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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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...

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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...

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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...

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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...

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