Oil and Gas News: Oil

Showing posts with label Oil. Show all posts

Showing posts with label Oil. Show all posts

Tuesday, September 13, 2011

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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Anglo-Turkish Genel Energy Increasing Presence in Northern Iraq

- Anglo-Turkish Genel Energy Increasing Presence in Northern Iraq

Tuesday, September 13, 2011
OilPrice.com
by Charles Kennedy

Anglo-Turkish Genel Energy, soon to be led by former BP CEO Tony Hayward, is seeking to expand its presence in northern Iraq.

Genel Energy, owned by Turkish businessman Mehmet Emin Karamehmet, is seeking a major role in the development of the vast reserves of oil in the Kurdish autonomous region of northern Iraq.

Speaking to Turkey's Hurriyet newspaper Hayward said, "The only approval we need is from the Kurdistan Regional Government, and we expect that approval to come before the end of September. All of the indications in Kurdistan show that things are only going to get better. I think this is a good time to invest in the region."

Hayward also expressed his belief that a "pragmatic realism" now dominated relations between the Kurdish regional government and Baghdad, adding that eventually, the Kurdish region will have "a significant say" in what is going to be finally approved in Iraq's expected hydrocarbons law noting, "This means (a company) can invest. "(The two governments) have agreed to revenue-sharing mechanisms. Payments are being received and I think all indicators show that things are only going to get better. There will be some bumps in the road, but the train and its direction are clear."

(Charles Kennedy is Deputy Editor of OilPrice.com. The original article appears here.)

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Tethys Pumps Oil at Tajik Well

- Tethys Pumps Oil at Tajik Well

Tuesday, September 13, 2011
Tethys Petroleum Ltd.

Tethys gave an update on its operations in the Republic of Tajikistan.

Testing operations are underway on the East Olimtoi EOL09 exploration well located south of the town of Kulob some 10 km north of the Afghan border. This well reached a total depth of 3,765 meters in the Akdzhar formation and testing operations are being undertaken on the overlying Bukhara and Alai formations.

Currently the well is flowing a mixture of completion brine and oil from the upper Alai sandstone interval, this oil being of good quality with an API gravity of approximately 36 degrees. The current section open to testing includes this upper Alai sandstone unit as well as the lower Alai limestone interval and the upper part of the Bukhara formation. The well was drilled with heavy drilling fluid (weighted with barite), which was required to control the well when it intersected the upper Alai reservoir. Barite is currently being observed in the flow lines which the company believes is also inhibiting flow at present. It is anticipated that the well will clean up in due course, however the cleanup period may take some time. The Company is currently evaluating methods of speeding up the clean up of this well including acidization or nitrogen-lifting using coiled tubing, subject to availability of equipment.

There are two further sandstone zones in the Alai formation which appear oil bearing based on wireline logs and which will be tested after a stable and representative flow rate has been achieved from the upper Alai sandstone unit. The lower part of the Bukhara interval was also tested but was found to have low permeability at this location although with the potential for production in future wells using production enhancement techniques such as hydraulic fracture stimulation. Mobilization of such equipment to Tajikistan would take a
significant amount of time, as such the company has chosen to focus on the upper zones of this particular well at this time.

The Persea 1 exploration well, located near the town of Kurgon-Teppa is progressing within the 12 1/4" hole section. This well is primarily targeting the Bukhara limestone formation in a four-way dip closed structure with the overlying Alai formation forming a potential secondary target. The planned total depth of this well is 2,700 meters and it is expected that this will be reached in October 2011.

Data collection for the gravity, gradiometry and magnetic aerial survey carried out over the 35,000 km2 Bokhtar Production Sharing Contract Area has now just been completed. This will provide additional and more aerially extensive data to complement the existing seismic acquisition with the final processed data and results expected in 4Q 2011.

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Oil India Plans to Invest $4B in Five Years to Raise Output

- Oil India Plans to Invest $4B in Five Years to Raise Output

Tuesday, September 13, 2011
Dow Jones Newswires
NEW DELHI
by Rakesh Sharma

Oil India plans to raise its capital expenditure 73% to about INR190 billion ($4 billion) in the five years starting April 2012 as the state-run explorer seeks to sharply raise oil and gas production, its finance director said.

"We are stepping up exploration and development of our blocks in India and overseas," T.K. Ananth Kumar told Dow Jones Newswires late Monday. "We are also seeking producing assets, so we have raised our capital expenditure plans."

The company's capital expenditure in the five years ending March 2012 is likely to be about INR110 billion. It accounted for a 10th of India's total oil output of 754,000 barrels a day and 4.5% of total gas output of 52.22 billion cubic meters in the last financial year. Kumar didn't say how much the company is aiming to produce.

