ONGC Chairman: Plan To Bid Aggressively for Overseas Blocks

- ONGC Chairman: Plan To Bid Aggressively for Overseas Blocks

Thursday, August 25, 2011
Dow Jones Newswires
NEW DELHI
by Rakesh Sharma

Oil & Natural Gas Corp. (ONGC) plans to aggressively bid for oil and gas assets overseas in upcoming auctions as part of its strategy to more than double oil production abroad to 20 million tons a year by 2020, the chairman of India's flagship explorer said.

ONGC plans to work with other Indian state-run oil and gas companies through its overseas investment arm ONGC Videsh Ltd., or OVL, to bid for assets overseas, A.K. Hazarika told Dow Jones Newswires in an interview late Wednesday.

"Ours is an import-dependent country and we need energy," Hazarika said. "Although, all the companies can go out and bid, we shouldn't be competing against each other. So we will form joint ventures."

India's state-run companies have lagged behind those from bigger Asian rival China in acquiring energy assets overseas.

OVL's last big acquisition was Russia-focused Imperial Energy in January 2009, which it bought for $2.12 billion.

The federal government is now considering creating a sovereign fund focused on resource asset acquisition overseas to seek energy sources for the world's second-fastest growing major economy.

OVL has been shortlisted to bid in Iraq's forthcoming auction round, Hazarika said, adding his company will form a consortium for bidding.

Iraq is offering 12 exploration blocks in its fourth licensing round, which will take place in January.

He said OVL will also be interested in forthcoming auctions in Brazil and Oman.

Early next year, Brazil is expected to hold the 11th bid round for exploration and production blocks in onshore and offshore basins.

OVL has stakes in one producing block and half a dozen exploratory blocks in Brazil.

Oman is expected to offer about five oil and gas blocks in a new exploration licensing round.

"ONGC will look into the properties and take a call based on due diligence," Hazarika said.

He said OVL, which produced 9.43 million tons of oil and oil equivalent gas in the year ended March 31, has invested INR560 billion ($12 billion) so far in overseas assets.

"Money is not a constraint for us as OVL can easily borrow from the market," Hazarika said. He didn't give details about the company's overseas investment plans.

He said OVL also expects to resume exploratory activities in Libya and explore more investment opportunities once normalcy returns in the African country.

OVL declared force majeure and suspended operations in February in an offshore exploration block in Libya, citing political unrest.

Oil companies active in Libya before the civil war began gearing up for the challenge of resuming operations in the country Monday as rebel forces moved closer to taking over Tripoli.

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

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SPE Names New Chairman

- SPE Names New Chairman

Wednesday, August 17, 2011
Society of Petroleum Engineers

Society of Petroleum Engineers (SPE) Aberdeen Section has appointed Masud Javaid as chairman. Mr. Javaid takes over the role from Chris Nussbaum and will hold the chair from July 2011-June 2012.

With over 12 years of experience in the energy industry, Mr. Javaid is currently a senior economist within the strategy and economics team for TOTAL E&P UK and is SPE Aberdeen chairman on a voluntary basis.

Mr. Javaid said, "I want to thank the outgoing chair, Chris Nussbaum, for the great work that he has done and I hope to continue where he left off. I feel extremely privileged to have been selected by my peers as chairman of the Aberdeen Section. The aim of SPE as an organization is to provide opportunities for our members and all industry professionals to enhance their technical and professional abilities and to promote lifelong learning."

As a volunteer organization, SPE Aberdeen works closely with the oil and gas industry, Scottish universities and local schools, institutes and academia to advance the learning and technical excellence in all aspects of the industry; offshore, onshore and internationally.

Mr. Javaid continued, "In my role as chairman, I aim to continue to raise the profile of SPE in the local energy community and highlight the excellent technical programs that we offer I also want to ensure, with the help of our Careers Guidance committee, that we continue to provide a lot of support to north-east schools in order to promote the Energy Industry as a potential career path for the pupils.

