DNO Signs Somaliland PSC

Norway's DNO International reported Tuesday that it has signed a production sharing contract covering Block SL18 onshore Somaliland.

The firm said that President of Somaliland Ahmed Mohamoud Silanyo and DNO Executive Chairman Bijan Mossavar-Rahmani both attended the signing ceremony Monday in Washington D.C.

DNO has begun studies on Block SL18 ahead of an extensive seismic data acquisition program planned for 2014.

"This 12,000 square kilometer block adds substantial exploration acreage to DNO
International's portfolio and in an area that is both prospective and
undrilled," Mossavar-Rahmani said. 

He added that Somaliland falls within the company's geographic and geological comfort zones. "We have been active across the Gulf of Aden in Yemen since the late 1990s," he said.

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

Nighthawk Commences New Drilling Campaign in Colorado

Nighthawk, the U.S. focused oil development and production company, announced an update on drilling and development at its 100-percent controlled and operated Smoky Hill and Jolly Ranch projects in the Denver-Julesburg Basin, Colorado.

Two well drilling program underway at Smoky Hill with Big Sky 4-11 well was spudTaos 1-10 well, also at Smoky Hill, to be drilled immediately after Big Sky 4-11Both wells planned as development wells to increase production and reserves at the newly named Arikaree Creek oilfield, discovered by Nighthawk's Steamboat Hansen 8-10 well in October 2012Further geoscience analysis of 2012 drilling and logging results has confirmed the stacked pay potential across Nighthawk's acreage with at least ten stratigraphic targets covering both shale/carbonate resource and conventional opportunities   Increased third party drilling activity across southeast Colorado continues to demonstrate the widespread nature of the stacked pay opportunity

The Steamboat Hansen 8-10 well, drilled in October 2012, discovered a conventional Mississippian age oil reservoir. The well began production late in November 2012, and up to the end of March 2013 produced over 30,000 barrels of oil. In line with Colorado State requirements, the discovery has been designated the Arikaree Creek oilfield. Nighthawk has now commenced the further development of Arikaree Creek with a two well program aimed at increasing both production and reserves.

The first well in the program, Big Sky 4-11, was spud April 17. The well is located half a mile north-east of Steamboat Hansen 8-10 and is expected to be drilled to basement depth of 8,600 feet. The well will be logged, with sidewall cores and pressure and volume testing also planned. Completion of the well will require new topside facilities.

The second well in the program, the Taos 1-10 well, is to be located nearer to the Steamboat Hansen well. This well is also expected to be drilled to a depth of 8,600 feet and completion is likely to utilize the existing production facilities at Steamboat Hansen, although some increase in capacity may be required.

The Company has now completed an extensive geoscience analysis of the results from the 2012 five well drilling program. This work has also benefited from independent geological and petrophysical analysis and has been further informed by results from the current work-over program.

The analysis has confirmed that Nighthawk is positioned in the center of a wide-spread stacked formation play that extends over a large area of southeast Colorado. This stacked formation play significantly enhances the opportunity for Nighthawk as it expands the number of drilling targets both vertically and areally, mitigating drilling risk and enhancing well economics.

Nighthawk's analysis has identified at least ten stratigraphic targets over a 2,000 feet Pennsylvanian and Mississippian interval which includes the shale/carbonate Cherokee and Marmaton horizons as well as conventional targets such as the Lansing/Kansas City and Spergen horizons.

Results from the drilling program also confirmed the potential for localized 'sweet spots' where subsurface structuring may enhance the production potential across the multiple stratigraphic targets. Nighthawk has identified a number of such locations and permitting for future drilling is underway. The Company is also increasing its data collection with the purchase of additional 2D seismic lines, extensive logging of the two new wells and on the Big Sky 4-11 well, collection of sidewall cores and pressure and volume testing. Further 3D seismic is also planned.

