Friday, June 29th, 2012
The Shah Deniz consortium has now concluded its evaluation of potential gas export routes towards South East and Central Europe. The Nabucco West project with a route running from the Turkish-Bulgarian border to Baumgarten has been selected as the single pipeline option for the potential export of Shah Deniz Stage 2 gas to Central Europe. Development of the South East Europe Pipeline (SEEP) project, which had been assembled by Shah Deniz partners in collaboration with Bulgaria, Romania and Hungary, will cease.
This decision was made on the basis of the publicly communicated selection criteria announced in 2011. In particular, the greater maturity of Nabucco West gave the consortium confidence that this project could be developed and delivered on the same timeline as Stage 2. The consortium will now cooperate with the Nabucco West project to optimise its scope, its technical studies and its commercial offer. Based on the same criteria, in February this year the consortium selected the Trans-Adriatic Pipeline (TAP) as the potential route for export of Stage 2 gas to Italy. Since that decision the Shah Deniz consortium has closely worked with TAP, recently concluding a co-operation agreement with this project.
The Shah Deniz consortium will continue to work with the owners of the two selected pipeline options. Shah Deniz will make a final decision between these projects, and will conclude related gas sales agreements ahead of the Shah Deniz final investment decision planned for mid 2013.
Rashid Javanshir, President of the BP Azerbaijan, Georgia and Turkey Region, said: ”We are delighted to announce the selection of the Nabucco West option, alongside our earlier selection of TAP. This represents another important milestone in the development of Shah Deniz Stage 2 and the transportation of gas resources from the Caspian to Europe. We are grateful to the governments and companies who have supported the development of both the Nabucco West and SEEP pipeline projects.”
Rovnag Abdullayev, President of SOCAR, said: ”This decision constitutes a significant step towards implementation of the Southern Gas Corridor Strategy which would serve the strategic interest for sustained energy security of European countries as well as Azerbaijan, Georgea and Turkey.
This indicates the growing role of Azerbaijan as an enabler to provide diversified energy resources to European market.”
Friday, June 29th, 2012
Tethys Petroleum Limited today announced that its Kazakh subsidiary had reached agreement on a USD 16.5 million loan facility.
This facility is provided by a Kazakh bank to Tethys Aral Gas, a wholly owned Kazakh subsidiary of Tethys, and is available to fund capital expenditures in Kazakhstan. It can be drawn down at any time but the company is under no obligation to do so.
This facility has a term of up to four years depending on the company’s requirements and bears an interest rate of 14% per annum on sums drawn down. It is to be secured against field facilities in Kazakhstan. An initial USD 3.5 million of this facility has been drawn down.
Bernard Murphy, Chief Financial Officer, stated, “This facility provides flexibility to meet the company’s possible funding requirements should the company wish to make use of it and I believe it is prudent financial management at this time.” Tethys is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republics of Kazakhstan, Tajikistan and Uzbekistan. This highly prolific oil and gas area is rapidly developing and Tethys believes that significant potential exists in both exploration and in discovered deposits.
Friday, June 29th, 2012
PetroNeft Resources plc (“PetroNeft” or the “Group” or the “Company”) (AIM: PTR) owner and operator of Licences 61 and 67, Tomsk Oblast, Russian Federation, is pleased to report its final results for the year ended 31 December 2011 and to provide an operations update. In addition, PetroNeft announces that the Company’s Annual Report and Accounts for the year ended 31 December 2011 and Notice of AGM will be posted to shareholders today (29 June 2012) and is now available online at the Company’s website www.petroneft.com.
Average production of 2,049 bopd.
Group 2P reserves increase 36% to 131.7 mmbbls.
Group P1 reserves increase 50% to 20.0 mmbbls.
Sibkrayevskoye discovery in August 2011 was the largest single discovery made by PetroNeft to date. It contains 49.8 mmbbls of 2P reserves.
Expanding the central processing facility capacity at Licence 61 to 14,800 bfpd.
First full year of production with 748,079 barrels produced, up from 189,508 in prior year.
Capital expenditure of US$52 million.
Improved Macquarie Debt facility agreed in April 2011.
New US$15 million loan facility with Arawak Energy agreed in May 2012.
June 2012 Operations Update
Arbuzovskoye No.1 well producing at 350 bopd without fracture stimulation.
Current total production steady at 2,200 bopd exclusive of wells temporarily shut-in for pressure transient testing.
The Arbuzovskoye No. 1 discovery well is now in production and has been producing with an electric submersible pump at a rate of about 350 bopd since mid-May 2012. So far it has shown essentially no decline and a water cut of less than 2%. This is comparable to the best wells drilled at Pad 1 at the Lineynoye oil field, prior to fracture stimulation, and is in line with the excellent test results achieved on this well when it was first drilled in November 2010.
