Yesterday, 2:57 PM
- BP has the highest exposure in the countries that have said they will cut oil production, Rystad Energy says, with the likely participation of Russia, where BP holds a 20% stake in Rosneft (OTC:RNFTF), puts it ahead of rivals Total (NYSE:TOT), Shell (RDS.A, RDS.B), ExxonMobil (NYSE:XOM), Eni (NYSE:E) and Chevron (NYSE:CVX).
- “If Russia should deliver on their production cut, we believe that the fields operated by Rosneft will be affected,” Rystad's Espen Erlingsen says. "Also in Iraq, the government will need to reduce production from the large Basra fields. Here the BP-operated Rumaila is a likely candidate for cuts.”
- BP has ~1.6M bbl/day of production in the affected countries, with Russia accounting for roughly half the total, according to the Rystad analysis; Total has ~700K bbl/day of output in the countries, Shell has 586K bbl/day, followed by XOM with 563K, Eni with 497K, and CVX 194K.
Mon, Dec. 5, 7:17 PM
- In addition to Pemex's farmout of the Gulf of Mexico's potentially lucrative Trion oil field to BHP Billiton, beating out BP, today's final phase of Mexico’s first oil and gas bid round awarded of eight of 10 deepwater blocks in the Gulf to a variety of global operators.
- In four other areas surrounding Trion in the Perdido Fold Belt, areas 1 and 4 went to China's Cnooc (NYSE:CEO), area 2 to a consortium of Total (NYSE:TOT) and ExxonMobil (NYSE:XOM), and area 3 to a group comprising Chevron (NYSE:CVX), Pemex and Inpex.
- In the Salina basin to the south, areas 1 and 3 went to a consortium of Statoil (NYSE:STO), BP and Total (TOT), area 4 to Sierra Offshore and a Mexican entity, and Area 5 to a group led by Murphy Oil (NYSE:MUR) and Sierra Offshore; areas 2 and 6 received no bids.
- CEO, STO and Pemex each submitted individual bids that did not win an award, while consortia that unsuccessfully submitted bids were Eni (NYSE:E) and Lukoil (OTC:LUKOF, OTCPK:LUKOY), and Royal Dutch Shell (RDS.A, RDS.B) and Atlantic Rim Mexico.
Tue, Nov. 29, 10:52 AM
- Eni (E +0.7%) CEO Claudio Descalzi says the company is in talks with various parties to cut its stake in the giant Zohr gas field offshore Egypt to 50%, following last week's agreement to sell a 10% stake to BP for $375M.
- BP, which has an option to buy another 5%, also will reimburse Eni for ~$150M of past costs, and analysts at BofA Merrill Lynch say the $525M capital injection from the Zohr deal "helps to cover the dividend in the short term and is evidence that Eni can execute disposals after the failed sale of [chemical unit] Versalis earlier in the year."
- Zohr, discovered by Eni in 2015, is the biggest gas field ever found in the Mediterranean, with an estimated 850B cm of gas in place; the approval process for development of the field was completed in February and first gas is expected by year-end 2017.
Tue, Nov. 29, 8:55 AM
- Chevron (NYSE:CVX) is teaming up with Mexico's Pemex and Japan’s Inpex to bid for the right to explore for oil and natural gas in Mexico's first-ever deepwater auction, set for Dec. 5.
- The auction marks the first time Mexico's state-owned operator will partner with private companies to develop crude in the Gulf of Mexico, and is one of seven groups and eight individual bidders to qualify for participation.
- Total (NYSE:TOT) is joining forces with BP and Statoil (NYSE:STO) in one group, and with ExxonMobil (NYSE:XOM) in another, while Eni (NYSE:E) and Lukoil (OTCPK:LUKOY, OTC:LUKOF) also joined up, and Anadarko Petroleum (NYSE:APC) and Royal Dutch Shell (RDS.A, RDS.B) formed another group; other companies involved include BHP, CEO, MUR.
