Category: News

Categories
America News Upstream

Oil prices edge down amidst strengthening dollar and supply glut concerns

Oil prices edged down amidst strengthening dollar prices and continued oversupply concerns in the crude market.

Brent futures dropped 10 cents compared to Thursday close, trading at $66.60 a barrel, while US crude futures were down 32 cents, trading at $59.56 a barrel, Reuters reported.

“Ample supply in the market weighed down the prices.”

 

Ample supply in the market weighed down the prices, as International Energy Agency says OPEC cartel is producing at least two million barrels of day more oil to meet demand.

 

Prices were under further pressure as US Energy Information Administration forecast that oil stocks will increase by 1.95 million bpd during the quarter, and remain the same until next year.

The strengthening dollar also added to the pressure, as oil futures priced in dollars made it expensive for buyers in other currencies.

 

Oil prices got some reprieve from increasing tensions in the Gulf after a Singapore-flagged tanker was fired by Iranian naval vessels.

 

Oil traders are keenly waiting for the release of oil drilling rig number data in the US later today

Categories
Africa Exploration Development News Upstream

Universal LNG, Jurong Shipyard launch partnership for offshore gas exploration in Africa

Universal LNG and Jurong Shipyard, the wholly-owned subsidiary of Sembcorp Marine, have joined forces to launch the new West Africa LNG Development in a bid to address the offshore associate gas needs of the African continent.

The West Africa LNG Development is expected to supply Africa with required energy resources, and will reduce pollution globally.

Universal LNG CEO / chairman Jeffrey Liu said: “By aligning ourselves with Sembcorp Marine’s global leading GraviFloat technology platform, we will make a difference globally and improve the quality of life for underserved people of the African continent.”

Sembcorp Marine general manager William Gu said: “Africa is thirsty for energy, and the GraviFloat offshore solution brings modularity, scalability and a much more affordable solution for the region.

“Africa is thirsty for energy, and the GraviFloat offshore solution brings modularity, scalability and a much more affordable solution for the region.”

“This partnership represents a significant new opportunity for the continent, as Africa will receive the resources it needs to supply electricity and running water to underdeveloped regions.”

The partnership aims to deploy new technology to capture and recycle associate gas, and helps supply energy to those limited Sub-Saharan Africans who have access to electricity.

According to Universal LNG, the technology will capture the gas and turn into clean liquified natural gas (LNG).

The United Nations launched the ‘Zero Routine Flaring by 2030’ initiative in April, which is endorsed by nine countries, ten oil companies and six development institutions.

Categories
America News Upstream

LLOG to restart drilling at Deepwater Horizon explosion site in US

US-based LLOG Exploration Offshore is set to restart deep-water drilling near the site of the Deepwater Horizon, after an accident in 2010, killing 11 people.

In April, the Bureau of Safety and Environmental Enforcement issued permits to the oil company to drill a new well near the site where the energy-giant BP’s disaster took place.

The Bureau of Ocean Energy Management approved LLOG’s exploration plan in October 2014 after conducting an environmental review.

“The company will extract oil and gas deep under the Gulf of Mexico’s seafloor by drilling into Block 252 from an adjacent block.”

LLOG deep-water projects vice-president Rick Fowler told the Associated Press (AP) that the company remains committed, and will not allow reoccurrence of such events.

As part of its plans, the company will extract oil and gas deep under the Gulf of Mexico’s seafloor by drilling into Block 252 from an adjacent block, using the semisubmersible drilling rig Sevan Louisiana.

The rig is owned by Norway-based Sevan Drilling.

LLOG, which has drilled eight wells in the Mississippi Canyon area since 2010, has drilled over 50 wells in the gulf since 2002.

The Deepwater Horizon explosion dumped millions of gallons of oil into the Gulf of Mexico.The incident took place in April 2010, when the Transocean-owned Deepwater Horizon semi-submersible Mobile Offshore Drilling Unit (MODU) exploded after experiencing a series of problems.

BP hired the rig to drill into the Macondo field, around 60km southeast of the Louisiana coast in the Gulf of Mexico.

Categories
Europe News Upstream

Atkins wins five-year oil well decommissioning contract with Centrica Energy

Project management and consulting services company Atkins has won a five-year offshore contract to assist UK’s Centrica Energy with oil and gas decommissioning activity.

Under the multidisciplinary pre-FEED (Front End Engineering Design) decommissioning contract, Atkins will provide engineering and design services to the energy company.

According to Atkins, the deal is applicable to any fields to be decommissioned in the UK or Netherlands during the contract period, as decided by Centrica.

“As more oil and gas infrastructure begins to reach the end of its design life, multi-industry expertise and decommissioning experience has become important for Atkins in winning work.”

Atkins oil and gas business managing director Alex Campbell said: “We are looking forward to building on our existing relationship with Centrica and continuing our partnership providing structural and subsea integrity services for their offshore assets.

