Oil and Gas News: 05/31/11

Tuesday, May 31, 2011

Oil & Gas Post - All News Report for Tuesday, May 31, 2011

Tuesday, May 31, 2011

Promote Your Page Too

Commodity Corner: Dollar Declines, Crude Climbs

- Commodity Corner: Dollar Declines, Crude Climbs

Tuesday, May 31, 2011
Rigzone Staff
by Saaniya Bangee

Crude futures climbed to a three-week high Tuesday as concerns eased over Europe's debt crisis.

July's oil prices gained $2.11 Tuesday before settling at $102.70 a barrel on the New York Mercantile Exchange. The greenback fell against the euro as the European Union debated on sending additional financial aid to boost Greece's economy. Luxembourg Prime Minister Jean-Claude Juncker said a new aid package will be decided on by the end of June. A weaker dollar increases the appeal of the dollar-denominated commodities making it cheaper for foreign buyers.

After noticing a 40-barrel spill at a pump station in Kansas, TransCanada temporary closed down its Keystone pipeline—further pressuring oil prices Tuesday. The Keystone pipeline carries half a million barrels of crude per day from Alberta to Cushing, Okla., the largest oil storage hub in the U.S.

Oil prices peaked at $103.39 a barrel and bottomed out at $99.60 on Tuesday.

Natural gas for July delivery traded up Tuesday, adding 15 cents to settle at $4.67 per thousand cubic feet. Prices rose to their highest in four weeks on forecasts predicting above-average weather. Hotter weather increases demand for fuel which is required for air conditioning. The intraday range for natural gas was $4.525 to $4.71 per thousand cubic feet.

Gasoline prices also ended higher Tuesday. After fluctuating between $3.07 and $3.165, gasoline settled at $3.15 a gallon, 5.84 cents higher from the previous trading session.

Oil & Gas Post

Promote Your Page Too

Eureka Notes Drilling Progress at Eagle Ford Well

- Eureka Notes Drilling Progress at Eagle Ford Well

Tuesday, May 31, 2011
Eureka Energy Ltd.

Eureka provided an update on drilling at the Black Jack Springs Unit 1H, the first well at its Pan de Azucar Eagle Ford Shale project in Fayette County, onshore Texas USA, which, as per the latest Operator reports was drilling ahead at a measured depth of 14,897 ft.

Mr. Ian McCubbing, Chairman of Eureka stated, "Indications from the Black Jack Springs Unit 1H well are in line with expectations, and therefore very encouraging. Assuming the results from the well remain in line with expectations, the potential impact on Eureka's Pan de Azucar acreage will be significant, and will help shape the Company's appraisal and development strategy for what is now proving to be prime acreage in the Eagle Ford Shale play."

The well which is being drilled by the Operator, Southern Bay Operating, LLC, a wholly-owned subsidiary of GeoResources Inc., has entered the main target zone of the Eagle Ford Shale and is progressing in accordance with the drilling plan. The well is expected to reach total depth within the next five days, after which it will be fracture stimulated.

The fracture stimulation operations are expected to be undertaken within the next few weeks, immediately after the Operator has completed fracture stimulation operations on its two Flatonia wells located less than 10km south west of Eureka's Pan de Azucar area.
The Black Jack Springs Drilling Unit is a 916 acre pooled unit to which Eureka has contributed 86 acres for its 9.4% working interest. The unit is immediately adjacent to the remaining 675 acres (EKA WI 100%) that make up the balance of the Pan de Azucar project.

Oil & Gas Post

Promote Your Page Too

Hardy O&G's Finance Director Waves Goodbye

- Hardy O&G's Finance Director Waves Goodbye

Tuesday, May 31, 2011
Hardy O&G plc

Hardy O&G announced that its Finance Director, Dinesh Dattani FCA will be leaving the Company on August 31, 2011 to return to his permanent residence in Calgary, Canada.

Mr. Dattani joined Hardy as Finance Director in July 2007. He led the process to transfer Hardy's listing from AIM to the main market of the London Stock Exchange, completed a number of successful equity financings and led the finances and admin activities in Hardy's London headquarters.

Hardy has considerable financial and tax expertise in Chennai, India where many of the Company's Corporate and Financial functions will be transferred.

Commenting on the impending departure, Mr. Paul Mortimer, Chairman said, "We would like to thank Dinesh for his considerable contributions to Hardy over the past four years. His expertise and leadership have been instrumental in advancing a number of our strategic objectives. We will be sorry to see him go and we wish him every success in the future."

Oil & Gas Post

Promote Your Page Too

Icon Resumes Drilling at Lydia Well

- Icon Resumes Drilling at Lydia Well

Tuesday, May 31, 2011
Icon Energy Ltd.

Icon announced that Atlas Drilling Rig #2 returned to the Lydia-12 well on March 25. Lydia-12 had been suspended awaiting the arrival of specialized equipment from Perth.

On May 30, operations to recover the stuck drilling assembly were successful.

Drilling recommenced on May 31.

Oil & Gas Post

Promote Your Page Too

Noble Exits Ecuador

- Noble Exits Ecuador

Tuesday, May 31, 2011
Noble Energy Inc.

Noble has received compensation totaling $97 million for the transfer of its assets in Ecuador to various government-affiliated entities. Compensation was received for the offshore Amistad field assets and Block 3 production sharing contract which was terminated by the government of Ecuador on November 25, 2010. In addition, total proceeds included an amount for the assignment of the Machala Power Electricity concession and its associated assets. Noble Energy previously owned these assets with a 100 percent working interest. The Company's net book value for the assets totaled approximately $68 million.

Oil & Gas Post

Promote Your Page Too

Japanese Nuclear Power Plant Disaster Could Cost as much as $246 billion

- Japanese Nuclear Power Plant Disaster Could Cost as much as $246 billion

May 31, 2011

The price tag for the March 11th catastrophe at Japan's Fukushima Daiichi nuclear power plant continues to rise and could cost the country between 5.7 and 20 trillion Yen. That's between $70 and $246 billion. That's according to an estimate by a Japanese research institute and reported by the Kyodo News Tuesday. The Japan Center for Economic Research, a private think tank, estimated that scrapping all six reactors at the complex could cost up to 15 trillion Yen, while compensating people evacuated from the area within 20 kilometers of the plant could reach around 630 billion Yen. Further, the government may be forced to buy up all the contaminated land within that 20-kilometer radius, which would cost another 4.3 trillion Yen.

