Commodity Corner: Crude Up on Weather Threat

- Commodity Corner: Crude Up on Weather Threat

Thursday, September 01, 2011
Rigzone Staff
by Saaniya Bangee

Despite shaky equities and a rising dollar, crude futures inched modestly higher Thursday on weather reports of a storm brewing in the Gulf of Mexico.

October oil added 12 cents to its final price tag, settling at $88.93 a barrel on the New York Mercantile Exchange. Oil traded as low as $88.21 a barrel after an earlier intraday peak of $89.90.

The National Hurricane Center reported an 80 percent chance that a tropical wave in the Gulf of Mexico could develop into a tropical cyclone within the next 48 hours. Oil majors such as Shell, ExxonMobil, BP, Anadarko and BP have evacuated nine platforms in the Gulf of Mexico and shut in nearly 80,000 barrels of oil production, according to the Bureau of Ocean Energy Management, Regulation and Enforcement. In addition, 127 million cubic feet per day of natural gas was also shut in.

In other forecasts, initial unemployment claims fell by 12,000 to 409,000 last week. Data reported by the Labor Department helped boost optimism about the economy.

Brent crude, which is used to price many international oil varieties, lost 56 cents to settle lower at $114.29 barrel on fresh concerns over Greece's debt problems. The intraday range for Brent was $113.89 to $115.31 a barrel on the ICE future exchange.

Natural gas for October delivery remained unchanged at $4.05 per thousand cubic feet Thursday.

Gasoline gained 1.64 cents for the first trading session for the October contract. Reformulated gasoline settled at $2.89 a gallon. Some East Coast refineries remain shut down due to Hurricane Irene. Prices fluctuated between $2.85 and $2.92 Thursday.

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Rosneft and ExxonMobil Plan $3.2B Program in Black, Kara Seas

- Rosneft and ExxonMobil Plan $3.2B Program in Black, Kara Seas

Tuesday, August 30, 2011
ExxonMobil Corp.

Rosneft and ExxonMobil have executed a Strategic Cooperation Agreement under which the companies plan to undertake joint exploration and development of hydrocarbon resources in Russia, the United States and other countries throughout the world, and commence technology and expertise sharing activities.

The agreement, signed by Rosneft President Eduard Khudainatov and ExxonMobil Development Company President Neil Duffin in the presence of Russian Prime Minister Vladimir Putin, includes approximately US $3.2 billion to be spent funding exploration of East Prinovozemelskiy Blocks 1, 2 and 3 in the Kara Sea and the Tuapse License Block in the Black Sea, which are among the most promising and least explored offshore areas globally, with high potential for liquids and gas.

In the course of these projects, the companies will use global best practices to develop state-of-the-art safety and environmental protection systems.

The agreement also provides Rosneft with an opportunity to gain equity interest in a number of ExxonMobil's exploration opportunities in North America, including deep-water Gulf of Mexico and tight oil fields in Texas (USA), as well as additional opportunities in other countries. The companies have also agreed to conduct a joint study of developing tight oil resources in Western Siberia.

The companies will create an Arctic Research and Design Center for Offshore Developments in St. Petersburg, which will be staffed by Rosneft and ExxonMobil employees. The center will use proprietary ExxonMobil and Rosneft technology and will develop new technology to support the joint Arctic projects, including drilling, production and ice-class drilling platforms, as well as other Rosneft projects.

"We have a clear vision for Rosneft's strategic direction — building world-class expertise in offshore business and enhancing oil recovery," said Rosneft president Eduard Khudainatov, following the signing ceremony. "The partnership between Rosneft with its unique resource base, and the largest and one of the most highly capitalized companies in the world reflects our commitment to increasing capitalization of our business through application of best-in-class technology, innovative approach to business management, and enhancement of our staff potential. This venture comes as a result of many years of cooperation with ExxonMobil and brings Rosneft into large scale world-class projects, turning the company into a global energy leader."

ExxonMobil Development Company President Neil Duffin said: "Today's agreement with Rosneft builds on our 15-year successful relationship in the Sakhalin-1 project. Our technology, innovation and project execution capabilities will complement Rosneft's strengths and experience, especially in the area of understanding the future of Russian shelf development."

Rex Tillerson, chairman and chief executive officer of Exxon Mobil Corporation, who attended the ceremony, said ExxonMobil will benefit Russian energy development by working closely with Rosneft.

"This large-scale partnership represents a significant strategic step by both companies," said Tillerson. "This agreement takes our relationship to a new level and will create substantial value for both companies."

The agreement provides for constructive dialogue with the Russian Federation government concerning creation of a fiscal regime based on global best practices.

Additionally Rosneft and ExxonMobil will implement a program of staff exchanges of technical and management employees which will help strengthen the relationships between the companies and provide valuable career development opportunities for personnel of both companies.

The East Prinovozemelskiy License Blocks have a total area of 126,000 square kilometers (30 million acres) in water depths ranging between 50 and 150 meters (165 feet and 500 feet). Tuapse Block in the Black Sea has the total area of 11,200 square kilometers (2.8 million acres) and water depths ranging from 1,000 to 2,000 meters (3,300 feet and 6,500 feet). Rosneft equity interest in both joint ventures will be 66.7 percent, while ExxonMobil will hold 33.3 percent.

