GE Oil & Gas to become separate company
Industry giant GE Energy has announced plans to spin off its oil and gas unit into a separate company. The New York-listed energy player will divide itself into three separate companies, GE Power & Water, GE Oil & Gas, and GE Energy Management. The Fairfield, Connecticut head office of GE Energy will close under the change to take effect in the final quarter, in move that General Electric says will cut out a layer of administration and speed up decision-making. “Removing layers is one way to reduce costs and increase our speed, focus, and agility in the marketplace so we serve customers better,” commented GE chief executive Jeff Immelt of the split. GE Energy chief executive John Krenicki, who Immelt credited with the decision to split the businesses, is to pilot the re-organization before quitting GE in December after 29 years. Florence-based GE Oil & Gas, led by chief executive Dan Heintzelman, will become a separate outfit with around 33,000 employees and revenues of around $15 billion. It provides equipment and services for all segments of the offshore and onshore industry, including turbo-machinery and drilling and surface, subsea and pipeline equipment and services. The new company, which will report directly to Immelt, will publish its own financial data beginning with the fourth quarter.
Source: Upstream Online
Company to explore for oil, gas in northern region of Jordan
The Natural Resources Authority (NRA) on Sunday signed a memorandum of understanding with Thyssen Petroleum Ltd. to explore for oil and gas in a 7,000-square-kilometre area in the northern region. NRA Director General Mousa Zyoud, who signed the memo with Thyssen Petroleum CEO Hamid Jourabchi, said despite the technical difficulties in the chosen area, initial studies performed by the company's staff showed positive indicators of the availability of oil and gas. He added that the NRA gives priority to any oil and gas exploration projects in order to reach solutions to Jordan's energy crisis.
Source: Jordan Times
PetroChina gets 40% share of Qatar offshore block
PetroChina, Asia's largest oil and gas producer, signed an agreement to acquire 40 percent of exploration and production rights for Qatar's Block 4 from GDF Suez Qatar, which is the operator of the block, Qatar Petroleum said in a statement on Wednesday. Under the agreement, QP authorizes PetroChina Investment to acquire 40 percent of the exploration and production rights from GDF Suez under Qatar's exploration and production sharing agreement (EPSA) for Block 4, an offshore block located north of the Gulf Arab state. GDF Suez Qatar will continue to be the operator of the block with its 60 percent stake. "I am confident that with GDF SUEZ and PetroChina working together, they would be able to effectively accomplish the exploration program that is set to be implemented in Block 4," Qatari Energy Minister Mohammed al-Sada said in the statement. The block, close to the North Field which is the source of the country's massive gas reserves, extends for more than 2,500 square kilometers in area at water depths up to 75 meters. The two partners will begin drilling in Block 4 in the next few months. "Qatar Petroleum is glad to support PetroChina's participation in another exploration activity in Qatar in addition to its interest in the Block D exploration," Sada said. PetroChina signed another EPSA in May 2012 with QP and Royal Dutch Shell through which the partners have been jointly exploring for natural gas in Block D. "Qatar is keen to have a broader bilateral cooperation with China and we see this as another step to further strengthen the friendly relations between the two countries," Sada said.
Mubadala unit plans to develop Thai oil field
Abu Dhabi's Mubadala Petroleum said on Monday that it and its partners plan to begin developing an oil field in the northern Gulf of Thailand. Mubadala said in a statement that it hopes to begin production from the Manora field in early 2014, with peak production of 15,000 barrels a day within a few months of operation. Located in the northern part of the Gulf Of Thailand, the Manora field was discovered in 2009, with a primary reservoir estimated to have proved and probable reserves of 20.2 million barrels, Mubadala said. The project, worth $246m, is operated by Pearl Energy, Mubadala Petroleum's subsidiary focused on Southeast Asia. Pearl holds 60 percent of the Manora concession while Australia's Tap Oil holds 30 percent. Northern Gulf Petroleum, where Tap Oil has a 75 percent stake, has the remaining 10 percent. "The initial development phase will consist of 10 production wells and five water injection wells targeting the primary reservoir. It is planned to commence production in early 2014 and peak rates are expected to reach approximately 15,000 bpd within a few months from first oil," the statement said. Maurizio La Noce, CEO of Mubadala Petroleum, added: "The development of Manora marks an important new chapter for us in the Gulf of Thailand." Mubadala Petroleum is part of Mubadala Development Company, an investment vehicle of the United Arab Emirates capital Abu Dhabi.
Taqa wins $355 million financing for Ghana project
Abu Dhabi National Energy Company (Taqa), a state-owned oil explorer and power supplier, secured a $355 million project financing and government approval to expand its power plant in Ghana, it said on Monday. Taqa, which is owned 75 per cent by the government of Abu Dhabi, will expand the Takoradi 2 (T2) power plant's capacity from 220 MW to MW, the firm said in a statement. Japan's Mitsui & Company and Korea's Kepco will start construction of the plant this month, the statement added. The Taqa-operated T2 power plant currently represents 15 per cent of Ghana's installed power production capacity. The expansion is expected to be commissioned in 2015. The $355 million project financing will come from World Bank unit International Finance Corp and a consortium of financial institutions that include FMO, the majority Dutch government-owned development bank, the African Development Bank, Agence Francaise de Development and Deutsche Investitions-und Entwicklungsgesellschaft. The T2 power plant is owned by Takoradi International Company (Tico), a joint venture between Taqa, which owns 90 per cent of the plant and Volta River Authority, the main generator and supplier of electricity in Ghana which owns the remaining 10 per cent stake. The Abu Dhabi Company is the operator of the facility through its wholly-owned subsidiary Taqa Generation International Operating.
