Total Overtakes Shell in North Sea Production
Majors still control three quarter of output; even after $10 bln of deals, private equity still plays only modest role. French oil major Total has overtaken rival Royal Dutch Shell to become the second-largest producer in the North Sea with its acquisition of Maersk's Norwegian and UK producing assets. The $7.45 billion deal by Total was welcomed by the market, with analysts saying it helped the French company rebalance its portfolio by adding assets in developed countries after going for projects in riskier places such as Iran and Russia.
Oil Rises as Falling U.S. Inventories
U.S. crude stocks fell sharply last week; Venezuela risk adds bullish tone. Oil prices firmed on Wednesday, holding near eight-week highs, as a fall in U.S. inventories bolstered expectations that the long-oversupplied market was moving toward balance. Brent crude futures rose 30 cents to $50.50 a barrel by 0959 GMT, after rallying more than 3 percent on Tuesday. U.S. West Texas Intermediate futures climbed 40 cents to $48.29 a barrel. U.S. crude stockpiles fell sharply last week as refineries boosted output, while gasoline inventories increased and distillate stocks decreased, data from industry group the American Petroleum Institute showed on Tuesday.
Hess Losses Grow as Production Dives
Oil producer Hess Corp reported a bigger loss in the second quarter as the company produced fewer barrels of oil due to a cutback in drilling. The company said losses in the exploration and production (E&P) unit - its biggest - climbed to $354 million in the second quarter ended June 30, from $328 million a year earlier. Net production, excluding Libya, fell to 294,000 barrels of oil equivalent per day (boepd) from 313,000 boepd. Hess cut its 2017 E&P capex to $2.15 billion from its previous guidance of $2.25 billion. Like many of its peers…
Anadarko is First U.S. Producer to Slash 2017 CapEx
U.S. oil producer Anadarko Petroleum Corp posted a larger-than-expected quarterly loss on Monday and said it would cut its 2017 capital budget by $300 million because of depressed oil prices, the first major U.S. oil producer to do so. Anadarko and the rest of the U.S. shale oil industry have been grappling with how to conserve cash and maintain growth opportunities even as crude prices have slumped since January. Many Wall Street analysts had asked U.S. producers to consider cutting budgets, and it was unclear which company would do so first. Anadarko, the first major U.S. producer to report quarterly results, ended that guessing game. Several U.S.
Anadarko Quarterly Loss Shrinks; Capex Slashed for 2017
U.S. oil producer Anadarko Petroleum Corp on Monday said its quarterly loss shrank and that it would cut its 2017 capital budget by $300 million because of depressed oil prices. The company posted a loss of $415 million, or 76 cents per share, compared to $692 million, or $1.36 per share, in the year-ago period. Average daily sales volumes, the physical amount of crude and natural gas sold, fell 20 percent to 631,000 barrels of oil equivalent per day. (Reporting by Ernest Scheyder; editing by Grant McCool)
Cenovus Facing Tough Market for Critical Asset Sales
Cenovus Energy Inc's efforts to sell C$5 billion ($3.8 billion) of energy assets, already facing a rocky road because weak oil prices are depressing the appetite for deals, has become complicated by the surprise departure of its chief executive officer, fund managers said. Brian Ferguson's announcement on Tuesday that he will step down as CEO in October is the latest sign of tumult within Canada's oil sands industry, which has seen international oil majors dump $22.5 billion in assets this year alone. It follows Cenovus' unpopular…
OPEC: Oil Stocks Need to Fall Further
OPEC Secretary General Mohammad Barkindo said on Thursday that a global oil inventory overhang was declining but oil stocks still needed to fall closer to the five-year industry average. "While it is evident that the market rebalancing is now moving forward and investment specifically in short-cycle projects is returning, it is essential we do not take our eyes off our desired goals," he told a conference in Paris. "We need to see the global stock overhang move closer to its five-year average. The International Energy Agency said…
Petronas Says RAPID Project on Track for 2019 Start-Up
Malaysia's state oil firm Petroliam Nasional Berhad said on Thursday its new $27 billion refining and petrochemical complex project in the southeast Asian country is on track for start-up in 2019. Sources familiar with the matter told Reuters on Wednesday that Saudi Aramco had shelved its plans for a partnership with the company, known as Petronas, on the Refinery and Petrochemical Integrated Development (RAPID) project, raising questions about its future. RAPID, located within the Pengerang Integrated Complex in the southern Malaysian state of Johor…
Ecoslops H1 Activity Backs Business Plan and Technology
Ecoslops today announced its results for the first half of the year to June 30, 2016, as approved by the Board at its meeting of September 21, 2016. Vincent Favier, CEO of ECOSLOPS, says: “This first full half-year of activity on our Sines site has fully backed our business plan, validated our P2R technology, and our ability to be profitable when the plant’s production reaches 30,000 tons a year, even in an environment of depressed oil prices. During the first half of 2016, Ecoslops recorded a substantial 70% increase in operating income compared with the same period last year.
