OE Daily: 2016 / January

 

Chevron cancels Buckskin-Moccasin

Jan 29, 2016

In Chevron's Q4 2015 earnings conference call today, the company announced it was cancelling the deepwater Gulf of Mexico project Buckskin-Moccasin, instead choosing to advance other projects, particularly onshore in the Permian basin. Chevron's…

Lundin drops budget but activity remains high

Jan 29, 2016

Swedish oil exploration and production firm Lundin Petroleum has dropped its capital spending budget 26% compared to 2016, but still expects a positive year as production at Edvard Grieg ramps up. Lundin's exploration spending will drop 64% compared to 2015…

Baker Hughes in Q4 $1bn loss

Jan 28, 2016

Baker Hughes suffered a net loss of US$1 billion in Q4, in addition to a 36% dip in its revenue year-on-year that the company said is from global pricing pressures, and the steep decline in activity. Image from Baker Hughes…

Shell, BG merger gets final approval

Jan 28, 2016

BG Group shareholders made the final decision in the US$70 billion mega merger with Shell in an overwhelming 99.53% vote in favor of the deal today (28 January), making it the biggest merger between two supermajors in more than a decade. BG…

Oil firms still eyeing arctic exploration

Jan 28, 2016

Despite a multibillion dollar backlog of projects, put on hold amid US$30-50/bbl oil prices, exploration firms are still eyeing resources in arctic waters. New areas of the Barents Sea were offered to oil firms in Norway’s 23rd licensing round…

Aberdeen to get £250 million funding

Jan 28, 2016

UK Prime Minister David Cameron is visiting oil city Aberdeen today to announce an injection of cash to help the ailing city as the industry struggles to deal with low oil prices. Cameron will sign a new 'UK City Deal' fund of up to £250 million (US$358…

Freeport-McMoRan idle in GoM

Jan 27, 2016

Freeport-McMoRan’s (FCX) net loss of US$4.1 billion in Q4 2015 has led to several cuts across the company, including deferring exploration and development activities in the Gulf of Mexico by idling its three deepwater drillships that are currently under contract…

Shell shareholders approve BG merger

Jan 27, 2016

Shell shareholders approved the US$70 billion takeover of BG Group in a landslide vote of 83.08% in favor of the mega merger today (27 January) in The Hague, The Netherlands. Shell CEO Ben van Beurden…

Kosmos in significant Senegal find

Jan 27, 2016

Kosmos Energy announced a “significant” natural gas discovery at its first exploration well offshore Senegal, in addition to memorandum of understanding (MOU) for the development of the cross-border Greater Tortue complex. The Atwood Achiever…

Oil well below US$50/bbl through 2018

Jan 27, 2016

Ratings and investor service firm Moody's has lowered its price estimate for Brent crude in 2016 to US$33/bbl, from $43/bbl, and suggests crude 'will remain well below $50/bbl through 2018.'  West Texas Intermediate has also been lowered to $33/bbl…

DONG expects US$2.33 billion write down

Jan 27, 2016

Semi-state owned Danish energy company DONG Energy has decided to keep its exploration and production business ahead of floating on the stock market. But, the firm said its exploration and production business will have to 'adapt to the significant decline in oil and gas prices…

Wintershall to cut Skarfjell costs 40%

Jan 27, 2016

German operator Wintershall has delayed a decision on concept selection for its Skarfjell project offshore Norway in order to slash 40% of the costs from the project. Wintershall said this will see a decision made in Q3-Q4 this year, rather than Q1 as expected…

ExxonMobil: Energy demand to increase by 25%

Jan 26, 2016

From 2014 to 2040, global energy demand will increase by 25% due to population growth and economic expansion, according to ExxonMobil’s 2016 edition of The Outlook for Energy. Energy demand. Graph from ExxonMobil…

Hess cuts E&P budget by 40%

Jan 26, 2016

Hess Corp.’s 2016 exploration and production capital and exploratory budget has been reduced 40% compared to 2015, with the bulk of it going to offshore production, developments, exploration, and appraisals. Tubular Bells in the Gulf of Mexico…

Aker picked for Johan Castberg FPSO study

Jan 26, 2016

Statoil has picked Aker Solutions to provide a concept study for a floating production, storage and offloading facility for the Johan Castberg oil field development in the Barents Sea. The announcement comes just days after Statoil said it was now moving ahead with the delayed project…

Halliburton down 42% in Q4

Jan 25, 2016

Halliburton posted a 42% loss in its total revenue year-on-year for Q4 2015 that the company said is a result from the impact of reduced commodity prices creating widespread pricing pressure and activity reductions on a global basis. Image…

Leak shuts down Petrobras production

Jan 22, 2016

Petrobras stopped production from its P-31 floating production, storage and offloading (FPSO) unit offshore Rio de Janeiro for the second time this month, after gas and oil leaks occurred earlier this week, according to the Sindipetro Norte Fluminense union…