Source: TradeArabia News Service
Iraq government blacklists Chevron for Kurdistan oil deal
Iraqi government has blacklisted the US Chevron Corp and barred it from signing deals with Iraqi Ministry of Oil, a statement by the Ministry said. The statement said the decision was made after the corporation announced on July 19 it has purchased 80% of stakes in Sarta and Rovi blocks of the Iraqi Kurdistan Region from India's Reliance Industries Ltd. Austria's OMV AG holds the rest-20%. The statement said the Corp, second largest US Oil Company after Exxon Mobil Corp, has signed the deal without the approval of the Ministry. It added the corporation signed the deal with Kurdistan natural Resources Ministry despite its knowledge that Baghdad recognizes Kurdistan's oil deals "illegal and unconstitutional. The statement further renewed accusations of oil smuggling by the Kurdistan Region to Iran and Turkey and slammed Chevron Corp for "defaming" itself. "The reputation and credibility of Chevron and other companies are being tested today and we are fully confident the result of its test is a total failure and it should feel ashamed of its action," the statement said. The subject of Kurdistan oil deals and revenues has become very sensitive. The Kurdish officials claim by virtue of constitution the regions are entitled to sign deals independently of Baghdad. Baghdad officials on the other hand are keen on a centralized control over oil. Baghdad has always been critical of Kurdistan oil contracts and accused Kurdistan officials of smuggling oil and not being transparent about the oil revenues. Kurdish officials also accuse Baghdad of smuggling oil to Israel.
Source: AK News
UAE secures strategic oil hubs despite Iran’s interference
On the east coast of the Oil Producing Export Country (OPEC) member UAE, will grow in importance as an oil trading hub with the opening of a pipeline that allows the UAE to export most of its crude without having to sail tankers through Hormuz. With 1 million barrels of crude already flowing through the new pipeline into storage tanks on the Gulf of Oman coast, Abu Dhabi National Oil Company (Adnoc), expects to load its first cargo soon. The new pipeline, the Abu Dhabi Crude Oil Pipeline Project (Adcop), and a planned refinery are expected to add 12 million barrels of storage when completed. Adnoc already has 8 million barrels of crude storage just north of Fujairah. Securing strategic oil storage space at Fujairah has been a top priority for oil producers and trading houses. But it faces rising competition from the port of Sohar, down the coast in small non-OPEC producer Oman, which is also expanding its facilities by upgrading a refinery. Several oil traders have already secured oil storage space in Sohar. Fujairah’s oil storage capacity is expected to rise to nearly 6.8 million cubic meters (mcm) in late 2012 from around 5.8 mcm now, while further expansion could take capacity to near 10 mcm by late 2014. Vitol, the world’s largest oil trader, has around 1.1 mcm of storage at the port through Fujairah Refinery Company Ltd (FRCL), which is owned by Vitol Tank Terminals International (VTTI) and 10 percent by the Fujairah government. Trade sources say all of the oil products stored in its 47 tanks are owned by Vitol. Vopak Horizon Fujairah Limited (VHFL), a joint venture between the Netherlands-based Royal Vopak, Dubai’s Emirates National Oil Company (ENOC), the government of Fujairah and Kuwait’s Independent Petroleum Group added 600,000 cubic meters of capacity in early May. Currently Vopak Horizon has a total of 2.1 mcm of storage and a trade source says all tanks are leased out. Leading commodities and oil traders like Trafigura, Total’s Totsa, as well as PetroChina, a relatively new entry in the Gulf trading market, are among the tenants of Vopak’s tanks. Latest expansion added 20 new tanks for storing fuel oil and clean petroleum products. BP has 200,000 cubic meters of storage of this while Phillips 66, independent US refiner as a result of ConocoPhillips spin-off, has 160,000 and Litasco, the trading arm of Russian oil company Lukoil, has 240,000 cubic meters. UAE-based trader Gulf Petrochem’s 412,000 cubic meters of oil storage is planned to come online in September. UAE’s fuel retailer Emarat currently has 263,000 cubic meters of oil storage capacity following its expansion in 2011. With the addition of 10 more tanks the company now has a total of 13 tanks for gas oil, gasoline, and jet fuel. Azeri national oil company Socar’s trading arm is building 641,000 cubic meters of storage capacity in a joint-venture with Swiss trading house Aurora Progress and the government of Fujairah. It will consist of 20 tanks for clean and dirty products once the full project completed. The first phase with 114,000 cubic meters came online in March. Global marine fuel supplier Chemoil Energy has storage of around 90,000 cubic meters at the port through a joint venture with Gulf Petrol Supplies and plans to boost it to 675,000 cubic meters by the third quarter of this year. Glencore, the world’s largest independent commodities trader, raised its stake in Chemoil to 89 percent in February, after taking a controlling stake in late 2009. Singapore-based Concord Energy and China’s Sinopec are expected to start building oil storage in Fujairah. The total capacity will be 1.125 mcm and around half of this will be leased to Sinopec. It is due to be completed by early 2014. Dubai government-owned fuel retailer Enoc has oil