Connacher Files for Creditor Protection
Junior oil sands producer Connacher Oil and Gas Ltd filed for protection from creditors at an Alberta court on Monday, making it the latest Canadian victim of the two-year slump in global crude prices. The Calgary-based company said depressed oil prices and difficulties accessing capital markets had prompted directors to seek protection under the Companies' Creditors Arrangement Act (CCAA). CCAA is an insolvency law in Canada that allows companies to restructure their finances and stay in business. Connacher temporarily cut production at its Great Divide oil sands project in northern Alberta earlier in the first quarter of this year to around 3…
U.S. Regional Banks Brace for Energy Loan Losses
The five U.S. regional banks most exposed to the energy sector set aside millions of dollars more in the first quarter to cover potential losses from bad loans to the struggling oil industry. Overall, provisions for bad loans at Comerica Inc, Regions Financial Corp, KeyCorp, SunTrust Banks Inc and Fifth Third Bancorp more than doubled to $570 million in the period from $222 million a year earlier. "The low oil price environment continues to pressure our energy clients, which contributed to the increase in non-performing loans, our reserves and provision expense…
Nuverra Turns to Lazard for Debt Restructuring
Nuverra Environmental Solutions Inc , a U.S. provider of environmental services to the energy sector, has been working with investment bank Lazard Ltd on restructuring its debt, according to people familiar with the matter. Nuverra has been looking at several financial restructuring options, including a potential debt exchange, the people said this week, asking not to be identified because the deliberations are confidential. Nuverra and Lazard declined to comment. Scottsdale, Arizona-based Nuverra has been weighed down by debt that totaled $520 million as of Sept. 30.
Oil Drop may Weigh on Markets; Saudi Traders Eye Budget
Middle East stock markets may slip on Sunday following a renewed drop in oil prices after OPEC opted to maintain production at near record highs. Brent crude dropped 2 percent on Friday to $43 per barrel after an OPEC policy meeting in Vienna failed to agree on a new production quota, allowing member countries to continue pumping more than 31 million barrels per day of oil, further swelling a global glut that has depressed oil prices for over a year. "Oil prices are near the lows that were tested in the summer and any break below these levels will trigger negative sentiment and ignite a new wave of selling (of Saudi Arabia stocks)…
Total's CEO: Opportunities in Low Oil Price Environment
The current low oil price environment is an opportunity for oil and gas major Total to realign its costs, drive efficiency in upstream operations and rediscuss tax issues with host producing nations, its chief executive told investors. Patrick Pouyanne spoke with investors in Geneva on Friday, Raymond James Europe Research said in its note. "As regards mergers and acquisition (M&A) opportunities, the group is keen on capitalizing on its strength (Africa, Middle East, North Sea, Deepwater, LNG) rather than looking for U.S. shale oil opportunities," the note said.
