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    Maritime Dispute Could Hamper Tullow’s TEN Project (Monday, 2 March 2015)

    1 Jan 1970, 12:00 am
    Tullow Oil, an independent oil company with oil fields offshore W. Africa, has been informed by the Government of Ghana that Côte d’Ivoire has applied for provisional measures to be ordered in Ghana’s maritime boundary dispute with Côte d’Ivoire which is in arbitration before a Special Chamber of the International Tribunal of the Law of the Sea (ITLOS) in Hamburg.Côte d’Ivoire has requested from the International Tribunal of the Law of the Sea to order Ghana to suspend ongoing exploration and exploitation operations in the disputed area in which Tullow’s Tweneboa, Enyenra, and Ntomme (TEN) development project is situated until ITLOS gives its full verdict which is expected towards the end of 2017.According to Tullow, a decision on this application for provisional measures should be handed down before the end of April 2015.This arbitration was initiated by Ghana in 2014 in an effort to resolve a dispute with regard to the maritime boundary between Ghana and Côte d’Ivoire.Strong case for GhanaTullow says that it has been informed by external counsel is that Ghana has a strong case under international law that the current boundary location, which follows an equidistance line, will be upheld by ITLOS in accordance with the Law of the Sea Convention to which both states are party.Tullow has said that work on the TEN project continues and remains on schedule and on budget for first oil in mid-2016, Tullow has said.Aidan Heavey, Chief Executive Officer of Tullow Oil, commented today: “Tullow has long had interests in and strong relationships with both Ghana and Côte d’Ivoire and we have conducted our operations in both countries in line with our obligations as a contractor under our Petroleum Agreements and in accordance with international operating standards.“Although the arbitration process allows for an application of provisional measures, it is our view that it is in the best interest of all parties that the TEN project continues to move ahead without delay and unencumbered by legal tactics of this nature.”Source: www.offshoreenergytoday.comPlease leave comments and feedback below

    Maersk Voyager Drillship Hired for Ghana Exploration (Monday, 2 March 2015)

    1 Jan 1970, 12:00 am
    Maersk Drilling has been awarded a contract from eni Ghana Exploration and Production Ltd., an Eni subsidiary, for employment of the newbuild drillship Maersk Voyager.The firm contract period is 3.5 years with an option to extend by one year. The total estimated revenue from the firm contract is $545 million including mobilisation and escalations. Maersk Voyager will work on the Offshore Cape Three Points (OCTP) Project offshore Ghana with expected beginning in July 2015.“We are very pleased to be chosen by eni and its partners Vitol and GNPC for this project offshore Ghana and we look forward to working together with the OCTP JV over the next 3.5 years.“West Africa has been a strategic focus area for Maersk Drilling, since we embarked on our deepwater expansion, and with this contract we expand our presence in the promising West African deepwater market,” says Claus V. Hemmingsen, CEO in Maersk Drilling and member of the Executive Board in the Maersk Group.Maersk Voyager is the last in a series of four ultra deepwater drillships in Maersk Drilling’s rig fleet. The rig was delivered on February 6, 2015 from the Samsung Heavy Industries (SHI) shipyard in Geoje-Si in South-Korea. The four drillships represent a total investment of $2.6bn.Also, it has been announced today that the Maersk Venturer drillship will be drilling offshore the Philippines, under a contract with Otto Energy.Source: www.offshoreenergytoday.comPlease leave comments and feedback below

    Gassco Officially Takes Over Knarr Pipeline (Monday, 2 March 2015)

    1 Jan 1970, 12:00 am
    Norway’s Gassco has officially taken over as operator of the Knarr pipeline, which will transport rich gas to the Shell-Esso Gas and Liquids (Segal) system and St Fergus in Scotland.Knarr is a gas and oil field located about 100 kilometres north of Statfjord in the northern North Sea.“We’ve had a close and good collaboration with Knarr operator BG Norge Ltd throughout the process of preparing the pipeline for operation,” reports Svein Birger Thaule, executive vice president for asset management at Gassco.“The next milestone now is to complete emptying water from the pipeline and start filling it with gas. Start-up is expected during the spring.”Gassco became operator of the Knarr Gas Pipeline Joint Venture on 1 March, which owns the 12-inch pipeline, and also has technical responsibility for its operation.Tied into the existing Far North Liquids and Associated Gas System (Flags), the new 106-kilometer rich gas pipeline has a technical capacity of 1.7 million standard cubic meters per day.Source: www.offshoreenergytoday.comPlease leave comments and feedback below

