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LONDON : Intertek Completes Calibration of PNG Pipeline

LONDON — Intertek, a quality solutions provider to industries worldwide, has completed calibration services for Oil Search Limited (OSL) on its Papua New Guinea export pipeline in a contract worth £600,000 (2.8 million PGK/US $1 million). The project saw Intertek calibrate pipe provers to support the operator in maintaining the high accuracy of its measurement and ensuring the correct metering of hydrocarbons prior to export. Raymond Pirie, Vice President of Intertek’s global Exploration and Production business line, said: “Oil and gas companies need measurement traceability to determine the accuracy of their equipment. If companies don’t perform regular calibration, the financial implications can be considerable as there is no way to prove what quantities are being exported. This is also an essential element for hydrocarbon allocation.” “Intertek calibrated the provers at the Central Processing Facility in the Southern Highlands Province and the Kumul Marine Terminal in the Papua Gulf for OSL,” Pirie continued. “We utilized equipment and expertise from our Aberdeen operation, overcoming many logistical challenges to access the more remote areas of the country.” The crude oil pipeline is 170 km long and carries hydrocarbon from the Central Processing Facility at Kutubu to the Kumul Marine Terminal. Calibration determined the volume of the pipe provers used to verify the metering of crude oil from the Central Processing Facility, which is sent to the Kumul Terminal for export. Daniel Wood, Senior Projects Engineer at Oil Search Limited, said: “Intertek provided an effectively delivered calibration service. Their site technicians were flexible in trying conditions and their professionalism was a credit to the organisation and the people involved. Their work […]

Sanctioned Rosneft’s Norway work goes ahead with Statoil

Aug 18 (Reuters) – Kremlin-controlled Rosneft said it is working with Norway’s Statoil to search for oil and gas off Norway, partnering a Western company despite sanctions. Rosneft and its head Igor Sechin were sanctioned by the West over Moscow’s involvement in Ukraine. The European Union banned equipment and technology exports for new projects in deep water, Arctic or shale oil for one year, a measure with limited effect so far but more damaging if extended for the longer term. Norway, not a member of the EU, has joined the sanctions, which are not designed to halt joint projects but rather aim to starve Rosneft of foreign financing and access to modern technology. A subsidiary of sanctions-hit Rosneft won a 20 percent participating interest in four fields within the Norwegian continental shelf in the Barents Sea during a licensing round last year. Rosneft said that the companies expect to analyse the drilling results up until the end of this year. The Arctic is seen as a leading source for future oil and gas production. Rosneft has also secured deals to jointly work with ExxonMobil, ENI and Statoil to develop Russian sections of the Arctic shelf. “The start of these exploration operations marks an important milestone in developing the cooperation between Rosneft and Statoil,” Rosneft said in a statement on Monday. Earlier this month ExxonMobil began drilling in Russia’s Arctic as part of the project with Rosneft Rosneft also has an agreement with Norway’s North Atlantic Drilling to drill for oil in Russian offshore Arctic.

BHP applies to export Eagle Ford condensate

San Antonio — Houston-based BHP Billiton Petroleum hopes to export the light oil known as condensate from the Eagle Ford Shale. President Rod Skaufel said this week in San Antonio that the company is among those applying for an export permit with the U.S. Commerce Department. Eagle Ford operator Pioneer Natural Resources Co. and the midstream company Enterprise Products Partners already have obtained the permission to export the condensate, and Enterprise shipped the first 400,000 barrels to Asia in late July. Crude oil exports have been banned since 1975, but the federal government opened an avenue for export in June when it ruled that condensate could be exported with minimum processing through a distillation tower. BHP is the second-largest producer in the Eagle Ford and makes around 130,000 barrels of crude oil and other liquids daily. Much of the company’s best acreage in its Black Hawk Field in DeWitt County is in what the industry calls the “sweet spot” — a place with both prolific crude and condensate production. “Clearly there’s a limited amount of capacity that the refiners can take of these ultralight condensates,” said Skaufel, following a speech at a World Oil breakfast event at the St. Anthony Hotel downtown. “We have applied to export our condensate, as I’m sure other Eagle Ford operators have done.” Condensate is an ultralight oil that condenses from gas to liquid when it reaches the surface. It’s clear and resembles lighter fluid more than black crude oil. Skaufel said that not all of the company’s condensate would be eligible for export. While most of the condensate goes through the company’s South Texas processing plants, some of it […]

