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  • Data analysis Enbridge Mulls $900 Million Asset Transfer to Affiliate

    Enbridge has proposed to transfer its 66.7% interest in the US segment of the Alberta Clipper Pipeline to its affiliate, Enbridge Energy Partners (EEP), for $900 million. EEP already holds the remaining stake in the pipeline.The proposed consideration includes cash of approximately $300 million, plus...

    Enbridge Mulls $900 Million Asset Transfer to AffiliateData analysis
    Headlines, Global Deals

    Enbridge has proposed to transfer its 66.7% interest in the US segment of the Alberta Clipper Pipeline to its affiliate, Enbridge Energy Partners (EEP), for $900 million. EEP already holds the remaining stake in the pipeline.

    The proposed consideration includes cash of approximately $300 million, plus approximately $600 million of Class E equity units to be issued to Enbridge by EEP. The transfer is targeted to close by end-2014.

    The US segment of the Alberta Clipper Pipeline is a 36” diameter, 325 mile long crude oil pipeline from the US border near Neche, North Dakota to Superior, Wisconsin. The initial capacity of the line is 450 Mbbl/d and is being expanded in two phases to a capacity of 800 Mbbl/d through the addition of increased pumping horsepower. The required expansion investments are subject to separate joint funding arrangements between Enbridge and EEP.

    View Enbridge press release

  • Data analysis WesternZagros Restarts Garmian, Kurdamir Field Ops

    WesternZagros Resources has resumed field operations on the Garmian and Kurdamir blocks following the stabilization of industry conditions and the return of the third party oilfield services in Kurdistan.In Aug-2014, following consultation with the Ministry of Natural Resources of the Kurdistan Regional...

    WesternZagros Restarts Garmian, Kurdamir Field OpsData analysis
    Projects & Capex

    WesternZagros Resources has resumed field operations on the Garmian and Kurdamir blocks following the stabilization of industry conditions and the return of the third party oilfield services in Kurdistan.

    In Aug-2014, following consultation with the Ministry of Natural Resources of the Kurdistan Regional Government, the company undertook the precautionary step of withdrawing non-essential personnel from field locations and company regional offices.

    WesternZagros' CEO Simon Hatfield commented: "We now look forward to completing the Sarqala-1 workover, the testing of Hasira-1, and the further development of the existing production facilities on the Garmian Block. On the Kurdamir Block, following the submission of the Development Plan on 31-Aug-2014 we look forward to spudding our first horizontal well at Kurdamir-4."

    View Westernzagros press release  

  • Data analysis Western Refining to Buy COP's Wingate Facility

    Western Refining has entered into an agreement with ConocoPhillips to acquire the 25 Mbbl/d Wingate Fractionation plant located in Gallup, New Mexico. The Wingate facility includes rail loading and offloading capabilities and storage facilities in addition to NGL fractionation capability. The transaction is...

    Western Refining to Buy COP's Wingate FacilityData analysis
    Others

    Western Refining has entered into an agreement with ConocoPhillips to acquire the 25 Mbbl/d Wingate Fractionation plant located in Gallup, New Mexico. The Wingate facility includes rail loading and offloading capabilities and storage facilities in addition to NGL fractionation capability. The transaction is expected to close by early Oct-2014.

    Jeff Stevens, Western's President and CEO said: "This transaction will afford Western greater flexibility in the Four Corners region as it will provide approximately 125 Mbbl of pipeline-connected seasonal NGL storage for our Gallup Refinery; crude oil loading and transportation capabilities, both east and west, through the rail loading terminal; and pipeline connectivity to Western Refining Logistics assets."

    View Western Refining press release

  • Sinopec to Start Trial Ops at First LNG Terminal by Oct-2014

    Sinopec will start trial operations at its first 3 MMTPA LNG terminal, located in China’s Shandong province, by end-Oct-2014. The terminal is expected to receive its first LNG cargo by the end of next month.The company signed a deal in 2009 to buy 2 MMTPA of LNG for 20 years from ExxonMobil's Papua...

    Sinopec to Start Trial Ops at First LNG Terminal by Oct-2014
    Others

    Sinopec will start trial operations at its first 3 MMTPA LNG terminal, located in China’s Shandong province, by end-Oct-2014. The terminal is expected to receive its first LNG cargo by the end of next month.

    The company signed a deal in 2009 to buy 2 MMTPA of LNG for 20 years from ExxonMobil's Papua New Guinea project.

    Source: Reuters

  • Shell Says Outage Cuts St Fergus Gas Terminal Flows

    An unplanned outage has cut gas flows at Shell's St Fergus gas processing terminal in Britain. "Some minor unplanned maintenance work has temporarily impacted gas flows to St Fergus. We expect levels to return to normal shortly," a spokeswoman for the company said.The unplanned maintenance...

    Shell Says Outage Cuts St Fergus Gas Terminal Flows
    Others

    An unplanned outage has cut gas flows at Shell's St Fergus gas processing terminal in Britain. "Some minor unplanned maintenance work has temporarily impacted gas flows to St Fergus. We expect levels to return to normal shortly," a spokeswoman for the company said.

    The unplanned maintenance contributed to an under-supplied system in Britian's gas market.

    Source: Reuters

  • Statoil: COSL Pioneer Charter Temporarily Suspended

    Statoil has decided to suspend its charter for semi-submersible COSL Pioneer due to “rig overcapacity”. The rig is currently carrying out an assignment on the Visund Field and is scheduled to complete its work by end-Sep-2014.The rig is contracted until 2016 and will be used for drilling and...

    Statoil: COSL Pioneer Charter Temporarily Suspended
    Headlines

    Statoil has decided to suspend its charter for semi-submersible COSL Pioneer due to “rig overcapacity”. The rig is currently carrying out an assignment on the Visund Field and is scheduled to complete its work by end-Sep-2014.

    The rig is contracted until 2016 and will be used for drilling and completion of production wells on the Norwegian Continental Shelf.

