Monday, 13 April 2015

Fracklog Gains More Acceptance In U.S Oil Production Deferment Strategies

Companies delaying the completion of wells that have been drilled are keeping 373,000 barrels a day of oil out of the market, energy intelligence firm Genscape Inc. said.
Six companies announced plans to defer completing a total of 845 drilled wells this year, Genscape said in a report Wednesday.
Some oil producers have responded to the 50 percent drop in crude prices since June by delaying the hydraulic fracturing of wells. This backlog of unfracked wells, known as a fracklog, can then be completed and brought online when prices have rebounded.

The Shell-BG Deal: Traces to Oil Market Low Positions

Oil companies have a knack for picking the bottom in crude prices, and history may be about to repeat itself.
Traders and analysts are speculating that Royal Dutch Shell Plc’s takeover of BG Group Plc for $70 billion announced Wednesday may be the first in a wave of acquisitions as Big Oil seeks to drive out costs following the rout in oil.

Saturday, 11 April 2015

Ghana Oil Refinery Breakdown a Symbol of Economic Woes

When it opened in 1963, Ghana's oil refinery symbolized pride and hope for the first African country to escape colonial rule. Now the plant stands idle in a sign of the economic shadow that has crept over one of the continent's brightest stars.
The discovery of oil in Ghana in 2007, added to its gold and cocoa wealth and its other major asset, stable democracy, gave it a chance to start catching up with oil giant Nigeria and regional West African economic powerhouse Ivory Coast.
The year after oil began flowing in 2010 economic growth spiked to 14.8 percent, one of the highest rates in the world.

Hercules Inks 5-Year Contract with Eni in W. Africa

Hercules Offshore announced that it has signed a five-year contract with a subsidiary of Eni S.p.A. for use of the Hercules 260 (250' ILC) in West Africa. The dayrate under the contract will range from a minimum of $75,000 per day when the price of Brent crude oil is $86 or less per barrel, to a maximum of $125,000 per day when the price of Brent crude oil is $125 or more per barrel. Contract commencement is expected in early April 2015. Costs for contract specific upgrades will be reimbursed by the operator.

Wednesday, 8 April 2015

Saipem and Dangote Form JV to Tap Central/West African Market



Italy's Saipem S.p.A. disclosed Wednesday that it has entered into a Joint Venture with Dangote Group, one of Africa’s leading companies, to create a new company named Saipem Dangote E&C. Saipem Dangote E&C is a significant new player in the Nigerian and Central/West African market, with high technical and financial capabilities. It aims to secure complex Engineering & Construction projects and ensure a realization capacity focused on efficiency, in terms of costs and timing, and flexibility, in order to respond to different needs related to specific projects, to local content and to the Country’s context. 

Monday, 6 April 2015

Breakthrough in hydrogen-powered cars may spell end for petrol stations

Scientists have dramatically increased the efficiency of producing clean hydrogen fuel from plant waste in a breakthrough that could one day lead to petrol stations being replaced by a network of roadside “bioreactors” for refuelling cars.

A study funded by Shell Oil has shown that it is possible to convert all 100 per cent of the sugar stored in corn stover – the stalks, cobs and husks leftover in a harvested maize field – into hydrogen gas with no overall increase in carbon dioxide emissions to the atmosphere.

The researchers perfected the process by mixing the raw biomass with a watery solution containing a cocktail of ten enzymes that turned the plant sugars xylose and glucose into hydrogen and carbon dioxide, said Professor Percival Zhang of Virginia Tech in Blacksburg, Virginia.

Previously it has only been possible to convert between 30 per cent and 60 per cent of the plant’s sugars into hydrogen using either fermenting microbes or industrial catalysts. However, the latest technique converts 100 per cent of the plant sugars into hydrogen, Professor Zhang said.

Producing pure hydrogen gas from crop waste and biomass is seen as one of the most important goals of the green economy because of the need to produce clean alternatives to petrol. However, existing methods are inefficient, costly and are dogged by the problem of how to distribute the hydrogen once it is made.

“All the products produced by the process are gases so they can be separated and collected easily from the biomass substrate. Over its lifecycle, the process is carbon neutral and we have achieved a 17-fold increase in the rate of the reaction which makes it economically viable,” Professor Zhang said.

“This means we have demonstrated the most important step toward a hydrogen economy – producing distributed and affordable green hydrogen from local biomass resources,” he said.

One of the critical developments in the process is being able to directly use “dirty” biomass as the fuel rather than relying on highly processed sugars as the source of hydrogen. In addition to being more efficient, this means it should also be possible to build large bioreactors the size of petrol stations near to sources of biomass, so leading to a network of green re-fuelling stations distributed around the country, Professor Zhang explained.

Friday, 3 April 2015

Total's Divestments in 3 Onshore Blocks in Nigeria Reaches $1B

Total's recent divestment of its interests in three onshore Oil Mining Leases (OML) in Nigeria, inlcuding OML 18 and OML 24, crossed $1 billion Monday after the French major completed the sale of its stake in OML 29 to local firm Aiteo Eastern E&P for $569 million. 

“The sale of these non-operated onshore blocks in Nigeria is yet another example of our strategy of dynamic portfolio management, achieved at attractive valuations,” Total's chief financial officer Patrick de La Chevardiere said in a press release. “These transactions also reduce our exposure to non-operated blocks onshore Nigeria, and allow us to focus on our core, operated developments, such as the Egina project.” Total has divested its interests in 11 onshore blocks to Nigerian companies since 2010 in accordance with the Nigerian government’s objective of developing Nigerian companies in the sector.    
Total has a 10 percent stake in several onshore blocks in Nigeria via the Shell Petroleum Development Company (SPDC) Joint Venture alongside the Nigerian National Petroleum Corporation (55 percent), SPDC (30 percent, operator) and Nigerian Agip Oil Company Limited (5 percent).