    The well was drilled to a vertical depth of 3,525m below sea level and was completed in rocks expected to be of Permian age. The water depth is 65m. The well will now be permanently plugged and abandoned.

    Ownership of PL494: Det Norske (30%, operator), Dana Petroleum (24%), Fortis Petroleum (16%), Spike Exploration (15%) and Tullow Oil (15%).

    View Det Norske press release  

  • Lundin Hits Pay at Luno II Appraisal Well

    Lundin Petroleum has encountered 500m of gross sandstone section of Jurassic/Triassic age at its Luno II appraisal well (16/4- 8 S) located in PL359. The Luno II discovery is located approximately 15 km south of the Edvard Grieg Field on the Norwegian Continental Shelf. The well was drilled to a total depth...

    Lundin Hits Pay at Luno II Appraisal Well
    Exploration

    Lundin Petroleum has encountered 500m of gross sandstone section of Jurassic/Triassic age at its Luno II appraisal well (16/4- 8 S) located in PL359. The Luno II discovery is located approximately 15 km south of the Edvard Grieg Field on the Norwegian Continental Shelf. The well was drilled to a total depth of 2,700m in a water depth of 100m.

    The main objectives of well were to confirm the reservoir properties and petroleum potential of the Central South segment. A gross oil column of 30m has been proven, underlying a thin gas cap. The pressure data indicates a barrier towards the discovery well 16/4-6 S. Extensive data acquisition and sampling was carried out in the reservoir, including conventional coring and fluid sampling.

    One production test was performed in the oil zone, producing at a rate of 450 bbl/d through a 28/64" choke. Reservoir properties were lower than expected in this part of the structure.

    The revised gross contingent resource range for Luno II is estimated at between 27-71 MMBOE.

    View Lundin press release

  • Atlantic Acquires Interest in Two Norwegian Licenses

    Atlantic Petroleum has acquired Ithaca Petroleum’s 10% interest in PL601 and PL602 in the Norwegian Sea. The agreements are subject to government approval.The transaction is a result of Atlantic’s strategic focus in this area. With the previously announced commercial agreement with Repsol on PL528...

    Atlantic Acquires Interest in Two Norwegian Licenses
    Others

    Atlantic Petroleum has acquired Ithaca Petroleum’s 10% interest in PL601 and PL602 in the Norwegian Sea. The agreements are subject to government approval.

    The transaction is a result of Atlantic’s strategic focus in this area. With the previously announced commercial agreement with Repsol on PL528 and the increased exposure in PL602 and PL601, Atlantic Petroleum reduces risk while securing protection area surrounding PL528 where the Ivory well is expected to spud in Sep-2014.

    View Atlantic press release

  • Shell Submits Revised Drill Plan for Arctic

    Shell has sought permission from the US government to drill in the Arctic Ocean and is keeping open the possibility that it could drill there next summer.The company has not made a definite decision to drill in the Arctic next year yet but it wanted to keep the option open and required permits and a court...

    Shell Submits Revised Drill Plan for Arctic
    Headlines

    Shell has sought permission from the US government to drill in the Arctic Ocean and is keeping open the possibility that it could drill there next summer.

    The company has not made a definite decision to drill in the Arctic next year yet but it wanted to keep the option open and required permits and a court decision to go in its favor.

    Source: Reuters

  • Data analysis Crew to Sell Alberta Assets for $138 Million

    Crew Energy plans to sell its liquids-rich assets in Princess, Alberta, for C$150 million (US$138 million) to focus on the development of its core Montney properties in British Columbia.The assets to be sold comprise 259,234 net acres of petroleum and natural gas rights and current production of 3.7 MBOE/d...

    Crew to Sell Alberta Assets for $138 MillionData analysis
    Global Deals

    Crew Energy plans to sell its liquids-rich assets in Princess, Alberta, for C$150 million (US$138 million) to focus on the development of its core Montney properties in British Columbia.

    The assets to be sold comprise 259,234 net acres of petroleum and natural gas rights and current production of 3.7 MBOE/d (78% liquids), based on field estimates. As of 31-Dec-2013, the assets held 1P reserves of 12.4 MMBOE (86% liquids) and 2P reserves of 22.7 MMBOE (87% liquids) with total future development capital of $70 million.

    The company has also trimmed its 2014 average production forecast to 24.5-25.5 MBOE/d from 25.5-26.5 MBOE/d.

    View Crew press release

  • Data analysis CNOOC H1-2014 Profit Falls 2.3% on Higher Costs

    CNOOC reported a 2.3% YoY drop in its H1-2014 net profit to CNY 33.6 billion (US$5.5 billion) due to a surge in production costs.Benefited from the 6.8% YoY growth in production and increase in realized oil and gas prices, the company recorded CNY 117.1 billion in oil and gas sales revenue, up 5.7% YoY.During...

    CNOOC H1-2014 Profit Falls 2.3% on Higher CostsData analysis
    Results & Reports

    CNOOC reported a 2.3% YoY drop in its H1-2014 net profit to CNY 33.6 billion (US$5.5 billion) due to a surge in production costs.

    Benefited from the 6.8% YoY growth in production and increase in realized oil and gas prices, the company recorded CNY 117.1 billion in oil and gas sales revenue, up 5.7% YoY.

    During H1-2014, CNOOC continued to advance the integration of Nexen, especially in the areas of management and resources development. Production efficiency of Buzzard oilfield in the UK North Sea was further enhanced, while production and operation of Long Lake oil sands project achieved significant improvement.