    Double Win for Olympic (Monday, 2 March 2015)

    1 Jan 1970, 12:00 am
    Norway’s Olympic Ship AS has signed a contract for M/V Olympic Taurus. Olympic has also inked a deal with Technip for M/V Olympic Challenger.Olympic was awarded a new contract for 4+1 months with “an international customer” for M/V Olympic Taurus. According to the company, the vessel will be doing construction work in Argentina and the contract starts immediately.Olympic Taurus is a Multipurpose Offshore Vessel of a MT6015 design with diesel electric propulsion, low fuel consumption and high flexibility. The vessel is equipped with helideck and Ahc crane was installed in Q2 2013.Olympic ChallengerFurthermore, Technip declared their second annual option for M/V Olympic Challenger.The vessel now has firm work until August 2016.According to Olympic’s data, Olympic Challenger is an ROV Support Vessel designed with focus on good sea keeping abilities and excellent station keeping performances. The company says that the vessel is environmental friendly with focus on low fuel consumption.Source: www.offshoreenergytoday.comPlease leave comments and feedback below

    LetterOne buys RWE Dea (Monday, 2 March 2015)

    1 Jan 1970, 12:00 am
    The LetterOne Group and RWE AG today completed RWE’s sale of RWE Dea AG to LetterOne. In January, both parties had announced their plans to complete the transaction at the beginning of this month.The agreed value of the deal is around €5.1 billion based on current exchange rates. Due to exchange rate fluctuations, this is a bit higher than the amount agreed on when the sale was announced in January.Peter Terium, CEO of RWE AG: “The sale of RWE Dea demonstrates that even in difficult conditions, we continue to realize our plans. Both parties negotiated good value for money, and RWE can now focus fully on its core business.”He continued by saying that the takeover was not only an important milestone for the RWE Group but that it was beneficial for all involved – including Dea and its workers.“‘Dea gets a new owner who wants to invest long term in the oil and gas production business and will guide the company into a positive future.Mikhail Fridman, Chairman of LetterOne: “We are delighted to have completed the acquisition of Dea. We now look forward to working with Dea’s management and staff. Our ambition is to develop and grow Dea. We are convinced that the current macroeconomic environment and the low oil price, give us an opportunity to achieve our ambition.”What now with RWE Dea UK?It is unclear what the transaction means for the RWE Dea UK, a British subsidiary of RWE Dea, which owns twelve producing North Sea oil and gas fields.The UK Energy Secretary Edward Davey has warned about the effect that possible future sanctions imposed on LetterOne, and its Russian owners, may have on the continued operation of these twelve fields and the serious health and safety and environmental risks that may result.Thus, in a statement issued Friday, February 28, Davey said he the proposal does not adequately and surely alleviate the concerns about the effect of potential sanctions. He said he had notified the companies involved that if the proposed acquisition were to proceed in its current form, he would be minded to require the companies to arrange for a further sale to a suitable third party.Source: www.offshoreenergytoday.comPlease leave comments and feedback below

    Number of UKCS Wells on Decrease (Monday, 2 March 2015)

    1 Jan 1970, 12:00 am
    The low oil price is expected to dramatically impact O&G activity on the UKCS, said Douglas Westwood in its DW Monday Report. Most notably, the number of wells drilled will decrease – particularly E&A wells.In 2014, drilling campaigns were significantly smaller than forecast – only 14 exploratory wells were drilled from an anticipated 25. This is the lowest number since 1970 and with the current oil price an increase is highly unlikely, DW explains.However, according to DW, production is expected to be maintained over the short to mid-term, bolstered by sanctioned projects. In the meantime, operators are seeking to control costs – BP and Talisman have recently announced large job cuts and many high Capex developments will face delays.Despite the downturn, the 28th licensing round (November 2014) appears to indicate continued Operator interest, DW noted. DECC awarded a total of 134 licences – fewer than the record 27th round in 2012 – but still demonstrating the ongoing attractiveness of the region. This does not mean drilling will return to higher levels: the majority of licences were awarded on the basis of further analysis of seismic data. Overall, oil companies committed to just five firm wells and four contingent wells. Given the declining oil price and current unattractive fiscal regime, a lack of commitment from oil companies is to be expected, DW further writes. However, the lack of drilling activity still represents a significant concern for the UK industry and encouraging companies into drilling will require careful restructuring of both the fiscal and regulatory framework, said DW.Chancellor George Osborne, in his Autumn Statement, announced plans to revise the fiscal regime and appoint a new regulator. However, DW says that given the steep decline in oil price, more needs to be done, particularly on taxation – indeed Lord John Browne recently suggested cutting through the tax complexity and putting it onto a corporation tax basis. However, much depends on the outcome of the general election – anything but a win for Conservatives may delay much needed reforms and suppress the UKCS O&G industry further, DW concluded.Source: www.offshoreenergytoday.comPlease leave comments and feedback below

