Saudi Aramco, Chevron Chiefs See Global Oil Demand Recovery
Global oil demand is recovering and could return to around pre-pandemic levels next year, the chief executive of Saudi Aramco told an oil and gas conference on Tuesday.Global demand for oil is likely to recover from the second half of the year and could reach 99 million barrels per day (bpd) in 2022, Amin Nasser said at IHS Markit's online CERAWeek conference.Diesel demand has recovered globally due to door-to-door deliveries, though jet fuel lags as people avoid long flights, said Chevron CEO Michael Wirth, who spoke on a panel with Nasser.Oil demand improving in China, India and East Asia, with vaccine deployment as "cause for optimism" in the West, Nasser said.(Re
Oil Is Our Gold and We Aim to Use All of It -ADNOC
Abu Dhabi National Oil Co aims to exhaust its vast oil and gas reserves even as many consumers switch to cleaner sources of energy, a senior executive in the Gulf oil company said.The world's transition away from fossil fuel in an effort to slash greenhouse gas emissions is expected to accelerate in coming decades, leaving many oil companies and producing nations pondering their long-term future.But for state-run ADNOC, the main oil-producing company in the United Arab Emirates, which supplies nearly 3% of global oil demand, crude is set to remain the revenue backbone…
NNPC Says Shell, ExxonMobil Also Looking at Crude Swaps
Nigeria's state oil firm NNPC could sign crude-for-product deals with Shell and ExxonMobil, similar to one signed with BP last week, a senior NNPC official said on Monday.Nigerian National Petroleum Corporation (NNPC) announced last Wednesday that it had signed such a deal with BP and would provide more details later."Unfortunately, Shell and ExxonMobil exited the downstream sector in Nigeria a couple of years ago but they are coming back for this particular arrangement, because it’s an opportunity for them to get crude and sell their products to the refineries…
Expected LNG Surplus Evaporates, New Projects Looming
Liquefied natural gas (LNG) producers around the globe are once again considering new investments as expectations of a glut in supply wither away in the face of strong, China-led demand growth in Asia. Given it takes several years to go from a Final Investment Decision (FID) to producing cargoes of the super-chilled fuel, however, the industry may be acting too late to prevent a supply shortfall by the middle of next decade. Much of the focus this week at an annual oil and gas conference in Australia - which is about to become the world's top exporter of LNG - was on what projects are viable and how quickly can they be developed.
Lebanon Prepares for Second Offshore Oil and Gas Licensing Round
Lebanon's energy minister said on Tuesday he had asked the country's petroleum authority to start preparing for a second oil and gas offshore licensing round, but did not give a timeline for when it might happen.Lebanon in February signed its first offshore energy exploration and production agreements for two of Lebanon's 10 offshore blocks with a consortium of France's Total, Italy's Eni and Russia's Novatek.Energy and Water Minister Cesar Abi Khalil told an oil and gas conference in Beirut on Tuesday that he had asked the Lebanese Petroleum Administration (LPA) last week to begin preparations for a second round."This is not the launch of the licensing round but the
Libya's NOC to Stage Oil and Gas Conference in Benghazi
Libya's state oil company National Oil Corp (NOC) will hold a conference in the eastern city of Benghazi in October to discuss the country's oil and gas sector, it said on Thursday. Domestic and foreign oil companies would participate to discuss the sector's development, NOC said in a statement on its website without naming any companies involved. The event will take place Oct. 9-11. Security has improved in Benghazi since forces allied to the eastern-based government declared victory over Islamist fighters last year, though two suicide bombings struck the port city recently. Reporting by Aidan Lewis and Ahmed Elumami Writing by Ulf Laessing
Eni CEO says Mexico Oil Find Likely Bigger
Italy's Eni said on Wednesday it expected that its recent discovery off the coast of Mexico would hold more than the 800 million barrels of oil it originally estimated. "This is an important find and we've found new layers of good light oil that make us think there's more," Chief Executive Claudio Descalzi said at an oil and gas conference. Eni said earlier this month it had found "meaningful" reserves of oil off the coast of Mexico after becoming the first international oil company to drill a well in the country after a 2013 reform opening up the sector to investors.
Eni: 800 mln bbls in Offshore Mexico find
The head of Italian oil and gas group Eni said on Wednesday there could be more than 800 million barrels of oil in place in its recent discovery off the coast of Mexico. "Our aim is to do what we did in Zohr in Egypt," Claudio Descalzi said at an oil and gas conference, referring to the group's strategy of using infrastructure already in place in different geographies to speed up time to market. Earlier this month the major said it had found "meaningful" reserves of oil offshore Mexico after becoming the first international oil company to drill a well in the country following a 2013 reform to open up the sector to investors.