Nighthawk is currently producing commercial quantities of oil from three horizons. The Steamboat Hansen 8-10 produces from the Mississippian Spergen, the John Craig 6-2 from the Pennsylvanian Marmaton carbonates, whilst other Jolly Ranch Project wells are producing from the Pennsylvanian Cherokee carbonates. Production from the Lansing/Kansas City horizon is currently being evaluated at the Whistler 6-22 well, as part of the ongoing workover program.

Third party activity in the area is increasing, with the rig count rising, and a number of 3D seismic programs underway. At least eight companies are currently drilling a mix of vertical and horizontal wells in the immediate area, with multiple stratigraphic targets including the Cherokee, Marmaton, Atoka, Morrow and Mississippian horizons.      

Stephen Gutteridge, chairman of Nighthawk, commented:

"Our current two well drilling program is aimed at increasing our production and reserve base and pushing our existing positive cash generation to a higher level. Beyond that however, the emerging picture is that we are centrally positioned in a large-scale, stacked formation play that is now undergoing a significant amount of drilling and development by a wide range of companies. On our acreage, which is one of the largest land positions in the area, we see a major opportunity for multiple drilling of multiple stratigraphic targets and we will be planning for extensive additional development activity in the second half of the year."

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 Proves New Resources on its Gullfaks License

Norway's Statoil reported Friday that it has proven significant additional resources within the Shetland Group/Lista Formation in its Gullfaks license in the Norwegian North Sea.

Statoil said that preliminary calculations indicate that the discovery contains between 40 million and 150 million recoverable barrels of oil equivalent. However, the company cautioned that this resource estimate involves a "high degree" of uncertainty and that data gathering and studies are currently ongoing to clarify the potential and further development of the resources.

Production well 34/10-A-8 on the Gullfaks A platform, where the well test is being carried out, is currently producing at a rate of 7,500 barrels per day, the firm added. The well has produced nearly one million barrels since December 2012.

"The discovery provides new volumes that can give high-value production in a short time as well as new and promising perspectives for the field and the installations," Øystein Michelsen, Statoil's executive vice president for Development and Production Norway, commented in a company statement.

"This is a result of Statoil's strategy for revitalization of the Norwegian continental shelf."

Located in the Tampen area in the northern North Sea, Gullfaks came on stream Dec. 22 1986. The field development consists of three permanent installations, which have produced more than 2.4 billion barrels of oil and more than 56 billion cubic meters of gas.

Statoil, the operator, holds a 70-percent interest in the Gullfaks field, while its partner Petoro holds 30 percent.

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

Petroceltic Awarded Two Egyptian Blocks

Junior explorer Petroceltic International announced Friday that it has been awarded two blocks in Egypt as part of a joint venture with Edison International.

The blocks, North Thekah and South Idku, were awarded in the Egyptian Natural Gas Holding Company 2012 International Bid Round.

North Thekah (Block 7) is located offshore the Nile Delta and potentially contains an extension of the Levantine Basin exploration play that has already yielded some giant discoveries. Petroceltic has a 50-percent, non-operated interest in the concession.

South Idku (Block 1) is located in Petroceltic’s core Egyptian operating area, onshore the Nile Delta. In this concession the company has a 75-percent operated interest.

Petroceltic expects the new licenses to be formally awarded in late 2013, following ratification and finalization of the production sharing contracts.

Petroceltic Chief Executive Brian O’Cathain commented in a statement:

"We are delighted to have been awarded both blocks which, together with last year's El Qa'a Plain award, onshore the Gulf of Suez, significantly enhance our Egyptian exploration portfolio. North Thekah is in an area of the Mediterranean which has seen several world class discoveries in recent years and South Idku will complement our existing onshore Nile Delta operations.

"Furthermore, the award of these blocks is consistent with our strategy of organic growth and opportunistic resource capture in territories where we have existing operations, knowledge and experience."

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

Baker Hughes' Reports Lower Profits, Revenue for 1Q 2013

Oilfield services provider Baker Hughes Inc. reported lower profits and revenue for the first quarter amid higher activity levels in Canada and improved utilization in its pressure pumping business.

