Pro-Transparency Group Suspends DRC

A Norway-based non-profit organization that advocates greater transparency of payments from oil, gas and mineral resource production has temporarily suspended the Democratic Republic of the Congo (DRC) for failing to comply with its global financial reporting benchmark.

“The DRC still receives shockingly little for its mineral resources," Clare Short, former Labour Party member of the U.K. Parliament and chair of the Extractive Industries Transparency Initiative (EITI) board, said in a written statement. Short and other EITI board members voted to suspend DRC April 18.

"It is not surprising that there are great challenges for the DRC to produce reliable and comprehensive EITI reports, but it is making progress and generating important debate," continued Short. "As the data becomes more reliable and more comprehensive and the debate more widespread, the EITI will help identify areas for improvement in the government and company systems and create momentum for reform. Alongside government efforts on contract and license transparency and other reforms, the EITI in the DRC could be a powerful tool for a better governed sector.”

Supported by various companies, governments and civil society groups, EITI applies what it calls a "global standard" for reporting natural resources revenues. In order to meet this standard, companies disclose payments to governments and governments disclose the receipt of these payments. A published EITI report independently verifies and reconciles these tax and royalty payments. The organization's board voted to suspend DRC after reviewing the West African country's latest validation report. In order for DRC to achieve compliance with EITI's transparency criteria, the government and natural resources companies in the country must implement a series of corrective actions within the next 12 months.

The actions necessary to lift the suspension focus on better EITI reporting, Anders Tunold Kråkenes, EITI Secretariat spokesman, told Rigzone. Kråkenes applauded government tax agencies in DRC and companies operating there for making "significant progress" in advancing transparency.

In fact, the board recognized that the DRC government and other stakeholders have demonstrated their commitment to EITI's Principles and Criteria. Nevertheless, the vote signifies the board's recognition that the release of relevant data to date fails to meet EITI's reporting norms. If the suspension remains in effect beyond April 17, 2014, the EITI will consider delisting DRC. In that event, DRC would lose its status as an EITI candidate country and would no longer hold the designation of an EITI implementing country.

"[M]ore must be done to ensure that both companies and the state tax agencies fully participate in the disclosure of mutually agreed fiscal data, and to prove that the figures they publish are both complete and reliable," Kråkenes explained. "While the government is responsible for implementing the EITI, the onus is on both sides to make the EITI work. The next occasion to contribute will be the upcoming 2011 EITI report."

"The EITI is a standard for reliably measuring the level of transparency and accountability of a country’s fiscal management," Kråkenes said. "The board is sending the message that DRC has to improve the quality of EITI reporting to fully meet the requirements of the standard. The board also welcomes that the EITI is a key part of the DRC government’s current efforts to reform the oil, gas and mining sectors. EITI stakeholders have made meaningful progress in a challenging and complex environment."

DRC became an EITI candidate country in 2008 and has since completed the organization's validation process twice. Three EITI reports disclose revenue figures from DRC's extractives sector.

Kråkenes acknowledged the temporary suspension will have no near-term practical effect on oil and gas companies operating in DRC.

"Nothing will change," he said. "DRC remains an EITI implementing country and is already preparing for its next EITI report covering the fiscal year 2011. Oil, gas and mining companies and governments will soon again be asked to publish what they pay and receive in taxes, fees and royalties. In fact, only with an improved next EITI report can DRC aspire to finally become EITI-compliant, so cooperation by all reporting parties is more essential than ever."

Kråkenes added, however, that operating in a country that has earned EITI's imprimatur is a clear benefit for resources companies.

"Without an EITI process, oil and gas companies would miss out on an important tool that gives them more certainty about their fiscal obligations and the stability of their investments," Kråkenes said. "Oil and gas companies have formed an interest group to actively participate in deciding the direction of the EITI process in DRC. They contribute financially to the implementation in the DRC."

In addition to DRC, other countries under suspension by EITI include Central African Republic, Madagascar, Mauritania, Sierra Leone and Yemen.

(EDITOR'S NOTE: To learn more about the state of transparency in the oil and gas industry, check out this August 2012 article in Rigzone.)

Matthew V. Veazey has written about the upstream and downstream O&G sectors for more than a decade. Email Matthew at mveazey@downstreamtoday.com. Twitter: @Matthew_Veazey

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STATS Group in BP Pipeline Isolation Operation

Scottish oilfield services firm STATS Group reported Monday on a pipeline isolation operation it has completed for BP in the North Sea.

