Friday, May 10, 2013

PRD Energy Scoops Up License Duo in Germany

PRD Energy has been awarded the Ostrohe exploration license, which covers approximately 156,000 acres, as well as the Prasdorf production license, covering approximately 2,000 acres. Both licenses are located in the state of Schleswig-Holstein, within the Northwest German Basin.

The Northwest German Basin has a history of significant petroleum discoveries and a number of these discoveries have been made within close proximity to the Ostrohe license, said PRD.

The Ostrohe license is awarded for an initial period of five years and includes all rights from surface to basement. Pursuant to the terms of the license, PRD is committed to bringing one well onto production within the initial five year term.

The Prasdorf production license previously produced petroleum and was abandoned by its former operator in 1992. It covers approximately 2,000 acres and has been awarded for an initial period of three years and includes all rights from surface to basement. Pursuant to the terms of the license, PRD said it is committed to bringing one well onto production within the initial three-year term.

PRD's subsidiary in the country has also applied for several other exploration and production licenses in Germany on behalf of PRD, and anticipates responses to these applications in the coming months.

The awards of both licenses are subject to review and approval by various municipal and state government authorities in Germany.

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Crude-Oil Futures Settle Up 29 Cents at $93.74/Barrel

Crude-oil futures prices recovered Monday from early concerns over Europe's economic outlook, with the U.S. benchmark inching up to a fresh four-week high.

Oil pries had joined in an early, broad selloff sparked by worries over the potential for new fiscal woes in Europe as Cyprus weighed a controversial bailout plan. As part of a European Union and International Monetary Fund rescue package for its banks, Cyprus is considering a one-time tax levy on accounts held in its banks. Traders said that if such a tax becomes standard in other rescue packages, investors will flee, churning up concerns of a contagion effect in European economics battling sovereign debt crises.

The knock-on fears sent the euro to its lowest level of the year against the dollar, giving investors two strong reasons to flee oil futures. Analysts said fresh trouble in European economies would further cut weak oil demand, while a stronger dollar means crude-oil futures become pricier for investors using some foreign currencies.

An early drop to $91.76 a barrel in U.S. prices appeared to signal that market bulls were losing the clout that pushed prices up near $94 last week, despite rising crude-oil stockpiles and weak refiner demand during seasonal maintenance.

But as the euro steadied, "the fears evaporated and we started to stabilize. All the worries were a little overdone," said Gene McGillian, broker and analyst at Tradition Energy.

Light, sweet crude oil for April delivery on the New York Mercantile Exchange settled 29 cents higher, at $93.74 a barrel, the highest level since Feb. 20.

ICE North Sea crude oil for May ended modestly lower, at $109.51 a barrel, down 31 cents. It traded to an early low of $107.78 a barrel.

Brent has lost ground against the U.S. benchmark in recent days as North Sea crude oil supplies are returning to normal levels.

Michael Wittner, analyst at Societe Generale, said North Sea oil flows in April are expected to rise by 265,000 barrels a day from March, as pipeline and production snags have been resolved. Separately, Statoil ASA said output from the Oseberg field in the Norwegian North Sea was returning to normal after a gas leak and power cut last week. Oseberg is expected to supply 3.6 million barrels of crude in April.

Analysts also noted that crude-oil inventories at Cushing, Okla., declined in the week ended March 8, suggesting that the oil was finding its way down to the key U.S. refinery hub, most likely by increased rail shipments. Greater flows from the midcontinent to the Gulf means U.S. refiners need less imported crude, putting pressure on Brent, the global benchmark.

Early indications from four analysts show U.S. weekly oil data are expected to show crude-oil stockpiles rose last week while refiners kept operations little changed at low levels. According to the survey by Dow Jones Newswires, U.S. crude-oil inventories rose by 1.1 million barrels in the week ended Friday, adding to already high stocks.

In the week ended March 8, the combination of refiner demand and higher supply left inventories at a level sufficient to cover 27.4 days of refiner needs, the highest level since 1992, and compared with the five-year average of less than 24 days of cover.

The closely watched government survey from the Energy Information Administration is due to be released at 10:30 a.m. EDT Wednesday, while the American Petroleum Institute, an industry group, releases its inventory report at 4:30 p.m. EST Tuesday.

Analysts also expect the data to show gasoline stocks dropped by 2.1 million barrels and distillate stocks (heating oil and diesel fuel) fell by 1.3 million barrels.

Refiners are expected to inch operations higher by 0.1 percentage point from the EIA's level of 81% of capacity last week, which was the lowest since Feb. 25, 2011, amid seasonal maintenance work at plants.

