Exclusives

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.

Both orders are part of PetroChina's furnace procurement program that BHD bid on. Aggregate order value under the program now totals about US$0.8 million, or more than 5.3 million renminbi.

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

India will launch an auction of 67 discovered small oil and gas fields on May 25, the country’s upstream regulator Directorate General of Hydrocarbons (DGH) said May 10.

GSPC says it now hopes to start commercial production from the Krishna Godavari Field later this year, with an initial output of between 70 million cubic feet per day (MMcf/d) of gas and 80 MMcf/d of gas.

AWE Ltd. has entered an agreement to sell its 42.5% interest in the Bulu PSC to a 100% owned subsidiary of HyOil Pte. Ltd. for cash consideration of up to A$27.5 million (US$20.5 million), AWE said in a news release.

Executives from Reliance, BG and India's state-run oil firm ONGC have been at odds for months over the cost of closing the Tapti Field off the country's west coast.

Pertamina is looking to buy into projects in countries including Iraq, Saudi Arabia and Russia and will target expansion in border areas to strengthen Indonesia's sovereign claims, including in the South China Sea, Pertamina Upstream Director Syamsu Alam told Reuters in an interview April 11.

Production

CNPC's domestic oil refining capacity will be capped at around 200 million tonnes a year by 2020, it said in its online company newspaper, Reuters reported.

The oil field is expected to reach its ODP designed peak production of about3,900 barrels of crude oil per day in 2016.

China produced 12.3 billion cubic meters (Bcm) of natural gas in March, up 4% compared to the same period of last year, according to the National Bureau of Statistics of China, Reuters reported.

The $1-billion rig, which was at the center of a fierce diplomatic stand-off between the countries in 2014, had moved into an area of the Gulf of Tonkin over which, Vietnam said, the two countries were still “executing delineation discussions.”

The Bhandut-3 well is flowing at the expected stabilized rate of 0.70MMscf/d (120 boe/d) through a 8/64-in. choke, Oilex said in a news release.

Technology

International Energy Agency Executive Director Fatih Birol said last month that global upstream investment fell by 24% in 2015 and is set to fall by 18% in 2016, Reuters reported.

Output would not be impacted by the cuts, Chevron Thailand Exploration and Production's president, Pairoj Kaweeyanun, told reporters on May 16 after meeting with Thai energy ministry officials, Reuters reported.

InterOil remains confident about enhancing shareholder value through strategic plans including completing appraisal of Elk and Antelope fields to draw LNG from Papua New Guinea's biggest undeveloped gas deposit, Reuters reported.

China's energy sector is dominated by three state giants: China National Petroleum Corp. (CNPC), China Petrochemical Corp. and China National Offshore Oil Corp., Reuters said.

Under the agreement, Aqualis Offshore and CSDC will work together in the fields of engineering, project management, research, innovation and marketing, a news release said. A key objective is to develop a joint engineering service for offshore newbuild projects in China and elsewhere.