Offshore and onshore contract workers employed by Wood Group will have their rates cut by 10% on the back of lower oil prices. The company said the move will be effective from January 2015. Salaries will also be frozen for the majority of UK-based Wood Group onshore employees.
Oil & Gas
Subsea 7 has been awarded a contract by the Hess Corporation for installation work on the Stampede Project in the Gulf Of Mexico. The deal includes work on flowlines, steel catenary risers, umbilicals, jumpers and associated subsea architecture which will tie-back two drill centres to a tension leg platform. The company said production would be via two 10-inch flowlines from each drill centre.
An oil services firm has admitted making corrupt payments to secure contracts in Kazakhstan. Aberdeen-based International Tubular Services (ITS) benefited from bribes made by a former employee to procure work from a customer in the oil-rich central Asian country, prosecutors said. The corruption was uncovered when the engineering company was being sold last year and the Crown Office said today its civil recovery unit had seized £172,000 under proceeds of crime laws.
Technip has won a €100million contract to build an onshore terminal in India as part of the intergrated development of the Vashishta and S1 fields. The award, from the ONGC (Oil and Natural Gas Corporation Limited), is one of the critical componenets in the development of the fields. The contract will include basic design, detailed engineering, procurement and fabrication of the new onshore terminal facilities which will be integrated into the existing terminal.
Nigeria’s two oil unions are set to meet with government officials for talks today as an indefinite strike aimed at curbing local fuel supply and exports entered a third day in Africa’s biggest crude producer. The impact of the strike has been restricted to domestic fuel supply with oil lifting and export terminal operations unaffected at the moment, Francis Johnson, president of the Petroleum and Natural Gas Senior Staff Association of Nigeria, or Pengassan, said from Lagos, the commercial capital. Union leaders will hold talks with the authorities today in Abuja, the capital, he said.
BLOBA Glasgow aluminium company owned by the former owner of Rangers Football Club said its systems had been successfully installed an accommodation module to be used on successfully installed on the BP Clair Ridge project. Bellshill-based Alphastrut, owned by Sir David Murray’s private investment firm, said its decking has saved BP around 54 tonnes in weight following the completion the seven figure installation deal.
Prime Minister David Cameron has defended plans to give new tax breaks to North Sea oil and gas firms - describing the industry as "valuable and vital". The UK Government announced a series of measures in this month's Autumn Statement to boost the offshore sector as it struggles to cope with falling prices and rising costs. Mr Cameron, the Conservative leader, was questioned at yesterday's liaison committee about how the tax cuts squared with the government's environmental targets.
The SeverEnergia joint venture involving Russian company Novatek and state-run Gazprom Neft has launched the second stage of the Urengoyskoye field. It lies within the Samburgskiy area and includes the second train of the gas condensate de-ethanization unit.
Statoil and its partners have decided to develop the Rutil discovery in the Gullfaks Rimfaks valley in the North Sea. The company said it could provide close to 80 million barrels of oil equivalent and extend the lifetime of the Gulfaks A platform. Investment costs involved with the project are estimate to be around $610million.
Iran is said to be offering its main crude grade to customers in Asia at the deepest discount in 14 years, taking a cue from Saudi Arabia in trimming price differentials. National Iranian Oil Co. cut its official selling price for January shipments of light crude to Asia to a discount of $1.80 a barrel below the regional benchmark as Middle Eastern producers vie to keep selling in the region, according to four people with knowledge of the decision. An official at NIOC’s crude-marketing department in Tehran declined to comment.
The chief executive of Subsea UK said next year’s event will allow the sector to address some of the on-going challenges within the industry. The event will be held in Aberdeen in February and expects to attract more than 6,000 delegates and around 200 exhibitors. Neil Gordon said there were “challenging times” ahead caused by the drop in commodity price and spiraling costs.
Australian firm Senex Energy has completed the Surat Basin asset swap. The firm has exchanged its minority interests in the QGC operated eastern Surat Basin gas permits ATP 574 and PL 171 for a 100% interest in and operatorship of three QGC JV western Surat Basin permits.
Armada Oil has terminated the terms of its existing credit facility amid the recent decline in oil price. The firm said it was working with its current lender to secure an extension of the terms of its existing credit facility and expects a resolution before the ed of the year. The loss of its financial facility has also halted work on the Bear Creek #1 project.