Oil & Gas Post

Promote Your Page Too

Hyundai Heavy Lands $600MM Order for LNG Carriers

- Hyundai Heavy Lands $600MM Order for LNG Carriers

Tuesday, May 31, 2011
Hyundai Heavy Industries Co. Ltd.

Hyundai Heavy won a US $600 million order to build two 155,000 m3 LNG carriers, including an option for another same class vessel, from Greece-based Dynagas Ltd.

These membrane-type LNG carriers are due for delivery in the second half of 2013. They will feature the Dual Fuel Diesel Engine System which allows the ship to run on oil fuel or natural gas. Due to tightening global regulations on carbon emissions, increasing demand for LNG as an alternative energy source after Japanese nuclear crisis, and price competitiveness of LNG in comparison with oil prices, Hyundai Heavy expects to see more liquefied natural gas carrier orders in the future.

As a part of the Company's long term strategy for the expected increase in demand for LNG carriers and LNG FPSOs, Hyundai Heavy has been actively developing a special welding system that can work on the thick aluminum plates used for the LNG tanks.

Winning this order brings Hyundai Heavy's total new orders in shipbuilding and offshore & engineering divisions so far this year to 42 ships worth of $10.5 billion, or 53% of the new order target of $19.8 billion.

Oil & Gas Post

Promote Your Page Too

InterMoor Secures Conductor Fabrication Installation for Papa Terra Field

- InterMoor Secures Conductor Fabrication Installation for Papa Terra Field

Tuesday, May 31, 2011
InterMoor Inc.

InterMoor has been awarded a contract for the installation of the drilling and production conductors for the Papa Terra project, that has Petrobras as Operator and Chevron as Non-Operator, announced InterMoor President Tom Fulton.

InterMoor is going to be responsible for the design, procurement, fabrication and installation of 15 conductors for the project. All 15 conductors are 36 inches in diameter.

InterMoor is going to fabricate all the conductors at its new 24-acre Morgan City, La. facility. The conductors are going to be installed in water depths up to 3,937 ft (1,200 m) off the coast of Brazil in the southern Campos Basin. The installation is scheduled to begin in the fourth quarter of 2011 utilizing DOF Subsea's Construction Anchor Handling Vessel Skandi Skolten under charter to InterMoor.

"We are proud to have signed this contract with Petrobras and proud to be part of the first TLWP in Brazil," said Fulton. "InterMoor has been developing its strength in the Brazil market through our local office in Rio de Janeiro and this project award confirms the dedication of our efforts to expand our opportunities in the region."

Oil & Gas Post

Promote Your Page Too

Strike Updates Unconventional Position at Southern Cooper

- Strike Updates Unconventional Position at Southern Cooper

Tuesday, May 31, 2011
Strike Energy Ltd.

Strike announced an update on its Southern Cooper unconventional petroleum position in South Australia.

In addition to Strike's recently announced move into the unconventional Eagle Ford shale play in the US, the Southern Cooper position in South Australia demonstrates Strike's high level of exposure to the developing unconventional opportunity space.

Strike holds substantial working interests in PEL 94 (STX: 35%), PEL 95 (STX: 50%) and PEL 96 (STX: 66.67%) which cover an area of 8,400 square kilometers, or two million acres. These permits contain the Permian coal measure and shale sequences that are being evaluated for unconventional gas and liquids hydrocarbons to the north by Beach Energy and more recently by Senex.

In Strike's permits the prospective sequences are predominately less than 2,500 meters in depth and in the early stage thermal maturity window for both gas and oil.

Forward exploration programs in PEL's 94, 95 and 96 are currently being planned with the possibility of drilling in all permits commencing later in 2011 or early 2012. The potential exists for a combined drilling program in the region to take advantage of operating efficiencies. Strike is the operator of PEL 96 and Beach Energy is the operator of PEL's 94 and 95.

Senex Energy announced last week the spudding of its Vintage Crop 1 well, in PEL 516. The well is located 2.5 kilometers east of the PEL 95 permit boundary. Senex Energy intends deepening the well below the Cretaceous and Jurassic Eromanga sequences to evaluate the unconventional gas potential of underlying coals and shales. The well is interpreted to penetrate a similar geological sequence to that which exists in PEL 95. Information from the well will add substantially to the understanding of the unconventional and conventional potential in the region.

Oil & Gas Post

Promote Your Page Too

EGPI Firecreek Briefs Workover Programs at Tx. Wells

- EGPI Firecreek Briefs Workover Programs at Tx. Wells

Tuesday, May 31, 2011
EGPI Firecreek Inc.

EGPI Firecreek announced the progress for two well workover programs in its recently acquired oil and gas interests in the Tubb Leasehold Estate located in the AMOCO/CRAWAR Field in Ward County, TX.

The Company via its operator and co-partner, Success Oil Co., Inc., has completed its workover program on the Crawar (Highland) #1, successfully perforating 200 feet in the Glorietta zone at approximately 3,700 to 3,900 ft., then acidizing-stimulating the depths perforated. Operations subsequently commenced clean up procedures for the well, and completed connections to the existing gas pipeline. Although preliminary reports are favorable, full production data has not yet been made available.

Additionally, the Company has initiated its work program for the Tubb 18-1 well located on the North 40 acres, having perforated select segments of both the Upper Clearfork zone at approximately 4,100 to 4,200 ft. and the Tubb zone at 4,517 to 4,600 ft. This week Success Oil will acidize and remove all the acid and water before executing a fracking procedure in order to stimulate the well formations prior to placing the well back into production.

