IS - Projects advance, assets hit the market amid volatility - June 2020Although the oil and gas industry is still nowhere near where it was at the beginning of the year, there are signs that companies are starting to take cautious steps forward as pandemic restrictions ease and oil prices begin to recover. Senex Energy announced it completed its $280 million Surat gas project with 30 fewer wells than it originally thought it would need (PG.1). Canada loosened restrictions on exploratory drilling off Newfoundland (PG.1), where Equinor reportedly made a discovery in...
Jun 22, 2020
IS - Exxon reportedly plans to revive UK North Sea sale process - June 2020ExxonMobil plans to relaunch the sale process for its UK North Sea assets after low oil prices and the coronavirus pandemic led the supermajor to postpone the effort earlier this year, unnamed sources told Reuters for a June 11 report. The divestment is expected to bring in $1-1.5 billion, less than the more than $2 billion that sources said Exxon was seeking when it launched the marketing process late last year with Jefferies. The supermajor has recently held discussions with several...
Jun 22, 2020
A&D - Conoco clinches $1.46B northern Australia sale to Santos - June 2020ConocoPhillips completed the $1.46 billion sale of its assets in northern Australia and Timor Leste on May 27 to Australia’s Santos Ltd. The companies restructured payments so that $125 million of the originally announced $1.39 billion upfront cash will instead be due upon the recently deferred FID for the Barossa gas condensate development off Australia’s Northern Territory. That brings the total due upon FID to $200 million. Conoco said it has received net cash proceeds of $765 million in Q2,...
Jun 12, 2020
IS - Santos closes $1.5B purchase of Conoco’s northern Australia - May 2020Santos Ltd. completed its $1.46 billion acquisition of ConocoPhillips’ assets in northern Australia and Timor Leste on May 27. The companies restructured payments so $125 million of the originally announced $1.39 billion upfront cash will instead be due upon the recently deferred FID for the Barossa gas condensate development off Australia’s Northern Territory. That brings the total due upon FID to $200 million. Conoco said it has received net cash proceeds of $765 million in Q2, which it will...
May 29, 2020
A&D - XTO shops Eagle Ford & Austin Chalk assets on Texas Gulf Coast - May 2020ExxonMobil subsidiary XTO Energy is offering for sale 10,491 net leasehold acres (21,514 gross) targeting the Eagle Ford and Austin Chalk and associated production in southeast Texas, with an option to lease additional mineral rights. The assets include net production of 115 boe/d (48% oil) from nine operated, 37 non-operated and 29 ORRI producing wells, with four additional nonop wells awaiting initial production. Located primarily in Burleson, Lee and Fayette counties, the acreage for...
May 22, 2020
QP - The Week in Crude Oil Markets - May 11, 2020WTI for June delivery ended last week settling at $24.74/bbl, up 29.5% from Monday’s open. Prices continued to increase on news of deeper production cuts in the United States as well as green shoots emerging in gasoline demand. Still, one can’t help but get the sense that futures markets are getting a bit ahead of the recovery, especially when one considers the ominous signs emerging in distillates, difficult export arbs for US light sweet crude, and the rising longto-short ratio in Nymex WTI...
May 11, 2020
IS - CNOOC cuts 2020 production forecast by 3%, capex by 10% - May 2020CNOOC reduced its net production guidance for 2020 from 1.42-1.45 MMboe/d to 1.38-1.41 MMboe/d and its capex budget from RMB 85-95 billion ($12.0-13.4 billion) to RMB 75-85 billion ($10.6-12.0 billion). CEO Xu Keqiang said that the company would continue to implement more stringent cost controls and strengthen cash flow management this year. CNOOC’s capex during Q1 was RMB 16.9 billion ($2.4 billion), up 20.1% YOY because of increased workloads. Overall Q1 production averaged 1.45...
May 08, 2020
IS - Chevron completes $1.6B exit from major Caspian project - May 2020Chevron completed the $1.57 billion sale of its stake in the largest oil field in the Azerbaijan sector of the Caspian Sea to MOL Group. The Hungarian company acquired 9.57% WI in the Azeri-Chirag-Gunashli field and an 8.9% stake in the Baku-TbilisiCeyhan pipeline, both operated by BP. The disposal marks Chevron’s exit from Azerbaijan. Combined with other recent sales, the deal helped Chevron surpass the midpoint of its 2018-2020 divestment target. MOL described the transaction as a major...
