Gazprom Neft Considers New Iraqi Kurdistan Oil Projects
Gazprom Neft, the oil arm of Russian gas giant Gazprom, said on June 9 it was considering an offer to expand its activities Iraqi’s Kurdistan region, mirroring a move in the region by Russian peer Rosneft.
Gazprom Neft is working on three oil projects in Iraqi Kurdistan, where it is mostly engaged in exploration. In Iraq, outside the Kurdish area, Gazprom Neft is involved in the Badra oil field, where it produces 77,000 bbl/d.
Kurdish oil production has been mainly been led in recent years by mid-sized firms such as Genel. Larger companies such as ExxonMobil and Chevron are still exploring and have given up some blocks after disappointing searches.
“We are looking into possibilities of increasing our exposure (to Iraqi Kurdistan). We have been offered such possibilities,” Vadim Yakovlev, Gazprom Neft’s first deputy chief executive, told reporters on the sidelines of an annual general meeting. He did not elaborate on the new projects.
Russian major Rosneft agreed this month to explore and develop five fields in Iraqi Kurdistan.
Gazprom Neft, the fastest growing company among Russian oil producers by volumes, also planned to increase its stake in a West Siberian project, owned by Spanish oil major Repsol, Yakovlev said, adding his firm had applied to Russia’s regulator to acquire 25% in Eurotek-Yugra.
Yakovlev said the deal was expected to be completed in two to three months. The project’s reserves are valued at 30 million tonnes.
Gazprom Neft CEO Alexander Dyukov said his company expected a rise in net profit and dividends in 2017 after it saw earnings of $3.5 billion and paid 19 cents per share on 2016 results.
The company expected to increase its oil output further in 2018 from planned 89.2 million tonnes (1.78 MMbbl/d) this year, though the future volumes would depend on how a global deal to cut oil production would pan out, Yakovlev said.
Russia has joined OPEC and other non-OPEC producers in cutting output in a bid to reduce bloated global inventories and shore up oil prices.
Gazprom Neft operates Russia’s only offshore Arctic oil field, Prirazlomnoye, where production is seen rising to 4.5 million tonnes per year by 2019 from 2.6 million tonnes seen in 2017.
Global firms to jointly study Iran oilfields
A team of global energy firms including Russia's Gazprom Neft , Austria's OMV and the National Iranian Oil Company (NIOC) will jointly study oilfields in Iran, a report said.
Gazprom Neft and OMV signed the relevant memorandum of understanding at the St. Petersburg International Economic Forum, Iran Daily reported, citing Russian news agency Tass.
The area of possible cooperation includes preliminary analysis, assessment and study of oilfields located in Iran in cooperation with NIOC.
"The company is already implementing a large project to develop the Badra field in Iraq and is studying the possibility of participating in the development of two blocks in Iran. Taking into account the extensive experience of OMV in the Middle East and, in particular, in Iran, I am sure that joint geological assessment of assets will be most effective," first deputy general director of Gazprom Neft, Vadim Yakovlev was quoted as saying by the press service.
Shell And Gazprom ink 2 agreements for the Baltic LNG project
Royal Dutch Shell and Russian gas monopoly Gazprom have signed two agreements on the Baltic liquefied natural gas (LNG) project.
Gazprom CEO Alexey Miller and Shell CEO Ben van Beurden signed the agreements at the St. Petersburg International Economic Forum 2017 on June 3.
The first agreement to sign a joint venture, which will secure financing for and carry out the design, construction and operation of the LNG plant in the Leningrad Region. Based on that concept, Gazprom and Shell will take further steps in the implementation of the Baltic LNG project.
The Shell and Gazprom CEOs also signed the Joint Study Framework Agreement on the Baltic LNG project. The signing of this document will allow the companies to start developing preliminary project documentation as soon as possible.
The Baltic LNG project envisages the construction of the LNG plant with an annual capacity of 10 million tonnes in the port of Ust-Luga, Leningrad Region.
Gazprom and Shell are jointly engaged in the Sakhalin II project, which includes Russia’s only active LNG plant. The Sakhalin II operator is Sakhalin Energy Investment Company Ltd. (Gazprom – 50% plus one share, Shell – 27.5% minus one share, Mitsui – 12.5%, and Mitsubishi – 10%).
In 2015, Gazprom and Shell signed the Memorandum to construct the third production train of the LNG plant, as well as the Agreement of Strategic Cooperation providing for the expansion of the companies’ joint project portfolio, including a potential asset swap. In 2016, the LNG plant produced upward of 10.9 million tonnes of LNG, exceeding the design capacity by over 1.3 million tonnes.
In June 2016, Gazprom and Shell signed the Memorandum of Understanding on the Baltic LNG project. The document reflects the parties’ intention to explore the prospects for cooperation within the project.
Amec Foster Wheeler Wins Contract For Major Saudi Aramco Oilfield Development
Amec Foster Wheeler announces today that it has been awarded a contract by Saudi Aramco, for facilities required as part of the integrated oil and gas expansion of the Marjan offshore and onshore oilfield in the Eastern province of Saudi Arabia.
Under the five-year contract, Amec Foster Wheeler will deliver the pre-FEED, FEED, overall programme management, and other support services for an additional 300,000 barrels per day gas/oil separation train, a world scale greenfield gas processing plant, a cogeneration facility and modifications to an existing facility to add natural gas liquids fractionation capacity.
This award supports the continued development of Amec Foster Wheeler's capability and capacity to deliver in Saudi Arabia.
Nick Shorten, President of Upstream Capital Projects at Amec Foster Wheeler, said:
"We have played a key role in many of Saudi Aramco's major upstream and downstream investments. With our successful track record with Saudi Aramco stretching back more than 50 years, this latest award for this major oilfield expansion programme is a real vote of confidence in our technical expertise and our ability to deliver large and complex projects, plus our long-term commitment to local development."
Wood Group has landed two new contracts from Statoil for its North Sea assets
The service firm, which is the process of ironing out a takeover of Amec Foster Wheeler, will deliver concept and feasibility studies for Statoil’s Norwegian North Sea assets.
Wood Group is responsible for delivering a topside concept study evaluating the tie in of Total’s Garantiana field development to Statoil’s Gullfaks B and Visund facilities.
In addition, Wood Group will provide a feasibility study for Statoil’s Tampen oil pipeline, covering subsea pipelines and risers and topside modifications.
Robin Watson, Wood Group’s chief executive, said: “The award of these two new contracts demonstrates the strong relationship we have developed with Statoil, which spans more than two decades and stretches across their global portfolio of assets.
“We will utilise our broad depth of capabilities, Norwegian North Sea experience and robust technical expertise in concept and feasibility studies to support their successful delivery.
“It’s notable our support on the Tampen Oil pipeline project is leveraging our topside and subsea competence and knowledge, demonstrating Statoil’s clear confidence in our ability to harness our solutions across a diverse project scope. Our focus will be delivering safe, efficient and innovative services that support and enhance these facilities.”
The two contracts are awarded under an evergreen master services agreement secured with Statoil in May 2016, to support the life cycles of their offshore and onshore facilities. They will be delivered by Wood Group’s offices in Norway.