Posts
All Comments
BG Group announced Monday that one of its non-executive directors, Philippe Varin, has retired from the firm's board.
BG Group Chairman Andrew Gold commented in a company statement:
"I would like to express on behalf of BG Group's board our thanks and appreciation for Philippe's advice and support over the years. We have benefited greatly from his contributions."
Varin was appointed as a non-executive director in 2006. He was a member of the firm's audit and remuneration committees.
BG Group announced Monday that one of its non-executive directors, Philippe Varin, has retired from the firm's board.
BG Group Chairman Andrew Gold commented in a company statement:
"I would like to express on behalf of BG Group's board our thanks and appreciation for Philippe's advice and support over the years. We have benefited greatly from his contributions."
Varin was appointed as a non-executive director in 2006. He was a member of the firm's audit and remuneration committees.
Enegi Oil announced Monday that it is farming out part of Block 22/12b in the UK North Sea to Azimuth Limited. The block contains the Phoenix discovery, while its remaining acreage is made up of potential exploration opportunities.
Azimuth will earn a 50-percent interest in the exploration area in exchange for the completion of an agreed work program that includes certain geological, geophysical and reservoir analysis. This analysis will use existing seismic and well data in respect of both the Phoenix area and the exploration area that Azimuth currently possesses. Enegi, and its partner ABTechnology, will retain a 100-percent working interest in the Phoenix area.
Block 22/12b is located in the Forties-Montrose High area of the central North Sea. The license was awarded to Enegi in the 27th Seaward licensing round for the UK Continental Shelf in October 2012.
Enegi CEO Alan Minty commented in a statement:
"This is the second farm-out agreement that we have completed with Azimuth and we are delighted to be working with them and have access to their extensive exploration expertise on both our North Sea assets.
"Both deals are completely in line with our strategy of de-risking our portfolio whilst maintaining a significant interest in work programmes which we believe have the ability to deliver value to the Company for a minimal capital outlay."
On February 1, Enegi announced it had reached an agreement to farm out to Azimuth part of North Sea Block 3/23, which contains the Malvolio prospect.
A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Hydraulic fracturing operations are back on in the UK after the country's government declared in early December that it had lifted a temporary ban on the practice. But the controversy surrounding the safety of shale gas fracking has not gone away despite the announcement from the Chancellor of the Exchequer that the Department of Energy and Climate Change would establish an Office for Unconventional Gas and Oil.
The news was followed in January by an announcement from Cuadrilla Resources that it plans to submit a planning application to Lancashire County Council, in northwest England, to conduct hydraulic fracturing and flow testing at a well site near the village of Banks. In December, Rigzone reported that the British Geological Society believes shale deposits in the Bowland Basin area of Lancashire could amount to 300 trillion cubic feet of gas.
One of the conditions for the UK government's relenting over shale gas fracking was that it would be subject to new controls to mitigate the risks of seismic activity.
Fracking was originally suspended in the UK in May 2011 after two small seismic tremors were detected in Lancashire near what was then the country's only fracking operation.
As a result, companies planning to carry out hydraulic fracking must now:
Conduct a prior review before fracking begins to assess seismic risk and the existence of faultsSubmit a fracking plan to the Department of Energy and Climate Change (DECC) showing how seismic risks will be addressedCarry out seismic monitoring before, during and after frackingThe government also insists that a new traffic light system is employed to categorize seismic activity and direct appropriate responses, with a trigger mechanism being used to stop fracking operations in certain conditions.
Cuadrilla, meanwhile, appears to be taking the seismic issue very seriously. Late January, the company announced plans to install the same sensitive monitoring technology around its Anna's Road site that the company had already installed at the Banks site last year.
However, the new focus on monitoring seismic activity connected to fracking is not nearly enough to make the practice safe, according to several groups. As soon as the government decision to allow fracking was made in December, Friends of the Earth Executive Director Andy Atkins issued a statement in which he accused the government of being reckless and that the decision "threatens to contaminate our air and water".
Greenpeace UK added that Freedom of Information requests had revealed that the UK Environment Agency privately expressed fears to the government over threats to drinking water near proposed fracking sites in Sussex, England.
Greenpeace and Friends of the Earth are two organizations fundamentally opposed to any technology that will see an increased use in fossil fuels – even if it means the increased use of natural gas (which is cleaner in terms of carbon emissions than oil and coal). But there are other voices, friendlier to the oil and gas industry, who believe that the government has got it wrong when it comes to its approach to fracking.
