Home' Trinidad and Tobago Guardian : July 6th 2017 Contents BG8 | ENERGY
BUSINESS GUARDIAN guardian.co.tt JULY 6 • 2017
OPEC's output rose to
the highest this year
OPEC's crude production rose to the highest this
year in June as member nations exempt from
output curbs pumped more.
Members of the Organisation of Petroleum
Exporting Countries boosted their output by
260,000 barrels a day compared with May, ac-
cording to a Bloomberg News survey of analysts, oil companies
and ship-tracking data. Half of the increase came from Libya and
Nigeria, which are exempt from making cuts under the deal agreed
between OPEC and its allies.
OPEC began production cuts in January to reduce swollen global
inventories and bolster the price of oil, which is still stuck at half
its 2014 level. In May, OPEC and its partners, including Russia,
extended their agreement for a further nine months through March
2018 because the oil market had failed to rebalance.
Resurgent production in Libya and Nigeria is threatening to
neutralise the cuts made by the rest of the group. Libya's output
is currently at a four-year high, back above the one million-barrel-
a-day mark, according to a person with knowledge of the matter.
In Nigeria, the return of Forcados crude offset declines elsewhere
as force majeure was declared on Bonny Light in June.
OPEC's biggest producer Saudi Arabia increased output by
90,000 barrels a day in June, while Angola and the United Arab
Emirates both lifted production by 40,000 barrels a day from May,
the survey showed.
Over the first half of the year, the 11 OPEC members bound by the
output curbs were fully compliant with their pledges, the survey
showed. Counting Nigeria and Libya, total OPEC output remained
about 390,000 barrels a day above the target set out in the No-
vember 30 production agreement, putting the group only about
71 per cent of the way toward its goal, according to data compiled
Equatorial Guinea joined OPEC at its meeting in May, boosting
the group's membership to 14. The addition of the African country's
150,000 barrels a day of output increased the group's total June
production to 32.55 million barrels a day. Bloomberg
Aramco lets $500m
in offshore contracts
Saudi Aramco has let a contract to Saipem for the
engineering, procurement, construction, and instal-
lation as well as the trunklines and installation works
in Saudi Arabia under a long-term agreement in force,
renewed in 2015 until 2021.
Aramco also let a contract extension in Angola for
the Gimboa floating production, storage, and off-
loading vessel to Saipem.
Both contracts total US$500 million.
The scope of work of the EPCI contract includes the
design, engineering, procurement, construction and
installation of a total of 19 jackets for the development
of Marjan, Zuluf, Berri, Hasbah, and Safaniya fields.
The extended FPSO contract in Angola includes
management and maintenance services, personnel,
material, and consumable supplies for three years,
plus one optional year.
Saipem also has defined change orders for projects
in West Africa and in the Caspian Sea. OGJ
Petrobras awards two-year
contract to Fugro in Brazil
Fugro has been awarded a further two-year contract
by Petrobras to provide comprehensive inspection,
repair and maintenance (IRM) and pipeline inspection
services in Brazil. This new award follows Fugro's
successful completion of an initial 12-month contract
for the oil major, after taking delivery of the new-build
vessel Fugro Aquarius.
Built specifically for the Brazilian market by Wilson
Sons shipyard in São Paulo, with local content of more
than 60 per cent, Fugro Aquarius is an 83-m, DP-2
ROV support vessel.
Commenting on the latest award, Andrew Seymour,
Fugro's manager for marine business in Brazil said, "As
industry leader in ROV IRM, Fugro provides world-
wide subsea inspection services in water depths up to
4,000 m. This new contract strengthens our position
in the Brazilian market, despite the challenging market
conditions, and reinforces our ability to provide these
services to clients such as Petrobras."
Operations commenced in May 2017.
field deal in Nigeria
Nigeria's state-owned oil company said it signed
a deal with Schlumberger to provide US$700 million
for the development of two oil fields in the country's
The Anyala and Madu fields, estimated to have re-
serves of 193 MMbo and 800 billion scfg, will pump
50,000 bopd and 120 MMcfgd on completion of field
development in early 2019, the Nigerian National Pe-
troleum Corp, or NNPC, said in a statement published
on its website.
"Under the agreement, Schlumberger will con-
tribute the required services in kind and capital for
the project development until first oil," the Houston,
Texas-based company said in a statement.
The offshore fields, also known as oil-mining leases
83 and 85, are owned 60 per cent by NNPC and 40
per cent by Lagos-based First Exploration & Produc-
tion, which is also the operator of the joint venture.
"Apart from providing funding for the development
of the fields, Schlumberger would also provide other
oil-field services on a limited exclusive basis," NNPC
said in the statement.
Nigeria, Africa's biggest oil producer, is expand-
ing oil exploration and production toward reaching
a proven reserves target of 40 billion bbl oil by 2020.
The country's reserves are currently estimated at 37.2
Qatar plans to boost gas output capacity
Qatar Petroleum plans to boost gas pro-
duction from its giant North Field, which it
shares with Iran, by 20 per cent after new
gas development, QP's chief executive said
on Tuesday, despite sanctions imposed on
the Gulf Arab state by its neighbours.
Qatar in April lifted a self-imposed ban on
development of the North Field, the world's
biggest natural gas field, and announced a
new project to develop its southern section,
increasing output in five to seven years.
That new project will raise Qatar's total
liquefied natural gas (LNG) production ca-
pacity by 30 per cent to 100 million tonnes
from 77 million tonnes per year, Qatar Pe-
troleum's CEO Saad al-Kaabi told a news
conference in Doha.
Global LNG demand was 265 million
tonnes in 2016, according to Royal Dutch
Shell's annual LNG outlook.
"After further assessment, we have de-
cided that the best way to develop this huge
project is by dedicating it to the production
and export of liquefied natural gas," Kaabi
"We have decided that the best option
would be to double the size of the project
to 4 billion cubic feet of gas per day... This
project will strengthen our position as the
world's largest LNG producer and exporter."
QP will need to build new LNG trains to
meet the expansion in capacity, Kaabi said.
"We will be looking for international part-
ners to join us," he said, declining to say when
a tender would be issued.
The announcement comes a day after
France's Total signed an agreement with
Iran to develop its part of the shared off-
shore gas field that Tehran calls South Pars.
Kaabi said there is no cooperation with
Iran on any project in the North Field, but
the countries have a joint committee that
meets every year to discuss development
of the field.
"We know what they [the Iranians] are
doing and they know what we are doing,"
Iran, which suffers severe domestic gas
shortages, has made a rapid rise in produc-
tion from South Pars a top priority.
The deal on Monday with Total is to de-
velop its South Pars Phase 11 project, the
first major Western energy investment in
the country since the lifting of sanctions.
Links Archive July 5th 2017 July 7th 2017 Navigation Previous Page Next Page