Pipeline Magazine - Home Home-RSS Feed Mon, 19 Feb 2018 03:36:43 GMT ADNOC awards offshore concession stake to Cepsa for $1.5 bln https://www.pipelineme.com/regionalinternational-news/regional-news/2018/february/adnoc-awards-offshore-concession-stake-to-cepsa-for-15-bln/ Abu Dhabi National Oil Company (ADNOC) said Sunday it signed a 40-year concession deal with Spain’s Cepsa worth AED 5.5 billion ($1.5 billion) for a 20 per cent stake in its offshore SARB and Umm Lulu concessions. 2018-02-18 https://www.pipelineme.com/regionalinternational-news/regional-news/2018/february/adnoc-awards-offshore-concession-stake-to-cepsa-for-15-bln/

Abu Dhabi National Oil Company (ADNOC) said Sunday it signed a 40-year concession deal with Spain’s Cepsa worth AED 5.5 billion ($1.5 billion) for a 20 per cent stake in its offshore SARB and Umm Lulu concessions.

Capsa’s participation payment also takes into account previous ADNOC investments in the concession area made up of two main fields, in which ADNOC retains a majority 60 per cent stake. The remaining 20 per cent stake in the concession is yet to be announced.

Umm Lulu and SARB is one part of the ADMA offshore concession expiring in March, which was recently split into three new concessions to maximise commercial value, broaden ADNOC’s partner base, expand technical expertise, and enable greater market access. The other two are Lower Zakum and Umm Saif & Nasr.

ADNOC last week awarded a 10 per cent stake in Lower Zakum to an Indian consortium, led by ONGC Videsh.

Cepsa, a Spanish integrated oil and gas company is wholly-owned by Abu Dhabi’s Mubadala Investment Company and operates across the entire oil and gas value chain. The deal underpins ADNOC’s strategy to maximise returns from its resources, expand its downstream business, and retain value for the UAE.

The agreement, which has an effective date of March 9, 2018, was signed by Dr Sultan Ahmed Al Jaber, ADNOC Group chief executive officer, and Pedro Miró, vice chairman and CEO of Cepsa.

H.E. Dr Al Jaber said: “This long-term agreement is a milestone in the development of Abu Dhabi’s integrated oil and gas sector and in the delivery of ADNOC’s 2030 smart growth strategy. This partnership ensures we continue to maximise value from our hydrocarbon resources, in line with the leadership’s directives, by capturing that value and financial return here in the UAE.

“The agreement also reflects ADNOC’s new partnership approach, as we expand and diversify our partner base across ADNOC’s integrated value chain. Reflecting our strategic approach, we are also working with Cepsa to explore expansion opportunities in our downstream business, in the UAE and overseas, that will deliver competitive returns and long term growth opportunities for both parties, and for the UAE.”

Cepsa, which has been operating in the energy sector since 1929, has businesses in over 20 countries across five continents. Its operations span exploration, production, refining, distribution and marketing, chemicals, gas and power, trading, bunkering and renewable energy sources. It is the world’s largest producer of Linear Alkyl Benzene (LAB) and also the leading producer of cumene and the second in phenol and acetone, thanks to its seven chemical plants, in Europe, Asia and the Americas. In 2016 it produced 35.4 million barrels of oil, distilled 158.7 million barrels of crude oil and sold 28.3 million tons of petroleum products.

Miro said: “This concession agreement marks an important moment for Cepsa and our close relationship with ADNOC, with whom we are working with on a number of projects in the upstream, downstream and petrochemical sectors. It will add substantial reserves, in a concession with relatively low production cost, to our portfolio, and will enable us to make considerable strides towards achieving our objectives, as set out in our 2030 Strategic Plan”.

In November 2017, ADNOC and Cepsa signed a framework agreement to evaluate a new world-scale Linear Alkyl Benzene complex in Ruwais, Abu Dhabi. LAB is the most common raw material in the manufacture of biodegradable household and industrial detergents. It is also used in house cleaners, fabric softeners, and soap bars.

]]>
CGG GeoSoftware releases new updates to entire geoscience portfolio https://www.pipelineme.com/tools-and-techpeople/tools-and-tech/2018/february/cgg-geosoftware-releases-new-updates-to-entire-geoscience-portfolio/ CGG GeoSoftware has released new updates across its entire geoscience portfolio from HampsonRussell, Jason, PowerLog, InsightEarth, VelPro, and EarthModel FT solutions. 2018-02-18 https://www.pipelineme.com/tools-and-techpeople/tools-and-tech/2018/february/cgg-geosoftware-releases-new-updates-to-entire-geoscience-portfolio/

CGG GeoSoftware has released new updates across its entire geoscience portfolio from HampsonRussell, Jason, PowerLog, InsightEarth, VelPro, and EarthModel FT solutions.

Recent developments bring exciting new capabilities within each individual solution while offering increasingly integrated workflows from geology and geophysics to reservoir engineering. As an example, the new ‘Load-Once-Use-it-Everywhere’ capability enables Jason users to operate on HampsonRussell seismic stores and vice versa without the need to duplicate, move or reload seismic volumes. This integration unleashes the power of cross-solution workflows.

Kamal Al-Yahya, Senior Vice President, GeoSoftware, CGG, said: “We are committed to delivering continued innovation across our entire portfolio. Our high-end, cross-product workflows enable clients to better understand reservoir properties and how they evolve through the life of the field. Our newest technology and intuitive interfaces reveal key information from geophysical data that helps E&P companies hit drilling targets and improve production of their assets.”

Jason 9.7.1 extends and enhances reservoir characterization capabilities with the integration of a rock physics template in Jason crossplots and interpretation as well as a new functionality for Bayesian facies classification and inversion analysis in facies and fluids probabilities (FFP). Advanced geostatistical reservoir characterization is also now available to extract the full value from seismic data, whether 4D, multicomponent, depth or wide-azimuth. The Jason Organizer makes it easier to organize standard workflows, as well as develop and share client-specific ones.

For geophysical interpretation and analysis, HampsonRussell 10.3 offers much faster loading and processing of huge data volumes than previous versions, while pre-stack inversion now requires fewer iterations, dramatically reducing turnaround. Other features include new functionality for quick AVO modelling with rock physics inputs, horizontal well correlation, a new process for de-spiking, and new advanced spectral decomposition attributes for pre-inversion analysis and improved resolution.

PowerLog 9.7.1, GeoSoftware’s petrophysical solution for well log analysis, includes an improved well selector and better data management. Windows-linking lets users set up preferred interpretation workflows including multiple viewers and processors to vastly improve analysis of large data sets. Implementation of a Python Extensions plug-in architecture is a game-changer for developing custom interpretation modules.  

InsightEarth accelerates 3D visualization and interpretation. InsightEarth 3.4 allows streaming of large seismic volumes, so that users can work on large data sets. Other enhancements include a redesigned trim-and-seal process, new spectral decomposition algorithms, and better quality and tightness of fault images from Automated Fault Extraction.