Total to Resume South African Offshore Drilling
French oil major Total is expected to resume drilling offshore South Africa in the second half of 2016, part of a broader campaign to explore in Africa, a senior official said on Wednesday. Total last year stopped drilling off the southern coast of South Africa after experiencing mechanical problems with its rig during high winds and rough seas in the Outeniqua Basin, about 175 km (109 miles) off the southern coast of South Africa. "Our plan is to drill next year but only if those conditions are met. I think it is better to think second half than first half…
Glencore's Hayward: OPEC's Strategy is 'Rational'
Oil cartel OPEC's decision to defend market share to counter a U.S. shale boom was "completely rational" and a sustained period of low prices was on the cards, Glencore's Chairman Tony Hayward said on Tuesday. Hayward said low prices had stimulated demand - expected this year to be 2 million barrels a day of incremental increases over 2014 - but Iran and Libya were wild cards that could affect global supply and demand dynamics. "I think we do need to be prepared for a period of sustained low prices absent any form of intervention," he told an African oil and gas conference in Cape Town. Reporting by Wendell Roelf and Ed Stoddard
Kashagan Targets 2017 Oil Exports
Companies developing the giant Kashagan oil field in Kazakhstan plan to export 12-14 million tonnes of oil in 2017 after launching commercial output, the chief executive of Kazakh oil pipeline firm KazTransOil said on Wednesday. Operations at the field, expected to eventually reach production of 400,000 barrels per day of oil equivalent, started in September 2013 and were halted a month later due to gas leaks from the sour gas pipeline. They will restart after pipeline replacement. KazTransOil Chief Executive Kairgeldy Kabyldin told an oil and gas conference in Kazakhstan that Kashagan shareholders…
Eni's Winning Streak Leaves Gas Rivals Chafing
Eni Zohr gas find biggest ever in Mediterranean, success due to different geology approach - CEO. Eni's giant Zohr gas find in Egypt this month, a gamble taken under the noses of competitors, marked the Italian major's rapid rise to preeminence in the hunt for big new fields. Its risk-taking new leadership went ahead with what rivals described as an opportunistic drilling plan, leaving peers BP , BG, Royal Dutch Shell and Total regretting they missed a golden opportunity. Zohr is Eni's fifth major oil and gas discovery in just 3 years giving it the best track record in reserve replacement as well as one of the lowest cost bases.
Uganda Could Pick Tanzania Over Kenya for Oil Pipeline
Uganda's government is still considering a pipeline through Tanzania to export oil if it proved cheaper than alternatives, an official said on Wednesday, even though the Ugandan president indicated last month that a route through Kenya had been picked. Ugandan President Yoweri Museveni and Kenya's Uhuru Kenyatta made a joint call in August to implement a pipeline project via north Kenya "without further delay", a decision seen as helping investors to decide on oilfield development in both states. But France's Total, an investor in Uganda, raised new uncertainty about that route on Tuesday, saying it was looking at a possible Tanzanian option.
Syncrude Oil Sands Project Losing $6 On Every Barrel
Canada's largest synthetic crude project, Syncrude Canada Ltd, is losing roughly $6 on every barrel it produces at current prices, a company presentation showed on Wednesday, a stark sign of the pain being felt by oil sands operators. Even so, Canadian Oil Sands Ltd, the largest-interest owner in the Syncrude joint venture, said shutting in production is not something the company would consider given the high costs involved. Syncrude is a 326,000 barrel per day mining and upgrading project in northern Alberta, at which mined oil sands bitumen is upgraded into refinery-ready synthetic crude.
Spike Seen in African Offshore Disputes, Oil Companies Watching
African maritime boundary disputes are expected to rise dramatically, potentially curbing exploration and creating uncertainty in ownership over tens of billions of barrels of oil, industry experts say. A lack of maritime boundary agreements, which has not kept pace as more oil companies moved offshore into deeper waters, has seen many African nations struggling to enforce their sovereign rights under the 1982 Law of Sea treaty. In the past four months, two matters involving Kenya and Somalia and, more recently, Ghana and Ivory Coast have been referred for arbitration, alarming oil companies such as Tullow Oil who have been inadvertently caught in the fallout.
Repairs Halt Total's S.African Ops; Resumption not Prior 2016
S.Africa wants 30 wells drilled in next 10 years; Total woes a setback to S.Africa exploration drive. French energy major Total has halted oil exploration off the southern coast of Africa due to mechanical problems with a rig, meaning it will not be able to resume searching in the area before 2016, a company official said on Tuesday. The news is a huge setback to South Africa's plans to have 30 exploration wells drilled in the next 10 years as the continent's most advanced economy strives to reduce its heavy reliance on imported oil. "Offshore repair was not possible…
Myanmar to Auction Oil and Gas Blocks for Exploration Next Year
Myanmar will auction nine offshore oil and gas blocks for exploration next year, an official from state-owned Myanmar Oil and Gas Enterprise (MOGE) said on Tuesday. Four shallow and five deep water blocks will be available and 65 percent of the shallow blocks have proven hydrocarbons while the deep water blocks are unproven, said Than Tun, director (offshore) of MOGE. MOGE has done some exploration but did not have the right technology to assess how much oil there is, Than Tun said. "There is a good chance for big discoveries in the future," he told reporters on the sidelines of an oil and gas conference organised by CWC Group in Myanmar's commercial capital, Yangon.
Statoil to Hold Back US Shale Ramp Up
Norwegian energy firm Statoil will only slightly raise its U.S. shale oil and gas output in the near term due to spending curbs, well below a potential for a 50 percent surge, the firm said on Monday. Statoil, which produces around a tenth of its oil and gas from its U.S. shale operations in the Bakken, Eagle Ford and Marcellus formations, has even cut back investments in the area, as shale projects are competing for capital within the company, said Torstein Hole, Statoil's chief for U.S. onshore activities. Statoil abandoned its 2020 production target earlier this year and cut its capital spending budget…
Smaller Firms Will Lead East Africa's Oil and Gas Development
Smaller oil explorers willing to take financial and operational risks will lead the development of East Africa's oil and gas industry as majors ditch riskier projects as margins fall, executives from several oil and gas firms said on Tuesday. The region has emerged as a significant prospect for the export of liquefied natural gas (LNG) because of the size of natural gas discoveries there and its proximity to Asia's major LNG consumers. The U.S. Geological Survey has estimated that more gas lies off the shores of Kenya, Tanzania and Mozambique than off Nigeria, Africa's biggest energy producer.