PetroChina Reviews Multi-Billion-Dollar LNG Push

China’s biggest energy firm PetroChina is reviewing its multi-billion-dollar push to produce liquefied natural gas (LNG) to fuel trucks and ships in place of diesel, shutting two loss-making gas liquefaction plants, sources said. PetroChina unit Kunlun Energy Co Ltd closed the two major plants in the past month, wrongfooted by rising costs for gas and China’s slower growth rate that has cooled demand, two sources with direct knowledge of the situation said. Seen just a year ago as a fast-growing profit engine, the firm is now reviewing investment in the niche business that chills gas into liquid form, sourcing the gas from small producing fields or from pipelines tapping large inland basins, they said. LNG is increasingly being seen as a potential transport fuel, and can nearly treble a vehicle’s driving range over rival compressed natural gas (CNG). Royal Dutch Shell last year agreed to run LNG fueling lanes at up to 100 major truck stops along U.S. interstate highways. LNG is cleaner and nearly a third cheaper than diesel, China’s main transport fuel. Oil firms had an ambitious goal back in 2011 to replace 10 percent of automotive diesel consumption with gas by 2015, industry officials have said. Led by the private sector, China has built dozens of small-scale onshore gas liquefaction facilities since 2001 to tap marginal gas fields located off the national pipeline grid, filling a supply gap as demand for lower-carbon producing LNG surged. Kunlun, a relative latecomer, emerged as a leader of the business, having spent billions of dollars on a dozen LNG plants, mainly in the country’s west and north, and building over 600 gas refueling stations. The company separately operates two multi-billion-dollar LNG import terminals on China’s east coast. It also helped put nearly […]


US oil and gas company Apache Corp has said that it has made its first oil discovery in Australia’s Canning basin, off the western coast, which could turn out to be the country’s biggest find in decades. Drilling of oil well Phoenix South-1 has confirmed at least four discrete oil columns ranging in thickness between 26 to 46 metres at a depth of 4,160-4,500 metres. Apache said in a statement. Analysis of six light oil samples has indicated a productive oil reservoir with preliminary estimates of about 300 million barrels of oil in place. The Phoenix South-1 well is located in permit WA-435-P, offshore Western Australia, 180 km north of Port Hedland. Apache is the operator of the permit WA-435-P as well as its adjacent WA-437-P permit with a 40-per cent interest. Other partners in the venture include Perth-based Carnarvon Petroleum and Finder Exploration holding 20-per cent stake each and Japanese petroleum company JX Nippon Oil also with a 20-per cent interest. Additionally, Apache has exercised its option of acquiring a 40-per cent ownership and operatorship of two adjacent permits WA-436-P and WA-438-P.  The four permits combined cover a total area of approximately 20,000 Permit WA-437-P includes highly promising Roc prospect on, besides other large unexplored rock formations. Thomas Voytovich, Apache’s executive vice president and chief operating officer said, ”Although evaluation is at an early stage, Phoenix South-1 is an exciting result. The oil and reservoir quality we have seen point to a commercial discovery.” ”If these results are borne out by further appraisal drilling, Phoenix South […]

Cairn says Rajasthan block holds 1-3 Tcf of gas reserves

After oil, Cairn India’s prolific Rajasthan block holds significant natural gas reserves, estimated at 1-3 Trillion cubic feet (Tcf), over half of which can be produced. Cairn has so far made 36 discoveries in the Rajasthan block, including the biggest onland oil field of Mangala. It made a significant gas discovery in Raageshwari find. Recent exploration drilling and the proximity of the Raageshwari deep gas field indicates the presence of a larger multi-Tcf gas resource base, comprises Raag Deep, Guda Deep and Guda South structures. “RDG (Raageshwari Deep Gas) field is estimated to hold 1-3 Tcf of gas in-place with estimated recovery factor of over 50 per cent,” the company said in its latest corporate presentation. Cairn currently sells 8-9 million standard cubic feet per day (mmcfd) of gas from the Raageshwari Deep gas field, which it plans to more than double to 22 mmcfd by the end of the current fiscal and take it to 90 mmscfd by FY16. “Considering the significant gas volume potential in the block, approvals are sought to lay a 30-inch pipeline to connect to the existing gas grid in Gujarat,” it said. In all, 180-km of pipeline is proposed to be laid. Recently speaking to analysts Cairn had said, “We are really excited that gas is likely to be around 15-20 per cent of the resource base currently being drilled.” The company is currently testing an important offset well to the Raageshwari field and have an additional six well programme of exploration appraisals to drilling and testing over the remainder of the […]

Reliance Industries row: Oil Ministry rebukes ONGC for making ‘frivolous allegations’ against govt

Rebuking ONGC for making “frivolous allegations” against the government, the Petroleum Ministry has told the Delhi High Court that the state-owned firm woke up from slumber to allege that its gas may be flowing out of its wells into those of Mukesh Ambani’s Reliance Industries (RIL)’ KG-D6 fields. Oil & Natural Gas Corp (ONGC) had on May 15 filed a petition in the Delhi High Court alleging that Reliance Industries may have drawn natural gas worth thousands of crores of rupees from its fields that sit next to Mukesh Ambani-run firm’s KG-D6 block Krishna Godavari basin. It made the Government of India as well as Oil Ministry’s technical arm DGH respondents alleging they didn’t do enough to protect its right. The Ministry in a counter affidavit filed last week stated that ONGC “never raised any issue on connectivity of reservoirs/channels” ever since it was granted mining lease of the Godavari PML Block (G-4) in 2008 and even when RIL started production from KG-D6 in April 2009. “The petitioner (ONGC) woke up from slumber only in July 2013, when he requested the government to provide the G&G (Geological and Geophysical) data that too to analyse the continuity of the pool,” it said. The Ministry sought rejection of the petition on the ground that ONGC “was never vigilant and mindful of rights” and “cannot now turn around and make frivolous allegations against the Government of India.” It said ONGC had prayed for appointment of an independent agency to establish continuity of reservoir across between its G-4 and KG-DWN-98/2 blocks and RIL’s KG-DWN-98/3 or KG-D6 block. The writ petition of ONGC has become “infructuous pursuant to the appointment […]

