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

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.

CGG Services’ CGG Amadeus has started an 884 square kilometers (sq km) 3-D seismic acquisition program in the G10/48 contract area in the Gulf of Thailand, KrisEnergy Ltd. said in a news release.

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.

According to a presentation filed with the U.S. Securities and Exchange Commission on July 12, InterOil received three proposals, including Oil Search's, to sell the entire company during its initial sale process.

InterOil is an attractive takeover target for companies looking to tap the potential of Papua New Guinea's LNG reserves as it has 36.5% stake in a project in the Elk-Antelope fields.

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

​After securing a contract from Oil and Natural Gas Corp. (ONGC), Fugro said it will begin geotechnical investigations in the KG-DWN-98/2 Block offshore India in third-quarter 2016.

Alexander Skripka has worked with Tethys management for more than six months in all aspects of the company.

CNPC said investment in the oil industry slowed during the first five months of this year, while losses related to exploration and refining increased by 2 billion yuan (US$299.22 million) in May.

The nine-month contract is for FEED work for the Sao Vang and Dai Nguyet developments in the Idemitsu-operated blocks 05-1b and 05-1c in the Nam Con Son Basin, Aker said in a news release.

The work scope also included engineering analysis and procedures, project management for the nearshore operations, management of chartered vessels, provision of offshore personnel and various ancillary services.