Premier Oil sells non-operated North Sea assets to MOL Group

Premier Oil has sold its non-operated interests in the producing Scott, Telford and Rochelle fields to MOL Group for a cash consideration of $130 million. MOL will assume the liabilities for future abandonment costs. Year to date production from Scott, Telford and Rochelle has averaged approximately 3.7 kboepd net to Premier.

The transaction, which comprises six UK North Sea licenses, has an effective date of January 1, 2014, and is subject to certain pre-emption rights. Completion is subject to receipt of government approval.

Tony Durrant, CEO, commented, “Our ownership of this package of non-operated assets in the Scott area has generated significant cash flow for the group since acquisition. However, this sale will allow our team in the UK North Sea to focus principally on our operated Solan and Catcher developments, and is a further step towards achieving our targeted disposals for the year.”

Premier’s equity in the Scott, Telford and Rochelle fields is 21.8%, 1.6% and 15%, respectively.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By ExportGeneral Corporation and services, UK, online.

Afren probes $433 million on accounts after suspending directors

LONDON (Bloomberg) -- Afren Plc, the UK explorer focused on Nigeria, has expanded its investigation into unauthorized payments and is reviewing about $433 million on its half-year balance sheet. The company appointed KPMG LLP “to undertake an independent review of the accounting for the three original transactions” between the explorer and partners in 2012 and 2013, which are being examined by law firm Willkie Farr & Gallagher (UK) LLP hired by Afren, it said Aug. 29 in a statement.

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Chariot granted new licenses in Namibia

LONDON -- Chariot Oil & Gas has announced an update on its Namibian portfolio, its repositioning in the region and forward work program across these licenses. The company has been granted a new license for blocks 2312 and 2412A -- the Central blocks -- and for Southern block 2714A.

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Statoil opens new IOR research facility

Norway' s minister of petroleum and energy, Tord Lien, has officially opened Statoil’s new research center for improved oil recovery (IOR) at Rotvoll in Trondheim, mid-Norway.

“For several decades Statoil has been highly instrumental in technology development on the NCS and is among the companies with the highest recovery rate. Today’s opening of Statoil’s IOR center is significant for the future of the NCS, and illustrates that Statoil wants to contribute to optimal use of NCS resources also in the future,” Lien said.

The IOR center, which has a price tag of $39 million (NOK 240 million), will be the largest of its kind in Norway and one of the most advanced in the world. Its goal is to develop technologies that will lead to a further increase of the recovery rate from the reservoirs, and to reach the ambition of a 60% recovery rate on the NCS.

Statoil has already approved measures that give the company and partners reason to expect an oil recovery rate above 50% on the NCS. A recovery rate of 50% represents an increase of 7.5 billion barrels based on the 30% estimate of the plan for development and operation -- corresponding to more than two Statfjord fields. The global average is currently 35%, according to the ministry of petroleum and energy.

The main contributing factor to improving recovery is the drilling of new wells and the maintenance of existing wells. The IOR center will play a key role in Statoil’s efforts to improve the efficiency of drilling operations.

The IOR center will focus on improved recovery from all types of reservoirs on the NCS -- old and new. Statoil will also use the technology to improve recovery on its international fields.

The heart of the center is a new industrial scanner, which boasts a resolution 500 times higher than a medical scanner. The scanner will allow Statoil to follow the oil movements and flows in various rocks on pore level. Through high-resolution 2D and 3D images it will be possible to see which IOR method is best suited in each reservoir, and, at the same time, get a deeper understanding of how the reservoir is formed with regard to clay, pore size and cracks.

“Our next goal is the oil which is difficult to extract. We have a steep learning curve ahead of us, which will be tougher for every percentage point we achieve, but these volumes are of high value to us. A dedicated IOR lab gives Statoil a unique opportunity to solve future IOR challenges,” said Helge Lund, Statoil’s chief executive.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By ExportGeneral Corporation and services, UK, online.

Hunting to open East Africa service centers

LONDON (Bloomberg) -- Hunting Plc, a UK oil services provider, will open servicing and repair centers in Mozambique and Tanzania as explorers expand off East African shores. “The main customers are all there and we want to provide them with their kit,” Peter Rose, CFO of the London-based company, said Aug. 28 in a phone interview.

