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  • EDP, Cheniere Sign 20-Year LNG Deal for Corpus Christi

    Cheniere Energy signed a sale and purchase agreement with EDP Energias de Portugal under which EDP will purchase approximately 0.77 MMTPA of LNG upon commencement of operations of Train 3 of the Corpus Christi Liquefaction Project in Texas.The Corpus Christi Liquefaction Project is being designed and...

    EDP, Cheniere Sign 20-Year LNG Deal for Corpus Christi
    Headlines, Others

    Cheniere Energy signed a sale and purchase agreement with EDP Energias de Portugal under which EDP will purchase approximately 0.77 MMTPA of LNG upon commencement of operations of Train 3 of the Corpus Christi Liquefaction Project in Texas.

    The Corpus Christi Liquefaction Project is being designed and permitted for up to three trains, with aggregate design production capacity of approximately 13.5 MMTPA of LNG. Cheniere has confirmed that about 8.42 MMTPA of the LNG capacity has now been contracted.

    View Cheniere Energy press release

  • Data analysis Pacific Rubiales Sells Colombian Pipeline Stake

    Pacific Rubiales announced a sale of its 43% stake in the Pacific Midstream pipeline and power transmission assets to International Finance Corporation for a consideration of $320 million.The agreements will provide the company with $240 million in cash, which will be received by end-2014. In addition, the...

    Pacific Rubiales Sells Colombian Pipeline StakeData analysis
    Headlines, Global Deals, Others

    Pacific Rubiales announced a sale of its 43% stake in the Pacific Midstream pipeline and power transmission assets to International Finance Corporation for a consideration of $320 million.

    The agreements will provide the company with $240 million in cash, which will be received by end-2014. In addition, the company will receive $80 million in Q1-2015, plus a commitment for an additional $60 million in cash to develop future infrastructure projects.

    View Pacific Rubiales press release

  • Statoil Submits Rutil Oilfield Development Plan

    Statoil submitted its development plan for the Rutil discovery in the Gullfaks Rimfaks Valley in the North Sea. The investment costs of the Gullfaks Rimfaks valley development are estimated at NOK 4.6 billion (US$621 million). Production is forecast to commence in Q1-2017.The project will consist of a...

    Statoil Submits Rutil Oilfield Development Plan
    Headlines, Projects & Capex

    Statoil submitted its development plan for the Rutil discovery in the Gullfaks Rimfaks Valley in the North Sea. The investment costs of the Gullfaks Rimfaks valley development are estimated at NOK 4.6 billion (US$621 million). Production is forecast to commence in Q1-2017.

    The project will consist of a standard subsea template with two simple gas production wells, and possibilities of connecting two more wells. The well stream will be connected to the existing pipeline to the Gullfaks A platform. The field will have a plateau production of 31 MBOE/d and has total reserves of 80 MMBOE of gas and condensate.

    Gas and condensate will be transported in existing pipeline for processing in the gas processing facility at Kårstø north of Stavanger. The processed gas is transported to markets on the European continent.

    Ownership of Rutil oilfield: Statoil (51%, operator), Petoro (30%) and OMV (19%).

    View Statoil press release

  • Dominion Buys Caroline Gas Transmission Unit from SCANA

    Dominion Resources has signed an agreement to sell Caroline Gas Transmission (CGT) unit from SCANA Corporation for $493 million. CGT owns and operates nearly 1,500 miles of FERC-regulated interstate natural gas pipeline in South Carolina and south-eastern Georgia. The company plans to close on the acquisition...

    Dominion Buys Caroline Gas Transmission Unit from SCANA
    Global Deals, Others

    Dominion Resources has signed an agreement to sell Caroline Gas Transmission (CGT) unit from SCANA Corporation for $493 million. CGT owns and operates nearly 1,500 miles of FERC-regulated interstate natural gas pipeline in South Carolina and south-eastern Georgia. The company plans to close on the acquisition in Jan-2015.

    View Dominion Resources press release

  • Repsol to Acquire Talisman for $8.3 BillionData analysis
    Headlines, Global Deals

    Repsol has agreed to acquire Talisman Energy for $8.3 billion and assume $4.7 billion of Talisman’s debt. The acquisition will allow Repsol to raise its output by 76% to 680 MBOE/d and will boost reserves by 55% to more than 2.3 BBOE.

    Repsol will offer $8/share for Talisman, a 24% premium over the average share price of the last three months. Post-transaction, the weightage of North America in the combined company will rise to almost 50% of the capital employed while Latin America will represent 22%.

    View Repsol press release

  • Woodside Delays FEED for Browse FLNG
    Headlines, Projects & Capex

    Woodside has delayed FEED on the Browse FLNG project, stating that a substantial shift in market conditions presents an opportunity to seek significantly lower costs.

    Peter Coleman, Woodside CEO, said: “The changes we are experiencing in our industry are starting to flow through our supply chain. We will use the time we now have to maximise long-term economic benefits for the development.”

    The company anticipates that Browse will be in a position to enter the FEED phase in mid-2015 and is targeting an FID in mid-2016.

    View Woodside press release

    View Woodside Browse FLNG webpage

  • Data analysis Apache Sells Wheatstone, Kitimat LNG Stakes to Woodside

    Apache Corporation announced the sale of its interest in the Wheatstone and Kitimat LNG projects, along with accompanying upstream oil and gas reserves, to Woodside Petroleum for $3.75 billion. The figure includes approximately $1 billion of net expenditure on the two projects incurred by Apache.Apache will...

    Apache Sells Wheatstone, Kitimat LNG Stakes to WoodsideData analysis
    Headlines, Global Deals, Others

    Apache Corporation announced the sale of its interest in the Wheatstone and Kitimat LNG projects, along with accompanying upstream oil and gas reserves, to Woodside Petroleum for $3.75 billion. The figure includes approximately $1 billion of net expenditure on the two projects incurred by Apache.

    Apache will sell its 13% stake in Wheatstone LNG and a 65% stake in WA-49-L block which includes the Julimar/Brunello offshore gas fields and the Balnaves oil development. Apache will also sell a 50% interest in the Kitimat LNG project and related upstream acreage in the Horn River and Liard natural gas basins in British Columbia, Canada.

