US oil drillers laid down the most rigs in the fourth quarter since 2009. And things are about to get much worse. The rig count fell by 93 in the three months through December 26, and lost another 17 last week, Baker Hughes Inc. (BHI) data show. About 200 more will be idled over the next quarter as US oil explorers make good on their promises to curb spending, according to Moody’s Corp.
As oil drops below $55 a barrel, speculation is growing that the central bank of western Europe’s biggest crude producer will need to cut rates again. A 54% slump in Brent crude since a June high has pummelled the offshore industry in Norway, where oil and gas make up 22% of gross domestic product.
Noble Drilling has been charged with environmental and maritime crimes for operating the drill ship Noble Discoverer and the drilling unit Kulluk in violation of federal law in Alaska in 2012. Under the terms of a plea agreement filed in the Alaskan federal court early last month, Noble Drilling (US) is pleading guilty to eight felony offences, will pay $12.2million in fines and community service payments, implement a comprehensive “environmental compliance plan”, and will be placed on probation for four years. In addition, Noble’s parent, Noble Corporation plc which is headquartered in London, has agreed to implement an environmental management system covering its fleet of offshore rigs, wherever they operate in the world.
On December 2, Chevron announced that oil and gas production had started at the Jack/St Malo project in the Lower Tertiary trend, deepwater US Gulf of Mexico. Jack and St Malo are among the largest fields in the US Gulf and were discovered in 2004 and 2003. They are located in Walker Ridge blocks 758, 759, and 678 in more than 2,100m of water, some 435km south-west of New Orleans. Drilled to a total depth of 8,839m (29,000ft), the Jack-1 exploration well encountered more than 350 feet (107 metres) of net oil sands pay in a Lower Tertiary Trend.
Fighter jets dispatched by Libya’s internationally recognised government bombed a Greek-owned tanker ship at an eastern city controlled by Islamist extremists, killing two crew members and wounding two, Libyan and Greek officials said. The bombing highlights the chaos that has gripped Libya since its 2011 civil war that deposed and killed dictator Muammar Gaddafi. Libyan officials apologised for the bombing as the Greek foreign ministry demanded compensation for the victims’ families and punishment for those behind the attack.
Total has confirmed the start-up of oil production from one of its North Sea projects. The Eldesk II project on the PL 018 license of the Norwegian North Sea is producing oil in line with its schedule that was approved in 2011. The company said the venture increase oil recovery of the Eldsk field and has a production capacity of 70,000 barrels of oil inequivalent per day.
AWE Limited has received government approval for a project at offshore East Java. The firm was given approval by the Government of Indonesia for the development of the Lengo gas project.
A project headed by Tamarack Valley Energy experienced a "record" exit production rate toward the end of last year. Canada-based Tamarack said its drilling program in the Wilson Creek contributed to a rise in production rates during the last two weeks of December. Rates averaged at 9,700 boe/d with all 10.9 net wells drilled in the fourth quarter were brought on production last month.
A new joint corporate broker has been appointed by LGO Energy as it gears up for 2015. FirstEnergy Capital LLP will take on the role with immediate effect with Old Park Lane Capital plc will continuing as joint broker.
Unconventional oil and gas (UOG) operations in the US that involve fracturing may be harming human health. By inference, research being carried out at the University of Missouri may sound alarm bells in the UK and wider EU where shale gas extraction (and oil) industry has yet to start. Up to now in the US, discussions have largely concentrated on potential air and water pollution from chemicals used in these processes and how it affects the more than 15million Americans living within one mile of UOG operations.
Singapore-based Dyna-Mac has been awarded a contract worth a preliminary estimate of $89million to construct FPSO topside modules and one flare tower for BW Offshore. The company’s prepatory work is for the vessel which will operate at Premier Oil’s Catcher oil fields in the North Sea.
Rockhopper Exploration has been awarded a 40% share in an offshore block in Croatia in a partnership deal with Eni. Block 9 is located in shallow waters of the Northern Adriatic gas province and contains the previously discovered Ksenija accumulation along with the Klaudija prospect. The company said the anticipated work programme consists of seismic acquisition, processing and re-processing during the first exploration phase, with the drilling of a well in the second exploration phase.
