by
Now that US regulators have awarded the first 10 deepwater drilling permits since the Deepwater Horizon disaster -- Statoil received number 10 late last week -- don't expect a lot of fanfare from them about each subsequent approval. The Bureau of Ocean Energy Management, [Regulation and Enforcement, i.e., BOEMRE, the former Minerals Management Service -- D.R] said it would stop alerting reporters when it signs off on individual deepwater permits. You can still track them here.
The watch continues for these holders of the first 10 permits to get started:
Drilling permits approved
1. Noble Energy, February 28 -- [...] [drilling] a bypass well in 6,500 feet of water in Mississippi Canyon Block 519, about 70 miles southeast of Venice, Louisiana. [An operator drills a bypass in order to drill around a mechanical problem in the original hole to the original geologic target from the existing wellbore. In this case, Noble Energy will be drilling around the plugs set in the original well when drilling was suspended in order to complete the project---please see BOEMRE, here. -- D.R]. Helix Well Containment Group. [Also, please see my related post, here. -- D.R.]
2. BHP Billiton, March [...] [11] -- resume pre-moratorium operation in 4,234 feet of water in Green Canyon Block 653, about 120 miles south of Houma, Louisiana. Helix Well Containment Group.
3. ATP Oil & Gas, March 18 -- resume [...] [operations/i.e., drill a new well -- D.R.] halted by the moratorium in 4,000 feet of water in Mississippi Canyon Block 941, about 90 miles south of Venice. [Initial drilling on ATP’s Well #4 began August 2008, in 4,000 feet water depth. Drilling was suspended July 2009, and a rig was on-location April 2010 to prepare for installation of a production facility when activities were suspended due to the temporary drilling suspensions imposed following the Deepwater Horizon oil spill---please see BOEMRE, here. -- D.R.] Helix Well Containment Group.
4. ExxonMobil, March 22 -- start drilling a well approved before the spill in 6,941 feet of water in the Keathley Canyon Block 919, about 240 miles south of Lafayette, Louisiana. Marine Well Containment Company.
5. Chevron, March 24 -- resume drilling started before Macondo in 6,750 feet of water in Keathley Canyon Block 736, about 215 miles [sic] south of Lafayette. Marine Well Containment Company.
6. Statoil, March 25 -- start drilling a well that had rig under contract before the spill in 7,134 feet of water in Alaminos Canyon Block 810, about 215 miles south of Texas City, Texas. Helix Well Containment Group.
7. Shell, March 30 -- new well and first permit under an exploration plan reviewed entirely after moratorium. Allows drilling in 2,721 feet of water in Garden Banks Block 427, about 140 miles south of Lafayette. Marine Well Containment Company.
8. Eni, April 1 -- sidetrack well that had rig on location before the moratorium. Allows drilling in 2,823 feet of water in Mississippi Canyon Block 460, about 60 miles southeast of Venice. Helix Well Containment Group.
9. Murphy Exploration & Production, April 7 -- sidetrack well that had rig on location before moratorium. Allows drilling in 3,325 feet of water in Green Canyon Block 338, about 170 miles southwest of New Orleans. Helix Well Containment Group.
10. Statoil, April 8 -- start drilling a well that had rig under contract before the spill in 7,813 feet of water in Walker Ridge Block 969, about 220 miles south of Houma. Marine Well Containment Company.
Exploration plans approved
1. Shell, March 21 -- three wells in 2,950 feet of water in the Auger field, about 130 miles offshore Louisiana. [Full story]
(All deep-water drilling must comply with new safety and environmental mandates imposed since the spill. Companies/Operators also must prove they can swiftly contain a blowout in deep water. Two companies -- Houston-based Helix Energy Solutions Group and the Exxon Mobil-led Marine Well Containment Company -- have developed systems including vessels and other equipment to capture oil from runaway deep-water wells. -- D.R.)
Showing posts with label Italy. Show all posts
Showing posts with label Italy. Show all posts
Wednesday, April 13, 2011
Halliburton Wins Oil Services Contract in Iraq
Bloomberg Businessweek, Apr 11, 2011
Halliburton Co. said Monday that it has been contracted by Exxon Mobil Corp. to use three drilling rigs to provide oil drilling services at a large field under development in southern Iraq.
The contract from ExxonMobil Iraq Ltd. covers services for 15 wells at the 8.6 billion-barrel West Qurna Phase I oil field, one of Iraq's largest. Financial terms of the deal were not disclosed.
Exxon's partners in the Qurna project include two Iraqi state-owned companies and an affiliate of Royal Dutch Shell PLC. ExxonMobil Iraq is the lead contractor on the field, with a 60 percent stake [please see remarks below -- D.R.]. It said last month that initial field production at the Qurna I field increased 17 percent to 285,000 barrels per day, exceeding its 10 percent improvement target. Under an agreement between Iraq and the companies, production from the West Qurna I field should reach 2.825 million barrels a day after 6 to 7 years [please see my post here -- D.R.].
Shares of Houston-based Halliburton rose 8 cents to $48.21 in morning trading. [Full story]
(ExxonMobil subsidiary Exxon Mobil Iraq Limited with 60% interest is the lead contractor working with the South Oil Company of Iraq to redevelop and expand the West Qurna I field along with the Oil Exploration Company of Iraq with 25% interest and Shell West Qurna B.V., a Royal Dutch Shell affiliate -- 15% interest. In August 2010, Halliburton announced it had been awarded a contract by Italian oil company Eni to provide a range of integrated energy services to help redevelop the Zubair field in southern Iraq. Halliburton will perform services such as wire-line logging, perforating, acidizing and well testing on 20 wells. For Iraq's oil production targets, please read my post "Iraq Says to Produce 6.5 mil b/d by 2014; Disputes IMF Figures," here. For Halliburton's profits, please see my post here, including remarks. -- D.R.)
Halliburton Co. said Monday that it has been contracted by Exxon Mobil Corp. to use three drilling rigs to provide oil drilling services at a large field under development in southern Iraq.
