December 16, 2017

China’s Oil Giants Don’t Fit Into Cheap-Oil World – WSJ

China’s three state energy giants won’t dare blame their own country. But thanks to China’s slowing demand pulling down the oil price, the pain those companies feel is about to get worse. The suffering wasn’t necessarily on display Thursday, when oil prices rebounded as global fears ebbed. Shares of Cnooc, the Chinese offshore oil producer, soared 14%, the largest one-day increase in the last decade, partly also because it reported a dividend worth 63% of net profit during the first half of the year, higher than the usual 30% to 40% ratio. ENLARGE Yet a high payout isn’t sustainable when Brent crude has fallen…

Oil Exploration Companies Scramble to Cut Costs – WSJ

LONDON—When oil prices started falling last summer, Genel Energy PLC, a small exploration company listed here, asked the government of Ethiopia to extend its exploration license, so it could put off drilling and save some cash. Across the industry, international wildcatters like Genel—which got an 18-month extension in Ethiopia—are renegotiating drilling commitments, selling off stakes in licenses and canceling plans to drill exploration wells, in an attempt to pare back budgets that once hinged on expensive drilling programs. “When capital becomes very scarce, you end up having sensible discussions with governments about how to re-phase activity to reflect the realities of the…

French oil company Total sells $900m of North Sea assets – Telegraph

French oil giant Total has sold over $900m of pipeline infrastructure assets in the North Sea, but said that it plans to become the biggest oil and gas producer in the UK this year. The Paris-based company said that it had sold the Frigg UK, SIRGE gas pipelines and the St. Fergus gas terminal to an affiliate of US-based private equity firm ArcLight Capital. “Infrastructure assets like these are not part of our core business,” said Michael Borrell, head of continental Europe and Central Asia at Total’s production division. Despite the sale, Total said that it remains committed to becoming the biggest producing oil…

It will take much cheaper oil for Saudi Arabia to take action | The Economist

THERE comes a time when any self-respecting cartel boss has to focus on protecting his turf. Saudi Arabia has spent the past nine months fighting to safeguard its share of the global oil market, increasing its own crude production to record highs. That exasperates its weaker OPEC partners. It also seems utterly self-defeating, especially after world oil prices plunged below $45 a barrel on August 24th, a six-and-a half year low. Some say its folly is attempting to fight an unwinnable war against American “frackers”. But its eye may be more on local Shia-led rivals, Iraq and Iran. On August…

Total to sell St Fergus gas terminal and pipeline interests for £583m – BBC News

Total has signed a deal to sell off all its interests in the St Fergus gas terminal in Aberdeenshire. The £583m deal – subject to approval – to North Sea Midstream Partners (NSMP) includes the FUKA and SIRGE pipelines. Total said there would be no job losses and that all members of staff at the terminal would be transferred to the new operators. BBC Scotland understands contractors will continue to be offered work at the terminal. Energy and process industry specialist, the px Group, has signed a long term agreement with NSMP to operate and maintain the St Fergus terminal and…

Oil and gas reforms create fresh investor interest | The Worldfolio

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Having suffered its worst energy crisis in decades, the oil and gas industry is now bouncing back. Following bold reforms to minimize debt, a host of new agreements have been reached with international oil companies, ringing in billions in investment and setting Egypt on course to once again thrive as an oil producer. Egypt is relying on its oil and gas sector to drive its ambitious economic plan and help the country achieve its overall economic targets, a goal it will need to accomplish while the industry continues to overcome some acute challenges. “[Achieving] sustainable economic growth is at the…

Gatwick oil find: Report boosts UK Oil & Gas’ prospects at Horse Hill | Business | London Evening Standard

Hopes for millions of barrels of oil gushing from the South Downs around Gatwick airport came a very small step closer to reality today. A report from independent consultants Schlumberger, commissioned by the explorer UK Oil & Gas, said there are 11 billion barrels of so-called “oil in place” in the 55 square miles of the two Horse Hill licences. After the first flurry of excitement in April over initial findings, UK Oil & Gas and its fellow shareholders in the licences said this is still not an estimate of how much oil, if any, might actually be recovered. But boss…

China’s slowdown and cheap oil – BBC News

China’s economic slowdown has finally left its imprint on global stock markets. But the impact has been discernible in the oil market for many months and it has gone further in the last few days. The reason: China is the world’s biggest importer of crude oil. It took top spot in April this year and even before that was behind only the United Sates. Slower economic growth in China means less demand for oil than there would otherwise have been. Of course there are other factors behind the oil price collapse of the last year, some of them leading to abundant supplies….

Cancelled: Sahara, Aiteo, Duke Oil, Ocean Marine Contracts, Says NNPC, Articles | THISDAY LIVE

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The Nigerian National Petroleum Corporation (NNPC) wednesday confirmed the cancellation of the Offshore Processing Agreements (OPAs) between the corporation and Sahara Energy Resources (Nig.) Ltd. founded by the trio of Mr. Tope Sonubi, Mr. Tonye Cole and Mr. Ade Odunsi; Aiteo Energy Resources Limited founded by Mr. Benedict Peters; and Duke Oil Company Inc., a subsidiary of NNPC. It also announced the cancellation of the contract for the delivery of crude oil to the Port Harcourt, Warri and Kaduna refineries awarded to Ocean Marine Tankers (OMT) Limited, a company founded by the Skye Bank Chairman, Mr. Tunde Ayeni, Edo State…

BP Restarts Part of Indiana Oil Refinery After Repairs – ABC News

A large Indiana oil refinery whose unplanned shutdown for repairs earlier this month caused gasoline prices in the Great Lakes region to spike restarted Tuesday, leading experts to predict a quick drop in prices. BP issued a news release Tuesday saying it has safely restarted a large crude distillation unit at its refinery in Whiting, 15 miles southeast of Chicago. The unit had been shut down since Aug. 8 for unscheduled repair work. Gas prices were about $2.384 on Aug. 9. “Retail prices across the Midwest had been moving lower already for the past seven days or so after that issue first…