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ExxonMobil, Americas Petrogas to Explore Argentina Shale

- ExxonMobil, Americas Petrogas to Explore Argentina Shale

Tuesday, August 30, 2011
Americas Petrogas

Americas Petrogas, a Canadian company, is pleased to announce that it has, through its wholly-owned Argentina subsidiary, Americas Petrogas Argentina S.A., entered into a farm-out agreement (FOA) with ExxonMobil Exploration Argentina S.R.L., a wholly-owned subsidiary of Exxon Mobil Corporation for the exploration and potential exploitation of Americas Petrogas's Los Toldos blocks (163,500 gross acres or 255 sections or 660 square kilometers) located in Neuquen, Argentina. The Los Toldos blocks are located in the western region of the Neuquen Basin and are in a favorable location relative to other recent discoveries of shale oil and shale gas in the Vaca Muerta formation.

Barclay Hambrook, President and CEO of Americas Petrogas, stated "As the world's largest publicly-owned integrated oil and gas company, ExxonMobil brings vast experience, technology, research and financial resources to this joint venture with Americas Petrogas."

Pursuant to the terms of the FOA, ExxonMobil has committed to fund US$53.9 million (including taxes) during the exploration phase with a further US$22.4 million (including taxes) if the parties proceed to the exploitation phase, for a total potential initial investment of US$76.3 million. This focus of exploration, exploitation and other related activities is expected to be directed towards the Los Toldos 1 and 2 blocks. ExxonMobil will earn a 45% interest in the Los Toldos blocks with Americas Petrogas retaining a 45% interest and the government entity, Gas y Petroleo del Neuquen ("G&P"), maintaining a 10% interest. ExxonMobil will also provide technical assistance on the Los Toldos blocks. The FOA is subject to approval by G&P.

Americas Petrogas is the operator of the Los Toldos blocks and expects to spud the first well in the fourth quarter of 2011 with the primary target being the unconventional Vaca Muerta formation and potential secondary targets in other conventional and unconventional formations.

In addition to the Los Toldos blocks, Americas Petrogas has five other blocks within the Neuquen Basin's western shale corridor, including the Huacalera block which is located south of the Los Toldos blocks and which was recently drilled, cased and cemented, having intersected 1,742 feet of Vaca Muerta shale. In published reports, the U.S. Energy Information Administration has cited a risked, recoverable resource of 240 trillion cubic feet ("TCF") of gas for the Vaca Muerta shale in the Neuquen Basin.

Mr. Guimar Vaca Coca, Managing Director of Americas Petrogas' Argentina subsidiary, said, "We believe the next major shale development outside of North America will be in the Neuquen Basin. Our Argentina management and technical personnel look forward to working with ExxonMobil to explore the substantial hydrocarbon potential of the Los Toldos blocks."

Daniel De Nigris, General Manager of ExxonMobil Exploration Argentina, said, "We are pleased to be working with Americas Petrogas on the highly prospective Los Toldos blocks and if successful, look forward to providing clean and reliable energy for Argentina."

About Americas Petrogas Inc.

Americas Petrogas Inc. is a Canadian company whose shares trade on the TSX Venture Exchange under the symbol "BOE". Americas Petrogas has oil and gas interests in numerous blocks involving exploration, development and production. Americas Petrogas has proven conventional oil and gas reserves, as well as evolving unconventional resource plays including shale gas, shale oil, and tight sand oil and gas in Argentina's prolific Neuquen Basin. For more information about Americas Petrogas, please visit www.americaspetrogas.com

About Vaca Muerta Shales

The Vaca Muerta Shale is one of two principal source rocks in the Neuquen Basin of Argentina. The shale is late Jurassic-early Cretaceous in age, covers an area of approximately 8,500 square miles, varies in depth between 5,500 to 14,000 feet and in places is up to 2,000 feet in thickness.

The Vaca Muerta characteristics are believed to be similar to shale reservoirs such as the Eagle Ford, Haynesville and Horn River in North America which have so far resulted in discoveries of both shale gas and shale oil. The shale has recently become the focus for many of the important shale gas players in North America, including Apache, ExxonMobil, Total as well as YPF in Argentina.

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ExxonMobil Seeks to Retain Julia Leases in GOM

- ExxonMobil Seeks to Retain Julia Leases in GOM

Thursday, August 18, 2011
Rigzone Staff
by Karen Boman

ExxonMobil has filed a lawsuit against the U.S. Department of the Interior (DOI) to retain three federal offshore leases that are part of the Julia unit in the deepwater Gulf of Mexico.

The company filed the suit in the U.S. District Court in Lake Charles, La., stating that DOI has retroactively applied new legal standards in canceling the leases, departed from established agency practices, and singled out ExxonMobil for unprecedented adverse treatment. ExxonMobil also said the cancellation would prevent it from producing a reservoir believed to hold billions of barrels of oil.

ExxonMobil is operator of the Julia unit on Walker Ridge Block 627, which is comprised of Walker Ridge Blocks 584, 627, 628, 540 and 583; the first three are the original leases issued to ExxonMobil’s predecessor, Mobil Exploration and Production in 1998. The two additional leases were acquired by ExxonMobil and partner Statoil at the request of the U.S. Minerals Management Services (MMS) when it applied to develop the Julia discovery. ExxonMobil holds a 50 percent title interest in each of the leases within the Julia unit. Statoil holds the remaining 50 percent interest. ExxonMobil and Statoil announced the Julia discovery in the deepwater Gulf in January 2008.