The firm said it has isolated a 24-inch oil export line on BP's Marnock ETAP spur line in the central North Sea in order to allow the replacement of a 16-inch valve.

STATS said that it deployed its 24-inch Remote Tecno Plug to isolate a pressure of 60 Bar, providing safe working conditions to allow valve replacement activities.

Steven Byers, STATS Group's isolation services managers, commented in a statement:

"The project was a success and enabled BP to complete maintenance works which were reliant on the plug providing an isolation. The client was happy with our flexible approach and willingness to interact to achieve the best outcome possible during a time critical window."

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STATS Group in BP Pipeline Isolation Operation

Scottish oilfield services firm STATS Group reported Monday on a pipeline isolation operation it has completed for BP in the North Sea.

The firm said it has isolated a 24-inch oil export line on BP's Marnock ETAP spur line in the central North Sea in order to allow the replacement of a 16-inch valve.

STATS said that it deployed its 24-inch Remote Tecno Plug to isolate a pressure of 60 Bar, providing safe working conditions to allow valve replacement activities.

Steven Byers, STATS Group's isolation services managers, commented in a statement:

"The project was a success and enabled BP to complete maintenance works which were reliant on the plug providing an isolation. The client was happy with our flexible approach and willingness to interact to achieve the best outcome possible during a time critical window."

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MWCC, Wood Group Form Offshore Response Team

Marine Well Containment Company (MWCC) and Wood Group PSN on Tuesday announced the formation of an offshore reserve response team. Made up of 100 select reserve operations personnel, the team will be activated should MWCC’s modular capture vessels (MCVs) be called upon to respond to a well control incident in the deepwater U.S. Gulf of Mexico.

The team would be deployed to a deepwater well control incident to operate the processing equipment on the MCVs should MWCC’s expanded containment system (ECS) be required to cap and flow a well. In this situation, the system redirects the flow of fluids from the deepwater well to the MCVs through flexible pipes and risers. Using modular, adaptable process equipment installed on the capture vessel, the system is designed to separate liquids from gas, flare the gas and safely store the liquids until transferred to a shuttle tanker and taken to shore.

The selection and training of the reserve response team is an important step in the progress of the ECS. Primarily based in southern Louisiana, the reserve response team members will be hand-selected by Wood Group PSN and trained to operate and maintain equipment onboard the MCVs during a response. The team will meet regularly for ongoing training and remain ready to respond to a deepwater well control incident in the U.S. Gulf of Mexico.

"We look forward to working with Wood Group PSN to identify a team of exceptional operations personnel to operate the processing equipment on the MCVs during a response,” said Marty Massey, chief executive officer of Marine Well Containment Company. “We are pleased to be able to tap into the skilled and industry-experienced workforce of Louisiana and other Gulf States to achieve our mission to be continuously ready to respond with the expanded containment system."

Derek Blackwood, Wood Group PSN Americas president, added, "This latest initiative underlines the ongoing advancements in safer deepwater exploration and we are proud to be working with MWCC to develop a team of experienced oilfield operations personnel capable of responding to a potential deepwater well control incident in the U.S. Gulf of Mexico. Wood Group PSN employs approximately 6,000 people in the U.S. and has access to a network of more than 3,000 experienced operations personnel in the Gulf of Mexico. We will be responsible for identifying and selecting the response team, delivering ongoing training, and mobilizing the team as and when required."

The ECS, which will be made available by MWCC this year, is designed to be able to cap and flow wells in up to 10,000 feet of water. It will also be able to contain up to 100,000 barrels of liquid per day.

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MWCC, Wood Group Form Offshore Response Team

Marine Well Containment Company (MWCC) and Wood Group PSN on Tuesday announced the formation of an offshore reserve response team. Made up of 100 select reserve operations personnel, the team will be activated should MWCC’s modular capture vessels (MCVs) be called upon to respond to a well control incident in the deepwater U.S. Gulf of Mexico.

The team would be deployed to a deepwater well control incident to operate the processing equipment on the MCVs should MWCC’s expanded containment system (ECS) be required to cap and flow a well. In this situation, the system redirects the flow of fluids from the deepwater well to the MCVs through flexible pipes and risers. Using modular, adaptable process equipment installed on the capture vessel, the system is designed to separate liquids from gas, flare the gas and safely store the liquids until transferred to a shuttle tanker and taken to shore.

