Month: November 2017

U.S. oil and gas company Anadarko is reportedly set to leave New Zealand, citing persistent low oil prices as one of the reasons.The company has been exploring in New Zealand since 2008, with offshore acreage in the Canterbury, Pegasus, Deepwater Taranaki and New Caledonia Basins.In 2014, Anadarko drilled two exploration wells: one in the Deepwater Taranaki Basin and one in the Canterbury Basin.According to New Zealand’s BusinessDesk news website, Texas-based oil firm has already told its partners Lattice Energy Resources and Discover Exploration of its intention to resign as the operator of the Canterbury Basin.Country head Alan Seay told BusinessDesk: “In this continued low oil price environment we have to make very tough decisions about where we invest capital and frontier areas like New Zealand will always find it hard to compete,” Seay said. “Sadly we’ve made the call we won’t be continuing with the New Zealand program.”To remind, Anadarko last year made a decision to surrender two exploration permits in Pegasus Basin over an area of 7,085 square-kilometers off the Kaikoura and Wellington Coasts, much to the delight of the Green Party which had been campaigning against drilling off Wellington’s south coast.Also, one could recently see that New Zealand is not in Anadarko’s plans, after the company revealed its capital investments budget for 2018. It has set aside $1.1 billion for its deepwater Gulf of Mexico operations.When it comes to international investments, the company will spend $150 million toward its international cash-generating operations in Algeria and Ghana in 2018. These investments will support further drilling in the TEN development area, which is expected to start in early 2018, as well as additional drilling operations in the Jubilee field following the Ghanaian Government’s recent approval of the full-field plan of development.Furthermore, Anadarko will spend $150 million during 2018 as the company advances the Mozambique LNG project. This investment will primarily be used to fund Anadarko’s portion of the costs associated with preparing the site of the future LNG park. All in all, there was not a single mention of New Zealand it the company’s capex plans for the year.Offshore Energy Today Staff

Source: Report: Anadarko leaving New Zealand | Offshore Energy Today

Statoil loss widens in 3QNorwegian oil major Statoil has booked a bigger loss for the third quarter 2017 compared to the one posted a year ago while its revenues and production increased during the period. Statoil on Thursday reported adjusted earnings of $2.3 billion in the third quarter, up from $0.6 billion in the same period in 2016. After tax, Statoil’s adjusted earnings amounted to $0.8 billion in the third quarter of 2017 up from negative $0.3 billion in the same period last year.According to the company, higher prices for both oil and gas, solid operational performance with high production, strong liquids trading and refinery margins contributed to the increase.IFRS net operating income was $1.1 billion in the third quarter compared to $0.7 billion in the same period of 2016. Net operating income was impacted by net impairments charges of $0.8 billion, mainly related to an unconventional onshore asset in North America of $0.9 billion, triggered by lower than expected production.The oil company’s net loss deepened during the third quarter 2017 amounting to $480 million compared to a loss of $432 million in the corresponding period of 2016.Statoil’s revenues increased during the third quarter 2017 totaling $13.6 billion compared to $12.1 billion in the same period last year.In the third quarter 2017, Statoil delivered equity production of 2,045 mboe per day, an increase from 1,805 mboe per day in the same period in 2016. The increase was primarily due to increased flexible gas production on the Norwegian continental shelf due to higher prices, lower turnaround activity, ramp-up of new fields, additional well capacity, and continued strong operational performance. Adjusted for portfolio changes, the underlying production growth was 15% compared to the third quarter last year.“In the quarter, we delivered 15% production growth and 11% reduction in underlying operating cost per barrel. In addition, we see strong contribution from our liquids trading and refining business,” says Eldar Sætre, President and CEO of Statoil.“With an oil price below 52 dollars per barrel, we have generated 3.6 billion dollars in free cash flow so far this year, based on good contributions from all business segments. This has further strengthened our financial position,” said Sætre.The company also said in its report on the Thursday that its organic capex guidance for 2017 was reduced by 1 billion dollars, to around 10 billion dollars. “We are getting more for less,” Sætre said.Offshore Energy Today Staff

Source: Statoil loss widens in 3Q | Offshore Energy Today

Murphy Oil books bigger loss, ups capex guidanceU.S.-based oil company Murphy Oil saw its net loss grow during the third quarter of the year while its revenues increased. The oil company is boosting its capex guidance for the year by $50 million. Murphy on Wednesday posted a net loss from continuing operations of $66 million for the third quarter 2017, compared to $16.2 million in the prior-year period.The company reported an adjusted loss, which excludes both the results of discontinued operations and certain other items that affect comparability of results between periods, of $6 million. The net loss includes the following items: an after-tax foreign exchange loss of $44 million and a loss of $12 million from mark-to-market of open crude oil hedge contracts.Murphy’s revenues increased to $498.3 million during the third quarter of 2017 from $485.5 million in the third quarter 2016.Production in the third quarter 2017 averaged 154 thousand barrels of oil equivalent per day (Mboepd). According to the company, production was negatively affected by approximately 5,100 barrels of oil equivalent per day (boepd) by temporary factors.The offshore business produced over 68 Mboepd for the third quarter, with 73 percent liquids. Third quarter 2017 operating expenses were $9.07 per boe.In Malaysia, production in the quarter averaged over 49 Mboepd, with 66 percent liquids. In the Gulf of Mexico and East Coast Canada, production averaged over 19 Mboepd, with 90 percent liquids. This includes the addition of two wells acquired during the third quarter at the Clipper Field (Block GC 300), which are flowing into Murphy’s Front Runner facility at a current rate of approximately 4,600 net boepd.

Source: Murphy Oil books bigger loss, ups capex guidance | Offshore Energy Today