Transocean was forced to delay its third quarter results after being hit by $2.76billion worth of impairment charges amid declining contract values. The firm, which owns the biggest fleet of deepwater drilling rigs, said: “The charge is the result of impairment testing conducted due to the decline in the market valuation of the contract drilling business.” The dip in rig-use fees was also thought to have affected today’s delay.
The UN nuclear agency is expected to say that Iran is stalling its attempts to probe allegations that Tehran worked on nuclear weapons.
For a country whose economy relies mainly on tourism and tea, the discovery of oil is one of the most exciting things to happen in development terms in the history of this East African nation. The ability of a sub-Saharan country to be self-sufficient in energy has the potential to become an engine for economic development beyond anything seen in the area over the last 100 years. Clearly there are challenges, both to the extraction and the geopolitical sensitivity of the find. Kenya’s Lokichar Basin lies on the border with South Sudan, and it was its neighbour’s oil reserves that drove the civil war and recent independence of the South Sudan state from its mother country. Clearly there are security risks, with this part of the coastline being party to raids from Somali pirates and terrorist cells – not to mention the potential for unrest in neighbouring countries, as they eye up such a large natural resource. This year, oil was also discovered offshore from Kenya – again causing security concerns, with similar risks from marauding Somali pirates.
Statoil is on the hunt for its next Johan Sverdrup – this time on the UK divide of the North Sea, according to its exploration manager Tom Dreyer. Tom spoke to Energy Voice after the Norwegian operator made out as one of the biggest winners in the 28th licensing round. The major industry player snapped up 8000sq km of acreage, winning all of the 12 licences it applied for. The opportunities amassed by the firm on the UK side of the North Sea, strategically located on near its Mariner and Bressay projects, leave it all to play for, according to Tom. The first step is process is apply the techniques leveraged to unearth Johan to targets identified in the UK North Sea.
Statoil was awarded all of the acreage it applied for in the 28th UK North Sea licensing round. The Norwegian operator picked-up 12 new licences in the latest allotment, including nine as operator. The new bids add up to 8,000sq km in additional acreage.
Libya’s biggest oil field Sharara is expected to resume production after gunmen stormed the site.
Energy was political and economic dynamite, and a key battleground on which the independence debate had been fought. Following the outcome of the referendum there is now some agreement that Scotland should have a much stronger voice when it comes to energy policy. In this short article we explore the conundrum between renewables and nuclear power, and consider further what new powers for Scotland the Smith Commission might consider. Working to a tight deadline the Smith Commission intends to produce a set of proposals covering financial, welfare and taxation powers by the end of November 2014. The renewables versus nuclear conundrum Westminster has promised some big new powers for the Scottish Parliament, but there appears to be little agreement on how to close the policy gap between Holyrood and Westminster on renewables and nuclear power. Where are the proposals to give the Scottish Government some influence on how to spend incentives for renewable energy? At the moment, when it comes to financing, Westminster has the power to decide what it wants, regardless of what the Scottish Government thinks. It is now clear that Westminster is planning to spend a lot of money on building nuclear power stations after 2020, and the Conservative Party has stated that it will stop incentives for onshore wind. So where does this leave a Scottish Government which opposes building new nuclear power stations and which wants some ability to make its decisions on what renewables should be supported rather than being dictated to by Westminster based Conservatives? Many Conservative MPs are sympathetic to the aims of anti-windfarm groups like the Renewable Energy Foundation (REF). The REF say that Scottish consumers ought to pay more for renewables deployed in Scotland. Well in that case, why should Scottish consumers pay for nuclear power stations in England and Wales?
Campaigning residents have hit out at pro-fracking peer Lord Lawson as they launch a High Court battle to block planning consent for further works linked to fracking in their village. Their QC told a judge the permission granted in May this year affecting Lower Stumble in Balcombe, West Sussex, was fatally flawed by “errors of law”. In one of the first fracking legal challenges, the Frack Free Balcombe Residents Association (FFBRA) is asking a High Court judge in London to quash the permission granted by West Sussex County Council to energy firm Cuadrilla. The county council is defending its decision before Mr Justice Gilbart, arguing it was lawfully made and is not open to legal challenge.
