AWE Limited has completed its subsea tie-back and installation project to connect the Pateke-4H development well to the Tui area oil fields gathering system. The company said the well has now been brought onto production and flow testing is underway to determine optimal well settings. An initial unstabilised flow rate of 34,000 barrels of oil per day was recorded.
Apache has awarded a subsea distribution unit supply contract to SEA. Under the agreement, the company’s subsidiary J+S will provide subsea distribution units and associated equipment and services for Apache’s Ness Nevis project. Apache is currently undertaking a development program to upgrade the subsea controls architecture in preparation for new wells at the Beryl Field area.
London’s FTSE 100 Index enjoyed a strong start to the week after energy stocks were lifted by higher oil prices and expectations that US interest rates will not rise until later this year. BG Group rose 3% or 26.75p to 879.65p and Royal Dutch Shell improved 52p to 2178.5p after the price of Brent crude climbed to 57 US dollars a barrel. The mood was helped by comments from Federal Reserve policymaker William Dudley, who said that US rate increases will be “shallow”. The FTSE 100 Index rose by 81.2 points to 6914.3.
Following its success with the Zebedee target, the rig Eirik Raude is today moving a short distance to start the second well of the latest Falkland Islands exploration campaign. The next target of the current four targets exploration campaign is Isobel Deep, later followed by Jayne East and finally Chatham. For the first three of these wells, operator Premier Oil (36%) and Rockhopper, (24%), is joined by Falkland Oil and Gas, which holds 40% as a result of its 2013 takeover of Desire Petroleum. Isobel Deep sits in an untested area around 40km to the south of Sea Lion, and the prospect could unlock the greatest potential of the wells in the rig’s North Falklands Basin ng schedule.
Energy consultancy Douglas Westwood said deepwater expenditure will increase by 69% between now and 2019. The figure comes despite a number of companies suspending high-cost projects in the wake of the low oil prices. The company estimated the total cost could be as high as $210billion in its report, ‘World Deepwater Market Forecast 2015-2019’. The report author Mark Adeosun said development of deepwater reserves has become increasingly vital, particularly to the world’s oil majors.
The Press and Journal is proud to announce the launch of its first North Sea industry Gold Awards. The event, run in association with the paper’s sister website Energy Voice and title sponsor Aberdeen Asset Management, marks a major milestone for the vital oil and gas sector – the 50th year of Aberdeen’s involvement in the development of the North Sea. The special awards ceremony, which will include the introduction of an industry-first Hall of Fame, is truly a celebration of unrivalled resilience, perseverance and triumph. Despite current market tensions, the awards ceremony is also a vote of confidence in the industry’s ability to carve out a successful path over the next 50 years. If this sector has demonstrated anything over the past five decades, it is an ability to innovate beyond barriers, navigate ever-deepening depths and rally in challenging times.
Arctic-drilling protesters from Greenpeace climbed aboard a Royal Dutch Shell Plc oil rig Monday as it was transported across the Pacific Ocean northwest of Hawaii. Six Greenpeace members approached the rig, the Polar Pioneer, in inflatable boats and scaled the platform, according to a statement from the group. The Transocean Ltd.-owned rig is being sent on a vessel called the Blue Marlin to Seattle before heading to the Arctic, according to Greenpeace.
A string of mass firings in the energy and retail industries is taking a toll on Canadians’ job security, recent polling suggests. The share of Canadians who say their employment isn’t fully secure rose last week to 15 percent, the highest since June 2013, according to a weekly survey by Nanos Research Group. The share who say their jobs are at least somewhat secure has declined to 68.9 percent, the lowest since early January. High-profile companies have recently announced closings and Canada’s unemployment rate is at a five-month high as the country copes with the plunge in oil prices and consolidation in the retail industry.
A marine specialist firm has appointed a new sales manager to its team. Steven Simpson will join the company, which was established in 2010, at their Aberdeen offices. Mr Simpson brings more than 10 years of experience to the role after having previously held a number of positions within the oil and gas industry.
An oil worker taken hostage by militants in Libya last month has since been released, however six employees are still unaccounted for. It comes after it was revealed two Bangladeshi citizens had also been freed. The Ghanian’s release is believed to have been at the same time, according to his company, Value Added Oilfield Services (VAOS).
Conservative MEP Ian Duncan was in Aberdeen yesterday to highlight the support his party had provided to the North Sea oil and gas industry. He said a £1.3billion package unveiled by Chancellor George Osborne last month had given the sector – blighted by a global fall in the oil price – a welcome boost. Petroleum revenue tax has been reduced from 50% to 35% and the supplementary tax has dropped from 30% to 20%. Speaking at the Maritime Museum, Mr Duncan said: “The tax breaks and support which George Osborne delivered are exactly what the oil and gas industry need to safeguard jobs and investment. “That is what you get when you vote Scottish Conservative – jobs and growth as part of a long-term economic plan.
The Russian Energy Minister Alexander Novak said Ukraine has requested one billion cubic metres of gas imports from Russia this month. It would treble the amount received in March and comes after Naftogaz and Russia’s Gazprom signed an interim deal for cheaper supplies of gas from Russia. The deal, which is expected to last three month, could help provide some time as both country’s debate energy costs.
The oil price slump grinds on and the North Sea remains in crisis, but Wood Group’s chief executive Bob Keiller is clear that people, the UK offshore industry’s primary resource, must still be valued. During last month’s UK Oil & Gas roadshow ahead of the budget, Keiller made it clear that talk about “we’re going to have to get rid of a few people” was unacceptable. “Unless you’re in the Mafia you don’t get rid of people,” he warned an Aberdeen audience. “You may take away their jobs, you may take away their self-esteem, their dignity, their reason for getting up in the morning; there will still be a person there; there will still be a family behind them. “The impact of job losses shouldn’t be underestimated.”
