Petroleum : February , 2014 :
INFORMATION AND UPDATES
Alaya Legal presents its fourth issue on Petroleum: Information and Updates to its readers. In our earlier issue we had covered low
concentration oil countries across the globe which have been grouped into categories depending on the quantum of proven ‘petroleum’ reserves
present in such countries. This time our endeavour is to cover the major developments around the globe and in the Republic of India.
Market Updates – Global
Oryx updates oil production plans in Iraq Kurdistan January 27, 2014 Oryx Petroleum Corporation, Calgary, updated its continued exploration and development plans for its Demir Dagh discovery in the Kurdistan Region of Iraq. The Sakson Hilong-10 rig spudded the first well in the Demir Dagh appraisal program (DD-3) in November 2013 and is expected to reach a total depth of 4,115 m and conclude testing and completion in the second quarter. The well is being drilled on the axis of the anticline about 3 km southeast of the DD-2 discovery well and will test the Cretaceous, Jurassic, and Triassic reservoirs.
Legal challenges delay Chevron’s $1 bln Nigeria oil block sales
January 13, 2014
Chevron faces delays in closing sales of oil blocks in Nigeria worth up to $1 billion because of legal disputes involving potential buyers. Chevron is joining competitors ConocoPhillips, Royal Dutch Shell, France’s Total and Italy’s Eni in disposing of stakes in onshore and shallow water offshore fields in the Niger Delta region.
Shell, OMV, Mitsui to drill deepwater well in New Zealand
January 07, 2014
Royal Dutch Shell, Austria’s OMV and Japan’s Mitsui will drill an exploration well off New Zealand’s southeast coast. The Shell-led project would follow a programme by Anadarko Petroleum of the United States to drill two deepwater wildcat wells in New Zealand in a joint venture with Australia’s Origin Energy Limited. Anadarko has already started drilling its first well off the west coast of the North Island.
Gambia strips firms of oil licenses, warns against “speculation”
January 07, 2014
Gambia has stripped three oil firms of their exploration and production licenses, accused them of failing to meet their contractual obligations. West Africa-focused African Petroleum and its partner Buried Hill Energy had lost offshore blocks A1 and A4. Nigeria’s Oranto Petroleum also lost its Lower River onshore block. Gambia’s government believes that the country is sitting on large quantities of oil but it has not produced any yet despite decades of exploration by a number of companies.
New Zealand awards deepwater oil exploration permits to Statoil, Woodside
December 05, 2013
New Zealand has awarded deepwater petroleum exploration permits to Norway’s Statoil and Australia’s Woodside Petroleum Limited. The two companies, along with smaller Singapore-based rival Mont D’Or Petroleum, joined local firms and foreign companies already operating in the country in being granted permits for 10 prospects, half of which are in deepwater basins.
Tanzania outlines new oil and gas production terms
November 04, 2013
Tanzania has introduced new production sharing agreement terms. The model production sharing agreement document, detailed the bonus to be paid by firms to the state on signing a contract, specified capital gains tax obligations and outlined a new royalty structure. East Africa has become one of the world’s richest new oil and gas provinces after a string of discoveries. In Tanzania, several majors such as British Gas (BG) Group, Ophir Energy, Exxon Mobil and Statoil are at work.
Market Updates – Republic of India
Oil Ministry to grant “operational flexibility
November 6, 2013
The Indian government plans to form an empowered group under the Oil Ministry to grant “operational flexibility” in enforcing contracts, and help explorers start producing oil and gas from over 70 discoveries that are mired in contractual disputes.
OVL, Cairn to jointly bid for Sri Lankan oil, gas blocks November 6, 2013 ONGC Videsh Limited (OVL) and Cairn India Limited are likely to bid jointly for oil and gas blocks in Sri Lanka. Sri Lanka is offering 13 offshore exploration blocks in the Cauvery and Mannar basins, located to the North and West of the island nation. OVL wants to hold at least 51 per cent in the consortium it intends to form with Cairn for bidding in the 2nd Licensing Round of Sri Lanka.
TRS demands share of oil & gas revenue from KG-D6 Basin
November 6, 2013
Telangana Rashtra Samithi (TRS) has demanded a share of the revenue from oil and gas resources in KG Basin, potentially complicating the process of bifurcation of Andhra Pradesh.
OVL signs MOU with PDVSA for cooperation in oil field exploration and development
October 10, 2013
Continuing with the inter-company cooperation between OVL, a 100% subsidiary of ONGC, and Venezuelan state giant Petróleos de Venezuela S.A. (PDVSA), a MOU was signed by OVL and PDVSA in Caracas. The MOU encompasses strategic cooperation and participation in the exploration and production of hydrocarbon resources in the oil-rich Faja area of Venezuela. The MOU will facilitate OVL and PDVSA to explore available opportunities through joint collaboration and hence, enhance OVL’s interest in Venezuela. OVL currently has stakes in two producing projects in
Venezuela; Petro-Carabobo and Petro-Indovenezolana with investments of about US$ 341 million.
OVL signed definitive agreements to acquire 12% Participating Interest in Block BC-10, Brazil and awarded two exploration blocks in Myanmar
October 14, 2013
OVL, through its affiliates signed definitive agreements to acquire 12% Participating Interest (PI) in Block BC-10, Campos Basin, Deep Offshore Brazil as part of the sale of 35% share made by Petrobras.
OVL signs MOU with Petrovietnam
November 21, 2013
OVL signed MOU with Petrovietnam (PVN) to promote the joint cooperation in hydrocarbon sector in Vietnam, India and other countries. This MOU is in furtherance to the agreement signed between the OVL and Petrovietnam on 12th October, 2011. Under the MOU Petrovietnam has offered 5 blocks to OVL. OVL would assess these blocks and if these are of interest, it would make a proposal to PetroVietnam.
