Oil Majors Spending 'Sweet Spot' to Last to 2020
Big Oil is today in a spending sweet spot as years of cost cuts and rising oil prices converge but investments will need to rise after 2020 to boost output, BlackRock, the world's largest asset manager, said on Tuesday.Oil and gas giants such as Royal Dutch Shell, Chevron and BP are generating as much cash at today's oil prices of around $70 a barrel as they did in 2014, before crude spiraled down from over $100 a barrel to lows of below $30 a barrel.As they emerge from the deepest downturn in decades…
China Harbour Engineering to Build Berri Field in Saudi Arabia
Saudi Arabian oil giant Saudi Aramco has awarded a contract to China Harbour Engineering Arabia for the construction of two drilling islands under the company’s Berri Increment Program (BIP).The objective of the BIP is to produce an additional 250,000 barrels per day of Arabian Light crude oil from the Berri Oil Field to reach 500,000 barrels per day to maintain Saudi Aramco’s maximum sustained capacity by early 2023.A signing ceremony to mark the contract award was held in Dhahran. Signing on behalf of Saudi Aramco was its Vice President of Project Management…
Genel Energy Finalises Miran, Bina Bawi Field Documentation
Genel Energy plc has finalised documentation of previously agreed terms of Amended and Restated Production Sharing Contracts ('PSC's) and Gas Lifting Agreements ('GLA's) for both the Miran and Bina Bawi gas fields. The Amended and Restated PSCs and GLAs for Miran and Bina Bawi incorporate the commercial terms as announced in the term sheets signed in 2015 by Genel and the Kurdistan Regional Government ('KRG') and reiterated in the Appendix below. With the PSC and GLA terms formally confirmed, Genel will now be able to progress the project.
BP Fast-tracks Development of Atoll Discovery
BP announced today that together with the Egyptian Natural Gas Holding Company (EGAS), it has sanctioned development of the Atoll Phase One project which is an early production scheme that will bring up to 300 million cubic feet a day (mmscfd) gross of gas to the Egyptian domestic gas market starting in the first half of 2018. BP has a 100% interest in the concession. Hesham Mekawi, Regional President, BP North Africa commented: “BP is proud to progress the acceleration of the Atoll project which will bring critical gas to the Egyptian market and establish a new material hub offshore East Nile Delta.
Marathon's MLP to Acquire MarkWest Energy
Marathon Petroleum Corp's master limited partnership (MLP), MPLX LP, will acquire MarkWest Energy Partners LP for about $15.63 billion to add natural gas processing facilities to its portfolio. The deal is expected to create the fourth-largest MLP, based on a market value of $21 billion, the companies said on Monday. MLPs, under pressure to keep growing dividends to investors, are increasingly consolidating. The deal comes less than a month after Energy Transfer Equity's unsolicited $48 billion offer for Williams Cos Inc. Marathon Petroleum will contribute $675 million to fund the cash component of the deal.
Whiting Looks to Shed Assets to Avoid Full Sale
Whiting Petroleum Corp, North Dakota's largest oil producer, has put Texas acreage and pipeline assets up for sale as an alternative to a sale of the full company, according to sources familiar with the matter. This strategy could appease investors outraged by the possibility of any outright sale. It would dispose of assets not central to the core shale operations and generate cash for the company's balance sheet, engulfed by more than $3 billion in debt after December's buyout of smaller rival Kodiak Oil & Gas. JPMorgan has shopped the full company in recent days to select parties, several people said.
Tecnicas Reunidas Signs $700m Gas Deal in Abu Dhabi
Spain's Tecnicas Reunidas said on Tuesday it had signed a $700 million contract with Abu Dhabi Gas Industries to expand gas processing facilities. The 40 month contract is the company's fourth large-scale contract in Abu Dhabi, the engineering group said. (Reporting By Sonya Dowsett; editing by Sarah Morris)
Gazprom Boosting Gas Industry in Eastern Russia
The Gazprom Management Committee addressed the Company's large-scale efforts aimed at implementing the Eastern Gas Program. It was noted that the gas industry growth in Russia's East was strategically important for the socioeconomic development of eastern regions. The Company is active in expanding its resource base in eastern Russia as well as putting in place its gas production, transmission and processing capacities. A long-term balance plan for Gazprom's natural gas from the Irkutsk and Yakutia…
Veresen Buys Stake in Ruby Pipeline
Veresen Inc said it would buy Global Infrastructure Partners's 50 percent convertible preferred interest in Ruby pipeline system for $1.43 billion. The company, which operates pipelines and gas-processing facilities, said the pipeline has a capacity of about 1.5 billion cubic feet per day (bcf/d), with a potential to expand to 2 bcf/d. El Paso Pipeline Partners, a unit of Kinder Morgan Inc , holds the remaining 50 percent interest in the pipeline, which delivers U.S. Rockies natural gas to markets in the western United States, through a common equity interest.
Algerian Reggane Nord Gas Project entering execution phase
A project consortium that includes RWE Dea has signed a major contract for the construction of a natural gas processing plant and infrastructure in the Algerian Sahara for the Reggane Nord project. The contract is valued at US$976 million and represents an important step forward for the project. Representatives of the Groupement Reggane of which RWE Dea is a partner signed the contract to construct the natural gas processing facilities and corresponding infrastructure including the gathering network and export pipeline on Thursday.
Ziff Energy, GPMi Launch LNG Study
Ziff Energy and Gas Processing Management Inc. analyze the gas growth areas of the Western Canadian Sedimentary Basin in Alberta and British Columbia. Ziff Energy, a division of HSB Solomon Associates LLC (Solomon), and Gas Processing Management Inc. (GPMi) announced the launch of the Gas West for LNG Growth Study, which analyzes the gas growth areas of the Western Canadian Sedimentary Basin in Alberta and British Columbia as key suppliers of natural gas to the developing liquefied natural gas (LNG) facilities on the West Coast of British Columbia (Canada) and Oregon (United States).
