BP to Pay Rosneft more than £470million for part of Siberian oilfield
UK oil and gas giant BP will pay Russia's Rosneft $750million (more than £470million) for a stake in an east Siberian oil producer.
Oil & Gas
Petrofac lands more than £250million of repeat UK North Sea work
Energy service giant Petrofac said today its projects and operations business unit had secured contract renewals for UK North Sea work worth a total of about $400million (£252million).
Baron Oil reports positive results on Northern Ireland well
Oil explorer Baron Oil has reported positive results from drilling operations in Northern Ireland. An appraisal carried out by the firm found that the Islandmagee-1 well, which was drilled to a total depth of 1,753 metres, yielded 185.8 metres of Permian salt, with core samples sent to Germany for analysis.
Brazil’s Petrobras mulls sale of ethanol plants, report says
Brazilian state-run oil company Petrobras is looking to sell some of its biofuel assets as it tries to raise cash to cover investment for new offshore oilfields and service its debt, Reuters reported, citing two sources. The company, whose $125 billion of debt is the biggest of any oil company and the third-largest of any non-financial enterprise, plans to sell as much as $13.7 billion of assets by the end of 2016. The first source, who has direct knowledge of Petrobras' plans, said the company's ethanol plants, which transform sugarcane into fuel, were the most likely area of the business to be sold. Petrobras has nine ethanol plants and five biodiesel plants.
Marathon preparing to restart Galveston Bay FCCU, report says.
Marathon Petroleum Corp is preparing to restart the 60,000 barrel per day (bpd) gasoline-producing Fluidic Catalytic Cracking Unit 1 at its 451,000 bpd Galveston Bay Refinery in Texas City, Texas, said two sources familiar with plant operations. Marathon could begin restarting the unit, which has been shut since Jan. 13, as early as Friday, the sources said. If there are no problems with the restart, the FCCU is expected to be back in production by June 26.
Malaysian navy in contact with pirates aboard hijacked tanker Orkim Harmony
A Malaysian naval vessel has located the hijacked tanker Orkim Harmony in Vietnamese waters and is trying to persuade the pirates onboard to surrender, promising them they will be unharmed, Malaysian maritime officials said on Thursday. Both the crew and the cargo are safe, and the navy is in the midst of negotiations with the robbers, officials with the Malaysia Maritime Enforcement Agency (MMEA) said in a press briefing in Kuala Lumpur. Malaysia's Chief of Navy Admiral Abdul Aziz Jaafar said on his Twitter account that at least eight perpetrators were on board the Orkim Harmony armed with pistols and machetes.
Wintershall to sell package of offshore Norway assets for $602 mln
UK-based Sequa Petroleum has reached agreement to buy a portfolio of Norwegian offshore field interests for $602 million from Wintershall, the oil and gas subsidiary of BASF, the companies said on Thursday. Sequa said the transaction will be conducted by Oslo-based Tellus Petroleum Invest A/S, which it is also buying in a concurrent deal for $4 million plus 6 million shares in Sequa. The agreement with Wintershall will give Tellus interests in five fields - 20 percent of Knarr, 15 percent of Maria, 10 percent of Yme, 6.5 percent of Ivar Aasen and 4.5 percent of Veslefrikk.
Russia, Saudi oil ministers to mull cooperation agreement, report says
Russian and Saudi oil ministers plan to discuss a broad cooperation agreement on Thursday at an economic forum in Russia's second city of St Petersburg, two sources told Reuters.
Wood Group secures contract with Saudi Aramco for new centre
Wood Group has agreed a six year deal with state-owned Saudi Aramco to establish an offshore engineering centre of excellence in Al Khobar, Saudi Arabia.
Norway cuts rate to record low as oil slump rears recession risk
Norges Bank cut interest rates for a second time since oil prices collapsed to avoid a recession in western Europe’s biggest crude producer. The overnight deposit rate was cut by 25 basis points to a record low 1 percent, the Oslo-based central bank said. The decision was forecast by 16 of 17 economists surveyed by Bloomberg, while one saw no change. The bank signaled it may cut rates further.
Gatwick’s Horse Hill has 9.2billion barrels of oil
An independent report has confirmed Horse Hill’s reserves stand at 9.2billion of oil. The area, which is near Gatwick Airport, has 9.2 billion barrels of oil in its 55 square mile perimeter.
Wintershall turns up dry wildcat
Wintershall’s wildcat well has come up dry.
Wintershall sells Norwegian assets for $602million
Wintershall confirmed it will sell a group of its Norwegian assets to Tellus Petroleum for $602million.
The end of a megaproject oil sands era
The era of the megaproject in Canada’s oil sands is fading. Crude’s price slump, pressure to get off fossil fuels and tax increases in Alberta are adding to high costs and a lack of pipelines, prompting producers from Suncor Energy Inc. to Imperial Oil Ltd. to accelerate a shift to smaller projects. Companies are deferring new mines in favor of cheaper, bite-sized drilling programs that deliver quicker returns and require less labor. The moves will help reduce cost overruns and make Canadian companies more competitive with U.S. shale producers. The trade off will be reduced production growth and a smaller economic boost for the country’s oil patch.
