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    Repsol Reports Record Production in Bolivia (Tuesday, 24 November 2015)

    1 Jan 1970, 12:00 am
    Repsol chairman, Antonio Brufau, and the president of Bolivia, Evo Morales, have announced the conclusion of the third phase of the Margarita-Huacaya project, the field with the largest production in the history of Bolivia. The project has reached a record output of 19 MMcmgd, equivalent to more than 30% of Bolivia's total.Morales and Brufau made the announcement at Margarita-Huacaya field during a visit to evaluate the development of drilling operations and preparation for further exploration activities.The development plan for the Margarita-Huacaya area, located in the department of Tarija in southern Bolivia, is a key project for Repsol. There are currently seven producing wells, with an additional one expected to come on stream before the end of this year.The project, developed by Caipipendi Consortium, is operated by Repsol with a 37.5% share together with partners BG (37.5%) and PAE E&P (25%). Repsol had committed to reaching production of 18 MMcmgd by January 2016, a target that was achieved almost a year early, in February 2015.Repsol has numerous E&P projects in Bolivia. In May, the company and the state-owned oil company YPFB Andina made the most significant oil discovery in the country in more than two decades. The discovery, made in Boquerón field, will begin production in 2017 and will reach 6,500 bopd in 2019.Repsol holds the rights to 29 blocks in the country: four exploration and 25 development blocks. Repsol’s production in Bolivia is approximately 40,000 boed, derived mostly from the Margarita-Huacaya block.Source: www.worldoil.comPlease leave comments and feedback below

    Seadrill Posts $1.9 billion Net Loss on Impairments (Tuesday, 24 November 2015)

    1 Jan 1970, 12:00 am
    Offshore drilling contractor Seadrill on Tuesday reported a drop in revenue and net income for the third quarter of 2015.Revenues fell to $985 million from around $1.29 billion a year ago due to increased idle time and lowered dayrate on several rigs.Seadrill also reported a net loss of $1.9 billion, due to a $1.8 billion non-cash impairment charges to investments and goodwill.The company explained that $1.1 billion relates to the write-down to fair value of investments in Seadrill Partners, the initial recognition of which resulted in a non-cash gain on deconsolidation of $2.3 billion in January 2014.Offshore drillers have been negatively affected by low oil and gas prices, wich moved oil and gas companies to scale back their exploration projects, and reduce the need for drilling rigs.Furthermore, the depressing drilling market is hit by the oversupply of drilling rigs, with many more scheduled for delivery. Thus the drilling companies, such as Seadrill and Transocean, for example, have been in talks with the shipyards to delay newbuild deliveries until the market rebounds.Per Wullf, CEO and President of Seadrill Management Ltd., said on Monday: „We have had a strong operating quarter and we continue to make good progress on our cost savings program. Our discussions with the shipyards continue to be constructive regarding deferrals.“Seadrill currently has 14 rigs under construction. During the third quarter the company canceled the construction contract for the West Mira semi-submersible drilling rig, citing Seadrill currently has 14 rigs under constructionWullf said the company expected the market conditions to remain challenging through 2016 and “the coming quarters will provide insight into the 2017 environment.”He added it was important to recognize that “we are in a cyclical business.”Wullf said: “The longer this downturn lasts, the more robust the recovery will be when it happens. Seadrill is in a position to capitalize on the upturn with the most modern fleet and world class operations.”During the third quarter, Seadrill owned 19 floaters and 19 jack-up rigs in Northern Europe, US Gulf of Mexico, Mexico, South America, Canada, West Africa, Middle East, Southeast Asia and Australia. Also, Seadrill manages eleven Seadrill Partners rigs comprised of eight floaters and three tender rigs, and five jack-up rigs now owned by the SeaMex Joint Venture. Seadrill also managed one tender rig owned by SapuraKencana.Source: www.offshoreenergytoday.comPlease leave comments and feedback below

    Oil and Gas Merger on the Cards in the Falkland Islands (Tuesday, 24 November 2015)