Oil India will mainly fund its investments through internal accruals, but may raise debt, he said.

The company, which was listed on local stock exchanges in September 2009, has cash reserves of INR130 billion, he added.

Oil India and its bigger state-run rival Oil & Natural Gas Corp. need to boost capital spending to bring new fields into production amid falling output at their aging fields. India, which imports about four-fifths of its crude oil requirements, is encouraging explorers to ramp up exploration and production to meet surging demand for energy in the world's second-fastest growing major economy.

"We have been witnessing an increase in capex by oil and gas explorers in India for the past several years as energy security is a focus. This sort of high capex is quite achievable by Oil India considering they have more than INR120 billion of cash and have been generating a cash flow of about INR40 billion per year," Alok Deshpande, analyst with Elara Securities Ltd., said.

Oil India is seeking to acquire producing oil and gas assets in Australia, Russia, Kazakhstan and Canada, Kumar said.

"We have shifted our focus to acquiring producing assets, rather than going for exploration blocks, as we already have our hands full with existing exploratory blocks. Also, we have enough cash in hand and that would be the best use of it," Kumar said.

Oil India is in talks with French explorer Etablissements Maurel et Prom to buy a stake in its Gabon assets and plans to close the deal by March, Mint newspaper reported Monday. Kumar declined to comment on the report.

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

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Cairn Updates Operations Offshore Greenland

- Cairn Updates Operations Offshore Greenland

Tuesday, September 13, 2011
Cairn Energy plc

The following operational update relates to Cairn's exploration drilling campaign offshore Greenland.

Gamma-1 Well: Eqqua Block, West Disko Area

The Gamma-1 exploration well, drilled by the Ocean Rig Corcovado drillship, located in 1,520 meters (m) of water and 294 kilometers (km) from Aasiaat, in the Eqqua Block in the West Disko area has reached total depth (TD) and preparations are under way to plug and abandon the well. The well had been targeted to test a deep water Tertiary basin floor fan located 100km down dip from the T8-1 well where biogenic and thermogenic gas had been encountered in 2010.

The Gamma-1 well intersected the prognosed basin floor fan at the anticipated depth, although no reservoir or hydrocarbon shows were encountered in the interval.

Delta-1 Well: Napariaq Block, West Disko Area

The Delta-1 exploration well, drilled by the Leiv Eiriksson semisubmersible drilling rig, located in a water depth of 293m and approximately 365km offshore Aasiaat, in the Napariaq Block is currently drilling ahead. The Delta-1 well is aiming to intersect Cretaceous sediments in a large structural closure beneath the Tertiary volcanic interval in which oil shows were encountered in the Alpha-1 well drilled in 2010. The well has so far encountered several hundred meters of Tertiary volcanic section, which is thicker than anticipated and with only minor hydrocarbon indications. A further update will be made later this month, once the well reaches TD.

AT7-1 Well: Atammik Block, South Ungava Area

Following completion of the operations on the Delta-1 Well, the Leiv Eiriksson is scheduled to move south to re-enter the AT7-1 well in the Atammik block, located in 909m of water and 198km offshore Nuuk, and drill to the planned TD.

Fifth Well: AT2 Prospect: Atammik Block, South Ungava Area

Once operations on the Gamma-1 well are complete, the Ocean Rig Corcovado is scheduled to move 597km south, to the Atammik Block, to drill the AT2 prospect as a fifth well in the 2011 exploration drilling campaign.

Further updates will be provided whenever a well is at TD and operations are complete.

Simon Thomson, Chief Executive, said, "The full results of the Gamma-1 well and the update from the Delta-1 well will be reviewed in the context of all the data gathered during the Greenland exploration campaign.

The rigs are scheduled to move south to drill the final two wells of the program on the Atammik block. We remain focused on the potential of our multi-basin position in Greenland."

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Monday, September 12, 2011

Oil & Gas Post - All News Report for Monday, September 12, 2011

Monday, September 12, 2011

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Commodity Corner: Oil Settles Higher on Euro Rebound

- Commodity Corner: Oil Settles Higher on Euro Rebound

Monday, September 12, 2011
Rigzone Staff
by Matthew V. Veazey

Monday came and went without a Greek debt default, and the euro managed to rebound from its lowest point since mid-February.

Because oil becomes a better value for investors when other currencies strengthen against the U.S. dollar, the price of a barrel of light sweet crude oil for October delivery gained 95 cents to settle at $88.19 Monday. The Brent contract price, however, lost 52 cents to end the day at $112.25 a barrel.

Investors increasingly braced themselves last week for Greece to default on its national debt payments, with some expecting the situation to reach a head on Monday. As a result, the euro headed downward for much of the day until bottoming out at $1.3495. The currency regained some positive movement against the dollar. According to the European Central Bank, Monday's reference rate was $1.3656.

