The number of companies going bust in Scotland fell in the second quarter compared to the same period last year but was up compared to the first three months of 2015, new figures show. But while professional services firm KPMG said the figures were “positive for the majority of businesses”, it warned that the oil and gas industry is continuing to “struggle” due to the oil price slump. The food and drink, construction and care homes sectors are also faring comparatively poorly, according to the latest Scottish insolvency figures from KPMG.
Oil & Gas
As Technip’s project director for the £800million Quad 204 project, Richard Wylie is tasked with restoring one of the North Sea’s prized assets at a crucial time for the industry. The project involves the redevelopment of the Schiehallion field, 110miles west of Shetland, and the target is to squeeze another 25 years and 450million barrels of oil out of it. The BP-operated field started producing in 1998, but the old FPSO, which was towed away last year, now needs to be replaced along with subsea infrastructure.
Waste-management giant Augean said yesterday that contract wins for its North Sea energy service arm contributed to a strong first half performance for the group. Aberdeen-based Augean North Sea Services (ANSS) sealed a number of deals in June and July, including a first contract for the disposal of naturally occurring radioactive material that builds up on offshore drilling equipment. The group’s Radioactive Waste Services (RWS) division will work with ANSS on the contract, which was agreed with an unspecified major operator.
An Exxon Mobil Corp. discovery in the Atlantic Ocean off Guyana may hold oil and natural gas riches 12 times more valuable than the nation’s entire economic output. The Liza-1 well, which probably holds the equivalent of more than 700 million barrels of oil, may begin producing crude by the end of the decade, Raphael Trotman, the South American country’s minister of governance, said in an interview. The prospect would be on par with a recent Exxon find at the Hadrian formation in the Gulf of Mexico, and would be worth about $40 billion at today’s international crude price.
US producer Northcote Energy has confirmed hydrocarbons in its Lutcher Moore well in Louisiana.
Energy giants Statoil and GE have announced winners of a competition to find new ways of dealing with sand in shale gas production.
Ukraine increased its purchase of natural gas imports from Slovakia by 41 percent on Tuesday, boosting its storage supplies, transport monopoly Ukrtransgaz said. Cash-strapped Ukraine is now buying most of its natural gas from Slovakia after halting imports from Russia three weeks ago due to a pricing dispute. It was unclear whether the increase on Tuesday was due to price factors or other reasons.
Galicia Energy Corporation has exited from its 24% interest in the Bieszczady project in Poland.
Baron Oil is to undertake further exploration in Peru after receiving the backing of the Lima government and local communities.
New guidelines have been set by Oil and Gas UK for well abandonment in a bid to increase cross-industry understanding of issues surrounding the process. The industry body has made the move in a bid to continue improving safety and performance across the UKCS (UK Continental Shelf). The first guidelines were set just over 20 years ago with input from member companies and stakeholders.
Oil firms trying to sell off ageing North Sea fields are said to be considering shouldering hundreds of millions of dollars in potential dismantling costs in a bid to find buyers. According to reports, the decrease in spending brought on by the oil price decline, has triggered companies to increase efficiencies and sell or shut down assets which are no longer profitable. However despite a number of assets going up for sale in recent months, few deals have been completed.
CNOOC Limited has started production from the Luda 10-1 comprehensive adjustment project in the Bohai Sea off China. A wellhead platform has also been built at the oilfield in Liadong Bay, where there are currently 13 producing wells.
The company revealed in June it planned to reduce exploration activity and refocus on appraisal, development and production to secure operational cash-flow. In line with this decision, San Leon has relinquished four licences, in addition to PKN Orlen taking on its interests in several other blocks.
The builder of a ruptured Nexen Energy oil sands pipeline in Canada that caused one of North America's largest oil-related land spills said on Monday it had followed the design plans it was given for the infrastructure. Surerus Pipeline Inc, a contractor based in Fort St. John in British Columbia, "had no involvement in this project after the completion, so whatever Nexen's doing, they're doing," said Sean Surerus, vice president of the company, said in an interview. "The project was completed to the standards. We were the installers. ... We had no design capacity in the project."
Mexican state oil company Pemex reached a $295 million settlement with a group including German industrial conglomerate Siemens in a longstanding dispute over a refinery project, a person familiar with the matter said on Monday. The deal was originally announced in March but did not give details of the final settlement. A Mexican official close to the negotiations said that Pemex had agreed to settle for $295 million. Earlier in the day, Pemex said in a statement that the deal struck definitively ends the 14-year-long dispute, but it did not give a sum.
A consortium led by Otto Energy is set to drill a deepwater exploratory well in the South China Sea. The company has a 78.18% interest in the permit issued by the Phillipine’s Department of Energy.
Oilex has reported better than anticipated results from its recently on-stream Cambay-73 field in India.
Technip has secured a project management services contract with Trans Adriatic Pipeline (TAP) to transport gas from the Shah Deniz field to the European market.
Total has started production from a new development on its deep offshore operated Block 17 off the coast of Angola. Dalia Phase 1A is expected to develop additional reserves of 51Mb (million barrels) and will help contribute 30,000 barrels per day to the block’s production. Arnaud Breuillac, president of exploration and production, said: “The Dalia FPSO came on stream nearly nine years ago and with the addition of Phase 1A will still produce around 200,000 b/d. It is the latest milestone in the success story of Block 17, Total’s most prolific license with cumulative production reaching two billion barrels in May 2015.
Egdon Resources has revealed encouraging results from the pumped test carried out at the Wressle-1 oil and gas discovery in licence PEDL180 in England. The company said assessments carried out over the Penistone flags zone 3A showed a production rate of more than 180 barrels of oil equivalent per day. Previous initial testing at the Ashover Grit, the Wingfield Flags and the Pensitone Flags had been carried out but due to a problem with downhole testing equipment, test operations were switched to focus on the shallower Penistone region.
The oil guru who predicted last year’s rout said $100-a-barrel crude is likely to return within five years as faltering supply fails to meet demand. Gary Ross, the founder of consultants PIRA Energy Group, said oil markets aren’t nearly as oversupplied as many believe and spare capacity is tight since Saudi Arabia is pumping all the crude it can without new drilling. “Current prices are unsustainable,” he said Monday in an interview in London. “It’s hard not to see oil hitting $100 a barrel at some point in the next five years.”
Halliburton has signed a joint venture with BlackRock for $500million to help fund drilling of existing shale wells in the US. The decision is the first such move by a major oilfield services provider at a time when oil producers have been shying away from drilling new wells. Halliburton has said it expects to see an “uptick” in activity – including refracking – later this year and a meaningful recovery in 2016.
China is set to become Asia’s nuclear powerhouse as it is predicted to surpass South Korea and Russia in generating energy capacity by 2020. The country has been increasing its nuclear output in recent years which, according to new analysis, it plans to leverage so it can take an “ownership role” throughout the entire supply chain. Data from the EIA (Energy Information Administration) shows nuclear output currently makes up slightly more than 2% of the country’s total power generation.
Maersk Drilling has won a $523million contract extension with oil major BP for the use of a drilling rig on the Shah Deniz field. The company said the move is a continuation of an existing agreement which was set to expire in May 2016.
Erin Energy has begun shooting a 3D seismic survey off the coast of The Gambia. The work, through its subsidiary Camac Energy Gambia Limited, will be carried out using the Palarcus Alima vessel. The survey is expected to take 50 days to complete and will cover approximately 1,500 square kilometres on Erin Energy’s A2 and A5 blocks.