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Max Petroleum plc, an oil and gas exploration and production company focused on Kazakhstan, announced that the ZMA-E6 development well in the Zhana Makat Field has successfully reached a total depth of 2,943 feet (897 meters), encountering hydrocarbons in Jurassic sandstone reservoirs in line with expectations. The Company plans to complete the well and then place it on production as soon as practicable. The Zhanros ZJ-20 rig will now move to drill the UTS-5 exploration well in the Uytas North Prospect on Block A, targeting resource potential of 11 million barrels of oil with a current geological chance of success of 24 percent.
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.Friday, August 2, 2013
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.Aker Appoints New VP for Subsea Greenfield Projects
Oilfield service provider Aker Solutions reported Tuesday that its UK operation has appointed a new vice president to lead subsea greenfield projects.
Aker said that Bob Shaw's appointment is the latest in a series of new senior management appointments at the firm's subsea business in Aberdeen, Scotland, as the company embarks on the next stage of its growth strategy.
Shaw will lead development of all greenfield projects, focusing on work for key clients who include Statoil, Petrobras, Total, Dana Petroleum and ENI.
Aker Solutions UK Managing Director Matt Corbin commented in a statement:
“This is a key appointment for our subsea business in the UK. We have won a number of major contracts in recent months and Bob will play an important role in realizing our strategy as we look to capitalize on further opportunities going forward."
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.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.
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.At Least 9 More Decades for North Sea Oil
Oil and gas production in the UK North Sea can continue until the end of this century provided the right government policy decisions are made, according to Scottish Energy Minister Fergus Ewing.
Speaking to Rigzone at the Offshore Technology Conference in Houston Tuesday afternoon, Ewing said:
"In domestic terms, the [Scottish] industry is having a second major opportunity with a huge number major new developments going ahead, some of which are extensions of existing developments. For example, the Clair Ridge field has the potential to produce oil until 2055 according to BP."
Clair Ridge is a project to further develop the Clair field with additional fixed platforms.
"The Clair field was actually discovered in 1977, and that's ironic because we were told by London that the oil would run out in the 90s, and then in the 90s that it was going to run out in the Noughties," Ewing said.
"I think it's a theme that's losing credibility because if BP comes along and says the Clair Ridge field will continue to produce until 2055 it's a bit liberal to say the oil is going to run out because it ain't."
Ewing said that there were "huge opportunities" domestically for the Scottish oil and gas sector that would keep oil and gas production going.
"My personal view is that oil and gas production [offshore Scotland] will continue for the rest of the century provided we make the right policy decisions," he said.
But Ewing insisted that fiscal stability is required and that a lot of damage to the sector was caused by the unexpected tax hikes that were introduced in the UK in 2011.
"Fortunately, a lot of that damage was undone the following year when the UK Treasury realized they had unsettled the whole industry, internationally, and shaken confidence in the viability of investing in the North Sea and west of Shetland. So, they then introduced measures on field allowances and decommissioning which we've welcomed. But in order to make sure that the longevity of the basin, especially in the southern North Sea, is as it should be there will no doubt be a need for more fiscal incentives than there are now," Ewing said.
"It's blindingly obvious that if it costs an extra $20 or $30 a barrel to get more oil out and if major operators have to invest hundreds of millions, if not billions, to do so then they have the choice of making that investment in fields where the oil does not cost an extra $20 or $30 a barrel, and therefore there does need to be a partnership between government and industry."
"The impression I get is that they realized they made a big mistake and they acted to try to correct that and with a deal of success. But the danger is that perhaps in the Treasury they feel that it is currently a situation of 'Problem solved!' and complacency is the most dangerous attitude that you can have in government because almost always the problems are more complex than you realize."
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.Lebanon Has 30 Trillion Cubic Feet of Offshore Gas
BEIRUT - Preliminary surveys of Lebanese offshore fields show reserves of 30 trillion cubic feet of natural gas and 660 million barrels of oil, Lebanon's energy minister said, adding that production could begin within four years.
Speaking at the Arab Economic Forum, Gebrane Bassil said scanning was now complete on 70% of the country's territorial waters--an area of some 15,000 square kilometers (5,791 square miles).
"In just 10% of that area... we have 30 trillion cubic feet (850 million cubic meters) of gas and 660 million barrels of oil," he said.
Speaking to AFP, Bassil said the amounts were "very large and promising as initial estimates."
Production from the reserves was linked to the speed of the exploration phases and installation of wells, but "theoretically ranges from three to seven years."
"If we meet all the deadlines, we hope to have completed the first exploration phase in the period between 2016 and 2017 and to begin thereafter development and production," he added.
Last month, Bassil announced the name of 46 firms that had qualified to bid on a first round of licenses to explore Lebanon's offshore fields, with 12 qualified to bid as operators.
The bidding round opened on May 2 and is scheduled to be completed by Nov. 4.
The process has been complicated by Lebanon's fragile political climate, with a caretaker government currently in charge, as Tammam Salam tries to form a consensus cabinet.
In January, Bassil said Lebanon hoped to have exploration contracts with international oil companies signed and sealed by the end of the year.
He has played down the risk of conflict with Israel over the potential reserves, despite a longstanding dispute over the maritime boundary between the two neighbors, which remain technically in a state of war.
In August, parliament passed a law setting Lebanon's maritime boundary and Exclusive Economic Zone.
But Lebanon has submitted to the United Nations a maritime map that conflicts significantly with one proposed by Israel, arguing that its map is in line with an armistice accord drawn up in 1949, an agreement not contested by Israel.
The disputed zone consists of about 854 square kilometers (330 square miles), and suspected energy reserves there could generate billions of dollars.
Lebanon has been slow to exploit its maritime resources compared with other eastern Mediterranean countries, with Israel, Cyprus and Turkey much further along in the process of drilling for oil and gas.
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.Petrobras Launches Sale of Bonds to Raise $11 Billion
SAO PAULO - Brazilian state-run energy giant Petroleo Brasileiro SA on Monday began its enormous 2013 financing campaign with one of the largest bond issues this year.
Petrobras, as the company is better known, on Monday launched the sale of $11 billion in bonds through six separate sets of bonds, with maturities of between three and 30 years, according to term sheets provided by fund managers.
There was sufficient demand for Petrobras' investment-grade bonds for the firm to have raised up to $40 billion, according to a person with knowledge of the transaction. The total size could still increase, as the company has an option to offer up to 5% more to Asian investors later in the day.
Investors had been preparing for the sale, as Petrobras has stated it aims to borrow about $20 billion this year and a similar amount next year to fund its ambitious $237 billion multi-year investment plan. The company is leading Brazilian efforts to develop huge offshore oil fields known as the pre-salt reserves.
"We reduced our Petrobras exposure significantly earlier this year in expectation of this issue," said Joon Hyuk Heo, head of global fixed income at Mirae Asset Global Investors, with more than $2 billion in emerging-market assets.
Prices on Petrobras' existing bonds have traded around 110 cents to the dollar in recent months from its 2012 high of 115 cents to the dollar--according to MarketAxess BondTicker data--on concerns about fresh supply and the level of government intervention in the company.
Mr. Joon said recent valuation on Petrobras' debt makes the deal attractive, but the longer-term outlook for commodities and Brazilian companies is less of a draw. Mr. Joon said Petrobras had an advantage in issuing floating rate notes, as they were rare and would drive up demand. He planned to buy the five-year tranche of the deal.
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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