The contract from ExxonMobil Iraq Ltd. covers services for 15 wells at the 8.6 billion-barrel West Qurna Phase I oil field, one of Iraq's largest. Financial terms of the deal were not disclosed.
Exxon's partners in the Qurna project include two Iraqi state-owned companies and an affiliate of Royal Dutch Shell PLC. ExxonMobil Iraq is the lead contractor on the field, with a 60 percent stake [please see remarks below -- D.R.]. It said last month that initial field production at the Qurna I field increased 17 percent to 285,000 barrels per day, exceeding its 10 percent improvement target. Under an agreement between Iraq and the companies, production from the West Qurna I field should reach 2.825 million barrels a day after 6 to 7 years [please see my post here -- D.R.].
Shares of Houston-based Halliburton rose 8 cents to $48.21 in morning trading. [Full story]
(ExxonMobil subsidiary Exxon Mobil Iraq Limited with 60% interest is the lead contractor working with the South Oil Company of Iraq to redevelop and expand the West Qurna I field along with the Oil Exploration Company of Iraq with 25% interest and Shell West Qurna B.V., a Royal Dutch Shell affiliate -- 15% interest. In August 2010, Halliburton announced it had been awarded a contract by Italian oil company Eni to provide a range of integrated energy services to help redevelop the Zubair field in southern Iraq. Halliburton will perform services such as wire-line logging, perforating, acidizing and well testing on 20 wells. For Iraq's oil production targets, please read my post "Iraq Says to Produce 6.5 mil b/d by 2014; Disputes IMF Figures," here. For Halliburton's profits, please see my post here, including remarks. -- D.R.)
Monday, April 11, 2011
World Watch [Statoil's Growth Strategy: North America]
by Tom Haywood, Houston, EI
Onshore and offshore North American plays are taking on a greater role in Statoil's plan to grow international assets from 25% of its portfolio. Statoil has stakes in some of the major fields in the deepwater Gulf of Mexico, including Shell's new Vito discovery, and offshore Eastern Canada. But its onshore presence is also burgeoning from the Western Canadian oil sands to the Marcellus and Eagle Ford shales in the US. Bill Maloney, Statoil's first executive vice president based in the US, told the Houston Chronicle that North America is becoming a "major growth engine" for the Norwegian major. "The nice thing about working in North America is that every day is an opportunity. You don't have that same commercial setup in other parts of the world." [Please see remarks below -- D.R.] But Statoil is finding more opportunity in Norway, as well. [Recently,] [...] the company announced it had made a major oil discovery in the Barents Sea off Norway's northern coast [please see remarks below -- D.R.].
(Please read an interview with Bill Maloney: The Houston Chronicle, Apr 2, 2011, here. Statoil, along with partners Eni Norway and Petoro, has made a significant oil and gas discovery on the Skrugard prospect in the Barents Sea. The breakthrough discovery is one of the most important finds on the Norwegian continental shelf in the last decade---please see Scandinavian Oil-Gas Magazine, Apr 1, 2011, here. For Statoil's ranking, please see my post, "Problems Slow Statoil's 2010-11 Production," > remarks, here. For exploration and drilling offshore Norway during the first quarter of 2011, please see my post here. -- D.R.)
Onshore and offshore North American plays are taking on a greater role in Statoil's plan to grow international assets from 25% of its portfolio. Statoil has stakes in some of the major fields in the deepwater Gulf of Mexico, including Shell's new Vito discovery, and offshore Eastern Canada. But its onshore presence is also burgeoning from the Western Canadian oil sands to the Marcellus and Eagle Ford shales in the US. Bill Maloney, Statoil's first executive vice president based in the US, told the Houston Chronicle that North America is becoming a "major growth engine" for the Norwegian major. "The nice thing about working in North America is that every day is an opportunity. You don't have that same commercial setup in other parts of the world." [Please see remarks below -- D.R.] But Statoil is finding more opportunity in Norway, as well. [Recently,] [...] the company announced it had made a major oil discovery in the Barents Sea off Norway's northern coast [please see remarks below -- D.R.].
(Please read an interview with Bill Maloney: The Houston Chronicle, Apr 2, 2011, here. Statoil, along with partners Eni Norway and Petoro, has made a significant oil and gas discovery on the Skrugard prospect in the Barents Sea. The breakthrough discovery is one of the most important finds on the Norwegian continental shelf in the last decade---please see Scandinavian Oil-Gas Magazine, Apr 1, 2011, here. For Statoil's ranking, please see my post, "Problems Slow Statoil's 2010-11 Production," > remarks, here. For exploration and drilling offshore Norway during the first quarter of 2011, please see my post here. -- D.R.)
Sunday, March 27, 2011
World Watch [Brazil as a Role Model]
by Jim Washer, London, EI
Petrobras Chief Executive José Sergio Gabrielli de Azevedo has been named by Energy Intelligence as its 2011 Petroleum Executive of the Year. The award reflects Gabrielli’s stewardship of the state-controlled Brazilian firm through a period of unprecedented growth, encompassing the discovery of huge [deep water] subsalt oil and gas reserves [in the South Atlantic]. Gabrielli’s triumph comes at an intriguing time. Political unrest in North Africa and the Middle East has left the world contemplating an oil price shock reminiscent of those of the 1970s. The price spikes of that decade prompted a radical energy policy response from some consuming countries, most notably Brazil. The government sought to protect the country from future price shocks by promoting the extensive use of sugar cane-derived ethanol in transport fuels and by making Petrobras a pioneer in deepwater exploration. If the disruption to Libyan oil and gas exports spreads to other producers in the region, the impact on energy prices may encourage other oil and gas importing nations to follow the Brazilian example.
