Clearer Resource Law to Boost NZ Oil Gas Exploration

WELLINGTON - New Zealand's government expects a new law governing resource extraction to attract more interest from foreign companies in upcoming oil-and-gas exploration permit auctions than previous auctions have garnered. 

The amended Crown Minerals Act will go into effect on May 24, the same day that bids will be accepted in the government's auction of exploration rights for 189,000 square kilometers of offshore hydrocarbon blocks and 1,500 square kilometers of onshore blocks. 

"We have been much clearer [in the new law] than I think we have been in the past about our expectations from operators in terms of their permits, the work programs they must put to us and in terms of health and safety and environment standards," Minister of Energy and Resources Simon Bridges told The Wall Street Journal. 

In New Zealand's most recent auction, in December, the government awarded 10 oil-and-gas exploration permits to local and overseas companies, with only one new entrant among successful bidders. 

The amended law extends the period of validity for exploration permits and limits the scope for revoking one. It also sets clearer expectations regarding penalties and royalties than the current law, which was enacted in 1991. 

The New Zealand government has made increasing hydrocarbon exports one of the main components of its economic agenda. 

The country exported an average of 33,000 barrels of crude oil a day in the 12 months ended March 31, 2013, valued around 1.77 billion New Zealand dollars (U$1.49 billion) , according to Statistics New Zealand, ranking the sector fourth behind dairy, meat and forestry in terms of export revenue. 

It is still a net crude-oil importer, however, though the government hopes that exports will exceed imports by 2030. 

A handful of international oil companies are actively exploring onshore and offshore New Zealand. While U.S.-based Anadarko Petroleum Corp. and London-listed Royal Dutch Shell PLC's local unit are among the companies pursuing exploration in blocks they were awarded in the last auction, Brazilian state-run Petroleo Brasilerio SA (PBR), or Petrobras, surrendered its exploration permit for the Raukumara basin off the eastern coast of New Zealand's North Island, saying a seismic survey didn't find enough reserves to justify continuing its exploration program. 

Mr. Bridges said the government is aiming for "an incremental and deepening activity by the existing international players we have," adding that he has seen "renewed interest" among companies that haven't done exploration in New Zealand yet. 

Three drilling rigs are due to arrive offshore New Zealand during the southern hemisphere's next summer, which starts in December, Mr. Bridges said. They will drill around 13 offshore wells involving an investment of just under NZ$1 billion (US $837.6 million). 

The government expects to announce the names of the successful bidders in the upcoming round of oil-and-gas auctions in December. 

The government is also in consultations with local councils to open areas of the central North Island to gold mining and parts of the South Island to platinum mining, the minister added. The mining blocks are likely to be offered later in the financial year that ends June 30, 2014, he said, without elaborating.

Copyright (c) 2013 Dow Jones & Company, Inc.

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Nigeria, South Africa Sign MOU to Boost Trade in Oil, Gas Sector

Nigeria and South Africa have signed a memorandum of understanding aimed at boosting the volume of oil and gas trade between the two countries, Diezani Alison-Madueke, Nigeria's oil minister, said Wednesday.

In a statement issued Wednesday by the Nigerian National Petroleum Corp., or NNPC, in Abuja, Ms. Alison-Madueke was quoted as saying on the sidelines of the Nigeria and South Africa Business Forum in Cape Town that the MOU would also "reinforce and strengthen the existing symbiotic relationship between the two largest economics in Africa."

Ms. Alison-Madueke is on the delegation of President Goodluck Jonathan who began a state visit to South Africa on Monday.

Nigeria, Africa's largest oil producer, has in the last six years unsuccessfully tried to pass in its National Assembly a bill meant to transform its inefficient and corruption-ridden oil and gas sector.

Oil thefts and pipeline vandalism are rising in the nation's oil-producing Niger Delta region while the uncertainty created in Nigeria's oil and gas sector due to the bill's failure to pass has compelled international oil companies to hold back further investments in the sector.

Ms. Alison-Madueke said the MOU on the oil and gas sector "is to basically help in the transfer of knowledge, skills, capabilities and technology."

She said when passed into law, oil bill would help to open the entire spectrum of the Nigerian oil industry to investors from all over the globe.

The bill is currently being debated in the National Assembly in Abuja where there is a sharp division among legislators from the southern and northern parts of the country on the provisions of bill and it is not clear when it will be passed into law.

