Fastnet Secures Deep Kinsale Farm-In Option

Fastnet Oil & Gas announced Thursday that it has secured an option to farm into the Deep Kinsale prospect offshore Ireland in the North Celtic Sea Basin. The deal has been struck with Kinsale Energy - a wholly-owned subsidiary of Petronas.

Fastnet, which is focused on offshore opportunities both in Ireland and Morocco, said the move is means its strategy to build a "material portfolio" of Purbecko-Wealden prospective structures is now complete. As well as Deep Kinsale, the company holds interests in the nearby Mizzen, Shanagarry and block 49/13 prospects.

The farm-in deal will see Fastnet acquire a minimum of 190 square miles of 3D seismic data over the Deep Kinsale area by the end of this year. The firm will then have an exclusive option to farm into the prospect before Sep. 30, 2014 by drilling a well to test the Purbecko-Wealden reservoirs there. Upon completion and testing, Fastnet will earn a 60-percent working interest in the Deep Kinsale Sub-Area by funding 100 percent of all drilling and testing costs.

The Deep Kinsale prospect is located beneath the producing Kinsale Head gas field, which came on stream in 1978.

"We are delighted to have added an exclusive option to farm into and potentially drill the Deep Kinsale Prospect in 2014. It represents an attractive addition to our Irish portfolio as we have long held a belief that Deep Kinsale offers the potential to yield up another significant hydrocarbon discovery offshore Ireland," Fastnet Chairman Cathal Friel commented in a company statement.

Friel noted that the company's belief in Deep Kinsale's potential was reinforced last year by Providence Resources' successful appraisal of the nearby Barryroe discovery – which has been estimated to hold more than a billion barrels of oil on a P50 basis. Barryroe is geologically analogous to Deep Kinsale.

Will Arnstein, an oil sector analyst at London-based investment bank FinnCap, commented in a brief research note Thursday:

"Our view is this is an exciting opportunity that, while early stage, has considerable hydrocarbon potential and enhances the attraction of Fastnet's Celtic Sea acreage."

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.

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WorleyParsons to Acquire Norway's Bergen Group Rosenberg

WorleyParsons revealed Thursday that it has acquired Norway's Bergen Group Rosenberg for a cash consideration of $194 million. Completion of the acquisition is expected by the end of February 2013, WorleyParsons noted in its disclosure.

Rosenberg, a fully-integrated engineering, fabrication and construction company, is based in Norway's oil capital, Stavanger. The company employs around 650 people. 

"Rosenberg provides the ideal platform for us to expand our presence in the Norwegian Continental Shelf offshore oil and gas market. I am excited that this acquisition will continue to strengthen and grow our ability to support our hydrocarbons clients [in the region]," WorleyParsons' CEO Andrew Wood, said in a statement.

"The acquisition of Rosenberg is a strategic beachhead into Norway for WorleyParsons and our focus is very much on continued growth, which is good news for Rosenberg employees," a spokesperson representing WorleyParsons told Rigzone. 

Quintella has reported on the upstream and downstream oil and petrochemicals markets from 2004. Email Quintella at quintella.koh@rigzone.com.

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PD&MS Bags Engineering Contract with BP

Oil and gas engineering consultancy PD&MS Energy announced Wednesday that it has won a major engineering services contract for platform-based drilling rigs with BP plc.

The three-year contract will see PD&MS deliver engineering, procurement and offshore construction services for upgrades on all BP platform-based drilling assets in the North Sea, said the Aberdeen-based company.

The scope of the contract includes blowout preventer/well control upgrades, five-yearly re-certifications and general drilling rig repair works.

PD&MS Managing Director Simon Rio commented in a statement:

"We are clearly delighted to be awarded this formal contract with BP. This signifies a milestone in the development of the company, and puts us at the top end of our niche market. With similar prestigious long-term contracts already in place with other leading industry giants, we are extremely proud of what we have achieved here at PD&MS."

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Otto Sees Successive Full Year Loss amid Contract Cancellations

Otto Marine – an offshore marine group specializing in the building of offshore support vessels, ship chartering and offshore services operation – posted Friday a full year loss, ended Dec. 31, 2012, of $73.7 million, citing termination of three contracts and fewer number of vessels deployed by its geophysical segment as factors responsible for the company’s dismal results.

Throughout 2012, Otto was grappling with a drop of orders in its shipyard and lower utilization rate of its seismic vessel. The company was also plagued by rising administrative and selling expenses. 

Otto also suffered a net full year loss of $52.2 million in 2011. 

Otto noted that the rest of this year will remain difficult for the company.

"Global economic conditions as well as the general environment of the shipbuilding industry remain challenging. Additionally, the shipyard is under-utilized due to lower order intake," Otto said in its earnings statement Friday.

Otto also revealed Friday that its subsidiary, Reflect Geophysical, applied for an order Thursday with the Singapore High Court for it to be placed under judicial management as creditors seek money. Reflect is unsuccessful in obtaining the order for a short to medium term standstill of claims from its creditors, and the company is at present seeking legal advice for its next course of action. 

