Oil & Gas

Oil & Gas

As one corruption scandal unfolds, another is just getting started in Brazil

22/12/2015

In the shadow of Brazil’s once-mighty oil giant, another state-run behemoth is trying to get ahead of the nation’s biggest-ever corruption scandal to avoid the fallout that has already crippled more than a dozen companies. A team of lawyers and specialists hired by Centrais Eletricas Brasileiras SA, known as Eletrobras, started reviewing Latin America’s biggest electric utility in June to determine whether it has had any losses from graft, according to a regulatory filing. Since then, the internal probe has swelled to involve more than 100 investigators, $15 billion of investments, 10 subsidiaries and three of Brazil’s biggest power projects, said a person with direct knowledge of the matter.

Oil & Gas

Total admits breaching offshore regulations on Elgin platform

22/12/2015

Oil firm Total has admitted breaching offshore regulations which led to a major gas leak on one of its North Sea installations. In March 2012, all 238 workers on board the Elgin platform had to be evacuated as gas started spewing out of the G4 well at the rate of two tonnes an hour. At one point, about seven million cubic feet of gas was leaking from the platform every day.

Oil & Gas

Forum Energy Technologies product line wins string of new orders

22/12/2015

A product line owned by Forum Energy Technologies has won a string of new multi-million dollar contracts in just one month. AMC Engineering has been given multiple orders for the manufacture and supply of its fully rotational torque bucking unit, scheduled for delivery next year. The units have been bought by a number of multinational oil companies in the Middle East, South America and Caspian regions.

Oil & Gas

Shell-BG deal not yet in the bag amid fears of further oil slump

21/12/2015

Royal Dutch Shell Plc is on the brink of pulling off its biggest acquisition. Yet the widening discount of target BG Group Plc to the offer price shows that a further steep drop in oil prices could still put the deal in doubt. BG traded 12.5 percent below Shell’s bid price on Dec. 18, the biggest discount since early September, compared with a 6.4 percent gap on Dec. 4. While BG shares soared when news of the deal broke eight months ago, they’ve since tumbled more than 20 percent as oil prices slumped.

Oil & Gas

Transerv achieves sustained gas flow from Warro-6 well

21/12/2015

Transerv said sustained gas flow and a continuous gas flare have been achieved from the Warro-6 well in Western Australia during the initial clean-up phase of the well. The company said the flow rate has yet to be measured but the early stage result is considered to be a significant development in its strategy to establish Warro as a major economic gas project. Warro is Australia’s largest undeveloped gas field with resources of 11.6trillion cubic feet of gas in place.

Oil & Gas

African Petroleum and Ophir Energy strike production sharing deal

21/12/2015

African Petroleum has signed a new production sharing contract with Ophir Energy covering the company’s CI-513 licence area in Cote d’Ivoire. The new contract means Ophir Energy has a 45% interest and is operator of the asset while African Petroleum holds a 45% interest and the regions National Oil company the remaining 10%. Ophir Energy will make a $16.9million contribution towards African Petroleum’s back costs in relation to the block.

Oil & Gas

Saudi Arabia said to weigh selling state-run entities stakes

21/12/2015

As global oil prices tumble, Saudi officials are considering plans to sell shares in state-owned entities and companies, according to two people with knowledge of the discussions, in an attempt to find alternative sources of revenue. The government may sell stakes in ports, railways, utilities and airports, the two people said. Hospitals may also be privatized, one person said. Saudi officials weren’t immediately available for comment. With oil prices down to an 11-year low, Saudi officials are accelerating efforts to reduce the economy’s reliance on revenue from crude exports. They may have missed their best chance when prices were higher, according to economists and an International Monetary Fund study that highlighted how successful attempts depended on policies put in place before the slump.