Helix to Provide BP Well Intervention Services in Gulf of Mexico

Helix Energy Solutions Group, Inc. announced Thursday that it has entered into a five-year contract with BP to provide well intervention services to BP in the US Gulf of Mexico with Helix's deepwater well intervention semisubmersible vessel, the Q5000, currently being constructed in Singapore. The contract is for a minimum 270 days each year and is expected to commence between April and August 2015 following the delivery of the vessel from the shipyard. The contract also includes a first right of refusal for additional days each year and an option to extend for two successive one-year terms.

"We appreciate the confidence BP has shown in our Company's well intervention services, and look forward to this integral step in further executing our business strategy," said Helix President and Chief Executive Officer Owen Kratz.

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.

View the original article here

Mexico's Pemex Renews Scientific Accord with ExxonMobil

MEXICO CITY - Mexico's state-owned oil monopoly Petroleos Mexicanos, or Pemex, said Wednesday it signed a noncommercial agreement with Exxon Mobil Corp. to share technical and scientific information of mutual interest.

Pemex said in a press release that the five-year agreement renews the two oil companies' relations in matters of cooperation. "The goal of this agreement is to define our collaboration in the areas of investigation, scientific development, technical and human resources in exploration, drilling, production, transportation and storage of hydrocarbons," the statement said.

Pemex said the accord did not represent any type of service agreement and did not involve compensation.

Pemex is one of the top oil producers in the world, with about 2.55 million barrels of crude oil a day, along with natural gas production, refineries and other operations. Pemex's biggest operations are in the "easy oil" areas of the shallow southern waters of the Gulf of Mexico, where production has been declining for the last eight years.

ExxonMobil is the world's largest publicly traded international oil and gas company, and produces in nonconventional areas like the deep waters of the Gulf of Mexico on the U.S. side. Pemex is just starting exploration in the deep waters of the Mexican side of the Gulf.

Mexico's new president, Enrique Pena Nieto, is negotiating an energy overhaul with legislators to draw more private investment while bolstering the finances of Pemex, which gives nearly all of its profits to the federal government for its budget.

Copyright (c) 2013 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.

View the original article here

Gas Starts Flowing from Israel's Levant Basin, What Now?

The first gas has started flowing from Israel's supergiant Tamar gasfield in the Levant Basin. Where it will go will redraw the Mediterranean energy map and the geopolitics that goes along with it.

The Tamar field stakeholders announced on 30 March that the gas had started flowing, raising the value of Texas-based Noble Energy Inc., which holds a 36% stake, and Israel's two Delek Group subsidiaries, which each hold a 15.6% stake.

For now, the gas is being pumped to mainland Israel, where it will feed the domestic market, but exports should begin in 2-3 years. What Israel has in mind is the European market, via a hoped-for undersea Mediterranean pipeline to Turkey, which has the infrastructure to get it to Europe.

The competition for this prized market is stiff. In total, the Mediterranean's Levant Basin has an estimated total of 122 trillion cubic feet of gas and 1.7 billion barrels of oil. Lebanon and Cyprus are eyeing the same market for their own Levant Basin gas resources. Cyprus has found gas in its section of the basin, and Lebanon has announced a tender for exploration off its shoreline.

The Greek Cypriot government believes it is sitting on an amazing 60 trillion cubic feet of gas, but these are early days—these aren't proven reserves and commercial viability could be years away. In the best-case scenario, production could feasibly begin in five years. Exports are e ven further afield, with some analysts suggesting 2020 as a start date.

Israel has the upper hand right now in terms of development and production, but it lacks the infrastructure without Turkey.

Israel was originally hoping to lay a pipeline that would traverse both Cyprus and Turkey, but there are too many political pitfalls to this plan (whichwould essentially mean a final resolution to the Turkey-Cyprus spat). The ideal would have been a pipeline that connects all the Levant Basin resources—including Lebanon, Israel, Cyprus and Turkey—but this is the stuff of geopolitical dreams.

