Libya seeks to avoid oil-market disruption as supplies rebound

Libya, the north African country whose crude exports collapsed last year amid protests and political feuding, will seek to revive shipments in a way that avoids oil-market disruption, its governor for OPEC said.

Protesters in the east of the country with Africa’s largest oil reserves reopened two ports at the start of this month, ending a yearlong blockade that helped decimate the nation’s supplies. Brent crude, the global benchmark, slid about 3.3% since the rebels said the terminals would restart.

“Our return to the market will be gradual and in coordination with our fellow member countries,” Samir Kamal, the nation’s governor for the Organization of Petroleum Exporting Countries, said by email yesterday, July 8. Libya will take the same gradual approach toward sales of oil it has stored at the two terminals, he said.

Crude surged last year when the protesters halted four Libyan ports in an attempt to change how the country’s oil wealth is distributed. Two of those terminals resumed earlier this year, and the rebels said at the start of this month that they halted a blockade of Es Sider and Ras Lanuf, the largest and third-biggest. Neither has so far shipped cargoes.

Libya is producing 325,000 bpd of crude as of today, National Oil Corp. spokesman Mohamed Elharari said by phone today from Tripoli. A pipeline from the Sharara oil field resumed, allowing the deposit that can pump 340,000 bpd to restart.

Output will rise toward 1 MMbpd as Es Sider and Ras Lanuf terminals resume exports, according to estimates from Petromatrix GmbH, a Vienna-based consulting firm.

Libya ended force majeure at the ports on July 6, according to National Oil. Operators have been instructed to evaluate their facilities in order to resume operations, Kamal said.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Giftelyon Multi-Sevices Int'l Ltd and services, UK, online.

Total’s 'Disappointment' with Angola LNG adds to output gap

Angola LNG, a $10 billion LNG plant halted in April due to a leak, has proved to be a disappointment for Total.

“The real concern is that we are at least one year late and even much more than that in terms of start of production,” Yves-Louis Darricarrere, head of upstream, said in an interview.

Angola LNG, which produces the super-chilled fuel for spot deliveries to destinations from South Korea to Brazil, is expected to restart in the middle of next year. The plant has experienced halts since production started last June after an 18 month delay caused by several fires and accidents.

Total, with a 13.6% stake, is “missing” about 25,000 boepd in natural gas due to the halt, Darricarrere said. “It’s a disappointment, but at the same time for us it’s marginal.” The French company has sent experts to the site, he said.

The halt adds to output gaps this year for Total at Kashagan in Kazakhstan, where leaky pipelines must be replaced, and the loss of a concession in Abu Dhabi. The company targets increased production over the coming years, a goal that will be helped by the start of production at the Clov field off Angola in June, 2014.

Angola LNG was running at about 50% of planned capacity before the latest incident because the composition of the plant’s associated gas supply required additional equipment, Chevron, the operator and largest shareholder, has said.

The April incident took place during the commissioning and testing phase as part of a ramp up to full LNG production.

Chevron holds 36.4% of the project, with Sonangol EP owning 22.8%. Total, BP and Eni each hold 13.6%, according to Angola LNG’s website.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Giftelyon Multi-Sevices Int'l Ltd and services, UK, online.

Sonde seeks alternatives for Joint Oil block in North Africa

Sonde Resources reported the following operational updates of North Africa.

In March 2014, Sonde retained Taylor-DeJongh to initiate a process to explore and evaluate potential strategic alternatives to enhance shareholder value with regard to the Joint Oil Block. The process has included discussions with in excess of twenty international petroleum entities and financial institutions. Several interested parties have executed confidentiality agreements, met with management and staff and are evaluating the data provided in the virtual data room.

The preparations for drilling the Fisal-1 well have progressed. All long lead materials (casing and drilling support material) have been ordered and initial deliveries have arrived in Sfax, Tunisia (shore base).
 
Preparations are underway to perform the site surveys in anticipation of commencing drilling operations in early Q4 of 2014.

The 3D seismic survey acquired in late 2013 has been processed and initial evaluation of the data confirms the potential nature of the Hadaf structure in Libyan waters. Detailed interpretation work of the processed seismic data is underway.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Giftelyon Multi-Sevices Int'l Ltd and services, UK, online.

Tellus Resources acquires interest in Block 3114 in Madagascar in deal with Caravel Energy

Tellus Resources reported that it has agreed to acquire a 25% interest (with the right to acquire up to an 80% interest) in a drill ready and large scale oil exploration asset, located onshore on the Island of Madagascar, off the south-east coast of Africa.

The vendor of the asset is Caravel Energy. The terms of the transaction are summarised below.
 
The Asset, which comprises approximately 10,000 sq km of onshore acreage, has recently been the subject of a seismic campaign which has identified large scale oil targets together with at least one drill ready prospect. As such, a drilling campaign is planned to commence in the latter part of the year. The acreage the subject of the acquisition has recently been the subject of a seismic campaign which has identified large scale oil targets.As such, a drilling campaign is planned to commence in the latter part of this year.

Under the Sale Agreement the Company has agreed to acquire:
 
CRJ’s 25% shareholding interest in PetroMad being the company which owns a 100% interest in the Bezaha Oil Project concession located in Southern Madagascar – the Asset ; and all of CRJ’s rights and obligations under an agreement entered into with the owner of the remaining 75% interest in PetroMad and under which CRJ is entitled, subject to successful completion of staged work programs, to earn up to an 80% ownership interest in PetroMad.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Giftelyon Multi-Sevices Int'l Ltd and services, UK, online.

Atwood Oceanics receives contract for semisubmersible rig from CNOOC Africa

Atwood Oceanics reported that one of its subsidiaries has been awarded a drilling services contract by CNOOC Africa for the semisubmersible rig Atwood Hunter. The contract will be performed offshore Equatorial Guinea, specifies a day rate of $337,000 for a minimum term of 90 days and includes an option for one additional well.

To the extent the term exceeds 90 days the day rate for days 91 to 180 shall be $330,000.  Any term in excess of 181 days shall have a dayrate of $325,000. The Atwood Hunter is expected to commence the contract mid-August 2014.

In connection with  this contract, an Atwood subsidiary and Guinea Ecuatorial de Petroleos ("GEPetrol") mutually agreed to terminate the parties' previously announced contract for the Atwood Hunter  provided certain conditions are met.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Giftelyon Multi-Sevices Int'l Ltd and services, UK, online.

Unique Hydra unveils the HYDRACraft series

Unique Hydra has received its second order this year for the company' s diving daughtercraft system, the HYDRACraft. Unique Hydra has spent the past twelve months engaging with clients to understand their diving daughtercraft operational and equipment requirements and developing a purpose built vessel which includes a fully integrated dive system.

Diving Daughtercraft systems are used in diving operations where the conventional diving DSV is not able to position itself close enough to an FPSO or offshore platform. The daughtercraft is fitted with surface supplied diving systems capable of supporting Nitrox and/or air diving operations and is assisted by an additional “support craft” that transfers personnel and supplies during the diving operations.

The mother vessel, barge or platform is outfitted with davits for the daughtercraft and support craft as well as support equipment, including the decompression chamber, gas storage and compressors.

Currently, two designs of the purpose designed diving daughtercraft are available, the HYDRACraft 1400 14m 8 man, and the HYDRACraft 1500 15m 10 man. The HYDRACraft design considers features and attributes required for safe and effective diving operations.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Giftelyon Multi-Sevices Int'l Ltd and services, UK, online.