"Through our Student Development committee we will ensure that we maintain excellent links with local Universities by providing Scholarships for students and support local SPE student chapters in any events that they may organize."

SPE Aberdeen is run entirely by volunteers and has members from across a range of age, gender and nationality, with four student Chapters at five Universities in Scotland.

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RAK Petroleum Elects New DNO Chairman

- RAK Petroleum Elects New DNO Chairman

Monday, June 13, 2011
DNO

Shareholders at the DNO International Annual General Meeting held in Oslo elected Bijan Mossavar-Rahmani as the company's new Chairman. Mr. Mossavar-Rahmani is Chairman of the Board and CEO of RAK Petroleum Public Company Limited, the Middle East based independent oil and gas exploration and production company, which is DNO International's largest shareholder with a 30 percent stake. Mr. Mossavar-Rahmani was elected to the board at an Extraordinary General Meeting held on March 10, 2011.

Three other current directors, Gunnar Hirsti, Marit Instanes and Shelley Watson, were also re-elected as directors and Karen Sund, Founder and Chairman of Sund Energy AS, an Oslo-based energy consulting firm, was elected as the only new independent director. Mr. Hirsti is the Company's new Deputy Chairman.

"DNO International has a solid foundation in assets and importantly, in people," said Mr. Mossavar-Rahmani. "We believed this as we acquired our large position in the company and we believe it today as we take a more active role, in collaboration with shareholders, directors and management, to stabilise DNO International and then drive it to realize its full potential," he said.

"The operations group is first rate and the speed with which discoveries have been brought on production is truly impressive," said Mr. Mossavar-Rahmani. But he emphasized the need to bring best practices to the company in terms of governance, transparency, accountability, cost control and regulatory compliance while improving its relationships with host governments.

Mr. Mossavar-Rahmani acknowledged the service of the outgoing director.

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Chesapeake Energy CEO Re-Elected to Board as Chairman

- Chesapeake Energy CEO Re-Elected to Board as Chairman

Monday, June 13, 2011
Dow Jones Newswires
HOUSTON (Dow Jones Newswires)
by Ryan Dezember

Chesapeake Chief Executive Aubrey McClendon was re-elected Friday as chairman of the Oklahoma City energy producer, though the voting results showed a significant decline in shareholder support for one of the highest paid executives in the U.S.

McClendon, who had come under fire from an influential advisory firm that called for his ouster from the board, garnered about 78% of the votes cast at Chesapeake's annual shareholder meeting. Friday's vote ensures the 51-year-old executive will remain chairman into 2014, but the results signal diminished shareholder support for McClendon, who received more than 96% of the vote in 2008, the last time he stood for re-election to the board.

"This is a remarkable level of opposition," said Carol Bowie, head of compensation policy at Institutional Shareholder Services, the proxy advisory service that called for McClendon's departure from the board. Corporate board elections rarely yield opposition greater than 10%, Bowie said.

Chesapeake spokesman Jim Gipson said the vote shows "overwhelming support for management and for our board." He added that in 2008, McClendon's nearly unanimous re-election came as the company's stock climbed to a record high of $74 on historically high natural gas prices. Chesapeake shares traded Friday at $29.34, off 1.41% amid broader market declines.

McClendon, who helped found Chesapeake in 1989 and build it into the second-largest natural gas producer in the U.S., has been one of the highest paid executives in any sector in recent years, collecting compensation valued at more than $152 million since 2008. His 2010 pay package was valued at more than $21 million, according to securities filings.

ISS recommended shareholders remove McClendon from the board, citing an executive compensation system that is not tied to performance standards.

On Thursday, just ahead of the meeting, Chesapeake seemed to cave in to some of ISS's pressure, when it announced it hired an "independent compensation consultant" and committed to implement a pay system recommended by that firm that "includes objective performance criteria."

