Baghdad Blasts Turkey/Kurdistan Deal

ISTANBUL - A Turkish state-run oil firm struck a deal with Exxon Mobil Corp. and Iraq's semiautonomous Kurds to develop projects in northern Iraq, Turkey's leader said Tuesday, an agreement fraught with political risks for the energy-rich region. 

The deal thrust Turkey into a long-standing feud between Iraq's central government and the Kurdistan Regional Government over who has rights to northern Iraq's vast energy resources and raised tensions with Baghdad, which called it illegal. 

The deal could help underpin a peace accord that Turkey is negotiating to end a three-decade conflict with its own Kurdish population as it enters a delicate phase, analysts say. It could also help Turkey meet rising energy demand and raise Ankara's sway in the oil-rich region next door. 

Prime Minister Recep Tayyip Erdogan's announcement came two days before he was scheduled to meet in Washington with President Barack Obama, whose support could help propel the deal forward. 

The White House is caught between a desire to support the aspirations of Turkey, a Washington ally, and trepidation that empowering regional Iraqi authorities like the Kurds could alienate Iraq Prime Minister Nouri al-Maliki, who is seeking to extend Baghdad's influence across the divided country. 

U.S. officials also fear setting a precedent for allowing regional governments to strike independent resource deals could destabilize Mr. Maliki's government during a time when Sunni-Shiite tensions in Iraq are mounting. 

The Obama administration called for talks between Iraq's central government and the regional Kurdish government to resolve the issue. "Our position on energy trade from Iraq has been consistent and remains unchanged: The United States doesn't support oil exports from any part of Iraq without the appropriate approval of the federal Iraqi government," said Caitlin Hayden, a spokeswoman for the National Security Council. 

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Revised Hydraulic Fracturing Rule Available for Comment Period

An updated draft rule that would empower the Bureau of Land Management (BLM) to regulate hydraulic fracturing on U.S. federal and Indian lands will be made available for an additional 30-day public comment period before the rule is finalized.

The "common sense" regulatory update is needed to bring rules originally written in the time of Sony Walkmans and Atari video games into the 21st century, Secretary of the Interior Sally Jewell told reporters in a conference call on Thursday.

"Regulations need to keep pace with advances in technology," said Jewell, noting her oil and gas industry experience and knowledge of how hydraulic fracturing works and the need to safely tap U.S. oil and gas resources.

BLM, an agency within the Department of Interior (DOI), initiated plans to update federal hydraulic fracturing regulations in late November 2010, when federal and state officials and NGO representatives discussed the need to modernize hydraulic fracturing regulations. Using information gathered from eight public forums across the United States and consultation with tribal officials, an initial proposed rule was written and released in May 2012, said DOI Deputy Secretary David J. Hayes during the conference call.

The updated proposed rule takes into account the more than 177,000 comments gathered in a 120-day comment period last year from the oil and gas industry, tribal officials, and other stakeholders. In January, BLM said it would publish an updated proposal to maximize flexibility, facilitate coordination with state practices and ensure operators utilize best practices on public lands.

"We look forward to receiving additional comments, and feel it is important to move forward as stewards of the state with sound regulations," Hayes noted.

The updated rule focuses solely on hydraulic fracturing and retains the three main components of the original proposal, requiring operators to disclose the chemicals they use in hydraulic fracturing, improving assurances for wellbore integrity to confirm that fluids are not contaminating groundwater, and requiring oil and gas operators to have a water management plan in place to handle flowback water.

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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.

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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.

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Revised Hydraulic Fracturing Rule Available for Comment Period

An updated draft rule that would empower the Bureau of Land Management (BLM) to regulate hydraulic fracturing on U.S. federal and Indian lands will be made available for an additional 30-day public comment period before the rule is finalized.

The "common sense" regulatory update is needed to bring rules originally written in the time of Sony Walkmans and Atari video games into the 21st century, Secretary of the Interior Sally Jewell told reporters in a conference call on Thursday.

"Regulations need to keep pace with advances in technology," said Jewell, noting her oil and gas industry experience and knowledge of how hydraulic fracturing works and the need to safely tap U.S. oil and gas resources.