    View CNOOC press release

  • Ziff Brothers Mulls Exiting $1.2 Billion Energy Portfolio

    Bloomberg reports that Ziff Brothers Investments LLC, which manages the family fortune derived from William Ziff’s magazine-publishing empire, plans to sell its energy private-equity investments.The investment company is seeking to sell holdings in six oil and gas companies valued at about $1.2 billion,...

    Ziff Brothers Mulls Exiting $1.2 Billion Energy Portfolio
    Global Deals, Headlines

    Bloomberg reports that Ziff Brothers Investments LLC, which manages the family fortune derived from William Ziff’s magazine-publishing empire, plans to sell its energy private-equity investments.

    The investment company is seeking to sell holdings in six oil and gas companies valued at about $1.2 billion, said two people with knowledge of the matter, who asked not be identified because the information is private. Under the agreement, the potential buyer will also be required to provide an additional $300-$400 million in follow-on capital to those investments made by the Ziff unit, known as ZBI Ventures.

    View original article

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

  • ArcLight Looks to Raise $4 Billion for Shale Infrastructure

    Bloomberg reports that ArcLight Capital Partners is looking to raise $4 billion for a PE fund to invest in energy infrastructure in various shale plays.The fund will focus on North American investments in pipelines, storage, terminals, electric transmission and production of oil and natural gas, said two...

    ArcLight Looks to Raise $4 Billion for Shale Infrastructure
    Headlines

    Bloomberg reports that ArcLight Capital Partners is looking to raise $4 billion for a PE fund to invest in energy infrastructure in various shale plays.

    The fund will focus on North American investments in pipelines, storage, terminals, electric transmission and production of oil and natural gas, said two people with knowledge of the matter, who asked not to be named because the information is private.

    View original article

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

  • Data analysis Tullow Makes Three Discoveries in Kenya

    Tullow Oil announced three discoveries in Blocks 10BB and 13T onshore Kenya.In Block 10BB, the Ngamia-3 well encountered 150m of net oil pay in both Auwerwer and Lokone reservoirs. The well has been suspended for likely use in future interference testing, appraisal and development activities. The well was...

    Tullow Makes Three Discoveries in KenyaData analysis
    Exploration, Headlines

    Tullow Oil announced three discoveries in Blocks 10BB and 13T onshore Kenya.

    In Block 10BB, the Ngamia-3 well encountered 150m of net oil pay in both Auwerwer and Lokone reservoirs. The well has been suspended for likely use in future interference testing, appraisal and development activities. The well was drilled 1.6 km north of the Ngamia-1 discovery well.

    The Amosing-2 well, located in the same block, encountered up to 30m net oil pay. As planned, the well was then sidetracked back to some 400m from the discovery well to provide additional insight into reservoir distribution in the area and for use in interference testing, planned to start later in 2014. The Amosing-2A sidetrack encountered up to 90m net oil pay in several oil pools.

    The Etom-1 well, located in the Block 13T, encountered approximately 10m of net oil pay, extending the proven oil basin significantly northwards. Based on this result the ongoing 550 sq km 3D seismic survey in the South Lokichar basin has been extended to cover a further 247sq km in this northern area, including several similar prospects which are scheduled to be drilled in 2015.

    View Tullow press release

  • Data analysis Shell Confirms Nigeria Oilfields Sale

    Shell has entered into agreements for some of its Nigerian oilfields which the company offered for sale in 2013. A Shell spokesman said, “We have signed sales and purchase agreements for some of the oil mining leases, but not all that we are seeking to divest.”In several rounds of divestments,...

    Shell Confirms Nigeria Oilfields SaleData analysis
    Global Deals, Headlines

    Shell has entered into agreements for some of its Nigerian oilfields which the company offered for sale in 2013. A Shell spokesman said, “We have signed sales and purchase agreements for some of the oil mining leases, but not all that we are seeking to divest.”

    In several rounds of divestments, Shell has been moving away from Nigerian onshore oil, which is plagued by industrial scale oil theft, security problems and oil spills, the latter having become a growing legal liability for major oil companies. Firms have also been hampered by uncertainty over the particulars of an oil bill designed to overhaul the industry, which has been stuck in parliament for two years and looks unlikely to be passed before Feb-2015 elections.

    Other companies including Total, Eni, and Chevron have also looked to dispose of assets.

    Source: Reuters

  • KOGAS Looks to Defer Up to 10 Autumn LNG Cargoes

    Reuters reports, quoting industry sources, that Korea Gas Corp (KOGAS) has approached long-term suppliers of LNG to defer up to 10 autumn cargoes to winter. The deferrals were first meant to include only summer cargoes, but the program has been extended to include an additional five to 10 cargoes in later...

    KOGAS Looks to Defer Up to 10 Autumn LNG Cargoes
    Others

    Reuters reports, quoting industry sources, that Korea Gas Corp (KOGAS) has approached long-term suppliers of LNG to defer up to 10 autumn cargoes to winter. The deferrals were first meant to include only summer cargoes, but the program has been extended to include an additional five to 10 cargoes in later delivery periods.

    In total, KOGAS is due to defer or swap out a total of 40 LNG cargoes between May-2014 and Nov-2014, a source with direct knowledge of the matter told Reuters. The company has asked to defer cargoes due to be delivered in early Nov-2014 as well as other periods, the source said.

    As a result of the deferment, suppliers such as Malaysia's Bintulu export plant, Indonesia's Bontang, Russia's Sakhalin and Qatar's Rasgas have pumped more supply into the open market, the source said.

