Venezuela PdVSA to Invest $2B Into Tricolor Project

- Venezuela PdVSA to Invest $2B Into Tricolor Project

Friday, July 29, 2011
Dow Jones Newswires
CARACAS
by Kejal Vyas & Ernesto J. Tovar

Venezuelan oil giant Petroleos de Venezuela, or PdVSA, will invest $2 billion into its Tricolor Project in the Orinoco heavy oil belt this year, company officials said Thursday. The money will go toward raising output from 23,000 barrels a day to 146,000 barrels daily in the Junin, Carabobo and Ayacucho blocs by year's end, PdVSA Chief Rafael Ramirez and company Vice President Eulogio del Pino told reporters.

South America's largest oil producer is expected to invest around $18 billion this year and is counting on major advances in its Orinoco projects, where much money will be needed to convert the region's tar-like heavy oil into a usable and exportable commodity.

President Hugo Chavez relies on revenue from vast oil reserves to fund the major social programs that have supported his popularity, especially among the country's poor.

Still, Venezuela has struggled to increase output during his 12 years in office, which critics have partly attributed to insufficient investment into the sector. According to its audited 2010 annual report published earlier this week, PdVSA invested just over $13 billion into various projects last year.

The company aims to raise it's total crude production levels to 4 million barrels daily by 2015, from around 2.7 million.

In recent months, PdVSA has been on the receiving end of some good news as the International Energy Agency revised its accounting method for Venezuelan oil production, leading to an increase in the agency's estimates. Also, earlier this month the Organization of Petroleum Exporting Countries reported that Venezuela's proven crude-oil reserves surpassed those of Saudi Arabia in 2010, making the South American country the holder of the world's largest oil reserves.

Still, questions remain over how and when the country will be able to secure the nearly $80 billion it expects to need for developing the Orinoco projects.

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

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ConocoPhillips Expands Presence in Niobrara Play

- ConocoPhillips Expands Presence in Niobrara Play

Friday, July 29, 2011
ConocoPhillips

ConocoPhillips has entered into an agreement to acquire up to 46,000 net acres of leasehold from Lario Oil & Gas Company in the Colorado counties of Arapahoe, Adams, Elbert and Douglas. This agreement represents a significant investment by ConocoPhillips in this area south and east of the greater Denver metroplex.

"ConocoPhillips is pleased to have this opportunity to participate in the emerging Niobrara exploration and development play," said Larry Archibald, senior vice president of Exploration and Business Development at ConocoPhillips. "Building on the strong relationships developed by Lario, we look forward to working with all local stakeholders as a first step in demonstrating our commitment to act as a steward of this region's natural resources."

ConocoPhillips will become operator of the acquired leases and will begin exploration efforts as soon as possible with the acquisition of a 3-D seismic survey and drilling of test wells. The company has a long track record of safe and environmentally prudent development of unconventional plays in North America and will leverage the knowledge and expertise it has gained in plays such as the San Juan Basin, Bakken, Barnett and Eagle Ford.

"Lario Oil & Gas Company is pleased to make this significant transaction with an industry leader such as ConocoPhillips," said Mike O'Shaughnessy, President/CEO of Lario. "As demonstrated by ConocoPhillips' safe and successful history of developing unconventional plays, the project will be operated with the greatest regard for the local residents and environment, and for the benefit of all parties concerned."

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Total Earnings Fall on Weaker Production, Refining Margins

- Total Earnings Fall on Weaker Production, Refining Margins

Friday, July 29, 2011
Dow Jones Newswires
LONDON
by Alexis Flynn

French oil major Total Friday posted a 6% drop in second-quarter adjusted net profit as higher crude oil prices and the integration of Novatek's production failed to offset lower overall output and weaker refining margins.

The company reported EUR2.79 billion in the closely-watched adjusted net profit figure, somewhat short of the EUR2.84 billion projected by analysts. That was also lower than last year's result of EUR2.96 billion.

The French oil giant also became the latest European oil major to report weaker year-on-year oil and gas production, with seasonal maintenance and the loss of Libyan crude some of the common themes to affect the sector.

Total shares were off .47, or 1.23%, to EUR37.89 at 753GMT, slightly weaker than the French CAC 40 index.

Still, even as Total Chief Executive Christophe de Margerie acknowledged the impact of weak refining margins and Libyan oil outages, he expressed confidence in light of strong oil prices due to geopolitical tensions and strong energy demand. The company announced it will pay a second-quarter interim dividend for the first time of EUR0.57 a share.

"With a strong balance sheet and dynamic pace of execution in all of the group's segments, Total begins the second half of 2011 very confident in its outlook for profitable growth to benefit all of its stakeholders," de Margerie said.

Total said the European refinery margin indicator averaged $16.3 per metric ton in the second quarter, down 48% from $31.2/ton a year earlier, even though the group had said in the previous quarter that the margin should improve following the start-up of the new deep-conversion unit at its Port Arthur refinery in the U.S.

Unadjusted net profit came in 12% lower at EUR2.72 billion from EUR3.10 billion in the same quarter of 2010.

The group's hydrocarbon output over the period dropped 2% to 2.31 million barrels of oil equivalent per day from 2.36 million of boe/d a year earlier. Analysts expected production to drop 2.4% to 2.30 million barrels per day.

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

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Oil & Gas Post - All News Report for Thursday, July 28, 2011

Thursday, July 28, 2011

• Commodity Corner: Oil Jumps on Fear of Don
• EPA Proposes First Federal Air Standards for 'Fracked' Wells
• EDITORIAL: W.Va. Should Welcome Marcellus Shale Action
• Gastar Tests Marcellus Wells in West Virginia
• Whiting Boosts 2Q Production in 2011, Ups Capex to $1.6B
• Laredo Reaches Record Production Levels in Eagle Ford Shale
• Cabot to Sell Assets in Rocky Mountain
• Total Depth Reached at Caza's Tx. Well
• Range Kicks Off Trinidad Well Program
• Range Drills Ahead at Georgia Well
• BP: N Sea Valhall Oil Platform Restart Not Seen Before Mid-Aug
• Nigeria, Iran Battle for OPEC's No.2 Position
• Statoil's 2Q Earnings Soar in 2011
• Talisman Touts 2Q11 Results
• Linn Energy Reported Q2 EPS Of $0.47
• Shell's 2Q Earnings Nearly Double to $8.7B
• Gulf Weather System Upgraded to Tropical Storm Don
• ExxonMobil Reports $10.7B in 2Q11, Up 41%
• Eni Makes Gas Discovery Offshore Indonesia
• Eni Hits Hydrocarbon Pay Offshore Ghana
• GDF Suez Takes ExxonMobil's Stake Offshore Norway
• Providence Concludes Seismic Acquisition Offshore Ireland
• Northern Notes Reserves at Southern Adriatic Permits
• Noble Energy Sees 44% Increase in 2Q Profits

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