Monthly Archives: February 2012
Spanish oil company, Repsol, posted a net income of EUR 2.193 billion in 2011, 53.3% lower than that recorded in 2010 and which included the one-time gain from the agreement between Repsol and China’s Sinopec in Brazil.
Earnings were negatively affected by external factors such as the armed conflict in Libya and the strikes and the suspension of the Petróleo Plus program in Argentina.
The Upstream unit’s (exploration and production) recurring operating income was 1.301 billion euros by the end of 2011, a decrease of 11.7% compared to the previous year. Higher international crude oil and gas prices along with lower exploration costs somewhat mitigated the effect of lower production due to external factors and the depreciation of the dollar against the euro.
Repsol’s crude realization prices increased 14.4% compared to 2010. Particularly noteworthy was the 29.6% increase in the Repsol gas realization price compared with a 9.1% decline in the Henry Hub index benchmark. Realization prices had a positive impact of 648 million euros on the upstream unit’s income. During 2011, oil and gas production was 298,800 Boepd, 13.2% less than in 2010, mainly due to reduced production of liquids in Libya, and maintenance work in Trinidad and Tobago. In October, operations in Libya resumed and gross production of almost 300,000 Boepd has already been achieved.
Especially significant was the increased reserve replacement ratio for the Upstream unit, which in 2011 rose to 162% from 131% in 2010. Investments made during the period in this area totalled 1.813 billion euros, 62% more than during 2010. Investment in field development represented 43% of the total and was assigned mainly to the United States, Bolivia, Trinidad & Tobago, Venezuela, Peru and Brazil. Investments in exploration were 40% of total investments, and conducted primarily in the United States, Brazil and Angola. The rest of the investment went mainly to the acquisition of Eurotek in Russia.
During 2011 multiple operations were carried out in this unit that consolidated and increased a portfolio of assets and projects that will allow Repsol to meet its production growth objectives and reserves replacement ratio.
Repsol highlighted the start of development of the giant Cardon IV gas field in Venezuela, the new discovery in the Sapinhoa (previously Guará) appraisal well in Brazil which confirms the high potential of the area, as well as the declaration of commercial viability which allows the company to book reserves. Additionally the company increased production in the Margarita-Huacaya fields in Bolivia and the Shenzi field in the United States.
Repsol in 2011 also received approval from the Algerian authorities to start development work in the Reggane gas project in Algeria.
In addition, the company drilled six successful wells: Sapinhoa North, Northeast Carioca, Gávea (rated one of the 10 largest oil discoveries in the world in 2011) and Malombe in Brazil; Buckskin 2 in the United States and A1-130 in Libya (February 2011).
During 2011, Repsol added 720 mboe in contingent resources from successful exploration, acquisitions and revisions of existing fields. During the period, Repsol acquired a total of 79,000 km² of new acreage in 13 countries including Alaska, Ireland, Norway, Colombia and the United States.
In February 2012, Repsol announced two new discoveries; in Sierra Leone (Jupiter) and a highly promising find in Brazil (Pao de Açúcar).
MEXICO CITY – Mexico‘s state-owned oil company Petroleos Mexicanos, or Pemex, is ready to drill in the deep waters of the Gulf of Mexico near the maritime border with the U.S., its head of production said Tuesday.
Pemex has in place high-tech drilling platforms, safety systems and membership in a well-containment group as part of redundant measures to prevent and control an oil leak, Carlos Morales Gil said at a news conference.
Pemex has complied with the requirements of Mexico’s watchdog National Hydrocarbons Commission, or CNH, he added.
“Yes, we’re going to Perdido this year, in a few months,” Morales said, referring to the hydrocarbon formation already being drilled on the U.S. side. “And, yes, we are in compliance with all of the requirements.”
The CNH chief, Juan Carlos Zepeda, said recently that he didn’t think Pemex was prepared for the challenges of drilling deep-water wells–those at depths exceeding 6,000 feet. Zepeda had said that Pemex wasn’t in compliance with the CNH because the oil company hadn’t yet been accepted into a well-containment group.
Zepeda’s warnings followed the Deepwater Horizon blowout, which killed 11 workers in April 2010 and caused the worst offshore oil spill in U.S. history. Pemex had its own blowout in the shallow waters of the Gulf in 1979 that spilled oil for months and fouled beaches in Texas.
Morales said Tuesday that Pemex has detailed seismic information of the Perdido area where it plans to drill, and that the oil monopoly has been training its own people and contracting international crews.
Furthermore, Pemex has received word that it is being accepted into the Helix Well Containment Group, he said, a U.S. consortium that inherited and improved some of the equipment used to cap the Deepwater Horizon spill.
Pemex is leasing three of the current generation of drilling platforms, according to Morales, with multiple safety systems. In the event of a blowout or leaking well, Pemex could drill a relief well relatively quickly because it has the three high-tech platforms in the Gulf and could move one or more.
On Monday, Pemex said it had a net loss of 23.8 billion pesos ($1.7 billion) in the fourth quarter as it paid more to the federal government in taxes and royalties than a year earlier, and had foreign exchange losses as a result of a weaker Mexican peso.
Pemex said sales in the final quarter of the year rose 22.5% from the fourth quarter of 2010 to MXN420.3 billion, thanks to higher world oil prices. The higher crude prices–$104.40 per barrel compared with $70.80 a year ago–were partially offset by lower export volume, which fell 10.5% to 1.339 million barrels a day, Pemex said in a filing with the local stock exchange.
The oil production rates are gradually being increased as the well goes through the initial stages of production. The early production rate performance has met expectations and the rate of oil production is being increased. Further information will be reported as it becomes available. The MC 942 A-3 well is located on the Morgus Field and is the fourth well brought on production at the Telemark Hub location utilizing the ATP Titan floating drilling and production platform.
ATP operates the deepwater Telemark Hub in approximately 4,000 feet of water with a 100% working interest and holds a 100% ownership in ATP Titan LLC which owns the ATP Titan and associated pipelines and infrastructure.
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- USA: Stone Energy Buys Interest in Pompano Field from BP (mb50.wordpress.com)
- USA: Helix’s Oil & Gas Revenues Rise on High Prices and Lift in Production (mb50.wordpress.com)
The program will commence imminently and is expected to run for approximately 75 days.
Polarcus is a pure play marine geophysical company with a pioneering environmental agenda, specializing in high-end towed streamer data acquisition from Pole to Pole. Polarcus operates a fleet of high performance 3D seismic vessels incorporating an innovative design and advanced maritime technologies for improved safety and efficiency. Polarcus offers contract seismic surveys and multi-client projects worldwide and employs over 500 professionals. The Company’s principal office is in Dubai, United Arab Emirates.
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