Senegal establishes commission to review oil contracts
On Monday, Senegal's Prime Minister Ousmane sonko announced that the country had set up a panel of experts in legal, tax and energy sectors to review oil and gas contracts, and to work on rebalancing them to serve national interests. After assuming office, President Bassirou Diomaye Faye - who had defeated the candidate of the ruling coalition in a landslide win in March - ordered an audit of oil, gas, and mining sectors and promised to renegotiate contract terms with foreign operators if necessary. Authorities haven't shared any details about the audit, or provided updates on any renegotiation plan.
Majors Press Mexico to Resume Oil Auctions
Big oil companies operating in Mexico have launched a drive to convince leftist President Andres Manuel Lopez Obrador to resume auctions of oil and gas contracts he has branded a failure in reviving the industry.Chevron Corp, Exxon Mobil Corp and Royal Dutch Shell Plc, among other firms in Mexico's Association of Hydrocarbon Companies (Amexhi), say they have met output targets and investment pledges worth hundreds of millions of dollars in the initial phases of their contracts."We've been complying (with contractual obligations), and by any metric you look at…
Indonesia Mulls Production Contract Schemes
Indonesia considers allowing for production sharing oil and gas contracts optionsIndonesia is considering letting energy companies stick with the "cost recovery" system for oil and gas production sharing contracts, the energy minister said on Monday, after the government decided to adopt a new scheme in 2017.In 2017, Indonesia adopted a scheme known as "gross split" for oil and gas production deals, applicable to new contracts, so that contractors shoulder the cost of exploration and production in exchange for retaining a bigger portion of…
Equinor to be ‘Offshore Wind Major’
The multi-billion capital investment by Equinor at its new Dogger Bank Offshore Wind Farm will see it rival its major oil and gas projects, according to Rystad Energy."The offshore wind project Dogger Bank in the UK North Sea will not only be Equinor’s largest project through 2026, it will also rank as the sixth largest offshore development project in the world during this period," said the energy research firm.UK authorities announced on Friday that Equinor and joint venture partner SSE have been chosen to develop the world’s largest offshore wind farm…
Eni to Invest $1.8 Bln in Offshore Mexican Oil Fields by 2040
Italian oil major expects to invest $1.795 billion in three offshore Mexican oil fields by 2040, according to a development plan approved by Mexico's oil regulator on Tuesday.The plan covering the Amoca, Mizton and Tecoalli shallow water fields is the second one approved by the regulator, known as the National Hydrocarbons Commission (CNH), following a landmark 2013 energy opening that has led to more than 100 oil and gas contracts being awarded in a series of auctions.Eni sees initial crude oil production of 8,000 barrels per day (bpd) in early 2019 from its Amoca and Mizton fields…
Mexican President Defends Energy Reform from Leftist Attacks
Mexico's president on Thursday defended his decision to open the energy sector against attacks from the man currently favorite to succeed him, saying a rollback of the measure could cost the country billions of dollars in lost investment. The 2013-14 legislative overhaul that ended state oil firm Pemex's decades-long monopoly was the centerpiece of President Enrique Pena Nieto's economic agenda, and leftist Andres Manuel Lopez Obrador, who is leading polls for the July 1 presidential election, has threatened to unpick it. Speaking in the oil-rich state of Veracruz…
Exxon Mobile Interested in Working in Algeria, Sonatrach CEO says
U.S. oil major Exxon Mobil Corp has shown an interest in working in Algeria, the head of state energy firm Sonatrach said on Tuesday. "It is important to highlight that a big major Exxon Mobil has shown an interest to come to Algeria," Abdelmoumen Ould Kaddour told reporters, without giving further details. He also said he had resolved 80 percent of the state firm's disputes with foreign firms, while Sonatrach had been able to fulfil gas supply contracts with Europe this winter despite rising domestic demand. Kaddour, a U.S.-trained engineer…
Sonatrach Plans Closer Ties with Total on Energy Projects
Algerian state energy firm Sonatrach and Total are planning to work more closely together on offshore, petrochemical, solar energy and shale exploration projects, Sonatrach's CEO said on Wednesday. The CEO's comments signal a new chapter for the companies' efforts to cooperate on energy projects and show they have put behind them past disputes, including one in the mid-2000s over profit-sharing on oil and gas contracts. "Our relation with Total is good now. We will do a lot together including in shale, solar and offshore. We are also into petrochemicals," Sonatrach CEO Ould Kaddour told reporters.
Total Signs Deal with Sonatrach and Settles Disputes
Algerian state-owned energy company Sonatrach and French oil major Total have signed a new deal to strengthen their existing partnership and have agreed to settle earlier disputes, the companies said on Monday. They said the new deal would allow them to expand their partnership on new upstream projects, with a new contractual framework for the Timimoun project, as well as continued joint operations for the Tin Fouye Tebenkort (TFT) gas field. They added they had agreed to settle amicably earlier disputes between the two companies, which had seen Total seeking arbitration against Algeria for changing profit-sharing terms on oil and gas contracts in the mid-2000s.