The company contends that it is allowed under the law to suspend production in their fields in recognition of the time and planning needed to tie back subsea wells to deepwater host facilities. ExxonMobil had originally filed for a suspension of production (SOP) order for the three original Julia leases in 2008, saying it needed time to determine its drilling and development program for the Julia discovery, one of several pre-Tertiary deepwater discoveries made over the past decade.

MMS told ExxonMobil it needed to include Walker Ridge Blocks 540 and 583 to promote an expedite exploration and development. The company withdrew its original SOP request with the intent of submitted a new SOP for the entire Julia unit with the additional leases. ExxonMobil and Statoil acquired the two additional leases at a cost of over $60 million days before the end of the primary term of the original Julia leases. In the meantime, it continued drilling and development plans, investing $300 million dollars on the Julia discovery and drilling two producible wells. However, MMS denied the SOP request in 2009, saying it failed to show commitment to development the discovery.

ExxonMobil said MMS did not clearly specify what ExxonMobil needed to do to receive approval of the requested SOP and supplemented its original SOP request with numerous emails and letters demonstrating its commitment to produce the Julia discovery. ExxonMobil said it also made clear that if a plan to tie-back Julia to the Jack-St. Malo host facility was deemed insufficient that it would develop the Julia discovery as a standalone alternative.

The company said that MMS had granted more than 2,200 requests for SOPs for individual leases in the Gulf from 1994 through 2008 and denied only 33 such requests, and had often granted a series of sequential SOPs for a single lease or unit, resulting in delays in production commencement for periods of longer than five years after the initial SOP was granted. ExxonMobil noted that cancellation of the leases would give DOIG the opportunity to collect millions of dollars in bonuses and royalties that it would be entitled to collect if the original Julia leases are not canceled.

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ExxonMobil, Pertamina Gain Ground in Banyu Urip Field Development

- ExxonMobil, Pertamina Gain Ground in Banyu Urip Field Development

Friday, August 05, 2011
ExxonMobil Corp.

ExxonMobil said that the development of the Indonesian Banyu Urip field in the Cepu block in East Java has achieved a major milestone with the award of the first of five engineering, procurement and construction contracts for work on major facilities at the development.

ExxonMobil's Mobil Cepu Ltd. (MCL) is operator of the Cepu block with 45 percent interest. The other co-venturers are Pertamina with 45 percent interest and four local government companies holding the remaining 10 percent interest.

"This is a major milestone in the development of the Banyu Urip field," said Neil Duffin, president of ExxonMobil Development Company. "Based on appraisal drilling, we've increased estimates of the recoverable resource under full development to 450 million barrels. This multibillion dollar project continues to benefit from the strengths of both Pertamina and ExxonMobil and provides the foundation for a strong partnership between the two companies, as well as with the local government companies."

Full field development is planned to produce 165,000 barrels of oil per day from facilities that include 49 wells on three well pads, a central processing facility, and a 60 mile (95 kilometer) pipeline to transfer the processed oil to a 1.7 million barrel floating storage and offloading (FSO) unit in the Java Sea. Tankers will load crude oil from the FSO for transport to domestic and world markets.

Construction is targeted to be completed in 36 months and the start-up of full field production is expected afterwards, pending regulatory approvals.

Early oil production on the Banyu Urip development commenced in 2009 from facilities with demonstrated capacity of greater than 20,000 barrels per day. Duffin said, "The excellent performance of the early production wells and facilities adds economic value to the overall project and is supportive of the Government of Indonesia's priorities to safely and effectively develop the Cepu Block oil and gas resources."

Affiliates and predecessor companies of ExxonMobil have operated in Indonesia for more than 100 years. ExxonMobil is actively working on exploration and development opportunities to increase its participation in Indonesia's oil and gas industry. The company supports long-term and sustainable community initiatives around its areas of operation. ExxonMobil's investment in Indonesia since 1968 is more than US $19 billion (190 trillion rupiahs).

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BPMigas: ExxonMobil, Partners Need $1.3B to Develop Cepu Block

- BPMigas: ExxonMobil, Partners Need $1.3B to Develop Cepu Block

Friday, August 05, 2011
Dow Jones Newswires
JAKARTA
by Deden Sudrajat

ExxonMobil and its partners will need to invest around $1.3 billion to fully develop their oil production facility in the Cepu Block in Java, the head of the Indonesian oil and gas sector watchdog said Friday.

Raden Priyono, the chairman of upstream oil and gas regulator BPMigas, estimated production at the Banyu Urip oil field can reach 165,000 barrels of crude a day at full capacity, compared with the current 20,000 barrels a day.

Exxon has picked a consortium of Samsung Engineering and PT Triparta as a partner for one of its five engineering, procurement and construction contracts in Banyu Urip. The $746.3 million contract was the biggest and the first to be signed. BPMigas' Priyono expects the remaining contracts to be signed later this year.

Mobil Cepu and Ampolex (Cepu) Pte. Ltd., both subsidiaries of Exxon Mobil, have a combined 45% stake in the block, while Pertamina EP Cepu owns 45% and the Cepu Block Cooperation Body, or BKS, holds the remaining 10%.