The Foreign Office has dismissed an alleged threat to prosecute oil firms drilling near the Falklands. Last week Premier Oil said it had made an oil discovery at the Zebedee well in the region. Drilling for oil and gas in the resource-rich Falklands area by London-listed companies remains controversial as a decades-long row between the UK and Argentina over the sovereignty of the islands has not been resolved.
A consultation by EnQuest into changes in shift patterns for offshore workers could mean a reduction in headcount of more than 100 contracted employees. The oil firm, had previously announced to staff it was considering a move to a three on, three off shift pattern, in line with a number of companies including Shell and Chevron. A consultation period is currently being carried out and is expected to last around 30 days. The move could see companies including KCA Deutag, Petrofac and Sodexo see a reduction in headcount of up t0 146 staff in total used by the operator . This total includes nine EnQuest jobs previously announced.
Gazprom Neft has signed an agreement which will see the company purchase a 49% stake in PetroVietnam. A deal was signed with the state oil and gas group's chief executive Nguyen Xuan during a visit by Russian Prime Minister Dmitry Medvedev to the Vietnam.
Refiners are poised to make gasoline at a record pace this year, keeping the biggest US crude glut in more than 80 years from overflowing storage. They’re enjoying the best margins in two years as they finish seasonal maintenance of their plants before the summer driving season. They’ll increase output to meet consumer demand and they’ve added more than 100,000 barrels a day of capacity since last summer, when they processed the most oil on record. Booming crude production expanded inventories this year by 86 million barrels to 471 million, the highest level since 1930.
Oil rose after Iran’s nuclear accord with world powers left the timing of increased crude supplies from the OPEC member uncertain and as Saudi Arabia raised prices for shipments to Asia. Futures climbed as much as 2.5% in New York. Physical oil markets won’t be affected by Iran before 2016 as the potential lifting of sanctions, which could allow the Persian Gulf nation to boost production, still faces obstacles, according to Morgan Stanley. Saudi Arabia, the world’s biggest crude exporter, narrowed the discount on its main Arab Light grade for next month’s sales to Asia. Oil has advanced the past three weeks amid speculation that Iran won’t be able to boost its crude exports immediately and add to a global supply glut that drove oil almost 50% lower in 2014.
A north east firm is licking its lips at the prospect of growing demand from oil and gas firms after receiving a “number of inquiries” for ultrasound technology currently being used by Italian sports car maker Lamborghini. Aberdeen-based RSL is a supplier of equipment designed to check the strength of materials without damaging them, a technique known in the trade as non-destructive testing (NDT). Last year, the company agreed to become a UK reseller of DolphiCam, a type of camera that can assess impact damage on carbon-fibre-reinforced plastics by creating 2D and 3D images through the material. Made by Norway’s DolphiTech, the camera is currently being used by Lamborghini and aerospace giant Boeing, and RSL thinks the technology can be applied in the subsea sector.
Global Energy Group has continued its diversification strategy with the acquisition of a metals specialist in the nuclear industry. The Inverness and Aberdeen-based energy service firm snapped up Langfields, a nickel alloy and titanium fabrication business that also serves the pharmaceutical, chemical, offshore, marine and defence industries. The Salford-based firm, wholly owned by Robert Dean, 60, has a pedigree dating back to 1908 when it was involved in the production of mild steel, copper and brass components. Iain MacGregor, Global’s chief executive, said the deal “brings us into more non-oil and gas work, specifically nuclear”. He added: “I think it's important for companies in the oilfield services sector to diversify their risks in the current climate. This is why both of our last two acquisitions have been non oil and gas.”
The Dutch government has said it will call for risk analysis from gas companies when setting production levels. It also said it would involve local authorities further in the natural gas process. The measures have come into effect immediately and are in response to a critical report by the country’s Safety Board early this year.
The ruble and Russian stocks pared weekly gains as falling oil prices threatened to undercut the nation’s budget revenue, stoking concern assets have climbed too far. The currency retreated from the strongest level this year, trimming its third weekly advance to 1.6 percent by 12:44 p.m. in Moscow. Brent crude extended its decline in the year to 4.2 percent after a nuclear pact sealed between Iran and world powers on Thursday stoked speculation supplies may increase. The ruble’s strength amid weaker oil prices risks exacerbating a budget shortfall that’s forecast to be the widest since 2010.
The number of rigs drilling for oil in the US has declined further. In a weekly update figures show the number has dropped by 11 to 802 – which is the smallest decline since December last year. The previous two weeks showed a decline of 12 and 41 in comparison to the most recent results.
Petrobas has sold off assets in Argentina in a $101million deal with Compania General de Combustibles. The company will sell all its assets in the Austral Basin, in the Santa Cruz province and is the first disposal of a Petrobas asset under the 2015-2016 divestment plan.
The investment company set up by oil pioneer Algy Cluff has been handed a third licence to tap coal reserves “stranded” under the Firth of Forth. Cluff Natural Resources (CNR) has ploughed ahead with plans to develop Britain’s first offshore Underground Coal Gasification (UCG) project in recent times, despite opposition from environmentalists, who feel the methods used are unsafe and require further testing. UCG involves pumping oxygen and water through a borehole to turn the fossil fuel into synthetic gas, which can then be converted into hydrogen, methane, carbon monoxide and carbon dioxide. The award of the Frances licence in the firth takes CNR’s portfolio of UK-based UCG assets to nine, covering 266,000sq miles.