It is expected that a drilling crew will arrive on site at Arbuzovskoye in the coming weeks to commence drilling new production wells, the first of which we expect to bring into production in Q3 of this year.
Dennis Francis, Chief Executive Officer of PetroNeft Resources plc, commented:
“Overall, 2011 was a busy year with mixed results. PetroNeft’s first full year of production and its largest ever work programme resulted in great exploration success but disappointing productivity. However, production levels have been stabilised and we are delighted with the rate being achieved from the Arbuzovskoye No. 1 well at present which bodes well for future production at the field and for our future cash flows.
Positioning the Group well financially in the years ahead such that it can fully exploit the many opportunities available to it is of crucial importance. To this end, we have initiated discussions with a range of strategic investors about possible farm-outs, long term off-take agreements and potential equity or asset investments which in the long term would strengthen the Group’s financial position.”
Thursday, June 28th, 2012
The project, which TNK-BP is carrying out together with Schlumberger, one of the world’s leading oilfield service firms, involves implementing a set of original technological solutions: waterflood management, horizontal drilling using multi-stage hydraulic fracturing and other advanced technologies. The Severo-Khokhryakovskiy field is characterised by tight formations with a high heterogeneity of reservoir properties (reserves are estimated to be up to 55 mln tonnes under ABC1 categorization).
When addressing the participants of the 10th Russian Oil Congress, Oleg Mikhailov, Vice President, Operations and Asset Management, TNK-BP, said: “The Company has selected 7 high-priority development sites with hard-to-recover reserves with a potential volume of 600 mln tonnes. Increasing the efficiency of the development of these resources demands a complex approach, in which new technologies play a key role. In many ways, the success of the programme depends on the execution of the pilot project, where new developments will be tested in practice, and subsequently rolled out across the entire the Company, and possibly, the entire industry. The formation of strategic partnerships with leading global companies to test new technologies, aimed at lowering and sharing development risks in the uncertain conditions of these fields’ undefined reserves, also plays an important role.”
Thursday, June 28th, 2012
OAO LUKOIL held its Annual General Shareholders Meeting in Moscow today to approve the 2011 Annual Report and financial statements based on the fiscal year results.
The shareholders approved dividend distribution based on the Company’s performance in 2011 in the amount of 75 rubles per ordinary share, which is 27.1% higher compared with the 2010 dividend (59 rubles). The amount of dividends is calculated on the basis of the sum allocated to dividend payment, which equals 63,792,244 thousand rubles, or 19.13% of the consolidated net profit under the US GAAP, or 26.29% of the net profit of OAO LUKOIL.
The size of remuneration and reimbursement of expenses to the members of the Board of Directors and the size of remuneration to the members of the Audit Commission was also approved. ZAO KPMG was approved as LUKOIL’s independent auditor. The Annual General Shareholders Meeting approved amendments and addenda to the Company Charter, elected the Board of Directors and the Audit Commission, approved amendments to the Procedure for Preparing and Holding the General Shareholders Meeting of OAO LUKOIL and approved amendments to the Regulations on the Board of Directors of OAO LUKOIL. An interested-party transaction was also approved by the Meeting.
In particular, the shareholders approved amendments to the Company Charter which provide for possible quarterly payments of dividends.
The following Board of Directors of OAO LUKOIL was elected by the shareholders:
1. Vagit Yu. Alekperov, President of OAO LUKOIL;
2. Victor V. Blazheev, Rector of O.E.Kutafin Moscow State Law Academy;
3. Valery I. Grayfer, Chairman of the Board of Directors of OAO RITEK;
4. Igor S. Ivanov, President of the Russian International Affairs Council (RIAC), former Minister of Foreign Affairs of the Russian Federation, Secretary of the Security Council of the Russian Federation;
5. Ravil U. Maganov, First Executive Vice President of OAO LUKOIL;
6. Richard H. Matzke, former Vice Chairman of Chevron Corporation;
7. Sergei A. Mikhailov, General Director of ZAO Gruppa Konsalting [Consulting Group];
8. Mark Mobius, Executive Chairman of Templeton Emerging Markets Group;
9. Guglielmo Antonio Claudio Moscato, Chairman and CEO of Gas Mediterraneo & Petrolio, former Chairman of the Board of Directors of Eni SpA, former Chairman and CEO of Agip SpA;
10. Ivan Pictet, Member of the UN Investments Committee of the UN Joint Staff Pension Fund Board (NY, USA), Board member of Blackstone Group International Limited, AEA European Advisory Board, AEA Investors LP Global Advisory Board (NY, USA), Symbiotics. Former Senior Managing Partner of Pictet & Cie;
11. Alexander N. Shokhin, President of the Russian Union of Industrialists and Entrepreneurs, President of the National Research University – Higher School of Economics.
