US CFTC fines energy traders
The U.S. Commodity Futures Trading Commission ordered TOTSA TotalEnergies Trading SA on August 27 to pay a fine of $48 million for alleged gasoline price manipulation. Ian McGinley, CFTC Director of Enforcement, said that the CFTC had "guarded the integrity of the market in numerous cases during the past 20 years" by detecting these benchmark-related scheme and prosecuting them. The U.S. regulator has fined several companies for what they call oil and gas market malpractice. Here are some examples. The CFTC fined TOTSA $48 million in March 2018 for attempted market manipulation.
Exxon Secures Lead in top US Oilfield with $60B Buy of Shale Rival Pioneer
Exxon Mobil agreed to buy U.S. rival Pioneer Natural Resources in an all-stock deal valued at $59.5 billion that would make it the biggest producer in the largest U.S. oilfield and secure a decade of low-cost production.The deal, valued at $253 a share, combines the largest U.S. oil company with one of the most successful names to emerge from the shale revolution that turned the U.S. into the world's largest oil producer in little more than a decade.Exxon Chief Executive Darren Woods…
Energean Seeks to Pipe Karish Gas to Cyprus
Energean Oil & Gas said on Tuesday its Energean International unit submitted an application to import and supply natural gas to Cyprus starting in 2021.In its application to Cypriot authorities, it said it sought to supply gas through a pipeline from the Karish block offshore Israel to Vassiliko, Cyprus.The pipeline would be 215 kilometers long and transport natural gas from the Karish North field, which contains 25 billion cubic meters of discovered recoverable resources.Total investment, Energean said, will be about $350 million and will be funded by Energean.
China-led Consortium Bids for Cyprus LNG
The Natural Gas Public Company of Cyprus (DEFA) announced that a Chinese-led consortium has been chosen as the preferred bidder for the construction of a EUR 250 million liquified natural gas (LNG) import terminal and related infrastructure.The authorities announced that the consortium of JV China Petroleum Pipeline Engineering Co Ltd, AKTOR S.A. and METRON S.A., with Hudong-Zhonghua Shipbuilding Co. Ltd and Wilhelmsen Ship Management Limited has emerged as the preferred bidder in a…
Petrobras to Sell Natural Gas Assets
Brazilian state-owned oil firm Petroleo Brasileiro SA has reached an agreement with anti-trust regulator Cade to sell off a series of natural gas transportation and distribution assets, the company said in an exchange filing on Monday.Petrobras, as the company is commonly known, said it had pledged to sell stakes in pipeline networks including a 10% stake in Nova Transportadora do Sudeste (NTS) SA, 10% in Transportadora Associada de Gas (TAG) SA and 51% in Transportadora Brasileira Gasoduto Bolivia-Brasil (TBG) SA.It would also sell its indirect ownership in distribution companies, possibly by selling i
LNG Rates Hit Record in 4Q: Flex LNG
During the fourth quarter ended December 31, 2018, spot LNG rates reached record levels as market players were positioning themselves ahead of the winter season, said Flex LNG.According to the UK-based provider of LNG Shipping with a focus on LNG Carriers and FSRUs (Floating Storage Regasification Units), due to a combination of higher temperatures meaning fewer heating days, liquidation of approximately 30 vessels utilized for floating storage the freight rates for LNG has slumped during…
Gazprom, Mitsui Discuss LNG Cooperation
Japanese trading house and liquefied natural gas market participant Mitsui has held talks with Russia’s giant Gazprom on cooperation in liquefied natural gas (LNG) projects.A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Masami Iijima, Chairman of the Board of Directors of Mitsui & Co., Ltd., took place in Moscow.They discussed about the progress made in two Russian plans to expand LNG output, on the existing Sakhalin Island plant in the Far…
PGNIG to Drill Well in Norway
Polish Oil and Gas Company (PGNiG) said that PGNiG Upstream Norway AS has acquired a detailed 2D seismic image, which will facilitate the selection of a drilling location in the Shrek prospect within the PL838 licence area.The Polish natural gas market company said that it will be the first well drilled by the PGNiG Group as a licence operator on the Norwegian Continental Shelf."On the Shrek prospect, PGNiG will exploit its E&P know-how and experience in the new role as the operator of a licence in the Norwegian Sea.
IEA Calls for Enhancing Global Natural Gas Security
The evolution of the global natural gas market, which has been driven by the growth in liquefied natural gas (LNG) demand, continues to change the relationship between buyers and sellers, and raises new challenges for the global security of energy supplies.Global natural gas markets are being reshaped by the development of major emerging LNG buyers led by China, and the rising production and exports from the United States. The third annual edition of the International Energy Agency’s…
Equinor Buys 25% Stake in Brazil’s Roncador Oil Field
Equinor and Petrobras have completed their transaction announced in December 2017, whereby Equinor has acquired a 25 percent non-operated interest in the Roncador oil field in Brazil’s Campos Basin. This follows all transaction conditions being met, including government and regulator approval.Reflecting equity volumes produced since the effective date of January 1, 2018 and the deposit paid upon the signing of the transaction, Equinor has paid Petrobras an adjusted cash consideration of $2 billion.
