Ukraine, Shell Sign Shale Gas Exploration Deal

- Ukraine, Shell Sign Shale Gas Exploration Deal

Thursday, September 01, 2011
Dow Jones Newswires
KIEV

Ukraine Thursday awarded its first shale gas exploration contract to the Anglo-Dutch giant Shell in a deal worth up to $800 million, Ukraine's state gas exploration company said.

"In case of successful exploration work and the start of intense project development, Shell's total investment under the agreement may come to $800 million," Ukrgazvydobuvannya said in a statement issued after the signing.

Ukraine is widely believed to be one of Europe's largest holders of the new energy resource, with estimated reserves up to 1.5 trillion cubic meters, according to industry analysts.

No official estimate has been made and there is no confirmed figure of how much shale gas might be hidden in the six blocks awarded to Shell near northeastern city of Kharkiv.

Ukraine lacks the advanced technology necessary to produce the hard-to-recover resource and is also holding negotiations with such Western majors as the U.S. firms Chevron and ExxonMobil.

The former Soviet republic has few other natural resources and relies on Russia for most of its gas imports.

But it has been trying to lower its energy dependence on its neighbor since a price dispute temporarily cut Russian gas flows in January 2009 and is now focusing on other sources of energy that include coal.

"The agreement with Shell will be one of the first examples of Ukraine's successful cooperation in hydrocarbons development with an international energy company," Ukrgazvydobuvannya chief Yuriy Borysov said.

Ukrgazvydobuvannya said Shell would be operating in Ukraine through a joint venture but offered no other immediate details.

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

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Eni, Libyan Rebels Sign Deal to Restore Pre-Civil War Role

- Eni, Libyan Rebels Sign Deal to Restore Pre-Civil War Role

Tuesday, August 30, 2011
Knight Ridder/Tribune Business News
by Adnkronos International, Rome

Paolo Scaroni, chief executive officer of Eni met with Libyan rebel leaders in Benghazi Monday where they signed a non-binding agreement to restore the Italian oil company's pre-civil war role as the North African country's biggest oil and natural producer.

"With the memorandum, Eni and the National Transition Council (NTC) are working to recreate the conditions for a swift return of Eni's activities in the country," the Rome-based company said in a statement.

The agreement would allow Eni to resume gas imports to Italy via the Greenstream pipeline, a move that Scaroni last week said was important ahead of winter when demand for the fuel increases.

Scaroni's trip to Libya makes him the first head of a major oil company to visit Libya since rebels last week took over the capital Tripoli, putting an end to Muammar Gaddafi's 42-year-old authoritarian government.

News reports said Scaroni met with the head of Libya's National Oil company, in addition to the NTC, the rebel's political leadership.

Eni is expected to supply Libyan rebels with fuel as part of an international effort to create security and infrastructure in post-Gaddafi Libya.

Oil traders said Eni was trying to hire a tanker to travel to Libya this week, Reuters news agency reported.

Eni needs between 6 and 18 months to restart its oil and gas fields in Libya, Scaroni said Thursday in Milan following a meeting with NTC prime minister Mahmoud Jibril.

Eni has been in the country since 1959 and got 13 percent of its revenue from Libyan natural resources prior to the conflict that broke out in February.

(c)2011 Adnkronos International (Rome). Distributed by MCT Information Services.

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GE Hitachi Nuclear Energy and Exelon Nuclear Sign Services Contract

- GE Hitachi Nuclear Energy and Exelon Nuclear Sign Services Contract



Aug 29, 2011

General Electric (NYSE:GE) Hitachi Nuclear Energy announced that it has been awarded a nearly $150 million integrated outage contract by Illinois-based Exelon Nuclear to help ensure the continued, safe performance of the utility's entire fleet of boiling water reactor nuclear power plants in Illinois, Pennsylvania and New Jersey.

The agreement is effective immediately and runs through completion of the spring outage season in 2015. Terms of the contract call for GEH to provide services for assisting with the refuel floor activities and performing the under-vessel and inspection services.

General Electric (NYSE:GE) has a potential upside of 41.8% based on a current price of $15.92 and an average consensus analyst price target of $22.58.

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Gazprom Neft, Petronas Sign PSA with Cuba on 4 Offshore Blocks

- Gazprom Neft, Petronas Sign PSA with Cuba on 4 Offshore Blocks

Monday, August 01, 2011
Dow Jones Newswires
MOSCOW
by Alexander Kolyandr

Gazprom Neft, which is controlled by state gas company Gazprom, said Monday it has signed a product-sharing contract on four blocks in the Gulf of Mexico offshore Cuba with Petronas, the Malaysian national oil company, and Cubapetroleo, the Cuban national oil company.