Gulf Keystone Petroleum said seven wells are now producing at its Shaikan production facilities. A further well is expected to come online this month in the Kurdistan region of Iraq where operations are taking place. The company said total daily production has been gradually increasing since last month, with the company’s 400,000 gross barrels of oil per day target being reached shortly before New Year.
Oil fell for a third day, extending its drop from the lowest close since 2009 amid speculation a global supply glut that’s driven crude into a bear market may persist this year. Futures slid as much as 2% in London, after losing 5.1% last week. Iraq, the second-largest producer in the Organization of Petroleum Exporting Countries, plans to boost crude exports this month, the oil ministry said.
Scotland’s electricity system could be powered almost entirely by renewable energy by 2030, according to a report by an environmental charity. WWF Scotland’s report uses independent analysis by an engineering and energy consultancy to test the Scottish Government’s policy to decarbonise the country’s electricity supply over the next 15 years. It found that an electricity system based on “proven renewables and increased energy efficiency” is a credible way of meeting the target.
A director of a North Sea oil company has been forced to step down after a bungle over the number of votes cast for his re-election at the firm’s annual meeting. The “proxy tabulation error” has only just been revealed – weeks after Antrim Energy shareholders voted on whether Gerry Orbell should continue on the board. Mr Orbell is a former chairman of the company, which is based in Calgary, Canada.
Oil’s biggest bust since the global recession was good for a few cases of whiplash. Just two months ago, Continental Resources Inc. (CLR), the shale driller founded by billionaire Harold Hamm, budgeted for $80-a-barrel oil and planned to spend $4.6billion in 2015. Six weeks later, with crude down 29% in the interim, Continental cut its 2015 budget to $2.7billion.
Statoil's Valemon gas and condensate field was officially brought on stream today. The North Sea venture is the Norwegian operator's first platform remotely controlled from shore. It will later transition to a "normally unmanned platform" when drilling is completed in 2017.
Subsea pipe specialist Flexlife returned to profit last year despite a small decline in annual sales. Its parent company, Flexlife Group, also narrowed losses, according to accounts filed at Companies House. Flexlife Limited saw turnover fall around £1million to £13.3million in the year to the end of March 2014. But the firm recorded a pre-tax profit of £452,461 compared to a £514,678 loss in the prior year.
An engineering services company has invested £150,000 in setting up a new testing division in Aberdeen. Enterprise Engineering Services (EES) says the new facility at Tullos Industrial Estate has enabled it to become a one-stop shop for design, fabrication, installation and testing services.
Oil and gas exploration firm BG Group received a boost today as it revealed the Egyptian government had paid it £225 million as the state seeks to repay outstanding debts to the energy industry. The group also said it was “working with the government on resolving the outstanding receivable balance” of £592 million. It comes after a year in which Reading-based BG has been dragged down by problems in Egypt as well as the tumbling oil price, and been hit by controversy over pay plans for its new chief executive.
Russian oil production rose to a post-Soviet record last month, showing how pumping of the nation’s biggest source of revenue has so far been unaffected by US and European sanctions or a price collapse for the commodity. The nation increased output 0.3% to 10.667 million barrels a day, according to preliminary data today e-mailed today by CDU-TEK, part of the Energy Ministry. The figure is for crude and condensates, an ultralight oil that yields a greater proportion of high-value fuels. Production averaged 10.58 million barrels a day for 2014, also a post-Soviet record.
Afren Plc settled a dispute with its former chief executive officer and chief operating officer who were fired after receiving payments without board approval. The UK oil and gas explorer secured $17.1million from former CEO Osman Shahenshah and COO Shahid Ullah, recovered $3million in legal costs and agreed not to pursue the matter in court, it said today in a statement.
Step Change in Safety has split from Oil & Gas UK. The safety organisation confirmed that as of today it will operate independently from the industry body. It is now wholly owned by its 137 member organisations and will be governed by its own board of directors.
Oil and gas workers could face cuts of up to 15% in the New Year it has been revealed. BP, Royal Dutch Shell, Total and Chevron have called for sharp reductions in the rates which contractors are paid. It comes just weeks after WGPSN said it would cut contractor rates by 10% and salaries would be frozen from January. According to reports, recruitment group Hays confirmed that the falling oil price has led to pay cuts for contractors.