Norway’s krone declined, tracking a drop in global crude prices after Iran was said to reach a deal with world powers over its nuclear program.
The currency fell as much as 0.6 percent and traded 0.4 percent lower at 8.9349 per euro as of 9:19 a.m. in Oslo.
“It’s a short-term effect linked to the oil price, but also a long-term effect because this changes the fundamental income conditions for Norway,” Thina Saltvedt, an oil analyst at Oslo-based Nordea Markets, said by phone. “For Norway’s offshore production, it’s not that positive. We’re getting a new challenge with a new, cheap competitor in the market.”
Iran, once OPEC’s second-biggest producer, reached an agreement that will curb its nuclear program in return for an easing of sanctions, according to an official in Vienna. The accord raised speculation of increased crude shipments into a market that is already oversupplied.
A landmark nuclear agreement has been reached with Iran after clearing final obstacles, a senior diplomat said today.
The diplomat said the deal agreed at talks in Vienna includes a compromise between Washington and Tehran which would allow UN inspectors to press for visits to Iranian military sites as part of their monitoring duties.
But access at will to any site would not necessarily be granted and, even if so, could be delayed - a condition that critics of the deal are sure to seize on as possibly giving Tehran time to cover any sign of non-
compliance with its commitments.
Under the deal, Tehran would have the right to challenge the UN request and an arbitration board composed of Iran and the six world powers that negotiated with it would have to decide on the issue.
Nevertheless, such an arrangement would be a notable departure from assertions by top Iranian officials that their country would never allow the UN's International Atomic Energy Agency into such sites. Iran has argued that such visits by the IAEA would be a cover for spying on its military secrets.
Mexico waited 77 years to invite foreign oil producers back into its borders. That was one year too many.
The move to lure tens of billions of dollars from the likes of Exxon Mobil Corp. will be put to the test for the first time at an oilfield auction on Wednesday. With oil prices down by about half since last year, five of 38 potential bidders, including Glencore Plc, Noble Energy Inc. and even Mexico’s state-owned oil producer, have pulled out.
Mexico is gearing up for the first auction of new licences to private investors in almost 80 years.
The government will hold the first of the sales, which it hopes will open the energy industry, and bring in an estimated $62.5billion by 2018.
It is also expected to increase annual output in the country by 500,000 barrels a day.
Oil and gas experts expect European crude demand to grow as a result of the economic agreement struck between the EU and Greece yesterday.
The deal has reduced the prospect of a so-called Grexit from the eurozone.
In its latest review of the market, Scottish consultancy Wood Mackenzie (WoodMac) said: “If Greece remains in the eurozone and the current crisis is contained, the outlook for Europe's oil demand is much improved over the decline seen in 2014.
Argentina ended some financial incentives today that were intended to boost energy investment in its huge shale oil and gas deposits, even as it seeks to narrow an energy trade gap.
Disputes over attempts to probe Tehran’s alleged work on nuclear weapons are unexpectedly persisting, threatening plans to wrap up an Iran nuclear deal.
Diplomats say at least two other issues still need final agreement. These are Iranian demands that a UN arms embargo be lifted and any UN Security Council resolution approving the deal no longer describes Iran’s nuclear activities as illegal.
With few signs that Iranian or US negotiators are prepared to give ground, the high-stakes game of brinksmanship looks set to force a fourth extension of talks since the current round began 17 days ago.
Lundin Norway has been granted a drilling permit by the NPD (Norwegian Petroleum Directorate) for a fifth exploration well in production licence 609.
The company said well 7220/6-2 will be drilled from the Island Innovator facility.
State-owned oil producer Pemex has appointed Houston-based treatment specialist ProSep to deliver a crude blending project on-board a platform in the Gulf of Mexico.
Saudi Arabia told OPEC it raised oil production to a record as the organization forecast stronger demand for its members’ crude in 2016.
The world’s biggest oil exporter pumped 10.564 million barrels a day in June, exceeding a previous record set in 1980, according to data the kingdom submitted to the Organization of Petroleum Exporting Countries. The group sees “a more balanced market” in 2016 as demand for its crude strengths and supply elsewhere falters.
OPEC said it expects expanding oil consumption to outpace diminished output growth from rival producers such as U.S. shale drillers, whittling away a supply glut. The strategy is taking time to have an impact, with crude prices remaining 46 percent below year-ago levels and annual U.S. production forecast to reach a 45-year high.