The selection and training of the reserve response team is an important step in the progress of the ECS. Primarily based in southern Louisiana, the reserve response team members will be hand-selected by Wood Group PSN and trained to operate and maintain equipment onboard the MCVs during a response. The team will meet regularly for ongoing training and remain ready to respond to a deepwater well control incident in the U.S. Gulf of Mexico.

"We look forward to working with Wood Group PSN to identify a team of exceptional operations personnel to operate the processing equipment on the MCVs during a response,” said Marty Massey, chief executive officer of Marine Well Containment Company. “We are pleased to be able to tap into the skilled and industry-experienced workforce of Louisiana and other Gulf States to achieve our mission to be continuously ready to respond with the expanded containment system."

Derek Blackwood, Wood Group PSN Americas president, added, "This latest initiative underlines the ongoing advancements in safer deepwater exploration and we are proud to be working with MWCC to develop a team of experienced oilfield operations personnel capable of responding to a potential deepwater well control incident in the U.S. Gulf of Mexico. Wood Group PSN employs approximately 6,000 people in the U.S. and has access to a network of more than 3,000 experienced operations personnel in the Gulf of Mexico. We will be responsible for identifying and selecting the response team, delivering ongoing training, and mobilizing the team as and when required."

The ECS, which will be made available by MWCC this year, is designed to be able to cap and flow wells in up to 10,000 feet of water. It will also be able to contain up to 100,000 barrels of liquid per day.

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Former park rangers launch group to protect America’s national parks from irresponsible oil & gas drilling

Former park rangers have launched a new group, Park Rangers for Our Lands, to provide solutions to irresponsible plans to drill near America’s national parks.

The former park rangers are advocating for a balance between energy development and conservation, just at a time when Colorado Bureau of Land Management (BLM) Director Helen Hankins has tried to push forward widely-criticized plans to drill next to Dinosaur National Monument and near Mesa Verde National Park. These are two areas of primary concern for the group.

According to Richard Ellis, who spearheaded the formation of Park Rangers for Our Lands:

“Our parks are under siege. Oil and gas drilling is encroaching our public lands from all sides…We need the BLM to work with its neighbors at the National Park Service and come up with common sense ways to protect the parks, the air quality in the region, and keep the West a beautiful place to visit.”

Director Hankins has come under fire, numerous times, for her oil and gas leasing plans next to Dinosaur Monument’s visitor center, near Mesa Verde National Park, perilously close to Denver’s drinking water supplies, and in the agricultural heart of North Fork Valley.

Unfortunately, this hasn’t stopped Dir. Hankins from continuing to push to open these areas for oil and gas drilling (see graphic) – despite the risks to our water, public health, farms and economies. It’s time for Director Hankins to adopt a common sense approach to oil and gas leasing that includes up to date analysis, implementing national BLM reforms – to cut down on Colorado’s highest in the region lease protests- and taking into effect the concerns of local businesses, landowners and the National Parks Service.

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ALEC’s Most Wanted: Exposing a front group for fossil fuel interests (and other corporations)

The Center for Media and Democracy’s (CMD) Brendan Fischer and Nick Surgey uncovered an internal document from the American Legislative Exchange Council (ALEC) at the controversial organization’s meeting last week in Oklahoma City. The document entitled “OKC anti-ALEC photos” featured the headshots of eight reporters and public interest advocates that have written about ALEC or been critical of ALEC’s activities (as a front group working on behalf of its corporate membership).

CMD’s Surgey attempted to attend the keynote address by Oklahoma Governor Mary Fallin, which was billed as open to the press. After registering for press credentials at the ALEC registration desk, Mr. Surgey ascended the escalator towards the keynote speech, but was confronted by ALEC staff members and then approached by a uniformed Oklahoma City police officer.

Mr. Fischer and Surgey recount the exchange in which Surgey had his credentials revoked and was ejected from the ALEC meeting.  From PR Watch:

“I need those credentials,” the officer said.

“I registered,” Surgey replied.

“No, you didn’t,” said a female ALEC staffer, who was accompanying the officer.

“I did, downstairs,” he said.

“It was… you shouldn’t have been able to.”

The reason Surgey shouldn’t have been allowed to register, according to the ALEC staffer: “Because we know who you are.

Surgey asked the ALEC staffer for her name as she asserted that he had to leave:

Can I ask your name?” Surgey asked the ALEC staffer who challenged his press credentials.