In the end, it is shaping up that an Israel-Turkey pipeline is not only possible, but coming to fruition. Earlier this month an official apology from the Israeli prime minister to his Turkish counterpart for some high-level grievances was engineered by US President Barack Obama. It was an unprecedented move by Israel and one that illustrates how important this pipeline is for Israel. An apology was really the only thing keeping Turkey from green-lighting this pipeline project without a backlash at home.

This Israel-Turkey pipeline makes Lebanon and Cyprus nervous. It essentially cuts them out of the equation. Politics for now will keep Lebanon from connecting up to any Israeli pipeline, and Turkey won't have a connector to Cyprus.

Russia's Gazprom, of course, is not keen to lose its stranglehold on the European market. To that end, it's jumped in on Tamar itself, obtaining exclusive rights from Israel to develop the field's liquefied natural gas (LNG). Here's the plan: Russia is hoping to divert Israeli gas exports to Europe by banking on these resources being turned into LNG for Russian export to Asian markets instead. Russia is willing to invest heavily in a $5 billion floating LNG facil ity to this end. In return it gets exclusive rights to purchase and export Tamar LNG. (Gazprom has signed the deal but it still awaits final approval from Israel).

For Israel, this is a windfall. There is an estimated 425 billion cubic meters (16 trillion cubic feet of gas in its Leviathan field, plus the 250 billion cubic meters in the Tamar field, which is now officially pumping. All this gas is worth about $240 billion on the European market, and Tamar gas alone could boost Israel's GDP by 1% annually. For now, the Tamar gas will result in a decline in the price of electricity for Israelis by way of reducing the production costs for the state utility.

For Europe, it will mean newfound power to deal with Russia differently like it did with the recent Cypriot bailout package that came along with a harsh lesson for Russian oligarchs who are seeing their Cypriot banks holdings sequestered.

Source: http://oilprice.com/Alternative-Energy/Nuclear-Power/Gas-Starts-Flowing-from-Israels-Levant-Basin-What-Now.html

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.

View the original article here

Statoil Oil Sands Production Up More Than 60% in 2012

Statoil announced Thursday that it boosted production from its Canadian oil sands activities by more than 60 percent during 2012, while the Norwegian firm reduced its carbon dioxide intensity by almost 24 percent.

Statoil said that its "2012 Oil Sands Report" demonstrates clear progress in reaching the firm's ambitious targets for responsible oil sands production in Canada.

Production at Statoil's Leismer Demonstration Project began in January 2011. A steam-assisted gravity drainage facility, Leismer produced 16,333 barrels per day during 2012.

Statoil – which also operates sand oil leases at Kai Kos Dehseh in northern Alberta – said its ambition is to reduced carbon dioxide intensity in its production process by 25 percent by 2020 and by 40 percent five years later. Average carbon dioxide emissions per barrels during 2012 were 55.6 kilograms – down from 72.7 kilograms in 2011.

"In 2012 we increased oil sands production by more than 60 percent and reduced CO2 intensity by almost 24 percent. We reduced water usage, improved our steam-oil ratio and planted 267,000 trees to reclaim land. We are proud of the results we have achieved and are encouraged to continue our efforts to reach our ambitious targets," Statoil's senior vice president in Canada, Ståle Tungesvik, said in a company statement.

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.

View the original article here

Gas Starts Flowing from Israel's Levant Basin, What Now?

The first gas has started flowing from Israel's supergiant Tamar gasfield in the Levant Basin. Where it will go will redraw the Mediterranean energy map and the geopolitics that goes along with it.

The Tamar field stakeholders announced on 30 March that the gas had started flowing, raising the value of Texas-based Noble Energy Inc., which holds a 36% stake, and Israel's two Delek Group subsidiaries, which each hold a 15.6% stake.

