KSA-founded Arabian Geophysical & Surveying Company (ARGAS), the largest seismic acquisition company in MENA, is to expand its business internationally.
Industrialisation and Energy Services Company (TAQA) and Paris-based CGG have today jointly announced the signing of a new agreement that will allow the company to expand its offering in integrated marine and land seismic solutions to oil and gas industry customers all over the world, giving ARGAS the ability to access potential multi-billion dollar markets.
The agreement waives all territorial, technical, commercial exclusivities and any other restrictions previously in place, as well as all other contractual restrictions on CGG or any of its current or previous affiliates.
Khalid Nouh, CEO of TAQA and Chairman of the Board of ARGAS, said: “The world around us is changing so fast that restrictions and exclusivities are obsolete by the time they are executed. We value our long partnership with CGG and together we understand the current market challenges. Our new agreement reflects a need for ARGAS to be more agile and to be able to react swiftly to market movements with the aim of better addressing customers’ needs”.
Sophie Zurquiyah, CEO of CGG, added: “I am delighted with the extension of the operational scope for ARGAS, following CGG’s exit from the Acquisition business. We value our partnership with TAQA and believe this agreement will be beneficial for all.”
Lamprell has been selected by Sharjah National Oil Corporation (SNOC) to undertake a medium-sized engineering, procurement, installation and commissioning contract (EPIC) associated with the Mahani gas and condensate field in Sharjah, UAE.
Scheduled for completion in early 2021, Lamprell's scope of work is specific to the Mahani Extended Well Test project and includes hook-up and installation at the well, existing systems upgrade, associated tie-ins and a new 25 km export pipeline.
Discovery of the onshore Mahani field was announced by SNOC and its partner Eni at the end of January 2020.
Commenting on the award, chief executive Christopher McDonald said: "SNOC is an important client for us and through delivering to consistently high and competitive standards, we are very proud of the track record we've developed with them. Mahani is a strategic gas discovery. We are looking forward to being associated with it, delivering this project safely and on time."
OPEC Secretary General HE Mohammad Sanusi Barkindo virtually met a delegation from China via a webinar to discuss ways to stabilise the global oil market.
The Chinese delegation was comprised of the administrator of National Energy Administration, People’s Republic of China, HE Zhang Jianhua and delegation, along with HE Wang Qun, Permanent Representative and Ambassador Plenipotentiary and Extraordinary of the Permanent Mission of the People’s Republic of China to the United Nations and other International Organizations in Vienna.
The meeting reflected on the impact of the COVID-19 pandemic on the global economy and oil market, as well as China’s domestic oil market, the rebalancing process of oil supply and demand, and China’s solutions for and optimisation of the oil and gas trade system. The meeting also reached a consensus on the importance of energy security and maintaining stability in the energy markets, strengthening collaboration between OPEC and China, as well as supporting and promoting the unique importance of multilateralism and globalization.
HE Barkindo and HE Zhang last met in October 2019 at the 3rd High-Level Meeting of the OPEC-China Energy Dialogue, held at the OPEC Headquarters in Vienna. The meeting laid a solid foundation for future cooperation and participants were enthusiastic about the deepening dialogue between OPEC and China. “…the pandemic has provided the opportunity to further strengthen this relationship, and proven that the forces of globalisation are irreversible,” Secretary General Barkindo stated in the webinar meeting, adding the “rich lessons we are currently learning from the pandemic make it abundantly clear that the triumph of multilateralism and international cooperation cannot be disputed.”
HE Barkindo referred to recent decisions taken by participants of the Declaration of Cooperation at the 9th and 10th (Extraordinary) OPEC and Non-OPEC Ministerial meetings held on 9-10 and 12 April 2020, respectively, to adjust overall crude oil production by 9.7 mb/d for May and June, 2020; from 1 July 2020 to 31 December 2020 by 7.7 mb/d; and from 1 January 2021 to 30 April 2022 by 5.8 mb/d.
HE Zhang stated the webinar meeting comes at a crucial time, when the world is in the throes of the COVID-19 pandemic. However, he said China is already on the road to recovery. The country hopes to regain its former energy consumption patterns soon, which should help support the oil industry. He added China wants to work closely with OPEC to stabilise the global oil industry, ensure future energy security for the world and facilitate the energy transition.