Schlumberger in $1bn loss, 10,000 job cuts

Jan 22, 2016

Oil services giant Schlumberger posted more than a US$1 billion loss in its Q4 and full year 2015 results, in addition to a further 10,000 job cuts, bringing its workforce reduction to some 30,000 for the year. Kibsgaard…

BW Athena to demobilize, seeks work

Jan 22, 2016

The BW Athena floating production, storage and offloading (FPSO) vessel is to be demobilized from the Athena field in the UK North Sea next month. The move, which had been expected, will the see BW Athena leave the field Athena and Anglia fields…

Goliat first oil creeps closer

Jan 21, 2016

Eni is a step closer to starting production on the Barents Sea Goliat field in coming weeks following consent to use the Goliat floating production, storage and offloading (FPSO) facility from Norway's Petroleum Safety Authority (PSA). The…

Battle of the seismic titans offshore Myanmar

Jan 21, 2016

It's what just a few years ago was seen as possibly one of the most unlikely places for a battle over who could tow the largest seismic spread. However, just that is underway offshore Myanmar, or Burma, which has come under exploration…

BHP to spend $1.5 billion on GoM, Auz

Jan 20, 2016

Anglo-Australian multinational mining, metals and petroleum company BHP Billiton plans to have a capital expenditure of US$1.5 billion in 2016 for its offshore projects, and to remain focused on high-return infill drilling opportunities in the Gulf of Mexico and Western Australia…

Shell in major earnings drop, job cuts

Jan 20, 2016

Shell’s full year 2015 results are expected to record a significant drop of about 54% compared to 2014, in addition to a reduction of some 10,000 positions across BG Group and Shell in an effort to streamline and integrate the two companies…

Data as the new oil?

Jan 20, 2016

Challenging market conditions, including high operational costs, low prices, and declining reserves in the North Sea are driving many organizations in the industry to seek more efficient and cost effective ways of working, without compromising safety…

Johan Castberg costs halved

Jan 20, 2016

Statoil is to move ahead with its delayed Johan Castberg oil field in the Barents Sea after cutting estimated development costs by half. The firm is now planning a floating production, storage and offloading vessel for the development…

Noble in GoM layoffs

Jan 19, 2016

Noble Corp. is expected to lay off 100-120 people that work on the Noble Danny Adkins semisubmersible drilling rig in the Gulf of Mexico. According to a letter from Noble’s director of personnel, to the Texas Workforce Commission, Noble…

Pemex inks three Middle East deals

Jan 19, 2016

Mexico’s Pemex entered into deals with three companies in the Middle East following President Enrique Peña Nieto’s visit to the region. Image of Lozoya signing contracts. Image from Pemex Twitter…

CNOOC sees drop in 2016 plan

Jan 19, 2016

Beijing-based China National Offshore Oil Corp. (CNOOC)’s 2016 business and development plan shows a slight reduction of about 5% when compared to 2015 due to continued challenges with low oil prices. Image of CNOOC's Golden Eagle…

Norwegian license round hailed success

Jan 19, 2016

Norway's latest awards in predefined areas (APA) license round has been hailed a success with some 56 exploration licenses being offered on the Norwegian Continental Shelf.  The APA rounds offer acreage in known areas on the shelf, rather than frontier acreage…

New multi-Bcf Israeli gas touted

Jan 19, 2016

Two Israeli firms are eying a multi-trillion cubic feet deepwater gas field offshore Israel. According to a resource report by Netherland, Sewell & Associates, the Og field lower sand contains 8.84 Tcf best estimate, unrisked gross prospective…

Sanctions lifted against Iran

Jan 18, 2016

Over the weekend, the six world powers (P5+1), European Union (EU), and Iran reached an agreement that lifted sanctions on Iran’s oil production that will see Western nations enter Iran for oil exploration and production for the first time in more than a decade…

Anadarko brings Heidelberg online

Jan 18, 2016

Anadarko Petroleum achieved first oil at Heidelberg in the deepwater Gulf of Mexico last week. Map of Heidelberg. Courtesy of Anadarko. Heidelberg is located in Green Canyon 859…

Statoil makes further Johan Sverdrup cuts

Jan 18, 2016

Statoil is decreasing cost estimates for the first phase of the giant Johan Sverdrup field by up to 42%, with development costs expected to decrease further, according to partner Det norske. Illustration of the Johan Sverdrup field…

Repsol seeks Guyana extension

Jan 18, 2016

Representatives from Spanish oil and gas explorer Repsol met with Guyana's President David Granger to seek an extension to continue exploratory work in the Kanuku Block, offshore the South American country, the Ministry of the President announced on 13 January…

Iran sanctions to be lifted in coming days

Jan 15, 2016

Sanctions on Iran’s oil production are set to be lifted as early as this weekend that will mark the end of the country’s nuclear program and pave the way for Western nations to re-enter Iranian territory for oil exploration and production…

Norwegian investment continues to fall

Jan 15, 2016

Despite high drilling rates on the Norwegian Continental Shelf, discovery rates have been low and investment fell 16% in 2015, according to the Norwegian Petroleum Directorate (NPD).  Fifty-six exploration wells were spudded, with just…

