Libya update: co-ordinated militia attacks against Islamists

On 16 May, forces loyal to Colonel Haftar attacked the bases of two Islamist militias in the eastern Libyan city of Benghazi: Ansar al-Sharia and 17 February Martyrs BrigadeHaftar commands the "national army"Aim of attack to remove Islamist militias from BenghaziAnsar al-Sharia aims to impose Sharia law in LibyaAllied with 17 February Martyrs, who report to the GovernmentIn Western city of Tripoli, militias allied with the Zintan Brigade also moved in support of Haftar's actions and attached the General National Congress ("GNC")Colonel Obaidi,...

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Lekoil acquires 40% WI in Otakikpo Marginal Field

20 May 2014: Lekoil announced acquisition of 40% participating and economic interest in Otakikpo, a Nigerian onshore Marginal Field; located within OML11Vendor: Green EnergyConsideration: USD7m upfront, plus USD4m contingent on production and ministerial approvalLekoil will also fund work programme for re-entry of existing wells and all costs up to production (estimated c.USD67m); this is recoverable from enhanced share (88%) of production cash flowLekoil expects to bring Otakikpo into production within 12-18 monthsAcquisition and work...

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Oryx: Appraisal drilling update for Demir Dagh, Kurdistan

Oryx holds 65% WI in Hawler licence (Operator), KNOC (15%), KRG (20%)On 19 May 2014, announced test results for Demir Dagh-3 ("DD-3") and Demir Dagh-5 ("DD-5") wellsDD-3: all four tests flowed successfully; crude quality similar to that at DD-2 and -4Spudded in November 2013, 3km south-east of DD-2Will now be completed as producer with DD-2 and -4DD-5: Logging data and drilling fluid losses during drilling, only small amount of hydrocarbons recovered to surfaceFirst production from Demir Dagh Area expected Q2 2014DD-6 plus a further 4 appraisal/development...

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Petroceltic successfully completes USD100m placing

Joint book-runners are Davy, HSBC and MirabaudProceeds will be used to "provide financial flexibility to pursue growth opportunities across Petroceltic's existing portfolio and also through new ventures"Dovenby Capital will be a new strategic shareholder, subscribing to USD50m of the placingDovenby Captial is an investment company led by Dato' Ahmad Fuad, a Malaysian oil and gas industry specialistUpdate on assetsAlgeriaAin Tsila / Isarene PSC - tender for FEED at end 2013, farm-out to Sonatrach (pre-empted) - post farm-out Petroceltic...

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Keystone kills bipartisan energy bill

The Energy Savings and Industrial Competitiveness Act was proposed by Rob Portman, a Ohio RepublicanThe bill had aimed to reduce energy needs and cut emissions by offering incentives for adopting energy-saving technology such as water heaters with smart metersMore importantly, the bill had bipartisan supportAs the bill neared the vote, some Republicans tried to attach amendments to the bill to approve KeystoneHarry Reid (Democrat), Senate Majority Leader, refused the amendment and the amendment's supporters retaliated by blocking the main billTransCanada...

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Statoil divests its 5% WI in 15/06 Angola to Sonangol

Statoil announced on 12 May 2014 that it is divesting its 5% WI in Eni-operated Block 15/06 to Sonangol for USD200mStatoil's remaining licences in Angola are Blocks 17, 15, 31, 4/05, 22 (pre-salt), 25 (pre-salt) and  40 (pre-salt)Statoil is also operator of pre-salt Blocks 38 and 39In April 2014, Statoil also farmed down a 15% WI in Block 39 to WRG, a 50/50 JV between White Rose and Genel. Post transaction, interests will be Statoil (40%), Sonangol (30%), Total (15%) and WRG (15%)WRG also acquired, concomitantly, a 15%...

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Egypt: the gas conundrum

LNG exports have dwindled as domestic consumption has increased and upstream production has declined, primarily driven by the decline in the mature offshore fields in the Nile Delta which account for the majority of Egypt’s gas productionThe declines have been exacerbated by the IOCs moderating capex due to increased political uncertainty and build-up of outstanding payments from the GovernmentIncreasing investment in growing gas production is critical but unattractive fiscal terms have discouraged investmentAlthough in 2010, BP and RWE secured...

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