TOPICS OF INTEREST
Eni Starts Up Production from UAE’s Mahani Field 1 Year After Discovery
Production has started on the Mahani field in Concession Area B of the Sharjah Emirate, the first startup from a new discovery onshore Sharjah in 37 years.
ADNOC Subsidiary Awards $324 Million in Contracts To Improve Onshore Operations
Two contracts awarded for flowlines and wellheads at ADNOC’s Abu Dhabi oil fields are expected to be completed in 5 years. A third contract to develop a bypass system for its Jebel Dhanna and Fujairah terminals is expected to be completed in 30 months.
China Planning Railway To Transport Vaca Muerta Production
PowerChina said railway plans are moving forward under Argentina’s current administration and China could provide the financing for the $1.2–1.5 billion project.
Lake Charles LNG Projects Needs Another 5 Years To Build
Global market conditions have impacted Magnolia LNG’s ability to reach FID. Kinder Morgan’s pipeline project also depends on an FID for the Magnolia LNG project.
US Army Corp of Engineers Requests Settlement With North Dakota
The pipeline continues to operate as courts weigh expedited appeals from the Army Corp of Engineers and Energy Transfer.
Another 150 North American E&Ps May Require Chapter 11 Protection Through 2022
Several E&P and OFS companies have already filed for Chapter 11, but unless prices strengthen the total number of filings could be as high as 190 by 2022.
As One Louisiana LNG Project Begins, Others Still in Development
The Cameron LNG project completed its final train this month, but other LNG projects such as Calcasieu Pass LNG, Driftwood LNG, and Lake Charles LNG face difficulties during the economic downturn.
Brazilian Major Announces Mothballed Platform and Binding Phases for Offshore/Onshore Assets
The announcements are part of the company’s divestment strategy to reduce debt and improve capital.
Pipeline Leak-Detection Company Joins Chevron Technology Ventures Program
A volatile market, and a shift to more remote operations during the global pandemic has been a catalyst for demand for mIQroTech’s leak-detection technology
Canada's Shipping Runs Off the Rails
The country’s once-thriving railway system has skidded to a stall, falling victim to low crude-oil prices, reduced demand, and government-imposed oil production cuts.
What Are the Market Drivers for a Recovery?
Crude oil and natural gas prices may recover moving into 2021, albeit at different rates brought on by a variety of market dynamics. Geopolitics and the potential for another wave of COVID-19 cases and resulting lockdowns still pose a threat to the industry.
Western Australia LNG Project Expects Full Trains Online in September
Repair work on the Gorgon LNG plant’s propane heat exchangers is underway. Planned maintenance on the Gorgon Train 2 was expected to end in July.
Carbo Ceramics Leaves Chapter 11 With New Ownership
The investment group Wilks Brothers, now owners of Carbo Ceramics, has sought stakes in other OFS companies this year.
Weatherford Signs Deal With Iraqi Drilling Company
The 18-month contract is for work in the Al-Nasiriyah oil field in southern Iraq’s Dhi Qar province.
Are Gas Pipelines Really Impossible To Build?
The growing opposition in the US for new natural gas pipelines comes as supply and demand continue to grow. Pipelines are necessary for the transport of the gas. Why is there a disconnect between the two?
Frac Sand Companies’ Bankruptcies Add to OFS Sector Troubles
The contraction of the shale sector and its operations such as drilling and completions due to COVID-19 and the drop in oil price has sifted down to the frac sand suppliers.
LNG Transport Options Widen in North America
Larger-capacity LNG truck trailers and new regulations for transport by rail are providing more options for industrial consumers in remote locations.
Major North American Pipelines Projects Hit With Setbacks
US Court decisions put two major pipelines on hold and led to the cancellation of another pipeline project within days of each other.
US Authorizes Exports From Jordan Cove LNG Project
The US approved construction and operations for the Jordan Cove project in March; first gas is anticipated in 2024
Sercel Invests in Startup AMBPR To Build Robots for Oil and Gas
The partnership will deliver autonomous robots for safe work in adverse land, sea, and downhole environments.
McDermott Storage Unit To Install Tanks for Canadian Pipeline Expansion Project
CB&I Storage Solutions joins a list of contractors working on the Trans Mountain Expansion Project.