VelPro is a flexible and comprehensive post-stack velocity modeling application and VelPro 9.7.1 now offers depth-to-depth calibration, four major modelling workflows in one solution, and post-stack depth migration.

EarthModel FT for rapidly building geological models incorporates all field data and connects to flow simulation for improved drilling and production planning. EarthModel 9.7.1 offers a new grid format and a new export format for 3D properties to ease connection to fracture simulation workflows.

has released new updates across its entire geoscience portfolio from HampsonRussell, Jason, PowerLog, InsightEarth, VelPro, and EarthModel FT solutions.

Recent developments bring exciting new capabilities within each individual solution while offering increasingly integrated workflows from geology and geophysics to reservoir engineering. As an example, the new ‘Load-Once-Use-it-Everywhere’ capability enables Jason users to operate on HampsonRussell seismic stores and vice versa without the need to duplicate, move or reload seismic volumes. This integration unleashes the power of cross-solution workflows.

Kamal Al-Yahya, Senior Vice President, GeoSoftware, CGG, said: “We are committed to delivering continued innovation across our entire portfolio. Our high-end, cross-product workflows enable clients to better understand reservoir properties and how they evolve through the life of the field. Our newest technology and intuitive interfaces reveal key information from geophysical data that helps E&P companies hit drilling targets and improve production of their assets.”

Jason 9.7.1 extends and enhances reservoir characterization capabilities with the integration of a rock physics template in Jason crossplots and interpretation as well as a new functionality for Bayesian facies classification and inversion analysis in facies and fluids probabilities (FFP). Advanced geostatistical reservoir characterization is also now available to extract the full value from seismic data, whether 4D, multicomponent, depth or wide-azimuth. The Jason Organizer makes it easier to organize standard workflows, as well as develop and share client-specific ones.

For geophysical interpretation and analysis, HampsonRussell 10.3 offers much faster loading and processing of huge data volumes than previous versions, while pre-stack inversion now requires fewer iterations, dramatically reducing turnaround. Other features include new functionality for quick AVO modelling with rock physics inputs, horizontal well correlation, a new process for de-spiking, and new advanced spectral decomposition attributes for pre-inversion analysis and improved resolution.

PowerLog 9.7.1, GeoSoftware’s petrophysical solution for well log analysis, includes an improved well selector and better data management. Windows-linking lets users set up preferred interpretation workflows including multiple viewers and processors to vastly improve analysis of large data sets. Implementation of a Python Extensions plug-in architecture is a game-changer for developing custom interpretation modules.  

InsightEarth accelerates 3D visualization and interpretation. InsightEarth 3.4 allows streaming of large seismic volumes, so that users can work on large data sets. Other enhancements include a redesigned trim-and-seal process, new spectral decomposition algorithms, and better quality and tightness of fault images from Automated Fault Extraction.

VelPro is a flexible and comprehensive post-stack velocity modeling application and VelPro 9.7.1 now offers depth-to-depth calibration, four major modelling workflows in one solution, and post-stack depth migration.

EarthModel FT for rapidly building geological models incorporates all field data and connects to flow simulation for improved drilling and production planning. EarthModel 9.7.1 offers a new grid format and a new export format for 3D properties to ease connection to fracture simulation workflows.

]]>
Novacavi launches new ROV dynamic cables https://www.pipelineme.com/tools-and-techpeople/tools-and-tech/2018/february/novacavi-launches-new-rov-dynamic-cables/ Novacavi has released a matt PUR finished version of ROV dynamic cables that the firm says will improve operational efficiency and maneuverability both in water and on deck. 2018-02-18 https://www.pipelineme.com/tools-and-techpeople/tools-and-tech/2018/february/novacavi-launches-new-rov-dynamic-cables/

Novacavi has released a matt PUR finished version of ROV dynamic cables that the firm says will improve operational efficiency and maneuverability both in water and on deck.

In a press statement, Novacavi said the key features of the new version were a sliding and less sticky performance especially when on winches out of the water. This customised extensive range of matt PUR sheathed cables is conceived to improve handling and avoid clinginess in use while guaranteeing same moulding technical compatibility and steady abrasion resistance characteristics of the glossy sheathed cable version.

Engineered and manufactured for reliability all of Novacavi’s ROV custom cables focus on addressing growing needs in ROV technology development.

]]>
MENA security spending on the rise as risk awareness expands https://www.pipelineme.com/interviewsfeatures/interviews/2018/february/mena-security-spending-on-the-rise-as-risk-awareness-expands/ Gartner’s senior research analyst Sam Olyaei speaks to Pipeline Magazine about the company’s new research on security investment and insight into the Middle East oil and gas industry security risks 2018-02-18 https://www.pipelineme.com/interviewsfeatures/interviews/2018/february/mena-security-spending-on-the-rise-as-risk-awareness-expands/

Gartner’s senior research analyst Sam Olyaei speaks to Pipeline Magazine’s Nadia Saleem about the company’s new research on security investment and insight into the Middle East oil and gas industry security risks

Security services will continue to be the fastest growing segment in line with global trends, especially IT outsourcing, consulting, and implementation services, Gartner said in a new research. The growth for security services will be driven by ongoing skills shortages in the information security domain as well as increased awareness of threats.

In a region where oil and gas industry is critical to many local economies, convergence of operational technology (OT), Internet of Things (IoT), and IT is pushing many organisations to start considering how to handle the potential new security vulnerabilities created. This will result in additional interest to invest in security products and services to mitigate these new risks that traditional information security practices are not accustomed to, Gartner said.

 

What is Middle East’s portion of the global spend on cyber security investment in 2017? What is driving the growth?

MENA has spent US$1.8 billion in 2017 on security, seeing an 11 percent increase over the year before. Worldwide, there will be a total $86.4 billion spent on IT security in 2017. In MENA, we expect another double-digit per cent growth in the next two years, with risks driving the spending.

IT security risks are a primary driver of security spending in a majority of organisations, especially due to two main factors: an increased awareness of threats, and an ongoing skills shortage in information security. While organisations cannot control the threats, they can control the security risks to their own environment.

As a result, Middle East organisations need to implement a risk-based security program – especially addressing basic security and risk processes. Leaders need to invest in patch management, vulnerability scanning, centralised log management, internal network segmentation, backups, and systems hardening.

Meanwhile, security outsourcing is becoming the largest security service market in 2020, as companies, especially for SMEs that have smaller recruiting budgets and talent pools. The main cause of security outsourcing is that there is a massive talent shortage in security – leading to gaps in implementing security programs, gaps in coverage, stalled projects, and increased risk of breaches. To address the talent need, organisations will need to adopt new recruiting processes. However, with emerging technologies such as the Internet of Things requiring skills that do not exist yet, many organisations are turning to innovations such as advanced analytics, business algorithms, and machine learning to ramp up security processes.

In the convergence of IT and OT with the Internet of Things, and the Industrial Internet of Things, we are seeing both privacy and safety implications. For example, an incident in an oil and gas firm’s IT environment could cause the loss of some data records and potentially a fine. But an incident in the OT environment could potentially cause loss of life or a safety hazard.

