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NEWS

  • Highlights of the Week Ended 28-Feb-2015

    Global DealsThe week witnessed few notable North American and Norwegian deals. The biggest deal of the week was TransCanada’ssale of its 30% stake in Gas Transmission Northwest LLC for $446 million. In another deal, Memorial Resource Development (MRD) agreed to an asset swapdeal with Memorial Production...

    Highlights of the Week Ended 28-Feb-2015
    Global Deals, Results & Reports, Projects & Capex, Exploration

    Global Deals

    The week witnessed few notable North American and Norwegian deals. The biggest deal of the week was TransCanada’s sale of its 30% stake in Gas Transmission Northwest LLC for $446 million. In another deal, Memorial Resource Development (MRD) agreed to an asset swap deal with Memorial Production Partners (MEMP) in which MRD will exchange its east Texas and non-core Louisiana properties for all of MEMP's interests in the Terryville field in Louisiana, plus $78 million in cash.

    In Norway, Statoil signed a farm-in agreement with Atlantic Petroleum for four exploration licenses in the Vøring Basin. Lime has also signed an agreement with Tullow Oil to acquire an additional 20% stake in three licenses located in the Norwegian Sea.

    In a separate transaction, Lime has acquired 30% stake in PL338C from Lundin.

    Exploration

    Exploration activity was very low this week with only Statoil making into headlines. Atlantic Petroleum has announced that Statoil will drill a well in 2015 to test the Roald Rygg Prospect in PL602, located in the Vøring Basin.

    Meanwhile, Senex discovered oil at Martlet North-1 well located on the western flank of the Cooper Basin.

    Project and Capex

    Shell has withdrawn its regulatory application for the proposed Pierre River oil sands project to the north of Fort McMurray, Alberta. The company’s current focus is on making its heavy oil business economically and environmentally competitive.

    Statoil has commenced production from the Oseberg Delta 2 field located in the North Sea. It has also submitted the development plan for the second phase of its Peregrino oilfield in Brazil, entailing an investment of around $3.5 billion. Statoil also awarded service contracts to Aibel and Asco for its Johan Sverdrup and Mariner oilfield respectively.

    Chevron also came into limelight after announcing that it will abandon its shale gas exploration plans in Romania, due to the unfavorable investment opportunities.

  • Statoil Submits Peregrino Oilfield Development Plan
    Projects & Capex

    Statoil has submitted the development plan for the second phase of its Peregrino oilfield in Brazil, entailing an investment of around $3.5 billion.

    The plan includes a new well head platform and drilling rig, and adds around 250 MMbbl recoverable resources to the field. The second phase will start production towards the end of 2020.

    Ownership of Peregrino field: Statoil (60%, operator) and Sinochem (40%).

    Source: Reuters

    View Statoil Brazil operations webpage

  • Williams Partners Prices $3 Billion Senior Notes

    Williams Partners announced the pricing of its senior notes worth $3 billion. The company has priced a public offering of $1.25 billion of its 3.6% senior notes due Mar-2022 at a price of 99.968% of par, $750 million of its 4% senior notes due Sep-2025 at a price of 99.675% of par, and $1 billion of its 5.1%...

    Williams Partners Prices $3 Billion Senior Notes
    Others

    Williams Partners announced the pricing of its senior notes worth $3 billion. The company has priced a public offering of $1.25 billion of its 3.6% senior notes due Mar-2022 at a price of 99.968% of par, $750 million of its 4% senior notes due Sep-2025 at a price of 99.675% of par, and $1 billion of its 5.1% senior notes due Sep-2045 at a price of 99.522% of par. The offering will be settled on 3-Mar-2015.

    The net proceeds from the offering will be utilized to repay indebtedness.

    View Southwestern Energy press release

  • Asco Lands Mariner Service Contract from Statoil

    Statoil has awarded a supply base and warehousing service contract to Asco for its $7-billion Mariner heavy oilfield located in Block 9/11a, UK Continental Shelf.The scope of the contract comprise the provision of supply base services, which included personnel, local transportation, marine gas oil, quayside...

    Asco Lands Mariner Service Contract from Statoil
    Others

    Statoil has awarded a supply base and warehousing service contract to Asco for its $7-billion Mariner heavy oilfield located in Block 9/11a, UK Continental Shelf.

    The scope of the contract comprise the provision of supply base services, which included personnel, local transportation, marine gas oil, quayside services and a warehousing facility.

    Asco will perform the services for the field under two five-year contracts, anticipated to start during Q1-2016. The contracts also include 2x2 year extension options.

    Ownership of Mariner field: Statoil (65.11%, operator), JX Nippon (28.89%) and Dyas Mariner (6%).

    View Statoil press release

  • Chevron Awards Buckskin-Moccasin FEED Contract
    Others

    Chevron has awarded a FEED contract to INTECSEA for the Buckskin-Moccasin development in the Gulf of Mexico.

    Under the contract, INTECSEA will execute the FEED and procurement services for a subsea tieback from the Buckskin and Moccasin fields to a nearby production facility located in the outer continental shelf of the Gulf of Mexico.

    View INTECSEA press release

    View Chevron press release

  • Statoil Shuts Statfjord C Platform Production
    Headlines

    Statoil has shut down the production from the Statfjord C platform in the North Sea, after the discovery of cracks in the platform's flare tower.

    The platform will be closed for 12 days.

    Source: Reuters

    PL037 ownership: Statoil (21.9%, operator), Petoro (30%), ExxonMobil (25%) and Centrica (23.1%).

    View Norwegian Petroleum Directorate License page

    View Norwegian Petroleum Directorate FactMaps webpage

  • Comstock to Raise $700 Million in Senior Secured Notes

    Comstock Resources has announced the pricing of its senior secured notes due 2020 in a private offering worth $700 million.The net proceeds of the proposed offering will be utilized to retire the company?? bank credit facility, with remaining proceeds for general corporate purposes.View Comstock Resources...

