EnQuest agrees Thistle decommissioning with BP

Following on from last year's acquisition from BP, EnQuest has agreed with BP to undertake the management of the decommissioning activities for Thistle and Deveron. EnQuest will receive USD30 million in cash for management of the decommissioning and for taking on 3.7% of the gross decommissioning costs of the Thistle and Deveron fields, subject to a cap of USD80 million. EnQuest estimates its exposure to costs is currently less than the cash being received. EnQuest also has an option, exercisable over a 12-month period, to receive a further USD20...

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Endeavour endangers Alba sale for Statoil and Mitsui

Statoil and Mitsui started marketing their stakes in the Alba heavy oil field in the North Sea at the end of 2017. The field is located in a complex reservoir and developed from a steel platform tied to a floating storage unit. The field has been marketed by partner Endeavour before without success. Endeavour put its stake up for sale in 2015 but failed to attract sufficient interest. Sources have revealed that interest in the current sales...

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Kurdistan payments and new oil sales agreements

Kurdistan producers receive payment for October sales Gulf Keystone signs new oil sales agreement with the KRG DNO has reported a payment of USD54 million for Tawke production from the Kurdistan Regional Government. This is in respect of October oil deliveries. The payment will be shared between the licence partners WHO 75% and Genel 25%. Although there is a lag in payments between production and receipt, this is viewed as normal with October sales invoiced in November and approval by the Government in December with payment the following month....

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VNG to evaluate options for its Norwegian E&P business

As widely expected, VNG's owner EnBW is looking for a partner or buyer for its E&P business VNG - full press release below. As part of VNG Group’s strategic programme “VNG 2030+”, VNG – Verbundnetz Gas Aktiengesellschaft (VNG AG) will explore strategic options for its oil and gas exploration and production business in Norway and Denmark, VNG Norge AS (“VNG Norge”). As VNG AG sees long term value creation potential in the E&P-business,...

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Norway awards record 75 exploration licences in 2017 APA

Norway has awarded a record number of 75 exploration licences in the APA 2017 licensing round to 34 companies. The licences comprised 45 in the Norwegian North Sea, 22 in the Norwegian Sea and 8 in the Barents Sea. Statoil was the biggest winnder with 31 awards. Supermajors ConocoPhillips, ExxonMobil, Shell and Total also picked up licences. Of the E&Ps: Aker BP was the winner with 23 licences (14 as operator) Lundin has been awarded 14 licences (5 as operator) DNO has been awarded in 10 licences Faroe Petroleum has been awarded 8 licences...

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Canadian LNG: Wrong place wrong time for Petronas

Petronas entered Canada in 2011 to build a full upstream gas and LNG business. It did this in the face of declining domestic production and need to source international gas for both domestic consumption and its LNG trading portfolio. It made a move in June 2011 to partner with Progress Energy for CAD1.1 billion by agreeing to fund the majority of future drilling and capital expenditure on the company’s vast acreage position in the Montney play....

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Tullow ventures into Peru

Tullow has farmed into Karoon Gas' 35% of Block Z-38 in Peru. This reduces Karoon Gas' interest to 40% with Pitkin Petroleum being a 25% partner. Tullow has acquired the 35% interest in return for: Funding 43.75% of the cost of the first exploration well, capped at US$27.5m (for 100% cost of well) after which Tullow will pay its 35% share; and US$2m payable upon completion with US$7million payable upon declaration of commercial discovery...

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US LNG: a snapshot of where things stand in 2018

US shale has been a game changer for the gas markets. Often overshadowed by oil story, US gas production is the unloved sibling of oil – oversupplied, low prices, unprofitable and sometimes an unwanted by-product of oil production in the form of associated gas. However 2017 came to demonstrate the vast potential for US gas and a complete change in direction with the country becoming a net exporter of gas for the first time. This started with...

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