    View Statoil press release

  • Eni Cheers Oil Discovery in Block 15/06 Off AngolaData analysis
    Headlines, Exploration

    Eni has made a new oil discovery at the Ochigufu exploration prospect located in Block 15/06 off Angola. The well encountered a net oil pay of 47m (34° API) in the Lower Miocene and Oligocene sandstones. Oghigufu is the tenth commercial oil discovery made in Block 15/06 and is estimated to contain 300 MMbbl of oil in place.

    The well is located at approximately 150 km off the coast and 9.8 km from the Ngoma FPSO (West Hub) and the closeness to Ngoma FPSO allows the increase of the resource base of the West Hub project, currently underway. The well was drilled by the Ocean Rig Poseidon in a water depth of 1,337m and reached a total depth of 4,470m.

    Ownership of Block 15/06: Eni (35%, operator), Sonangol (30%), SSI Fifteen Limited (25%), Falcon Oil (5%) and Statoil (5%).

    View Eni press release

    View Falcon's operations webpage

  • Data analysis Morgan Stanley Buys into Magnum Hunter Gas Gathering Unit

    Magnum Hunter Resources said that it will sell a stake in a natural gas gathering unit in Marcellus and Utica shale fields to the infrastructure investment unit of Morgan Stanley. Morgan Stanley will pay Magnum Hunter $65 million for a 6.5% stake in the Eureka Hunter gas gathering business.In addition, Morgan...

    Morgan Stanley Buys into Magnum Hunter Gas Gathering UnitData analysis
    Global Deals

    Magnum Hunter Resources said that it will sell a stake in a natural gas gathering unit in Marcellus and Utica shale fields to the infrastructure investment unit of Morgan Stanley. Morgan Stanley will pay Magnum Hunter $65 million for a 6.5% stake in the Eureka Hunter gas gathering business.

    In addition, Morgan Stanley Infrastructure will also buy about 41% in Eureka Hunter from a unit of ArcLight Capital Partners for an unspecified amount.

    After the two separate transactions, Magnum Hunter and Morgan Stanley Infrastructure together would hold an equity interest of about 98%in Eureka Hunter.

    The Eureka Hunter gas gathering system uses a network of pipelines to transport dry and wet gas from wellheads to long-haul pipelines and processing plants. The system currently has more than 100 miles of pipeline in Ohio and West Virginia with interconnections to multiple processing plants and interstate pipelines. There are also more than 50 additional miles of additional pipeline under construction, most of which is scheduled for completion in 2014.

    View Magnum Hunter press release  

  • Petroceltic, Hess to Resume Kurdistan Drilling in Oct-2014

    Petroceltic said that it would resume drilling in Kurdistan together with partner Hess in early Oct-2014, after operations were suspended at one of its wells due to security risks in the region.The company also lifted its 2014 production guidance to between 21-23 MMBOE/d, after its first-half output exceeded...

    Petroceltic, Hess to Resume Kurdistan Drilling in Oct-2014
    Results & Reports, Projects & Capex

    Petroceltic said that it would resume drilling in Kurdistan together with partner Hess in early Oct-2014, after operations were suspended at one of its wells due to security risks in the region.

    The company also lifted its 2014 production guidance to between 21-23 MMBOE/d, after its first-half output exceeded forecasts.

    Despite the higher output, Petroceltic slipped further into the red over H1-2014, making a net loss of $57.4 million compared with a loss of $16 million at the same time last year, due to exploration write offs of $64.3 million in Kurdistan, Romania and Egypt. 

    Source: Reuters

  • Keppel Nets $227 Million Jack Up Contract

    Keppel Offshore & Marine has secured a contract from Gulf Drilling International (GDI) to build a repeat high-specification KFELS B Class jack-up rig worth $227 million. As part of the contract, GDI has options for two more KFELS B Class rigs for deliveries in 2017.On the new jack-up, to be named Halul,...

    Keppel Nets $227 Million Jack Up Contract
    Others

    Keppel Offshore & Marine has secured a contract from Gulf Drilling International (GDI) to build a repeat high-specification KFELS B Class jack-up rig worth $227 million. As part of the contract, GDI has options for two more KFELS B Class rigs for deliveries in 2017.

    On the new jack-up, to be named Halul, Keppel has already begun preparations for its scheduled delivery in Q1-2016 during the course of discussions with GDI. Upon delivery, Halul will be chartered to Qatar Petroleum for five years.

    View Keppel press release

  • Data analysis Apache Seeks to Sell Alberta Oil Assets

    Apache plans to sell some of its oil and gas properties in Western Canada as the company continues to winnow its portfolio of international assets.The company has put its Provost holdings in east-central Alberta on the block and the bids are due by mid-Oct-2014. The Provost lands produce about 9.6 MBOE/d and...

    Apache Seeks to Sell Alberta Oil AssetsData analysis
    Headlines, Global Deals

    Apache plans to sell some of its oil and gas properties in Western Canada as the company continues to winnow its portfolio of international assets.

    The company has put its Provost holdings in east-central Alberta on the block and the bids are due by mid-Oct-2014. The Provost lands produce about 9.6 MBOE/d and include a million acres of exploration property, according to a notice on the website of Scotia Waterous, which is handling the sale.

    The sale is the latest for Apache as it moves to concentrate on North American shale fields.

    Source: Reuters

  • Data analysis Total Resumes $2.5 Billion Usan Block Sale

    Total has put up the Usan deep-water field, located in the OML 138 off Nigeria, for sale again. The company has hired BNP Paribas to find buyers for its oilfield which could be worth about $2.5 billion.In Nov-2012, Total had entered into an agreement with Sinopec to sell its stake in the same block but...

    Total Resumes $2.5 Billion Usan Block SaleData analysis
    Headlines, Global Deals

    Total has put up the Usan deep-water field, located in the OML 138 off Nigeria, for sale again. The company has hired BNP Paribas to find buyers for its oilfield which could be worth about $2.5 billion.

    In Nov-2012, Total had entered into an agreement with Sinopec to sell its stake in the same block but the deal collapsed due to unknown reasons.

    Source: Reuters

  • Data analysis Vitesse Acquires Williston Basin Acreage for $187 Million

    Vitesse Energy LLC, a subsidiary of Leucadia National Corporation, announced the acquisition of non-operated oil and gas assets in the Williston Basin from EnerVest Operating LLC, for $187 million.The assets acquired include a working interest in approximately 600 wells and over 19,000 net acres primarily in...

