Dutch natural gas company Gasunie and tanker storage firm Vopak will go ahead with a 800-million-euro (around 1.12 billion U.S. dollars) investment to build the country's first liquefied gas terminal, Dutch media reported Wednesday.
The two companies announced the decision on Tuesday. The terminal will be located in Rotterdam, the biggest port in Europe. The construction of the terminal means that natural gas can be imported by ships in the future.
Currently, natural gas can only be transported to the Netherlands via pipeline from Norway and Russia.
The terminal, which is due to be operational in 2011, will make it possible to import gas from North Africa and the Middle East.
Thursday, December 20, 2007
Wednesday, December 19, 2007
1 Barrel of Oil Equals 6,000 Cubic Feet of Gas
TransGlobe Energy Corporation (TSX: TGL) (AMEX: TGA) ("TransGlobe" or the "Company") is announcing a mid-quarter production and operating update. All dollar values are expressed in United States dollars unless otherwise stated. Conversion of natural gas to oil is made on the basis of 6,000 cubic feet of natural gas being equivalent to one barrel of crude oil.
Production Summary
The Company's total production is expected to average approximately 7,000 Boepd during the fourth quarter of 2007. This represents a 34% increase over the third quarter of 2007 due to the addition of the West Gharib producing assets in Egypt.
Dated Brent oil prices were very strong averaging $82.50 per barrel in October and $92.61 during November, averaging 17% higher than the third quarter of 2007. North American natural gas prices showed continued weakness, averaging approximately C$6.00/Mcf during October/November. TransGlobe's production is 85% oil and natural gas liquids and 15% natural gas, mitigating the Company's sensitivity to gas pricing.
Production Summary
The Company's total production is expected to average approximately 7,000 Boepd during the fourth quarter of 2007. This represents a 34% increase over the third quarter of 2007 due to the addition of the West Gharib producing assets in Egypt.
Dated Brent oil prices were very strong averaging $82.50 per barrel in October and $92.61 during November, averaging 17% higher than the third quarter of 2007. North American natural gas prices showed continued weakness, averaging approximately C$6.00/Mcf during October/November. TransGlobe's production is 85% oil and natural gas liquids and 15% natural gas, mitigating the Company's sensitivity to gas pricing.
Tuesday, December 18, 2007
Chevron Natural Gas to Grow in Thailand
Chevron Thailand Exploration and Production, Ltd. (Chevron) and its co-concessionaires today signed a Gas Sales Agreement (GSA) with PTT Public Company Limited (PTT) for blocks 10-13 in the Gulf of Thailand. The agreement is expected to boost natural gas supplies from these blocks by 500 million cubic feet of natural gas per day (mmcf/d) or from a daily contract quantity of 740 million cubic feet mmcf/d in 2007 to 1,240 mmcf/d from 2012.
The offshore blocks represent nearly 50 percent of Chevron's current operating areas in the Pattani Basin and include Erawan, Satun, Funan, Baanpot, Jakrawan, Plamuk, Yala, Pla Daeng, Trat and Platong operating areas in the Gulf of Thailand. Chevron has working interests in the operating areas within these blocks ranging from 60 percent to 80 percent.
The signing in Bangkok was presided over by His Excellency Dr. Kurujit Nakornthap, Deputy Permanent Secretary and included Tara Tiradnakorn, president of Chevron Thailand Exploration and Production, Ltd., Prasert Bunsunpun, president of PTT, Yoshiyuki Kagawa, president and CEO of Mitsui Oil Exploration Ltd. (MOECO), and Maroot Mrigadat president of PTT Exploration and Production Public Company Limited. (PTTEP).
Speaking at the signing ceremony, President of Chevron Thailand Exploration and Production, Khun Tara Tiradnakorn, said: "Today's signing builds on our 45-year relationship between Chevron and the Kingdom of Thailand in working together to deliver clean, competitive energy supplies to fuel the country's growing economy. We are extremely proud to have been a long term partner with the Kingdom and look forward to continuing to strengthen this relationship well into the next decade."
"This agreement paves the way for Chevron and its partners to boost production from the Gulf of Thailand and to work together to provide reliable natural gas supplies for use mainly in power generation but also in the industrial and transportation sectors and the petrochemical industry," said Tiradnakorn.