BLM, an agency within the Department of Interior (DOI), initiated plans to update federal hydraulic fracturing regulations in late November 2010, when federal and state officials and NGO representatives discussed the need to modernize hydraulic fracturing regulations. Using information gathered from eight public forums across the United States and consultation with tribal officials, an initial proposed rule was written and released in May 2012, said DOI Deputy Secretary David J. Hayes during the conference call.

The updated proposed rule takes into account the more than 177,000 comments gathered in a 120-day comment period last year from the oil and gas industry, tribal officials, and other stakeholders. In January, BLM said it would publish an updated proposal to maximize flexibility, facilitate coordination with state practices and ensure operators utilize best practices on public lands.

"We look forward to receiving additional comments, and feel it is important to move forward as stewards of the state with sound regulations," Hayes noted.

The updated rule focuses solely on hydraulic fracturing and retains the three main components of the original proposal, requiring operators to disclose the chemicals they use in hydraulic fracturing, improving assurances for wellbore integrity to confirm that fluids are not contaminating groundwater, and requiring oil and gas operators to have a water management plan in place to handle flowback water.

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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.

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PA Resources Welcomes New CEO

The Board of Directors of PA Resources has decided with immediate effect to appoint Board member Philippe R Probst as the company's CEO. Bo Askvik is thereby leaving his position as CEO but will be available to the company for a number of months. Philippe R Probst will be CEO during an interim period and the Board intends to start immediately on the work of recruiting a permanent CEO.

It is well known that PA Resources has been in a vulnerable financial situation for some time. The ownership structure changed during the spring and the company acquired an almost entirely new Board at the Annual General Meeting May 14.

The newly appointed Chairman of the Board, Sven A Olsson, commented: "With a new Board and a changed ownership structure, it is natural to also replace the CEO."

Philippe R Probst, who has been appointed CEO, has many years of experience of the oil industry with a past which includes Exploration and Production Manager within the Shell Group as well as a position with the Swiss oil company Addax. He presently acts as advisor to companies mainly in Africa and the Middle East.

The new Board and CEO will work to create a long-term stable foundation for the continued operations of PA Resources.

As already announced, Tomas Hedström has been appointed as CFO of the company and took up his position May 2.

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Petroceltic to Farm out More of Isarene

North Africa and Mediterranean-focused Petroceltic International reported Friday that it is close farming out a further 18.375-percent interest in its Isarene Permit, onshore Algeria. The Isarene Pemit contains the Ain Tsila gas and condensate field.

Petroceltic said the farm-out process is "substantially complete", but is still subject to partner and regulatory approvals that could take several months. The firm also said that it would be seeking to complete the farm-out prior to it transferring its shares to the official lists of the UK Listing Authority and the Irish Stock Exchange in order to make the farm-out process smoother.

Petroceltic Chief Executive Brian O'Cathain commented in a statement:

"The second Ain Tsila farm-out is a major commercial milestone for Petroceltic. The company's decision to give it priority over the listing at this time is a prudent measure to help ensure the farm-out moves forward smoothly in the months ahead. We are still fully committed to the listing."

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Petroceltic to Farm Out More of Isarene

North Africa and Mediterranean-focused Petroceltic International reported Friday that it is close farming out a further 18.375-percent interest in its Isarene Permit, onshore Algeria. The Isarene Pemit contains the Ain Tsila gas and condensate field.

Petroceltic said the farm-out process is "substantially complete", but is still subject to partner and regulatory approvals that could take several months. The firm also said that it would be seeking to complete the farm-out prior to it transferring its shares to the official lists of the UK Listing Authority and the Irish Stock Exchange in order to make the farm-out process smoother.

Petroceltic Chief Executive Brian O'Cathain commented in a statement:

"The second Ain Tsila farm-out is a major commercial milestone for Petroceltic. The company's decision to give it priority over the listing at this time is a prudent measure to help ensure the farm-out moves forward smoothly in the months ahead. We are still fully committed to the listing."

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