Is Busta a bust?

Exploration well on the Busta prospect on PL782S has been drilled in 127m of water in the Jotun-Balder area of the Norwegian North Sea. It appears to be a marginal discovery with preliminary resource estimates of 6-60mmboe (vs. pre-drill 50-200mmboe). Two separate gas/condensate and oil-bearing intervals totaling ~25m were encountered -the primary target hitting the reservoir with the secondary target water bearing. Busta is...

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SNE partners buy FPSO

Cairn and FAR have announced a material increase in the capex for the SNE development from USD2.2 billion to USD3.7 billion (plus USD500 million contingency) for Phase 1. This has been driven by the partners' decision to buy an FPSO rather than lease it. This does however bring the opex down, estimated form c.USD14/boe to c.USD11/boe. FID is expected to be taken at the end of 2019 with first oil forecast for late 2022. The development will...

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European gas storage is full

European gas storage is full and Equinor has highlighted three potential catalysts that could provide short term relief for the current super low European gas prices A delay to Nord Stream 2 due to sanctions The lack of a transit agreement with Ukraine A colder than expected winter The Nord Stream 2 project was expected to come onstream on 1 January 2020. However with ongoing concerns that the EU's reliance on Russian gas continues to grow...

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Cameron LNG Commences Commercial Operations For Train 1 Of Liquefaction-Export Project

Cameron LNG to Start Recognizing Revenues from Train 1 Sempra Energy's Share of Full-Year Run-Rate Earnings from the First Three Trains are Projected to be Between $400 Million and $450 Million Annually Press release as follows: Sempra LNG, a Sempra Energy subsidiary, today announced that Cameron LNG's first train of the liquefaction-export project in Hackberry, Loiusiana, has begun commercial operations under Cameron LNG's tolling agreements. "This...

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PNG seeks to renegotiate Papua LNG

The PNG Minister for Petroleum issues the below release on re-opening the Papua LNG terms for negotiation. PRESS RELEASE STATE TEAM HEADING OUT TO RE-NEGOTIATE WITH TOTAL The National Executive Council has authorized a State Negotiating Team (SNT) lead by the Minister for Petroleum, Kerenga Kua, to head off to Singapore to seek to re-negotiate the terms of the Papua LNG Gas Agreement previously signed on 19 April 2019. The SNT left today 15 August for Singapore. The Papua Gas Agreement was signed by the previous O'Neill led Government inside...

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European TTF breaks through historical boundaries

S&P has highlighted in its recent webinar that the European TTF price has historically traded within a range but that recent gas pricing dynamics has seen it break out of this range. TTF has historically been bound by the JKM price as a ceiling (spot LNG price in Asia) and the coal switching price as a floor. In a tight gas market, TTF traded closer to the JKM price to incentivise LNG supplies into Europe In a loose gas market, TTF traded...

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Warwick duster in the West of Shetlands

Hurricane Energy plc, the UK based oil and gas company focused on hydrocarbon resources in naturally fractured basement reservoirs, provides an update in relation to the 205/26b-13Z ("Warwick Deep") well. Following completion of drill stem testing of the Warwick Deep well, the decision has been made to plug and abandon the well. The Warwick Deep well was drilled to a total depth of 1,964m TVDSS and included a 712m horizontal section of fractured...

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