"Natural gas is one of the fastest growing segments of Chevron's portfolio," said Managing Director and CEO of Chevron Asia South Ltd., Steve Green. Adding that, "Chevron's natural gas production is currently used to produce approximately one third of Thailand's total electricity demand and this is expected to increase to 40 percent once peak production is achieved from 2012."
The main source of this increased supply is a planned 330 mmcf/d expansion of the Platong field, including a new central processing platform (CPP), as well as an additional 170 mmcf/d from existing platforms.
This agreement follows the recently announced production period extension for blocks 10-13 for an additional ten years, from 2012 to 2022. Chevron's co- concessionaires in the blocks include MOECO and PTTEP.
Chevron operates more than 180 platforms in the Gulf of Thailand with 2006 total average daily production of more than 144,000 barrels of oil and condensate (73,000 net) and 1.6 billion gross cubic feet of gas (856 million net). Historically, the company and its joint venture partners have invested more than 12 billion US dollars in Thailand's oil and gas sector and paid the cumulative royalty of nearly 3.5 billion US dollars (1981 - 2006).
Chevron Corporation is one of the world's leading integrated energy companies. We have approximately 58,000 employees, and our subsidiaries conduct business across the entire energy spectrum - exploring for, producing and transporting crude oil and natural gas; refining, marketing and distributing fuels and other energy products and services; manufacturing and selling petrochemical products; generating power; and developing and commercializing the energy resources of the future, including biofuels and other renewables. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.
The offshore blocks represent nearly 50 percent of Chevron's current operating areas in the Pattani Basin and include Erawan, Satun, Funan, Baanpot, Jakrawan, Plamuk, Yala, Pla Daeng, Trat and Platong operating areas in the Gulf of Thailand. Chevron has working interests in the operating areas within these blocks ranging from 60 percent to 80 percent.
The signing in Bangkok was presided over by His Excellency Dr. Kurujit Nakornthap, Deputy Permanent Secretary and included Tara Tiradnakorn, president of Chevron Thailand Exploration and Production, Ltd., Prasert Bunsunpun, president of PTT, Yoshiyuki Kagawa, president and CEO of Mitsui Oil Exploration Ltd. (MOECO), and Maroot Mrigadat president of PTT Exploration and Production Public Company Limited. (PTTEP).
Speaking at the signing ceremony, President of Chevron Thailand Exploration and Production, Khun Tara Tiradnakorn, said: "Today's signing builds on our 45-year relationship between Chevron and the Kingdom of Thailand in working together to deliver clean, competitive energy supplies to fuel the country's growing economy. We are extremely proud to have been a long term partner with the Kingdom and look forward to continuing to strengthen this relationship well into the next decade."
"This agreement paves the way for Chevron and its partners to boost production from the Gulf of Thailand and to work together to provide reliable natural gas supplies for use mainly in power generation but also in the industrial and transportation sectors and the petrochemical industry," said Tiradnakorn.
"Natural gas is one of the fastest growing segments of Chevron's portfolio," said Managing Director and CEO of Chevron Asia South Ltd., Steve Green. Adding that, "Chevron's natural gas production is currently used to produce approximately one third of Thailand's total electricity demand and this is expected to increase to 40 percent once peak production is achieved from 2012."
The main source of this increased supply is a planned 330 mmcf/d expansion of the Platong field, including a new central processing platform (CPP), as well as an additional 170 mmcf/d from existing platforms.
This agreement follows the recently announced production period extension for blocks 10-13 for an additional ten years, from 2012 to 2022. Chevron's co- concessionaires in the blocks include MOECO and PTTEP.
Chevron operates more than 180 platforms in the Gulf of Thailand with 2006 total average daily production of more than 144,000 barrels of oil and condensate (73,000 net) and 1.6 billion gross cubic feet of gas (856 million net). Historically, the company and its joint venture partners have invested more than 12 billion US dollars in Thailand's oil and gas sector and paid the cumulative royalty of nearly 3.5 billion US dollars (1981 - 2006).
Chevron Corporation is one of the world's leading integrated energy companies. We have approximately 58,000 employees, and our subsidiaries conduct business across the entire energy spectrum - exploring for, producing and transporting crude oil and natural gas; refining, marketing and distributing fuels and other energy products and services; manufacturing and selling petrochemical products; generating power; and developing and commercializing the energy resources of the future, including biofuels and other renewables. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.
