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Thailand's PTT Exploration and Production (PTTEP) is doubling down on Malaysian oil and gas in an effort to broaden its reach in its native Southeast Asia. PTTEP has agreed to acquire Murphy Oil's Malaysian business for $2.1 billion in an all-cash deal. PTTEP also announced that it was awarded two Malaysian exploration blocks in the Malaysia 2018 bid round. The assets to be purchased produced 48,000 BOE/D net to Murphy last year, of which 62% were liquids, and consisted of proved reserves of 468 Bcf of natural gas and 51 million bbl of liquids. The deal includes five petroleum exploration and production projects--Sabah K, SK309 and SK311, Sabah H, SK314A, and SK405B--in the shallow and deep waters off the Malaysian states of Sarawak and Sabah.
Malaysia's Petronas is Looking Near and Far for Gas and Oil It Adif said one of Petronas' primary Elsewhere in Southeast Asia, said is also exploring new partnerships with goals is to turn Malaysia's large inventory Adif, the company hopes to soon monetize other global operators that offer regional of contingent resources into proved its operated deepwater Kelidang and technical expertise. The company has worked "to cluster project off Brunei, continue The integrated company, whose intensify exploration activities in Malaysia," exploratory work on the recent upstream portfolio consists primarily of and it is seeking to bring more partners onshore Sakakemang discovery in Indonesia, natural gas, wants to both accelerate its into the fold: The country recently and improve recovery from its exploitation of the hydrocarbon and add revised terms in its deepwater production-sharing Yetagun block off Myanmar. "We are January, a month before operator Repsol third-largest LNG seller--continues to quite progressive in terms of attracting announced the discovery, which comes target domestic gas to leverage its control investment, and that has brought with a preliminary estimate of 2 Tcf of the gas value chain all the way in some new plays into the space," in recoverable resources. Petronas also to its petrochemical and LNG liquefaction he said. The company's LNG facilities Adif believes "there is much potential Basin off Myanmar and frontier include its 30-million tonnes/annum within the deep waters of Sabah that areas off East Indonesia, he added.
As Malaysia's largest company, chief revenue generator, and primary energy producer, Petronas has a keen interest to develop hydrocarbons wherever it can find them. This means Petronas is looking within its home country, around Southeast Asia, and to the Americas in an effort to maintain its forecast average yearly production of 1.7 million BOE/D over the next 5 years. It is also exploring new partnerships with other global operators that offer regional and technical expertise. Petronas, whose upstream portfolio consists primarily of natural gas, wants to both accelerate its exploitation of the hydrocarbon and add more oil to the mix. Back home, the integrated company--the world's third-largest LNG seller--continues to target domestic gas to leverage its control of the gas value chain all the way to its petrochemical and LNG liquefaction plants.
PTTEP to Buy Murphy Oil’s Malaysian Business for $2.1 Billion
Matt Zborowski, Technology Editor
Thailand’s PTT Exploration and Production (PTTEP) is doubling down on Malaysian oil and gas in an effort to broaden its reach in its native South-east Asia.
PTTEP has agreed to acquire Murphy Oil’s Malaysian business for $2.1 billion in an all-cash deal. PTTEP also announced that it was awarded two Malaysian exploration blocks in the Malaysia 2018 bid round.
The assets to be purchased produced 48,000 BOE/D net to Murphy last year, of which 62% were liquids, and consisted of proved reserves of 468 Bcf of natural gas and 51 million bbl of liquids. The deal includes five petroleum exploration and production projects—Sabah K, SK309 and SK311, Sabah H, SK314A, and SK405B—in the shallow and deep waters off the Malaysian states of Sarawak and Sabah.
Global Oilfield Services Market Won’t Recover Until 2025
Trent Jacobs, JPT Digital Editor
It has been a tough few years for the world’s oilfield service sector and, according to a new report, the best of times are on hold for a few more.
This is according to Rystad Energy, which says the sector is on pace to capture $920 billion in revenue by 2025. The Norwegian market research firm has highlighted the figure as the high-water mark reached in 2014, a year that ended with crude prices falling by more than 40%.
“This will be the longest slump faced by the oilfield service industry since the 1980s, with about $2.3 trillion in revenues lost along the way,” said Audun Martinsen, Rystad Energy’s head of oilfield service research.
Martinsen continued by noting: “On the bright side, in only 3 years’ time, activity levels will be higher than they were in 2014, although the cost cuts achieved in the sector means spending levels will only be 80% of what was seen in that peak year.”
ExxonMobil, Chevron Target Nearly 2 Million BOE/D in Permian Production
Matt Zborowski, Technology Editor
ExxonMobil and Chevron revealed plans that would result in combined production from the US majors of nearly 2 million BOE/D from the Permian Basin of West Texas and southeastern New Mexico by the mid-2020s.