HE Zhang stated the pandemic’s outbreak brings unprecedented changes to the oil and gas industry, and expressed that the historic decision by OPEC and non-OPEC participating countries in the Declaration of Cooperation (DoC) on production adjustments will play a positive role in stabilising the global oil market.
HE Zhang stated the two parties should work together both today and tomorrow to deepen their dialogue, adding that strong collaboration is not only essential for the interests of both, but also for the global economy.
HE Zhang clarified three elements that would help the global economy get back on track post-COVID-19: Optimising the trade system to consolidate and expand oil trade; enhancing communication to keep the energy market stable; and strengthening pragmatic cooperation to extend the industrial chain, including oil products, storage and transportation. Ambassador Wang stated that a return of stability to energy markets and the world economy is urgently needed on the basis of international market rules, and called for international efforts to minimize the impacts of politicizing factors in this regard.
UL’s Abu Dhabi electrical laboratory has been approved by the Abu Dhabi Power Corporation to help test Low Voltage (LV) Switchgear and Control gear equipment.
Awarded with a five-year qualification, UL’s GmbH Abu Dhabi laboratory has been listed on ADPower’s database for Abu Dhabi Distribution Company (ADDC) and Al Ain Distribution Company (AADC) projects until March 2025.
Since its launch as an independent entity in 2019, ADPower now owns and manages all assets previously under the Abu Dhabi Water and Electricity Authority (ADWEA), which had been responsible for overseeing the water and electricity sector in the Abu Dhabi Emirate.
As part of their work, UL’s experts will conduct the mandatory safety procedures for low voltage switchgear and control gear assemblies for manufacturers that are working with ADDC or AADC.
Accredited by ILAC MRA member DAkkS Germany for low voltage switch gear and control gear assemblies under ISO/IEC 17025, UL’s Abu Dhabi laboratory is the first dedicated electrical laboratory in the Middle East. It is also the only and largest capacity independent switchgear laboratory in the Middle East and North Africa region.
Hamid Syed, vice president and general manager in the Middle East for UL, said: “This is a milestone moment for everyone at UL Middle East and it’s another step forward to increasing our presence and operations in the region.
“To be recognized as an approved vendor is further evidence of how far UL has come since we opened our electrical laboratory in Abu Dhabi and shows the trust we have gained by being a global leading safety science company.
“We are determined to build on this success and we look forward to putting our expertise and skills into daily use and help make Abu Dhabi an even safer place to trade, live and work in.”
The Emirates Nuclear Energy Corporation (ENEC) has successfully completed Cold Hydrostatic Testing (CHT) at Unit 4 of the Barakah Nuclear Energy Plant, in the Al Dhafra region of Abu Dhabi, UAE.
The testing incorporated the lessons learned from the previous three units and is a crucial step towards the completion of Unit 4, the final unit of the Barakah plant.
As a part of CHT, the pressure inside Unit 4’s systems was increased to 25 per cent above what will be the normal operating pressure, demonstrating the quality and robust nature of the Unit’s construction. Prior to the commencement of CHT, Unit 4’s Nuclear Steam Supply Systems were flushed with demineralised water, and the Reactor Pressure Vessel Head and Reactor Coolant Pump Seals were installed. During the Cold Hydrostatic Testing, the welds, joints, pipes and components of the reactor coolant system and associated high-pressure systems were verified.
H.E. Mohamed Al Hammadi, Chief Executive Officer of ENEC said: “I am proud of the continued progress being made at Barakah despite the circumstances we have all faced in relation to COVID-19. With this accomplishment, we move another step closer to achieving our goal of supplying up to a quarter of our nation’s electricity needs and powering its future growth with safe, reliable, and emissions-free electricity,” concluded Al Hammadi.
By the end of 2019, ENEC and Korea Electric Power Corporation (KEPCO) had successfully completed all major construction work including major concrete pouring, installation of the Turbine Generator, and the internal components of the Reactor Pressure Vessel (RPV) of Unit 4, which paved the way for the commencement of testing and commissioning.
The testing at Unit 4 represents a significant achievement in the development of the UAE Peaceful Nuclear Energy Program, following the successful completion of fuel assembly loading into Unit 1 in March 2020, confirming that the UAE has officially become a peaceful nuclear energy operating nation. Preparations are now in the final stages for the safe start-up of Unit 1 in the coming months.