    Source: Reuters

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

  • Shell Consortium Close to $5 Billion Nigeria Oilfields Sale

    The Financial Times reports that the Shell-led consortium is close to selling its Nigeria oilfields for $5 billion to domestic buyers. The consortium has selected buyers for the four blocks and an important pipeline but two bidders are still negotiating contracts. A deal is expected in the next few weeks and...

    Shell Consortium Close to $5 Billion Nigeria Oilfields Sale
    Global Deals

    The Financial Times reports that the Shell-led consortium is close to selling its Nigeria oilfields for $5 billion to domestic buyers. The consortium has selected buyers for the four blocks and an important pipeline but two bidders are still negotiating contracts. A deal is expected in the next few weeks and will be submitted to the government for approval.

    Two people familiar with the discussions stated that the sale could amount to $5.2 billion, although the figure is not final.

    Nigerian oil traders-cum-producers Taleveras and Aiteo have offered $2.6 billion for the largest field – Oil Mining License 29. Pan Ocean Oil Corporation will pay $900 million for OML 24. Eroton, a consortium of Midwest Oil and Gas and Mart Resources, will pay $1.2 billion for OML 18. Crestar will pay $500 million for OML 25.

    View original article

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

  • Data analysis Canacol Cheers Gas Flows from Colombia's Palmer Discovery

    Canacol Energy has flowed gas from the Palmer 1 exploration well located in the Esperanza E&P Contract, Lower Magdalena Basin, Colombia. The well has tested 15.5 MMcf/d of dry gas.As announced on 22-Aug-2014, Palmer 1 was drilled to a total depth of 9,317 ft and encountered 87 ft of potential gas pay...

    Canacol Cheers Gas Flows from Colombia's Palmer DiscoveryData analysis
    Exploration

    Canacol Energy has flowed gas from the Palmer 1 exploration well located in the Esperanza E&P Contract, Lower Magdalena Basin, Colombia. The well has tested 15.5 MMcf/d of dry gas.

    As announced on 22-Aug-2014, Palmer 1 was drilled to a total depth of 9,317 ft and encountered 87 ft of potential gas pay within the primary target. The company has identified up to two follow-up locations to appraise and develop the Palmer discovery in early 2015.

    Canacol holds a 100% operated interest in the contract.

    View Canacol press release

  • Energean to Invest $225 Million in Kavala, Greece
    Projects & Capex

    Energean Oil & Gas has launched a $225 million investment program to develop 30 MMbbl of reserves in North West Greece. The company also plans to increase production from the Prinos, Prinos North and Epsilon fields to 10 Mbbl/d by 2016.

    The new investment program involves the drilling of 15 wells and the installation of two new unmanned platforms for the Prinos North and Epsilon fields which will be tied back to the existing infrastructure Energean already operates.

    View Energean press release

    View Energean operations webpage

  • Antero Pushes 2014 Capex by 30%

    Antero Resources raised its 2014 capex to $3.7 billion, up 30% when compared to its previous guidance of $2.85 billion. The capex comprises $2.4 billion for drilling and completion, $850 million for the expansion of midstream facilities and $450 million for core leasehold acreage acquisitions. The company is...

    Antero Pushes 2014 Capex by 30%
    Projects & Capex

    Antero Resources raised its 2014 capex to $3.7 billion, up 30% when compared to its previous guidance of $2.85 billion. The capex comprises $2.4 billion for drilling and completion, $850 million for the expansion of midstream facilities and $450 million for core leasehold acreage acquisitions. The company is accelerating its drilling program in H2-2014 due to timely execution on the company's Appalachian infrastructure build-out and the targeted addition of approximately 70,000 net acres during the year.

    Antero has also raised its 2014 net production guidance to 990-1,010 MMcfe/d, up 5% from the midpoint of previously announced guidance. The company has accelerated its initiatives to develop the gas-rich areas of its Marcellus and Utica assets.

    View Antero press release  

  • Turkey, Japan Ink $1.7 Billion Deal with Turkmenistan

    Turkmenistan signed a $1.7 billion deal with a Turkish-Japanese consortium to build a gas-to-liquids plant as part of its strategy to maximize revenues from its gas riches. The project will be implemented by Japan's Kawasaki Heavy Industries and Turkey's Ronesans Endustri Tesisleri. The plant will be...

    Turkey, Japan Ink $1.7 Billion Deal with Turkmenistan
    Headlines

    Turkmenistan signed a $1.7 billion deal with a Turkish-Japanese consortium to build a gas-to-liquids plant as part of its strategy to maximize revenues from its gas riches. The project will be implemented by Japan's Kawasaki Heavy Industries and Turkey's Ronesans Endustri Tesisleri. The plant will be launched in Apr-2018.

    Turkey President Kurbanguly Berdymukhamedov commented: “It will produce here annually 600,000 tonnes of gasoline with octane rating of 92. The plant will process annually 1.785 Bcm of natural gas.”

    Source: Reuters

  • Santos to Re-Enter Amadeus Basin Exploration WellData analysis
    Exploration

    Central Petroleum reported that Santos is planning to re-enter the Mt Kitty-1 exploration well located in EP 125, Amadeus Basin, Australia. 

    Following completion of the re-entry operations, Santos will undertake a resource estimation and economics study and plan any future work program for the permit.

    Ownership of EP 125: Santos (70%, operator) and Central (30%).

