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Sweden’s Tethys Oil signs exploration and production agreement for Omani block

Oman has signed an exploration and production sharing agreement with Swedish firm Tethys Oil for its onshore block 58, the company said July 5. The block is located in the southern part of the sultanate adjacent to Tethys Oil’s operated exploration licence block 49. Tethys Oil will be the operator of the block, through its wholly owned subsidiary Tethys Oil Qatbeet Ltd., and hold a 100% license interest. Block 58 was one of six offered in Oman’s 2019 upstream tenders, and the other licenses are yet to be awarded. The ...

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CRUDE MOC: Dubai cash/futures spread widens after Saudi hikes OSPs

The cash/futures spread for benchmark Dubai crude widened on July 6, following announcements of higher official selling prices by Saudi Aramco for the fresh trading cycle. The spread — a key indicator of spot market sentiment for sour crude in Asia — widened to a premium of $1.07/b at the 4:30 pm (0830 GMT) Singapore close on July 6, up 6 cents/b day on day. During the Platts Market on Close assessment process, two 25,000-barrel partials traded on July 6. This comprised of one September Dubai partial traded between buyer ...

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China terminates management rules on petroleum market, reducing entry barriers

China on late July 3 announced the termination of its two sets of management rules governing the oil product and crude markets, relaxing the barriers for investors on starting wholesale, retail and storage business in the two commodity markets. The Ministry of Commerce, or MOFCOM, terminated the “Management Rules on Oil Product Market” and the “Management Rules on Crude Market” in order to implement the “Regulations On Optimizing The Business Environment” and reform management in petroleum circulation, the ministry’s Order No. 1 of 2020 dated July 1 showed. The Chinese ...

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Denmark approves use of ships with anchors to lay Nord Stream 2 gas link

Denmark has approved a request from the developer of the Nord Stream 2 gas pipeline from Russia to Germany for permission to lay the line in Danish waters using ships with anchors, the Danish Energy Agency said July 6. In early June, Nord Stream 2 asked — as a precautionary measure — for an amendment to its Danish pipelaying permit to allow the potential use of pipelay ships that use anchors for positioning. “The Danish Energy Agency has decided that Nord Stream 2 may use pipelaying vessels with anchors in ...

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South Africa’s Sasol abandons exploration blocks offshore Mozambique

South Africa’s Sasol said July 6 it has decided to relinquish two licenses offshore Mozambique to the government in a new setback for the southeast African country’s upstream sector. Sasol held licenses for offshore blocks 16 and 19 since 2005, but has now opted to hand back the licenses. “Following an evaluation of the exploration potential of the blocks and an assessment of the report of the pre-feasibility phase of the Environmental Impact Assessment, Sasol has decided to relinquish its exploration license in Blocks 16 and 19 offshore Mozambique,” it ...

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Production resumes at two oilfields shared with Saudi Arabia -Kuwait oil ministry

Crude oil production resumed early July at the Wafra oilfield, shared by Kuwait and Saudi Arabia, after a five-year halt, the Kuwaiti oil ministry said on Twitter on Monday. The Wafra and Khafji oilfields are located in the Neutral Zone on the boundary of the two countries. Saudi Arabian Chevron (SAC), which jointly operates the Wafra field with Kuwait Gulf Oil Company (KGOC), said in a statement in June that the two companies were making preparations to resume operations. Initial output at the Wafra oilfield is seen at 10,000 bpd, ...

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Oil India sees a loss of 9019MT in crude oil production since the blowout at Baghjan gas well

The state-owned Oil India on Monday stated that they witnessed a production loss of 40 million tonnes (MT) of crude oil as on July 04, 2020, due to stoppage/blockades. However, the company’s stock remained unaffected from the announcement and continued to trade in the green. To exchanges, Oil India said, “Due to stoppage/blockades, there was production loss of 40MTof Crude Oil and 0.10MMSCM of Natural Gas as reported on 04-07-2020. Operations were disrupted in 03 Oil wells.” As of July 01, there was production loss of 47 MT of Crude ...