The WTI traded within a range from $85.00 to $88.95 while the Brent contract fluctuated from $110.62 to $113.69.

With Tropical Storm Nate steering clear of the U.S. Gulf Coast, instead making landfall in Mexico's Tabasco state, investors see no near-term threats to oil and gas infrastructure in the Gulf. Moreover, forecasters expect Tropical Storm Maria to remain in the Atlantic and veer away from the U.S. East Coast. As a result, October natural gas lost three cents to end the day at $3.885 per thousand cubic feet.

Natural gas peaked at $3.925 and bottomed out at $3.83 Monday.

October gasoline also lost three cents, settling at $2.74 a gallon. The front-month contract fluctuated from $2.71 to $2.78.

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Cooper Begins Butlers-4 Drilling

- Cooper Begins Butlers-4 Drilling

Monday, September 12, 2011
Cooper Energy Limited

Cooper Energy Limited announced that the Butlers-4 appraisal/development well in PEL92 spudded at 11:30 pm Sunday. The current operation is drilling ahead in the surface hole at 135 meters.

Butlers-4 is the third appraisal/development well on the Butlers Oil Field in the current PEL92 drilling program. Butlers-4 is targeting the Namur oil reservoir in the crestal part of the field 0.26km to the southeast of the Butlers-1 discovery well. The well will be drilled to a total depth of about 1,390 meters and is expected to take 9 days to drill and complete.

The Butlers oil field is currently producing approximately 1,400 barrels of oil per day from the Namur reservoir from the Butlers-1 well with Butlers-2 and Butlers-3 yet to be completed. It is expected that Butlers-4 will accelerate production as well as draining previously unaccessed reserves. The Butlers surface facilities will be upgraded to handle the increased production. Oil production from Butlers is exported via the pipeline to Tantanna and then exported to Moomba.

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Nuvia Names Hill Business Manager

- Nuvia Names Hill Business Manager

Monday, September 12, 2011
Nuvia SITA NORM Limited

Nuvia SITA NORM has appointed a manager for its new Stoneyhill NORM Treatment Facility, near Peterhead, U.K.

Ewan Hill has been appointed to the position of Business Manager for Nuvia SITA NORM. He is now tasked, not only with managing the new facility, but also overseeing safe operations, ensuring environmental compliance and developing the business as a whole.

Ewan is a Chartered Waste Manager, has a Masters Degree in Environmental Studies and over 10 years' experience in the waste management industry, having worked previously in contaminated soil remediation and as a waste minimization manager with Glasgow City Council. Ewan also has experience of the oil and gas industry through a position with Denholm Industrial Services.

Nuvia SITA NORM is a specialist joint venture company that brings together the nuclear industry experience of Nuvia Limited, one of the UK's leading radiation protection and radioactive waste experts, with the recycling and waste management capabilities of SITA UK.

The company's new NORM treatment facility at Stoneyhill near Peterhead will clean and recycle equipment from North Sea oil and gas operations affected by naturally occurring radioactive materials. It will present the industry with the means to comply with new environmental regulations governing the treatment and disposal of NORM waste.

NORM is the acronym for Naturally Occurring Radioactive Material and is a term used to describe low levels of radioactivity that exist naturally in the geological environment. It is found in a variety of bulk commodities, process wastes and commercial items, such as sands, china clays and soils, granite, coal and groundwater. It is also a by-product of the oil and gas industry and develops as a mineral scale on the inside of pipes and valves.

NORM-affected equipment delivered to Stoneyhill will be cleaned inside a custom built containment with ultra high powered water jets to safely remove mineral scale. Once de-scaled, metals and pipework will either be reused or recycled and the treated waste consigned to landfill under authorization at SITA UK's adjoining Stoneyhill site.

Commenting on his appointment, Ewan said, "With all major works on the construction of the facility now complete, commissioning is well underway and I'm looking forward to firmly establishing the business as an essential part of the supply chain for the region's oil and gas operators."

The company has also appointed a supervisor for the facility and is now seeking to appoint a number of water jetting and descaling operatives at the site and invites applications in writing to Ewan Hill, Business Manager, Nuvia SITA NORM Treatment Facility, Stoneyhill Resource Recovery Park, Long Haven, Peterhead, AB42 0PR.

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BOEMRE Names Senior Managers

- BOEMRE Names Senior Managers

Monday, September 12, 2011
Bureau of Ocean Energy Management, Regulation and

Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) Director Michael R. Bromwich on Monday announced several key appointments to high-level positions in the two new, independent agencies that will carry out the offshore energy management and enforcement functions currently under the jurisdiction of BOEMRE. The Bureau of Ocean Energy Management (BOEM) and the Bureau of Safety and Environmental Enforcement (BSEE) will begin operating on October 1, 2011.