ENEC is currently in the final stages of construction of units 2, 3 and 4 of the Barakah Nuclear Energy Plant. The overall construction of the four units is more than 94 per cent complete. Unit 4 is more than 84 per cent, Unit 3 is more than 92 per cent and Unit 2 is more than 95 per cent. The four units at Barakah will generate up to 25 per cent of the UAE’s electricity demand by producing 5,600 MW of clean baseload electricity, and preventing the release of 21 million tons of carbon emissions each year – the equivalent of removing 3.2 million cars off the roads annually.
McDermott International announced it has been awarded a contract from a Middle East customer to carry out front-end engineering and design (FEED) work for offshore riser platform topsides.
The scope includes the design of two offshore riser platforms, as well as associated brownfield integration modifications to existing facilities, which include the decommissioning of existing assets. The FEED contract will be fully executed from McDermott's Middle East offices.
Work on the project will begin immediately, and the contract award will be reflected in McDermott's second quarter 2020 backlog.
Dubai-based Drydocks World marked the start of production on an offshore installation conversion project for Boskalis B.V. with a steel-cutting ceremony.
Drydocks World will convert a drill ship YAN into an offshore installation vessel named BOKALIFT 2. This vessel is designed to carry out offshore operations for windmill installations in Taiwan.
The project is expected to use over 10,000T of steel, and a 4,000T crane will be installed on the vessel.
Drydocks World will carry out the conversion work as per BV class rules, including: detailed engineering, supply of steel, piping and electrical bulk material as well as the construction and installation of client issued equipment.
Capt. Rado Antolovic PhD CEO of Drydocks World said; “We thank Boskalis B.V. for the opportunity to deliver this critical project. The work will equip the vessel with enhanced performance and operational efficiency. As with all projects carried out under the current circumstances, all production work will comply with strict Covid-19 precautionary safety measures.
Drydocks World is a specialist in offshore conversion, and we are very pleased to be extending our expertise to a project that will contribute to renewable energy development in Taiwan.”
The BOKALIFT2 will be operated by BoWei Offshore, a joint venture between Boskalis and Hwa Chi construction and deployed for the first time at the Changfang and Xidao offshore wind farm (CFXD OWF) project in Taiwan, owned by Copenhagen Infrastructure Partners (CIP) and two Taiwanese life insurance companies.
UAE-based Aries Marine Services is one among the very few listed NDT companies based in Saudi Arabia that have received the approval of Saudi Aramco.
Aries Marine has received approval for its Conventional NDT services. Recently, Aries Marine also secured the approval of SABIC, which has accelerated the organization's reach in the Kingdom of Saudi Arabia.
Aries Marine and Engineering Services boasts of an extensive Inspection and Non-Destructive Testing division in the Middle East. The team consists of experienced destructive and non-destructive testing (NDT)/ OCTG/Thermography/Eddy current/QC/Welding/ Painting inspectors.
Dr. Sohan Roy, Founder Chairman and CEO, Aries Group, quoted, "I am thrilled and proud of our team's success. We started the procedure for Aramco's approval two years ago, with lot investment in NDT facilities in the country. And Finally, today, this dream has come true. Aries has always believed in providing world-class quality and reliable services to our clients across the globe. With this certification, we have not just inched one step closer to improving our range of services but have also updated our efficiency to execute NDT tasks. We are thankful to the Aramco team for their technical and quality audits and timely support to help us succeed in gaining this prestigious milestone. Aries is now into comprehensive Visual Asset Management Platform with the support of various advanced engineering & inspection techniques like aerial/underwater drones, rope access, 3D scanning,IHM surveys & other advanced NDT methods as well".
Weir Oil & Gas Dubai has signed a multi-year contract in Iraq with a major international oil company.
The contract includes the provision of Weir Oil & Gas workshop services, machine shop services, emergency manufacturing and maintaining the customer’s well operations.
Positive past and existing contract performance with the international oil company, Weir Oil & Gas’ capabilities in Iraq, local content, in-house engineering, API and OEM certifications and a comprehensive international facility near the customer’s sites were deciding factors in the deal. This contractual agreement further consolidates Weir’s Rig to Grid capabilities in the Middle East.
This is a strategic agreement that will see Weir as a key player for this client and allow Weir to expand their portfolio in this specific oil field.
“We are pleased to support our clients through providing services, repairs and important upgrades while assisting them with engineer-driven change management protocols and production facility turnarounds,” said Ronan Le Gloahec, Eastern Hemisphere President for Weir Oil & Gas. “With this additional contract, we will provide comprehensive support to the client’s well operations thanks to our state- of-the-art facility and in-country engineering know-how.”