Copyright (c) 2013 Dow Jones & Company, Inc.

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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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Myanmar to Boost Local Firms Involvement in Oil, Gas

Myanmar wants to boost the participation of local companies in oil and gas work in the country in the future, but right now they are not well developed enough to lead exploration and production activities, according to Myanmar's Deputy Minister for Energy.

Speaking to the Offshore Technology Conference in Houston Thursday, U Htin Aung said:

"I have stated before that … in the future we would like our Myanmar companies to work more actively in the oil and gas business. At this moment they do not have the experience or the knowledge…

"So we are bringing them in to work together with foreign companies that have the expertise, and knowledge and technical know-how and all of the financial capabilities, to learn from them and hopefully in the future our domestic companies will be more active in the oil and gas industry of our [country]."

One of the oldest oil producing states in the world, exporting its first barrel in 1853, Myanmar is opening up its oil industry to foreign oil companies after decades of isolation.

Several international oil companies will be the latest firms to get the chance to operate offshore Burma when the company launches only its second bidding round since the easing of US sanctions against the country in June. Myanmar will be inviting bids for 30 offshore oil and gas blocks in this bidding round.

Total, Petronas, CNOOC, CNPC, Essar and ONGC are already among several international oil companies exploring and developing 31 blocks in the country.

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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Myanmar to Boost Local Firms Involvement in Oil, Gas

Myanmar wants to boost the participation of local companies in oil and gas work in the country in the future, but right now they are not well developed enough to lead exploration and production activities, according to Myanmar's Deputy Minister for Energy.

Speaking to the Offshore Technology Conference in Houston Thursday, U Htin Aung said:

"I have stated before that … in the future we would like our Myanmar companies to work more actively in the oil and gas business. At this moment they do not have the experience or the knowledge…

"So we are bringing them in to work together with foreign companies that have the expertise, and knowledge and technical know-how and all of the financial capabilities, to learn from them and hopefully in the future our domestic companies will be more active in the oil and gas industry of our [country]."

One of the oldest oil producing states in the world, exporting its first barrel in 1853, Myanmar is opening up its oil industry to foreign oil companies after decades of isolation.

Several international oil companies will be the latest firms to get the chance to operate offshore Burma when the company launches only its second bidding round since the easing of US sanctions against the country in June. Myanmar will be inviting bids for 30 offshore oil and gas blocks in this bidding round.

Total, Petronas, CNOOC, CNPC, Essar and ONGC are already among several international oil companies exploring and developing 31 blocks in the country.

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.

View the original article here

Myanmar to Boost Local Firms Involvement in Oil, Gas

Myanmar wants to boost the participation of local companies in oil and gas work in the country in the future, but right now they are not well developed enough to lead exploration and production activities, according to Myanmar's Deputy Minister for Energy.

Speaking to the Offshore Technology Conference in Houston Thursday, U Htin Aung said:

"I have stated before that … in the future we would like our Myanmar companies to work more actively in the oil and gas business. At this moment they do not have the experience or the knowledge…

"So we are bringing them in to work together with foreign companies that have the expertise, and knowledge and technical know-how and all of the financial capabilities, to learn from them and hopefully in the future our domestic companies will be more active in the oil and gas industry of our [country]."

One of the oldest oil producing states in the world, exporting its first barrel in 1853, Myanmar is opening up its oil industry to foreign oil companies after decades of isolation.

Several international oil companies will be the latest firms to get the chance to operate offshore Burma when the company launches only its second bidding round since the easing of US sanctions against the country in June. Myanmar will be inviting bids for 30 offshore oil and gas blocks in this bidding round.

Total, Petronas, CNOOC, CNPC, Essar and ONGC are already among several international oil companies exploring and developing 31 blocks in the country.

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.

View the original article here

PwC: Foreign Buyers Boost US M&A Activity in 1Q

The acceleration of deals at the end of last year to get ahead of the fiscal cliff and the seasonality of low first quarter deal volume resulted in a decline of oil and gas merger and acquisition (M&A) activity in the first three months of 2013 compared with fourth quarter 2012, according to PwC US. While private equity (PE) activity moved to the sidelines, deal activity was propped up by foreign buyers, who focused on the upstream sector, and strategic investors who continued to look for opportunities in shale plays. These factors led to an increase in both deal volume and value compared to the same time period in 2012. 