On Friday, Chesapeake's shareholders narrowly approved the company's executive compensation plan, giving the proposal about 58% of the vote, indicating widespread shareholder discontent.

As required under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, corporations must now provide shareholders with a nonbinding advisory vote on the compensation of named executive officers. So far, opposition to pay plans has been rare. According to ISS, shareholders have opposed proposals at only 31 companies out of 2,230 that had held votes by June 1.

In a separate tally, shareholders overwhelmingly asked that the plan be reviewed annually, following the board's recommendation.

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

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AMEC Names New Chairman

- AMEC Names New Chairman

Thursday, May 19, 2011
AMEC plc

AMEC announced that John Connolly will succeed Jock Green-Armytage as Chairman.

John Connolly is due to retire from his current role as Chief Executive Deloitte UK and Global Chairman of Deloitte Touche Tohamatsu on May 31, 2011 and will join the AMEC board on 1 June 2011.

Jock Green-Armytage said, "I am pleased that, following a thorough process led by Tim Faithfull, Senior Independent Director, John will be joining our board as my successor. He has extensive experience in building a global business based on the skills and talents of its employees. I am certain this will be invaluable in shaping AMEC's continued success.

"It has been an honor work with the people of AMEC since 1996, firstly as a non-executive director and more recently as Chairman. I am extremely proud of what we have achieved together."

John Connolly said, "I am delighted to be joining the board of AMEC at such an exciting point in its development. I look forward to guiding the team in the successful delivery of the Vision 2015 growth strategy."

Tim Faithfull added, "I would like to welcome John to AMEC and thank Jock for his significant contribution over the last 15 years. We wish him every success in the future."

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Samson O&G Chairman to Retire

- Samson O&G Chairman to Retire

Wednesday, May 18, 2011
Samson O&G Ltd.

Samson O&G announced that its Chairman, Mr. Neil MacLachlan, intends to retire from the Board of Directors effective June 30th, 2011. Mr. MacLachlan has served on Samson's Board of Directors since June 18th, 1998, and was elected Chairman of the Board on December 19th, 2007.

Upon Mr. MacLachlan's departure, Dr. Victor Rudenno will assume the position of Chairman. The Board has already initiated a process to identify candidates to serve on an expanded Samson Board. That process, which is already at an advanced stage, is focusing on individuals with skills and experience that will supplement those of the existing Board members. The Board is also keen to obtain a complement of U.S. residents on the Board in order to geographically represent Samson's increased U.S. shareholder base.

On behalf of the Samson Board of Directors, Terence Barr, Managing Director, stated, "The entire Samson Board is grateful for Neil's thirteen years of service to Samson and its shareholders. During his tenure on the Board, Neil participated in a period of tremendous growth for the Company, which growth he supported with his intelligence, diligence, wisdom and leadership. The Board extends its best wishes to Neil in his future endeavors and its most sincere thanks for his dedication to the Company and its shareholders over so many years."

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Hydra Energy Welcomes Non-Executive Chairman

- Hydra Energy Welcomes Non-Executive Chairman

Monday, May 16, 2011
Hydra Energy

Hydra Energy announced the appointment of Mr. Andy Rigg as Non-Executive Chairman with immediate effect.

Andy has over forty years of experience in the oil and gas and energy sectors working in geological and managerial executive positions and also in non-executive Board positions in such companies as Esso Australia, Santos, Ampolex, Anzon Australia and MEO Australia. His most recent roles were as Deputy Chairman of Mosaic Oil prior to that company's successfully implemented Scheme of Arrangement with AGL Energy Limited in 2010, and as Managing Director of Elk Petroleum Limited.

Paul Nimmo, Managing Director of Hydra Energy said, "I have known and worked with Andy for a number of years and am delighted that he is joining the Hydra Energy team. His experience, knowledge and network within the upstream industry together with his significant geological expertise will further enhance the capabilities and strategic input of the board, leading to the continued growth of Hydra Energy."