Following the signing, Gazprom Neft becomes a party in the contract and acquires 30% stake in the project, while Petronas retains 70% in the project. Prior to the agreement Petronas had a 100% stake in the project.

In October 2010, Gazprom Neft and Petronas signed the Farm-out Agreement

"This partnership with Petronas will help Gazprom Neft to enforce its competence in the sphere of deep water development and expand its expertise in projects outside of Russia," Alexander Dyukov, chairman of Gazprom Neft management board said.

Apart from Cuba, Gazprom Neft participates in international exploration and production projects in Iraq, Equatorial Guinea, Venezuela and--through its Serbian affiliate company--in Angola, Romania and Hungary.

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

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Magellan, Vaalco Sign LOI for Bakken Development in Montana

- Magellan, Vaalco Sign LOI for Bakken Development in Montana

Monday, July 18, 2011
Magellan Petroleum Corporation

Magellan Petroleum Corporation signed a letter of intent (LOI) with Vaalco Energy Inc. to begin work on developing the Bakken formation and deeper horizons within the East Poplar Unit and Northwest Poplar Field in Roosevelt County, Montana (Poplar).

The LOI terms remain subject to closing on a definitive Purchase and Sale Agreement ("PSA"). The LOI contemplates a farm-out to VAALCO of an operating working interest in all of the approximately 23,000 net acres of oil, gas and mineral leases covering the Bakken and deeper formations at Poplar.

VAALCO has agreed to acquire 65% in return for cash consideration and for bearing 100% of the cost to drill three wells by the end of 2012. Parties would then move forward together as 65% / 35% owners respectively to further develop the prospects.

Magellan will retain its current ownership for all formations above the Bakken, including the currently producing Charles and Tyler formations where all Poplar proved and probable reserves are located.

William Hastings, President and CEO commented, "After conducting evaluation drilling, coring, and petrography work, we remain very encouraged about a number of prospective horizons at Poplar. Our new partnership with VAALCO is another step, with a strong and experienced partner, toward monetizing this asset and accelerating near-term development and production, not only from the Bakken but also from the Three Forks, Red River and associated deeper formations there in Montana. Given existing oil and gas infrastructure, our summer recompletion/infill program, our shallow gas plans, and, now, our Bakken partnership, we will continue efforts to add value, and perhaps extend, our position in Montana.

Magellan is a US-based energy company principally engaged in the acquisition, exploration, development and production of crude oil and "stranded" natural gas. Magellan's strategy involves the exploitation of already discovered oil and natural gas properties worldwide into non-traditional, growing markets. The company's properties and exploration acreage are located primarily in Australia, the United Kingdom, and the United States.

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Petronas Charigali, Turkmenistan Sign New Contract

- Petronas Charigali, Turkmenistan Sign New Contract

Wednesday, July 13, 2011
Knight Ridder/Tribune Business News
by H.Hasanov, Trend News Agency, Baku, Azerbaijan

The Malaysian state-owned Petronas Charigali petroleum company (operating in the Turkmen sector of the Caspian Sea since 1996), the State Agency for Management and Use of Hydrocarbon Resources under the Turkmen President, and the State Concern Turkmengas have signed an agreement for natural gas sales, an official Turkmen source reported.

This agreement coincides with the opening of a gas processing plant with a design capacity of 10 billion cubic meters of gas per year. It was built in the Caspian Sea town of Kiyanly. At the initial stage, the production will reach 5 billion cubic meters of gas.

The new plant will allow the company to begin exporting the associated natural gas from Turkmenistan, on whose resources Europe relies, with an attempt to diversify the sales markets.

One option to deliver Caspian resources is the Trans-Caspian Pipeline between Azerbaijan and Turkmenistan. This communication may be part of the large-scale Nabucco pipeline project.

As for oil, Petronas began the commercial production and export of raw material in May 2006, by using an oil transport route which passes through Azerbaijan and Iran.

Malaysia's Petronas Charigali is widely represented in Turkmenistan on the Turkmen market. The company signed the PSA with the Turkmen government in 1996 for the development of the Turkmen sector of the Caspian Sea. The contract area includes the fields Diyarbekir, Magtamguli, Ovez, Mashrikov, and Garagol- Denis.