"I am pleased to announce my selection of a group of exceptionally qualified individuals," said Director Bromwich. "Throughout the recruitment process, we have looked for leaders who are technically skilled and experienced, and who can lead our ongoing efforts to enhance the safety of offshore exploration and production. The new leadership represents a combination of talented people from inside the agency with an exceptionally well-qualified group of people recruited from outside the agency."

BOEM will be responsible for managing development of the nation's offshore resources in an environmentally and economically responsible way. Functions will include: Leasing, Plan Administration, Environmental Studies, National Environmental Policy Act Analysis, Resource Evaluation, Economic Analysis and the Renewable Energy Program.

Some of the key leaders for BOEM will include:

Dr. Walter D. Cruickshank, who will serve as the BOEM Deputy Director. Dr. Cruickshank has more than 25 years of experience at the Department of Interior. He most recently served as the BOEMRE Deputy Director. He earned a Bachelor of Arts in Geological Sciences from Cornell University and Doctorate in Mineral Economics from the Pennsylvania State University.
Renee Orr, who will serve as BOEM's Strategic Resources Chief in BOEM. She has more than 23 years of experience with the Department of the Interior. Ms. Orr has overseen the staff implementation teams that have been at the core of the bureau's reorganization effort, and previously served as Chief of Leasing where she was responsible for the development and completion of several 5-Year Oil and Gas Leasing Programs. She earned Bachelor of Arts degrees in Economics and History from Metropolitan State College in Denver.
Maureen Bornholdt, who will serve as the BOEM Renewables Chief. Ms. Bornholdt has more than 27 years of experience with the Department of the Interior. She most recently served as the Project Manager for BOEMRE's Offshore Renewable Energy Program. Ms. Bornholdt earned a Bachelor of Science in Public Administration from George Mason University.
Ellen G. Aronson, who will serve as the BOEM Pacific Region Director. Ms. Aronson has over 33 years of experience with the Department of the Interior. She most recently served as the BOEMRE Pacific Region Director. Ms. Aronson earned a Bachelor of Arts in Liberal Arts from Sara Lawrence College and a Master's of Urban and Regional Planning from the University of Southern California.
Dr. James Kendall, who will serve as the BOEM Alaska Region Director. Dr. Kendall has over 27 years of experience with the Department of the Interior. He most recently served as the BOEMRE Alaska Region Director. Dr. Kendall earned a bachelor's degree in biology from Old Dominion University, Ph.D. in oceanography from Texas A&M University, and a Post-doctoral Fellowship in Marine Biology from the Hebrew University of Jerusalem, Israel. He is also a graduate of the Federal Executive Institute, Charlottesville, Virginia, and the Senior Executive Fellows Program of the John F. Kennedy School of Government at Harvard University.
John Rodi, who has been the Deputy Regional Director of BOEMRE's Gulf of Mexico Region since November 2007 and will serve as the BOEM Gulf of Mexico Acting Regional Director until a permanent Regional Director is selected. Mr. Rodi has more than 40 years of federal service with five different agencies. Mr. Rodi has both Bachelor and Master Degrees in Economics from Tulane University and the University of New Orleans, respectively.

BSEE will enforce safety and environmental regulations. Functions will include: All field operations including Permitting and Research, Inspections, Offshore Regulatory Programs, Oil Spill Response, and newly formed Training and Environmental Compliance functions.

Some of the key leaders for BSEE will include:

Charles Barbee, who will serve as the BSEE Chief of the Environmental Enforcement Division. Mr. Barbee has more than 20 years of experience with the U.S. Coast Guard. Most recently, he was the Coast Guard's program manager for both marine investigations and environmental crime. During his career, Mr. Barbee has specialized in oil spill contingency planning, pollution investigation and response, marine inspections and marine casualty investigations. He graduated and received his commission from the U.S. Coast Guard Academy and earned a Master's Degree in Organizational Management from the University of Phoenix.
Chris Barry, who will serve as the BSEE Director of the National Offshore Training Center. Mr. Barry currently serves as Chief of National Training and Leadership for the Federal Emergency Management Agency in the National Preparedness Directorate. He earned a Bachelor of Arts (dual) degree in Art History and Special Education and a Master of Instructional Systems Design.
David Moore, who will serve as the BSEE Oil Spill Response Supervisor. Mr. Moore has more than 14 years of experience with the Department of the Interior. He most recently served as the Coordinator of BOEMRE's Oil Spill Program. He earned a Master of Engineering degree from Tulane University and a Master of Urban and Regional Planning degree from the University of New Orleans.
Bob Brown, who will serve as the BSEE Associate Director for Administration. Mr. Brown has more than 30 years of experience at the Department of the Interior, Small Business Administration and U.S. Navy. He most recently served as the BOEMRE Associate Director for Administration and Budget and Chief Information Officer. Mr. Brown earned a Bachelor of Arts degree from Seton Hall University and pursued post-graduate studies in History at Georgetown University.
Lars Herbst, who will serve as the BSEE Gulf of Mexico Regional Director. Mr. Herbst has over 27 years of experience with the Department of the Interior. He most recently served as the Gulf of Mexico Regional Director for BOEMRE. He is a registered professional engineer in the State of Louisiana and earned a Bachelor of Science in Petroleum Engineering from Louisiana State University.
Jaron E. Ming, who will serve as the BSEE Pacific Region Director. Mr. Ming most recently served as the Pacific Region's Lead Leasing Specialist. He previously served as the Senior Policy Advisor to the Regional Director. He started his career in the federal government as a Presidential Management Fellow. Mr. Ming earned a Bachelor of Arts degree from Georgetown University, a Master of Arts degree in Marine Affairs and Policy from the University of Miami's Rosenstiel School of Marine and Atmospheric Science, and a Juris Doctorate degree from the University of Miami School of Law.
Mark Fesmire, who will serve as the BSEE Alaska Region Director. Mr. Fesmire most recently served in the New Mexico Energy Minerals and Natural Resources Department, where he has was the Director of the state oil and gas regulatory agency and Chairman of the Oil and Gas Commission for the past seven years. Prior to attending New Mexico State University where he received bachelor's degrees in Geological and Civil Engineering, Mr. Fesmire worked in the offshore oil fields of the Gulf of Mexico. After 12 years as a petroleum engineer, he completed Law School at the Texas Tech University School of Law. He is a Registered Professional Petroleum Engineer and Licensed Attorney.

BSEE is currently accepting applications for the Deputy Director position.

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Bering Spuds Concordia Parish Well

- Bering Spuds Concordia Parish Well

Monday, September 12, 2011
Bering Exploration, Inc.

Bering Exploration, Inc. announced Monday that drilling has begun on the Sharp Heirs A No. 1 well located in Concordia Parish, Louisiana. This well will be drilled to a depth of approximately 7,500 feet to test the prospective zones in the Wilcox formation. This prospect has the potential for multiple wells and potential gross reserves of 500,000 barrels of oil. Bering will have a 10% working interest in this prospect.

"We are excited to begin drilling our initial well on this prospect and expect to reach total depth in a couple of weeks," stated Steven Plumb, VP of Finance of Bering. "If successful, this prospect has the potential to significantly add to our existing production."

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Ecopetrol Builds on Cano Sur Success

- Ecopetrol Builds on Cano Sur Success

Monday, September 12, 2011
Ecopetrol S.A.

Ecopetrol on Monday announced the initial test results of the CSE-8 ST1 exploratory well in the Puerto Gaitan jurisdiction, a municipality in the Meta Province, in areas belonging to the eastern block of the Exploration and Exploitation Cano Sur contract.

Production test to date show a stable average production of 532 barrels per day of API 13.8 grade oil, with water cut around 18.5%.

The exploratory well was designed with a deviated wellbore that allowed contact with a thicker net oil pay and a better location within the deposit. Drilling operations began on August 11, 2011 and reached an average depth of 4,594 feet in 7 days.

This new exploratory success brings to four the number of oil findings in Cano Sur Block during 2011, including Mito-1, Fauno-1 and Pinocho-1. This constitutes an important milestone in the exploration of this block, taking into account its importance for Ecopetrol's heavy crude oil growth strategy.

Results of initial tests show that this well has the highest productivity among the recently drilled wells in this region. Test were undertaken using an artificial lift system with an electric submersible pump.

This contract was signed in June 2005 with the National Hydrocarbon Agency (ANH, Agencia Nacional de Hidrocarburos). Ecopetrol is the sole operator and holder of 100% interests.

"Ecopetrol has identified a huge potential for heavy crude oil commercial production in the Llanos Basin. We are very pleased with this new discovery" said Ecopetrol's CEO Javier Gutierrez Pemberthy.

In the coming months, Ecopetrol will continue to evaluate production conditions and the performance of the deposit found, maintaining simultaneous exploratory efforts in the area of the Cano Sur Block in order to make a prompt commercial viability statement.

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Americas Petrogas, Gran Tierra Hit Oil Pay in Argentina

- Americas Petrogas, Gran Tierra Hit Oil Pay in Argentina

Monday, September 12, 2011
Americas Petrogas

Americas Petrogas announced Monday that it, along with its co-venturer, Gran Tierra Energy, have made a new significant discovery of oil (1,023 barrels of oil equivalent per day) in the 1st of the three exploration wells on the Rinconada Norte block located in the Neuquen Basin of Argentina (Americas Petrogas Argentina S.A. is operator).