Short-term populism is the “most dangerous enemy” for energy and climate change policy, Energy Secretary Ed Davey said today as he warned against exploiting the issue in the run-up to the general election.
The owner of a New Zealand coal mine where the bodies of 29 workers are entombed after a methane-fuelled blast four years ago has said it will not retrieve the remains because it is too dangerous. The announcement by state-owned Solid Energy dashed the hopes of those who had sought to recover the remains of their loved ones from the Pike River mine on the South Island. Solid Energy Board chairwoman Pip Dunphy said the company was unable to come up with a safe re-entry plan. “We know this decision will be very disappointing to the family members and friends of the men who died in the mine,” she said. “However, any further loss of life in this mine is unacceptable and any possibility of other families having to go through what the Pike families have suffered is not something our board can support.”
1. Andy Samuel was one of the first off the blocks to welcome the Wood Review. The new chief executive of the Oil and Gas Authority wrote a first person piece for Energy Voice in the wake of the announcement. In the piece, which he wrote just two days after the Wood Review was published, he said: “In recent months, however, more and more of my peers have remarked that it has become a difficult and costly place to do business. As the Industry Activity Survey points out today, there are some serious underlying challenges to fix, and quickly. The global competition for capital and skills demands speedy action.” Read the full piece here. 2. Andy’s role with BG saw him head the firm’s North Sea business where he was responsible for 15% of the company’s overall global production and 800 employees. BG has stakes in both the Jasmine and Buzzard fields. In August 2008, he was named deputy asset manager for BG Group. He stayed in the role for a little more than two years before being named president and general manager of EXCO Resources. In July 2012, he was named BG’s managing director for Offshore Europe. In September last year he was appointed to Oil & Gas UK’s board of directors. 3. He has pushed the government hard for tax breaks relating to high-pressure, high-temperature fields. Developments in the Central North Sea, which can have reservoirs with temperatures up to 500C and with “extreme” high pressure, are known as ultra-high pressure, high temperature (uHPHT) fields. UK-based BG is currently developing the £3billion Jackdaw field. In June, Andy met with representative from the Depart of Energy and Climate Change (DECC) regarding tax changes. At the time he said there was still “work to do to ensure investment conditions are met for the variety of companies looking to invest”. This included extending the tax relief to 75% to bring it in line with onshore gas, and extending the ring fenced expenditure supplement from six years to 10 years. 4. He’s a geologist by background. He obtained his BA degree from the University of Cambridge before completing his PhD at the University of London. His career has seen him work on assets in the UK, Trinidad and Brazil. He also fulfilled a three year posting in Cairo as an exploration geologist where he honed his interest in deep-marine processes.
Business and Energy Minister Matthew Hancock today confirmed one of the biggest North Sea licensing rounds yet. A total of 134 licences covering 252 blocks were issued as part of the 28th offshore licensing round. The Business and Energy Minister said: “The North Sea provides a safe, secure, home-grown energy supply for the UK. We are determined to make the most out of the North Sea and have moved quickly to implement the findings of Sir Ian Wood’s review."
BG’s managing director of Exploration and Production in Europe has been confirmed as the new chief executive of the Oil and Gas Authority (OGA). In the wake of the announcement the government has made an industry-wide call for evidence on how to best deliver the next stage of Sir Ian Wood's recommendations, including the governance and scope of the new regulator. Energy and Climate Change Secretary Ed Davey said: “It’s vital for Government to work closely with industry to maintain Britain’s energy security and Andy is superbly placed to steer the OGA to maximise the economic recovery of our oil and gas resources. We’re also asking industry for their views to make sure we implement the Wood Review recommendations in the most efficient and practical way.” The government has also asked for feedback on how to best implement the Maximising Economic Recovery UK strategy and new regulatory powers of the Oil and Gas Authority and its sanctions regime. New chief executive of the OGA, Andy Samuel added: “I am honoured to have been chosen to lead the OGA. I know first-hand the challenges industry currently faces and am confident that implementing the vision set out in the Wood Review will create a strong future for the UK’s oil and gas industry. I have much enjoyed my time at BG Group, with a lot to be grateful for, and am now looking forward to establishing the OGA and setting its priorities in the New Year.”
