Energy Watchblog

China: Technip and COOEC form joint venture to address the booming deepwater market in China

<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEijso1mfw-2wRxYmMr7kB56e4To58n0n5W6Rs6VRGg0fsrfH0iCPJfaJs4qB1d4hSLe1mBFtr2QKEdeskLzWXrjORVtYvmdqWnvgfunw0UeOPW_XKdAzjwXAc8JzOIQhuK1WcCIANhsqNOJ/s1600/china-map-6.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEijso1mfw-2wRxYmMr7kB56e4To58n0n5W6Rs6VRGg0fsrfH0iCPJfaJs4qB1d4hSLe1mBFtr2QKEdeskLzWXrjORVtYvmdqWnvgfunw0UeOPW_XKdAzjwXAc8JzOIQhuK1WcCIANhsqNOJ/s320/china-map-6.jpg" width="313" /></a></div><a href="http://www.technip.com/en"><i>Technip</i></a> and<i><b> China Offshore Oil Engineering Co (COOEC)</b></i>, the largest offshore engineering and construction company in China, have signed a joint-venture agreement in September.<br /><br />The five-year agreement, which builds on existing relationships,  combines the know-how, technical resources, complementary assets as well  as commercial and financial capabilities of both companies to target  deepwater engineering, procurement, construction and installation (EPCI)  Subsea Umbilicals, Risers and Flowlines (SURF) projects at a water  depth greater than 200 meters in China.<br /><br />This agreement follows the successful award, at the end of 2012, to the COOEC-Technip Consortium of the <i><b>CNOOC Panyu 34-1/2 development project</b></i>.

China: Technip and COOEC form joint venture to address the booming deepwater market in China

Technip and China Offshore Oil Engineering Co (COOEC) , the largest offshore engineering and construction company in China, have signed a ...

Trinity completes Galeota license upgrades

<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhI7Z0QP0zJtguyzglQu9bPxxFs5kIs9v3HXsRXLuHIJlGqwmoyvoJoEDiU3XLnHIXieLL1Jsnl9cQjqqW5hxHeCOyaFjJZ8XCk-aRm4nGPxWBpMRCocHiFwSDznFUOMf7si3JJZaG4smpn/s1600/EarthLights_660x450.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="218" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhI7Z0QP0zJtguyzglQu9bPxxFs5kIs9v3HXsRXLuHIJlGqwmoyvoJoEDiU3XLnHIXieLL1Jsnl9cQjqqW5hxHeCOyaFjJZ8XCk-aRm4nGPxWBpMRCocHiFwSDznFUOMf7si3JJZaG4smpn/s320/EarthLights_660x450.jpg" width="320" /></a></div>Trinidad and Tobago-focused E&P firm Trinity (AIM: TRIN) completed Rig 2 upgrades at its Galeota license offshore Trinidad, according to a release by the firm.<br /><br />The upgrades will improve drilling efficiency and reduce costs, said the firm.<br />Infill  drilling operations on the producing Trintes field have been delayed by  bad weather but will recommence shortly with the spudding of the B9  well, which is expected to take up to 45 days to complete, said Trinity.<br /><br />Additionally, Trinidad state oil company Petrotrin  converted its 35% interest in the Trintes field to an over-riding  royalty (ORR), upping Trinity's working interest in the field to 100%,  and adding an additional 13Mb in 2P reserves and 470b/d in production,  according to the release.<br />Trinity also recently  signed a new crude oil sales agreement with Petrotrin, harmonizing the  pricing of crude from the Trintes field with Trinity's other sales  agreements under which pricing is linked to WTI.

Trinity completes Galeota license upgrades

Trinidad and Tobago-focused E&P firm Trinity (AIM: TRIN) completed Rig 2 upgrades at its Galeota license offshore Trinidad, according to...

E&P companies in Neuquén to invest up to US$6bn in 2014

<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhaVDRJp4iG581JyIaH0zcTN26aEoFWujEt4fg2-PUMpBc-IHNDSXMq1ZEKbMr5LWnkNXIprXiAHM1zlU9qJ7ric_i9l2nPS02cxIx-SLkIlP0WUv_3ZV46glhXXfuufwwJjrtuHQGRLBbl/s1600/vaca_muerta_basin.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="237" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhaVDRJp4iG581JyIaH0zcTN26aEoFWujEt4fg2-PUMpBc-IHNDSXMq1ZEKbMr5LWnkNXIprXiAHM1zlU9qJ7ric_i9l2nPS02cxIx-SLkIlP0WUv_3ZV46glhXXfuufwwJjrtuHQGRLBbl/s320/vaca_muerta_basin.jpg" width="320" /></a></div>Oil and gas companies are expected to invest between US$5bn and US$6bn in 2014 in the Argentine province of Neuquén, according to local press, citing a report by the provincial government. The forecasted investment for next year represents a significant increase from the US$4.1bn invested in Neuquén E&P in 2013.<br /><br />Unconventional plays will receive the majority of the capital influx, with the Vaca Muerta shale play taking approximately 60% of the total. Of the 635 wells to be drilled next year, 323 will target shale and tight sand deposits as opposed to 195 of the 471 wells drilled in 2013.   Topping the list, national oil company YPF's (NYSE: YPF) investment in the province is expected to reach US$3bn. YPF will destine the funds primarily to its Loma La Lata shale, and its El Orejano and Rincón del Mangrullo tight gas pilot projects with Chevron (NYSE: CVX), Dow Chemical (NYSE: DOW) and Pampa Energía (NYSE: PAM) respectively.<br /><br />While other firms focus on exploration, France's Total (NYSE: TOT) will be the only one, apart from YPF, working on an unconventional pilot project in the province. Called Aguada Pichana, Total is expected to invest US$380mn on the 20-well Vaca Muerta pilot.     ExxonMobil (NYSE: XOM) plans to invest approximately US$250mn, according to the reports, followed by US$185mn from Pan American Energy, who will focus on exploration of the Lindero Atravesado formation.<br /><br />Petrobras (NYSE: PBR) will invest US$113mn, primarily on its Río Neuquén and El Mangrullo areas. O&G Developments, a subsidiary of Shell (NYSE: RDS.A) in Argentina, will invest at least US$90mn (max US$500mn) on its Sierras Blancas license.     Meanwhile, Wintershall is rumored to have signed a definitive partnership with provincial oil company GyP to drill a dozen wells on the Aguada Federal block.

E&P companies in Neuquén to invest up to US$6bn in 2014

Oil and gas companies are expected to invest between US$5bn and US$6bn in 2014 in the Argentine province of Neuquén, according to local pres...

Northern Petroleum firms up Italy potential

<div class="separator" style="clear: both; text-align: center;"></div><div style="background-color: white; border: 0px; color: #3e3e3e; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 16px; outline: 0px; padding: 0px 0px 12px; vertical-align: baseline;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhSHR5mOyCBEMvgABTccE_m7X4frlguisMOJsg79We1gSPMbvWrqWbhM81RaSktnXrz_lHniRDk9-RsqvVXFSI4oFjupF-XByYFSAwLUxeGx24kdgw7alvVTbUAd9AwEDRkgtLuYawGtXHC/s1600/italy350_52b93a313e67f.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="266" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhSHR5mOyCBEMvgABTccE_m7X4frlguisMOJsg79We1gSPMbvWrqWbhM81RaSktnXrz_lHniRDk9-RsqvVXFSI4oFjupF-XByYFSAwLUxeGx24kdgw7alvVTbUAd9AwEDRkgtLuYawGtXHC/s320/italy350_52b93a313e67f.jpg" width="320" /></a><a class="companyPopupTrigger" href="http://www.proactiveinvestors.co.uk/companies/overview/1150/Northern+Petroleum" rel="1150" style="background-color: transparent; border: 0px; color: #df8d00; font-family: inherit; font-style: inherit; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">Northern Petroleum</a> (<a class="companyPopupTrigger" href="http://www.proactiveinvestors.co.uk/companies/overview/1150/northern-petroleum-1150.html" rel="1150" style="background-color: transparent; border: 0px; color: #df8d00; font-family: inherit; font-style: inherit; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">LON:NOP</a>) has told investors that the proved and probable (2P) reserves for the Rovesti and Giove discoveries in the southern Adriatic sea will be downgraded to contingent resources.</div><div style="background-color: white; border: 0px; color: #3e3e3e; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 16px; outline: 0px; padding: 0px 0px 12px; vertical-align: baseline;">This comes as NOP’s contractor ERC Equipoise submitted its interim findings of a resources review of the two assets.</div><div style="background-color: white; border: 0px; color: #3e3e3e; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 16px; outline: 0px; padding: 0px 0px 12px; vertical-align: baseline;">The company says it will be able to add value to the discoveries through a credible appraisal and development programme.</div><div style="background-color: white; border: 0px; color: #3e3e3e; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 16px; outline: 0px; padding: 0px 0px 12px; vertical-align: baseline;">"The Southern Adriatic permits have the potential for significant upside value to the company in the short to medium term,” said chief executive Keith Bush.</div><div style="background-color: white; border: 0px; color: #3e3e3e; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 16px; outline: 0px; padding: 0px 0px 12px; vertical-align: baseline;">“Any work to further our understanding of the geological model or to successfully negotiate the Italian political environment will increase the chance of realising that upside for shareholders.</div><div style="background-color: white; border: 0px; color: #3e3e3e; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 16px; outline: 0px; padding: 0px 0px 12px; vertical-align: baseline;">“Giove, in particular, is a very interesting discovery which will demonstrate its worth through a credible development plan."</div><div style="background-color: white; border: 0px; color: #3e3e3e; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 16px; outline: 0px; padding: 0px 0px 12px; vertical-align: baseline;">In 2007, NOP booked 53.2mln barrels of 2P oil reserves for Rovesti and Giove.</div><div style="background-color: white; border: 0px; color: #3e3e3e; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 16px; outline: 0px; padding: 0px 0px 12px; vertical-align: baseline;">Now, ERC estimates a total of 30.2mln contingent resources: 25.8mln at Giove and 4.4mln at Rovesti.</div><div style="background-color: white; border: 0px; color: #3e3e3e; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 16px; outline: 0px; padding: 0px 0px 12px; vertical-align: baseline;">NOP also told investors that it has been unofficially told by the Italian authorities that more information will be needed in relation to permitting for a proposed 3D seismic programme over the two permits.</div><div style="background-color: white; border: 0px; color: #3e3e3e; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 16px; outline: 0px; padding: 0px 0px 12px; vertical-align: baseline;">It says that it understands that this request has been made of all outstanding applications in the area, and it will continue to work with the Environment Ministry to obtain the necessary approvals for the programme.</div>

Northern Petroleum firms up Italy potential

Northern Petroleum ( LON:NOP ) has told investors that the proved and probable (2P) reserves for the Rovesti and Giove discoveries in the s...