    View Apache press release

  • Libya Declares Force Majeure for Two Easter Ports

    Libya has declared a force majeure for two of its biggest oil ports – Es Sider and Ras Lanuf. Oil production flowing to the two eastern ports would be gradually shut down, the state-owned National Oil Corp said in a statement, blaming clashes nearby between armed factions allied to Libya's two rival...

    Libya Declares Force Majeure for Two Easter Ports
    Headlines, Projects & Capex

    Libya has declared a force majeure for two of its biggest oil ports – Es Sider and Ras Lanuf. Oil production flowing to the two eastern ports would be gradually shut down, the state-owned National Oil Corp said in a statement, blaming clashes nearby between armed factions allied to Libya's two rival governments. Only a minimum oil staff would stay on site.

    Source: Reuters

  • Technip Rules Out Bidding for CGG

    Technip has stated that it will not file a tender offer for CGG after talks between the two companies failed.View Technip press release

    Technip Rules Out Bidding for CGG
    Global Deals, Others

    Technip has stated that it will not file a tender offer for CGG after talks between the two companies failed.

    View Technip press release

  • Highlights of the Week Ending 13-Dec-2014

    Global DealsThe market is abuzz with rumors that Repsol is going to bid$6-8 billion for Talisman. Rumours are also swirling that Shell will sellits stake in the Tongyi oil lubricants JV in China for $350-500 million.BG soldits Australian pipeline network to the APA Group for $5 billion. EOG Resources...

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

    Global Deals

    The market is abuzz with rumors that Repsol is going to bid $6-8 billion for Talisman. Rumours are also swirling that Shell will sell its stake in the Tongyi oil lubricants JV in China for $350-500 million.

    BG sold its Australian pipeline network to the APA Group for $5 billion. EOG Resources divested all of its Manitoba and certain Alberta assets for $410 million in two separate transactions.

    Meanwhile, Eni deferred its plans to divest its stake in Saipem due to ‘increasingly volatile’ conditions.

    Exploration

    Mexico announced rules for its planned historic opening in 2015 of the oil and gas sector to outsiders. CNH, the Mexican energy regulator, announced that 14 shallow-water blocks will be on offer and production from these blocks will cost about $20/bbl. First contracts are expected to be offered by Jul-2015.

    Origin Energy confirmed a new gas discovery off the Australian state of Victoria in the Otway Basin.

    Projects and Capex

    BP announced that it expects 900 MBOE/d of new production by 2020. The company added that 15 projects are on track for start-up in 2015-2017. The company also announced that Husky has commenced operations at the Sunrise Oil Sands project in Alberta.

    The falling price of oil has started taking its toll with a host of industry players slashing their 2015 capex plans. ConocoPhillips cut its planned 2015 capex by 20% to $13.5 billion while Santos declared a 25% YoY cut in 2015 capex to $2 billion. Meanwhile, BP announced that it will take a $1 billion hit on its ongoing restructuring program.

    BG commenced production at the Starfish field off Trinidad and Tobago while Eni achieved first oil at the West Hub Development off Angola. 

  • Repsol Finalizing Bid for Talisman
    Headlines, Global Deals

    Reuters reports that Repsol is finalizing a bid for Talisman and has sent executives to Calgary to step up talks, quoting an unnamed source.

    The source said that "Repsol executives are in Canada but no offer has yet been made," adding the executives were from the corporate and legal departments. The potential bid could be in the range of $6 billion to $8 billion, according to Financial Times.

    Source: Reuters

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

  • Husky Commences Operations at Sunrise Oil Sands Project

    Husky Energy announced the start of operations at the Sunrise Phase 1 in-situ oil sands project in north-east Alberta, Canada. The Phase 1 of the project has a gross capacity of 60 Mbbl/d and is being developed with two processing plants.The first 30 Mbbl/d plant is expected to begin production towards the...

    Husky Commences Operations at Sunrise Oil Sands Project
    Headlines, Projects & Capex

    Husky Energy announced the start of operations at the Sunrise Phase 1 in-situ oil sands project in north-east Alberta, Canada. The Phase 1 of the project has a gross capacity of 60 Mbbl/d and is being developed with two processing plants.

    The first 30 Mbbl/d plant is expected to begin production towards the end of Q1-2015. The second 30 Mbbl/d plant is expected to begin steaming mid-2015, with production commencing a few months later. Production is expected to ramp up to full capacity over a two-year period. A second 70 Mbbl/d phase is in design stage, while the third phase is in early appraisal.

    Sunrise contains estimated reserves of 3.7 Bbl (0.44 Bbl proved, 2.4 Bbl probable, and 0.86 Bbl possible) as of 31-Dec-2014.

    Ownership of Sunrise: Husky (50%, operator) and BP (50%).

    View Husky press release

    View BP press release

  • Data analysis Alta Mesa in $210 Million Eagle Ford Sale to ReOil Eagle 1

    Alta Mesa Holdings has sold certain Eagle Ford assets to ReOil Eagle 1 LLC for a total potential price of $210 million. Alta Mesa will initially be paid $175 million, with an additional $25 million to be paid contingent upon the drilling of ten upper Eagle Ford Shale wells, and $10 million if the Calendar...

    Alta Mesa in $210 Million Eagle Ford Sale to ReOil Eagle 1Data analysis
    Headlines, Global Deals

    Alta Mesa Holdings has sold certain Eagle Ford assets to ReOil Eagle 1 LLC for a total potential price of $210 million. Alta Mesa will initially be paid $175 million, with an additional $25 million to be paid contingent upon the drilling of ten upper Eagle Ford Shale wells, and $10 million if the Calendar Year 2016 NYMEX strip closes above $80/Bbl for two consecutive months in 2015.

    The properties are non-operated, are primarily located in Karnes County and consist of all of the remaining interests that Alta Mesa has in this area.

    View Alta Mesa press release

  • Mexico Sets Rules for 2015 Oil Bids

    Mexico revealed that it would cap the number of shallow water projects companies can bid for as it sets out initial contracts for the historic opening of its oil and gas industry. However, it did not reveal the share the government will take. The government added that companies or consortia will be limited to...

