Jubilee Exceeds Production Expectations in 2015

http://www.petroleumafrica.com/jubilee-exceeds-production-expectations-in-2015/

Tullow Oil and its partners on the Jubilee field offshore Ghana saw production from the field exceed expectations in 2015, averaging 102,600 bpd. A stable rate of gas was achieved following final commissioning of the onshore gas processing plant in March 2015, averaging around 90 Mmscf/d in Q4 2015. This strong gas export performance significantly reduced the requirement for gas reinjection at the field.

Tullow, in its Full Year Results statement, is forecasting Jubilee 2016 average production to be around 101,000 bpd gross. This reflects the impact of a planned two week FPSO maintenance shutdown scheduled for March and a period of reduced water injection capacity during H1which is currently being addressed.

The partners on the Jubilee continued their Jubilee Phase 1A drilling and completions with two oil producers coming onstream in September and December and a water injector which has yet to be completed being spud. With the Phase 1A investment program nearing completion, Tullow and partners submitted the Greater Jubilee Full Field Development (GJFFD) Plan in December and discussions are ongoing with the government regarding its progress.

The GJFFD, aimed at extending field production and increasing commercial reserves, has been redesigned given the current environment to reduce the overall capital requirement and allow flexibility in the timing of the capital investment. During 2016 and beyond, a continued focus on cost reduction opportunities and the careful balancing of future capital investment initiatives, including infill drilling as part of the GJFFD, will be key as Tullow seeks to ensure maximum return on investment from this world-class oil field.

Another tank cleaning fatality

http://www.tankeroperator.com/ViewNews.aspx?NewsID=7375

One crew member died and two were hospitalised after they inhaled poisonous fumes while cleaning cargo tanks on board the 7,704 dwt Palmali-managed 2007-built chemical tanker ‘Araz River’ on 5th February. 

 

Italian media reported that the solvent, which the three seafarers were using to clean the tanks on board the Russian-flagged tanker, reacted with the cargo remnants to form toxic fumes.

The deceased 24-year crew member died immediately due to a cardiac arrest, while the other two, aged 42 and 28, were transferred to a hospital in a serious condition, the media reported.

The ‘Araz River’ subsequently returned to Vasto where it had discharged a canola cargo and the vessel remained in port for an investigation to be conducted.

There were 13 Russian crew members on board at the time of the incident, the reports said.

OPEC-Russia Rumors Persist After Comments From Rosneft Chief

 

 

http://oilprice.com/Energy/Oil-Prices/OPEC-Russia-Rumors-Persist-After-Comments-From-Rosneft-Chief.html 

 

By Charles Kennedy

The rumors over a coordinated production cut between OPEC and Russia continue.

On Wednesday, the head of Russia’s state-owned oil company Rosneft floated the idea of participating in a production cut. Or did he?

Rosneft’s chief Igor Sechin, arguably the most important voice from Russia’s energy sector, said major oil producers should cooperate to remove some of the supply overhang.

"A coordinated supply cut by major exporters by around 1 million barrels per day would sharply reduce uncertainty and would move the market towards reasonable pricing levels," Sechin said on February 10 at the International Petroleum Week conference in London, as reported by Reuters. On its face, that sounds as if he is expressing a willingness from Moscow to participate. But Sechin was careful not to say who, exactly, should do the cutting.

Related: ISIS Forced To Cut Wages As Oil Revenues Tank

“Who are we supposed to be talking to about cuts? Will Saudi Arabia or Iran cut production?" Sechin said to reporters when asked if Russia would participate in coordinated cuts. The FT took this as a rejection of Russia’s possible participation.

In the past, Sechin has clearly stated that Russia would not cooperate with OPEC on production cuts, saying that it could outlast other competitors in a downturn. It is also difficult for Russia to turn its oil fields on and off, especially in winter. Sechin has laid the blame for the oil price crash at the feet of OPEC and U.S. shale before, although at this week’s conference he was more measured.

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Separately, Sechin also dismissed the long-term viability of U.S. shale, noting that elevated output would be a temporary phenomenon. "Shale oil production has its limitations in scope and time ... U.S. shale oil production will reach its peak in 2020," he said.

In short, Russia appears no closer to cooperation with OPEC than before, despite the support for such a move from other oil executives in Russia. Without a clear statement from Russian President Vladimir Putin, the markets may continue to react to comments from figures such as Sechin.

By Charles Kennedy of Oilprice.com

FPSO En Route to Aje Field

 

http://www.petroleumafrica.com/fpso-en-route-to-aje-field/

The FPSO vessel for the Aje field in Nigeria is now in transit from Singapore according to Panoro Energy. The vessel is expected to arrive in Nigeria mid-March 2016, following a brief stop in Cape Town.

All key equipment related to the field development has been delivered to Nigeria. Anchor handling operations in the field started in January and will continue until mid-February. The construction vessel has commenced operations and will install the subsea equipment including the manifold and flowlines during February. Once the FPSO arrives in Nigeria it will be hooked-up to the mooring system and risers and a short test of the production systems will be conducted.

Panoro’s CEO, John Hamilton, said: “We are excited to be approaching first oil at Aje, offshore Nigeria. Significant operational and contractual progress has been made on the final phase of field development. With the drilling phase now concluded, the installation work and the arrival of the FPSO are the main remaining work streams. The field is expected to be producing by the end of March 2016.”

Iran's crude oil sales to Europe have reached above 300,000 bpd after sanctions: Shana

 
Iran's Oil Minister Bijan Zanganeh is seen on a screen as he speaks during an extraordinary ministerial meeting of the Gas Exporting Countries Forum (GECF) in Tehran November 21, 2015.