The RN x-1004 well flowed a total combined test rate of approximately 944 barrels (150 m3) per day of oil and 13,360 m3 per day of gas (79 barrels of oil equivalent per day) for a total of approximately 1,023 barrels of oil equivalent per day from two intervals tested separately in the Precuyo formation. This well also flowed 43 barrels (5 m3) per day of water or a 4% water cut.

From the depths of the zones tested (982-992 meters and 1022-1032 meters) and electric logs information, the Company estimates an oil column thickness of approximately 60 meters or 197 feet. The oil is 29.6 degrees API, sweet light crude similar to crude oil produced from the equivalent formation in Americas Petrogas' Medanito Sur block. This well has been completed and the service rig will now move on to the next two wells, which have already been drilled, logged and production casing has been installed. Americas Petrogas' wholly-owned Argentina subsidiary, Americas Petrogas Argentina S.A., is the operator of the Rinconada Norte block, holding a 65% working interest, while Gran Tierra Energy, through its Argentina subsidiary, holds a 35% working interest.

Commenting on this most recent discovery, Guimar Vaca Coca, Managing Director of Americas Petrogas Argentina S.A., stated, "We are very excited about this new find on the first well of this three-well exploratory drilling program because of the strong production rates and possibility of significant commercial reserves. We are also optimistic about the prospects for the remaining two wells."

The Rinconada Norte block is currently under an Exploitation concession, which will allow Americas Petrogas and Gran Tierra Energy, with previous approvals from the authorities, to move ahead with development activities in the near term. The Company anticipates building test production facilities in the fourth quarter of 2011. This drilling program on Rinconada Norte represents the initial phase of Americas Petrogas' previously-announced drilling plans for 2011-2012 (see press release of June 3, 2011).

The Rinconada Norte block (approximately 96 sq.km or 37 sections) is located immediately south of and adjoins Americas Petrogas' Medanito Sur block in La Pampa Province in the eastern region of the Neuquen Basin of Argentina.

Barclay Hambrook, President & CEO of Americas Petrogas, stated, "We are very pleased with this discovery and Americas Petrogas is well-funded to accelerate and expand its planned capex program in order to increase production and reserves."

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NPD Head: Norway's New Oil Finds May Help Stem Mid-Term Output Fall

- NPD Head: Norway's New Oil Finds May Help Stem Mid-Term Output Fall

Monday, September 12, 2011
Dow Jones Newswires
by Katarina Gustafsson

Two major oil finds this year by Norwegian oil and gas giant Statoil (STO) could stave off a steep decline in Norway's production in the mid-term, but won't reverse the longer downward trend, Bente Nyland, head of the Norwegian Petroleum Directorate has told Dow Jones Newswires.

This summer's find in the North Sea that is one of the 10th biggest discoveries ever on the Norwegian continental shelf and the earlier slightly smaller success in the Barents Sea complement measures to tackle the fall in the short- and mid-term that are being considered and implemented by the Scandinavian country.

However, ultimately Norway will have to open up new areas and that is more problematic.

"In the short- and mid-term it's important to keep and increase recovery, to have new finds in production and build out what you have found. While in the long run, it's necessary to discuss whether to open up new areas. And that is a political question," Nyland said.

Norway this year reached a treaty with Russia over a long disputed maritime border in the Barents Sea. But it could be a while before this new zone is opened up for exploration, Nyland said the quickest scenario would be around two or three years.

The petroleum directorate has started collecting seismic data from the region and Nyland, a geologist and head of the government body since 2008, said some indication of the region's resources could be given in 2012-13.

The state agency, tasked with overseeing Norway's oil and gas activities, predicts total production will be kept at about the current level until around 2020-25, Nyland said.

Norway's oil production peaked in 2001. Gas production is still rising but Nyland said she expects output to begin decreasing some time at the start of the 2020s given the lack of large gas finds.

"Gas production will to some extent fill in the gap in coming years," she said, adding that increasing the recovery rates in existing oil fields will be critical in the short term.

The petroleum sector is Norway's largest industry. Investments next year in oil and gas activities are seen at a record-high NOK172 billion ($32 billion), according to a recent forecast from Statistics Norway.

Last week, the Norwegian krone climbed to an eight-year high as traders sought a new safe haven after the Swiss National Bank capped the value of the Swiss franc against the euro.

"We have no indications that companies have become more restrictive. But it's too early to say," Nyland said.

In January, the Norwegian Petroleum directorate revised down estimates for undiscovered resources on the Norwegian continental shelf, to 2.6 billion standard cubic meters of oil equivalents from 3.3 billion standard cubic meters of oil equivalents.