    View Central Petroleum press release

    View Santos Amadeus operations webpage

  • Cairn Hits Pay at FAN-1 Exploration Well Off SenegalData analysis
    Exploration

    FAR Ltd announced that Cairn Energy has hit oil at the FAN-1 exploration well located in the Sangomar Offshore Block off Senegal. FAN-1 was drilled to a total depth of 4,402m where intermediate casing has now been set. The well will be further deepened to a depth of 5,000m. 

    Cairn expects to complete the drilling of the well by Sep-2014, after which the rig will be moved to the SNE-1 well site.

    According to the pre-drill estimates, the FAN-1 well has a potential to contain unrisked prospective resources of 900 MMbbl.

    FAN-1 ownership: Cairn (40%, operator), ConocoPhillips (35%), FAR (15%) and Petrosen (10%).

    View FAR press release

  • Circle Oil Spuds Second Well in Sebou Permit, MoroccoData analysis
    Exploration

    Circle Oil has spudded the second well (CGD-12) in the Sebou Permit, Morocco. 

    The 12 locations initially chosen for the campaign are targeting accumulations similar to the existing producing geological intervals in the permit. This second well will test a dipping fault bounded sand lens at 1,021m in the Guebbas Formation within which many of the previous discoveries have been successfully drilled.

    Depending on progress rates the well is expected to take approximately 30-35 days to drill.

    Ownership of Sebou Permit: Circle Oil (75%) and ONHYM (25%).

    View Circle Oil press release

    View Circle Oil operations webpage

  • BG Completes Mzia-3 Well Test Offshore Tanzania
    Exploration

    BG has completed a successful drill stem test on the Mzia-3 well in Block 1, offshore Tanzania. The test flowed at a maximum rate of 101 MMcf/d, constrained by testing equipment.

    Mzia, discovered in 2012, is a multi-layered field of Upper Cretaceous age with a gross gas column in excess of 300m. The Mzia and Jodari discoveries in Block 1 are estimated to hold around 9 Tcf of total gross recoverable resources, with around 15 Tcf of total gross recoverable resources, around 2.5 BBOE, across Blocks 1, 3 and 4.

    The rig will now move north to complete the exploration and appraisal program on the Block 4 discoveries by drilling the Kamba-1 well.

    Ownership of Block 1: BG (60%, operator) and Ophir Energy (40%)

    View BG press release

    View BG 2012 Data Book

  • Data analysis WPX Adds Partner to Develop Trail Ridge Assets

    WPX Energy has entered into an agreement to jointly develop its Trail Ridge properties with TRDC LLC, a subsidiary of Houston-based G2X Energy. The Trail Ridge development is part of WPX’s position in western Colorado’s Piceance Basin Highlands.Under the agreement, WPX received approximately $40...

    WPX Adds Partner to Develop Trail Ridge AssetsData analysis
    Global Deals

    WPX Energy has entered into an agreement to jointly develop its Trail Ridge properties with TRDC LLC, a subsidiary of Houston-based G2X Energy. The Trail Ridge development is part of WPX’s position in western Colorado’s Piceance Basin Highlands.

    Under the agreement, WPX received approximately $40 million cash for 49% of its working interest in approximately 100 proved developed producing Trail Ridge wells. The working interest sold represents 27 Bcf of proved developed reserves and 46 Bcf of proved undeveloped reserves. TRDC also has committed to a $170 million drilling carry on nearly 400 future wells and will make additional investments for its 49% working interest. WPX will pay 28% of the Trail Ridge development and receive 51% of the production and reserves until TRDC has completed its $170 million funding commitment. 

    WPX has approximately 1,300 remaining Trail Ridge drilling locations. The joint development agreement is for the Williams Fork and Iles formations and does not include deeper opportunities in the Mancos and Niobrara shales.

    View WPX press release

  • Horizon Flows Gas from Stanley-5 Development Well in PNG
    Projects & Capex

    Horizon Oil has encountered net pay of about 96m at the Stanley-5 production well in PRL4, Papua New Guinea. After a clean-up period of 24 hours, the well flowed at approximately 68 MMcf/d on a 122/64" choke. Log and test data from the well, together with wellhead condensate samples obtained, are consistent with pre-drill estimates and the Stanley-2 results.

    With a condensate gas ratio 30 bbl/MMcf, the Stanley gas-condensate project is forecast to achieve initial production of approximately 4 Mbbl/d of condensate when the field commences production, scheduled in H2-2016.

    The Parker Rig 226 will now be skidded to commence drilling the final Stanley development well, the Stanley-3 injection well, from the current surface location. The Stanley -3 well has an anticipated spud date of 31-Aug-2014.

    PRL4 ownership: Horizon (30%, operator), Talisman (40%), Osaka Gas (20%) and Mitsubishi (10%).

    View Horizon press release

  • BG Seeks $4 Billion for Queensland Assets

    The Australian newspaper Business Spectator reports that BG Group is hoping for bids of around $4 billion for its Queensland gas pipeline assets with bids expected on 28-Aug-2014.Reportedly, Cheung Kong Group, fund manager AMP, Industry Funds Management, Hastings Funds Management and APA Group are likely...

    BG Seeks $4 Billion for Queensland Assets
    Global Deals

    The Australian newspaper Business Spectator reports that BG Group is hoping for bids of around $4 billion for its Queensland gas pipeline assets with bids expected on 28-Aug-2014.

    Reportedly, Cheung Kong Group, fund manager AMP, Industry Funds Management, Hastings Funds Management and APA Group are likely bidders. Cheung Kong is believed to be bidding solo, while the other three will bid with partners.

    It is also rumored that Chinese power giant State Grid and Singapore Power might have looked through their advisors.