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

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Commodity Corner: Oil Jumps on Fear of Don

- Commodity Corner: Oil Jumps on Fear of Don

Thursday, July 28, 2011
Rigzone Staff
by Saaniya Bangee

Oil futures edged higher Thursday as Tropical Storm Don brewed in the Gulf of Mexico.

Oil trading remained choppy throughout the day Thursday with prices as high as $98.01 and as low as $96.51 a barrel. Front-month crude gained 4 cents to end the session at $97.44 a barrel.

The U.S. Labor Department said the number of claims for unemployment benefits fell to its lowest level in almost four months last week. According to the report, 398,000 people filed for unemployment benefits; this represents an increase in employment.

In its latest bulletin, the National Hurricane Center reported that Tropical Storm Don has strengthened and is headed toward the Texas coast. Oil majors ExxonMobil, Shell, BP and Anadarko have scaled back production and evacuated non-essential from several platforms in the Gulf of Mexico. Analysts predict output levels should return to normal by Saturday morning.

Traders played it safe Thursday over lingering uncertainty caused by the U.S. debt-ceiling dispute. With an Aug. 2 deadline looming, lawmakers remain deadlocked over a proposal to raise the debt limit.

The Brent benchmark fluctuated between $117.07 and $118.64 Thursday, before settling at $117.36 a barrel.

Natural gas for September delivery fell by 1.7 percent to $4.24 per thousand cubic feet Thursday, thanks to larger-than-expected stockpiles as reported by the Energy Information Administration. The EIA stated that natural gas supplies grew by 43 billion cubic feet for the week ended July 22. As of July 22, inventories were at 2.714 trillion cubic feet, down 2.3 percent from the five-year average.

The intraday range for natural gas was $4.20 to $4.34 per thousand cubic feet.

Reformulated gasoline lost 0.8 percent to settle at $3.12 a gallon. It peaked at $3.17 and bottomed out at $3.09 during Thursday's trading.

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ExxonMobil Reports $10.7B in 2Q11, Up 41%

- ExxonMobil Reports $10.7B in 2Q11, Up 41%

Thursday, July 28, 2011
ExxonMobil Corp.

ExxonMobil announced its estimated second quarter 2011 results.

ExxonMobil's Chairman Rex W. Tillerson commented, "ExxonMobil recorded strong results during the second quarter of 2011, while investing at a record level of over $10 billion to develop new supplies of energy to meet growing world demand.

"Second quarter earnings of $10.7 billion were up 41% from the second quarter of 2010, reflecting higher crude oil and natural gas realizations, improved Downstream results and continued strength in Chemicals. First half 2011 earnings of $21.3 billion increased 54% over the first half of 2010.

"In the second quarter, capital and exploration expenditures were a record $10.3 billion, up 58% from the second quarter of 2010.

"Oil-equivalent production increased by 10% over the second quarter of 2010, driven by our world-class assets in Qatar and our growing unconventional gas portfolio.

"The Corporation returned over $7 billion to shareholders in the second quarter through dividends and share purchases to reduce shares outstanding."

SECOND QUARTER HIGHLIGHTS

• Earnings were $10,680 million, an increase of 41% or $3,120 million from the second quarter of 2010.
• Earnings per share were $2.18, an increase of 36%.
• Capital and exploration expenditures were a record $10.3 billion, up 58% from the second quarter of 2010.
• Oil-equivalent production increased 10% from the second quarter of 2010. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up over 12%.
• Cash flow from operations and asset sales was $14.4 billion, including asset sales of $1.5 billion.
• Share purchases to reduce shares outstanding were $5 billion.
• Dividends per share of $0.47 increased by 7% compared to the second quarter of 2010.
• Announced two major oil discoveries and a gas discovery in the deepwater Gulf of Mexico after drilling the company's first post-moratorium deepwater exploration well.
• Concluded the acquisitions of two Phillips companies, nearly doubling our Marcellus acreage footprint to more than 700,000 net acres.

Second Quarter 2011 vs. Second Quarter 2010

Upstream earnings were $8,541 million, up $3,205 million from the second quarter of 2010. Higher liquids and natural gas realizations increased earnings by $3.6 billion. Production mix and volume effects decreased earnings by $480 million.

On an oil-equivalent basis, production increased 10% from the second quarter of 2010. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up over 12%.

Liquids production totaled 2,351 kbd (thousands of barrels per day), up 26 kbd from the second quarter of 2010. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, liquids production was up 4%, as increased production in Qatar, the U.S. and Iraq more than offset field decline.

Second quarter natural gas production was 12,267 mcfd (millions of cubic feet per day), up 2,242 mcfd from the second quarter of 2010, driven by additional U.S. unconventional gas volumes and project ramp-ups in Qatar.

Earnings from U.S. Upstream operations were $1,449 million, $584 million higher than the second quarter of 2010. Non-U.S. Upstream earnings were $7,092 million, up $2,621 million from last year.

Downstream earnings of $1,356 million were up $136 million from the second quarter of 2010. Margins increased earnings by $60 million. Positive volume and mix effects increased earnings by $150 million, while all other items decreased earnings by $70 million. Petroleum product sales of 6,331 kbd were 27 kbd higher than last year's second quarter.

Earnings from the U.S. Downstream were $734 million, up $294 million from the second quarter of 2010. Non-U.S. Downstream earnings of $622 million were $158 million lower than last year.

