STATOIL: DRILLING DISAPPOINTING
Norway's Statoil said Friday a drilling campaign around the Johan Castberg field in the Barents Sea had discovered less oil than expected, and that it is considering cheaper infrastructure options.
"We are working steadily to reduce the costs of the existing project, and are also studying an alternative project, a floating production and storage unit," Statoil spokesman Ørjan Heradstveit told The Wall Street Journal. Such a unit would likely prove cheaper than the existing plan to build an onshore oil terminal.
Statoil said it had discovered between 42 million and 54 million barrels of recoverable crude oil in Drivis, the fifth and final well drilled during a one-year campaign aimed at increasing the profitability of the Johan Castberg project. The campaign has now ended with only two out of five wells resulting in oil discoveries.
"The exploration program as a whole has not delivered on volume expectations," said Irene Rummelhoff, Statoil's senior vice president for exploration on the Norwegian continental shelf.
Statoil's original plan was to pipe oil from Johan Castberg, still estimated to hold between 400 million and 600 million barrels, to an onshore terminal in northern Veidnes, to create an Arctic oil hub capable of handling the oil flow from potential future fields in the little-explored Barents Sea.
But rising costs, lower resource estimates and a tax change led Statoil and its partners last year to delay the Johan Castberg investment decision.
DNB analyst Helge Andre Martinsen said the Barents Sea drilling campaign had been "a big disappointment." The Drivis discovery was likely big enough to be profitably produced, he said, but it was "rather doubtful" that it would support the further development of Johan Castberg with an expensive pipeline and onshore terminal.
If Statoil finds it too expensive to build an Arctic oil hub, "we'll have to accept it, of course," said Oskar Jarle Grimstad, a member of the Norwegian parliament for the ruling Progress Party. "But it's no big secret that there is a strong wish" for a solution providing more mainland jobs, he said, "we owe that to the northern part of the country."
Operator Statoil owns 50% of the Johan Castberg license. Eni SpA holds 30% and state-owned Petoro 20%.
|December, 15, 13:20:00|
|December, 15, 13:15:00|
|December, 15, 13:10:00|
|December, 15, 13:05:00|
|December, 15, 13:00:00|
|December, 15, 12:55:00|
LUKOIL - The plan is based on the conservative $50 per barrel oil price scenario. Sustainable hydrocarbon production growth is planned in the Upstream business segment along with the growth in the share of high-margin projects in the overall production. In the Downstream business segment, the focus is on the improvement of operating efficiency and selective investment projects targeted at the enhancement of product slate.
BP - BP will acquire on completion a 43% equity share in Lightsource for a total consideration of $200 million, paid over three years. The great majority of this investment will fund Lightsource’s worldwide growth pipeline. The company will be renamed Lightsource BP and BP will have two seats on the board of directors.
REUTERS - Brent crude was up 69 cents, or 1.1 percent, at $64.03 a barrel by 0743 GMT. It had settled down $1.35, or 2.1 percent, on Tuesday on a wave of profit-taking after news of a key North Sea pipeline shutdown helped send the global benchmark above $65 for the first time since mid-2015. U.S. West Texas Intermediate crude was up 45 cents, or 0.8 percent, at $57.59 a barrel.
ROSATOM - On December 10, 2017, the construction start ceremony took place at the Akkuyu NPP site under a limited construction licence issued by the Turkish Atomic Energy Agency (TAEK). Director General of the ROSATOM Alexey Likhachev, and First Deputy Minister of Energy and Mineral Resources of the Turkish Republic, Fatih Donmez, took part in the ceremony.