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Tuesday, August 20, 2019

Oil Equivalent News

Image: Saudi Aramco

Saudi Aramco, World’s Most Profitable Co, Again

Saudi Aramco announced that its net income was $46.9 billion for the first half 2019, compared to $53.0 billion for the same period last year. That easily outstripped corporate titans such as Apple Inc, Amazon.com Inc and other big oil producers, many of which suffered larger declines in profit as output and crude prices fell. Saudi Aramco President & CEO Amin H. Nasser, said: “Despite lower oil prices during the first half of 2019, we continued to deliver solid earnings and strong free cash flow underpinned by our consistent operational performance…

A crude oil train segment rumbles alongside a U.S. inland waterway. CREDIT: Dagmar Etkin

Canadian Natural Resources eyes Rail Contracts

Canadian Natural Resources, the country's biggest oil and gas producer, is looking at taking on the Alberta provincial government's contracts to move crude by rail, a senior company executive said on Thursday.Shipping more crude by rail is seen as critical for Canadian oil producers due to congested pipelines that forced Alberta to order mandatory oil curtailments this year.Alberta's United Conservative Party government said in June that it would divest rail contracts amounting to 120,000 barrels of crude per day (bpd) to the private sector this fall.

Image: Faroe Petroleum

Equinor, Faroe Petroleum in Asset Swap

Britain's Faroe Petroleum has agreed to swap oil and gas fields with Norwegian state firm Equinor as it fights a hostile takeover from Norwegian oil and gas operator DNO.It appears that Faroe in fight-back mode after DNO’s so-called ‘opportunistic’ bid.The oil and gas company focusing principally on exploration, appraisal and production opportunities in Norway and the UK said in a press note that it has signed a binding agreement with Equinor Energy to swap its interests in the Njord…

Image: BP

BP Completes $10.5-billion BHP Billiton Acquisition

London-based BP Plc BP has completed the $10.5-billion acquisition of BHP’s U.S. unconventional assets in a landmark deal that will significantly upgrade BP’s U.S. onshore oil and gas portfolio, in a move that upgrades and repositions its American onshore business.The portfolio includes assets in the highly-prized Permian-Delaware basin in Texas, along with two premium positions in the Eagle Ford and Haynesville basins in Texas and Louisiana (see map, below).The assets currently produce 190…

Global consumption of primary energy by fuel type (million tonnes oil equivalent). Graph: Drewry Maritime Research

Optimism in Multipurpose Shipping: Drewry

Surging growth in renewable energy generation around the world and a construction boom in South East Asia that is expected to run for the next 10 years bode well for the once ailing multipurpose shipping fleet.In the latest edition of Drewry’s Multipurpose Shipping Forecaster report we declare that we remain cautiously optimistic on the outlook for the sector. There are some caveats to this optimism as global general cargo demand is forecast to grow at a rate of just 2% per year to 2022…

(File photo: Port of Houston)

Chevron Eyes Houston Ship Channel for 2nd US Gulf Refinery

Chevron Corp wants to build or buy a refinery along the U.S. Gulf Coast to process crude oil from its rapidly growing Permian Basin operations, a senior executive said on Tuesday.The company would like to have refining operations on the Houston Ship Channel, in the western part of the U.S. Gulf, to complement an existing eastern Gulf refinery in Mississippi that makes lubricants and other materials, Pierre Breber, Chevron's head of downstream and chemicals, said."Something on the ship channel side could make a lot of sense for our company…

Image: ENI

MOL buys Eni's Adriatic Offshore Gas Stakes

MOL Group’s Croatian INA agreed to buy Eni Croatia BV, a wholly-owned member of Eni Group, through which Eni participated in the joint project of gas production in Croatia’s offshore areas Northern Adriatic and Marica.INA will become the 100% owner and the sole operator of the Northern Adriatic and Marica fields after all conditions are fulfilled, including receiving clearance from the antitrust authorities, which is expected in the coming months.The transaction covers 4.3 million…

© xy / Adobe Stock

Vitol Invests in Coal-to-oil Venture as Shipping Fuel Rules Loom

Energy trader Vitol and coal miner Peabody Energy are partnering with start-up Arq to turn coal waste into a low-sulphur oil product that could be an alternative fuel for shippers as new U.N. pollution rules loom, the companies said in a statement.Global oil and shipping companies are looking at any and all options to avoid becoming a casualty of the major market dislocations that the new standards will create when they come into effect in 2020.The U.N. International Maritime Organization (IMO) will ban ships using fuel with a sulphur content higher than 0.5 percent…

Image: ENI

MOL Snaps Up Adriatic Gas via Croatian Unit

MOL Group’s Croatian INA agreed to buy Eni Croatia BV, a wholly-owned member of Eni Group, through which Eni participated in the joint project of gas production in Croatia’s offshore areas Northern Adriatic and Marica. INA will become the 100% owner and the sole operator of the Northern Adriatic and Marica fields after all conditions are fulfilled, including receiving clearance from the antitrust authorities, which is expected in the coming months. The transaction covers 4.3 million…