Mexico's top energy stories of 2013

<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEje3VaNsaldPesHSt_gHPq8MsazdgV6MvQQxCEJa4NvrIQPA0_tw9V6WCdKu755YZLN0mZdTjYTgQrEQbJAYrNtRT6owX9xD5b34MEYquoySuMtx7SfVuboG8LXCrGadJ9ZD_4-Clr86O-w/s1600/la-afp-getty-mexico-reform-energy-pemex-pena-20130813.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEje3VaNsaldPesHSt_gHPq8MsazdgV6MvQQxCEJa4NvrIQPA0_tw9V6WCdKu755YZLN0mZdTjYTgQrEQbJAYrNtRT6owX9xD5b34MEYquoySuMtx7SfVuboG8LXCrGadJ9ZD_4-Clr86O-w/s320/la-afp-getty-mexico-reform-energy-pemex-pena-20130813.jpg" width="233" /></a></div><br /><span style="clear: left; float: left; font-size: small; margin-bottom: 1em; margin-right: 1em;"></span><br /><br /><div class="text-contenido" style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; margin: 0px 10px 0px 0px;"><div style="line-height: 18px; margin-bottom: 20px;"></div><div style="line-height: 18px; margin-bottom: 20px;"><b>1) Congress passes landmark energy reform</b></div><div style="line-height: 18px; margin-bottom: 20px;">This one was big and may fit better into other categories like "Top Mexico stories of 2013" or "Top Mexico energy stories of the decade."</div><div style="line-height: 18px; margin-bottom: 20px;">After months of expectation, congress brought a bill forward December 7 and passed it within six days. The legislation brings unprecedented openness to both the oil and gas and electric power sectors.</div><div style="line-height: 18px; margin-bottom: 20px;">In oil, the Mexican state will be allowed to contract with private companies across the value chain, including production sharing and licensing agreements in E&P. National oil company Pemex is being transformed into a "productive public enterprise," whose first goal will be maximizing profit.</div><div style="line-height: 18px; margin-bottom: 20px;">In electric power, a competitive generation market will be created and administered by an ISO called Cenace. While transmission and distribution infrastructure remain property of the state, power retail will also be open to privates. Likewise, state-owned power utility CFE will become a "productive public enterprise" and seek profit first.</div><div style="line-height: 18px; margin-bottom: 20px;"><b>2) Pemex tenders integrated service contracts at Chicontepec</b></div><div style="line-height: 18px; margin-bottom: 20px;">Pemex's third round of integrated service contracting took place at the unconventional Chicontepec basin with surprising results.</div><div style="line-height: 18px; margin-bottom: 20px;">Three of the six blocks on offer were snatched up, with the other three blocks receiving no bids. Halliburton, Operadora de Campos DWF and Baker Hughes' Petrolite each won a block, but with surprisingly low bids of US$0.01/b, US$0.98/b and US$0.49/b, respectively.</div><div style="line-height: 18px; margin-bottom: 20px;">The services companies expect to have the cost recovery mechanism be profitable on its own. Pemex is retendering the three failed blocks, expected for awarding in January.</div><div style="line-height: 18px; margin-bottom: 20px;"><b>3) CFE blames losses on fuel costs</b></div><div style="line-height: 18px; margin-bottom: 20px;">CFE said its US$1.50bn net loss in 2012 could be attributed almost entirely to higher consumption of heavy fuel oil. The trend continued through 2013, with CFE saying its US$474mn loss in Q3 was also caused by fuel oil costs.</div><div style="line-height: 18px; margin-bottom: 20px;">While the continued losses for the firm are concerning in themselves, they were indicative of a larger problem in Mexico: the country does not have enough natural gas.</div><div style="line-height: 18px; margin-bottom: 20px;">CFE, which had to rely more heavily on old, fuel oil generators, is only one of the firms in Mexico to suffer from insufficient natural gas transportation capacity.</div><div style="line-height: 18px; margin-bottom: 20px;"><b>4) Pemex Los Ramones tender flops, takes control of project</b></div><div style="line-height: 18px; margin-bottom: 20px;">In 2013, Pemex issued a call for bidders on the 740km, 1.43Bf3/d (40.5Mm3/d) Los Ramones II pipeline, said to be the backbone of the natural gas transportation system.</div><div style="line-height: 18px; margin-bottom: 20px;">The long-awaited project is expected to guarantee long-term gas imports from the US. But when bids were due, only one group, a consortium between France's GDF Suez and Spain's Enagás, tabled a bid.</div><div style="line-height: 18px; margin-bottom: 20px;">Pemex rejected the bid and took control of the project, promptly announcing it would be forming JVs withSempra's Mexico unit IEnova and GDF Suez to build the project in two phases.</div><div style="line-height: 18px; margin-bottom: 20px;">Some experts say Pemex had always wanted to build the project on its own and had designed the tender fail.</div><div style="line-height: 18px; margin-bottom: 20px;"><b>5) Mexico launches first large-scale solar plant</b></div><div style="line-height: 18px; margin-bottom: 20px;">In September, Mexico's first large-scale solar PV plant, the 30MW Aura Solar I, started generating power and it was not CFE who built it.</div><div style="line-height: 18px; margin-bottom: 20px;">The 100 hectare project was built by Gauss Energía, with Martifer Solar on EPC and Suntech providing panels, and was financed by private capital and the International Finance Corporation (IFC).</div><div style="line-height: 18px; margin-bottom: 20px;">The project was a huge step forward for solar in Mexico as IFC saw profitability in Mexico's small producer private generation model.</div><div style="line-height: 18px; margin-bottom: 20px;">Gauss expects this to be the first of many stages at the Aura Solar complex.</div></div>

Mexico's top energy stories of 2013

1) Congress passes landmark energy reform This one was big and may fit better into other categories like "Top Mexico stories of 2013...

Latin America's top 10 onshore E&P projects

<div class="p1"><b>1) Vaca Muerta - Argentina</b></div><div class="p2">Vaca Muerta is one of the world's largest shale plays with estimated reserves of 22.8Bboe. Argentina's state-controlled YPF, Apache,Chevron, Total, ExxonMobil and Arpetrol are among the companies to have invested in exploration. The Loma La Lata Norte and Loma Campana areas alone are expected to attract investments of US$15bn.</div><div class="p3"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhqFASaWpEW1_ws2ZX_pY2ExSg17p9PGTS1d-WqenET6ho7IEIFB5sly0yvGLd3GTK13uO8uSfC5C4uJfiKYX-z8_cmVRfUHRJ-qPp7Tg2y6H6qV1kKJpaAdo4Y_EXiTF_Y00omCk3WX7hp/s1600/250px-Latin_America_%2528orthographic_projection%2529.svg.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhqFASaWpEW1_ws2ZX_pY2ExSg17p9PGTS1d-WqenET6ho7IEIFB5sly0yvGLd3GTK13uO8uSfC5C4uJfiKYX-z8_cmVRfUHRJ-qPp7Tg2y6H6qV1kKJpaAdo4Y_EXiTF_Y00omCk3WX7hp/s200/250px-Latin_America_%2528orthographic_projection%2529.svg.png" width="200" /></a></div><div class="p4"><b>2) Yasuní ITT (blocks 31 and 43) - Ecuador</b></div><div class="p4">State E&P operator Petroamazonas would develop the area home to an estimated 890Mb. Development of fields Tiputini and Tambococha to reach peak average of 200,000b/d from these areas will require US$2.8bn, and US$5bn if Ishpingo is developed.</div><div class="p5"><br /></div><div class="p4"><b>3) Junín 4 - Venezuela</b></div><div class="p4">Operated by Empresa Mixta Petrourica, a joint venture between Venezuela's state oil company PDVSA and China's CNPC, the Junín 4 area will produce up to 400,000b/d of heavy crude, according to the Venezuelan government. Junín 4 is located near El Destino, in the prolific Orinoco belt.</div><div class="p5"><br /></div><div class="p4"><b>4) Junín 10 - Venezuela</b></div><div class="p4">According to PDVSA Junín 10 has a production potential of 220,000b/d. Investment in the area is expected to reach US$14.1bn.</div><div class="p5"><br /></div><div class="p4"><b>5) Quifa SW - Colombia</b></div><div class="p4">Canada's Pacific Rubiales plans to double oil production from the heavy oil field following the implementation of its enhanced oil recovery scheme next year. Quifa SW has net 2P reserves of 73.1Mboe, about 21% of Pacific Rubiales' certified oil and liquids reserves base in Colombia.</div><div class="p5"><br /></div><div class="p4"><b>6) Burgos - Mexico</b></div><div class="p4">The Burgos basin has long been Pemex's largest gas producer but has seen production slip 14.2% since the beginning of 2013 to 1.19Bf3/d. It will see investment of 22.4bn pesos (US$1.70bn) in 2014, but that looks to get slashed in 2015 to 8.44bn pesos. The challenge for Burgos is moving into unconventional plays. The US Eagle Ford play stretches into Burgos and Pemex has made two shale discoveries in the play to date.</div><div class="p5"><br /></div><div class="p4"><b>7) Blocks 67, 57 - Peru</b></div><div class="p4">State hydrocarbons promotion agency Perupetro expects natural gas and crude commercial production on blocks 67 and 57 to begin by year-end. Perenco block 67 output will start with 6,000b/d with the goal of reaching 30,000b/d in 2017 and peak production of 60,000b/d in 2019. The block's proved reserves total around 100Mb. In the case of block 57, operated by Petrobras and Repsol, initial production is pegged at 5,600b/d NGLs and 85Mf3/d (2.41Mm3/d) gas with the aim of reaching 9,300b/d and 160Mf3/d in 2016. Proved reserves total around 562Bf3 and 30.7Mb NGLs.</div><div class="p5"><br /></div><div class="p4"><b>8) São Francisco basin - Brazil</b></div><div class="p4">Following the loud but until now hollow claims of local startups OGX and HRT, Petra Energia has opted for a tip-toe approach to its 24-block São Francisco basin campaign in Minas Gerais state. Petra earlier this year confirmed the existence of hydrocarbons at the 1-PTRA-17-MG well in block SF-T-121 and BNamericas tips more good news to come from the company's 7km2 acreage. Petra has already confirmed the presence of unconventional "tight" natural gas in 21 São Francisco wells and expects to begin production from the area in 2015.</div><div class="p5"><br /></div><div class="p4"><b>9) Chicontepec - Mexico</b></div><div class="p4">Despite accumulated investment of 183bn pesos, the unconventional, largely tight oil, area has failed to be an important producer for Pemex with production at just 61,000b/d. Investment in 2014 is expected to be 13.6bn pesos, 11.1bn in 2015, and 20.4bn pesos in 2016. The question is whether Pemex's integrated service contracts can attract new technologies and more productive wells at Chicontepec.</div><div class="p5"><br /></div><div class="p4"><b>10) Parnaíba blocks 2, 3 - Brazil</b></div><br /><div class="p4">Franco-Belgian firm GDF Suez earlier this month bought a 20% stake in the Parnaíba basin's blocks 2 and 3 from Brazilian mining giant Vale, describing the combined 6,137km2 area as "little explored but high in natural gas potential." GDF Suez, alongside partners Petrobras and BP are set to drill the first exploration wells from both blocks in March.</div>