- The Mexican regulator has not specified which bids are for the Trion field joint venture with Pemex or for the other areas.
Tue, Nov. 22, 11:26 AM
- Eni (E +0.4%) signs a framework agreement with General Electric (GE +0.5%) to jointly develop large-scale renewable energy projects and hybrid solutions with a focus on energy efficiency.
- Eni says the agreement covers onshore and offshore wind generation, solar power, hybrid gas-renewable projects, electrification of new and existing assets, waste-to-energy projects, the green conversion of mature or decommissioned industrial assets and the deployment of technologies developed by Eni itself.
- Eni says the GE deal will help it pursue the progressive decarbonization of its energy mix.
Mon, Nov. 21, 7:14 PM
- ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX) are among the oil majors least prepared for a shift to a greener global economy, according to a report by CDP, a non-profit group that collects company environmental data on behalf of 800-plus institutional investors.
- Only Suncor Energy (NYSE:SU) scores worse in the study of the readiness of big energy companies in transitioning to a low carbon economy and a future in which natural resources such as water become increasingly scarce.
- European companies fare the best: Statoil (NYSE:STO) ranked first, in part because it had the highest share of gas in its stock of proven reserves, Eni (NYSE:E) scored second, thanks to its big gas projects in the pipeline, and Total (NYSE:TOT) was third due to its stakes in SunPower and the Saft batery maker.
- XOM "performs below its peers in its emissions performance and wider climate governance and strategy considerations," according to the report.
Fri, Nov. 18, 8:32 AM
- Eni's (NYSE:E) board approves plans to develop the Coral South liquefied natural gas project offshore Mozambique, paving the way for a final investment decision expected later this year.
- Eni says Coral South will require the construction of six subsea wells connected to a floating production facility capable of producing more than 3.3M metric tons/year of LNG.
- The Coral South field, discovered in May 2012, contains 16T cf of gas, and overall reserves discovered in Mozambique's Rovuma Basin in recent years amount to ~85T cf, making it one of the largest discoveries in a decade.
- Last month, Eni signed a 20-year deal to supply BP with LNG from the project.
Thu, Nov. 17, 11:57 AM
- Nigeria's government says it reached a $5.1B settlement to reimburse foreign oil companies including ExxonMobil (NYSE:XOM), Royal Dutch Shell (RDS.A, RDS.B), Chevron (NYSE:CVX), Total (NYSE:TOT) and Eni (NYSE:E) for operating costs incurred during 2010-15.
- The amount, less than the $6.8B previously discussed, will be settled through crude oil sales over five years and will be interest free, according to the petroleum minister.
- Nigeria still owes the companies $2.6B from operations this year.
Tue, Nov. 15, 12:05 PM
- Gaining on triple or more their normal volume:
- Advance Auto (AAP +15.5%)
- BBVA (BBVA +1.1%)
- Eni (E +1.9%)
- Global Payments (GPN +2.9%)
- JD.com (JD +13.3%)
- Visa (V +1.3%)
Tue, Nov. 15, 10:58 AM
- Kazakhstan's Kashagan oil field produced ~201K tons of oil, or nearly 1.7M barrels, in October, its first full month of operation, finally showing some results after multi-year delays and $55B spent in development.
- The October output figure is the equivalent of 52.6K bbl/day, while Kazakh officials have said that in order to reach commercial output the field needs to achieve stable production of at least 75K bbl/day.
- The consortium developing Kashagan consists of China National Petroleum (NYSE:PTR), ExxonMobil (NYSE:XOM), Eni (NYSE:E), Royal Dutch Shell (RDS.A, RDS.B), Total (NYSE:TOT), Inpex and KazMunaiGas.
Thu, Nov. 10, 5:59 PM
- Angolan state oil company Sonangol and its partners including Chevron (NYSE:CVX) say they have started production at the Mafumeira Sul offshore oil field with an initial output of 10K bbl/day.