ExxonMobil revised upward its Permian production outlook by almost 80% to reach 1 million BOE/D by as early as 2024. The operator said its resource base in the basin totals 10 billion BOE.
Chevron expects its output from the basin to rise to 600,000 BOE/D by year-end 2020 before hitting 900,000 BOE/D by yearend 2023. The company said it has added some 7 billion BOE in Permian resources over the last 2 years.
Shale Pioneer: Hard Ceiling On Production Growth Coming
Trent Jacobs, JPT Digital Editor
The central debate today in the US shale business is how long productivity growth will continue. According to one of the most influential voices in the sector, the answer is not much longer.
“I am not particularly optimistic that, over the next 5 years, the industry is going to be able to show the year-over-year improvements in well recoveries that we’ve seen over the past 10 years,” said Mark Papa, chief executive officer of private-equity-backed shale producer Centennial Development Resources.
Papa said the two biggest factors at play are frac hits, or parent-child well interference, and a shrinking inventory of high-quality drilling locations.
Shale CEO on Parent-Child Challenge, Well Declines: We Know
Matt Zborowski, Technology Editor
Much has been made recently about the disparities in production between parent and child wells in US shale basins. The increased attention on the issue is part of broader concern among investors about the ability of operators to maintain high levels of output over the next few years.
However, Doug Suttles, Encana president and chief executive officer, assures that shale executives are acutely aware of the parent-child challenge. His company has been “very public about this for 5 years now,” he said before an audience largely consisting of the investor community at CERAWeek by IHS Markit this week in Houston. He ultimately doesn’t think it’s “a big threat” to the shale sector.
ExxonMobil Makes Huge Gas Discovery Offshore Cyprus
ExxonMobil has made what it says is the world’s third-largest natural gas discovery in 2 years off the coast of Cyprus in the eastern Mediterranean Sea. Based on preliminary interpretation of the well data, the discovery could represent an in-place natural gas resource of up to 8 Tcf.
The Glaucus-1 well, located in Eastern Mediterranean Block 10, encountered a gas-bearing reservoir of approximately 436 ft. The well was safely drilled to a depth of 13,780 ft in 6,769 ft of water.
Industry consultants Wood Mackenzie told Reuters news agency that it estimated recoverable resources of Exxon’s field to be 4.55 Tcf. That compares with its 6.4 Tcf estimate for Calypso, found by Italy’s ENI and France’s Total last year.
Abstract PETRONAS has developed a Floating Liquefied Natural Gas (FLNG) to capitalize and monetize on the availability of the gas resulting from the development of several gas fields in Malaysia. FLNG is a concept where there is an integration of the floating production, storage and offloading unit with LNG production facilities on the deck. It refers to liquefied natural gas (LNG) operations employing technologies designed to enable the development of natural gas resources located offshore. Floating near to an offshore natural gas field, the FLNG facility will be able to produce, liquefy, store and carry out ship-to-ship transfer of LNG at sea before LNG carriers ship it directly to markets. Since everything is carried out at sea, there is no need to construct any jetty, breakwater ar even LNG tank farms. PETRONAS has taken a bold decision to embark on the first of its kind offshore LNG liquefaction facility. FLNG signifies PETRONAS’ technology advancement solution which adds value to marginal and stranded offshore gas resources which otherwise would be uneconomical to be developed, hence becomes a benchmark for the execution of similar-scale FLNG facility. PETRONAS Floating LNG concept was envisaged to monetise stranded gas resources. The two floaters namely PFLNG1 & PFLNG2 for offshore Sarawak and Sabah respectively will increase the country's LNG production capacity by approximately 8% (2.5 MTPA). This paper will highlight the first FLNG developed by PETRONAS; the PETRONAS Floating LNG Satu (PFLNG1). The PFLNG1 is designed based on a new built vessel rated for 1.2 MTPA LNG production capacities. The facility will receive feed gas from an identified gas fields which is operated by PETRONAS through a subsea pipeline at the water depth of about 77 meters. The design is based on a new built vessel with LNG storage capacity of 177,000 m3, condensate storage capacity of 20,000 m3. The design life for both hull and topside is for 20 years without the requirement for dry-docking. The hull was design in the ship-shaped form and adopted relevant marine standards and techical requirements. Earlier, the PFLNG1 was constructed at a shipyard located in South Korea. Upon the completion of the construction phase, the facility was towed to site before it was hooked up to the sea bed using the turret mooring system. The facility will have a weathervaning capability which allows it to rotate 360 degree around the turret to ensure right heading during its operation.