UPSTREAM NEWS

UAE-based oil rigs manufacturer Lamprell has secured a contract from International Maritime Industries (IMI) for the delivery of two jack-up drilling rigs. The two Keppel LeTourneau jack-up drilling rigs will be designed on the basis of the Super 116E. IMI said that the firm will collaborate with Lamprell to construct the two rigs. Lamprell estimates the share from the project to gross at approximately $350m.

Drilling contractor, Maersk Drilling has landed a two well contract extension from Norwegian E&P major, Aker BP for the jack-up rig Maersk Integrator. Maersk Integrator, which is an ultra-harsh environment, low-emission jack-up rig, will move to the Ivar Aasen field offshore Norway to drill two wells. The contract, valued at ~$25.5 million, is expected to start in October 2020, and has an estimated duration of 93 days.

The International Energy Agency (IEA) on Monday said that the oil and gas firms must increase their investment in low-carbon energies. Otherwise, they would face a global backlash that could jeopardize their long-term profits and social acceptance. “Every part of the industry needs to consider how to respond. Doing nothing is simply not an option,” IEA’s Executive Director Fatih Birol said. IEA suggested the sector to boost investments in the cleaner fuels.

Integrated services provider, Sparrows Group has landed a five-year contract from Tengizchevroil (TCO) to provide specialist lifting inspection services for Kazakhstan's Tengiz field. The contract award builds upon Sparrows continued relationship with TCO from 2004. The contract requires Sparrows to conduct pre-mobilization and annual inspections for mobile cranes, gantry cranes, forklifts and boom trucks. TCO operates as a joint venture between Chevron, ExxonMobil, KazMunayGas and LukArco.

American E&P firm, Noble Energy has contracted Maersk Drilling's Valiant for the work offshore Colombia. The contract is valued at $18.2m and is expected to be concluded in 65 days. Noble said that the contract fees also includes mobilization and demobilization services. The 2013-built Maersk Valiant is Maersk Drilling’s seventh-generation drillship and comes equipped with integrated managed pressure drilling (MPD) capabilities.

The United States Department of Energy Small Business Innovation Research Program has presented a Phase I grant to E-Spectrum Technologies and Dr. Eduardo Gildin of Texas A&M University. The grant will be used in creating an advanced advisory system that precisely portrays the underground circumstances in real-time during drilling operations. E-Spectrum currently deploys algorithms to collect and filter data from bit vibrations, speed or sound changes, and temperature or pressure changes.

Apache Corp has informed about closing its San Antonio, Texas office through which the firm oversees its Alpine High venture in the Permian basin. The move will cost approximately 272 employees their jobs. The layoffs follow a warning from Apache to move capital away from the struggling Alpine High region. A filing made by Apache with the Texas Workforce Commission informed that affected employees will leave the company on March 6.

Occidental Petroleum on Wednesday informed about ‘significantly’ reducing its workforce, after buying out its rival Anadarko Petroleum last year. Layoffs are currently underway across the company, after staff was cut through a voluntary program, spokeswoman Melissa Schoeb said. She added, “Occidental’s integration team identified the jobs we need to successfully and safely operate our business and achieve our synergy goals,”.

A document from the Chinese Ministry of Natural Resources has revealed that in order to increase oil and gas development in the country, China will open its oil and gas exploration and production to foreign firms. However, only those foreign firms will be allowed who have registered in China with net assets no lower than 300 million yuan ($43.29 million) from May 1.

French Geoscience company, CGG has informed about concluding its withdrawal from the marine seismic acquisition business. CGG farmed out the marine seismic acquisition business in a strategic partnership transaction to Shearwater GeoServices. CGG also informed about the creation of a joint venture under the Sercel brand for the research and development, manufacturing, commercialization, and support of marine streamer seismic acquisition equipment.

Houston-based Chemicals manufacturer, Nissan Chemical America Corporation (NCA) has joined hands with industrial gas suppliers, Messer Americas, to enhance oil and gas production. The two firms have collaboratively developed a treatment, nanoActiv HnP—an energized, fast turnaround style “Huff ‘n Puff”— which incorporates nanoActiv with a CO₂ or N₂ gas application method to enhance oil and gas recovery.

Apache Corp and Total’s major oil discovery on Tuesday in Suriname sent Apache’s shares soaring to nearly 27%. Apache said the discovery conformed to a geologic model with 73 meters of oil pay and 50 meters of light oil and gas condensate pay, with more appraisal planning underway. Apache’s contract with Total included $100 million upfront payment and expenditures sustained in exploration.

Oil behemoth, Saudi Aramco’s shares sank to its lowest value since the IPO, on Sunday. Aramco’s share value dipped by 1.7%, to $9.21 per share in the late afternoon trade. The shares retorted to across-the-board selling in the Gulf markets after a U.S. drone attack killed the Iranian military commander Qassem Soleimani and his convoy at Baghdad airport.

Indonesian hydrocarbon company, PT Pertamina has aimed to start drilling in Indonesia's Rokan oilfields in the third quarter of this year. It has planned to drill 20 wells minimum this year. The Indonesian government had decided in 2018 to hand over the operatorship of Pertamina over Rokan block as the contract with Chevron Corp ends in Aug'21.

Wellbore Integrity Solutions (WIS) has concluded the acquisition of Schlumberger’s fishing & remedial division, DRILCO and Thomas Tools. WIS has acquired businesses and assets in 16 countries initially and expected to close acquired assets and businesses in 9 other regions in coming months, “Today marks the first day of bringing the WIS vision to a reality,” says David MacNeill, President and CEO, WIS.

Daqing, PetroChina’s oil and gas production unit, has reported an increase in production of oil and natural gas during 2019. The oil production has raised by 4.7 % between 2018 and 2019. The company produced about 43.63 million tonnes of oil in 2019. The amount of natural gas production also increased to 4.5 billion cubic meters from 4.33 bcm in 2018. The company thanked to improving technologies which have aided in the rise of production.

EPC giant, McDermott's share saw a downfall for a second day on Tuesday, stressed by reports of McDermott discussing bankruptcy with lenders. Sources revealed that the representatives of McDermott, BauPost Group LLC and HPS Investment Partners LLC are looking to negotiate for a $2 billion bankruptcy loan. The company had struggled to acquire over Chicago Bridge and Iron Company and cleared the remaining projects leading to less profit in September.

Iraq has decided to increase production from oil fields in Basra after the production from Nassiriya oil fields were stopped abruptly by protestors. The move aims at preventing the country's export and production from declining. Iraq can also increase the production from Majnoon oil fields to cope up with the situation. However, it is a tense situation as Nassiriya produces 80-85,000 BOPD and this is the first time when protestors have shut an entire oilfield.