“Saudi Arabia is still pursuing a market-share strategy,” Torbjoern Kjus, an analyst at DNB ASA in Oslo, said by phone. “They need more oil domestically for air conditioning in the summer, so they could choose to either produce more or reduce exports. Clearly they choose to produce more.”
Brent crude futures fell 1.7 percent to $57.70 a barrel at 1:24 p.m. local time on the London-based ICE Futures Europe exchange, extending a 2.6 percent loss last week.
The pipeline unit of refiner Marathon Petroleum Corp. plans to buy MarkWest Energy Partners LP, the second-largest U.S. processor of natural gas, for about $15.8 billion in stock and cash.
The transaction represents a major expansion into pipelines and processing for Marathon, which created its pipeline unit MPLX LP in 2012, the year after it was spun out of producer Marathon Oil Corp.
The refiner has more than doubled in value since then as processors reap the rewards from low crude prices brought on by the shale revolution.
Almost 10,000 jobs in Scotland were created or supported by foreign investment last year, First Minister Nicola Sturgeon has announced.
With the number of inward investment projects increasing 17% in 2014/15, Ms Sturgeon said the figures show “just how successful Scotland is at doing business”.
Ninety-one projects created or safeguarded 9,659 jobs - a rise of almost 30% on the previous year - of which 3,192 were said to be high-value positions.
The three sectors which attracted the most foreign investment were technology and engineering (33%), oil and gas (16.48%), and finance and business services (15.38%).
Aberdeen Airport recorded a drop in annual passenger numbers last month.
In June, 323,832 passengers travelled through airport - a decrease of -5.7% compared to last year’s figure.
Helicopter traffic saw the biggest decrease, down -7.6% on 2014 levels, whilst fixed-wing traffic reduced by -5.4%.
Fugro has delivered a bespoke structural monitoring system for Exxon Neftegas to help monitor the structural integrity of its Berkut oil platform.
The site, in the Arkutun Dagi field, is one of the world’s largest floatover platforms and has been designed so that topsides are isolated from the base using FPB (friction pendulum bearings).
Fugro was commissioned to provide an integrated system which would be able to both monitor the seismic response of the platform and the performance of FPB’s.
The boss of MX Oil said the company had secured a share in a “world-class” asset after investing in the OML 113 licence offshore Nigeria.
Stefan Olivier said he did not see any challenges from acquiring a 5% share in the near-term producing licence, which includes the Aje Field.
The asset has already undergone flow tests with production expected from January 2016.
Subsea 7 has struck a deal with Cameron and Schlumberger company OneSubsea to develop and deliver integrated development solutions.
The move means the establishment of a worldwide non-incorporated alliance between the two firms.
Subsea 7 will work alongside OneSubsea to create development solutions through the combination of subsurface expertise, subsea production systems and susbsea processing systems.
BG Group has launched its second Australian LNG train after hitting a 1.5 million tonnes milestone.
BG confirmed it has started to load its first LNG onto a second production train at the Queensland Curtis LNG (QCLNG) facility in Australia.
China’s crude imports rebounded last month to near a record as the world’s second-largest oil consumer began filling tanks at a new strategic petroleum reserve site.
Overseas shipments rose to 29.49 million metric tons in June, a 27 percent increase from May when shipments were the least since February 2014, according to preliminary data released by the Beijing-based General Administration of Customs on Monday. Oil imports last month were equivalent to about 7.2 million barrels a day compared with a record 7.4 million in April, Bloomberg calculations show.
China’s crude imports rose as it began filling the second phase of emergency reserves in the eastern city of Qingdao that have a capacity of 3 million cubic meters (about 19 million barrels). Oil imports may climb in the third quarter from the previous three months as another storage site in the southern Chinese city of Huizhou is scheduled to open, ICIS China, a Shanghai-based commodity researcher, said July 1.
Tony Hayward has stepped into Genel Energy’s chairman role after Rodney Chase tendered his resignation.
Murat Özgül, previously president of Turkey and KRI, has since been promoted to chief executive and appointed to the board.
Hayward said: "Rodney has been a driving force in the establishment of Genel Energy as a respected London-listed company. It has been a great pleasure working with him, and on behalf of the Board and the Company I would like to express my sincere gratitude for his leadership through the IPO and over the past four years, which has helped make Genel the company it is today.