    Vitesse Acquires Williston Basin Acreage for $187 MillionData analysis
    Headlines, Global Deals

    Vitesse Energy LLC, a subsidiary of Leucadia National Corporation, announced the acquisition of non-operated oil and gas assets in the Williston Basin from EnerVest Operating LLC, for $187 million.

    The assets acquired include a working interest in approximately 600 wells and over 19,000 net acres primarily in Williams, McKenzie and Mountrail counties.

    View Vitesse press release

  • Total: Libra Oilfield to Cost $80 Billion

    Total said that the Libra oilfield, located off the coast of Rio de Janeiro, will cost $80 billion to develop. The block covers approximately 1,550 sq km in water depths of around 2,000m. The estimated recoverable resources of Libra discovery is around 8-12 Bbbl of oil.Ladislas Paszkiewicz, Total VP...

    Total: Libra Oilfield to Cost $80 Billion
    Headlines, Projects & Capex

    Total said that the Libra oilfield, located off the coast of Rio de Janeiro, will cost $80 billion to develop. The block covers approximately 1,550 sq km in water depths of around 2,000m. The estimated recoverable resources of Libra discovery is around 8-12 Bbbl of oil.

    Ladislas Paszkiewicz, Total VP (E&P-Americas), said at a conference in Rio de Janeiro: "(Libra) will give us a return on our investment for many decades."

    Ownership of Libra: Petrobras (40%, operator), Total (20%), Shell (20%), CNPC (10%) and CNOOC (10%).

    Source: Reuters

  • Data analysis Vanguard Buys Piceance Basin Assets for $525 Million

    Vanguard Natural Resources has entered into an agreement with Bill Barrett Corporation to acquire assets in Colorado’s Piceance Basin for $525 million. The properties consist of approximately 12,000 net acres that are currently producing approximately 67 MMcfe/d (76% gas), after consideration of ethane...

    Vanguard Buys Piceance Basin Assets for $525 MillionData analysis
    Global Deals, Headlines

    Vanguard Natural Resources has entered into an agreement with Bill Barrett Corporation to acquire assets in Colorado’s Piceance Basin for $525 million. The properties consist of approximately 12,000 net acres that are currently producing approximately 67 MMcfe/d (76% gas), after consideration of ethane rejection. The company anticipates closing this acquisition on or before 1-Oct-2014.

    The assets comprise an average working interest of 78% in approximately 950 producing wells, 119 recompletion projects and 94 proved undeveloped vertical drilling locations. They have an estimated reserve life of approximately 16 years based on internally estimated proved reserves of approximately 389 Bcfe (79% proved developed and 77% natural gas).

    Vanguard President and CEO Scott W. Smith said: “With this acquisition we are acquiring the balance of the working interest in properties where we first established a non-operated position in December of 2012.”

    View Vanguard press release

  • Data analysis Eagle Energy Buys Mississippian Assets for $195 Million

    Eagle Energy Exploration announced the signing of a definitive agreement to acquire oil and gas assets in Oklahoma's Mississippi Lime play from Fairway Resources Partners II for $195 million.The properties to be acquired comprise approximately 20,000 net acres in Alfalfa, Grant and Woods counties with...

    Eagle Energy Buys Mississippian Assets for $195 MillionData analysis
    Global Deals, Headlines

    Eagle Energy Exploration announced the signing of a definitive agreement to acquire oil and gas assets in Oklahoma's Mississippi Lime play from Fairway Resources Partners II for $195 million.

    The properties to be acquired comprise approximately 20,000 net acres in Alfalfa, Grant and Woods counties with current production from the Mississippi Lime.

    View Riverstone press release

  • InterOil Spuds Antelope 4 Appraisal Well in PNG
    Exploration

    InterOil has started drilling the Antelope-4 appraisal well located in Papua New Guinea’s Petroleum Retention License 15. Antelope-4 is the first of at least two appraisal wells planned on the Antelope Field.

    The well lies about 1 km south of Antelope-2 and is the most southern well in the Elk-Antelope Field.

    Antelope-5, the second appraisal well in the license, is expected to be drilled later in 2014.

    View InterOil press release

    Ownership of Petroleum Retention License 15: InterOil (27.5%, operator), Total (31.1%), Oil Search (17.7%), PNG Government and landholders (22.5%) and indirect participating interests (1.2%).

    View Oil Search operations webpage

  • Vantage to Raise $636 Million in IPO

    Vantage Energy announced the commencement of an IPO of 23.5 million shares of its common stock, at an anticipated price between $24 and $27 per share. The company is offering 15.7 million shares of its common stock, and the selling stockholders named in the registration statement are offering 7.85 million...

    Vantage to Raise $636 Million in IPO
    Others

    Vantage Energy announced the commencement of an IPO of 23.5 million shares of its common stock, at an anticipated price between $24 and $27 per share. The company is offering 15.7 million shares of its common stock, and the selling stockholders named in the registration statement are offering 7.85 million shares of the company's common stock.

    The selling stockholders also expect to grant the underwriters a 30-day option to purchase up to an additional approximately 3.5 million shares of the company's common stock from such selling stockholders if the underwriters sell more than 23.5 million shares of the company's common stock. Vantage has been approved to list its common stock on the NYSE under the symbol "VEI".

    Barclays, Goldman Sachs, Citigroup, Credit Suisse, Tudor, Pickering, Holt & Co. and Wells Fargo Securities will act as joint book-running managers of the offering.

    View Vantage press release

  • Ithaca: Successful Flow Test on Fourth Stella WellData analysis
    Projects & Capex

    Ithaca Energy announced that the B2 development well, located at the Stella Field in UK Central North Sea, has successfully flowed at a maximum rate of approximately 12 MBOE/d on a 48/64” choke. This is the fourth development well drilled on the field.

    The well was drilled to a total depth of 14,461 ft and well intersected ‘high quality’ sands across a net reservoir interval of 1,658 ft, equating to 69% net pay. Fluid samples show that the oil is approximately 47° API. The well is currently in the process of being suspended, with operations scheduled to be completed by the end of the month.

