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Qatar Petroleum (QP) yesterday entered into an agreement with Italian energy multinational, ENI to acquire stakes in three oilfields, offshore Mexico. Briefing at a news conference in Doha, QP CEO Saad al-Kaabi informed about QP acquiring 35% stakes in in the Mexican oilfields. Production at these fields is projected to commence by mid-2019, which will be then ramped up to 90,000 bpd by 2021.
Mexico’s newly elected President yesterday revealed plans of constructing an $8 billion oil refinery and to renovate six others in a bid to lower Mexico’s dependence on imported fuel. Lopez Obrador, who took the President’s office in Dec, is looking to finance $3.65 billion for the state-owned oil major, Pemex. In 2018, Pemex has produced less than 1.8 bbpd of crude, heading towards 14th consecutive year of declining oil output.
Mexico-based Sierra Oil & Gas has inked an agreement with German E&P firm, Deutsche Erdoel AG (DEA AG) to integrate its business with DEA AG’s wholly-owned subsidiary, Deutsche Erdoel México. The integration will expand DEA AG’s portfolio in Mexico to ten exploration blocks and one onshore production block. The transaction is estimated to be completed during the first half of 2019.
Shell’s subsidiary, Shell Exploration and Production Company has awarded a contract to McDermott International, Inc. The contract is for new subsea umbilical and flowline installation at the Great White Frio development in Alaminos Canyon Block 857 in the U.S. Gulf of Mexico. The scope of work includes, project management and engineering along with installation of one 2,000-ft steel flying lead, installation of two EFLs and various other services.
McDermott International has secured a contract for concept and engineering services for Talos Energy's Zama field project. McDermott will manage this contract with io oil & gas consulting, a JV between McDermott and BHGE. The EPC giant will provide the follow-on pre-FEED services, based on the final concept solution identified by io. Work is expected for completion in 3Q2019.The Zama development is the first offshore Mexico block awarded to a private operator.
Eni Mexico has handed Japan’s MODEC a Letter of Intent for supplying, chartering and operating an FPSO vessel for its Area 1 project in Mexico. MODEC will carry out the engineering, procurement, construction, mobilization, installation and operation of the FPSO at the Area 1 project. First oil production by FPSO is scheduled in 2021.
Encana Corporation has entered into an agreement with DJR Energy to sell its San Juan assets in $480 million. Encana’s subsidiary, Encana Oil & Gas (USA) Inc. carried forward the transaction. DJR will gain ownership to San Juan assets which cover approximately 182,000 net acres. The transaction, which is expected to conclude by the fourth quarter of 2018, is subject to the satisfaction of closing conditions and customary closing adjustments.
The Tropical Storm Gordon is affecting the production in U.S. Gulf of Mexico. Evidently, three more oil producers have pulled their employees out of the storm’s path and production has reduced by 9%.The storm which was expected to progress westward has now shifted eastward. Companies like Talos Energy Inc. Exxon Mobil Corp and Chevron Corp, on Tuesday, vacated and shut many platforms in the eastern Gulf of Mexico.
Pemex-owned, Mexico’s largest refinery in Salina Cruz resumed operation, post a shutdown due to a power outage on Wednesday. The Salina Cruz refinery processes 330,000 barrels of crude oil per day (bpd). Mexico’s state-owned oil company, Pemex has increased processing at the refinery to somewhat more than 200 Mbpd of crude.
McDermott International has bagged a subsea pipeline flowline installation contract from PEMEX Exploration & Production. The contract is on a lump sum basis. McDermott will perform the design and detailed engineering, procurement, construction and installation (EPCI) for two subsea pipelines in support of Ayatsil field, offshore Mexico. Installation of the pipelines is slated for completion in the first phase 2019.
EPCI firm, McDermott International has been awarded a contract for the Perdido project of Shell in Mexico. McDermott will carry out the installation of umbilicals and flowlines for the development of Perdido in the Gulf of Mexico. Engineering and project management will be executed in Houston. McDermott’s North Ocean 102 installation is scheduled for completion in 2019.
US oilfield service firm, McDermott International has won a contract of pipeline installation worth approximately $1-$50 million with Mexico’s Pemex. McDermott is expecting the project to be completed by next year. VP of the oilfield services firm said that they are happy to collaborate with Pemex and are looking forward to the successful delivery of the project.
Jersey-based oilfield services provider, Petrofac entered into an agreement to farm out 49% of its operations in Mexico. The stakes have been sold to Perenco International, which will pay initial cash consideration of $200 million. Petrofac is planning to utilise the proceeds from the sale to reduce its gross debt. The deal is subject to approval by COFECE, Mexico and is expected in 4Q2018.
Canadian energy major, TransCanada, yesterday, kick-started a 560-km long Topolobampo natural gas pipeline in Northern Mexico. The $1.2 bn-pipeline will facilitate in upstream interconnection with the Mazatlan pipeline of TransCanada. The supply capacity of the Topolobampo pipeline will be of 670 million cubic feet of natural gas per day.
German E&P giant, DEA Deutsche Erdoel has secured the contracts for three exploration blocks 16, 17 and 30, offshore Mexico granted by the National Hydrocarbons Commission CNH (Comisión Nacional de Hidrocarburos). The contracts were signed by DEA’s subsidiary, Deutsche Erdoel Mexico, and partners. Deutsche Erdoel Mexico will act as the operator in all three blocks.
Mexico’s oil regulator, National Hydrocarbons Commission, on Tuesday declared the main bid variables for the auction of 37 onshore blocks scheduled in September. The regulator also released the bid terms for the seven joint ventures on offer with the national oil company, Pemex to be hosted in October. The new bid variables shed the past practice of setting maximum and minimum values for the additional royalty.
In an unpredictable move, US has ended steel and aluminum tariff exemption for EU, Mexico, and Canada from the start of June. The US levies a 25% tax on steel and 10% tax on aluminum on import duties. This decision has invoked words of retaliation from the inflicted countries. The tariffs will hit products and raw materials which are used extensively in US manufacturing, construction, and the oil industry.
W&T Offshore and Baker Hughes, a GE company (BHGE), have come together in a strategic partnership for 14 drilling projects, most of which are operated by W&T in the Gulf of Mexico (GOM). The idea is to utilize the BHGE’s expertise in engineering, products and services to reduce total project costs and time, consequently enhancing the execution efficiency.