    Comstock to Raise $700 Million in Senior Secured Notes
    Others

    Comstock Resources has announced the pricing of its senior secured notes due 2020 in a private offering worth $700 million.

    The net proceeds of the proposed offering will be utilized to retire the company?? bank credit facility, with remaining proceeds for general corporate purposes.

    View Comstock Resources press release

  • Data analysis TransCanada to Sell GTN Stake for $446 Million

    TransCanada Corporation has signed an agreement with TC PipeLines to sell its 30% stake in Gas Transmission Northwest LLC (GTN) for $446 million.The transaction comprised of $253 million in cash, the assumption of $98 million in proportional GTN debt and the issuance of $95 million of new Class B units to...

    TransCanada to Sell GTN Stake for $446 MillionData analysis
    Global Deals

    TransCanada Corporation has signed an agreement with TC PipeLines to sell its 30% stake in Gas Transmission Northwest LLC (GTN) for $446 million.

    The transaction comprised of $253 million in cash, the assumption of $98 million in proportional GTN debt and the issuance of $95 million of new Class B units to TransCanada. The Class B units will entitle TransCanada to a distribution based on 30% of GTN's annual cash distributions.

    Russ Girling, TransCanada's President and CEO, said: "This agreement is part of TransCanada's long-term strategy to drop down our remaining US natural gas pipeline assets to the Partnership on a more sizable and systematic basis."

    View TransCanada press release

  • Repsol 2014 Profit Rise 27% on Higher Refining Margins

    Repsol reported a rise of 27% YoY in its 2014 net profit of €1.7 billion (US$1.9 billion), boosted by the 24% YoY rise in its refining margins.In 2014, profits from downstream segment grew 111.3% YoY to €1 billion with improved refining and chemical margins. However, the net profit from upstream...

    Repsol 2014 Profit Rise 27% on Higher Refining Margins
    Results & Reports

    Repsol reported a rise of 27% YoY in its 2014 net profit of €1.7 billion (US$1.9 billion), boosted by the 24% YoY rise in its refining margins.

    In 2014, profits from downstream segment grew 111.3% YoY to €1 billion with improved refining and chemical margins. However, the net profit from upstream segment in 2014 was down 39.9% YoY to €589 million due to the suspended production in Libya and lower crude realization prices.

    The company reported a 2.5% YoY growth in its average production to 355 MBOE/d in 2014, with 40% YoY fall in the total revenue.

    Source: Reuters

  • Data analysis American Impact Energy Acquires Permian Basin Acreage

    American Impact Energy has announced its acquisition over 18,000 prime leasehold acres in the Permian Basin, Crockett County in Texas. The acreage included six horizontal wells, producing in the Wolfcamp formation.Dr. R. Gerald Bailey, Chairman of American Impact Energy, said: "Our new acreage provides...

    American Impact Energy Acquires Permian Basin AcreageData analysis
    Global Deals

    American Impact Energy has announced its acquisition over 18,000 prime leasehold acres in the Permian Basin, Crockett County in Texas. The acreage included six horizontal wells, producing in the Wolfcamp formation.

    Dr. R. Gerald Bailey, Chairman of American Impact Energy, said: "Our new acreage provides us prime opportunities for development in a current 'hot-spot' even at lower oil prices; we are extremely happy with both the current production from the leases as well as short and long-term development opportunities."

    Dr. Bailey also added, that the acquisition may include over 100 new drill sites in some of the most prolific Permian Basin plays.

    View American Impact Energy press release

  • Magellan Midstream Prices $500 Million Senior Notes Offer

    Magellan Midstream Partners announced the pricing of its senior notes worth $500 million. The notes consist of $250 million of its 3.20% senior notes due 2025, priced at 99.871% of par to yield 3.215% to maturity, and $250 million of its 4.20% senior notes due 2045, priced at 99.965% of par to yield 4.202% to...

    Magellan Midstream Prices $500 Million Senior Notes Offer
    Others

    Magellan Midstream Partners announced the pricing of its senior notes worth $500 million. The notes consist of $250 million of its 3.20% senior notes due 2025, priced at 99.871% of par to yield 3.215% to maturity, and $250 million of its 4.20% senior notes due 2045, priced at 99.965% of par to yield 4.202% to maturity.

    The funds will be utilized for general partnership purposes and to repay borrowings outstanding under its revolving credit facility and its commercial paper program.

    The offering is expected to close on 4-Mar-2015

    View Reliance Industries press release

  • Palomar Discovers Gas in South-West Poland

    San Leon Energy has announced that Palomar Natural Resources has made a gas discovery in the Rawicz-12 appraisal well, located in south-western Poland. The company was producing gas at a rate of approximately 4.1 MMcf/d.No record of material water and Hydrogen Sulphide gas has been produced. Gas quality...

    Palomar Discovers Gas in South-West Poland
    Exploration

    San Leon Energy has announced that Palomar Natural Resources has made a gas discovery in the Rawicz-12 appraisal well, located in south-western Poland. The company was producing gas at a rate of approximately 4.1 MMcf/d.

    No record of material water and Hydrogen Sulphide gas has been produced. Gas quality matches expectations and samples from previous wells in the field, at around 70% methane.

    The well will complete its flowing testing on 28-Feb-2015.

    Ownership of Rawicz project: Palomar Natural Resources (65%, operator) and San Leon (35%).

    View San Leon press release

  • Gulf Keystone Up for Sale
    Global Deals

    Sky News reports that Gulf Keystone Petroleum is exploring a potential sale. The company is expected to put itself on the market on 25-Feb-2015 by disclosing initial takeover discussions with potential buyers.

