The US has a more than 50 percent chance of lifting the ban on most crude oil exports within the next two years, potentially narrowing the gap between domestic and international crude prices, according to Bank of America Corp. The collapse in domestic gasoline prices has reduced the political cost of tackling the issue, while the prospect of economic sanctions imposed on Iran being removed while the US’s self-imposed ban remains in place seems an unlikely pairing, the bank said in a report dated Thursday.
Scotland-based energy firms will expect the Middle East to become vital to their operations in terms of market share over the next few years, according to a professional services firm. KPMG surveyed more than 30 senior executives from oilfield services and energy-focused technology businesses at a seminar in Aberdeen last week which highlighted business opportunities and risks in the region. The Middle East represents an enormous market for UK-based businesses in the industry with opportunities spanning oil and gas, power generation and renewables.
A subsea engineering and training firm has completed a contract with Decom North Sea (DNS). The deal enabled the UK-based company to identify pioneering methods of salvage and re-use options for concrete subsea mattresses, the findings of which were presented to industry members yesterday. Nigel Jenkins, DNS chief executive said: “This project was implemented in direct response to our operator member requests and Jee’s findings have been eagerly anticipated.
The shortlist of contenders for honours at the Press and Journal’s inaugural celebration of 50 years of operations in the North Sea has been unveiled. Thirteen companies and four individuals have emerged as potential winners of the newspaper’s first Gold Awards. The recipient of the first hall of fame accolade will also be unveiled during the ceremony at the Marcliffe Hotel and Spa.
The UN’s atomic agency will be reporting a standstill in attempts to probe allegations that Iran is working on nuclear arms, in an assessment later today, diplomats have said. The International Atomic Energy Agency reports regularly on Iran’s nuclear programme, but the upcoming summary is particularly important because its investigation figures in an emerging deal meant to restrict Tehran’s nuclear activities in exchange for sanctions relief.
He takes over a nation in crisis, with an Islamic uprising that has made 1.5 million people homeless and coffers emptied by massive corruption. Similar crises confronted him when he ruled briefly as a military dictator in the 1980s. The 72-year-old says a similar prescription more judiciously imposed by a “born-again democrat” can heal the woes of Africa’s biggest nation, economy and oil producer.
China took a step closer to adding oil futures to its domestic commodities markets as the world’s second-biggest consumer seeks greater influence in determining the price of raw materials. The Shanghai International Energy Exchange will start yuan-denominated crude futures in the city’s free-trade zone at the end of this year, Lu Feng, an official at the bourse, said at a conference Friday. The contract will trade in 100-barrel lots, with an American Petroleum Institute gravity of 32 degrees and sulfur content of 1.5 percent, he said. The Shanghai International Energy Exchange will start yuan-denominated crude futures in the city’s free-trade zone at the end of this year, Lu Feng, an official at the bourse, said at a conference Friday. The contract will trade in 100-barrel lots, with an American Petroleum Institute gravity of 32 degrees and sulfur content of 1.5 percent, he said.
Soma Oil & Gas Holdings Ltd., chaired by former U.K. Conservative Party leader Michael Howard, has proposed a deal with the Somali government that may grant it as much as 90 percent of the country’s prospective oil revenue. A draft production-sharing agreement, obtained by Bloomberg from an official close to the negotiations, sets the state’s share of revenue on the first 25,000 barrels per day at 10 percent if found at a depth of greater than 1,000 meters (3,281 feet) and when oil costs less than $70 a barrel. If output exceeds 150,000 barrels, Somalia’s take rises to 30 percent. Crude for delivery in June fell 0.4 percent to $57.30 a barrel at 4:45 p.m. in London on Thursday.
North Sea crudes are trading at the biggest discount to the regional benchmark in more than six years amid a surplus of cargoes. Forties, the largest of the benchmark North Sea crudes, sold Thursday at the steepest discount to Dated Brent since 2008, according to a Bloomberg survey of brokers and traders monitoring the Platts trading window. Ekofisk traded Wednesday at the lowest level since at least 2009. Delayed maintenance work unexpectedly increased the volume of North Sea crude available in June, while unsold Nigerian cargoes remain for July, according to Eugene Lindell, a senior analyst at Vienna-based consultant JBC Energy GmbH.
Ithaca Energy has misled shareholders by hiding “material facts” related to its Greater Stella Area (GSA) development, the Canadian lawyer at the heart of a lawsuit against the North Sea oil company said last night. Toronto-based Andrew Morganti said he was pursuing a class action on behalf of investors who bought Ithaca shares between August 12, 2014 and February 25, 2015. He was speaking after Ithaca, which is Canadian owned but has its headquarters in Aberdeen, revealed it had received a statement of claim “from a law firm that advertises itself as undertaking investor lawsuits”.
OneSubsea has been awarded a $330million contract for subsea production systems relating to a gas project offshore North Africa. The scope of the supply for the 13-well development includes subsea production equipment, tooling and installations and commissioning services.