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Tullow announces results of Kenya drilling, testing program

LONDON -- Tullow Oil has announced the results from a series of exploration, appraisal and testing activities conducted in Blocks 10BB and 13T onshore Kenya. The Etom-1 exploration well in Block 13T is the most northerly well drilled to date in the South Lokichar basin, 6.5 km north of the previous Agete-1 discovery.

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Cairn hits pay at FAN-1 exploration well off Senegal

Cairn hits pay at FAN 1 exploration well off Senegal MELBOURNE, Australia Oil samples have been recovered in the FAN 1 exploration well being drilled offshore Senegal by FAR Ltd and its joint venture partners Cairn Energy PLC (Operator), ConocoPhillips

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Tullow Oil updates on exploration and appraisal in Kenya

Tullow Oil updates on exploration and appraisal in Kenya LONDON Tullow Oil Plc (Tullow) reported the successful results from a series of exploration, appraisal and testing activities conducted in Blocks 10BB and 13T onshore Kenya. Etom 1 exploration well The

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Ophir Energy moves back to exploration in Tanzania and Equatorial Guinea

Ophir Energy moves back to exploration in Tanzania and Equatorial Guinea LONDON Ophir Energy Plc (Ophir) provides an update on its operations in Tanzania and Equatorial Guinea. Successful Mzia 3 flow test The Mzia 3 appraisal well in Block 1,

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Well test supports potential hub development offshore Tanzania, BG says

READING, United Kingdom -- The results from a recently completed second drill-stem test (DST) on the Mzia discovery in Block 1, offshore southern Tanzania, provided further support for a hub development to supply a potential onshore LNG project, BG Group says.

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Wintershall Libya production restart held back by infrastructure

STAVANGER, Norway (Bloomberg) -- Wintershall AG, the oil and gas unit of German chemical group BASF SE, said a lack of infrastructure is the only thing holding it back from resuming onshore oil production at full capacity in Libya. “We’re ready to start production almost any day,” Martin Bachmann, Wintershall’s executive director for exploration and production, told reporters Aug. 27 in Stavanger, on Norway’s west coast. “What we lack is the export infrastructure. One day it’s the harbors which are occupied; when they’re open, the pipelines aren’t available.”

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Shell advances Nigerian oil field sale to meet $15 bn plan

THE HAGUE, Netherlands (Bloomberg) -- Royal Dutch Shell Plc is advancing plans to sell four fields in Nigeria to meet a $15 billion asset-sales plan. The company “has signed sales and purchase agreements for some of the oil mining leases but not all that we are seeking to divest,” Shell Petroleum Development Co. of Nigeria Ltd. said Aug. 27 in an emailed statement. “The assets under consideration are OMLs 18, 24, 25, 29 and the Nembe Creek Trunk Line, but the process has not yet concluded.”

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Bowleven provides update on Etinde farm-out to Lukoil/NewAge

Bowleven provides update on Etinde farm out to Lukoil NewAge DOUALA, Cameroon Bowleven Plc, reported that all parties to the Lukoil NewAge Etinde farm out agreement stated on 24 June 2014 have agreed to an extension to the longstop date.

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Circle Oil finds oil at EMD-1 Well Off Tunisia

Circle Oil finds oil at EMD 1 Well Off Tunisia TUNIS, Tunisia Circle Oil Plc, stated the preliminary results of drilling of the well EMD 1 in the Mahdia Permit, offshore Tunisia. The El Mediouni 1 well (EMD 1) is

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Pacific Drilling gets firm contract extension for Pacific Bora Drillship

Pacific Drilling gets firm contract extension for Pacific Bora Drillship LUXEMBOURG Pacific Drilling SA reported that Star Deep Water Petroleum Limited, an affiliate of Chevron, has signed a firm contract extension for the Pacific Bora. As previously stated in our

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RWE Dea starts gas production from the Central Treatment Plant in the Egyptian Nile Delta

RWE Dea starts gas production from the Central Treatment Plant in the Egyptian Nile Delta CAIRO, Egypt RWE Dea achieved first production from the Central Treatment Plant (CTP) of the Disouq Development Project in Egypt. Production commenced at an initial

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Goudron well GY-666 reaches total depth, says Leni

Leni Gas & Oil (LGO) reported that well GY-666 has been successfully drilled to a total depth of 3,357 ft measured depth and that analysis of the electric logs has indicated the presence of a total of at least 394 ft of net oil pay; with 185 ft of net oil pay in the Goudron Sandstone, as previously stated, and a further 209 ft of net oil pay in the Gros Morne Sandstone.