    View original article

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

  • Data analysis BHP Takes Fayetteville Acreage Off Market

    BHP Billiton has decided to retain its Fayetteville acreage within its portfolio. The company added that the long term development of Fayetteville remains an attractive option and with the majority of acreage held by production, the company will defer investment for value.View BHP press release

    BHP Takes Fayetteville Acreage Off MarketData analysis
    Headlines, Global Deals

    BHP Billiton has decided to retain its Fayetteville acreage within its portfolio. The company added that the long term development of Fayetteville remains an attractive option and with the majority of acreage held by production, the company will defer investment for value.

    View BHP press release

  • Mazarine Energy Spuds Zaafrane Permit Well in Tunisia

    Mazarine Energy has commenced the drilling of the Chouchet El Atrous-1 (CAT-1) well, located in the Zaafrane permit in central Tunisia. The first well, Cat-1, was spudded by Compagnie Tunisienne de Forage (CTF), which has been contracted for the drilling campaign. The well will be drilled to a depth of...

    Mazarine Energy Spuds Zaafrane Permit Well in Tunisia
    Exploration

    Mazarine Energy has commenced the drilling of the Chouchet El Atrous-1 (CAT-1) well, located in the Zaafrane permit in central Tunisia. The first well, Cat-1, was spudded by Compagnie Tunisienne de Forage (CTF), which has been contracted for the drilling campaign. The well will be drilled to a depth of 3,900m. The drilling campaign is expected to be completed in six months.

    Mazarine Energy plans to develop the field within two years, if the drilling campaign is successful.

    View Mazarine Energy press release

    Ownership of Zaafrane permit: Mazarine Energy (45%, operator), ETAP (50%) and MEDEX (5%).

    View Mazarine Energy press release

  • Data analysis Memorial Production Partners in Asset Swap

    Memorial Production Partners LP (MEMP) announced that it has completed an asset swap with Memorial Resource Development (MRD). The transaction involved MRD exchanging its East Texas and non-core Louisiana oil and gas properties for all of MEMP's non-operating interests in the Terryville Field (103 gross...

    Memorial Production Partners in Asset SwapData analysis
    Global Deals

    Memorial Production Partners LP (MEMP) announced that it has completed an asset swap with Memorial Resource Development (MRD). The transaction involved MRD exchanging its East Texas and non-core Louisiana oil and gas properties for all of MEMP's non-operating interests in the Terryville Field (103 gross wells), and cash consideration of approximately $78 million. The Terryville field has an estimated proved reserves of approximately 20 Bcfe (30% liquids).

    Through the transaction, MEMP received properties located in the Joaquin Field in Shelby and Panola counties in East Texas. The acquired properties consist of 297 gross wells in East Texas and West Louisiana, where MEMP will operate approximately 71% of the acquired producing wells.

    William J. (Bill) Scarff, President of the general partner of MEMP, said: "MEMP acquires additional working interests in producing properties it already owns in the Joaquin Field. Further, the transaction extends MEMP's extensive drilling inventory in the area and provides additional projects that are expected to achieve acceptable rates of return, even in this low commodity price environment."

    View Memorial Production Partners press release

  • Thailand Puts Oil and Gas Bidding on Hold

    Thailand's military government has announced the indefinite delay of the new oil and gas bidding concessions, pending an amendment to a petroleum law.Prayuth Chan-ocha, Prime Minister of Thailand, said: "We have delayed the bidding in order to amend the petroleum law.” He added that it would...

    Thailand Puts Oil and Gas Bidding on Hold
    Others

    Thailand's military government has announced the indefinite delay of the new oil and gas bidding concessions, pending an amendment to a petroleum law.

    Prayuth Chan-ocha, Prime Minister of Thailand, said: "We have delayed the bidding in order to amend the petroleum law.” He added that it would probably take about three months to get a final version of the petroleum law.

    Source: Reuters

  • Aibel Wins $1 Billion Johan Sverdrup EPC Contract
    Others, Headlines

    Statoil will sign an EPC contract with Aibel for the construction of the deck for the drilling platform on the Johan Sverdrup field. The contract is worth in excess of NOK 8 billion (US$1.05 billion). The contract includes EPC of the drilling platform deck to be built at the Aibel’s yard in Thailand and Haugesund, and at Nymo’s yard in Grimstad.

    The engineering design of the deck will be undertaken in Asker outside Oslo, while the assembly and mechanical completion of the deck will be carried out at the in Haugesund, with delivery in 2018.

    View Statoil press release

    Ownership of Johan Sverdrup oilfield: Statoil (40.02%), Lundin (22.12%), Petoro (17.84%), Det Norske (11.89%) and Maersk Oil (8.12%).

    View Statoil press release

  • Kosmos 2015 Capex to Rise 51%

    Kosmos Energy announced a 51% YoY increase in its planned 2015 capex budget to approximately $800 million. Approximately $500 million of the budget will be spent on development activity in Jubilee, and on the Tweneboa, Enyenra and Ntomme (TEN) project in Ghana.In its annual results for 2014, Kosmos revealed...

    Kosmos 2015 Capex to Rise 51%
    Results & Reports, Projects & Capex

    Kosmos Energy announced a 51% YoY increase in its planned 2015 capex budget to approximately $800 million. Approximately $500 million of the budget will be spent on development activity in Jubilee, and on the Tweneboa, Enyenra and Ntomme (TEN) project in Ghana.

    In its annual results for 2014, Kosmos revealed that total production in 2014 grew 11.5% YoY to 23.8 Mbbl/d. The company also reported that it incurred a capex of $528 million for the year.

    Net profit in 2014 was $279 million, against a net loss of $91 million in 2013 while revenue and other income was up 4% YoY to $883 million. Net reserves at the end of 2014 were 75 MMBOE, up 27% YoY.

    View Kosmos Energy press release

  • Shell Defers Pierre River Oil Sands Project

    Shell has announced the withdrawal of its regulatory application for the proposed Pierre River Mine on north of Fort McMurray, Alberta, to focus attention on its existing oil sands operations.Lorraine Mitchelmore, Shell Canada President and Executive Vice President of Heavy Oil, said:  "The Pierre...