    1 Jan 1970, 12:00 am
    Rockhopper and Falkland Oil & Gas Limited (FOGL), two oil and gas companies with assets offshore the Falkland Islands, are contemplating a merger.The boards of the two companies have reached agreement on the terms of a recommended all-share merger to be effected by means of a Court-sanctioned scheme of arrangement.According to a joint statement by the two firms, the merger would create the largest North Falkland Islands licence and discovered resource holder with a material working interest in all key licences.Under the agreement, the scheme shareholders would receive 0.2993 Rockhopper shares for each share they own in FOGL. According to FOGL, the merger values entire issued and to be issued share capital of FOGL at approximately £57.1 million, and each FOGL Share at 10.70 pence. This represents an 11 per cent premium to FOGL’s closing share price of 9.60 pence on November 23, 2015.Commenting on the potential merger, Pierre Jungels, Chairman of Rockhopper said: “This transaction enhances Rockhopper’s position in the Falkland Islands, with the largest regional acreage position and most discovered resources, coupled with a strong balance sheet. By combining Rockhopper and FOGL, we shall create a more coherent licence ownership structure in the North Falkland Basin, driven by a technically accomplished organisation with a strong exploration and appraisal track record, well positioned to access the opportunities in this emerging hydrocarbon province.”He said that the Rockhopper Board believed the merger would add further momentum to the on-going work to progress the development of discovered resources in the area towards commerciality.Upon the merger becoming effective the current shareholders of Rockhopper will own approximately 65 percent of the combined group’s issued share capital and FOGL Shareholders will own approximately 35 percent.John Martin, Chairman of FOGL said: “FOGL has built a significant portfolio of discovered resources in the Falkland Islands region despite the challenging market conditions. The enhanced scale, capabilities and financial position of the merged FOGL and Rockhopper entity will provide FOGL Shareholders with a platform from which to bring these quality resources into development. As a result, the FOGL Board intends unanimously to recommend that FOGL Shareholders accept the proposed transaction.”The deal is subject to, among other things, approvals by shareholders of both companies, and the court’s approval of the scheme arrangement.Source: www.offshoreenergytoday.comPlease leave comments and feedback below

    Greenpeace Activists Arrested After Boarding Oil Exploration Vessel (Tuesday, 24 November 2015)

    1 Jan 1970, 12:00 am
    All five Greenpeace activists that boarded the New Zealand Government’s oil exploration ship on Tuesday morning, have been arrested.Greenpeace shared the news of the arrests via Twitter saying: “The final three #climbitchange climbers have been arrested. Proud of our people. Over to you to demand climate action #peoplesclimatemarch!!”Greenpeace activists board oil exploration vessel in New ZealandFive Greenpeace activists boarded a New Zealand Government ship in Wellington Tuesday morning and locked themselves to it, claiming the vessel has been searching for oil.Greenpeace says the NIWA taxpayer-funded climate and ocean research boat, Tangaroa, has been refitted at a cost of $24 million for oil and gas exploration, and is now surveying for oil on the East Coast of the North Island on behalf of petroleum giants Statoil and Chevron.In response, three activists got onboard the vessel and locked themselves to the top of its mast, while a further two are secured to the deck.They unfurled a sail-shaped banner from the mast, reading: “Climb it Change”, while the remaining activists have attached other banners all over the boat with the same message.According to Greenpeace, the Tangaroa had been preparing to leave Wellington Harbour, where it had made a pit stop, to continue oil exploration.Greenpeace has accused the New Zealand Government’s “obsessive” oil agenda, “which contradicts climate science which says most of the Earth’s oil needs to stay in the ground if we want to avoid catastrophic climate change.”“The Tangaroa is trying to find oil, which the industry then wants to burn, heating up our planet. This will cause global suffering, including for thousands of families in New Zealand and the Pacific who could be forced from their homes by extreme weather and rising seas,” Greenpeace climate campaigner Steve Abel says.Abel says “Climb it Change” is a nod to civil disobedience and the fact that people power and action is what is stopping the fossil fuel industry all over the world.Source: www.offshoreenergytoday.comPlease leave comments and feedback below

    North Sea Oil Giant Fined £22,500 Over Biggest Leak in Decade (Tuesday, 24 November 2015)

    1 Jan 1970, 12:00 am
    Energy giant Shell has been fined £22,500 over the largest North Sea oil leak in more than a decade.The equivalent of more than 1300 barrels of oil spilled into the sea from a ruptured pipe below the Gannet Alpha in August 2011.The UK Government carried out an investigation into the incident and Shell faced charges over the spill at Aberdeen Sheriff Court on Tuesday.Shell was able to bring the leak 112 miles east of Aberdeen under control, but then faced a smaller leak which was spilling around 80 gallons of oil a day.It cost Shell 45m to clean up the leak and another 100m to repair the damage to its infrastructure. The maximum the court could have fined the firm was 30,000.WWF Scotland director Lang Banks described the fine as a "a drop in the ocean".He added: "The paltry size of the fine handed down will do little to deter future poor behaviour by it or the rest of the oil and gas industry. "Despite being responsible for worst North Sea spill in a decade, the level of the fine is literally a drop in the ocean when compared to the billions earned by Shell annually."When it comes to protecting the marine environment and its own employees it's absolutely right that oil companies are prosecuted for their mistakes and that lessons are also learned by the wider industry. "It is therefore disappointing that the fine was not much larger in this case."Shell reported that there was no evidence wildlife had been affected by the subsea leak.Shell director Paul Goodfellow added: "We deeply regret the Gannet spill and accept the fine which has been handed down to us. We know that no spill is acceptable. "Safety is at the heart of our operations and following this incident, a comprehensive review of our North Sea pipeline system was conducted. "We have learnt lessons from this review and have applied them across our UK operations."Source: news.stv.tvPlease leave comments and feedback below

    Petrobras Strike Over, Estimated Cost 2.29m Barrels in Lost Production (Tuesday, 24 November 2015)