    View original article

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

  • BG Looking to Sell Stake in Tanzania Assets

    The Sunday Times reported that the BG Group is looking for a buyer for part of its Tanzania operations, as it pushes to cut costs. The company is looking to sell its entire 60% stake Block 3, while holding on to Blocks 1 and 4.View original articleDisclaimer: 1Derrick has not verified this story and does not...

    BG Looking to Sell Stake in Tanzania Assets
    Global Deals

    The Sunday Times reported that the BG Group is looking for a buyer for part of its Tanzania operations, as it pushes to cut costs. The company is looking to sell its entire 60% stake Block 3, while holding on to Blocks 1 and 4.

    View original article

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

  • Lundin Gets Nod for Lindarormen Wildcat Data analysis
    Exploration

    The Norwegian Petroleum Directorate (NPD) has granted a drilling permit to Lundin Petroleum for the Lindarormen well (6405/12-1) in PL584 off Norway. The production license consists of the block 6405/12 and parts of blocks 6405/9, 6406/7, 6406/10, 6305/3 and 6306/1.

    The well will be drilled about 80 km north-east of the Ormen Lange Field.

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

    View NPD press release

  • NPD Green Lights Statoil's PL713 WildcatData analysis
    Exploration

    The Norwegian Petroleum Directorate (NPD) has granted a drilling permit to Statoil for the wellbore 7319/12-1 in Barents Sea’s PL713. The area in this license consists of blocks 7219/ 2, 3 and 7319/11, 12.

    PL713 was awarded on 21-Jun-2013 in the 22nd licensing round on the Norwegian shelf. This is the first well to be drilled in the license.

    Ownership of PL713: Statoil (40%, operator), Rosneft (20%), Edison (20%) and North Energy (20%).

    View NPD press release

  • Origo Exploration Gets $525 Million in Funding

    Three energy investment funds have promised a combined $525 million in financing for a new oil exploration and production company focused on Norway and Britain, operating under the name Origo Exploration. Energy investor Riverstone Holdings and Barclays bank's energy fund BNRI are each contributing $200...

    Origo Exploration Gets $525 Million in Funding
    Headlines

    Three energy investment funds have promised a combined $525 million in financing for a new oil exploration and production company focused on Norway and Britain, operating under the name Origo Exploration. Energy investor Riverstone Holdings and Barclays bank's energy fund BNRI are each contributing $200 million, and Singapore's sovereign investment fund Temasek $125 million.

    Origo, headquartered in Norway's oil capital Stavanger, plans to take part in drilling around 25 exploration wells over the coming five years, focusing on Norwegian and British waters.

    The company aims to purchase exploration licenses through farm-in deals, by participating in licensing rounds and acquisitions.

    Source: Reuters

  • Saudi Aramco to Invest $40 Billion Yearly For Next Decade

    Saudi Aramco is planning to invest $40 billion a year over the next decade to keep oil production capacity steady and double gas production. Saudi Aramco CEO Khalid Al-Falih told in a conference that the company sees more capital going into offshore projects and expects rising costs across the oil sector to...

    Saudi Aramco to Invest $40 Billion Yearly For Next Decade
    Projects & Capex, Headlines

    Saudi Aramco is planning to invest $40 billion a year over the next decade to keep oil production capacity steady and double gas production. Saudi Aramco CEO Khalid Al-Falih told in a conference that the company sees more capital going into offshore projects and expects rising costs across the oil sector to underpin oil price.

    Mr. Al-Falih added, “To meet forecast demand growth and offset (global output) decline, our industry will need to add close to 40 MMbbl/d of new capacity in the next two decades. Although our investments will span the value chain, the bulk will be in upstream, and increasingly from offshore, with the aim of maintaining our maximum sustained oil production capacity at twelve million barrels per day, while also doubling our gas production.”

    Source: Reuters

  • Circle Oil Cheers Oil Find at EMD-1 Well Off Tunisia
    Exploration

    Circle Oil has hit oil at its El Mediouni-1 (EMD-1) exploration well in the Mahdia Permit off Tunisia. The well is located within the north central area of the permit in a water depth of 240m, 120 km east of the port of Sousse. 

    The stratigraphy encountered in the well was exactly as prognosed and ‘very good light oil shows’ were encountered both in the Lower Birsa carbonate primary target and the Upper Ketatna carbonates secondary target.

    The gross oil zone interval in the Lower Birsa is 77m and the Upper Ketatna has a minimum interval of 48m, subject to confirmation by logs. Internally estimated most likely recoverable prospective resources discovered by the EMD-1 well are approximately 100 MMbbl.

    View Circle Oil press release

    View Circle Oil operations webpage

  • Data analysis Shell Hits Gas at Marjoram-1 Well Off Malaysia

    Shell has encountered gas shows at the Marjoram-1 well located in Block SK318 off Malaysia. The well is located 180 km off the Malaysia coast in a water depth of 800m.Shell Upstream International Director Andrew Brown commented: “Our strategy to expand our heartland areas through technologically...

    Shell Hits Gas at Marjoram-1 Well Off MalaysiaData analysis
    Exploration, Headlines

    Shell has encountered gas shows at the Marjoram-1 well located in Block SK318 off Malaysia. The well is located 180 km off the Malaysia coast in a water depth of 800m.

    Shell Upstream International Director Andrew Brown commented: “Our strategy to expand our heartland areas through technologically advanced exploration is delivering tangible success in deep-water in Malaysia. We have a long history in the region, and the addition of new natural gas resources this year ensures we are able to continue to provide cost-effective, reliable, cleaner energy options for the future.”