Valery Grayfer was elected Chairman of the newly elected Board of Directors at the Board of Directors meeting held after the Annual General Shareholders Meeting.
Thursday, June 28th, 2012
BG Group today announced with the Republic of Kazakhstan (“the Republic”) and the other contracting companies in the giant Karachaganak gas-condensate field in north-west Kazakhstan, completion of their agreement which was initially signed on 14 December 2011.*
Under the terms of the agreement the Republic has acquired a 10% interest in the Karachaganak Final Production Sharing Agreement (FPSA) for $2.0 billion cash and $1.0 billion non-cash consideration (pre-tax) including the final and irrevocable settlement of all cost recovery claims. Tax of $1.0 billion is payable on the gain arising on the disposal. The Republic’s interest in the Karachaganak FPSA will be managed by the national oil company, KazMunaiGas (KMG).
The consideration under the agreement also includes the allocation of an additional 2 million tonnes per year capacity in the Caspian Pipeline Consortium export pipeline (CPC) over the remaining life of the FPSA. This additional capacity starts at 0.5 million tonnes immediately and rises to 2 million tonnes during CPC expansion, which is underway and expected to complete over the next three years. Completion of the agreement also provides for:
- exemption from export custom duties for the Karachaganak project until 2038, the remaining 26 years of the FPSA term; and
- final agreement on all tax and customs matters up to the end of 2009.
Sir Frank Chapman, BG Group Chief Executive, said: “We welcome the Republic of Kazakhstan and KMG into the Karachaganak contracting companies group and look forward to working with all of our partners to capture the significant remaining potential of the giant Karachaganak field.”
Ashley Almanza, BG Group Executive Vice President, said: “With this agreement in place the partnership can now move forward with new field development plans which are expected to unlock enormous value for both the country and the contracting companies.”
Wednesday, June 27th, 2012
- The largest oil and gas exhibition in the Middle East to feature 20 well-known experts and associations as part of the judging panel
- Submissions are now being received, entries close 15 July 2012
dmg::energy, organisers of the largest oil and gas exhibition in the Middle East, has announced the ADIPEC Awards – Excellence in Energy 2012. Launched in 2010, the ADIPEC Awards are the most anticipated event during the exhibition, which recognise organisations that have been most successful in setting new standards of excellence within the MENA oil and gas sector.
Hosted by ADNOC with the support of the UAE’s Ministry of Energy, and sponsored by JOGMEC and OMV, the Awards consist of six categories open for nominations, five of them are recognition in MENA region: Best MENA Oil and Gas Project, Best MENA Oil and Gas Innovation or Technology, Best MENA Oil and Gas HSE Project or Initiative, Best MENA CSR Initiative and Best MENA Oilfield/Gas Field Management Strategy; whilst the sixth category is open for international nominations: Best International Oil and Gas Project. There is also a distinguished Lifetime Achievement Award which will recognize an outstanding individual who has shown a pioneering spirit and demonstrated inventiveness throughout his or her career.
The awards are judged by a regional Select Jury (RSJ) which comprises of well-known industry experts from major organisations including ADNOC Group, Saudi Aramco, Bapco, KPC, PDO, Shell, Total, Taqa, Partex Oil&Gas, Schlumberger, Inpex, as well as academic institutions and professional associations, to achieve an objective entry evaluation.
Kimon Alexandrou, Commercial Director, dmg::energy said: “RSJ’s impressive line-up of senior representatives from industry leaders, combined with an objective three-stage judging process, guarantees that the ADIPEC Awards will recognise the most outstanding projects in the MENA region, implemented between December 2010 and July 2012. Due to the sheer number of projects currently in operation throughout the region we are expecting a high number of entries for the awards and we look forward to announcing the winners at a spectacular gala dinner on the 11 November at the St. Regis Saadiyat Resort, Abu Dhabi”
Submissions can be made by filling out the online form on the ADIPEC Awards official website:
The 15th edition of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) takes place on 11 – 14 November 2012 at the Abu Dhabi National Exhibition Centre (ADNEC).
Wednesday, June 27th, 2012
Delivers End-to-End IP Connectivity via Satellite for Remote SCADA Applications
SkyWave Mobile Communications, a global provider of wireless data communications for the Machine-to-Machine (M2M) market, today announced the introduction of the IP SCADA service to work with its IDP series terminals designed for low power, reliability and ease of installation. IP SCADA allows IP-based point-to-point satellite communication connections between small remote sites and SCADA systems where leased lines, GSM, RF or satellite backhaul communications are unavailable, unreliable or cost prohibitive.
For many SCADA networks, implementing a monitoring system that includes visibility of remote isolated sites is cost prohibitive or impossible. With IP SCADA for IsatData Pro, SCADA managers can now remotely connect and communicate with these sites seamlessly over satellite using an IP connection and without any special knowledge or handling of proprietary satellite protocols. There is no infrastructure investment, no antenna pointing, no large solar panels – all the things that make SCADA connectivity in remote areas laborious, cost prohibitive, and often impossible.
