Centrica Reports Good Performance from Upstream Activities

UK integrated energy firm Centrica reported Monday that the performance by its international upstream gas and oil business has been good so far this year.

In a trading update, Centrica said it expects total production from existing assets to be around 75 million barrels of oil equivalent in 2013, up from 67 MMboe in 2012. It added that it expects the package of Western Canadian Sedimentary Basin conventional gas and crude oil assets it is acquiring from Suncor to produce around 15 MMboe in 2013.

Meanwhile, the firm noted that it achieved first gas from its York and Rhyl fields during the first quarter of the year, while its other approved projects – Key, Grove, Valemon and Cygnus – remain on track to bring 86 Mmboe of reserves into production over the next three years.

In exploration, Centrica noted that two out of three wells drilled during the first quarter were successful.

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Centrica Reports Good Performance from Upstream Activities

UK integrated energy firm Centrica reported Monday that the performance by its international upstream gas and oil business has been good so far this year.

In a trading update, Centrica said it expects total production from existing assets to be around 75 million barrels of oil equivalent in 2013, up from 67 MMboe in 2012. It added that it expects the package of Western Canadian Sedimentary Basin conventional gas and crude oil assets it is acquiring from Suncor to produce around 15 MMboe in 2013.

Meanwhile, the firm noted that it achieved first gas from its York and Rhyl fields during the first quarter of the year, while its other approved projects – Key, Grove, Valemon and Cygnus – remain on track to bring 86 Mmboe of reserves into production over the next three years.

In exploration, Centrica noted that two out of three wells drilled during the first quarter were successful.

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Centrica Energy Appoints New Upstream MD

The UK's Centrica Energy announced Tuesday that Sarwjit Sambhi will succeed Jonathan Roger as the managing director of Centrica Energy Upstream at the end of June.

Sambhi is currently Centrica Energy's director of major capital projects and currently oversees development and delivery across the firm's portfolio of exploration and production projects, as well as power projects.

Sambhi commented in a company statement:

"This is an exciting time to be leading Centrica Energy's upstream business. As we integrate our international operations, we will be making major investment decisions which will shape the future of the business and help secure energy supplies for the UK. With a team that includes some of the highest performing individuals in the industry, I have no doubt that the business has a successful future ahead."

Roger has been MD of the upstream unit for three years.

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Repsol's Upstream Unit Sees Strong Growth

Spain's Repsol reported Thursday that its upstream division saw an improved performance in all metrics during 2012.

Repsol's total production increased 11 percent during the year, with average production reaching 332,435 barrels of oil equivalent per day. The firm's reserve replacement ratio reached a record high of 204 percent.

Repsol said it completed the execution of four of its 10 key projects from its 2012-to-2016 strategic plan, which was announced in May 2012. It added new production from Bolivia (Margarita-Huacaya), the US (Mid-Continent) and Spain (Lubina and Montanazo). The company also added assets in Russia through its AROG joint venture.

The firm also highlighted five new discoveries during the year, including: Pão de Açucar in Brazil, the Sagari discovery in Peru,TIHS1 in Algeria, and Chipirón T2 and Cano Rondón East in Colombia. Repsol said these discoveries mean it has exceeded the annural resources incorporation goal it set in its strategic plan.

Meanwhile Repsol began commercial production at the giant Sapinhoá field in Brazil at the start of this year. It expects this field to reach an output of 120,000 barrels of oil equivalent during the first development phase.

Repsol results for 2012 showed it made a net profit of $2.7 billion – which was down 6.1 percent on 2011 (although the since-nationalized Argentinian subsidiary YPF contributed to 2011's figure). The firm's operating revenue during the year was 13.2 percent greater than that for 2011 at $78 billion.

On Tuesday this week, Repsol reported that it had sold several of its liquefied natural gas assets to Royal Dutch Shell for $6.7 billion. The firm said that the sale of these assets means that it has more than met its asset divestment targets that are part of the 2012-to-2016 strategic plan announced in May 2012.

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

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Repsol Boosts Funds for Upstream with LNG Asset Sale

Spain's Repsol announced late Tuesday that it is selling several of its LNG assets for $6.7 billion to Royal Dutch Shell. The funds will be used by the firm to boost organic growth in its upstream division as detailed in its

2012-2016 strategic plan

published last May.

The agreement, which will generate a $3.5 billion pre-tax capital gain for Repsol, will see assets in Trinidad & Tobago (Atlantic LNG), Peru LNG and Bahia de Bizkala Electricidad pass over to Shell. Repsol and Shell have also agreed a 10-year LNG supply contract to the Canaport regasification terminal in Saint John, Canada, which will remain with Repsol.

Repsol said that its exploration and production unit is now the company's main growth engine, centered on 10 key growth projects that include some of Repsol's most significant exploration successes of recent years.

The firm pointed out that it will continue to maintain significant exploration and production activity in the countries where it has sold LNG assets. In Peru it recently made an important discovery at Sagari, in block 57, with preliminary resources estimates of up to two trillion cubic feet of gas. In Trinidad and Tobago production is ongoing and Repsol is drilling new wells and exploring options to obtain new licenses to added to the seven blocks where it is already active.

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

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Total to Spend 80% of $28B Budget on Upstream in 2013

Total reported Wednesday that it will spend more than 80 percent of its organic investment budget for 2013 of $28 billion on its upstream activities.

