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.
Glacier Energy Services has merged its pipeline machining and onsite service businesses into a new division as it expands across the Middle East and Asia Pacific. The firm, which has operational bases in Aberdeen, Glasgow, Newcastle and Singapore, has appointed Mark Derry, previously head of Glacier’s offshore division, to run the new unit. Glacier has also appointed Kevin Strachan as regional manager for the Middle East, based in Dubai, for the newly formed Roberts Machining Solutions.
Autry Stephens knows the look and feel of an oil boom going bust, and he’s starting to get ready. The West Texas wildcatter, 76, has weathered four such cycles in his 52 years draining crude from the Permian basin, still the most prolific US oilfield. Though the collapse in prices since June doesn’t yet have him in a panic, Stephens recognizes the signs of another downturn on the horizon.
Libya’s National Oil Corp. declared force majeure at the ports of Es Sider and Ras Lanuf and will halt output at some oil fields because of fighting in the politically divided North African country. Armed factions should spare energy infrastructure in Libya, the state-run producer said in a statement on its website. Force majeure is in place at Es Sider and Ras Lanuf, Libya’s largest and third-largest oil ports, with a combined capacity of 560,000 barrels a day. The measure is a legal status that protects a company from liability when it can’t fulfill a contract for reasons beyond its control.
Oil and gas news this week has understandably focused on the continued announcements of job losses across the industry. We’ve heard about it from the industry perspective, we’ve heard about it from the education perspective and across the board, the message seems to be “let’s get this into context”. From an oil and gas recruitment perspective, the message is similar – but with some additional insights on offer. Back in October, when initial contractor rates cuts were grabbing the headlines, we advised those looking to move job to sit tight as we were certain that the cuts would extend across industry, affecting most companies and encompassing staff personnel, too. No point in jumping from the frying pan into what turns out to be the fire.
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”.
Repsol is said to be finalising a four billion euro bid for Talisman Energy. Earlier this week it was revealed the Spanish company had revived talks in a bid to bolster its presence in North America. Talisman said in a statement it has been approached by a number of parties including Repsol about “various transactions". The company said it would not be commenting until any potential transaction had been confirmed.
A new plan to boost the economy by exploiting the energy, food and recreational resources of the sea while protecting the environment has been launched by the Scottish Government. The first national marine plan sets out the Scottish Government’s vision for the sustainable development and use of the marine environment. The plan aims to ensure sustainable economic growth of a range of marine industries and protect and enhance the marine environment.
The chief executive of Panoro Energy has stepped down from his role with the Norwegian company. Jan Kielland will leave his job immediately but will remain as an adviser on the board. The announcement follows the news that the company will also be relocating its headquarters from Oslo to London.
Workers are being evacuated from a North Sea platform as a precaution after a boat which caught fire began drifting towards its vicinity. The Norwegian vessel caught on fire 14 miles away from the Lomond rig. The blaze has since been put out and the crew are safe, but the boat is currently drifting due to unstable weather.
Operators could make up to £15billion in savings with more effective and cohesive project decisions, according to a new report. Human resource specialists PwC said reducing over runs, streamlining the supply chain and improving collaboration could allow lower costs. The latest report in the company’s Northern Lights series said operators have the power to effect change in both attitudes and approaches. Falling oil prices and higher costs means that it is “crunch time” for the industry.
BP has begun operations from its Sunrise Phase 1 oil sands project in Canada. The oil major said production is expected in the first quarter of next year. Sunrise is being operated by Husky Energy in a joint venture with BP.
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.
SSE and Scottish Power are to pay penalties totalling £4.15 million to charity following their failure to deliver energy efficiency measures on time. The suppliers were required to implement moves to help reduce bills for households in low-income areas by December 2012 but Scottish Power only delivered 70% of its obligation and SSE achieved 90.9%. Ofgem said it has secured a redress package of £2.4 million from Scottish Power and £1.75 million from SSE, with the payments going towards charities and funds that will benefit vulnerable consumers.
Halliburton will cut 1,000 jobs in its eastern hemisphere offices as a result of falling oil prices. The oil services company, which recently announced a $34.6billion merger with Baker Hughes, said the losses will be made in Europe, Africa, Asia, Australia and the Middle East. A spokesman for Halliburton said the decision was not an easy one, but “necessary”.
Oil extended losses below $60 a barrel amid speculation that OPEC’s biggest members will defend market share against US shale producers. Brent also slid after closing at the lowest price since July 2009. West Texas Intermediate futures fell as much as 1.9% in New York and are down 10% this week.
The North Sea has been producing oil and gas for half century next year and the challenges the region faces are well documented. The ‘Fuelling the Next Generation’ report released this week showed the scale of the skills shortage is much less apparent than it was 12 to 18 months ago. This means that all the work the industry has been doing from grassroots level in schools right through to engaging with potential transitioners and the wider public is working. The study, commissioned by Oil & Gas UK, OPITO and the department for Business, Innovation and Skills, has delivered the truest reflection of how life is going to look for those of us in the sector over the next five years.
Talisman Sinopec has started transferring workers back to a North Sea platform after it was evacuated ahead of a severe winter storm. Staff had been taken from the installation back to Aberdeen. A spokeswoman said 33 staff were making their way back to the platform, although production has not yet resumed.
The ruble has continued to slide even after Russia’s Central Bank sought to ease the selling pressure on the currency following the drop in oil prices by raising interest rates again. The Central Bank raised its key interest rate by a percentage point to 10.5%, citing an increasing rise in consumer prices and “significant inflation risks”. The bank said inflation is expected to hit 10% for 2014 and rise further in the first quarter of 2015.
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.
Falcon Oil and Gas has elected a new member to its board. Maxim Mayorets was appointed to the company's board of directors as a non-executive director at the annual general and special meeting of shareholders in Ireland. Mr Mayorets is currently a member of the executive board and head of mergers and acquisitions at Renova.
Energy stocks have received some respite after their battering yesterday in the wake of the latest slide in the price of oil. Brent crude held firm at just over 64 US dollars a barrel, having fallen sharply on Wednesday when a monthly report by industry cartel Opec said demand next year was expected to fall to its lowest level in a decade. The FTSE 100 Index, which opened the week at 6742, dipped below 6500 at one stage before recovering by 10.8 points to 6510.7 amid lacklustre trading.
Wood Group has bought over a construction and fabrication services company in the US for $36.3million. The company has acquired Swaggart Brothers which employs 200 staff in locations across America. It covers a number of oil and gas activities in shale basins including the Permian, Eagle Ford, Niobrara and Bakken.
Australian energy company Santos has cut its capital expenditure for 2015 by 25%. The company said there will be a drop in spending from $2.7billion to $2billion. However managing director, David Knox, has insisted the company’s financial position remains strong.