North Sea oil is better off with the “broad shoulders” of the UK being able to stand behind it, the Prime Minister has said amid news of further falls in the cost of crude oil. David Cameron told MPs during Prime Minister’s Questions in the Commons that North Sea oil was a “vital” industry for the UK, adding “we should do everything we can to help it”.
Oil & Gas
JKX Oil and Gas has suspended its planned 2015 capital investment programme in Ukraine following sales restrictions imposed on private gas producers. The company said it would no longer carry out work until “economic parameter for investment improves”.
Galilee Energy has confirmed plans to drill a well at the Hoffer Prospect in Texas. The Hoffer B well was spud on January 6 and will now be drilled to a total depth of 4,430metres. This is expected to take between 40 to 60 days.
Carnavon Petroleum has confirmed the safe completion of a drilling campaign in Thailand. The L44/43 and L33/43 concessions had field production rates of 6,000 barrels of oil per day (bopd).
Maersk Training has entered into a global training agreement with Transocean. The deal will make the company responsible for administration of all and delivery of certain training for Transocean’s offshore crew for a period of at least five years.
As we ring in the New Year, let's take stock of where we are at with the oil markets. 2014 proved to be a momentous one for the oil markets, having seen prices cut in half in just six months. The big question is what oil prices will do in 2015. Oil prices are unsustainably low right now – many high-cost oil producers and oil-producing regions are currently operating in the red.
Maersk Oil said exploration drilling has started on the Tvillingen South Prospect in the Norwegian Sea. The prospect is located on the Haltenbanken and is approximately 28k southeast of the Kristin field.
Keppel Offshore & Marine has won two contracts worth $48.7million. The company’s subsidiary, Keppel Singmarine, will carry out work with Seaways to build a multi-task Anchor Handling Tug (AHT) vessel suitable for a number of offshore activities. It will also complete work for N-KOM (Nakilat-Keppel Offshore & Marine), a joint venture shipyard in Qatar, to provide technical services for the construction of a liftboat.
Lundin Petroleum has cut its expenditure for 2015 by 31% and said it would be focusing its sending on development projects. The company has set its development, appraisal and exploration budget would at $1.45billion. Development projects have been budgeted at $980million which represents a 30% decrease on forecast 2014 expenditure.
The energy industry insisted deep cuts in global oil prices were already being passed on to customers after Chancellor George Osborne announced a review of the impact on items such as fuel bills, air fares and the forecourt price of petrol. Ministers said concerned industries were being watched "like hawks" and officials were examining what action might be taken if a seven-year low in the global oil price was not adequately reflected in what the public was charged. Mr Osborne welcomed a move by four major supermarkets to cut 2p from the cost of a litre of petrol as the slump left a barrel of Brent crude trading at its lowest since May 2009, but said more action was required.
Energy services firm Hunting yesterday unveiled plans to sell its ship-broking division to an employee benefit trust (EBT), with a deal expected to be signed in the coming weeks. City analysts had previously identified EA Gibson Shipbrokers as a “non-core asset” for the FTSE 250 firm, although the timing of the potential sale is understood to be unrelated to the recent plunge in the price of oil. The company said: “The transaction is expected to complete by the 31 March and is conditional on a number of matters including the management of Gibson finalising structure and funding.
The Shell Petroleum Development Company of Nigeria Limited (SPDC) has agreed a £55million settlement with the Bodo community. Shell’s Nigerian subsidiary has made the payment in respect of two operational spills in 2008. The SPDC said the compensation will provide an individual payment for those affected who agree to the settlement payment totalling £35million.
President Barack Obama will not sign a bill introduced that would approve the Keystone XL oil pipeline, his spokesman said, as a top Democratic supporter urged the administration to seek a compromise. A bill to sidestep an agency review was the Republican’s first legislation introduced as they took control of both the House and Senate for the first time since 2007. The measure has enough sponsors to pass but not enough to override a veto.
Oil and Gas UK chief executive Malcolm Webb said his meeting with Scottish Labour leader Jim Murphy was "very positive". The MP has been on a visit to Aberdeen to meet North Sea industry leaders, offshore trade unions and city councillors amid a continued fall in the global price of oil. Mr Webb attended a meeting alongside the politician to discuss the current challenges facing the oil and gas industry.
Swala Energy has completed a 2D seismic programme over the Kilombero Basin. Swala confirmed its 58.5% owned subsidiary company, Swala Oil and Gas (Tanzania) Plc, has successfully completed its 430km 2D seismic programme over the Kilombero Basin in central Tanzania.
Scottish Labour leader Jim Murphy today called on the SNP government to establish a "resilience fund" to support crucial industries in times of crisis. Mr Murphy was speaking during a visit to Aberdeen to meet North Sea industry leaders, offshore trade unions and city councillors amid a continued fall in the global price of oil. The Labour MP expressed concern about the "human impact" of redundancies in the energy sector and the wider impact of a downturn on the local economy.
Oil major Chevron has made a significant oil discovery at the Anchor prospect in the Gulf of Mexico. The Green Canyon block 807 well number two encountered oil pay in multiple Lower Tertiary Wilcox Sands. It was spudded in August 2014 and drilled to a depth of 33,749 feet.
The Canadian Association of Oilwell Drilling Contractors (CAODC) has released its 2015 Drilling Activity Forecast, which projects a 10% decrease in activity. The forecast is that Canadian land-based drilling rigs will drill 10,354 wells next year. The uncertainty around pipeline construction was a determining factor in the activity outlook.
Two oil and gas firms have estimated a production increase on a project in New Zealand. Pan Pacific Petroleum and New Zealand Oil and Gas have completed a review of the increase in Tui reserves attributable to the Pateke-4H well.
Saudi Arabia, the world’s largest oil exporter, will keep a “solid will” and maintain the nation’s stability even with falling crude prices, King Abdullah said in a speech read by his crown prince. Saudi Arabia will enjoy “safety and stability,” according to a copy of the king’s speech read by Crown Prince Salman Bin Abdulaziz with Abdullah in the hospital for pneumonia.
Greka Drilling has been awarded a $45m contract for further work on a project in China. The venture will see 30 new LiFaBriC wells in the Shizauang South block in the Shanxi Province of China.
DOF Subsea has been given a Letter of Award (LOA) by an international oil company for work in the Asia Pacific region. The LOA is for an IRM contract which will utilise the Skandi Hawk vessel.
SacOil Holdings has started the first phase of its field development operations at its Lagia oil field in Sinai. The company has contracted Schlumberger through its subsidiary Mena International Petroleum Egypt to conduct the initial phase of development. It includes the hydraulic stimulation of the Lagia 6, 7, 8, 9 and 10 wells specifically targeting the intersected productive productive Nukhul geological formation.
A well drilled by Lundin Petroleum has come up dry in the Norwegian sea. The company, through its subsidiary Lundin Norway, had been exploring the hydrocarbon potential of the Kopervik prospect in PL625. The wildcat well 25/10-12S is located 175km west of Huagesund on the west coast and is 20km northwest of the Johan Sverdrup discovery.
Clean Energy Fuels has confirmed the sale of its majority interests in McCommas Bluff to Cambrian Energy for $40.6million. The sale also includes $3million in compensation, pending tests on the facility which are due to be finished early this year.