Oil giant Royal Dutch Shell confirmed it would reduce its workforce by 6,500 jobs this year.
Shell’s chief executive Ben van Beurden said its landmark takeover of BG will act as a “springboard to change Shell into a simpler and more profitable company”.
Mexico began its annual program to lock in oil sales for the coming year as a shield against a further drop in prices, three people with direct knowledge said. Morgan Stanley, Citigroup Inc., JPMorgan Chase & Co. and Goldman Sachs Group Inc. are among the banks involved, said the people, who asked not to be identified because the process is private. Mexico’s hedging program is probably the largest undertaken by a national government, the chief economist for the country’s Finance Ministry said in 2012. The Latin American country has started buying the puts, which gives it the right to sell oil at a predetermined price, earlier than the usual period of late August to late September, the people said. They declined to provide further details, including the price level. Mexico’s hedging program has often roiled energy markets since its introduction in 1990-91. Spokesmen for Morgan Stanley, Citigroup, JPMorgan and Goldman Sachs declined to comment. Press officials at Mexico’s Finance Ministry said they won’t comment about any hedging until November, when Congress sets the public budget for the following year. Ricardo Medina, a spokesman for the central bank, which executes the hedging program, declined to comment.
Technip SA swung to a loss in the second quarter after Europe’s biggest oil-services provider took a writedown amid an industry downturn it expects to last for longer than anticipated.
The outcome of a consultation by EnQuest into an equal time rota will see the loss of a number of jobs – but less than had been previously estimated. Earlier this year the company revealed it may move to a three on, three off shift pattern in line with a number of other firms including Shell and Chevron. The decision was expected to see a reduction in positions from companies including KCA Deutag, Petrofac and Sodexo.
Unions have rejected proposals offered by the Offshore Contractors Association (OCA) for North Sea workers in a move which could increase the chance on industrial action in the North Sea. Both GMB and Unite were balloted on whether to accept a new deal put on the table last month. The result of the ballot from Unite members was 63.5% against and 36.5% in favour. It is understood the union will be consulting with members in coming days following the decision. It is understood GMB voted in favour of the proposals but as the union had fewer members balloted their vote has been outweighed by Unite. The OCA's chief executive Bill Murray said it was "extremely disappointed" by the move.
An oil firm has announced it is reviewing the bonus provision of 200 offshore workers. Expro is carrying out the review as a result of the ongoing oil price downturn. An Expro spokeswoman said: “The company has communicated with employees to explain the reason for this difficult decision, which is in direct response to the current tough operating environment.
To understand why U.S. oil production is so resilient, it helps to consider the maze of pipelines running out of Midland, Texas.
Lekoil has confirmed that first oil from its Otakikpo field in Nigeria will be delayed until autumn after drilling operations were halted for safety reasons.
Hess Corp, which sold off fueling stations and refineries to focus on production, reported its second consecutive quarterly loss after crude prices fell.
SgurrEnergy has expanded their Canadian base to as it looks to reap rewards from the growing business opportunities in the region. The company has moved into Montreal and Toronto following a recent expansion in San Francisco and California. As a result two new appointments have also been made by SgurrEnergy to help lead the new bases in the country. The addition by the Wood Group firm will build from the existing offices in Vancouver, British Columbia, Austin and Portland.
The company behind plans to extract gas from coal under the Firth of Forth has been accused of trying to “hold Scotland’s environment to ransom”. WWF Scotland has urged the Scottish Government to extend its moratorium on unconventional oil and gas developments to cover underground coal gasification (UCG), a technique that produces gas from underground coal seams. The SNP has also come under pressure from within its own ranks to expand the scope of the ban. It follows the publication of a series of letters from Algy Cluff, chairman and chief executive of Cluff Natural Resources, to Scottish ministers.
Industry experts are being urged to step forward and lead discussions on subsea challenges at next year’s Subsea Expo.
Northcote Energy has formed a joint venture in Mexico to develop an oilfield waste recycling facility.
Chevron Corp, the second-largest U.S. oil company, said on Tuesday it would lay off 1,500 employees, about 2 percent of its global work force, as it trims costs to offset declining crude prices. Nearly all of the layoffs will be in Texas, where the company has expanded in recent years to develop land in the Permian shale formation, and California, where Chevron is headquartered. Fifty international employees will be laid off and roughly 600 contractor positions will be canceled, the company said in a statement.
Atkins has confirmed its first quarter trading update is in line with expectations.
Novatek, Russia's No. 2 gas producer, made second-quarter net profit of 41.9 billion roubles ($703 million), up 31 percent year-on-year on stronger sales, it said on Wednesday. Analysts had expected the firm to post 38 billion roubles in quarterly net profit. The company said its revenues were at 112.2 billion roubles, up from 88.4 billion roubles in the same period last year.
Oil tycoon Algy Cluff warned Scottish ministers the day after a moratorium on fracking was confirmed that Scotland could risk losing £250million of investment. The multi-millionaire warned energy minister Fergus Ewing and Alex Neil that including his plans for underground coal gasification (UCG) in the moratorium would have an impact on Cluff Natural Resources (CNR) ability to “operate and invest” further in Scotland. CNR has ploughed ahead with plans to develop Britain’s first offshore UCG project in recent times, despite opposition from environmentalists, who feel the methods used are unsafe and require further testing.
Oil & Gas UK's Business Sentiment Index for the second quarter of 2015 published today shows that industry remains fragile but that companies’ outlook is improving.
Sparrows Group has expanded into the Malaysian market after forming a strategic relationship with a service provider in the region. The move will see the company work alongside Efficient Technology Sdn Bhd (Eftech) as it looks to treble its business in Asia Pacific over the next five years. Sparrows will offer services including offshore crane maintenance, crane hire, fluid power, inspection and cable and pipe lay products.
Wood Group PSN (WGPSN) is set to shed 200 positions across its offshore and onshore sites.
Subsea 7 confirmed reducing its workforce by 2,500 saved the company $400million.
Total is set to consult with staff over a potential move to an equal time rota. The decision to communicate with staff regarding a change to a three on, three off shift pattern comes after oil giant Shell confirmed it would be making the move earlier this week. Companies have been considering whether to adopt the shift pattern as they look to make cost savings following the decline in oil price.
Statoil has started its fast-track project for improved oil recovery from Gullfaks South (GSO) in the North Sea. The company aims to increase output from the area by an estimated 65 million barrels of oil equivalent. Production was started three years ago in the Gullfaks region after the project was approved.
Production costs of less that $10 per barrel are allowing LGO Energy to progress with confidence with its Goudron development in Trinidad.