A major offshore firm which employs 1,000 people in the North Sea announced it was axeing 6,000 jobs worldwide. Technip said the move was part of plans to slash costs by £600million amid the “prolonged” and “harsh” oil slowdown. The company said it was too early to say exactly where the cuts would be made, but they represent about 16% of its global workforce. But it also insisted it remained committed to investing in new technology and projects across all over the world.
Oil & Gas
French oil industry engineering and construction group Technip will cut 6,000 jobs and book a 650 million euro ($719 million) restructuring charge as it steps up cost-cutting.
A maiden decommissioning contract for Middle East firm Gulf Marine Services (GMS) spells the end for oil and gas assets in the southern North Sea. The assets were not named by GMS and the Abu Dhabi-based firm would not say who its revised contract is with, but it is thought the work involves a jack-up accommodation barge – the GMS Endurance – currently on hire to US company ConocoPhillips. Houston-based ConocoPhillips did not respond to inquiries yesterday. GMS said one of its large class advanced self-propelled self-elevating support vessels (SESVs) was moving from well service and maintenance work to support decommissioning this summer. It has been under contract to the client for southern North Sea work since the third quarter of 2012. The sudden switch to decommissioning activity cuts short well service and maintenance work that was expected to continue to at least the first quarter of next year.
It’s about safe and cost effective delivery of projects from exploration through to decommissioning, providing well management and performance improvement related activities
Dana Petroleum has said it is playing “the long game” on its flagship Western Isles project after confirming cost overruns had reached $400million. First oil on the project has been pushed back until 2017 after it emerged the project price tag has reached $2billion. A spokesman for the firm stressed the majority of the costs could be attributed to ensuring safety standards are met in the development of the project’s FPSO.
Tenaris has netted a contract to work on Statoil’s massive Mariner project in the North Sea which will lead to the creation of up to 20 jobs in Aberdeen. The tubing and casing manufacturer will provide connections as well as associated services from its UK base in Aberdeen. Last month, Statoil awarded Baker Hughes a contract for production chemicals and services for the Mariner field.
In Iran’s push for a nuclear deal, it’s had few better allies than Moscow. But if an agreement is reached this week, President Vladimir Putin’s regime will have at least one reason to reflect on its support. Russia, which vies with Saudi Arabia and the U.S. to be the world’s largest oil producer, has the most to lose when Iran returns to the global energy market, according to a dozen analysts and executives at oil companies, banks and trading houses interviewed by Bloomberg.
Ophir Energy will close almost half of its offices and reduce its headcount as it looks to streamline costs following its acquisition of Salamander Energy earlier this year. The move was made as chief executive Nick Cooper admitted the company faced a “tough time” in the commodity cycle. However the company’s head insisted Ophir continued to have a strong balance sheet despite the changes.
OGN Group has launched a new pipework division to deliver specialist fabrication services. The Tyneside engineering firm will deliver pipework, fabrication and installation from its facilities in Wallsend.
Offshore marine and engineering specialist Aqualis Offshore has been contracted by Perforadora Mexico to support with the transportation and installation of a platform rig offshore Mexico.
Plexus Holdings has agreed a deal to catapult its technology into the Chinese marketplace. The company, which produces its proprietary POS-GRIP® friction-grip method of wellhead engineering, has reached a collaboration agreement with China Oilfield Services Limited to explore opportunities in shallow water subsea and crossover wellhead production systems for oil and gas field activities.
Unions have called on the Scottish Government to support a manufacturing yard in Stornoway at risk of being mothballed. The GMB and Unite have written to First Minister Nicola Sturgeon asking for support to attract contracts to the Arnish yard. The fabrication yard is operated by Burntisland Fabrications (BiFab), which also operates two yards in Fife.
Europa Oil & Gas added £1.4million to its fundraising pot in a bid to sustain its future exploration plans. The firm issued 20,000,000 new ordinary shares as part of its strategy to secure funding to cover the start-up costs of its Wressle discovery.
Statoil has awarded Baker Hughes Norway a £119million (NOK1.5billion) contract for its Johan Sverdrup development.
No one can accuse the Norwegian government of being greedy when it last week decided on the ownership stakes in the giant Johan Sverdrup oil discovery. After months of deliberation, the Petroleum and Energy Ministry’s decision meant it took away as much as 15 million barrels of oil from Petoro AS, the state-owned oil company. The other loser was Det Norske Oljeselskap ASA, which forced the government to arbiter after disagreeing with the field’s other partners. They include Statoil ASA, Lundin Petroleum AB and A.P. Moeller-Maersk A/S. The move to cut Det Norske’s stake, and in the process its own, was surprising since it could have approved the initial deal, said Kjetil Bakken, an analyst at Carnegie ASA. “That’s a bit odd,” he said in an interview Friday. “You could wonder if there’s an element of retribution here, or at least a very strong signal to the entire industry to please refrain from bringing this sort of dispute to the ministry.”