Chemical earnings of $1,321 million were $47 million lower than the second quarter of 2010. Improved margins increased earnings by $120 million, while lower sales volumes decreased earnings by $90 million. Other items, mainly unfavorable tax effects, decreased earnings by $80 million. Second quarter prime product sales of 6,181 kt (thousands of metric tons) were 315 kt lower than last year's second quarter.

Corporate and financing expenses were $538 million, up $174 million from the second quarter of 2010 due to the absence of favorable 2010 tax items.

During the second quarter of 2011, Exxon Mobil Corporation purchased 67 million shares of its common stock for the treasury at a gross cost of $5.5 billion. These purchases included $5 billion to reduce the number of shares outstanding, with the balance used to offset shares issued in conjunction with the company's benefit plans and programs. Share purchases to reduce shares outstanding are currently anticipated to equal $5 billion in the third quarter of 2011. Purchases may be made in both the open market and through negotiated transactions, and may be increased, decreased or discontinued at any time without prior notice.

First Half 2011 vs. First Half 2010

Earnings of $21,330 million increased $7,470 million from 2010. Earnings per share increased 47% to $4.32.

FIRST HALF HIGHLIGHTS

• Earnings were $21,330 million, up 54%.
• Earnings per share increased 47% to $4.32.
• Oil-equivalent production was up 10% from 2010. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up 12%.
• Cash flow from operations and asset sales was $32.6 billion, including asset sales of $2.8 billion.
• The Corporation distributed over $14 billion to shareholders in the first half of 2011 through dividends and share purchases to reduce shares outstanding.
• Capital and exploration expenditures were a record $18.1 billion, up 35% from the first half of 2010.

Upstream earnings were $17,216 million, up $6,066 million from 2010. Higher crude oil and natural gas realizations increased earnings by $6.2 billion. Production mix and volume effects decreased earnings by $710 million, while all other items, mainly gains from asset sales, increased earnings by $600 million.

On an oil-equivalent basis, production was up 10% compared to the same period in 2010. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up 12%.

Liquids production of 2,375 kbd increased 5 kbd compared with 2010. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, liquids production was up 3%, as higher volumes from Qatar and the U.S. more than offset field decline.

Natural gas production of 13,390 mcfd increased 2,538 mcfd from 2010, driven by additional U.S. unconventional gas volumes and project ramp-ups in Qatar.

Earnings from U.S. Upstream operations for 2011 were $2,728 million, an increase of $772 million. Earnings outside the U.S. were $14,488 million, up $5,294 million.

Downstream earnings of $2,455 million increased $1,198 million from 2010. Margins increased earnings by $510 million. Positive volume and mix effects increased earnings by $520 million, while all other items, mainly favorable foreign exchange effects, increased earnings by $170 million. Petroleum product sales of 6,299 kbd increased 49 kbd from 2010.

U.S. Downstream earnings were $1,428 million, up $1,048 million from 2010. Non-U.S. Downstream earnings were $1,027 million, $150 million higher than last year.

Chemical earnings of $2,837 million were $220 million higher than 2010. Stronger margins increased earnings by $470 million, while lower volumes decreased earnings by $60 million. Other items, including unfavorable tax effects and higher maintenance expenses, decreased earnings by $190 million. Prime product sales of 12,503 kt were down 481 kt from 2010.

Corporate and financing expenses were $1,178 million, up $14 million from 2010.

Gross share purchases through the first half of 2011 were $11.2 billion, reducing shares outstanding by 136 million shares.

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GDF Suez Takes ExxonMobil's Stake Offshore Norway

- GDF Suez Takes ExxonMobil's Stake Offshore Norway

Thursday, July 28, 2011
GDF Suez

GDF Suez announced an important milestone in the development of its portfolio of exploration & production assets. The operations are located in a mature area in Norway.

The Group acquired an additional 20% share in the offshore Njord field and in Noatun discovery in Norway, from ExxonMobil Exploration & Production Norway AS. GDF Suez E&P Norge AS therefore becomes the first shareholder in this license with a 40% interest, alongside Statoil (20%, operator), E.ON Ruhrgas (30%), Faroe Petroleum (7.5%) and VNG (2.5%).

Jean-Marie Dauger, Executive Vice President of GDF Suez, in charge of the Global Gas & LNG Business Line, explained, "These [...] operations highlight the GDF Suez E&P's strategy and successful implementation: a balanced portfolio with a strong presence in mature areas, such as Njord in Norway."

The Njord area in the Norwegian Sea is very active. The North-West Flank which is part of the Njord license is currently being drilled from Njord whilst the fast track development Hyme (ex Gygrid) recently approved by the Ministry of Petroleum and Energy will be tied back to and processed at the Njord facilities. The start of the Low Pressure Production project on the Njord field in 2013 will increase the recovery rate and extend the life of the field, in production since 1997. Entered in the licence late 2000, GDF Suez intends to speed up development of other discoveries in this area, thus expanding the life time of the Njord platform then used as a hub for the area. The transaction is subject to approval from the Norwegian Authorities.

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ExxonMobil Briefs 3Q Dividend

- ExxonMobil Briefs 3Q Dividend

Wednesday, July 27, 2011
ExxonMobil Corp.

ExxonMobil declared a cash dividend of 47 cents per share on the Common Stock, payable on September 9, 2011 to shareholders of record of Common Stock at the close of business on August 12, 2011.