Latin America's top 10 onshore E&P projects

1) Vaca Muerta - Argentina Vaca Muerta is one of the world's largest shale plays with estimated reserves of 22.8Bboe. Argentina's st...

Singapore's Keppel FELS shipyard is claiming the record

<span class="itemImage" style="background-color: white; display: block; font-family: Tahoma, Geneva, sans-serif, Helvetica, Arial, sans-serif; font-size: 14px; line-height: 18px; margin: 0px;"></span><br /><div style="background-color: white; font-family: Tahoma, Geneva, sans-serif, Helvetica, Arial, sans-serif; font-size: 14px; line-height: 18px; margin-bottom: 15px; margin-top: 10px;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg3PiKvEntBTcWmi9Ag9dMqEOdmkNCI_NmIn4KYCZigKWaaTacOkCiJYh5BvUq35L71uHrwGyXUdRVBmg_OOHQHC3V2KYF-6lEjmmpg3LGyFFTGxjsFrWTBHRLsoawz8EVQI3wDFuxkqFEW/s1600/14ffaaa38a14891a22f6f4fd92eae7e2_L.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg3PiKvEntBTcWmi9Ag9dMqEOdmkNCI_NmIn4KYCZigKWaaTacOkCiJYh5BvUq35L71uHrwGyXUdRVBmg_OOHQHC3V2KYF-6lEjmmpg3LGyFFTGxjsFrWTBHRLsoawz8EVQI3wDFuxkqFEW/s320/14ffaaa38a14891a22f6f4fd92eae7e2_L.jpg" width="320" /></a></div>Singapore's Keppel FELS shipyard is claiming the record for the largest number of rig deliveries in a year with a total of 21 newbuild offshore rigs delivered in 2013. The latest delivery, ARABDRILL 60, a KFELS B Class jack-up rig, was delivered to Arabian Drilling Company (ADC) five days ahead of schedule, on budget and with a perfect safety record.</div><div style="background-color: white; font-family: Tahoma, Geneva, sans-serif, Helvetica, Arial, sans-serif; font-size: 14px; line-height: 18px; margin-bottom: 15px; margin-top: 10px;">The rig was named at a ceremony today in the presence of Mr. Mohamed Yousuf Rafie, Chairman, ADC's Board of Directors and Mr. Lawrence Wong, Singapore's Acting Minister for Culture, Community and Youth and Senior Minister of State for Communications and Information as the guests of honor.</div><div style="background-color: white; font-family: Tahoma, Geneva, sans-serif, Helvetica, Arial, sans-serif; font-size: 14px; line-height: 18px; margin-bottom: 15px; margin-top: 10px;">"Building a KFELS B class jack-up rig involves coordination among multiple parties and over a thousand workers," said Mr. Wong Kok Seng, Managing Director (Offshore), Keppel Offshore & Marine and Managing Director, Keppel FELS. "This year, we had some 45 projects going on at the same time. We streamlined the building process through new technology and equipment as well as having an innovative construction methodology. All our departments worked seamlessly together to set new benchmarks.</div><div style="background-color: white; font-family: Tahoma, Geneva, sans-serif, Helvetica, Arial, sans-serif; font-size: 14px; line-height: 18px; margin-bottom: 15px; margin-top: 10px;">"Even though we had so many deliveries, every customer, such as ADC, is important, and we worked closely with them to understand their needs. We set out to deliver 20 and ended up delivering 21 rigs on time or ahead of schedule and safely. Our previous record was 13 in 2009. That is the Keppel standard. We always challenge ourselves to do better."</div><div style="background-color: white; font-family: Tahoma, Geneva, sans-serif, Helvetica, Arial, sans-serif; font-size: 14px; line-height: 18px; margin-bottom: 15px; margin-top: 10px;">ARABDRILL 60 will be ADC's third jack-up rig from Keppel FELS and has been chartered to Saudi Arabia's national oil company, Saudi Aramco. The first of the two new rigs, ARABDRILL 50, was delivered earlier this year and is already working successfully for Saudi Aramco. ADC also owns ARABDRILL 30, another KFELS B Class rig since 2009 and the rig is operating for the Al-Khafji Joint Operations (AGOC/KGOC). A strong supporter of Saudi Arabia's offshore drilling program, Keppel FELS also previously delivered SAR 202, a KFELS Super B Class jack-up for Saudi Aramco. Three other rigs, AOD I, AOD II and AOD III delivered to Asia Offshore Drilling this year are also contracted to Saudi Aramco.</div><div style="background-color: white; font-family: Tahoma, Geneva, sans-serif, Helvetica, Arial, sans-serif; font-size: 14px; line-height: 18px; margin-bottom: 15px; margin-top: 10px;">ARABDRILL 60 is the 51st KFELS B Class rig delivered since 2002, and this class of rigs makes up more than 30% of the total jack-ups completed globally since 2000. This award-winning design has a proven track record of global operations, and has established itself as the benchmark in the industry. In 2013 alone, a total of 15 KFELS B Class rigs were delivered while another 18 were ordered.</div><div style="background-color: white; font-family: Tahoma, Geneva, sans-serif, Helvetica, Arial, sans-serif; font-size: 14px; line-height: 18px; margin-bottom: 15px; margin-top: 10px;">Developed by Keppel's technology arms, Offshore Technology Development (OTD) and Bennett Offshore, the KFELS B Class jack-up design is able to operate in water depths of up to 400 feet and drill to depths of 30,000 feet which is readily upgradeable to higher performance capabilities.</div><div style="background-color: white; font-family: Tahoma, Geneva, sans-serif, Helvetica, Arial, sans-serif; font-size: 14px; line-height: 18px; margin-bottom: 15px; margin-top: 10px;">The robust rig incorporates Keppel's advanced and fully-automated high capacity rack and pinion jacking system, and Self-Positioning Fixation System. Designed with industry-leading features for safety and environmental friendliness, the KFELS B Class provides maximum uptime with reduced emissions and discharges.</div>

Singapore's Keppel FELS shipyard is claiming the record

Singapore's Keppel FELS shipyard is claiming the record for the largest number of rig deliveries in a year with a total of 21 newbuild o...