    Shell Defers Pierre River Oil Sands Project
    Projects & Capex

    Shell has announced the withdrawal of its regulatory application for the proposed Pierre River Mine on north of Fort McMurray, Alberta, to focus attention on its existing oil sands operations.

    Lorraine Mitchelmore, Shell Canada President and Executive Vice President of Heavy Oil, said:  "The Pierre River Mine remains a very long term opportunity for us but it's not currently a priority… Our current focus is on making our heavy oil business as economically and environmentally competitive as possible. We will continue to hold the leases and can reapply in the future when the time is right."

    View Shell press release

  • Senex Hits Pay at Martlet North-1 in Cooper BasinData analysis
    Exploration

    Senex Energy has discovered oil at Martlet North-1 well on the western flank of the South Australian Cooper Basin, located approximately 1.1 km north-west of Martlet-1 which is producing from the Namur horizon. The primary objective of the well is to evaluate the oil potential of the Namur Sandstone, with a secondary target in the Birkhead Formation.

    The Martlet North-1 well encountered oil shows in the target reservoir and subsequent evaluation of logs indicate vertical net pay of 3.2m. The well has also hit oil shows in the Birkhead Formation.

    The well has been cased and suspended as a future Namur oil producer.

    Ownership of PRL 1481: Senex (60% operator) and Beach Energy (40%).

    View Senex Energy press release

    View Senex Energy operations webpage

  • Lime to Acquire 30% in PL338C from LundinData analysis
    Global Deals

    Lime Petroleum has signed an agreement with Lundin Petroleum to acquire a 30% stake in PL338C in the Norwegian North Sea. The deal follows the spudding of an exploration well in the Gemini prospect by the semi-submersible Island Innovator on 15-Feb-2015.

    The Gemini prospect is located 10 km from the Edvard Grieg production platform. Lundin has estimated the prospect to contain gross unrisked prospective resources of 93 MMBOE with a chance of geological success of 24%, in Paleocene aged sandstones in a stratigraphic pinch-out trap.

    Post-transaction ownership of PL338C: Lundin (50%, operator), Lime Petroleum (30%) and OMV (20%).

    View Lime Petroleum press release

    View Lundin Petroleum exploration webpage

  • Lime Acquires Stakes in Three Norwegian LicensesData analysis
    Global Deals

    Lime Petroleum has signed an agreement with Tullow Oil to acquire an additional 20% stake in licenses PL591, PL591B and PL591C in the Norwegian Sea.

    The licenses contain the Zumba prospect, where drilling is scheduled for mid-July 2015 using the rig Leiv Eriksson. The prospect has Late Jurassic aged Rogn Formation sandstones as reservoir targets, holding a gross potential of some 250 MMBOE and geological chance of success estimated at 27%.

    Post-transaction ownership of PL591, PL591B and PL591C: Tullow (60%, operator), Lime Petroleum (25%) and North Energy (15%).

    View Lime Petroleum press release

    View North Energy Norway licenses map webpage

  • Statoil Farms-Into Four Voring Basin LicensesData analysis
    Global Deals

    Statoil signed a farm-in agreement with Atlantic Petroleum for four exploration licenses (PL602, PL704, PL705 and PL802) in the Vøring Basin, Norway.

    Statoil will purchase a 2.5% participating interest in PL602 from Atlantic Petroleum for a post-tax cash consideration. In addition Statoil will also get an option to purchase up to 20% in PL704 and PL705. The company shall also have the right to acquire up to 10% in PL802.

    The rights to acquire interest in all three licenses are valid up to 30-Apr-2015.

    View Atlantic Petroleum press release

    In a separate deal, Statoil has entered into an agreement to buy out Rocksource in PL602.

    View Rocksource press release

    Post-transaction ownership of PL602: Statoil (42.5%, Operator), Petoro (20%), Centrica Resources (10%), Atlantic Petroleum (7.5%) and Wintershall (10%).

    Current ownership of PL704: E.On (40%, operator), Repsol (30%) and Atlantic Petroleum (30%).

    Current ownership of PL705: Repsol (40%, operator), Atlantic Petroleum (30%) and E.On (30%).

    Current ownership of PL802: Repsol (40%, operator), Atlantic Petroleum (20%), E.On (30%) and OMV (20%).

    View Atlantic Petroleum operations webpage

  • Statoil to Spud Roald Rygg Prospect
    Exploration

    Atlantic Petroleum has announced that Statoil will drill a well in 2015 to test the Roald Rygg Prospect in PL602, located in the Vøring Basin. PL602 is located close to the Luva, Snefrid and Haklang discoveries which will be developed as the Aasta Hansteen Field.

    Ownership of PL602: Statoil Petroleum (30%, Operator), Petoro (20%), Centrica Resources (10%), Atlantic Petroleum (10%), Rocksource Exploration (10%) and Wintershall (10%).

    View Atlantic Petroleum press release

    View Atlantic Petroleum operations webpage

  • Russneft Names Oleg Gordeyev as President

    Russneft has named Oleg Gordeyev as President, effective from 3-Feb-2015. Mr. Gordeyev replaces Mikhail Gutseriyev, the founder of Russneft.Source: Reuters

    Russneft Names Oleg Gordeyev as President
    Headlines

    Russneft has named Oleg Gordeyev as President, effective from 3-Feb-2015. Mr. Gordeyev replaces Mikhail Gutseriyev, the founder of Russneft.

    Source: Reuters

  • EMP Hits More Pay in Malacca Strait PSC
    Exploration

    Energi Mega Persada (EMP) reported additional production from the Malacca Strait PSC block in Riau, Sumatra. The block is now producing an additional 300 bbl/d of oil.