(Under Gabrielli’s leadership, Petrobras made discoveries expected to more than double its oil reserves and production in the years to come. The company has established itself as a leader in deepwater exploration and production technology with among the highest safety and efficiency standards in the business. He also raised huge amounts of capital to fund these upstream developments and allow the state company to remain very much the dominant force in the development of Brazil’s oil industry. The Petroleum Executive of the Year selection process begins with Energy Intelligence eliciting nominations from the heads of the 100 largest oil companies determined by The Energy Intelligence Top 100: Ranking The World’s Oil Companies, an EI publication. These nominations are then voted on by a committee of previous award winners and former senior oil executives. Past winners of the Petroleum Executive of the Year Award include Andrew Gould of Schlumberger (2010), Christophe de Margerie of Total (2009), Paolo Scaroni of Eni (2008), Abdulla al-Attiyah of Qatar (2007), Dr. Shokri Ghanem of Libya (2006), Abdallah Jum'ah of Saudi Aramco (2005), David O'Reilly of Chevron (2004), Lee Raymond of ExxonMobil (2003), James J. Mulva of ConocoPhillips (2002), Sir Mark Moody-Stuart of Royal Dutch Shell (2001), Thierry Desmarest of Total (2000), Lucio A. Noto of ExxonMobil (1999), Luis Giusti of PDVSA (1998) and Lord John Browne of BP (1997)---please see EON: Enhanced Online News, here. Brazil has become a net oil exporter in the last decade. Petrobras has been ranked fourth in the Platts Top 250 Global Energy Companies Rankings 2010, behind ExxonMobil, BP and Gazprom Oao---please see my post, here. Petrobras with a market capitalization of $229 billion, ranked at No. 3 in the PFC Energy 50 Ranking of World's Top Energy Companies, Jan 2011 reflecting 2010 Rank, after ExxonMobil and PetroChina---please see my post here. Also, Petrobras retained its spot as the No. 15, in the 2011 Petroleum Intelligence Weekly's/PIW's ranking for 2009---please see my blog stand-alone page "Companies" > Petrobras. -- D.R.)
Petrobras Chief Executive José Sergio Gabrielli de Azevedo has been named by Energy Intelligence as its 2011 Petroleum Executive of the Year. The award reflects Gabrielli’s stewardship of the state-controlled Brazilian firm through a period of unprecedented growth, encompassing the discovery of huge [deep water] subsalt oil and gas reserves [in the South Atlantic]. Gabrielli’s triumph comes at an intriguing time. Political unrest in North Africa and the Middle East has left the world contemplating an oil price shock reminiscent of those of the 1970s. The price spikes of that decade prompted a radical energy policy response from some consuming countries, most notably Brazil. The government sought to protect the country from future price shocks by promoting the extensive use of sugar cane-derived ethanol in transport fuels and by making Petrobras a pioneer in deepwater exploration. If the disruption to Libyan oil and gas exports spreads to other producers in the region, the impact on energy prices may encourage other oil and gas importing nations to follow the Brazilian example.
(Under Gabrielli’s leadership, Petrobras made discoveries expected to more than double its oil reserves and production in the years to come. The company has established itself as a leader in deepwater exploration and production technology with among the highest safety and efficiency standards in the business. He also raised huge amounts of capital to fund these upstream developments and allow the state company to remain very much the dominant force in the development of Brazil’s oil industry. The Petroleum Executive of the Year selection process begins with Energy Intelligence eliciting nominations from the heads of the 100 largest oil companies determined by The Energy Intelligence Top 100: Ranking The World’s Oil Companies, an EI publication. These nominations are then voted on by a committee of previous award winners and former senior oil executives. Past winners of the Petroleum Executive of the Year Award include Andrew Gould of Schlumberger (2010), Christophe de Margerie of Total (2009), Paolo Scaroni of Eni (2008), Abdulla al-Attiyah of Qatar (2007), Dr. Shokri Ghanem of Libya (2006), Abdallah Jum'ah of Saudi Aramco (2005), David O'Reilly of Chevron (2004), Lee Raymond of ExxonMobil (2003), James J. Mulva of ConocoPhillips (2002), Sir Mark Moody-Stuart of Royal Dutch Shell (2001), Thierry Desmarest of Total (2000), Lucio A. Noto of ExxonMobil (1999), Luis Giusti of PDVSA (1998) and Lord John Browne of BP (1997)---please see EON: Enhanced Online News, here. Brazil has become a net oil exporter in the last decade. Petrobras has been ranked fourth in the Platts Top 250 Global Energy Companies Rankings 2010, behind ExxonMobil, BP and Gazprom Oao---please see my post, here. Petrobras with a market capitalization of $229 billion, ranked at No. 3 in the PFC Energy 50 Ranking of World's Top Energy Companies, Jan 2011 reflecting 2010 Rank, after ExxonMobil and PetroChina---please see my post here. Also, Petrobras retained its spot as the No. 15, in the 2011 Petroleum Intelligence Weekly's/PIW's ranking for 2009---please see my blog stand-alone page "Companies" > Petrobras. -- D.R.)
Thursday, March 10, 2011
Eurogas: EU 27 Gas Consumption Rises 7.2% in 2010
by Doris Leblond, Paris, OGJ, Mar 9, 2011
Preliminary figures from Eurogas indicate that total gas consumption for the European Union 27 [...] increased by 7.2% to 522 billion cu m in 2010 vs. 2009. In 2009, the economic crisis had pulled down consumption to its lowest level since 2002.
The growth was due to a combination of severe weather conditions, which strongly pushed up demand from the residential sector, and economic recovery illustrated by the 1.8% real GDP growth and the 6.6% [sic] increase in the EU 27 average production index for 2010.
Higher electricity demand due to economic recovery combined with the switch to gas from other fuels for electric power generation, which significantly contributed to total demand growth.
Indigenous gas production fell by 4% to 176 bcm in 2010, mainly because of the decline in mature production basins. However, with a 34% share [of the total net supplies -- D.R], it is still the largest source of gas for the EU 27. Main external sources were Russia, 23%; Norway, 19%; Algeria, 10%; and Qatar, 6%; the latter two countries showed an increasing role as LNG suppliers to Europe.
The UK was the largest gas consumer in 2010 with 99.8 bcm. [Estonia] [...] was the smallest with [0.5] bcm ... of gas consumed. Other countries’ gas consumption numbers were, [in order]: Germany, 87 bcm; Italy, 81.1 bcm; France, 50.7 bcm; the Netherland, 46.8 bcm; Spain, 37 bcm; [Belgium, 19.9 bcm] and [Poland, 15.5 bcm] [...].
