Russia's Gazprom to Take Part in Iran's LNG Project
TEHRAN (FNA)- Russia’s top gas producer Gazprom signed a roadmap on implementation of projects in Iran and a memorandum of understanding (MoU) to cooperate on an LNG project in the country.
The MoU was signed following a visit to Iran by Gazprom’s delegation headed by the company's chairman Aleksei Miller. As part of the visit, Miller met Iran’s Oil Minister Bijan Zanganeh.
The roadmap envisions preparation of a conceptual study on the implementation of the integrated projects in the field of hydrocarbon production, transportation, and refining, including petrochemistry, in Iran by Gazprom. The document was signed by Gazprom Chairman and Chief Executive of the National Iranian Oil Company (NIOC) Ali Kardor.
Moreover, heads of Gazprom, NIOC and Oil Industry Pension, Saving and Staff Welfare Fund signed a memorandum of understanding, which stipulates joint consideration of potential cooperation within the Iran LNG project.
The first stage of Iran LNG project envisions the construction of two LNG lines with capacity of 5.25 million tons per year each. The second stage implies that the capacity will be increased to 21 million tons per year due to the construction of two more lines.
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Bosnian, Russian gas firms to form a joint venture
SARAJEVO, Dec 16 (Reuters) - Bosnian gas distributor Gas-Res and Russian oil and gas company Gazprom SPG agreed on Saturday to form a joint venture that will build a liquefied natural gas (LNG) plant in Bosnia’s Serb-dominated region, according to a regional television report.
The plant, which will be majority-owned and financed by Gazprom SPG and built in the eastern Bosnian town of Zvornik, will cost an estimated 70 million euros ($82 million), officials said during a signing ceremony in Banja Luka.
The president of Bosnia’s Serb Republic region, Milorad Dodik, said the factory would use Russian gas transported to Zvornik via Serbia and would help to improve the security of energy supplies to the region.
Russian officials said the energy produced could be used for heating and in transportation, the broadcaster reported.
Bosnia, which is divided into two highly autonomous regions - the Serb Republic and the Bosniak-Croat Federation - relies on Russian supplies via Ukraine, Hungary and Serbia to get some 350 million cubic metres of gas that it needs per year.
A European energy regulator has warned the Balkan country - which wants to join the European Union and access financial support for its energy market - that it needs to pass a gas law to comply with the bloc’s energy regulations.
However, the Bosnian Serbs oppose having a national strategy and want instead to pursue their autonomous energy policy. Dodik is nourishing political and economic ties with Russia.
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Armenian government hands natural gas distribution network to Gazprom Armenia
Under an Armenian government decision passed today a natural gas distribution network worth 1.27 billion drams ($2.6 million) will be handed to Armenia’s Russian-owned national gas distribution company Gazprom Armenia for free, Armenian ARKA reported on December 14, 2017.
The gas distribution network was built in the southern Armenian towns of Meghri and Agarak on the border with Iran on a $2 million grant provided by Iran.
In August 2013, the obligations of the customer were assigned to Gazprom Armenia.
«Given the importance of connecting these communities to the natural gas network the government considers it necessary to hand the property of the gas distribution network to the free use by Gazprom Armenia for an indefinite period,» the decision says.
Gazprom Armenia (formerly ArmRosgazprom), established in December 1997, is engaged in the delivery and distribution of Russian natural gas to consumers in Armenia. It is a 100% subsidiary of Russian Gazprom.
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ExxonMobil closes Eni Mozambique deal
IRVING, December 14, 2017 – ExxonMobil has closed a deal struck earlier this year to acquire a 35.7% stake in Eni East Africa and a 25% indirect stake in the Area 4 block offshore Mozambique.
The price tag of the deal was reported earlier this year at USD 2.8 billion.
“ExxonMobil now owns a 35.7% interest in Eni East Africa (to be renamed Mozambique Rovuma Venture), which holds a 70% interest in Area 4, and is co-owned with Eni (35.7%) and CNPC (28.6%),” the super-major said in a statement on Wednesday. “The remaining interests in Area 4 are held by Empresa Nacional de Hidrocarbonetos EP (10%), Kogas (10%) and Galp Energia (10%).”
Eni will remain in charge of upstream operations and the Coral FLNG project, while ExxonMobil will build and operate all future LNG facilities, the statement added.
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Petrofac wins $800m Khazzan gas project
Muscat: Petrofac has been awarded a lump-sum contract worth approximately $800 million by BP for the Phase 2 central processing facility (CPF) at the Khazzan Phase 2 (Ghazeer) gas development in the Sultanate.