Copyright (c) 2011, Trend News Agency, Baku, Azerbaijan

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Petrofac, Petronas Sign MOUs, Strengthen Relationship

- Petrofac, Petronas Sign MOUs, Strengthen Relationship

Wednesday, July 13, 2011
Petrofac Ltd.

Petrofac has signed two memoranda of understanding (MOU) with Petroliam Nasional Berhad (PETRONAS).

The first MOU records the undertaking by Petrofac and PETRONAS to accelerate production from Block PM304, offshore Peninsular Malaysia, with a third phase of development. Petrofac owns a 30% equity share and is the Operator of PM304, which includes the Cendor and West Desaru fault blocks. Petrofac intends to accelerate the development of the West Desaru fault block by introducing an Early Production System which will involve both utilising current export facilities and also upgrading and deploying a Mobile Offshore Production Unit which is in the process of being purchased. This approach is expected to bring forward first oil production from West Desaru into the fourth quarter of 2012. The second phase development of the Cendor fault block, also in Block PM304, is expected to start up in the second quarter of 2013, bringing the overall production capacity of Block PM304 to around 60,000 barrels per day.

The second MOU outlines the intention between Petrofac and PETRONAS to collaborate in the area of competency development, capability building and education activities. This will involve a technical training partnership between Petrofac Training Services and Institut Teknologi Petroleum PETRONAS (INSTEP) to develop competency-based training for operations and maintenance personnel, as well as lecture and seminar programs with the Universiti Teknologi Petroleum (UTP).

Ayman Asfari, Petrofac Group Chief Executive, commented, "We have been working with PETRONAS since 2004, when we began the development of PM304 with the Cendor fault block. This is a relationship we value highly and which continues to deepen. We have today entered into two arrangements that will accelerate the development of PM304 and support PETRONAS in their continuous efforts in enhancing Malaysian capability in the oil & gas sector. In combination, we are providing a solution which addresses important strategic targets for PETRONAS and serves to underpin the strength of our Integrated Energy Services offering."

Dato' Shamsul Azhar Abbas, PETRONAS' President and Chief Executive said, "From the early stages of their entry into Malaysia's oil & gas upstream development PETRONAS has viewed Petrofac as one of its strategic partners. This view is reflected by the MOUs we have exchanged today. Going forward, PETRONAS will be able to access and benefit from a broader range of capabilities from across the Petrofac group, building on our existing partnership. We look forward to our continued collaboration with them."

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South Africa, South Korea Sign Deal on Hydrocarbon Exploration

- South Africa, South Korea Sign Deal on Hydrocarbon Exploration

Tuesday, July 05, 2011
Deutsche Presse-Agentur (dpa)

The national oil companies of South Africa and South Korea on Tuesday signed a deal on hydrocarbon exploration in Africa.

PetroSA and the Korea National Oil Corporation (KNOC) said they will also explore investment opportunities in the oil and gas sector on the continent.

The South African company said the deal would help it secure fuel supplies for the country, while its South Korean counterpart said this was a "golden opportunity to advance into African regions."

This is the latest deal between major Asian economies and African firms on natural resources, while countries like South Korea seek access to key exports to ensure their growth.

Copyright 2011 dpa Deutsche Presse-Agentur GmbH

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Det norske, Partners Sign Agreement for Block in Barents Sea

- Det norske, Partners Sign Agreement for Block in Barents Sea

Friday, June 10, 2011
Det norske oljeselskap ASA

Det norske and partners DONG and Edison have signed agreements for production license 613 at the Ministry of Petroleum and Energy.

Production license 613 was awarded in the 21st licensing round. The license is located in the northern part of Loppa High in the Barents Sea. The license covers blocks 7322/10 and 11.

The work program that the companies have now committed themselves to, includes acquisition of 3D seismic over the area. The decision to drill an exploration well must be taken within three years. Acquisition of seismic is planned to start already this year, and the first partner meeting will take place as early as next week.

Work with this license will be placed at Det norske's office in Harstad.

Licensees in PL 613:

• Dong E&P Norge (operator) 40 percent
• Det norske oljeselskap 35 percent
• Edison International Norway 25 percent

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Hyperdynamics, AGR Sign Contracts for Offshore Guinea Exploration Proj.

- Hyperdynamics, AGR Sign Contracts for Offshore Guinea Exploration Proj.

Wednesday, June 01, 2011
Hyperdynamics Corp.

Hyperdynamics announced that AGR Peak Well Management Ltd. has signed contracts on behalf of the Company for long-lead-time equipment, materials and professional services totaling approximately $12 million.