(Cyprus and Malta are the only two EU member states that do not consume natural gas. However, the US' Noble Energy plans to start work on an exploration well in block 12 offshore Cyprus at end-2011 in an attempt to prove the country's gas potential. Both Cyprus and Malta have been oil import-dependent countries. Among the Baltic States (in the narrower sense), Lithuania was the largest consumer of natural gas with 3 bcm in 2010, followed by Latvia, 1.7 bcm and Estonia, 0.5 bcm---please see Eurogas original report -- Natural Gas Consumption in the EU27 and Switzerland in 2010, Mar 7, 2011, here. For information on EU plans to import gas from Azerbaijan, please see my post here. -- D.R.)
Preliminary figures from Eurogas indicate that total gas consumption for the European Union 27 [...] increased by 7.2% to 522 billion cu m in 2010 vs. 2009. In 2009, the economic crisis had pulled down consumption to its lowest level since 2002.
The growth was due to a combination of severe weather conditions, which strongly pushed up demand from the residential sector, and economic recovery illustrated by the 1.8% real GDP growth and the 6.6% [sic] increase in the EU 27 average production index for 2010.
Higher electricity demand due to economic recovery combined with the switch to gas from other fuels for electric power generation, which significantly contributed to total demand growth.
Indigenous gas production fell by 4% to 176 bcm in 2010, mainly because of the decline in mature production basins. However, with a 34% share [of the total net supplies -- D.R], it is still the largest source of gas for the EU 27. Main external sources were Russia, 23%; Norway, 19%; Algeria, 10%; and Qatar, 6%; the latter two countries showed an increasing role as LNG suppliers to Europe.
The UK was the largest gas consumer in 2010 with 99.8 bcm. [Estonia] [...] was the smallest with [0.5] bcm ... of gas consumed. Other countries’ gas consumption numbers were, [in order]: Germany, 87 bcm; Italy, 81.1 bcm; France, 50.7 bcm; the Netherland, 46.8 bcm; Spain, 37 bcm; [Belgium, 19.9 bcm] and [Poland, 15.5 bcm] [...].
(Cyprus and Malta are the only two EU member states that do not consume natural gas. However, the US' Noble Energy plans to start work on an exploration well in block 12 offshore Cyprus at end-2011 in an attempt to prove the country's gas potential. Both Cyprus and Malta have been oil import-dependent countries. Among the Baltic States (in the narrower sense), Lithuania was the largest consumer of natural gas with 3 bcm in 2010, followed by Latvia, 1.7 bcm and Estonia, 0.5 bcm---please see Eurogas original report -- Natural Gas Consumption in the EU27 and Switzerland in 2010, Mar 7, 2011, here. For information on EU plans to import gas from Azerbaijan, please see my post here. -- D.R.)
Monday, March 7, 2011
Azerbaijan to Double Gas Output to 54 Bcm/Year by 2020: Official
Platts, Feb 15, 2011
Azerbaijan plans to double its natural gas output to some 54 billion cubic meters/year by 2020, a senior energy ministry official said Tuesday, with Europe expected to benefit most from the increased volumes.
Azerbaijan's deputy [industry and] energy minister Natig Abbasov told the Azerbaijan Press Agency following a session of an Azerbaijan-EU working group the country has confirmed gas reserves of 2.2 trillion cubic meters, [mostly in Shah Deniz II and the Umid fields.]
"In 2006 Azerbaijan produced 9 Bcm of gas and already in 2010 produced 27 Bcm," Abbasov said.
"By 2020 the volume of gas produced in Azerbaijan will double," he said.
In January, Azerbaijan agreed to supply enough gas to the EU to open up the so-called "Southern Gas Corridor."
Securing supplies from Azerbaijan has been seen as key to Europe's plans to diversify its gas imports away from Russia and other traditional suppliers.
Competition for Azerbaijan's future gas has been fierce, with Russia and Iran also interested in increasing supplies.
The January declaration was the first time Azerbaijan had agreed in writing to export large volumes of gas to Europe, though it has said verbally in the past it was prepared to supply countries in Europe.
Abbasov said that as recently as 2006, Azerbaijan had to import gas, but it now exports gas to Russia, Iran, Turkey and Georgia [please see my remarks below -- D.R.].
Abbasov said Azerbaijan plans to supply 2 Bcm of gas to Russia in 2011.
The main sources of Baku's gas production growth will come from the second phase of the Shah Deniz gas field and the Umid field, Abbasov said.
Umid's recoverable reserves are estimated at 200 Bcm, and Azerbaijan also has a number of other high-profile gas fields in the exploration phase, including the Total-led Absheron project, where drilling has just started.
EU PIPELINE PROJECTS
Although Russia has publicly said it could buy all of Azerbaijan's export gas, the EU is expected to receive large volumes of Azeri gas in the future.
There are currently three gas pipeline projects competing for new gas from Azerbaijan, with a decision on which is to be favored by Baku due soon.
The projected 31 Bcm/year Nabucco and the planned 11 Bcm/year ITGI lines are competing with a third project, the proposed 20 Bcm/year Trans-Adriatic Pipeline between Greece, Albania and Italy, for the role of principal carrier of Azeri gas to Europe.
Azerbaijan has also pledged gas to the Azerbaijan-Georgia-Romania Interconnector (AGRI) venture.
The energy ministers of the three countries, plus Hungary, signed a declaration on the project in the Romanian capital Bucharest Monday.
The AGRI project, created last September, envisions 7 Bcm/year of Azeri gas transported from the Sangachal terminal via existing pipelines to the port of Kulevi, Georgia.
There it would be converted to LNG in a newly built terminal and shipped to the port of Constanta, Romania, across the Black Sea, and on to Hungary via pipeline.
Hungary, which already took part in last September's AGRI talks as an observer, will be represented in the project company by state-owned power holding MVM.
The four partner companies -- Romgaz (Romania), Socar (Azerbaijan), GOGC (Georgia) and MVM -- will each control 25% of the AGRI project company.