 

What is the breakdown for the oil and gas sector specifically?

We don’t publish a figure for this breakdown. Middle East oil and gas companies are investing in cyber security solutions at a higher rate compared to the global average of oil and gas firms.

 

In oil and gas, where are most of the spending focused?

Most of the oil and gas spend is focused on protecting critical infrastructure, securing the convergence of IT/OT/IOT, incidents that if successful can force plant shutdowns, utility interruptions, monetary loss and even human hazard at its extreme.

However spend is mostly focused on perimeter security technologies. There isn’t enough investment in detection/response techniques nor is there in people and process.

 

Where are the vulnerabilities yet to be addressed?

Attackers are using exploits to gain access to critical infrastructure and sensitive data and most of these exploits are either commonly identified or released, or are have been known by the organisation for at least a year. Again the biggest vulnerabilities right now for oil and gas is in its critical infrastructure and OT environment.

 

What is the risk scenario - is it increasing, or becoming more sophisticated?

Threats are always on the rise. In the Middle East we see a combination of monetised and weaponised malware that spreads mainly through phishing and social engineering. The motivation behind these threats can be grouped into either Nation State Attacks/Entities associated with nation states that intend to destruct, or individuals that are looking for monetary value or ransom.

However, it’s important to note that the risk scenario is less about the external threats and more about the specific risks that an organisation itself faces. All enterprises should treat state threats as part of the usual advanced threats. While certain verticals and industries need more focused actions, much of being prepared for state-sponsored threats and ransomware comes down to best-practice level safeguards.

Ransomware can also be prevented across basics such as system patching; EPP updates, configurations, and extensions; endpoint detection and response solutions; network perimeter and segmentation; administrative and system protection; and backups.

 

At what level is awareness for cyber risks and how does the Middle East tend to approach it?

Awareness of cybersecurity risks/attacks is becoming better but the region still lags behind North America and Europe. Cybersecurity is still not a priority for executives/board members and is being treated as a function of IT when in reality it should be a business function.

Similarly, we are not spending enough on people and process. In this region specifically, we try to solve every problem with a technology or a product. We need to educate our people/employees, provide them with the right tools to succeed and formalise processes around these tools. Often times, it is not the lack of spend, but rather the lack of process that causes an incident to wreak havoc.

]]>
Global energy shifts set to transform the Middle East energy sector https://www.pipelineme.com/interviewsfeatures/features/2018/february/global-energy-shifts-set-to-transform-the-middle-east-energy-sector/ Oil rich nations have a window of opportunity to transform and be well positioned to benefit from this shifting global energy landscape, according to recent report “The Great Energy Shift”, produced by global strategic management consultants, A.T. Kearney. 2018-02-18 https://www.pipelineme.com/interviewsfeatures/features/2018/february/global-energy-shifts-set-to-transform-the-middle-east-energy-sector/

Oil rich nations have a window of opportunity to transform and be well positioned to benefit from this shifting global energy landscape, according to recent report “The Great Energy Shift”, produced by global strategic management consultants, A.T. Kearney.

Growing global diversification of the energy mix and an increased share of natural gas, renewables and electrification, is challenging conventional approaches and business models in the energy value chain.

Eduard Gracia, principal at A.T. Kearney said: “Market trends along the energy value chain are dramatically changing the landscape. We expect an energy market characterized by increased demand in addition to increased electrification, supply fragmentation and consumer power. This will over time lead to stabilization of energy prices and a convergence of energy markets”.

According the report, three recommendations which will support oil-rich nations and national oil companies in the region to effectively address the global disruptive changes of the energy sector – embrace renewables; leverage gas reserves and expand down the value chain.

Sean Wheeler, partner, A.T. Kearney said, “Our industry is rapidly changing. Global energy transition will lead to a broader mix of energy sources and a more fragmented supply, also in this region.”

Many of the regional oil players have already initiated projects to prepare for the great energy shift ranging from investments, into solar energy and gas, to increasing downstream oil and gas investments.

Commenting on this strategy, Rudolph Lohmeyer, vice president A.T. Kearney Global Business Policy Council said, “The Middle East enjoys an important advantage due to both its comparatively cheap hydrocarbon reserves and its geographic location. At these times of change, it is key that nations and national oil companies manage uncertainty by applying the disciplines of strategic foresight to their decision-making. This is particularly critical for a sector in which the returns on capital investment unfold over decades.”

The report concludes that oil rich nations must focus their investments on opportunities that leverage their competitive advantages, an educated workforce and the ideal geographic location.

“In a world of accelerating energy transition and cost effective new technologies, gas and renewables will become increasingly important in the global energy mix. This region is strongly positioned to tap into the gas market as well solar opportunities,” said Kurt Oswald, partner A.T. Kearney and board member of the A.T. Kearney Energy Transition Institute.

“In these times, it is critical that governments work together with their national oil companies, energy players and downstream companies to define the best path ahead,” said Bob Willen, managing director, A. T. Kearney Middle East and Global Lead Partner Government and Economic Development Practice, A.T. Kearney.  

]]>
Lukoil production in 2017 up on gas development https://www.pipelineme.com/regionalinternational-news/international-news/2018/february/lukoil-production-in-2017-up-on-gas-development/ Russian oil producer Lukoil said its 2017 hydrocarbon production rose in 2017 on back of gas development projects, but its oil production was down in the fourth quarter. 2018-02-15 https://www.pipelineme.com/regionalinternational-news/international-news/2018/february/lukoil-production-in-2017-up-on-gas-development/

Russian oil producer Lukoil said its 2017 hydrocarbon production rose in 2017 on back of gas development projects, but its oil production was down in the fourth quarter.

Its hydrocarbon production in the fourth quarter of 2017 excluding West Qurna-2 project increased by 2.9 percent quarter-on-quarter to 2,284 thousand barrels of oil equivalent (boe) per day.

On an annual bases, this was up by 2.4 percent year-on-year to 2.234 million boe per day.

In the fourth quarter of 2017, the Lukoil Group’s gas production increased by 12.5 percent quarter-on-quarter to 8.2 billion cubic meters. In 2017 gas production increased by 15.7 percent year-on-year to 28.8 billion cubic meters.

Lukoil said it achieved significant progress in the Uzbekistan gas projects.

In the fourth quarter of 2017 production at Kandym and Gissar projects increased by 30.7 per cent quarter-on-quarter to 2.8 billion cubic meters. The growth was driven by the launch of new gas treatment facilities.

Gas production growth in Russia was mainly attributable to the launch of gas facilities at Pyakyakhinskoe field in January 2017.

Meanwhile, oil production excluding West Qurna-2 project slipped to 85.6 million tonnes in 2017 from 91.99 million tonnes in 2016.  This included fourth quarter production of 21.5 million tonnes.  

Lukoil said its 2017 oil production volumes and dynamics were defined by external limitations of Russian companies’ production volumes.

It produced a 21.2 per cent increase on a quarterly basis from the V. Filanovsky field, outperforming the planned output by 170,000 tonnes to reach 4.6 million tonnes.