Neil Ritson, the Company' s CEO, commented: "The log characteristics and pressures encountered while drilling indicate that well GY-666 should be another excellent Gros Morne producer and we look forward to completing it, and existing well GY-665, when the rig concludes the four well drilling campaign on this pad."

A further 38 ft of net gas sand was encountered in this well below the Goudron Sandstone and above the oil zone in the Gros Morne and at similar depths to that observed in nearby well, GY-665. Whilst of no immediate commercial significance the presence of gas provides additional value for future exploitation.

A 7-inch casing will now be run to TD in the well and cemented in place. Further analysis will also be conducted on the Lower Cruse interval which is present at a depth of approximately 3,230 ft MD, but which has so far not been fully analyzed. Based on the data available it is planned to complete the well as a Gros Morne oil production well.

LGO intends to continue with the planned program of 30 new development wells including at least five further wells with Well Services Rig 20. The mobilisation of a second rig is still planned when a suitable unit has been identified and contracts negotiated.

Following a review of the electric logs for the Goudron Sandstone interval in GY-665 the net pay previously stated on 17 June 2014 has been revised upwards from 159 ft to 195 ft. The interpretation of the GY-665 logs has been improved through the running of different down-hole tools in GY-666. The table below has been revised to reflect this change.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By ExportGeneral Corporation and services, UK, online.

TGS announces new 3D survey offshore Sierra Leone

ASKER, Norway -- TGS has announced the acquisition of a 3D multi-client survey offshore Sierra Leone. The survey, Sierra Leone Block 4A Extension, will add 1,000 sq km of new 3D data to the existing 6,268 sq km of 3D data library in Sierra Leone.

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Geo Pacific bags West African seismic contract

Geo Pacific bags West African seismic contract LIMASSOL, Cyprus SeaBird Exploration Plc (SeaBird) reported that it has been awarded a contract for a 3D seismic survey in Gulf of Guinea, West Africa for the vessel Geo Pacific. The survey will

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Swala Energy begins seismic survey over Moshi basin in Tanzania's Pangani permit

Swala Energy begins seismic survey over Moshi basin in Tanzania' s Pangani permit MOUNT PLEASANT, Australia Swala Energy Limited (Swala) reported the start of its 2014 2D seismic data acquisition programme over the Moshi Basin located within the Pangani exploration licence

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Second rig starts drilling in South China Sea, China says

China said one of its oil rigs has arrived in its drilling location in the South China Sea, more than 100 miles (160 km) off the coast of Vietnam.

The Nanhai 9 drilling platform started operating on June 24 and will finish Aug. 20, according to a statement on the website of China’s Maritime Safety Administration. The rig is about 60 nautical miles off the port of Sanya on Hainan island, it said.

China’s placement on May 2 of a similar rig in waters disputed with Vietnam set off weeks of skirmishes between boats from the two countries and triggered deadly anti-Chinese riots in Vietnam. The Nanhai 9 is one of four rigs deployed since May 2 in the South China Sea and is currently in Chinese waters.

Vietnam’s National Assembly Chairman Nguyen Sinh Hung told legislators this week that Vietnam’s sovereignty and security as well as regional peace are “threatened” by China’s decision to place the original rig off Vietnam’s coast.

A Vietnamese fishing boat was rammed on June 23 while conducting law-enforcement activities near the rig which is placed off the contested Paracel Islands, causing “serious damage,” Vietnam Foreign Ministry spokesman Le Hai Binh said today, June 26, at a briefing in Hanoi. China deployed as many as 125 vessels near the rig between June 16 and 25, Ngo Ngoc Thu, a Vietnam Coast Guard vice commander, said at the briefing.

Vietnam expresses “extreme concern” over the situation with the second oil rig and asks China not to escalate the situation, Binh said. He called for China to create a “favorable atmosphere” for discussions on how to demarcate the sea area outside the Gulf of Tonkin.

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Tullow awards EMGS $7.7 million North Sea contract

Electromagnetic Geoservices ASA (EMGS) has received a signed contract from Tullow Oil Norge AS worth $7.7 million for 3D EM data acquisition in the northern part of the North Sea.
 
"We are delighted to work with Tullow again, and also, encouraged to see contract coverage in the Norwegian waters continue to develop favorably. Adding a multitude of contracts to our multi-client activities this year should result in the most active year in Norway to date," says Roar Bekker, CEO of EMGS.
 
The survey is expected to commence in August, using the vessel BOA Thalassa.