For the three month period ending March 31, 2013, there were a total of 39 oil and gas deals with values greater than $50 million, accounting for $27.0 billion in deal value, an increase from the 34 deals worth $25.7 billion in the first quarter of 2012. However, on a sequential basis, deal volume in the first quarter of 2013 dropped 48 percent from the 75 deals in the fourth quarter of 2012, with total deal value in the first three months of the year declining 52 percent from $56.2 billion in the fourth quarter of 2012.

"With the acceleration of deal activity in the final three months of 2012 due to the looming fiscal cliff, in addition to the seasonal slowdown of deal making during the first quarter, we had anticipated this drop-off in M&A activity," said Rick Roberge, principal in PwC's energy deals practice. "Foreign buyers, though, are still looking for opportunities to expand in U.S. shale plays and are extremely active in upstream prospects – and they're willing to acquire those assets at a premium. At the same time, while private equity activity in the oil and gas industry recently hit an all-time high, the increase in asset valuations has caused them to move to the sidelines so far this year. However, we expect private equity involvement to pick up, in line with our outlook in The US Energy Revolution: The role of private equity in oil and gas."

Foreign buyers announced nine deals in the first quarter of 2013, which contributed $4.1 billion or 15 percent of total deal value, versus six deals valued at $5.9 billion during the same period last year. On a sequential basis, the number of total deals remained the same as total deal value increased 28.1 percent.

Private equity deal activity in the oil and gas industry dropped in the first quarter of 2013 with only two transactions with values greater than $50 million, which represented a total deal value of $576 million, compared to seven financial sponsor-backed deals worth $13.0 billion in the first quarter of 2012.

Additionally, there were 34 strategic deals that contributed $26.4 billion and made up 98 percent of total deal value in the first three months of 2013.

There were 35 total asset transactions, representing 90 percent of total deal volume, which contributed $17.2 billion – a 30 percent increase in deal volume from the 27 asset transactions during the first quarter in 2012, but a slight decline from the $18.2 billion in total deal value during the same period last year. There were four corporate transactions totaling $9.8 billion in the first three months of 2013, a small dip from the seven corporate deals during the first quarter of 2012, although deal value had increased from $7.4 billion.

For deals valued at over $50 million, upstream deals accounted for 23 transactions, representing $12.6 billion, or 47 percent of total first quarter deal value. The number of oil deals within the upstream sector totaled 11, compared to five upstream gas deals in the quarter. There were 11 midstream deals that contributed $10.0 billion, a 120 percent jump from the five midstream deals during the first quarter of 2012, which totaled $3.2 billion. Three downstream deals during the first quarter of 2013 added $3.9 billion, while oilfield services contributed two deals worth $465 million.

According to PwC, there were 18 deals with values greater than $50 million related to shale plays in the first quarter of 2013, totaling $16.3 billion, or 60 percent of total deal value. In the upstream sector, shale deals represented 11 transactions and accounted for $5.0 billion, or 40 percent of total upstream deal value in the first quarter of 2013.

Included in the shale-related deals in the first quarter of 2013 were three transactions involving the Marcellus Shale totaling $882 million and two Utica Shale deals that contributed $283 million. Compared to the first quarter of 2012, Marcellus Shale deal volume was flat, although total deal value decreased from $3.0 billion. Utica Shale deal activity increased from one transaction worth $112 million during the first three months of 2012.

"The main story in the first quarter of the year continues to be about shale. We're seeing interest in both the Marcellus and Utica, and we don't expect to see that enthusiasm dissipate anytime soon," said Steve Haffner, a Pittsburgh-based partner with PwC's energy practice. "While that interest hasn't translated to a dramatic increase in the volume and value of shale deals in the region, potential buyers are seeking the right opportunities to establish their footprint in the area – or to expand – and that includes both private equity and foreign buyers."

The most active shale plays for M&A with values greater than $50 million during the first quarter of 2013 include the Eagle Ford in Texas with five total transactions representing $5.1 billion, followed by the Marcellus Shale, the Utica Shale, and then the Bakken in North Dakota with one deal totaling $513 million.

"The first quarter saw a divergence in buyer-seller price expectations around gas assets, as natural gas prices bumped up from recent historical low levels," added Roberge. "These higher valuations for gas assets, combined with continued high valuations in the sweet spots of the liquid rich shale plays, were a major contributor to PE firms largely sitting out this quarter, but it's critically important for PE's and strategics alike to be ready  when  opportunity surfaces and prices are more favorable, as buyers will be lining up. Making sure they have the right strategies, integration plans, and controls in place will make for a better prepared buyer that maximizes the chances for success."