Video: BG Group – Rigging a plan to sail through the storm
Troubles with ageing oil platforms and their associated infrastructure are just some of the causes of North Sea costs spiralling in recent years - a problem for operators even before the oil price crash started making some of the clunking old kit uneconomic to run. BG Group had a number of options to consider when it came to its Everest and Lomond platforms in the central North Sea. One of the plans hatched last year was to sell the fields along with BG’s Armada platform, although as the oil market started on the downturn this idea was shelved.
OGUK Conference: Infrastructure fears raised at conference
The North Sea energy industry faces a potentially crippling domino effect unless action is stepped up to save key infrastructure, a conference heard yesterday.
Asco ties up £50m deal with Marathon for North Sea support services
North-east oilfield support services firm Asco has struck a deal worth more than £50million with Marathon Oil UK for work in the North Sea. The five-year contract will see Asco provide a range of integrated oilfield services to support Marathon’s Brae field operations. Commenting on the award, Craig Lennox, Asco’s chief executive for Europe, said: “Asco has supported Marathon Oil for many years and we are delighted to secure a new long term contract with them.
Unions call off offshore strike ballot
Trade unions have shelved plans for a strike action ballot over North Sea working conditions following negotiations with industry bosses yesterday. Last night the Unite union said the Offshore Contractors Association (OCA) tabled an improved offer for offshore workers during the latest round of talks in Aberdeen. Unite regional officer Willie Wallace, said: “Today’s talks have been constructive and we have made enough progress to be able to put an improved offer from the OCA to our membership."
Russia’s Sechin says U.S., not OPEC, rules oil markets
Igor Sechin, the head of Russia's top oil producer Rosneft, said on Wednesday the United States is calling the shots on global oil markets, while the influence of OPEC has shrunk. The United States emerged with renewed vigour as a top producer thanks to its shale boom. By refusing to curb its output to prop up oil prices, OPEC has tried to maintain its share in the global market, shrugging off lower prices which damage U.S. producers.
Shell, Japan firms may get stake in Gazprom’s Baltic LNG, report says
Russian gas company Gazprom may offer up to 49 percent in its Baltic LNG project to a strategic partner and the most likely candidates are Royal Dutch Shell or a consortium of Japanese firms, Russia's Kommersant newspaper said on Wednesday. The agreement may be signed this week during an economic forum in Russia's second city of St Petersburg, it reported, quoting sources in the gas industry.
Oilfield services provider Calfrac halves dividend
Canadian oilfield services provider Calfrac Well Services halved its quarterly dividend to 6.25 Canadian cents per share, citing lower crude oil prices and weak demand for oilfield services. Calfrac's board also approved an additional capital of about C$12 million for 2015 to expand in Latin America, the company said on Wednesday.
Wind subsidy axe ‘could cost jobs’
Cutting public subsidies for onshore wind farms would result in job losses, rising energy bills and stranded communities, according to energy minister Fergus Ewing. The UK Department of Energy and Climate Change (DECC) is expected to announce measures to deliver on the Conservatives’ manifesto pledge to end any new public subsidy for onshore wind farms. Mr Ewing said he was concerned about reports that the new energy secretary Amber Rudd was considering closing the Renewables Obligation scheme - the main support for renewable electricity projects - a year early in 2016. The move is opposed by the Scottish Government and the industry, which has said it is prepared to take legal action to fight “drastic and unfair” changes.
Gazprom’s Turkish pipeline talks expected to resume next week
A meeting between the head of Russia's Gazprom's and Turkish Energy Minister Taner Yildiz is expected to be rescheduled for next week as both sides strive to finalise agreement on a proposed underwater gas pipeline to Turkey, a senior energy ministry official said on Wednesday. Turkey was named as Russia's preferred partner for an alternative to its planned South Stream pipeline to carry gas to southern Europe without crossing Ukraine after Russia aborted the project in December, citing EU objections.
National Oilwell Varco to cut 1,500 Norwegian jobs
National Oilwell Varco, the largest U.S. oilfield equipment maker, said it will cut its Norwegian workforce by 1,500 by the end of this year as low oil prices have reduced investments. It plans to cut 900 permanent jobs and 600 contractors, the firm said in a statement on Wednesday.
Sturgeon eyes oil tax freeze pledge
The UK Government should pledge not to increase taxes for the oil and gas industry for the next five years, Nicola Sturgeon has said. Scotland’s First Minister issued the demand at the annual Oil and Gas UK Conference in Aberdeen. She outlined three changes that she believes the UK Government should make to the current fiscal arrangements for the industry, which has been hit by plummeting oil prices and job losses in recent months.