Quintella has reported on the upstream and downstream oil and petrochemicals markets from 2004. Email Quintella at quintella.koh@rigzone.com.

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Total, Wintershall to Invest $2.1B in Argentina Natural-Gas Production

BUENOS AIRES - France's Total SA and Germany's Wintershall AG will each invest about one billion U.S. dollars in Argentina over the next five years to boost natural-gas production, the Argentine government said in a statement Friday.

Total will invest $1.1 billion, while Wintershall will invest $1 billion in projects that will increase the country's annual natural-gas output by 3.1% between 2013 and 2017, according to the statement. Increased output from the investments is expected to total 12 million cubic meters per day.

Argentina is on a big push to try and attract investment in its energy sector to boost output.

Oil-and-gas production has declined in recent years while has demand soared, turning Argentina into a net energy importer and forcing the government to spend billions each year on gas and fuel imports. In 2011, Argentina spent more than $9 billion on imported energy.

Last year, the government nationalized a controlling stake in the country's leading oil-and-gas company from YPF SA from Spain's Repsol SA, accusing the company of bleeding YPF dry with dividends and failing to invest. Now, the government is pouring billions into expanding YPF's production.

Copyright (c) 2012 Dow Jones & Company, Inc.

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Israel Gives Go-Ahead to Drilling on Golan Heights

JERUSALEM - Israel said Thursday that it has awarded the first license to drill for oil in the disputed Golan Heights to a local subsidiary of U.S.-listed explorer Genie Energy Ltd.

Genie Israel Oil and Gas Ltd. has been granted exclusive rights to drill in an area of about 397 square kilometers, or about one-third of the Golan Heights total area, the Energy Ministry said.

In recent months, there have been several incidents of artillery fire from the civil war in Syria spilling into the Golan region, which has been an internationally patrolled demilitarized zone since the end of the 1973 Yom Kippur War. Israel first occupied Golan during the 1967 six-day war, and annexed it in 1981. The U.S. government has previously called on Israel to rescind the latter move, saying it has "no validity" and is "a stumbling block in the way of achieving a just, comprehensive, and lasting peace in the region."

A spokesman for Israeli Energy Minister Uzi Landau declined to comment on how the political situation in Syria, or what many consider the occupied nature of the Golan Heights, could affect the project. The U.S. State Department didn't immediately offer comment.

"I can tell you that the process [for granting the license] was all professional and was made by the oil and gas council in the office," the Israeli spokesman told Dow Jones Newswires.

Genie said in a statement that preliminary tests show that the newly-licensed area likely contains "significant quantities of conventional oil and gas in relatively tight formations, the development of which would entail significantly different technical approaches and project time lines than other projects."

Significant quantities of natural gas have been found in recent years off Israel's coast, including at the giant Leviathan field, potentially setting up Israel as an exporter of energy.

The news wasn't enough to lift the Tel Aviv Stock Exchange, which was trading negatively Thursday.

Newark, N.J.-based Genie is also working on developing two oil shale projects, one in California and one in Israel, near Jerusalem.

Former U.S. vice president Dick Cheney sits on the advisory board of Genie Oil and Gas, as does Rupert Murdoch, chairman and chief executive of News Corp., parent company of Dow Jones Newswires and The Wall Street Journal.

Copyright (c) 2012 Dow Jones & Company, Inc.

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Uganda Parliament Passes Second Oil Bill

KAMPALA, Uganda - The Ugandan parliament has passed the second oil bill, moving the East African nation closer to completing a new regulatory framework for its nascent oil sector, ahead of the planned development of oil fields along its western border.

The passing of the bill brings the country closer to reopening a new licensing round for the remaining acreage in the oil-rich Lake Albertine Rift basin.

The ruling National Resistance Movement party-dominated parliament voted late Thursday to pass the midstream bill, known as the Petroleum Refining, Conversion, Transmission and Midstream Storage Bill 2012, nearly three months after the upstream oil bill was passed, as the country continues to fast-track the enactment of new oil laws, following the discovery of around 3.5 billion barrels of crude reserves.

Parliamentary spokeswoman, Helen Kawesa, told Dow Jones Newswires Friday that the house will now consider the third and final oil revenue management bill to complete the new law chain.

"There's only one final bill pending, which will also be passed in the coming weeks," Ms. Kawesa said.

The midstream bill will regulate midstream operations, which include refining, transportation and storage of oil products, once the country starts production.

Unlike the previous upstream law, whose passing was delayed for several months as parliament bickered with the executive over the powers of the minister to license and revoke licenses, the midstream law quickly sailed through the house just after a few weeks of debate.

Ruling party lawmaker Stephen Birahwa said ruling party law makers endorsed the bill before its presentation to the plenary, speeding up its passage. Activists criticized the bill, however, saying once again it gives sweeping powers to the minister, which is a threat to good governance.

"It is going to be hard for Uganda to avoid the oil curse given the manner in which these bills have been passed," Winfred Ngabirwe, head of the pressure group Publish What You Want, told Dow Jones Newswires.

The bill grants the minister sole powers to award, suspend and initiate the development and implementation of policies concerning midstream operations among others.