PwC notes that during the first quarter of 2013, master limited partnerships (MLP) were involved in eight transactions, representing more than 20 percent of total deal activity and continuing the trend of MLP involvement in deal transactions, as MLPs represented 20.6 percent of total deal activity in 2012.

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Chevron Raises Dividend, Matching ExxonMobil's Percentage Boost

Oil company Chevron Corp. raised its quarterly dividend by 11%, with the size of the percentage increase matching what larger peer Exxon Mobil Corp. announced earlier Wednesday.

Chevron will pay a quarterly dividend of $1 per share to holders of common stock as of May 17. The increase will cost Chevron roughly $194 million quarterly.

Chevron, which is due to release first-quarter results Friday, earlier this month disclosed its U.S. and international production declined in the first two months of the year compared with the previous quarter, in part reflecting maintenance activity.

Analysts surveyed by Thomson Reuters expect Chevron will report a 12% jump in first-quarter sales, though per-share earnings are expected to drop 4%.

Exxon's first-quarter results, meanwhile, are scheduled for Thursday.

Chevron's shares, which have risen 9.4% to $118.28 in 2013, were inactive in after-hours trading.

Copyright (c) 2013 Dow Jones & Company, Inc.

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Study: Fracking May Boost California's Economy, Adding 2.8M Jobs

Development of California's Monterey shale formation can play the major role in the state's future economic well-being, noted a recent study, "Powering California: The Monterey Shale and California's Economic Future", released by the University of Southern California (USC) and Los Angeles-based think tank Communications Institute.

California's Monterey shale is estimated to hold 15 billion barrels of oil and development of the 1,750-square mile formation in central California could generate half a million new jobs by 2015 and 2.5 million jobs by 2020.

"This report provides an indication that there is one potential bright spot in California's economic future: the increased production of energy," the report stated. "California has long served as the incubator for emerging energy sources and technologies, as the state has taken advantage of both technology and its natural resources to become a leader in the generation of renewable energy. Now, these same technological and resource advantages can allow the state to return to leadership in the production of oil."

The Monterey/Santos play, a prolific source rock for many of California's large oil fields, is considered by far the largest shale oil formation in the United States, roughly two-thirds of total oil shale potential. By those numbers, the Monterey reserves trump the Bakken and Eagle Ford fields.

This new onshore oil play can easily pump up the nation's oil output by 25 percent in just a few years and help the state's local energy picture. California has more recoverable reserves in shale than nearby big oil-producing countries, according to a July 2012 report issued by the U.S. Energy Information Administration (EIA).

To tap this prolific shale play, horizontal drilling and hydraulic fracturing would most likely be used, which has riled environmentalists to oppose this widely-used drilling technique. And much pressure has been placed on California's Governor Jerry Brown, a Democrat, but the opposite has occurred.

"We want to get the greenhouse gas emissions down, but we also want to keep our economy going," he said at a March 13 press conference, Reuters reported. "That's the balance that's required. The fossil fuel deposits in California are incredible, the potential is extraordinary. But between now and development lies a lot of questions that need to be answered."

The study forecasts that the state could greatly benefit, about $4.5 billion in oil-related tax revenue in 2015 and $24.6 billion by 2020. California boasts perhaps the largest deep-shale reserves in the world – reserves that, unlike elsewhere, hold the promise for an unprecedented volume of advanced crude oil production, the study noted. California's well-known offshore reserves contain more than 10 billion barrels of oil and nearly 12 trillion cubic feet of natural gas but the onshore play is projected to hold even more oil – more than 15 billion barrels, according to the EIA.

"Gov. Brown is trying to do what he feels is best for California and he realizes that much of the negative publicity was not based on an understanding of the facts," stated Don Clarke, a Los Angeles consulting geologist, in an interview with Rigzone. "We must protect the environment and any Monterey development can only be done with proper consideration to the environment and especially the groundwater."

Development of the oil-shale deposits may boost the state's economic activity by as much as 14.3 percent, the study said. And with that, increasing the state's per-capita gross domestic product (GDP).