Hydra Energy is backed by Barclays Natural Resource Investments (BNRI), a division of Barclays Capital.

Meb Somani, Head of Oil & Gas Investments at BNRI said, "We are very pleased to have a person of Andy's caliber joining the Hydra team and we look forward to working closely with him, and the Hydra team, as it acquires its first assets."

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McDermott Board Appoints Johnson Chairman

McDermott Board Appoints Johnson Chairman

Monday, May 09, 2011
McDermott International, Inc.

McDermott International, Inc. announced Monday the results of its 2011 Annual Meeting of Stockholders, held Friday afternoon, May 6, 2011 in Panama City, Panama.

Based on the voting results from the meeting, shareholders re-elected Messrs. John F. Bookout, III, Roger A. Brown, Stephen G. Hanks, D. Bradley McWilliams, Thomas C. Schievelbein and David A. Trice, and elected Stephen M. Johnson and Mary L. Shafer-Malicki to our Board of Directors, all for one-year terms. In addition, shareholders approved the advisory vote on executive compensation, voted on an advisory basis for the Company to hold the advisory vote on the frequency of executive compensation annually, approved the Company's Executive Incentive Compensation Plan for tax deductibility reasons and ratified the appointment of Deloitte & Touche LLP as our independent registered public accounting firm for the year ending December 31, 2011.

As previously disclosed and pursuant to the Company's By-Law requirements, Ronald C. Cambre retired from McDermott's Board of Directors after 11 years of service to the Company, including the last three years as non-executive Chairman. His retirement was effective coincident with the adjournment of the Board of Directors meeting held in connection with the Annual Meeting. Additionally, McDermott announced that the Board of Directors has appointed Stephen M. Johnson as Chairman of the Board and D. Bradley McWilliams as Lead Director of the Board effective coincident with the adjournment of the Board of Directors meeting held in connection with the Annual Meeting.

"On behalf of the Board of Directors, our shareholders and the management team, I want to express our deep gratitude to Ron for his dedicated service to McDermott," said Stephen M. Johnson, McDermott's Chairman of the Board of Directors, President and Chief Executive Officer. "As Chairman, Ron has served the McDermott shareholders in an exemplary fashion and he has selflessly served as a skilled mentor for me. Additionally, I am honored and humbled from the confidence the Board has placed in me as Chairman and I look forward to working closely with the Board and with Brad McWilliams as Lead Director as we prepare McDermott for our next phase of growth."

McDermott is a leading engineering, procurement, construction and installation ("EPCI") company focused on executing complex offshore oil and gas projects worldwide. Providing fully integrated EPCI services for upstream field developments, the Company delivers fixed and floating production facilities, pipelines and subsea systems from concept to commissioning. McDermott's customers include national and major energy companies. Operating in approximately 20 countries across the Atlantic, Middle East and Asia Pacific, the Company's integrated resources include more than 15,000 employees and a diversified fleet of marine vessels, fabrication facilities and engineering offices. McDermott has served the energy industry since 1923.

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Baker Hughes Names New Executive Chairman

Baker Hughes Names New Executive Chairman

Friday, April 29, 2011
Baker Hughes Inc.

Baker Hughes has approved the transition of Chad C. Deaton, Chairman of the Board and Chief Executive Officer, to the new role of Executive Chairman beginning January 1, 2012. At that time Martin S. Craighead will assume the position of Chief Executive Officer in addition to his role as President of Baker Hughes.

Mr. Deaton said, "In October 2011, I will have served seven years as the leader of Baker Hughes. We have accomplished the major objectives I had when I joined the company in the fall of 2004 and I am very proud to have shared this success with our outstanding employees, management team and Board of Directors. We have expanded and refocused the company, building its competitive strengths while maintaining financial discipline and improving our returns. We have established a strong culture based on our Core Values of Integrity, Performance, Learning and Teamwork.