“Erm, why?” she replied.

“Is there any reason you wouldn’t want to tell me your name?”

“Yeah, because I know who you are,” she said.

The staffer — whose organization had developed talking points claiming to support the First Amendment, which protects a free and vibrant press — added: “Because you’re going to write an article about it.”

Less than 10 minutes after registering as press, Surgey had his credentials revoked and was ejected from the ALEC meeting by a police officer. As he was escorted away, the ALEC staffer repeated: “We know exactly who you are.”

As Director of the Checks & Balances Project, I was one of the eight people featured on the “ALEC Most Wanted” document alongside other reporters and public interest advocates who have criticized ALEC’s efforts to influence state legislators on behalf of special interests.  Fischer and Surgey write:

The page featured pictures and names of eight people, four of whom work with CMD, including Surgey, CMD’s general counsel Brendan Fischer and its Executive Director Lisa Graves, as well as CMD contributor Beau Hodai.

It is not known whether the photo array of people who have reported on or criticized ALEC was distributed to ALEC members or shared with Oklahoma City law enforcement.

Other targets on the document included The Nation‘s Lee Fang, who has written articles critical of ALEC, and Sabrina Stevens, an education activist who spoke out in an ALEC task force meeting last November. Also featured were Calvin Sloan of People for the American Way and Gabe Elsner of Checks and Balances Project, both of whom are ALEC detractors.

The name of ALEC Events Director Sarah McManamon was in the top corner, indicating the document was printed from her Google account.

As Fischer and Surgey point out, ALEC claims to support the freedom of the press. But in practice, the organization seems reluctant to provide transparency and access required for a free press to be functional.   Instead, “ALEC assembled a dossier of disfavored reporters and activists,” and “kicked reporters out of its conference who might write unfavorable stories…”

ALEC’s sensitivity to transparency shows that the accountability work by C&BP, CMD, People for the American Way and others is working. A free society can’t work unless there is some check on the concentration of power. Now, more than ever, society needs more of the most powerful check on concentrations of power – public scrutiny. Most recently, C&BP has worked to expose ALEC’s efforts to eliminate clean energy laws in states across the country and bring to light that these attacks are being driven by powerful special interests.

ALEC exemplifies how fossil fuel corporations and other special interests have an oversized influence in our public process. And, C&BP is proud to be part of the effort to expose ALEC, fossil fuel-funded front groups and other fossil fuel interests using their power and resources to attack clean energy policies — even if it lands us on ALEC’s Most Wanted list.

Filed under ALEC Tagged with 1st Amendment, ALEC, ALEC Most Wanted, American Electric Power, American Legislative Exchange Council, Beau Hodai, Big Gas, Big Oil, BP, Brendan Fischer, Calvin Sloan, Center for Media and Democracy, Checks and Balances Project, Chevron, CMD, Duke Energy, Energy, ExxonMobil, Fracking, Freedom of the Press, Front Group, gas, Industry, Koch Brothers, Koch Industries, Lee Fang, Lisa Graves, Most Wanted, natural gas, Nick Surgey, Oklahoma City, People for the American Way, politics, Progress Energy, Sabrina Stevens, Sarah McManamon, Shell, State Legislators, State Legislatures, The Nation

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Wood Group Wins First Offshore Colombia Contract

Wood Group PSN announced it is delivering operations and maintenance services to Chevron's offshore production facilities under a new $17.5 million contract.

Wood Group PSN will provide services to Chevron's two offshore platforms (Chuchupa A and B), in the Chuchupa natural gas fields, Caribbean Sea, and two onshore natural gas fields (Riohacha and Ballenas) in the province of La Guajira, northern Colombia.

The award marks WGPSN's first offshore services contract in Colombia and will involve over 100 new jobs. The contract term is three years with an additional three year option to extend.

"Chevron is a valued customer and this award marks the expansion of our offshore business in Colombia. We are currently recruiting to bring new employees into our business to service this contract and are committed to developing a skilled and talented local workforce," Derek Blackwood, WGPSN Americas president, said.

The contract was won through a competitive tender process.

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Greene's Energy Group Opens New Texas Facilities

Greene's Energy Group, a leading provider of integrated testing, rentals and specialty services, has opened two new facilities in Alice and Pleasanton, Texas, announced Chief Executive Officer (CEO) Bob Vilyus.