“From remote data acquisition to industrial process automation, IP SCADA provides ubiquitous coverage to users with an affordable communication tool to monitor sensors and implement processes in small sites where availability or costs associated with implementation of other technologies was just not viable before.” said Jenn Markey, SkyWave Director, Product Management and Marketing.
In the case of the Oil & Gas, Water or Wastewater industries, IP SCADA is often the only viable solution due to the remoteness and size of the sites. Providing effective quantitative measurement of processes, detecting and correcting problems, and assessing trends at smaller sites enables the diagnosis of problems at the Network Operations Center (NOC); often eliminating the need to dispatch a technician. No longer are site alarms and events related to power outages, critically low battery, high temperature or flooding left unchecked thereby avoiding the site going out of commission and compromising the larger critical infrastructure network, resulting in significant costs and potentially penalties.
IP SCADA advantages include:
• Plug & play: Provides IP-based connection to existing virtual private networks (VPN) already implemented for existing infrastructure.
• Infrastructure: No need for capital investment in RF infrastructure for private radio networks.
• Coverage: With uniform and global satellite coverage, any site around the globe can use IP SCADA. No need to worry about cellular coverage, RF repeaters or quality of service.
• Low power consumption: IsatData Pro terminals have power consumption for unsolicited exception messages that average less than half a watt of power, eliminating the need to invest in large, expensive solar panels at unpowered sites.
• Low total cost of ownership: IsatData Pro terminal and airtime packages are the lowest cost SCADA option when compared to similar market solutions. As well, the compact omnidirectional antenna reduces average install time, errors and cost by avoiding a satellite pointing procedure.
• Safety and environmental protection: IsatData Pro terminals have IP67 rating and can be installed outside without additional protective coverings. For many hazardous installations, Class I Division 2 (C1D2) certification is an additional benefit.
• Temperature range: Designed for operation across broad temperature ranges, IsatData Pro terminals can operate in some of the world’s most extreme environments.
• Programmable terminals: With intelligent control and Modbus, IsatData Pro terminals with the IP SCADA service can be used as RTU replacements for sites that monitor analog or digital sensors or connect directly to existing RTUs.
Typical applications for IP SCADA include: Remote Data Acquisition, Wireless Meter Reading, Building Management, Automation, Safety and Security, Industrial Process Automation for Oil and Gas, Environmental and Utilities.
Wednesday, June 27th, 2012
On June 21, 2012 I. Sechin, Rosneft President, and John Krenicki, GE Vice Chairman President and CEO of GE Energy, and Cristiano Tortelli, GE Energy CEO for CEE, Russia and CIS, signed a Memorandum of Understanding and a Cooperation Agreement.
These documents provide for implementation of joint projects intended to gradually address complex issues in joint design, development, manufacturing and sales of equipment for the oil and gas industry, as well as in installation and commissioning during capital construction, reconstruction and technical upgrading of oil and gas production facilities and use of GE International Inc. technology to enhance oil and gas exploration, production and refining performance.
Assessment of opportunities to create technology and equipment for Arctic offshore production near the shore, improved oil production methods for oilfields with hard to recover reserves occupies a special place in the plans of both companies.
In addition, Rosneft and GE expressed their intention to exchange professionals and to develop cooperation in advanced training and continuing education.
In the framework of cooperation, the Agreement was also signed for supply by GE Energy Products France SNC of 5 6FA high-efficiency gas-turbine packaged units with the minimum emission level for petrochemical complex in the Russian Far East, the largest Rosneft’s project being implemented in the Primorski Krai.
Such cooperation will promote the environmental and industrial safety of Rosneft’s plants.
Wednesday, June 27th, 2012
Roxi, the Central Asian oil and gas company with a focus on Kazakhstan, is pleased to make the following operational update with respect to its Galaz asset.
Well NK14 was spudded on 25 June 2012. The well is an appraisal well intended to evaluate the main reservoir, at the Jurassic Sand and Lower Cretaceous levels.
The well is to be drilled to a Total Depth of 1400m and it is expected to take approximately 25 days to reach Total Depth, including time for coring and wireline logging.
As previously announced testing continues at NK7 using different choke sizes. At a choke size of 5mm the flow rate was 157 bopd, at a choke size of 6mm the flow rate was 186 bopd and at a choke rate of 7mm the choke rate was 259 bopd.
It remains the plan to perforate and test a second interval and then in July 2012 commence a 90 day production test on the well.
Clive Carver, Chairman said
“We remain encouraged by the testing results at NK7 and look forward to updating the market over the next week or so on developments there and in the next few weeks on NK14″