    Mexico Sets Rules for 2015 Oil Bids
    Headlines

    Mexico revealed that it would cap the number of shallow water projects companies can bid for as it sets out initial contracts for the historic opening of its oil and gas industry. However, it did not reveal the share the government will take. The government added that companies or consortia will be limited to bidding on up to five shallow-water areas, and will have to show a track record in offshore projects. No company can join more than one consortium in the first round.

    The contracts are for 14 shallow-water blocks, which the government estimates will cost $20/Bbl on an average to produce. Nine-tenths of the formula used to award the 25-year contracts will depend on the share of operating profits a company offers the government, with the rest dictated by how much investment a company pledges. The companies can recover up to 60% of their production costs provided they make a commercial discovery.

    Source: Reuters

  • Tag Oil Wins Two Taranaki Basin Exploration Permits
    Exploration, Others

    Tag Oil has been granted two new onshore Taranaki Basin permits in New Zealand. The permits are Petroleum Exploration Permit 57065 (Sidewinder North) and Petroleum Exploration Permit 57063 (Waiiti). The permits will add 36,781 acres to the company’s Taranaki Basin exploration portfolio.

    The Sidewinder North acreage (14,726 acres) borders and likely extends TAG's known Sidewinder oil and gas discovery play area as the permit contains the SuppleJack-1 oil and gas discovery made by TAG in 2006.

    The company said that the Waiiti permit (22,055 acres), situated in the northern area of the Taranaki Basin, offers it an opportunity to explore for both shallow Miocene oil and deep Eocene condensate-rich gas. Waiiti is in close proximity to the successful Pohokura (offshore) and Mangahewa (onshore) producing fields directly to the west of TAG's new acreage.

    View Tag Oil press release

  • Eni Defers Saipem Stake Sale

    Eni has put on hold the sale of its stake in Saipem, blaming ‘increasingly volatile’ market conditions. The decision follows its previous announcement in Jul-2014 to streamline the company structure and increase focus on the oil and gas business.View Eni press release

    Eni Defers Saipem Stake Sale
    Global Deals, Others

    Eni has put on hold the sale of its stake in Saipem, blaming ‘increasingly volatile’ market conditions. The decision follows its previous announcement in Jul-2014 to streamline the company structure and increase focus on the oil and gas business.

    View Eni press release

  • Shell Mulls Stake Sale in Chinese Lubricants JV
    Global Deals, Others

    The Wall Street Journal reports that Shell is looking to sell is stake in the Tongyi oil lubricants JV in China, quoting people familiar with the situation. Bids are expected to come in between $350 million and $500 million.

    View original article

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

  • BP Expects 900 MBOE/d of New Production by 2020
    Headlines, Projects & Capex

    BP revealed that 900 MBOE/d of new net production is expected by 2020 from its global project portfolio. About half of the projects are under construction. The company said that 15 projects are on track for start-up in 2015-2017.

    Some of the main projects coming online in 2015 include Kizomba Satellites 2 in Angola, In Salah Southern Fields in Algeria and Western Flank A in Australia.

    View BP Dec-2014 Upstream presentation

  • Keller Group Wins $177 Million Caspian Contract

    UK-based ground engineering specialist Keller Group announced that it has won a $177 million contract to supply and install precast piles in the Caspian region. The company added that mobilisation will start immediately and initial phase of work, valued at $25 million, is scheduled to be completed in...

    Keller Group Wins $177 Million Caspian Contract
    Others

    UK-based ground engineering specialist Keller Group announced that it has won a $177 million contract to supply and install precast piles in the Caspian region. The company added that mobilisation will start immediately and initial phase of work, valued at $25 million, is scheduled to be completed in H1-2015.

    View Keller Group press release

  • Santos Slashes 2015 Capex 25%
    Headlines, Exploration

    Santos announced a 25% YoY cut in projected capex spending planned for 2015. The company now estimates capex to be $2 billion, compared to previous guidance of $2.7 billion. The company plans to spend $1.6 billion on ‘growth’ projects including $700 million on GLNG and $250 million on exploration. Approximately $600 million is allocated to other projects including the Cooper gas, oil and plant.

    The company maintained its production guidance at 57-64 MMBOE.

    David Know, Santos MD and CEO, said: “The PNG LNG project is producing at full capacity. The GLNG project is 90% complete and remains on track for first LNG in the second half of 2015.  First commissioning gas is expected to be introduced to the LNG plant before the end of 2014. Offtake agreements are in place with large, well-capitalised buyers.”

    View Santos press release

  • BP Awards $750 Million EPC Contract to Wood Group

    BP awarded a $750 million contract to Wood Group PSN (WGPSN) for delivering EPC services to six UKCS offshore upstream assets and the Forties Pipeline System onshore midstream facilities in Grangemouth. The contract is WGPSN’s largest award in 2014 and includes options for two, one-year extensions.View...

    BP Awards $750 Million EPC Contract to Wood Group
    Others

    BP awarded a $750 million contract to Wood Group PSN (WGPSN) for delivering EPC services to six UKCS offshore upstream assets and the Forties Pipeline System onshore midstream facilities in Grangemouth. The contract is WGPSN’s largest award in 2014 and includes options for two, one-year extensions.

    View Wood Group press release

  • Origin Confirms New Gas Discovery Off Victoria

    Origin Energy has confirmed that its Speculant-1 exploration well discovered potentially commercial quantities of gas in the Waarre Formation in the Otway Basin, offshore Victoria in the company-operated permit VIC/L1(v). The Speculant discovery is a tilted fault block structure covering over 7 sq km in a...

    Origin Confirms New Gas Discovery Off Victoria
    Exploration

    Origin Energy has confirmed that its Speculant-1 exploration well discovered potentially commercial quantities of gas in the Waarre Formation in the Otway Basin, offshore Victoria in the company-operated permit VIC/L1(v). The Speculant discovery is a tilted fault block structure covering over 7 sq km in a nearshore section off the Otway coast, and sits immediately north of the Halladale and Black Watch fields previously discovered by Origin in 2006.

