Exclusives

An ONGC Ltd.-led consortium is chasing hydrocarbon leads in the shallow waters of the MB-OSN-2005/1 Block, located in the Mumbai Offshore Basin near Saurashtra, after two exploration wells hit oil and gas.

Reliance Industries, BP, KG-D6 Block, India oil and gas

The companies plan to invest about US$4 billion to develop natural gas discoveries in the Bay of Bengal’s KG-D6 Block.

An infill drilling program will kick off the plan’s launch in second-half 2018 followed by installation of a 12-well slot platform in first-half 2019.

The treaty signing in New York on March 6 marked the first conciliation under the U.N. Convention on the Law of the Sea—a process UN Secretary-General António Guterres said could offer other countries a path toward resolving contentious maritime boundary disputes.

India oil and gas, oil and gas capex, Oil and Natural Gas Corp., ONGC, ONGC Videsh, Oil India Ltd.

Half of the spending will go toward E&P activities as the country aims to increase domestic oil and gas production.

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

U.S. private equity firm Lone Star is betting on two large unconventional gas projects in China that Austrailia's Sino Gas & Energy is developing.

A successful bid would give Harbour access to a recently revived company with a low cost of gas production and stakes in LNG in the Asia-Pacific, where demand is soaring.

Husky Energy is having success with the drillbit, recently making two discoveries—one in the Atlantic region offshore Newfoundland, Canada, and another in the South China Sea.

Sri Lanka will sign agreements with French oil and gas major Total and a subsidiary of U.S. firm Schlumberger for a seismic study off its east coast to evaluate any prospective oil resources, a top official said May 4.

ExxonMobil Corp. has resumed production at the Papua New Guinea LNG project two weeks ahead of schedule after it was shut down in the wake of a deadly earthquake in February, its Australian partners said on April 13.

Production

Iran's oil exports hit 2.7 million barrels per day (MMbbl/d) in May, the oil ministry's news agency SHANA reported on June 2, a new record since the lifting of international sanctions on Tehran in 2016, and despite the threats of fresh U.S. sanctions.

Top Chinese oil and gas firm PetroChina Co. Ltd. (NYSE: PTR) is adding new production wells at one of its main oil fields, in northeast China, aiming to build 1.06 million tonnes of new annual capacity this year.

Sri Lanka first signed a deal with Total in 2016 to conduct a study off the eastern coast but this did not take place.

Output from the Deendayal natural gas block off India’s east coast will reach as high as 1 million standard cubic meters per day (MMscm/d) by January 2019, according to Rajesh Kakkar, head of ONGC’s offshore division.

A unit of Russian state oil firm Rosneft, Rosneft Vietnam BV, has started drilling at a new production well in waters off the southern coast of Vietnam.

Technology

TechnipFMC (NYSE: FTI) said May 31 it has been awarded a subsea contract by CNOOC Ltd. for the Liuhua 16-2, 20-2 and 21-2 oilfield joint development project in the South China Sea, at water depths ranging from 380 m (1,246 ft) to 430 m (1,410 ft).

The standstill agreement between Prosafe and COSCO related to Safe Nova and Safe Vega has recently been extended until June 14, 2018.

Petrofac’s Engineering and Production Services (EPS) East division has secured a project support and engineering services contract with Husky Oil China Ltd., the company said on May 29.

Demand for gas is expected to grow strongly this year as Beijing promotes the cleaner-burning fuel and the economy improves, Zhao Chenxi of the National Development and Reform Commission, said during a media briefing.

The move would not affect the country’s 22 existing exploration permits, and any oil and gas discoveries from firms holding those licenses could still lead to mining permits of up to 40 years.