“As more oil and gas infrastructure begins to reach the end of its design life, multi-industry expertise and decommissioning experience from the nuclear sector, as well as the oil and gas industry, has become an important differentiator for Atkins in winning work.”

Centrica Energy in the UK and the Netherlands projects director Myrtle Dawes said: “We are determined to maximise the potential of all our assets in the North Sea, but in a mature region like the UK Continental Shelf the industry must also think about how we decommission our offshore platforms, subsea infrastructure and pipelines.”

As part of its decommissioning work with Atkins, Centrica aims to focus on completing the job in a safe and environmentally responsible way.

Separately, Centrica Energy has awarded a contract to Offshore Installation Services (OIS), a unit of Acteon to decommission multiple wells in the North Sea.

As per the initial plan OIC will decommission six subsea wells in the central North Sea and they will be decommissioned through a diverless, vessel-based approach.

The work will be carried through an anchor-handling tug supply vessel (AHTS), the Island Valiant.

Categories
Europe News Upstream

Atkins wins five-year oil well decommissioning contract with Centrica Energy

Project management and consulting services company Atkins has won a five-year offshore contract to assist UK’s Centrica Energy with oil and gas decommissioning activity.

Under the multidisciplinary pre-FEED (Front End Engineering Design) decommissioning contract, Atkins will provide engineering and design services to the energy company.

According to Atkins, the deal is applicable to any fields to be decommissioned in the UK or Netherlands during the contract period, as decided by Centrica.

“As more oil and gas infrastructure begins to reach the end of its design life, multi-industry expertise and decommissioning experience has become important for Atkins in winning work.”

Atkins oil and gas business managing director Alex Campbell said: “We are looking forward to building on our existing relationship with Centrica and continuing our partnership providing structural and subsea integrity services for their offshore assets.

“As more oil and gas infrastructure begins to reach the end of its design life, multi-industry expertise and decommissioning experience from the nuclear sector, as well as the oil and gas industry, has become an important differentiator for Atkins in winning work.”

 

Centrica Energy in the UK and the Netherlands projects director Myrtle Dawes said: “We are determined to maximise the potential of all our assets in the North Sea, but in a mature region like the UK Continental Shelf the industry must also think about how we decommission our offshore platforms, subsea infrastructure and pipelines.”

As part of its decommissioning work with Atkins, Centrica aims to focus on completing the job in a safe and environmentally responsible way.

Separately, Centrica Energy has awarded a contract to Offshore Installation Services (OIS), a unit of Acteon to decommission multiple wells in the North Sea.

 

As per the initial plan OIC will decommission six subsea wells in the central North Sea and they will be decommissioned through a diverless, vessel-based approach.

The work will be carried through an anchor-handling tug supply vessel (AHTS), the Island Valiant.

Categories
America News Upstream

Oil prices slip on Thursday over weaker economic data

Oil prices slipped on Thursday following concerns over weak economic data from the world’s top economies, clouding oil demand outlook.

Despite falling stockpiles in the US due to larger than expected drawdown last week, the Marco economic data from across the world weighed down the prices.

Brent crude dropped 10 cents to $66.71 a barrel, while US crude slipped 30 cents to $60.20, Reuters reported.

“Saudi Arabia might be declaring victory on the back of the drop of drilling rigs in the U.S., but the Department of Energy weekly data is not yet showing any significant drop of production.”

 

Despite easier monetary policy, the world’s top energy consumer, China, did not show enough promise in April to drive oil demand. Similarly, Germany too faltered during the first quarter.

After four months of continuous gains, US crude stocks for the second week fell by 2.2 million barrels, compared to an expected growth of 386,000 barrels by analysts.

Inventories still stood at almost 90 million barrels higher than this time in 2014, even after larger drawdown.

Concerns over supply still continued, despite the rise that was witnessed in output in North Dakota.

PetroMatrix’s Olivier Jakob told the news agency in a note: “Saudi Arabia might be declaring victory on the back of the drop of drilling rigs in the U.S., but the Department of Energy weekly data is not yet showing any significant drop of production.”

Categories
News Pipelines & Transport

US DoE grants export authorisation for Corpus Christi Liquefaction Project

US Department of Energy (DoE) has issued final authorisation to Cheniere Energy for the export of Liquefied Natural Gas from its Corpus Christi Liquefaction Project in Texas.

The authorisation allows export of LNG from domestic reserves to countries which have not signed a Free Trade Agreement (FTA) with the US.

The project will now be able to export up to 2.1 billion cubic feet per day (Bcf/d) of natural gas from the site for next 20 years.

As per the Natural Gas Act, export of gas to non FTA signatory countries requires authorisation and during the review the agency found that it is consistent with public interest and provide economic benefit to the country.

DOE however said that the proposed export should be done at a volumetric rate and not to exceed the capacity of the facilities.

Following the approval, Cheniere Energy has announced final investment decision and asked Bechtel Oil, Gas and Chemicals to build first two natural gas liquefaction trains out of three trains planned to be built at the facility.