ANNUAL REVIEW: Andean energy 2013

<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEij7-GemnAZ8bt-IifCQ7sByWuk2jcGLWEoDKCT_DpIGyUP4Se_GPxKCgNDCoVBbGx-NpKGnO24Dcg46Sv6M-pjtRbJEGsfOfCTqbUoM9GLsBT_24rMReFSVK03h9jfsFMdu4XQrM6SqaOf/s1600/persp_9_15.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEij7-GemnAZ8bt-IifCQ7sByWuk2jcGLWEoDKCT_DpIGyUP4Se_GPxKCgNDCoVBbGx-NpKGnO24Dcg46Sv6M-pjtRbJEGsfOfCTqbUoM9GLsBT_24rMReFSVK03h9jfsFMdu4XQrM6SqaOf/s1600/persp_9_15.jpg" /></a></div><em style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 1.1em; line-height: 18px;">Lackluster results from hydrocarbon exploration and production calls and efforts to ease power transmission congestion were some of the energy issues that featured in 2013 from the Andean region.</em><br /><div class="text-contenido" style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 1.1em; margin: 0px 10px 0px 0px;"><div style="line-height: 18px; margin-bottom: 20px;">Increased state intervention coupled with greater risk from frontier areas led to low turnout for oil and gas licensing rounds in Bolivia and Ecuador despite a slew of promotion activities including international road shows.</div><div style="line-height: 18px; margin-bottom: 20px;">The start of the year saw Bolivia's state hydrocarbon firm YPFB award exploration areas offered under the service contract model to BG and Petrobras, the only bidders and companies that already operate in this market.</div><div style="line-height: 18px; margin-bottom: 20px;">Five groups tabled four bids for Ecuador's Suroriente round although only Belorusneft is a newcomer to the country, after a world tour that included stops in Beijing, Bogotá, Houston, Indonesia, New York, Paris and Singapore. Thirteen blocks were offered.</div><div style="line-height: 18px; margin-bottom: 20px;">Bolivia and Ecuador along with Venezuela rank as the least attractive jurisdictions in The Fraser Institute's Global Petroleum Survey 2013.</div><div style="line-height: 18px; margin-bottom: 20px;">While in Peru, considered a bastion of private sector promotion, socio-environmental scrutiny in particular uncertainties related to the indigenous prior consultation law dampened interest in state hydrocarbons promotion agency Perupetro call for nine offshore blocks. The process was placed on standby.</div><div style="line-height: 18px; margin-bottom: 20px;">And Colombia, another country courted by industry players but challenged by strikes and security issues, pre-launched the 2014 round to expand the production horizon. Mines and energy minister Amylkar Acosta cataloged the reserves situation as "very precarious."</div><div style="line-height: 18px; margin-bottom: 20px;">The Andean region's power transport shortfall is another area authorities and stakeholders looked to address in 2013 due to increasing demand and as new generation capacity comes online.</div><div style="line-height: 18px; margin-bottom: 20px;">Maximum demand peaked at a record 1,128MW in January in Bolivia where state power company Ende advanced development of lines Cochabamba-La Paz and Chaco-Tarija.</div><div style="line-height: 18px; margin-bottom: 20px;">Colombia's mining and energy planning unit UPME released its 2013-26 reference transmission expansion plan which recommends investment of US$2bn to buttress the transmission network.</div><div style="line-height: 18px; margin-bottom: 20px;">To advance on this front, UPME announced plans to woo investors for 13 high-voltage transmission projects and minister Acosta Medina highlighted an 82bn-peso (US$42.5mn) project to interconnect eastern Vichada department on the border with Venezuela.</div><div style="line-height: 18px; margin-bottom: 20px;">A report from Ecuador's wholesale power market administrator Cenace pointed to the risk of total or partial collapse of the national interconnected system (SNI) due to contingencies on the main transmission link from increased hydro output.</div><div style="line-height: 18px; margin-bottom: 20px;">Indeed, state power holding company Celec awarded Harbin Electric International a US$599mn contract to connect hydros Coca Codo (1.5GW) and Sopladora (487MW) to the SNI.</div><div style="line-height: 18px; margin-bottom: 20px;">For its part, Ecuador's power and renewable energy ministry and Peru's energy and mines ministry signed an agreement to develop a 500kV transmission line.</div><div style="line-height: 18px; margin-bottom: 20px;">Transmission in Peru continued exponential growth led by projects Friaspata-Mollepata, Machupicchu-Quencoro-Onocora-Tintaya, Mantaro-Marcona-Socabaya-Montalvo, Moyobamba-Iquitos, Tingo María-Vizcarra-Conococha and Trujillo-Chiclayo.</div><div style="line-height: 18px; margin-bottom: 20px;">And Paraguay inaugurated the 500kV Itaipú-Villa Hayes transmission project while Venezuela declared a state of emergency for the power sector due to alleged sabotage of infrastructure, in particular transmission, by opposition. The measure jump started a series of works to safeguard and overhaul lines and substations among other installations.</div></div>

ANNUAL REVIEW: Andean energy 2013

Lackluster results from hydrocarbon exploration and production calls and efforts to ease power transmission congestion were some of the ener...

2013 REVIEW : Vaca Muerta shale deals

<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj_EIYR2a6Y7q4M1fDs6JZ-SK3LSr8kjT7aQ9-kG5dhPqFHislREYfMR6DmGRYrp7pCCePNep542Wb6SNGWrZiUUxbiYCDpUHybv-PTY6lcByu_vIq_lt_RxxROKI3R_L7mEIU37jmoLPM3/s1600/vaca_muerta_basin.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="237" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj_EIYR2a6Y7q4M1fDs6JZ-SK3LSr8kjT7aQ9-kG5dhPqFHislREYfMR6DmGRYrp7pCCePNep542Wb6SNGWrZiUUxbiYCDpUHybv-PTY6lcByu_vIq_lt_RxxROKI3R_L7mEIU37jmoLPM3/s320/vaca_muerta_basin.jpg" width="320" /></a></div><i><span style="font-family: Arial, Helvetica, sans-serif;">Partnerships with foreign players that have the know-how and funding are seen as key to unlocking the shale riches that Argentina's Vaca Muerta play holds.</span></i><br /><br /><div class="text-contenido" style="background-color: white; margin: 0px 10px 0px 0px;"><div style="line-height: 18px; margin-bottom: 20px;"><span style="font-family: Arial, Helvetica, sans-serif;">After signing a deal with nationalized YPF in June, US super major Chevron has invested US$1.24bn to develop the Loma Campana subsection of Vaca Muerta. The 132-well shale oil pilot program is on schedule to be completed in March 2014. More than 1,500 wells would be drilled during a second US$16bn phase of development, with production expected to reach 50,000b/d oil and 3Mm3/d gas.</span></div><div style="line-height: 18px; margin-bottom: 20px;"><span style="font-family: Arial, Helvetica, sans-serif;">In September the local unit of Dow Chemical signed a deal with YPF develop shale gas on the El Orejano block of Vaca Muerta. The chemical company has adopted an innovative vertically integrated way to secure gas supply for its plants in Argentina.</span></div><div style="line-height: 18px; margin-bottom: 20px;"><span style="font-family: Arial, Helvetica, sans-serif;">Neuquén provincial oil and gas company GyP signed a letter of intent (LOI) with German firm Wintershall in September to invest US$108mn in Vaca Muerta shale exploration. Over the next two years Wintershall-led exploration will focus on the Aguada Federal block of the Aguada del Chañar area. GyP is expected to sign an E&P deal for the same play with Brazil's Petrobras in the near future.</span></div><div style="line-height: 18px; margin-bottom: 20px;"><span style="font-family: Arial, Helvetica, sans-serif;">In December Azabache Energy and Rio Bravo Commercial Enterprises (RBE) entered into an agreement whereby RBE will pay US$5mn for a 23.76% interest in the Covunco Norte-Sur block in Argentina's Neuquén basin. Proceeds will be used for fracking on the block, according to Azabache.</span></div><div style="line-height: 18px; margin-bottom: 20px;"><span style="font-family: Arial, Helvetica, sans-serif;">At the beginning of December Argentine President Cristina Fernández met with the head of China's CNOOC Li Fanrong and Carlos Bulgheroni, head of Grupo Bridas, CNOOC's Argentine JV partner. This presidential meeting could signal an impending deal after a US$1.5bn MOU between Bridas and YPF for Vaca Muerta expired earlier this year as Repsol threatened legal action against partnerships with YPF in the wake of the expropriation of its stake in the firm.</span></div><div style="line-height: 18px; margin-bottom: 20px;"><span style="font-family: Arial, Helvetica, sans-serif;">Repsol is expected to halt legal action over the expropriation if a definitive agreement is reached with Argentine authorities, which could pave the way for more partnerships with YPF.</span></div><div style="line-height: 18px; margin-bottom: 20px;"><span style="font-family: Arial, Helvetica, sans-serif;">Over US$1.5bn worth of Vaca Muerta partnerships have been announced in 2013. With the entrance of new players, the development of untapped areas and signs of an end to the conflict with Repsol, this figure should continue to grow.</span></div><div style="line-height: 18px; margin-bottom: 20px;"><span style="font-family: Arial, Helvetica, sans-serif;"><span style="line-height: 1.6em;">Argentina continues to cast a keen eye on progress in the US, where the rapid emergence of shale and tight oil has spawned job growth </span><span style="line-height: 1.6em;">while reducing fuel imports.</span></span></div><div style="line-height: 18px; margin-bottom: 20px;"><span style="font-family: Arial, Helvetica, sans-serif;"><span style="line-height: 1.6em;">Given</span><span style="line-height: 1.6em;"> the lack of unconventional technology and </span>know-how among local firms, and their difficulty in <span style="line-height: 1.6em;">accessing competitive financing, joint ventures are key to Vaca Muerta's development.</span></span></div></div>

2013 REVIEW : Vaca Muerta shale deals

Partnerships with foreign players that have the know-how and funding are seen as key to unlocking the shale riches that Argentina's Vaca...

