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About 50 workers were infected by the novel coronavirus during an outbreak in recent weeks at a production well owned by Brazilian oil firm Dommo Energia SA, two regulatory sources with knowledge of the matter told Reuters. The production well, at the offshore Tubarao Martelo field, has been paralyzed since early May, added the sources, who requested anonymity to discuss private operational matters.
Petrobras, the Brazilian state-controlled oil producer, posted an $11 billion impairment in the first quarter after revising down its outlook for crude prices. Even without the impairment, Petrobras reported a loss in the quarter on lower oil prices and the devaluation of Brazil’s real, the worst-performing major currency this year. While low oil prices have battered the industry, Petrobras ended up benefitting from the rebounding oil demand in China.
Experiencing higher than expected demand has compelled Petrobras to revisit its previous decisions. Brazilian state-run company will reverse its previously announced production cuts to meet the surprising growth in demand. The company said, "With demand for our products proving better than expected, we opted to gradually return average production to around 2.26 million bpd in April, while also increasing utilization rates at refineries".
Swedish engineering group, Sandvik has landed the first large scale stainless steel umbilical tube contract in Brazil’s Mero oilfield. The Brazil offshore industry typically uses thermoplastic hose umbilicals. The contract will see Sandvik providing over 500 kms of super duplex Sandvik SAF 2507® stainless steel umbilical tubes encapsulated by Prysmian Group. The Mero oilfield is by a consortium of Petrobras, Total, Shell Brasil, CNPC and CNOOC Ltd.
Brazil's energy and mines minister Bento Albuquerque has put a full stop at the speculations of Brazil joining OPEC. He said, "We don’t want restrictions; we want to increase our production”. However, the minister also said that Brazil is open for discussion with OPEC members regarding possible cooperation. The market started expecting this incorporation when President Jair Bolsonaro announced personal aspirations to join the organisation in October 2019.
Brazilian state-run Petrobras has completed the sale of 34 onshore oilfields in Rio Grande do Norte state to a subsidiary of PetroReconcavo SA. The Brazilian oil major informed about the $266 million deal through a market filing on Monday. The sale is consistent with Petrobras’ divestment strategy to lessen its debt load and focus more on deepwater exploration and production.
ONGC’s overseas division, ONGC Videsh Ltd has made major oil discoveries in Brazil and Colombia. In a statement released on Wednesday, the E&P major informed about encountering the oil bearing sands of 8 meters at a depth of 2852m in Block CPO-5. ONGC Videsh operates the block where PDSA is the partner. In Brazil, ONGC Videsh drilled with its consortium partner, Petrobras in block BM-SEAL-4, encountering oil and gas bearing sands.
Brazil's Petrobras and Equinor have signed a memorandum of understanding on the joint development of natural gas business projects. Both the companies want to focus on enhancing the downstream value through thermoelectric generation. Petrobras informed that "The companies intend to combine efforts in investment in the natural gas, liquefied natural gas (LNG) and power generation segments".
Brazilian state-run major, Petrobras informed about a fire that broke out at its Revap refinery, in Sao Jose dos Campos. On Sunday afternoon, the tanks which store materials used to produce asphalt and fuel caught fire. A statement released by Petrobras read that the fire was brought under control without any casualties. Investigations on the incident are underway.
Oilfield services major, Weatherford has secured its biggest-ever fishing and intervention contract from Petrobras. The deal valued at $87 million will see Weatherford delivering fishing and intervention services to Petrobras. The four-year contract awarded to the Brazilian state-run firm also represents the largest single global award for this kind of work in the recent past.
"Total E&P has awarded Subsea 7 with a contract for the development of the Lapa North East field in Brazil. The contract will require Subsea 7 to transport, install and pre-commission 35km of flexible pipelines, apart from 20kms of umbilical, connecting five wells to the FPSO, Cidade de Caraguatatuba. The Lapa field is operated by Total E&P Brasil, where Shell and Repsol-Sinopec are partners."
Brazil's state-run company, Petrobras has decided to forfeit control of the biggest fuel distributor of the country, Petrobras Distribuidora. Under its new Chief Executive, the oil major went ahead with the privatisation drive and made this decision in a share offering due to be priced on Tuesday. The company holds a 25% share in Petrobras Distribuidora of which it will relinquish the control. It will bring in roughly $2 billion.
Brazilian oil major, Petrobras has put on sale its natural gas fields in Peroa and Cangoa shallow-water, apart from the Malombe deepwater exploration concession. The state-run firm informed in securities filing about initiating the teaser phase of the sale. The fields in Peroa and Cangoa yield about 900,000 cubic meters of gas per day, while the Malombe concession will most likely be declared commercially feasible in 2019.
Petrobras yesterday said in securities filing about making a payment of $700 million to US oilfield services provider, Vantage Drilling Company. The payment pertains to the termination of a 2015-contract awarded by Petrobras to Vantage. The payment comes after US court decision denied Petrobras’ request to revoke the result of an earlier arbitration in Holland. Petrobras has said that the payment does not imply an end to the litigation.
State-owned oil major, Petrobras informed in a regulatory filing yesterday of making natural gas discoveries in six deep-water fields in the Sergipe Basin. Petrobras will now plan a budget to finance production from the potential wells discovered in recent years. A Brazilian Newspaper has estimated that Petrobras could extract up to 20 million cubic meters of natural gas per day from the discovered fields.
A number of scheduled and unscheduled stoppages went on to become the reason for Petrobras' profit downturn in the first quarter. Consequently, the company reported a drop in oil production by 3.5%. The production declined to about 2.4 million barrels of oil equivalent per day attributed by the maintenance work and other interruptions at platforms and FPSO units in January and February.
Malaysian state-owned Petronas has entered into a $1.29 billion deal to buy 50% of Petrobas’ exploration and production rights in Tartaruga Verde field and the Espadarte field. In a statement, the Brazilian state-run firm said that the deal amount will be paid in two installments. The deal is in line with Petrobras’ divestment strategy, under which it has already sold off $11.3 billion worth of assets.
Oilfield services giant, Halliburton has informed about securing an integrated services contract with Royal Dutch Shell. The contract pertains to post-salt development and pre-salt exploration in the Campos and Santos Basins in Brazil. The three-year contract will require Halliburton to offer drilling services for bringing greater efficiency to the project through the integration of multiple product offerings and technologies.