Archives for July 2020

July 2020

Noble Energy acquisition puts Chevron on pole for revitalised gas demand

28/07/2020 Posted by Dale

Chevron’s $13 billion acquisition of Noble Energy has been interpreted as a long-term punt for a natural gas future.

Adrian Lara, senior 0il & gas analyst at data and analytics company GlobalData, said of the transaction: “Since the crash of oil price and demand in March 2020, there has been an increasing expectation for mergers and acquisition (M&A) activity to show existing opportunities despite the depressed economic cycle.

“Chevron’s US$13bn acquisition of Noble Energy, including debt, is indeed the largest in 2020 and has an international diversification component, in both resource type and geography, which confirms that, besides healthy balance sheets, the most resilient companies during the pandemic have shown flexibility thanks to diversified portfolios.

Eni confirms gas and condensate discovery offshore Vietnam

28/07/2020 Posted by Dale

Eni has announced a significant hydrocarbon discovery on the Ken Bau discovery in Block 114, Song Hong Basin, offshore Vietnam.

The Italian oil and gas company said the exploration well Ken Bau-2X was drilled two km apart from the discovery well in 95m of water depth to a total depth of 3658m and encountered pay in excess of 110m in several intervals of Miocene sandstones interbedded with shale.

Eni said two mini drill stem tests (DST) were conducted, coupled with an extensive data acquisition campaign comprising fluid sampling.

FAR says Sangomar for sale sign has piqued suitors

28/07/2020 Posted by Dale

Cairn Energy has agreed to sell its 40% stake in the Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore contract area to Russia’s Lukoil for a cash consideration of up to $400 million, in addition to reimbursement of capital expenditure incurred since January.

Completion of the sale is expected to be finalised in the fourth quarter of 2020 and Cairn said it will return at least $250 to shareholders.

This come after FAR Limited said it had received a “good level of interest” for the sale of its 15% stake in the $4.

MOL makes 13th discovery in Pakistan

21/07/2020 Posted by Dale

MOL has made a new gas and condensate discovery, the company’s 13th discovery in Pakistan and the 10th in the TAL Block. 

The Budapest headquartered oil and gas company said that the Mamikhel South-1 exploratory well successfully reached a total depth of 4,939m on 23 May 2020. Upon testing the well flowed gas and condensate from the Lockhart & Hangu formation at a flow rate of 6516 boepd (16.12 MMscf/d and 3240 bpd respectively), with flowing well-head pressure of 4,476 PSI at 32/64” choke. Further testing of the well is ongoing.  

MOL has been operating in Pakistan’s upstream sector for 21 years and holds equity stakes in four blocks in the country.

Senex shares surge on Surat Basin success

20/07/2020 Posted by Dale

Senex Energy Ltd (ASX: SXY) has successfully delivered a major upgrade in gas reserves which the company says builds a foundation for established and continued growth in production, earnings and cashflow.

Senex’s share price on the ASX was trading at 28c at close on 20 July, up 12% from a week earlier on and 115% up from its six-month low of 13c in the latter part of March.

In it’s June quarterly report Senex announce the following highlights:

• Fourth quarter FY20 production up 20% to 711 kboe with Surat Basin gas production up 43% to 518 kboe and Roma North facility de-bottlenecking achieving to >18 TJ/day.

Venezuela’s oil and gas sector experiences worst crisis during 2020

20/07/2020 Posted by Dale

Venezuela’s oil and gas sector was already caught in a vicious cycle well before the COVID-19 outbreak created a world economic crisis.

Even though there are several international companies still remaining in the country, they are not investing in any relevant manner and have minimum personnel.

GlobalData Oil & Gas Analyst Adrian Lara says it is fair to assume that, for most of these operators, the best scenario would be to wait for a change in government that could kick-start the sector under renewed rules or laws and improve their partnership terms with PDVSA.

EPBC recommendations a ‘step in the right direction’ says APPEA

20/07/2020 Posted by Dale

Australia’s oil and gas sector has welcomed the interim report into the review of the Environment Protection and Biodiversity Conservation Act 1999, as it provides an important pathway to more efficient environmental approvals processes while ensuring protection of the environment and delivering greater certainty for future investment.

APPEA Chief Executive Andrew McConville said the recommendation for consistent national environmental standards focused on outcomes rather than process that will help improve environmental protection while supporting businesses’ needs.

“While we still need time to consider the Interim Report in detail, the headline recommendations are a welcome outcome for both improved environmental protection while reducing the costly regulatory burden to business.

PGS completes Viking Graben extension project

13/07/2020 Posted by Dale

PGS has completed the second successful GeoStreamer X seismic survey in the Viking Graben.

PGS said the survey had been completed on time and covering all targets and fast track data would be ready in the fourth quarter with final PSDM results available in the second quarter of next year.

The Norwegian seismic company said its latest technology innovations for advanced offset and azimuth-rich data were applied in the project, which builds on the successful 2010 pilot project in the same area.

“The Ramform Vanguard managed its dense streamer spread in combination with record-wide sources, acquiring a survey that will deliver a dataset of excellent quality, with high resolution, optimal near-offset distribution for shallow imaging, improved demultiple, and AVO.

Buffett invests billions in gas future with Dominion Energy

13/07/2020 Posted by Dale

Warren Buffett’s Berkshire Hathaway has made its first “bargain” buy of the COVID-19 curtailed period, snapping up Dominion Energy’s gas transmission and storage assets for $US10 billion.

The New York Times’ DealBook reported that the purchase was Buffett’s biggest in four years, “putting to use some of Berkshire Hathaway’s $137 billion cash pile”.

“It will probably quell some investor anxiety about Mr Buffett’s recent drought of deal-making,” the publication added.

In a market update Dominion Energy said the transaction was valued at US$9.7 billion and included the assumption of $US5.7 billion of existing indebtedness.

Warren Buffett, chairman of Berkshire Hathaway, said: "I admire Tom Farrell (Dominion Energy chairman and CEO) for his exceptional leadership across the energy industry as well as within Dominion Energy.

Leigh Creek lights up with two licence award in SA

13/07/2020 Posted by Dale

Oil and gas junior Leigh Creek Energy has been awarded two exploration blocks in South Australia.

The Adelaide-based explorer told share holders that it had successfully won PEL 675 and PEL 676 by the Department of Energy and Mining. Both licences were released in last year’s Cooper Basin Acreage Release.

Leigh Creek said it still has to secure Native Title agreements, before which planned work programs over the next five years could commence. These include 2D and 3D seismic surveying and the drilling of exploration wells at PEL 676.

Both permits are located in close proximity to previous hydrocarbon discoveries, Leigh Creek said, and the company will pursue farm-in endeavours to optimise its acreage in the Cooper and Eromanga basins.