These facilities serve Central and South Texas with emphasis on the Eagle Ford Shale. As state-of-the-art facilities, each are outfitted with warehouse and office amenities designed to accommodate the needs of the industry in the region.

The Alice facility is the headquarters for the Greene's Well Testing Services. The facility is comprised of a three-bay warehouse on three acres of land with a wash rack, large conference room, break room and five offices.

The facility in Pleasanton has a five-bay warehouse on ten acres that is equipped with a wash rack, break room, large conference room and five offices and is the base for Greene's Well Testing and Torque and Testing Services.

"Because both facilities are centrally located in South Texas and can easily access the Eagle Ford Shale region, we see a strong growth potential for both facilities," said Vilyus. "As we look to expand to other geographical regions, these facilities will serve as blueprints for future expansions."

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Greene's Energy Group Opens New Texas Facilities

Greene's Energy Group, a leading provider of integrated testing, rentals and specialty services, has opened two new facilities in Alice and Pleasanton, Texas, announced Chief Executive Officer (CEO) Bob Vilyus.

These facilities serve Central and South Texas with emphasis on the Eagle Ford Shale. As state-of-the-art facilities, each are outfitted with warehouse and office amenities designed to accommodate the needs of the industry in the region.

The Alice facility is the headquarters for the Greene's Well Testing Services. The facility is comprised of a three-bay warehouse on three acres of land with a wash rack, large conference room, break room and five offices.

The facility in Pleasanton has a five-bay warehouse on ten acres that is equipped with a wash rack, break room, large conference room and five offices and is the base for Greene's Well Testing and Torque and Testing Services.

"Because both facilities are centrally located in South Texas and can easily access the Eagle Ford Shale region, we see a strong growth potential for both facilities," said Vilyus. "As we look to expand to other geographical regions, these facilities will serve as blueprints for future expansions."

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Hydro Group Opens Singapore Office

Scottish underwater components firm Hydro Group announced Tuesday it has opened a new Singapore office.

The Aberdeen-based company said that it had made the move since Singapore represents its second-largest export market, with the firm identifying more than $1.5 million of potential sales in the region annually.

The new office is aimed at supporting Hydro Group's increasing presence in South East Asia, where it plans to build on its sales of subsea optical cables, electrical cables and connectors to the wider energy market as well as the defense sector.

Hydro Managing Director Doug Whyte commented in a statement:

"The group has had representation in Singapore for some time, but with an increasing number of our key clients based throughout South East Asia, significant growth in demand for local support from our customers and the expansion of exploration activities in the region, it is vital to our international growth plans to open our first office in the area."

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Hydro Group Opens Singapore Office

Scottish underwater components firm Hydro Group announced Tuesday it has opened a new Singapore office.

The Aberdeen-based company said that it had made the move since Singapore represents its second-largest export market, with the firm identifying more than $1.5 million of potential sales in the region annually.

The new office is aimed at supporting Hydro Group's increasing presence in South East Asia, where it plans to build on its sales of subsea optical cables, electrical cables and connectors to the wider energy market as well as the defense sector.

Hydro Managing Director Doug Whyte commented in a statement:

"The group has had representation in Singapore for some time, but with an increasing number of our key clients based throughout South East Asia, significant growth in demand for local support from our customers and the expansion of exploration activities in the region, it is vital to our international growth plans to open our first office in the area."

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BG Group Appoints New Director

UK gas major BG Group has appointed a new non-executive director to help the firm with its activities in China, it announced Monday.

Lim Haw-Kuang will fill the vacancy left by Philippe Varin, who stood down from BG's board in February after seven years as a non-executive director.

BG Chairman Andrew Gould commented in a statement:

"I am delighted to welcome Haw-Kuang to the BG Group board. He has extensive experience across the international oil and gas industry, including long service as a senior executive in China, the world's fastest growing energy market.

"This gives him a background highly relevant to BG Group as the company becomes China's largest supplier of liquefied natural gas through long-term agreements with CNOOC."

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BG Group Appoints New Director

UK gas major BG Group has appointed a new non-executive director to help the firm with its activities in China, it announced Monday.

Lim Haw-Kuang will fill the vacancy left by Philippe Varin, who stood down from BG's board in February after seven years as a non-executive director.

BG Chairman Andrew Gould commented in a statement:

"I am delighted to welcome Haw-Kuang to the BG Group board. He has extensive experience across the international oil and gas industry, including long service as a senior executive in China, the world's fastest growing energy market.