Amec Foster Wheeler has been awarded a pre-FEED (front-end engineering design) contract worth $3.8billion for the Beaco Liquefied Natural Gas (LNG) plant. The contract was awarded by the Government of Timor-Leste. The scope of work includes concept selection srudies, development of technical design and development of procurement and construction strategies.
SK Innovation, which owns South Korea's biggest refiner, said it plans to raise investment in US shale fields. The company said in a statement it wanted to expand its shale gas fields in both Oklahoma and Texas, which it acquired last year, into nearby areas.
PetroSA has suspended its top three executives amidst declining revenues. According to reports, South Africa's state oil company has also made the move as a result of poor investments and a failed bid to enter the fuel retail market.
A tornado in Texas has left three people injured after hitting a natural gas drilling rig in Texas. According to reports, one victim suffered minor injuries, another had non-life threatening injuries to his face and a third had suffered an injury to their abdomen.
A drone firm specialising in the oil and gas industry has been boosted by venture capital investment worth more than £2.5million. Sky-Futures, which is opening a new, larger office in Aberdeen on Monday, has also been backed by a US fund specialising in drone technology. The firm was founded in 2009 by James Harrison and Chris Blackford who operated drones in Iraq and Afghanistan while in the British Army.
Shell’s decision to remove the topside of its Brent Delta platform in one has shaved off about a million hours of high-risk offshore work, a senior manager from the British-Dutch oil major said in Aberdeen yesterday. Shell said in February it would seek approval for the Pioneering Spirit, thought to be the largest ship ever built, to lift and remove the topside in one piece, shunning more traditional methods which involve cutting installations into smaller sections.
Ithaca Energy said it has received a statement of claim from a law firm regarding work on its Greater Stella area asset in the North Sea. The company said the claim relates to a reported misrepresentation of information regarding the completion of modifications at a floating production in the North Sea.
Premier Oil said a further oil discovery has been made in the Isobel deep exploration well in waters off the coast of the Falklands. The find is believed to have similar properties to the discovery which was made at the Sea Lion project. Premier exploration director Andrew Lodge said:"This is an important play opening discovery in the previously unexplored southern area of Licence PL004.
Northern Alberta firefighters are battling a wildfire that has moved within 5 kilometers of Cenovus Energy Inc’s oil sands operations. The Cold Lake Air Weapons Range blaze is spreading in the direction of oil and gas operations and threatens plants run by Cenovus and Canadian Natural Resources Ltd., Scott Long, an executive director at the Alberta Emergency Management Agency, said in a press conference Wednesday. Firefighters put in containment and protection guards to keep it from getting closer, he said. Wildfires have prompted the shutdown of 230,000 barrels a day of oil-sands output, about 10 percent of Canada’s production.
Crippling fuel shortages, power cuts, slowing economic growth and Islamist militants wreaking havoc. Muhammadu Buhari is taking on a tough job when he’s sworn in as Nigeria’s president on Friday. Former military ruler Buhari, 72, swept incumbent Goodluck Jonathan from office in March elections by pledging to end endemic corruption and Boko Haram’s rebellion in the north. His stewardship of Africa’s biggest oil producer, this time as elected president, may depend on the price of crude, which supplies the government with more than two-thirds of its income.
Four months into oil’s rebound from a six-year low, the tanker market is sending a clear signal that the rally is under threat. A sudden surge in demand for supertankers drove benchmark charter rates 57 percent higher in the two weeks through May 20. OPEC will have almost half a billion barrels of oil in transit to buyers at the start of June, the most this year, while analysts say about 20 million barrels is being stored on ships in another indication the glut has yet to dissipate. The Organization of Petroleum Exporting Countries is pumping the most oil in more than two years, determined to defend market share rather than prices.
Oil & Gas UK and industry regulator the Oil and Gas Authority (OGA) have both welcomed the energy bill announced earlier today. The Government introduced its energy bill which included a raft of new measures aimed at increasing energy security and boosting domestic oil and gas production, including giving the OGA the powers to create a robust, independent regulator and enable it to maximise the economic recovery of oil and gas from UK waters. The Conservatives also want to see a change in the law which will remove the need for the Energy Secretary to approve large wind farms of more than 50 megawatts (MW) in England and Wales. Andy Samuel, Chief Executive of the Oil and Gas Authority said:“We welcome the Energy Bill announced at today’s State Opening of Parliament, which will give the Oil and Gas Authority the powers it needs to become a robust, independent and effective regulator, and enable it to maximise the economic recovery of oil and gas from the UK Continental Shelf.
Protesters in Nigeria said they had shut down six Idu oilfield wells run by Niger Agip Oil. Niger Agip Oil is a unit of Italian oil major Eni.
Total said it has achieved its first significant milestone after producing a cumulative two billion barrels from block 17 offshore Angola. The group currently operates four FPSO (Floating Production Storage and Offloading) units on the major production zones of the block – Girassol, Dalia, Pazflor and CLOV.