Chevron Strengthens Portfolio Offshore AU with Arrival of Semisub Osprey

- Chevron Strengthens Portfolio Offshore AU with Arrival of Semisub Osprey

Friday, June 03, 2011
Chevron Corp.

The Atwood Osprey, Chevron's newly contracted ultra-deepwater semisubmersible drilling rig, has arrived in the waters off northwest Australia. Constructed in the Jurong Shipyard in Singapore, the rig will commence operations drilling and complete a queue of development wells as part of the Gorgon Project. The development drilling program scheduled for 2011 and 2012 represents the most significant investments Chevron has made in development drilling offshore Western Australia.

Chevron Australia managing director Roy Krzywosinski said Western Australia is pivotal to the company's strategy of building an internationally competitive gas business in the Asia-Pacific region. He said the company expects the Atwood Osprey to play a key role in strengthening Chevron's growing exploration, appraisal and development portfolio for at least the next three years.

"Chevron continues to make significant investments in developing Australia's natural gas resources," Krzywosinski said. "The arrival of this newly contracted rig represents our ongoing long-term commitment to grow our natural gas business in Western Australia."
Safety First

To ensure a safe startup and a strong safety culture is in place, the Australasia business unit's (ABU) drilling and completions team held three engagements with the Atwood Osprey crew to ensure Atwood's safety management system and those of our business partners were fully aligned with Chevron's expectations for operational excellence.

ABU Drilling and Completions manager Kent Springer said that through these engagements he was confident that Atwood Oceanics and its crew would achieve their vision statement of "always exceeding your expectations" and continue their commitment to safety, personal health, environmental stewardship, efficiency and reliability.

"Both Chevron and Atwood have systems in place to make the rigs as safe as possible. However, these systems are ineffective without the commitment of all our personnel, both rig- and office-based, adhering to them," Springer said. "Therefore, having members of the ABU management team—including Roy Krzywosinski—come along and tell the crew that they have their personal backing to use stop-work authority if they see an unsafe risk or behavior is a powerful message."

The Atwood Osprey can accommodate as many as 200 people, is 426 feet (130 m) tall and 377 feet (115 m) long. When moored, it will be capable of drilling as far as 31,988 feet (9,753 m). With its own mooring equipment, it can operate in water as deep as 5,905 feet (1,800 m), or 8,202 feet (2,500 m) with pre-laid mooring.

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Tullow Strengthens Portfolio with North Sea Buy

- Tullow Strengthens Portfolio with North Sea Buy

Tuesday, May 24, 2011
Tullow Oil plc

Tullow has entered into an agreement to acquire Nuon Exploration and Production (Nuon E&P) for a cash consideration of €300 million ($421.5 million) from the Vattenfall Group.

The acquisition of Nuon E&P will significantly enhance Tullow's North Sea business adding a portfolio of 25 licenses that include over 30 producing fields, numerous development and exploration opportunities and ownership of key infrastructure. This portfolio will increase the Group's North Sea gas production by 9,000 boepd to approximately 23,000 boepd and add reserves and resources of 28 mmboe.

The Nuon E&P assets are very complementary to the Group's existing Dutch assets and will provide a stronger platform for growth in an area that the Group considers has significant potential. The portfolio includes a number of near term development and exploration opportunities with the potential to sustain and grow production in the short term. The ownership and access to key infrastructure is an excellent strategic fit with Tullow's existing exploration acreage in the area.

The Nuon E&P transaction has an effective date of January 1, 2011 and is expected to complete by July 2011.

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Tullow Strengthens North Sea Portfolio with Nuon E&P Acquisition

- Tullow Strengthens North Sea Portfolio with Nuon E&P Acquisition

Tuesday, May 24, 2011
Tullow Oil plc

Tullow has entered into an agreement to acquire Nuon Exploration and Production (Nuon E&P) for a cash consideration of €300 million ($421.5 million) from the Vattenfall Group.

The acquisition of Nuon E&P will significantly enhance Tullow's North Sea business adding a portfolio of 25 licenses that include over 30 producing fields, numerous development and exploration opportunities and ownership of key infrastructure. This portfolio will increase the Group's North Sea gas production by 9,000 boepd to approximately 23,000 boepd and add reserves and resources of 28 mmboe.

The Nuon E&P assets are very complementary to the Group's existing Dutch assets and will provide a stronger platform for growth in an area that the Group considers has significant potential. The portfolio includes a number of near term development and exploration opportunities with the potential to sustain and grow production in the short term. The ownership and access to key infrastructure is an excellent strategic fit with Tullow's existing exploration acreage in the area.