Oman crude oil Benchmark trading on Dubai Mercantile Exchange has doubled in price since the record cuts agreed by the OPEC+ group and other major producers were implemented in time for May loading schedules.
Front-month July DME Oman Marker Price on Friday was $34.95/b, up $18.13/b from the record low of $16.82/b on April 28 – an increase of 108 per cent.
The Marker Price is used by Middle East producers, which include Saudi Arabia, Kuwait, Bahrain, Oman and Dubai in calculating the Official Selling Price (OSP).
Middle East prices have also risen faster than those in Europe, with DME Oman trading at nearly $3/b over the Brent North Sea benchmark on Friday.
Fluor Corporation announced that it was named project management consultant for Advanced Global Investment Company’s (AGIC) new propane dehydrogenation, polypropylene and utilities and offsites complex in Jubail Industrial City, Saudi Arabia.
Fluor will perform project management consultant services for the front-end engineering design, detailed engineering, procurement and construction phases of the project.
“Fluor has supported clients and safely executed projects in Saudi Arabia for more than 70 years,” said Mark Fields, group president of Fluor’s Energy & Chemicals business. “Our legacy of execution excellence continues with this most recent award from AGIC. We look forward to helping AGIC and the Kingdom of Saudi Arabia meet the world’s growing demand for polymers and support their efforts to diversify its economy and also become one of the world’s leading global producers of polypropylene.”
Once complete, the complex will manufacture 843,000 tons-per-year of propylene and 800,000 tons-per-year of polypropylene that will be used for the production of specialty polymers for the face masks, automotive, pipes, food packaging and textiles industries.
Fluor's offices in Farnborough, United Kingdom and Al Khobar, Saudi Arabia will lead the project management consulting services with support provided by the company’s network of global experts.
The Norewgian and UK based PSW Group have just sent their Emergency Subsea capping stack out for its first contract to Egypt for Edison exploration and production in the Nile Delta.
PSW Group announced that it supported Edison exploration & production for capping stack & support services in their first deepwater well in Egypt.
Edison’s E&P Ameeq-1X well was the first well to be drilled in their North Thekah concession 130 kms offshore from the Nile Delta. This was the first international operation for the PSW capping stack division and, in combination with the Edison E&P Emergency Response Team, prepared logistics and response plans to mobilise and deploy the stack in Egypt if required. Edison E&P concluded the rapid response time from Mongstad and developed logistics plans meant the capping stack could be at the wellsite as fast any other system even if flown to Egypt.
The second milestone was the deepwater nature of the well. Ameeq-1X was drilled in approximately 1,000 meters of water making it the deepest of wells supported to date by PSW. “Our subsea engineers are familiar with deepwater operations but this was the first time we prepared the capping stack and support systems for greater than 500 meters of seawater,” said Oddbjørn Haukøy, CEO of PSW Group.
“Developing emergency response systems with the Edison E&P Operations Team before the well was spudded and having a team prepared to undertake the voyage from Mongstad with the capping stack were key factors in the selection of PSW to support our Operations,” added Simone Conti, Edison E&P Egypt Drilling manager.
A Capping Stack is a large well closure device that connects to the top of a blowout preventer (BOP) and is capable of sealing off a well if the BOP fails. As part of the Capping Stack agreement, PSW Group provide the maintenance, training and deployment along with a 24/7 duty team standing by.
“The increasing interest from global operators strengthens our position as a provider of these critical services. This is supported by our alliances with Intermoor and Exceed Well Management for deployment and incident support internationally from quayside to wellsite,” noted Oddbjørn Haukøy, CEO of PSW Group.
His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of State and Group CEO of the Abu Dhabi National Oil Company (ADNOC), says there are signs that oil markets have tightened in recent weeks and will rebalance over time.
Speaking on ADNOC’s “Virtual Majlis” with Helima Croft, Managing Director and Global Head of Commodity Strategy at RBC Capital Markets, H.E. Dr. Al Jaber said the world is in unchartered territory and right now, no one is in a position to predict exactly what the global economic recovery will look like. While this outlook remains unpredictable, H.E. Dr. Al Jaber highlighted reasons for cautious optimism in oil markets.