Cheniere chairman and CEO Charif Souki said: “We have initiated construction on our second LNG export facility, the Corpus Christi liquefaction project, located on the Coastal Bend of Texas along the Gulf of Mexico.

“Including our LNG export facility at Sabine Pass, we now have six trains under construction, with first LNG expected at Sabine Pass from Train 1 by year end.”

Corpus Christi Liquefaction project is designed for approximately 13.5 million tonnes per annum and features three LNG storage tanks with capacity of approximately 10.1 Bcfe, two LNG carrier docks and a 22-mile gas pipeline.

First train from the facility is scheduled to commence operation in 2018 while second train is expected to start operations six to nine months later.

Cheniere Energy is investing about $11.5bn in the first two trains, two LNG storage tanks, one dock and the natural gas supply pipeline.

Categories
Downstream Europe Marketing & Distribution News

Centrica increases gas purchase volume from Statoil and Gazprom Marketing & Trading

UK based utility firm Centrica has agreed to increased the volume of its gas purchase from Norwegian oil and gas firm Statoil and Russian state-owned Gazprom’s UK-based subsidiary.

According to the agreement signed between the two firms in 2011, Statoil was expected to deliver five billion cubic metres (bcm) of gas annually to UK.

The new agreement increases the gas purchase by 2.3 bcm per year, raising it to 7.3 bcm.

Starting from October this year, Statoil will to supply gas to the UK company for ten years, thereby delivering 73 bcm during the term of the contract.

Centrica has also increased the volume gas purchase with Gazprom Marketing & Trading (GM&T), in a separate deal.

GM&T is a UK based subsidiary of OAO Gazprom. The previous deal was signed between the two entities in 2012.

According to the modified agreement terms, Centrica will receive additional volumes of gas takes the average volume to 4.16 bcm per annum.

The new deal increases the total delivery volume from GM&T to 29.1 bcm.

Nearly 70 bcm of natural gas is required by the UK every year for heating up its homes and businesses. The country is also partially dependent on natural gas for power generation.

These long-term supply agreements with Statoil and GM&T are expected to meet the gas requirements of nearly 9 million homes in the country every year.

The deals also increase Centrica’s total commitment for securing gas and electricity through a range of suppliers to more £50bn.

Categories
America News Upstream

Oil prices slip on Thursday over weaker economic data

Oil prices slipped on Thursday following concerns over weak economic data from the world’s top economies, clouding oil demand outlook.

Despite falling stockpiles in the US due to larger than expected drawdown last week, the Marco economic data from across the world weighed down the prices.

Brent crude dropped 10 cents to $66.71 a barrel, while US crude slipped 30 cents to $60.20, Reuters reported.

“Saudi Arabia might be declaring victory on the back of the drop of drilling rigs in the U.S., but the Department of Energy weekly data is not yet showing any significant drop of production.”

Despite easier monetary policy, the world’s top energy consumer, China, did not show enough promise in April to drive oil demand. Similarly, Germany too faltered during the first quarter.

After four months of continuous gains, US crude stocks for the second week fell by 2.2 million barrels, compared to an expected growth of 386,000 barrels by analysts.

Inventories still stood at almost 90 million barrels higher than this time in 2014, even after larger drawdown.

Concerns over supply still continued, despite the rise that was witnessed in output in North Dakota.

PetroMatrix’s Olivier Jakob told the news agency in a note: “Saudi Arabia might be declaring victory on the back of the drop of drilling rigs in the U.S., but the Department of Energy weekly data is not yet showing any significant drop of production.”

Categories
America News Upstream

Oil prices rise on Wednesday following fall in US stockpiles

Oil prices increased on Wednesday following a decline in crude stockpiles at Cushing, Oklahoma in the US.

Brent crude rose 58 cents to $67.44 a barrel, while US crude also gained 64 cents to reach $61.39, Reuters reported.

Data from the American Petroleum Institute Crude highlighted that inventories in the US dipped by two million barrels in the week to 8th May, against expectations of analysts for a 0.386 million barrels rise.

“Any increases in prices would see an automatic response from the market, especially the lower cost producers such as those in the Permian Basin.”

Oil prices received a boost, reaching a five month high as US stockpiles dipped for the second straight week.

Prices have risen as the US Government has forecasted that the crude output growth for 2015 is to fall to 530,000bpd from the existing 550,000bpd, while during 2016 the output could reach 20,000bpd from the previous forecast of 80,000bpd.

Global oil demand for 2015 is expected to reach 1.18 million barrels per day according to the Organization of the Petroleum Exporting Countries (OEC), against 1.17 million that was previously estimated.

The rise in oil price is also triggered by a modest drop in the US dollar over other major currencies.

The news agency quoted BMI Research senior oil analyst Shunling Yap as saying: “Any increases in prices would see an automatic response from the market, especially the lower cost producers such as those in the Permian Basin.”