TOPICS OF INTEREST
Pembina Pipeline To Acquire Kinder Morgan Canada in $4.35-Billion Deal
Calgary-based Pembina Pipeline Corp. has entered into agreements to acquire Kinder Morgan Canada Ltd. and the US portion of the Cochin Pipeline system from Kinder Morgan for a total purchase price of approximately $4.35 billion.
Subsea Markets Face High Stakes if Oil Prices Slide
In a $60 to $70 oil environment, the subsea market is poised to grow around 7% annually up to 2025. But a significant portion of this activity is at risk if the price of Brent crude falls to $50 per barrel.
Swire Seabed Completes Autonomous Pipeline Inspection for Equinor
The subsea operations company said its most recent campaign is the first fully unmanned offshore pipeline inspection completed “over the horizon,” surveying up to 100 km from the shore.
Freeport LNG Train 1 Begins Production
Freeport marks the sixth major LNG export facility to start operations in the US. Commercial deliveries are expected to begin in September, with Osaka Gas and JERA taking half of the Train 1’s offtake capacity.
Equinor Starts Up Mariner Field in North Sea
One of the largest industrial projects in the UK in recent years, Mariner marks Equinor’s first operated field on the UK Continental Shelf. It is expected to produce 70,000 BOPD at peak rates.
July Marks Record Month for Gas Deliveries To US LNG Export Facilities
The US EIA reports that natural gas deliveries producting LNG for export reached 6.0 Bcf/D in July. Deliveries to LNG export facilities have been the fastest growing among all natural gas consumption sectors this year.
First Kenyan Oil Exports Heading To ChemChina
Seven years after discovering commercial reserves in the northern part of the country, the Kenyan government and a group led by Tullow have accepted a bid from the Chinese trading company to purchase its first shipments of crude.
Shenzhen Gas Set to Open New LNG Terminal
The launch will make Shenzhen Gas the second Chinese city gas distributor backed by a local government to own an LNG import facility, following Shenergy Group’s Shanghai import terminal. Eni is set to deliver an initial cargo to the facility.
Equinor Gets Green Light To Start Up Utgard
The Norwegian Petroleum Directorate has given clearance to start up facilities at the North Sea field, which straddles the line between the UK and Norwegian sectors. Production is set to begin in September.
First Permian Crude Delivered From Cactus II Pipeline
Trafigura confirmed that it had begun shipments from the Permian to Corpus Christi via the pipeline, which has a 670,000-B/D capacity. Operator Plains All American announced last week that it had completed work on the pipeline.
ALE Completes Record Lift for Total’s Egina FPSO
At nearly 3,000 tonnes, the company said its lift of an FPSO module was one of the heaviest land-based crane lifts ever performed. ALE was contracted to lift six modules for Total’s FPSO module integration project in Nigeria.
Australia Set To Become King of LNG Exports
Exports capacity has been rising for a decade and is on track to become the world leader within a year.
Capital Discipline Drives E&P Sector as Investors Look for Better Returns
The E&P sector has maintained a strong focus on capital discipline during its recovery from the 2014 oil price downturn, as investors look for companies to generate free cash flow to help pay down debt. How will this focus affect sector growth in the near term?
Hillcore Group Acquires Major Canadian Well Services Company
The private investment firm said it will partner with Treeline Well Services, one of the largest private rig providers in Canada, to build its service fleet following acquisition of the company. Treeline’s core areas are in Alberta and British Columbia.
Kosmos on Track for Mauritania, Senegal Deal
The E&P company said that a reduction in its interests for projects off the coast of the West African nations should still happen by the end of this year. This includes the large Greater Tortue Ahmeyim LNG project, which is set to start up in 2022.
Plains Adds Fee for New Pipeline, Cites Tariffs
In a filing with the US FERC, Plains All American Pipeline said it would begin charging shippers an additional fee on its Cactus II pipeline to offset higher construction costs incurred in the wake of US steel tariffs.
Neptune Gets Nod for Decommissioning of Juliet Field
The decision comes a year after Neptune stopped production from the North Sea gas field, and 4 months after it submitted decommissioning plans to the UK authorities.
Shell Sanctions Deepwater PowerNap Project
The subsea tieback is expected to start up in 2021. This is Shell’s second major development on a tieback in the US Gulf of Mexico, following Kaikias’ startup in May.
Water Midstream Companies Strike Deals in Delaware, STACK Plays
A joint-venture agreement gives Solaris control of Concho’s produced-water infrastructure in New Mexico, and Lagoon Water Solutions closed on a deal with Continental in Oklahoma.
Johan Sverdrup Phase 1 Nearly Complete, Startup on Target
Lundin reports that the hookup and commissioning of installed facilities at the large North Sea field is progressing as planned. Phase 1 startup is still scheduled for November.
