Troubles at Jubilee

Jubilee FPSO On 18th February, Tullow and Kosmos warned of a potential maintenance issue with the Jubilee FPSO’s turret. At this stage oil production and gas export is continuing as normal but the vessel is now set to be held in position by tugs rather than weathervane. The implications are that the turret may require maintenance that results in unscheduled shut-in and additional costs to rectify the issue. The length of any repair work is not...

Read More

Senegal offshore reaches threshold for commerciality

On 8th February, FAR Ltd announced an updated independent resource report (by RISC) of the SNE discovery offshore Senegal (Cairn 40%, ConocoPhillips 35%, FAR 15% and Petrosen 10%). The report increases contingent resources for the discovery to 240mmbbl 1C (from 150mmbbl), 468mmbbl 2C (from 330mmbbl) and 940mmbbl (from 670mmbbl). This assessment includes the SNE-1 discovery well and subsequently reprocessed (more accurate) 3D seismic. Significantly...

Read More

KRG switches to PSC terms to conserve cash outflows to IOCs

Kurdistan exports and payments to IOCs remain unpredictable with the situation subject to change on a daily basis. The Kurdistan Regional Government’s (“KRG”) monthly export report and news flow from the E&Ps gives a glimmer into the dynamics of operating in and getting paid in Kurdistan. On 4th February, the KRG published its January 2016 monthly export report – the KRG exported 602mbbl/d through the Kurdistan pipeline network to the port...

Read More

Lundin CMD: Why doesn't the market understand?

On 3rd February, Lundin Petroleum held its Capital Markets Day, which included new guidance on capex, opex, production profiles and 2016 drilling plans. However, greatest emphasis was placed upon a review of the company's tax position, and the benefit of the weakening Krona on costs.  The CEO expressed strong frustration with shareholders and the low valuation being attributed to the company, remarking that closer examination of the company’s...

Read More