This third quarter dividend is at the same level as the dividend paid in the second quarter of 2011.

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ONGC, GAIL Keen to Buy ExxonMobil Stake in Kazakh Oil Field

- ONGC, GAIL Keen to Buy ExxonMobil Stake in Kazakh Oil Field

Wednesday, June 08, 2011
Dow Jones Newswires
by Rakesh Sharma

Oil & Natural Gas Corp. (ONGC) and GAIL are working on a plan to buy at least a part of ExxonMobil's stake in Kazakhstan's Kashagan oil field, in yet another push by the South Asian country to secure energy assets for its expanding economy.

"We are interested. We are working on it," GAIL Chairman B.C. Tripathi told Dow Jones Newswires. He didn't say how much of Exxon's stake in Kashagan were the two state-run companies looking to acquire.

"The discussions have been going on but no decision has been made yet," said a senior ONGC executive, who didn't wish to be named.

ONGC is India's flagship oil explorer while GAIL is the country's largest gas distributor by market share.

Earlier Wednesday, the Hindustan Times newspaper reported that ONGC Videsh Ltd., ONGC's overseas investment arm, and GAIL are jointly planning to buy an 8.4% stake in the Kashagan oil field from Exxon Mobil for about $5 billion.

The consortium has submitted a non-binding bid to Exxon to buy about half of its 16.8% stake in the oil field, the report said, citing documents related to the deal.

Exxon Mobil spokesman Alan Jeffers told Dow Jones Newswires the company doesn't comment "on rumors, speculation or media reports."

"Kazakhstan is an important element of the Exxon Mobil global portfolio and we have a long-term commitment to the country," Jeffers said.

India, which meets nearly four-fifths of its crude oil requirement through imports, has been eying energy assets in Kazakhstan. The Central Asian nation is expected to become one of the world's top 10 oil producers by 2025 and one of the top three contributors to production growth outside the Organization of Petroleum Exporting Countries.

In April, Indian Prime Minister Manmohan Singh and Kazakhstan President Nursultan Nazarbayev underlined the importance of energy cooperation between the two countries.

India has lagged its rival China in the race for energy assets in Kazakhstan, which is home to some of China's largest investments.

China National Petroleum Corp. and Kazakhstan's national oil and gas company, KazMunaiGas, signed a new energy cooperation agreement in February. CNPC has said that its oil and gas production in Kazakhstan reached a record 30 million metric tons of oil equivalent in 2010 and that it plans to double the transmission capacity of the crude oil pipeline linking the two countries to 20 million metric tons a year, or 401,600 barrels a day, by 2013.

"The decision making in Indian state-run companies on acquisitions is very slow as they have to seek too many approvals and there are layers of sanctions required," said Jagannadham Thunuguntla, equity head of brokerage SMC Capitals Ltd. "The multi-billion-dollar deals also need parliament approval, which further slows the speed. India needs to move fast to seal such deals."

Kazakhstan expects its Kashagan oil field, which lies in the northern part of the Caspian Sea, to begin production by the end of 2012. Production is expected to reach 1.0 million tons in the second phase of development and 1.5 million tons in the third phase.

KazMunaiGas, Royal Dutch Shell PLC, ExxonMobil, Total SA and ENI SpA each own 16.81% in Kashagan while ConocoPhillips and Japan's Inpex Corp. hold 8.4% and 7.56%, respectively.

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

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ExxonMobil Touts Three Deepwater GOM Discoveries

- ExxonMobil Touts Three Deepwater GOM Discoveries

Wednesday, June 08, 2011
ExxonMobil Corp.

ExxonMobil announced two major oil discoveries and a gas discovery in the deepwater Gulf of Mexico after drilling the company's first post-moratorium deepwater exploration well.

The KC919-3 wildcat well confirmed the presence of a second oil accumulation in Keathley Canyon block 919. The well encountered more than 475 feet of net oil pay and a minor amount of gas in predominantly Pliocene high-quality sandstone reservoirs. The well, which is continuing to drill deeper, is located 250 miles southwest of New Orleans in approximately 7,000 feet of water.

Drilling in early 2010 encountered oil and natural gas at Hadrian North in KC919 and extending into KC918, with over 550 feet of net oil pay and a minor amount of gas in high-quality Pliocene and Upper Miocene sandstone reservoirs.

ExxonMobil encountered 200 feet of natural gas pay in Pliocene sandstone reservoirs at its Hadrian South prospect in Keathley Canyon block 964 during drilling in 2009.

"We estimate a recoverable resource of more than 700 million barrels of oil equivalent combined in our Keathley Canyon blocks," said Steve Greenlee, president of ExxonMobil Exploration Company. "This is one of the largest discoveries in the Gulf of Mexico in the last decade. More than 85 percent of the resource is oil with additional upside potential."

"We plan to work with our joint venture partners and other lessees in the area to determine the best way to safely develop these resources as rapidly as possible," Greenlee said.

ExxonMobil is the operator of KC918, KC919, KC963 and KC964 with 50 percent working interest. Eni Petroleum US LLC and Petrobras America Inc. each hold a 25 percent working interest in KC919, KC963 and KC964. Petrobras America Inc. holds a 50 percent working interest in KC918.

Over the past decade, ExxonMobil has drilled 36 deepwater wells in the Gulf of Mexico in water ranging from 4,000 feet to 8,700 feet.