Banamex Analysts: Cheaper natural gas to aid Mexico's petrochemical sector

<div class="separator" style="clear: both; text-align: center;"></div><span style="clear: left; float: left; font-family: Times, Times New Roman, serif; margin-bottom: 1em; margin-right: 1em;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiO0_KPFM-c6UvomN5-SWBFh1F-45opeJcoD4aJx6LdnQJXL7bB_CQoNUIRP3k1YfjDTKDuT_XjTueuHXacw3rlg5zl4oqUrkuhRWxWOv5hfjY4PoE7CLeFUlCjX5YZ9StqzUB44-dWMV8G/s1600/mexichem_250313.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="192" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiO0_KPFM-c6UvomN5-SWBFh1F-45opeJcoD4aJx6LdnQJXL7bB_CQoNUIRP3k1YfjDTKDuT_XjTueuHXacw3rlg5zl4oqUrkuhRWxWOv5hfjY4PoE7CLeFUlCjX5YZ9StqzUB44-dWMV8G/s320/mexichem_250313.jpg" width="320" /></a>The opening of Mexico's natural gas sector to private investment will lower prices and allow local firms to increase their production capacity for petrochemical-based products, according to analysts. <span style="background-color: white; line-height: 18px;">Mexican firms such as Mexichem and Alpek will be benefited by the lower prices and be able to grow their presence in the sector, according to a report analyzing Mexico's energy reforms by Banamex Accival Casa de Bolsa. Both companies are currently investing to expand their production capacity to take advantage of the price differential between ethylene and natural gas. </span></span><span style="clear: left; float: left; font-family: Times, Times New Roman, serif; margin-bottom: 1em; margin-right: 1em;"><span style="background-color: white; font-family: Times, Times New Roman, serif; line-height: 18px;">"Mexichem is investing in the production of 550,000t of vinyl chloride monomer (VCM) in the US, while Alpek plans similar investment with a plant supplied by natural gas in Mexico," the report states. </span><span style="background-color: white; line-height: 18px;">VCM is a chemical used to produce polymer and polyvinyl chloride (PVC). </span><span style="background-color: white; line-height: 18px;">The expectation is that the energy reforms will contribute to an increase in the supply of ethane/propane, which have a high concentration of natural gas, and to a deregulation of the downstream sector, which will in turn lead to a drop in prices, the report states.</span></span><br /><div class="text-contenido" style="background-color: white; margin: 0px 10px 0px 0px;"><div style="line-height: 18px; margin-bottom: 20px;"></div><div style="line-height: 18px; margin-bottom: 20px;"></div><div style="line-height: 18px; margin-bottom: 20px;"><span style="font-family: Times, Times New Roman, serif;">Alpek is expected to invest in the construction of plants producing monoethylene glycol (MEG) in Mexico and an ethylene plant in the short term in order to take advantage of the lower gas prices.</span></div><div style="line-height: 18px; margin-bottom: 20px;"></div><div style="line-height: 18px; margin-bottom: 20px;"></div><div style="line-height: 18px; margin-bottom: 20px;"><span style="font-family: Times, Times New Roman, serif;">"The confirmed availability of gas will probably lead Alpek to build an MEG plant in Mexico, instead of in the US," the report states.</span></div><div style="line-height: 18px; margin-bottom: 20px;"></div><div style="line-height: 18px; margin-bottom: 20px;"></div><div style="line-height: 18px; margin-bottom: 20px;"><span style="font-family: Times, Times New Roman, serif;">Mexichem is also likely to expand its VCM production in Mexico, after having begun to build a cracker plant in Texas in partnership with US firm Oxychem. </span><span style="font-family: Times, 'Times New Roman', serif;">Mexichem is currently building a 200MW cogeneration plant powered by natural gas in Altamira, in the northeastern state of Tamaulipas, and could approve the construction of another one in Salamanca, in the central state of Guanajuato. </span></div><div style="line-height: 18px; margin-bottom: 20px;"></div><div style="line-height: 18px; margin-bottom: 20px;"></div><div style="line-height: 18px; margin-bottom: 20px;"><span style="font-family: Times, Times New Roman, serif;">"Mexico is the only country in the world where an artificial barrier was created in the petrochemical sector, and the reality is that the lack of investment in the sector by Pemex has created huge bottlenecks in the production chain, leading to more imports, which in 2013 surpassed US$23bn," according to an analysis of the reform by Mexican energy consultancy GMEC. </span></div><div style="line-height: 18px; margin-bottom: 20px;"><span style="font-family: Times, Times New Roman, serif;">Mexico's petrochemical imports increased by 7.7% in 2013, while the petrochemical sector's contribution to GDP dropped by 0.4% to 1.2%, according to the national association of the chemical industry (ANIQ). </span></div><div style="line-height: 18px; margin-bottom: 20px;"></div><div style="line-height: 18px; margin-bottom: 20px;"></div><div style="line-height: 18px; margin-bottom: 20px;"><span style="font-family: Times, Times New Roman, serif;">A lack of natural gas transportation infrastructure has meant that Mexican firms have suffered a supply deficit from the US, GMEC added, with Pemex importing more natural gas at a higher price to satisfy local demand.</span></div></div>

Banamex Analysts: Cheaper natural gas to aid Mexico's petrochemical sector

The opening of Mexico's natural gas sector to private investment will lower prices and allow local firms to increase their production ca...

Batista's OGP given debt deadline for Brazil offshore block

<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjv9IAYdgk92NY-Y38H8ecvaC3O1h6fB6VvwIzesr1N8v4dXQv0n21DBLDgR0rR5EqRTgvKc8jNMidsyqpVDgNFYr9jX7cAB0A0dD3ONxfE2qN6UFSNPs9kD685pQuo7aa1W1SjrfwPpX0J/s1600/brazil-oil-shale-map-400.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjv9IAYdgk92NY-Y38H8ecvaC3O1h6fB6VvwIzesr1N8v4dXQv0n21DBLDgR0rR5EqRTgvKc8jNMidsyqpVDgNFYr9jX7cAB0A0dD3ONxfE2qN6UFSNPs9kD685pQuo7aa1W1SjrfwPpX0J/s320/brazil-oil-shale-map-400.png" width="304" /></a></div><div class="p1">Brazilian oil firm OGP, formerly <a href="http://www.bnamericas.com/company-profile/en/OGX_Petroleo_e_Gas_Participacoes_S,A,-OGX">OGX</a>,  will be stripped of its stake in the offshore BS-4 block unless it  meets a mid-January deadline to repay debt, according to sector  regulator <a href="http://www.bnamericas.com/company-profile/en/Agencia_Nacional_do_Petroleo,_Gas_Natural_e_Biocombustiveis-ANP_,Brasil,">ANP</a>.</div><div class="p1"><br /></div><div class="p1">In  a statement released on Monday, BS-4 operator QGEP Participações said  OGX owed concession partners 73mn reais (US$31mn) having missed "three  cash calls" since October 30.</div><div class="p1"><br /></div><div class="p1">In a notice dated December 23, ANP said OGP had 15 working days to meet its financial obligations.</div><div class="p1">Failure  to do so will result in the "compulsory transfer or termination of the  agreement in relation to its participating interest in the block," the  regulator said.</div><div class="p1"><br /></div><div class="p1">OGP could not be reached for comment on Monday.</div><div class="p1"><br /></div><div class="p1">QGEP holds a 30% interest in BS-4 with the balance held by OGP (40%) and Barra Energia (30%).</div><div class="p1">Controlled  by failed entrepreneur Eike Batista, OGP is expected to submit a  restructuring plan to a bankruptcy court in Rio de Janeiro next month.</div><div class="p1"><br /></div><div class="p3">Batista's personal fortune is said to have fallen below US$1bn, having peaked at US$34bn early last year. Analysts blame the magnate's fall on unrealistic production targets based on false estimations.</div><div class="p1">Block BS-4 includes the post-salt Atlanta and Oliva fields, about 185km off Brazil's southeast coast in the Santos basin. </div><div class="p1"><br /></div><div class="p1">The consortium plans to start drilling a second early production system (EPS) well at Atlanta in January.</div>

Batista's OGP given debt deadline for Brazil offshore block

Brazilian oil firm OGP, formerly OGX , will be stripped of its stake in the offshore BS-4 block unless it meets a mid-January deadline to ...

YPF to ramp up exploration in Chubut

<div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhBAdFtTxQww9hOFPqrikosp80Rpmw2LnwHeZSL3CffKJQApUd7L-X_H1xu-IGB6h_EuM2znmiapzJlkG_Qbh3N1eXseIqvkngGltj-37kfLwlkJANL13AG_DknSK4GZMe8jXTm9uj2jxIU/s1600/Chubut_in_Argentina_(+Falkland_hatched).svg.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhBAdFtTxQww9hOFPqrikosp80Rpmw2LnwHeZSL3CffKJQApUd7L-X_H1xu-IGB6h_EuM2znmiapzJlkG_Qbh3N1eXseIqvkngGltj-37kfLwlkJANL13AG_DknSK4GZMe8jXTm9uj2jxIU/s320/Chubut_in_Argentina_(+Falkland_hatched).svg.png" width="188" /></a></div>YPF<span style="line-height: 1.6em;"> (NYSE: </span>YPF<span style="line-height: 1.6em;">) has agreed to drill 20 exploration wells in the province of </span>Chubut<span style="line-height: 1.6em;"> in Argentina, the highest level of activity in the past 20 years.</span></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;">During contract re-negotiations with provincial authorities, YPF's concessions in Chubut were extended until 2047, according to a statement from the Argentine NOC.</div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;">The renegotiated concessions comply with the 2012 hydrocarbons law, which increased royalty payments three percentage points and granted provinces more authority over their natural resources.</div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;">The deal now must be ratified by the provincial legislature.</div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"><b>YPF COMMITMENT</b></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;">To increase production, YPF committed to maintain six drill rigs and 12 completion and repair rigs operating on the Campamento Central - Cañadón Perdido, Escalante - El Trébol, Manantiales Behr, Restinga Alí and Sarmiento blocks in Chubut between 2014 and 2018 and invest US$1.0bn between 2018-2028.</div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;">The new contracts have YPF paying a fee of US$30mn to the province and handing over 5% of its exploration and production rights to the El Tordilo, Puesto Quiroga and La Tapera blocks to provincial oil company Petrominera, according to state news agency Telam.</div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"><b>CHUBUT TIMELINE</b></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;">Tecpetrol was the first to renegotiate contracts under the new hydrocarbons law. License extensions with China'sSinopec, Chile's Enap Sipetrol and Argentine firm Capsa will be signed shortly, according to Chubut governor Martín Buzzi.</div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;">Although talks with Pan American Energy (PAE) , the province's largest producer, began during Tecpetrol's negotiations, an agreement has yet to be reached. Earlier this month the province's hydrocarbons minister Ezequiel Cufré said that a deal with PAE and YPF would be reached by end-2013, although the YPF agreement would take precedent.</div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"><b>YPF PRODUCTION RECORD</b></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;">YPF has reached the highest production levels seen in Chubut<span style="line-height: 1.6em;"> in the past 24 years, according to CEO Miguel</span>Galuccio<span style="line-height: 1.6em;">.</span></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;">In November, YPF produced an average of 174,185m3/d of oil and 16,741m3/d of gas in Chubut, compared to 150,499m3/d of oil and 15,385m3/d of gas in the same month of 2012, according to the latest energy ministry data.</div><div style="border: 0px; color: #3b3b3b; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 16px; list-style: none; margin-bottom: 10px; outline: none; padding: 0px; text-align: justify;">Added information:</div><div style="border: 0px; color: #3b3b3b; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 16px; list-style: none; margin-bottom: 10px; outline: none; padding: 0px; text-align: justify;">The governor of Chubut, Buzzi Marttin signed an agreement with the owner of YPF, Miguel Galuccio to extend the hydrocarbon concessions that the company has in the province until 2047 . YPF undertook heavy investments to increase the production of gas and oil.</div><div style="border: 0px; color: #3b3b3b; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 16px; list-style: none; margin-bottom: 10px; outline: none; padding: 0px; text-align: justify;">The ceremony was held at the House of the province of Chubut in the City of Buenos Aires and was attended by Chief of Cabinet , Jorge Capitanich , the governor of that province, Martín Buzzi, president and CEO of YPF, Miguel Galuccio and provincial authorities.</div><div style="border: 0px; color: #3b3b3b; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 16px; list-style: none; margin-bottom: 10px; outline: none; padding: 0px; text-align: justify;">With sustained activity of 6 teams and 12 teams drilling completion and workover for the period 2014 to 2018, this agreement will allow YPF continue increasing production levels of oil and gas areas in the Central Camp – Cañadón Lost Escalante – Clover , Behr Springs , Restinga Ali and Sarmiento, the company operates in Chubut.<br />In addition , YPF undertook drilling 20 exploratory wells, the increased activity of the last 20 years.</div><div style="border: 0px; color: #3b3b3b; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 16px; list-style: none; margin-bottom: 10px; outline: none; padding: 0px; text-align: justify;"><span id="more-35261"></span>“The new dynamics of YPF national sense allowed us to reach some agreements necessary to sign the adequacy of the company’s contract to the hydrocarbons law with the province of Chubut, where we achieved record production levels not seen since the last 24 years, ” said Galuccio .</div><div style="border: 0px; color: #3b3b3b; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 16px; list-style: none; margin-bottom: 10px; outline: none; padding: 0px; text-align: justify;">Meanwhile, the province of Chubut and municipalities will benefit from the accession of YPF to new Hydrocarbons Law of the Province , which represents significant revenue through the ” Bono Historical Reparation ” and ” Bonus Compensation hydrocarbons for Sustainable Development. “</div><div style="border: 0px; color: #3b3b3b; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 16px; list-style: none; margin-bottom: 10px; outline: none; padding: 0px; text-align: justify;">The agreement signed with the province of Chubut ensures greater predictability horizon for investment and activity, sustaining the jobs , and benefits to the cities of Cuenca and for workers.</div><div style="border: 0px; color: #3b3b3b; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 16px; list-style: none; margin-bottom: 10px; outline: none; padding: 0px; text-align: justify;">It is the expression of YPF work done in each of the provinces where it operates, in order to continue increasing levels of oil and gas having today.</div>