    Ownership of Block SK318: Shell (85%, operator) and Petronas (15%).

    View Shell press release

  • Statoil to Hold Back US Shale Ramp-Up

    Statoil will only slightly raise its US shale oil and gas output in the near term due to spending curbs, well below a potential for a 50% surge. The company has abandoned its 2020 production target earlier this year and cut its capital spending budget, arguing that it needs to save cash and return more to...

    Statoil to Hold Back US Shale Ramp-Up
    Headlines

    Statoil will only slightly raise its US shale oil and gas output in the near term due to spending curbs, well below a potential for a 50% surge. The company has abandoned its 2020 production target earlier this year and cut its capital spending budget, arguing that it needs to save cash and return more to shareholders after a decade of ramping up spending.

    When asked if output would stay broadly unchanged for the rest of the year, Torstein Hole, Statoil's chief for US onshore activities, said: "I expect it (US shale production) to be approximately the same.” He added, “We could easily, with the portfolio we have now, increase it to 300 MBOE/d. But we have the priority toward profitability. We have to compete for capital within the company and the pace of development will depend on how successful we are in delivering high profitability.”

    Source: Reuters

  • AWE Deepens Drilling at Senecio-3 in Perth Basin
    Exploration

    AWE has decided to deepen the Senecio-3 appraisal well, located in the Permits L1/L2 in Perth Basin, after elevated gas shows were observed in the Dongara/Wagina Formation. The company will drill the well beyond the original planned depth of 2,783m to a revised depth of 3,370m. Currenlty wireline logging is in progress.

    The Senecio-3 appraisal well is designed to test the unconventional gas potential in the western side of the Senecio reservoir. Core samples and log data will be collected and sent for analysis and AWE will not conduct hydraulic fracture stimulation on Senecio-3 at this stage. 

    If the results are positive, AWE anticipates commencing the approvals process for the first phase of the Senecio unconventional gas field development. The company added that the Senecio-3 well could potentially be re-completed as a production well in a future field development.

    Ownership of L1/L2: AWE (50%, operator) and Origin Energy (50%).

    View AWE press release  

  • Statoil Inks Gas Supply Agreement with Koch

    Statoil has entered into a two-year agreement with Koch Supply & Trading Sàrl (KS&T) to supply 2 Bcm of natural gas per year. The gas will be delivered to various gas hubs in Europe.William Brendeford, Head of Gas Sales to Germany in Statoil, said: “In a changing European gas market,...

    Statoil Inks Gas Supply Agreement with Koch
    Others

    Statoil has entered into a two-year agreement with Koch Supply & Trading Sàrl (KS&T) to supply 2 Bcm of natural gas per year. The gas will be delivered to various gas hubs in Europe.

    William Brendeford, Head of Gas Sales to Germany in Statoil, said: “In a changing European gas market, Statoil ASA is continuously seeking new partners. We are excited to partner with Koch Supply & Trading, a strong midstream player in the European natural gas market with a diverse industrial portfolio and extensive physical trading experience.”

    View KS&T press release

  • OMV Drills Duster at Whio Prospect in Taranaki BasinData analysis
    Exploration

    Horizon Oil reported that OMV did not hit commercial hydrocarbons at its Whio prospect located in PEP 51313 in Taranaki Basin. The well was drilled to a total depth of 2,824m in the Paleocene Farewell Formation and is currently being plugged and abandoned.

    The well encountered sandstones in all objectives (Whio A Sandstone, M2A Sandstone, Moki Formation, Mangahewa Formation, Kaimiro Formation and Farewell Formation) as expected, but could not confirm the presence of commercial hydrocarbons.

    Ownership of PEP 51313: OMV (30%, operator), Todd Exploration (35%), Horizon Oil (21%) and Cue Energy (14%).

    View Horizon press release

    View Cue press release

  • Data analysis Parsley Acquires Permian Assets for $252 Million

    Parsley Energy has entered into separate agreements with Cimarex Energy and other undisclosed sellers to acquire certain undeveloped acreage and producing oil and gas properties located in Reagan County, Texas, for $252 million.The acquired assets comprise 157 net horizontal drilling locations across 5,472...

    Parsley Acquires Permian Assets for $252 MillionData analysis
    Global Deals

    Parsley Energy has entered into separate agreements with Cimarex Energy and other undisclosed sellers to acquire certain undeveloped acreage and producing oil and gas properties located in Reagan County, Texas, for $252 million.

    The acquired assets comprise 157 net horizontal drilling locations across 5,472 net acres in the county, and 140 net vertical 80 and 40-acre drilling locations and 140 net vertical 20-acre drilling locations. The assets also include 98% average working interest and 23% average royalty, and estimated net production of approximately 1.8 MBOE/d.

    Parsley believes the acquired properties are prospective for horizontal drilling in the company’s target horizons, including the Wolfcamp A, Wolfcamp B, Wolfcamp C, Cline, and Atoka formations. The acquisitions are scheduled to close on or before 30-Sep-2014.

    View Parsley press release

    View Cimarex press release

  • Data analysis Chevron Seeks Up to $1.5 Billion to Develop Duvernay Assets

    Reuters reports that Chevron is seeking up to $1.5 billion of equity investment to help develop its Duvernay shale formation assets in Canada, quoting unnamed sources. Chevron has exploration leases for approximately 330,000 net acres in an area located about 200 km north-west of Edmonton, Alberta.Chevron has...

