Hess Offers to Add Elliott Picks After Hedge Fund Scraps Bonus Plan

Hess Corp. said it is prepared to add two of Elliott Management Corp.'s nominees to the energy company's board after the dissident hedge fund scrapped an unorthodox bonus plan.

Elliott, which is seeking seats on Hess's board, earlier Monday ditched a plan to pay bonuses to its nominees if the company's shares outperform competitors.

It is the latest about-face in a hard-fought proxy battle for five seats on the 14-member board of Hess, an international energy company whose stock performance has sagged in recent years. The move comes after New York-based Hess said Friday that Chief Executive John Hess would give up his chairmanship and the company would appoint an independent chairman, a reversal of its previous position. The proxy contest will come to an end at its annual shareholders meeting in Houston on Thursday.

Hess, in a statement, said it is prepared to add two Elliott nominees that the energy company would choose if all five of Hess' nominees are elected.

Elliott, which owns about 4.5% of Hess's shares, is seeking new directors because it says the current board has allowed management to destroy shareholder value. Hess has said it is in the midst of a successful transition to becoming a more profitable and focused company, and that Elliott's bid would derail that progress.

Hess aimed much of its criticism at an unusual arrangement in which Elliott's nominees, if elected, would receive bonuses from the hedge fund based on how the company's shares performed against peers. The hedge fund would pay those directors $30,000 for every percentage point the company's stock outperformed a group of peers over three years, up to $9 million. Hess has said the plan compromises the nominees' independence while rewarding strategies to boost its stock in the short term.

The hedge fund's nominees said Monday they had amended their contracts to waive their right to the bonus payments, calling the pay plan a "distraction" but maintaining it was appropriate. The only payment they will receive from Elliott is the $50,000 they were paid when nominated in late January.

Elliott said it supported its nominees' decision. "The shareholder nominees have taken this distraction off the table," a spokesman said.

John Mullin, currently Hess's lead independent director, said in a statement Monday that Elliott's shift on the pay plan "makes it clear that shareholders agree that Elliott's scheme was unacceptable, and exposed Elliott's campaign for what it is, short termism at the expense of all shareholders."

Elliott's plan to pay its nominees for the company's stock performance had drawn criticism--even from some who had endorsed them. Proxy adviser Glass Lewis, for instance, recommended its clients vote for Elliott's nominees but expressed a concern that paying them differently than current directors could create discord on the board.

Relational Investors LLC, which owns about 3% of Hess's shares, has described concerns about the bonuses as overblown.

David Batchelder, a principal at Relational, said in an interview last week that the pay program wouldn't encourage Elliott's nominees to take action at the expense of long-term gains.

"Every day, a stock trades on a multiple of future cash flow," Mr. Batchelder said. "Every day it trades on its long-term value."

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Algeria's El Merk Complex Starts Oil Production After Security Boost

LONDON - El Merk oil complex in Algeria's Sahara, in a rare piece of positive news for the country's hydrocarbons sector after a January terrorist attack.

A terrorist hostage-taking at the In Amenas gas plant in January, which is operated by Sonatrach, the U.K.'s BP PLC and Norway's Statoil ASA, killed 40 oil workers. But the El Merk startup underscores how Algeria, a key oil and gas supplier to Europe, has been able to continue developing its resources after boosting security measures.

Algerian state news agency APS, citing sources close to the operation, said Anadarko and Sonatrach had started pumping from El Merk's fields in March but had only delivered its first oil outside the complex Friday. The complex, which includes a plant to process the hydrocarbons, will produce 127,000 barrels a day of crude oil and condensates by the end of this year, according to APS. Anadarko also said late Monday it had started production from El Merk.

Following the January attack on In Amenas, Anadarko Chief Executive Al Walker said the company had increased security at its operations in Algeria and that it had no intention to leave the country. Other companies, such as French oil and gas major Total SA, also have beefed up their security spending in the region.

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Crude Settles at One-Month High After Modest Inventory Rise

Crude-oil futures settled at a one-month high Wednesday after a report showed U.S. oil stockpiles rose less than expected last week.

Oil inventories increased 200,000 barrels to 395.5 million barrels, the Energy Information Administration said. The rise pushed oil inventories to their highest level since the EIA began keeping weekly records in August 1982, though the gain was less than anticipated by experts and offset by a steep rise in fuel demand.

Light, sweet crude for June delivery settled $1, or 1.1%, higher at $96.62 a barrel on the New York Mercantile Exchange. That is the highest front-month settlement since April 2.

Brent crude on ICE Futures Europe settled 6 cents, or 0.1%, lower at $104.34 a barrel.

"The market got a bit excited that the inventories for crude came in below expectations," said Dominick Chirichella, analyst at the Energy Management Institute in New York. "I think it's a lot to do about nothing...we're still building and inventories and are still at record-high levels of crude oil."