    Upon completion of operations on the B2, the rig will be moved to drill a fifth well on the field, in the Stella Ekofisk reservoir that underlies the main Stella Andrew reservoir. It is expected to be completed by early 2015 and will mark the end of the planned Stella development drilling campaign.

    Ownership of Stella Field: Ithaca (55%, operator), Dyas Limited (25%) and Petrofac (20%).

    View Ithaca press release

    View Dyas UK operations webpage

  • Ophir Hits Pay at Silenus East-1 Well in Equatorial GuineaData analysis
    Exploration

    Ophir Energy announced that the Silenus East-1 well in Block R, Equatorial Guinea, has resulted in a new gas discovery. A 67m gross gas column was encountered in the primary target with high quality reservoir in line with pre-drill expectations. The well was deepened to test a secondary high risk oil target and encountered high quality, but water-wet, reservoirs with weak oil shows. The play will be further evaluated on the block.

    The Silenus East-1 well has discovered an estimated mean recoverable 405 Bcf of gas from the upper and deeper reservoirs and has significantly de-risked a family of similar surrounding prospects such that the total mean recoverable gas in the broader Silenus area including this discovery is now estimated at approximately 1.2 Tcf. The rig has now moved to complete the Fortuna-2 appraisal well, where Ophir will conduct the first flow test in Block R.

    Ophir CEO Nick Cooper commented: "The Silenus East well result has confirmed sufficient incremental volumes for Ophir to be able to expand the Block R FLNG project from a 2.5 MMTPA to a 3 MMTPA project. First gas from the FLNG project is expected to be in early 2019."

    Ownership of Block R: Ophir (80%, operator) and GEPetrol (20%).

    View Ophir press release

    View Ophir operations webpage

  • Pacific Rubiales Prices $750 Million Senior Notes

    Pacific Rubiales Energy has priced an offering of $750 million in senior unsecured notes due 2025 at a coupon rate of 5.625%. The offering is expected to close on 19-Sep-2014.The notes were placed through Citigroup Global Markets and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as joint lead...

    Pacific Rubiales Prices $750 Million Senior Notes
    Others

    Pacific Rubiales Energy has priced an offering of $750 million in senior unsecured notes due 2025 at a coupon rate of 5.625%. The offering is expected to close on 19-Sep-2014.

    The notes were placed through Citigroup Global Markets and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as joint lead managers and joint bookrunners.

    View Pacific Rubiales press release

  • Henry Hub Pipeline Blast Affects 'Minimal Gas Production'

    Chevron said that the blast on a natural gas gathering pipeline into the Henry Hub supply hub in Louisiana interrupted "minimal gas production." The company has re-routed most of the affected production from the blast to an alternative gas system.The workers were performing routine maintenance on a...

    Henry Hub Pipeline Blast Affects 'Minimal Gas Production'
    Others

    Chevron said that the blast on a natural gas gathering pipeline into the Henry Hub supply hub in Louisiana interrupted "minimal gas production." The company has re-routed most of the affected production from the blast to an alternative gas system.

    The workers were performing routine maintenance on a Chevron Midstream Pipeline gas gathering line in offshore Louisiana waters when the accident occurred. The company suspects that a platform valve blow-out may have been the cause.

    The unit that operates the line is continuing to de-pressurize the line offshore to allow a safe repair onshore.

    Source: Reuters

  • Nexen Temporarily Shuts Down Rochelle FieldData analysis
    Projects & Capex

    Endeavour International announced that the Nexen-operated Rochelle Field is offline until repairs to the dry gas export compressors on the Scott platform are completed. The field's first production well came online in Oct-2013.

    As a result of the unplanned downtime at the field, the company is revising its Q3-2014 guidance down 500 BOE/d to 9-10 MBOE/d.

    Rochelle ownership: Nexen (41%, operator), Endeavour (44%) and Premier Oil (15%).

    View Endeavour press release

    View Endeavour operations webpage

  • ConocoPhillips Mulls Clair Oilfield Stake SaleData analysis
    Global Deals, Headlines

    Reuters reports, quoting the Financial Times, that ConocoPhillips is preparing to auction its 24% stake in the Clair oilfield in the United Kingdom. The company has hired banks to sell its stake in the oilfield in a deal that could fetch between $2 billion to $3 billion.

    Clair oilfield, which was discovered in 1977 and extends over 220 sq km, is located in Scottish territorial waters west of the Shetland Islands. It has an estimated 8 Bbbl of oil, making it the largest hydrocarbon resource in Europe. The second phase of the oilfield, known as Clair Ridge, is being developed at a cost of £4.5 billion (US$7.3 billion), with production estimated to start in 2016/2017.

    Source: Reuters

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

  • Data analysis PTTEP Mulls $1 Billion Mozambique Spend

    PTTEP has planned to spend up to $1 billion on its Mozambique Rovuma Offshore Area 1 project over the next five to six years starting from 2015.The project, which will link to a LNG terminal, aims to produce 10 MMT of LNG a year by late 2018 or 2019.Source: Reuters

    PTTEP Mulls $1 Billion Mozambique SpendData analysis
    Projects & Capex, Headlines

    PTTEP has planned to spend up to $1 billion on its Mozambique Rovuma Offshore Area 1 project over the next five to six years starting from 2015.

    The project, which will link to a LNG terminal, aims to produce 10 MMT of LNG a year by late 2018 or 2019.

    Source: Reuters

  • Central Spuds Gaudi-1 Well in Southern Georgina BasinData analysis
    Exploration

    Central Petroleum has commenced drilling operations at the Gaudi-1 unconventional exploration well located in ATP 909 in Australia’s Southern Georgina Basin. The well will be drilled to a total depth of 2,900m.

    The primary objective of the well is the Lower Arthur Creek Formation, which will be fully cored and sampled for gas desorption and reservoir properties.

    Ownership of ATP 909: Central Petroleum (90%, operator) and Total (10%).