"California, whose Monterey Formation alone is estimated to be four times larger than North Dakota's Bakken reserve, has chosen… to sharply limit its fossil-fuel industry. As a result, it has generated barely one-tenth the new fossil-fuel jobs in archrival Texas. Not surprisingly, California … lagged behind in GDP and income growth, while the energy states have for the most part enjoyed the strongest gains," author Joel Kotkin said Dec. 7 in the Daily Beast.

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

Study: Fracking May Boost California's Economy, Adding 2.8M Jobs

Development of California's Monterey shale formation can play the major role in the state's future economic well-being, noted a recent study, "Powering California: The Monterey Shale and California's Economic Future", released by the University of Southern California (USC) and Los Angeles-based think tank Communications Institute.

California's Monterey shale is estimated to hold 15 billion barrels of oil and development of the 1,750-square mile formation in central California could generate half a million new jobs by 2015 and 2.5 million jobs by 2020.

"This report provides an indication that there is one potential bright spot in California's economic future: the increased production of energy," the report stated. "California has long served as the incubator for emerging energy sources and technologies, as the state has taken advantage of both technology and its natural resources to become a leader in the generation of renewable energy. Now, these same technological and resource advantages can allow the state to return to leadership in the production of oil."

The Monterey/Santos play, a prolific source rock for many of California's large oil fields, is considered by far the largest shale oil formation in the United States, roughly two-thirds of total oil shale potential. By those numbers, the Monterey reserves trump the Bakken and Eagle Ford fields.

This new onshore oil play can easily pump up the nation's oil output by 25 percent in just a few years and help the state's local energy picture. California has more recoverable reserves in shale than nearby big oil-producing countries, according to a July 2012 report issued by the U.S. Energy Information Administration (EIA).

To tap this prolific shale play, horizontal drilling and hydraulic fracturing would most likely be used, which has riled environmentalists to oppose this widely-used drilling technique. And much pressure has been placed on California's Governor Jerry Brown, a Democrat, but the opposite has occurred.

"We want to get the greenhouse gas emissions down, but we also want to keep our economy going," he said at a March 13 press conference, Reuters reported. "That's the balance that's required. The fossil fuel deposits in California are incredible, the potential is extraordinary. But between now and development lies a lot of questions that need to be answered."

The study forecasts that the state could greatly benefit, about $4.5 billion in oil-related tax revenue in 2015 and $24.6 billion by 2020. California boasts perhaps the largest deep-shale reserves in the world – reserves that, unlike elsewhere, hold the promise for an unprecedented volume of advanced crude oil production, the study noted. California's well-known offshore reserves contain more than 10 billion barrels of oil and nearly 12 trillion cubic feet of natural gas but the onshore play is projected to hold even more oil – more than 15 billion barrels, according to the EIA.

"Gov. Brown is trying to do what he feels is best for California and he realizes that much of the negative publicity was not based on an understanding of the facts," stated Don Clarke, a Los Angeles consulting geologist, in an interview with Rigzone. "We must protect the environment and any Monterey development can only be done with proper consideration to the environment and especially the groundwater."

Development of the oil-shale deposits may boost the state's economic activity by as much as 14.3 percent, the study said. And with that, increasing the state's per-capita gross domestic product (GDP).

"California, whose Monterey Formation alone is estimated to be four times larger than North Dakota's Bakken reserve, has chosen… to sharply limit its fossil-fuel industry. As a result, it has generated barely one-tenth the new fossil-fuel jobs in archrival Texas. Not surprisingly, California … lagged behind in GDP and income growth, while the energy states have for the most part enjoyed the strongest gains," author Joel Kotkin said Dec. 7 in the Daily Beast.

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

Study: Fracking May Boost California's Economy, Adding 2.8M Jobs

Development of California's Monterey shale formation can play the major role in the state's future economic well-being, noted a recent study, "Powering California: The Monterey Shale and California's Economic Future", released by the University of Southern California (USC) and Los Angeles-based think tank Communications Institute.

California's Monterey shale is estimated to hold 15 billion barrels of oil and development of the 1,750-square mile formation in central California could generate half a million new jobs by 2015 and 2.5 million jobs by 2020.

"This report provides an indication that there is one potential bright spot in California's economic future: the increased production of energy," the report stated. "California has long served as the incubator for emerging energy sources and technologies, as the state has taken advantage of both technology and its natural resources to become a leader in the generation of renewable energy. Now, these same technological and resource advantages can allow the state to return to leadership in the production of oil."