    Aberdeen Host Meeting for Oil and Gas Workers Effected by Downturn (Monday, 2 March 2015)

    1 Jan 1970, 12:00 am
    A jobs meeting has been organised for workers whose livelihoods have been put at risk by the oil and gas downturn.The Scottish Government’s redundancy support service Pace will host the meeting at Pittodrie stadium in Aberdeen next month.A dramatic drop in the value of oil has created widespread uncertainty in the North Sea sector, which employs 225,000 people nationwide.BP, Shell, Schlumberger, Talisman Sinopec, Chevron, and ConocoPhillips have all announced job cuts in recent months and several firms are considering major changes to offshore shift patterns.Energy minister Fergus Ewing said: “There is a real risk that the current oil price could lead to the premature decommissioning of assets and the loss of highly skilled workers, which is why the UK Government urgently needs to deliver tax relief to the industry to protect jobs and investment.“But we also need to provide support and information to those who may be facing uncertainty at the moment over their future job prospects.“I urge all workers who have recently been made redundant - or who are concerned about redundancy - to attend and ensure they access the support available.”The event on March 25 has been organised in partnership with the Energy Jobs Taskforce, which includes representatives from Oil and Gas UK, Wood Group, BP, Schlumberger, Aker, Taqa, and the Oil and Gas Authority.Source: news.stv.tvPlease leave comments and feedback below

    Oil Drops Under $62 due to Strong Dollar and Libyan Output (Monday, 2 March 2015)

    1 Jan 1970, 12:00 am
    Oil dropped more than 1 percent on Monday, with Brent slipping under $62 a barrel, depressed by a stronger dollar and a rise in Libyan crude output.The dollar hit an 11-year high against a basket of currencies after a rate cut in China dented the Chinese yuan and also hit emerging Asian currencies.Brent crude hit a low of $61.70 a barrel and was at $61.90 by 6 a.m. ET, down 68 cents. Front-month Brent jumped 18 percent in February, the largest monthly rise since May 2009.U.S. crude was down 55 cents to $49.21 a barrel.Disruption to oil supplies from members of the Organization of the Petroleum Exporting Countries (OPEC) has helped support crude with lower output from Libya and Iraq in the first couple of months of this year.But output from several OPEC countries may be recovering.Libya's oil production has now recovered to more than 400,000 barrels per day (bpd), officials said."Libyan production is up and Iraqi exports are on the rise," said Tamas Varga, oil analyst at London brokerage PVM Oil Associates, saying crude markets were likely to fall further.Carsten Fritsch, senior oil and commodities analyst at Commerzbank in Frankfurt, agreed, saying much of the recent strength in oil had been due to speculative buying."All in all the market is still over-supplied by a wide margin," Fritsch told Reuters Global Oil Forum. "We expect Brent to come under pressure again in Q2."U.S. oil markets are particularly weak with a U.S. refinery strike denting demand for crude and domestic production still increasing, despite reports that the number of exploration rigs operating in North America is falling due to lower oil prices.The number of oil rigs fell by 33 last week to 986, the smallest drop this year, a survey showed.These diverging trends helped stretch the premium for Brent over U.S. crude to its widest since January 2014 on Friday at $13 a barrel.Technical charts point to a further widening of the spread to $16.98 in the next three months, Reuters market analyst Wang Tao said.Source: www.reuters.comPlease leave comments and feedback below

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