“When it comes to oil, there are signs that the market has tightened in recent weeks. The OPEC-plus agreement, voluntary cuts outside OPEC-plus plus, and production shut-ins are working together to start to rebalance the market. This will take time. As economies begin to open up, demand will follow, but the path to the next normal is not a straight line,” H.E. Dr. Al Jaber said.
H.E. Dr. Al Jaber continued by highlighting how ADNOC is reaping the benefits of its transformation over the past four years as it navigates this period of uncertainty.
“We are seeing the benefits of the steps we have taken on over the last four years. In fact, this crisis has highlighted just how forward-thinking our leadership’s guidance has been in directing this transformation. As a result, ADNOC is now far stronger and better positioned to manage the current market dynamics.
“Through our transformation, we have focused on what we can control and that is our costs. We’ve been laser-focused on being one of the lowest-cost producers in the world. And this has given us the flexibility and the resilience that we need at times like these. In this environment, we are continuing to work even harder to preserve our resources, and maximize our profitability,” H.E. Dr. Al Jaber said.
H.E. Dr. Al Jaber stressed ADNOC continues to make the health and safety of its employees its top priority as it proactively responds to the risks presented by the COVID-19 situation. He detailed how this approach closely aligns with the wise measures put in place by the UAE leadership to ensure the health and safety of everyone living in the country while driving health diplomacy around the world.
“The foundation of the UAE’s response has been comprehensive testing. We have so far conducted well over 1.5 million tests, one of the highest, if not the highest per capita ratios in the world. At the same time, the UAE believes that international cooperation is key to managing the crisis. So, we are staying connected to the rest of the world through health diplomacy, delivering aid, and personal protective equipment to 47 countries when they need it most.
“At ADNOC, we have taken additional precautions to enhance the safety of our employees, including comprehensive testing, minimising staff on site, and ensuring all office-based staff can work effectively from home. On top of that, transparent communication has been critical,” H.E. Dr. Al Jaber said.
The pandemic has highlighted the importance of three key leadership qualities – Capability, Crisis Management, and Connectivity, according to H.E. Dr. Al Jaber.
“Fundamentally, the capability of every organisation in keeping their people safe, and their operations running smoothly is being tested. At the same time, leaders are being measured against how well they manage a crisis, ensuring their organizations can run under stress. And then connectivity, how clearly leaders communicate to their people what they need to do to stay safe,” H.E. Dr. Al Jaber said.
Concluding the majlis, H.E. Dr. Al Jaber underscored the importance of business leaders conveying a positive, optimistic, and credible way forward, with humility and honesty. “It is essential to communicate a message of unity, that we are in this together and will find our way through together,” H.E. Dr. Al Jaber said.
ADNOC’s virtual majlis is part of several initiatives the company embarked on last month as part of its participation in the “UAE Volunteers” initiative. Broadcasted on ADNOC’s social media platforms, the virtual majlis is bringing together UAE government leaders and global experts to engage on the key issues facing the world today and provide actionable insights to topics ranging from how to rebuild the global and domestic economy, to what the post-COVID-19 workplace should look like.
UAE's ADNOC Distribution has announced the opening of four new ‘ADNOC On the go’ neighborhood service stations in Abu Dhabi, bringing fuel and retail to closer to its customers in communities where traditional stations would be impractical.
Following the launch of the inaugural ‘ADNOC On the go’ station at Al Bateen, ADNOC Distribution has opened in the Industrial City of Abu Dhabi (ICAD) 3, Mouzaz, Khalifa City and Al Khubaisi in Al Ain.
Ahmed Al Shamsi, Acting CEO of ADNOC Distribution, said: “It is more important than ever that our customer have access to fuel and everyday necessities in the most convenient and safest way.
“We have continued to implement initiatives that help our customers to stay safe when making their essential journeys, and we recognise that fuel is one such necessity. Our ‘ADNOC On the go’ neighborhood stations offer customers the opportunity to refuel and pick up essentials without leaving their car.”
Designed to bring ADNOC Distribution closer to its customers and the communities it serves, the ‘ADNOC On the go’ neighborhood stations were unveiled at ADIPEC in November 2019. Conceptualised by an in-house team of designers, they can be constructed in just four months and are smart technology enabled. The next-generation stations allow customers to shop at ADNOC Oasis convenience stores from the comfort of their own vehicles by ordering on a tablet and then collecting their items from the drive-thru.