These purchases, which are included under several separate contracts, will cover Hyperdynamics' needs for the first two exploration wells that are planned offshore Guinea starting in the fourth quarter of this year.

The majority of the purchases include materials that will be used in the well itself, such as pipe and casing, a wellhead, drilling fluid and cement. Other contracts cover logistics and a variety of analytical services to evaluate underwater and sea floor conditions at the proposed well sites.

"These contracts are an important next step in our preparations for beginning Hyperdynamics' exploration drilling program later this year," said Ray Leonard, the Company's President and CEO.

"They cover the majority of the long-lead-time materials and services that we will need to drill wells one and two, and they represent the majority of equipment and services that will be used offshore. Between now and the initiation of drilling, working through AGR, we plan to engage additional contractors to move people and equipment between the drillship and shore and to secure shore-based facilities, materials and services."

AGR, based in Aberdeen, Scotland, is providing well management support services to Hyperdynamics.

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Statoil, Sintef Sign Landmark Research Agreement

- Statoil, Sintef Sign Landmark Research Agreement

Tuesday, May 31, 2011
Statoil

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

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

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

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

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

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

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

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

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

Wednesday, May 25, 2011
JSC KazMunaiGas Exploration Production

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

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

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

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

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Govt Regulators Sign Pact for Offshore Energy Development

- Govt Regulators Sign Pact for Offshore Energy Development

Tuesday, May 24, 2011
BOEMRE

As the International Oil Spill Conference kicks off in Portland, Ore. today, co-sponsors the Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) and the National Oceanic and Atmospheric Administration (NOAA) announced that they have signed a landmark Memorandum of Understanding (MOU) to increase their coordination and collaboration to ensure the environmentally sound offshore energy development.

"BOEMRE and NOAA have enjoyed a long and productive relationship, but there is room for improvement. We can and will broaden and enhance the communication, cooperation and collaboration between our agencies," said BOEMRE Director Michael R. Bromwich. "This MOU creates new mechanisms to ensure the early and close coordination of BOEMRE and NOAA science and agency priorities to promote stronger environmental stewardship and stimulate greater efficiency in developing and implementing Outer Continental Shelf (OCS) energy policy and conservation."

"This agreement improves how we coordinate and collaborate to ensure energy resources are developed in an environmentally sound manner that protects marine life and ecosystems under our respective authorities," said Jane Lubchenco, Ph.D., under secretary of commerce for oceans and atmosphere and NOAA administrator. "We look forward to continuing to work with BOEMRE to ensure NOAA science informs offshore energy development and oil spill response."

This MOU, which is consistent with recommendations from the National Commission on the Deepwater Horizon Oil Spill and Offshore Drilling, specifies how BOEMRE and NOAA will cooperate and coordinate by:

• Defining specific processes to ensure effective and timely communication of agency priorities and upcoming activities;
• Identifying and undertaking critical environmental studies and analyses;
• Collaborating on scientific, environmental and technical issues related to the development and deployment of environmentally sound and sustainable offshore renewable energy technologies; and
• Increasing coordination and collaboration on decisions related to OCS activities, including with respect to research and scientific priorities.

Other key elements of the MOU include meeting regularly to develop potential ways to appropriately align regulatory and decision-making processes and identify the best available science to support future regulatory decisions; increased collaboration on oil spill exercises and response issues; and annually evaluating activities and progress related to National Ocean Policy objectives.

BOEMRE and NOAA have a history of nearly 40 years of successful scientific collaboration. These collaborative efforts encompass all OCS planning areas, from the highly successful Outer Continental Shelf Environmental Assessment Program in Alaska to ongoing joint funding of the environmental monitoring at the Flower Gardens National Marine Sanctuary in the Gulf of Mexico. These and other collaborations cover all technical disciplines from marine mammals and physical oceanography to the joint development of environmental documents in compliance with the National Environmental Policy Act.

BOEMRE and NOAA have had many significant and successful partnerships, including those conducted under the National Oceanographic Partnership Program. This has enabled both agencies to leverage their research capabilities to significantly increase the body of knowledge about our nation's marine environment.

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Bahamas Petroleum, Fugro Sign Contract for Seabed Survey

- Bahamas Petroleum, Fugro Sign Contract for Seabed Survey

Tuesday, May 24, 2011
Bahamas Petroleum Co. plc

Bahamas Petroleum has signed a contract with Fugro N.V. ("Fugro") to undertake a high resolution seabed survey on the Company's license area. The survey will begin in early June; will take approximately six weeks to complete; and will also be used for the 3D seismic survey being undertaken by CGGVeritas.