Neptune Begins Subsea Installation Work on Duva Field
The Neptune-operated project is on track to start drilling later this year, with first oil scheduled for the end of 2020. The Norwegian North Sea field is expected to produce 30,000 BOE/D at its peak.
Price and Cost Risks Drive Race To Secure FID, FEED, and Contractors for Global LNG
Approximately $200 billion in projects worldwide are racing to be approved over the next 2 years. The race is not just to make FIDs on projects, but also to enter FEED work to lock in contractors before others do.
Leviathan Partners Mulling FLNG Facility
The facility would enable exports from one of the world’s largest gas discoveries to new markets, primarily in Europe and Asia. The Leviathan partners have signed deals to export gas to Middle Eastern countries such as Egypt and Jordan.
Is Optical Gas Imaging the New Solution for Methane Detection?
Thermal imaging helps operators maintain regulatory compliance on methane-emissions requirements. Optical gas imaging technology may be an answer in allowing for faster, more efficient inspections, but there are hurdles to its adoption. How can its widespread use become a reality?
Aker Energy Moves Closer to IPO
With a $100-million investment and submittal of its offshore Pecan field development plan to Ghana authorities, Aker Energy continues its positioning for an IPO later this year.
Vaca Muerta Growth Drives Argentina LNG Exports
Production from the Vaca Muerta now accounts for 23% of Argentina’s natural gas output. With only 4% of the shale play’s acreage in development, the US EIA says the country is in position to boost LNG exports in the coming years.
Surveys Show Minority of Oil and Gas Firms Investing in Water Management
Getting water is a big issue for those who fracture wells, as is the disposal of it. The number of companies investing in water facilities and reuse, though, remains a minority.
TechnipFMC Begins Pipeline Work in Campos Basin
One of the company’s pipelay and construction vessels will install rigid and flexible pipelines for Equinor’s Peregrino Phase 2 project, adding an estimated 273 million bbl of recoverable oil to the field.
ADNOC and CNOOC To Collaborate in Upstream, Downstream, and LNG
ADNOC and CNOOC will explore multiple new opportunities for collaboration across the upstream and downstream sectors in the UAE and China.
Freeport LNG Train 1 Enters Final Commissioning Stage
The introduction of feed gas into Train 1 of the natural gas liquefaction and LNG export facility marks the transition from construction to startup. Upon startup, Freeport LNG will become the first world-scale electric LNG liquefaction plant in North America.
Private Equity Fund To Acquire BHGE’s Reciprocating Compression Division
The reciprocating compression division manufactures and services compression and engine systems that are used in a variety of applications, including the transmission of natural gas across domestic and international pipelines.
Restoration of Oil and Gas Production Continues in Gulf of Mexico
The Bureau of Safety and Environmental Enforcement reported about 14% of oil production and about 14% of natural gas production remains shut in following Tropical Storm Barry.
Static Equipment: Understanding Heat Exchangers
Take a closer look at heat exchangers, including the various types and designs available, applications, and selection considerations. This article helps the project engineer, who is not an equipment specialist, to check that economical choices are made across all involved disciplines.
ABS To Classify New Monocolumn Platform Designed for Offshore Malaysia
ABS will classify a new self-elevating platform with a unique triangular monocolumn design from Calm Oceans Pte Ltd.
Xodus Group To Acquire Green Light Environmental
The acquisition will add to the group’s offerings aimed at environmental impact assessments and project approvals.
Personnel Begin Reboarding Platforms After TS Barry
Offshore personnel are reboarding Gulf of Mexico platforms, oil and gas production begins recovery.
Slight Uptick in GOM Shut-Ins as TS Barry Continues Onshore
All 20 dynamically positioned rigs have returned to pre-storm locations. Operators' reports of evacuated personnel remain unchanged from yesterday.
70% Oil, 56% Gas Production Shut In as Barry Makes Landfall as Tropical Storm
The Gulf of Mexico disturbance, Barry, made landfall today near Intracoastal City, Louisiana, and weakened to a tropical storm.
Twelve Companies Vie To Build Bangladesh’s First Onshore LNG Import Terminal
The country has scrapped plans to build additional FSRUs, and decided instead on land-based LNG as the mainstay of its energy mix
Water Outside the Permian: How Are Other Basins Handling the Volumes?
The Permian gets the lion’s share of attention when it comes to produced water, but other basins have a need to haul volumes off-site. How has the market changed in these areas recently? Is there a greater enthusiasm for pipelines, and can water midstream thrive?
Africa Takes the Lead in Record Year for LNG
Driven by Mozambique’s Area 1 and Area 4 projects, Africa is poised to become the dominant LNG investment destination by the end of this year, with the continent seeing nearly one-third of total greenfield investment.