    Imam Agustino, CEO of EMP, said, "The additional oil output shows that Malacca Strait has successfully developed a new field despite the fact that it is a mature block."

    Ownership of Malacca Strait PSC block: EMP (60.49%, operator), OOGC (32.58%) and Malacca Petroleum (6.93%).

    View EMP press release

    View EMP operations webpage

  • Titan Expands US Gulf Coast Acreage

    Titan has acquired 850 net acres (1,724 gross acres) on the south-western flank of Boling Dome, south-west of Houston, Texas. The target depths in the acreage range from 3,500 feet to 7,500 feet in the Miocene and Frio sand formations.Titan will also increase its acreage holdings on Allen Dome with an...

    Titan Expands US Gulf Coast Acreage
    Others

    Titan has acquired 850 net acres (1,724 gross acres) on the south-western flank of Boling Dome, south-west of Houston, Texas. The target depths in the acreage range from 3,500 feet to 7,500 feet in the Miocene and Frio sand formations.

    Titan will also increase its acreage holdings on Allen Dome with an additional 314 acres acquired on the eastern flank of the dome beyond the existing Perry Ranch property. The company currently holds 1,085 net acres (1,642 gross acres). The target formations identified in the review range in depth from 3,500 to 8,000 feet.

    View Titan press release

  • AWE Expects $50 Million in Impairments

    AWE Limited revealed that it expects to report non-cash impairment charges of approximately $50 million after tax ($92.6 million before tax) in its upcoming H1-2015 results.The charges reflect the impact of lower oil prices on the carrying values for oil producing assets. The charges will result in a non-cash...

    AWE Expects $50 Million in Impairments
    Results & Reports

    AWE Limited revealed that it expects to report non-cash impairment charges of approximately $50 million after tax ($92.6 million before tax) in its upcoming H1-2015 results.

    The charges reflect the impact of lower oil prices on the carrying values for oil producing assets. The charges will result in a non-cash accounting adjustment to the book values of the Cliff Head and Tui assets. The company booked a non-cash impairment charge of $10.6 million in the Cliff Head Oil Project and $39.6 million in the Tui Area Oil Project.

    View AWE Limited press release

  • Statoil Brings Oseberg Delta 2 Field Online
    Headlines, Projects & Capex

    Statoil announced that the Oseberg Delta 2 field has commenced production in the North Sea. The field has recoverable reserves estimated at 77 MMBOE, comprising of 32 MMBOE of oil and 45 MMBOE of gas. The field is tied back to the Oseberg Field Centre, and located 14 km to its south. The field has been developed using two subsea templates with capacity for a total of eight wells.

    Total investment in the Oseberg Delta 2 project is slightly less than NOK 7 billion (US$910 million), well below the the estimated investment cost when the project was sanctioned. The initial phase of the plan initially involves three oil producers and two gas injectors.

    Ownership of Oseberg Delta 2: Statoil (Operator, 49.3%), Petoro (33.6%), Total (14.7%) and ConocoPhillips (2.4%).

    View Statoil press release

  • Cheniere Considering FID for Sabine Pass Train 5-6
    Projects & Capex, Others

    Cheniere Energy is considering making an FID for the construction of Train 5 and Train 6 of its Sabine Pass Liquefaction facility in Louisiana. The company added that the FID will be based on multiple conditions getting fulfilled including entering into EPC contracts, acceptable commercial arrangements and receiving all regulatory approvals.

    View Cheniere Energy press release

    View Cheniere Energy operations webpage

  • Chevron to Abandon Romania Shale Gas Exploration
    Projects & Capex

    Chevron announced that it will abandon its shale gas exploration plans in Romania, due to the unfavorable investment opportunities in the Black Sea state.

    Kent Robertson, Team Lead of Media Relations, Chevron, said: “Chevron intends to pursue relinquishment of its interest in these (Romanian) concessions in 2015… This is a business decision which is a result of Chevron's overall assessment that this project in Romania does not currently compete favorably with other investment opportunities in our global portfolio."

    Source: Reuters

    Chevron’s interests in Romania include the 1.6 million-acre (6,350 sq km) Barlad Shale concession and three concessions covering 670,000 acres (2,711 sq km).

    View Chevron operations webpage

    View Chevron Romania operations webpage

  • Highlights of the Week Ended 21-Feb-2014

    Global DealsThe week witnessed a few big midstream transactions.Phillips 66 Partnersbought  Phillips 66’s interests in three Texas pipeline systems for $1.01 billion. EnLink Midstream Partners’ also acquired25% equity interest in EnLink Midstream Holdings from EnLink Midstream LLC for $925...

    Highlights of the Week Ended 21-Feb-2014
    Global Deals, Results & Reports, Projects & Capex, Exploration

    Global Deals

    The week witnessed a few big midstream transactions.

    Phillips 66 Partners bought  Phillips 66’s interests in three Texas pipeline systems for $1.01 billion. EnLink Midstream Partners’ also acquired 25% equity interest in EnLink Midstream Holdings from EnLink Midstream LLC for $925 million.

    Mid-week, Shell sold 80% of its stake in its Bijupira and Salema fields located in Campos Basin for $150 million.

    Exploration

    While Statoil received a nod from NPD to drill the Snefrid North prospect in PL218, Lundin commenced drilling the Gemini prospect, located in PL338C off Norway.

    Meanwhile, BG was disappointed with the failure of the wildcat wells 34/3-4 S and 34/3-4 A located in PL373S off Norway.

    Project and Capex

    With the prevailing fall in oil prices, the oil companies continue to cut their capital budget for 2015. Santos has announced a 44% YoY cut in its planned 2015 capex budget to $2 billion. Meanwhile, EOG has also slashed its 2015 capex by 40% YoY to $4.9-5.1 billion. Devon has pegged its 2015 capex at $4.1-$4.4 billion, down 20% YoY.