This follows the $1.4 billion Phase 1 CPF Khazzan project, awarded to Petrofac in February 2014, which celebrated its first gas generation on September 22, 2017.
The project includes the addition of a third gas train, with the capacity to nominally handle 500 million standard cubic feet of gas per day (mmscfd), which will help drive the increased total production capacity from the CPF to 1,500 mmscfd.
The engineering, procurement, construction and commissioning (EPCC) scope of work also includes liquid and compression trains and associated infrastructure, as well as brownfield work associated with connecting the Phase 1 and 2 facilities.
“Petrofac has executed a large number of projects for BP across many aspects of our business, and we are delighted to support them in the next phase of this pioneering project in Oman,” said Ayman Asfari, Petrofac Group Chief Executive.
“We have a very strong record for project execution in Oman, and as part of this, have delivered significant in-country value. We look forward to continuing to demonstrate our commitment towards a sustainable and long-term presence in the Sultanate through the safe and timely delivery of this project for BP.”
“The successful start of production from Khazzan Phase 1 was a major milestone for BP in 2017. We are now building on this, deepening our partnership with the Sultanate, as we work towards the development of the second phase, and this award to Petrofac will continue the relationship that helped deliver Phase 1,” added Bernard Looney, Chief Executive Upstream at BP.
“We are proud to have been part of the Khazzan journey since the outset of Phase 1. This new award comes shortly after the start of production from the Phase 1 CPF facilities in September. That achievement provides us with a proven delivery model that, coupled with the knowledge gained from the earlier project and the strong support from our contractors, positions us well to deliver a great project for BP and Oman,” said Elie Lahoud, Senior Vice President – Operations – Petrofac.
BP Oman is the lead partner in the Khazzan project with a 60 per cent interest, while Oman Oil Company Exploration and Production holds 40 per cent.
Total's Bulgarian unit plans to start third drilling for oil, gas in Black Sea
Total E&P Bulgaria, a unit of France's oil and gas group Total, said it plans to start its third deepwater drilling in Bulgarian offshore block 1-21 Han Asparuh in the Black Sea.
"The drilling operations are short in time and will be performed in a manner that aims to minimise the impact on the environment. This will be achieved largely through the proper handling and disposal of materials and generated wastes, discharges and emissions," the company said in a statement published on its website last week.
In September Total E&P Bulgaria, announced the start of the second deepwater drilling in Bulgarian offshore block 1-21 Han Asparuh in the Black Sea.
The works on the second drilling will provide additional data for the hydrocarbon potential of the block are expected to be completed at the beginning of 2018, the company said at the time.
The 1-21 Han Asparuh block is located deep offshore in the Bulgarian sector in the western part of the Black Sea and covers an area of 14,220 sq km with water depths up to 2,200 m.
In April, the Bulgarian government said it had extended by 135 days the permit held by Total, Austria’s OMV and Spain’s Repsol to explore for oil and natural gas at the 1-21 Han Asparuh block.
In October 2016, Total said it had discovered oil in the 1-21 Han Asparuh block.
In May 2016, Total, alongside OMV and Repsol, started drilling for oil and gas in the 1-21 Han Asparuh block. Total has a 40% interest in the project, while OMV and Repsol own stakes of 30% each.
In January 2014, the three companies completed a 210-day 3D seismic survey, covering 7,740 sq km. It came after a 2D seismic survey of 3,000 km, which was completed in October 2013. However, in December 2014, the consortium decided to delay drilling at the block due to the slump in global oil prices.
Total won a permit for prospecting and exploration of oil and gas in the 1-21 Han Asparuh block in 2012. Under the terms of the contract, Total committed to invest over 1.0 billion euro ($1.19 billion) in the gas exploration process, while Bulgaria would receive 40 million euro in the form of a bonus payments from the deal, the economy ministry said at the time.
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LUKOIL continues exploration at Block 10, appraisal of Eridu field in Iraq
LUKOIL has signed contracts with Iraqi state owned Oil Exploration Company on the performance of seismic surveys.
These will be held at the earlier discovered Eridu field to comprehensively appraise its geological potential, and also at Block 10's southern and central parts, previously not part of the survey.
The scope of appraisal works at Eridu field includes a 3D seismic survey of 983 square kilometres to update the extension of the field and its geological structure.
At Block 10, 2D seismic acquisition of the southern and central parts is planned to be accomplished over an area of 3,500 linear kilometres to ensure the mapping of targets for prospect drilling.
The approved geological exploration plan for Eridu field envisages the drilling of additional appraisal wells on a mid-term horizon.
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