Woodside Petroleum has pushed back its schedule for the Browse FLNG (Floating Liquefied Natural Gas) project as it looks to take advantage of lower costs. The company said a revised schedule had been agreed. Woodside has already completed basis of design and key preparation work for the proposed development.
SeaBird Exploration has been awarded a contract extension for its Munin Explorer worth an estimated $4million. The vessel will be chartered for an additional two months from March next year.
Argentina is depending on two things to reverse a three-year energy shortfall that’s costing $6 billion a year: a shale formation bigger than Massachusetts and Miguel Galuccio, who has worked on drilling operations from North Dakota to Poland and India. President Cristina Fernandez de Kirchner appointed Galuccio chief executive officer of YPF SA (YPF) in 2012 after she seized control from Spain’s Repsol SA. Since then, Galuccio has tripled investment in the state-run oil company in an effort to reverse a decline in output that’s led to crippling energy shortages and drove Argentina’s energy imports to record highs. As oil prices plunge below $60 a barrel and global producers revise their spending, Galuccio is sticking with a strategy for the Vaca Muerta shale formation that relies on foreign partners with a long-term view.
Magnum Hunter Resources said it experienced a blowout of a well in Ohio. The company had previously drilled the Stadler 3UH wel, in the Utica shale, before temporarily plugging and abandoning it in preparation for the drilling of three additional Utica horizontal wells. However a spokesman said the it began to flow uncontrollably while recommencing operations.
Camac Energy Inc has been awarded a contract for the acquisition of a 3D seismic survey to Polarcus Limited. The survey will cover approximately 1,504 km2 in the Company’s A2 and A5 blocks offshore Gambia. The objectives of the seismic survey are to enhance the definition and maturation of potential prospects in the blocks and provide high-quality sub-surface images that allow high-resolution characterization of reservoirs.
Nigeria’s two oil unions began an indefinite strike that they say will curb exports from the West African nation responsible for pumping more than a quarter of the continent’s crude. “You will soon begin to see shutdowns of our oil flow,” Emmanuel Ojugbana, a spokesman of the Petroleum and Natural Gas Senior Staff Association of Nigeria, said. Ohi Alegbe, an Abuja-based spokesman for the Nigerian National Petroleum Corp. and the Oil Ministry, declined to comment on exports. Any reduction in pumping would coincide with a collapse in the price of Nigeria’s biggest source of revenue.
Technip has entered into an agreement with Air Liquide Global E&C Solutions Germany to purchase all of its Zimmer polymer technology business. The French services company said the deal will diversify and strengthen its portfolio of downstream technologies in its onshore division. It follows the announcement by Technip that its bid for CGG was unsuccessful.
Norwegian Energy Company ASA (Noreco) said production at the Huntington field has been further delayed. Work had been due to resume this month but the company said there had been an incident during restart of the CATS riser platform. A spokesman said it would be closed until at least Thursday.
Amec Foster Wheeler has been awarded a FEED (Front End Engineering Design) contract by Chevron to work on its Captain EOR (Enhanced Oil Recovery) development in the North Sea. The newly merged company said the contract award has not yet been announced for the work on the field, which is 68 miles offshore north of Aberdeen. The scope of the work includes FEED design of the proposed Bridge Linked Platform (BLP) which will be used to store, mix and pump polymer.
LGO Energy said its most recently completed well is producing at a rate of more than 1,000 bopd. The GY-670 well, at its Goudron field in Trinidad, was perforated earlier this month over a 177-foot interval of oil pay in the c-sands. During the last 48 hours the well has flowed at an average rate of 1,104bpd and the initial open-hole flow rate calculated for the well exceeds 6,000 bopd.
The onshore hydrocarbon producer, IGas, has encountered signs of shale gas at its Ellesmere Port exploration well in the North West of England. The company spudded the well last month and reached total depth ahead of schedule two days ago. IGas said the vertical exploration well encountered a thick section of the coal measure interval as well as a shale sequence, before penetrating the key Dinantian limestone geophysical marker.
Aker Solutions has secured a £120million contract for work on the Mariner oilfield development in the UK North Sea. The agreement will see the company provide engineering, construction and commissioning services during the development’s hook-up phase. Aker will carry out the work on behalf of Daewoo Shipbuilding and Marine Engineering on the development. The deal comes in addition to a five-year maintenance and modification service contract awarded by Statoil in June.