Dennis Alexander, CEO and Chairman, stated, "We are very pleased with our recent progress in the Tubb Field and are extremely confident that there is a great opportunity ahead for significant expansion. Our Engineers and Operators have identified several good structures for additional oil and gas development in the Tubb field and we are now in negotiations to further develop these leases."

As previously reported, EGPI Firecreek's management is actively expanding its Oil & Gas and Alternative Energy divisions. Current and forecasted demand for both conventional and alternative energy sources are expected to present significant opportunities for the Company giving them the ability to expand their energy operations. EGPI continues to pursue proven production targets, acquisitions for oil & gas business, and strategic alliances for its Alternative Energy division.

Oil & Gas Post

Promote Your Page Too

Statoil, Sintef Sign Landmark Research Agreement

- Statoil, Sintef Sign Landmark Research Agreement

Tuesday, May 31, 2011
Statoil

Statoil and Sintef have signed a new framework agreement – one which likely to be the most comprehensive individual research agreement ever signed in Norway.

With a potential value of NOK 1 billion, the agreement is valid for four years with an option for an additional two plus two years.

"Sintef has both wide and expert knowledge in disciplines that are important to Statoil, such as deepwater and multi-phase technology," said Statoil research and development head Karl Johnny Hersvik.

Statoil entered into its first framework agreement with Sintef in 1985. The cooperation has solved many technological challenges and placed Statoil among the most technologically advanced companies in areas such as liquefied natural gas (LNG), multi-phase and materials technology, as well as carbon dioxide handling.

"This agreement is important to Sintef, and it is a recognition to be chosen as Statoil’s cooperation partner," said Sintef chief executive Unni Steinsmo. "The agreement ensures both predictability and a long-term perspective in our research work."

Statoil will spend half of its NOK 2.4 billion total research and development budget in 2011 on external suppliers, of which Sintef plays a vital role.

"The international focus on research is greater than ever, competition is tougher and research and development will play a fundamental role in solving global energy challenges," said Hersvik. "Our responsibility is to make sure that Statoil possesses the necessary research expertise and capacity, and the agreement with Sintef is an important part of this."

Oil & Gas Post

Promote Your Page Too

WHO says Cellphones may cause Cancer

- WHO says Cellphones may cause Cancer

May 31, 2011

Lead, engine exhaust and chloroform have a new member joining them in the carcinogenic hazard category...cell phones. The World Health Organization now lists mobile phone use to the list.
A team of 31 scientists from 14 countries, including the United States, made the decision after reviewing peer-reviewed studies on cell phone safety. The team found enough evidence to categorize personal exposure as "possibly carcinogenic to humans." What that means is that right now there haven't been enough long-term studies conducted to make a clear conclusion if radiation from cell phones are safe, but there is enough data showing a possible connection that consumers should be alerted. The type of radiation coming out of a cell phone is called non-ionizing which is similar to a very low-powered microwave oven. The European Environmental Agency has pushed for more studies, saying cell phones could be as big a public health risk as smoking, asbestos and leaded gasoline. Manufacturers of many popular cell phones already warn consumers to keep their device away from their body and at a safe distance when in use.

Oil & Gas Post

Promote Your Page Too

Iran Economy Minister May Attend OPEC Meeting June 8

- Iran Economy Minister May Attend OPEC Meeting June 8

Tuesday, May 31, 2011
Dow Jones Newswires
by Benoit Faucon

Iran's Economy Minister Shamseddin Hosseini may represent the Islamic Republic at the next meeting of the Organization of Petroleum Exporting Countries, a person familiar with the matter said over the weekend.

"It's a possibility," the person familiar with the matter said.

The considerations are bringing some clarity over who could chair the gathering at a key juncture for the producer group.

Iran's Oil Ministry caretaker head, President Mahmoud Ahmadinejad, has told officials he wouldn't attend, breaking away from earlier governmental statements that he would come.

Attendance by the economy minister, who would represent the holder of the presidency Iran, would make sense for the country at a time of increased budgetary needs from oil revenues.

But Iran's OPEC governor Muhammad Ali Khatibi said last week that "we are waiting for a decision from the president."

OPEC will have to decide June 8 in Vienna if it increases its output quotas or keeps them unchanged.

Copyright (c) 2011 Dow Jones & Company, Inc.

Oil & Gas Post

Promote Your Page Too

Energy Bills Put 'Fracking' On Different Tracks

- Energy Bills Put 'Fracking' On Different Tracks

Tuesday, May 31, 2011
The News & Observer, Raleigh, N.C.
by John Murawski & Rob Christensen

Two energy-related bills making their way through the legislature underscore the excitement and the anxiety that energy exploration engenders in this state.

Their official titles notwithstanding, one bill might well be called the Go Slow bill and the other the Hurry Up bill.

A House bill focusing on natural gas, HB 242, directs the state to spend $100,000 to study the effect of exploring natural gas trapped in prehistoric shale formations underground, centered in Lee County.

This bill, sponsored by Reps. Mike Stone, a Republican from Sanford, and Mitch Gillespie, a Republican from Marion, takes a cautious tone with regard to the controversial horizontal drilling and hydraulic fracturing (or "fracking") technologies used to gain access to the natural gas. The practices are not legal in this state and would require approval by the General Assembly.

The bill was introduced March 7. On Thursday, it was approved by the Finance Committee and sent to the Appropriations Committee. If it is approved by the House, it would set the stage for a 2013 bill that would regulate the industry.

There's no such waiting with the Senate's fracking bill. The title of the bill says it all: Energy Jobs Act. Sponsored by Rep. Bob Rucho, a Republican from Matthews, SB709 encourages offshore oil and gas exploration, inland shale gas exploration and domestic energy production in general to achieve energy independence. It also would allow fracking to start much sooner in the state.

The bill would also create an Energy Jobs Council "to protect the economy of the State, promote job creation and expand business and industry opportunities."

The council would also come up with emergency plans to deal with energy shortages in this state.

The legislation was introduced April 19 and by May 10 had passed the Senate, but has not had a vote in the House.

Burr likes agency mergers

Republican Sen. Richard Burr has introduced a bill to merge the departments of Labor and Commerce into a new Department of Commerce and the Workforce.