"This year's finds give no base for changing our analysis," she said.

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

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Goldman Sees US As Top Oil Producer In 2017 - Report

- Goldman Sees US As Top Oil Producer In 2017 - Report

Monday, September 12, 2011
Dow Jones Newswires
LONDON
by London Bureau

The U.S. will soon become the world's top oil producer, The Sunday Times reported Goldman Sachs as forecasting.

U.S. oil production should reach 10.9 million barrels a day by 2017, a third higher than 8.3 million barrels currently, the newspaper reported the investment bank as saying.

Russia, now the top oil producer, should see production increase only 100,000 barrels in the same period, for an output of 10.7 million barrels a day, the report said.

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

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Iraq Energy Panel Approves Gas Deal - Oil Minister

- Iraq Energy Panel Approves Gas Deal - Oil Minister

Monday, September 12, 2011
Dow Jones Newswires
AMMAN
by Hassan Hafidh

A top Iraqi government energy committee has approved a deal with Royal Dutch Shell PLC (RDSA) to capture and exploit gas from its giant southern oil fields, the country's oil minister said Sunday.

The Iraqi oil ministry struck a deal in July with Shell and Japan's Mitsubishi Corp. (8058.TO, MSBHY) to develop gas production in southern Iraq. To become valid the deal needs approval from the Baghdad government.

"It was agreed upon by the energy committee and was sent to the cabinet for approval," Abdul Kareem Luaiby told Dow Jones Newswires on the sidelines of an Iraqi energy meeting in Amman, Jordan.

The committee is chaired by the deputy prime minister for energy affairs, Hussein al-Shahristani, and its members include the ministers of oil, electricity and finance.

Luaiby declined to say when exactly the cabinet would approve the deal. The agreement must first be examined by the cabinet's legal and specialized offices, he said.

The 25-year venture calls for an investment of $17.2 billion to create the Basra Gas Company. Baghdad would have a 51% stake, Shell 44% and Mitsubishi 5%.

Some $12.8 billion would be spent on infrastructure and $4.4 billion on construction of a liquefied-natural-gas facility.

Under the agreement, the company must first meet local demand but can export any gas not used by Iraq's fuel-starved power plants. The planned LNG terminal would handle the export of 600 million cubic feet a day.

Baghdad would contribute $5.236 billion to the venture, including some $1.524 billion in existing infrastructure. Shell and Mitsubishi need to contribute nearly $7 billion, and the remaining money will be financed through the venture's returns, according to the summary submitted by Iraq's oil ministry to the country's parliament.

The venture would process associated gas produced from three supergiant Iraqi fields--Rumaila, West Qurna phase 1 and Zubair--all in Basra governorate.

"We are committed to supply the venture with 1.6 billion cubic feet a day from these fields," Luaiby said.

The joint venture would sell produced gas to Iraq's state-owned South Gas Company, at international standard pricing.

Iraq estimates it should make around $31.1 billion over the 25 years of the project from taxes, fees and raw gas sales to the joint venture, the document said.

An Iraqi oil expert, who asked not to be named, however, said Iraq would make nearly $100 billion from the venture because the gas would substitute for the oil currently used to fuel Iraq's power stations.

Iraq would tax Shell and Mitsubishi profits at 35%, he said. The expert said Shell and Mitsubishi will make a 7% profit on the whole venture.

Iraq has natural-gas reserves totaling 112.6 trillion cubic feet, the 10th largest in the world. But it produces only around 1.5 billion cubic feet a day, because of a lack of infrastructure.

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

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Friday, September 9, 2011

Oil & Gas Post - All News Report for Friday, September 09, 2011

Friday, September 09, 2011

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Commodity Corner: Oil Falls as Euro Weakens

- Commodity Corner: Oil Falls as Euro Weakens

Friday, September 09, 2011
Rigzone Staff
by Matthew V. Veazey

Light sweet crude oil for October delivery fell below $86.00 a barrel Friday as the U.S. dollar strengthened against the euro.

The WTI bottomed out at $85.64 a barrel before settling at $87.24, still reflecting a day-on-day loss. It peaked at $89.50. The Brent contract price also ended the day lower, settling at $112.77 after trading within a range from $111.09 to $113.89.

A weaker greenback is bullish for crude oil—priced in dollars—because it becomes a better buy for investors holding other currencies. In the case of the euro Friday, the currency weakened amid mounting fears that Greece will default on its debt. The departure of a high-level German official from the European Central Bank Friday contributed to speculation that euro-zone countries will fail to resolve lingering policy disputes that have hindered efforts to resolve debt crises throughout the region.