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Eni begins production at DEKA project in Egypt

Eni begins production at DEKA project in Egypt SAN DONATO MILANESE, Italy Eni, through its affiliate Ieoc Production BV and in joint venture with BP Egypt, started production from the DEKA project (Denis Karawan) through the new subsea well Denise

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Bumi Armada inks $3 bn FPSO contract with Eni for Angola's East Hub field

Bumi Armada inks $3 bn FPSO contract with Eni for Angola' s East Hub field KUALA LUMPUR, Malaysia International offshore oilfield services provider, Bumi Armada Berhad (Bumi Armada), reported the signing of a contract between eni Angola SpA (eni Angola) and

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Ebola cripples West Africa output as fearful workers stay home

Ebola cripples West Africa output as fearful workers stay home PAULINE BAX, SILAS GBANDIA and ELISE ZOKER SIERRA LEONE, Africa (Bloomberg) Sandi Sesay’s boss promised him three months of pay when he told the driver to stop coming to work.

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Pre-salt production hits new record, Petrobras says

On June 24, oil production in the fields operated by Petrobras in the so-called pre-salt province in the Santos and Campos basins broke through the 500,000 bpd mark, reaching 520,000 bpd, a new daily production record.

Of this volume, 78% (406,000 bpd) corresponded to Petrobras’ share and the remainder was contributed by its partner companies in the different production areas in the pre-salt layer.

This output of 520,000 bpd was attained just eight years after the first oil discovery in the pre-salt layer, in 2006. To arrive at this milestone, Petrobras used just 25 production wells.

The scale of this achievement can be better perceived by making a comparison with the company’s own production history. Petrobras was established in 1953 and it took 31 years to reach output of 500,000 bpd, which occurred in late 1984, using 4,108 production wells. In the post-salt layer of the Campos basin, where the first discovery was made in 1974, it took 21 years to produce 500,000 bopd. This production level, achieved in 1995, required 411 production wells. 

The performance of the Brazilian pre-salt also stands out when compared to other major oil-producing parts of the world. In the U.S. waters of the Gulf of Mexico, for example, it took 20 years from the first discovery to produce 500,000 bpd. In the North Sea, this level was reached in 10 years.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By ExportGeneral Corporation and services, UK, online.

Ghana expects Hess offshore oil field to join project lineup

ACCRA, Ghana (Bloomberg) -- Ghana, the nation seeking to increase its oil output fivefold in the next decade, expects an offshore development by Hess Corp. to join the nation’s project pipeline, according to the Petroleum Commission. Hess will drill a third appraisal well later this year on the Deepwater Tano/Cape Three Points block to establish commercial viability and reserves, Kwaku Boateng, director of special services at the commission, said in an interview.

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Woodside reports gas discovery at Toro off WA

Woodside reported that the Toro-1 exploration well in permit WA-430-P has intersected approximately 150 m gross gas and 65 m net gas within the Mungaroo Formation target.

The well reached a total depth of 3724 m, referenced from the rig rotary table. Following drilling, wireline logging has been conducted and confirmed the presence of a gas column through pressure measurements and gas sampling. The well will now be plugged and abandoned as planned.

Toro is located in Western Australia’s Exmouth Sub-Basin and is within 22 km of Woodside’s existing Ragnar-1A discovery.

Woodside EVP Global Exploration Philip Loader said, “This successful exploration outcome builds Woodside’s gas volumes within the Exmouth Sub-Basin creating options for maximising the value of our Australian assets.”

Woodside is the operator and 70% equity owner of WA-430-P. Mitsui E&P Australia has the remaining 30% equity.

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2H secures Kaombo contract

2H secures Kaombo contract RIO DE JANEIRO, Brazil 2H Offshore, an Acteon company, has been appointed by Heerema Marine Contractors (HMC) to engineer hybrid risers for Total’s Kaombo Block 32 project. HMC, together with consortium partner Technip, were awarded the

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Keppel FELS delivers third harsh environment jackup to Ensco

Keppel FELS Ltd has delivered ENSCO 122, the third ultra-premium harsh environment ENSCO 120 Series jackup rig, to Ensco plc ahead of schedule.

Built to an enhanced version of Keppel' s proprietary KFELS Super A Class design, the rig has been contracted to Nederlandse Aardolie Maatschappij B.V. (NAM), an oil and gas explorer and producer focused in The Netherlands.

