Category Archives: News

National Iranian Oil Co, Thailand’s PTTEP Agree To Oilfield Studies

BEIRUT, Dec 6 (Reuters) – National Iranian Oil Company (NIOC) and PTT Exploration and Production Public Company Limited (PTTEP) signed a memorandum of understanding on Tuesday to carry out preliminary studies of three oil fields in Iran.

PTTEP, an oil and gas exploration and production company based in Thailand, will carry out preliminary studies over Changuleh, Balal and Dalpari oil fields in the south, Iran’s oil ministry’s news agency SHANA reported.

SHANA quoted Prapat Soponpongpipat, executive vice president of PTTEP as saying that he was hopeful it would lead to at least one contract for an oil field.

The oil and gas exhibition in China 2016

BEIJING–(BUSINESS WIRE)–The 16th China International Petroleum & Petrochemical Technology and Equipment Exhibition (cippe 2016) is being held on March 29-31, 2016 at New China International Exhibition Center. With an exhibition space of over 100,000m2, cippe is expected to attract more than 2,000 exhibitors from 65 countries and regions, 46 Fortune 500 companies, 18 international delegations and 80,000 professional visitors, making it the largest petroleum exhibition in the world.

In order to provide better services for oil enterprises, the organizing committee of cippe will specially present the Oil & Financial Area, the Oil Industrial Park Area and the Technology Commercialization Area. The exhibition will also make innovative changes together with the enterprises to drive valuable transformations in the industry.

The oil prices have fallen to a seven-year low, and if this trend continues, most oil companies will have to control their purchase costs. Five leading oil companies, namely ExxonMobil, Chevron, BP, Shell and TOTAL, have begun to reduce expenses and increase efficiency. Meanwhile, China’s three state-owned oil giants have also shrunk their investment in the upstream sectors in the capital market. To address these challenges, cippe 2016 will offer a big platform for oil players to exchange ideas, showcase advanced products and discuss strategic plans.

At this exhibition, world-renowned oil companies, including the top 10 oil giants, such as CNPC, Sinopec, CNOOC, Schlumberger, ExxonMobil, Rosneft, Gazprom, BP, TOTAL, Saudi Aramco, Qatar Petroleum, Statoil, Shell and Petrobras, all look to explore new economic growth points. For instance, ExxonMobil will launch its new Asian market strategy and showcase new products and a comprehensive lubrication solution for industrial machinery; CNPC, with an exhibition area of 6000m2, will take full advantage of its cluster advantage to fully explore the Asian market.

 

China oil prices reduced down for the first time in the new year

The National Development and Reform Commission issued a notice in January 13th, which decided to improve the oil price formation mechanism, to further promote the price marketization. At the same time, according to the improved and perfect price mechanism, reduce the price of domestic refined oil.

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According to the notice of National Development and Reform Commission yesterday afternoon, the domestic refined oil price adjustment mechanism had been further improved, set the ‘ceiling price’ of $130 a barrel, as well as ‘floor price’ of $40 a barrel.

According to the perfection of the price mechanism, decided since 24:00 January 13th, maximum retail price of gasoline, diesel oil were reduced by 140 yuan and 135 yuan(China’s official currency ) per ton , means that maximum retail prices of the 90# gasoline and 0# diesel oil (the national average) were reduced 0.1 yuan and 0.11 yuan per liter.

Crude oil prices continued to fall under excess production capacity

In this cold winter, the oil market is particularly cold”.

In December 4th, OPEC semi annual meeting in a row ended. After 7 hours of discussion, still failed to reach an agreement on the yield or yield, the yield of the ceiling failed to form.

Need to mention is that in the second half of 2014, OPEC held a total of 3 meetings, both of which have not formed a decision to cut.

This on the supply of crude oil market, the decision not to cut prices of crude oil and low, at present has dropped to the lowest price since February 2009.

In fact, since June last year, oil prices began to fall in oil prices, low volatility in more than a year under the condition of OPEC and did not like the past to deal with the oil crisis to take measures to limit production price, but chose to keep production in order to keep the market share, the competition is also OPEC and non OPEC producers among the growing performance.