Photo: Qatar Petroleum

Qatar to Boost LNG Production by 30% Amid Arab Dispute

State-owned Qatar Petroleum said Tuesday it aims to raise Qatar’s LNG production from 77 million to 100 million tons per year. The new additional volumes will be secured by doubling the size of the new gas project in the southern sector of the North Field, which Qatar Petroleum had announced last April. This will increase the North Field’s production of natural gas, condensate and other associated products by one million barrels of oil equivalent per day. The announcement was made by Saad Sherida Al-Kaabi…

INA Offshore platform. Photo: MOL Group

MOL Group Posts Almost USD 1 Billion Profit in 2016

MOL Group significantly outperformed its initial USD 2bn target for 2016 and delivered a clean  EBITDA of USD 2.15bn, which is only moderately down compared with the previous year. Upstream has shown great resilience to the deteriorating external environment. A further 17% decline in Brent prices and a 23% decline in realized gas prices were offset by higher production and cost discipline. As a result, EBITDA remained nearly flat at USD 675mn and the business generated over USD 250mn free cash flow equalling USD 7 per barrel of oil equivalent.

Soren Skou (Photo: Maersk Line)

Maersk's New CEO Appointment Raises Prospect of Break-up

Danish shipping and oil group A. P. Moller-Maersk could split up into separate companies, its chairman said on Thursday after naming Soren Skou, the head of its container business, as chief executive. Maersk shares rose more than 10 percent on the news with investors betting on a break-up and seeing the appointment as a sign of a more profound restructuring. "The question is whether we should be a large group, or whether we should be a number of independent companies," Chairman Michael Pram Rasmussen told Danish online media Finans.

Hans-Hermann Andreae Photo DEA

Andreae Appointed MD of DEA Norge

After a five-month integration process, DEA has set up a new organisation, DEA Norge in Norway and has appointed Hans-Hermann Andreae as its Managing Director. He heads the business in Norway from the new headquarters in Stavanger. The company will continue to pursue its long-term growth strategy on the Norwegian Continental Shelf (NCS). The changes to DEA in Norway follow the acquisition of E.ON E&P Norge in December 2015. In line with the requirements of Norwegian authorities, the two companies are now legally merged. The name of the new company is DEA Norge AS.

Rex W. Tillerson, chairman and chief executive office ExxonMobil

ExxonMobil 1Q Profits Plunge 63%

* Earnings of $1.8 billion decreased 63 percent from the first quarter of 2015. * Earnings per share were $0.43 assuming dilution. * Cash flow from operations and asset sales was $5 billion, including proceeds associated with asset sales of $177 million. * Capital and exploration expenditures were $5.1 billion, down 33 percent from the first quarter of 2015. * Oil equivalent production increased 1.8 percent from the first quarter of 2015, with liquids up 11.5 percent and gas down 9.3 percent. * The corporation distributed $3.1 billion to shareholders in the first quarter of 2016.

FPSO Petrojarl Varg Varg Field PL038 Photo Det norske'

Det Norske hit by Revenue Drop

Det Norske Oljeselskap ASA slumped to an operating loss in the first quarter on significantly lower revenue. The company reported a revenues of $ 205 (Q1 2015: USD 329) million in the first quarter. Production in the same period was 60,600 barrels of oil equivalent per day, while the realized oil price was $ 37 on average per barrel. EBITDA for the quarter amounted to 129 (261) million, and EBIT was -23 (86) million, after an impairment charge of 38 (53) million dollars. The quarterly result was 32 (2) million, giving earnings per share (EPS) of 0.16 (0.01) dollars.

Johan Sverdrup Photo Statoil

Boskalis to Transport Johan Sverdrup Platform Modules

Royal Boskalis Westminster N.V. (Boskalis) has been awarded a contract by Samsung Heavy Industries for the transportation of the three topside modules of the riser platform and the topside of the processing platform for the Johan Sverdrup project offshore Norway. The contract carries a value of approximately USD 40 million. The modules will be transported by Dockwise in three journeys. A Dockwise type I heavy transport vessel will transport two topside modules of the riser platform with a total weight of more than 20…

ExxonMobi

ExxonMobil Earns $32.5 Bi in 2014

Exxon Mobil Corporation today announced estimated full-year 2014 earnings of $32.5 billion compared with $32.6 billion a year earlier, reflecting the strength of its integrated business model in a lower price environment. “ExxonMobil’s results illustrate the value of our proven business model that integrates upstream, downstream, and chemical businesses,” said Rex W. Tillerson, chairman and chief executive officer. ExxonMobil completed a record eight major Upstream projects during the year…

Brad Lingo Managing Director of Drillsearch

Drillsearch Reports Robust Performance

Drillsearch delivered a strong operating performance in the December quarter against a backdrop of challenging conditions that affected the oil and gas sector globally. Production of 0.79 million barrels of oil equivalent (mmboe) in the December 2014 quarter was 6% higher than the September quarter. Average daily oil production from the Western Flank Oil Fairway was 11,565 barrels (bbls) (Drillsearch’s 60% share 6,939bbls). With continuing strong output from the Western Flank and new wells planned to come online in the second half of FY2015…