Brent slid below $60 a barrel for the first time since April amid speculation Greece’s rejection of austerity measures will prompt its exit from the euro area. Futures dropped as much as 1.6 percent in London, falling for a second day. Sixty-one percent of voters backed Prime Minister Alexis Tsipras’s rejection of further spending cuts and tax increases. U.S. Secretary of State John Kerry tempered expectations that a nuclear deal with Iran is imminent as diplomats meeting in Vienna work toward a Tuesday deadline. Oil last week slumped the most since March amid speculation the Greek crisis threatens Europe’s economic stability and growth, prompting investors to eschew riskier assets. Iran, the fourth-largest member of the Organization of Petroleum Exporting Countries, has estimated it could double crude exports from about 1 million barrels a day within six months of sanctions being lifted. “We’ve seen a bit of a capitulation in oil,” Ric Spooner, a chief analyst at CMC Markets in Sydney, said by phone. “The situation in Greece has a confidence impact on demand. A nuclear agreement with Iran represents a negative risk event for oil in terms of the possible significant increase in supply.”
Dana Petroleum’s flagship Western Isles oilfield development is running late and is now not expected onstream until the second half of 2017. That’s two years later than originally billed when the project was approved by the Department of Energy & Climate Change in December 2012. It should have been onstream late Q3/early Q4 this year, based on the original timescale. Energy understands too that the project is massively over the original and apparently very aggressive $1.6million sanction budget and may come in at around $3billion.
Chancellor urged to tackle "recession in confidence" as North Sea downturn affects tens of thousands in north east Chancellor George Osborne was urged last night to use his first all-Tory Budget to tackle a “recession in confidence” in the North Sea sector which is hitting the north-east economy and tens of thousands of people who depend on the industry for a living. Mr Osborne will deliver his Budget on Wednesday – and north-east businesses have called on him not to stand still after pledges made to the industry during the run-up to the general election. They expect him to build on the £1.3billion oil and gas support package he introduced in March.
A pilots' union is considering whether to appeal a landmark legal decision to release the black box recorder from the Super Puma which crashed off Sumburgh in 2013 killing four oil industry workers. The British Airline Pilots' Association (BALPA) is due to announce this week whether it intends to try and block the release of the recordings to prosecutors. Earlier, Lord Advocate Frank Mulholland successfully argued at the Court of Session that the black box should be released to the Crown Office in order to speed the investigation into whether any criminal proceedings should be brought in connection with the crash. Sarah Darnley, 45, from Elgin, Gary McCrossan, 59, from Inverness, Duncan Munro, 46, from Bishop Auckland and George Allison, 57, from Winchester died when the Super Puma crashed two miles off the coast at Sumburgh, in August 2013.
Dana Gas, one of the largest oil and gas investors in Iraq's semi-autonomous Kurdish region, said on Sunday that it had obtained a favourable ruling from a London arbitration tribunal in its dispute with Kurdistan authorities. The Abu Dhabi-listed firm, which leads a consortium of investors, had filed an arbitration case in London in October 2013 against the Kurdistan Regional Government (KRG), seeking to confirm its contract rights and to obtain payments for products which it had delivered.
Egypt has raised the prices it pays Eni and Edison for the natural gas they produce in the country, an official with state-owned gas company EGAS said on Sunday. The agreements mark the latest move by Egyptian authorities to improve terms for foreign oil and gas businesses in the hope that more competitive pricing will encourage investment in the energy-hungry country.
A strong order book could not prevent Aberdeen-based procurement services firm Gas and Oil Technology (GOT) going bust, with 19 jobs lost amid the oil price downturn. Work ground to a halt at GOT because the firm did not have enough stock to fulfil its orders, despite investing heavily in infrastructure in recent years, administrators from KPMG said yesterday. Nineteen of GOT’s 23 employees have been let go with immediate effect, with the remaining four staying on temporarily to help wind down the company.
Exxon Mobil has ended its oil exploration in Madagascar after disappointing findings in its off-shore blocks, the Malagasy Mining and Petroleum Minister said on Friday. The U.S. company had no immediate comment. Exxon's affiliates resumed exploration in Madagascar in 2013 after a four-year pause due to a force majeure declared after the 2009 coup on the Indian Ocean island.
A labor union that orchestrated a complete shutdown of France’s refineries in 2010 failed to gain support for a nationwide strike at oil plants this week in a sign its influence is waning. The Confederation Generale du Travail had called for a walkout at refineries, oil depots and import terminals to protest against a plan by Total SA to halt crude processing at La Mede plant in southern France. There was no labor action Thursday at refineries other than La Mede, where a three-week strike has idled operations, Total said. “The CGT is losing ground in its traditional bastions of power like energy and chemicals,” Bernard Vivier, director of Paris-based researcher the Higher Institute of Labor, said in an interview. “France’s social climate isn’t one of revolt these days but rather of resignation.”
The bulk of the money from BP Plc’s record settlement will go to the five states along the Gulf of Mexico whose shores were blackened in the 2010 oil spill.