EP Passes Resolution on Tougher Offshore Drilling Regulations

- EP Passes Resolution on Tougher Offshore Drilling Regulations

Tuesday, September 13, 2011
Rigzone Staff
by Karen Boman

The European Parliament (EP) on Sept. 13 passed a resolution that would only allow development of oil and gas fields offshore Europe if companies have prepared an adequate emergency plan and has sufficient funds to repair possible damage to the environment.

According to the resolution, passed with 602 votes in favor, 64 against and 13 abstaining, site-specific plans for drilling, which would also require approval by the relevant member state before operation begins, would better protect the environment. The resolution is a means of influencing new draft legislation to be tabled by the European Commission this autumn.

"These emergency plans should identify potential hazards, assess pollution sources and effects and outline a response strategy in the even of an accident," according to a statement by the European Parliament.

The resolution also calls for a provision requiring oil and gas operators to show in the licensing procedure that they have sufficient funds to repair any harm done to the environment as a result of their activities. It also has been suggested that the scope of the polluter pays principle and strict liability should be extended to cover all damage done to marine waters and biodiversity.

While members of European Parliament are unsure if establishing a regulator for all offshore operations would be bring enough value to justify diverting "scarce" regulatory resources from national authorities, they agree that the European Maritime Safety Agency should coordinate responses in the event of an accident.

Parliament also proposes that whistleblowers be protected, enabling employees to declare any security breaches or risks anonymously with fear of harassment.

The resolution is in response to a Commission consultation paper issued last October in the aftermath of the Macondo oil spill in the Gulf of Mexico in April 2010. It also follows on from an European Parliament resolution in October 2010 on European Union action on oil exploration and extraction in Europe.

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El Paso Topped Q2 EPS Estimates By $0.10 Per Share

- El Paso Topped Q2 EPS Estimates By $0.10 Per Share



Aug 4, 2011

El Paso (NYSE:EP) reported Q2 EPS of $0.34, ahead of consensus estimates of $0.24 per share.

Doug Foshee, chairman, president, and chief executive officer of El Paso Corporation said, "We are very pleased with our financial and operational performance. With the completion of our Ruby Pipeline, we have placed three major projects into service this year and will complete two more by year end. And with natural gas likely to be the cornerstone for growth in electric power development, we continue to see exciting growth opportunities on the horizon. Execution in our E&P business is outstanding, with oil programs ramping up with results that are equal to or better than expectations. We are very encouraged by the completion of our first 7,000 foot plus lateral in the Wolfcamp Shale, and we see this program delivering many years of very profitable development across our large acreage position. On the financial front, we continue to make excellent progress, improving our balance sheet primarily through drop downs to El Paso Pipeline Partners. This progress has put us in position to separate into two outstanding companies by year end. We believe this is a great time to be a shareholder of El Paso."

El Paso has a potential upside of 27.7% based on a current price of $19.49 and an average consensus analyst price target of $24.89.

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NC KMG, KMG EP Sign MOU for Joint Participation in Caspian Sea

- NC KMG, KMG EP Sign MOU for Joint Participation in Caspian Sea

Wednesday, May 25, 2011
JSC KazMunaiGas Exploration Production

JSC NC KazMunaiGas (NC KMG) and JSC KMG EP (KMG EP) have signed a Memorandum of Understanding, providing KMG EP with access to the detailed geophysical, financial and economic data of a number of oil and gas projects, including those located in the Kazakhstan sector of the Caspian sea. The list of projects includes, in particular, the offshore blocks Zhambyl, Ustyurt, Zhenis, Godina, С-1, С-2 as well as an onshore block Urikhtau. By agreement between the two parties the list of oil and gas projects may be expanded.

On the basis of the provided data KMG EP will conduct a technical, economic and investment evaluation of the above-stated projects to consider the Company's participation in these projects, subject to negotiations with NC KMG and on the same commercial terms as other participants.

