STATOIL, TOTAL: HIGHER EFFICIENCY
While Statoil is eying an increase in oil production from the Gullfaks South, Total is moving closer to divesting from the West of Shetland area. The two projects, which are relatively close, indicate how companies in the North Sea are trying to monetise assets, while increasing production.
Total signed an agreement to sell 20% of its interests in the Laggan, Tormore, Edradour and Glenlivet fields to SSE E&P UK for £565 million (around $876 million).
"The sale of these minority interests is aligned with Total's portfolio management strategy and target of divesting $5 billion of assets in 2015. It allows us to capitalize fully on this new deep offshore development, while retaining a majority interest and operatorship," Arnaud Breuillac, President, Exploration & Production, commented in a note released on Wednesday.
Total will hold a 60% operated interest in the Laggan, Tormore, Edradour and Glenlivet fields, alongside partners DONG E&P (UK) (20%) and SSE E&P UK (20%). SSE will acquire a stake in the Shetland Gas Plant and interests in several exploration licences in the West of Shetland area.
According to Total, the area will witness an increase in production.
'With the imminent start-up of the Laggan project in the West of Shetland area, Total will open its third hub in the UK and a new frontier gas production area for the industry. By the end of 2015, Total is expected to become the largest producing oil and gas company in the UK.'
Similarly, Statoil, the main hydrocarbon producer in Norway, bets on increased efficiency to push production up.
'Production from the Gullfaks South (GSO) fast-track project for improved oil recovery in the North Sea started on 27 July. GSO will increase the output from the Gullfaks area by around 65 million barrels of oil equivalent' Statoil wrote on Wednesday.
The sentiment for offshore activity in the United Kingdom remains negative, but it is rebounding.
'Oil & Gas UK's Business Sentiment Index for the second quarter of 2015 published today (29 July) shows that the UK oil and gas industry remains fragile but that companies' outlook is improving. Pessimism has moderated with respondents returning a score of minus 27 on a -50/+50 scale, up four points from minus 31 reported by the survey in the first quarter of the year' Oil & Gas UK wrote in a press release.
Last week, Operator Statoil and its PL146/PL333 partner Total E&P Norge announced they made a gas and condensate discovery in the Julius prospect in the King Lear area in Norway's North Sea.
|November, 20, 09:35:00|
|November, 20, 09:30:00|
|November, 20, 09:25:00|
|November, 20, 09:20:00|
|November, 20, 09:15:00|
|November, 20, 09:10:00|
REUTERS - India’s natural gas consumption is expected to rise to 70 billion cubic metres (bcm) by 2022 and 100 bcm by 2030, according to a government think tank and the Oxford Institute of Energy Studies, up from 50 bcm now. India burns just 7 percent of what top user the United States consumes in a year with about a quarter of India’s population.
Norway, which relies on oil and gas for about a fifth of economic output, would be less vulnerable to declining crude prices without its fund investing in the industry, the central bank said Thursday. The divestment would mark the second major step in scrubbing the world’s biggest wealth fund of climate risk, after it sold most of its coal stocks.
WSJ - Light, sweet crude for December delivery rose $1.41, or 2.6%, to $56.55 a barrel on the New York Mercantile Exchange, snapping a three-session losing streak. Brent, the global benchmark, advanced $1.36, or 2.2%, to $62.72 a barrel.
U.S. Rig Count is up 327 rigs from last year's count of 588, with oil rigs up 267, gas rigs up 61, and miscellaneous rigs down 1 to 1. Canada Rig Count is up 24 rigs from last year's count of 184, with oil rigs up 9 and gas rigs up 15.