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

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

Local Participation Push for Major Australian Developments

Leaders of Australia's oil and gas industry are working together in an effort to develop methods towards increasing the amount of local content on major developments.

Locally based suppliers servicing the growing liquefied natural gas sector in Western Australia (WA) have expressed concern in recent years about being overlooked for development contracts.

Developers have cited the high Australian dollar, high labor costs and rising energy costs as reasons for opting to award contracts to competing foreign companies, often from Asia.

Despite these obstacles, developers have been urged to do more to increase local participation in projects.

Local suppliers are also being encouraged to develop a better understanding of the criteria to help them win contracts.

The issue was a key topic at the Australasian Oil & Gas Conference in Perth recently where industry groups, government representatives, and oil and gas companies discussed how more local participation could take place.

Paul Johnson, the Australian Government's Energy Resources Supplier Advocate, spoke at the conference and believes oil and gas developers need to take into account the capability and capacity of Australian suppliers if they want to boost the level of local content on their projects.

Johnson, who was appointed to this position in August of last year, said there was much good work happening in the sector to raise the capability of Australian firms to win work, but more could be done by both developers and suppliers.

"Project developers should take into account the limitations faced by Australian suppliers in undertaking large procurement packages, accessing the necessary finance and obtaining sufficient numbers of skilled workers," Johnson said.

"Small adjustments to the way projects are designed, engineered and procured can make a big difference to local suppliers.

"Early consideration of what can be done here should inform the design and engineering approach and basing some of the procurement team in Australia will lead to better engagement with local suppliers."

While major developers have been questioned for the amount of local content on their projects, Chevron reinforced its commitment to local suppliers through its conference presentation.

Colin Beckett, Chevron's general manager at the Gorgon LNG development, explained that the project had so far awarded $18.7 billion (AUD $18 billion) in contracts to local suppliers and created 9.000 jobs in the country.

However, he conceded that many Australian companies had not met the pre-conditions for tendering for work, with reasons including a lack of experience or capacity.

To assist in preparing local firms to win work, Australia's Department of Industry, Innovation, Science, Research and Tertiary Education last year engaged economic advisory firm, Development Impacts, to undertake a project examining best practices by companies successfully supplying into the sector to determine how they meet the needs of project proponents.

Pia Turcinov, Development Impacts director, explained to Rigzone that it found there was more to the issue than obstacles such as a high Australian dollar, a lack of financial profile and Australia's skills shortage.

"They are huge hurdles for Australian companies, but there are other issues surrounding what the benchmarks are that local companies need to meet before they are considered… even in the tender stage," Turcinov, who also addressed the conference, said.

"Our work on this project identified 22 key factors companies need to focus on.

"Yes, price was a major factor, but other key factors were about quality, flexibility, design capabilities, QA systems, technical expertise, after sale service, and financial capabilities and risk profile.

"We looked at factors such as these and how the better performing companies compare and where they are outperforming against expectations."

Turcinov explained that suppliers needed to establish a clear capability beyond just a normal website and marketing brochure, and it was advisable for them to look at forming alliances with other local companies to build profile and capability.

In an election year, both at a federal and state level in WA, political parties in Australia have been prioritizing this issue.

WA's governing Liberal Party regularly produces an industry participation framework aimed at ensuring the local industry receives opportunity to participate in major resource projects.

The opposing Labor Party in WA has also shown its commitment by releasing a discussion paper outlining its openness to the issue.

At a federal level, the governing Labor Party is focusing on strengthening opportunities for the local industry through a proposed plan administering the issue.

Under the plan, major projects worth $519 million (AUD $500) million or more will be required to have an Australian industry participation plan identifying opportunities for local firms.

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

Local Participation Push for Major Australian Developments

Leaders of Australia's oil and gas industry are working together in an effort to develop methods towards increasing the amount of local content on major developments.

Locally based suppliers servicing the growing liquefied natural gas sector in Western Australia (WA) have expressed concern in recent years about being overlooked for development contracts.

Developers have cited the high Australian dollar, high labor costs and rising energy costs as reasons for opting to award contracts to competing foreign companies, often from Asia.

Despite these obstacles, developers have been urged to do more to increase local participation in projects.

Local suppliers are also being encouraged to develop a better understanding of the criteria to help them win contracts.

The issue was a key topic at the Australasian Oil & Gas Conference in Perth recently where industry groups, government representatives, and oil and gas companies discussed how more local participation could take place.

Paul Johnson, the Australian Government's Energy Resources Supplier Advocate, spoke at the conference and believes oil and gas developers need to take into account the capability and capacity of Australian suppliers if they want to boost the level of local content on their projects.

Johnson, who was appointed to this position in August of last year, said there was much good work happening in the sector to raise the capability of Australian firms to win work, but more could be done by both developers and suppliers.

"Project developers should take into account the limitations faced by Australian suppliers in undertaking large procurement packages, accessing the necessary finance and obtaining sufficient numbers of skilled workers," Johnson said.

"Small adjustments to the way projects are designed, engineered and procured can make a big difference to local suppliers.

"Early consideration of what can be done here should inform the design and engineering approach and basing some of the procurement team in Australia will lead to better engagement with local suppliers."

While major developers have been questioned for the amount of local content on their projects, Chevron reinforced its commitment to local suppliers through its conference presentation.

Colin Beckett, Chevron's general manager at the Gorgon LNG development, explained that the project had so far awarded $18.7 billion (AUD $18 billion) in contracts to local suppliers and created 9.000 jobs in the country.

However, he conceded that many Australian companies had not met the pre-conditions for tendering for work, with reasons including a lack of experience or capacity.

To assist in preparing local firms to win work, Australia's Department of Industry, Innovation, Science, Research and Tertiary Education last year engaged economic advisory firm, Development Impacts, to undertake a project examining best practices by companies successfully supplying into the sector to determine how they meet the needs of project proponents.

Pia Turcinov, Development Impacts director, explained to Rigzone that it found there was more to the issue than obstacles such as a high Australian dollar, a lack of financial profile and Australia's skills shortage.

"They are huge hurdles for Australian companies, but there are other issues surrounding what the benchmarks are that local companies need to meet before they are considered… even in the tender stage," Turcinov, who also addressed the conference, said.

"Our work on this project identified 22 key factors companies need to focus on.

"Yes, price was a major factor, but other key factors were about quality, flexibility, design capabilities, QA systems, technical expertise, after sale service, and financial capabilities and risk profile.

"We looked at factors such as these and how the better performing companies compare and where they are outperforming against expectations."

Turcinov explained that suppliers needed to establish a clear capability beyond just a normal website and marketing brochure, and it was advisable for them to look at forming alliances with other local companies to build profile and capability.

In an election year, both at a federal and state level in WA, political parties in Australia have been prioritizing this issue.

WA's governing Liberal Party regularly produces an industry participation framework aimed at ensuring the local industry receives opportunity to participate in major resource projects.

The opposing Labor Party in WA has also shown its commitment by releasing a discussion paper outlining its openness to the issue.

At a federal level, the governing Labor Party is focusing on strengthening opportunities for the local industry through a proposed plan administering the issue.

Under the plan, major projects worth $519 million (AUD $500) million or more will be required to have an Australian industry participation plan identifying opportunities for local firms.

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

Local Participation Push for Major Australian Developments

Leaders of Australia's oil and gas industry are working together in an effort to develop methods towards increasing the amount of local content on major developments.

Locally based suppliers servicing the growing liquefied natural gas sector in Western Australia (WA) have expressed concern in recent years about being overlooked for development contracts.

Developers have cited the high Australian dollar, high labor costs and rising energy costs as reasons for opting to award contracts to competing foreign companies, often from Asia.

Despite these obstacles, developers have been urged to do more to increase local participation in projects.

Local suppliers are also being encouraged to develop a better understanding of the criteria to help them win contracts.

The issue was a key topic at the Australasian Oil & Gas Conference in Perth recently where industry groups, government representatives, and oil and gas companies discussed how more local participation could take place.

Paul Johnson, the Australian Government's Energy Resources Supplier Advocate, spoke at the conference and believes oil and gas developers need to take into account the capability and capacity of Australian suppliers if they want to boost the level of local content on their projects.

Johnson, who was appointed to this position in August of last year, said there was much good work happening in the sector to raise the capability of Australian firms to win work, but more could be done by both developers and suppliers.

"Project developers should take into account the limitations faced by Australian suppliers in undertaking large procurement packages, accessing the necessary finance and obtaining sufficient numbers of skilled workers," Johnson said.

"Small adjustments to the way projects are designed, engineered and procured can make a big difference to local suppliers.

"Early consideration of what can be done here should inform the design and engineering approach and basing some of the procurement team in Australia will lead to better engagement with local suppliers."

While major developers have been questioned for the amount of local content on their projects, Chevron reinforced its commitment to local suppliers through its conference presentation.

Colin Beckett, Chevron's general manager at the Gorgon LNG development, explained that the project had so far awarded $18.7 billion (AUD $18 billion) in contracts to local suppliers and created 9.000 jobs in the country.

However, he conceded that many Australian companies had not met the pre-conditions for tendering for work, with reasons including a lack of experience or capacity.

To assist in preparing local firms to win work, Australia's Department of Industry, Innovation, Science, Research and Tertiary Education last year engaged economic advisory firm, Development Impacts, to undertake a project examining best practices by companies successfully supplying into the sector to determine how they meet the needs of project proponents.

Pia Turcinov, Development Impacts director, explained to Rigzone that it found there was more to the issue than obstacles such as a high Australian dollar, a lack of financial profile and Australia's skills shortage.

"They are huge hurdles for Australian companies, but there are other issues surrounding what the benchmarks are that local companies need to meet before they are considered… even in the tender stage," Turcinov, who also addressed the conference, said.

"Our work on this project identified 22 key factors companies need to focus on.

"Yes, price was a major factor, but other key factors were about quality, flexibility, design capabilities, QA systems, technical expertise, after sale service, and financial capabilities and risk profile.

"We looked at factors such as these and how the better performing companies compare and where they are outperforming against expectations."

Turcinov explained that suppliers needed to establish a clear capability beyond just a normal website and marketing brochure, and it was advisable for them to look at forming alliances with other local companies to build profile and capability.

In an election year, both at a federal and state level in WA, political parties in Australia have been prioritizing this issue.

WA's governing Liberal Party regularly produces an industry participation framework aimed at ensuring the local industry receives opportunity to participate in major resource projects.

The opposing Labor Party in WA has also shown its commitment by releasing a discussion paper outlining its openness to the issue.

At a federal level, the governing Labor Party is focusing on strengthening opportunities for the local industry through a proposed plan administering the issue.

Under the plan, major projects worth $519 million (AUD $500) million or more will be required to have an Australian industry participation plan identifying opportunities for local firms.

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

BP To Contest $34B Gulf Suits From State, Local Governments

LONDON - BP PLC plans to "vigorously contest" legal claims for tens of billions of dollars in damages stemming from the 2010 Gulf of Mexico disaster, describing the lawsuits as "seriously flawed."

Demands from U.S. state and local governments for $34 billion risk ballooning BP's overall bill for the Deepwater Horizon rig explosion and oil spill to more than $90 billion, more than double the amount the U.K oil giant has already provisioned for and underscores how after almost three years the Deepwater Horizon disaster still weighs on BP.

BP Chief Executive Bob Dudley said the firm intends to contest the state economic claims "vigorously in court."

Alabama, Mississippi, Florida and Louisiana are seeking the money in compensation for economic losses and property damage caused by the incident, the company disclosed in an earnings filing Tuesday. BP is already facing spill costs of around $58 billion, which includes penalties, damages and cleanup costs the U.K.-based energy giant has already paid out, committed to spend or could yet be fined when the matter goes before a New Orleans judge in a civil trial due to start Feb. 25.