The Norwegian government has ignored calls for industry tax breaks amid an uncertain marketplace and tightening budget belts. The country's oil industry, through the Norwegian Oil and Gas Association, had previously lobbied Norway’s government to pave the way for more incentive based tax breaks for increased-recovery projects in a bid to boost market returns.
Bibby Offshore has set its sights on Houston. Its Texas-based division Bibby Subsea has launched a recruitment drive in America’s energy capital to coincide with development of its new Houston base.
Speeding down the runway at 160mph, Divya Reddy was leaving everything she ever knew – her family, her home, the only country she had ever lived in. At an age when most young women are off fulfilling gap years or just starting to consider which career path they should embark upon, Divya was on her way to one of the most remote parts of the world to work long hours in unforgiving conditions. For the India native, the assignment wasn’t forced. Instead the young Shell engineer graduate volunteered for the post in Siberia, hoping it would give her the kind of industry exposure she could only dream of. It was a move that would later see her scoop the Young Asian Woman of Achievement award and become one of Shell’s youngest ever subsurface field leads.
North Sea operator CNOOC confirmed its Golden Eagle Area Development (GEAD) has commenced production. The timetable is in-line with predictions made earlier this year. The Chinese state-run oil group is targeting between 422million and 435million barrels of oil equivalent from its operations this year.
Statoil today confirmed its mammoth Johan Sverdrup development will create 51,000 man-years related to Norwegian deliveries and produce revenues worth NOK1350billion. “Johan Sverdrup represents all we stand for as an industry and our faith in the future. "This will be a gigantic project that will secure energy supply and jobs and result in substantial spin-offs and value for Norwegian society, the industry and the partnership behind the development,” said Arne Sigve Nylund, Statoil executive vice president for Development & Production Norway.
Exxon Mobil’s earnings rose 3% despite oil production dipping 4.7%. The major industry player recorded $8.7billion in earnings for this year’s third quarter – a $200million increase on last year’s tally. Major projects for the period include confirmation of its Tapis enhanced oil recovery (EOR) bid being given the green light.
MOL Group has agreed a $1.5billion revolving credit facility with a group of 15 banks.
UK gas prices took their biggest plunge in more than a month after Russia and Ukraine finally managed to secure a gas deal. The agreement, which was heavily orchestrated by the EU, was struck in the run-up to winter.
Russia and Ukraine have been sent back to the drawing board after overnight negotiations failed to produce a hotly anticipated resolution on restoring natural gas flows between the two countries. The same trio - Ukrainian Energy Minister Yuri Prodan, Russian Energy Minister Alexander Novak and EU Energy Commissioner Guenther Oettinger – will gather around the negotiation table once again in a bid to finally agree mutual terms.
The latest Oil & Gas UK Business Sentiment Index confirmed industry optimism remains on a downward slope.
Production in Texas and North Dakota saw net income increase to $2.7billion, ConocoPhillips today confirmed. The final tally was an increase on last year’s $2.48billion. Its share price currently sits at $2.17 – a slight gain on the previous period’s $2. The positive figures follow a massive strategy shift orchestrated by chairman and chief executive Ryan Lance.
The £1.6billion West of Duddon Sands offshore wind farm achieved its full power output two months ahead of schedule. The development, which can power more than 250,000 homes, was officially opened by UK Energy Secretary Ed Davey today.
