Category Archives: News

Norwegian production figures show decrease in condensate

Category : News

5/22/2019

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Photo: Norwegian production, April 2019.

STAVANGER — Preliminary production figures for April 2019 show an average daily production of 1,729,000 bbl of oil, NGL and condensate, which is a decrease of 24,000 bpd compared to March.

Total gas sales were 10.2 billion Sm3 (GSm3), which is a decrease of 0.6 GSm3 from the previous month.

Average daily liquids production in April was: 1,380,000 bbl of oil, 320,000 bbl of NGL and 29,000 bbl of condensate.

Oil production in April is 0.6% lower than the NPD’s forecast, and 1.7% below the forecast so far this year. The main reasons that production in April was below forecast is technical problems on some fields.


TGS and Schlumberger announce strategic collaboration in GOM

Category : News

5/22/2019

ASKER, NORWAY and HOUSTON — TGS and Schlumberger announced a strategic collaboration for multiclient ocean-bottom node projects in the deepwater U.S. Gulf of Mexico.

This collaboration includes the previously announced 2,350 km2 Amendment Phase 1 project in the Mississippi Canyon and Atwater Valley protraction areas. Supported by industry prefunding, Amendment Phase 1 commenced in early 2019 and data acquisition is expected to complete in Q3 2019. Under the collaboration agreement, TGS and WesternGeco, the geophysical services product line of Schlumberger, will work together to develop opportunities to co-invest in additional multiclient ocean-bottom node projects in the U.S. Gulf of Mexico.

Both TGS and WesternGeco have extensive, high-quality multiclient libraries of seismic and other geoscience data in the U.S Gulf of Mexico. The combination of ocean-bottom node data, the associated velocity model improvement, full-waveform inversion and other data processing techniques will significantly improve imaging of complex subsalt structures. By collaborating and using the available underlying data, WesternGeco and TGS will be able to produce a higher-quality product for clients than would otherwise be available over the areas of interest.

E&P companies are increasingly looking to ocean-bottom nodes, combined with advanced processing, as the next-generation technology to support both exploration and development activities in the Gulf of Mexico. Ocean-bottom node technology has traditionally been focused on development and time-lapse 4D seismic applications, but multiclient node projects will also have significant impact on near-field and greenfield activities.

“TGS and WesternGeco have a strong track record of investing together, using the latest technology so that our clients can benefit from large-scale, high-quality data in the U.S. Gulf of Mexico. Both companies are at the forefront of ocean-bottom node technology with Amendment Phase 1 being the world’s first large-scale, multiclient sparse node program. We are working closely with our clients to plan future phases and are excited by the potential growth in exploration and production activity that this could drive in the U.S Gulf of Mexico and beyond,” said Kristian Johansen, CEO, TGS.

Maurice Nessim, president, WesternGeco, added, “In line with our asset-light strategy and global technology leadership, we are looking at opportunities to deploy and accelerate the use of advanced technologies, including ocean-bottom node technology. Our goal is to help our clients mitigate subsurface risks and accelerate their exploration and development programs. WesternGeco and TGS are leading the industry in the application of ocean-bottom nodes on multiclient seismic projects. Our geophysical, geological and technology expertise position us well for this next phase of activity in the U.S. Gulf of Mexico.”


Oil holds gain as OPEC signal on output cuts counters trade risk

Category : News

By Tsuyoshi Inajima and Grant Smith on 5/21/2019

LONDON (Bloomberg) — Oil held gains on signs that OPEC and its allies will extend production cuts beyond June, while prices remained capped by worsening trade relations between the U.S. and China.

Futures were little changed in New York after rising 0.5% on Monday. Saudi Energy Minister Khalid Al-Falih urged the OPEC+ coalition to “stay the course” on output limits at a meeting in Jeddah over the weekend. Yemeni rebels backed by Iran said they’d attacked an airport in southern Saudi Arabia, further stoking tensions in the Middle East, while China warned it could retaliate against the U.S. after Washington blacklisted Huawei Technologies Co.

The possible extension of supply curbs by the Organization of Petroleum Exporting Countries and its allies could be a catalyst for oil to resume its rally after floundering over the past month. Rising tension in the Middle East and involuntary output cuts from Venezuela to Russia have also been boosting prices, while rising stockpiles in the U.S. and the breakdown in relations between the world’s two biggest economies keeps gains in check.

“OPEC+ is staying on the sidelines for now, reluctant to add significant volumes to markets so long as overall measures of inventories remain apparently adequate,” Citigroup Inc. analysts including Ed Morse wrote in a report. The bank is “cautiously optimistic a trade war today will result in at least an interim trade deal this year” between the U.S. and China.

West Texas Intermediate crude for June delivery, which expires Tuesday, fell 8 cents to $63.02/bbl on the New York Mercantile Exchange at 9:12 a.m. local time, after adding 34 cents on Monday. The more actively traded July contract was unchanged at $63.21.

Brent for July settlement increased 14 cents to $72.11/bbl on the London-based ICE Futures Europe exchange, after dropping 24 cents on Monday. The first-month contract is trading at a strong premium to the second, a structure known as backwardation that’s an indicator of tight supply. The global crude benchmark traded at a $8.88 premium to WTI for the same month.

Oil ministers from Saudi Arabia and other OPEC producers said at their meeting over the weekend that they were inclined to extend the production cuts into the second half of 2019. Al-Falih said the kingdom “isn’t fooled” by crude prices and believes the market is still fragile. While suggesting he is open to relaxing the cuts, Russian Energy Minister Alexander Novak said his country would still comply with any agreed output limit until year-end.

Zhang Ming, China’s envoy to the European Union, said U.S. moves against Huawei are “wrong behavior” and an “abuse of export-control measures,” as he warned there would be a “necessary response.” U.S. President Donald Trump said he was “very happy” with the trade war and that China wouldn’t become the world’s top superpower on his watch.