For now, the gas is being pumped to mainland Israel, where it will feed the domestic market, but exports should begin in 2-3 years. What Israel has in mind is the European market, via a hoped-for undersea Mediterranean pipeline to Turkey, which has the infrastructure to get it to Europe.

The competition for this prized market is stiff. In total, the Mediterranean's Levant Basin has an estimated total of 122 trillion cubic feet of gas and 1.7 billion barrels of oil. Lebanon and Cyprus are eyeing the same market for their own Levant Basin gas resources. Cyprus has found gas in its section of the basin, and Lebanon has announced a tender for exploration off its shoreline.

The Greek Cypriot government believes it is sitting on an amazing 60 trillion cubic feet of gas, but these are early days—these aren't proven reserves and commercial viability could be years away. In the best-case scenario, production could feasibly begin in five years. Exports are e ven further afield, with some analysts suggesting 2020 as a start date.

Israel has the upper hand right now in terms of development and production, but it lacks the infrastructure without Turkey.

Israel was originally hoping to lay a pipeline that would traverse both Cyprus and Turkey, but there are too many political pitfalls to this plan (whichwould essentially mean a final resolution to the Turkey-Cyprus spat). The ideal would have been a pipeline that connects all the Levant Basin resources—including Lebanon, Israel, Cyprus and Turkey—but this is the stuff of geopolitical dreams.

In the end, it is shaping up that an Israel-Turkey pipeline is not only possible, but coming to fruition. Earlier this month an official apology from the Israeli prime minister to his Turkish counterpart for some high-level grievances was engineered by US President Barack Obama. It was an unprecedented move by Israel and one that illustrates how important this pipeline is for Israel. An apology was really the only thing keeping Turkey from green-lighting this pipeline project without a backlash at home.

This Israel-Turkey pipeline makes Lebanon and Cyprus nervous. It essentially cuts them out of the equation. Politics for now will keep Lebanon from connecting up to any Israeli pipeline, and Turkey won't have a connector to Cyprus.

Russia's Gazprom, of course, is not keen to lose its stranglehold on the European market. To that end, it's jumped in on Tamar itself, obtaining exclusive rights from Israel to develop the field's liquefied natural gas (LNG). Here's the plan: Russia is hoping to divert Israeli gas exports to Europe by banking on these resources being turned into LNG for Russian export to Asian markets instead. Russia is willing to invest heavily in a $5 billion floating LNG facil ity to this end. In return it gets exclusive rights to purchase and export Tamar LNG. (Gazprom has signed the deal but it still awaits final approval from Israel).

For Israel, this is a windfall. There is an estimated 425 billion cubic meters (16 trillion cubic feet of gas in its Leviathan field, plus the 250 billion cubic meters in the Tamar field, which is now officially pumping. All this gas is worth about $240 billion on the European market, and Tamar gas alone could boost Israel's GDP by 1% annually. For now, the Tamar gas will result in a decline in the price of electricity for Israelis by way of reducing the production costs for the state utility.

For Europe, it will mean newfound power to deal with Russia differently like it did with the recent Cypriot bailout package that came along with a harsh lesson for Russian oligarchs who are seeing their Cypriot banks holdings sequestered.

Source: http://oilprice.com/Alternative-Energy/Nuclear-Power/Gas-Starts-Flowing-from-Israels-Levant-Basin-What-Now.html

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.

View the original article here

Penn Virginia Acquires Magnum Hunter's Assets in Eagle Ford Play

Penn Virginia Corp. has offered $400 million to Magnum Hunter Resources Corp. to acquire the company’s producing properties and undeveloped leasehold interests in the Eagle Ford Shale play in Texas.

Under the deal, Penn Virginia will acquire about 19,000 net mineral acres in Gonzales and Lavaca Counties, Texas which are located adjacent to the company’s current position in both counties. As a result, Penn will own roughly 83,000 gross acres of the Eagle Ford Shale and will increase their drilling inventory by 345 locations, for a total of 640 drilling locations, the company noted in a press release.