The four parties hope to complete a feasibility study of the project by April 1, 2012.
Hungary's participation in the project is made possible by a recently opened Hungary-Romania gas interconnector.
Hungary is heavily dependent on Russian gas imports transported via Ukraine, and is also part of the Nabucco project.
"AGRI, too, could be a realistic solution for easing Hungary's one-sided gas import dependence, both in terms of gas sources and supply routes," Hungary's energy minister [Minister of National Development] Tamas Fellegi was quoted as saying. "We believe AGRI is a feasible project." [Full story]
(Azerbaijan became a net exporter of natural gas in 2007 with the startup of the Shah Deniz natural gas and condensate field in late 2006; in prior years it had been importing natural gas from Russia. Prior to 2007, the Kazi Magomed-Mozdok pipeline used to transport natural gas from Russia to Azerbaijan, but the agreement allowed for the pipeline flow to be reversed, making Azerbaijan an exporter of natural gas to Russia. The Shah Deniz field was discovered in 1999. It is one of the world's largest gas-condensate fields, with over 30 trillion cubic feet---1 trillion cubic meters---of gas in place. It lies in water depths between 50 meters and 600 meters, i.e. 1969 ft, some 70 kilometers, i.e. 43 mi, southeast of Baku---please see map below. BP operates Shah Deniz on behalf of its parners in the Shah Deniz Production Sharing Agreement. The country is also a significant oil producer. Azerbaijan produced some 51 million tons of oil, i.e., about 1 million barrels of oil per day, in 2010. -- D.R.)
Source: Rigzone, here (Azerbaijan's northern land border with Russia is missing -- D.R.)
Azerbaijan plans to double its natural gas output to some 54 billion cubic meters/year by 2020, a senior energy ministry official said Tuesday, with Europe expected to benefit most from the increased volumes.
Azerbaijan's deputy [industry and] energy minister Natig Abbasov told the Azerbaijan Press Agency following a session of an Azerbaijan-EU working group the country has confirmed gas reserves of 2.2 trillion cubic meters, [mostly in Shah Deniz II and the Umid fields.]
"In 2006 Azerbaijan produced 9 Bcm of gas and already in 2010 produced 27 Bcm," Abbasov said.
"By 2020 the volume of gas produced in Azerbaijan will double," he said.
In January, Azerbaijan agreed to supply enough gas to the EU to open up the so-called "Southern Gas Corridor."
Securing supplies from Azerbaijan has been seen as key to Europe's plans to diversify its gas imports away from Russia and other traditional suppliers.
Competition for Azerbaijan's future gas has been fierce, with Russia and Iran also interested in increasing supplies.
The January declaration was the first time Azerbaijan had agreed in writing to export large volumes of gas to Europe, though it has said verbally in the past it was prepared to supply countries in Europe.
Abbasov said that as recently as 2006, Azerbaijan had to import gas, but it now exports gas to Russia, Iran, Turkey and Georgia [please see my remarks below -- D.R.].
Abbasov said Azerbaijan plans to supply 2 Bcm of gas to Russia in 2011.
The main sources of Baku's gas production growth will come from the second phase of the Shah Deniz gas field and the Umid field, Abbasov said.
Umid's recoverable reserves are estimated at 200 Bcm, and Azerbaijan also has a number of other high-profile gas fields in the exploration phase, including the Total-led Absheron project, where drilling has just started.
EU PIPELINE PROJECTS
Although Russia has publicly said it could buy all of Azerbaijan's export gas, the EU is expected to receive large volumes of Azeri gas in the future.
There are currently three gas pipeline projects competing for new gas from Azerbaijan, with a decision on which is to be favored by Baku due soon.
The projected 31 Bcm/year Nabucco and the planned 11 Bcm/year ITGI lines are competing with a third project, the proposed 20 Bcm/year Trans-Adriatic Pipeline between Greece, Albania and Italy, for the role of principal carrier of Azeri gas to Europe.
Azerbaijan has also pledged gas to the Azerbaijan-Georgia-Romania Interconnector (AGRI) venture.
The energy ministers of the three countries, plus Hungary, signed a declaration on the project in the Romanian capital Bucharest Monday.
The AGRI project, created last September, envisions 7 Bcm/year of Azeri gas transported from the Sangachal terminal via existing pipelines to the port of Kulevi, Georgia.
There it would be converted to LNG in a newly built terminal and shipped to the port of Constanta, Romania, across the Black Sea, and on to Hungary via pipeline.
Hungary, which already took part in last September's AGRI talks as an observer, will be represented in the project company by state-owned power holding MVM.
The four partner companies -- Romgaz (Romania), Socar (Azerbaijan), GOGC (Georgia) and MVM -- will each control 25% of the AGRI project company.
The four parties hope to complete a feasibility study of the project by April 1, 2012.
Hungary's participation in the project is made possible by a recently opened Hungary-Romania gas interconnector.
Hungary is heavily dependent on Russian gas imports transported via Ukraine, and is also part of the Nabucco project.
"AGRI, too, could be a realistic solution for easing Hungary's one-sided gas import dependence, both in terms of gas sources and supply routes," Hungary's energy minister [Minister of National Development] Tamas Fellegi was quoted as saying. "We believe AGRI is a feasible project." [Full story]
(Azerbaijan became a net exporter of natural gas in 2007 with the startup of the Shah Deniz natural gas and condensate field in late 2006; in prior years it had been importing natural gas from Russia. Prior to 2007, the Kazi Magomed-Mozdok pipeline used to transport natural gas from Russia to Azerbaijan, but the agreement allowed for the pipeline flow to be reversed, making Azerbaijan an exporter of natural gas to Russia. The Shah Deniz field was discovered in 1999. It is one of the world's largest gas-condensate fields, with over 30 trillion cubic feet---1 trillion cubic meters---of gas in place. It lies in water depths between 50 meters and 600 meters, i.e. 1969 ft, some 70 kilometers, i.e. 43 mi, southeast of Baku---please see map below. BP operates Shah Deniz on behalf of its parners in the Shah Deniz Production Sharing Agreement. The country is also a significant oil producer. Azerbaijan produced some 51 million tons of oil, i.e., about 1 million barrels of oil per day, in 2010. -- D.R.)