The company's net income fell to $267 million, or $.60 per share, from $379 million, or $.086 per share last year. Revenue for the first quarter of 2013 was $5.23 billion, down 2 percent compared to $5.33 billion for the fourth quarter of 2012 and down 2 percent compared to $5.36 billion for the first quarter of 2012.

"Our first quarter results reflect improvement in our North America segment," said Martin Craighead, Baker Hughes' president and chief executive officer, in a released statement. "The increased revenues and profit margins in North America are due to higher activity levels in Canada, along with improved utilization in our pressure pumping business despite a 3 percent decline in the U.S. onshore rig count since last quarter. Following five consecutive quarters of declines in the U.S. rig count, we are now forecasting a modest increase for the remainder of the year."

The company also reported that adjusted net income for the first quarter of this year excludes a foreign exchange loss of $23 million before and after-tax ($.05 per diluted share) on the devaluation of Venezuela's currency in February.

Baker Hughes' revenue decreased 9 percent in North America to $2.603 billion and slipped 4 percent in Europe/Africa/Russian Caspian to $854 million.

"We believe Baker Hughes' 1Q13 earnings release has positive implications for the stock," noted analyst James West in Barclays Earnings at a Glance analysis. "Results in North America improved sequentially with higher revenue and stronger operating margins and the company showed solid growth, especially for margins, in the Middle East/Asia Pacific region as well."

Baker Hughes' cash increased roughly 8 percent from last quarter to $1.1 billion and its capital expenditure for the quarter was $490 million, compared to $727 million in 4Q 2012, West reported. Additionally, Baker's debt increased from $176 million to more than $5 billion.

An area worth noting in the company's lineup is the Middle East/Asia Pacific region. Revenue for this segment, $894 million, improved 1 percent sequentially and was higher than Barclay's forecast of $864 million.

"Operating income of $116 million rose 45 percent from the previous quarter and far exceeded our $77 million estimate," West stated. "The margin at 13 percent expanded from 9 percent in the prior period and was well above our 8.9 percent forecast."

"Offset was impressive in the Middle East/Asia Pacific region, which suggests BHI is making progress in Iraq," Tudor Pickering Holt also noted in its daily Energy Thoughts analysis.   

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

New World in Danish Farm-In Discussions

New World Oil & Gas reported Friday that discussions are ongoing with potential farm-in partners for its Danica Jutland project on license 1/09, onshore Denmark.

The firm said that interpretation of its 3D seismic acquisition program on the project's Jensen prospect is now complete. Independent consultant RPS Energy has assigned the Jensen prospect prospective resources of 48 million barrels of oil, and an updated competent person’s report will be released by the mid-2013.

On New World's Danica Resources project, a 2D seismic acquisition program has now been completed. This revealed high grading data on large Zechstein Zn-2, Zn-3 and Zn-4 leads that total 13,485 acres. Interpretation of the data is now underway with a view to deciding which leads are to undergo a 3D seismic acquisition program.

New World says that P50 volume estimates for the Als Prospect within the Danica Resources project remain at 97 million barrels of oil and 1.4 trillion cubic feet of gas.

New World has a 25-percent working interest in both projects, with an option to earn up to 80 percent in each of them.

New World CEO William Kelleher commented in a statement:

"Whilst drilling is underway in Belize, progress continues to be made across the Atlantic at our Danish assets. We have completed the initial interpretation of the 3D seismic data on our Jensen prospect on block 1/09, and RPS Energy are now compiling the data into an updated CPR which will be available before the end of the second quarter 2013.

"Meanwhile, our recent 2D program on block 1/08 has just been completed. We are eager to receive the results of this program as the data will reveal which of several large structures already identified we will further de-risk with a 3-D program."

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

A $30 Billion Hole In Caspian Sea?

For more than a decade, the promised bonanza from Kazakhstan's giant offshore Kashagan oil field has been a costly mirage for its developers. And the wait still isn't over.

