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Sweden-based Coor has landed a contract extension from Norwegian energy major, Equinor for offshore facility management. The contract extension is a direct continuation of Coor's March 2015 contract. Coor has been delivering facility management services to five Statfjord and Snorre oil platforms for 5 years. The contract agreement is estimated to cost Equinor ~$19.8m each year and the latest extension will come into effect from July, 2020.
Oil prices dipped in the international market on Thursday, pushed down by the news of U.S. crude inventories rising the most since 2016 last week. Brent crude futures fell 6.1%, to $24.74 a barrel. U.S. West Texas Intermediate (WTI) crude futures dropped to $20.31 a barrel. EIA data showed an unexpected rise of 13.8 million barrels in crude inventories last week.
Colorado-based Whiting Petroleum Corp today initiated Chapter 11 bankruptcy proceedings, as crude oil prices crashed to 18-year lows. The E&P firm currently has more than $585 million in cash on its balance sheet and will maintain business operations in the normal course, without any material interruption to its vendors, partners or employees.
Oil prices dropped in the international market on Wednesday, stressed by rising U.S. inventories and the rift within OPEC intensified oversupply concerns. Brent futures slipped 3.6%, at $25.41 a barrel. U.S. West Texas Intermediate (WTI) crude futures dropped to $20.37 a barrel. Data released by the American Petroleum Institute showed a rise of 10.5 million barrels in U.S. crude inventories.
As energy firms around the world cut costs amidst the oil price crash, oil supermajor BP plc has decided to not cut jobs over the next three months. A Linkedin post from Chief Executive Officer, Bernard Looney read that the company’s response to the crisis “will not include making any BP staff redundant over the next 3 months.” BP employs over 73,000 staff across several countries.
In the wake of the crash in energy prices, oil supermajor Shell Plc has withdrawn from a major U.S. liquefied natural gas (LNG) export plant under development. The move quickly followed Shell's partner, Energy Transfer postponing its final decision on whether to move forward with the project to next year. Analysts have forecasted a number of under-development projects not moving into execution mode due to sinking energy demand.
Oil prices held steady in the international market on Tuesday, supported by the news of President Donald Trump and Russian counterpart Vladimir Putin agreeing to talks about stabilising the energy markets. Brent futures climbed 3.8%, and were priced at $23.63 a barrel. U.S. West Texas Intermediate (WTI) crude futures jumped 7.2%, and were traded at $21.54 a barrel. The top energy officials from the US and Russia will soon discuss stabilising oil markets.
Engineering firm, Aker Solutions has inked a five-year agreement to provide offshore maintenance and modification services to Brunei Shell Petroleum (BSP) through a joint venture with PTAS Sdn Bhd. The scope of the contract includes maintenance and upgrades to sustain production levels for over 200 offshore assets. The joint venture will operate under the name of PTAS Aker Solutions Sdn Bhd, and will ensure seamless delivery to BSP.
With coronavirus outbreak worsening every passing day, UK trade body Oil and Gas UK (OGUK) has now released figures indicating a 40% drop in the staff across North Sea offshore installations since the start of the outbreak. While over 11,500 normally operate on North Sea installations, the number has dropped to 7,000 workers. OGUK had said in a briefing last week that companies were negating coronavirus risks by bringing staff down.
Oil prices fell flat in the international market on Monday, as the worsening global coronavirus pandemic coupled with the Saudi Arabia-Russia price war weighed heavily on the traders. Brent futures dropped 6.7%, and were priced at $23.25 a barrel. U.S. West Texas Intermediate (WTI) crude futures tumbled 5.4%, and were traded at $20.34 a barrel. Saudi Arabia on Friday dismissed rumors of talks with Russia to balance oil markets.
Energy researcher, IHS Markit has forecasted a huge crude oil storage crunch in the coming time, with the situation close to becoming a reality in as little as three months. The consultant said that current rates of supply and demand indicate an increase in inventories by 1.8 billion barrels over the first half of 2020. There are only an estimated 1.6 billion barrels in storage capacity currently available.
Market researcher, Rystad Energy has forecasted over one million jobs in the oilfield service industry to be lost in the wake of coronavirus outbreak. The looming layoff wave is being attributed to low project volumes because of the Covid-19 pandemic. The oilfield services industry employs over five million people globally. Analysts at Rystad Energy predict that the contractors will drop at least 21% of their workforce.
Norwegian oil major, Equinor has been aiming to cut around $3 billion in investments, exploration drilling and operating costs in order to navigate through coronavirus crisis and low oil prices. In a statement, Equinor affirmed that the new measures will allow its operations to be cash-flow neutral in 2020 at an average oil price of around $25 per barrel. Equinor has already terminated a $5 billion share buyback program.
Oil prices fell in the international market on Thursday, as governments worldwide restricted movement to contain the coronavirus, destroying demand. Brent crude slipped 3.75%, to $26.35 a barrel. US WTI crude dropped 3.8%, to $23.55 a barrel. Market strategist at AxiTrader, Stephen Innes, said, “Oil markets received a lift from the U.S. stimulus chatter, but for the most part activity remains rudderless, awash in a sea of oil,”.
Tullow Ghana has terminated Maersk Drilling's contract for the Maersk Venturer deepwater drillship. The rig which has been working for Tullow Ghana since February 2018 was contracted for operations until February 2022. Following the contract termination, the rig will operate only till June 2020. As of March 20th, 2020, Maersk Drilling upholds its profitability guidance for 2020 of EBITDA before special items of $325-$375 million.
Oil prices edged down in the international market on Wednesday, stressed by declining fuel demand due to the coronavirus pandemic offsetting the pending U.S. economic stimulus package. Brent crude slipped 1.66%, at $26.70 per barrel. US WTI crude dropped 0.42%, at $23.91 per barrel. The US Congress is expected to pass a bill today for pushing out a $2 trillion-stimulus, following an agreement between the U.S. senators and Trump administration.
Oil prices jumped in the international market on Tuesday, buoyed up by the steps taken by U.S. Federal Reserve to boost the economy. Brent crude climbed up 5.1%, to $28.41 a barrel. US WTI crude rose 6.6%, to $24.90 barrel. The expected stimulus bolstered the U.S. dollar lower against other currencies. Oil prices and other dollar-denominated commodities will find support from a weaker dollar.
CNPC-owned China Petroleum Engineering & Construction Corp (CPECC) has landed the $203.5 million worth sour gas treatment contract in Iraq. The engineering contract is part of the 29-month long project which aims at building 4.39 million cubic meter-sour gas treatment facility for Iraq’s Majnoon oilfield. The field is currently operated by state-run Basra Oil Co, and produces around 240,000 bpd, which will be later boosted to 450,000 bpd.