Dr. Paul Crevello, CEO of Bahamas Petroleum, said, "We are pleased to have signed this contract with Fugro and look forward to receiving the results of the seabed survey in due course, which will be applied towards the hydrocarbon seep detection and environmental assessment of the area. This is another important step in the Company's exploration program."

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NTIC Subsidiary, Petrobras Sign Phase 2 Contract

- NTIC Subsidiary, Petrobras Sign Phase 2 Contract

Thursday, May 19, 2011
Northern Technologies International Corp.

Northern Technologies announced the signing of a Phase 2 expanded contract between Petrobras and Zerust Prevencao de Corrosao S.A. (NTIC's Brazilian subsidiary) to supply an additional $2.6 million (BRL$ 4.21 Million) in ZERUST(R) FlangeSaver(TM) products to help protect several more of Petrobras' offshore oil production rigs from corrosion damage.

Petrobras, the world's 6th largest oil producing company in terms of volume, currently owns and operates 109 offshore rigs. Prior to awarding contracts to NTIC's Brazilian subsidiary, Petrobras conducted extensive multi-year product field trials against competitive alternatives. This new contract is a result of the fulfillment of the Phase 1 contract awarded by Petrobras to NTIC's Brazilian subsidiary in July 2010 for an initial implementation of $1.4 million (BRL$ 2.5 Million) in FlangeSaver products.

"We are very pleased that our ZERUST(R) FlangeSaver(TM) corrosion protection products continue to prove their value to Petrobras by helping to reduce operating, environmental and maintenance costs by significantly extending the operational integrity and safety of certain equipment on their offshore rigs," said Patrick Lynch, President and Chief Executive Officer of NTIC. "Corrosion is a significant threat to keeping essential equipment operating properly on off-shore installations. Zerust(R) products have proven, time and again, their ability to provide the corrosion prevention necessary to protect infrastructure and thereby protect the oil workers from harm and the environment from damage," Mr. Lynch continued. "We're proud to offer the oil and gas industry innovative solutions to protect against the environmental damage that can be caused by corrosion damage to oil and gas infrastructure."

FlangeSaver technology as well as other Zerust(R) Oil & Gas corrosion solutions are based on NTIC patented and/or proprietary technologies and are intended to significantly extend the service life of oil and gas industry infrastructure beyond the capabilities of conventional alternatives. NTIC has a core R&D team dedicated to the Oil & Gas sector based in Beachwood, OH and is currently conducting joint R&D and trials with multiple major oil companies around the world. Together with its extensive joint venture network, NTIC has trained personnel in most geographic regions to support global oil & gas industry clients.

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Chevron, JX Nippon Sign Gorgon SPA

Chevron, JX Nippon Sign Gorgon SPA

Tuesday, May 10, 2011
Chevron Corp.

Chevron Corp. on Tuesday announced that its Australian subsidiary has signed a Sales and Purchase Agreement (SPA) with JX Nippon Oil and Energy Corporation for a portion of Chevron's offtake of liquefied natural gas (LNG) from the Gorgon Project.

Under the binding agreement, JX Nippon Oil and Energy will receive 0.3 million tons per annum (MTPA) of LNG from the Gorgon Project for 15 years.

John Gass, president, Chevron Gas and Midstream, welcomed JX Nippon Oil and Energy Corporation as a customer of the Gorgon Project. "We are pleased to have JX Nippon Oil and Energy as a customer of the Gorgon Project. Chevron has a long-standing relationship with JX Nippon Oil and Energy, and we look forward to continuing to grow our relationship."

Roy Krzywosinski, managing director, Chevron Australia, said, "The agreement is another step towards commercializing our equity natural gas in Australia, further demonstrating Chevron's leading ability to meet long-term demand growth in Asia-Pacific. Construction of the Gorgon Project is progressing well with first gas expected in 2014."

Chevron is the operator of the Gorgon Project and holds an approximate 47 percent interest.

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JX Nippon, Qatar Sign Gas Exploration Deal - Reports

JX Nippon, Qatar Sign Gas Exploration Deal - Reports

Monday, May 09, 2011
Deutsche Presse-Agentur (dpa)

Japan's JX Nippon Oil & Gas Exploration Corp. and state-operated Qatar Petroleum signed a 100-million-dollar exploration and production sharing agreement for a natural gas field off the emirate, news reports said Monday.