May 08, 2020
PS - Citizen delivers two strong gas wells in Custer County - April 2020In Custer County, Oklahoma, Citizen Energy completed a strong Mississippian gas well. The Lancet #1H-17-8 was completed with a 7,613-ft effective lateral fracked with 18.9 MMlb of proppant (2,488 lb per perforated lateral ft). During a 24- hour test, the well produced 10.7 MMcfe/d (98% gas) on a 16/64-inch choke at 8,018 psi FTP. Also on the Lancet lease, the Lancet #2H-17-20 performed well. Sporting a 7,553-ft effective lateral fracked with 15.2 MMlb of proppant (2,094 lb/ft), the well...
Apr 22, 2020
MI - Summit-XTO Double E gas pipeline is A-OK with FERC so far - April 2020The US Federal Energy Regulatory Commission said that the proposed 135-mile Double E Delaware Basin natural gas pipeline project would not significantly affect the human environment. A blanket certificate is expected in Q3 but the recent FERC verdict is a step on the path toward Summit Midstream Partners commissioning of the pipeline in 2021. The pipeline will be built to deliver up to 1.35 Bcf/d from receipt points in New Mexico and Texas to the Waha hub. XTO Energy, a subsidiary of...
Apr 17, 2020
IS - Petrobras makes potential multi-Bbo pre-salt find at Uirapuru - April 2020Petrobras informed Brazil’s National Agency of Petroleum, Natural Gas and Biofuels (ANP) that it encountered oil shows in the highly anticipated Araucaria pre-salt wildcat on the Uirapuru block off Brazil. The well is located 200 km off the coast in the Santos Basin and was drilled in 1,995 meters of water. The mandatory notifications to the ANP do not indicate commercial viability or give resource estimates, but the prospect is believed to have the potential to be a multibillion-barrel...
Apr 15, 2020
MCS - Citizen delivers two strong gas wells in Custer County - April 8, 2020In Custer County, Oklahoma, Citizen Energy completed a strong Mississippian gas well. The Lancet #1H-17-8 was completed with a 7,613-ft effective lateral fracked with 18.9 MMlb of proppant (2,488 lb per perforated lateral ft). During a 24-hour test, the well produced 10.7 MMcfe/d (98% gas) on a 16/64-inch choke at 8,018 psi FTP. Also on the Lancet lease, the Lancet #2H-17-20 performed well. Sporting a 7,553-ft effective lateral fracked with 15.2 MMlb of proppant (2,094 lb/ft), the well produced...
Apr 08, 2020
A&D - What's on the Market - April 7, 2020Dallas-based Chase Avenue Group has retained The Oil and Gas Asset Clearinghouse to market 36 gross acres in Winkler County, Texas, with an operated 100% WI (80% NRI). The offset area includes 120 Wolfcamp wells spudded since January 2015 within a 10-mile radius of the marketed assets with initial production of up to 2,400 boe/d, as well as 46 drilling permits approved in the last six months. Offset operators include Chevron, Apache, ExxonMobil, Concho Resources and other major producers....
Apr 07, 2020
A&D - Exxon and Petronas mull sale of Chad-Cameroon project - April 2020ExxonMobil and Malaysia’s Petronas are working with advisers on a proposed sale of their stakes in the Chad-Cameroon Petroleum Development and Pipeline project that could fetch a total of more than $1 billion, Japanese wealth management firm Osaka Matsui Management said in a March 10 statement. The joint project consists of oil fields in southern Chad’s Doba Basin and a major pipeline transporting crude to a marine terminal for exportation in Cameroon. Exxon has retained Standard...
Apr 07, 2020
IS - FSU & Eastern Europe Briefs - May 29, 2020London-listed Regal Petroleum completed its SV-54 development well on the company’s Svyrydivske gas and condensate field in Ukraine. The well was drilled to a depth of 5,322 meters and targeted the B-22 and B-23 reservoirs in the Visean formation. Regal perforated one 5-meter interval from 5,303 meters to 5,308 meters in the B-23 reservoir. Currently, SV-54 is producing 3 MMcf/d (93% gas, 7% condensate). The well has been tied into existing gas processing facilities for long-term production...
May 29, 2020