    Logging While Drilling (LWD) data acquired during the drilling of the well indicates the presence of potentially commercial quantities of gas within excellent quality sands of the Waarre Formation. This formation contains sands over a gross interval of approximately 100m vertical thickness. Wireline formation pressure data has confirmed the presence of a gas column of approximately 145m within the Waarre C formation.

    View Origin press release

  • CNH: First Mexico Shallow Water Contracts by Jul-2015

    Mexico's oil and gas regulator, the Comisión Nacional de Hidrocarburos (CNH), expects first shallow-water oil and gas contracts to be offered by Jul-2015. The commission said that average production costs for the contracts will be approximately $20/Bbl.CNH said that oil companies will have access...

    CNH: First Mexico Shallow Water Contracts by Jul-2015
    Headlines, Exploration, Others

    Mexico's oil and gas regulator, the Comisión Nacional de Hidrocarburos (CNH), expects first shallow-water oil and gas contracts to be offered by Jul-2015. The commission said that average production costs for the contracts will be approximately $20/Bbl.

    CNH said that oil companies will have access to data rooms for shallow water areas from Jan-2015 through Jul-2015. Winning bids will be based on which companies offer the government the largest share of the value of the produced hydrocarbons by contract, in addition to a minimum required investment.

    The 14 E&P contracts to be offered will cover an area of 4,222 sq km containing about 687 MMBOE in prospective resources in the Mexican territorial waters of the Gulf of Mexico at a depth of between 131 ft and 262 ft.

    Juan Carlos Zepeda, President of the Commission, said: "There's a great expectation that these areas will be able to produce oil for Mexico in a relatively short period of time." Mr. Zepeda added that several of the blocks on offer likely hold significant quantities of light crude oil.

    Source: Reuters

  • BP Expects $1 Billion Hit On Restructuring

    BP has announced that it expects a $1 billion hit as part of its ongoing program to restructure its Upstream and Downstream activities and corporate functions. The charges of approximately $1 billion are expected over the next five quarters, including the current quarter.View BP press release

    BP Expects $1 Billion Hit On Restructuring
    Headlines, Results & Reports

    BP has announced that it expects a $1 billion hit as part of its ongoing program to restructure its Upstream and Downstream activities and corporate functions. The charges of approximately $1 billion are expected over the next five quarters, including the current quarter.

    View BP press release

  • Talisman: Approached by Multiple Parties, Including Repsol

    Talisman responded to media reports about a possible sale to Repsol. The company stated that it has been approached by multiple parties, including Repsol, with regards to various transactions. It added that there is no assurance that any transaction will be agreed.View Talisman press releaseBloomberg had...

    Talisman: Approached by Multiple Parties, Including Repsol
    Headlines, Global Deals

    Talisman responded to media reports about a possible sale to Repsol. The company stated that it has been approached by multiple parties, including Repsol, with regards to various transactions. It added that there is no assurance that any transaction will be agreed.

    View Talisman press release

    Bloomberg had reported on 8-Dec-2014 that Repsol and Talisman have revived talks and are in the process of discussing options that could include sale of select assets or the entire company. The company was approached by Repsol in Jul-2014 about potential deals. The talks broke down in Aug-2014 over Talisman’s North Sea assets, which have consistently missed production targets.

    Source: Reuters

  • BG Brings Online Starfish Field Off Trinidad and Tobago
    Headlines, Projects & Capex

    Chevron has announced that BG Group commenced production from the Starfish field off Trinidad and Tobago. The Starfish project consists of three subsea wells and a 10-km subsea tieback to the existing Dolphin A Platform.

    Gas processed on the platform, combined with Dolphin Field production, is delivered through existing pipelines onshore to supply contractual commitments with the National Gas Company of Trinidad & Tobago Limited and Atlantic LNG.

    The Starfish Field was discovered in 1998 and forms part of the East Coast Marine Area (ECMA).

    Ownership of ECMA:  BG (50%, operator) and Chevron (50%).

    View BG press release

    View Chevron press release

    BG Trinidad and Tobago data book

  • Data analysis BG Sells Australian Gas Pipeline Network for $5 Billion

    BG Group has announced the sale of its wholly owned subsidiary QCLNG Pipeline to Australia’s APA Group for $5 billion. QCLNG Pipeline owns a 543 km underground pipeline network that links BG's natural gas fields in southern Queensland to a two-train liquefied natural gas export facility at Gladstone...

    BG Sells Australian Gas Pipeline Network for $5 BillionData analysis
    Headlines, Global Deals, Others

    BG Group has announced the sale of its wholly owned subsidiary QCLNG Pipeline to Australia’s APA Group for $5 billion. QCLNG Pipeline owns a 543 km underground pipeline network that links BG's natural gas fields in southern Queensland to a two-train liquefied natural gas export facility at Gladstone on Australia's east coast.

    Source: Reuters

  • Eni Achieves First Oil at West Hub Development Off Angola
    Headlines, Projects & Capex

    Eni has commenced production of first oil from the West Hub Development Project in Block 15/06 in the Angolan Deep Offshore, approximately 350 km north-west of Luanda and 130 km west of Soyo.

    The field is currently producing 45 Mbbl/d through the N’Goma FPSO, with production ramp-up expected to reach a daily production of up to 100 Mbbl/d in the coming months. The start-up of the East Hub Development, expected in 2017, will raise overall production from Block 15/06 to 200 Mbbl/d.

    Eni is operator of the Block 15/06 and Sonangol EP is the Concessionaire.

    Ownership of Block 15/06: Eni (35%, operator), Sonangol Pesquisa e Produção (35%), SSI Fifteen Limited (25%) and Falcon Oil Holding Angola SA (5%).

    View Eni press release

    View EIA Angola Brief

  • Statoil Awarded Four NZ Exploration Permits

    Statoil has been awarded four new exploration permits offshore New Zealand as part of the 2014 Block Offer. Statoil will take operatorship of one new permit next to existing acreage in the Reinga Basin (Block 57057) and will be a partner in three blocks (Blocks 57083, 57085 and 57087) in the East Coast and...