Analysts surveyed by Dow Jones Newswires were calling for an inventory rise of 1.7 million barrels.

U.S. oil stockpiles have been rising steadily since the beginning of the year, fueled largely by a steady rise in domestic production. U.S. stockpiles are up roughly 10% year to date.

Market participants said they were surprised by last week's sharp pickup in demand, according to the EIA. The agency's metric for refined fuel use rose 6.5% to 19.1 million barrels a day, although demand for gasoline--the biggest component--was essentially flat.

"Without a doubt the demand number was a little more positive than we've been accustomed to seeing...but guys who are bearish on this market are bearish because of supply," said Pete Donovan, vice president at Vantage Trading, an oil options brokerage, in New York.

Oil futures have been buffeted in recent weeks by persistent signs of weak demand globally and improving global supply, but worries about the escalating civil war in Syria have kept traders on guard for supply disruptions in the Middle East. On Tuesday, unconfirmed reports of explosions in Tehran triggered a 30-cent intraday jump in the price of crude.

On Tuesday, the EIA said Saudi Arabia, the world's biggest oil producer, boosted production 1.8% last month to 9.2 million barrels a day, the highest level since December. The data also showed overall output from members of the Organization of the Petroleum Exporting Countries rose to a five-month high.

Gasoline stockpiles last week fell 900,000 barrels, according to the EIA. Distillate stocks, including heating oil and diesel, rose 1.8 million barrels. Refinery utilization rose 2.6 percentage points to 87% of capacity.

Analysts had expected gasoline stockpiles to fall 300,000 barrels, while stocks of distillates were seen rising by 400,000 barrels. Refiners were expected to increase operations by 0.4 percentage point to 84.8% of capacity.

Oil inventories at the key trading hub of Cushing, Okla., fell 700,000 barrels last week to 49.1 million barrels. A recent decline in Cushing stockpiles has helped to narrow the discount of Nymex crude versus global benchmarks like Brent crude.

The Nymex crude's discount to Brent crude recently neared $7.72 a barrel, its lowest level since January 2011.

Front-month June reformulated gasoline blendstock, or RBOB, settled 2.04 cents, or 0.7%, higher at $2.8538 a gallon. June heating oil settled 1.30 cents, or 0.4%, lower at $2.9147 a gallon.

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Crude Settles at One-Month High After Modest Inventory Rise

Crude-oil futures settled at a one-month high Wednesday after a report showed U.S. oil stockpiles rose less than expected last week.

Oil inventories increased 200,000 barrels to 395.5 million barrels, the Energy Information Administration said. The rise pushed oil inventories to their highest level since the EIA began keeping weekly records in August 1982, though the gain was less than anticipated by experts and offset by a steep rise in fuel demand.

Light, sweet crude for June delivery settled $1, or 1.1%, higher at $96.62 a barrel on the New York Mercantile Exchange. That is the highest front-month settlement since April 2.

Brent crude on ICE Futures Europe settled 6 cents, or 0.1%, lower at $104.34 a barrel.

"The market got a bit excited that the inventories for crude came in below expectations," said Dominick Chirichella, analyst at the Energy Management Institute in New York. "I think it's a lot to do about nothing...we're still building and inventories and are still at record-high levels of crude oil."

Analysts surveyed by Dow Jones Newswires were calling for an inventory rise of 1.7 million barrels.

U.S. oil stockpiles have been rising steadily since the beginning of the year, fueled largely by a steady rise in domestic production. U.S. stockpiles are up roughly 10% year to date.

Market participants said they were surprised by last week's sharp pickup in demand, according to the EIA. The agency's metric for refined fuel use rose 6.5% to 19.1 million barrels a day, although demand for gasoline--the biggest component--was essentially flat.

"Without a doubt the demand number was a little more positive than we've been accustomed to seeing...but guys who are bearish on this market are bearish because of supply," said Pete Donovan, vice president at Vantage Trading, an oil options brokerage, in New York.

Oil futures have been buffeted in recent weeks by persistent signs of weak demand globally and improving global supply, but worries about the escalating civil war in Syria have kept traders on guard for supply disruptions in the Middle East. On Tuesday, unconfirmed reports of explosions in Tehran triggered a 30-cent intraday jump in the price of crude.

On Tuesday, the EIA said Saudi Arabia, the world's biggest oil producer, boosted production 1.8% last month to 9.2 million barrels a day, the highest level since December. The data also showed overall output from members of the Organization of the Petroleum Exporting Countries rose to a five-month high.

Gasoline stockpiles last week fell 900,000 barrels, according to the EIA. Distillate stocks, including heating oil and diesel, rose 1.8 million barrels. Refinery utilization rose 2.6 percentage points to 87% of capacity.