  • Santos Hit by $1.6 Billion in Impairments

    Santos slumped into red with a net loss of $935 million in 2014, hit by non-cash impairment of $1.6 billion. The underlying profit for 2014 was up 6% YoY to $533 million.The 2014 production grew by 6% to 54.1 MMBOE, aided by the Cooper gas and oil growth as well as PNG LNG production.The sales revenue for...

    Santos Hit by $1.6 Billion in Impairments
    Results & Reports, Projects & Capex

    Santos slumped into red with a net loss of $935 million in 2014, hit by non-cash impairment of $1.6 billion. The underlying profit for 2014 was up 6% YoY to $533 million.

    The 2014 production grew by 6% to 54.1 MMBOE, aided by the Cooper gas and oil growth as well as PNG LNG production.

    The sales revenue for 2014 was $4 billion, higher 12% YoY, with a capex of $3.6 billion incurred in 2014. The company has cut 2015 capex by 44% YoY to $2 billion.

    Santos has forecasted a production of 57-64 MMBOE in 2015, with GLNG production to commence in H2-2015.

    View Santos press release

  • GeoPark Finds Oil at Tilo-1 Wildcat in Llanos-34Data analysis
    Exploration

    GeoPark has discovered a new oilfield following the drilling of exploration well Tilo-1, located in the Llanos 34 Block in Colombia.

    The Tilo prospect is a structural trap with three-way dip closure on the side of a normal fault targeting two principal productive reservoirs, where the Guadalupe sandstone is the primary target and Mirador sandstone is the secondary target.

    GeoPark has drilled and completed the Tilo-1 exploration well to a total depth of 11,293 ft. The well resulted in a production rate of nearly 1 Mbbl/d of 14.2° API oil on test with around 10% water cut. The test was conducted using an electric submersible pump at an approximate depth of 10,707 ft in the Guadalupe Formation.

    View GeoPark press release

    View GeoPark Colombia operations webpage

    Ownership of Llanos 34 Block: GeoPark (45%, operator) and Parex Resources (55%).

  • Pemex Puts DW Exploration Projects on Hold

    Pemex has postponed some deep water exploration projects as part of a raft of planned capital delays due to slumping crude prices.The company would also delay execution of capital projects including major refinery re-configurations and ultra-low sulfur fuel projects, driven by the sharp fall in oil...

    Pemex Puts DW Exploration Projects on Hold
    Headlines

    Pemex has postponed some deep water exploration projects as part of a raft of planned capital delays due to slumping crude prices.

    The company would also delay execution of capital projects including major refinery re-configurations and ultra-low sulfur fuel projects, driven by the sharp fall in oil prices.

    Emilio Lozoya, CEO of PEMEX, said: "There are...some exploration projects in deep waters, those that carry higher risks, well if we haven't started them then they will be delayed…a so-called "Round One" of oil contract tenders as Mexico opens up its energy fields would go ahead as planned…"

    Source: Reuters

  • EOG 2014 Profit Up 33%

    EOG Resources has announced a 33% YoY rise in its 2014 net profit to $2.9 billion. However, profits for Q4-2014 fell to $445 million, down 23% YoY. The net revenue of the company grew by 24% YoY to $18 billion in 2014.The company has reported a production growth of 17% YoY in 2014, aided by increased...

    EOG 2014 Profit Up 33%
    Results & Reports, Projects & Capex

    EOG Resources has announced a 33% YoY rise in its 2014 net profit to $2.9 billion. However, profits for Q4-2014 fell to $445 million, down 23% YoY. The net revenue of the company grew by 24% YoY to $18 billion in 2014.

    The company has reported a production growth of 17% YoY in 2014, aided by increased production of crude oil and condensate.

    The company has also slashed 2015 capex by 40% to $4.9-5.1 billion, primarily to be spent in North Dakota and Texas. The company has forecasted an average production of 289 Mbbl/d.

    View EOG press release

  • Statoil Gains Nod for Snefrid North WildcatData analysis
    Exploration

    The Norwegian Petroleum Directorate (NPD) has granted a drilling permit to Statoil for 6706/12-2 wildcat on Snefrid North prospect in PL218, located six km north-west of the Aasta Hansteen field in Norwegian Sea. The area in this license consists of part of block 6706/12 and part of block 6707/10.

    The well will be drilled by Transocean’s Spitsbergen drilling facility.

    Ownership of PL218: Statoil (51%, operator), Wintershall (24%), OMV (15%) and ConocoPhillips (10%).

    View NPD press release

  • Devon Cuts 2015 Capex by 20%

    Devon Energy has cut its 2015 E&P capex budget to $4.1-$4.4 billion, down 20% YoY.The company expected an oil production growth of 20-25% YoY in 2015, aided by the balanced oil growth in US and Canada.John Richels, President and CEO of Devon Energy, said: “We expect to sustain operational momentum...

    Devon Cuts 2015 Capex by 20%
    Projects & Capex

    Devon Energy has cut its 2015 E&P capex budget to $4.1-$4.4 billion, down 20% YoY.

    The company expected an oil production growth of 20-25% YoY in 2015, aided by the balanced oil growth in US and Canada.

    John Richels, President and CEO of Devon Energy, said: “We expect to sustain operational momentum in 2015 with the significant improvements we have seen in our completion designs and a capital program focused on development drilling…With strong results from our enhanced completions and a focus on core development areas, we expect growth in oil production to be between 20-25% in 2015, even with a projected reduction of approximately 20% in E&P capital spending compared to 2014.”

    View Devon press release

  • Eni to Cut 2015 Investments After Q4-2014 Profit Falls 64%

    Eni has announced that it would cut capital spending in 2015 after its net profit in Q4-2014 fell 64% YoY due to the sharp fall in oil prices. The company did not spell out the size of the cut it would make to investments but CEO Claudio Descalzi said that he is expecting a 10-15% cut.The company has also...