"This gives him a background highly relevant to BG Group as the company becomes China's largest supplier of liquefied natural gas through long-term agreements with CNOOC."

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CEO Group Offers Recommendations for US Energy Policy

A group of U.S. chief executive officers (CEOs) are offering in a new report their recommendations on what a comprehensive U.S. energy policy framework should look like.

The CEOs of the Business Roundtable released a report Monday, "Taking Action on Energy", providing greater detail about the policies needed to make affordable, reliable energy a reality for U.S. consumers and businesses.

The new report is a follow up to the group's March 2012 "Taking Action for America" report. In the previous report, the Business Roundtable identified reliable, affordable energy as a critical strategy to revitalize economic growth and job creation.

"Taking Action on Energy" is an attempt to outline an energy policy framework that is both timely and durable. While many of the policy solutions in the report focus on major issues of the day, the group also attempts to place them within a broader system of national energy policy goals, principles and strategies.

"We believe that the framework outlined in this paper represents a balanced approach to enhancing economic growth and energy security while also reducing the environmental risks associated with criteria pollutants, greenhouse gases and other emissions," said David M. Cote, chairman and CEO of Honeywell International and chairman of the Business Roundtable's Energy and Environment Committee, in a statement.

To support this effort, the organization's Energy and Environment Committee is re-evaluating U.S. energy policy and forging a long-term framework that has the potential to simultaneously advance the nation's economic, security and environmental interests.

The group's initial assessment has found the United States' energy future to be exceptionally bright, Cote noted.

"The nation's energy outlook has improved substantially in recent years due to a confluence of factors that are fundamentally reshaping the U.S. energy landscape, including the development of technologies to unlock vast new domestic oil and natural gas resources and the application of innovative technologies to economically extract and deliver these resources to market," Cote commented. "In addition, the United States remains a global leader in the research, development and commercialization of energy efficiency, renewable energy, new nuclear and advanced coal technologies."

While the shale oil and gas revolution offers a textbook example of the private sector's ability to drive innovation and capitalize on new opportunities, Cote noted that the business community cannot lead the way along if the United States is to sustain its energy renaissance and restore its status as an energy superpower.

The Business Roundtable believes the United States should capitalize on these advantages and accelerate efforts to develop a portfolio of diverse, affordable and efficient options for meeting the nation's 21st century energy needs, Cote commented.

"Despite our optimism, we remain realistic about the difficulty of replacing our ad hoc energy policy with a more purposeful approach," Cote noted. "Making this change will require leaders to engage in an open and honest dialogue about our values and priorities as a nation, as well as the policy and regulatory approaches most likely to achieve them. This report is intended to contribute to that dialogue."

Boosting economic growth, enhancing energy security and promoting environmental stewardship are the three overarching goals the group has identified for a long-term national energy policy. To advance these goals, U.S. policies and regulations should be aligned with the principles of:

Fostering innovationEncouraging competition and energy resource diversityEmpower consumersEngage internationallyEnsure smarter regulationsFortify critical infrastructure

Noting that the United States will continue to rely heavily on traditional energy resources such as oil and gas to fuel future economic growth, the group recommended policies to enhance oil and natural gas production, including greater access to onshore and offshore federal lands, including promising areas such as the eastern Gulf, Atlantic and Pacific coasts and Alaska to ensure reliable oil, gas and coal in the coming decades.

The Business Roundtable also called for a streamlined permitting process to substantially lower the anticipated and unanticipated costs of investing in, producing, processing and transporting energy resources while continue to ensure public health, safety and environmental quality. The group also called on the executive branch to avoid regulations that duplicate or conflict with state regulations.

"Any proposal to promulgate new or expanded federal regulations should be weighed against the fact that the states traditionally have had the preeminent role in regulating oil and natural gas activity on non-federal lands," according to the report.

New federal regulation of oil and gas activities on federal lands should be developed in consultation with states and be consistent with state regulations.

Additionally, they called for the "expeditious approval" of infrastructure projects such as the Keystone XL pipeline and other privately funded infrastructure projects.

Regulations by the U.S. Environmental Protection Agency should be based on sound science, undergo thorough net cost-benefit analysis, and take into consideration the net cumulative impact of these regulations on energy costs, economic growth and job creation while protecting the environment and human health, the group noted in the report.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

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CEO Group Offers Recommendations for US Energy Policy

A group of U.S. chief executive officers (CEOs) are offering in a new report their recommendations on what a comprehensive U.S. energy policy framework should look like.