Analysts had expected gasoline stockpiles to fall 300,000 barrels, while stocks of distillates were seen rising by 400,000 barrels. Refiners were expected to increase operations by 0.4 percentage point to 84.8% of capacity.

Oil inventories at the key trading hub of Cushing, Okla., fell 700,000 barrels last week to 49.1 million barrels. A recent decline in Cushing stockpiles has helped to narrow the discount of Nymex crude versus global benchmarks like Brent crude.

The Nymex crude's discount to Brent crude recently neared $7.72 a barrel, its lowest level since January 2011.

Front-month June reformulated gasoline blendstock, or RBOB, settled 2.04 cents, or 0.7%, higher at $2.8538 a gallon. June heating oil settled 1.30 cents, or 0.4%, lower at $2.9147 a gallon.

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Total Boosts Security Spend after Algeria Attack

DUBAI - French oil and gas major Total SA has increased its security spending in the Middle East following a deadly attack in January on an Algerian natural-gas plant that rekindled fears of raids on energy facilities across the region, a senior executive said Wednesday. 

Asked if the company has raised its security measures and spending in the Middle East, Arnaud Breuillac, Total's president for Middle East exploration and production, told Dow Jones Newswires that the company had done so and he said "but it is not only about the money it's about the people, the risk, and the work." 

The firm is "taking extra care (now)," he said, but declined to say how much it was investing on its security plans. 

Last month, Total said it is planning to drill two exploration wells in Libya in May, in a move that shows that recent security concerns haven't stopped international companies from moving forward with their North African oil-development plans. 

The attack on an Algerian gas plant is forcing global oil giants to rethink protection of oil fields in the Middle East and Africa, a new reality that could potentially boost the cost of crude production. Major oil companies have long been a target of kidnappings and low-level sabotage, but the unprecedented scale of the Algeria attack will likely result in new levels of protection. 

It took Algerian forces several days to retake the In Amenas plant, which is jointly operated by Statoil, BP PLC and Algerian energy company Sonatrach. Forty people were killed.

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BP Sees Strong 1Q after TNK-BP Sale

U.K. energy giant BP PLC Tuesday posted a more than threefold increase in profit for the first quarter as proceeds from the sale of Russian joint venture TNK-BP offset a fall in oil and gas production and downtime at the company's key Whiting refinery in Indiana. 

"These strong first-quarter results demonstrate the progress BP is making...and underpin our commitment to material operating cash flow growth by 2014," said BP Chief Executive Bob Dudley. 

The London-based oil and gas company said its replacement cost profit, a figure that excludes gains or losses in the value of inventories and is therefore equivalent to the net profit figure reported by U.S. oil companies, was $16.60 billion in the three months ended March 31, compared with $4.78 billion in the first quarter of 2012. 

First-quarter earnings were bolstered by the sale of BP's half of TNK-BP to OAO Rosneft, which completed March 21, for a total consideration of $27.5 billion in cash and Rosneft shares. BP now holds a 19.75% interest in Rosneft. The 11 days of earnings from Rosneft attributable to BP in the first quarter were estimated at $85 million. 

The gain on the sale was $15.5 billion, of which $12.5 billion was recognized in the first quarter. The rest of the proceeds will be released to the income statement over time, BP said. 

Excluding the proceeds of the TNK-BP sale and other one-off gains, the company's profit was $4.22 billion, down 9.4% on the year and above average expectations of $3.25 billion in a Dow Jones Newswires poll of nine analysts.

Excluding TNK-BP and Rosneft, BP's total oil and gas production was 2.330 million barrels of oil equivalent per day, a 5% decrease on the year due mostly to other asset sales, and slightly above analyst expectations of 2.322 million barrels of oil equivalent a day. 

The company announced a quarterly dividend of 9 cents a share to be paid in June. Group revenues were $107.21 billion, compared with $97.42 billion in the first quarter of 2012. Diluted earnings per share were 87.61 cents, compared with 29.97 cents the previous year.

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Total Confirms Output Targets, Sees Further Growth After 2017

SHETLAND, Scotland - French company Total SA still expects its oil and gas output to grow 3% on average on an annual basis between 2011 and 2015, and then sees accelerated growth after 2017 as new projects come on stream, the head of the exploration and production division Yves-Louis Darricarrere said, ahead of the group's release of its first-quarter earnings later this week.

By 2017, the group expects to have increased its production capacity potential to 3 million barrels of oil equivalent per day, from currently around 2.3 mboe/d, Mr. Darricarrere said during a press presentation there Monday.

The group is strongly competing with peers to find more oil and gas as energy demand keeps growing in emerging markets and while most conventional hydrocarbon reservoirs around the world are believed now to be depleting. Total has engaged in a strategic change and has become more aggressive in terms of exploration, allowing it to recently make substantial discoveries, notably in risky areas also called "frontier basins," such as the rough seas of West Shetlands and the Barents Sea, at the most northern tip of Europe.