The French major said it expected to achieve production growth targets of 3 percent per year, on average, through to 2015 and that it would potentially achieve 3 million barrels of oil equivalent per day (boepd) by 2017. In 2012, the company produced an average of 2.3 million boepd compared with 2.35 million boepd in 2011.

Total said its production growth should be fueled by 2012 start ups as well as anticipated 2013 start ups, including Anguille in Gabon, Angola LNG, Kashagan in Kazakhstan and the extension of OML 58 in Nigeria.

Meanwhile, the firm said that it is continuing to work in cooperation with the UK authorities towards "a safe and progressive" restart of the Elgin-Franklin field during the first quarter of 2013. Total confirmed that it suffered a three percent decline in its total production due to the Elgin gas leak incident in the North Sea as well as flooding affecting its Nigeria operations.

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

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Total to Spend 80% of $28B Budget on Upstream in 2013

Total reported Wednesday that it will spend more than 80 percent of its organic investment budget for 2013 of $28 billion on its upstream activities.

The French major said it expected to achieve production growth targets of 3 percent per year, on average, through to 2015 and that it would potentially achieve 3 million barrels of oil equivalent per day (boepd) by 2017. In 2012, the company produced an average of 2.3 million boepd compared with 2.35 million boepd in 2011.

Total said its production growth should be fueled by 2012 start ups as well as anticipated 2013 start ups, including Anguille in Gabon, Angola LNG, Kashagan in Kazakhstan and the extension of OML 58 in Nigeria.

Meanwhile, the firm said that it is continuing to work in cooperation with the UK authorities towards "a safe and progressive" restart of the Elgin-Franklin field during the first quarter of 2013. Total confirmed that it suffered a three percent decline in its total production due to the Elgin gas leak incident in the North Sea as well as flooding affecting its Nigeria operations.

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

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

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Total to Spend 80% of $28B Budget on Upstream in 2013

Total reported Wednesday that it will spend more than 80 percent of its organic investment budget for 2013 of $28 billion on its upstream activities.

The French major said it expected to achieve production growth targets of 3 percent per year, on average, through to 2015 and that it would potentially achieve 3 million barrels of oil equivalent per day (boepd) by 2017. In 2012, the company produced an average of 2.3 million boepd compared with 2.35 million boepd in 2011.

Total said its production growth should be fueled by 2012 start ups as well as anticipated 2013 start ups, including Anguille in Gabon, Angola LNG, Kashagan in Kazakhstan and the extension of OML 58 in Nigeria.

Meanwhile, the firm said that it is continuing to work in cooperation with the UK authorities towards "a safe and progressive" restart of the Elgin-Franklin field during the first quarter of 2013. Total confirmed that it suffered a three percent decline in its total production due to the Elgin gas leak incident in the North Sea as well as flooding affecting its Nigeria operations.

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

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Shell Continues with Drive to Grow Upstream

Royal Dutch Shell reported Thursday that it is to continue with its strategic drive to grow its upstream businesses, with ongoing "selective" investment in its downstream activities.

Shell said it has around 30 new projects under construction, which it believes will unlock some seven billion barrels of resources. After ending 2012 with production averaging 3.4 million barrels of oil equivalent per day, Shell believes it is set to achieve around four million boepd in 2017/2018.

"With the first year of our 2012-2015 growth targets completed, Shell is on track for plans we set out in early 2012, despite headwinds last year," Shell CEO Peter Voser commented in a statement.

"Shell is competitive and innovative. We are delivering a strategy that others can't easily repeat, with unique skills in technology and integration and a worldwide set of opportunities for new investment."

For 2013, Shell expects to make an net capital investment of $33 billion. $12 billion of this will go into what it calls its upstream and downstream "engines" – the mature, cash-generative businesses in Shell. Some $18 billion will be directed at "growth priorities": integrated gas, deepwater and resource plays. Another $4 billion will be invested in 2013 in "future opportunities" such as Nigeria onshore, Kazakhstan, Iraq, the Arctic and heavy oil.

In a separate statement, the company reported that it had suffered a fall in its profit (on a 'current cost of supplies' basis) of six percent in 2012 to $27 billion.

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

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

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Shell Continues with Drive to Grow Upstream

Royal Dutch Shell reported Thursday that it is to continue with its strategic drive to grow its upstream businesses, with ongoing "selective" investment in its downstream activities.

Shell said it has around 30 new projects under construction, which it believes will unlock some seven billion barrels of resources. After ending 2012 with production averaging 3.4 million barrels of oil equivalent per day, Shell believes it is set to achieve around four million boepd in 2017/2018.

"With the first year of our 2012-2015 growth targets completed, Shell is on track for plans we set out in early 2012, despite headwinds last year," Shell CEO Peter Voser commented in a statement.

"Shell is competitive and innovative. We are delivering a strategy that others can't easily repeat, with unique skills in technology and integration and a worldwide set of opportunities for new investment."

For 2013, Shell expects to make an net capital investment of $33 billion. $12 billion of this will go into what it calls its upstream and downstream "engines" – the mature, cash-generative businesses in Shell. Some $18 billion will be directed at "growth priorities": integrated gas, deepwater and resource plays. Another $4 billion will be invested in 2013 in "future opportunities" such as Nigeria onshore, Kazakhstan, Iraq, the Arctic and heavy oil.

In a separate statement, the company reported that it had suffered a fall in its profit (on a 'current cost of supplies' basis) of six percent in 2012 to $27 billion.

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