Monday, December 17, 2007
European Natural Gas Providers - Gazprom & Sonatrach
A natural-gas cooperation pact between Algeria’s Sonatrach energy group and Russia’s gazprom has lapsed and will not be renewed for the time being as a result of diverging views on strategy adopted, of late, by the two sides
In remarks made to the press in Algiers, Sonatrach’s CEO Mohamed Meziane said that a 2006 memorandum of understanding, Sonatrach signed with Russia's Gazprom OAO, had resulted in "nothing concrete" and ended a few months ago.
The lapse of the pact could calm fears in Europe that two of its largest natural gas suppliers could collaborate to drive prices higher.
In the interview, Mohamed Meziane was quoted as saying that the agreement was not about manipulating prices stressing that Sonatrach had opted to shift its LNG strategy in view of the latest developments notably on the European market.
Instead, he told reporters he had hoped the accord would lead to bilateral cooperation on liquefied natural gas.
Representatives from Gazprom in Moscow later confirmed the termination of the Algerian-Russian natural gas cooperation pact saying the two sides have, now, differing approaches on the matter.
In remarks made to the press in Algiers, Sonatrach’s CEO Mohamed Meziane said that a 2006 memorandum of understanding, Sonatrach signed with Russia's Gazprom OAO, had resulted in "nothing concrete" and ended a few months ago.
The lapse of the pact could calm fears in Europe that two of its largest natural gas suppliers could collaborate to drive prices higher.
In the interview, Mohamed Meziane was quoted as saying that the agreement was not about manipulating prices stressing that Sonatrach had opted to shift its LNG strategy in view of the latest developments notably on the European market.
Instead, he told reporters he had hoped the accord would lead to bilateral cooperation on liquefied natural gas.
Representatives from Gazprom in Moscow later confirmed the termination of the Algerian-Russian natural gas cooperation pact saying the two sides have, now, differing approaches on the matter.
Sunday, December 16, 2007
Anadarko Snake Drilling in the Rocky Mountains
Technological advances and Americans' hearty appetite for natural gas have given Anadarko Petroleum Corp. the opportunity to break new ground — literally and figuratively — in this remote, rugged region of the Rocky Mountains.
On a cliff several hundred feet above the White River, Texas-based Anadarko is drilling 17 wells from a single location — a dozen more than it's drilled from a single site in the past.
Rather than spread the wells across the landscape, they'll be concentrated in a relatively small area. The ultimate goal is to snake the drill bit thousands of feet into the earth, tapping natural-gas supplies beneath the river.
"The driving factor is being able to get under the river," said Jordan Hixson, who supervises Anadarko's production operations in northeastern Utah. "We can't get to it drilling conventional, vertical wells."
By using increasingly sophisticated — and more expensive — drilling methods and equipment, Anadarko and others are expanding their presence but reducing their "environmental footprint" throughout the Rockies and elsewhere. They're doing so primarily by consolidating wells to groups of 17, 22 and even larger combinations, then drilling in a variety of directions to reach reservoirs — some previously inaccessible.
In Utah, where Anadarko plans to go from 1,200 to 3,500 wells, the company is targeting 24-well combos next year. Its 17-well site occupies about 7 acres; a single-well pad is typically 2 to 2 1/2 acres.
Royal Dutch Shell PLC, Williams Cos. and others are expanding their use of the practice in Wyoming, Colorado, New Mexico and other states.
On a cliff several hundred feet above the White River, Texas-based Anadarko is drilling 17 wells from a single location — a dozen more than it's drilled from a single site in the past.
Rather than spread the wells across the landscape, they'll be concentrated in a relatively small area. The ultimate goal is to snake the drill bit thousands of feet into the earth, tapping natural-gas supplies beneath the river.
"The driving factor is being able to get under the river," said Jordan Hixson, who supervises Anadarko's production operations in northeastern Utah. "We can't get to it drilling conventional, vertical wells."
By using increasingly sophisticated — and more expensive — drilling methods and equipment, Anadarko and others are expanding their presence but reducing their "environmental footprint" throughout the Rockies and elsewhere. They're doing so primarily by consolidating wells to groups of 17, 22 and even larger combinations, then drilling in a variety of directions to reach reservoirs — some previously inaccessible.