Mike Hill, an engineer who lives in the area where Cuadrilla is carrying out its fracking operations, has been lobbying the UK government for a more rigorous approach to regulating the activity. Having worked in the oil and gas sector himself, and now a director of Gemini Control & Automation, he takes a more sober view of fracking but wants to see operations thoroughly checked to ensure it is done safely.
"I got involved in this about two years ago simply because, when I heard that fracking was coming to the UK, I knew that if it is not regulated properly the risks are fairly high," he told Rigzone in a recent interview.
After getting in touch with the UK's Health and Safety Executive (HSE) and the Environment Agency two years ago, Hill expected these bodies to be "very hot" when it came to regulating fracking.
"I was really expecting that was going to be the case but the responses I got at the time… were absolutely atrocious. It was breathtakingly complacent. Well, breathtakingly complacent from the HSE and, quite frankly, incompetent from the Environment Agency," he said.
"They didn't know what they were talking about. They don't understand oil and gas. They've never had to with [UK] oil companies being offshore and out of their scope and remit."
A key criticism Hill has is that these agencies – which are charged with health and safety, as well as environmental protection, in the UK – have been approaching the practice of fracking "with an offshore bent".
While acknowledging that the UK has sufficient regulations to ensure that its offshore oil and gas sector cannot cause another Deepwater Horizon or Exxon Valdez disaster, Hill believes that the problem with applying these same regulations onshore is that they do not take the public into account.
"There is no public offshore," he said.
"Cuadrilla is fracking 250 meters [820 feet] from the largest housing estate in Lytham St. Annes, with 2,000 homes on it. There is a public – a big one. And you can't ignore that fact."
"I live in the fracking zone. My kids live in the fracking zone. If this [activity] is properly regulated, I've no issue with it. I am not anti-fracking at all. But if you don't regulate this industry properly, introduce some specific onshore shale gas exploration regs and do proper inspections, then I do have a problem with it."
Hill, who has met with various government advisers involved with fracking (as well as Cuadrilla itself) several times during the past two years, has made it clear to them that he feels the offshore regulations developed in the 1990s, (following the North Sea’s Piper Alpha disaster in 1988) are not sufficient to address the issues with onshore drilling, exploration and production.
He wants to see regulations that cover the quality of cement used in onshore drilling, including onsite sampling and laboratory testing, along with several other regulations that will cover good safety practices such as: surface methane detection, post tremor actions, publication of which fracking chemicals are used at each well and the storage and disposal of flow-back water.
Hill also insists that well site inspections should be required and that they be random so that the Environment Agency or Health and Safety Executive can go and check which chemicals are being put down shale fracking wells "because, believe it or not, they don't check".
"You've got to have independent regulation. You can't just rely on self-regulation because, when push comes to shove, this is a very expensive business and if [a company] gets an issue that's going to cost it, say, three million pounds to resolve, or they can do it for 30,000 but in a slightly naughty manner, which option is it going to take when it knows categorically that no-one is inspecting and it absolutely won't be caught out? These are private companies that are there to make a profit."
The HSE confirmed to Rigzone that it made an inspection visit to Cuadrilla's Preese Hall and Grange Hill sites in March 2011 and that, as part of its well notification process, it has held six "inspection meetings" with Cuadrilla at both the firm's offices and at the HSE's own offices. The body also insists that it has well inspectors who "maintain regular contact" with Cuadrilla so that they are kept up to date with shale gas operations.
The HSE also made the point that well site visits, whether planned or unannounced, "can be of very limited value on their own in assessing well integrity and the management of well risks". Instead, it said that given the complexity of oil and gas wells "the key to well integrity inspection is to ensure that the operator is managing risks effectively throughout the life cycle of the well".
Hill is sticking to his guns, however, and believes a set of onshore drilling proper regulations are required to prevent a major incident.
"I think unless that happens we are going to have some sort of disaster at some point in time – our own version of Gaslands. There will be a public outcry and shale gas will then be banned in the UK. So we won't get that shale gas out of the ground and the UK won't benefit from the energy security it would provide."
A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.PetroNeft Resources reported Friday that it has successfully completed its Arbuzovskoye well 112 on Licence 61 in the Tomsk Oblast, Russia, while well 105 is currently drilling ahead.
PetroNeft said there was no water production associated with well 112, which had an initial flow rate of 140 barrels of oil per day. The well is currently shut in for pressure build-up testing.