Reuters/Raheb Homavandi/TIMA/Files

http://www.reuters.com/article/us-oil-iran-sales-idUSKCN0VF0NE

Iranian Oil Minister Bijan Zanganeh said on Saturday that Iran's crude oil sales to Europe after the lifting of international sanctions on Tehran had already reached above 300,000 barrels per day (bpd), according to the ministry’s news agency.
Iran's oil exports, which had peaked at more than 3 million barrels per day (bpd) in 2011, fell to a little more than 1 million bpd after tougher sanctions were imposed in 2012 because of its nuclear program.

After the rubber-stamping of the nuclear deal with world powers last year, however, Tehran has ordered a 500,000 bpd increase in oil output.

"Based on the contract signed between the National Iranian Oil Co and France's Total, it was agreed that Total will buy 160,000 bpd of crude oil from Iran to be delivered in Europe," Zanganeh was quoted as saying by news agency SHANA, adding that the contract would be finalised on Feb 16.

Zanganeh also said Italy's Eni was interested in buying 100,000 bpd of crude oil from Iran and its representatives would visit Tehran in near future to discuss the contract.

"Eni has voiced its interest in one of Iran's fields which will be treated like the agreement reached with Total," he said.

Iran's oil minister said Italian refiner Saras was interested in buying 60,000 to 70,000 bpd of crude oil from Iran.

Tehran is sweetening the terms it offers on oil development contracts to draw the interest of foreign investors deterred by sanctions and low crude prices, as its pragmatic president seeks to deliver on his promise of economic recovery.

The new contracts, which include those in the upstream exploration and development sectors are expected to attract more than $40 billion in foreign investment.

Iran has postponed a planned oil conference in London, which was due to have taken place in February to reveal its new contracts, until November. An Iranian official said "the U.S. urged Tehran to hold off" until a final nuclear deal was penned.

(Reporting by Bozorgmehr Sharafedin; Editing by Elaine Hardcastle)

Cheniere Energy scraps its crude trading desk

                           

http://www.reuters.com/article/condensate-exports-cheniere-energy-idUSL2N15N1R2
Feb 8 Cheniere Energy is closing its newly formed crude oil trading desk, according to several sources, just two months after its board voted to replace the company's chief executive to focus more closely on its core businesses.

The liquefied natural gas (LNG) company, best known for taking the lead on U.S. LNG exports at its costly Sabine Pass terminal at the Texas and Louisiana border, had planned to pursue condensate exports with the development of a $550 million storage and dock facility near Corpus Christi, Texas.

In mid-2015, the company launched a crude trading and origination desk by hiring Nelson Lee from BHP Billiton, where he had helped orchestrate some of the first-ever exports of U.S. condensate, a very light form of crude.

It was not immediately clear how many traders and support staff would be laid off as a part of the closure.

Sources confirmed that Lee and a second trader, Robert Harris, would be leaving the company.

Cheniere's board in mid-December voted to fire CEO Charif Souki at the urging of activist investor Carl Icahn, who had taken a big stake in the company.

The board made the decision after reevaluating Souki's plans to expand the company's scope beyond exporting liquefied natural gas.

As recently as September, Cheniere had publicly discussed the development of the proposed condensate terminal, but presentations published by the company in the past few months made little to no mention of it.

If completed, the export terminal would be operational by 2017 and include up to 2 million barrels of storage as well as docks capable of handling Aframax-sized vessels.

A spokesperson for the company did not respond to a request for comment on the project. But sources said at best the project was on hold.

Cheniere's stock is down 38 percent year-to-date. On Monday the stock briefly traded below $23, its lowest level since March 2013, before closing at $23.65.

As of Dec. 7, Icahn was Cheniere's second largest investor, with a 13.8 percent stake, or 32.65 million shares, according to data available on Reuters Eikon. (Reporting by Liz Hampton and Kristen Hays; Additional reporting Catherine Ngai in New York; Editing by Terry Wade and Leslie Adler)

Crude Oil Slips As Saudi, Venezuela Meeting Yields Little

 

http://www.leadership.ng/business/499326/crude-oil-slips-saudi-venezuela-meeting-yields-little

Crude oil prices eased in thin trade on Monday as a meeting between OPEC producers, Saudi Arabia and Venezuela showed little indication that steps would be taken to boost prices.

Global benchmark Brent futures LCOc1 were down 8 cents at $34.98 while U.S. crude futures CLc1 fell by 23 cents to $30.66.

Both contracts firmed slightly earlier in the session on Monday in see-saw trade on low volumes as many Asian markets were on holiday for the Lunar New Year.

Saudi Arabia’s Oil Minister, Ali al-Naimi, discussed cooperation between members of OPEC and other oil producers to stabilise the global oil market on Sunday, but there was no sign any agreement had been reached.

“It was a successful meeting and (conducted) in a positive atmosphere,” Naimi was quoted as saying.

Venezuela’s Oil Minister, Eulogio Del Pino, who is on a tour of oil producers to lobby for action to prop up prices, said his meeting with Naimi was “productive”.

“The picture is neither clear nor harmonious,” PVM Oil Associates analyst David Hufton, said in a note on Monday.

“The market is likely to remain highly volatile and dangerous.

“ Unless there is some pretty bullish news in the next few days, the contracts are likely to erode value and head south,” Hufton warned.

The market is also eyeing U.S. Federal Reserve Chair, Janet Yellen’s testimony to lawmakers on Wednesday along with U.S. crude inventory data from the Energy Information Administration on the same day.

“We are on hold, waiting for that with a nervous tone,” said Ric Spooner, chief market analyst at CMC Markets in Sydney.

The International Energy Agency and OPEC are also due to release their monthly reports on Tuesday and Wednesday, respectively. (Reuters/NAN)