    View Central press release

  • Data analysis Linc Awards Drilling Contract to Titan

    Linc Energy has awarded a contract to Titan Energy Services for drilling in the Arckaringa Basin, onshore Australia. Under the contract, Titan will undertake Linc’s three-well unconventional gas drilling program in the basin.Drilling will commence in Oct-2014 and is expected to be completed in early...

    Linc Awards Drilling Contract to TitanData analysis
    Others

    Linc Energy has awarded a contract to Titan Energy Services for drilling in the Arckaringa Basin, onshore Australia. Under the contract, Titan will undertake Linc’s three-well unconventional gas drilling program in the basin.

    Drilling will commence in Oct-2014 and is expected to be completed in early Feb-2015.

    View Titan press release

  • Shell Revives Plan to Sell European LPG Business
    Global Deals, Headlines

    Reuters reports, quoting the Financial Times, that Shell has appointed Credit Suisse to advise the company on the sale of its European LPG business. The business, which Shell previously tried to sell in 2010, could be valued at as much as $1.63 billion and is expected to attract bids from private equity firms as well as trade buyers.

    The newspaper said buyout groups PAI Partners, CVC Capital, Ardian, First Reserve and Advent International had submitted bids for the business in 2010.

    Source: Reuters

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

  • Aker Nets $465 Million Subsea Contract from Petrobras

    Aker Solutions has won a five-year contract worth $465 million from Petrobras to provide subsea intervention services offshore Brazil from the Aker Wayfarer vessel.The contract will start within Q4-2016 and has a five-year option extension. The vessel will be outfitted at a yard in Norway to become a...

    Aker Nets $465 Million Subsea Contract from Petrobras
    Others

    Aker Solutions has won a five-year contract worth $465 million from Petrobras to provide subsea intervention services offshore Brazil from the Aker Wayfarer vessel.

    The contract will start within Q4-2016 and has a five-year option extension. The vessel will be outfitted at a yard in Norway to become a deep-water subsea equipment support vessel. It will have a fibre-rope deployment system, deck skidding systems and a subsea orientation equipment system, allowing it to install and retrieve subsea trees and modules, including subsea structures and manifolds.

    View Aker press release

  • Wentworth Inks Mnazi Bay, Msimbati Fields Gas Supply Deals

    Wentworth Resources has signed a gas supply agreement with the Government owned and operated Mtwara to Dar es Salaam pipeline and Madimba central processing facility. The agreement covers the long-term sale of natural gas from the Mnazi Bay and Msimbati fields in southern Tanzania to the processing facility....

    Wentworth Inks Mnazi Bay, Msimbati Fields Gas Supply Deals
    Others

    Wentworth Resources has signed a gas supply agreement with the Government owned and operated Mtwara to Dar es Salaam pipeline and Madimba central processing facility. The agreement covers the long-term sale of natural gas from the Mnazi Bay and Msimbati fields in southern Tanzania to the processing facility. The facility is currently under construction and scheduled for completion and commissioning in Q1-2015.

    The processing facility will be supplied up to a maximum 80 MMcf/d of natural gas during the first eight months with an option to increase over time to a maximum 130 MMcf/d for up to a 17-year supply period. The initial delivery is expected to begin during the period 22-Jan-2015 and 22-Apr-2015 and be at a fixed price of $3.07/Mcf, escalating with United States CPI Industrial index. The gas will be sold and purchased at the inlet to a 16” pipeline connecting the Mnazi Bay gas production facility to the Madimba central processing facility.

    With a long-term contract in place, Wentworth and partners will use the time before the commencement of first gas delivery to finalize the design, construct, and commission the necessary surface infrastructure, including separation facilities and flow lines, to tie existing wells into the processing facility.

    View Wentworth press release

    Ownership of Mnazi Bay & Msimbati Fields: Maurel et Prom (48.06%, operator), Wentworth (31.94%) and Tanzania Petroleum Development Corporation (20%).

  • Data analysis Sinopec to Sell $17.5 Billion Stake in Fuel Retail Unit

    Sinopec unveiled a plan to sell a CNY 107.1 billion (US$17.5 billion) stake in its retail business, marking the country's biggest privatization push since President Xi Jinping came to power almost two years ago. Its retail unit will issue new shares to a group of 25 financial companies like insurers and...

    Sinopec to Sell $17.5 Billion Stake in Fuel Retail UnitData analysis
    Global Deals, Headlines

    Sinopec unveiled a plan to sell a CNY 107.1 billion (US$17.5 billion) stake in its retail business, marking the country's biggest privatization push since President Xi Jinping came to power almost two years ago. Its retail unit will issue new shares to a group of 25 financial companies like insurers and funds. The investors will get a combined 29.99% stake in the unit, which comprises a wholesale business, more than 30,000 petrol stations, over 23,000 convenience stores, as well as oil-product pipelines and storage facilities. Each investor would not hold a stake exceeding 2.8%.

    Leading investors on the deal consists of Harvest Fund Management, which will pay CNY 15 billion for a joint stake with its subsidiary Harvest Capital Management. China Life Insurance and a consortium including People's Insurance Group of China and Tencent Holdings are each taking CNY 10 billion stakes. Other investors include Fosun International, ENN Energy Holdings, Haier Electronics Group and RRJ Capital.

    The company will use the proceeds from the sale to optimize its fuel retail business, boost non-fuel sales and pay down debts owed to parent company.

    Source: Reuters

  • Senex Spins Bit at Hathi-1 Well in Cooper BasinData analysis
    Exploration

    Planet Gas announced that Senex Energy has spudded the Hathi-1 exploration well located in PEL 514 in the South Australian Cooper Basin. The well will be drilled to a total depth of 2,530m and will test the oil potential of the Tichoo Formation with the Poolowanna and Birkhead formations and the Hutton Sandstone as secondary targets. 

    The Hathi prospect has been mapped as a four-way closure at multiple horizons using data from the recently recorded Dundunna 3D seismic survey.

    Once the Hathi-1 well is completed, the company will drill the Bagheera East-1 well located in the same license. It will be drilled to a total depth of 2,510m to test the similar targets as stipulated for the Hathi-1 well.

    Ownership of PEL 514: Senex Energy (80%, operator) and Planet Gas (20%).