Burr said the move would save money and end duplication and would help the country's economic policies by ensuring a consistent approach.

"The amount of money wasted annually on duplicative programs within the federal government is staggering," Burr said in a statement.

"In his State of the Union address this year," Burr said, "the president proposed merging and consolidating federal agencies and this bill advances that proposal. This common-sense approach reduces duplication by combing offices with similar functions within these two agencies and would streamline our approach to comprehensive policy."

Labor was part of the Department of Commerce until President William Howard Taft made it a separate Cabinet agency in 1913. President Lyndon Johnson considered combining the two in the 1960s.

This month, Burr introduced a bill that would combine the Department of Energy and the Environmental Protection Agency.

Copyright (c) 2011, The News & Observer, Raleigh, N.C.

Oil & Gas Post

Promote Your Page Too

McKinley Seeks to Keep Marcellus Jobs in W.Va.

- McKinley Seeks to Keep Marcellus Jobs in W.Va.

Tuesday, May 31, 2011
Knight Ridder/Tribune Business News

Rep. David B. McKinley, RW.Wa., posted on Facebook last week that he is co-sponsoring legislation from Rep. Mark S. Critz, D-Pa., to augment on-the-job training programs for the Marcellus shale industry.

HR 1396 amends the Workforce Investment Act of 1998 to require the U.S. secretary of labor to make discretionary grants to local areas for adult on-the-job training or dislocated worker on-the-job training at worksites directly related to the exploration, production and transportation of natural gas from the Marcellus shale formation.

"Discovery of Marcellus shale has already created hundreds of jobs in northern West Virginia and we must protect those jobs for West Virginians," McKinley said. "We have seen our local hotels to capacity with out-of-state workers doing the same job that our workforce could handle with the proper training. The resources our state naturally has should be used for the benefit of the people from our state. ... We must do everything we can to get our state back to work and this piece of legislation is a step in the right direction for achieving that goal."

The posting notes that McKinley is also a founding member of the bipartisan Congressional Marcellus Shale Caucus, devoted to discussing how to best harness the economic development and energy independence potential of Shale gas production while providing reasonable protections for landowners and the environment.

Copyright (c) 2011, The Dominion Post, Morgantown, W.Va.

Oil & Gas Post

Promote Your Page Too

Noble Strikes Oil at Santiago Prospect in GOM

- Noble Strikes Oil at Santiago Prospect in GOM

Tuesday, May 31, 2011
Noble Energy Inc.
by SubseaIQ

Noble Energy announced a discovery at the Santiago exploration prospect in the deepwater Gulf of Mexico. The well, located in 6,500 feet of water on Mississippi Canyon Block 519, was drilled to a total depth of approximately 18,920 feet. Open-hole logging identified approximately 60 feet of oil pay in a high-quality Miocene reservoir. Noble Energy is the operator at Santiago with a 23.25 percent working interest.

Santiago is the third discovery in the Company's Galapagos project, in addition to the prior successes at Santa Cruz and Isabela. Total gross resources discovered in the larger Galapagos project, including the Santiago well, are estimated by Noble Energy to be 130 million barrels of oil equivalent. Approximately 75 percent of the discovered resources are oil.

Charles D. Davidson, Noble Energy's Chairman and CEO, said, "The discovery at Santiago is a great way to resume our drilling program in the deepwater Gulf of Mexico. The well results were very consistent with our pre-drill expectations, and our teams did an outstanding job in the midst of a changing operating environment. We expect all three wells at Galapagos to be online in early 2012, and we are increasing the project's total net production impact to Noble Energy to over ten thousand barrels of oil per day. This major project will deliver significant near-term production and cash flow for our business."

In late February 2011, the Company received the industry's first drilling permit after the deepwater Gulf of Mexico moratorium for the Santiago prospect, where drilling was suspended in June 2010. Drilling operations resumed in early April 2011 following multiple reviews of operating and response plans, as well as third-party certifications of well designs and equipment.

Utilizing the Ensco 8501 drilling rig, the Company will immediately proceed with completion operations at Santiago. Those operations are expected to last approximately two months, after which the Company is planning to return to drilling the Deep Blue prospect (Green Canyon 723). Following Deep Blue, the Company is planning to spud an appraisal well at the Gunflint discovery (Mississippi Canyon 948).

Other interest owners in the Santiago discovery are Houston Energy, L.P. with 10 percent, Red Willow Offshore, LLC with 20.25 percent, and BP Exploration & Production Inc., a wholly-owned subsidiary of BP America Inc. with the remaining 46.5 percent.

Oil & Gas Post

Promote Your Page Too

The Conference Board's Consumer Confidence Index Declines to 60.8 in May

- The Conference Board's Consumer Confidence Index Declines to 60.8 in May

May 31, 2011

The Conference Board's consumer confidence index decreased to 60.8 in May, down from 66.0 in April. Economists had expected an increase to 67.5 for May.

The present situation index declined to 39.3 from 40.2, and the index for future expectations declined to 75.2 from 83.2 last month.

The cutoff date for these preliminary results for the month was May 18, 2011.

Lynn Franco, Director of The Conference Board Consumer Research Center commented: "A more pessimistic outlook is the primary reason for this month's decline in consumer confidence. Consumers are considerably more apprehensive about future business and labor market conditions as well as their income prospects. Inflation concerns, which had eased last month, have picked up once again. On the other hand, consumers' assessment of current conditions declined only modestly, suggesting no significant pickup or deterioration in the pace of growth."

The proportion of consumers expected business conditions to improve over the next six months declined to 17% form 19.2%, with those expected conditions to worsen increased to 15.5% from April's 14.0%.

Oil & Gas Post

Promote Your Page Too

TransCanada Shuts Down Keystone Pipeline Due to Leak in Kansas

- TransCanada Shuts Down Keystone Pipeline Due to Leak in Kansas

May 31, 2011

A small leak in Kansas causes North American energy infrastructure company TransCanada (TRP) to shut down one of it's pipelines today. According to Reuters, The Keystone pipeline was closed but it's not the first time. The 591,000-barrel-per-day pipeline was also shut down earlier this month after a leak in North Dakota. A company spokesperson said no time has been set to restart the pipeline. TransCanada focuses on natural gas pipelines, oil pipelines and energy. Company shares are up 1.68% to $44.82.