Total even sees its output growth accelerating after 2017, as "already 90% of the 2017 potential is either in production or in development," Mr. Darricarrere said.

"We're seeing the results of our revitalized exploration strategy. Accepting to take more risks and looking for larger projects are our new focuses," Mr. Darricarrere said, adding the group's potential resources has doubled in the last three years to six billion barrels of oil equivalent.

In the North Sea alone, the group plans to invest as much as $20 billion over the five coming years, he said.

The strategy has allowed Total's production decline rate to remain steady, at around 3%, he said.

"We're able to control the decline, but this is because attention has been brought to existing fields and all our projects must be on time... Any delay of a project is a destruction of growth," he added.

Total has currently 15 projects under development, four of which are located in the North Sea and the Barents Sea. Mr. Darricarrere said "these projects, for the time being, are on time" and should add around 175,000 boe/d to Total's production.

The group will release its first-quarter earnings on Friday at 0600 GMT. Analysts polled by Dow Jones Newswires expect Total's first-quarter output to have dropped 2.1% from a year earlier to 2.323 mboe/d from 2.372 mboe/d.

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Total Confirms Output Targets, Sees Further Growth After 2017

SHETLAND, Scotland - French company Total SA still expects its oil and gas output to grow 3% on average on an annual basis between 2011 and 2015, and then sees accelerated growth after 2017 as new projects come on stream, the head of the exploration and production division Yves-Louis Darricarrere said, ahead of the group's release of its first-quarter earnings later this week.

By 2017, the group expects to have increased its production capacity potential to 3 million barrels of oil equivalent per day, from currently around 2.3 mboe/d, Mr. Darricarrere said during a press presentation there Monday.

The group is strongly competing with peers to find more oil and gas as energy demand keeps growing in emerging markets and while most conventional hydrocarbon reservoirs around the world are believed now to be depleting. Total has engaged in a strategic change and has become more aggressive in terms of exploration, allowing it to recently make substantial discoveries, notably in risky areas also called "frontier basins," such as the rough seas of West Shetlands and the Barents Sea, at the most northern tip of Europe.

Total even sees its output growth accelerating after 2017, as "already 90% of the 2017 potential is either in production or in development," Mr. Darricarrere said.

"We're seeing the results of our revitalized exploration strategy. Accepting to take more risks and looking for larger projects are our new focuses," Mr. Darricarrere said, adding the group's potential resources has doubled in the last three years to six billion barrels of oil equivalent.

In the North Sea alone, the group plans to invest as much as $20 billion over the five coming years, he said.

The strategy has allowed Total's production decline rate to remain steady, at around 3%, he said.

"We're able to control the decline, but this is because attention has been brought to existing fields and all our projects must be on time... Any delay of a project is a destruction of growth," he added.

Total has currently 15 projects under development, four of which are located in the North Sea and the Barents Sea. Mr. Darricarrere said "these projects, for the time being, are on time" and should add around 175,000 boe/d to Total's production.

The group will release its first-quarter earnings on Friday at 0600 GMT. Analysts polled by Dow Jones Newswires expect Total's first-quarter output to have dropped 2.1% from a year earlier to 2.323 mboe/d from 2.372 mboe/d.

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Crude Oil Settles Higher on Bargain Buying after Recent Sharp Drop

Crude-oil futures prices settled higher Thursday amid bargain-hunting after a recent steep selloff, with North Sea Brent posting its first gain after six down days.

News of lower exports of Nigerian crude oil buoyed prices of European benchmark Brent crude, which had tumbled in the past six session to its lowest level since July 2. Royal Dutch Shell's (RDSA, RDSA.LN) Nigerian unit said it cut output of Bonny Light crude oil by 150,000 barrels a day and halted exports in order to resolve issues with a key oil pipeline.

Traders said an extended outage in shipments of the Brent lookalike would underpin prices of the European benchmark. But the overall supply-demand picture for oil remains weak, amid stuttering signs of economy recovery in the U.S., the world's biggest oil consumer.

"We are a slave to the economy right now and the picture's not particularly great," said Carl Larry, analyst at Oil Outlooks and Opinions.

June North Sea Brent crude oil futures on the InterContinental Exchange settled 1.5%, or $1.44, higher at $99.13 a barrel, after six days of declines. The June contract traded in a high-low range of near $10 a barrel since April 10, dropping 8%, or nearly $8.50 a barrel in the period.

May-delivery light, sweet crude oil futures on the New York Mercantile Exchange settled 1.2%, or $1.01 higher, at $88.20 a barrel, after settling Wednesday at a four-month low.

U.S. benchmark crude has dropped by more than $10 a barrel from highs in early April, as domestic crude oil and gasoline inventories have climbed, while demand for fuels remains sluggish. Front-month Brent, has fallen by about $12 a barrel this month, and the three-day string of prices below $100 a barrel is the longest since June 2012.