    Statoil Awarded Four NZ Exploration Permits
    Headlines, Exploration

    Statoil has been awarded four new exploration permits offshore New Zealand as part of the 2014 Block Offer. Statoil will take operatorship of one new permit next to existing acreage in the Reinga Basin (Block 57057) and will be a partner in three blocks (Blocks 57083, 57085 and 57087) in the East Coast and Pegasus Basins.

    Blocks 57083, 57085 and 57087 are awarded with Chevron as operator. The permits are located in the East Coast and Pegasus Basins, southeast off New Zealand’s North Island. The permits cover more than 25,000 sq km in water depths of 800-3,000m. The initial phase of the project will consist of data collection.

    Block 57057 is awarded to Statoil with a 100% working interest. It is located in the Reinga Basin offshore Northland, adjacent to Statoil’s existing exploration acreage. The permit covers sits approximately 100 km offshore and covers an area of 1,670 sq km in water depths of around 1,500m. Statoil has committed to acquire 200 line km of 2D seismic data within the permit.

    View Statoil press release

  • Data analysis EOG Sells Assets in Alberta, Manitoba for $410 Million

    EOG Resources announced the divestiture of all its Manitoba and certain Alberta assets in two separate transactions for $410 million. The divested assets produce approximately 7.05 Mbbl/d of oil, 580 bbl/d of NGLs and 43.5 MMcf/d of gas.Net proved reserves divested are estimated to be 7.7 MMbbl of oil, 0.8...

    EOG Sells Assets in Alberta, Manitoba for $410 MillionData analysis
    Headlines, Global Deals

    EOG Resources announced the divestiture of all its Manitoba and certain Alberta assets in two separate transactions for $410 million. The divested assets produce approximately 7.05 Mbbl/d of oil, 580 bbl/d of NGLs and 43.5 MMcf/d of gas.

    Net proved reserves divested are estimated to be 7.7 MMbbl of oil, 0.8 MMbbl of NGLs and 78.7 Bcf of natural gas. EOG divested 1.3 million gross acres (1.1 million net), 97% of which were in Alberta. Of the approximate 5,800 producing wells sold, 5,255 were natural gas wells.

    The company has retained approximately 382,200 gross acres (282,100 net) in Alberta, British Columbia and Saskatchewan.

    William R. "Bill" Thomas, EOG Chairman and CEO, said: “This decision is consistent with EOG's focus on its outstanding U.S. crude oil opportunities. We plan to reinvest some of the proceeds in these high return assets, while retaining our position in the Horn River Basin and other exploration areas."

    View EOG press release

  • ConocoPhillips Cuts 2015 Capex by 20%

    ConocoPhillips revealed a 20% cut in its 2015 capital budget to $13.5 billion. The company stated that the reduction is primarily a reflection of lower spending on major projects, as well as deferral of spending on North American unconventional plays. Despite lower spending, the company expects to achieve a...

    ConocoPhillips Cuts 2015 Capex by 20%
    Headlines, Projects & Capex

    ConocoPhillips revealed a 20% cut in its 2015 capital budget to $13.5 billion. The company stated that the reduction is primarily a reflection of lower spending on major projects, as well as deferral of spending on North American unconventional plays. Despite lower spending, the company expects to achieve a 3% production growth in 2015 from continuing operations, except Libya. 

    Approximately $5 billion is allocated for development drilling, down 23% YoY. Investment will continue to target the Eagle Ford and Bakken, and will defer significant investment in the emerging North American unconventional plays, including the Permian, Niobrara, Montney and Duvernay.

    Sanctioned major projects will see investments of approximately $4.8 billion, mainly focused on completion of APLNG and Surmont Phase 2. This is a significant reduction compared to 2014 which included peak spending on APLNG and Surmont Phase 2.

    Approximately $1.8 billion is allocated toward the company’s E&A programs. Investments will be focused on conventional activity in the U.S. Gulf of Mexico, offshore West Africa and Nova Scotia, as well as unconventional activity in North America.

    View ConocoPhillips press release

  • Scottish Power, Edgon to Develop UK Shale Gas Project

    Scottish Power and Edgon Resources have decided to move ahead with a JV to explore and develop shale gas in Britain, after seismic data showed potential for reserves. Under a farm-in agreement between the two companies, Scottish Power will take 50% gas from two sites in north-east England where it holds...

    Scottish Power, Edgon to Develop UK Shale Gas Project
    Headlines, Others

    Scottish Power and Edgon Resources have decided to move ahead with a JV to explore and develop shale gas in Britain, after seismic data showed potential for reserves. Under a farm-in agreement between the two companies, Scottish Power will take 50% gas from two sites in north-east England where it holds mineral licenses. The licenses are in Lincolnshire and South Yorkshire, near the Hatfield Moor gas storage site.

    Egdon, which is the country's second-biggest shale gas explorer by acreage, will cover the full cost of drilling and reserve evaluation work and become the operator of the project.

    Source: Reuters

  • Modec Brings Thirds Brazil Pre-Salt FPSO Online

    Modec announced that the FPSO Cidade de Mangaratiba MV24, located in the BM-S-11 block (Iracema Sul area) in the pre-salt region of the Santos Basin off Brazil has achieved first production in the middle of Oct-2014. The FPSO is chartered by Petrobras under a 20-year lease and operation contract.The FPSO is...

    Modec Brings Thirds Brazil Pre-Salt FPSO Online
    Headlines, Results & Reports

    Modec announced that the FPSO Cidade de Mangaratiba MV24, located in the BM-S-11 block (Iracema Sul area) in the pre-salt region of the Santos Basin off Brazil has achieved first production in the middle of Oct-2014. The FPSO is chartered by Petrobras under a 20-year lease and operation contract.

    The FPSO is moored at Lula field in water depths of 2,200m. The FPSO is capable of processing 150 Mbbl/d of oil and 280 MMcf/d of gas and has a storage capacity of 1.6 MMbbl.