YPF to ramp up exploration in Chubut

YPF (NYSE: YPF ) has agreed to drill 20 exploration wells in the province of Chubut in Argentina, the highest level of activity in the p...

Madalena announces test results for horizontal well in Neuquén basin

<div class="separator" style="clear: both; text-align: center;"><a href="http://ceo.ca/wp-content/uploads/2013/11/mvn_corp_pres_Nov2013.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="193" src="http://ceo.ca/wp-content/uploads/2013/11/mvn_corp_pres_Nov2013.jpg" width="320" /></a></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"><span style="line-height: 1.6em;">Independent Canadian oil and gas company </span>Madalena Energy<span style="line-height: 1.6em;"> (</span>TSX-V<span style="line-height: 1.6em;">:</span>MVN<span style="line-height: 1.6em;">) has announced the results of a multi-rate production test of the CAN.xr-2h horizontal lateral re-entry well, at the </span>Coiron Amargo<span style="line-height: 1.6em;"> block in Argentina's </span>Neuquén<span style="line-height: 1.6em;"> basin.</span></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;">The well represents the first horizontal well drilled into one of the six Sierras Blancas conventional light oil pools discovered to date on the Coiron Amargo block.</div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;">During the test period of 142 hours, the total produced cumulative volumes were approximately 2,736b of oil (38° API) and approximately 4.15Mf3 (116,099m3) of natural gas, for a total of approximately 3,428boe (80% oil).</div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;">The CAN.xr-2(h) well was drilled to a total measured depth of 3,751m with a horizontal lateral section of approximately 530m in length.</div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;">A second horizontal well targeting the Sierras Blancas light oil reservoir (CAN-15(h)) is expected to be spudded in January 2014.</div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;"></div><div style="background-color: white; font-family: Arial, Helvetica, 'Helvetica Neue'; font-size: 13px; line-height: 18px; margin-bottom: 20px;">Madalena is currently drilling a Vaca Muerta shale delineation well at the CAS.x-15 location in the southern portion of the Coiron Amargo block. Completion and testing operations on this well are expected to be carried out as part of a multi-well completion and frac program in 2014.</div>

Madalena announces test results for horizontal well in Neuquén basin

Independent Canadian oil and gas company Madalena Energy ( TSX-V : MVN ) has announced the results of a multi-rate production test of the ...