The companies backing the project -- which include Exxon Mobil Corp., Eni Spa and Royal Dutch Shell PLC -- in March missed the startup date Eni predicted last year. And now, after a decade of work and more than $30 billion in expenses, it isn't clear when one of the world's biggest untapped fields will produce its first drop of oil.

Eni CEO Paolo Scaroni said last month the operators "are going to begin production in June." A spokesman for the North Caspian Operating Company BV, which represents all of the oil companies in the project, says "we are confident that we will deliver oil in the course of this year," though he said he isn't sure when. A person close to KazMunaiGas, or KMG, the Kazakh state oil company that owns close to 20% of Kashagan, said it may be 2014 before significant amounts of oil flow.

Delays beyond Oct. 1 could subject the companies to new financial penalties on top of tens of millions of dollars worth of concessions they have already given the Kazakh government for missing earlier deadlines and cost overruns, according to energy consultancy IHS CERA. Setbacks could also heighten tensions with a frustrated Kazakh government, say several people close to the project -- and will make it difficult for the firms to make more than a marginal profit from their investments.

Kashagan is an example of the challenges energy companies face in a world where the easy oil has already been pumped. To find big new fossil-fuel deposits, companies must look in places that are remote, technically challenging or politically thorny. In Kashagan, cold weather, difficult supply routes and friction with government officials have contributed to the lag time.

A spokesman for the North Caspian Operating Company said the biggest cause of delays is Kashagan's technical complexity and a cautious approach by the companies to avoid problems like oil or gas leaks.

Kashagan's potential upside is enormous, said Laurent Ruseckas, a consultant with IHS CERA who advises companies in Kashagan. Oil is now trading at close to $90 a barrel, and the 370,000 barrels a day Kashagan is projected to produce in its first phase is supposed to triple as companies make further investments.

But technical challenges and strained relationships among the operating companies and with the Kazakh government have made the project "a nightmare for almost 10 years," said Fadel Gheit, an oil-company analyst with Oppenheimer & Co. When production does start, it will largely be in Shell's hands, since a joint venture between Shell and KMG is operating that phase, according to the companies.

Kashagan's challenges were evident from the time big oil companies -- including Eni, Exxon, Shell, Total SA, Statoil PLC, BP PLC and BG Group PLC -- explored the area after the Soviet Union's breakup. Companies signed a production-sharing agreement with the Kazakh government in 1997 that expires in 2041 and allows companies to recover much of their costs before paying a big portion of oil revenue to the government. Of the initial foreign oil-company players, only Eni, Exxon, Total and Shell remain.

Early exploration revealed more than 10 billion recoverable barrels of oil -- along with great challenges. The reservoir is about 12,000 feet below the northeast Caspian Sea floor and mixed with toxic sulfur gas. The sea freezes for several months a year. The north Caspian harbors endemic seals and rare sturgeon.

The companies debated who would take the project's lead, settling on Eni, though it had less experience with giant oil developments than Shell and Exxon. The companies projected first oil in 2005, though Eni soon began pushing back the startup date due to technical problems.

Missteps, cost overruns and controversies have dogged the project. Eni has disclosed in public filings that Italian authorities are investigating whether it has paid bribes in Kazakhstan. An Eni spokeswoman said the company "has zero tolerance towards illegal acts and bribery" and is fully cooperating with the authorities.

In 2003, Saipem SpA -- a company in which Eni owns about 43% -- formed a joint venture with a company co-owned by a former Kazakh deputy energy minister, Nurlan Kapparov. Last year Mr. Kapparov became Kazakhstan's minster of environmental protection.

Oil companies including the Kashagan operators have since 2003 awarded more than $100 million in contracts to the joint venture for projects like building pipe racks and rigs for Kashagan and other Kazakh oil projects.

In an email, the Kazakh Ministry of Environmental Protection said Mr. Kapparov resigned from his management positions at his companywhen he became environment minister, and that his shares are in a trust that Mr. Kapparov doesn't control.

The joint venture "is regularly checked by the Ministry of Environmental Protection, but Minister Kapparov has never taken any role in the review," the ministry said.