    View Modec press release

  • Highlights of the Week Ending 6-Dec-2014

    Global DealsMarkets were abuzz with rumors that Shell may bidfor BP. While neither company was willing to comment, BP share price rose early in the week after the rumor spread. Rumor mills are also predicting that Oil Search is eyeing a $300 million bidfor PNG assets of Talisman Energy. Southwstern Energy...

    Highlights of the Week Ending 6-Dec-2014
    Headlines, Global Deals, Projects & Capex, Exploration

    Global Deals

    Markets were abuzz with rumors that Shell may bid for BP. While neither company was willing to comment, BP share price rose early in the week after the rumor spread. Rumor mills are also predicting that Oil Search is eyeing a $300 million bid for PNG assets of Talisman Energy.

    Southwstern Energy agreed to acquire $300 million in oil and gas assets in north-east Pennsylvania from WPX Energy. The assets comprise of 46,700 net acres which currently produce approximately 50 MMcf/d of gas from 63 operated Hz wells.

    Meanwhile, Carnarvon announced its exit from Thailand with the $58 million sale of its assets to Berlanga Group.

    Bellatrix revealed the $103 million purchase of Alder Flats assets in west central Alberta. The transaction involves the acquisition of Mannville rights and current production of 2.2 MBOE/d (80% gas) from approximately 10 gross (5.7 net) sections of land.

    Exploration

    Marathon announced a discovery in Harir Block in Kurdistan. A DST revealed sustained flow of 6.1 Mbbl/d of oil and 10-15 MMcf/d of gas.

    Petrobras tasted success with a deep-water gas discovery off Colombia in the Bloco Tayrona area. Meanwhile, Freeport-McMoRan reported positive drilling results from the Holstein Deep and Dorado development wells in deep-water GoM.

    Projects & Capex

    Mexico continues to see action as Pacific Rubiales became the latest to set up a JV in the country before the oil licencing round in 2015. The company announced a JV with Mexico’s Alfa Group to study and bid for the initial oil and gas bid round due in 2015.

    Meanwhile, Repsol is rumored to be seeking a partner for its planned $4 billion Canadian LNG plant.

    GoM continued to see action with Statoil and Stone Energy announcing project start-ups. Statoil commenced production at the Jack/St. Malo project in the Gulf of Mexico. The project is expected to have peak production of 23 MBOE/d for Statoil and is one of the five major US offshore fields the company expects to begin producing over the next few years. 

    Stone Energy announced the start-up of the Cardona deep-water project in deep-water GoM.

  • Ophir Signs PSC with Myanmar for Offshore Block

    Ophir Energy revealed that it has signed a PSC with the Myanmar Ministry of Energy for Block AD-03 offshore Myanmar. The company has a 95% operated interest in the block which is located in the Rakhine Basin. The Block is approximately 10,000 sq. km in size and is on trend with the multi-TCF, producing...

    Ophir Signs PSC with Myanmar for Offshore Block
    Others

    Ophir Energy revealed that it has signed a PSC with the Myanmar Ministry of Energy for Block AD-03 offshore Myanmar. The company has a 95% operated interest in the block which is located in the Rakhine Basin. 

    The Block is approximately 10,000 sq. km in size and is on trend with the multi-TCF, producing Shwe gas field. Ophir will re-process existing 2D and will promptly acquire 3D seismic data as part of the initial exploration period.

    View Ophir press release

  • Shell to Charter Five Newbuild LNG Carriers from Teekay

    Teekay LNG Partners entered into time-charter contracts with Shell for newbuild LNG carriers. The vessels will operate as part of Shell's global LNG fleet under time-charters ranging in duration from six to eight years, plus extension options. Delivery of the vessels will start from the second half of...

    Shell to Charter Five Newbuild LNG Carriers from Teekay
    Others

    Teekay LNG Partners entered into time-charter contracts with Shell for newbuild LNG carriers. The vessels will operate as part of Shell's global LNG fleet under time-charters ranging in duration from six to eight years, plus extension options. Delivery of the vessels will start from the second half of 2017 into 2018.

    The new time-charter contracts with Shell will be serviced by five 173,400 cubic meter MEGI (M-type, Electronically Controlled, Gas Injection) engine LNG newbuildings built by Daewoo Shipbuilding & Marine Engineering Co. of South Korea.

    View Teekay press release

  • Freeport-McMoran Reports Positive Drilling Results in GoM

    Freeport-McMoRan (FCX) reported positive drilling results from the Holstein Deep and Dorado development wells in deep-water GoM. Production from these projects is expected to total approximately 30 MBOE/d in 2016. FCX owns 100% in the Holstein Deep development, which is located in Green Canyon Block 643, west...

    Freeport-McMoran Reports Positive Drilling Results in GoM
    Exploration

    Freeport-McMoRan (FCX) reported positive drilling results from the Holstein Deep and Dorado development wells in deep-water GoM. Production from these projects is expected to total approximately 30 MBOE/d in 2016. FCX owns 100% in the Holstein Deep development, which is located in Green Canyon Block 643, west of the Holstein platform in 3,890 ft of water.

    The Holstein Deep delineation well in the Green Canyon area reached a total depth of approximately 31,100 ft. Recent wireline logs and core data confirmed that the well encountered a total of approximately 234 net ft of Miocene oil pay. Production from the planned three-well development program is expected to reach approximately 15 MBOE/d in 2016 and will be tied back to the existing Holstein production facility.

    FCX reported that production from the three-well Dorado development is expected to reach 15 MBOE/d in 2016 and will be tied back to the existing Marlin production facility. In Dec-2014, the Dorado well reached a total depth of approximately 14,600 ft and encountered approximately 245 net ft of Miocene pay. FCX owns 100% of the Dorado development, located on Viosca Knoll Block 915 in 3,860 ft of water.

    View FCX press release

  • Data analysis Carnarvon Exits Thailand with $58 Million Sale

    Carnarvon Petroleum announced the sale of its Thailand assets to the Berlanga Group for a cash consideration of $58.2 million. The deal is expected to be completed on or before 16-Feb-2015.Mr Adrian Cook, MD and CEO of Carnarvon Group, said: “With the sale, we are now entirely focused on maximising...

