The inglorious end to Royal Dutch Shell Plc’s $7 billion search for oil in Alaska means billions of barrels of crude will probably remain locked away in Arctic waters from the U.S. to Russia -- at least as long as prices remain near $50 a barrel.
Shell abandoned exploration off Alaska for the “foreseeable future” on Monday after it failed to find meaningful quantities of oil or natural gas. In Russia, sanctions over Ukraine have halted partnerships aimed at exploring offshore in the Arctic, while exploration in Greenland has been on hold since 2012 and activity in Norway is slowing.
Russia’s state-run energy giants Rosneft OJSC and Gazprom PJSC are delaying some offshore drilling by two to three years because of sanctions and weaker oil prices, according to the country’s Ministry of Natural Resources.
The UK oil and gas industry should start decommissioning now in order to allow the north-east to come the global leader in renewable energy, the Scottish Green Party leader said last night.
Patrick Harvie MSP, co-convener of the Scottish Greens and the party's economy and energy spokesperson, claims a recent report has shown that “many more jobs” would be created in and around Aberdeen through the renewable sector than would be lost if the offshore industry completely collapsed.
Oil giant BP Plc, which was said to be readying defenses for potential takeover offers, has a little- known ace in the hole: a disclaimer in its Macondo spill settlement that could tack $12.6 billion onto the price tag.
A potential buyer might be forced to accelerate the payment of as much as two-thirds of the $18.7 billion in penalties the company agreed to pay the U.S. and several states, according to company filings. As it stands, BP has more than 15 years.
An option that gives the federal government and some states the ability to demand faster payment in a takeover effectively hands them a veto over any deal. Together with the company’s exposure to Russia amid sanctions and the worst oil crash in decades, it amounts to a powerful deterrent to suitors, said William Arnold, a former banker and executive at Royal Dutch Shell Plc.
Halliburton and Baker Hughes will sell additional businesses in connection with the former's pending acquisition of its smaller rival.
In November last year Halliburton announced its proposed acquisition but in recent month it has run into regulatory hurdles with US antitrust enforces who believe the merger will lead to higher prices and less innovation.
Halliburton said in April that it would sell three of its drilling businesses and on Monday said it had received proposals from multiple interested parties for each business.
Sanchez Energy will sell off a number of assets in the US in a $345million deal.
The deal will see Sanchez Production Partners acquire and operate certain pipeline, gathering and compression assets located in the Western part of its Catarina asset in the Eagle Ford Shale in South Texas.
The proceeds from the Western Catarina Divestiture will be used to further enhance Sanchez’s Energy’s liquidity position which is expected to enable the company to pursue growth opportunities through asset acquisitions.
Freeport-McMoRan Oil & Gas has made an oil find in the Gulf of Mexico.
The company said initial production from the Horn Mountain Deep well is expected in the first half of 2017.
The well alongside two follow-on development wells in the region may be capable of producing up to 30,000 barrels of oil equivalent per day.
Russian billionaire Mikhail Fridman has called on the UK Government to delay an October headline to sell its North Sea assets.
The move comes after a first round of offers was understood to have disappointed.
Earlier this year the UK Government decided to revoke North Sea oil field licences owned by DEA, RWE’s oil and gas unit bought by Fridman’s LetterOne.
Saudi Arabia has withdrawn as much as $70 billion from global asset managers as OPEC’s largest oil producer seeks to plug its budget deficit, according to financial services market intelligence company Insight Discovery.
"Fund managers we’ve spoken to estimate SAMA has pulled out between $50 billion to $70 billion from global asset managers over the past six months," Nigel Sillitoe, chief executive officer of
the Dubai-based firm, said by telephone Monday. "Saudi Arabia is withdrawing funds because it’s trying to cut its widening deficit and it’s financing the war in Yemen," he said, declining to name the fund managers.
Saudi Arabia is seeking to halt the erosion of its finances after oil prices halved in the past year. The Saudi Arabian Monetary Authority’s reserves held in foreign securities have fallen
about 10 percent from a peak of $737 billion in August 2014, to $661 billion in July, according to central bank data. The government is accelerating bond sales to help sustain spending.
Shell has pulled out of offshore drilling in the Arctic, in a decision labelled an “unmitigated defeat” for oil companies by environmentalists opposed to the exploration.
The company is abandoning exploration off the coast of Alaska after failing to find sufficient signs of oil and gas to make further exploration worthwhile.
The company said it would cease exploration activity in the region “for the foreseeable future”, blaming high costs associated with the project and a “challenging and unpredictable regulatory environment”.
Shell’s decision to pull out of drilling in the Arctic should be a turning point in the fight against climate change, green campaigners have said.
Environmentalists also called on the company, which recently left the high-profile Prince of Wales’ Corporate Leaders’ Group on climate change amid the Arctic drilling controversy, to set out how it was going to move its business model to one that was compatible with curbing global temperature rises.
Campaigners fear an oil spill from Arctic offshore drilling could be very damaging to the environment and exploiting the region for fossil fuels would undermine efforts to tackle climate change.
The Irish High Court has granted independent oil and gas producer Petroceltic an injunction prohibiting activist investor Worldview Capital from proceeding with its attempt to hold another extraordinary general meeting.
Xodus Group has entered the second phase of its joint industry project (JIP) with Dutch innovation company TNO.
The second phase of the project, which is expected to run across three stages, is now open for other participants to join.
It comes after the first stage of the project which looks into the dynamic forces which affect the integrity of piping systems was carried out.
Pipeline company Energy Transfer Equity (ETE) is set to buy Williams Cos in a deal worth $37.7billion.
Williams Investors will get $43.50 per share either in cash or stock of Energy Transfer Corp.
The potential deal first became public knowledge in June when Williams had rejected an offer from ETE which is said was too low.
KMG EP has strengthened its leadership team with the appointment of a new chief executive.
Kurmangazy Iskaziev was previously the boss of JSC Embamunaigas, (EMG) one of the core production assets of the company.
BG Group has acquired three non-operated positions offshore Newfoundland from Spanish-owned Repsol.
The company said the move gives it additional access to early stage exploration in a proven prospective basin ahead of the first well being drilled this year.
Rockhopper Exploration saw its bid to acquire production and exploration assets in Egypt denied after a joint venture party exercised its right of pre-emption.
Shell has pulled out of controversial drilling off the coast of Alaska after failing to find sufficient signs of oil and gas to make further exploration worthwhile.
Private equity house Arle Capital is said to be close to selling Dutch engineering firm Stork Technical Services for around £440million, reports have claimed.
Russia’s oil industry begins a critical battle over taxes this week. Losing may result in the first decline in crude production at the world’s largest energy exporter since 2008.