Enhancements to the design include Ensco' s patented Canti-Leverage Advantage technology, which provides cost advantages for customers by allowing them to drill more wells from one location when utilizing the enhanced hoisting capacity at the farthest reach of the cantilever.

Featuring Keppel' s proprietary jacking and fixation system, the KFELS Super A Class jackup design can operate in a variety of environments in water depths up to 400 ft. The rig is designed to drill to depths of 40,000 ft for the most demanding large multi-well platform programs, ultra-deep gas programs and ultra-long reach wells.

The first two rigs in the series, ENSCO 120 and ENSCO 121, have been successfully operating in the North Sea. The fourth rig is expected to be delivered in 2Q 2016.

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Layne Christensen will not face charges following U.S. DOJ investigation

THE WOODLANDS, Texas -- Layne Christensen Company announced today that the U.S. Department of Justice has decided to not file any charges against the company in connection with the previously disclosed investigation into potential violations of the Foreign Corrupt Practices Act (FCPA). The DOJ has notified Layne that it considers the matter closed.

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Statoil to suspend Saipem rig contract

Owing to overcapacity in its rig portfolio, Statoil will suspend its contract with Saipem for the rig Scarabeo5 from the autumn of 2014, provisionally for the remainder of the year.

This means that Scarabeo5 will be laid up for a brief period. Statoil is planning to re-commission the rig after the turn of the year.

The rig is currently engaged in operations on Visund and is scheduled to complete its work there in August. The period for which the rig is being taken out of operation is equivalent to less than 3% of Statoil’s drilling capacity on the Norwegian continental shelf (NCS) this year.

“We subject our rig portfolio to continuous assessment, so that we are sure of having the right rig on the right job at all times,” says Tore Aarreberg, head of rig procurement. “We are planning for the rig to be in operation again after the turn of the year. We are pleased with Saipem as a supplier. They help us reach our goals, and we have a good cooperation with the supplier.”

The rig is on contract until 2017 and will be used for the drilling and completion of production wells on various NCS fields, thus boosting recovery from existing fields.

Taking Scarabeo5 out of commission for a brief period will not affect Statoil’s production targets or planned exploration activities on the NCS. In 2014 the company will still be drilling 20-25 exploration wells on the NCS. Out of these 20-25, Statoil will be the operator of approximately two-thirds of the wells.

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ADX Energy secures 2 year extension for Kerkouane permit offshore Tunisia

ADX Energy secures 2 year extension for Kerkouane permit offshore Tunisia WEST PERTH, Australia ADX Energy Ltd (ADX) reported that the TunisianAuthorities (Comite Consultatif des Hydrocarbures) have approved a 2 year extension of the Exploration period for the Kerkouane permit

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NCS Survey Ltd awarded five year subsea contract with Ceona

NCS Survey Ltd awarded five year subsea contract with Ceona WESTHILL, United Kingdom NCS Survey, an Acteon company, has been awarded a five year contract for positioning services with SURF company, Ceona. Mobilisation has been successfully completed on the first

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Salamander spuds NK-2 well offshore Indonesia

Salamander reported the spud of the North Kendang-2 exploration well (NK-2), a re-drill of the North Kendang-1 (NK-1) well in the South East Sangatta PSC. Salamander has a 75% operated interest in the South East Sangatta PSC.

NK-2 will be drilled to a depth of approximately 2,878 m total vertical depth sub-sea (TVDSS) in order to evaluate the Upper Miocene section. The Ocean General semi-submersible rig, which has now been fitted with managed pressure drilling equipment to enable it to manage the anticipated pressure regime, will be used to drill the NK-2 well.

NK-1 was drilled to 2,535 m TVDSS when it encountered a high pressure wet gas kick in the Upper Miocene, which led to it being plugged and abandoned on 13th April 2013. Costs related to the NK-1 well control incident, and to drilling the NK-2 well to this same depth, are covered under the Company’s insurance policies.

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OMV second quarter profit falls on Libya output disruption

OMV second quarter profit falls on Libya output disruption JONATHAN TIRONE VIENNA, Austria (Bloomberg) OMV AG, reported a 37% decline in second quarter profit because of production disruptions in Libya. Net income fell to 202 million euros ($270 million), while

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Woodside acquires exploration acreage in Gabon

Woodside acquires exploration acreage in Gabon PERTH, Australia Woodside reported that it has acquired a 40% participating interest in an exploration, exploitation and production sharing contract (EEPSC) for Block F15 in the Gabon Coastal Basin. Block F15 is located 140

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Gazprom Neft starts drilling at Arctic's Dolginskoye field

Gazpromneft-Sakhalin, a subsidiary of Gazprom Neft, has started drilling a new exploration well in the Dolginskoye field on the continental shelf in the Pechora Sea. The work is being carried out during the ice-free months of 2014 and will involve drilling a single well to a depth of 3,500 m and conducting a full range of geological investigations.