The Nuon E&P transaction has an effective date of 1 January 2011 and is expected to complete by July 2011.

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MOL to Extend Upstream Portfolio to Romania

MOL to Extend Upstream Portfolio to Romania

Wednesday, April 20, 2011
MOL

MOL has signed Concession Agreements with the Romanian National Agency for Mineral Resources for three exploration blocks. As announced on July 5, 2010, EX-1 (Voivozi), EX-5 (Adea) and EX-6 (Curtici) were awarded at the 10th Licensing Round to the consortium of MOL and Expert Petroleum. MOL is the operator of the projects, with 70% participating interest in the blocks, while Expert Petroleum holds the remaining 30%.

The blocks have a combined area of 3,434 square km and are located in the Pannonian basin, next to the Hungarian border. The exploration period is divided to a three-year initial term and an optional three-year phase. The initial work program includes 2D and 3D seismic measurements to be followed by drillings. Besides the good oil and gas potential, some of the blocks have unconventional potential as well.

The agreements are subject to the approval of the Romanian Government.

Zoltán Áldott, Executive Vice President of Exploration and Production Division commented, "We are pleased to extend our international upstream portfolio to Romania, where we have already been present as an important downstream player. We believe that we can benefit from our experience in the exploration of the Pannonian basin gathered during many decades and we look forward to commence the work as soon as practicable."

Szabolcs I. Ferencz, MOL Romania CEO added, "MOL Group has long term investment plans for Romania. Deploying upstream projects in Romania match perfectly with developing our filling stations network and logistics facilities."

Maersk Oil Strengthens North Sea Portfolio with Norway Acquisition

Maersk Oil Strengthens North Sea Portfolio with Norway Acquisition

Monday, April 04, 2011

Maersk Oil

Maersk Oil has acquired shares in three production licenses in Norway from Marathon Petroleum Norge A/S, a wholly-owned subsidiary of Marathon Oil, in exchange for Maersk Oil's financial contribution to the Earb South exploration well.

Marathon Petroleum Norge A/S is currently drilling the well on the Earb South Prospect in the South Viking Graben. Drilling is expected to be completed in May.

As a result of the deal, Maersk Oil will have a 15 percent share in Production Licenses PL505 and PL505BS, where Marathon Petroleum Norge A/S remains the operator (35%) with Lundin Petroleum (30%) and VNG (20%) as partners.

Maersk Oil will also have a 10% share in Production Licence PL570, operated by VNG (40%) with Marathon Petroleum Norge A/S (20%) and Lundin Petroleum (30%).

"This is quality acreage which helps our goal of building a strong portfolio in this part of the North Sea," said Maersk Oil Managing Director in Norway, Morten Jeppesen.

"We believe Maersk Oil's experience in similar plays in both Norway and across the border in the UK could be extremely useful in appraising this acreage, which we believe has a significant potential," Jeppesen said.

The transaction is subject to the necessary authority approvals.

Maersk Oil will now have a total of ten production licenses, three operated, in Norway.

Providence Sells GOM Assets

Providence Sells GOM Assets

Friday, April 01, 2011

Providence Resources plc

Providence announced the immediate sale of its US oil and gas portfolio in the Gulf of Mexico to Dynamic Offshore Resources LLC ("Dynamic") for a consideration of up to $22 million. The consideration comprises an initial cash payment of $15 million, and potentially an additional $7 million deferred cash payment.

This deferred cash payment is dependent on Dynamic reaching certain production levels from any new wells drilled on Ship Shoal 252, 253 and 267 prior to January 2013. Total current production from Providence's Gulf of Mexico portfolio amounts to c. 700 BOEPD.

The proceeds of the sale, which closed on March 31, 2011, are to be applied to a reduction of the Company's Reserve Backed Lending Facility with BNP Paribas. The sale will result in the impairment of the carrying value of the assets, and will necessitate a non-cash write-off to be taken in Providence's 2010 accounts. CIBC World Markets Plc acted as exclusive financial adviser to Providence on this transaction.

Commenting, Mr. Tony O'Reilly, Chief Executive of Providence said, "While the production from the Gulf of Mexico has played an important role in the development of the Company over the past 3 years, it is now less material going forward. With our major multi-year, multi-basin drilling program offshore Ireland starting, combined with our ongoing investment program at Singleton, the investment focus for the Company is now very clear. As such, the opportunity to realise cash from the Gulf of Mexico portfolio, and to deleverage the core business, made sense."