The Eni spokeswoman said Saipem "has always been managed at arm's length" from Eni. She said the joint venture received the Kashagan work after a competitive bid process. Saipem declined to comment.

Meanwhile, some partners such as BP, Statoil and BG sold their stakes in Kashagan, as Eni pushed back its first oil production to 2008, and then to 2010. By 2008, Eni's projected budget for the first phase had risen from less than $10 billion to $25.6 billion, according to IHS CERA.

That year, the companies renegotiated the management structure, taking Eni out of the lead role. The Kazakh government imposed increased penalties on the companies for production delays beyond October.

Since then development has progressed and the companies finished drilling their production wells last year.

Perhaps most significantly, the Kazakh government hasn't agreed to extend the Kashagan companies' production-sharing agreement past its 2041 expiration, according to the person close to KMG and a consultant advising companies in Kashagan. Without the extension, it would be difficult for the companies to make the profits that they expected when the project began.

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

Production Outages Hit Santos Revenues

SYDNEY - Australia's Santos Ltd. Friday reported a 5% fall in first-quarter revenue after production was hampered by outages including planned maintenance work on a floating oil production vessel offshore Western Australia state. 

Revenue for the three months through March of 713 million Australian dollars (US$733.7 million) compared to A$754 million a year earlier. 

Total oil and gas production slipped 2% to 12.1 million barrels of oil equivalent after the Mutineer-Exeter floating production, storage and offloading vessel was docked for maintenance. The work contributed to a 19% fall in oil production during the quarter. 

Santos said revenue was also hurt by lower third-party natural gas sales. Third party gas is sourced from rival producers then sold to customers by Santos. The fall could partly be pinned on trouble at supplier Nexus Energy Ltd.'s Longtom project offshore Victoria state, which has been plagued by technical glitches. 

Santos achieved an average price for its natural gas of A$5.43 per gigajoule over the quarter, which it said was a record. Australian east coast natural gas prices are being driven higher ahead of a spike in demand expected from three giant gas-export projects in Queensland state due to go live from 2015. 

Adelaide-based Santos said the US$18.5 billion GLNG liquefied natural gas project is more than 50% complete and remains on track to ship its first cargo in 2015. The US$19 billion PNG LNG project in Papua New Guinea, operated by ExxonMobil Corp. and which counts Santos as a minority shareholder, if over 80% complete. 

Santos maintained its annual output guidance of 53 million to 57 million barrels of oil equivalent.

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

WBENC Advocates Women-Owned Businesses in the Energy Industry

Women's Business Enterprise National Council (WEBNC) recently held a conference that recognized America's Top Corporations for Women's Business Enterprises (WBEs) with six energy companies making the list.

Founded in 1997, Women's Business Enterprise National Council (WBENC) is the nation's leading third-party certifier of businesses owned and operated by women, with nearly 11,000 WBENC-Certified Women's Business Enterprises (WBE). WBENC certification is accepted by more than 1,000 corporations representing America's most prestigious brands, in addition to many states, cities and other entities.

Six energy companies – BP America Inc., Chevron Corp., Energy Future Holdings Corp., Exxon Mobil Corp., Pacific Gas and Electric Company, and Royal Dutch Shell plc – made the 14th annual listing of America's Top Corporations for Women's Business Enterprises, the only national award honoring corporations for world class programs that level the playing field for women's business enterprises to compete for corporate business. WBENC recognized these corporations for developing and driving best practices across their organizations that result in productive business partnerships with women entrepreneurs and valuable products and services for their customers. 

Rigzone recently conducted an interview with WBENC to find out more information on how this influential organization grooms, cultivates and recognizes women-owned businesses through development and collaborative success among corporate and government members of WBEs.

Rigzone: WBENC recognized several oil and gas companies for programs that level the playing field for women's business enterprises. Can you elaborate?

WBENC: The organization has seen consistent focus in developing opportunities and access for women's business enterprises among the energy companies that are top corporations for Women's Business Enterprises. 

These companies set high goals for themselves to increase their sourcing with WBEs; and they advance innovative programs to identify, develop and sustain WBE growth as suppliers over the long term.   