The Monterey/Santos play, a prolific source rock for many of California's large oil fields, is considered by far the largest shale oil formation in the United States, roughly two-thirds of total oil shale potential. By those numbers, the Monterey reserves trump the Bakken and Eagle Ford fields.

This new onshore oil play can easily pump up the nation's oil output by 25 percent in just a few years and help the state's local energy picture. California has more recoverable reserves in shale than nearby big oil-producing countries, according to a July 2012 report issued by the U.S. Energy Information Administration (EIA).

To tap this prolific shale play, horizontal drilling and hydraulic fracturing would most likely be used, which has riled environmentalists to oppose this widely-used drilling technique. And much pressure has been placed on California's Governor Jerry Brown, a Democrat, but the opposite has occurred.

"We want to get the greenhouse gas emissions down, but we also want to keep our economy going," he said at a March 13 press conference, Reuters reported. "That's the balance that's required. The fossil fuel deposits in California are incredible, the potential is extraordinary. But between now and development lies a lot of questions that need to be answered."

The study forecasts that the state could greatly benefit, about $4.5 billion in oil-related tax revenue in 2015 and $24.6 billion by 2020. California boasts perhaps the largest deep-shale reserves in the world – reserves that, unlike elsewhere, hold the promise for an unprecedented volume of advanced crude oil production, the study noted. California's well-known offshore reserves contain more than 10 billion barrels of oil and nearly 12 trillion cubic feet of natural gas but the onshore play is projected to hold even more oil – more than 15 billion barrels, according to the EIA.

"Gov. Brown is trying to do what he feels is best for California and he realizes that much of the negative publicity was not based on an understanding of the facts," stated Don Clarke, a Los Angeles consulting geologist, in an interview with Rigzone. "We must protect the environment and any Monterey development can only be done with proper consideration to the environment and especially the groundwater."

Development of the oil-shale deposits may boost the state's economic activity by as much as 14.3 percent, the study said. And with that, increasing the state's per-capita gross domestic product (GDP).

"California, whose Monterey Formation alone is estimated to be four times larger than North Dakota's Bakken reserve, has chosen… to sharply limit its fossil-fuel industry. As a result, it has generated barely one-tenth the new fossil-fuel jobs in archrival Texas. Not surprisingly, California … lagged behind in GDP and income growth, while the energy states have for the most part enjoyed the strongest gains," author Joel Kotkin said Dec. 7 in the Daily Beast.

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.

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ExxonMobil to Boost Output at Iraq West Qurna-1 by Mid 2013

U.S. energy giant Exxon Mobil Corp. and its partners are planning to increase crude oil production from West Qurna-1 oil field in southern Iraq to 530,000 barrels a day by July, from 495,000 barrels a day now, a senior Iraqi oil official said Monday.

Mahdi Abdul Razzaq al-Maliki, head of the field's joint management committee, said the consortium, which also includes Royal Dutch Shell PLC and Iraq, is planning to raise output from West Qurna-1 to 600,000 barrels a day by the end of 2013.

"According to this year's plan which has been approved by the oil ministry, the consortium will invest some $1.65 billion compared with $1 billion invested last year," Mr. al-Maliki told Dow Jones Newswires.

Iraq, a member of the Organization of the Petroleum Exporting Countries, is targeting a total output of 4.5 million barrels a day next year from 3.3 million barrels a day now, the Iraqi prime minister's top energy advisor, Thamir Ghadhban, said.

New oil fields, being developed by some of the world's largest oil companies will come on stream this year such as Majnoon, which is being developed by Shell, West Qurna-2 being developed by OAO Lukoil Holdings and Garraf oil field, which is being upgraded by a consortium led by Malaysia's Petronas and Japan Petroleum Exploration Co., or Japex.

Exxon is in a row with the Iraqi government over deals it signed with the semi-autonomous region of Kurdistan in northern Iraq. The Baghdad government says that Exxon should choose between its southern oil field and its deal in the north. Baghdad and Kurdistan are at logger heads over who should control oil resources in the Kurdish region.

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

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OMV to Boost Exploration, Appraisal Spend in 2013

Austria's OMV said Thursday that it will see a significant increase in its exploration and appraisal expenditure during 2013 compared to 2012.

Reporting its fourth quarter results for 2012, the firm said its plans include high-impact wells this year at Bonna, Wisting and Apollo in the Barents Sea, as well as at Matuku, offshore New Zealand.