    Eni to Cut 2015 Investments After Q4-2014 Profit Falls 64%
    Results & Reports

    Eni has announced that it would cut capital spending in 2015 after its net profit in Q4-2014 fell 64% YoY due to the sharp fall in oil prices. The company did not spell out the size of the cut it would make to investments but CEO Claudio Descalzi said that he is expecting a 10-15% cut.

    The company has also reduced the number of expatriates working in Libya but says that it is continuing to produce oil and gas in a regular way in the country.

    Source: Reuters

  • Data analysis EnLink Midstream Drops Down Interest for $925 Million

    EnLink Midstream Partners (ENLK) has acquired a 25% equity interest in EnLink Midstream Holdings (EMH) from EnLink Midstream LLC (ENLC, General Partner) for $925 million. The transaction consideration consists entirely of Partnership units, resulting in the issuance of approximately 31.6 million units to the...

    EnLink Midstream Drops Down Interest for $925 MillionData analysis
    Headlines, Global Deals

    EnLink Midstream Partners (ENLK) has acquired a 25% equity interest in EnLink Midstream Holdings (EMH) from EnLink Midstream LLC (ENLC, General Partner) for $925 million. The transaction consideration consists entirely of Partnership units, resulting in the issuance of approximately 31.6 million units to the General Partner.

    EMH owns the assets that Devon Energy contributed to EnLink Midstream in Mar-2014, which include gathering and processing systems in North Texas and Oklahoma. The assets are supported by long-term, fixed-fee contracts with minimum volume commitments. The drop down of the remaining 25% equity interest in EMH is expected to occur later in 2015.

    Barry E. Davis, EnLink Midstream President and CEO, commented, ““By transferring these assets, we are able to support growth in distributions, reduce the leverage of the Partnership and lower the long term tax outlook for ENLC. This transaction represents the second drop down from the General Partner to the Partnership, and we expect future transactions like this to play a significant role in EnLink Midstream’s growth strategy.”

    View EnLink Midstream press release

  • ShaMaran Hits Pay at Atrush-3 AppraisalData analysis
    Exploration

    ShaMaran Petroleum announced that TAQA has successfully tested the Atrush-3 appraisal/development well (AT-3) in the Atrush Block, Kurdistan.

    The test consisted of a single commingled interval through two sets of 12m perforations which flowed with a maximum oil rate of 4.9 Mbbl/d, using an electrical submersible pump. Oil gravity was measured at 14° API oil. During the testing of AT-3, pressure gauges monitoring interference in the Atrush-2 well demonstrated that the Phase 2 appraisal area is in pressure communication with the Phase 1 development area. Full analysis AT-3 well testing results is ongoing.

    Atrush Block ownership: TAQA (39.9%, operator), KRG (25%), ShaMaran (20.1%) and Marathon Oil (15%).

    View ShaMaran press release

    View ShaMaran Petroleum operations webpage

     

  • Data analysis Phillips 66 Partners Buys Pipeline Systems for $1 Billion

    Phillips 66 Partners LP announced that it would buy Phillips 66’s interests in three pipeline systems for $1.01 billion, in order to expand its operations in Texas. The deal includes two natural gas pipeline systems based in Texas, as well as a 19.46% interest in the Explorer Pipeline Company, which...

    Phillips 66 Partners Buys Pipeline Systems for $1 BillionData analysis
    Global Deals

    Phillips 66 Partners LP announced that it would buy Phillips 66’s interests in three pipeline systems for $1.01 billion, in order to expand its operations in Texas. The deal includes two natural gas pipeline systems based in Texas, as well as a 19.46% interest in the Explorer Pipeline Company, which operates a pipeline carrying refined products between the Gulf Coast and the Midwest in the US.

    Under terms of the deal, Phillips 66 will receive a total of $1.01 billion consisting of $880 million in cash and 1.7 million Phillips 66 Partners' units.

    Source: Reuters

    View Phillips 66 Partners press release

  • Lundin Spuds Gemini Prospect Off NorwayData analysis
    Exploration

    Lundin Petroleum has commenced drilling of the Gemini prospect (16/1-24) located in PL338C off Norway. The primary objective of the well is to test the reservoir properties and hydrocarbon potential of Lower Paleocene aged sandstones of the Ty Formation.

    The well is planned to be drilled by the Island Innovator drilling rig to a total depth of approximately 2,192m below mean sea level. The drilling operation is expected to take approximately 40 days.

    Ownership of PL338C: Lundin (80%, operator) and OMV (20%).

    View Lundin press release

    View Lundin Norway operations webpage

  • Europa Farms-Out Stake in Tarbes Permit, France
    Others

    Europa Oil & Gas has signed a farm-out agreement with Vermilion Energy for the Tarbes Val d'Adour Permit located in France.Tarbes has previously produced oil from two fields and is located in the Aquitaine Basin close to the Lacq-Meillon gas fields. 

    Under the terms of the agreement, should Vermilion decide to proceed with exploration activities, they will assume 100% of the cost of an optional work program, which may include seismic acquisition/reprocessing and drilling operations up to a total of €4.65 million (USD$5.3 million). Once costs above this level are incurred, Europa will be responsible for its 20% share of future work program costs.

    Post-transaction ownership of Tarbes Permit: Vermilion (80%, operator) and Europa (20%).

    View Europa press release

    View Europa France operations webpage

  • BG Drills Duster at PL373S Off NorwayData analysis
    Headlines, Exploration

    The Norwegian Petroleum Directorate (NPD) announced that BG has failed to find any hydrocarbons at the wildcat wells 34/3-4 S and 34/3-4 A located in PL373S off Norway.

    The objective of wildcat well 34/3-4 S was to investigate a large channel system in reservoir rocks in the Pleistocene. The well encountered a 250m thick channel system, about 50m of which was of very good reservoir quality. Traces of gas were encountered in two thin sandstone layers.