One key strategy is to ensure that procurement officers across their organizations are knowledgeable about and connected to quality WBEs that can deliver the products and services they need for their clients or employees.  These officers can provide the WBEs with exposure to decision makers in upstream, midstream and downstream segments of the company. Companies also encourage prime suppliers to source and utilize WBEs as second and third tier suppliers.

Another is to offer strategic mentoring and development, so that the WBEs can build their capacity to take on more business with the corporation.

Rigzone: Considering the oil and gas industry is male-dominated, what does this recognition mean for women and the industry?

WBENC: WBENC as an organization is extraordinarily proud of all of the 32 Top Corporations. The fact that there are six energy companies on the list – including Energy Future Holdings which has been on the list in each of the 14 years that the award has been bestowed – demonstrates that this sector is committed to women's business success. These companies passionately believe in the value of women's business to their ability to serve their clients and their employees with superior goods and services that these WBEs deliver.

Rigzone: How does WBENC groom women or help them along the way of their chosen career path?

WBENC: First of all, WBENC delivers world-class certification of WBEs as 51 percent-owned and operated by women. WBENC currently certifies more than 11,000 WBENC-WBEs.  Our corporate and government members rely on our WBEs' quality and they can access these WBEs through WBENCLink (a proprietary database) as well as the hundreds of events throughout the year presented by WBENC.

In fact, WBENC offers continuous development resources to WBEs throughout the year. This includes WBENC's major events, the Summit & Salute to WBEs where the Top Corporations were announced; and the upcoming 2013 WBENC National Conference & Business Fair, held June 25-27th in Minneapolis, which will attract some 3,500 corporations and women's businesses.

These WBEs have access to three days of nationally-acclaimed speakers, interactive workshops and business networking opportunities including the business fair with some 350 exhibitors. Workshops focus on what WBEs need to know to enhance their positions as suppliers: how to hone skills that are sought-after by their clients, leverage existing expertise for greater growth and build their capacity.

On an ongoing basis, WBENC offers a dynamic website with opportunities for WBEs to acquire important information on best practices for how to do business with major corporations, and the business trends affecting the marketplace.

Rigzone: With very few women CEOs in the energy industry, how can one pursue becoming a supplier to this industry without a mentor? How can they find one, if needed?

WBENC: We are speaking here of mentoring women business owners to become suppliers to major corporations, and once hired, to grow their business with them. WBENC's top corporations are exemplary in providing WBE development and access to direction and support in various forms. WBEs can and should also take the initiative to develop connections and present clear and compelling value propositions. To make connections with corporate decision makers, they should start by registering at the companies' supplier diversity websites, attend and network at the National Conference & Business Fair, and become involved in their RPOs.

Rigzone: With the energy industry seeking to diversify the companies they hire, what can they pull from WBENC?

WBENC: WBENC-certified WBEs are committed, established business owners. While they have families and outside interests, they come to WBENC events with a strategic business focus and a dedication to delivering quality products and services to their clients.  

What we have found is that the entire WBENC community – with our marketplace access, inspirational speakers and recognition of women's business owners who have demonstrated success – empowers women to succeed.  

Fifteen years ago, WBENC's goal was to level the playing field for women's businesses to compete and win corporate business. Today we have evolved to a point where we join forces and succeed together. We foster collaboration among corporations and WBEs to innovate, create improved products and services, and fuel economic growth. This lifts the conversation from "Can a woman-owned business succeed?" to "How do we work together to succeed." Our energy companies are at the heart of that positive conversation.

Rigzone: There are certain skills/personality traits one must possess to succeed in the business world. What are they and how can women pinpoint or instill this in young girls?

WBENC: Young women and girls interested in energy careers are strongly encouraged to pursue the Science-Technology-Engineering-Math (STEM) areas of expertise. Energy is a highly technical business, and many of the leaders of these companies have technical degrees. Technical training is also a very strong background for any young woman interested in starting her own business. Another key to success for a woman business owner is to take advantage of opportunities to surround her with peers and mentors who will help her grow her capabilities and business.