Oil & Gas Post

Promote Your Page Too

Petrobangla to Invite Int'l Gas Block Bids in July

- Petrobangla to Invite Int'l Gas Block Bids in July

Tuesday, May 31, 2011
Asia Pulse Pte Ltd.

Bangladesh's state-owned oil and gas firm Petrobangla may get the final nod sometime next in June and begin international bidding for the country's gas blocks in July, Energy Ministry officials have said.

According to the officials, the preparation is progressing at an accelerated pace targeting the middle of the year to invite international oil companies (IOCs) in the Bidding Round 2011.

This will be the fourth international bidding after the last caretaker government had invited the third round bidding in 2008.

Energy Ministry officials said the nagging gas crisis has prompted the government to go for hurried international bidding.

An official said the Petrobangla has already prepared a map for the whole bidding area covering both the offshore and onshore areas of the country.

As per the bidding plan, the country's total area has been divided into 68 gas blocks but the bidding will be held for only 31 blocks - 23 onshore areas and eight offshore areas. During the third round bidding, the country's total area was divided into 57 gas blocks.

An Energy Ministry official said the bidding will be kept confined only within the onshore and shallow-water block areas where no dispute exists.

He said the blocks located in deep sea areas have been left out of the bidding as some of them have disputes of overlapping with neighbors.

The disputed areas now await a settlement in the UNCLOS, a UN agency responsible to deal with the maritime boundary dispute for settlement.

Petrobangla officials said they have already sent an initial plan to the Energy Division for scrutiny and necessary observation.

"Upon receiving the Energy Division's observations, we will prepare the final draft for the bidding and also other relevant documentations, including some promotional packages for the interested investors," a top official of Petrobangla told UNB.

"Petrobangla will then place the bidding plan to an inter-ministerial meeting to be convened by the Energy Ministry," he said. "When we receive the nod from that meeting, we would go for the bidding."

The official felt that the remaining process will take about a month and the bidding will finally be floated in July.

He said in the coming round of bidding, there will be some changes in the context of global scenario of hydrocarbon and petroleum business.

(C) 2011 Asia Pulse Pte Ltd.

Oil & Gas Post

Promote Your Page Too

Desire Completes Seismic Acquisition Program in Falklands

- Desire Completes Seismic Acquisition Program in Falklands

Tuesday, May 31, 2011
Desire Petroleum plc
by SubseaIQ

Desire's 3D seismic acquisition program is now complete and the full-fold area of coverage is approximately 1416 square kilometers in Tranches C, D, F and adjacent open areas. Combined with Desire's existing 3D data, these new data provide almost full coverage of the East Flank Play Fairway on Desire's acreage and extended coverage of the Liz area, Ann, Pam and Helen prospects. A planned extension of the survey to the south was curtailed due to poor weather conditions.

The fully processed data for the northern part of Tranche D and the Ann prospect area are being fast-tracked and are expected to be available in July. A fully merged data set covering all prospective areas is expected to be available towards the end of 2011.

However the preliminary raw stack data have been received for the area at the northern end of Tranches C and D and the initial indications for new prospects are encouraging. In particular, two new leads, Beverley and Shona, have been identified so far. The Shona lead is at the same stratigraphic level as the Rockhopper Sea Lion discovery and extends northwards to the block boundary of Tranche D, while the Beverley lead is at a shallower stratigraphic level and is mapped wholly within Tranche D.

Commenting on the announcement Chairman Stephen Phipps said, "We are pleased with the preliminary results from the new seismic data and feel that it highlights new prospectivity within our acreage. We anticipate the prospect inventory will continue to grow as the fully processed seismic data are delivered and interpreted."

Oil & Gas Post

Promote Your Page Too

Indonesia Urged to Name Pertamina Operator of E. Natuna Block

- Indonesia Urged to Name Pertamina Operator of E. Natuna Block

Tuesday, May 31, 2011
Asia Pulse Pte Ltd.

The Indonesian government is urged not to hesitate in naming state oil and gas firm PT Pertamina as the operator of the East Natuna block for the national interest.

Executive director of Indonesian Resources Studies Marwan Batubara said Pertamina has repeatedly said that it is keen on being the operator of the giant gas block.

Marwan said he suspected the government tended to hand over the job to ExxonMobil, which is one of Pertamina's partners in the US $52 billion venture.

East Natuna block in the South China Sea of Riau, is believed to have a potential reserve of 222 trillion cubic feet of gas and 500 billion barrels oil with proven gas reserve of 46 trillion cubic feet.

The government has awarded the project to Pertamina but the company needs financially powerful partners with high technology as the Natuna gas is known to have high content of CO2.

Pertamina already signed an initial agreement with ExxonMobil and two other partners Total E&P Activities Petrolieries and Petronas.

The government has given Pertamina and its three partners until August to wrap up negotiations on commercial terms before a production sharing contract is signed.

(C) 2011 Asia Pulse Pte Ltd.

Oil & Gas Post

Promote Your Page Too

Salamander to Farm-Out Stake Offshore Vietnam

- Salamander to Farm-Out Stake Offshore Vietnam

Tuesday, May 31, 2011
Salamander Energy plc
by SubseaIQ

Salamander has executed an agreement to farm-out a 20% interest in Block 101-100/04, Offshore Northern Vietnam to JX Nippon Oil & Gas Exploration Corporation ("JX-NOEX"). Block 101-100/04 is operated by Salamander and contains the Cat Ba oil prospect that will be tested with the CB-1X well in Q3 2011.

JX-NOEX will earn a 20% working interest in Block 101-100/04 from Salamander through funding a promoted cost of the CB-1X well.