April-delivery reformulated gasoline futures settled 3.49 cents, or 1.1%, lower at $3.1289 a gallon, the lowest level since March 7. April heating oil settled 1.23 cents lower at $2.9267 a gallon.

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

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Transocean Board Urges Rejection of Icahn Plan

Directors of Transocean Ltd. are urging shareholders to reject a campaign by activist investor Carl C. Icahn to increase the offshore-oil-rig company's dividend and name three new members to the board.

In a statement Sunday, Transocean's board described Mr. Icahn's demand that the company raise its annual dividend to $4 a share as shortsighted, saying it did not take into account the cyclical nature of the offshore-drilling business or its capital-intensive demands.

The board also criticized the new board members proposed by Mr. Icahn, who owns roughly 5.6% of Transocean's shares, saying the nominees lack the requisite energy-industry experience and were put forth because they are longtime employees or associates of the investor.

"The board believes Mr. Icahn is pursuing a highly flawed agenda focused exclusively on potentially generating temporary returns at the expense of the company's ability to operate successfully and create sustainable value over the long term," the board said in a statement.

Mr. Icahn made the demands for change in an open letter to shareholders and filings with the company earlier this month. Shareholders would vote on the proposals during the company's annual meeting, which is set for May 17.

Earlier this month, Transocean said it would reinstate its dividend at $2.24 a share after withdrawing it a year ago in the face of threats to its credit rating. The company also said it would repay about $1 billion in debt.

Mr. Icahn previously called the renewed dividend offer "meager" and said the company was making questionable financial choices by paying down low-interest debt and investing in projects with relatively low returns.

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

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PetroChina Chairman to Take SASAC Top Job

HONG KONG - Jiang Jiemin is to take the top position at the state-owned Asset Supervision and Administration Commission, PetroChina Co. said on Monday.

Mr. Jiang was chairman of China National Petroleum Corp. and PetroChina.

His new appointment will be announced soon, Mao Zefeng, a spokesman for PetroChina, told the Wall Street Journal. Vice Chairman Zhou Jiping will become the interim chairman of China National Petroleum Corp. and PetroChina.

A SASAC news department official declined to comment.

Previous SASAC director Wang Yong was promoted to the State Council, or cabinet, on Saturday. Changes typically occur every few years at China's state-owned companies as the communist party reassigns top officials.

Mr. Jiang was appointed chairman of listed unit PetroChina in 2007 and has been chairman of CNPC since 2011.

PetroChina accelerated the development of its natural-gas business and acquired overseas oil-and-gas assets to increase its hydrocarbon reserves.

SASAC is in charge of regulating, reforming and restructuring China's state-owned enterprises and assets.

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Northern Petroleum Could Sell Netherlands Operations

Northern Petroleum is considering the sale of its operations in the Netherlands as part of an extensive corporate review of its activities, the firm said Tuesday. The firm also announced that it plans to enter Canada and that it has upgraded its resource estimate at its Cygnus prospect in Italy.

Northern said that in the past year a number expressions of interest have been made to purchase its Netherlands assets and the firm has held negotiations with two parties. One party has made an offer for the Netherlands subsidiary while the other wants to buy both the Netherlands subsidiary and Northern's UK assets.

The company said that it has begun a new light-oil production redevelopment project in northern Alberta, Canada. It has acquired over 5,300 acres with an estimate potential to yield in excess of one million barrels of oil in place. The leased area contains 22 abandoned wells with 11 candidates currently identified as being capable of re-entry for further production.

Meanwhile, Northern said that its Cygnus prospect offshore Italy has now been mapped as an estimated un-risked prospective resource of up to 790 million barrels of recoverable oil within its F.R39.NP permit. The prospect is adjacent to and up-dip of the producing Aquila oil field.

"This project is materially valuable to shareholders and our efforts in Italy have now been concentrated upon this. Discussions are currently progressing with major industry partners to join with Northern to drill the prospect," Northern Managing Director Derek Musgrove said in a company statement.

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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Europa Begins Seismic Acquisition over UK Onshore License

Europa Oil & Gas announced Tuesday that it has started the acquisition of 2D seismic data on its onshore PEDL 181 license in east Lincolnshire, UK.

According to the company, PEDL 181 is located in a working hydrocarbon system where a number of discoveries have been made.

Europa said that it will focus on four leads in the southern part of the license, where several prospects have been confirmed following technical evaluation. Three leads lie within the northeast trending Caistor anticline, while another – named Cuxwold – is located south of the anticline.

Europa's existing oil production at the Crosby Warren field lies at the westernmost end of the Brigg-Broughton anticline – which is an analogous trend to the west of the Caistor anticline.