Next-wave LNG Terminals get Smaller, More Flexible
The liquefied natural gas market is growing every year, but the terminals that ship and receive the fuel are shrinking. The booming sector's next-generation infrastructure is being designed for a emerging-market buyers that want smaller volumes on shorter, more flexible contracts. LNG export terminals, where the gas is liquefied and put on vessels for shipping, have traditionally been massive, custom-built facilities that cost tens of billions of dollars. And so to justify the investment, they have typically required equally massive, long-term supply deals, often lasting a decade or more.
Why Canada is the Next Frontier for Shale Oil
The revolution in U.S. shale oil has battered Canada's energy industry in recent years, ending two decades of rapid expansion and job creation in the nation's vast oil sands. Now Canada is looking to its own shale fields to repair the economic damage. Canadian producers and global oil majors are increasingly exploring the Duvernay and Montney formations, which they say could rival the most prolific U.S. shale fields. Canada is the first country outside the United States to see large-scale development of shale resources, which already account for 8 percent of total Canadian oil output.
Statoil Acquires 25% Stake in Brazil's Roncador
Statoil ASA and Petróleo Brasileiro S.A. (Petrobras) have agreed that Statoil will acquire a 25 percent interest in Roncador, a large oil field in the Campos Basin in Brazil. The transaction nearly triples Statoil’s production in Brazil, with attractive break-evens and potential for additional value creation for both parties through the application of Statoil’s expertise in improved oil recovery (IOR). The total consideration comprises an initial payment of $2.35 billion, plus additional contingent payments of up to $550 million.
Big Gas Exporter Nations Blast Unilateral Sanctions in US Dig
Representatives from a group of major energy-exporting nations on Friday said they oppose the use of unilateral sanctions on any of their members - an apparent dig at the United States for its moves against Russia, Iran and Venezuela. The Gas Exporting Countries Forum, which also includes members like Libya, Equatorial Guinea and Nigeria, expressed their "profound concern" about sanctions affecting the gas sector that are not authorized by the United Nations, according to a communique signed by GECF's 12 members after the group's summit in Bolivia this week. The U.S.
U.S. Gas Rebalances as Power Returns to Coal
The U.S. natural gas market has rebalanced with higher prices steadying production while reducing demand from electricity generators and making room for increased exports. Higher prices have averted the stock crunch many analysts feared in 2017 as a result of rising exports and the start up of a large number of new gas-fired combined cycle power plants. During the first six months of 2017, prices for next-month delivery at Henry Hub were almost $1 per million British thermal units or 46 percent higher than in the first half of 2016.
Europe to be Natural Gas Kingmaker
It's probably not quite here yet, but the trend is unmistakeable; the world is moving to a globally-linked natural gas market and the rise of liquefied natural gas (LNG) is the key driver. Much of the increase in LNG capacity is because of the rapid boost to plants in Australia and the United States, as both countries take advantage of abundant local reserves of natural gas to muscle in on a market that until recently had been dominated by a few established producers and buyers. But it is perhaps ironic that while the action on the capacity side of LNG is an Australian and American story…
Australia Gas Export Restrictions Counterproductive
When governments adopt new policies the benchmark for success should be that the change works, is efficient and fair to all parties and does not create unintended consequences. The decision by the Australian government to restrict exports of natural gas if the domestic market is constrained meets none of these criteria, although it may just persuade an increasingly angry public that the authorities are doing something. Whether the new policy does serve some short-term political objective…
IEA for Enhancing Global Gas Security
While the rise of the liquefied natural gas market has accelerated the globalization of natural gas, the energy security implications of this transformation have attracted much less attention. Through an extensive analysis of global gas data, a new report from the International Energy Agency seeks to provide more transparency into the LNG market. There is no doubt that global gas markets are well supplied today. While this is positive for global gas security, the new analysis from the first Global Gas Security Review…
Statoil Aims for at Least 10% of Coming Brazil Gas Market
Norwegian oil company Statoil ASA hopes to have 10 to 15 percent of Brazil's natural gas market in coming years, Pal Eitrheim, the company's most senior executive in the country, told journalists on Wednesday. Eitrheim added that major gas production in Brazil is likely to start after 2020. (Reporting by Jeb Blount; Editing by Ana Mano and Alistair Bell)
Sembcorp Marine Swings to Loss in Q3
Singapore's Sembcorp Marine Ltd swung to a loss in the third quarter and the rig builder's revenue was hurt by customers deferring rig deliveries amid a protracted downturn in the oil and natural gas market. The company posted a net loss of S$21.8 million ($15.7 million) for the three months ended Sept. 30, compared with a net profit of S$32.1 million a year ago. It said the bottomline was hurt by higher financing costs, share of losses from associates and foreign exchange impact. The company, majority-owned by industrial conglomerate Sembcorp Industries Ltd, said revenue dropped 21 percent.