    View Planet Gas press release

     

  • Highlights of the Week Ending 13-Sep-2014

    Global DealsThe week saw a few big deals in Europe and the US. Statoil trimmedits NCS portfolio with a $1.3 billion sale of stakes in certain assets to Wintershall. The assets include the Aasta Hansteen and Asterix fields and the Polarled pipeline.Meanwhile, Encana has divestedits stake in PrairieSky...

    Highlights of the Week Ending 13-Sep-2014
    Exploration, Projects & Capex, Global Deals, Headlines

    Global Deals

    The week saw a few big deals in Europe and the US. Statoil trimmed its NCS portfolio with a $1.3 billion sale of stakes in certain assets to Wintershall. The assets include the Aasta Hansteen and Asterix fields and the Polarled pipeline.

    Meanwhile, Encana has divested its stake in PrairieSky Royalty to a syndicate of underwriters for approximately $2.6 billion.

    Down under, Senex Energy swapped Surat Basin Gas assets with a JV comprising of QGC, Tokyo Gas and CNOOC.

    Exploration

    A tepid week on the exploration front. Statoil was disappointed when the Ensis wildcat in Barents Sea came up dry. Fellow Norwegian producer Det Norske revealed a duster at the Kvitvola Prospect in PL553, in the Norwegian North Sea. Roc Oil drilled a duster at the Block 09/05 wildcat in Bohai Bay.

    Meanwhile, Kuwait Energy tasted success with an oil discovery at the Faihaa-1 well in Block 9, southern Iraq.

    Projects & Capex

    An active week for project start-ups. Shell announced the start-up of its deep-water Cardamom development in the Gulf of Mexico. The development is in the Garden Banks Block 427, about 360 km south-west of New Orleans.

    Statoil revealed the start-up of Fram H-North and Svalin C fields in the North Sea. Fram H-North contains recoverable reserves of about 10 MMBOE while Svalin C contains recoverable reserves of about 30 MMBOE. Arrow Energy announced that it will proceed with the FEED for its proposed Bowen Gas Project in central Queensland, Australia.

    The DOE has given a non-FTA export approval to the Cameron LNG project. The project is slated to come up in Louisiana with three trains and a 1.7 Bcf/d export capacity.

    The week ended with Pemex announcing that it will spend $5.5 billion on plant upgrades and expanding the Los Ramones pipeline.

  • Pemex to Spend $5.5 Billion on Plant Upgrades, Pipeline

    Pemex said that it will invest nearly $5.5 billion in expanding the country's largest natural gas pipeline, building a fertilizer plant and boosting output of cleaner-burning gasoline and diesel.The company would spend $2.5 billion on the second phase of the Los Ramones pipeline, which will eventually run...

    Pemex to Spend $5.5 Billion on Plant Upgrades, Pipeline
    Headlines

    Pemex said that it will invest nearly $5.5 billion in expanding the country's largest natural gas pipeline, building a fertilizer plant and boosting output of cleaner-burning gasoline and diesel.

    The company would spend $2.5 billion on the second phase of the Los Ramones pipeline, which will eventually run from the US-Mexico border to central Mexico. It will also invest $2.8 billion on upgrading five of its six refineries to process cleaner fuel, as well as $184 million on a fertilizer plant.

    Source: Reuters

  • Mitsubishi Buys Ivory Coast Oilfield Stake from AnadarkoData analysis
    Others

    Mitsubishi Corporation has agreed to acquire a 20% ownership interest in Block CI-103 from Anadarko Petroleum Corporation. Block CI-103, which is located off the coast of Côte d’Ivoire, is currently in appraisal.

    Block CI-103 is located about 50 km off the coast of Côte d’Ivoire, in a water depth of 2,000m. Tullow has received approval to proceed with appraisal operations, having confirmed oil and gas deposits at an exploratory well they drilled in 2012. Further evaluation works for deposits, including conducting shallow hazard surveys and drilling additional appraisal wells, while the parties work towards reaching a final investment decision.

    Post-transaction ownership of Block CI-103: Tullow (30%, operator), Anadarko (35%), Mitsubishi (20%) and Petroci (15%).

    View Mitsubishi press release

  • Statoil Trims NCS Portfolio for $1.3 BillionData analysis
    Global Deals, Headlines

    Statoil has farmed down its interest in Aasta Hansteen, Asterix fields and Polarled pipeline and divested two assets on the Norwegian Continental Shelf (NCS) to Wintershall, for $1.3 billion. The transaction consists of a cash consideration of $1.25 billion and a $50 million consideration contingent on Aasta Hansteen milestones.

    Statoil has farmed down a 24% stake in its Aasta Hansteen Field development project, a 19% stake in the Asterix Field and a 13.2% stake in the Polarled pipeline. The transaction also includes a farm-down of a 10% stake in each of the four exploration licenses (528, 528 B, 602 and 603) located in the Vøring area. In addition, Statoil has exited the non-core Vega and Gjøa fields. The shares in the assets comprise reserves and resources of around 170 MMBOE.

    The company will invest around $20 billion annually in the period 2014-16. This includes NCS project Gudrun which started up Apr-2014, while Valemon will come on stream towards the end of year. In addition, projects like Aasta Hansteen and Gina Krogh are in the execution phase, while Johan Sverdrup and Johan Castberg are under planning. The exploration activity remains high with 50 exploration wells planned globally for 2014.

    View Statoil press release

    View Wintershall press release

    Post transaction ownership of Aasta Hansteen: Statoil (51%, operator), Wintershall (24%), OMV (15%) and ConocoPhillips (10%).

    Post transaction ownership of Asterix: Statoil (51%, operator), Petoro (20%), Wintershall (19%) and Shell (10%).

    Post transaction ownership of Exploration License 528 & 528 B: Centrica (40%, operator), Statoil (25%), Atlantic Petroleum (15%), Wintershall (10%) and Rocksource Exploration (10%).

    Post transaction ownership of Exploration License 602: Statoil (30%, operator), Centrica (20%), Petoro (20%), Wintershall (10%), Ithaca Petroleum (10%) and Rocksource Exploration (10%).