It also raised production in a few other fields such as: Timan-Pechora, Yaregskoe, Usinskoe field.

Refinery throughput in the fourth quarter of 2017 was practically flat quarter-on-quarter and amounted to 17.3 million tonnes. Refinery throughput in 2017 increased by 1.8 percent year-on-year to 67.2 million tons.

In Russia, refinery throughput in Russia increased by 3.2 per cent year-on-year, which was mainly due to Volgograd refinery upgrade, as well as scheduled maintenance works at Nizhny Novgorod and Volgograd refineries in 2016.

]]>
Saipem wins $750m Duqm refinery EPC contract https://www.pipelineme.com/regionalinternational-news/regional-news/2018/february/saipem-wins-750m-duqm-refinery-epc-contract/ Italian oil and gas contractor Saipem said Thursday it was awarded a US$750 million engineering contract in Oman by Duqm Refinery and Petrochemical Industries Company. 2018-02-15 https://www.pipelineme.com/regionalinternational-news/regional-news/2018/february/saipem-wins-750m-duqm-refinery-epc-contract/

Italian oil and gas contractor Saipem said Thursday it was awarded a US$750 million engineering contract in Oman by Duqm Refinery and Petrochemical Industries Company.

The contract involves engineering, procurement, construction and commissioning under Package 3 offsite facilities in the framework of the Duqm refinery development near Oman’s north east coast, the company said in a statement.

The 230,000 barrels-per-day Duqm Refinery and Petrochemical Industries Company is a joint venture between the Oman Oil Company (OOC), the national oil company, and Kuwait Petroleum International (KPI).

“We welcome with particular satisfaction the awarding of this new contract which signals the relaunch of our activities in Oman, a country in which Saipem has operated successfully in the past,” said Stefano Cao, CEO of Saipem.

In a separate statement on Kuwait News Agency website, KPI said three contracts were awarded for the Duqm Refinery development and construction, without elaborating what these contracts were for and which companies were involved.

]]>
PDO and GlassPoint launch Miraah solar plant for EOR https://www.pipelineme.com/regionalinternational-news/regional-news/2018/february/pdo-and-glasspoint-launch-miraah-solar-plant-for-eor/ Petroleum Development Oman (PDO) and GlassPoint Solar inaugurated the Miraah solar plant on Feb 13, located at Oman’s Amal oilfield, which will be among the world’s largest solar projects when completed. 2018-02-15 https://www.pipelineme.com/regionalinternational-news/regional-news/2018/february/pdo-and-glasspoint-launch-miraah-solar-plant-for-eor/

Petroleum Development Oman (PDO) and GlassPoint Solar inaugurated the Miraah solar plant on Feb 13, located at Oman’s Amal oilfield, which will be among the world’s largest solar projects when completed.

Four blocks of the plant have now been constructed safely, on time and on budget with steam production integrated with the Amal network,” GlassPoint said in a statement.

The event also marked the official opening of the Miraah Visitor Centre with more than 200 guests in attendance, including representatives from both the public and private sectors.

“Today marks an important milestone for Oman as it further cements its position as the regional leader in energy convergence, uniting renewable and conventional energy industries. Deploying solar on Oman’s oilfields to reduce the industry’s natural gas consumption has a significant and lasting economic benefit for the Sultanate,” said Salim bin Nasser Al Aufi, Undersecretary of the Ministry of Oil and Gas.

Miraah will generate real In-Country Value (ICV) and create job opportunities for Omanis, largely from future supply chain development and gas savings directed to other industries. H.E. added, “The project, which stands to be among the largest solar projects in the world, has contributed to developing local Omani talent in the renewable energy field and created job opportunities for local companies. We look forward to exporting our knowledge and expertise to the rest of the world as other progressive oil and gas producers follow in PDO’s footsteps.”    

Miraah’s construction has progressed on schedule with 1.9 million safe man-hours completed without a Lost Time Incident since the project started in 2015, GlassPoint said. The first four blocks were commissioned successfully and the facility is now in daily operation delivering steam to the Amal oilfield. The four blocks have a total capacity of over 100 MWt and will deliver 660 tonnes of steam per day, providing significant gas savings.

Once complete, the one gigawatt installation will consist of 36 blocks built in a sequence, which allows PDO to benefit from solar steam now and gradually ramp-up production over time to meet the Amal oilfield’s steam demand. The project is on track to deliver an additional eight blocks in early 2019.

“This is a very proud day for PDO and our partners GlassPoint Solar. Miraah provides a simple yet innovative solution that allows us to develop our heavy oil, while at the same time reducing energy consumption and costs,” said PDO managing director Raoul Restucci.

“For PDO, Miraah represents an important step in our journey to become a fully-fledged energy company, as well as placing the Sultanate firmly on the global renewable energy map with this pioneering project,” he added.

GlassPoint’s solar technology was specifically designed to harness the sun’s energy to generate the steam required for thermal enhanced oil recovery (EOR), seamlessly integrating into existing oilfield operations. The natural gas saved by using GlassPoint’s technology can be exported or directed toward higher-value applications such as power generation or industrial development, helping to diversify the economy.

“Today, alongside our partner PDO, we are ushering in a new era for renewables here in the Sultanate and for the broader oil and gas industry,” said Ben Bierman, Chief Operating Officer and Acting CEO of GlassPoint. “The current climate of low oil prices and the transition to cleaner energy sources, validates the important work we have achieved together with Miraah. Oman is becoming an epicenter of excellence for using solar energy to power oilfield operations and overcome today’s energy challenges.”

Unlike solar panels that generate electricity, GlassPoint’s solution uses large mirrors to concentrate sunlight and boil oilfield water directly into steam. The steam is used for the extraction of viscous or heavy oil as an alternative to steam generated from natural gas. GlassPoint’s innovation was to bring the mirrors and other system components indoors, using a greenhouse structure to protect from wind and sand, which is common in remote oilfields like Amal. The greenhouse enables major cost and performance advantages compared to exposed solar designs, from reducing overall material usage to automated washing operations.

GlassPoint’s partnership with PDO began over seven years ago when they built the first solar EOR project in the Middle East. The 7 MWt pilot project proved the effectiveness and cost efficiency of GlassPoint’s technology and led to significant learnings and design improvements. No other technology has been proven successfully for oil and gas operations. GlassPoint’s track record in Oman has led to the company’s expansion in new markets, including the recently announced project with oil and gas producer Aera Energy to build the largest solar plant in California, USA.

]]>
Algeria’s Sonatrach settles disputes with Saipem https://www.pipelineme.com/regionalinternational-news/regional-news/2018/february/algeria-s-sonatrach-settles-disputes-with-saipem/ Algeria's Sonatrach said it has agreed to a settlement with Italian oil firm Saipem on Wednesday, which ends their legal dispute over four gas projects. 2018-02-15 https://www.pipelineme.com/regionalinternational-news/regional-news/2018/february/algeria-s-sonatrach-settles-disputes-with-saipem/

Algeria's Sonatrach said it has agreed to a settlement with Italian oil firm Saipem on Wednesday, which ends their legal dispute over gas projects.