The company has now begun the acquisition of approximately 50 miles of 2D seismic, as well as the reprocessing of existing 3D seismic over the Caistor anticline.

Europa CEO Hugh Mackay commented in a statement:

"The identification of four leads on PEDL 181, which is located next to the PEDL 180 & 182 licences, where we are due to drill an exploration well this year, and our producing oil field at Crosby Warren, is highly encouraging. As previously identified targets are drilled, it is important we maintain a pipeline of leads and prospects at various stages of development.

"Our strategy of developing a diversified asset base comprised of multiple licences including UK production and exploration, a gas appraisal project onshore France, and high impact frontier exploration in the Irish Atlantic Margin where we recently identified two large prospects, provides a portfolio for future drilling. The results of the 2D seismic acquisition
programme, alongside the interpretation of the reprocessed existing 3D datasets, will further define the prospectivity of the PEDL 181 licence and determine our future work programme."

Europa has a 50-percent interest in the PEDL 181 license and is the operator. Egdon Resources UK and Celtique Energie Petroleum each hold a 25-percent stake.

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Brazil's Supreme Court Suspends New Oil-Royalties Regime

RIO DE JANEIRO - Brazil's Supreme Court late Monday suspended the redistribution of oil royalties that would cost three states billions of dollars in lost revenue.

Supreme Court Justice Carmen Lucia granted the injunction after Rio de Janeiro, Espirito Santo and Sao Paulo states filed lawsuits last week to block implementation of the new royalties regime. The states claim the new scheme is unconstitutional because it would break existing contracts, while also causing budget shortfalls that would severely crimp public services.

The ruling on the injunction will be reviewed by the full court at a later date, according to a court official.

In her decision, Ms. Lucia said that the case required urgent judicial attention from the court because royalties are paid on a monthly basis. The changes represented "unequaled risks" to the financial health of the states and cities involved, "impelling me to immediately grant the requested injunction," Ms. Lucia said.

The lawsuits are the latest step in a long-running political battle that pits Brazil's three major oil-producing states of Rio de Janeiro, Espirito Santo and Sao Paulo against the country's remaining 24 states, which have little oil production and stand to benefit financially from the new distribution scheme. The legal wrangling, however, isn't expected to delay an important auction of new oil and natural gas exploration concessions set for May.

The new law equally distributes royalties from existing and future oil production between the country's 27 states.

The states requested an injunction to block implementation of the new royalties regime, in addition to a ruling on the constitutionality of the new law. The law, however, is effectively suspended until the Supreme Court makes a definitive ruling on the lawsuits, a court official said last week.

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Cairn Continues to Target North Sea Plays

Cairn Energy will continue to target new plays within the UK North Sea and Norwegian continental shelf, the firm said Tuesday as it outlined plans to explore frontier basins in the Atlantic Margin and Mediterranean in its annual results statement.

Cairn will use cash generated from its share in various producing North Sea assets to fund several operated exploration wells offshore Morocco and Senegal, West Africa, during 2013 and 2014. It is also planning a 3D seismic campaign in the Gulf of Lion, offshore Spain, as well as conducting geological studies into opportunities offshore Malta.

The company also announced Tuesday farm-in into three blocks offshore Senegal. Cairn is taking a 65-percent working interest and operatorship of three blocks – Rufisque, Sangomar and Sangomar Deep – that are currently operated by Far Limited with Petrosen (the Senegalese national oil company) as a joint venture partner. In return it has agreed to fully fund the costs of one exploration well and to fund 72.2 percent of subsequent exploration costs.

In the UK and Norway, Cairn is involved in four non-operated exploration and appraisal wells during 2013, two of which are underway. It also has new interests in 10 licenses that have been acquired in recent licensing rounds.

Meanwhile, work continues on the North Sea's Greater Catcher area (where Cairn has a 30-percent, non-operated interest) and the Kraken oil field (25 percent). These fields are now a late pre-development stage and are expected to lead to first oil and cash flows in sometime around 2016/2017.

"With a strong cash position and a disciplined approach to capital expenditure, we look forward to the start of our multi-well, multi-year operated exploration programme commencing in Q4 2013 targeting more than 3.5 billion barrels of oil equivalent," Cairn Chief Executive Simon Thomson commented in a company statement.

Oil analysts at London-based investment bank FirstEnergy was positive about Cairn's announcements Tuesday, noting that the farm-in offshore Senegal adds "further high-impact exploration potential to the portfolio".

Cairn reported a pre-tax loss for 2012 of $194.2 million (2011: $1.2 billion loss) and stated that it had cash at the end of December amounting to $1.6 billion. The firm also retains an approximately 10 percent residual shareholding in Cairn India.