"We've lopped off $12 and it looks like we're wrapping up the selloff and starting to stabilize here," said Gene McGillian, broker and analyst at Tradition Energy. "But it's not that all of sudden we have confidence that the economy is improving."

The Labor Department said Thursday the number of U.S. workers applying for jobless benefits last week rose by more than economists had expected. Elsewhere, the Conference Board said its index of leading economic indicators posted an unexpected fall in March, as consumers turned gloomy on the economic outlook. The index declined 0.1% in March, its first fall since August, and counter to an expected 0.2% rise recorded in a survey of economists by Dow Jones Newswires.

U.S. gasoline demand dropped to a one-month low and was the lowest for the second week in April in 16 years, government data released on Thursday show. Demand of 8.383 million barrels a day last week was nearly 400,000 barrels a day below the year-earlier level.

The Energy Information Administration forecasted last week that gains in fuel-efficient vehicles will trim spring-summer driving season demand this year to a 12-year low of 8.877 million barrels a day.

Nymex May reformulated gasoline blendstock futures posted the first gain after falling 12%, or 37.25 cents in five of the previous six sessions to a three-month low. The contract settled up 2.65 cents, or 1%, Thursday, at $2.7555 a gallon.

Nymex May heating oil futures settled 4.45 cents, or 1.6%, higher, at $2.7791 a gallon. Prices fell 7.7% over the previous six days to the lowest level since July 2012.

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Crude Oil Settles Higher on Bargain Buying after Recent Sharp Drop

Crude-oil futures prices settled higher Thursday amid bargain-hunting after a recent steep selloff, with North Sea Brent posting its first gain after six down days.

News of lower exports of Nigerian crude oil buoyed prices of European benchmark Brent crude, which had tumbled in the past six session to its lowest level since July 2. Royal Dutch Shell's (RDSA, RDSA.LN) Nigerian unit said it cut output of Bonny Light crude oil by 150,000 barrels a day and halted exports in order to resolve issues with a key oil pipeline.

Traders said an extended outage in shipments of the Brent lookalike would underpin prices of the European benchmark. But the overall supply-demand picture for oil remains weak, amid stuttering signs of economy recovery in the U.S., the world's biggest oil consumer.

"We are a slave to the economy right now and the picture's not particularly great," said Carl Larry, analyst at Oil Outlooks and Opinions.

June North Sea Brent crude oil futures on the InterContinental Exchange settled 1.5%, or $1.44, higher at $99.13 a barrel, after six days of declines. The June contract traded in a high-low range of near $10 a barrel since April 10, dropping 8%, or nearly $8.50 a barrel in the period.

May-delivery light, sweet crude oil futures on the New York Mercantile Exchange settled 1.2%, or $1.01 higher, at $88.20 a barrel, after settling Wednesday at a four-month low.

U.S. benchmark crude has dropped by more than $10 a barrel from highs in early April, as domestic crude oil and gasoline inventories have climbed, while demand for fuels remains sluggish. Front-month Brent, has fallen by about $12 a barrel this month, and the three-day string of prices below $100 a barrel is the longest since June 2012.

"We've lopped off $12 and it looks like we're wrapping up the selloff and starting to stabilize here," said Gene McGillian, broker and analyst at Tradition Energy. "But it's not that all of sudden we have confidence that the economy is improving."

The Labor Department said Thursday the number of U.S. workers applying for jobless benefits last week rose by more than economists had expected. Elsewhere, the Conference Board said its index of leading economic indicators posted an unexpected fall in March, as consumers turned gloomy on the economic outlook. The index declined 0.1% in March, its first fall since August, and counter to an expected 0.2% rise recorded in a survey of economists by Dow Jones Newswires.

U.S. gasoline demand dropped to a one-month low and was the lowest for the second week in April in 16 years, government data released on Thursday show. Demand of 8.383 million barrels a day last week was nearly 400,000 barrels a day below the year-earlier level.

The Energy Information Administration forecasted last week that gains in fuel-efficient vehicles will trim spring-summer driving season demand this year to a 12-year low of 8.877 million barrels a day.

Nymex May reformulated gasoline blendstock futures posted the first gain after falling 12%, or 37.25 cents in five of the previous six sessions to a three-month low. The contract settled up 2.65 cents, or 1%, Thursday, at $2.7555 a gallon.

Nymex May heating oil futures settled 4.45 cents, or 1.6%, higher, at $2.7791 a gallon. Prices fell 7.7% over the previous six days to the lowest level since July 2012.

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SandRidge CEO Sells Shares Days After Truce With Activist Investor

HOUSTON - SandRidge Energy Inc. Chief Executive Tom Ward sold about 13.5% of his SandRidge stock days after the company reached a truce with an activist investor that could lead to the executive's departure.