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U.S. Dominance In The Natural Gas Sector Is Growing

This article is the third in a series on the BP Statistical Review of World Energy 2020. The Review provides a comprehensive picture of supply and demand for major energy sources on a country-level basis. Previous articles covered overall energy consumption and petroleum supply and demand. Today, I want to cover the production and consumption of natural gas. Natural gas is the cleanest of the fossil fuels. It is also fastest-growing fossil fuel, with a global 2.6% average annual growth rate over the past decade. In comparison, oil grew at ...

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Saudi Arabia ups August crude prices to Asia

Saudi Arabia’s state oil producer Aramco has hiked official selling prices (OSPs) for its crude to Asia by $1 a barrel in August, and raised the OSPs for almost all grades to Europe and the United States. Saudi Arabia has set the August price to Asia at plus $1.20 a barrel versus the Oman/Dubai average, Aramco said in a statement on Monday. The increase was in line with market expectations on rising Middle East benchmarks and a rebound in Asian refining margins, a Reuters survey found. Although the rise in ...

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The impact of COVID-19 on the energy transition

The coronavirus pandemic will have a dramatic impact on energy supply and demand in the short term and will have lasting impacts once the pandemic dissipates. However, that will in itself do little to advance the world’s progress towards the Paris climate ambitions. Energy use is strongly linked to economic activity, which has, and will continue to be, significantly impacted by the novel coronavirus pandemic: Our energy forecast is predicated on IMF’s longer outbreak scenario, where World GDP will shrink 6% in 2020. The lingering effects of the pandemic will ...

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Subsea production systems expand boundaries of deepwater hydrocarbon E&P, says GlobalData

Subsea technology has drastically improved in the last two decades in terms of functionality and reliability, with notable strides made in areas such as subsea processing, subsea storage, subsea-to-shore and power distribution. This has enabled upstream companies to expand the scale of their deepwater projects, says GlobalData, a leading data and analytics company. GlobalData’s latest thematic report, ‘Subsea Technologies for Oil and Gas Offshore Exploration and Production (E&P)’, notes that advancements in subsea technology are paving the way for a more complete subsea system, controlled from onshore, providing cost and ...

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UK GAS-Prompt prices rise as lower wind power forecast boosts demand

Prompt British wholesale gas prices rose on Monday morning as expectations of weaker output from the country’s wind farms from Tuesday boosted demand for gas from gas-fired power plants. * The within-day contract was up 0.70 pence at 13.70 p/ therm by 0842 GMT. * The day-ahead contract was up 0.90 p at 14.40 p/therm. * Traders said high wind power output on Monday had left the UK gas market oversupplied but that this was expected to significantly fall on Tuesday, boosting day-ahead gas demand and pushing prices higher. * ...

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Oil and gas sector crisis deepens

One after the other major international oil companies (IOCs) are announcing new and massive asset write-downs as a result of the low global oil and gas prices and their impact on their business. These are in effect ‘stranded-assets’ that once had a value but can no longer be produced as a result of low prices and may have to be ‘left in the ground.’ The latest to do so is Shell that announced on June 30 that it is writing off up to $22 billion of the value of its ...

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Buffett’s Berkshire to buy Dominion Energy gas assets for $4 bln

Berkshire Hathaway Inc said its energy unit will buy Dominion Energy Inc’s natural gas transmission and storage network for $4 billion, helping billionaire Chairman Warren Buffett reduce his conglomerate’s cash pile while letting Dominion focus on utilities operations. The transaction announced on Sunday includes more than 7,700 miles (12,390 km) of natural gas transmission lines and 900 billion cubic feet of gas storage. Berkshire Hathaway Energy is buying Dominion Energy Transmission, Questar Pipeline, Carolina Gas Transmission, 50% of the Iroquois Gas Transmission System, and 25% of the Cove Point liquefied ...

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Rising Demand And The Lowest U.S. Natural Gas Prices Since 1995

Predictably ignored, one could argue that the biggest energy reality that we face is very low natural gas prices encouraging more infrastructure and demand. Low gas prices forecast over the mid- and long-term are going unmentioned as the driving force behind our “dash to gas.” This year since mid-January, U.S. gas prices have been below $2.00 per MMBtu, an insanely low price for increasingly the world’s go-to fuel. Let me be clear, the floor for gas prices over the past four years has been $2.50. Moreover, at $1.44 last week, ...

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