At present, the global oil market is a buyer’s market, the producers to snatch market share obviously, in the United States, Russia and other non OPEC oil producing countries step by step under the condition of consistent production quota OPEC atcapacity.

Statistics show that OPEC crude oil production has been more than 18 barrels / day of output for 30 million consecutive days in 2015, the main producing countries of Saudi Arabia’s average daily crude oil production in July to 10 million 600 thousand barrels a record high, enough to reflect the market share is OPEC, the main target of the main producing countries in Saudi arabia.

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Overcapacity continued

Oil prices will continue to fall

And it is worth noting that, at the same time, the crude oil production innovation, the current crude oil inventories have been a historical high.

U.S. Energy Information Agency (EIA) latest data show that in November 27th when the United States crude oil inventories unexpectedly increased by more than the expected reduction of barrels, stocks almost reached a record high in April of this year, a record high, while the United States domestic oil production increased by the barrel to the barrel.

At the same time, IEA released the report also shows that the world’s oil inventories have risen to a record 3 billion barrels.

On one side is the high inventory, while the oil producing countries still do not cut, which means that the price of crude oil will continue to fall.

OPEC has replaced North America as the backbone of the supply of crude oil, so the supply of excess is a long-term pattern. Saudi Arabia, Iraq and Iran will be the main force of future production OPEC.

Exclusion of the accident, the international oil market is still weak, the supply of oil continues, the Fed rate hike expectations, the oil market is strong repression, there is no sign that the market rebound, the majority of energy agencies for oil prices is expected to return to $80 / barrel, but there is no doubt that the era of high oil prices, oil prices will face a long time to run.

And the price of oil fell, the oil companies will also face a worse year.

The opportunities and challenges facing the development of shale gas in China

The large-scale development and utilization of shale gas in the United States has  promoted our country from government departments to scientific research institutions and prodection enterprises to start research and exploration and development test boom of shale gas. After just a few years, China has made important progress in the basic research, resource investigation, demonstration area construction of shale gas, etc,. There are aready four major opportunities to accelerate the development:

First, the external dependence of China’s natural gas has risen sharply, it needs to accelerate the development and utilization of shale gas.

Since 2000, with the discovery of a number of large gas field such as Kela 2, Sulige and Puguang, natural gas production had grew rapidly at an average annual rate of 12.1%, and had reached 10.72 billion square in 2012. But the output growth is still not up to the demand growth, leading to the rapid development of natural gas industry has entered a short supply situation, the external dependence has reached 25% in 2012. In this situation, to accelerate the development and utilization of shale gas and other unconventional natural gas is very important to promote the rapid development of China’s natural gas industry and the development of low-carbon greeen development of economy and society.

Second, China’s shale gas resources are relatively rich, which means it has the resource base of development.

China’s land develop three major kinds organic shale of marine facies, transiltional facies, continental facies, distribution range widely, have good material basis for formation of shale gas. Different evaluation from domestic and foreign institutions think that the recoverable resources of China’s shale gas technology is 31.6 trillions, 25 trillions, 8.8 trillions (marine facies), 10 to 15 trillions, etc.. Overall, potential resource of China’s shale gas is relatively large, so it has the resource base for the accelerated development.

Third, government have introduced a number of preferential support policies, which has created a good condition for the development of shale gas. At present, the National Energy Bureau has promulgated the <Notice about publishing subsidies pulicy of the development and utilization of shale gas>, <shale gas industry policy >and other preferential policies to support the development of shale gas. Ministry of Land and Resources has conducted two rounds of shale gas block tender to attract a large number of enterprises to invest in shale gas development. Some local governments have also allocated special funds for shale gas research and exploration and development experiments.

Fourthly, the development and utilization of shale gas in China has the late-moveradvantage, the rhythm can be speeded up if the organization is effective. After about 30 years of research, the United States has gradually formed the core technology of shale gas exploration and development, such as horizontal wells, multi section fracturing, micro seismic monitoring and so on. For China’s shale gas development, we can learn from the development experience of the United States, through the introduction, digestion, absorption and re innovation of mature technology, to achieve the time of scale development is expected to greatly shorten than the United states.