Soren Gath Hansen

DONG Energy Appoints CEO for E&P

Søren Gath Hansen will step down as Group Executive Vice President and CEO for E&P. His successor is David B. Cook who comes from a position as Executive Officer and Head of Oil & Gas at the Abu Dhabi National Energy Company, TAQA. Søren Gath Hansen will continue in DONG Energy as head of the group's Quality, Health, Safety and Environment activities (QHSE). Søren Gath Hansen said, "I have worked for DONG Energy for more than 30 years and throughout the past 12 years I have had…

The Hamilton Lake property is a 47 section wholly owned Viking unit in east-central Alberta. This property has already recovered about 16 million barrels of oil reserves, which represents only a 10 percent recovery of the o

Zargon Oil & Gas Sells Hamilton Lake Assets

Zargon Oil & Gas Ltd. announces that it has entered into a definitive purchase and sale agreement to sell its Hamilton Lake property for $25 million. Zargon has entered into an agreement to sell its petroleum and natural gas assets in Hamilton Lake for a total consideration of $25 million that is comprised of $22.5 million in cash (before adjustments) and $2.5 million in marketable securities. This transaction is scheduled to close prior to December 31, 2014 and is subject to customary industry closing conditions.

Credit: Chevron - Statoil ASA

Study: US Offshore Holds Huge Untapped Potential

Two new studies released today by the National Ocean Industries Association (NOIA) and the American Petroleum Institute (API) show significant potential added energy and economic benefits to the United States if the Eastern Gulf of Mexico and the Pacific outer continental shelf (OCS) were opened to offshore oil and natural gas development. Both studies were conducted by Quest Offshore Inc., which also conducted a study of the Atlantic OCS, which NOIA and API released last year. “The U.S.

Petrobras Sets Record in Brazil

Consolidated Oil and Gas Petrobras in Brazil and abroad, production amounted to 2 million 795 thousand barrels of oil equivalent per day (boe) in October. This volume was 0.5% higher than in September, which was 2 million 781 thousand boe. Oil production in Brazil grew by 0.4% compared to September, and reaches a new high. Oil production from Petrobras in Brazil reached in October average of 2 million 126 thousand barrels / day (bpd), 0.4% higher than what occurred in September, 2 million 118 thousand bpd.

Petrobras Completes Sale of Peru Assets

Last Thursday (November 6th), at a formal ceremony in Lima, Petrobras completed the sale of 100% of the shares of its wholly-owned subsidiary Petrobras Energia Peru (PEP) to the China National Petroleum Corporation (CNPC), for the sum of US$2.6 billion. The sale was finalized with a cash payment to Petrobras of US$2.2 billion, after deduction of the due tax and fulfilment of all the conditions set down in the contract that was signed on November 13, 2013. The transaction included: 100% of Lot X…

Courtesy  RWE Dea

Marconi-Vorlich Exploration Well Successful

UK exploration well 30/1f-13 and sidetrack 30/1f-13Y have encountered hydrocarbons in the Marconi-Vorlich prospect. The find in Paleocene Sandstones has been flow tested at a maximum rate of 5,350 barrels of oil equivalent per day. RWE Dea is part of the consortium operated by GDF SUEZ. The Marconi-Vorlich 30/1f-13A,Z exploration well and subsequent geological side-track 30/1f-13Y was drilled by GDF SUEZ under a Joint Well Agreement between the P1588 (Block 30/1f) and P363 (Block 30/1c) Licensees. The 30/1f-13Z geological side-track has confirmed a westerly extension to the initial discovery.

Oil find

New Oil Field Found in British North Sea

GDF SUEZ E&P UK Ltd and BP today announced a new exploration discovery in the UK Central North Sea. The discovery, which spans GDF SUEZ operated block 30/1f (licence P1588) and BP operated block 30/1c (licence P363) was flow tested at a maximum rate of 5,350 barrels of oil equivalent per day. The discovery, referred to as ‘Marconi’ by GDF SUEZ and ‘Vorlich’ by BP, is located in the Central North Sea. Ruud Zoon, Managing Director of GDF SUEZ E&P UK Ltd said: “This is an encouraging…

The extension of the Libra reservoir (blue) compared to Rio de Janeiro

Petrobras Signs LoI for Libra FPSO

Libra Consortium has signed a letter of intent with Odebrecht/Teekay (OOG-Teekay), winner of a tender process, for the charter of a FPSO-type platform (floating production, storage and offloading) designed for the extended well test campaign of Libra, in the Santos Basin pre-salt deposits. The delivery of the FPSO and the start-up of the first extended well test are scheduled for the fourth quarter of 2016. The plan is to conduct tests in several areas of the block, in order to evaluate the production performance and acquire information about the Libra area.