Indian Oil to Hike Processing of Cheaper Crude to 30 Per Cent by 2017-18

New Delhi: Indian Oil Corp (IOC), the country’s largest oil firm, plans to increase processing of cheaper crude oil varieties to 30 per cent by 2017-18 as part of its efforts to improve margins. IOC, which owns 30 per cent of the nation’s oil refining capacity, turned 54.65 million tonnes of crude oil into fuel in 2013-14. Of the crude oil processed, 16.1 per cent was heavy and high TAN (total acid number) crude. Heavy crudes, like the one produced in Latin America, are cheaper than most of the varieties available from the Middle-East as they have high concentration of sulphur and several metals, particularly nickel and vanadium, which require higher grade refineries for processing. Same goes for high acid crudes or high TAN crudes. “The Corporation sees optimisation of refinery operations as a major strategy for margin protection and enhancement. Since crude oil cost constitutes as high as 95 per cent of the input cost, reducing cost of crude oil has been a priority area,” IOC said in its latest annual report. In pursuit of this plan, IOC has been enhancing capabilities of its refineries to process cheaper crude varieties as well as initiated action to provide optimum crude mix to refineries. “During 2013-14, the Corporation’s refineries processed 16.1 per cent heavy and high TAN crudes vis-a-vis 11.5 per cent in 2012-13. Plans are afoot to raise this proportion to 20 per cent by 2015-16, and 30 percent by 2017-18,” it said. To leverage the capability of processing tougher crudes, high sulphur crude has also increased from 44.3 per cent in 2009-10 to […]

GAIL Issues Tenders For LNG Ships

GAIL India Ltd has issued a tender to hire nine ships to transport liquefied natural gas (LNG) from the US. The company wants to hire newly built ships to transport up to 5.8 million tonnes per annum of LNG it had contracted in the US, beginning 2007. According to the tender document, bids are due by 30 October. “The present bid is calling for 9 LNG vessels in lots of three vessels each, of a cargo capacity of not less than 150,000 cubic meters and not more than 180,000 cubic meters.” The bidders are required to quote for lots of three vessels, with a provision that under each lot, one of the ships shall be built in Indian shipyard. The bidder can quote either for one, two or all three lots. Of the first two lots, GAIL wants delivery of the four LNG ships from overseas shipyards within the eight months window starting from 1 August, 2017 and ending on 31 March, 2018. The remaining two vessels from Indian shipyards will be delivered within six years of award of contract. The two ships from overseas shipyards in the third lot will be delivered between 1 February, 2018 and 30 September 30. The third vessel from the Indian shipyard would be delivered within six years of award. Courtesy :  ENERGY SECTOR

IOC mulls second LNG terminal on East Coast

First LNG terminal at Ennore, developed at Rs 4,500 crore, is targeted to complete by 2015-16 In a bid to further strengthen its Liquefied Natural Gas (LNG) operations, Indian Oil Corp, the largest public sector fuel retailer, plans to set up another LNG terminal on the country’s eastern coast, it said in its annual report published on Monday. “To meet the gas requirement of upcoming Paradip refinery, and other potential customers, setting up an LNG terminal is under consideration at East Coast in near future,” according to the annual report. IOC’s flagship 15 million tonne per annum (MTPA) Paradip refinery is at the cusp of commissioning. The state-owned oil major is currently setting up its maiden 5 MTPA LNG terminal at Ennore near Chennai for import, storage and regasification of LNG. The terminal which is being developed at cost of around Rs 4,500 crore is targeted to complete by 2015-16. “Steps have been initiated to have a significant share in the country’s gas infrastructure through participation in upcoming gas pipelines (in JVs) and planned import storage and degasification terminal of 5 MTPA LNG with provision for future expansion to 10 MTPA at Ennore,” the company said. Apart from this, the company has marketing rights for 30% quantity of the LNG procured by Petronet LNG from RasGas on long term basis at Dahej besides long term contract at Kochi. IOC would be able to get its 30% offtake from Dahej terminal from 2016-17, upon expansion of this terminal from 10 MTPA to 15 MTPA. The fuel retailers total sales of regassified LNG and LNG was 3.219 MT, while its total […]