"As one of the largest lease holders in the Gulf of Mexico with interests in over 370 leases, we are committed to the continued safe exploration and development of this important national resource," Greenlee said.

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ExxonMobil Launches EOR Project in West Texas

ExxonMobil Launches EOR Project in West Texas

Tuesday, May 10, 2011
Exxon Mobil Corp.

ExxonMobil Production Co. announced Tuesday that drilling and construction have started on an enhanced oil recovery project at the Means Field in Andrews County, Texas. The first phase of the project has the potential to recover as much as five million barrels of additional oil, an amount equal to the annual energy needs of about 170,000 Texas households.

ExxonMobil has more than two decades of experience with carbon dioxide injection for enhanced oil recovery at the Means Field. The new project will apply technology to produce oil that until recently was technically and economically challenging to develop. Carbon dioxide injection is expected to begin before year end 2011. This first phase could lead to future development phases, which could significantly increase oil recovery from the field.

"ExxonMobil's investment in the field is part of an ongoing effort to find, develop and produce more domestic supplies of oil and gas to meet the country's growing energy needs," said Lyndal Trout, the company's senior field superintendent for western Texas.

ExxonMobil discovered the Means Field in the early 1930s. Since then, the company has produced more than 300 million barrels of oil from the field.

Over the past three years ExxonMobil's capital expenditures in Texas has exceeded $790 million. These investments help create jobs and contribute to economic growth across the region. They also help maintain Texas' position as the leading U.S. oil and natural gas producing state.

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ExxonMobil Files Development Plans for Hebron

ExxonMobil Files Development Plans for Hebron

Friday, April 29, 2011
Rigzone Staff

ExxonMobil has filed a development application with the Newfoundland and Labrador regulatory board for the Hebron project. The Board is in the process of reviewing the application. Once the application has gone through the review process, the Board will begin a public review period.

A review of the merits of the project will not commence until the Board is satisfied that it has received a complete application. ExxonMobil and its partners have yet to file a benefits plan and other supporting documentation in connection to the application. These documents are expected to be provided to the Board by early May.

The Hebron Project is located offshore St. John's Newfoundland and Labrador in the Jeanne d'Arc Basin in the North Atlantic Ocean. Production is expected to begin no later than the end of 2017. This will be the fourth stand-along development project on the Grand Banks. Oil from Hebron will be produced from a concrete gravity base structure (GBS). The scope of the project is expected to span over 30 years from the initial development phase, through installation and operations, decommissioning and abandonment. The facility will be designed to handle an estimated production rate of approximately 150,000 barrels of oil per day, which can potentially increase to 180,000 barrels of oil per day.

ExxonMobil Declares Dividend for 2Q

ExxonMobil Declares Dividend for 2Q

Wednesday, April 27, 2011

ExxonMobil Corp.

ExxonMobil declared a cash dividend of 47 cents per share on the Common Stock, payable on June 10, 2011 to shareholders of record of Common Stock at the close of business on May 13, 2011.

This second quarter dividend compares with 44 cents per share paid in the first quarter of 2011.

Through its dividends, the corporation has shared its success with its shareholders for more than 100 years and has increased its annual dividend payment to shareholders for twenty-nine consecutive years.

Statoil ADRs Off 3%; Company Looking to Sell Gassled Stake to Free Up Capital

Statoil ADRs Off 3%; Company Looking to Sell Gassled Stake to Free Up Capital



ADRs of Statoil ASA (STO) are down as Bloomberg reports that the oil producer--the largest in Norway--is looking at selling a portion of its 28.5% stake in Norwegian gas-pipeline network Gassled to free up capital.

Already, Exxon Mobil (XOM) agreed last year to sell its 9.43% stake in the network to Njord Gas Infrastructure.

Statoil ADRs are down 3.1%, or $0.90, to $27.96.

Halliburton Gets ExxonMobil Contract in Iraq - Shares Down 2.4%

Halliburton Gets ExxonMobil Contract in Iraq - Shares Down 2.4%



Shares of Halliburton (HAL) are down as the company said it has been awarded a contract by Exxon Mobil (XOM) Iraq Limited to provide drilling services for 15 wells in the West Qurna oil field located in Southern Iraq.

Halliburton will provide a range of well construction services utilizing three drilling rigs to safely deliver the wells, the company said in a statement.

Halliburton shares are down 2.35%, or $1.12, to $47.02.

Halliburton Secures ExxonMobil Contract for West Qurna Development

Halliburton Secures ExxonMobil Contract for West Qurna Development

Monday, April 11, 2011
Halliburton

Halliburton has been awarded a contract by ExxonMobil Iraq Limited (EMIL) to provide drilling services for 15 wells in the West Qurna (Phase I) oil field located in Southern Iraq.

Halliburton will provide a complete range of well construction services utilizing three drilling rigs to safely deliver the wells.

Joe Rainey, president of Halliburton's Eastern Hemisphere operations, said, "This contract award is a testament to the ongoing success of our Eastern Hemisphere growth strategy and is in addition to work awarded in this field by this customer in 2010."

Chevron Rekindles Old Texas Flame

Chevron Rekindles Old Texas Flame

Friday, April 08, 2011
Dow Jones Newswires

by  Isabel Ordonez

Climbing oil prices are making the aging oil fields of Texas's Permian Basin look attractive again to some big petroleum companies.