Sunday, March 6, 2011
Fitch: Long Production Cut Biggest MENA Threat
By OGJ editors, OGJ, Mar 3, 2011
Long interruption of production represents the largest threat from political turmoil to the financial stability of oil and gas companies with operations in the Middle East and North Africa (MENA) but remains unlikely, an international credit-reporting agency says.
A secondary risk, nationalization of assets by successor regimes in countries now experiencing unrest, is a “remote scenario,” although contract renegotiations by successor regimes remains possible, according to Fitch Ratings, New York and London.
A recent Fitch report covering North American companies with operations in the MENA region said credit pressures from unrest in Egypt, Libya, and other countries of concern are manageable.
Credit ratings are most sensitive to “widespread and long-lasting production” upsets, which Fitch doesn’t expect “due to the importance of oil revenues to the region’s economies.”
Most North American producers in the MENA region are large, integrated companies for which production in countries experiencing unrest is small in relation to total. Oil price increases mitigate the elevated risks of production losses and contract renegotiation.
Company exposures
Apache Corp. has the highest exposure among North American producers to any single country experiencing turmoil, Fitch said. Apache’s 163,300 boe/d of output in Egypt is 24% of Fitch’s assessment of the company’s recent total production.
Exposure levels in Libya include Marathon, 12% of total production; Suncor Energy Inc., 8%; Hess Corp., 5%; ConocoPhillips, 3%, and Occidental Petroleum Corp., 1%.
Fitch called Algeria “the other North African country that could present the largest concerns for North American-based upstream companies.” There, sizable exposure levels include Anadarko Petroleum Corp., 7% of total production, and Hess, 3%. ConocoPhillips produced 14,000 boe/d in Algeria in the third quarter last year, less than 1% of total production, according to Fitch estimates.
North American companies with production in restive Yemen include Nexen Inc., 11% of estimated total production, and Oxy, 6%.
Among European oil and gas companies tracked by Fitch, four have production in Libya or Egypt, the firm said in a separate report.
Eni, OMV, and Repsol have production exposure of 9-14% in Libya, “with Eni as the most exposed,” Fitch said. About one fourth of BG Energy Holdings Ltd.’s total oil and gas output is in Egypt.
“There could be a more pronounced impact on European oil and gas companies’ operations and financials if the political unrest spreads across Africa and/or the Middle East,” Fitch said, adding it “does not currently view this scenario as very likely.” [Full story]
Monday, February 28, 2011
Gazprom Ups Italian Gas Supplies 30% Due to Libya Unrest: Source
Platts, Moscow, Feb 28, 2011
Gazprom has increased its daily Russian gas deliveries to Italy by around 30% after unrest in Libya led to the shutdown of the 11 billion cubic meter/year Greenstream pipeline [please see map below -- D.R.] last week, a source close to Gazprom said Monday.
The source told Platts it was unclear how long the gas supplies would remain at an elevated level.
Gazprom's deliveries reached 81.1 million cu m/day on Thursday, up from a daily average of 63 million-65 million cu m on weekdays and 54 million-55 million cu m at weekends, Russian news agency Interfax reported Friday, citing Italy's gas grid operator Snam Rete Gas.
Snam Rete Gas was not available for comment.
Last Tuesday Eni, Italy's main gas supplier and the parent of Snam Rete Gas, announced it had shut down Greenstream.
Greenstream, which is a joint venture between Eni and the National Oil Corporation of Libya, exported around 9.4 billion cu m of gas to Italy in 2010.
It runs from Mellitah in Libya to Gela in Sicily, Italy.
According to the European Commission, 30% of Italy's gas supplies come from Russia, with Libya typically supplying around 11%. Thirty-three percent of the country's gas imports come from Algeria and 9% from Norway.
The increase in Russian supplies to Italy is likely to be temporary, according to a research note by investment company Alfa Bank.
"There could be other positive implications for Russia, as the incident is likely to underscore the country's reputation as a reliable gas supplier and could ease concern over Russia's large share of European gas markets," the note said.
Within Europe, Libya only delivers gas to Italy and Spain [to Spain in the form of LNG -- D.R.]. Libyan gas represents 1.5% of Spanish [gas] imports. [Full story]
(The c. 520-kilometer---323-mile---Greenstream submarine pipeline came online in 2004. For information on Libya's oil and gas profile, please see my post here.)
Source: ENI, here
Gazprom has increased its daily Russian gas deliveries to Italy by around 30% after unrest in Libya led to the shutdown of the 11 billion cubic meter/year Greenstream pipeline [please see map below -- D.R.] last week, a source close to Gazprom said Monday.
The source told Platts it was unclear how long the gas supplies would remain at an elevated level.
Gazprom's deliveries reached 81.1 million cu m/day on Thursday, up from a daily average of 63 million-65 million cu m on weekdays and 54 million-55 million cu m at weekends, Russian news agency Interfax reported Friday, citing Italy's gas grid operator Snam Rete Gas.
Snam Rete Gas was not available for comment.
Last Tuesday Eni, Italy's main gas supplier and the parent of Snam Rete Gas, announced it had shut down Greenstream.
Greenstream, which is a joint venture between Eni and the National Oil Corporation of Libya, exported around 9.4 billion cu m of gas to Italy in 2010.
It runs from Mellitah in Libya to Gela in Sicily, Italy.
According to the European Commission, 30% of Italy's gas supplies come from Russia, with Libya typically supplying around 11%. Thirty-three percent of the country's gas imports come from Algeria and 9% from Norway.
The increase in Russian supplies to Italy is likely to be temporary, according to a research note by investment company Alfa Bank.
"There could be other positive implications for Russia, as the incident is likely to underscore the country's reputation as a reliable gas supplier and could ease concern over Russia's large share of European gas markets," the note said.