    1 Jan 1970, 12:00 am
    Petrobras revealed on Monday that the recently concluded oil workers strike cost the firm 2.29m barrels of oil and and 48.4 million cubic metres of natural gas in lost production, largely at offshore sites.The strike effectively ended on Friday when a holdout union Sindipetro Norte Fluminense agreed to return to work.The FUP federation, to which Sindipetro NF belongs, had recommended ending the labour action on Saturday 14 November. But Sindipetro NF represents workers responsible for the bulk of the country’s oil and gas output and it wanted a better deal on compensation for the period of the 20-day strike, insisting all strikers be fully paid for the period of the strike. Brazil’s troubled state oil giant had proposed paying for only half of the days workers were on strike.The strike began on November 1 because the unions were unhappy about Petrobras’ austerity measures, especially cutbacks in budget and investment and the planned sell-off of some assets.It is believed to be the most disruptive strike that Petrobras has faced in 20 years. The company is reeling from a huge bribes-for-contracts scandal that has stained its reputation and hammered its bottom line, compounded by the slump in the oil price.Source: splash247.comPlease leave comments and feedback below

    Noble and BG Agree to Partnership in Offshore Cyprus (Tuesday, 24 November 2015)

    1 Jan 1970, 12:00 am
    Noble Energy, Inc., announced today a farm-out agreement for a portion of its interest in Block 12 offshore Cyprus with BG International. BG is acquiring a 35% interest in Block 12, which includes the Aphrodite natural gas discovery, for total cash consideration of $165 million. Aphrodite, discovered in 2011, has gross mean natural gas resources of approximately four Tcf. The transaction has an effective date of April 1, 2015, and is expected to close before the end of 2015. Noble Energy will maintain operatorship of Block 12 with a 35% interest.J. Keith Elliott, Noble Energy's Senior V.P. of Eastern Mediterranean, said, "Entering this upstream partnership with BG in our Cyprus discovery is an important step in moving the project forward for development. BG brings substantial technical, financial and marketing capacity to the partnership. Their longstanding presence and experience in the region are great complements to our own, and we are confident our combined strengths will enhance the value of Block 12. We are continuing to work with the government of Cyprus to finalize Aphrodite development plans. In conjunction with that work, we have recently commenced gas marketing efforts, primarily targeting customers in Egypt, including both domestic purchasers and underutilized liquefied natural gas (LNG) plants."In addition to this transaction, Noble Energy announced the sale of its 47% interest in the Alon A and Alon C licenses offshore Israel, which include the Tanin and Karish fields, to the Delek Group for a total deal value of $73 million. The divestment of interest in these assets is an important step in fulfilling Noble Energy's obligations under the recently-approved Regulatory Framework in Israel and will simplify the ultimate sale of Tanin and Karish to a third party.Completion of both transactions are subject to certain regulatory approvals as well as customary closing conditions and adjustments.Source: www.worldoil.comPlease leave comments and feedback below

    Oil Rises on Middle East Tensions (Tuesday, 24 November 2015)

    1 Jan 1970, 12:00 am
    Oil prices rose on Tuesday as tensions in the Middle East escalated following the downing of a Russian-made fighter jet near the Syrian-Turkish border and a weaker U.S. dollar provided incentive for investors to buy more oil.Brent futures for January LCOc1 were up 44 cents to $45.27 a barrel at 1055 GMT, a 1 percent rise on Monday's close. West Texas Intermediate (WTI) crude CLc1 was up 33 cents at $42.08."News of a military jet crashing in Syria is a reminder that there is still substantial risk in the Middle East," said Bjarne Schieldrop, the Oslo-based chief commodities analyst at SEB.Turkey said it had downed a Russian-made fighter jet near the Syrian border after it violated Ankara's airspace.A weaker U.S. dollar, easing from an eight-month peak against a basket of currencies, also lent support as some investors found it cheaper to buy the dollar-denominated commodity. [FRX/]They also awaited U.S. crude stocks data, with expectations of a small increase.U.S. commercial crude oil stocks likely gained 1.1 million barrels for the week ended Nov. 20, according to a preliminary Reuters survey of five analysts on Monday. A rise would mark a ninth consecutive weekly gain. [EIA/S]Some traders also prepared positions ahead of a long holiday weekend in the United States."There is likely to be a risk premium for the long Thanksgiving weekend," said Olivier Jakob, oil analyst at Petromatrix in Zug, Switzerland.Analysts at BNP Paribas said they expected U.S. WTI crude futures to recover slightly this winter."We still think that a low 40s NYMEX WTI is a floor from which the market can rally through the winter," they wrote in a research note."Thereafter, the summer of 2016 presents down risk for oil prices as OPEC pursues its current policy, U.S. production stabilizes and Iran delivers more barrels to the market."Saudi Arabia led a shift by the Organization of the Petroleum Exporting Countries (OPEC) in November 2014 to defend market share against competing supplies, rather than cut output to prop up prices.The Saudi cabinet said on Monday it was ready to cooperate with OPEC and non-OPEC countries to achieve market stability, days before OPEC meets to review its policy.Source: www.reuters.comPlease leave comments and feedback below

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