Israeli customers come to visit our factory

Our customers who come from Israeli came to our factory to see our production of desander and desilter operation condition. This set of system required by customer consists of one desander, one desilter and one sand pump and agitator, etc.. The customer use it in wastewater treatment. During the field test, the customers asked the questions about our product’s material, the working principle, the processing quantity and so on to know more about the system designed by our manufactory, and our engineer had given the patient answer.

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The hydrocyclones on the desander and desilter produced by DC Machinery adopt polyurethane material which has good wear resistance, mesh number of vibrating sieve screen is one hundred and twenty, and the handling capacity of desander and desilter is 120 m ³ /h, swirler outlet size can be adjusted. The solids be separated is dry and with less liquid content, equipment operation is stability.

After careful observation and inquiry of customers, they gave high evaluation on our equipment, and expressed satisfaction with the operation status of our equipment, they decided to discuss cooperation matters with our sales manages and will consider to establish long-term cooperative relationship with our company after they return to their country.

Energy Explorers Bemoan Cost Of Labor Disputes In Argentina

BUENOS AIRES, May 19 (Reuters) – Labor disputes are on the rise in Argentina and costing foreign energy companies millions of dollars as they explore the country’s vast but barely-tapped Vaca Muerta shale oil and gas field, company officials said.

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Trade Unions are a powerful force in Argentina, Latin America’s No. 3 economy, where the frequency of industrial disputes are a deterrent to explorers already unsettled by President Cristina Fernandez’s heavy-handed trade and currency controls.

Argentina’s state-run energy company YPF estimates $200 billion is required over the next decade to exploit Vaca Muerta, which covers an area the size of Belgium, but so far foreign firms have made little more than foothold investments.

“In the last few years labor disputes have cost us in the region of $10 million, enough to drill a well,” Maximiliano Hardie, venture lead and operations manager at Shell Argentina, said at an industry conference in Buenos Aires.

“Between 2013 and 2014 the number of strike days, and therefore the amount of unproductive time, increased,” he said.

Years of under-investment in Argentina’s energy sector have left the South American country a net energy importer. Mired in a decade-long debt battle, the cash-strapped country needs the deep-pockets of energy companies like Chevron Corp, Royal Dutch Shell and Exxon Mobil.

Investor confidence is unlikely to improve before October’s presidential election. Fernandez is constitutionally barred from a third straight term and the three front-running aspirants all tout more investor-friendly policies.

Javier Iguacel, vice president of business development at Pluspetrol, told the conference an explorer’s survival depended on maximizing drilling time.

“And for this, changes are needed. We have to be working 365 days a year, 24 hours a day,” Iguacel said.

The next disruption, however, is likely to come in the next few weeks.

An official at Argentina’s main oil workers union, the Private Oil and Gas Union of Rio Negro, Neuquen and La Pampa, on Tuesday told Reuters that members would take part in a national strike that is expected to take place in early June.

The government is currently locked in lengthy negotiations with big business and unions over the size of salary increases in the face of one of the world’s highest inflation rates.

Oklahoma Set to Overturn Local Drilling Controls as Backlash Brews

OKLAHOMA CITY/WASHINGTON, May 20 (Reuters) – Facing a backlash over the side effects of its oil and gas boom, Oklahoma is poised to overturn an 80-year-old statute that allows cities and towns to ban drilling operations within their borders.

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The legislation, now being finalised, would help insulate energy companies from local movements that have grown in response to the rapid expansion of oil and gas drilling and a dramatic spike in earthquakes across the central state.

Oklahoma now sees 600 times more tremors than it did before 2008, a surge seismologists say is linked to vast amounts of wastewater injected into the ground as a result of drilling for oil and from hydraulic fracturing – a process to extract natural gas that is also known as fracking.

The bill was championed by energy companies, which contend that local interference in drilling practices would endanger the production bonanza that has boosted their profits and brought the United States within sight of energy independence.

Opponents say the bill severely restricts the right of local communities to protect themselves from the earthquakes and drilling operations that encroach on residential areas.

The move by Oklahoma’s Republican-majority legislature follows a similar law signed on Monday by Texas Governor Greg Abbott in response to a fracking ban passed by one municipality.