Within Europe, Libya only delivers gas to Italy and Spain [to Spain in the form of LNG -- D.R.]. Libyan gas represents 1.5% of Spanish [gas] imports. [Full story]
(The c. 520-kilometer---323-mile---Greenstream submarine pipeline came online in 2004. For information on Libya's oil and gas profile, please see my post here.)
Thursday, February 24, 2011
EC Сoncerned over Economic Impact If Oil Stays over $100/b
Platts, Brussels, Feb 24, 2011
The European Union is not worried about the loss of Libyan oil supplies as it is importing alternative crude from producers such as Saudi Arabia, the European Commission's energy spokeswoman Marlene Holzner said Thursday.
"The EU imports 10% of its oil from Libya. Production has been stopped but the EU is receiving extra supplies from alternative suppliers, such as Saudi Arabia," Holzner told reporters in Brussels.
The head of Italian oil major Eni's Paolo Scaroni said Thursday he believes Libyan oil production has fallen by about 75% or 1.2 million b/d due to ongoing upheaval in recent days in the North African country.
Libya normally produces some 1.6 million b/d of oil and exports about 1.4 million b/d of the total, according to the International Energy Agency.
Brent oil prices jumped to almost $120/barrel early Thursday, hitting a 30-month high, as ongoing Libya instability stoked supply jitters across the Middle East and North Africa.
On the oil price, Holzner said the EU would only be concerned about negative economic impacts if higher oil prices if it remains [sic] over $100/b "for several months," or if it is particularly volatile over several months.
"We are concerned about rising oil prices because of what is happening in North Africa," [EC] Economic and Monetary Affairs spokesman Amadeu Altafaj Tardio said. "When we look at the inflation figures, we see that inflation has been rising and mainly due to the effects of increasing energy prices. The other components are quite stable, [but there is] no doubt that rising energy prices can have an adverse impact on inflation."
"The EC will present its interim economic forecast on March 1, so there will be more comments then and there is a press conference with [economic and monetary affairs] commissioner Rehn on Tuesday," Altafaj Tardio added.
European Union president Herman Van Rompuy early Thursday renewed his call for Libyan authorities to immediately "end the use of force" against protesters. [Full story]
(The International Energy Agency warned last month that sustained oil prices of US$100 a barrel pose a real risk to the world economy. "Were $100/bbl oil to become entrenched in 2011, that would risk pushing the [oil burden] figure through 5%," IEA said in its monthly Oil Market Report (OMR), released on January 18---please read about the oil burden, here. Please see Libya's oil and gas profile, here. -- D.R.)
The European Union is not worried about the loss of Libyan oil supplies as it is importing alternative crude from producers such as Saudi Arabia, the European Commission's energy spokeswoman Marlene Holzner said Thursday.
"The EU imports 10% of its oil from Libya. Production has been stopped but the EU is receiving extra supplies from alternative suppliers, such as Saudi Arabia," Holzner told reporters in Brussels.
The head of Italian oil major Eni's Paolo Scaroni said Thursday he believes Libyan oil production has fallen by about 75% or 1.2 million b/d due to ongoing upheaval in recent days in the North African country.
Libya normally produces some 1.6 million b/d of oil and exports about 1.4 million b/d of the total, according to the International Energy Agency.
Brent oil prices jumped to almost $120/barrel early Thursday, hitting a 30-month high, as ongoing Libya instability stoked supply jitters across the Middle East and North Africa.
On the oil price, Holzner said the EU would only be concerned about negative economic impacts if higher oil prices if it remains [sic] over $100/b "for several months," or if it is particularly volatile over several months.
"We are concerned about rising oil prices because of what is happening in North Africa," [EC] Economic and Monetary Affairs spokesman Amadeu Altafaj Tardio said. "When we look at the inflation figures, we see that inflation has been rising and mainly due to the effects of increasing energy prices. The other components are quite stable, [but there is] no doubt that rising energy prices can have an adverse impact on inflation."
"The EC will present its interim economic forecast on March 1, so there will be more comments then and there is a press conference with [economic and monetary affairs] commissioner Rehn on Tuesday," Altafaj Tardio added.
European Union president Herman Van Rompuy early Thursday renewed his call for Libyan authorities to immediately "end the use of force" against protesters. [Full story]
(The International Energy Agency warned last month that sustained oil prices of US$100 a barrel pose a real risk to the world economy. "Were $100/bbl oil to become entrenched in 2011, that would risk pushing the [oil burden] figure through 5%," IEA said in its monthly Oil Market Report (OMR), released on January 18---please read about the oil burden, here. Please see Libya's oil and gas profile, here. -- D.R.)
Tuesday, February 22, 2011
IEA Facts in Brief: Libya
IEA website, Feb 21, 2011
A look at the supply of oil and gas from the North African nation.
Libya is a net exporter of oil, having sent abroad some 1.49 million barrels per day (mb/d) in January 2011. Europe receives more than 85 percent of Libya’s crude exports, while about 13 percent heads east of Suez. Libya also produces some 15 bcm/y of gas, a third of which is domestically consumed. Roughly 45% of domestic electricity is generated by natural gas. In 2010, Libya exported 1.2 mb/d of crude oil to IEA countries, of which 376,000 b/d or more than 30% went to Italy. France, Germany and Spain are also significant buyers.
Click here to see the Facts on Libya: oil and gas
(Libya's proven oil reserves of 46.4 billion barrels, the biggest in Africa, are the ninth largest in the world, as of Jan 1, 2011---please see my post "World's Top 22 Oil Reserves Holders, Jan 1, 2011," here. However, with its proven natural gas reserves of 54.68 trillion cubic feet (tcf), Libya ranks only 22nd---using OGJ data---among the world's largest proven gas reserves holders, as of Jan 1, 2011---please see my post "World's Top 22 Natural Gas Proven Reserve Holders, Jan 1, 2011," here. For information on Libya's oil and gas, please see also Economist Intelligence Unit---EIU---"Libya Economy: Oil Trouble," Feb 22, 2011, here. -- D.R.)
A look at the supply of oil and gas from the North African nation.