    Chevron Seeks Up to $1.5 Billion to Develop Duvernay AssetsData analysis
    Headlines

    Reuters reports that Chevron is seeking up to $1.5 billion of equity investment to help develop its Duvernay shale formation assets in Canada, quoting unnamed sources. Chevron has exploration leases for approximately 330,000 net acres in an area located about 200 km north-west of Edmonton, Alberta.

    Chevron has sent an offering memorandum to potential investors over the summer, said the sources, who asked not to be named because the discussions were private.

    Source: Reuters

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

  • Data analysis Sinopec Shortlists Bidders for $20 Billion Retail Stake

    Sinopec has shortlisted 37 bidding consortia for up to 30% stake in its fuel retail unit and plans to choose a winning bidder by end-Sep-2014. Analysts have said the sale could raise around $20 billion and boost the value of the low-margin marketing business, bolster the group's finances and reinforce...

    Sinopec Shortlists Bidders for $20 Billion Retail StakeData analysis
    Global Deals, Headlines

    Sinopec has shortlisted 37 bidding consortia for up to 30% stake in its fuel retail unit and plans to choose a winning bidder by end-Sep-2014. Analysts have said the sale could raise around $20 billion and boost the value of the low-margin marketing business, bolster the group's finances and reinforce investment in exploration and production.

    Sinopec’s retails business comprises its wholesale business, more than 30,000 petrol stations, over 23,000 convenience stores, as well as oil-product pipelines and storage facilities.

    Source: Reuters

  • CNOOC Starts Production from Wenchang 13-6 Oilfield

    CNOOC announced that the Wenchang 13-6 oilfield has commenced production. The oilfield is located at an average water depth of 120m in the west of Pearl River Mouth Basin. The main production facilities include one wellhead platform and five wells producing approximately 1.3 Mbbl/d.Wenchang 13-6 is an...

    CNOOC Starts Production from Wenchang 13-6 Oilfield
    Projects & Capex, Headlines

    CNOOC announced that the Wenchang 13-6 oilfield has commenced production. The oilfield is located at an average water depth of 120m in the west of Pearl River Mouth Basin. The main production facilities include one wellhead platform and five wells producing approximately 1.3 Mbbl/d.

    Wenchang 13-6 is an independent oilfield in which the CNOOC holds 100% operated interest.

    View CNOOC press release

  • Data analysis YPF Makes Oil, Gas Discovery in Patagonia

    YPF has struck oil and gas at a drill located in the province of Santa Cruz, Patagonia. The find has potential production of 7.1 MMcf/d of gas and 370 bbl/d of oil. The well was drilled to a depth of 2,770m.Argentina needs more oil and gas production to halt a drain on central bank dollar reserves caused by...

    YPF Makes Oil, Gas Discovery in PatagoniaData analysis
    Exploration

    YPF has struck oil and gas at a drill located in the province of Santa Cruz, Patagonia. The find has potential production of 7.1 MMcf/d of gas and 370 bbl/d of oil. The well was drilled to a depth of 2,770m.

    Argentina needs more oil and gas production to halt a drain on central bank dollar reserves caused by expensive energy imports.

    Source: Reuters

  • GDF Starts Construction of Ramones II South Pipeline

    GDF Suez has started the construction of the Ramones Phase II South pipeline (Ramones II South) extending from the Texas border to central Mexico. The pipeline will span 291 km from San Luis Potosi to Apaseo El Alto, Guanajuato, and represents a total estimated investment cost of $1 billion. It will have the...

    GDF Starts Construction of Ramones II South Pipeline
    Headlines

    GDF Suez has started the construction of the Ramones Phase II South pipeline (Ramones II South) extending from the Texas border to central Mexico. The pipeline will span 291 km from San Luis Potosi to Apaseo El Alto, Guanajuato, and represents a total estimated investment cost of $1 billion. It will have the capacity to deliver 1.4 Bcf/d of natural gas.

    GDF Suez will operate and maintain the project from its completion, which is anticipated to be completed by end-2015.

    The Ramones natural gas pipeline, of a total length exceeding 1,000 km, will be an important project for the development and energy security of Mexico, allowing for the importation from the US of up to 2.1 Bcf/d of natural gas.

    View GDF Suez press release  

  • Seabird Wins Gulf of Guinea 3D Contract

    SeaBird Exploration has been awarded a contract for a 3D seismic survey in Gulf of Guinea, West Africa. The survey will cover a minimum of 1,450 sq km and will have an estimated value of approximately $11 million.The survey is expected to start during mid-Q3-2014 and will have an estimated duration of 78...

    Seabird Wins Gulf of Guinea 3D Contract
    Others

    SeaBird Exploration has been awarded a contract for a 3D seismic survey in Gulf of Guinea, West Africa. The survey will cover a minimum of 1,450 sq km and will have an estimated value of approximately $11 million.

    The survey is expected to start during mid-Q3-2014 and will have an estimated duration of 78 days.

    View Seabird press release

  • Swala Begins 2D Over Moshi Basin in Tanzania
    Others

    Swala Energy has commenced its 2014 2D seismic data acquisition program over the Moshi Basin located within the Pangani exploration license in northern Tanzania. Swala will acquire approximately 200 km of 2D seismic data over the basin in the next four weeks.

    This seismic survey is a follow-up to the program carried out in the basin in 2013 where results indicated a sedimentary basin of about 3,000m in thickness. Once the survey in the Moshi Basin is complete seismic operations will move to the Kilombero Basin where a further 430 km of 2D data will be acquired.

    Ownership of Pangani license: Swala (50%, operator) and Otto Energy (50%).