In Utah, where Anadarko plans to go from 1,200 to 3,500 wells, the company is targeting 24-well combos next year. Its 17-well site occupies about 7 acres; a single-well pad is typically 2 to 2 1/2 acres.
Royal Dutch Shell PLC, Williams Cos. and others are expanding their use of the practice in Wyoming, Colorado, New Mexico and other states.
Saturday, December 15, 2007
Canadian Natural Gas Down - Oil Drill Up for 2008
Natural gas producers and drillers, whose field activity plummeted this year probably won‘t be seeing much relief in 2008, while action in the oilsands is expected to intensify thanks to record-high crude oil prices.
The bottoming out of North American natural gas markets coupled with the soaring loonie made for an “unpleasant and difficult‘‘ year, said Don Herring, president of the Canadian Association of Oilwell Drilling Contractors, adding that in 2008 “the story continues to worsen.‘‘
Herring‘s group predicts a huge in drilling in 2008. The industry drilled 6,000 fewer wells this year than in did in 2006 and next year it expects to see that figure by about another 2,560 _ a 38 per cent within two years.
The Petroleum Services Association of Canada also released dismal predictions for 2008. That group forecasts drilling to go down by 17 per cent between 2007 and 2008.
Natural gas prices hit record highs in the fall of 2005, a particularly bad hurricane season for the U.S. Gulf Coast, which hosts a number of major gaswells and gathering pipelines. But since then, North America has experienced two warm winters and one tame hurricane season, leading to a big supply surplus.
In addition, the expansion of liquefied natural gas projects has d a global market for LNG, which would freeze and liquefy gas produced in Russia, the Middle East and South America and ship it by tanker to North American markets, where it would be regassified and used to boost supplies to consumers, businesses and power plants.
The average price of natural gas in North America was about $6.50 per thousand cubic feet this year.
“A large number of potential wells are uneconomic at that price. Really to make gas economic again in Canada, we need prices north of $8.‘‘ said PSAC president Roger Soucy.
“There‘s a lot of gas in North America right now as a result of some warm winters and we don‘t expect that we‘re going to come out of this heating season next March with a whole lot changed.‘‘
It has been a different story in Alberta‘s oilsands where businesses there have been reaping the benefits of record-high crude oil prices. Oil started off the year at around the US$60 a barrel mark and came close to US$100 before losing ground on concerns about the impact a U.S. recession would have on global oil demand.
A number of Canadian energy giants _ like EnCana Corp. (TSX:ECA), Petro-Canada (TSX:PCA) and Husky Energy Inc.(TSX:HSE) _ have outlined plans to expand their oilsands operations in their 2008 capital spending plans.
International producers have also been looking to increase their stake in the vast Athabasca oilsands in northern Alberta, which are believed to contain 175 billion barrels of oil _ second only to Saudi Arabia‘s reserves.
At the beginning of the year, EnCana inked a $15-billion deal with Houston-based giant ConocoPhillips. Under that deal, EnCana would gain 50 per cent of two ConocoPhillips (NYSE:COP) refineries while the U.S. company would have a half stake in EnCana‘s Foster Creek and Christina Lake oilsands projects.
Earlier this month Husky Energy reached a similar deal with Britain‘s BP Plc worth $5.5 billion. Each company gets a 50 per cent stake in Husky‘s Sunrise oilsands project and BP‘s Toledo refinery.
State-owned players like Norway‘s Statoil, China‘s Sinopec and France‘s Total have bought into the oilsands and Japanese, Korean and Italian players are thought to be next.
The bottoming out of North American natural gas markets coupled with the soaring loonie made for an “unpleasant and difficult‘‘ year, said Don Herring, president of the Canadian Association of Oilwell Drilling Contractors, adding that in 2008 “the story continues to worsen.‘‘
Herring‘s group predicts a huge in drilling in 2008. The industry drilled 6,000 fewer wells this year than in did in 2006 and next year it expects to see that figure by about another 2,560 _ a 38 per cent within two years.
The Petroleum Services Association of Canada also released dismal predictions for 2008. That group forecasts drilling to go down by 17 per cent between 2007 and 2008.
Natural gas prices hit record highs in the fall of 2005, a particularly bad hurricane season for the U.S. Gulf Coast, which hosts a number of major gaswells and gathering pipelines. But since then, North America has experienced two warm winters and one tame hurricane season, leading to a big supply surplus.