The CEOs of the Business Roundtable released a report Monday, "Taking Action on Energy", providing greater detail about the policies needed to make affordable, reliable energy a reality for U.S. consumers and businesses.

The new report is a follow up to the group's March 2012 "Taking Action for America" report. In the previous report, the Business Roundtable identified reliable, affordable energy as a critical strategy to revitalize economic growth and job creation.

"Taking Action on Energy" is an attempt to outline an energy policy framework that is both timely and durable. While many of the policy solutions in the report focus on major issues of the day, the group also attempts to place them within a broader system of national energy policy goals, principles and strategies.

"We believe that the framework outlined in this paper represents a balanced approach to enhancing economic growth and energy security while also reducing the environmental risks associated with criteria pollutants, greenhouse gases and other emissions," said David M. Cote, chairman and CEO of Honeywell International and chairman of the Business Roundtable's Energy and Environment Committee, in a statement.

To support this effort, the organization's Energy and Environment Committee is re-evaluating U.S. energy policy and forging a long-term framework that has the potential to simultaneously advance the nation's economic, security and environmental interests.

The group's initial assessment has found the United States' energy future to be exceptionally bright, Cote noted.

"The nation's energy outlook has improved substantially in recent years due to a confluence of factors that are fundamentally reshaping the U.S. energy landscape, including the development of technologies to unlock vast new domestic oil and natural gas resources and the application of innovative technologies to economically extract and deliver these resources to market," Cote commented. "In addition, the United States remains a global leader in the research, development and commercialization of energy efficiency, renewable energy, new nuclear and advanced coal technologies."

While the shale oil and gas revolution offers a textbook example of the private sector's ability to drive innovation and capitalize on new opportunities, Cote noted that the business community cannot lead the way along if the United States is to sustain its energy renaissance and restore its status as an energy superpower.

The Business Roundtable believes the United States should capitalize on these advantages and accelerate efforts to develop a portfolio of diverse, affordable and efficient options for meeting the nation's 21st century energy needs, Cote commented.

"Despite our optimism, we remain realistic about the difficulty of replacing our ad hoc energy policy with a more purposeful approach," Cote noted. "Making this change will require leaders to engage in an open and honest dialogue about our values and priorities as a nation, as well as the policy and regulatory approaches most likely to achieve them. This report is intended to contribute to that dialogue."

Boosting economic growth, enhancing energy security and promoting environmental stewardship are the three overarching goals the group has identified for a long-term national energy policy. To advance these goals, U.S. policies and regulations should be aligned with the principles of:

Fostering innovationEncouraging competition and energy resource diversityEmpower consumersEngage internationallyEnsure smarter regulationsFortify critical infrastructure

Noting that the United States will continue to rely heavily on traditional energy resources such as oil and gas to fuel future economic growth, the group recommended policies to enhance oil and natural gas production, including greater access to onshore and offshore federal lands, including promising areas such as the eastern Gulf, Atlantic and Pacific coasts and Alaska to ensure reliable oil, gas and coal in the coming decades.

The Business Roundtable also called for a streamlined permitting process to substantially lower the anticipated and unanticipated costs of investing in, producing, processing and transporting energy resources while continue to ensure public health, safety and environmental quality. The group also called on the executive branch to avoid regulations that duplicate or conflict with state regulations.

"Any proposal to promulgate new or expanded federal regulations should be weighed against the fact that the states traditionally have had the preeminent role in regulating oil and natural gas activity on non-federal lands," according to the report.

New federal regulation of oil and gas activities on federal lands should be developed in consultation with states and be consistent with state regulations.

Additionally, they called for the "expeditious approval" of infrastructure projects such as the Keystone XL pipeline and other privately funded infrastructure projects.

Regulations by the U.S. Environmental Protection Agency should be based on sound science, undergo thorough net cost-benefit analysis, and take into consideration the net cumulative impact of these regulations on energy costs, economic growth and job creation while protecting the environment and human health, the group noted in the report.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

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WorleyParsons to Acquire Norway's Bergen Group Rosenberg

WorleyParsons revealed Thursday that it has acquired Norway's Bergen Group Rosenberg for a cash consideration of $194 million. Completion of the acquisition is expected by the end of February 2013, WorleyParsons noted in its disclosure.

Rosenberg, a fully-integrated engineering, fabrication and construction company, is based in Norway's oil capital, Stavanger. The company employs around 650 people. 