In April, the state-run Oklahoma Geological Survey said the rise in tremors is “very likely” linked to injection of wastewater into disposal wells.

SapuraKencana Clinches $269M Deals as Firm Ventures into Mexico

SapuraKencana Petroleum Berhad, a Malaysia-based oil and gas services and solutions provider with upstream oil and gas assets offshore Southeast Asia, reported that the company has clinched several engineering and construction contracts amounting to $269 million, including the commencement of its operations in Mexico, the firm announced in a filing with local stock exchange Bursa Malaysia Monday.

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Subsidiaries of SapuraKencana Petroleum’s Engineering and Construction – International Division bagged contracts in Mexico and Asia, where the Malaysian firm landed contracts in India, Indonesia and Vietnam.

Under the Mexican contract, worth between $41.2 million and $98.1 million, SapuraKencana Mexicana S.A.P.I. de C.V. will install structures and superstructures of fixed marine platforms. In addition, the firm will provide pipelaying and lifting of major power generation equipment, utilizing the dynamic positioning 3 (DP3) heavy-lift and pipelay vessel SapuraKencana 3500, in the Marine Regions, Bay of Campeche, Gulf of Mexico for Pemex Exploracion y Produccion (Pemex).

Over in Indonesia, SapuraKencana TL Offshore Sdn Bhd (SKTLO), previously known as TL Offshore Sdn Bhd), in consortium with PT Encona Inti Industri of Indonesia, has bagged the $97.5 million contract for work on offshore and onshore pipeline installation for the construction of Kalija 1 Natural Gas Transmission Pipeline of Kepodang – Tambak Lorok Segment by PT PGAS Solution.

The Indonesian contract, which involved the transportation and installation of a 124-mile (200 kilometers) long 14-inch gas pipeline from Kepodang field offshore to the Onshore Receiving Facility. The work will be performed in the Muriah Production Sharing Contract (PSC), Central Java, Indonesia.

Further north in Southeast Asia, SKTLO has been awarded a contract to install nearshore and offshore pipeline for Phase 1 of the Thai Binh – Ham Rong Gas Distribution & Gathering System Project in Block 102-106, located offshore Thai Binh Province in northern Vietnam for PTSC Offshore Services Joint Stock Company (PTSC Offshore Services).

SKTLO also clinched an installation contract for H5-WHP Topside and Pipelines for Te Giac Trang Field Development Project, which is located in Block 16-1, offshore Vietnam from PTSC Offshore Services Joint Stock Company. The final contract in Vietnam covered the installation of offshore facilities for Thai Binh Development Project in Blocks 102 & 106 by PTSC Offshore Services.

Oil Down Over 3% On Dollar Rally, Ample Supply Worry

NEW YORK, May 19 (Reuters) – Oil prices fell more than 3 percent on Tuesday, with U.S. crude extending losses for a fifth straight day, as the dollar rallied amid evidence that the United States and top oil exporter Saudi Arabia were pumping more than the world needed.

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North Sea Brent and U.S. crude settled down more than $2 a barrel each as the dollar hit two-week highs against a basket of currencies, making crude and other dollar-denominated commodities less affordable for holders of currencies such as the euro.

The sell-off in oil came ahead of Tuesday’s end-of-business expiry in U.S. crude’s front-month contract, which often results in unusually heavier market activity. Volume in U.S. crude’s July contract, the new front-month from Wednesday, was markedly higher than the expiring June contract, Reuters data showed.

The market also tumbled despite an industry report scheduled later in the day that was expected to cite a third straight weekly decline in U.S. crude stockpiles.

The American Petroleum Institute (API) report is due at 4:30 p.m. EDT (2030 GMT), ahead of official inventory numbers on Wednesday from the U.S. government’s Energy Information Administration.

“There is certainly a degree of profit-taking going on today before the expiry of the June contract, but it’s primarily driven by the dollar’s strength,” said Sal Umek of the Energy Management Institute in New York.

“Regardless what the API and EIA say, we are nearly 90 million barrels higher in U.S. crude, and about 14 million higher in gasoline, from a year ago, putting us well above the five-year average,” Umek said.