Repsol-YPF secures Libyan onshore exploration license

The National Oil Corp. of Libya awarded an exploration and production sharing agreement for Block M-4 to a consortium led by Repsol-YPF SA.

The newly designated Block M-4 covers 12,300 sq km of Libya's Murzuq Basin, and was awarded by NOC under an addendum to an existing EPSA contract for Blocks NC-186 and NC-187, let in 1997.

Interest holders in the three blocks are: operator Repsol-YPF 32%, OMV Aktiengesellschaft 24%, Total Fina SA 24%, and Saga Petroleum AS - in the process of being taken over by Norsk Hydro AS - 20%.

The three blocks lie close to Block NC-115, where Repsol-YPF is also operator, and which contains the El Shahara field, which currently produces 150,000 bo/d.

According to OMV, Repsol-YPF aims to raise El Shahara output to 200,000 bo/d "within a short period of time." El Shahara interests holders are operator Repsol-YPF 40%, OMV 30%, and Total Fina 30%.

Four other blocks in the Murzuq Basin are under negotiation by foreign firms. NOC reportedly has designated 80 onshore and offshore tracts for award to foreign companies under EPSA contracts.

New contracts

TECO Energy Services of Florida let a $100 million contract to Kvaerner Energy AS, Oslo, to build a 315 Mw capacity gas turbine power plant for a facility in Accomack County, Va.

The plant will be brought into operation in two stages: 135 Mw of capacity is due to be put into service by June 2000, with the remaining capacity to be operational by June 2001. Engineering, procurement, and fabrication will take place in Oslo.

Australia LNG Pty. Ltd. signed a memorandum of understanding with Tuntex Gas Corp. of Taiwan for the supply of up to 4 million tonnes/year of LNG beginning in 2003.

The MOU calls for ALNG, which is a six-company venture operated by Woodside Energy Ltd. and Tuntex to complete commercial and technical agreements for the deliveries and regasification for ale of gas to power stations and industrial customers in Taiwan.

ALNG hopes to secure further LNG sales to Tuntex, as the Taiwan company bids to supply gas to a new power station in northern Taiwan.

Total Fina SA acquired a 15% interest in Shell Gas Eastern Inc., which owns an LPG import and storage terminal in Tabangao, The Philippines. This is the only refrigerated butane and propane storage facility in The Philippines, and has a combined storage capacity of 50,000 tonnes.

Total said its acquisition, through its Total Philippines Corp. subsidiary, is intended to enable the company to enter The Philippines and provide logistical support for its other LPG marketing operations in Southeast Asia.

Project Focus: Shell plans $800 million redevelopment offshore Iran

Shell Exploration BV announced its plan to proceed with an $800 million redevelopment of two oil fields offshore Iran under an agreement with the National Iranian Oil Co.

The deal potentially conflicts with the US Iran Libya Sanctions Act (ILSA) of 1996. A Shell official explained that the US State Department was launching an investigation into the Shell/NIOC deal and that the process was expected to take "some time."

On Nov. 14 Shell signed an agreement with the NIOC to redevelop the Soroosh and Nowrooz oil fields, which lie in shallow waters 80 km west of Kharg Island in the Arabian Gulf, in return for repayment of capital outlay plus a remuneration fee paid in crude oil.

Shell has been negotiating with Iran in the period since the US imposed sanctions. The company's understanding, after consulting the British and Dutch governments and the European Union, is that ILSA is not applicable.

The Shell official added that US subsidiary Shell Oil would have no involvement with the NIOC deal, and would not provide either capital or expertise for the project.

Work in Soroosh and Nowrooz was slated to begin immediately, and the project team is already being assembled. Meanwhile, Shell is studying Iranian Caspian Sea exploration prospects in a joint venture with Lasmo PLC, London, and NIOC, holds a crude oil purchasing agreement with NIOC, and has submitted a proposal for the South Pars Phases IV and V developments.

Soroosh and Nowrooz were brought into production in 1967 and 1970, respectively, but were both damaged extensively in 1983 during the Iraq-Iraq war.

Soroosh was shut in but Nowrooz currently produces 5,000 bo/d. Shell aims to begin early production from Soroosh after redevelopment in autumn 2001 and full production from both fields 2 years later.

The fields will be redeveloped jointly: in Nowrooz Shell will install a production platform and separate wellhead and quarters platforms, while in Soroosh it will install two production platforms, two separate wellhead platforms, and a quarters platform. The new production platforms will be tied back to a floating storage unit to enable exports of crude by shuttle tanker.

Soroosh has estimated reserves of 500 million bbl of oil and Nowrooz reserves are estimated at 550 million bbl. Shell intends to raise production from Soroosh and Nowrooz to 100,000 bo/d and 90,000 bo/d, respectively.

Related Articles

ConocoPhillips plans further capex reduction for deepwater exploration

07/16/2015 ConocoPhillips reported plans to further reduce its capital expenditures for deepwater exploration, with the “most significant reductions” coming f...

DOE official: LNG exports could be limited by silt-clogged waterways, ports

07/16/2015 Silt, which is increasingly filling US waterways and ports, potentially could limit US LNG exports if it is not dredged soon, a top US Department o...

Fitch notes increase in energy-default rate

07/16/2015 Recent actions of two exploration and production companies have pushed the trailing 12-month energy default rate among issuers of high-yield bonds ...

ENOC trims Turkmen plan in Dragon takeover

07/16/2015 Emirates National Oil Co. Ltd. (ENOC), Dubai, will lower target oil production from the Cheleken area offshore Turkmenistan after acquiring full co...

KMI to buy Shell’s stake in Elba LNG project for $630 million

07/16/2015 Kinder Morgan Inc., Houston, has reached a deal with Royal Dutch Shell PLC to purchase 100% of Shell’s equity interest in Elba Liquefaction Co. LLC...

Genesis to buy Enterprise offshore pipelines

07/16/2015 Genesis Energy LP has agreed to buy the Gulf of Mexico pipelines and services business of Enterprise Products Partners LP for $1.5 billion cash.

Mexican round nets two successful bids

07/16/2015 Two of 14 shallow-water blocks received successful bids on July 15 in Mexico’s historic Round One offering of exploration and production rights (OG...

CAPP: Canada needs global LNG markets for gas production growth

07/16/2015 Canada needs to connect to global LNG markets to avoid a decade of decline in natural gas production, according to the Canadian Association of Petr...

KMI brings second Texas condensate splitter online

07/15/2015 Kinder Morgan Inc., Houston, has commissioned the second of two splitters at the company’s new petroleum condensate processing facility located nea...
White Papers

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by
Available Webcasts

On Demand

OGJ's Midyear Forecast 2015

Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Predictive Analytics in your digital oilfield - Optimize Production Yield and Reduce Operational Costs

Tue, Jul 7, 2015

Putting predictive analytics to work in your oilfield can help you anticipate failures, plan and schedule work in advance, eliminate emergency work and catastrophic failures, and at the same time you can optimize working capital and improve resource utilization.  When you apply analytic capabilities to critical production assets it is possible to reduce non-productive time and increase your yield.

Learn how IBM's analytics capabilities can be applied to critical production assets with the goal of reducing non-productive time, increasing yield and reducing operations costs.

register:WEBCAST


Cognitive Solutions for Upstream Oil and Gas

Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected