Showing posts with label Production. Show all posts
Showing posts with label Production. Show all posts

Tuesday, August 6, 2013

Total Production to Increase 3% PA to 2015

Total Production to Increase 3% PA to 2015

PARIS - French oil major Total SA's chairman and chief executive, Christophe de Margerie, Friday confirmed the group's medium-term production targets. 

Speaking during the group's annual shareholders meeting, Mr. de Margerie said Total still expects its hydrocarbon output will increase an average 3% a year between 2011 and 2015. 

Over the past two years the company has focused its strategy on an aggressive search for additional oil and gas reserves, as demand from emerging markets, notably Asia, keeps increasing. 

"Clearly in terms of exploration we decided to shift gears," Mr. de Margerie said, noting that the group recently acquired many blocks in Brazil's deep offshore fields as part of its new policy for riskier exploration locations. 

"Now we need to make discoveries," he added. 

He said he remains confident the group would be able to produce as much as 3 million barrels of oil equivalent per day by the end of 2017.

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

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ConocoPhillips CEO Says Production Will Start Rising by Year's End

ConocoPhillips CEO Says Production Will Start Rising by Year's End

HOUSTON - ConocoPhillips Chief Executive Ryan Lance told shareholders at the company's annual meeting Tuesday that the company's long-awaited production growth rebound will begin by the end of this year.

He said 2013 will be an "inflection point" for ConocoPhillips, as it closes on $8.5 billion in announced asset sales and reaches a production low. But production will start to ramp up again by the end of the fourth quarter and into next year as the sales put cash on the company's balance sheet to fund development and grow its dividend.

"The growth is coming," Mr. Lance said. "You don't have to wait for that growth and the margin improvement for our company."

ConocoPhillips is in the midst of a transformation facilitated by drilling technologies that have unlocked oil and natural gas within the U.S. that had been unreachable or too expensive to drill. Mr. Lance's presentation to shareholders emphasized ConocoPhillips' ability to fund its operations and deliver on its promises of 3-5% production and margin growth even as it continues to pay a high dividend.

Mr. Lance said there's a "clear line of sight" to production of 1.9 million barrels of oil equivalent a day by 2017, up from an estimated 1.5 million barrels of oil equivalent per day this year. Much of that will be fueled by ConocoPhillips' acreage in unconventional U.S. shale formations--the Eagle Ford and Permian formations in Texas, and North Dakota's Bakken.

Income brought in from production in those areas will be used to fund the company's major projects around the world and exploration that is expected to fuel long-term growth. Mr. Lance highlighted the company's work in the Gulf of Mexico, where company is working to renew its presence. It will participate in five to eight wells this year, including its first operated well there in nearly a decade.

"We are back," Mr. Lance said of the Gulf.


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AmericaCNG to Roll Out Solution to Associated Gas Production

AmericaCNG to Roll Out Solution to Associated Gas Production

Dallas-based AmericaCNG.com Inc. will begin offering in September a new service that allows natural gas liquids (NGL) and methane to be stripped from production at the wellhead. The company's new mobile, portable plants offer producers a temporary solution for dealing with NGLs and methane until the necessary pipeline infrastructure is in place.

Through a Y-grade extraction process, natural gas is separated at the wellhead from oil production, and the NGLs and methane are separated through two pipes. The NGLs are sold off and the producer paid on the netback, while the methane is converted to liquefied natural gas (LNG). The converted LNG can then be used to power drilling rigs, allowing producers to keep drilling at fields where no gas lines are available and still make money. That LNG can also be transported to a pipeline on behalf of the producer.

The company's skid-mounted LNG machines allow LNG in the field to be sold for $1/gallon, depending on individual company analysis, saving exploration and production companies millions each month in fuel costs, allowing them to drill with no flaring, according to a company presentation.

The company's strategic alliance partners construct the plants based on the gas analysis obtained from oil and gas producers.

"The volume commitment that we get from the oil and gas producers and the gas analysis will dictate the sizes of these plants," said Joseph Farley, director of global business development, in an interview with Rigzone.

Plant sizes can range from 5,000 gallons up to 100,000 gallons.

AmericaCNG can also build a LNG/compressed natural gas (CNG) station for companies interested. Once methane is converted to LNG, it can be taken to a LNG/CNG station and distributed. LNG is stored at minus 260 degrees; however, once it begins to warm up, it turns back into a gas and that gas can then be compressed and placed in CNG storage tanks. The company would need to have a commitment of 5,000 gallons per day in order to build a CNG/LNG station for larger fleet customers.


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Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@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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Saturday, August 3, 2013

Total Production to Increase 3% PA to 2015

Total Production to Increase 3% PA to 2015

PARIS - French oil major Total SA's chairman and chief executive, Christophe de Margerie, Friday confirmed the group's medium-term production targets. 

Speaking during the group's annual shareholders meeting, Mr. de Margerie said Total still expects its hydrocarbon output will increase an average 3% a year between 2011 and 2015. 

Over the past two years the company has focused its strategy on an aggressive search for additional oil and gas reserves, as demand from emerging markets, notably Asia, keeps increasing. 

"Clearly in terms of exploration we decided to shift gears," Mr. de Margerie said, noting that the group recently acquired many blocks in Brazil's deep offshore fields as part of its new policy for riskier exploration locations. 

"Now we need to make discoveries," he added. 

He said he remains confident the group would be able to produce as much as 3 million barrels of oil equivalent per day by the end of 2017.

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

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

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Friday, August 2, 2013

AmericaCNG to Roll Out Solution to Associated Gas Production

AmericaCNG to Roll Out Solution to Associated Gas Production

Dallas-based AmericaCNG.com Inc. will begin offering in September a new service that allows natural gas liquids (NGL) and methane to be stripped from production at the wellhead. The company's new mobile, portable plants offer producers a temporary solution for dealing with NGLs and methane until the necessary pipeline infrastructure is in place.

Through a Y-grade extraction process, natural gas is separated at the wellhead from oil production, and the NGLs and methane are separated through two pipes. The NGLs are sold off and the producer paid on the netback, while the methane is converted to liquefied natural gas (LNG). The converted LNG can then be used to power drilling rigs, allowing producers to keep drilling at fields where no gas lines are available and still make money. That LNG can also be transported to a pipeline on behalf of the producer.

The company's skid-mounted LNG machines allow LNG in the field to be sold for $1/gallon, depending on individual company analysis, saving exploration and production companies millions each month in fuel costs, allowing them to drill with no flaring, according to a company presentation.

The company's strategic alliance partners construct the plants based on the gas analysis obtained from oil and gas producers.

"The volume commitment that we get from the oil and gas producers and the gas analysis will dictate the sizes of these plants," said Joseph Farley, director of global business development, in an interview with Rigzone.

Plant sizes can range from 5,000 gallons up to 100,000 gallons.

AmericaCNG can also build a LNG/compressed natural gas (CNG) station for companies interested. Once methane is converted to LNG, it can be taken to a LNG/CNG station and distributed. LNG is stored at minus 260 degrees; however, once it begins to warm up, it turns back into a gas and that gas can then be compressed and placed in CNG storage tanks. The company would need to have a commitment of 5,000 gallons per day in order to build a CNG/LNG station for larger fleet customers.


12345

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

Saturday, July 27, 2013

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.

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

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Tuesday, July 23, 2013

Production to Start Soon at Hai Su Trang

HANOI - State-owned Petrovietnam and Talisman Energy Inc. are expected to start commercial oil production from Hai Su Trang field offshore Vietnam next week, Petrovietnam said Monday. 

The field in Block 15-2/01, more than 100 kilometers south of Ba Ria Vung Tau province, is operated by Thang Long Joint Operating Co., in which Talisman holds a 60% stake and Petrovietnam 40%. 

Petrovietnam earlier said Hai Su Trang had an oil flow of 15,000 barrels a day. 

Petrovietnam said in a statement Monday that Talisman seeks to expand its oil and gas operations in Vietnam as well as other countries to meet Vietnam's rising demand for fuels, especially natural gas. 

The statement came after a meeting between Petrovietnam CEO Do Van Hau and Talisman CEO Harold N. Kvisle in Canada over the weekend.

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


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Sunday, July 21, 2013

Production to Start Soon at Hai Su Trang

HANOI - State-owned Petrovietnam and Talisman Energy Inc. are expected to start commercial oil production from Hai Su Trang field offshore Vietnam next week, Petrovietnam said Monday. 

The field in Block 15-2/01, more than 100 kilometers south of Ba Ria Vung Tau province, is operated by Thang Long Joint Operating Co., in which Talisman holds a 60% stake and Petrovietnam 40%. 

Petrovietnam earlier said Hai Su Trang had an oil flow of 15,000 barrels a day. 

Petrovietnam said in a statement Monday that Talisman seeks to expand its oil and gas operations in Vietnam as well as other countries to meet Vietnam's rising demand for fuels, especially natural gas. 

The statement came after a meeting between Petrovietnam CEO Do Van Hau and Talisman CEO Harold N. Kvisle in Canada over the weekend.

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


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Thursday, July 18, 2013

Nexen: Production Ramping Up On Buzzard Oil Field

LONDON--The operator of the U.K.'s Buzzard oil field said Friday that production from the field resumed during the last 24 hours and would be ramping up within the next two days.

Nexen Inc., a unit of China's CNOOC Ltd.(CEO), wouldn't comment on when Buzzard would reach full capacity. Production was impacted Monday after a steam release triggered an alarm.

A London-based trader said the outage had caused the front-month price of Brent to steepen relative to later months.

Nexen is the second largest oil producer in the U.K. North Sea, according to the company's website. In 2012, Buzzard generated 160,000 barrels a day of oil equivalent.

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

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Tuesday, July 16, 2013

BG 1Q Profit Down on Lower Production

LONDON - BG Group PLC said Thursday its first-quarter net profit was down 0.8% on lower production and increased costs in exploration and production, but said it had delivered three key milestones on projects in Brazil and the U.K. 

The company, which last year surprised the market by downgrading its production targets, said it was on track to meet its project milestones for this year. 

The U.K.'s third-largest oil and natural gas company by market value said net profit for the three months ended March 31 totaled $1.21 billion, compared with $1.22 billion for the first quarter of 2012. 

"We have made a good start to the year, delivering the three key milestones for the first quarter, whilst also making progress with our project execution program for the year," said Chief Executive Chris Finlayson. 

Excluding gains or losses from one-off items, such as asset sales, the company's profit was $1.18 billion, down 3.4% from $1.23 billion in the same period a year earlier. This was 6.1% above average expectations of $1.12 billion in a Dow Jones Newswires poll of six analysts. 

Total oil and gas production was 659,000 barrels of oil equivalent a day, a 1.5% fall from the same period a year ago, but slightly above analysts' expectations of 648,000 barrels of oil equivalent a day. 

Revenue for the quarter was up 0.6% to $4.91 billion from $4.88 billion a year ago. 

Diluted earnings per share were 35.3 cents compared with 34.2 cents the previous year.

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

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Monday, July 15, 2013

First Kenyan Oil Production Seen by 2019

NAIROBI - Kenya could be six years away from becoming Africa's latest oil producing nation, the International Monetary Fund said in a recent report, though the company leading the country's exploration efforts cautioned it is still too early to predict when commercial output will begin.

"Kenya expects to start producing oil in six to seven years," the International Monetary Fund said in a review of the country's macroeconomic outlook released April 30.

Big oil discoveries in Kenya's northern Turkana region--one in early 2012 and another in May--have raised hopes of the East African nation joining Uganda, Tanzania and Mozambique as the continent's newest energy heavyweights.

However, the company that made the finds, London-listed wildcatter Tullow Oil PLC, said more wells would need to be drilled before any assurances could be made about when commercial production could start.

"I have seen the IMF report but would stress that we are still at the early stages of exploration in Kenya," said Tullow Oil spokesman George Cazenove.

"While the exploration so far has been very successful, we have only drilled three wells so any projections of when commercial oil might flow are premature," said Mr. Cazenove.

Tullow's success has whetted the appetite of other major foreign oil companies, the IMF said in its report.

"Out of 46 blocks made available by the Minister for Energy under the Petroleum Act, 45 have been licensed to 23 international oil companies," the IMF said.

Norway's Statoil ASA and U.K. heavyweight BG Group PLC are two of the biggest firms currently exploring in the region.

"The companies are at different stages of exploration, and the productive capacity of two oil wells is currently being assessed," said the report.

Kenya will be helped by the IMF to re-draft its rules for regulating the sectors, the organization said in its review.

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

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Friday, July 12, 2013

Ice Gas: A Step Closer to Commercial Production

Ice Gas: A Step Closer to Commercial Production

The news in early March that a Japanese company had finally successfully extracted natural gas from methane hydrate deposits under the seabed offshore Japan was hailed as a breakthrough for the energy industry around the world. There are large deposits of methane hydrate, or "ice gas", in several locations around the planet which means, if successfully exploited, they could bring to many regions around the world the low gas prices currently seen in North America as a result of the shale gas boom.

Japan Oil, Gas and Metals National Corporation (JOGMEC) reported March 12 that it successfully extracted natural gas from methane hydrate deposits from around 1,000 feet under the seabed offshore Japan.

Methane hydrate is a compound in which a large amount of methane is trapped within a crystal structure made up of water, so forming a solid that is similar to ice in its composition (although it looks like slush). For methane hydrate deposits to form the right conditions in terms of pressures and temperatures are required. These conditions are normally found in four kinds of environment:

Sediment and sedimentary rock under Arctic permafrostSedimentary deposits along continental marginsDeepwater sediments of seas and lakes (e.g. the fresh water Lake Baijal, Siberia)Beneath Antarctic ice

There are some 40 trillion cubic feet of methane held in methane hydrate deposits under the sea in the eastern Nankai Trough, off the southern coast of the Japanese island of Honshu, according to JOGMEC. This is equivalent to around 11 years of the amount of liquefied natural gas that is currently imported into Japan.

JOGMEC has been working at the Daini Atsumi Knoll, off the coasts of the Atsumi and Shima Peninsula since February 2012. After acquiring pressurized core samples last summer, the company began an experimental flow test in March this year, successfully yielding gas from the methane hydrate deposits.

In order to achieve extraction, JOGMEC used specialized equipment to drill into and depressurize the methane hydrate causing the gas to separate. The gas was then piped to the surface.

JOGMEC hopes its experimental test will help it better understand dissociation behavior of methane hydrate under the seabed and the impact to the surrounding environment. A second offshore test is planned ahead of commercial production that could be achieved later this decade. However, a lot will depend upon whether the costs of extraction can be brought down to low enough levels to make commercial production viable.

While the Japanese government says that it is now planning a three-year study into how much ice gas it has within its territorial waters in the Japan Sea, a number of other countries have also been looking to exploit methane hydrate resources.

For example, last August, the U.S. Department of Energy (DOE) announced funding for 13 research projects across 11 U.S. states to help develop methane hydrate deposits as an energy source. At the time, U.S. Energy Secretary Dr. Steven Chu commented that although research on methane hydrates is still at an early stage, these research efforts could one day yield the same kind of benefits achieved by the shale gas boom after the country invested in researching shale gas in the 1970s and 80s.

Meanwhile, China is also investing millions of dollars into the study of methane hydrates.

The energy content of methane occurring in hydrate form is immense and could exceed the combined energy content of all other known fossil fuels (one cubic foot of methane hydrate contains approximately 160 cubic feet of natural gas), according to the U.S. DOE. But there is still the question of how big future production volumes could be. This is what the current project by JOGMEC should go some way towards determining, as will certain projects that the DOE is funding.

One of the projects that the DOE is helping to fund is being carried out Georgia Tech Research Corporation. This organization was granted $626,000 for a project that aims to understand the behavior of gas hydrates hosted in fine-grained sediments such as clay or silt, including how to evaluate extraction methods that could be used to produce gas from such sediments.

The U.S. government's strong research interest in methane hydrates is not surprising given that the U.S. Geological Survey (USGS) has identified several accumulations of methane hydrates offshore United States and Central America. Meanwhile, in the North Slope of Alaska the USGS estimates a mean resource of some 85 trillion cubic feet of natural gas held within methane hydrate deposits.

As well as offshore Japan and the Russian Far East, accumulations of methane hydrates have also been discovered in the Black Sea and off the coast of West Africa. But there are plenty of other locations around the world where methane hydrates are thought likely to occur.

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

Tuesday, July 9, 2013

Ice Gas: A Step Closer to Commercial Production

Ice Gas: A Step Closer to Commercial Production

The news in early March that a Japanese company had finally successfully extracted natural gas from methane hydrate deposits under the seabed offshore Japan was hailed as a breakthrough for the energy industry around the world. There are large deposits of methane hydrate, or "ice gas", in several locations around the planet which means, if successfully exploited, they could bring to many regions around the world the low gas prices currently seen in North America as a result of the shale gas boom.

Japan Oil, Gas and Metals National Corporation (JOGMEC) reported March 12 that it successfully extracted natural gas from methane hydrate deposits from around 1,000 feet under the seabed offshore Japan.

Methane hydrate is a compound in which a large amount of methane is trapped within a crystal structure made up of water, so forming a solid that is similar to ice in its composition (although it looks like slush). For methane hydrate deposits to form the right conditions in terms of pressures and temperatures are required. These conditions are normally found in four kinds of environment:

Sediment and sedimentary rock under Arctic permafrostSedimentary deposits along continental marginsDeepwater sediments of seas and lakes (e.g. the fresh water Lake Baijal, Siberia)Beneath Antarctic ice

There are some 40 trillion cubic feet of methane held in methane hydrate deposits under the sea in the eastern Nankai Trough, off the southern coast of the Japanese island of Honshu, according to JOGMEC. This is equivalent to around 11 years of the amount of liquefied natural gas that is currently imported into Japan.

JOGMEC has been working at the Daini Atsumi Knoll, off the coasts of the Atsumi and Shima Peninsula since February 2012. After acquiring pressurized core samples last summer, the company began an experimental flow test in March this year, successfully yielding gas from the methane hydrate deposits.

In order to achieve extraction, JOGMEC used specialized equipment to drill into and depressurize the methane hydrate causing the gas to separate. The gas was then piped to the surface.

JOGMEC hopes its experimental test will help it better understand dissociation behavior of methane hydrate under the seabed and the impact to the surrounding environment. A second offshore test is planned ahead of commercial production that could be achieved later this decade. However, a lot will depend upon whether the costs of extraction can be brought down to low enough levels to make commercial production viable.

While the Japanese government says that it is now planning a three-year study into how much ice gas it has within its territorial waters in the Japan Sea, a number of other countries have also been looking to exploit methane hydrate resources.

For example, last August, the U.S. Department of Energy (DOE) announced funding for 13 research projects across 11 U.S. states to help develop methane hydrate deposits as an energy source. At the time, U.S. Energy Secretary Dr. Steven Chu commented that although research on methane hydrates is still at an early stage, these research efforts could one day yield the same kind of benefits achieved by the shale gas boom after the country invested in researching shale gas in the 1970s and 80s.

Meanwhile, China is also investing millions of dollars into the study of methane hydrates.

The energy content of methane occurring in hydrate form is immense and could exceed the combined energy content of all other known fossil fuels (one cubic foot of methane hydrate contains approximately 160 cubic feet of natural gas), according to the U.S. DOE. But there is still the question of how big future production volumes could be. This is what the current project by JOGMEC should go some way towards determining, as will certain projects that the DOE is funding.

One of the projects that the DOE is helping to fund is being carried out Georgia Tech Research Corporation. This organization was granted $626,000 for a project that aims to understand the behavior of gas hydrates hosted in fine-grained sediments such as clay or silt, including how to evaluate extraction methods that could be used to produce gas from such sediments.

The U.S. government's strong research interest in methane hydrates is not surprising given that the U.S. Geological Survey (USGS) has identified several accumulations of methane hydrates offshore United States and Central America. Meanwhile, in the North Slope of Alaska the USGS estimates a mean resource of some 85 trillion cubic feet of natural gas held within methane hydrate deposits.

As well as offshore Japan and the Russian Far East, accumulations of methane hydrates have also been discovered in the Black Sea and off the coast of West Africa. But there are plenty of other locations around the world where methane hydrates are thought likely to occur.

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

Saturday, July 6, 2013

Genel Confirms Production Guidance for 2013

Genel Energy confirmed in an interim management statement Monday that its 2013 guidance remains unchanged. The firm expects to produce between 45,000 and 55,000 barrels of oil per day (bopd) along with revenue of between $300 and $400 million.

Genel said that its new working-interest production for the first quarter of 2013 averaged 37,000 bopd. The firm said that two fields in Iraqi Kurdistan in which it has an interest, Taq Taq and Tawke, averaged 73,000 bopd and 18,000 bopd respectively, with volumes affected by the New Year national holiday and maintenance work at Tawke.

Genel said that production capacity at its key Taq Taq and Tawke assets continues to grow, with Taq Taq's gross production capacity currently at 120,000 bopd and Tawke gross capacity at 100,00 bopd. Genel is targeting 200,000 bopd at both fields by the end of 2014.

Genel began exports to Turkey by truck of Kurdish oil in January. In Monday's statement the firm said it expected volumes exported to rise to 15,000/20,000 bopd during the rest of the year.

Meanwhile, Genel also reported that it had made significant progress with infrastructure developments, with the Taq Taq-Khurmala pipeline now complete. The second phase of this pipeline, from Khurmala to the Fishkabur pump station on the border with Turkey is under construction and will have an initial capacity of 300,000 bopd. The firm expects this to be completed during the fourth quarter of this year.

Genel reported progress in developing and commercializing its Miran and Bina Bawi assets. The Miran West field development is progressing for both oil and gas, with an extended well test for oil at Miran West seeing production at around 3,000 bopd. Bina Bawi saw an extended well test flow oil at an initial capacity of 5,000 bopd.

Genel's exploration activities saw a new oil discovery at the Chia Surkh field, testing flow rates of up to 11,950 bopd. The first appraisal well has spud here. The firm also has an extensive well testing program underway at Tawke Deep over more than 6,500 feet of previously untested Jurassic and Triassic sections.

Genel plans four more high impact wells in Kurdistan during 2013, targeting prospective resources of 1.5 billion barrels of oil equivalent.

Meanwhile, in Africa Genel is in advanced negotiations to secure a rig with 10 slots. It plans a drilling programme to start in late 2013, including wells in Morocco and Malta. The firm also has a 2D seismic data acquisition program underway in Somaliland.

Genel Energy Chief Executive Tony Hayward commented in a company statement:

"Genel has started 2013 strongly with a significant oil discovery at Chia Surkh, very encouraging results so far from our Bina Bawi appraisal wells and good progress made across the board in our major development projects. As political momentum continues to build and the construction of independent regional infrastructure moves forward rapidly, it is evident that 2013 is set to be a highly significant year for both Genel and the Kurdistan Region's oil and gas industry."

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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Friday, July 5, 2013

Genel Confirms Production Guidance for 2013

Genel Energy confirmed in an interim management statement Monday that its 2013 guidance remains unchanged. The firm expects to produce between 45,000 and 55,000 barrels of oil per day (bopd) along with revenue of between $300 and $400 million.

Genel said that its new working-interest production for the first quarter of 2013 averaged 37,000 bopd. The firm said that two fields in Iraqi Kurdistan in which it has an interest, Taq Taq and Tawke, averaged 73,000 bopd and 18,000 bopd respectively, with volumes affected by the New Year national holiday and maintenance work at Tawke.

Genel said that production capacity at its key Taq Taq and Tawke assets continues to grow, with Taq Taq's gross production capacity currently at 120,000 bopd and Tawke gross capacity at 100,00 bopd. Genel is targeting 200,000 bopd at both fields by the end of 2014.

Genel began exports to Turkey by truck of Kurdish oil in January. In Monday's statement the firm said it expected volumes exported to rise to 15,000/20,000 bopd during the rest of the year.

Meanwhile, Genel also reported that it had made significant progress with infrastructure developments, with the Taq Taq-Khurmala pipeline now complete. The second phase of this pipeline, from Khurmala to the Fishkabur pump station on the border with Turkey is under construction and will have an initial capacity of 300,000 bopd. The firm expects this to be completed during the fourth quarter of this year.

Genel reported progress in developing and commercializing its Miran and Bina Bawi assets. The Miran West field development is progressing for both oil and gas, with an extended well test for oil at Miran West seeing production at around 3,000 bopd. Bina Bawi saw an extended well test flow oil at an initial capacity of 5,000 bopd.

Genel's exploration activities saw a new oil discovery at the Chia Surkh field, testing flow rates of up to 11,950 bopd. The first appraisal well has spud here. The firm also has an extensive well testing program underway at Tawke Deep over more than 6,500 feet of previously untested Jurassic and Triassic sections.

Genel plans four more high impact wells in Kurdistan during 2013, targeting prospective resources of 1.5 billion barrels of oil equivalent.

Meanwhile, in Africa Genel is in advanced negotiations to secure a rig with 10 slots. It plans a drilling programme to start in late 2013, including wells in Morocco and Malta. The firm also has a 2D seismic data acquisition program underway in Somaliland.

Genel Energy Chief Executive Tony Hayward commented in a company statement:

"Genel has started 2013 strongly with a significant oil discovery at Chia Surkh, very encouraging results so far from our Bina Bawi appraisal wells and good progress made across the board in our major development projects. As political momentum continues to build and the construction of independent regional infrastructure moves forward rapidly, it is evident that 2013 is set to be a highly significant year for both Genel and the Kurdistan Region's oil and gas industry."

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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Thursday, July 4, 2013

CNOOC Starts Up Production at Wei Zhou

CNOOC Limited announced Monday that Wei Zhou 6-12 oil field has recently commenced production.

Weizhou 6-12 oil field is located in Beibu Gulf Basin in the north part of the South China Sea with an average water depth of about 95.8 feet (29.2 meters). The project has 10 producing wells and is expected to hit its peak production in 2013.

The Company holds 51 percent interest and acts as the Operator of Weizhou 6-12 oil field. The partners of this oil field are Roc Oil (China) Company, Horizon Oil (Beibu) Ltd (including Petsec Petroleum LLC) and Oil Australia Pty Ltd.

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Wednesday, July 3, 2013

Production Outages Hit Santos Revenues

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

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

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

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

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

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

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

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

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Sunday, June 30, 2013

Production Outages Hit Santos Revenues

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

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

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

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

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

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

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

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

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Tuesday, June 25, 2013

Gran Tierra Touts Record Production in Colombia

Gran Tierra Energy Inc., a company focused on oil exploration and production in South America, Wednesday provided updates for its production and exploration drilling in Colombia, Peru and Brazil.

"Gran Tierra Energy is pleased to start the year with record levels of production as we continue to successfully mitigate transportation disruptions in Colombia," commented Dana Coffield, president and Chief Executive Officer of Gran Tierra Energy. "Operationally, we believe the northern boundary of the Moqueta field has now been successfully delineated with the Moqueta-9 appraisal well. The balance of this year will focus on increasing water injection for pressure support and increasing production capacity from the field.  Once permits are in place, we can then direct our attention to appraising the eastern flank of the Moqueta structure, which remains undrilled. In Peru, the evaluation of our Bretaña Norte oil discovery continues, with initial testing of our well extension expected in the coming month, preliminary field development planning initiated, and long term testing expected to begin within a year. Our exploration program in the onshore Recôncavo Basin in Brazil, testing a new play with horizontal drilling and multi-stage fracture stimulation, is ongoing with results expected mid-year," concluded Coffield.

Average daily consolidated light and medium crude oil and natural gas production net after royalty (NAR) before inventory adjustments for the three months ended March 31, increased 21 percent to approximately 21,860 barrels of oil equivalent per day (boepd) NAR compared with 18,148 boepd NAR for the corresponding period in 2012. Approximately 97 percent was oil and natural gas liquids. First quarter production reflects increased production in all countries in which we are producing with the largest contribution to the increase from the Costayaco, Moqueta, and Surubi oil discoveries. This increase was partially offset by approximately 44 days of oil delivery restrictions due to disruptions in the Ecopetrol-operated Trans-Andean oil pipeline (the "OTA pipeline") in Colombia . Gran Tierra Energy continued production while the OTA pipeline was down, selling oil through an alternative pipeline and trucking and storing excess oil.

Average daily Colombian production of light and medium crude oil and natural gas for the three months ended March 31, 2013 increased 18 percent to approximately 17,850 boepd NAR before inventory adjustments, compared with 15,163 boepd NAR before inventory adjustments for the comparable period in 2012. The production is primarily from the Costayaco and Moqueta fields in the Chaza Block in which Gran Tierra Energy has a 100 percent working interest.

Additionally, preliminary indications show approximately 139,800 barrels NAR net liquidation of inventory during the quarter.  Inventory volumes will be finalized near the end of April 2013 and, as such, this figure is subject to change.

In Colombia, the Moqueta-9D appraisal well was spud on Jan. 20 to test the northwest extent of the Moqueta field. It discovered hydrocarbons in a different fault block, separate from the main Moqueta oil accumulation. The T-Sandstone tested gas and the combined Caballos and U-Sandstone formations tested oil and water. Further isolation testing on the Caballos and U-Sandstone formations will be conducted to define their hydrocarbon potential. These results, integrated with seismic and other wells drilled to date, indicate the well has defined the northern margin of the main Moqueta oil accumulation. The down-dip extent of the oil column to the west, south and east, and the lateral extent of the structure to the east, have not yet been defined by drilling, with this additional resource potential to be defined with our ongoing drilling campaign.

The Moqueta-10 well has begun drilling. This well will be used as a water injection well to assist with pressure support in the Moqueta field to support production growth from existing and future planned production wells. This well is being drilled to the far western flank of the field, and may provide additional information on the down-dip extent of the oil column in the primary reservoirs in the main block, which has not yet been determined. This well will be followed by Moqueta-11, which is planned to be a production well.

Gran Tierra Energy has initiated drilling of the horizontal side-track extension of the Bretaña Norte 95-2-1XD oil discovery well. Casing has been set at the top of the Vivian reservoir, where very high quality sands with very good oil shows were encountered, and the drilling of a 500 meter horizontal leg has been initiated. Upon completion, a short test will be conducted. Plans are ongoing to initiate long-term testing from this horizontal well, with production to be initiated within a year. In addition, a Preliminary Front End Engineering Design has been initiated for the Bretaña Norte field development to support reserves booking, with results expected before year-end.

Gran Tierra Energy's horizontal multi-stage fracture stimulation exploration drilling program in the Recôncavo Basin onshore Brazil is ongoing, with results of the program expected mid-year.

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Sunday, June 23, 2013

Huntington Field Starts Production

Premier Oil announced Monday that oil production has begun at the Huntington field in the UK zone of the central North Sea. After an initial ramp-up period, the field is expected to produce between 23,000 and 25,000 barrels of oil equivalent per day.

Premier holds a 40-percent interest in the field, while its operator, E.ON Exploration and Production holds 25 percent. Noreco and Iona Energy have 20 percent and 15 percent stakes respectively in Huntington.

Premier CEO Simon Lockett commented in a company statement:

"We are delighted to have achieved first oil from the Huntington oil field. This marks the first of four UK North Sea projects from our development portfolio which will come on-stream over the next few years.  We look forward to the field making a significant contribution to our worldwide production and cash flow growth."

The Huntington development is using the Voyageur Spirit FPSO vessel, a six-well subsea drilling template and a 7-mile gas export pipeline that is connected to the BP CATS transportation system.

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