Libya is a net exporter of oil, having sent abroad some 1.49 million barrels per day (mb/d) in January 2011. Europe receives more than 85 percent of Libya’s crude exports, while about 13 percent heads east of Suez. Libya also produces some 15 bcm/y of gas, a third of which is domestically consumed. Roughly 45% of domestic electricity is generated by natural gas. In 2010, Libya exported 1.2 mb/d of crude oil to IEA countries, of which 376,000 b/d or more than 30% went to Italy. France, Germany and Spain are also significant buyers.
Click here to see the Facts on Libya: oil and gas
(Libya's proven oil reserves of 46.4 billion barrels, the biggest in Africa, are the ninth largest in the world, as of Jan 1, 2011---please see my post "World's Top 22 Oil Reserves Holders, Jan 1, 2011," here. However, with its proven natural gas reserves of 54.68 trillion cubic feet (tcf), Libya ranks only 22nd---using OGJ data---among the world's largest proven gas reserves holders, as of Jan 1, 2011---please see my post "World's Top 22 Natural Gas Proven Reserve Holders, Jan 1, 2011," here. For information on Libya's oil and gas, please see also Economist Intelligence Unit---EIU---"Libya Economy: Oil Trouble," Feb 22, 2011, here. -- D.R.)
Sunday, February 20, 2011
Top 10 Largest Refining Companies in Asia, the USA and Western Europe -- OGJ
by David Rachovich
Largest Refining Companies in Asia, the USA and Western Europe
Region
|
Rank
|
Company
|
No. of Refineries
|
Crude Capacity, barrels per calendar day (b/cd)*
|
Asia
| ||||
1.
|
Sinopec (China)
|
27
|
3,971,000
| |
2.
|
CNPC (China)
|
25
|
2,615,000
| |
3.
|
ExxonMobil (USA)
|
10
|
1,937,500
| |
4.
|
JX Nippon Oil & Energy Corp. (Japan)
|
7
|
1,423,200
| |
5.
|
Royal Dutch Shell PLC (NL/UK)
|
13
|
1,324,875
| |
6.
|
Indian Oil Co. Ltd. (India)
|
11
|
1,274,293
| |
7.
|
Reliance Industries Ltd. (India)
|
2
|
1,240,000
| |
8.
|
Pertamina (Indonesia)
|
8
|
1,011,825
| |
9.
|
SK Corp. (South Korea)
|
1
|
817,000
| |
10.
|
Chinese Petroleum Corp. (CPC, Taiwan)
|
3
|
770,000
| |
USA
| ||||
1.
|
ConocoPhillips (USA)
|
13
|
2,226,200
| |
2.
|
ExxonMobil Corp. (USA)
|
7
|
2,043,000
| |
3.
|
Valero Energy Corp. (USA)
|
12
|
1,999,660
| |
4.
|
BP PLC (UK)
|
6
|
1,476,575
| |
5.
|
Marathon Oil Corp. (USA)
|
7
|
1,188,000
| |
6.
|
Royal Dutch Shell PLC (NL/UK)
|
8
|
971,250**
| |
7.
|
Chevron Corp. (USA)
|
5
|
941,000
| |
8.
|
PDVSA (Venezuela)
|
4
|
849,400***
| |
9.
|
Sunoco Inc. (USA)
|
4
|
825,000
| |
10.
|
Flint Hills Resources (USA)
|
3
|
816,525
| |
Western Europe
| ||||
1.
|
Total SA (France)
|
15
|
2,121,085
| |
2.
|
ExxonMobil Corp. (USA)
|
9
|
1,668,000
| |
3.
|
Royal Dutch Shell PLC (NL/UK)
|
11
|
1,551,801
| |
4.
|
Agip Petroli SPA (Italy)
|
10
|
876,117
| |
5.
|
BP PLC (UK)
|
8
|
868,954
| |
6.
|
Repsol YPF SA (Spain)
|
5
|
709,200
| |
7.
|
TUPRAS (Turkey)
|
4
|
613,275
| |
8.
|
ConocoPhillips (USA)
|
4
|
610,125
| |
9.
|
Petroplus (Switzerland)
|
5
|
581,000
| |
10.
|
CEPSA (Spain)
|
3
|
427,000
| |
Notes: In table above, Shell exchanged positions with JX Nippon Oil and Indian Oil Co. Ltd. moved up in the Asia list (9 to 6); for the USA, Valero moved to No. 3 from No. 2 on the strength of closings or sales (please read notes here). ExxonMobil moved up to No. 2; Petroplus in Western Europe dropped to 9 from 6. – Please read Warren R. True and Leena Koottungal, "Global Capacity Growth Slows, But Asian Refineries Bustle," OGJ, Dec 6, 2010.
*Includes partial interests in refineries not wholly owned by the company.
**Includes Shell's stakes in Motiva and its 50% stake in the Deer Park, Texas, refinery.
***Consists of PDVSA's ownership of Citgo and its 50% stake in the ExxonMobil Chalmette, Louisiana, refinery.
Source: Oil & Gas Journal, Dec 6, 2010.
(Also, please see my post "World's Top 25 Largest Refining Companies, Jan 1, 2011 -- OGJ," and Aaron and David Rachovich, "World's Top 21 Largest Oil Refineries -- OGJ." Furthermore, please see "Top 28 Largest Refineries in the U.S. as of Jan 1, 2011 -- EIA," and "Top 20 Largest Refining Companies/Refiners in the U.S. as of Jan 1, 2011." Update: "Top 10 Largest Refining Companies in Asia," Feb 13, 2012 -- D.R.)
(Also, please see my post "World's Top 25 Largest Refining Companies, Jan 1, 2011 -- OGJ," and Aaron and David Rachovich, "World's Top 21 Largest Oil Refineries -- OGJ." Furthermore, please see "Top 28 Largest Refineries in the U.S. as of Jan 1, 2011 -- EIA," and "Top 20 Largest Refining Companies/Refiners in the U.S. as of Jan 1, 2011." Update: "Top 10 Largest Refining Companies in Asia," Feb 13, 2012 -- D.R.)
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