In addition, the expansion of liquefied natural gas projects has d a global market for LNG, which would freeze and liquefy gas produced in Russia, the Middle East and South America and ship it by tanker to North American markets, where it would be regassified and used to boost supplies to consumers, businesses and power plants.
The average price of natural gas in North America was about $6.50 per thousand cubic feet this year.
“A large number of potential wells are uneconomic at that price. Really to make gas economic again in Canada, we need prices north of $8.‘‘ said PSAC president Roger Soucy.
“There‘s a lot of gas in North America right now as a result of some warm winters and we don‘t expect that we‘re going to come out of this heating season next March with a whole lot changed.‘‘
It has been a different story in Alberta‘s oilsands where businesses there have been reaping the benefits of record-high crude oil prices. Oil started off the year at around the US$60 a barrel mark and came close to US$100 before losing ground on concerns about the impact a U.S. recession would have on global oil demand.
A number of Canadian energy giants _ like EnCana Corp. (TSX:ECA), Petro-Canada (TSX:PCA) and Husky Energy Inc.(TSX:HSE) _ have outlined plans to expand their oilsands operations in their 2008 capital spending plans.
International producers have also been looking to increase their stake in the vast Athabasca oilsands in northern Alberta, which are believed to contain 175 billion barrels of oil _ second only to Saudi Arabia‘s reserves.
At the beginning of the year, EnCana inked a $15-billion deal with Houston-based giant ConocoPhillips. Under that deal, EnCana would gain 50 per cent of two ConocoPhillips (NYSE:COP) refineries while the U.S. company would have a half stake in EnCana‘s Foster Creek and Christina Lake oilsands projects.
Earlier this month Husky Energy reached a similar deal with Britain‘s BP Plc worth $5.5 billion. Each company gets a 50 per cent stake in Husky‘s Sunrise oilsands project and BP‘s Toledo refinery.
State-owned players like Norway‘s Statoil, China‘s Sinopec and France‘s Total have bought into the oilsands and Japanese, Korean and Italian players are thought to be next.
Friday, December 14, 2007
Occidental Wins Libya Gas Exploration Contract
Libya Wednesday awarded two gas exploration contracts to U.S. fuel giant Occidental Petroleum (OXY) and Germany's RWE (RWEOY), according to Tripoli's National Oil Corporation.
Occidental was granted four exploration blocks in the Sirte basin around 600 kilometres east of the capital, comprising a total area of around 5,000 square kilometres.
RWE was awarded an exploration zone of four blocks and spanning 10,289 square kilometres in the Berka region near Benghazi, around 1,000 kilometres east of Tripoli.
Sunday, Libya awarded four potentially lucrative gas contracts to Shell (RDSB) , Gazprom (GAZP.RS), Sonatrach and Poland's PGNIG -- the first ever given to foreign firms.
A total of 35 companies had been pre-selected to bid for the dozen contracts to explore 41 gas blocks in the Mediterranean. The blocks cover a total of 72, 500 square kilometres, an area about the size of Scotland.
It was the first time Libya invited tenders for natural gas exploration. Six further contracts have yet to be awarded.
OPEC member Libya is the African continent's second-largest oil producer at 1.7 million barrels per day. It also has natural gas reserves estimated at 1,314 billion cubic metres.
Occidental was granted four exploration blocks in the Sirte basin around 600 kilometres east of the capital, comprising a total area of around 5,000 square kilometres.
RWE was awarded an exploration zone of four blocks and spanning 10,289 square kilometres in the Berka region near Benghazi, around 1,000 kilometres east of Tripoli.
Sunday, Libya awarded four potentially lucrative gas contracts to Shell (RDSB) , Gazprom (GAZP.RS), Sonatrach and Poland's PGNIG -- the first ever given to foreign firms.
A total of 35 companies had been pre-selected to bid for the dozen contracts to explore 41 gas blocks in the Mediterranean. The blocks cover a total of 72, 500 square kilometres, an area about the size of Scotland.
It was the first time Libya invited tenders for natural gas exploration. Six further contracts have yet to be awarded.
OPEC member Libya is the African continent's second-largest oil producer at 1.7 million barrels per day. It also has natural gas reserves estimated at 1,314 billion cubic metres.
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