    Post transaction ownership of Exploration License 603: Statoil (25%, operator), ConocoPhillips (25%), Suncor Energy (25%), Centrica (15%) and Wintershall (10%).

  • BP Signs LNG Supply Deal with TEPCO

    BP has inked an agreement with Tokyo Electric Power Company (TEPCO) to supply up to 1.2 MMTPA of LNG over a period of 17 years starting in Apr-2017.TEPCO has reviewed multiple supply sources, including those of US origin, in its strategy towards the annual purchase of approximately 10 MMT of LNG. With this...

    BP Signs LNG Supply Deal with TEPCO
    Others

    BP has inked an agreement with Tokyo Electric Power Company (TEPCO) to supply up to 1.2 MMTPA of LNG over a period of 17 years starting in Apr-2017.

    TEPCO has reviewed multiple supply sources, including those of US origin, in its strategy towards the annual purchase of approximately 10 MMT of LNG. With this agreement concluded with BP, a total of approximately 2 MMTPA of LNG will be secured.

    View TEPCO press release

  • Data analysis Canacol Inks Gas Supply Deal with Colombian Utility

    Canacol Energy has signed a gas sales contract for the sale of 30 MMcf/d commencing for a five-year period in Dec-2015 to an electrical generation company located on the Caribbean coast of Colombia.Under the terms of the sales contract, Canacol will receive a sales price of $8/Mcf escalated at approximately...

    Canacol Inks Gas Supply Deal with Colombian UtilityData analysis
    Others

    Canacol Energy has signed a gas sales contract for the sale of 30 MMcf/d commencing for a five-year period in Dec-2015 to an electrical generation company located on the Caribbean coast of Colombia.

    Under the terms of the sales contract, Canacol will receive a sales price of $8/Mcf escalated at approximately 3% per year during the term of the contract. Gas to supply the contract will be provided by the existing Nelson gas field and the newly discovered Palmer gas field, and will include the drilling of five additional appraisal and development wells within these two fields.

    View Canacol press release

  • Linde Lands Engineering Contract for Woodfibre LNG, Canada

    The Linde Group has been awarded a contract to provide engineering and procurement services for Canada’s Woodfibre LNG project.The project is a proposed natural gas liquefaction and export facility located about 7 km south-west of Squamish, British Columbia, and is licensed to export approximately 2.1...

    Linde Lands Engineering Contract for Woodfibre LNG, Canada
    Others

    The Linde Group has been awarded a contract to provide engineering and procurement services for Canada’s Woodfibre LNG project.

    The project is a proposed natural gas liquefaction and export facility located about 7 km south-west of Squamish, British Columbia, and is licensed to export approximately 2.1 MMTPA of LNG for a period of 25 years. Based on the current project schedule, the project will begin construction in 2015 and will be operational by 2017.

    The Woodfibre LNG project is owned by Woodfibre LNG Limited (formerly Woodfibre Natural Gas Limited), a privately held Canadian company with headquarters in Vancouver, British Columbia.

    View Linde press release

    View Woodfibre LNG’s operations webpage

  • Senex Cheers Namur Oil Discovery on Western FlankData analysis
    Exploration

    Senex Energy has encountered a Namur oil accumulation in the Martlet-1 exploration well located in PEL 104 on the western flank of the South Australian Cooper-Eromanga Basin. The well was drilled to a total depth of 2,096m.

    Martlet-1 encountered good oil shows in the target reservoir and subsequent evaluation of logs indicate net pay of up to 6m. It was designed to evaluate the oil potential of the Namur sandstone within an interpreted four-way dip-closed structure. The well is currently being cased and suspended and is expected to be placed on production in the next quarter.

    Senex also announced that it drilled a duster at Squire-1 well located in PRL 59 in the same area. The well was drilled to evaluate the oil potential of the Tinchoo Formation, with secondary targets in the Birkhead Formation and Wimma Sandstone. It encountered oil shows within a poorly developed reservoir and was subsequently plugged and abandoned. Senex is the sole owner and operator of this license.

    Ownership of PEL 104: Senex (60%, operator) and Beach Energy (40%).

    View Senex press release

  • CNOOC Offers 33 Blocks in New Licensing Round
    Others

    CNOOC has issued a tender inviting foreign firms to bid for oil and gas blocks in offshore areas including the South and East China Sea. CNOOC will offer 33 offshore blocks for foreign participation this year.

    The blocks cover a cumulative area of 126,108 sq km.

    View CNOOC press release

  • Linc Gets Nod for Wyoming UCG Project

    Linc Energy has received an approval to proceed with its underground coal gasification (UCG) project located in Wyoming's Powder River Basin. This project marks as the first UCG project approved in the US in 20 years.Linc CEO Peter Bond noted: “The issuance of this UCG R&D license is a...

    Linc Gets Nod for Wyoming UCG Project
    Projects & Capex

    Linc Energy has received an approval to proceed with its underground coal gasification (UCG) project located in Wyoming's Powder River Basin. This project marks as the first UCG project approved in the US in 20 years.

    Linc CEO Peter Bond noted: “The issuance of this UCG R&D license is a major milestone for the company, and validates Linc Energy's commitment and ability to responsibly deploy its world leading UCG technology in one of the richest coal resource sites in the world.”

    View Linc press release

  • SOCAR Issues Tender for Two Caspian Sea Gas Deposits

    SOCAR has issued a tender for the joint exploration of the Umid and Babek gas deposits in the Caspian Sea with total preliminary reserves of about 600 Bcm.The company is facing some technical problems in the production process at the fields, a source at SOCAR said.Source: Reuters

    SOCAR Issues Tender for Two Caspian Sea Gas Deposits
    Projects & Capex

    SOCAR has issued a tender for the joint exploration of the Umid and Babek gas deposits in the Caspian Sea with total preliminary reserves of about 600 Bcm.

    The company is facing some technical problems in the production process at the fields, a source at SOCAR said.

    Source: Reuters

  • Kuwait Energy Hits Oil at Faihaa-1 Well, IraqData analysis
    Exploration

    Dragon Oil announced that Kuwait Energy has hit pay at the Faihaa-1 exploration well in Block 9, Iraq. The well flowed oil from the Mishrif Formation at a rate of 2 Mbbl/d during testing. More tests will follow later in the year but first drilling will resume in order to explore deeper horizons in the well.