The Cat Ba oil prospect has oil potential in both basement and in the overlying clastics, and has a mean prospective resource of c. 100 MMbo. It is an analogue to the neighboring Ham Rong oil field, declared commercial by Petronas in 2010. The prospect will be tested by the CB-1X exploration well, to be drilled in July 2011, using the Aquamarine Driller jack-up drilling unit.

Completion of the transaction is subject to host government approval.

Commenting on the transaction, James Menzies, CEO of Salamander said, "Bringing in a partner like JX-NOEX demonstrates the industry interest in this emerging oil play and highlights the attractions of the Cat Ba prospect. This transaction reduces Salamander's financial exposure to the drilling of the CB-1X well, while we remain highly leveraged to the upside in the event of success at Cat Ba."

Oil & Gas Post

Promote Your Page Too

Caterpillar and GE investigation for price fixing

- Caterpillar and GE investigation for price fixing

May 31, 2011

EU regulators said they had reason to believe Caterpiller and GE may have violated price fixing rules. Both companies said on Monday that European Commission antitrust officials conducting a probe of possible collusion among producers of industrial piston engines had inspected them last week. Caterpillar and GE confirmed that their offices had been raided, and said the company is fully cooperating with officials. The dawn raids occurred on May 25th, and are the first step in probes that could potentially result in fines of up to 10% of yearly revenues.

Oil & Gas Post

Promote Your Page Too

Condor Appraisal Encounters Hydrocarbon Pay

- Condor Appraisal Encounters Hydrocarbon Pay

Tuesday, May 31, 2011
Condor Petroleum Inc.

Condor announced that its Shoba-3 appraisal well has reached a total depth of 943 meters and encountered a 48 meter continuous hydrocarbon column in the Triassic zone. Shoba-3 net pay is comprised of 18.4 meters of oil and 16 meters of gas in sandstone reservoirs. 46.5 meters of core was also recovered to assist with additional reservoir characterization. The Shoba-3 well is located on the 2,610 sq. km Zharkamys West 1 contract territory (the "Zharkamys Territory"), situated in Kazakhstan's Pre-Caspian basin.

The Shoba-3 well further appraised the Shoba structure, offsetting the successful Shoba-1 and Shoba-2 wells. Based on pressure and well log data, all three wells have a common gas-oil and oil-water contacts. Shoba-3 is expected to be completed once regulatory approvals are obtained.

The drilling rig used for the Shoba-3 well is now mobilizing to Kiyaktysay North-3, a separate structure approximately 17 km south east of the Shoba field.

Oil & Gas Post

Promote Your Page Too

Drilling Commenced at AWE's Arrowsmith Well

- Drilling Commenced at AWE's Arrowsmith Well

Tuesday, May 31, 2011
AWE Ltd.

AWE reported that the Arrowsmith-2 exploration well, located in Exploration Permit 413 (EP- 413) commenced drilling at 0830 hours (Western Standard Time) on May 29, 2011. At 0600 hours (WST) the well was drilling ahead at a measured depth of 580 meters.

The Arrowsmith-2 well is designed to test the unconventional gas potential of the Carynginia Formation, Irwin River Coal Measures and Kockatea Shale and will be drilled to a proposed total depth of approximately 3,420 meters.

The well is located approximately 25 kilometers from the Woodada Deep-1 well (deepened by AWE in April 2010 to acquire cores over the Carynginia Shale interval), and approximately 500 meters south east of the Arrowsmith-1 well, which tested gas from the Carynginia Formation.

During drilling, the joint venture is planning to cut conventional cores from the middle Carynginia Shale and Irwin River Coal Measures. On completion of drilling, the well will be suspended for future fracture stimulation and testing which is planned for later in the year.

The participants in EP 413 are:

AWE Limited (via subsidiaries) 44.252%
Norwest Energy NL (Operator) 27.945%
Bharat PetroResources Ltd 27.803%

Promote Your Page Too

Premier Signs SPA for Solan Field Development

- Premier Signs SPA for Solan Field Development

Tuesday, May 31, 2011
Premier Oil plc

Premier has signed the sale and purchase agreement (SPA) with Chrysaor to acquire equity in License P164 in order to participate in the development of the Solan field in the UK for an upfront consideration of US $10 million, with US $10 million to follow upon sanction as well as a partial development carry. Premier will hold 60% equity and become Development Operator.

Premier will provide a loan to fund Chrysaor's remaining share of the project costs, which will then be repaid by a cash sweep from a share of their revenue.

Project sanction is targeted for later this year.

Simon Lockett, Chief Executive, commented, "We look forward to adding Premier's project management skills to the significant work already put in by the Chrysaor team and together taking the Solan field through the development process."

Oil & Gas Post

Promote Your Page Too

Aker to Supply Subsea Production Control Umilicals for Chevron

- Aker to Supply Subsea Production Control Umilicals for Chevron

Tuesday, May 31, 2011
Aker Solutions

Aker Solutions has been selected to supply three subsea production control umbilicals for the Chevron operated Jack & St. Malo field developments in the Gulf of Mexico. Contract value is undisclosed.

The production control umbilicals will provide hydraulic, electrical and fiber optic service to the Jack and St. Malo subsea fields. Scope of work includes three electro-hydraulic steel tube production umbilicals totaling 40 miles (65 kilometers). Engineering, project management, and manufacturing will take place at Aker Solutions' state-of-the-art umbilical facility in Mobile, Alabama. The three umbilicals will be used at Chevron's Jack & St. Malo field, located in the Walker Ridge Area of the Gulf of Mexico in water depths of approximately 7,000 feet (2,100 meters).

"Aker Solutions is excited to see Chevron come back to us with a repeat order and is proud to contribute to this very important project for Chevron and for the Gulf of Mexico region," said Erik Wiik, President - Subsea North America, Aker Solutions.

Oil & Gas Post

Promote Your Page Too

Tag Touts Flow Test Results at Cheal-B4ST Well

- Tag Touts Flow Test Results at Cheal-B4ST Well

Tuesday, May 31, 2011
TAG Oil Ltd.