- The $5.6B project is using early production systems while it is being fully developed to pump an estimated 110K bbl/day or more, Sonangol says.
- CVX holds a 39.2% interest in Mafumeira Sul while Sonangol has a 41% stake; other partners are Total (NYSE:TOT) and Eni (NYSE:E), with respective 10% and 9.8% holdings.
Tue, Nov. 8, 10:23 AM
- Nigeria's government has reached an outline settlement to resolve a dispute with western energy firms that would pay the companies $5B to cover exploration and production joint venture costs in the country, Financial Times reports.
- Nigeria's petroleum minister tells FT that Royal Dutch Shell (RDS.A, RDS.B), ExxonMobil (NYSE:XOM), Eni (NYSE:E), Chevron (NYSE:CVX) and Total (NYSE:TOT) accepted the settlement of costs incurred during 2010-15, and hopes a deal can be finalized by year-end.
- The settlement, which would be a haircut on the $6B-plus the western companies claim they are owed by Nigeria, needs the approval of two government bodies and final signoff from Pres. Buhari.
- E&P costs are supposed to be split in the partnerships between the two sides, but western companies have accused Nigeria of failing to pay its portion of the expenses, which has caused the companies to hold back on investment.
Mon, Nov. 7, 10:45 AM
- Eni (E +0.9%) will reduce its capital spending at least through next year, and oil prices should remain high enough over the next three years to maintain investment spending and its dividend. CEO Claudio Descalzi tells Bloomberg.
- Eni could still make a profit, maintain spending and pay a dividend with crude at $50/bbl, Descalzi says.
- BP (BP +0.7%) is holding outlays to ~$16B this year compared with a previous estimate of less than $17B, CEO Bob Dudley also tells Bloomberg, adding that many other companies in the industry were doing the same.
- Dudley also says he believes oil supply and demand is “generally” in balance, “waiting until the stocks drain out," and sees crude prices stabilizing next year at ~$55/bbl.
Fri, Nov. 4, 10:21 AM
- Ten of the world’s biggest oil companies - including Saudi Aramco, Royal Dutch Shell (RDS.A, RDS.B), BP, Total (NYSE:TOT), Eni (NYSE:E), Statoil (NYSE:STO) and Repsol (OTCQX:REPYF, OTCQX:REPYY) - announce plans to invest a combined $1B over the next 10 years to develop low-carbon technologies.
- The group's Oil and Gas Climate Initiative, which is seeking ways the industry can support a global deal to fight climate change while continuing to produce their hydrocarbon reserves, says its investments initially will focus on carbon capture and storage technology and efforts to reduce methane emissions from the oil and gas industry.
- Environmental groups say the commitment is far from enough and represents a tiny fraction of the $90B-plus the companies expect to spend this year alone on finding and producing fossil fuels.
- The investment comes as last year’s Paris climate accord enters into force, and three days before delegates from nearly 200 countries meet in Morocco for the latest round of talks to flesh out the deal.
Wed, Nov. 2, 9:14 AM
- Mozambique's energy minister says Eni (NYSE:E) is expected to make a final investment decision on its first offshore deepwater liquefied natural gas project in the country by the end of this year, and Anadarko Petroleum (NYSE:APC) likely will make its own investment decision on a separate LNG project next year.
- The government also says it plans to hold its sixth round of oil and gas licensing round late in 2017 or in 2018.
- Mozambique has ~85T cf of gas reserves, although it likely would take at least five years after final investment decisions before gas production begins.
Wed, Nov. 2, 5:32 AM
- Facing mounting pressure, CEOs of BP, Eni (NYSE:E), Repsol (OTCQX:REPYY), Saudi Aramco, Shell (RDS.A, RDS.B), Statoil (NYSE:STO) and Total (NYSE:TOT) - will announce details of a joint investment fund to develop technologies aimed at cutting emissions and promoting renewable energy.
- Friday's event will coincide with the formal entry into force of the 2015 Paris Agreement to phase out man-made greenhouse gases in the second half of the century.