Mr. Ward sold 3.7 million shares of SandRidge in two transactions Friday and Monday, netting about $21 million, according to a filing with the Securities and Exchange Commission. He still owns nearly 23.5 million shares, or close to 5% of SandRidge's shares according to figures from the company's website.

The move came in the wake of the partial success last week of a months-long campaign by hedge fund TPG-Axon Capital Management, which sought to replace SandRidge's board, including Mr. Ward. The campaign ended in a settlement, under which four of the fund's nominees would join the board.

Under the deal, Mr. Ward will keep his position as chief executive and board chairman for the time being, but the board will have to decide his fate by June 30. If it keeps him in place, three current SandRidge board members will have to leave and an additional nominee by TPG-Axon will join, giving the activist investor a majority of the seats on the board.

If Mr. Ward is terminated, current chief financial officer James Bennett will become interim chief executive and the board will conduct a search for a successor.

A spokesman for SandRidge did not immediately respond to a request for comment.

The board's decision will come after a review of the company's strategy and costs, including an independent firm's review of land deals the company entered with entities controlled by relatives of Mr. Ward, according to the settlement announced last week.

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SandRidge CEO Sells Shares Days After Truce With Activist Investor

HOUSTON - SandRidge Energy Inc. Chief Executive Tom Ward sold about 13.5% of his SandRidge stock days after the company reached a truce with an activist investor that could lead to the executive's departure.

Mr. Ward sold 3.7 million shares of SandRidge in two transactions Friday and Monday, netting about $21 million, according to a filing with the Securities and Exchange Commission. He still owns nearly 23.5 million shares, or close to 5% of SandRidge's shares according to figures from the company's website.

The move came in the wake of the partial success last week of a months-long campaign by hedge fund TPG-Axon Capital Management, which sought to replace SandRidge's board, including Mr. Ward. The campaign ended in a settlement, under which four of the fund's nominees would join the board.

Under the deal, Mr. Ward will keep his position as chief executive and board chairman for the time being, but the board will have to decide his fate by June 30. If it keeps him in place, three current SandRidge board members will have to leave and an additional nominee by TPG-Axon will join, giving the activist investor a majority of the seats on the board.

If Mr. Ward is terminated, current chief financial officer James Bennett will become interim chief executive and the board will conduct a search for a successor.

A spokesman for SandRidge did not immediately respond to a request for comment.

The board's decision will come after a review of the company's strategy and costs, including an independent firm's review of land deals the company entered with entities controlled by relatives of Mr. Ward, according to the settlement announced last week.

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Coast Guard: No Oil Spilled after NOLA Barge Crash; Fire Still Burning

A fire is still burning nearly a full day after a tug pushing a barge crashed into a pipeline in a bayou south of New Orleans Tuesday evening, but the Coast Guard said there is no visible oil in the water.

Earlier Wednesday, the Coast Guard had said a mile-long sheen was visible near the site of the incident, but it now says that was actually ash from the burn of the liquefied gas in the pipeline.

The pipeline fire is now about 30% smaller than it was earlier in the day, the Coast Guard said in a news release.

The barge, which the Coast Guard said is still intact, was carrying 2,215 barrels of oil when the tug crashed into the pipeline in Bayou Perot in Lafourche Parish, about 30 miles south of New Orleans, according to the Coast Guard.

The pipeline, which transports liquefied petroleum gas, is owned by Chevron Corp. and the tug by Settoon Towing LLC, according to the Coast Guard.

A spokesman for Chevron said the company has shut in the pipeline, which connects the Venice, La., gas plant to the pump station in Paradis, La. The company said products are being rerouted to avoid the pipeline, and the company has mobilized emergency crews to help with the response.

The Coast Guard said all crew members were able to exit the tug, though the captain is reported to have suffered second- and third-degree burns.

ES&H, an oil-spill response organization, has deployed thousands of feet of containment boom, a skimmer, and several response vessels, the Coast Guard said. The Coast Guard will fly over the area Wednesday afternoon to assess the damage.

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

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US Coast Guard: Barge, Pipeline Burn After Crash; Oil Slick Visible

A fire is still burning nearly a full day after a tug pushing a barge crashed into a pipeline in a bayou south of New Orleans Tuesday evening, but the Coast Guard said there is no visible oil in the water.

Earlier Wednesday, the Coast Guard had said a mile-long sheen was visible near the site of the incident, but it now says that was actually ash from the burn of the liquefied gas in the pipeline.

The pipeline fire is now about 30% smaller than it was earlier in the day, the Coast Guard said in a news release.

The barge, which the Coast Guard said is still intact, was carrying 2,215 barrels of oil when the tug crashed into the pipeline in Bayou Perot in Lafourche Parish, about 30 miles south of New Orleans, according to the Coast Guard.