"Rosenberg provides the ideal platform for us to expand our presence in the Norwegian Continental Shelf offshore oil and gas market. I am excited that this acquisition will continue to strengthen and grow our ability to support our hydrocarbons clients [in the region]," WorleyParsons' CEO Andrew Wood, said in a statement.

"The acquisition of Rosenberg is a strategic beachhead into Norway for WorleyParsons and our focus is very much on continued growth, which is good news for Rosenberg employees," a spokesperson representing WorleyParsons told Rigzone. 

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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EXCO Finalizes $725M Deal with Harbinger Group

EXCO Resources, Inc. announced Friday that it closed its conventional oil and natural gas partnership with Harbinger Group Inc., effective Feb. 14 and received net proceeds of $573.3 million, after preliminary closing adjustments. The cash proceeds received by EXCO were used to repay a portion of its revolving credit facility. EXCO's revolving credit facility now has a $900 million borrowing base with $541 million drawn.

The Partnership holds conventional oil and natural gas assets previously owned by EXCO in West Texas, including and above the Canyon Sand formation, as well as in the Danville, Waskom, Holly and Vernon fields in East Texas and North Louisiana, including and above the Cotton Valley formation. Under the terms of the definitive agreements announced Nov. 5, 2012, the Partnership acquired the oil and natural gas assets from EXCO for $725 million of total consideration. The purchase by the Partnership was funded with approximately $225 million of bank debt, $348.3 million (after preliminary closing adjustments) in cash contributed from HGI and $119.2 million (after preliminary closing adjustments) in oil and natural gas properties and related assets being contributed by EXCO. EXCO has a 50 percent interest in the general partner of the Partnership and a 24.5 percent limited partnership interest in the Partnership. After giving effect to the 2 percent general partner interest in the Partnership, EXCO and HGI own an economic interest in the Partnership of 25.5 percent and 74.5 percent, respectively. The Partnership will be governed by a Board of Directors of the general partner consisting of two EXCO directors and two HGI directors. EXCO will continue to manage and operate the assets as contract operator of the properties and provide services pursuant to contract operating and administrative service agreements with the Partnership.

EXCO and HGI intend to opportunistically add incremental cash flow to the Partnership through the acquisition of other mature, conventional assets over time. On Feb. 14, the Partnership agreed to acquire certain conventional oil and natural gas assets in the Danville, Waskom and Holly fields in East Texas and North Louisiana, including and above the Cotton Valley formation, from an affiliate of BG Group plc for $132.5 million, with an economic effective date of January 1, 2013 and subject to customary closing adjustments. These properties represent an incremental working interest in properties that EXCO contributed to the Partnership. This transaction is expected to close in March 2013. The Partnership intends to fund the acquisition using its revolving credit agreement. In connection with this acquisition, EXCO and BG Group plc agreed to remove these assets from their East Texas/North Louisiana joint venture arrangement, including the termination of the area of mutual interest that was previously applicable to shallow rights acquisitions in the East Texas/North Louisiana area.

"We are pleased to finalize the private partnership transaction with Harbinger Group and look forward to a long and profitable association. This partnership vehicle allows our companies the opportunity to capitalize on a robust market for conventional assets and to build a very substantial entity over the next few years. We are appreciative of the efforts of our collective teams in getting this transaction closed," EXCO's Chief Executive Officer Douglas H. Miller commented.

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BG Group Sells Texas Cotton Valley Assets

BG Group announced it signed a sale and purchase agreement with EXCO Resources for the divestment of all its interests in the shallow, non-core, conventional producing assets and acreage in the Cotton Valley formation for a consideration of $132.5 million.

These assets, covering approximately 54,165 net leasehold acres across East Texas and North Louisiana, are not required to be held by BG Group in order to hold, drill and produce the undeveloped Haynesville/Bossier formation shale reserves which lie beneath the Cotton Valley formation.

Closing of this transaction is expected in the first quarter of 2013.

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BG Group Director Retires

BG Group announced Monday that one of its non-executive directors, Philippe Varin, has retired from the firm's board.

BG Group Chairman Andrew Gold commented in a company statement:

"I would like to express on behalf of BG Group's board our thanks and appreciation for Philippe's advice and support over the years. We have benefited greatly from his contributions."

Varin was appointed as a non-executive director in 2006. He was a member of the firm's audit and remuneration committees.

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