Tunisia E&P activity to slow amidst increased regulatory scrutiny

Tunisia's new constitution, passed in January 2014, includes Article 13 which requires natural resource agreements to be ratified by the National Constituent Assembly rather than the Industry MinisterProponents of Article 13 include President Marzouki's party, and is part of a trend towards growing scrutiny of decision making in the country's upstream sectorThis will add a new layer of approvals for investments, extension of permitting timelines and routine permission held backTunisia's upstream industry is characterised by...

Read More

Further Kashagan delays

Discovered in 2000; project partners are Eni, Total, Shell, XOM (each with 16.8%), KMG (16.9%), CNPC (8.3%), INPEX (7.6%)USD50bn spent on Phae 1; production originally expected to start in 2006 but has been plagued by delays and cost overrunsProduction commenced in September 2013, but subsequently shut down due to leaks of hydrogen sulphide from the extensive gas networkKazakhstan environment ministry will fine the Kashagan companies USD735m for burning gas emptied from the pipeline - the companies have said they will appeal...

Read More

Cobalt makes Orca discovery in Kwanza Basin

Cobalt has 40% WI in Blocks 9, 20 and 21 offshore AngolaIn the company's Q1 results (1 May 2014), Cobalt announced that it had successfully tested the Orca-1 well which flowed at a constrained rate of 3,700bopd + 460mcmpdOrca-1 lies in Block 20 and is the largest discovery to date in the Kwanza Basin; Orca is estimated to hold 400-700mmboeOn Block 21, Cobalt recently began drilling the Cameia-3 well with the field expected to reach first oil in 2017The Cameia-1 discovery was drilled made in 2012 and the Cameia-2 appraisal was drilled in 2013On...

Read More

Libya plans "smart cards" to stop fuel smuggling

Gaddafi introduced subsidies on items from fuel to bread and airline tickets to discourage oppositionThe subsidies, together with public salaries take up more than half of the national budgetCitizens have been subsidised buying fuel and smuggling into Tunisia for resale at higher pricesWith shutdown of oil fields and ports since mid-2013, crude export revenues are drying up and the government is proposing a fuel card system to parliament that will limit the amount of subsidised fuel that can be boughtEgypt has recently implemented such a fuel...

Read More

Sinopec and China Huadian acquire 15% stake in Petronas' Pacific NorthWest LNG project

Sinopec and China Huadian, one of China's largest power companies, have agreed to acquire a 15% stake in Petronas' proposed Pacific NorthWest LNG project, BCThe acquisition also includes the 15% associated interest in Petronas' Montney positionSinopec has also entered into a Heads of Agreement to purchase an additional 3mmtpa of LNG for 20 years sourced primarily from the Pacific NorthWest LNG project Following Petronas' acquisition of Progress Energy in 2012 for CAD5.5bn, the company announced its intention reduce...

Read More

Encana divests more gas assets

On 31 March 2014, Encaca sold its interests in the Jonah Field to TPGOn 29 April 2014, Encana announced the sale of further gas assets in US L48 to an undisclosed buyerEncana has adopted strategy known as "Getting Back to Winning", focusing on liquids-rich opportunities/higher returns at times of weak gas pricingPE buyers continue to pick up gas assets - after low risk, long-lived cash generating assets, potential for cost efficienciesWith absence of shareholder pressure, PE buyers can hold assets and take longer-term view on gas pricesPE can also...

Read More

OMV farms-in to Tullow Madagascar blocks

On 30 April 2014, OMV announced the acquisition of a 35% WI in Block 3109 (Mandabe) and Block 3111 (Berenty) from TullowTullow will retain 65% WI and remain OperatorBlock 3109: 2D to be shot in 2014Block 3111: First well to be spud in Q1 2015The acquisition continues OMV's strategy of "build[ing] up a new exploration business in the region of Sub-Saharan Africa"In August 2013, OMV farmed into a 40% WI in Niko's Grand Prix PSC, offshore Madagascar (Niko 35% WI), EnerMad (25% WI)In December 2013, OMV farmed into Ophir's exploration...

Read More