Baltics: Update from Romas Svedas

<h1 style="background-color: white; border: 0px; color: #636466; font-family: Arial, Helvetica, sans-serif; font-size: 24px; font-weight: normal; line-height: 1.125em; margin: 0.375em 0px 0.75em; padding: 0px;"></h1><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiGy7KPeG37tD7ltzn8qa8HHs3VpWHEZxGnxoXEFO4FvaAsxVrvBhe8JV_TtHr9vm-3WGoLUI48C6NMGf71HPZ9WXuGwZFhRzf4CJu0-OYGkiaiZQOORyeugsWI4-FPj_Kiqz_DvkG5qc1a/s1600/Romas+Svedas_550x300.jpeg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiGy7KPeG37tD7ltzn8qa8HHs3VpWHEZxGnxoXEFO4FvaAsxVrvBhe8JV_TtHr9vm-3WGoLUI48C6NMGf71HPZ9WXuGwZFhRzf4CJu0-OYGkiaiZQOORyeugsWI4-FPj_Kiqz_DvkG5qc1a/s1600/Romas+Svedas_550x300.jpeg" /></a></div>With over 20 years of experience in international relations and over half of the time devoted to energy issues, Lithuania's Romas Švedas is one of the most renowned Baltic energy experts.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">His expertise in the field of international economic relations spans negotiator’s skills in the signing Lithuania’s Free Trade Agreements with Nordic, Baltic and Central European countries, negotiating the Lithuanian membership in the World Trade Organization (WTO), sitting as a member of bilateral intergovernmental commissions with <span style="color: #0854d1;">Russia</span>, <span style="color: #0854d1;">Ukraine</span>, <span style="color: #0854d1;">Belarus</span> and being head of Lithuanian delegation in bilateral intergovernmental economic relations commission with China.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">In the field of energy policy, being vice-minister of the Lithuanian Energy Ministry (2009-2011) he was responsible for electricity interconnections with <span style="color: #0854d1;">Poland</span> (LitPolLink) and Sweden (NordBalt), LNG terminal, exploration of UGS, decommissioning of the Ignalina Nuclear Power Plant and development of a new Nuclear Power Plant project (Visaginas NPP).</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">Švedas was a member of the Baltic Energy Market Interconnection Plan (BEMIP) drafting team and representative of Lithuania in BEMIP High Level Working Group (2008-2011). During the period of 2009-2011 Romas Švedas was chairman of the Boards of State Enterprise “Ignalina Nuclear Power Plant”, AB “Klaipedos nafta”, AB “Litgrid” and member of the Board of AB “Lietuvos dujos”.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">Švedas kindly agreed to answer <i style="border: 0px; margin: 0px; padding: 0px;">Natural Gas Europe's</i> questions on a broad range of energy issues in the Baltic region.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;"><i style="border: 0px; margin: 0px; padding: 0px;"><b style="border: 0px; margin: 0px; padding: 0px;">What are the specifics of the Baltic nations’ energy market? And how do they pertain to the challenges they face?</b></i></div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">The bottom line is this: the countries - Lithuania, <span style="color: #0854d1;">Latvia</span> and <span style="color: #0854d1;">Estonia</span> -are the members of the European Union, and therefore are bound to the EU policies, including those in energy market.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">Though all the three countries have their own peculiarities of market economy, their underlying common problem is what the EU refers to as the Union’s energy island.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">It means that the countries’ energy infrastructure is historically linked with the former Soviet Union. Effectively, there are no any significant power connectors between them and the Western Europe, except a tiny power link connecting Finland and Estonia.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">The Baltic States’ biggest challenge is the dependency on the single external gas supplier, Russia’s G<span style="color: #0854d1;">azprom</span>. In that sense, Lithuania looks the worst as its reliance on external energy supplies in satisfying its energy needs hovers at a whopping 80 percent, the EU record. And when it comes to gas sector, Lithuania’s dependency on Russian Gazprom gas is at 100 percent, while electric power import amounts to the EU record-high 70 percent, according to the Eurostat.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">The shutdown of the Ignalina Nuclear Power Plant in 2009, a prerequisite for the EU accession in 2004, has significantly exacerbated power supply. In fact, Lithuania has gone from power exporter to the biggest importer in entire Europe.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;"><i style="border: 0px; margin: 0px; padding: 0px;"><b style="border: 0px; margin: 0px; padding: 0px;">What are the biggest challenges in decreasing the energy supply dependency?</b></i></div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">Without doubt, they are in diversifying energy supply, in other words, creating alternative energy sources. Lithuania has been pursuing that along with Latvia and Estonia in the framework of BEMIP- Baltic Energy Market Interconnection Plan tasked with interconnecting Lithuania, Latvia and Estonia internally -very determinedly and consistently.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">What I often see happening in the Baltic region separate energy projects sometimes are prioritized as the key objectives of whole energy market.  In particular, when it comes to Lithuania, it often boils down to a few things: to build a nuclear power plant, or not?  Explore and extract shale gas, or not?</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">In the reality, these two I see as the only ways in achieving the ultimate goal of energy security and independency.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">No doubt, the main priority in Lithuania should be diversification of energy supplies- guaranteeing that market conditions function in energy sector. That can be possible only with more than a single energy supplier.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;"><i style="border: 0px; margin: 0px; padding: 0px;"><b style="border: 0px; margin: 0px; padding: 0px;">How can this be achieved?</b></i></div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">I believe that could be done in two ways.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">First, on the legislative level, Lithuania has to pass and enact necessary energy security- oriented legislature. Other two Baltic counties need to do the same.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">Second, implementation of EU-supported interstate energy projects in the region in quintessential.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">Speaking of the legislation, what the three Baltic States have to do effectively boils down to one key thing:  transpose the EU energy legislature into theirs and, importantly, make sure it is implemented.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">The core piece of the EU legislation is the EU Third Energy Package.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">Namely it, encompassing gas and electricity supply development directions, is the integral part of BEMIP.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">Today the situation is the states in electricity sector development need to step up, as the implementation of the Third Energy Package-and BEMIP- is lagging behind.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">Having said that, I have to note the countries have all the necessary projects to make the breakthrough in the pursuit of energy security and independence. EstLinkII, NordBalt, LitPol are among the most important, and they have to be launched until the end of 2015.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">When kicked off they will ensure the EU-bound transmission capacity on the same scope we have now it with the East.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">Without any doubt, the implementation of the afore-mentioned power projects would significantly enhance energy security and supply in the Baltics and secure the countries’ full and equivalent operations on the Nord Pool Spot (NPS) Exchange.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">The power projects are being implemented on time, and their completion promise a lot brighter energy future for each of the Baltic States.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">What should matter to foreign investors in regard to the latter is the countries’ power trading on the NPS is transparent and promising good prospects as with the completion of the projects by 2016 the systemic problems in Baltic power market will have been solved.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;"><i style="border: 0px; margin: 0px; padding: 0px;"><b style="border: 0px; margin: 0px; padding: 0px;">What’s your take on construction of nuclear power plant in the Lithuanian town of Visaginas?</b></i></div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">Regardless whether it will be pursued or not (the governments of Estonia, Latvia and Lithuania are set to make up their minds on the project yet this month -<i style="border: 0px; margin: 0px; padding: 0px;">Natural Gas Europe</i>), the atomic power project, like other energy project in the region, would be regional.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">This is what matters most.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">Sometimes I get the sense that foreign countries believe that each of the Baltic States pursue their energy projects separately.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">It’s not true- all the projects are regional, with the fact in mind that starting 2016 the countries will be an integral part of the EU single energy system.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">Speaking of the nuclear project, I’d not dare to predict its fate, but- again- it will be a regional decision of governments of Latvia, Lithuania and Estonia.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;"><i style="border: 0px; margin: 0px; padding: 0px;"><b style="border: 0px; margin: 0px; padding: 0px;">What are the other specifics of Lithuania’s gas sector besides the 100 percent dependency on Gazprom gas?</b></i></div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">I call gas sector more interesting than the power sector in terms of predictability, implementation of projects and etc.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">Power sector will definitely be the first one to fully reach the goal of energy independence and become the leverage to the single supplier.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">Speaking of gas-fired generators, what sets Lithuania apart from Latvia and Estonia is that a very significant part of power in Lithuania is being generated by traditional generators, i.e using gas.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">Meanwhile, Estonia has successfully employed oil shale and Latvia has been successfully taking advantage of its hydro resources.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">Unlike in power sector, the situation in Lithuania’s gas sector is a whole lot more complicated.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">Again, I’d like to look at it from the standpoint of legal basis and the development of infrastructure.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">When it comes to gas legislature, having passed the law of gas supply and started ownership unbundling, which means separating gas supply from gas mains management, Lithuania has moved considerably forward in the recent years.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;"> Sure, within the framework of the EU Third Energy Package.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">But unlike the Baltics’ power market, Lithuania, Latvia and Estonia still do not have a single internal gas policy despite the Third Energy Package obligations.  The 100 percent dependence on the single external gas supplier, certainly, exacerbates the situation.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">In tackling it, Lithuania is advancing a Liquefied Natural Gas Terminal that is due at the end of 2015. Along with the EU-supported gas Lithuanian and Polish gas interconnector due by 2019 the two are an important stride in diminishing the dependency.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;"><i style="border: 0px; margin: 0px; padding: 0px;"><b style="border: 0px; margin: 0px; padding: 0px;">What about Lithuania’s shale gas? Could it be a third alternative?</b></i></div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">Sure. It could be also an alternative in the energy security pursuit.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">Lithuania had the investor, Chevron, but, unfortunately for us, we could not provide it a stable legislative basis, and it left.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">That is disappointing as shale gas can significantly boost out energy security. It has been proven by Kaunas Vytautas Magnus University scientists.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">Unfortunately for us, we do not yet possess the good experience Poland has in taking advantage of shale gas and dealing with the local communities that now often are adverse to the shale gas exploration.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">I agree with some international observers that Lithuania seems to be artificially escalating the issue of shale gas exploration-related environmental issues.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">I’m not saying they do not matter, not at all, but sometimes I strongly suspect some pro-Russian interests are underneath the clamor against shale gas exploration in Lithuania.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">Interestingly, some of the billboards on Lithuanian highways urging to resist the American company and the shale gas bid appeared to be build- and paid for- by some unclear subjects.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">This is what a journalistic investigation revealed.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">And we’re talking here only of large billboards all see when driving by.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">I sometimes wondered who stood behind the negative, anti-shale gas coverage in traditional media outlets.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">There is really a lot to think of but I really would not like to delve into the details, and why the tender failed. But when speaking of the Chevron bid it was obvious that we lacked a political will in making in happen. As a result, the vociferous protests in the provinces and not only it. The attitude of the people needs to be addressed in the future.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;"><i style="border: 0px; margin: 0px; padding: 0px;"><b style="border: 0px; margin: 0px; padding: 0px;">Do you believe the dispute between Lithuania and Gazprom over gas price will be settled any time soon? And how?</b></i></div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">Perhaps not as much is important the outcome of the dispute as is important the pending ruling at the Stockholm Arbitration Tribunal. If it ruled in favor of Lithuania, which is pretty likely, it would establish an unseen yet precedent, meaning a crucial breakthrough in the Gazprom relations with the Central and Eastern Europe. Practically, it would lead to huge civil lawsuits against Gazprom, coming from Latvia, Estonia, Moldova, Ukraine, Belarus and some other countries.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">I am convinced Gazprom is really anxious about that.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">I believe it is not now as much preoccupied with the gas price for Lithuania and a new contract with it, as with the fallout from the Tribunal ruling.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">I am certain Gazprom will go to big lengths to shun the judicial precedent, but it cannot get away from the EU Third Energy Package ownership unbundling requirements. This is what Gazprom fears a lot, too.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">We might be witnessing some historical shifts in the field of energy, without an exaggeration.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;"><i style="border: 0px; margin: 0px; padding: 0px;"><b style="border: 0px; margin: 0px; padding: 0px;">How can Lithuania take advantage of the European Commission (EC) resolve to sue Gazprom for EU Anti-Trust law breaches?</b></i></div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">No doubt, it is also a headache for Gazprom as it could set a very far-reaching precedent for the company that in the course can effectively change the relations between it and entire countries, the gas buyers.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;"><i style="border: 0px; margin: 0px; padding: 0px;"><b style="border: 0px; margin: 0px; padding: 0px;">How much serious do you believe is Russia’s intention to build a LNG terminal in the enclave of Kaliningrad? Would it be pursued to bypass gas transit through Lithuania?</b></i></div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">There has been news Russia has already built an underground gas repository in Kaliningrad.  Russia has certainly a big potential in gas sector, so I’d not be surprised if it pursues the LNG project in the exclave. Sure, it is not a thing of the nearest future.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">But what matters to Lithuania is a liquefied natural gas terminal in Kaliningrad would enable Russia to stronger manipulate the card of gas supply to Lithuania.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">Having built the underground gas storage facility and mulling construction of a LNG terminal, Russia sends a signal to Lithuania that Kaliningrad will be the first one to secure gas supply from alternative sources. In other words, under certain Lithuania-adverse circumstances, and with the Kaliningrad gas facilities in place, Russia could cut gas supply to Lithuania without giving much thought.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">I see it as Russia’s clear message that it will keep using energy issues as a tool of its politics.</div><div style="background-color: white; border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 18px; margin-bottom: 1.5em; padding: 0px;">Hence, the importance of the Baltic energy projects.</div>

Baltics: Update from Romas Svedas

With over 20 years of experience in international relations and over half of the time devoted to energy issues, Lithuania's Romas Švedas...

Ukraine Russia Gas Dispute Infographic

Kiev and Moscow have been locked in a bitter dispute over gas supplies that has prompted fears of a return to the winters of 2006 and 2009, when Russia temporarily halted gas deliveries to Ukraine and some European countries. Last week Ukraine said it was suspending the purchase of gas from Russia, and relying on supplies from its own storage facilities. But it backtracked on the announcement within days. Russia has said that Naftogaz, Ukraine’s state-owned oil and gas company, owes over $1 billion in unpaid gas bills. Ukraine maintains that Russia charges it more for gas than other European nations.<br /><br />Click the image below for larger version infographic<br /><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj34ur8Z8pGkk6YXye20sRnOzqI86_R2EPmabsTqaMKHRT8tljsZ_8shPDZHiAABR-jClfzQ7nQ18f9UCicETBA2O3DeRycUxvFmfsznNsaC_bUHkWjNVm_ONly5vE31qjwjqaUrkppXe68/s1600/infographicUkraingasdispute.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="640" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj34ur8Z8pGkk6YXye20sRnOzqI86_R2EPmabsTqaMKHRT8tljsZ_8shPDZHiAABR-jClfzQ7nQ18f9UCicETBA2O3DeRycUxvFmfsznNsaC_bUHkWjNVm_ONly5vE31qjwjqaUrkppXe68/s640/infographicUkraingasdispute.jpg" width="349" /></a></div><br />

Ukraine Russia Gas Dispute Infographic

Kiev and Moscow have been locked in a bitter dispute over gas supplies that has prompted fears of a return to the winters of 2006 and 2009, ...