"The announcement of the sale of this property today is 'bitter sweet' for our management and board,” commented Gary C. Evans, chairman of the board and CEO of Magnum Hunter Resources. "Our company's entry into the Eagle Ford Shale initially began when we acquired Sharon Resources, Inc. back in September 2009. It has always been our belief that as the various shale plays mature, building scale is extremely important for achieving long term economic value and that is what is being accomplished today. We wish Penn Virginia success in this transaction."

The assets include 46 producing wells which will increase its count to 117 wells. Seven wells are in the process of being completed or awaiting completion and four wells are being drilled on the acquired acreage. The company stated it plans to drill up to 62 Eagle Ford Shale wells during 2013.

The total consideration for this transaction will be paid approximately 90 percent or $361 million in cash and, at the option of Penn Virginia, the remaining 10 percent or $40 million either in cash or Penn Virginia shares valued at $4 per share, said Magnum Hunter in a released statement.

Upon closing, Magnum Hunter will use the proceeds from the transaction to reduce debt. Penn Virginia expects for the transaction to close in early to mid-May 2013, subject to regulatory approval.

"This is a transformational acquisition which will add significantly to our leasehold and drilling inventory in the Eagle Ford Shale play and is highly complementary to our existing operating areas where we and MHR have had very successful drilling results," said H. Baird Whitehead, president and CEO of Penn Virginia, in a release statement.

Estimated net oil and gas production for the acquired assets was roughly 3,200 barrels of oil equivalent per day in February 2013, Penn Virginia stated in a press release. Additionally, based on a third-party reserve engineering review of the acquired assets, proved reserves as of year-end were about 12 million barrels of oil equivalent, 96 percent of which were crude oil and natural gas liquids and 37 percent of which were proved developed.

Penn Virginia is engaged primarily in the development, exploration and production of oil and natural gas in onshore regions in Texas, Oklahoma, Mississippi and Pennsylvania.

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.

View the original article here

Jogmec to Develop Shale Technology With Encana, Mitsubishi

TOKYO - Japan Oil, Gas and Metals National Corp., or Jogmec, Wednesday said it has agreed with Encana Corp. and a unit of Mitsubishi Corp. to jointly develop technologies to extract hydrocarbon from shale more efficiently.

Thousands of horizontal wells are drilled in a typical shale block operation. "If the number of wells necessary to extract a same amount of hydrocarbon falls, production cost would decrease," a Jogmec spokesman said.

Government-funded Jogmec, together with Encana and Mitsubishi unit Cutbank Dawson Gas Resources Ltd., will conduct geomechanical and seismic studies using data from a shale gas asset in the Montney formation of northeastern British Columbia, Canada, in which both Encana and Mitsubishi have interests.

Jogmec expects the studies to increase the asset's value. The spokesman didn't specify the budget for the studies.

Energy-starved Japan is interested in natural gas in North America, made cheaper by a supply glut amid booming shale development. North American gas users have expressed concern about a price increase should it be exported.

North America's benchmark Henry-Hub natural gas prices have fallen to around $4 per million British thermal unit from above $12/mmbtu in 2008.

Copyright (c) 2013 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.

View the original article here

Hess Agrees to Sell Russian Unit Samara-Nafta for $2.05 Billion

Hess Corp. said Monday it will sell its stake in a Russian subsidiary to OAO Lukoil for $1.8 billion, the latest asset sale by the oil and gas producer as it shores up its balance sheet.

Hess has been shedding assets to raise funds as it struggles with lackluster profits and a shareholder revolt. The New York oil and gas producer has already sold its holdings in the U.K. North Sea, South Texas and Azerbaijan. The sale of its Samara-Nafta business in Russia would bring total proceeds to $3.4 billion, the company said.

"We are making excellent progress in executing our asset sales program," said Hess Chief Executive John B. Hess, adding such moves are "a central component" in plans to turn the company into "a more focused, higher growth, lower-risk, pure-play exploration and production company."