As an example of what energy companies are doing in this realm, Shell sponsored the 2012 Student Entrepreneur Program at last year's WBENC National Conference & Business Fair. This helped to prepare 15 promising young female entrepreneurs from historically black colleges and universities to fill the pipeline of future WBEs. This included cultivating mentors among leading WBEs and corporations, and attending the business fair and WBE workshops. Shell executives also worked with the students on the importance of building relationships, honing their technology expertise and building business skills.

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

Petrobras Will Be 'Selective, Focused' in Oil Concession Auction

RIO DE JANEIRO - Brazilian state-run energy giant Petroleo Brasileiro SA, or Petrobras, is in talks with the world's largest oil companies about forming partnerships to bid for new oil and natural-gas exploration concessions at a much-anticipated auction set for next month, Chief Executive Maria das Gracas Foster said in an interview.

"Our participation in the auctions this year is going to be focused and selective," Ms. Foster said. "We are making it a priority to work in partnership with big oil companies."

Brazil will auction off 289 oil and natural-gas exploration blocks on May 14-15, the country's first such auction of new exploration acreage since 2008. This auction doesn't include blocks from the subsalt area, as these will be sold later this year at an auction that will be under new legislation passed in the wake of the discovery.

Potential tie-ups with big oil companies for the round of blocks in May would help to reduce costs for Petrobras as the company embarks on a $237 billion investment plan through 2017, one of the world's largest corporate-spending campaigns, as well as ease the company's workload as it moves quickly to boost flagging crude-oil output by bringing the massive new subsalt fields into production.

While partnerships would help to diminish the company's financial risk in the new exploration areas, they would also provide a sounding board to discuss the best way to develop any potential discoveries, Ms. Foster said in an interview this week.

After primarily playing the lead role in Brazil's offshore oil industry for more than 30 years, Petrobras also appears ready to let potential partners take the reins for awhile. "We are negotiating to not be the operator" in new exploration blocks, Ms. Foster said.

Because Petrobras already serves as the operator in many of its oil fields and exploration blocks, Ms. Foster said that "we are discussing the partner's interest in being the operator. We're not going to fight about that."

But with whichever companies Petrobras forms partnerships for this year's planned auctions, they will be major players, Ms. Foster emphasized. The companies will have know-how and be strong financially, Ms. Foster said.

On Thursday, Royal Dutch Shell PLC Chief Executive Peter Voser noted that his company has "a very successful partnership" with Petrobras and is interested in further collaboration. The oil major will study the bid areas but hasn't yet decided whether it will participated in the May auction, he said.

Separately, Ms. Foster said Petrobras isn't considering taking an active role in developing infrastructure projects with billionaire Brazilian businessman Eike Batista's EBX Group of companies. EBX holds interests in such diverse areas as mining, real estate, shipbuilding, oil production and ports.

"Petrobras is not going to participate in the construction of any shipyard," Ms. Foster said. "Petrobras doesn't know anything about shipyards, Petrobras wants to use shipyards."

Mr. Batista's shipbuilding company, OSX Brasil, was part of a consortium that won a tender to provide processing modules for two floating-production platforms, Ms. Foster noted.

Brazil is especially keen to see the Acu port currently under construction by Mr. Batista's LLX Logistica completed, according to a person close to the government. Since September, Petrobras has held talks with EBX Group about buying services from the group, but won't go beyond that, Ms. Foster said.

"What we are seeking with this group are contracts to use the infrastructure it's building," Ms. Foster said. "Because [LLX] is building the port, but hasn't completed construction yet, these contracts will only happen when the port is built and will have to be at the lowest cost."

Petrobras will hold a tender that will make sure any services are contracted at the lowest-possible price, Ms. Foster added. Talks with EBX Group will likely be "better defined" starting in June, but contracts are unlikely to be signed at that time, Ms. Foster said. "I don't have any dates set to sign contracts," the executive said.

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