OMV said it was expecting a final investment decision in 2013 for the North Sea's Rosebank project, offshore the Shetland Islands, in which it has a 20-percent stake. Meanwhile, in Romania it expects further exploration to take place on the Neptun block after an ongoing 3D seismic survey there is completed.

In Libya, the firm expects production to remain at current levels after volumes recovered in 2012. Production in Libya was badly disrupted in 2011 by the revolution in the country.

OMV warned that the security situation remains volatile in Yemen, where it has recovered production following the repair of an export pipeline.

In the Kurdistan region of Iraq, OMV said that extended well test facilities for its Bina Bawi development are under construction and production testing for sale into the local market is expected to start during the first half of this year.

For 2013 OMV expects production will be broadly similar to that achieved in 2012. Total hydrocarbon production for the fourth quarter of 2012 came in at 301,000 barrels of oil equivalent per day (4Q 2011: 289,000 boepd).

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BG, Statoil, ExxonMobil Further Boost East African Gas Resources

LONDON - BG Group PLC Monday said it had completed an appraisal program that further confirmed the natural gas resource and production potential offshore Tanzania, underscoring East Africa's importance as one of the energy industry's hottest new regions.

Separately, Statoil ASA and partner ExxonMobil Corp. announced Monday their third discovery in Block 2 offshore Tanzania.

The mounting volume of gas discoveries off the coast of East Africa has stimulated a wave of interest in the region, culminating in China National Petroleum Corp.'s $4.21 billion acquisition last week of 20% of Eni SpA's giant Mozambique offshore natural gas field.

Anadarko Petroleum Corp. has also attracted interest from several companies including Exxon Mobil, Royal Dutch Shell PLC, India's state-run Oil & Natural Gas Corp. and Oil India Ltd. with the offer of a share of its natural gas discoveries offshore Mozambique, people familiar with the matter told Dow Jones Newswires last week.

BG Group said testing on its Jodari-1 field offshore Tanzania showed better-than-expected reservoir properties, demonstrating that wells could produce at higher rates. BG Group holds a 60% interest in the discoveries offshore Tanzania, with Ophir Energy holding 40%.

"The test results confirm the Jodari reservoir's world-class quality; and the potential for the field to underpin the LNG development," said Nick Cooper, chief executive of U.K.-listed Ophir Energy PLC. Mr. Cooper was referring to a liquefied natural gas terminal that could be part of gas development in Tanzania.

BG Group is in the process of selecting a site for an onshore LNG terminal. The capacity of the terminal will be determined by further exploration and appraisal results across the company's three offshore blocks. BG estimates the total resource in Tanzania at nearly 10 trillion cubic feet.

Statoil said its latest Tanzania find brings recoverable gas volumes now discovered in the country to between 10 trillion and 13 trillion cubic feet. "[This] brings further robustness to a future decision on a potential LNG project", said Statoil's executive vice president for Exploration, Tim Dodson.

Statoil has a 65% stake in the discoveries, with Exxon Mobil holding the remaining 35%.

Eni and Anadarko have also said they are studying plans to build a LNG plant in Mozambique. Analysts say the region is well-placed to serve growing energy demand in Asian markets.

Kjetil Malkenes Hovland in Oslo contributed to this story.

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

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Argentina's YPF to Boost Capex 60% in 2013

BUENOS AIRES - Argentina's largest oil and gas producer, state-run YPF SA, expects to boost investment in its operations by 60% this year as it seeks to lift production, YPF Chief Executive Miguel Galuccio said Monday.

Argentine President Cristina Kirchner nationalized YPF last year and tapped Mr. Galuccio to reverse years of declining output. YPF invested 16.48 billion pesos ($3.25 billion) in 2012, an increase of nearly 26% from the preceding.

YPF sold about ARS9.4 billion in debt on the local capital market last year to fund a portion of that investment.

"We are going to need volumes of financing much greater than in 2012," Mr. Galuccio said at a press conference.

The executive said YPF would tap global capital markets if the opportunity arises. He also hinted that equity could play a bigger role in YPF's investment program this year.

YPF said Monday its net profit fell 12% in 2012 to ARS3.90 billion due to losses at subsidiaries and accounting factors. Operating cash flow soared 36% to ARS17.3 billion.

Oil output rose 2.2%, compared to a 7.6% drop the previous year. The decline in natural gas output slowed to 2.3%.