The experience gained from previous work on the continental shelf, including at the relatively nearby Prirazlomnoye field also operated by Gazprom Neft, was taken into account during preparations for the exploration program.

Major global service companies, such as Schlumberger and Weatherford, are involved in the Dolginskoye project. Based on initial studies, a further program will be drawn up to explore the field and prepare for exploratory drilling during the ice-free seasons in the years to follow.

Drilling and testing of the well will be carried out in 2014 by the GSP Saturn jackup rig, which arrived on site in mid-June and is installed directly on the seabed. The rig is authorized to drill on the continental shelf in the Arctic sea and has been modernized and comprehensively audited by international and Russian specialist agencies. These have confirmed that GSP Saturn is fully fit for exploratory drilling in the Pechora Sea.

Advanced innovative technology will be employed, including an environmentally safe water-based drilling fluid system. ? rotary control system will be used for drilling on the Arctic shelf, which will speed up drilling and reduce drilling mud. Any mud produced will be shipped back to the mainland to be recycled in line with the zero-discharge policy. In addition, an innovative borehole management system from one of the world’s leading hydrodynamic survey companies will be used for the first time in Russia to improve reliability and quality of work. This technology will speed up the study of the oil reservoir and enable high-quality measurements to be taken with maximum safety and efficiency. This will be the first time that some of this technology has ever been used in Russia.

The Spasatel Karev emergency support vessel will be on hand round the clock while work is taking place. Along with the four ships chartered for ancillary work, it is equipped with a DP-2 dynamic positioning system that allows it to maintain a fixed position for loading in extreme weather conditions. The border checkpoint at Varandey airport has been extended to allow flights to the Dolginskoye field. Until now the airport has only been open for flights to the Prirazlomnoye platform.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By ExportGeneral Corporation and services, UK, online.

Petrobras estimates $18 billion in savings from pre-salt deal

Petroleo Brasileiro SA, the biggest oil producer in ultra-deep waters, estimates it will save $18 billion in discovery costs after buying rights to one of country’s top two finds, the company said.

It would cost $26 billion to acquire, discover and quantify an equivalent amount of oil in other areas from 2015 through 2021, Petrobras estimated in a presentation filed with the market regulator.

The state-controlled company’s management met with sell-side analysts yesterday afternoon, June 27, to explain the $6.8 billion acquisition it signed with the government in exchange for rights to as much as 15 billion barrels of oil.

Oil reserves from the four fields in the so-called pre-salt region in deep waters of the South Atlantic included in the contract will reduce the need to participate in future bidding rounds, it said.

The company estimated annual spending will fall from an average of $45.6 billion between 2013 and 2020 to $26.6 billion from 2021 to 2030, mainly because of the construction of refinery and fertilizer plants.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By ExportGeneral Corporation and services, UK, online.

Seadrill gets contract for new ultra-deepwater drillship

HAMILTON, Bermuda -- Seadrill, in cooperation with indigenous partner Field Offshore Design Engineering Nigeria, has secured a contract with Esso Exploration and Production Nigeria, an Exxon Mobil subsidiary, for employment of the newbuild ultra-deepwater drillship West Saturn, in support of the ERHA North Phase 2 project in Nigeria.

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Chad annuls CNPC licenses in dispute over $1.2 bn fine

N’DJAMENA, Chad (Bloomberg) -- Chad withdrew the licenses of China National Petroleum Corp.’s local unit after saying the company failed to pay a $1.2 billion fine for environmental violations. The government and oil exploration company failed to agree on the payment and the licenses were annulled, Ministry of Energy spokesman Bertin Djim said.

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Lake Albert project holds 3Bbbl, Oil of DRCongo says

KINSHASA, Democratic Republic of Congo -- Oil of DRCongo, the Fleurette Group' s oil exploration subsidiary, has announced an update of the interpretation of the recently processed 3D seismic surveys acquired in 2013-14 over its prospects in Blocks I and II in Lake Albert in the Democratic Republic of Congo. The seismic campaign covered approximately 700 km offshore and 150 km onshore. Oil of DRCongo has now completed the interpretation of the seismic data. The analysis was undertaken by GeoTrace and Ecopetrol in conjunction with Sproule International, and it indicates around 3 Bbbl of oil in place.