Kairgeldy Kabyldin, Chairman of the Management Board of NC KMG noted, "The engagement of the resources and experience of KMG EP in the joint development of the Caspian sea shelf along with the large international oil companies is an important step for the KazMunaiGas group of companies. Enhanced participation of the National Company KMG in the offshore projects corresponds to the strategic interests of the country in the oil and gas sector."

Askar Balzhanov, Chief Executive Officer of KMG EP said, "Signing of the Memorandum is an important step in implementation of our Strategy which envisages participation in the development of the Caspian sea shelf as a way to increase the Company's resource base and hydrocarbons production. KMG EP possesses the necessary technical and financial resources for carrying out offshore oil operations."

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KMG EP Pulls Out of Iraq Field Development Talks

KMG EP Pulls Out of Iraq Field Development Talks

Wednesday, May 11, 2011
Knight Ridder/Tribune Business News
by A.Maratov, Trend News Agency, Baku, Azerbaijan

The National Company KazMunaiGas Exploration Production (KMG EP ) has informed the Oil and Gas Ministry of Iraq and the company Korea Gas Corporation (KOGAS) of its withdrawal from participation in the Akkas Field Development project negotiations in Iraq, the company reported.

In October 2010 KMG EP, together with KOGAS (the "Consortium"), won a tender for development of Iraq's Akkas gas field. The Consortium has held negotiations with the Government of Iraq with the objective of signing a contract to develop the Akkas field. "Unfortunately, the talks have failed to resolve all issues which emerged at a late stage and it has not been possible to develop a consensus document that would fully meet the interests of all parties," the report reads.

KMG EP would like to stress that it still believes Iraq to be an attractive area for investment. The Company appreciates the work done on this project by its partners from the Government of Iraq and KOGAS and would like to thank them for their efforts and regrets that it has not been possible for KMG EP to proceed.

KMG EP is among the top three Kazakh oil and gas producers. The overall production in 2010 was 13.3mt (an average of 270kbopd) of crude oil, including the Company's share in Kazgermunai, CCEL, PKI and NBK. The total volume of proved and probable reserves, as at the end of 2010 was 232mt (1.7bn bbl), including shares in the associates -- about 2.2bln barrels.

Copyright (c) 2011, Trend News Agency, Baku, Azerbaijan. Distributed by McClatchy-Tribune Information Services.

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BOEMRE Calls for Comment on Newfield Revised EP

BOEMRE Calls for Comment on Newfield Revised EP

U.S. Bureau of Ocean Energy Management

The Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) on Wednesday announced that public comment is invited with respect to an Environmental Assessment (EA) for a Revised Exploration Plan (EP) submitted by Newfield Exploration Company. This Revised EP involves deepwater activity in the Gulf of Mexico and will be completed in accordance with new safety and environmental standards implemented since the Deepwater Horizon explosion and oil spill.

The Revised EP includes four proposed exploratory wells in approximately 6, 990 feet water depth, approximately 66 miles offshore Louisiana. Consistent with federal regulations, an EP is deemed "submitted" once all supporting materials and documentation has been provided. Once a plan is deemed submitted, BOEMRE has 30 calendar days to analyze and evaluate it. For more information on pending plans, go to: http://www.gomr.boemre.gov/homepg/offshore/safety/well_permits.html.

As part of its review, the bureau will prepare an EA specific to the proposed exploration activities. Upon completion of the technical and environmental review, BOEMRE must decide whether to approve the plan, require modifications, or disapprove the plan. An exploration plan describes all exploration activities planned by the operator for a specific lease or leases, including the timing of these activities, information concerning drilling vessels, the location of each planned well, and other relevant information that needs to meet important safety standards.

The 30-day time frame for review includes a 10-day public comment period to allow an opportunity to review and comment on the issues that should be considered by BOEMRE in preparing the EA for the plan. In an effort to make the comment opportunity more accessible, the public can both view and provide comments on agency documents at: http://www.boemre.gov/PublicComment.htm.

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