The pipeline, which transports liquefied petroleum gas, is owned by Chevron Corp. and the tug by Settoon Towing LLC, according to the Coast Guard.

A spokesman for Chevron said the company has shut in the pipeline, which connects the Venice, La., gas plant to the pump station in Paradis, La. The company said products are being rerouted to avoid the pipeline, and the company has mobilized emergency crews to help with the response.

The Coast Guard said all crew members were able to exit the tug, though the captain is reported to have suffered second- and third-degree burns.

ES&H, an oil-spill response organization, has deployed thousands of feet of containment boom, a skimmer, and several response vessels, the Coast Guard said. The Coast Guard will fly over the area Wednesday afternoon to assess the damage.

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

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US Coast Guard: Barge, Pipeline Burn After Crash; Oil Slick Visible

A fire is still burning nearly a full day after a tug pushing a barge crashed into a pipeline in a bayou south of New Orleans Tuesday evening, but the Coast Guard said there is no visible oil in the water.

Earlier Wednesday, the Coast Guard had said a mile-long sheen was visible near the site of the incident, but it now says that was actually ash from the burn of the liquefied gas in the pipeline.

The pipeline fire is now about 30% smaller than it was earlier in the day, the Coast Guard said in a news release.

The barge, which the Coast Guard said is still intact, was carrying 2,215 barrels of oil when the tug crashed into the pipeline in Bayou Perot in Lafourche Parish, about 30 miles south of New Orleans, according to the Coast Guard.

The pipeline, which transports liquefied petroleum gas, is owned by Chevron Corp. and the tug by Settoon Towing LLC, according to the Coast Guard.

A spokesman for Chevron said the company has shut in the pipeline, which connects the Venice, La., gas plant to the pump station in Paradis, La. The company said products are being rerouted to avoid the pipeline, and the company has mobilized emergency crews to help with the response.

The Coast Guard said all crew members were able to exit the tug, though the captain is reported to have suffered second- and third-degree burns.

ES&H, an oil-spill response organization, has deployed thousands of feet of containment boom, a skimmer, and several response vessels, the Coast Guard said. The Coast Guard will fly over the area Wednesday afternoon to assess the damage.

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

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Talisman Scraps Yme Project after SBM deal

Dutch oilfield services firm SBM Offshore has settled its dispute over the Yme project, offshore Norway. The firm has agreed to pay to Talisman Energy Norge and its partners an additional $270 million, on top of an earlier payment of $200 million, to cover the decommissioning of the abandoned Yme platform.

Talisman and its partners have seen a number of delays, as well as safety issues, at Yme. This included an evacuation of 140 workers from the platform in July 2012 due to structural concerns.

Once it has received the settlement payment, Talisman said it will complete the work necessary to ensure the safe re-manning of the platform and will then remove the MOPU (mobile offshore production unit), which will subsequently be scrapped.

Paul Warwick, Talisman's executive vice-president for Europe-Atlantic, commented in a statement:

"Delays to first production on the Yme project have been a great disappointment to the Yme joint venture partners. Recent analysis has concluded that a new topsides solution is needed in order to develop the Yme field. The arrangement with SBM Offshore allows the Yme joint venture partners to continue to evaluate options for the field."

Meanwhile, SBM noted that the settlement paves the way for it to carry out a fundraising exercise required to help balance the firm's books.

"Today we have resolved the legacy difficulties of Yme at an agreed cost, bringing an end to a period of significant uncertainty for the company," SBM director Sietze Hepkema said.

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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Talisman Scraps Yme Project after SBM deal

Dutch oilfield services firm SBM Offshore has settled its dispute over the Yme project, offshore Norway. The firm has agreed to pay to Talisman Energy Norge and its partners an additional $270 million, on top of an earlier payment of $200 million, to cover the decommissioning of the abandoned Yme platform.

Talisman and its partners have seen a number of delays, as well as safety issues, at Yme. This included an evacuation of 140 workers from the platform in July 2012 due to structural concerns.

Once it has received the settlement payment, Talisman said it will complete the work necessary to ensure the safe re-manning of the platform and will then remove the MOPU (mobile offshore production unit), which will subsequently be scrapped.

Paul Warwick, Talisman's executive vice-president for Europe-Atlantic, commented in a statement:

"Delays to first production on the Yme project have been a great disappointment to the Yme joint venture partners. Recent analysis has concluded that a new topsides solution is needed in order to develop the Yme field. The arrangement with SBM Offshore allows the Yme joint venture partners to continue to evaluate options for the field."

Meanwhile, SBM noted that the settlement paves the way for it to carry out a fundraising exercise required to help balance the firm's books.

"Today we have resolved the legacy difficulties of Yme at an agreed cost, bringing an end to a period of significant uncertainty for the company," SBM director Sietze Hepkema said.