    Carnarvon Exits Thailand with $58 Million SaleData analysis
    Global Deals, Others

    Carnarvon Petroleum announced the sale of its Thailand assets to the Berlanga Group for a cash consideration of $58.2 million. The deal is expected to be completed on or before 16-Feb-2015.

    Mr Adrian Cook, MD and CEO of Carnarvon Group, said: “With the sale, we are now entirely focused on maximising value in the North West Shelf of Western Australia. Upon completion of the sale we will have secured important funding for our future activities without diluting our shareholders’ interests or raising debt. We are now well funded and focused to follow up on our success at the Phoenix South-1 well.”

    View Carnarvon press release

  • Stone Energy Brings Cardona Deep-Water Project Online
    Projects & Capex

    Stone Energy announced that production has commenced at the Cardona deep-water project in deep-water GoM. Initial production testing on the project started in late Nov-2014 and two wells (Cardona #4 and #5) have been tested and will be closely monitored with flow rates ramping up over a four week period.

    The two Cardona wells are expected to reach a combined gross production volume of 12 MBOE/d during this period. The wells are flowing into Stone-owned and operated Pompano platform. The company added that the Cardona subsea facility allows for the tie-in of two additional wells, which are currently scheduled to be the Cardona #6 and #7 wells projected to be drilled in 2015.

    Stone Energy has a 65% WI in the Cardona wells.

    View Stone Energy press release

    View Stone Energy Dec-2013 presentation

  • Dave Hager Named Devon CEO

    Devon Energy announced that Dave Hager will succeed John Richels as the President and CEO of the company. Mr. Hager has been with Devon since 2009, when he was named EVP of E&P.Mr. Hager has 35 years of experience in the oil and gas industry, having started his career in 1979 as a geophysicist with Mobil...

    Dave Hager Named Devon CEO
    Others

    Devon Energy announced that Dave Hager will succeed John Richels as the President and CEO of the company. Mr. Hager has been with Devon since 2009, when he was named EVP of E&P.

    Mr. Hager has 35 years of experience in the oil and gas industry, having started his career in 1979 as a geophysicist with Mobil Corp., and joined Sun Oil Co. (predecessor of Oryx Energy Co.) in 1981. Upon the Kerr-McGee/Oryx merger in 1999, he became VP of GoM operations for Kerr-McGee. He later became the COO at Kerr-McGee in 2005.

    Mr. Hager has a bachelor's degree in geophysics from Purdue University and a master's degree in business administration from Southern Methodist University.

    View Devon Energy press release

  • Pacific Rubiales, Alfa Group Create Mexico JV

    Pacific Rubiales signed an agreement with the Alfa Group to form a JV for activities in Mexico. The JV will undertake a joint study of, and bid on, Mexico’s initial oil and gas bid round in 2015. The JV will also work to develop petroleum and natural gas assets in Mexico as well as consider developing...

    Pacific Rubiales, Alfa Group Create Mexico JV
    Headlines, Others

    Pacific Rubiales signed an agreement with the Alfa Group to form a JV for activities in Mexico. The JV will undertake a joint study of, and bid on, Mexico’s initial oil and gas bid round in 2015. The JV will also work to develop petroleum and natural gas assets in Mexico as well as consider developing ancillary businesses including midstream projects.

    Ronald Pantin, CEO of Pacific Rubiales, said: "We believe Mexico provides a very large opportunity for us. An opportunity that is well aligned with our core expertise and track record in light and heavy oil exploration and development, as the leading independent Latin American focused E&P company. We intend to be active in the first open bidding rounds expected next year and anticipate that Mexico will provide another significant platform of future growth, for the Company."  

    View Pacific Rubiales press release

  • Shell May Bid for BP
    Headlines, Global Deals

    Reuters reports that Shell may be considering a bid for BP, citing unnamed traders. Both companies declined to comment.

    Source: Reuters

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

  • Chevron Commences Production at Jack/St. Malo Project in GoM
    Headlines, Projects & Capex

    Statoil announced that it has commenced production from the Jack/St. Malo Project in the US Gulf of Mexico. The project is expected to have peak production of 23 MBOE/d for Statoil. The project is one of the five major US offshore fields for Statoil that will begin production over the next few years.

    The Jack and St. Malo fields are located within 25 miles (40 km) of each other in approximately 7,000 ft (2,100m) of water in the Walker Ridge area, approximately 280 miles (450 km) south of New Orleans, Louisiana. The fields were co-developed with subsea completions flowing back to a single host, semi-submersible floating production unit located between the fields, with a production capacity of 170 Mbbl/d of oil and 42.5 MMcf/d of gas, and with the capability for future expansion.

    Crude oil will be transported 137 miles to the Green Canyon 19 Platform via the Jack/St. Malo Oil Export Pipeline, and then onto refineries along the Gulf Coast. The pipeline is the first large-diameter, ultra-deep-water pipeline in the Walker Ridge area.

    The Jack and St. Malo fields were discovered in 2004 and 2003, respectively, and are estimated to contain combined total recoverable resources in excess of 500 MMBOE. Total production from the two fields is expected to eventually ramp up to 94 Mbbl/d.

    Ownership of Jack field: Chevron (50%, operator), Statoil (25%) and Maersk Oil (25%). 

    Ownership of St. Malo field: Chevron (51%, operator), Petrobras (25%), Statoil (21.5%), ExxonMobil (1.25%) and Eni (1.25%).

    Ownership of host facility: Chevron (40.6%), Statoil (27.9%), Petrobras (15%), ExxonMobil (10.75%), Maersk (5%) and Eni (0.75%).

    View Statoil press release

  • Data analysis Petrobras Reveals Deep-Water Gas Discovery Off Colombia

    Petrobras that it has made the first deep-water gas discovery off Colombia’s Caribbean coast in the Bloco Tayrona area. The area is operated by Petrobras.Ownership of Bloco Tayrona area: Petrobras (40%, operator), Ecopetrol (30%) and Repsol (30%).Source: Reuters

    Petrobras Reveals Deep-Water Gas Discovery Off ColombiaData analysis
    Exploration

    Petrobras that it has made the first deep-water gas discovery off Colombia’s Caribbean coast in the Bloco Tayrona area. The area is operated by Petrobras.