TAG Oil announced that completion and flow testing operations on the Cheal-B4ST discovery well located in PML 38156, Taranaki Basin, New Zealand, have been completed, and the well has now been placed on permanent production into TAG's 100%-owned Cheal Production Facility.

The Cheal-B4ST vertical exploration well was drilled to a total depth of 1821m (5973 feet), encountering net pay in both the Urenui and Mt. Messenger Formations. Flow rates averaged 400 barrels of oil equivalent (BOE) per day (360 barrels of oil + 240 thousand cubic feet gas) after the first week of production.

The Cheal-B4ST well encountered 17 meters (56 feet) of net pay within the Urenui (~1400m) and Mt. Messenger (~1700m) zones. These Miocene-aged zones were isolated and tested separately, confirming oil and gas flow rates from both zones. The final completion co-mingles the two zones.

TAG Oil CEO Garth Johnson commented, "The Cheal-B4ST well represents a significant milestone for the Cheal oil and gas field and opens the door for substantial reserve growth. Prior to this year, all our Cheal reserves were assigned solely to the Mt. Messenger Formation, but with Cheal-B4ST, we now have three wells producing oil from the Urenui Formation as well. Given these excellent results, further development of the widespread Urenui Formation will be a top priority."

TAG also reports that the Company is expanding the capabilities of the artificial lift systems at the Cheal Production Facility to accommodate the new wells drilled in the last nine months. At present, the Plant is producing approximately 1000 barrels of oil equivalent per day with approximately 350 barrels of oil equivalent per day that is shutin, awaiting completion of the expansion. The expansion work is scheduled to be complete by September 2011 at a nominal cost.

The Cheal oil and gas field is located in Petroleum Mining Permit 38156 in the Taranaki Basin New Zealand.

Oil & Gas Post

Promote Your Page Too

Ensco Completes Pride Acquisition

- Ensco Completes Pride Acquisition

Tuesday, May 31, 2011
Ensco plc

Ensco announced the completion of its acquisition of Pride International after both companies received overwhelming shareholder approvals at special meetings held earlier today. The combination establishes Ensco as the world's second largest offshore drilling company and the clear leader in customer satisfaction.

Under the terms of the agreement, with exceptions for certain UK residents and dissenting stockholders, Pride International stockholders are receiving 0.4778 newly-issued shares of Ensco plus $15.60 in cash for each share of Pride International common stock. The shares of Ensco will continue to be listed and traded as American Depositary Shares on the New York Stock Exchange under the symbol, ESV. Effective as of the close of trading today, Pride International common stock will cease trading.

Chairman and CEO Dan Rabun said, "Today is an important milestone in Ensco's history. Through this transaction, we have expanded our deepwater fleet with drillship assets, and now have a substantial presence in Brazil and West Africa – both strategic, high-growth markets. In addition, we have gained major new customers from around the world.”

Ensco's expanded rig fleet is made up of seven ultra-deepwater drillships, 13 dynamically positioned semisubmersibles, seven moored semisubmersibles and 49 premium jackups. The ultra-deepwater fleet is the newest in the industry and the active premium jackup fleet is the largest of any driller. Several technologically-advanced drillships, semisubmersibles and ultra-premium harsh environment jackups are under construction as part of Ensco's ongoing strategy to continually high-grade the fleet.

Mr. Rabun added, "We are the industry leader in customer satisfaction having collectively earned the top ranking in 14 of 16 separate categories in EnergyPoint's recent survey of customers in the global oilfield. This recognition, coupled with our enhanced rig fleet and expertise, will enable us to further capitalize on growth opportunities worldwide."

As contemplated under the merger agreement, David A.B. Brown and Francis S. Kalman have joined Ensco's Board of Directors effective today. Both are former directors of Pride International. Recently, Paul E. Rowsey III was appointed by Ensco's Board of Directors as the Lead Director.

As previously announced, Mr. Rabun will continue as Chairman, President and CEO of Ensco and James W. Swent will continue as Senior Vice President and Chief Financial Officer. Others named to the executive management team include:

William S. Chadwick, Jr. – Executive Vice President and Chief Operating Officer
J. Mark Burns – Senior Vice President, Western Hemisphere
P. Carey Lowe – Senior Vice President, Eastern Hemisphere
John Knowlton – Senior Vice President, Technical
Kevin C. Robert – Senior Vice President, Marketing

The Company will be managed through five regional business units:

North & South America (excluding Brazil)
Brazil
Europe & Mediterranean
Middle East & Africa
Asia & Pacific Rim

Promote Your Page Too

U.S. Automakers Prepare for Massive Factory Hiring

U.S. Automakers Prepare for Massive Factory Hiring

May 31, 2011

General Motors (NYSE:GM), Ford (NYSE:F) and Chrysler (FIATY) are preparing for a massive factory hiring as the companies boost production to satisfy the returning appetite for new vehicles. All three automakers have recalled many laid-off workers after eliminating tens of thousands of hourly jobs during the downturn. All new entry-level workers from now on will start at about $14 an hour, about half the veteran wage, and less than the average U.S. manufacturing wage of $18.89 an hour, according to the Bureau of Labor Statistics.

Oil & Gas Post

Promote Your Page Too

European Shale Gas Is Still Hot Air

- European Shale Gas Is Still Hot Air

Tuesday, May 31, 2011
Dow Jones Newswires
by Andrew Peaple

Shale gas has been a game-changer for U.S. energy markets. Following an estimated $250 billion of investment, 23% of US gas production now comes from rocks several thousand meters underground, up from 1% 10 years ago. Could Europe see a similar shale gas revolution?

That seems unlikely for the moment. True, Europe could have 639 trillion cubic feet of shale gas, only 25% less than the U.S., according to the U.S. Energy Information Administration. That could reduce its reliance on gas imports and more polluting alternative fuels. Around 50 companies are exploring for gas now, from majors like ExxonMobil to small independents.

But European shale gas is likely to be much more costly to develop. European shale depths are on average 1.5 times lower than in the U.S., according to the Oxford Institute for Energy Studies. Europe's dense population doesn't help, as the number of wells needed for commercial shale gas production requires lots of space. Drilling costs are also likely to be higher in Europe, given the lack of a high-tech services sector to support the industry.