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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Worker Killed After Fall from Oil Rig is Named

The man who died in a fall on a rig in the Cromarty Firth has been named as a 60-year-old from the Glasgow area.

Morris Haddock was working on the Transocean Sedco 712 rig at the Easter Ross port of Invergordon on Wednesday when he fell.

As a police and health and safety investigation continued yesterday, work restarted on the installation in the late morning.

Mr Haddock, who is employed by Transocean, was working on the semi-submersible drilling unit tied alongside when the incident happened at around 6.50am. A spokeswoman for Transocean said: "We suspended work on the rig on Wednesday as a mark of respect."

She added that they had been in touch with his family and were providing help and support at this difficult time. A report on the incident is to be submitted to the procurator fiscal, and it is likely a fatal accident inquiry will be held.

Copyright 2013 Aberdeen Journals Ltd. All Rights Reserved.

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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

Worker Killed After Fall from Oil Rig is Named

The man who died in a fall on a rig in the Cromarty Firth has been named as a 60-year-old from the Glasgow area.

Morris Haddock was working on the Transocean Sedco 712 rig at the Easter Ross port of Invergordon on Wednesday when he fell.

As a police and health and safety investigation continued yesterday, work restarted on the installation in the late morning.

Mr Haddock, who is employed by Transocean, was working on the semi-submersible drilling unit tied alongside when the incident happened at around 6.50am. A spokeswoman for Transocean said: "We suspended work on the rig on Wednesday as a mark of respect."

She added that they had been in touch with his family and were providing help and support at this difficult time. A report on the incident is to be submitted to the procurator fiscal, and it is likely a fatal accident inquiry will be held.

Copyright 2013 Aberdeen Journals Ltd. All Rights Reserved.

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.
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

Crude-Oil Futures Settle Lower After Rise in Inventories

Crude-oil futures settled slightly lower Wednesday after a larger-than-expected rise in U.S. inventories stirred concerns about demand.

The federal Energy Information Administration said crude-oil stocks climbed 3.8 million barrels to 381.4 million barrels in the week ended March 1, well above the 500,000-barrel increase analysts expected. The stocks are at the highest level for this time of year in 82 years, as domestic production increased and demand from refiners eased during a period of seasonal maintenance.

"It's the same general theme we've been seeing: crude is plentiful, products are a little tight," said Kyle Cooper, managing partner at IAF Advisors.

The EIA data showed domestic crude production neared 7.1 million barrels a day, or 1.3 million barrels above the same week in 2012.

Refiners cut crude-oil processing by nearly 500,000 barrels a day to the lowest levels in almost two years. At current reduced processing rates of just above 14 million barrels a day, stocks are sufficient to meet nearly four weeks of refiner demand, the highest level in almost 20 years.

Mr. Cooper said seasonal refinery maintenance appears to be running longer than had been expected, and some companies are suffering unplanned outages at units, reducing supply of refined products like gasoline.

Light, sweet crude-oil futures for April delivery on the New York Mercantile Exchange settled 39 cents, or 0.4%, lower at $90.43 a barrel. The contract hit a low of $89.55 a barrel after the EIA data but recovered some losses after failing to break below the 2012 intraday low of $89.33 the front-month contract touched Monday.

Gene McGillian, broker and analyst at Tradition Energy, said he expects prices to consolidate around $90 for the near term, as traders look for clues on the pace of economic recovery and oil demand. U.S. oil use dropped 2.1% to a one-month low last week, EIA data showed.

"We've wiped out $8 from the price and if we continue to see slowing in economies in the U.S. and Europe, prices could go down to the mid-$80s," a level last seen in mid-November, he said.

ICE North Sea Brent for April delivery settled 55 cents, or 0.5%, lower at $111.06 a barrel.

The EIA said U.S. crude-oil imports last week fell by 650,000 barrels a day to 7.3 million barrels a day. Higher domestic flows from shale-oil fields are expected to continue the trend of reducing the need for crude-oil imports.

Gasoline output fell 600,000 barrels a day last week, to a seven-week low, cutting nationwide inventories in the week.

But stocks in Northeast U.S., including the New York Harbor delivery point for the benchmark gasoline futures contract, climbed for an 11th-straight week, as regional supplies continued to recover from effect of Hurricane Sandy. Stocks are 2.6% above year-earlier levels in the region, reversing a mid-December year-on-year fall of 2.5%.

April-delivery reformulated gasoline blendstock futures settled 2.35 cents, or 0.7%, lower at $3.1247 a gallon.

The EIA reported inventories of distillate fuel (diesel/heating oil) fell by a steep 3.83 million barrels, more than five times larger than expectations of a decline of 700,000 barrels. April heating oil gained 0.26 cent, or 0.1%, to settle at a one-week high of $2.9756 a gallon.

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

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