    View Swala press release

  • Key Hits Problems at Dunnart-2 Well in Perth BasinData analysis
    Exploration

    Key Petroleum has encountered some mechanical problems at the Dunnart-2 well located in EP 437, Perth Basin, Western Australia. One of the drill stem test tool had a mechanical failure during testing so the decision was made to drill the well to its planned depth and then to log the same. Once the tool was encountered, it was found to hold some good quality Bookara Sandstone indicative of light oil.

    The current plan is to log the well with wireline logs from Crocker group with the inclusion of the formation evaluation tool depending on the initial results. These logs will determine the reservoir quality and the net pay from the well. The logs will also reveal which intervals should be production tested later on.

    The estimated potential resource is 2-5 MMbbl in the Early Triassic Bookara Sandstone.

    Ownership of EP 437: Key Petroleum (43.47%, operator), Rey Resources (43.47%) and Caracal Exploration (13.06%).

    View Key press release

    View Key's Perth Basin operations webpage

     

  • Oxy May Sell $3 Billion Shah Gas Project Stake to Mubadala

    Bloomberg reports, quoting Petroleum Intelligence Weekly, that Occidental is in talks to sell a $3 billion stake in the Shah natural gas project in the UAE to Mubadala Development Co. A transaction could be completed by end-2014, with Oxy retaining part of its 40% stake and continuing to operate the field,...

    Oxy May Sell $3 Billion Shah Gas Project Stake to Mubadala
    Global Deals

    Bloomberg reports, quoting Petroleum Intelligence Weekly, that Occidental is in talks to sell a $3 billion stake in the Shah natural gas project in the UAE to Mubadala Development Co. A transaction could be completed by end-2014, with Oxy retaining part of its 40% stake and continuing to operate the field, PIW reported.

    Adnoc would retain its 60% holding in the project in a deal that would mark Mubadala’s first domestic investment in oil or gas production, PIW said.

    View original article

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

  • Highlights of the Week Ending 23-Aug-2014

    Global DealsThis week witnessed an interesting set of deals. Chinese shipbuilder China Rongshen Heavy Industries announced its forayinto the oil and gas sector with the acquisition of a $282 million stake in New Continental Oil & Gas which operates four oilfields in Kyrgyzstan. Meanwhile, Russian oil...

    Highlights of the Week Ending 23-Aug-2014
    Exploration, Projects & Capex, Global Deals, Headlines

    Global Deals

    This week witnessed an interesting set of deals. Chinese shipbuilder China Rongshen Heavy Industries announced its foray into the oil and gas sector with the acquisition of a $282 million stake in New Continental Oil & Gas which operates four oilfields in Kyrgyzstan. Meanwhile, Russian oil giant Rosneft, which has been under pressure because of western sanctions, acquired a 30% stake in North Atlantic Drilling in exchange for approximately 150 rigs, cash and rig contracts.

    WPX divested Powder River Basin CBM assets for $155 million while Veneco sold its stake in the West Montalvo field in California for $200 million.

    US shale space continues to attract interest from across the globe with India’s Reliance Industries rumored to be planning a $2 billion investment to beef up its existing operations in Marcellus play.

    Australian LNG space saw another deal with Inpex selling a 1.2% stake in the Ichthys LNG project to Japanese utility Kansai Electric.

    Reuters reports that Sinopec has short-listed suitors for the $16 billion minority stake sale in its retail unit. The list of potential buyers is thought to include Tencent Holdings, China Life Insurance, Hong Kong-listed ENN Energy Holdings, privately-owned Fosun Group, Hopu Investment Management and Affinity Equity Partners.

    Exploration

    The biggest exploration story of the week was Apache’s first oil discovery in the Canning Basin, offshore Western Australia. Preliminary estimates indicate the discovery to contain 300 MMbbl of oil, which would make it one of Australia’s largest discoveries in the last 30 years.

    Idemitsu hit pay off southern Vietnam with a gas-condensate discovery in the fourth well of Blocks 05-1b and 05-1c.

    Meanwhile, Canacol Energy revealed three discoveries in the Llanos Basin, Middle Magdalena Basin and Lower Magdalena Basin in Colombia.

    Projects & Capex

    South Korean giant Kogas announced plans to invest $4.9 billion in Iraq’s Zubair oil project. The investment is for the facilities of the project, the company added. Zubair, one of Iraq's key oil fields, is located in southern Iraq.

    Talisman declared commerciality of the Kurdamir oil and gas discovery. It also promised to move ahead with its planned divestment of Iraqi assets despite the discovery of an estimated 1 BBOE of contingent resources in Kurdamir.

    Eni commenced production at the DEKA project in Egypt while Statoil announced the official opening of the Gudrun platform in the North Sea. Gudrun is the first platform in the North Sea since 2005.

  • Talisman to Divest Kurdistan Assets Despite Discovery

    Talisman Energy has revealed that it will push ahead with its planto sell oil properties in Iraq’s Kurdistan region despite its partner WesternZagros announcing a massive oil discoveryon one of its propertiesSource: ReutersThe Kurdamir block, which was declared a commercial discovery, is estimated by...

    Talisman to Divest Kurdistan Assets Despite Discovery
    Global Deals

    Talisman Energy has revealed that it will push ahead with its plan to sell oil properties in Iraq’s Kurdistan region despite its partner WesternZagros announcing a massive oil discovery on one of its properties

    Source: Reuters

    The Kurdamir block, which was declared a commercial discovery, is estimated by WesternZagros to contain 1BBOE of contingent resources.