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TGS supports Liberia's offshore licensing round

ASKER, Norway -- TGS, as the official data provider, is supporting the Liberian government and the National Oil Company of Liberia through the international competitive bidding process for the latest Liberia Basin Bid Round. The round, which is open for three months, from August 5 to October 31, comprises four undrilled offshore petroleum exploration blocks over which TGS has comprehensive, high quality, data coverage constituting 2D in blocks LB-6, LB-7 and 2D/3D in blocks LB-16 and LB-17.

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Lundin Petroleum sells 15% interest in PL359, offshore Norway

Lundin Petroleum AB, through its wholly-owned subsidiary Lundin Norway AS, has entered into an agreement to sell an additional 15% interest in PL359, which contains the Luno II discovery. Lundin Norway will sell a 15% interest to Wintershall Norge AS on the same terms as the PL359 transactions announced on June 17.

The Luno II discovery was made by Lundin Petroleum in 2013 and is located in PL359 in the central North Sea sector of the Norwegian Continental Shelf on the south western flank of the Utsira High approximately 15 km south of the Lundin Petroleum-operated Edvard Grieg field. An appraisal well is currently being drilled.

PL359 also contains numerous drill-ready exploration prospects and the next exploration well on the license is likely to target the stacked Luno II North and Fignon prospects, estimated to contain gross unrisked prospective resources of 46 MMboe.

Ashly Heppenstall, President and CEO, commented; “We are pleased to welcome Wintershall as a partner into PL359 containing the Luno II discovery and additional interesting prospectivity. This deal ensures the equalisation of license interests in PL359 and PL338 which includes the Edvard Grieg development project.”

Lundin Norway is the operator of PL359 and following completion of the transactions will have a 50% interest. Statoil Petroleum ASA has a 15% interest and following completion of these transactions, OMV Norge will have a 20% interest and Wintershall will have a 15% interest.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By ExportGeneral Corporation and services, UK, online.

CAMAC Energy discovers multiple oil, gas reservoirs

HOUSTON -- CAMAC Energy has announced the preliminary results of a successful Oyo field development well offshore Nigeria in OML 120. The Oyo-8 well commenced drilling operations on June 15, 2014, and has both a vertical and a horizontal section. The vertical section was designed to test for additional hydrocarbons in the previously undrilled Eastern fault block of the Oyo field.

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Cobalt falls after SEC Angola corruption case moves forward

HOUSTON (Bloomberg) -- Cobalt International Energy Inc. fell more than 10% after it reported a government corruption investigation into its Angola operations may lead to an enforcement action against the global oil producer. Cobalt, based in Houston, received a Wells Notice from the U.S. Securities and Exchange Commission alleging violations of certain securities laws, the company said August 5 in a filing. The notice is part of an investigation dating back to 2011 examining whether Cobalt may have violated the Foreign Corrupt Practices Act in Angola, one of its biggest regions for investment and exploration.

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Shell begins production from Bonga north west project in Nigeria

Shell begins production from Bonga north west project in Nigeria THE HAGUE, Netherlands Shell’s deep water subsidiary in Nigeria, Shell Nigeria Exploration and Production Company Ltd (SNEPCo) started oil production from the first well at the Bonga North West deep

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Dragon Oil sees Egypt as ‘prime’ area for expansion, CEO says

DUBAI, United Arab Emirates (Bloomberg) -- Dragon Oil Plc CEO Abdul Jaleel Al Khalifa sees Egypt as “one of the prime areas” for expansion after the explorer secured its first contract in the country. “There’s a lot of potential in small deals in Egypt,” Al Khalifa said in a phone interview. “There are also big acquisition targets available. It’s a country with its own challenges, but it’s considered to be a huge growth market for newcomers.”

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EMAS AMC clinches $110 mn contracts for work in Asia Pacific, Africa and GOM

EMAS AMC clinches $110 mn contracts for work in Asia Pacific, Africa and GOM SINGAPORE Ezra Holdings Limited (Ezra), reported that its Subsea Services division, EMAS AMC, has been awarded several projects around the world worth close to $110 million,

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Explorers see promise in Egypt oil, gas when subsidies eased

Explorers in Egypt expect constraints on domestic energy prices to loosen, prompting new investment in oil and natural gas fields.