Norway’s DNO reported that it had implemented 2020 budget cuts of US$350 million or 35 percent across all spend categories as it looks to protect its personnel and operations in response to the devastating impact of the coronavirus pandemic.
DNO said that it exited the first quarter of 2020 with a cash balance of $543 million, up from $486 million at yearend 2019.
DNO reported revenues of $206 million largely driven by lower oil prices and a net loss of $40 million on the back of impairments of its North Sea assets, again driven by lower oil prices. DNO said that it delivered strong operational metrics with production split 80:20 between the Kurdistan region of Iraq and the North Sea.
“One of the first to hit the brakes, DNO is positioned to be one of the first to press down on the accelerator with signs of sustained market recovery, notably through short-cycle drilling in Kurdistan,” said Bijan Mossavar-Rahmani, DNO’s Executive Chairman. “Lifting costs below USD 5 per barrel in Kurdistan give DNO competitive advantage when oil prices are weak and strong cash flow when oil prices recover,” he added.
DNO’s Company Working Interest (CWI) production averaged 99,857 barrels of oil equivalent per day (boepd) in the quarter, of which Kurdistan contributed 81,221 barrels of oil per day (bopd) and the North Sea 18,636 boepd.
Gross production at the DNO-operated Tawke and Peshkabir fields averaged 61,493 barrels and 53,714 bopd, respectively, as DNO hit the brakes on spending. After completing five development wells in the license during the quarter, DNO released four drilling rigs in Kurdistan but continues to utilize the Company-operated workover rig to service production wells, some of which have been shut in given current oil prices and payment delays. A drilling rig has been cold stacked at each field and can quickly be mobilized if conditions warrant.
In Kurdistan, the Company has reported a discovery in its operated Baeshiqa-2 exploration well after flowing variable rates of light oil and sour gas to surface from three Triassic aged reservoirs. Evaluation of test results will determine next steps towards further appraisal and assessment of commerciality. Additionally, a third well on the license will spud mid-month, with its primary target a shallower Jurassic formation on a separate structure (Zartik).
Meanwhile, the Peshkabir-to-Tawke gas capture, transport and reinjection project to effectively end CO2 emissions at Peshkabir (and therefore in DNO’s Kurdistan operations) and boost oil recovery at Tawke is completed and undergoing commissioning.
DNO’s 2020 North Sea drilling campaign has been scaled back and wells deferred, but firm plans remain in place for wells in five licenses over the balance of the year, including two exploration, one appraisal, two infill and two development/geopilot wells.
Last month, DNO received $90 million for Kurdistan oil exports, not included in the end of first quarter cash balances. Entitlement and override payments for November 2019 through February 2020 (total $233 million) remain outstanding, which the Kurdistan Regional Government has proposed to defer together with override payments commencing March 2020, given the deterioration of its own fiscal position with the collapse in oil prices.
Algeria’s Sonatrach Group and Russia’s Lukoil, have signed a memorandum of understanding (MoU) to look at possibilities for the two parties to invest jointly in exploration and production operations in Algeria
The deal could lead to increased production and exploration in the North African country.
The MoU follows the publishing of the new Algerian hydrocarbons law at the start of the year, which revised the institutional, legal and fiscal framework of the energy sector in Algeria.
The MoU also covers a review of international exploration and production opportunities.
Algeria is a leading natural gas producer and one of three top oil producers in Africa.
Norway’s DNO announced completion of testing and appraisal of the Baeshiqa-2 exploration well in the Kurdistan Region of Iraq.
The firm also said that that it would spud an exploration well on a separate prospect, Zartik, located 15 kilometers southeast on the same license.
The testing has proven oil and gas in three separate Triassic aged reservoirs. Evaluation of the test results will determine next steps towards further appraisal and assessment of commerciality. Following a workover and acid stimulation, testing resumed in March 2020 in three other separate Triassic aged reservoirs with each flowing variable rates of light oil and sour gas, too.
During the second phase of testing, the lower Kurra Chine B reservoir produced between 600 to 3,500 bopd with specific gravity ranging between 47o and 55o API and sour gas between 4 to18 MMcfd. The test demonstrated that the upper and lower Kurra Chine B reservoirs are in communication, proving a hydrocarbon-bearing reservoir interval of around 150 meters.
