IS - Shell-PetroChina JV sanctions Phase 1 of 5 Tcf Surat project - May 2020Coal seam gas producer Arrow Energy, a 50:50 JV between Shell and PetroChina, has sanctioned Phase 1 of the Surat gas project in southern Queensland, Australia. Construction is expected to begin this year with first gas coming in 2021. Phase 1 will expand Arrow’s current operational areas in Daandine and Tipton, and it will supply gas to the Curtis Island LNG facility under a 27-year gas supply agreement that was signed in 2017. Curtis Island is operated by the Shellled venture...
May 08, 2020
IS - Glimmers of good news shine through grim earnings season - May 2020As earnings season begins in earnest, it is clear the coronavirus pandemic has run roughshod over companies’ bottom lines. Shell cut its dividend for the first time since World War II and its current cost of supplies earnings excluding identified items fell nearly 50% to $2.85 billion (PG.1). BP posted a net loss of $4.38 billion in Q1, and said it remains committed to its netzero plans (PG.16). Canada’s Husky Oil also cut capex again to C$1.6-1.8 billion ($1.1-1.3 billion) and suffered a net...
May 08, 2020
IS - Price war over, but reduced demand still haunting O&G - April 2020The international oil and gas industry is getting a respite from the price war (PG.17), but companies are still facing significant pressure from reduced demand brought about by the coronavirus pandemic. Canadian producers have reduced 2020 capex by at least C$6.7 billion ($4.8 billion) compared to 2019 levels (PG.1). Supermajors have continued to pull back as well, with ExxonMobil (PG.13) and BP (PG.5) the last two to announce measures to cut costs. Woodside Petroleum also pushed back the final...
Apr 15, 2020
IS - PetroChina discovers estimated 1.7 Bboe in Tarim Basin - April 2020CNPC’s pubicly listed arm PetroChina discovered oil and gas in its Manshen-1 well in the Tarim Basin onshore Xinjiang province, China. During testing, the well produced 7,400 boe/d (71% oil) through a 10-mm choke, Reuters reported. Based on the production test, PetroChina estimated the Manshen reservoir holds 1.7 Bboe. The company produced 206 MMboe in the Tarim Basin last year, or 564,000 boe/d (20% oil). Two of its most recent wells in the basin were Bozi9 and Luntan-1. Bozi-9...
Apr 15, 2020
IS - People & Companies - April 15, 2020The Alberta Energy Regulator named Laurie Pushor as its president and CEO, replacing interim CEO Gordon Lambert. Pushor was previously the deputy minister of the Saskatchewan Ministry of Energy and Resources. Lambert guided the AER through a period of restructuring and provincial investigations after Jim Ellis resigned as CEO in 2018 over allegations of wrongdoing. Coro Energy is reducing executive staffing levels to cut costs. CEO James Menzies elected not to accept any of the options...
Apr 15, 2020
MI- People & Companies - January 3,2020Avenir LNG Ltd. COO Milorad Doljanin assumed the role of CEO on Dec. 13. Doljanin joined the London-based shipper in August as COO after 15 years of LNG trading and commercial experience with PetroChina, Gazprom, EON and BP. CEO Andrew Pickering retired after almost 40 years with Stolt-Nielsen Ltd., the last five years heading the LNG group, which led to the launch of Avenir LNG in 2018. NGL Energy Partners appointed Derek Reiners to its board of directors, replacing James Kneale, who...
Jan 03, 2020
IS - China rattles the pipes, forms new entity to gain investment - December 2019Hoping to stimulate investment to expand its $70 billion network and increase competition for infrastructure controlled mainly by three state-owned oil companies, China has set up China Oil & Gas Piping Network Corp. to manage most of the country’s pipeline infrastructure. The pipelines have been controlled by CNPC, Sinopec and CNOOC, which also control underground natural gas storage facilities and several LNG import terminals. As YE18, CNPC owned 63% of China’s mainstream oil and gas...