GOM Operators Begin Evacuations as Tropical Storm Advances
As a disturbance in the Gulf of Mexico continues to develop, about 32% of the oil production and 18% of the natural gas production in the GOM has been shut in.
InfraStrata Considers Deal For UK FSRU Project
The UK-based energy infrastructure development firm has entered an exclusivity agreement with Meridian Holdings for an FSRU project offshore northwest England. The project would include a floating FLNG receiving port.
Total To Sell UK North Sea Assets to JV
The $635-million deal sees Oman-based Petrogas and Norwegian private equity company HitecVision acquire a package of non-core North Sea assets, including 100% ownership stake in four fields.
New Pipelines Needed to Meet Surge in Permian Crude Demand
Growing supply of Permian crude oil means the basin will need extra takeaway capacity of up to 500,000 B/D by the end of the 2020s, according to new research from Wood Mackenzie.
Integration, Collaboration Drive Water Midstream Growth in Permian
As Permian production ramps up and saltwater disposal well capacity is pushed to its limit, companies see a need to develop collaborative, commercially viable methods of handling produced-water volumes. If reuse remains at its current rate of only 15%, operators could face a $30-billion tab.
Kuwait Oil Pursues Offshore E&P, Signs With Halliburton for Services
Kuwait Oil Co. signed a $597-million offshore drilling services contract with Halliburton for six high-pressure/high-temperature exploration wells on two jackup rigs in the Arabian Gulf.
McDermott Completes First Installation Campaign for R-Cluster Project Offshore India
Completion comes despite two cyclones disrupting the project area during installation, McDermott said.
US LNG Export Capacity Growth Will Keep Floor Under Natural Gas Prices
With almost 10 Bcf/D of liquefaction capacity scheduled to go into service by 2025, a new report from Moody’s says that US LNG exports should help solidify a floor under natural gas prices as LNG markets see a shortfall in supply.
Neptune Gets Green Light for Pair of North Sea Tiebacks
Norwegian authorities approved development plans for Duva and Gjøa P1, both of which are expected to produce first oil in late 2020. The fields will each tie back to the Gjøa platform on the Norwegian Continental Shelf.
The Opportunity and Threat Posed by US Shale Water
The well count and completion intensity of US tight oil and gas operations have grown in recent years, and rising pressure from environmental regulations means that produced water management has become a key focus for operators.
LLOG Starts Production at Buckskin Project
Phase 1 production from the deepwater US Gulf of Mexico field is expected to reach 30,000 BOPD. The field contains an estimated 5 billion bbl of oil in place.
Seawater Cooling System To Be Integrated on Newbuild Cable-Layer
Hydroniq will deliver a hull-integrated seawater cooling system for a cable-laying vessel the Norwegian shipbuilder Vard is designing and building for Prysmian Group.
Service Companies Show Pricing Power Growth
New analysis from Rystad Energy shows service companies are beginning to raise prices after seeing a significant drop following the oil price downturn. Pricing power is projected to keep rising in 2020 as the service industry sees more demand across the supply chain.
Anadarko Sanctions Mozambique LNG Project
The $20-billion FID is the largest ever for a sub-Saharan oil and gas project. The project’s location on the African east coast puts it in optimal position to sell LNG to the lucrative Asian market.
Shell’s Brent Bravo Platform Removed from North Sea
Bravo is the second of four platforms to be decommissioned and removed from the Brent field, following Brent Delta in 2017. The field has produced approximately 3 billion boe since 1976.
Operators Build the Business Case for Drones
Drones are becoming an important tool for energy companies looking to improve on-site safety and operational efficiencies, and the industry is looking for the best way to maximize their value. What are some the challenges in getting these programs off the ground?
Inpex Inks Deal With Indonesia for Abadi LNG Project
The Japanese operator will submit a development plan to the Indonesian government within the next few weeks, with FID for the $20-billion project coming around 2022. Abadi LNG is projected to deliver 9.5 mtpa of LNG.
Phillips 66 Forms JVs To Boost Takeaway Capacity from Bakken and Permian
Phillips 66 and partners in two separate joint ventures are building the Red Oak and the Liberty pipeline systems to deliver a total of approximately 750,000 BOPD to the US Gulf Coast with startup of service in early 2021.
BHGE Launches Multimodal Facility Expansion in Angola
The facility will serve as a hub to support customers and projects in the Angola and Southern Africa region.
Cactus II Pipeline To Start Partial Service in the Permian by Year End
Approximately 90% of construction work has been completed on the pipeline, which is expected to transport up to 670,000 BOPD from the Permian Basin to the US Gulf Coast. Cactus II is one of several pipelines aimed at alleviating takeaway concerns in the Permian.