The agreement covers dispute on the construction of a gas liquefaction plant at Arzew (the LNG3Z train), three LPG trains, an oil separation unit (LDHP) with condensate production facilities in Hassi Messaoud, the LPG LZ2 pipeline in Hassi R'Mel and the contract to build a gas and oil production unit on the Menzel Ledjmet field, Sonatrach said in a statement.

Sonatrach's CEO Abdelmoumen Ould Kaddour said Saipem would pay between $150 million and $200 million to solve the disputes and said the settlements would open the way for a new joint offshore project, according to a report by Reuters.

Kaddour, who was appointed last year, has made it a priority to resolve disputes with oil majors which have dented their appetite to invest in the North African country.

]]>
Genel revises Kurdistan oilfields reserves https://www.pipelineme.com/regionalinternational-news/regional-news/2018/february/genel-revises-kurdistan-oilfields-reserves/ UK’s Genel Energy said it has revised its Taq Taq, Bina Bawi and Miran oil reserves after a new report on the Kurdistan oilfields. 2018-02-14 https://www.pipelineme.com/regionalinternational-news/regional-news/2018/february/genel-revises-kurdistan-oilfields-reserves/

UK’s Genel Energy said it has revised its Taq Taq, Bina Bawi and Miran oil reserves after a new report on the Kurdistan oilfields.

The oil and gas exploration and production company said at Taq Taq, McDaniel’s competent person’s report (CPR) resulted in a 12 per cent reserves replacement for 2P and 40 per cent reserves replacement at the higher confidence 1P level as a result of stabilising production and the integration of well TT-29w.

Taq Taq gross 2P reserves at the end of December were estimated by McDaniel to be 54.7 million barrels, compared to 59.1 million barrels end of February 2017, despite production in the period which was partly offset by a small upward technical revision.

“The replacement reflects the stability in cash-generative production that we have seen from the field in the second half of 2017,” Murat Özgül, chief executive of Genel said in a statement.

Genel’s Bina Bawi gross 2C light oil resources estimate by RPS Energy Consultants rose at the end of Dec. to at 37.1 million barrels, compared to 13 million barrels at the of July 2013. The increase reflects higher recovery factors than initially estimated due to integrating learnings from analogue carbonate fields of similar oil quality.

“The significant increase in high-value Bina Bawi 2C oil resources offers a tangible opportunity for near-term value creation,” Özgül said.

Because the high-quality Bina Bawi oil is in close proximity to export infrastructure, the field represents a potentially attractive near-term development candidate for the company.

Meanwhile, the Miran oil resources were decreased in the estimate by RPS to 23.7 million barrels from 52 million barrels in April 2013. The volumes were reduced as the view on the oil water contract uncertainty range as well as reservoir properties including data from MW-5 drilled in July 2013.

“Because of field experience at Taq Taq, Genel management has taken the view that it is unlikely that any matrix will contribute to primary depletion at Miran and, as such, has taken a more conservative view and will only record 18.5 MMbbls of viable 2C contingent resources at the field,” the company said.

 

]]>
Woodside to buy ExxonMobil’s Scarborough share https://www.pipelineme.com/regionalinternational-news/international-news/2018/february/woodside-to-buy-exxonmobil-s-scarborough-share/ Australia's biggest oil and gas producer, Woodside said it signed a deal to buy ExxonMobil's share of the Scarborough gas field located in the Carnarvon Basin, offshore Western Australia. 2018-02-14 https://www.pipelineme.com/regionalinternational-news/international-news/2018/february/woodside-to-buy-exxonmobil-s-scarborough-share/

Australia's biggest oil and gas producer, Woodside said it signed a deal to buy ExxonMobil's share of the Scarborough gas field located in the Carnarvon Basin, offshore Western Australia.

Woodside will pay A$400 million for the stake and the deal includes a contingent payment of $300 million once the final investment decision has been made, it said in a statement.

The company will acquire an additional 50 percent interest in WA-1-R which contains the majority of the Scarborough gas field. Upon completion of the transaction Woodside will have a 75 percent interest in WA-1-R and a 50 percent interest in WA-61-R, WA-62-R and WA-63-R.

Separately, Woodside said it would raise A$2.5 billion ($1.96 billion) from shareholders to fund the purchase of ExxonMobil Corp’s stake in the Scarborough gas field and fund developments in Australia and Senegal.

Peter Coleman, CEO of Woodside said the Scarborough acquisition delivered greater alignment, control and certainty for the project while also unlocking shareholder value

In November 2016, Woodside completed the acquisition of half of BHP Billiton's Scarborough area assets which include the Scarborough, Thebe and Jupiter gas fields, which are estimated to contain contingent resources (2C) of 2.6 Tcf of dry gas (8.7 Tcf, 100 percent).

Woodside estimates its LNG flow will be boosted by 40 percent when Scarborough production starts in 2025.

Coleman said: “Our Burrup Hub concept is advanced by our announcement today of an increased stake in the Scarborough gas field. The development concept involves maximizing existing infrastructure at the Pluto LNG plant to meet a market gap we expect will emerge from the early 2020s.” 

With the announcement of the stake purchase, Woodside also announced a full-year net profit of A$$1 billion. Its 2017 production was 84.4 MMboe and sales revenue was $3.62 billion.

“Our net profit after tax has increased by 18 per cent year-on-year, driven by higher prices for our products and sustained low production costs,” Coleman said. “At the same time, we were able to maintain our outstanding safety performance and our three FPSO facilities achieved a record average reliability of 95 per cent.”

]]>
Kuwait Energy finds oil in Egypt’s eastern desert https://www.pipelineme.com/regionalinternational-news/regional-news/2018/february/kuwait-energy-finds-oil-in-egypt-s-eastern-desert/ Kuwait Energy has discovered oil in Egypt’s eastern desert after reassessing seismic data that identified drilling opportunities, just after it sold part of its interest in Iraq’s Block 9. 2018-02-14 https://www.pipelineme.com/regionalinternational-news/regional-news/2018/february/kuwait-energy-finds-oil-in-egypt-s-eastern-desert/

Kuwait Energy has discovered oil in Egypt’s eastern desert after reassessing seismic data that identified drilling opportunities, just after it sold part of its interest in Iraq’s Block 9.

The oil and gas exploration and production company, which has ten oil and gas assets across Egypt, Iraq, Yemen and Oman, spud the South Kheir-1X (SK-1X) well in the Area A of the concession in December, Kuwait Energy said in a statement.

It tested on Jan. 28 an initial oil flow rate of 2,452 barrels of oil per day (bopd) from the Hamman Faraun MBR/Belayim formation at 128/64-inch choke size. On 6 February 2018 the well stabilised at an oil rate of 1,900 bopd on 64/64-inch choke size.

The oil discovery is a direct result of the technical team reprocessing old 2D/3D seismic and identifying drillable exploration opportunities, Abby Badwi, chief executive officer of Kuwait Energy said. “The Area A concession has been producing since the 1960s and this discovery demonstrates Kuwait Energy’s ability to continue to find hydrocarbons in mature fields.”

