Billionaire industrialist Sir Jim Ratcliffe has blamed Britain's lack of industrial strategy and levies on carbon polluters for the closure of the UK's last plant producing synthetic ethanol.
Christopher O’Shea, chief executive of British Gas owner Centrica, has said he is “worried” about low gas reserves this winter.
Aberdeen-headquartered ASCO has been awarded a £70 million contract by Aker BP for work across its Norwegian operations.
2024 ended on a high at Concordia Damen, with the Dutch shipbuilding group reaching the roughly halfway stage in the design, build and delivery of two 550ft (167.5m) roll–on–roll–off wind turbine systems carriers for fellow Dutch company Amasus, with delivery of the first sister expected later this year (2025).
Sir Ian Wood insists the North Sea industry is not facing a doomsday scenario and can recover with the help of a big tax cut in the March Budget. The north-east oil and gas doyen said there was little point in swifter action from the Treasury as it would have no impact at current oil prices of about $50 a barrel. But a clear commitment by the chancellor to a “measured” reduction of at least 10% to the supplementary tax on profits in the Budget and more cuts to follow would encourage operators to keep project teams together and not give up on the North Sea, he said.
Spanish oil company Repsol has called off exploratory drilling in the sea around the Canary Islands. It said a discovery of oil and gas had been found but in water-logged subsoil and in small quantities. Around 750 professionals, some based in the Canary Islands, worked on the research project.
North Sea oil expert Sir Ian Wood, who led a review of the industry for the Government which reported last year, said a major tax cut was necessary to give producers the confidence to keep their operations going. He said the supplementary charge on profits should be cut from 30% to 20% although he acknowledged that would have little impact in the short-term because prices were so low.
The Secretary of State for Energy and Climate Change has asked the new chief executive of the Oil and Gas Authority (OGA) to lead an urgent commission to identify key risks to oil and gas production in the UKCS. Ed Davey said he had asked Andy Samuel to look at what further measures could be taken to help mitigate the impact of low oil prices and high production costs affecting the industry. The minister made the announcement on a vist to Aberdeen on the same day BP revealed it would be cutting 200 jobs from its North Sea operations and axing 100 contractor roles.
The Chancellor showed “considerable foresight” in cutting taxes on North Sea oil ahead of the plunge in commodity prices, William Hague has said. The Commons leader said the dramatic falls in oil prices were good for the economy overall but added the Government took seriously the hit on employment in the sector. BP has announced 300 job losses in Aberdeen where much of its North Sea oil business is based.
The future of the North Sea oil industry has dominated clashes at Holyrood, with the First Minister urging opposition leaders to give their support to SNP proposals to help the industry in the wake of falling prices. Labour, the Conservatives and the Liberal Democrats all pressed Nicola Sturgeon on the impact that prices, which have now dropped below 50 US dollars (£32) a barrel, would have on both the industry and the country. Ms Sturgeon called for an end to “petty political point-scoring” at the same time as she criticised Labour MPs for backing Tory plans for a further round of austerity cuts in a vote at Westminster earlier this week.
The North Sea needs continued investment from businesses and government through its current period of transition, according to a new report from Deloitte. The business advisory firm has just released its latest Petroleum Services Group’s North West Europe Review which details drilling, licensing and deal activity across the region for the whole of 2014. The report found 40 wells were drilled offshore UK throughout the year, a decrease on the 50 wells reported in 2013.
An offshore oil consultancy with an operation in Aberdeen has bought a controlling stake in a Norwegian IT firm. Stavanger-based Ross Offshore took a 60% stake in Network Scenario for an undisclosed sum after working closely with the company for a number of years.
Europa Oil & Gas has decided to keep its WF9 well on its West Firsby field in the East Midlands Petroleum Province shut in for the foreseeable future due to low oil prices. The company said production is continuing on five of the six wells it operates across the Crosby Warren, Whisby and West Firby fields. It said it would reconsider whether to carry out recompletion of WF9 should the oil price recover to “a level at which the well would become economic”.
Maersk Oil said exploration drilling has started on the Tvillingen South Prospect in the Norwegian Sea. The prospect is located on the Haltenbanken and is approximately 28k southeast of the Kristin field.
Lundin Petroleum has cut its expenditure for 2015 by 31% and said it would be focusing its sending on development projects. The company has set its development, appraisal and exploration budget would at $1.45billion. Development projects have been budgeted at $980million which represents a 30% decrease on forecast 2014 expenditure.