MOU signed between OVL and Co-ordinating Ministry for Strategic Sectors – Ecuador
December 10, 2013
A MOU was signed between the Co-ordinating Ministry for Strategic Sectors (MICSE) of the Republic of Ecuador and OVL .OVL has been evaluating E&P opportunities in Ecuador for last one year. Latin America is a focus area for OVL. It already has a presence in Brazil, Venezuela and Colombia. These countries contribute about 30% of oil production of OVL. The MOU provides that MICSE would make available to OVL information regarding oil and gas projects in Ecuador, which OVL would evaluate to identify the project(s) of its interest and could propose participation in such project(s) through specific definitive agreements.
OVL temporarily shuts down its Oilfield operations in South Sudan
December 26, 2013
OVL is operating in two producing assets in South Sudan through its Joint Operating Companies, Greater Pioneer Operating Company (GPOC) and SUDD Petroleum Operating Company (SPOC) with Participating Interest (PI) of 25% and 24.125% respectively. GPOC is producing close to 37000 bopd (OVL share 9250 bopd) from Block 1,2,4 and SPOC is producing close to 4600 bopd (OVL share 1100 bopd) from Block 5A . While the partners of OVL in GPOC are China National Petroleum Corporation (CNPC), Petronas and Nilepet, in SPOC OVL has partnership with Petronas and Nilepet. Due to security reasons OVL temporarily shuts down its Oilfield operations in South Sudan.
OVL acquires additional 12% stake in Block BC-10 in Brazil through exercise of pre-emption rights
December 31, 2013
OVL, through its affiliates has acquired an additional 12% Participating Interest (PI) in Block BC-10, a deepwater offshore block in Campos Basin, Brazil taking its total PI in the block to 27%. The operator, Shell now holds the balance 73% PI in the block. OVL had acquired 15 % PI in Block BC-10 in 2006. The other partners in the block were Shell, Operator with 50% PI and Petrobras with 35% PI. OVL and OIL announce the completion of the transaction to acquire interest in the Rovuma Area 1 Offshore Block in Mozambique
January 08, 2014 OVL and Oil India Limited (OIL) have completed the acquisition of 10% PI in the Rovuma Area 1 offshore Block, Mozambique by acquiring 100% shares of Videocon Mozambique Rovuma 1 Limited, the company holding the 10% PI in the Area 1 from Videocon Mauritius Energy Limited. On 25 th June 2013, definitive agreements were signed with Videocon Mauritius Energy Limited to acquire this interest.
ONGC inks MoU with Mitsui for cooperation in pursuing petroleum and natural gas opportunities
January 27, 2014
A MoU has been signed between Indian Maharatna Public Sector Enterprise, ONGC and Japanese conglomerate Mitsui & Co., Limited. The MoU provides for cooperation in Exploration and Production for conventional and unconventional petroleum and natural gas opportunities in India and in third countries. New Oil Findings BP, ConocoPhillips make oil discovery in deepwater gulf December 18, 2013 BP PLC made an oil discovery at its Gila prospect in 4,900 ft of water on Keathley Canyon
Block 93 about 300 miles southwest of New Orleans in the Gulf of Mexico.
Dana makes second North Sea discovery
November 22, 2013
Dana Petroleum has made an oil discovery in the Moray Firth after the drilling of the entirely Dana-operated Liberator exploration well. Using Diamond Offshore Drilling Inc.’s Ocean Nomad drilling rig, Dana drilled the 13/23d-8 well on the Liberator prospect in license P1987.
Tullow, Africa Oil drill fifth northern Kenya oil discovery
November 22, 2013
Tullow Oil PLC and Africa Oil Corp. have reported a fifth oil discovery in northern Kenya where they plan to run six rigs full time for the foreseeable future. The Agete-1 exploratory well on Block 13T has discovered and sampled movable oil with an estimated 100 m of net oil pay in good-quality sandstone reservoirs. Agete-1 is the fifth consecutive oil discovery in
the first of a chain of multiple rift basins on Africa Oil’s acreage in the region.
Statoil makes third Norwegian Sea oil discovery November 11, 2013
Statoil ASA and its partners in PL 348/348B have made an oil discovery 15 km northeast of Njord field in the Norwegian Sea’s Snilehorn prospect. The volume of the discovery ranges 55-100 million bbl of recoverable high-quality light oil.
Delhi High Court stays CCI proceedings against IOCL, HPCL and BPCL
November 22, 2013
The Delhi High Court has stayed the proceedings initiated by Competition Commission of India (CCI) into the alleged anti-competitive practices of IOCL, HPCL and BPCL in relation to pricing of petrol by them on a plea by the oil companies. Justice V K Jain stayed the suo motu proceedings by CCI till January 13, 2014 by when the fair trade regulator as well as the Petroleum and Natural Gas Regulatory Board (PNGRB) have to file their responses on the plea of the oil companies which have contended that CCI does not have the jurisdiction to investigate the issue.
One-house-one-LPG connection norm is fair, rules Madras high court
November 1, 2013
The Madras High Court has held that there is no legal infirmity in oil companies limiting subsidised LPG connections to one per household headed by an adult member of the family. It means a head of a family with houses at different places cannot have more than one LPG connection.
- Norwegian Petroleum Directorate
- U.S. Energy Information Administration
- The International Energy Agency
- Economic Times (India)
- Natural Gas Asia and Europe
- Oil and Gas Journal
- European Commission
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