He said the company has a track record of around 50 per cent exploration success rate in Egypt.

Kuwait Energy holds a 70 per cent revenue interest and is the operator of the Area A concession under a service agreement with Egypt’s General Petroleum Company GPC while Petrogas holds 30 per cent.

IRAQ

Earlier in the week, Kuwait Energy signed a farm-out deal with Dragon Oil for 15 per cent of its participating interest in Iraq’s onshore Block 9.

An 8.57 per cent of the interest was exchanged for US$100 million, while a 6.43 per cent interest in the block was used to as settlement of a dispute with Dragon Oil in relation to a non-controlling interest in the block, Kuwait Energy said in a statement.

Pending government approvals, Kuwait Energy will remain the operator with a reduction in participating interest from 60 per cent to 45 per cent, Dragon Oil participating interest will increase from 30 per cent to 45 per cent with the remaining 10 per cent participating interest being held by Egyptian General Petroleum Company.

“Both companies can work as equal equity partners on the concession allowing us to best utilise our joint technical expertise in delivering the submission of the Block 9 full field development plan to the Iraqi government,” Badwi said.

“The reduction in future Block 9 capital expenditure exposure coupled with the material cash injection strengthens Kuwait Energy liquidity position going forward.”

]]>
Honeywell launches Dubai centre for cyber security https://www.pipelineme.com/regionalinternational-news/regional-news/2018/february/honeywell-launches-dubai-centre-for-cyber-security/ Honeywell launched its first Middle East industrial cyber security centre of excellence (COE) at its Dubai office to test and demonstrate threats, vulnerabilities and to train customers. 2018-02-14 https://www.pipelineme.com/regionalinternational-news/regional-news/2018/february/honeywell-launches-dubai-centre-for-cyber-security/

Honeywell launched its first Middle East industrial cyber security centre of excellence (COE) at its Dubai office to test and demonstrate threats, vulnerabilities and to train customers.

This investment comes in support of regional government initiatives such as the Dubai Cyber Security Strategy, to strengthen cyber security defences in a growing digital transformation across industries. The new centre will support a rapidly developing Middle East cyber security market, which has been seeing increasingly sophisticated cyber-attacks, Honeywell said.

“Honeywell saw this as one the most important areas for cyber security research as well as to train customers - we were being asked by customers to leverage our experience gathered globally,” said Jeff Zindel, vice president and general manager, Honeywell Industrial Cyber Security.

Zindel said Honeywell is differentiated among competitors by its industry experience.

“We have a decade’s worth of unique experience in industrial cyber security technology, the process control systems and networks and we couple that with a detailed understanding of operations and finally of people. We have a unique perspective and understanding that we translate into our own methodology, software and solutions,” he said.

Zindel said the centre is also a critical part of Honeywell’s network of global Cyber Security COEs dedicated to improving industrial cyber security for critical infrastructure, information technology and operational technology (IT/OT) convergence and digital transformation.

The new COE technology centre provides a safe off-process environment to test and demonstrate process control network vulnerabilities and threats, train customers with real-time attack simulations and provide advanced customer consultations.

The centre contains distributed control systems, a physical plant process and the latest industrial cyber security software and solutions. It includes data analytics and networking equipment capable of supporting unique training sessions, demonstrations, workshops, and cyber-attack simulations. The facility is led by a full-time operations team with deep industrial cyber security expertise and operational technology knowledge fundamental to help customers stay ahead of cyber threats.

“As threats to industrial control environments become more sophisticated, it will be crucial to train the workforce of the industry for effective cyber security implementation,” said Safdar Akhtar, business development director of Industrial Cyber Security for Europe, Middle East and Africa at Honeywell Process Solutions. “At the centre, we are able to demonstrate cyber security solutions and controls in attack scenarios to show which of them are most effective at combatting various attacks.”

The centre was inaugurated by Jeff Zindel during a launch event that showcased the solutions within the COE, followed by a demonstration of real-time cyber-attack scenarios and the effectiveness of advanced cyber security controls.

The COE provides a hub in the region to collect customer feedback and collaborate with global research and development teams to help develop solutions for the region and global markets.

]]>
ADNOC launches strategy to boost local development, employment https://www.pipelineme.com/regionalinternational-news/regional-news/2018/february/adnoc-launches-strategy-to-boost-local-development-employment/ Abu Dhabi National Oil Company (ADNOC) said it has launched the implementation phase of its new In-Country Value (ICV) strategy which will support economic growth as well as employment for UAE nationals. 2018-02-14 https://www.pipelineme.com/regionalinternational-news/regional-news/2018/february/adnoc-launches-strategy-to-boost-local-development-employment/

Abu Dhabi National Oil Company (ADNOC) said it has launched the implementation phase of its new In-Country Value (ICV) strategy which will support economic growth as well as employment for UAE nationals.

Under ADNOC’s ICV, the group is pushing greater collaboration within the private sector that will improve knowledge transfer, sourcing goods and services locally to benefit UAE businesses and employment and development for UAE nationals.

All business partnerships with ADNOC now include an ICV assessment as part of the tender evaluation and award process. ADNOC’s recent contract awards have also taken the ICV criteria into consideration.

It reinforces the company’s commitment to supporting local businesses and their role in driving economic diversification and GDP growth.

ADNOC said its AED 400 billion capital spend across its entire value chain, over the next five years, will create multiple opportunities for local companies to grow alongside ADNOC, as international companies work more closely with local SMEs to maximise the use of local products, manufacturing and assembly facilities, services and infrastructure.

His Excellency Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO said: “In line with the directives of the country’s leadership, ADNOC is committed to engaging with and supporting the local private sector. As one of the backbones of the UAE and Abu Dhabi economies, ADNOC provides the stimulus for economic growth, supports GDP diversification and drives employment.

“Our ICV strategy will further strengthen our partnerships with the local private sector and drive even more opportunities for local businesses to benefit and grow alongside us, as well as employment opportunities for Emiratis. It is a win-win situation for the nation, the economy, our suppliers and for ADNOC.”

The criteria which will be utilised to assess suppliers’ ICV contribution include goods and services sourced locally, employment and development opportunities for Emiratis, in country spend of subcontractors, supplier’s investment in the UAE, and expat contribution in the UAE.

ADNOC’s ICV strategy is an extension of its 2030 growth strategy to create a more profitable upstream and more valuable downstream business, as well as ensure an economic and sustainable supply of gas.

]]>
Statoil awards Johan Castberg FPSO contract to Kværner https://www.pipelineme.com/regionalinternational-news/international-news/2018/february/statoil-awards-johan-castberg-fpso-contract-to-kvaerner/ Norway’s Statoil said it awarded a construction and installation contract to Kværner for the Johan Castberg floating production, storage and offloading vessel (FPSO) in the Barents Sea valued at 3.8 billion Norwegian kroner (US$481 million). 2018-02-13 https://www.pipelineme.com/regionalinternational-news/international-news/2018/february/statoil-awards-johan-castberg-fpso-contract-to-kvaerner/

Norway’s Statoil said it awarded a construction and installation contract to Kværner for the Johan Castberg floating production, storage and offloading vessel (FPSO) in the Barents Sea valued at 3.8 billion Norwegian kroner (US$481 million).