    Ownership of Bloco Tayrona area: Petrobras (40%, operator), Ecopetrol (30%) and Repsol (30%).

    Source: Reuters

  • Data analysis Southwestern Buys WPX Assets in NE Pennsylvania

    Southwestern Energy has signed an agreement to purchase oil and gas assets in north-east Pennsylvania from WPX Energy for $300 million. The assets comprise of 46,700 net acres which currently produce approximately 50 MMcf/d of gas from 63 operated Hz wells. Southwestern will also assume firm transportation...

    Southwestern Buys WPX Assets in NE PennsylvaniaData analysis
    Headlines, Global Deals

    Southwestern Energy has signed an agreement to purchase oil and gas assets in north-east Pennsylvania from WPX Energy for $300 million. The assets comprise of 46,700 net acres which currently produce approximately 50 MMcf/d of gas from 63 operated Hz wells. Southwestern will also assume firm transportation capacity of 260 MMcf/d predominantly on the Millennium pipeline.

    Steve Mueller, President and CEO of Southwestern Energy, commented: “This acreage position complements our existing Marcellus acreage in northern Susquehanna County where we have recently seen very good results from two of our wells, the Hughes North 1H and the Dayton 4H...Further, the additional firm transportation capacity adds to our existing firm transportation portfolio to provide 1.3 Bcf/d of firm transport capacity upon closing and growing to 1.4 Bcf/d by the end of 2016. The immediate availability of this firm transportation provides the pathway for ongoing growth in production over the next three years and the added acreage solidifies future value through a growing well inventory."

    View Southwestern press release

  • Repsol Seeks Partners for $4 Billion Canadian LNG Plant
    Headlines, Others

    Reuters reports that Repsol is seeking partners for the planned $4 billion LNG export plant, quoting two sources familiar with the matter.

    Repsol aims to build a 5 MMTPA plant at its east Canaport terminal on the east coast of Canada in New Brunswick to meet Europe’s growing demand. Repsol owns 75% of the project while Irving Oil owns 25%.

    Source: Reuters

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

  • Oil Search Bids $300 Million for PNG Assets of Talisman
    Headlines, Global Deals

    The WSJ reports that Oil Search has bid more than $300 million for the PNG assets of Talisman Energy, quoting people familiar with the matter. A deal could help the company justify a new pipeline and processing unit at the $19 billion PNG LNG export plant operated by ExxonMobil.

    View original article

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

  • Marathon Makes New Discovery in Harir Block, KurdistanData analysis
    Headlines, Exploration

    Marathon Oil Corporation revealed a new hydrocarbon discovery (Jisik-1) in the Harir Block in Kurdistan. The well is location approximately 64 km north-eat of Erbil, and was drilled to a total depth of approximately 15,000 ft. A drill-stem testing program yielded a sustained flow rate of 6.1 Mbbl/d of oil and multiple non-associated gas zones flowed at a combined rate of approximately 10-15 MMcf/d.

    Ownership of Harir Block: Marathon (45%, operator), Total (35%) and Kurdistan Regional Government (20%).

    View Marathon Oil press release

    View Marathon Sep-2013 presentation

  • OMV Achieves First Oil at Maari Re-Development Project

    OMV has achieved first oil from its Maari re-development drilling campaign in New Zealand. The Maari redevelopment drilling campaign in New Zealand, also known as the Maari Growth project, aims to increase reserves, production and recovery from the producing Maari Field.The well, known as MR-8A, was started...

    OMV Achieves First Oil at Maari Re-Development Project
    Headlines, Projects & Capex

    OMV has achieved first oil from its Maari re-development drilling campaign in New Zealand. The Maari redevelopment drilling campaign in New Zealand, also known as the Maari Growth project, aims to increase reserves, production and recovery from the producing Maari Field.

    The well, known as MR-8A, was started producing from a previously undrained compartment in the Maari Field. The well was side-tracked out of an abandoned injection well and drilled horizontally into the Moki Formation to a total length of 3,824m. The production capacity for this well has been estimated at 4.5 Mbbl/d of oil (gross).

    The Maari Growth campaign includes drilling of five wells into producing and new reservoirs. Total investment of OMV will be around €205 million (US$255 million) and the campaign is expected to be completed by mid-2015.

    The Maari Field is located in a water depth of 100m, around 80 km off the Taranaki coast of New Zealand. The field was developed by OMV as operator of the Maari JV and began production in Feb-2009. The field production has since declined from peak rates of 25 MBOE/d (net to OMV).

    Ownership of Maari JV: OMV (69%, operator), Todd (16%), Horizon Oil (10%) and Cue Energy (5%).

    View OMV press release

  • Data analysis Bellatrix Buys Alder Flats Assets for $103 million

    Bellatrix Exploration has completed the acquisition of complementary assets within its core Alder Flats area of west central Alberta for approximately C$118 million (US$103 million). The transaction involves the acquisition of Mannville rights and current production of 2.2 MBOE/d (80% gas) from...

    Bellatrix Buys Alder Flats Assets for $103 millionData analysis
    Headlines, Global Deals

    Bellatrix Exploration has completed the acquisition of complementary assets within its core Alder Flats area of west central Alberta for approximately C$118 million (US$103 million). The transaction involves the acquisition of Mannville rights and current production of 2.2 MBOE/d (80% gas) from approximately 10 gross (5.7 net) sections of land at Alder Flats, representing largely joint interest lands where Bellatrix currently maintains existing working interest rights.

    Furthermore, the acquired acreage directly offsets Bellatrix operated lands, which include its most 'successful' and 'prolific' Mannville horizontal wells to date. This includes the Bellatrix 13-23 upper Mannville liquids rich natural gas well, which has produced an estimated 5 Bcf of gas with 166 Mbbl of liquids during its first year on-stream.

    The transaction increases Bellatrix's net working interest within the Mannville Formation by 57.3% (to approximately 96.9% from 39.6% previously) over the ten gross sections. 

    View Bellatrix press release