Equinor Issues Two Letters of Intent for Snohvit’s Askeladd Vest
Askeladd Vest is Phase 2 of the Snøhvit gas development, which is expected to see an FID this year.
Supply/Demand Fundamentals Bring US LNG Exports Down More Than Half in Q2
The drop in US LNG exports comes amid a combination of weak demand, ample supply, additional capacity coming on line, and flexibility to cancel US cargoes.
Energy Intelligence Groups Identify Key Challenges to Permian Water Growth and Recovery
A recovery in the energy industry is key to the oilfield water sector in the Permian. But the industry must address issues such as further research, regulatory changes, and technology.
Poland To Expand LNG Terminal Capacity
Poland state officials said the terminal expansion is crucial to strengthening the country’s energy security by increasing its capacity to receive LNG and gas from European countries and decreasing its dependence on Russia.
Appalachian Trail Pipeline To Continue After Supreme Court Ruling
Supreme Court upholds ACP’s controversial permit to lay pipe under national forest and across two states.
Equinor Proceeds With Powering Sleipner Field From the Norwegian Shore
Sleipner’s share in net-zero emissions savings will be more than 150,000 tonnes per year.
UPDATE: Total Faces $12 Billion Shortfall as it Continues $20 Billion Mozambique LNG Project
Construction on Mozambique LNG stopped in April due to COVID-19, but Total continues work on the project even amid a $12 Billion shortfall. Financing for the Mozambique LNG project follows engineering contracts awarded by Total in the past few months.
Prudent Ways to Restart Big Projects in Post-Pandemic World
Delays and disruptions have stymied project plans in the past few months. How will companies prevent current stresses from morphing into catastrophic issues?
Cameron LNG Sees First Production from Train 3 In Louisiana
Production from Train 3 comes almost a month after reaching its final commissioning stage. Commercial operations will follow testing and authorization from FERC.
Rio Grande LNG FID Expected in 2021
FID on RGLNG was originally expected in 2019, before it was pushed to Q1 2020. NextDecade will continue to develop and de-risk the project.
Western Australia Gas Producers May Profit From Oil Crash
The race is on to fill NWS gas export plant.
Global LNG Industry Faces Shutdowns Following Six Years of Continued Growth
New LNG capacity in 2019 kept pace with higher trading volumes and supply/demand growth. Key questions and barriers still remain for the future of the LNG industry in 2020.
Nigeria LNG Train 7 Progresses With EPC Contract
Train 7 is scheduled for commissioning by 2024 and would bring total capacity of Nigeria LNG’s complex to 30 mtpa.
W-Industries Awarded Contract for Mozambique LNG Project
The W-Industries contract comes 2 months after Worley was awarded a master service agreement for services on the Mozambique LNG project.
TechnipFMC To Design $10-Billion LNG Plant in Russia
The proposed Russian LNG project would sell LNG to Asia by 2025. It is the latest in a handful of LNG projects slated for Russia.
Shell Divests Appalachia Shale-Gas Assets to National Fuel Gas Co.
The sale of the Appalachia position is in line with Shell’s strategy to focus on its shales strategy.
Global Oversupply of Crude Leads to Scramble for Storage Solutions and Alternatives
No vacancy? The hunt for global alternatives to store crude oil includes offshore, global strategic reserves, pipelines, rail cars, and trucks.
Commercial Crude Stockpiles Nearing Record Levels
The US crude inventory grew by 74 million bbl since 13 March when the US declared a national emergency in response to COVID-19.
Cameron LNG Reaches Final Commissioning Stage of Train 3
The final commissioning stage of Train 3 brings the Cameron LNG project closer to initial production expected in Q2.
US Onshore Produced Water To Drop Nearly 20 Billion bbl by 2022
Cutbacks in oil and gas production and drilling and completions will result in a decrease in produced water and will also lead to a reduction in water infrastructure investment.
US Federal Court Invalidates Permit for Keystone XL Pipeline
The court ruling comes less than a month after TC Energy announced plans to proceed with construction of the Keystone Pipeline.
China’s GCL Subsidiary Plans LNG JV With Shell in Jiangsu
The planned JV is for one of three LNG terminals GCL is planning to build in China.