JX Nippon, a unit of JX Holdings Inc, reached the 30-year agreement Sunday with Qatar for production sharing at Block A, a 6,173-square-kilometer area near North Field, the world's biggest gas field, Jiji Press reported.

The field is estimated to have significantly large reserves, an unnamed official of Japan's Agency for Natural Resources and Energy was quoted by Jiji as saying. Production is expected to start around 2020 after five years of exploration and test drilling.

Industry Minister Banri Kaieda said in a statement that the latest deal would help Japan bolster its bilateral relations with Qatar and secure energy needed for its recovery from the March earthquake disaster, Jiji reported.

Demand for liquefied natural gas has risen in Japan following the March 11 earthquake and tsunami, which forced providers to take a number of nuclear power stations offline. The disaster crippled the Fukushima Daiichi nuclear plant and it has leaked radiation into the air and sea ever since.

Amid growing public concern about another nuclear accident and demands to review the country's nuclear energy policy, Prime Minister Naoto Kan urged utility provider Chubu Electric Power Co Friday to shut down all reactors at its Hamaoka nuclear station located near a geological fault line.

Copyright 2011 dpa Deutsche Presse-Agentur GmbH

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Petrovietnam, PDVSA Sign Oil Extraction Deal

Petrovietnam, PDVSA Sign Oil Extraction Deal

Monday, April 18, 2011

Asia Pulse Pte. Ltd.

Vietnam National Oil and Gas Group (PetroVietnam) and Venezuela National Oil Petroleum Company (PDVSA) have reached an agreement on measures to extract the first oil flow from Block Junin 2 in Venezuela in the fourth quarter of 2012.

The two sides agreed on tasks and funding for their joint venture Petromacareo in 2011-2012 to enable it conduct the assessment, development and installation of equipment, building of pipelines, and implementation of oil services for the Junin 2 project. With a very large investment capital and scale, the Junin 2 project is seen as a motive force for the development of oil projects between Vietnam and Venezuela.

The oil output pumped from Block Junin 2 is expected to reach 10 million tonnes by 2016.

Apart from Junin 2, PetroVietnam and PDVSA are cooperating in several other projects, including a master study project for Maracaibo lake and an expansion and upgrade project for Dung Quat Oil Refinery.

During his working visit to Venezuela, PetroVietnam's Chairman Dinh La Thang has gained Venezuelan Vice President cum Minister of Energy and Petroleum Rafael Ramirez Carreno's commitments to simplifying administrative procedures and required processes while giving top priority to PetroVietnam's service companies to engage in providing services related to the Junin 2 field project, said PetroVietnam.

Venezuela said it was ready to provide strategic reserves of crude oil and oil products for Vietnam in the long term.

Statoil, Partners Sign $1.5B EPC Contract with Petrofac

Statoil, Partners Sign $1.5B EPC Contract with Petrofac

Tuesday, April 12, 2011
Statoil

Statoil, BP and Sonatrach have signed a USD 1.15 billion engineering, procurement and construction (EPC) contract with Petrofac International (UAE) LLC in Algiers for the execution of the In Salah Southern Fields development project.

The EPC contract is part of the phase two development of the In Salah license. For Development and Production International the project marks an important step towards maturing barrels for profitable production.

The three gas fields – Krechba, Teg and Reg – located in the northern part of the license, were initially developed in phase one, with the objective of delivering a production profile of nine billion cubic meters of gas annually. This phase started in late 2001, and first commercial gas was delivered in July 2004.

Based on the expected decline of gas production from these three fields, phase two of the development has now implemented to maintain the production plateau and sustain long-term gas sales commitments. It consists of four gas fields – Garet El Bifna, Gour Mahmoud, In Salah and Hassi Moumene – in the southern part of the license.

Under the EPC contract Petrofac will build a number of facilities – including well pads, manifolds, flowlines, and a new central processing facility (CPF) with a gas processing capacity of 17 million cubic meters per day. The CPF will be constructed north of In Salah town and tied back to the existing producing facilities located in Reg for further transport of the gas to Krechba CPF for carbon dioxide removal and gas export.

In his speech, Victor Sneberg, Statoil's country president in Algeria, stated his expectation to Petrofac to deliver on time, cost and schedule.

First gas from the Southern Fields development project is expected for the first half of 2014. Gas produced from In Salah is marketed by joint marketing company "In Salah Gas Limited" – an association between Sonatrach, BP and Statoil. The three partners in the In Salah license have investment shares of 35% (Sonatrach), 33.15% (BP) and 31.85% (Statoil), respectively.