YPF's shares traded in New York rose 0.8% to close at $14.77 Monday, giving the company a market capitalization of about $5.8 billion. Its ADR hit a 52-week low of $9.21 last November.

Last year, Mrs. Kirchner formally expropriated a 51% stake in YPF from Spain's Repsol SA in a dispute over investment. Mrs. Kirchner blamed the Spanish company for Argentina's falling oil and gas output, saying that Repsol bled YPF dry through an overly generous dividend policy that left the company without enough money to invest in exploration and production.

Repsol has denied those accusations and is seeking about $10 billion in compensation for its YPF shares.

Analysts say that Argentina could become an energy exporter again and provide consumers and industry with cheap natural gas if it is able to replicate the shale boom the U.S. has enjoyed in recent years. The South American nation is thought to be home to the world's third-largest shale gas reserves after the U.S. and China, with some 774 trillion cubic feet of recoverable gas, according to U.S. Energy Information Administration estimates. Argentina is also thought to have significant quantities of shale oil.

But getting those hydrocarbons out of the ground and to consumers will require billions of dollars that neither YPF nor Mrs. Kirchner's government have on their own.

Mr. Galuccio has been courting international partners to boost output and help Argentina reduce its dependence on imported energy, especially natural gas.

Last year, Mr. Galuccio held talks with Norway's Statoil ASA, Russia's government-controlled gas company, Gazprom, and Chevron Corp., among others.

In December, YPF inked a deal with a company linked to Argentina's Bulgheroni family to invest $1.5 billion together over the next two years to develop shale-gas and oil resources.

YPF also announced an agreement that same month with Chevron that could see the California-based company and YPF spend about $1 billion to drill 100 wells for unconventional energy in Argentina's resource-rich Neuquen Province.

However, a court-ordered embargo on the assets of Chevron's local subsidiary, stemming from a decades-old case involving environmental damage claims in Ecuador, has raised questions about Chevron's ability to invest in Argentina. Chevron has said it will use all legal means available to fight the embargo.

"Today, I can say the commitment exists and if we have to find an economic model different than what was originally planned, the commitment is there," Mr. Galuccio said, referring to the Chevron deal.

Taos Turner and Shane Romig contributed to this story.

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

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Norway Oil Fund Expects To Boost China Stock Holdings

OSLO - Norway's $712 billion oil fund expects to significantly increase its Chinese equity holdings this year, Chief Executive Yngve Slyngstad said on Friday, while confirming the fund has applied to increase its $1 billion quota of Chinese A-shares.

"We have a quota of Chinese shares listed in Shanghai or Shenzhen of $1 billion, which has so far been their upper limit," said Mr. Slyngstad in an interview with Dow Jones Newswires. "Now they [the Chinese authorities] have changed this, and removed the upper limit for state-owned funds such as ours."

The oil fund, officially titled the Government Pension Fund Global, is the world's largest sovereign wealth fund and is derived from Norway's oil profits. In 2012, the fund became the first international investor in China to be awarded the maximum quota of $1 billion A-shares.

According to Mr. Slyngstad, Chinese authorities last year increased the total equity investment quota for all foreign investors to $80 billion from $30 billion. He added that as far as he was aware, China hasn't started awarding individual new quotas yet.

"We expect that when they start assigning quotas, we will get a significant share of those, and in that respect we can expect our investments in Chinese equities to be significantly higher at the end of 2013," Mr. Slyngstad said, adding that "we have already applied."

He wouldn't elaborate on how much extra the fund would invest in China. The fund's Chinese equity investment stands at 1.6% of its total NOK2.335 trillion ($410 billion) equity portfolio, representing its biggest holding in an emerging market. At the end of 2012, the fund owned shares in 303 companies in China.

The oil fund said Friday that its equity investments in China, the world's second-largest economy, returned 13% in 2012.

In a major strategic change last year, Norway decided to shift a larger share of the oil fund's assets into emerging markets to reduce long-term risk by tapping into the world's fastest-growing regions. The change of direction was requested by the country's central bank, which manages the oil fund on behalf of the government.

"Norges Bank has clearly expressed an ambition to spread investments and become stronger in emerging markets," Norway's central bank Governor Oystein Olsen told Dow Jones Newswires Friday.

"China is an economic giant globally, which suggests a substantially bigger weight in the portfolio in the future," he added.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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