    The purpose of well 34/3-4 A was to prove petroleum in lower Jurassic reservoir rocks (the Cook Formation). Well 34/3-4 A encountered about 110m of the Cook Formation, 53m of which was sandstone with good reservoir quality and traces of gas.

    Data sampling and aquisition have been carried out in both wells and have been classified as dry. The wells will now be permanently plugged and abandoned.

    View NPD press release

    Ownership of PL373 S: BG (45%, operator), Idemitsu (25%), Wintershall (20%) and RWE (10%).

  • Shell Sells Assets to PetroRio for $150 Million

    Shell has signed an agreement with PetroRio to sell 80% stake in its Bijupira and Salema fields located in Campos Basin, for $150 million.Of the total acquisition price, 20% is payable in cash and the balance will be payable at closing, upon satisfaction or waiver of all closing conditions. The balance may be...

    Shell Sells Assets to PetroRio for $150 Million
    Global Deals

    Shell has signed an agreement with PetroRio to sell 80% stake in its Bijupira and Salema fields located in Campos Basin, for $150 million.

    Of the total acquisition price, 20% is payable in cash and the balance will be payable at closing, upon satisfaction or waiver of all closing conditions. The balance may be funded through its existing standby credit facility provided by a syndicate of lenders led by Glencore.

    View PetroRio press release

  • Highlights of the Week Ended 14-Feb-2014

    Global DealsWhile Total decided to accelerateit 2015-17 asset sale program by selling $5 billion of assets in 2015, Apache deferredplans to divest Egypt and North Sea assets. However, Apache is still looking at a possible sale of its non-LNG assets in Australia.In the biggest deal of the year till date,...

    Highlights of the Week Ended 14-Feb-2014
    Headlines, Global Deals, Results & Reports, Projects & Capex, Exploration

    Global Deals

    While Total decided to accelerate it 2015-17 asset sale program by selling $5 billion of assets in 2015, Apache deferred plans to divest Egypt and North Sea assets. However, Apache is still looking at a possible sale of its non-LNG assets in Australia.

    In the biggest deal of the year till date, Energen announced the sale of gas assets in San Juan Basin to a private company for $395 million.

    The Shenzen-listed Xinjiang Zhudong Petroleum Technology will acquire the Galaz Contract Area in southern Kazakhstan for $100 million. The deal includes $10 million that is dependent on the price of Brent crude being $60/bbl or greater on 28-Apr-2015.

    Exploration

    The continued strife in Somalia forced Horn Petroleum to shut down operations in Puntland. Meanwhile Karoon Gas Australia announced the discovery of more oil in the Kangaroo-2 well in Santos Basin off Brazil.

    Project and Capex

    The results season continued this week with Total and Apache being the major companies declaring their numbers. Total’s 2014 profits crashed 62% YoY to $4.2 billion after the company took a $7.1 billion impairment charge. Impairments also hurt Apache which slumped into the red, declaring a loss of $5.4 billion for 2014.

    Total also announced a 10% YoY cut in its planned 2015 capex budget to $23-24 billion. Meanwhile, Apache reported a capex budget of $3.6-4 billion for 2015, largely stable as compared to 2014.

    Meanwhile in Australia, APLNG reported that first gas has reached Curtis Island from the coal seam gas fields in the Surat Basin.

    The Middle East witnessed Occidental signing a $500 million technical agreement with ADNOC to develop the al-Hail and Ghasha oilfields.

    Despite a slump in the oil price Statoil will be pushing ahead with the development of Johan Sverdrup, one of Norway’s largest discoveries. The company will invest NOK 117 billion (US$15.5 billion) to develop the first phase of the discovery and has pegged total capex for the discovery to be NOK 117-220 billion. The field has recoverable resources estimated to be 1.7-3 Bbbl.

  • Statoil to Spend $15.5 Billion on Johan Sverdrup Phase 1
    Headlines, Projects & Capex

    Statoil revealed that it will incur a capital expenditure of NOK 117 billion (US$15.5 billion) to develop the first phase of the Johan Sverdrup discovery. The capex estimate is part of the plan for development and operation (PDO) the company submitted to the Norwegian government for the first phase of the Johan Sverdrup discovery. The company estimates expected recoverable resources from the first phase to be 1.4-2.4 Bbbl.

    Development in phase one is expected to have a production capacity of 315-380 Mbbl/d with first oil planned for late 2019.

    Total capex for the field is estimated to be NOK 117-220 billion with recoverable resources of 1.7-3 Bbbl. The Johan Sverdrup oil field is planned to be developed in several phases, Phase one consists of four bridge-linked platforms, in addition to three subsea water injection templates.

    Ownership of Johan Sverdrup oilfield: Statoil (40.02%), Lundin (22.12%), Petoro (17.84%), Det Norske (11.89%) and Maersk Oil (8.12%).

    View Statoil press release

  • Fluor Bags Nexus Gas Pipeline EPC Contract

    Fluor Corporation has secured an EPC contract from Nexus Gas Transmission LLC for an approximately 250-mile natural gas transmission pipeline in Ohio and Michigan. The pipeline will have a capacity of transporting 2 Bcf/d of gas.The contract is to provide EPC and project management services for the...

    Fluor Bags Nexus Gas Pipeline EPC Contract
    Others

    Fluor Corporation has secured an EPC contract from Nexus Gas Transmission LLC for an approximately 250-mile natural gas transmission pipeline in Ohio and Michigan. The pipeline will have a capacity of transporting 2 Bcf/d of gas.

    The contract is to provide EPC and project management services for the mainline which is up to 42 inches in diameter. Fluor will also design and manage the construction of up to four compressor stations in Ohio to maintain the pressure needed to push the gas through the pipeline, as well as four meter stations that will provide flow control and gas quality monitoring services.

    View Fluor Corporation press release