The Kurra Chine A reservoir flowed between 950 to 3,100 bopd of 30o to 34o API and sour gas ranging from 1.8 to 3.6 MMcfd from a hydrocarbon-bearing reservoir interval of 70 meters.
The Kurra Chine C reservoir was the deepest encountered in the well covering only 34 meters of what is expected to be a thicker reservoir of around 200 meters. The drilled interval has been exposed to significant fracture damage due to the pumping of lost circulation material. The reservoir produced between 200 to 1,200 bopd of 52o API gravity and sour gas between 3.8 to 6 MMcfd.
DNO acquired a 32 per cent interest and operatorship of the Baeshiqa license in 2017. Partners include ExxonMobil with 32 per cent, Turkish Energy Company with 16 per cent and the Kurdistan Regional Government with 20 per cent.
Saudi Aramco has provided an update on how it is managing during the COVID-19 crisis and continuing to supply the world the energy it needs.
Aramco said in a statement that it has prioritised the safety, health and wellbeing of our 70,000 men and women, as well as the communities it works in around the world.
"We have implemented measures to reduce the risk of infection and to mitigate the virus’s impact on our people and our business. The company and its employees have also supported community efforts to combat the spread of COVID-19."
Armaco stated: “Our inbuilt systems for managing global crises ensure all our sites remain operational. Our supply chains also remain uninterrupted, as we continue to work with our partners to ensure safe delivery of materials."
Aramco’s President and Chief Executive Officer, Amin H. Nasser, said: “The world has encountered unprecedented complexities as a result of COVID-19, which have required high levels of agility and adaptability.
“The safety and wellbeing of our people has always been Aramco’s top priority and we continue to put them first in every decision we make.
“I am proud of how Aramco has responded to the challenge with a strong, united and compassionate approach, which stems from our deep-rooted community values. COVID-19 has no doubt created physical barriers, but it has also brought many of us closer together.
“We stand by our promise to do all that we can in the fight against COVID-19, helping those around us and delivering the world’s energy throughout this pandemic.”
Abu Dhabi-based Gulf Marine Services (GMS) has announced that it has rejected Holland’s Seafox's unsolicited US$32 million approach to acquire GMS on 30th April.
The GMS Board confirmed that it has unanimously rejected the Seafox Proposal and in a statement said: "The Seafox Proposal comes at a time of significant macro uncertainty caused by Covid-19. This has resulted in depressed share prices globally, particularly in the Energy sector, and it has, the Board believes, resulted in the Company's shares trading at all-time lows recently."
GMS added that it is performing well despite the challenging environment. It says that new business has been successfully secured with eleven new contracts since the start of 2019 and the backlog stands at US$240 million.
GMS added that it is confident in future value creation as an independent company. It noted that all available vessels in the fleet are currently contracted - secured utilisation for 2020 of 76 per cent versus 69 per cent in 2019.
Tim Summers, executive chairman of GMS, said: "Operationally and commercially, GMS is in much better shape today than it was 12 months' ago. The Company is performing well notwithstanding the difficult environment; we have reduced costs and we will continue to reduce them further in 2020. We have agreed in principle a deal with our banks that provides the Company with long-term financial stability. The Board remains highly confident in the future success of the Company. Now is not the time for shareholders to sell at a price that is far below the true worth of GMS."
Oil prices rallied at the end of last week as U.S. and global benchmarks posted their first weekly gain in four weeks as Opec and its allies started on record output cuts on the 1st May.
Brent crude end the week on above $26 a barrel which showed a recovery after plunging below $20 in recent weeks. While, the U.S. benchmark West Texas Intermediate (WTI), was up more than 16 per cent at almost $18 a barrel, which saw it build on strong gains on in the middle of the week.
The jump in prices were the result of lower-than-expected gain in U.S. crude inventories. Data from the U.S. Energy Information Administration showed that crude stocks in the country rose by 9 million barrels last week to 527.6 million barrels, less than the 10.6 million barrel increase analysts had forecast. Meanwhile, fuel stocks fell by 3.7 million barrels thanks to a slight rise in demand.
Rystad Energy analysis showed that the global imbalance between oil supply and demand, which they estimated had risen to 26.4 million barrels per day in April, was due to fall to 13.6 million barrels in May and then fall further to just 6.1 million bpd.
A big reason why oil jumped at the end of last week was because the May 1 saw OPEC and its allies start to cut production as part of the new OPEC+ deal to take a total of 9.7 million bpd off the market in May and June.