Political observers say that Uganda's long-serving leader, Yoweri Museveni, is attempting to tighten his grip on the oil sector to fend off a growing challenge from an increasingly assertive parliament.

As the parliament continues to pass the laws, the government remains embroiled in a spat with Tullow Oil PLC, France's Total SA and China's Cnooc Ltd over the development plans and refining options for the country's crude.

The three companies are expected to invest up to $10 billion to develop the country's oil fields. While the companies are pushing for the building of a crude export pipeline, the government wants a larger refinery to refine the crude locally.

Copyright (c) 2012 Dow Jones & Company, Inc.

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Technip Saw Strong Increase in Orders in 2012

French oilfield services firm Technip announced Thursday a strong increase in its order intake during 2012 as its revenue increased by more than 20 percent.

Technip said that its order intake increased from $10.6 billion to $15.5 billion during 2012, while its order backlog increased by 36.8 percent to $19 billion. The firm's revenue for 2012 amounted to $10.9 billion, compared with $9.1 billion in 2011, while its net income improved 6.4 percent to $718 million.

Technip reported that order intake within its Subsea business sector during the fourth quarter of 2012 was, at $1.2 billion, 24.9-percent lower that the equivalent quarter in 2011. Here, orders included several small and medium-sized contracts on a number of continents. Notable among these was is the second phase of the Total E&P Angola GirRI project.

The firm saw a doubling of orders in its Onshore/Offshore segment during 4Q 2012, which included the first tension leg platform project by Sabah Shell Petroleum Company for the Malikai project in Malaysia.

Technip CEO Thierry Pilenko commented in a statement:

"Technip's performance was in line with our objectives throughout 2012, including the fourth quarter…The projects we delivered and won in 2012 reflect our focus on offering our clients differentiating technologies and on securing involvement in projects early in their life cycle. To support our growth, we have invested in talent worldwide; Technip now employs 36,500 people compared to 31,000 a year ago."

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.

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Kreuz's Expanded Fleet Gives 430% boost to 4Q Profit

Singapore-listed Kreuz Holdings posted Friday a fourth quarter profit ended Dec. 31, 2012, of $5.7 million, up 430 percent from the same period last year. In 4Q 2011, Kreuz reported a net profit of $1.07 million.

For the full year ended Dec.31, 2012, Kreuz booked a profit of $39.6 million, up 49 percent from one year ago.

Kreuz said in its earnings report that the acquisition of a dynamic positioning construction class diving support vessel in April last year contributed to an increase in gross profit margin, as it reduced the company's reliance on third party vessels.

"The subsea sector is maintaining its current trend of continued growth in the shallow, medium and ultra-deep waters as subsea technology becomes an economically viable solution for increasingly remote or ultra-deepwater fields," the company noted in its disclosure.

"The high demand expected in the subsea sector along with the need to reinvigorate aging offshore fields augur well for Kreuz’s subsea construction and installation services, and inspection, repair and maintenance," the company added.

In the Southeast Asian region, oil-rich countries such as Malaysia and Indonesia are placing a renewed emphasis on reinvigorating their aging offshore oil fields. Both of these countries are also looking at promoting exploration deeper offshore and on their smaller oil fields.

Quintella has reported on the upstream and downstream oil and petrochemicals markets from 2004. Email Quintella at quintella.koh@rigzone.com.

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Sembcorp Marine Sees Profit Dip, Admits 2012 is a Challenging Year

Sembcorp Marine posted late Thursday a net profit for the final quarter of 2012 at $135 million (SGD167 million), down 27 percent from the same period last year. In 4Q 2011, Sembcorp Marine booked a net profit of $185 million (SGD229 million).

Operating profit for the quarter was $120 million (SGD148 million), down 26 percent from one year ago.

Sembcorp Marine also saw its net and operating profits slide on a full year basis. For the year ended Dec. 31, 2012, the company posted a net profit of $435 million (SGD538 million) and an operating profit of $448 million (SGD554 million), down 28 percent and 25 percent respectively.

Sembcorp Marine noted in its earnings release that it was operating in a challenging environment last year. The company ended last year having to grapple with the aftermath of an offshore accident; the Noble Regina Allen (400’ILC jackup) tilted during a jacking system test on Dec. 3, 2012. The incident led to some 89 workers being injured.

Sembcorp Marine revealed in its earnings report that the company has a net order book of $11 billion (SGD13.6 billion) with completion and deliveries stretching into 2019.

"Amid the fragile global environment, the long-term industry fundamentals for the Offshore Oil and Gas sector remain sound underpinned by high oil prices and projected increases in offshore exploration and production spending," Sembcorp Marine said in a statement.

"Yard activity level will remain high over the next two years, supported by Sembcorp Marine’s $11 billion net order book. However, margins may continue to normalize. In this rig order cycle, price increase is slower and we believe this is attributed to rising competition for offshore orders," OSK Research's analyst, Jason Saw, said in an opinion statement.

"The jackup rig replacement theme is still intact but this market segment will see competition from Chinese and Middle East yards," Saw noted.

Quintella has reported on the upstream and downstream oil and petrochemicals markets from 2004. Email Quintella at quintella.koh@rigzone.com.

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