Shell Ships First LNG Cargo From Prelude
First cargo from the world’s largest floating LNG project comes in the midst of low LNG prices sparked by a global supply boost. Prelude is expected to produce 3.6 mtpa for Shell.
Tank-Capacity Growth Suggests LNG Boom in Ship Fuel
Exponential growth in LNG tank capacity, fueled by the introduction of LNG fuel in shipping sectors, indicates a possible shift in the fuel mix.
Supply Vessel Collides With Equinor North Sea Platform
The company evacuated 276 people on board Statfjord A after the collision, which happened in connection with loading operations. No injuries were reported, and the total extent of the damage on the platform is being investigated.
Hurricane Energy Produces First Oil From Lancaster Field
The field startup is Hurricane’s first step to actualizing its potentially considerable resources in the UK North Sea. Lancaster is expected to produce an average of 17,000 BOPD by the end of the year.
Equinor Targets 2022 FID on Rosebank Project
One of the largest pre-sanction fields on the UK Continental Shelf, Rosebank, could significantly bolster the company’s UK portfolio. However, the field’s water depth and harsh environment may run development costs into the multibillion-dollar range.
Joint-Venture Partners Contract With Anadarko for Mozambique Area 1
Anadarko Petroleum selects JV companies to provide EPC for the onshore LNG development. Saipem scores the biggest contract in its history. Work will begin upon FID, expected this month.
Can Robots Improve Above-Water Riser Inspections?
The criticality of above-water riser hull piping requires frequent inspections. Traditional manual inspection methods present safety and efficiency concerns, but work is being done to see if robotic technologies—such as drones and crawlers—can do the job as good as, or even better than, humans.
API Releases Guide for Drones in Oil and Gas
As drones become a more significant part of energy projects, the guide outlines the steps operators should take in assessing their capabilities to run a drone program and the elements such programs should consider, including safety and regulatory concerns.
Cheniere Makes FID on Sabine Pass Train 6, Signs Gas Deal With Apache for Corpus Christi Facility
Sabine Pass Train 6 gets the nod, Bechtel gets the go-ahead for construction. Apache Corp. signed a deal with Cheniere to supply natural gas produced from its Permian Basin Alpine High area to the Corpus Christi LNG facility
Weld Overlay Joins the Party as Corrosion-Resistant Pipe Undercapacity Threatens Project Scheduling
It is rare that businesses selling equipment to the oil and gas sector can benefit from lower oil prices. But that is the case for CRA pipe manufacturers, which are comfortably outperforming 2014 levels.
Addressing the Gaps in Subsea Produced Water Treatment
Operators are looking for ways to better handle water coming from subsea wells, which is typically treated at topside facilities. Subsea separation systems are not equipped to discharge water back into the reservoir, so how do companies close the gaps?
Freeport LNG Authorized for Additional Exports
The US Department of Energy authorized the export from the terminal’s fourth liquefaction train to countries that have no free trade agreement with the US.
BP Approves Thunder Horse South Expansion Phase 2
The deepwater Gulf of Mexico project is expected to add 50,000 B/D of oil production through the construction of two new subsea production units and production wells.
Tariffs Pack a Bigger Punch Than Tax Incentives
Louisiana state granted a tax incentive to LNG Ltd. for its Magnolia project in Lake Charles. Although a beneficial development, it’s a drop in the bucket in the company’s progress toward FID.
US Lifts Metal Tariffs on Canada, Mexico
The decision may alleviate some of the pressures oil and gas producers faced in the wake of their imposition last year. Canada and Mexico made up a combined 20% of US imports of oil country tubular goods in 2017.
Lessons Learned From the Big Foot Mooring Incident
After suffering major setbacks, Chevron’s massive Big Foot project finally achieved first oil last November in the US Gulf of Mexico. With the setbacks in the rear-view mirror, project personnel spoke about the challenges.
Saudi Aramco Buys Into Port Arthur LNG
The deal with project developer Sempra includes Saudi Aramco netting 5 mtpa of LNG offtake and a 25% equity stake in Phase 1 of the export terminal, which may reach FID later this year.
How To Design an Unmanned Minimal Floating Platform
Unmanned minimum facility platforms are a reliable alternative to traditional wellhead platforms or subsea installations, and the technologies enabling simpler designs have evolved.
Santos P'nyang Farm-In Advances PNG LNG Expansion
Santos signed a binding letter of intent to acquire a 14.3% interest in Petroleum Retention License 3, which contains the P’nyang natural gas field in Papua New Guinea.
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02 August 2019
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ITEMS OF NOTE
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18 December 2017
28 November 2017