Hess owns 90% of the Samara-Nafta business that it will sell to Lukoil. Hess' partners in Samara-Nafta, chairman of Russia's Yukos Oil Co. Simon Kukes, will also sell his 10% stake to Lukoil, Hess said. Total after-tax proceeds for the entire company will be $2 billion, Hess said.

Hess will use the proceeds to reduce debt and strengthen its balance sheet, the company said.

Samara-Nafta is currently producing 50,000 barrels of oil equivalent per day in the Volga-Urals region of Russia.

Hess has been battling criticism from dissident investor Elliott Management Corp., which has aimed to elect five board members and directly pay them bonuses based on how Hess shares perform. Mr. Elliott, a hedge-fund manager that controls 4.4% of Hess's shares, wants to split Hess into two companies in a bid to boost the stock.

Mr. Elliott has pressed the company to create shareholder value by spinning off its assets in the oil-rich Bakken shale region and other U.S. unconventional formations from less prolific international assets and its vast network of gasoline stations.

Hess has said while it turns itself into a exploration and production company, it is exploring options for its refining and retail gasoline business and pruning its Asian portfolio.

Lukoil for its part is attempting to increase production after years of dwindling output at its main fields.

The deal will be closed once state antitrust authorities approve it, Lukoil said.

"We have acquired a quality asset with long-term potential growth in a new region for us," Lukoil Chief Executive Vagit Alekperov said in a statement.

Hess shares rose 2% to $73.05 in recent trading. The stock has risen 38% in the past three months.

Saabira Chaudhuri and James Marson contributed to this article.

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.

View the original article here

Huntington Subsea Preps Complete

Norwegian Energy Company (Noreco) reported Tuesday that all subsea preparations have been completed an final commissioning activities are now taking place at the Huntington field development in the UK sector of the North Sea.

Noreco said that during recent weeks there had been some delays in the project due to weather conditions and technical work that had taken longer than planned. But the firm added that first oil is expected during the first half of April.

After a ramp-up period, the field is expected to produce approximately 6,000 barrels of oil equivalent per day net to Noreco, it added.

Noreco has a 20-percent interest in the Huntington field, which is operated by E.ON Exploration & Production.

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.

View the original article here

Apache Confirms 14 Blocks from Gulf of Mexico Lease Sale

Apache Corporation announced that its subsidiaries were the apparent high bidders on nine shallow water blocks and five deepwater blocks in the recent Gulf of Mexico (GOM) lease sale held by the U.S. Department of the Interior's Bureau of Ocean Energy Management. Lease Sale 227, held March 20 in New Orleans, received 407 bids from 52 companies on 320 tracts, with the high bids totaling more than $1.2 billion.

On the continental shelf, Apache was the sole bidder on all nine blocks where it submitted bids. The company partnered on seven blocks in the Main Pass area, forming a new joint venture with Apache as the operator and holding a 75-percent working interest. The JV is currently shooting seismic over a 633,000-acre area using new wide azimuth technology to collect data and images under and around salt dome structures.

The company holds a 100-percent working interest in its two other shelf leases acquired in the sale. Apache is currently the largest leaseholder on the Gulf of Mexico's continental shelf with interests in more than 500 blocks.

In the deepwater, Apache was high bidder on five of nine bids, with a 50-percent working interest in each lease. Leases were acquired in the DeSoto Canyon, Green Canyon and Mississippi Canyon lease areas, growing the company's prospect inventory with properties near existing industry discoveries. With the exception of one block, all bids were competitive with other GOM operators.

Overall, the company's net exposure for its winning bids was $2.2 million for the shelf and $24.6 million for deepwater blocks.

"With new acreage, new investments and new ideas, we expect that the Gulf of Mexico will continue to generate strong cash flows and excellent returns," said Jon Jeppesen, executive vice president.

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.

View the original article here