Chevron has pumped oil from this well-plowed area of west Texas and New Mexico since 1925. But in recent decades, as production in the area declined, Chevron and other companies used it primarily as a lab for oil-extraction techniques that could be employed in larger projects elsewhere.

This year, Chevron, the second-largest U.S. oil company by market value after ExxonMobil, plans to boost investment to $600 million in the Permian Basin, 32% more than a year earlier, and drill twice as many wells as it did in 2010 in the area. Its goal is to squeeze more oil out of these aging fields at a time when oil prices have risen to over $100 a barrel -- levels not seen since summer of 2008 -- and access to oil in the Gulf of Mexico and lucrative foreign fields has become more of a challenge. The company is also seeking to employ new technologies to unlock significant amounts of Permian crude that were hard to reach before.

Some "people in the industry said the Permian Basin was used up, tapped out, yesterday's news," Chevron Vice Chairman George Kirkland told company employees and retirees in a recent gathering here. But "we listened to veterans here who reminded us that the best place to find oil is where it has already been found."

Chevron and other major oil companies, such as Exxon and ConocoPhillips, began refocusing on this flat, arid region dotted by hundreds of rusty pump jacks last year, after the federal government temporarily banned new exploratory drilling in the deep water Gulf of Mexico following BP's oil spill.

The revival of the Permian Basin is also driven by the widespread use of relatively new technologies such as hydraulic fracturing, which involves injecting a mixture of water, sand and chemicals underground at high pressures to release oil from hydrocarbon deposits. In recent years, this and other technologies have unlocked shale oil and gas that wasn't previously accessible, leading to a boom of new wells across the country.

Now they are being adapted and used to boost production from mature oil fields like the ones in the Permian Basin. Chevron and others are also planning to apply the techniques in unexplored shale areas of the basin.
The Permian Basin is especially attractive because its oil reserves, the second largest in the U.S. after Alaska, are already proven and its geology is very well known, said Matthew Jurecky, an analyst at energy consultant Wood Mackenzie.

This means companies can update old wells with new technologies and add new reserves at a significantly lower cost than in other areas, such as the Gulf or Canada's oil sands.

The downtown of Midland is full of high-rises from a storied oil past. Nearby Odessa was depicted in H.G. Bissinger's book "Friday Night Lights" as a model of small-town Texas life, with its reliance on oil-field work and devotion to high-school football.

Oil production at the Permian Basin is less than half what it was in the early 1970s. But after a long decline, in the past five years production in the basin has reversed that trend, growing slowly but steadily. In 2010, the area's oil output rose 1.5% to about 891,600 barrels a day from the previous year, Wood Mackenzie said. The new flow of Permian oil helped U.S. production reach 5.51 million barrels a day last year, its highest since 2004.

The growing interest in the Permian Basin made it relatively easy for BP to sell assets there to Apache Corp. for $3.1 billion last August, as part of the large sell-off it is undertaking to help pay for the Gulf of Mexico spill.

With an output of about 53,000 barrels of oil a day, Chevron, of San Ramon, Calif., is the fourth-largest oil producer in the Permian Basin, behind Occidental Petroleum Corp., Apache and Concho Resources Inc., according to energy consultant IHS Inc.

For Chevron, the Permian Basin is especially significant because it has a bigger presence there than rival majors ExxonMobil and ConocoPhillips, said Fadel Gheit, an analyst at Oppenheimer & Co. A large part of the four million acres Chevron owns in the area were acquired over many years, through the purchase of companies such as Gulf Oil in 1984 and Texaco in 2001.

Chevron said it currently operates 11,000 wells in the Permian Basin and that it plans to drill 350 wells this year.
Most of the company's wells are targeting deeper, tight rock formations that weren't previously thought of as reservoir-quality rock.

Some wells also use horizontal drilling, a recent innovation that helped unlock new oil reservoirs in North Dakota and southern Texas.

"This is a very, very mature basin, but our objective is to sustain production with new investment," Gary Luquette, Chevron's head of exploration and production for the U.S. and Canada, said an interview. "The Permian is a very significant asset in our North America portfolio."

Exxonmobil to Start Exploration Offshore Vietnam Next Month

Exxonmobil to Start Exploration Offshore Vietnam Next Month

Thursday, March 31, 2011
Asia Pulse Pte. Ltd.

ExxoMobil will start its first exploratory drilling off the central coast of Vietnam late next month.

The decision was agreed upon at a city on March 29 between leaders of the People's Committee of Da Nang City and representatives from ExxonMobil Exploration and Production Vietnam Ltd.

The drilling will be conducted at block 119 on the continental shell offshore Quang Ngai Province and Da Nang City. Phung Tan Viet, Vice chairman of the Da Nang People's Committee, asked the company to strictly guarantee technical requirements to avoid environmental pollution. The two sides also discussed plans to ensure safety during oil-rigs construction.

Viet also ordered the city's Department of Agriculture and Rural Development to inform fishermen not to use the exploration area during the 40 days of drilling.

According to reports from state-owned Vietnam Oil and Gas Group PetroVietnam, Vietnam's crude oil reserve in 2010 was estimated at 4.4 billion barrels. The crude oil and gas exploration output in 2010 reached 15.1 million metric tonnes and 9.4 billion metric tonnes, respectively.