WoodMac: US$380 billion of projects on hold

Jan 14, 2016

Some US$380 billion worth of upstream oil and gas projects have been put on hold as a result of the fall in oil prices, according to new research by analysts Wood Mackenzie.  The Edinburgh based firm says the last six months of 2015 saw…

Updated: Keynote speakers announced for PECOM 2016

Jan 13, 2016

The 22nd annual Petroleum Exhibition & Conference of Mexico (PECOM) will feature several keynote speakers this year, and kicks off on Tuesday, 5 April in Villahermosa, Tabasco. Exhibit floor at PECOM 2015…

CGG in US$378 million capital increase

Jan 13, 2016

CGG launched a US$378.8 million (€350 million) rights offering to existing shareholders to fund its “transformational plan” to convert CGG from a seismic acquisition company into an integrated geosciences group. The CGG Oceanic Vega…

Premier inks first major Sea Lion contract, expands scope

Jan 13, 2016

The first major contract on Premier Oil’s Sea Lion field offshore the Falkland Islands has been awarded following completion of pre-front end engineering and design (FEED) on the project.  Netherlands headquartered floating production…

Petrobras cuts capex by $30 billion

Jan 12, 2016

Embattled Brazilian state owned firm Petrobras has made deeper cuts to its previously announced 2015-2019 business plan, with the company announcing a 25% drop in capex today (12 January).  Petrobras will drop its planned capital expenses by US$32 billion in its 2015-2019 business plan…

BP to cut about 4000 jobs by 2017

Jan 12, 2016

UK oil giant BP plans to cut approximately 4000 jobs across its global upstream sector in the next two years to simplify its business, improve efficiency, and reduce costs. Image from BP. BP…

Greater Stella set back again

Jan 12, 2016

First production from the Greater Stella Area development in the UK North Sea has been set back once again.  Sail-away of the FPF-1 floating production facility is expected to be delayed by six-12 weeks due to slippage in completion of…

Mexico signs remaining PSCs

Jan 11, 2016

Mexico’s secretary of energy (SENER) announced on 7 January that it signed two remaining production sharing contracts with Pan American Energy and Fieldwood Energy for areas awarded offshore Mexico during the country’s phase two bid round held in late September…

Premier proves pay at Isobel Deep

Jan 11, 2016

Premier Oil has confirmed its Isobel Deep oil discovery offshore the Falklands, as well as an additional discovery in the same well.  The well, which was a re-drill of the 14/20-1 Isobel Deep well, hit 27m of net pay, with no oil water contact or gas…

US rig count drops nearly 60% year-on-year

Jan 08, 2016

Baker Hughes’ rig count for December 2015 shows decreases across five of the six regions with the US suffering the most, representing a 59.3% drop year-on-year, and the Middle East with the only increase. Image from iStock…

FPSO suffers mooring failure in storm

Jan 08, 2016

A floating production vessel working on CNR International Banff field has become the latest victim to bad weather in the UK.  The Teekay-owned Petrojarl Banff unit, based some 190km east of Aberdeen, saw two of its 10 achor lines 'lose tension' at around midnight on 3 January…

CLNR in North Sea development search

Jan 07, 2016

UK-based underground coal gasification (UCG) firm Cluff Natural Resources (CLNR) is in the process of securing industry partners to fund and develop its North Sea work program. Map of CLNR's North Sea assets…

Petrobras axes Ensco rig deal

Jan 06, 2016

Houston-based Ensco received a cancelation notice from Brazilian giant Petrobras for the DS-5 drilling rig, citing improper payments. Image of the Ensco DS-5 drillship. Courtesy of Ensco. Last year…

Polarcus to restructure

Jan 06, 2016

Polarcus has gained full support from key stakeholders to move forward with the restructuring of the company in an effort to reduce its debt. The Polarcus Nadia. Image courtesy of Polarcus. Key…

Italy reintroduces 12-mile exploration restriction

Jan 06, 2016

Restrictions on offshore exploration in Italian waters have been reintroduced, according to UK-based explorer Rockhopper Exploration. The firm says the Italian Parliament has approved its 2016 Budget Law, which reintroduces restrictions…

Delta House hits nameplate production

Jan 05, 2016

Louisiana-based LLOG Exploration’s Delta House floating production system (FPS) achieved its nameplate oil capacity of 80,000 b/d in the Gulf of Mexico during the last days of 2015. Image of Delta House…

Production resumes, but storm continues

Jan 04, 2016

Ongoing storms in the North Sea have seen another vessel break loose and start drifting. According to reports on Norwegian news sites, the Safe Bristolia flotel, which was being towed from the UK to Poland, is drifting about 120km offshore Scotland…

Myanmar pays off for Woodside

Jan 04, 2016

Woodside Energy has made a gas discovery offshore Myanmar giving hope to the string of majors who entered the country following its emergence from sanction driven isolation.  Woodside made the discovery on the Shwe Yee Htun-1 exploration well in Block A-6 in the Rakhine Basin…

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