Shell Shuts In Perdido, ExxonMobil Shuts In Hoover Platform
Both platforms offshore assets were shut in following a leak in ExxonMobil's 100,000 B/D pipeline system.
Gazprom Neft To Develop Meretoyakhaneftegaz Project Alone After Shell Drops Out
Shell remains involved in the Salym Petroleum Development JV with Gazprom after dropping out of the planned Meretoyakhaneftegaz JV.
Qatar Petroleum Outlines Plans for LNG Projects
Qatar Petroleum will delay its North Field LNG expansion in Qatar with startup in 2025. Its Golden Pass project in Texas remains on track.
Industry Has Little Room for Further Cost Cutting
Energy research groups Wood Mackenzie and Rystad Energy say improvements in operations costs since the last downturn 5–6 years ago have made it difficult for companies to make further reductions amid the current drop in demand.
Successful String Test of Calcasieu Pass System Moves Project Forward
The successful string test comes 7 months after the company's FID on the Calcasieu Pass LNG project.
Market Conditions Take Shell out of Lake Charles LNG Project
Energy Transfer will look at taking on new partners and possibly reducing the size of the Lake Charles LNG project.
BLM Sees Tepid Results from Federal Land Lease Sale
Wyoming sold the most parcels during the recent US Bureau of Land Management’s auction for oil and gas leases on federal land.
Extended-Reality Initiative Optimizes Wellsite Planning
Immersive technology on projects such as wellsite planning incorporates XR, drones, and collaboration.
COVID-19 May Impact More Than Half of all Oil and Gas Projects Being Sanctioned
Revised estimates of project sanctioning total $61 billion in 2020, which is down from $192 billion forecast in 2019.
Mexico LNG Project Awards Technip USA a FEED Contract Award
LNG project in Mexico moves closer to FID in 2021.
Freeport LNG Project Introduces Feed Gas to Train 3
Initial production at Freeport LNG Train 3 is expected in the first quarter. The project’s final commissioning stage included feed gas.
Alaska LNG Project Receives Environmental Impact Statement
The Alaska LNG project moves another step closer to a final order, expected in June.
Sempra Energy and Bechtel Units Sign EPC Agreement for Port Arthur LNG
This is the second EPC contract Bechtel signed for Port Arthur LNG. Final investment decision is expected this year.
Eni Resolves Dispute With Partners To Restart Damietta LNG Plant in Egypt
The Damietta LNG plant is expected online by June 2020. The plant will be owned by ENI, EGAS and EGPC.
Phillips 66 Partners Takes 50% Interest in $1.6-Billion Liberty Pipeline Project
The transaction is expected to close in March. The Liberty Pipeline runs 700 miles between Cushing, Oklahoma and Guernsey, Wyoming.
Suncor Receives Approval To Build 40,000 B/D Facility in Alberta
Suncor gets Canadian approval for Meadow Creek West.
NGL Energy Partners signs agreements for Water Transport and Disposal in Delaware Basin
NGL Energy Partners announces acreage dedication for Delaware Basin water transport and disposal
Assessing Operational Readiness for Restart of Wafra Oil Field
After 4-1/2 years out of service, the massive Wafra oil field in the Saudi-Kuwaiti Onshore Partitioned Neutral Zone, is set to resume production sometime soon and ensuring a smooth restart is no small order.
Water Desalination Applications in Shale-Gas and Polymer EOR Produced Waters
Oil and gas extraction using water has opened up new hydrocarbon resources. However they can produce four times more salty water byproduct than oil. Desalination in shale gas and polymer-flood EOR remain niche markets for lowering cost and improving production.
Equinor Contracts Inspection Services for All Offshore Installations and Onshore Plants
Equinor has chosen four suppliers for inspection services on all offshore installations on the Norwegian Continental Shelf and onshore plants in Norway. The frame agreements, estimated at $383 million, are scheduled to be signed soon.
Eni Starts Production at Niger Delta Onshore Field
Eni credits an integrated work model for the startup just 3 weeks after completion. Under the model, various disciplines worked in parallel from the exploration phase and synergies with existing production facilities were leveraged.