Production from two Arbuzovskoye wells has been temporarily reduced by around 300 bopd due to mechanical issues, but the firm expects this will be fixed by work over or pressure maintenance.
PetroNeft added that total production on the license is running at 2,600 bopd – which excludes the 400-plus bopd potential from well 112 and the two mechanically-reduced Arbuzovskoye.
PetroNeft Resources CEO Dennis Francis commented in a statement:
"The initial flow rate on well 112 is encouraging and the fact that there is no water production bodes well. We continue to delineate the field and hope to alleviate the issues with the two Arbuzovskoye wells in the coming weeks. We also look forward to completing further wells in Arbuzovskoye and implementing the planned pressure maintenance programme over the coming months."
To follow through with President Obama's all-of-the-above energy strategy to expand domestic energy production, the U.S. Department of the Interior announced that the upcoming Central Gulf of Mexico Lease Sale 227 will offer 38.6 million acres offshore Louisiana, Mississippi and Alabama for oil and gas exploration and development.
The Interior stated that this lease sale could lead to the production of nearly one billion barrels of oil and almost 4 trillion cubic feet of natural gas.
"The Obama Administration is fully committed to developing our domestic energy resources to create jobs, foster economic opportunities, and reduce America's dependence on foreign oil," said Secretary of the Interior Ken Salazar in a released statement. "Exploration and development of the Gulf of Mexico's vital energy resources will continue to help power our nation and drive our economy."
The lease sale will be held at the Mercedes-Benz Superdome in New Orleans March 20 and includes all un-leased areas in the Central Gulf of Mexico Planning Area. The Administration created a new outer Continental Shelf Oil and Gas Leasing Program for 2012-2017, and this lease sale marks the second sale under the administration and the first of five central Gulf of Mexico lease sales that will be held under the new program.
"We are seeing a very positive trend for the offshore industry in the Gulf of Mexico, and we look forward to Central Gulf sale 227," said National Ocean Industries Association (NOIA) President Randall Luthi. "It should provide a more accurate barometer of industry's interest in the region than the last Central Gulf sale, which was delayed for over a year and saw pent-up industry interest on display."
BOEM estimates the lease sale, which includes 7,299 blocks in water depths of more than 11,115 feet, could result in the production of 0.46 billion to 0.89 billion barrels of oil, and 1.9 trillion cubic feet to 3.9 trillion cubic feet of natural gas.
"Lease sales such as this are a good reminder that offshore oil and natural gas are a vital part of an 'all of the above' energy strategy," added Luthi.
With more than 10 years of journalism experience, Robin Dupre specializes in the offshore sector of the oil and gas industry. Email Robin at rdupre@rigzone.com.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.Singapore-based Kruez Subsea Marine revealed Thursday that it has entered into a conditional agreement with a Chinese shipbuilder for a multipurpose subsea dive support and construction vessel worth $114 million.
Kruez Holdings disclosed in October last year that it expects to take delivery the vessel, 30 months from the contract's effective date.
The vessel, Kruez noted, will be equipped with a 140-tonne subsea crane, a 13,993-square-foot deck space, a pair of remote operated vehicles capable of operating at water depths of 9,483 feet and be able to accommodate 130 people.
"The proposed acquisition is undertaken as part of the company’s business strategy to expand its range of subsea services through the acquisition of new operating assets, thereby enhancing its subsea capabilities in shallow, deep and ultra-deep offshore oil and gas operations in the world," Kruez said in its earlier statement.
A spokesperson representing Kruez confirmed with Rigzone Thursday the details released in October remains unchanged.
Quintella has reported on the upstream and downstream oil and petrochemicals markets from 2004. Email Quintella at quintella.koh@rigzone.com.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.To follow through with President Obama's all-of-the-above energy strategy to expand domestic energy production, the U.S. Department of the Interior announced that the upcoming Central Gulf of Mexico Lease Sale 227 will offer 38.6 million acres offshore Louisiana, Mississippi and Alabama for oil and gas exploration and development.
The Interior stated that this lease sale could lead to the production of nearly one billion barrels of oil and almost 4 trillion cubic feet of natural gas.
"The Obama Administration is fully committed to developing our domestic energy resources to create jobs, foster economic opportunities, and reduce America's dependence on foreign oil," said Secretary of the Interior Ken Salazar in a released statement. "Exploration and development of the Gulf of Mexico's vital energy resources will continue to help power our nation and drive our economy."
