Exclusives

Mayer Brown, Korea, Japan, China, M&A, oil, gas, LNG, assets, E&P, Korea National Oil Corp.

Oil supplies are stable, low prices are expected to continue in 2016 and ‘there are no plans to purchase E&P assets,’ a Korean oil executive says.

Azerbaijan, offshore, BP, oil

Known as the ‘Land of Fire,’ Azerbaijan has an oil and gas pedigree that is second to none, but with production declining, its offshore sector needs to heat up.

Implementation of two downhole deployment valves enables UBD and logging operations, enhances safety and eliminates formation damage in fractured carbonate reservoirs.

Wheatstone, LNG, Australia, Asia, gas

Even though oil prices remain in the low US $30 range, Australasian countries continue the push for natural gas resources.

China, oil, demand, Yilin Wang, China National Petroleum Co., IHS CERAWeek

In 2015, China’s GDP rose 6.9%, the slowest growth rate since the late 1990s, yet its oil demand rose - even surpassing the 2012 growth rate.

Deepwater International

Otto Energy subsidiary Otto Energy Philippines has entered into a letter of intent with Maersk Drilling for one of its ultra-deepwater drillships to drill a frontier wildcat offshore south-west Palawan.

Talisman Energy and its partners are looking to complete a base development plan for a combined FPSO and TLWP project offshore Vietnam by mid-2015.

Otto Energy, the former operator of the Galoc field in the Philippines, has sold off its remaining stake in the producing project to fellow Aussie independent Nido Petroleum for US $106 million.

Japan’s Inpex is selling 10% of its stake in a deepwater block offshore eastern Malaysia to Australian player Santos, although no sale price is being revealed.

Noble Energy and its partners in the ultradeepwater Leviathan Field offshore Israel are still waiting for an update on the situation that has seen the country’s Anti-Trust Authority essentially try to pull the rug from under their feet on one of the world’s biggest gas finds of recent times.

Exploration

Iran has been able to raise its crude oil output to about 3.6 MMbbl/d since international sanctions were lifted in January, Reuters reported. 

The first expedition discovered gas hydrate accumulations in formations that are currently unlikely to be producible.

InterOil owns a 36.5% stake in the gas-rich Elk-Antelope field in Papua New Guinea, which is expected to be the main source for ExxonMobil's proposed Papua LNG project.

The move could lead ExxonMobil and Total to tie together their competing gas interests in the South Pacific nation, cooperating to reduce costs as they battle cheap oil and LNG prices.

ExxonMobil this week trumped an offer from Oil Search Ltd., which was backed by Total. Oil Search is due to declare on July 21 whether or not it will match ExxonMobil's $2.2 billion bid.

Production

The fire was under control and the company was working to restore the facility that carries natural gas from the southwestern province of Sichuan to eastern China, a spokesman for China Petroleum & Chemical Corp. (Sinopec) said.

China’s domestic crude oil production during the first six months of 2016 fell 4.6% from a year ago, official data showed July 15, to the lowest level since 2010, as producers cut back output on lower oil prices.

The project will add a third LNG process train (Train 3) and 3.8 million tons per annum (mtpa) of production capacity to the existing facility, bringing total plant capacity to 11.4 mtpa, BP said in the release. 

The circle of condensate suppliers is small, though; and Australia has the inside track on selling to Asia, especially with some Middle East producers building their own splitters, Reuters said.

Output from Banyu Urip project in Cepu Block in East Java province is crucial to Indonesia's long-term efforts to meet rising domestic oil demand as other fields’ production declines, Reuters said. 

Technology

PT Pertamina will be the holding company in oil and gas sector, and publicly-listed gas distributor PT Perusahaan Gas Negara will be one of its units, Reuters reported.

The onshore package will be deployed for the testing of exploratory and completed wells onshore at Rajahmundry. 

Work is scheduled to begin in July of this year and go through March 2017. 

Beijing has refused to recognize the ruling by the Permanent Court of Arbitration that granted the Philippines sovereign rights to access offshore oil and gas fields, including the Reed Bank, a shallow tablemount some 85 nautical miles off its coast.

The bid pits ExxonMobil, the world's biggest oil company, against Total, which is backing Oil Search, as the French giant looks to push forward with its planned Papua LNG project to rival ExxonMobil's existing PNG LNG project.