Dec 31, 2019
IS - Nearing domestic listing time, Aramco wants partners to invest - October 2019Saudi Aramco is seeking cornerstone investors for its initial public offering and has approached Petronas and Sinopec about taking a position, sources told Reuters. The Malaysian and Chinese oil companies are Aramco partners on several projects. The Saudis have also had discussions with PetroChina parent CNPC and China’s sovereign wealth fund, some UAE state-owned entities, including Abu Dhabi sovereign fund Mubadala, and Canadian pension funds about coming in as investors, according to people...
Oct 15, 2019
CS - Clough gets contract for LNG Canada’s loadout line trestle - October 2019LNG Canada’s prime contractor JGC Fluor has awarded Australia-based Clough a contract for engineering, procurement and construction of the project’s loadout line trestle. It is the first major international maritime contract for Clough since 2010. The company said its project team will initially be based out of its Calgary office before mobilizing to the project site during construction. JGC Fluor has awarded over 35 contracts so far for the $40 billion project, with 18 pending through...
Oct 02, 2019
MI - Clough gets contract for LNG Canada’s loadout line trestle - September 2019LNG Canada’s prime contractor JGC Fluor has awarded Australia-based Clough a contract for engineering, procurement and construction of the project’s loadout line trestle. It is the first major international maritime contract for Clough since 2010. The company said its project team will initially be based out of its Calgary office before mobilizing to the project site during construction. JGC Fluor has awarded over 35 contracts so far for the $40 billion project, with 18 pending through July...
Sep 26, 2019
CS - Oil sands output from foreign companies declined in last 4 years - September 2019Oil sands production from non-Canadian companies declined more than 11% over the past four years, according to an analysis of Alberta Energy Regulator output numbers by The Canadian Press. As foreign companies have cashed out of the sector, their oil sands production has dropped from 647,000 bo/d in 2014 to 573,000 bo/d in 2018. During that same period, Canada’s overall oil sands output has increased 46% from 1.98 MMbo/d to 2.90 MMbo/d, but foreign companies’ working-interest share of that...
Sep 11, 2019
IS - Shell makes $419MM Australia power debut through ERM buy - September 2019Shell is making its debut in Australia’s power sector with a $419 million (A$617 million) cash takeover bid for ERM Power Ltd., the country’s second-largest electricity provider to businesses and industry. Through a scheme implementation deed, ERM agreed to the A$2.465/share bid and recommended that shareholders approve it in a vote slated for November. The offer represents a 43.3% premium to ERM’s prior-day closing price of A$1.72 and would give the Anglo-Dutch supermajor nearly a quarter...
Sep 03, 2019
CS -Canada poised to progress on three LNG projects - July 2019If Pieridae Energy’s Goldboro LNG
project receives a positive final investment
decision, it will be the second major LNG
facility in Canada to secure approval after
Shell’s $31 billion LNG Canada project
in Kitimat, British Columbia. Shell owns a
40% stake in the 14 mtpa, two-train project,
which received a positive FID last October.
The Anglo-Dutch supermajor is partnered
with Petronas, PetroChina, Japan’s
Mitsubishi and South Korea’s Kogas.
Two additional trains could be added
in a subsequent...
Jul 10, 2019
MI - Ottawa sends $208MM toward Shell’s LNG Canada - July 2019The Shell-led LNG Canada project in British Columbia received a C$275 million
($208 million) investment from the Canadian government. Finance Minister Bill Morneau
confirmed the investment on June 24, which had been originally pledged by Prime
Minister Justin Trudeau in October, when LNG Canada became the first Canadian
LNG export project to reach its final
investment decision.The investment is a drop in the bucket
for the C$40 billion project, the largest single private sector...
Jul 03, 2019
IS - Asia Briefs - June 06, 2019Cairn Energy Plc has
hired the Aban II drilling rig for a $184
million drilling campaign targeting 50-
100 MMboe from the aging Ravva oil and
gas field offshore India. The campaign will
start in Q4 and is expected to cover eight
firm wells. Ravva is a mature field that has
produced since 1994. In 2018, production
averaged less than 15,000 boe/d, down
13% from 2017. Eni is planning to drill its first well
on Block RSF-5 offshore Myanmar in
November or December, Upstream
reported....
Jun 06, 2019