Iran to Sign First New Oil Contracts with Domestic Firm
The National Iranian Oil Company (NIOC) will sign the first of its new oil and gas contracts (IPCs) with a domestic firm on Tuesday, the managing director of the state-run company was quoted as saying by Fars news agency on Monday. "Tomorrow NIOC will sign a contract with Setad Ejraye Farman Emam under the IPC to develop the second phase of Yaran field, and EOR (enhanced oil recovery) and IOR (improved oil recovery) contracts for Koupal oil field," managing director of NIOC, Ali Kardor said. Iran's Tasnim news agency said the value of the new contracts is $2.5 billion. (Reporting by Bozorgmehr Sharafedin)
Iran Inks Oil Deals with Foreign Firms
Iran has signed seven new initial agreements with foreign oil companies, Ali Kardor, managing director of the National Iranian Oil Company (NIOC), was quoted as saying by the oil ministry's news agency SHANA on Tuesday. The contracts to study Iranian oilfields were signed with firms including Austria's OMV, France's Total , Germany's Wintershall, Indonesia's Pertamina, Russia's Lukoil and Zarubezhneft, he said. Iran needs foreign investment to repair and upgrade its oil and gas fields and is also seeking the transfer of technology to its oil industry after a decade of isolation.
Chevron: No Exit from Thailand, may keep Myanmar gas stake
Chevron is committed to its Thailand investments despite job cuts that have spurred rumours of the U.S. oil major's exit, and may keep a Myanmar gas field stake if no attractive offer is made for the asset, an executive said in a statement on Friday. The U.S. oil major - the country's largest oil and gas producer, supplying more than one-third of its natural gas demand - operates several exploration and production blocks in the Gulf of Thailand. Its main concessions at the Erawan gas field and nearby blocks are due to expire in 2022, with the Thai military government planning to put them up for auction next year.
Algeria's Sonatrach says to Counter Total Arbitration claim
Algeria is preparing to counter a decision by French oil major Total to seek arbitration against its oil and gas firm Sonatrach, anticipating the legal action will have little impact, according to a Sonatrach statement. Total said last week it had filed a request for arbitration against Algeria for changing profit-sharing terms on oil and gas contracts in the mid-2000s, and that attempts to reach a mutual agreement had failed. Algeria, hard hit by the crash in oil prices, is seeking new investment to help it build up production from mature fields and explore new areas.
Total Files Arbitration Against Contract Terms in Algeria
French oil major Total has filed a request for arbitration against its contract terms in Algeria, CEO Patrick Pouyanne said on Saturday. "We tried as always to find a mutual agreement first, it failed, so we decided that we would seek arbitration," Pouyanne told Reuters on the sidelines of a business conference in Aix-en-Provence. Total and its Spanish partner Repsol have initiated litigation against Algeria and its state oil company, Sonatrach, challenging the way Algiers retroactively changed a profit-sharing terms on oil and gas contracts, daily Le Monde said earlier on Saturday.
Iran Oil Chief to Expected to Expedite Oil Major Deals
Zanganeh ally made new head of national oil firm; Kardor expected to speed up deals with oil majors. Oil minister Bijan Zanganeh has handed the running of Iran's national oil company to a trusted ally in a push to agree long-awaited deals with global oil majors, which could be derailed by next year's presidential polls. Iran has pledged to open up its lucrative oil reserves, the world's fourth largest, although hardline rivals of reformist President Hassan Rouhani have opposed the new contracts, saying Iranian natural resource reserves cannot be owned by foreigners.
Infighting Cancels Iran Contract Presentation
Internal clashes over the oil contracts, hardliners oppose contracts, push to have a bigger say. Iran's cancellation of a conference when it had been due to unveil investment contracts to international oil firms signals that political feuding is disrupting plans to revive its energy sector. Tehran blamed snags in obtaining British visas for Iranian delegates to the long-delayed conference, which had been scheduled to be held in London on Feb 22-24. However, foreign oil executives say factionalised politics in Iran, where elections will be held later this month…
Iran Cancels Oil Contracts Presentation, Signals Infighting
Iran's cancellation of a conference when it had been due to unveil investment contracts to international oil firms signals that political feuding is disrupting plans to revive its energy sector. Tehran blamed snags in obtaining British visas for Iranian delegates to the long-delayed conference, which had been scheduled to be held in London on Feb 22-24. However, foreign oil executives say factionalised politics in Iran, where elections will be held later this month, appeared to explain the delay as the country seeks major investment following the lifting of international sanctions last month.
Oil Majors Press Iran for Sweeter Oil Terms
Iran will have to offer lucrative contracts terms to draw back international oil companies at a time when the oil industry is more focused on profitability as it gears up for a longer period of low oil prices, executives said on Tuesday. Iran said in September it had approved a draft of international oil and gas contracts to attract foreign investors and oil buyers once international sanctions are lifted but has not provided details so far. The OPEC member will announce new oil and gas contracts at conferences in Tehran and London on Nov. 21-22 and Feb. 22-24 respectively.
W. Europe Could See Record Russian Gas Imports
Russian gas imports into Western Europe could rise to a record this summer as utilities increase purchases from Russia, taking advantage of lower prices for oil-indexed gas contracts, analysts said. Europe's biggest utilities have deferred taking delivery of Russian gas in the winter until the second quarter, when weaker oil prices worked through into gas contracts, making the supply cheaper. They reduced purchases of Russian oil-linked gas by around one quarter from Jan. 1 but increased their buying from March 5, flow data on Reuters Eikon shows.
Total Faces Legal Test over Iran Contracts
French oil company Total is to face trial in France over corruption allegations relating to Iranian contracts dating from the 1990s and early 2000s, the Paris prosecutor's office said on Tuesday. Total agreed last year to pay $398.2 million to settle U.S. criminal and civil allegations that it paid bribes to win oil and gas contracts in Iran, in what was billed as the first coordinated action by French and U.S. law enforcement in a major foreign bribery case. At the time, the Paris prosecutor recommended that the company and its then chief executive, Christophe de Margerie, be brought to trial. De Margerie died last month in a plane crash.