Kværner will utilise a number of yards along the Norwegian coast for the construction work of the FPSO including yards in Sandnessjøen, Verdal, Stord and Egersund.

The contract includes building a total of ten modules, a flare boom and central pipe rack, Statoil said in a statement.

“This is one of the large pieces of the Johan Castberg puzzle, and is a key component of the FPSO,” said Torger Rød, Statoil’s senior vice president for project management control. “The international competition for the contract has been tough, and we look forward to working closely with Kværner in the years to come.”

The construction work is scheduled to last until 2021, followed by a complex assembly period. In this period the topside structure will be installed on the hull and connected to the turret. First oil from the field is scheduled for the first half of 2022.

“The Johan Castberg development will generate substantial spinoffs for Norwegian supply industry in the years ahead. The field is also essential to the further development of industry in Northern Norway, and we are pleased that this contract will help increase activities in the north,” said Pål Eitrheim, Statoil’s chief procurement officer.

Johan Castberg will be the sixth project on stream in Northern Norway. The field has been important to the further development of the oil and gas industry in the north. Thanks to Johan Castberg infrastructure will be developed in a new area of the Norwegian Continental Shelf.

Capital expenditures for the Johan Castberg project are estimated at some NOK 49 billion (capex numbers in nominal terms based on fixed currency) and the jobs generated nationwide during the development are estimated at slightly less than 47,000 man-years.

The field will be producing for more than 30 years, and substantial spinoffs will be generated in the long production phase. Castberg will create considerable activities for Norwegian supply companies and generate ripple effects in Northern Norway.  Recoverable resources are estimated at 450 – 650 million barrels of oil equivalent.

Statoil sanctioned projects worth 90 billion Norwegian kroner in 2017 on the NCS. Norwegian suppliers have secured 70 per cent of the contracts related to these projects so far.

The contact is subject to government approval of the plan for development and operation.

]]>
BP begins production from Egypt’s Atoll gas field https://www.pipelineme.com/regionalinternational-news/regional-news/2018/february/bp-begins-production-from-egypt-s-atoll-gas-field/ BP said it started gas production from the Atoll phase one project, offshore Egypt, delivered ahead of schedule and below cost. 2018-02-13 https://www.pipelineme.com/regionalinternational-news/regional-news/2018/february/bp-begins-production-from-egypt-s-atoll-gas-field/

BP said it started gas production from the Atoll phase one project, offshore Egypt, delivered ahead of schedule and below cost.

The project is now producing 350 million cubic feet of gas a day (mmscfd) and 10,000 barrels a day (bpd) of condensate, BP said in a statement. Gas production from the field is directed to Egypt’s national grid.

Atoll is the first new project to come into production for BP in 2018, adding to the series of higher-margin projects successfully brought online over the past few years.

The project, in the North Damietta concession in the East Nile Delta, was delivered seven months ahead of schedule and 33 per cent below the initial cost estimate.

The 13 projects that started-up through 2016 and 2017 provided more than 500,000 barrels of oil equivalent a day (boed) of new net production capacity and total net production from BP’s new projects is now expected to be 900,000 boed by 2021.

“The longstanding partnerships we have in Egypt allowed us to fast-track Atoll’s development and deliver first gas only 33 months after discovery,” said Bob Dudley, BP group chief executive.

“This is a further demonstration of our commitment to help realise Egypt’s oil and gas potential and meet the increasing demand from its growing population.”

BP announced the Atoll discovery in March 2015. The main reservoir in the field contains an estimated 1.5 trillion cubic feet (tcf) of gas and 31 million barrels of condensates and further segments are under evaluation.

The Atoll phase one project is an early production scheme involving almost $1 billion investment, BP said. The project involved recompletion of the original exploration well as a producing well and the drilling of two additional production wells, completed August 2015 to February 2017.

Production is exported to the existing onshore West Harbor gas processing plant. Installation of the necessary subsea infrastructure and upgrading of onshore facilities was completed ahead of schedule.

Hesham Mekawi, regional president, BP North Africa said: “Atoll is our first major project in Egypt to be delivered in 2018, following the West Nile Delta Taurus and Libra project and then Zohr last year. We are extremely proud of Atoll’s efficient execution through our joint venture, the Pharaonic Petroleum Company. Delivering this project at such an unprecedented pace, less than two years after sanction, and with an impeccable safety record is a tremendous achievement.”

BP started operations in Egypt 55 years ago, with total investments so far of approximately $30 billion, making BP one of the largest foreign investors in the country, it said.

]]>
DEA to invest $500 mln in Egypt to boost production https://www.pipelineme.com/regionalinternational-news/regional-news/2018/february/dea-to-invest-500-mln-in-egypt-to-boost-production/ Germany’s DEA said it will invest US$500 million in Egypt in the next three years as it looks to boost oil and gas production from its oilfields. 2018-02-13 https://www.pipelineme.com/regionalinternational-news/regional-news/2018/february/dea-to-invest-500-mln-in-egypt-to-boost-production/

Germany’s DEA said it will invest US$500 million in Egypt in the next three years as it looks to boost oil and gas production from its oilfields.

“Egypt continues to be an important factor in DEA’s global E&P portfolio. With targeted investment in our key assets, we plan to double our production in the country within the next two years,” Maria Moraeus Hanssen, CEO of DEA Deutsche Erdoel AG, said in a statement. 

The company made the same announcement to journalists in Cairo ahead of the second edition of the Egypt Petroleum Show (EGYPS). 

“We see an upside potential in the mature oil fields in the Gulf of Suez that we aim to lift. Our Disouq gas development project will be re-developed. The development of the next three fields at West Nile Delta is making good progress too. In total, DEA plans to invest another half billion US-Dollars in the coming three years into these key assets,” she added in a company statement.

DEA has interest in oil fields in the Gulf of Suez and the Disouq gas fields in the Onshore Nile Delta. The next phase of the West Nile Delta (WND) development is intended to contribute to the company's target.

DEA has been active in Egypt since 1974 and has produced more than 650 million barrels of crude oil in the Gulf of Suez during the last three decades, it said.

The production is operated by the Suez Oil Company (SUCO), DEA's joint venture with the Egyptian General Petroleum Corporation (EGPC). DEA and EGPC recently agreed on the concession extension of the the fields Ras Budran and Zeit Bay. The onshore gas development project Disouq comprises seven gas fields and is in production since 2013. 

Production from the offshore WND gas fields started in March 2017 from the first two fields, Taurus and Libra. The three fields Giza, Fayoum and Raven are currently under construction. DEA has a 17.25 per cent working interest in West Nile Delta (North Alexandria and West Mediterranean Deep Water concessions), with BP being the operator and owner of the remaining share.