However, BP said such a scenario was unlikely and sought to play down the validity of the claims, saying it considered the methodologies used to calculate the state government claims to be "seriously flawed, not supported by the legislation" and substantially overstated.

Chief Financial Officer Brian Gilvary said the bulk of the state claims are based around losses in potential tax revenues and as such will be hard to prove as BP has put a lot of stimulus money into the Gulf states to deal with the spill.

"That will be an interesting thing to try to prove given that we have provided one of the biggest fiscal stimuli that the Gulf has ever seen; we hired up over 40,000 people to deal with it and paid taxes as a consequence," Mr Gilvary said.

BP has already provided for what it believes is a "fair and reasonable" assessment of the state economic losses in its $42.2 billion provision, Mr. Gilvary said. But he declined to say how much had been allocated.

In January, Alabama, Mississippi and Florida presented their claims to BP for alleged losses including economic losses and property damages as a result of the Gulf of Mexico oil spill, BP said in its fourth-quarter statement.

Louisiana had also asserted similar claims as had various local governments. These claims total over $34 billion and more claims are expected to be presented, the company said.

BP has already spent or committed to spend $37 billion in cleanup costs, criminal fines and settlements with individuals and businesses harmed by the spill. Around $24 billion of that has already been paid out with the remaining sum of about $13 billion to be paid out over a number of years.

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

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

View the original article here

BP To Contest $34B Gulf Suits From State, Local Governments

LONDON - BP PLC plans to "vigorously contest" legal claims for tens of billions of dollars in damages stemming from the 2010 Gulf of Mexico disaster, describing the lawsuits as "seriously flawed."

Demands from U.S. state and local governments for $34 billion risk ballooning BP's overall bill for the Deepwater Horizon rig explosion and oil spill to more than $90 billion, more than double the amount the U.K oil giant has already provisioned for and underscores how after almost three years the Deepwater Horizon disaster still weighs on BP.

BP Chief Executive Bob Dudley said the firm intends to contest the state economic claims "vigorously in court."

Alabama, Mississippi, Florida and Louisiana are seeking the money in compensation for economic losses and property damage caused by the incident, the company disclosed in an earnings filing Tuesday. BP is already facing spill costs of around $58 billion, which includes penalties, damages and cleanup costs the U.K.-based energy giant has already paid out, committed to spend or could yet be fined when the matter goes before a New Orleans judge in a civil trial due to start Feb. 25.

However, BP said such a scenario was unlikely and sought to play down the validity of the claims, saying it considered the methodologies used to calculate the state government claims to be "seriously flawed, not supported by the legislation" and substantially overstated.

Chief Financial Officer Brian Gilvary said the bulk of the state claims are based around losses in potential tax revenues and as such will be hard to prove as BP has put a lot of stimulus money into the Gulf states to deal with the spill.

"That will be an interesting thing to try to prove given that we have provided one of the biggest fiscal stimuli that the Gulf has ever seen; we hired up over 40,000 people to deal with it and paid taxes as a consequence," Mr Gilvary said.

BP has already provided for what it believes is a "fair and reasonable" assessment of the state economic losses in its $42.2 billion provision, Mr. Gilvary said. But he declined to say how much had been allocated.

In January, Alabama, Mississippi and Florida presented their claims to BP for alleged losses including economic losses and property damages as a result of the Gulf of Mexico oil spill, BP said in its fourth-quarter statement.

Louisiana had also asserted similar claims as had various local governments. These claims total over $34 billion and more claims are expected to be presented, the company said.

BP has already spent or committed to spend $37 billion in cleanup costs, criminal fines and settlements with individuals and businesses harmed by the spill. Around $24 billion of that has already been paid out with the remaining sum of about $13 billion to be paid out over a number of years.

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

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

View the original article here