Companies including Citadel Capital SAE, Circle Oil Plc and Petroceltic International Plc expect President Abdel-Fattah El-Sisi to make good on promises to reduce subsidies of more than $20 billion a year and ease demands that producers sell fuel on the domestic market well below international prices, they said at a conference in London on June 27.

The changes would allow the government to cut the budget deficit and pay suppliers money owed for fuel, said Mohamed Shoeib, a managing director at Cairo-based Citadel. It’s a necessary first step if Egypt wants to lure back investors driven from the country by recent turmoil as it tries to both increase exports and meet surging domestic energy demand.

The government “should tackle the problem and not escape it,” Shoeib, whose company has about $10 billion invested, mostly in Egyptian energy projects, said in an interview. “It should happen very soon.”

Egypt is poised to become a net fuel importer as authorities divert gas from export projects to meet local demand, sometimes failing to pay the suppliers. The practice prevented the UK’s BG Group Plc from meeting contracted LNG shipments this year. The company has been in talks with the government about guarantees for future exports, with receivables for gas still owed by Egypt doubling in a year to March 31.

Oil Minister

Egypt plans to pay at least $1.5 billion to energy suppliers before the end of the year, or about a quarter of its debt as of April, Reuters reported June 26, citing Oil Minister Sherif Ismail.

Egyptian General Petroleum Corp., the state energy company, “is doing the best it can” to pay off the debt, said Chris Green, CEO at Circle Oil. “The key thing is reducing subsidy.”

Sea Dragon Energy Inc. plans to acquire additional assets in the country, said CEO Paul Welch. “The time is great now to get involved in Egypt.”

Oil producers receive international prices for their products in Egypt, while gas suppliers are paid only a fraction of what they could earn from exports when they sell on the domestic market, Stephane Foucaud, a London-based analyst at FirstEnergy Capital Corp., said in an interview at the conference.

“The gas price simply has to increase” and that will “unlock exploration” because some fields are not economic to drill at the current tariff, said David Thomas, COO at Petroceltic. “The country is full of opportunity. My question is, when the race will start?”

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By ExportGeneral Corporation and services, UK, online.

Nigeria, Shell failing to clean oil pollution, report says

LONDON (Bloomberg) -- Nigeria’s government and Royal Dutch Shell Plc have failed to act on a United Nations 2011 report on oil pollution in Ogoniland in the Niger delta, according to an Amnesty International joint assessment. A recommendation by the United Nations Environmental Program to set up a $1 billion fund to clean up contaminated land in the region hasn’t been implemented and both the government and The Hague-based Shell have taken little action, according to the report published by Amnesty, Centre for Environment, Human Rights and Development, Environmental Rights Action, Friends of the Earth Europe, and Platform.

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Bowleven receives government approval to develop block MLHP-7 offshore Cameroon

Bowleven receives government approval to develop block MLHP 7 offshore Cameroon DOUALA, Cameroon Bowleven, reported that the formal decree awarding the Etinde Exploitation Authorisation (EA) has been signed by the President of Cameroon. This concludes the final stage of the

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Galp Energia comes up dry at the Tao-1 well off Morocco

Galp Energia comes up dry at the Tao 1 well off Morocco LISBON, Portugal Galp Energia has concluded the drilling of the exploration well TAO 1, located in the Tarfaya Offshore area, in the Atlantic margin of offshore Morocco, where

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Tangiers Petroleum commences drilling at TAO-1 well

The TAO-1 well is located within a proven petroleum system, adjacent to the Cap Juby heavy oil discovery and has been designed to test up to three stacked objectives, Assaka (Upper Jurassic), Trident (Middle Jurassic) and TMA (Lower Jurassic, contingent upon success at Trident/Assaka).
 
The secondary objective, Assaka, and the main objective at Trident are scheduled to be intersected within approximately 2 months. Contingent upon the results at Assaka and Trident, the Joint Venture will then make a decision to deepen to the TMA objective. The well plan does not include flow testing.
 
The company expects to make additional updates as appropriate during the course of the drilling.
 
Tangiers has a 25% participating interest in the Tarfaya Offshore Block, which is being operated by Galp Energia with a 50% interest. The remaining 25% interest is held by ONHYM (Morocco’s National Office of Hydrocarbons and Mines), which is carried through the exploration phase.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By ExportGeneral Corporation and services, UK, online.