Elk finalises carbon dioxide agreement

<div class="widget slideshow default widget-editable viziwyg-section-822 inpage-widget-1317835 in_article_slideshow" style="border: 0px; color: #1a1a1a; font-family: Arial, sans-serif; font-size: 12px; line-height: 15px; margin: 0px 0px 15px; outline: 0px; padding: 0px; vertical-align: baseline;"><div id="widget1317835-picture1347470" style="border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><div class="wrapper" style="border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline; width: 646px;"><div class="description" style="border: 0px; margin: 0px; opacity: 0; outline: 0px; padding: 0px; vertical-align: baseline; width: 646px;"><div class="description_content" style="border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"></div></div></div></div><div class="apple_overlay" id="widgetContent1317835-picture1347470-info" style="border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="color: #1b1b1b; font-size: 14px; font-weight: bold; line-height: 1.25em;"><br /></span></div><div class="apple_overlay" id="widgetContent1317835-picture1347470-info" style="border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiXG9DNa43FrXz8YCtW2CZIcpou0EC2Rfp3H2a9q4UoXkDfNvox0wFLtCZdQD3f8CVG3O-ajisTPUsH0pxDIxbXizYHXo55-FXMhZWpifSAqodEHEzE5Z5Yy2W8c8m1I5dhVa5pzBktDfqz/s1600/bridgport.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="173" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiXG9DNa43FrXz8YCtW2CZIcpou0EC2Rfp3H2a9q4UoXkDfNvox0wFLtCZdQD3f8CVG3O-ajisTPUsH0pxDIxbXizYHXo55-FXMhZWpifSAqodEHEzE5Z5Yy2W8c8m1I5dhVa5pzBktDfqz/s320/bridgport.jpg" width="320" /></a></div><span style="color: #1b1b1b; font-size: 14px; font-weight: bold; line-height: 1.25em;">Australia-listed Elk Petroleum has finalised and executed a binding agreement with Bridgeport Ethanol to purchase carbon dioxide from Bridgeport’s ethanol processing plant in Nebraska.</span><a class="close" href="http://www.blogger.com/blogger.g?blogID=7291563859932161422" style="border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"></a></div></div><div class="widget storyContent article widget-editable viziwyg-section-12 inpage-widget-1000056 " style="border: 0px; color: #1a1a1a; font-family: Arial, sans-serif; font-size: 12px; line-height: 15px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><div class="body" style="border: 0px; color: #474747; margin: 0px; outline: 0px; padding: 0px 0px 15px; vertical-align: baseline;"><div style="border: 0px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">The agreement was originally announced in late November but after completing due diligence, the deal has been finalised. Elk will use the carbon dioxide for its enhanced oil recovering project at the Singleton and adjoining oil fields, close to the Bridgeport plan.</div><div style="border: 0px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">The plant produced more than 150,000 US tons of carbon dioxide per year or about 7 million cubic feet per day. It is almost pure carbon dioxide and requires little processing other than compression and dehydration. The agreement will last for 10 years with potential for extension. Elk will have three years to build compression and pipeline facilities before the purchase agreements starts.</div><div style="border: 0px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">The company said access to these supplies was key to building a carbon dioxide-based enhanced oil recovery strategy in Nebraska and the wider area. The Singleton oil field is the largest in the area and will act as an anchor project. Development could take less than two years and first oil production could occur as early as 2016, according to Elk.<br /><br /></div></div></div>

Elk finalises carbon dioxide agreement

Australia-listed Elk Petroleum has finalised and executed a binding agreement with Bridgeport Ethanol to purchase carbon dioxide from Bridge...

JX granted licensing in Greenland

<div style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 14px; line-height: 22px;"><div class="separator" style="clear: both; text-align: left;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjeMIRSPv-d62WpPVvDP5cS5mhxnswnO9X0R7RnaviDSQH6pgCyF78xeW77ygu-_5u30qASA7eve_wmw_66lWZVVBHZ63N6Y2fryvrXrizf0ApnC3VOwsO04ZNVDKqW9SF8nP9s9l5yenWr/s1600/JX-Nippon-Wins-Exploration-Licences-for-Kanumas-Greenland-Sea-Areas.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="223" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjeMIRSPv-d62WpPVvDP5cS5mhxnswnO9X0R7RnaviDSQH6pgCyF78xeW77ygu-_5u30qASA7eve_wmw_66lWZVVBHZ63N6Y2fryvrXrizf0ApnC3VOwsO04ZNVDKqW9SF8nP9s9l5yenWr/s320/JX-Nippon-Wins-Exploration-Licences-for-Kanumas-Greenland-Sea-Areas.jpg" width="320" /></a></div><b>JX Nippon Oil & Gas Exploration Corp</b>. announced in a press release that through Greenland Petroleum Exploration Co., Ltd. (“GreenPeX”), it was successful in the 2012/2013 licensing round in Greenland Sea area and the Greenland Self-Government, and the company also won the two offshore exploration licenses, Block 9 and Block 14, in Kanumas area, northeastern part of offshore Greenland, jointly withChevron and Shell. The joint venture also has entered into the licensing contracts for Block 9 and Block 14 and concluded as 2013/45 license and 2013/46 license, respectively, with the Ministry of Industry and Mineral Resources of Greenland, according to the press release.</div><div style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 14px; line-height: 22px;"><br /></div><div style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 14px; line-height: 22px;">2013/45 license and 2013/46 license are located in the Kanumas area, approximately 60 km to 200 km (37 miles to 124 miles) northeastern part of offshore Greenland with a water depth of approximately 150 m to 450 m (492 ft to 1,476 ft) and span area of 2,220 sq km (857 sq miles) and 2,634 sq km (1,017 sq miles), respectively. Kanumas area is a frontier area where no well has been drilled for oil and gas exploration, and many E&P companies expect major oil and gas discoveries.</div><div style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 14px; line-height: 22px;">In these exploration licenses, Chevron as the operator, Shell and GreenPeX each holds 29.1667% participating interest while Greenland national oil company, Nunaoil, holds 12.5% participating interest, according to the press release. The aforesaid participants will conduct exploration activities including seismic acquisition, etc. in these licenses for the new discovery of oil and natural gas, according to JX Nippon.</div><div style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 14px; line-height: 22px;"><br /></div><div style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 14px; line-height: 22px;">In addition, this exploration project has been financially supported by Japan Oil, Gas and Metals National Corp. (JOGMEC), according to JX Nippon.</div>

JX granted licensing in Greenland

JX Nippon Oil & Gas Exploration Corp . announced in a press release that through Greenland Petroleum Exploration Co., Ltd. (“GreenPeX”),...

Syria Signs Oil Exploration Deal With Russian Firm SoyuzNefteGaz

<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhwe4HBk8pSnirCacxGrcS_M30slnYZu5WwNQOSBuPdz6xMmZxWCSU5_Hc6gXVtmNiQ_D81C9gzwdFRdJKeRKfEIWqLzL_q8UMtzEFTdyGHNG5KCvoSWbGUsW1ApbYSzPsHZDbypgKTQVcH/s1600/173042068.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="226" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhwe4HBk8pSnirCacxGrcS_M30slnYZu5WwNQOSBuPdz6xMmZxWCSU5_Hc6gXVtmNiQ_D81C9gzwdFRdJKeRKfEIWqLzL_q8UMtzEFTdyGHNG5KCvoSWbGUsW1ApbYSzPsHZDbypgKTQVcH/s400/173042068.jpg" width="400" /></a></div><div class="link" style="background-color: #e6e6e6; color: #010000; font-family: Verdana, sans-serif; margin: 0px 0px 12px; padding: 2px 9px;"><span style="background-color: white; font-size: x-small;">Damascus has signed an agreement with Russian oil and gas company SoyuzNefteGaz to jointly prospect for oil off Syria’s Mediterranean coast, a spokeswoman for the Syrian natural resources ministry said Wednesday.</span></div>Damascus has signed an agreement with Russian oil and gas company SoyuzNefteGaz to jointly prospect for oil off Syria’s Mediterranean coast, a spokeswoman for the Syrian natural resources ministry said Wednesday. <br /><div style="background-color: white; color: #010000; font-family: Georgia, Arial, sans-serif; line-height: 1.5; margin-bottom: 10px; padding: 0px;">The Russian company will be in charge of financing all costs, tentatively estimated at $90 million.</div><div style="background-color: white; color: #010000; font-family: Georgia, Arial, sans-serif; line-height: 1.5; margin-bottom: 10px; padding: 0px;">“During the first stage, which envisages research and initial prospecting, the contractor [SoyuzNefteGaz] is expected to invest 15 million,” the spokeswoman said. “Then, during test drilling, the contractor will further invest $75 million to make at least one test well.”</div><div style="background-color: white; color: #010000; font-family: Georgia, Arial, sans-serif; line-height: 1.5; margin-bottom: 10px; padding: 0px;">She said that if test drilling confirms that the site has commercial-scale reserves of oil and gas, SoyuzNefteGaz would build the necessary infrastructure to subsequently develop the field and extract oil.</div><div style="background-color: white; color: #010000; font-family: Georgia, Arial, sans-serif; line-height: 1.5; margin-bottom: 10px; padding: 0px;">SoyuzNefteGaz was established in 2000 to enhance economic cooperation with former Soviet countries, the Middle East and North Africa. It is headed by former Russian Energy Minister Yury Shafranik.</div><div style="background-color: white; color: #010000; font-family: Georgia, Arial, sans-serif; font-size: 0.75em; line-height: 1.5; margin-bottom: 10px; padding: 0px;"><br /></div><div class="link" style="background-color: #e6e6e6; color: #010000; font-family: Verdana, sans-serif; font-size: 0.65em; margin: 0px 0px 12px; padding: 2px 9px;">http://en.ria.ru/russia/20131225/185921289/Syria-Signs-Oil-Exploration-Deal-With-SoyuzNefteGaz.html</div>

Syria Signs Oil Exploration Deal With Russian Firm SoyuzNefteGaz

Damascus has signed an agreement with Russian oil and gas company SoyuzNefteGaz to jointly prospect for oil off Syria’s Mediterranean coast,...