Worldnews
February2014
February
2014
OilfieldTechnology
|
5
Inbrief
Shell callsahaltonAlaskaexplorationprogramme
Royal DutchShell hasannounced that, aspart of itsongoingdivestmentprogramme, itwill
bring itsAlaska-focusedexplorationactivities toanend.
Theannouncement comesafter thecompany released its firstprofitwarning in10years
and revealed that itsnewChief ExecutiveBenvanBeurdenwasputting forward “anagenda
for sharperperformanceand rigorousdiscipline.”Thecessationof Shell’sAlaskanexploration
programme,whichhas cost thecompanyapproximatelyUS$6billion,will likelybeheralded
asavictorybyenvironmental campaigners. Theprogrammehadbeenmarredbydelaysand
technical problems,most notablywith the
Kulluk
drilling rig,which ranagroundearly last year.
Theprogramme recently sufferedanother setbackwhenaUS federal court ruled that the
full rangeof environmental riskshadnot yetbeen fully reviewed. According toShell, the ruling
raised “substantial obstacles to [thecompany’s] plans fordrilling inoffshoreAlaska.”
Referring to the ruling, vanBeurdencommented, “This isadisappointingoutcome, but
the lackof aclearpath forwardmeans that I amnotprepared tocommit further resources for
drilling inAlaska in2014.Wewill look to relevant agenciesand thecourt to resolve theiropen
legal issuesasquicklyaspossible.”vanBeurden stated that this yearwould show thecompany
“changingemphasis, to improve [its] returnsandcash flowperformance.”
Headded, “Our ambitiousgrowthdrive in recent yearshas yieldeda stepchange inShell’s
portfolioandoptions,withmoregrowth tocome, but at the same timewehave lost some
momentum inoperational delivery, andwecan sharpenup inanumberof areas.”
Thecompany’s full year earnings fell toUS$16.7billion, down fromUS$27billion in the
previous year.
Hesssellsdrygasacreage
Independent energycompany,HessCorp.
hasannounced that it agreed to sell
approximately74000acresof drygas
acreageacross theUticaShale. Theacreage,
valuedatUS$924million, is tobe soldoff to
anundisclosedcompany.
Themajorityof the finance isexpected
towards theendofQ1, 2014,with the
remainder tobeprovided inQ3.
According toHess, proceeds from
the salewill beused for additional share
repurchases.
HessCEO, JohnB.Hess said, “The
saleof ourUticadrygasacreage isan
exampleof our continuedcommitment to
grow shareholder value throughongoing
portfolio reshaping.Whileourwells in the
drygasportionof theUticawerehighly
productive,weconcluded that thepotential
returns from suchan investment at current
projectednatural gasprices, no longer
justified retaining thisacreageasa strategic
part of ouroverall liquids-basedasset
portfolio.”
Total to invest inUKshale
Total has revealed that it intends to invest
someUS$50million in the search for shale
gas in theUK’sEastMidlands.
Thecompany,which is the firstmajor
international oil andgas company to sign
up to join theUK shalegas industry, has
acquired40% shares in licencesacross
Lincolnshire.
Various surveyshave shown that
theUKcouldhavevast shalegas reserves
equal to25yearsof demand.However,
very littledrillinghas takenplace so far, in
partdue toamoratorium (lifted in2012)
andpublicopposition. Indeed, Total has
previouslyvoiced frustrationover the
lackof information surroundingpotential
exploration licenses.
TheUKgovernment iskeen to replicate
theUS shaleboomandhas voiced its
support for the shalegas industry,with
PrimeMinisterDavidCameronurging
people to “getbehind fracking.”
Hydraulic fracturing is currentlybanned
inTotal’shomenationof France.
Thailand
Petrofachasannounced that
MubadalaPetroleumThailandhas
taken theoptionof extending its lease
of Petrofac’s
JasmineVenture
FPSO,
currentlydeployedon theJasmine field
in theGulf of Thailand, forup toan
additional four years.
RobJewkesCOOof Petrofac said,
“Asboth theownerof theFPSOand its
serviceprovider, Petrofacwill continue
to support [Mubadala’s] requirements
on thisprojectwhileworkingwith them
to identifyareas for further support
on thisand futureprojects in the
Gulf of Thailand.”
Paraguay
An independent audit has foundpotential
oil andgas reservesequivalent tomore
than1billionboe inPresident Energy’s
acreage inParaguay’sChaco region.
Theauditwas conductedbyRPS,
whichanalysed2Dand3D seismicdata
across three zonesof thePirityBasin
wherePresident Energy isplanning to
drill threeexplorationwells starting in
May this year.
Iraq
Iraq’sDeputyPrimeMinister for
Energy,Hussainal-Shahristani has
revealed that Iraq isplanning to triple
its crudeoil productioncapacity to
9millionbpdby2020. According to the
IEA, Iraqwasproducing3millionbpd in
December 2013.
al-Sharistani said, “We feel theworld
needs tobeassuredof fuel for economic
growth.”Theoil industry isalsovital for
Iraq’sowneconomyas it struggles to
rebuildafterdecadesof neglect,war and
sectarianviolence.
