When oil producers, service companies and other oil-sector outfits begin reporting first-quarter earnings next week, the results are expected to be the lowest in several years, a decade perhaps.A year ago, crude prices were in the triple digits on their way to a peak near $150 a barrel in July. They spent the latter part of 2008 tumbling and today hover around $50 a barrel. Natural gas prices have fallen sharply too as the world grapples with a severe recession that's crushed energy consumption.A benefit for consumers has been lower gasoline and other fuel bills. On average, pump prices are roughly 40 percent lower than they were a year ago, when gasoline topped $4 a gallon.More than once last year, executives from Exxon Mobil Corp., Chevron Corp. and the other oil majors were pressed by members of Congress to explain soaring fuel prices amid huge profits. Don't expect similar hearings in 2009.
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Sunday, April 19, 2009
Oil industry profits expected lowest in years
The nation's biggest oil companies certainly won't need a bailout from the federal government, but they won't have to defend staggering profits anytime soon either.
Lufeng field to shut down by year-end
STAVANGER, NORWAY: StatoilHydro and Chinese National Offshore Oil Company (CNOOC) have reached a mutual agreement through which CNOOC will accept full responsibility for the abandonment of the Lufeng field in the South China Sea.
The field has been in production since 1997, and was originally scheduled for shutdown in 2004. Located offshore China, the field had produced more than 42 million barrels by year-end 2008, far more than the 25 million barrels of oil originally projected.Lufeng 22-1 lies some 250 kilometers (155 miles) southeast of Hong Kong. Lufeng 22-1 was first discovered in 1983 by Occidental. Ampolex took over in 1991 and sold its interests to StatoilHydro in 1996. Under the mutual agreement, StatoilHydro will hand over its 75 percent interest in Lufeng 22-1 to CNOOC. The transfer will take effect after the production shutdown later this year.Read More
The field has been in production since 1997, and was originally scheduled for shutdown in 2004. Located offshore China, the field had produced more than 42 million barrels by year-end 2008, far more than the 25 million barrels of oil originally projected.Lufeng 22-1 lies some 250 kilometers (155 miles) southeast of Hong Kong. Lufeng 22-1 was first discovered in 1983 by Occidental. Ampolex took over in 1991 and sold its interests to StatoilHydro in 1996. Under the mutual agreement, StatoilHydro will hand over its 75 percent interest in Lufeng 22-1 to CNOOC. The transfer will take effect after the production shutdown later this year.
Bayou Bend sells U.S. assets to Dynamic Offshore Resources
HOUSTON: Bayou Bend Petroleum Ltd. (TSX VENTURE: BBP) has signed a definitive agreement to sell substantially all of its U.S. oil and gas properties to Houston-based Dynamic Offshore Resources.
The purchase price for the transaction is US $12.5 million, payable in cash upon closing of the transaction.In addition, a deferred payment of up to US$8 million may be made on April 1, 2011, based upon the increase in proved oil and gas reserves attributable to the purchased interests as at Dec. 31, 2010 above a specified threshold, at a rate of US$0.20 per Mcfe.The transaction is subject to shareholder and regulatory approval. Canaccord Adams served as financial advisor to Bayou Bend in the evaluation of strategic alternatives.Read More
The purchase price for the transaction is US $12.5 million, payable in cash upon closing of the transaction.In addition, a deferred payment of up to US$8 million may be made on April 1, 2011, based upon the increase in proved oil and gas reserves attributable to the purchased interests as at Dec. 31, 2010 above a specified threshold, at a rate of US$0.20 per Mcfe.The transaction is subject to shareholder and regulatory approval. Canaccord Adams served as financial advisor to Bayou Bend in the evaluation of strategic alternatives.
Shell calls upon EMGS for Senegal survey
TRONDHEIM, NORWAY: Electromagnetic Geoservices ASA (EMGS) has been awarded a contract worth about US$4 million by Shell Exploration and Production B.V. to conduct a 3-D electromagnetic (EM) survey off the coast of Senegal.
The survey will be carried out using the new, purpose-built EM vessel Boa Thalassa and will start immediately after surveys in the Norwegian Sea have been completed.The 3-D EM survey covers parts of a license area where a number of hydrocarbon drilling prospects have been identified by the operator, First Australian Resources. The objective of the EM exploration program is to enable Shell to determine whether to acquire a 70 percent interest in the license and subsequently enter into a well commitment.This is the first EM exploration program to be performed under the global frame agreement that was recently signed between EMGS and Shell.Read More
The survey will be carried out using the new, purpose-built EM vessel Boa Thalassa and will start immediately after surveys in the Norwegian Sea have been completed.The 3-D EM survey covers parts of a license area where a number of hydrocarbon drilling prospects have been identified by the operator, First Australian Resources. The objective of the EM exploration program is to enable Shell to determine whether to acquire a 70 percent interest in the license and subsequently enter into a well commitment.This is the first EM exploration program to be performed under the global frame agreement that was recently signed between EMGS and Shell.
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