storage through its joint venture with VHFL and it also owns 217,000 cubic meters of capacity at 11 tanks through its subsidiary Horizon Terminals. PetroChina has sublet clean storage at Fujairah from an existing customer, after its plans to build from scratch with Vopak were scrapped. The Port of Sohar, a deep-sea port in the Sultanate of Oman is managed by Sohar Industrial Port Company, a joint venture between the government of Oman and the Dutch port of Rotterdam. It has 1.285 mcm of oil storage, all allocated for clean products, and all currently leased out and full, trade sources said. Of the total, Gunvor has around 180,000 cubic meters of storage for distillates and gasoline while Shell has a total of 485,000 cubic meters, of which 325,000 cubic meters is for gas-to-liquids (GTL). Oman Trading International (OTI) has around 200,000 cubic meters of storage for light and middle distillates while Glencore’s 114,000 cubic meters of storage is mostly for naphtha and gasoil. Oman Aromatics, part of Oman Oil Refineries and Petroleum Industries Company (Orpic) also leases 303,000 cubic meters of storage space at the port. Sohar is also home to a 116,000-barrels-per-day (bpd) refinery, whose capacity Oman wants to boost by some 50,000 bpd to 60,000 bpd by 2016. Traders say there are also additional storage facilities at the refinery. Although inside the Strait of Hormuz, and so lacking the strategic benefits of Gulf of Oman sites, the UAE’s Jebel Ali port is a major regional products blending hub. It is also an important fuel storage site with over 3 mcm of capacity at the port near Dubai. Enoc is one of the biggest storage owners at the port with its 1.2 mcm of capacity.
ABB wins $100 million gas plant contract in Oman
Swiss engineering group ABB said Tuesday that it has won a contract worth over $100 million (82.7 million euros) to build a new gas condensate processing plant for Petroleum Development Oman (PDO) in the Sultanate of Oman. The order was booked in the second quarter. The new Saih Nihayda Condensate Stabilization Plant will be located near the Saih Nihayda gas plant in the north part of PDO concession area, and will have the capacity to process 4,500 standard cubic meters of condensate per day. The new plant will be used as a backup for the existing central processing plant to ensure continued gas production for PDO’s domestic and export customers. The project is central to PDO’s goal to sustain gas flows from its main gas production facilities in the north part of PDO concession area. The plant is scheduled for completion by the end of 2014. "This contract underscores ABB's trusted technology leadership to deliver full-scope projects to our oil and gas customers," said Veli-Matti Reinikkala, head of ABB's Process Automation division. "Our industry expertise and global and local resources will help this project to be implemented and operated successfully, from design to start-up." ABB will be responsible for the engineering, procurement, and construction (EPC) of the condensate stabilization facilities, including project management, training, testing, and on-site support for operation and maintenance after start-up. In addition, ABB will supply power equipment such as low- and medium-voltage switchgear, power transformers, the electrical control system, as well as continuous emission monitoring systems and other analytical instrumentation.
Source: Saudi Gazette
UAE group inks synthetic natural gas deal
Lootah BCGas, a part of the UAE-based business conglomerate SS Lootah Group, said it has signed a co-operation agreement with US-based Algas-SDI to pursue delivery of comprehensive synthetic natural gas (SNG) solutions in the region. Abdullah Bin Saeed Al Lootah, the executive director of SS Lootah Group and Randy Ervin, the president of Algas-SDI signed an MoU in this regard at Seattle, Washington. As per the deal, the duo will jointly source viable projects to provide comprehensive turn-key SNG solutions, expanding their footprint in Pakistan and other developing regions, said Lootah BCGas in a statement. Abdullah Lootah said the group in co-operation with Algas-SDI aims to offer customers an excellent single source for total SNG system needs, supported by expert application engineering services. 'The decision comes as part of sharing the group’s strategy with key partners to further strengthen our position as a leader in comprehensive gas infrastructure services,' Lootah observed. Commenting on the partnership, Ervin said, “We are pleased to work with a well-established partner like Lootah to provide the highest and latest standards in SNG facility and related services. We are confident that working together will bring optimal solutions to the most challenging opportunities.” As pioneers in natural gas infrastructure with comprehensive services from design, engineering and construction to operations and maintenance, Lootah BCGas is viewed as the leading comprehensive operating ‘Gas Utility’ in Dubai with principle branch offices in the UAE and internationally. Headquartered in Seattle, Algas-SDI is a leading producer of SNG equipment with the resources and products to provide optimal solutions for the evolving energy needs and challenges. It is the global leader in this field having provided nearly 100 large CityGas SNG systems worldwide, including extensive SNG infrastructure development projects in South Korea and China, as well as Europe, South America, the Middle East and the US.
Source: TradeArabia News Service