    Dragon Oil CEO Dr Abdul Jaleel Al Khalifa commented: "This represents the first significant success in Dragon Oil's exploration portfolio. Drilling continues towards the second target, which will be tested later this year, and we look forward to a full evaluation of the discovery and the drawing up of a block appraisal plan by the consortium."

    Ownership of Faihaa-1: Kuwait Energy (70%, operator) and Dragon Oil (30%).

    View Dragon Oil press release

    View Dragon Oil operations webpage

  • Statoil Comes Up Dry at Ensis Wildcat in Barents SeaData analysis
    Exploration

    The Norwegian Petroleum Directorate (NPD) announced that Statoil has come up dry at the Ensis wildcat (7125/4-3), located in the Barents Sea's PL393B. It was drilled to a vertical depth of 993m in a water depth of 294m and was terminated in the Hekkingen Formation in the Late Jurassic. The well has been permanently plugged and abandoned.

    The exploration target for the well was to prove petroleum in Early Cretaceous reservoir rocks (intra-Knurr Formation). Well 7125/4-3 encountered approximately 35m thick reservoir rocks but with poor reservoir quality.

    PL393B ownership: Statoil (50%, operator), Petoro (20%), Concedo (20%) and OMV (10%).

    View NPD press release

  • Technip Nets Subsea Contract for Kodiak Project in GoM

    Technip has been awarded a subsea contract for the development of the Kodiak Field, located in Mississippi Canyon Blocks 727 and 771 in the Gulf of Mexico, by Deep Gulf Energy II LLC. The field is situated in water depths ranging from 1,472m to 1,710m.The project consists of a subsea tie-back to the Devils...

    Technip Nets Subsea Contract for Kodiak Project in GoM
    Others

    Technip has been awarded a subsea contract for the development of the Kodiak Field, located in Mississippi Canyon Blocks 727 and 771 in the Gulf of Mexico, by Deep Gulf Energy II LLC. The field is situated in water depths ranging from 1,472m to 1,710m.

    The project consists of a subsea tie-back to the Devils Tower Truss Spar located in Mississippi Canyon Block 773. To withstand the field’s high temperature and pressure as well as extremely corrosive production fluids, the pipeline will be of a bi-metallic construction, lined with corrosion resistant alloy. The offshore installation is expected to be performed in H2-2015.

    View Technip press release

  • Data analysis Brazil Says Oil Output to More Than Double by 2023

    Brazil plans to more than double its oil and gas production to 5 MMbbl/d by 2023 from the current rate of nearly 2 MMbbl/d, with the bulk of investments over the next ten years going to exploration and production. According to a new ten-year plan from the government's energy research company, EPE, Brazil...

    Brazil Says Oil Output to More Than Double by 2023Data analysis
    Headlines

    Brazil plans to more than double its oil and gas production to 5 MMbbl/d by 2023 from the current rate of nearly 2 MMbbl/d, with the bulk of investments over the next ten years going to exploration and production. According to a new ten-year plan from the government's energy research company, EPE, Brazil will receive investments of BRL 1.26 trillion (US$550 billion), of which 62% will go to upstream development in oil and gas.

    Although Brazil has made some progress in bringing on new oil production from its massive sub-salt reserves discovered over the past decade, according to Reuters it is unlikely to live up to these projections.

    Source: Reuters

  • CNOOC Spins Bit at Beibu Gulf BlockData analysis
    Exploration

    Roc Oil announced that CNOOC has commenced drilling at the first of two exploration wells to be drilled in the Beibu Gulf Block 22/12 located in the South China Sea. The well will be drilled to a total depth of 1,539m in a water depth of approximately 35m.

    The WZ12-10-1 well is targeting the T42 and Weizhou West formations and is adjacent to the WZ12-8 East Field of the WZ12-8 development area. Concurrently, the development area has been expanded to fully include the prospect, adding approximately 8.8 sq km area.

    CNOOC CEO Alan Linn said: “this exploration program in Beibu is following on from the successful exploration and development programs of WZ6-12 and 12-8W fields in 2012/13. It is targeting incremental volumes to the 12-8W project and the future 12-8E project and will also provide an expansion of the existing development acreage from 57.8 sq km to 66.6 sq km allowing further future exploration and development activities.”

    Beibu Gulf Development Project ownership: CNOOC (51%, operator), Horizon Oil (27%), Roc Oil (20%) and Oil Australia (2%).

    View Roc Oil press release

  • US, EU Ready New Sanctions to Stop Exploration in Russia
    Headlines

    The United States and European Union plan to stop oil exploration in Russia. The planned sanctions over Russia's aggression toward Ukraine would ban US and European companies from cooperating with Russia on searching its Arctic territory, deep seas or shale formations for crude, said two US officials who spoke on condition of anonymity because the measures have not been made public.

    The measures, which one of the sources said represented "preliminary thinking," would expand sanctions the Obama administration announced in Jul-2014 and ban US and EU cooperation on all energy services and technology in the unconventional oil fields. The previous sanctions only banned some technology at those locations.

    Source: Reuters

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

  • GE to Help Expedite Freeport LNG Construction

    GE Oil & Gas has been selected to provide technology and capital to help expedite construction of the Freeport LNG gas liquefaction and LNG export project in south-east Texas. GE is supplying the main refrigeration compressors, variable-speed drive electric motors and other electrical equipment for two...

    GE to Help Expedite Freeport LNG Construction
    Projects & Capex

    GE Oil & Gas has been selected to provide technology and capital to help expedite construction of the Freeport LNG gas liquefaction and LNG export project in south-east Texas. GE is supplying the main refrigeration compressors, variable-speed drive electric motors and other electrical equipment for two customized LNG liquefaction trains, each of which will produce a base volume of 4.4 MTPA of LNG. In addition, GE is also providing financing to support the project through pre-construction engineering and design.

    The refrigeration trains will be built and packaged in Florence, Italy and tested in Massa, Italy. They are due to be delivered in Texas in 2016 and will be fully operational by 2017.

    View GE press release