A Scottish renewables firm testing a wave power device on Orkney has gone into administration after failing to find a financial backer. The board of Pelamis Wave Power, whose "sea snake" energy generator is undergoing tests at the European Marine Energy Centre (EMEC), said it had "reluctantly" called in administrators "to assess the options for securing the future for the business and employees of Pelamis".
Engineering and defence giant Babcock International lit a £330million fuse under its share price yesterday after revealing "good growth" in its core business and a profits boost from Avincis, the owner of North Sea helicopter firm, Bond. The firm, whose largest customer is the Ministry of Defence (MoD), pleased investors when it said its operating profits in the first half of the year were boosted 39% to £239.5million with the helicopter business, rising 10% on like for like terms excluding the performance of Avincis. Peter Rogers, chief executive, said the £1.6billion deal to acquire Avincis had strengthened the UK firm's international position. He added: "We achieved strong organic growth in both revenue and profit, with all our existing core businesses continuing to move forward. "Avincis made an excellent start under our ownership and has fulfilled our expectations at the time of acquisition."
Talisman Sinopec is splitting its North Sea business in two as it undertakes a “major transformation” of its operations in the face of spiraling costs and aging platforms and infrastructure. The firm, which is a joint venture between Calgary-based Talisman Energy and Chinese state-owned Sinopec, said the company would be divided into an operations division holding some North Sea assets and a “late life asset division”.
A leading oil and gas company has cancelled Christmas parties for thousands of workers – because bosses fear upsetting colleagues who are losing their jobs. Aker Solutions, which employs more than 2,000 people in Aberdeen, called a halt to its annual festive celebrations to show “sympathy” with hundreds of staff in Norway who have been affected by cutbacks. The company is shedding posts in Stavanger, Bergen, Alesund, Kristiansund and Trondheim, but not in Aberdeen. Staff based in the north-east were reported to be upset at the decision to ditch the festivities. The oil and gas services firm has gone all-out in recent years to celebrate the festive season, hiring specialist party planners to run a family fun day at Ardoe House Hotel.
Oil giant BP has launched a cost reduction exercise in the North Sea in line with rivals such as Shell and Chevron which have cut hundreds of jobs. The firm, which recently announced a significant new discovery in the central North Sea along with partner GDF Suez, said that rising costs and toughening market conditions were to blame for the restructuring move. The company declined to reveal the expected effects on its 4,000 North Sea workforce, saying that the company was in the “early stages” of the process.
An investment bank has slashed its forecast for the price of Brent crude next year and has warned prices could hit as low as $65 a barrel in January if the Organization of the Petroleum Exporting Countries (OPEC) doesn't scale down production. JPMorgan Chase & Co has become the most bearish bank on Wall Street after it downgraded its 2015 Brent price forecast by $33 to $82 per barrel, citing supply pressures in the Atlantic Basin and an apparent inability of OPEC member states to work cohesively to restrain production and rebalance the market. The investment bank also lowered its 2016 Brent price forecast to $87.80 per barrel from $120, in a research note dated November 7.
The first ever National Oil & Gas Skills Week gets underway today, kick-starting a four-day celebration of one of the UK’s leading industries. Fergus Ewing, Scotland’s Energy, Enterprise and Tourism Minister will launch the event at a business breakfast at the Aberdeen Exhibition and Conference Centre (AECC) in front of an audience of around 180 senior oil and gas leaders from across the north-east. It will also see the unveiling of a new centralised portal for oil and gas skills information which has been created by the industry as part of HM Government’s Oil and Gas Industrial Strategy which seeks to maximise the economic production of the UK’s offshore resources
Talisman Energy boss Hal Kvisle has blamed problems in the North Sea as well as other issues for delaying his retirement. The head of the Calgary-based firm said he has remained in the hot seat for more than two years longer than planned as the firm struggles to sell off its assets in the UK including its joint venture with China’s Sinopec. Mr Kvisle had said earlier this year said he would like to step down by the end of 2014. This week, Talisman reported its third-quarter earnings Tuesday, which revealed its North Sea production fell 37% in its most recent quarter, the result of planned turnarounds at Claymore, Piper, Buchan and the Bleo Holm FPSO.
Global testing, mechanical and materials firm Exova launched its new laboratory at the ABZ business park in Aberdeen yesterday after a multi-million pound investment. The facility, which provides weld-testing and training services to the oil and gas industry, will become the newly-listed firm’s North Sea hub. The purpose-built testing facility connects a network of 11 specialist laboratories for the industry in the UK, the Netherlands and Italy.
Grangemouth owner Ineos has leased two further shale gas ships, bringing its fleet of “dragon boats” to eight. The ships will be used to transport ethane fracked in the US to be processed at Ineos’ “crackers” at Grangemouth and Rafnes, Norway, in an effort to combat higher prices of gas from the North Sea.
Fairfield Energy has awarded a £4million contract to Can Group to provide asset integrity services on its North Sea Dunlin platform. The Aberdeen-based Can has also announced international expansion. The three-year contract with Fairfield Energy will be led by Engteq, the group’s integrity engineering division, that will provide services such as inspection management and data analysis, with Can’s operations division providing inspection execution and ancillary services on the pressure systems and structures. The Aberdeen-based Can has also announced international expansion. The three-year contract with Fairfield Energy will be led by Engteq, the group’s integrity engineering division, that will provide services such as inspection management and data analysis, with Can’s operations division providing inspection execution and ancillary services on the pressure systems and structures.
Private equity giant Warburg Pincus has raised £2.5billion for an energy fund that will target exploration and production plays across the world, including the North Sea.
Bosses at French gas giant GDF Suez have raised concerns about the speed of implementation of recommendations made by the Wood Review.
Energy services firm Proserv has come under new ownership as its owners sold out to a much larger private equity rival.
BP will restart the Rhum gas field in the UK North Sea, half-owned by Iran's National Oil Company, four years after the field was shut down due to Western sanctions.
Maersk Oil UK has appointed a contractor to build the wellhead jacket and piles for its £3billion Culzean gas field project in the UK North Sea.
Two subsea companies are upping their presence in the north-east with the creation of two new headquarters in Aberdeenshire’s Westhill area. The area, also known as the subsea capital of Europe, will see subsea specialist Rovop invest £4million in new purpose built headquarters, while subsea robotic company Aleron Subsea is relocating its head office from Singapore to the area.
North Sea oil workers who have returned from a country affected by the deadly Ebola virus have been advised to stay away from UK offshore installations for at least 21 days, according to new industry guidelines.
Dana Petroleum yesterday revealed plans to cut up to 20% of its work force as it continues a review of its organisational structure.
An Aberdeen oil and gas software specialist has signed a £1.6million deal to install its productivity optimisation product across ten FPSOs in the North Sea and offshore Brazil. Teekay Petrojarl, one of the largest operators of FPSOs in the North Sea, has installed software developed by Petrotechnics on its Voyageur Spirit asset.
The trade body for the UK’s oil & gas sector called for “radical” changes in the tax system as a new report revealed North Sea costs have risen 60% in just three years.
Matthew Hancock, the coalition government’s fourth energy minister, has pledged that the new regulator proposed by Sir Ian Wood is on track to be operational in Aberdeen within months.
French oil giant Total has increased its stake in two fields West of Shetland as it presses ahead with its “landmark” £3billion Laggan-Tormore development.
Swedish oil explorer PA Resources (PAR) has thrown itself on the mercy of it debtors after warning it will default on loan payments worth £13.4million due to political problems in Tunisia.
Paul Warwick, the executive vice president of Talisman Energy, will chair a new body that will drive forward the use and development on technology on the UK Continental Shelf.