As oil drops below $55 a barrel, speculation is growing that the central bank of western Europe’s biggest crude producer will need to cut rates again. A 54% slump in Brent crude since a June high has pummelled the offshore industry in Norway, where oil and gas make up 22% of gross domestic product.
Singapore-based Dyna-Mac has been awarded a contract worth a preliminary estimate of $89million to construct FPSO topside modules and one flare tower for BW Offshore. The company’s prepatory work is for the vessel which will operate at Premier Oil’s Catcher oil fields in the North Sea.
Rockhopper Exploration has been awarded a 40% share in an offshore block in Croatia in a partnership deal with Eni. Block 9 is located in shallow waters of the Northern Adriatic gas province and contains the previously discovered Ksenija accumulation along with the Klaudija prospect. The company said the anticipated work programme consists of seismic acquisition, processing and re-processing during the first exploration phase, with the drilling of a well in the second exploration phase.
Scotland’s electricity system could be powered almost entirely by renewable energy by 2030, according to a report by an environmental charity. WWF Scotland’s report uses independent analysis by an engineering and energy consultancy to test the Scottish Government’s policy to decarbonise the country’s electricity supply over the next 15 years. It found that an electricity system based on “proven renewables and increased energy efficiency” is a credible way of meeting the target.
A director of a North Sea oil company has been forced to step down after a bungle over the number of votes cast for his re-election at the firm’s annual meeting. The “proxy tabulation error” has only just been revealed – weeks after Antrim Energy shareholders voted on whether Gerry Orbell should continue on the board. Mr Orbell is a former chairman of the company, which is based in Calgary, Canada.
Russian oil production rose to a post-Soviet record last month, showing how pumping of the nation’s biggest source of revenue has so far been unaffected by US and European sanctions or a price collapse for the commodity. The nation increased output 0.3% to 10.667 million barrels a day, according to preliminary data today e-mailed today by CDU-TEK, part of the Energy Ministry. The figure is for crude and condensates, an ultralight oil that yields a greater proportion of high-value fuels. Production averaged 10.58 million barrels a day for 2014, also a post-Soviet record.
GEG (Global Energy Group) has seen a big rise in revenues only weeks after it confirmed job losses at its fabrication yard on the Cromarty Firth. The energy services firm said turnover had risen by 32% to £472million in the year end to March. The company’s profits have also jumped from £18.8million to £28million.
Cape has been awarded a five year contract extension by EDF Energy for the supply of access, insulation and associated service in support of its eight nuclear power stations in the UK. The contract will see the company provide its services until 2021 in support of the energy suppliers. Around one fifth of the UK’s energy supply comes from EDF’s nuclear power stations, two coal fired power stations, combine gas cycle turbine power station and wind farms.
The European Court of Justice has ruled obesity can constitute a disability. The EU’s highest court was asked to rule on the case of a male childminder in Denmark who said he was sacked for being too fat. Legal experts had warned that the move would offer crucial protection to offshore workers who fall foul of new helicopter safety legislation limiting the size of people travelling to North Sea platforms. The court said that if obesity could hinder “full and effective participation” at work then it could count as a disability.
Petroceltic has responded to claims it breached a corporate governance agreement. Worldview Capital Management launched a legal bid earlier this week and called for the immediate resignation of Petroceltic's chief executive Brian O’Cathain. The move was made after the two entered into an agreement in June this year. A spokesman for the Irish independent company said the legal proceedings were “totally without merit and misconceived”.
Oil service provider Plexus said it did not expect its business to be hit by weak oil prices this year or beyond as it sees continued demand for its niche equipment. The Aberdeen-based supplier of oil and gas drilling technology said it expected the sharp decline in oil prices to be temporary and that long-term investments in the sector would sustain demand for Plexus' services. Plexus chairman Jeffrey Thrall spoke to the AIM listed firm’s investors at its AGM yesterday.
Statoil will resume its use of the Songa Trym rig next year after a temporary suspension. The company had issued a postponement period for a number of contracts due to higher costs and low profitability. The Songa Trym is now expected to resume operations in January.
The chief executive of the Norwegian Oil and Gas association has resigned over differing views as to how the organisation should run. Gro Braekken will step down from her role in 2015 after nine years in the post. Work has already begun to find her successor.
Marine-technology company Nautronix more than doubled its profits last year following a number of contracts wins and the launch of new technologies. The Dyce-based firm said sales of its new £1million NASDive diving communication system grew 53% in the first year of its launch. The company said it expects the technology, which is so advanced that divers can Skype call their family from beneath the ocean, will be bought by firms replacing their older diver communications systems as well as new customers.