"I have tremendous respect for Martin's abilities and confidence in his leadership. As an experienced operations executive, Martin has an exceptional background for the CEO role. He has been with the company for over 25 years, including management roles in both the United States and other countries. He is one of the veterans of the company's management team who has effectively mobilized our people and technology into a new geographic alignment as a leading global supplier of oilfield services."

H. John Riley, Lead Director of the company's Board of Directors, said that "The entire board is extremely appreciative of Chad Deaton's outstanding leadership and significant contributions to the success of Baker Hughes over the past several years. He has implemented a strategy for growth and improved performance that has re-energized and broadened the horizons for the company. We look forward to Chad's active involvement in his new role as Executive Chairman.

"The Board joins me in congratulating Martin for earning the opportunity to lead Baker Hughes in the future as the company continues its growth as a leader in our industry. Baker Hughes is extremely well positioned for the future."

CNOOC Waves Goodbye to Board Chairman

CNOOC Waves Goodbye to Board Chairman

Friday, April 15, 2011
CNOOC Ltd.

CNOOC announced that Mr. Fu Chengyu has resigned as Chairman of the Board and non-executive director of the Company. Mr. Wang Yilin has been appointed as new Chairman of the Board and non-executive director of the Company. The aforementioned changes become effective from today.

Mr. Wang Yilin, the newly appointed Chairman of the Company commented, "With joint efforts of the Board, the management team and the entire staff, CNOOC Limited has grown into an outstanding company. In this new role, I will fulfill my duty with my best endeavor, to enhance the company's capability of value creation and sustainable growth. Meanwhile, on behalf the Board, I would like to thank Mr. Fu for his exceptional contribution to the development of CNOOC Limited."

Mr. Yang Hua, the Vice Chairman and CEO of the Company said, "Mr. Wang Yilin has abundant experiences in the oil and gas industry in China. With his leadership we will work more closely together to bring more value to our shareholders."

Devon Chairman Sees Plenty of Barnett Drilling

Devon Chairman Sees Plenty of Barnett Drilling

Thursday, March 31, 2011
Fort Worth Star-Telegram, Texas

by  Jack Z. Smith

Devon Energy, the largest producer in North Texas' Barnett Shale, has lots of drilling ahead of it in the big natural gas play, Executive Chairman Larry Nichols told the Star-Telegram in a telephone interview.

"We have at least 7,500 undrilled locations," said Nichols, who last year gave up his CEO title after 30 years in the job. Devon plans to keep about a dozen drilling rigs busy in the Barnett this year and will drill perhaps 325 wells, he said.

The Oklahoma City-based company has an office in downtown Fort Worth and 550 employees involved in Barnett Shale operations.

Devon's net Barnett production peaked at the equivalent of 1.2 billion cubic feet of natural gas per day in the fourth quarter last year. As a result of weak gas prices and limited demand, the company will probably maintain production at about that level this year, but it has the capability to increase output to at least 1.5 billion cubic feet Nichols said.

While current natural gas prices of slightly more than $4 per million British thermal units are not sufficiently high for sustaining production levels for "dry gas," it can be sufficient for "wet gas" production, which includes natural gas liquids that generate additional revenue, Nichols said. Devon's Barnett production is a mix of dry and wet gas, he said.

A geologist and lawyer by training, Nichols said he expects continued technological advances in drilling and completion of wells that will result in greater recovery of oil and natural gas.

As an example, he cited major technological advances in horizontal drilling and hydraulic fracturing that -- along with higher oil prices -- have revived activity in West Texas' heavily drilled Permian Basin.

Devon currently has 17 drilling rigs running in the Permian, where the company has about one million acres under lease, Nichols said.

He said he's "very excited" about the company's new 50-story corporate headquarters under construction in Oklahoma City. It will allow the company to consolidate its approximately 1,700 workers in Oklahoma City into a single building. They presently are scattered among five buildings, he said.

All the Devon employees are expected to be in the new building by the end of 2012.