The lease sale will be held at the Mercedes-Benz Superdome in New Orleans March 20 and includes all un-leased areas in the Central Gulf of Mexico Planning Area. The Administration created a new outer Continental Shelf Oil and Gas Leasing Program for 2012-2017, and this lease sale marks the second sale under the administration and the first of five central Gulf of Mexico lease sales that will be held under the new program.
"We are seeing a very positive trend for the offshore industry in the Gulf of Mexico, and we look forward to Central Gulf sale 227," said National Ocean Industries Association (NOIA) President Randall Luthi. "It should provide a more accurate barometer of industry's interest in the region than the last Central Gulf sale, which was delayed for over a year and saw pent-up industry interest on display."
BOEM estimates the lease sale, which includes 7,299 blocks in water depths of more than 11,115 feet, could result in the production of 0.46 billion to 0.89 billion barrels of oil, and 1.9 trillion cubic feet to 3.9 trillion cubic feet of natural gas.
"Lease sales such as this are a good reminder that offshore oil and natural gas are a vital part of an 'all of the above' energy strategy," added Luthi.
With more than 10 years of journalism experience, Robin Dupre specializes in the offshore sector of the oil and gas industry. Email Robin at rdupre@rigzone.com.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.Russia-focused Urals Energy announced Thursday that it plans to drill up to three new wells during 2013 at its Arcticneft and Petrosakh operations, after the firm resolved legacy issues to do with loans owed to Petraco Oil Company.
Urals said that the only sum that remains outstanding to Petraco relates to interest owed and total approximately $3 million. It added that the interest payment is expected to be made before the end of this year.
Urals has released the security pledge that Petraco has held over the company's Petrosakh asset and it said it is in discussions about Petraco releasing its security pledge over Arcticneft.
Urals reported that current production at Petrosakh is 1,440 barrels of oil per day (bopd). The company is currently developing a drilling program for Petrosakh and plans to drill up to two new wells there in 2013. Petrosakh is estimated to have 2P reserves standing at 16 million barrels.
The firm also said that production at its Arcticneft asset is now stable and stands at 712 bopd. In 2013, Urals plans to drill one well at Arcticneft – which is estimated to have 2P reserves of 43.6 million barrels.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
SYDNEY - Workers in Australia's oil and gas sector are the highest paid in the world and earn 25% more than U.S. counterparts, according to a new survey that lays bare the pressures facing companies like Chevron Corp. as they invest billions of dollars to meet Asia's booming energy demand.
Australian workers pocket an average of $163,600 a year to work on projects that range from platforms drilling for natural gas in deep water off the northern coast to onshore rigs seeking to unlock deposits of unconventional gas in the sweltering heat of the Australian Outback, the survey by recruitment firm Hays found.
The labor market has tightened as more than $160 billion is invested in Australia's natural gas industry, which has to compete with big mining projects for pipe layers, welders and engineers. As a result, Hays said the bulging pay-packets offered Down Under are even higher for imported workers--coming in at $171,00 a year.
A combination of vast natural gas reserves, a stable political environment and proximity to fast-growing Asian economies have put Australia on course to overtake Qatar as the world's biggest exporter of liquefied natural gas, or LNG, by the end of the decade. Around 12 multi-billion LNG projects are either under construction on its coastline or on the drawing board.
With a population of around 23 million people--less than ten times smaller than the U.S.-- Australia lacks a deep labor pool for major projects and large salaries are often required to entice workers to remote corners of the country.
Spiralling labor costs have already contributed to a series of budget overruns at Australian gas-export projects operated by Chevron, BG Group PLC and Australia's Santos Ltd. In the largest example, Chevron said higher labor costs were partly to blame for a 21% increase in the cost of building the Gorgon liquefied natural gas development to 52 billion Australian dollars ($53.5 billion).
But in a mild positive for developers, the average Australian salary in the oil and gas sector fell 0.7% in 2012 compared to 2011.
Norway is the second most expensive country to hire local workers, with an average annual salary of $152,600 needed for recruitment, Hays said. New Zealand ranks third with a median pay packet of $127,600.
The survey was based on the responses of 25,000 people working across 53 countries. The U.S. ranked fifth with $121,400 for local workers, while Sudan brought up the rear with $31,100.
"The guide does reveal signs of a slowdown in salary growth for both imported and local labour in Australia, which may be a sign that the market has passed its peak in terms of demand for specialist oil and gas skills," said Matt Underhill, managing director of Hays Oil & Gas.
Copyright (c) 2012 Dow Jones & Company, Inc.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