HDPE Liner in Carbon Steel Pipe Manages Flowline Corrosion in Giant Onshore Field
Internal corrosion has caused ADNOC to suffer loss of containment in oil flowlines in a giant onshore field. This paper describes the successful 5-year field trial program and confirmation that HDPE liner application in carbon steel pipe can be a cost-efficient way to mitigate internal corrosion.
Water Survey Assesses Souring and Corrosion at Production/Injection Plant
At a water treatment plant for an onshore oil field in northern Germany, formaldehyde injection was started in 2015 as a biocide. The goal of this study was to understand the chemical parameters and microbial distribution in the water system and whether formaldehyde injection was effective.
Energy Transfer Agrees To Acquire SemGroup for $5.1 Billion
The deal sees Energy Transfer gain, among other assets, various crude and natural gas liquids pipelines running from the Denver-Julesburg and Anadarko Basins.
Pembina Pipeline To Acquire Kinder Morgan Canada in $4.35-Billion Deal
Calgary-based Pembina Pipeline Corp. has entered into agreements to acquire Kinder Morgan Canada Ltd. and the US portion of the Cochin Pipeline system from Kinder Morgan for a total purchase price of approximately $4.35 billion.
First Kenyan Oil Exports Heading To ChemChina
Seven years after discovering commercial reserves in the northern part of the country, the Kenyan government and a group led by Tullow have accepted a bid from the Chinese trading company to purchase its first shipments of crude.
First Permian Crude Delivered From Cactus II Pipeline
Trafigura confirmed that it had begun shipments from the Permian to Corpus Christi via the pipeline, which has a 670,000-B/D capacity. Operator Plains All American announced last week that it had completed work on the pipeline.
Hillcore Group Acquires Major Canadian Well Services Company
The private investment firm said it will partner with Treeline Well Services, one of the largest private rig providers in Canada, to build its service fleet following acquisition of the company. Treeline’s core areas are in Alberta and British Columbia.
Surveys Show Minority of Oil and Gas Firms Investing in Water Management
Getting water is a big issue for those who fracture wells, as is the disposal of it. The number of companies investing in water facilities and reuse, though, remains a minority.
Water Outside the Permian: How Are Other Basins Handling the Volumes?
The Permian gets the lion’s share of attention when it comes to produced water, but other basins have a need to haul volumes off-site. How has the market changed in these areas recently? Is there a greater enthusiasm for pipelines, and can water midstream thrive?
Twelve Companies Vie To Build Bangladesh’s First Onshore LNG Import Terminal
The country has scrapped plans to build additional FSRUs, and decided instead on land-based LNG as the mainstay of its energy mix
The Opportunity and Threat Posed by US Shale Water
The well count and completion intensity of US tight oil and gas operations have grown in recent years, and rising pressure from environmental regulations means that produced water management has become a key focus for operators.
Phillips 66 Forms JVs To Boost Takeaway Capacity from Bakken and Permian
Phillips 66 and partners in two separate joint ventures are building the Red Oak and the Liberty pipeline systems to deliver a total of approximately 750,000 BOPD to the US Gulf Coast with startup of service in early 2021.
Cactus II Pipeline To Start Partial Service in the Permian by Year End
Approximately 90% of construction work has been completed on the pipeline, which is expected to transport up to 670,000 BOPD from the Permian Basin to the US Gulf Coast. Cactus II is one of several pipelines aimed at alleviating takeaway concerns in the Permian.
BHGE Launches Multimodal Facility Expansion in Angola
The facility will serve as a hub to support customers and projects in the Angola and Southern Africa region.
Joint Venture To Build Takeaway Capacity in the Permian
The pipeline system will have the initial capacity to deliver 150,000 B/D of crude oil to multiple delivery points, accessing local refineries and connecting to several downstream pipelines.
Keep Your Eye on the Oil Price Ticker To Gauge 2019 Oilfield Services
The oilfield services sector showed steady revenue growth in 2018 thanks, in part, to increased project sanctioning. With the oil price falling $20 in the past 2 months, however, the future may be murkier than expected.
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05 January 2021
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12 January 2021
ITEMS OF NOTE
07 August 2018
20 July 2018
16 February 2018
18 December 2017
28 November 2017