Meanwhile shale gas faces opposition from environmentalists who fear the extraction process could damage water supply. France is close to banning activity, despite having substantial potential reserves. Production costs could be as high as $16.2 per thousand cubic feet (mcf), according to OIES. That compares with the $8.7 per mcf Gazprom, Europe's main gas supplier, charged for contracted gas in 2010. Existing gas imports from Russia and Africa cost between $3 and $6 per mcf, while US shale gas production costs are around $3 per mcf.

Clearly, the outlook for shale gas would improve if gas prices rise. But few expect them to rise high enough to make European shale gas profitable; Bernstein Research expects prices to reach $13.8 mcf by 2015 while Wood Mackenzie expects oil-linked gas prices to rise to only around $11 per mcf by 2025. And in the U.S., the shale gas supply shock has seen prices fall rapidly, meaning producers' returns on investment are in single-digits now, according to TPH.

Europe's shale gas revolution may be a long time coming.

Copyright (c) 2011 Dow Jones & Company, Inc.

Oil & Gas Post

Promote Your Page Too

PTTEP Lines Up Seadrill Jackup Offshore Thailand

- PTTEP Lines Up Seadrill Jackup Offshore Thailand

Tuesday, May 31, 2011
Seadrill Ltd.

Seadrill has been awarded a new contract by PTTEP in Thailand for the jackup rig West Leda. The assignment is for a firm period of nine months and with an option to extend for a further six months. The contract value for the firm period is approximately US $35 million. Commencement of the operations under the new contract is scheduled for late second quarter 2011, in direct continuation of the rig's existing contract.

Alf C Thorkildsen, Chief Executive Officer in Seadrill Management AS, said, "We are pleased to secure a new contract for one of our jack-ups in the South East Asia region. We consider this as an excellent opportunity to further strengthening our relationship with PTTEP, one of our key customers. Representing a total contract value of US $35 million, this assignment improves the earnings visibility for our jack-ups."

Oil & Gas Post

Promote Your Page Too

Marathon Halts Production Offshore Norway

- Marathon Halts Production Offshore Norway

Tuesday, May 31, 2011
Lundin Petroleum AB

Lundin reported that production from the Alvheim field (Lundin Petroleum working interest (WI) 15%) and the Volund field (Lundin Petroleum WI 35%), offshore Norway was shut down for 13 days in May due to unscheduled maintenance on the Alvheim FPSO. The shut down was required in order for the operator Marathon Petroleum Norge AS to carry out preventative maintenance works on the Alvheim FPSO's fire prevention system.

The Alvheim FPSO has now resumed normal operations and the Alvheim and Volund fields have recommenced production.

Oil & Gas Post

Promote Your Page Too

McDermott Scores Pipeline Installation Proj. in GOM

- McDermott Scores Pipeline Installation Proj. in GOM

Tuesday, May 31, 2011
McDermott International Inc.

McDermott's subsidiaries was awarded a contract by PEMEX Exploración y Producción for procurement, construction and installation of three oil and gas pipelines ranging from 8 to 20 inches in diameter, in Mexico's Bay of Campeche. The contract is valued at more than US $50 million and will be included in McDermott's second quarter backlog for 2011.

"We are pleased to be working again for PEMEX in the Gulf of Mexico. Our installation solution for this project will be supported by our subsea engineering design group in Houston and fabrication work from our construction yard in Altamira, Mexico," said Stephen M. Johnson, McDermott's Chairman, President and Chief Executive Officer.

Pipeline installation engineering is expected to begin in the second quarter of 2011, with subsequent fabrication of the risers, clamps and guards, subsea tie-in assembly and additional platform piping and structural items from Altamira. McDermott's DB16 will perform the installation work, with completion expected by the end of the year.

DB16 is outfitted with a customized Automatic Welding System that offers high weld production rates and production flexibility. The vessel and its crew are recognized for producing repeatable high-quality welds with exceptional mechanical properties. Also impressive is the vessel's underwater block, capable of lifting large amounts of tonnage into deepwater.

The field development in the Gulf of Mexico sits in approximately 170 feet of water. The pipelines will run from the Kambesah Wells Recoverer Structure to the Kutz TA platform and the Ixtoc-A platform.

Oil & Gas Post

Promote Your Page Too

Tullow Lists Shares on Ghana Stock Exchange

- Tullow Lists Shares on Ghana Stock Exchange

Tuesday, May 31, 2011
Tullow Oil plc

Tullow announced its plans for a secondary listing of its shares on the Ghana Stock Exchange (GSE) and an offering of 4,000,000 Tullow shares in Ghana.

The offer of Tullow shares on the GSE will give everyone in Ghana the opportunity to apply for shares in Tullow and to share in the future performance of Tullow's operations across its global portfolio of assets. This listing and share offer further demonstrates Tullow's long-term commitment to Ghana.

The share price for the offer will be announced on Monday, June 13, 2011. Shares can be applied for between June 13, 2011 and July 4, 2011 through Tullow's sponsoring broker, IC Securities (Ghana) Limited or visiting any branch of Standard Chartered or Agricultural Development Bank in Ghana or the office of any of the authorized receiving agents.

Tullow expects to publish a prospectus which further describes the secondary listing and share offer under Ghanaian law on 13 June 2011. Any decision to invest in shares which form part of the offer should only be made on the basis of information set out in that prospectus.

Commenting, Aidan Heavey, Chief Executive, said, "Tullow is fortunate to have played a pivotal role in delivering First Oil from the word-class Jubilee field, offshore Ghana. We would like everyone in Ghana to have the opportunity to invest in the future performance of Tullow, especially as we embark upon further exciting exploration and development activities in Ghana and across our global portfolio. With the support of the Ghana Stock Exchange, the Securities and Exchange Commission and Ghanaian advisers and banks, we are making our shares accessible to anyone in Ghana who wishes to take part in the share offer."

Oil & Gas Post

Promote Your Page Too

Subscribe to: Posts (Atom)