]]>
Faroe sells stake in Fenja to Suncor Energy https://www.pipelineme.com/regionalinternational-news/international-news/2018/february/faroe-sells-stake-in-fenja-to-suncor-energy/ Faroe Petroleum, an independent oil and gas company said it sold a 17.5 per cent interest in offshore Norway’s Fenja development to Canada’s Suncor Energy for US54.5 million. 2018-02-13 https://www.pipelineme.com/regionalinternational-news/international-news/2018/february/faroe-sells-stake-in-fenja-to-suncor-energy/

Faroe Petroleum, an independent oil and gas company said it sold a 17.5 per cent interest in offshore Norway’s Fenja development to Canada’s Suncor Energy for US54.5 million.

The Norway and UK-focused company will retain a stake of 7.5 per cent, which will align its equity at 7.5 per cent across the Greater Njord area, including Njord, Fenja, Bauge and Hyme.

The sale will to reduce Faroe’s future capital expenditure on Fenja to approximately £70 million, based on the operator’s gross projected development cost of NOK 10.2 billion, Faroe said in a statement. It will also help maintains Faroe’s strong balance sheet and fully funded position across its portfolio of Norwegian field developments, it added.

“Suncor’s acquisition of a 17.5 per cent stake in Fenja from Faroe confirms our belief in the attractiveness of this project. We look forward to working together with Suncor as the Fenja project progresses to first oil,” said Graham Stewart, CEO of Faroe Petroleum.

Faroe took Fenja through exploration and appraisal drilling to predevelopment work. It said the sale validates Faroe’s business model of generating tangible shareholder returns from its exploration portfolio. “Having held a significant interest in PL586 from its discovery, Faroe has now generated cash returns through a partial-monetisation while still giving shareholders exposure to future cash flows from a continuing interest in this high quality project,” Stewart said.

As detailed in the Plan for Development and Operation (PDO) submitted on 19 December 2017, the operator, VNG Norge AS, expects total gross recoverable reserves from the Fenja development of approximately 97 million barrels of oil equivalent (72 per cent of which is oil), Faroe said.

The transaction has a 1 January 2018 effective date and remains subject to the usual and customary conditions including regulatory approval of the transfer and approval of the Fenja PDO by the Norwegian Ministry of Petroleum and Energy. The sale is expected to complete during the first half of 2018.

]]>
Egypt accelerating oil investment https://www.pipelineme.com/regionalinternational-news/regional-news/2018/february/egypt-accelerating-oil-investment/ Egypt’s minister of petroleum and mineral resources Tareq Al-Mulla said during the opening ceremony of the Egypt Petroleum Show (EGYPS) yesterday that Egypt was accelerating opening up the country’s oil and gas sector. 2018-02-13 https://www.pipelineme.com/regionalinternational-news/regional-news/2018/february/egypt-accelerating-oil-investment/

Egypt’s minister of petroleum and mineral resources Tareq Al-Mulla said during the opening ceremony of the Egypt Petroleum Show (EGYPS) yesterday that Egypt was accelerating opening up the country’s oil and gas sector.

 “We have big projects coming on stream in the country. The petroleum sector in Egypt is embarking on new strategies. Our strategy is to make Egypt the regional energy hub,” said Al-Mulla

“We see Egyps as a great platform to launch our modernisation programme. Egyps is great way to promote Egypt’s oil and gas industry.

Al-Mulla is very proud of were Egypt has come over the last few years.

“That is why EGYPS is so important as we have a success story to tell and it is only at this show I can be here with the two CEOs of our two main partners, BP and Eni.”

He stated: “Our ambitious plan to bridge the gap between production and consumption continues. By the year end we hope to be self-sufficient.”

The petroleum minister announced a raft of new initiatives during his opening speech, including new upstream investment and downstream products.

“Eni and BP bet on Egypt and we bet on these two major IOCs. EGYPS is a way for us to tell our story to the world and the wider industry. Now is the time to bet on Egypt,” he said.

Al-Mulla explained that Egypt has embarked on an ambitious modernisation programme that will get it ready to become a regional gas hub.

Eni CEO, Claudio Descalzi shared a panel session with Tareq Al-Mulla and BP’s CEO.

“Egypt is a crucial market for us. It is geographically located so close to us in Italy. We think Egypt has a big future. Egypt has a lot of infrastructure in place and it can play a big role in the regional global LNG market. “

He added: Zohr is a game changer for us. It has set a new standard in the industry. We were able to get to production after 27 months which is a new record.”

BP’s CEO Bob Dudley said during the panel that “We believe in Egypt. We have a lot of activity across the Nile delta and Egypt is on its way to becoming an exporter of gas. We invested more money in Egypt last year than any other country.”

He added: “We have brought the Western Delta project onstream and under budget. We are very positive about the future of Egypt and we can see the oil and gas developments leading to further industrial development within the country. “

 

]]>
Oil market is re-balancing says OPEC at EGYPS https://www.pipelineme.com/regionalinternational-news/regional-news/2018/february/oil-market-is-re-balancing-says-opec-at-egyps/ OPEC’s secretary general, Mohammed Barkindo said that the oil market was on course to re-balance during his keynote speech at the opening ceremony of the 2nd Egypt Petroleum Show (EGYPS) in Cairo. 2018-02-13 https://www.pipelineme.com/regionalinternational-news/regional-news/2018/february/oil-market-is-re-balancing-says-opec-at-egyps/

OPEC’s secretary general, Mohammed Barkindo said that the oil market was on course to re-balance during his keynote speech at the opening ceremony of the 2nd Egypt Petroleum Show (EGYPS) in Cairo.

The OPEC secretary general was one of many top industry players talking during the first day of Egyps’s strategic conference.

He said that Egypt is becoming a key regional energy hub, especially in terms of natural gas.

“The big gas finds at Zohr and Northern Alexandria will help position Egypt as a global player in the gas sector.”

He stated that the market is responding to the actions taken by OPEC and non-OPEC countries to help balance the oil sector.

“We are on course to balance market.  The re-balancing has been driven by the cooperative effort of all participating countries,” said Barkindo.

He added: “The report card for 2017 had surpassed our expectations. Conformity by all participating countries was over 107 per cent on average last year. This January it promises to break another record. It shows a determined joint effort to balance the market. What we are achieving now is going beyond what was first envisioned.”

Barkindo stressed that the historic declaration of cooperation between OPEC and on-OPEC countries was working and they were already looking at ways they can can institutionalise beyond just re-balancing.

“So we can ensure we minimise uncertainty and instability.”

 The OPEC boss went on to say that market fundamentals have not been this strong in a long time

“Oil demand is growing. Global oil demand surpassed the 100 million bpd threshold much earlier than we expected. We predict oil demand to grown by 1.6 million bpd in 2018. What we are seeing is an increased energy demand across all sectors.”

The message from Barkindo was clear. Global economic growth is improving and OPEC predicts it will grow by 2.8 per cent.

He ended his keynote by saying: “The world will need more energy in the future that will require ugh investments. Looking ahead the future of our industry will be built on greater cooperation.”

]]>