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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PPL Shipyard Clinches Repeat Jackup Order from Oro Negro

Sembcorp Marine's subsidiary PPL Shipyard has secured orders for two turnkey contracts with a combined value of $417 million for the construction of two units of jackups from repeat customer Integradora de Servicios Petroleros Oro Negro, S.A.P.I. de C.V (Oro Negro).

Scheduled for delivery at end of the fourth quarter of 2014 and end of first quarter 2015, the pair of high specifications and high performance deep drilling offshore jackups will be built based on PPL Shipyard's proprietary Pacific Class 400 design. Including the two jackups of similar design ordered in November 2012, the total number of Pacific Class 400 jackups ordered by Oro Negro now stands at four units.

Incorporating the latest drilling equipment for improved drilling efficiency, offline handling features and simultaneous operations support, these new rigs will be capable of operating in deeper waters of 400 feet and drilling high pressure and high temperature wells to depths of 30,000 feet. These rigs will be equipped with increased accommodation with full catering facilities and amenities for a complement of 150 people on board in one-man and two-man cabins.

CEO of Oro Negro Gonzalo Gil said "We are pleased to have PPL Shipyard as the builder of another two jackup rigs in our fleet. The first two units currently under construction are progressing well and we are confident that the strong collaboration will continue with the third and fourth jackup units. Once operational, these high-specification jackup rigs will further strengthen our rig fleet, positioning Oro Negro as a leading player to capitalise on emerging opportunities within Mexico's growing offshore market."

Douglas Tan, managing director in PPL Shipyard said "We are heartened to be chosen once again by Oro Negro as a partner in their offshore fleet expansion program. The repeat order of two additional Pacific Class 400 jackups signals Oro Negro's confidence and endorsement of PPL Shipyard's design capabilities, efficient project execution, and track record for quality and timely deliveries."

Barring unforeseen circumstances, Sembcorp Marine expects a positive contribution to its earnings from the contracts. However, the contracts are not expected to have any material impact on the consolidated net tangible assets and earnings per share of Sembcorp Marine for the year ending December 31, 2013.

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PPL Shipyard Clinches Repeat Jackup Order from Oro Negro

Sembcorp Marine's subsidiary PPL Shipyard has secured orders for two turnkey contracts with a combined value of $417 million for the construction of two units of jackups from repeat customer Integradora de Servicios Petroleros Oro Negro, S.A.P.I. de C.V (Oro Negro).

Scheduled for delivery at end of the fourth quarter of 2014 and end of first quarter 2015, the pair of high specifications and high performance deep drilling offshore jackups will be built based on PPL Shipyard's proprietary Pacific Class 400 design. Including the two jackups of similar design ordered in November 2012, the total number of Pacific Class 400 jackups ordered by Oro Negro now stands at four units.

Incorporating the latest drilling equipment for improved drilling efficiency, offline handling features and simultaneous operations support, these new rigs will be capable of operating in deeper waters of 400 feet and drilling high pressure and high temperature wells to depths of 30,000 feet. These rigs will be equipped with increased accommodation with full catering facilities and amenities for a complement of 150 people on board in one-man and two-man cabins.

CEO of Oro Negro Gonzalo Gil said "We are pleased to have PPL Shipyard as the builder of another two jackup rigs in our fleet. The first two units currently under construction are progressing well and we are confident that the strong collaboration will continue with the third and fourth jackup units. Once operational, these high-specification jackup rigs will further strengthen our rig fleet, positioning Oro Negro as a leading player to capitalise on emerging opportunities within Mexico's growing offshore market."

Douglas Tan, managing director in PPL Shipyard said "We are heartened to be chosen once again by Oro Negro as a partner in their offshore fleet expansion program. The repeat order of two additional Pacific Class 400 jackups signals Oro Negro's confidence and endorsement of PPL Shipyard's design capabilities, efficient project execution, and track record for quality and timely deliveries."

Barring unforeseen circumstances, Sembcorp Marine expects a positive contribution to its earnings from the contracts. However, the contracts are not expected to have any material impact on the consolidated net tangible assets and earnings per share of Sembcorp Marine for the year ending December 31, 2013.

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For More Information on the Offshore Rig Fleet:
RigLogix can provide the information that you need about the offshore rig fleet, whether you need utilization and industry trends or detailed reports on future rig contracts. Subscribing to RigLogix will allow you to access dozens of prebuilt reports and build your own custom reports using hundreds of available data columns. For more information about a RigLogix subscription, visit http://www.riglogix.com/.

View the original article here