Equities fell as the euro-zone uncertainty grew, chilling expectations about global demand for oil. The Dow Jones Industrial Average and S&P 500 each lost approximately 2.7 percent while the Nasdaq lost a relatively modest 2.4 percent. President Obama's latest plan to spur job creation in the U.S., presented Thursday night to a joint session of Congress, failed to brighten the demand outlook.

October natural gas also ended the day lower, falling to $3.915 per thousand cubic feet. Gas futures fluctuated from $3.885 to $3.99 during Friday's floor trading.

Front-month gasoline settled at $2.77 a gallon, slightly higher than the $2.76 intraday low. October gasoline peaked at $2.89 Friday.

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API: Obama's Jobs Plan a 'Missed Opportunity'

- API: Obama's Jobs Plan a 'Missed Opportunity'

Friday, September 09, 2011
American Petroleum Institute

API President and CEO Jack Gerard called the president's jobs plan a 'missed opportunity' and said the oil and natural gas industry could create more than a million new jobs for Americans and more revenue for our government with a few sensible changes in national energy policy.

"The president missed an opportunity to pick the low hanging fruit of job creation," said Gerard. "Allowing the responsible development of more of America's vast domestic oil and natural gas resources could generate more than one million new jobs in just seven years, with thousands of shovel-ready jobs that could be created almost immediately."

Gerard cited a study released this week by Wood Mackenzie (PDF file), sponsored by API, that shows the oil and natural gas industry can create 1.4 million additional jobs and more than $800 billion in additional government revenue by 2030.

"Raising taxes on an industry that already contributes more than $86 million every day to the federal government takes us in the wrong direction," Gerard said. "It could put American jobs at risk, decrease oil and natural gas production, harm millions of retirees who rely on income from energy companies, and actually reduce revenue to the government over time."

The oil and natural gas industry actually created jobs in August, a month when there were zero net jobs created in the overall economy, according to the Bureau of Labor Statistics.

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Editorial: A Jobs Plan that Really Works

- Editorial: A Jobs Plan that Really Works

Friday, September 09, 2011
Louisiana Oil & Gas Association

Last night, President Obama addressed a joint session of Congress to discuss his plan to generate jobs, instill some sense of confidence in the market, and give a greatly needed jolt to the U.S. economy. What was meant to be the "speech of all speeches" turned out to be politically charged campaign rhetoric designed to place the deteriorating economic situation on a do-nothing Congress.

For the first time, the President acknowledged the fact that our nation's economy has stalled. And in an effort to get it going again, President Obama will propose his "American Jobs Act" as the solution to our stagnant economy.

From what was relayed in his speech, the "American Jobs Act" calls for approximately $450 billion to be spent over the next year on a number of initiatives that include infrastructure projects, tax credits for employee raises, an extension of jobless insurance, and money for the hiring of teachers nationwide.

First, let's discuss the positives. To the President's credit, he showed a willingness to work side by side with American businesses and acknowledged that there are many over-burdensome regulations that hinder business growth. His jobs plan calls for tax credits for business owners that hire unemployed workers and a 50% payroll tax cut for small businesses. These are certainly positive solutions that will support our business community and stimulate the economy.

Now, let's talk about the bad news. What was missing from the speech was an explanation as to how he will find the money to pay for these initiatives. How do we generate nearly one-and-a-half trillion dollars at the same time the Congressional "Super Committee" searches for over $1.5 trillion in cuts? Have we forgotten that our nation is bankrupt? Have we also forgotten that nearly 42% of Americans aren’t paying any taxes?

Let's take a look at some numbers. Currently, there are 14 million Americans that are unemployed. Approximately, 7.17 million of those potential workers are collecting unemployment insurance. Nearly 2.4 million jobs have been lost since President Obama took the oval office. The jobless rate in the U.S. has hovered around 9.0% or higher for 26 of the past 28 months. A good sign of how bad things are is the fact that long-term unemployment is at its highest levels since the Great Depression of the 1930s.
So, for the sake of the argument, let's assume that President Obama’s re-election depends on gaining back those jobs that have been lost. Let’s also assume that raising taxes in an economic depression is political suicide. With that said, what if an industry could offer cutting those unemployment numbers in half?

Releasing the stranglehold on America's oil and gas industry can generate those jobs and ensure sound economic growth without one tax increase.

In its recent study, the American Petroleum Institute found that U.S. policies which encourage the development and exploration of natural resources could, by 2030, increase domestic oil and natural gas production by over 10 million boed, generate 1.4 million jobs, and raise over $800 billion in government revenue.

In his speech, President Obama called for more products sold around the world stamped with the slogan, "Made in America." While our manufacturing sector has a long way to go, let's start simple by ensuring that the energy we consume here at home has the stamp, "Produced in America."

West Wing Week: 9/9/11 or "American Jobs Act"

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