MGM concluded a share purchase agreement with Iberdrola Energía, S.A.U., a wholly owned subsidiary of Iberdrola, S.A. on September 18, for Mitsui’s acquisition of a 13.25% share in Gas Natural Mexico, S.A. de C.V. with the purchase amount of US$ 82million (Approx. J¥ 6.5bil.). The completion of the transaction is subject to the relevant regulatory approvals.
In addition, Mitsui has also reached an agreement with the remaining shareholders in GNM to acquire 1.75% of an additional shareholding in GNM with the purchase amount of US$ 10.8milliion (Approx. J¥ 0.9bil.) to reach 15% in total. The completion of this transaction is also subject to the relevant regulatory approvals and closing of the purchase to Iberdrola.
GNM is providing natural gas distribution for residential, commercial and industrial segments in 6 zones in Mexico, including Mexico City and Monterrey, which are two of the largest cities, and Toluca and Bajio, which are two of the most developing cities in the country. GNM is providing its services to 1.3million customers and is the leading natural gas distribution company in Mexico, having a top market share both in terms of the number of clients and gas distribution volume.
Mitsui is currently engaged in various natural gas related businesses in Mexico, including the LNG receiving terminal at Manzanillo on the Pacific coast and 6 gas-fired power plants in the country, as well as a gas distribution business in 7 states of Brazil. Mitsui considers this transaction as a part of the vertical and horizontal expansion of Mitsui’s activities in gas related business and aims for further improvement of operation and service in each business utilizing its accumulated know-how in management and operation from existing businesses.
Mitsui expects further strong growth in the natural gas related market in Mexico based on the continuous demand increase caused by the steady and sustainable economic growth of the country and on the diversification of supply thanks to the shale gas development in Mexico and the US.
Mitsui, through this participation in GNM, continues to pursue further expansion of its activities in gas related infrastructure businesses in Mexico, contributing to the social and economic development of Mexico through the realization of infrastructure for a stable and sustainable energy supply.
The Energy Department’s delay in releasing a report on liquefied natural-gas exports puts in limbo for this year as many as 12 applications including projects backed by Dominion Resources Inc. and Sempra Energy. (SRE)
The department commissioned the study last year to assess the economic impact of exports on domestic energy use after granting Cheniere Energy Inc. (LNG) permission to ship gas from Louisiana. It said future permits won’t be issued until the study is completed.
The first part of the study is complete, and a second portion was scheduled to come out in the first quarter. That date was pushed back to late in the U.S. summer, which ends Sept. 22. A posting on the department website now says it will be “complete by the end of the year.”
“It is really unfortunate, but I don’t think anything happens until we see the results of that report,” said Bill Cooper, president of the Center for Liquefied Natural Gas, which advocates for gas shipments. The Washington-based group includes LNG producers, shippers and terminal operators.
“None of the applicants, I’m certain, want to see a delay in the regulatory process,” Cooper said in an interview.
The study was started after lawmakers led by Representative Edward Markey, a Massachusetts Democrat, and Senator Ron Wyden, an Oregon Democrat, said overseas sales might increase domestic energy prices.
The delay probably will push release of the Energy Department’s report until after the election in November.
“This is a complicated economic analysis assessing a dynamic market,” Jen Stutsman, an Energy Department spokeswoman, said in an e-mail. “We take our responsibility to issue these determinations seriously and want to make sure the necessary time is taken to get it right.”
Investors including Sempra Energy in partnership with Mitsubishi Corp. and Mitsui & Co. Ltd., Freeport LNG with Macquarie Group Ltd., and Dominion Resources, have applied for approvals from the Energy Department.
U.S. permits are required to sell gas to countries that aren’t free-trade partners with the U.S., a group that includes Japan and Spain.
As natural-gas prices soared in the last decade, energy companies sought permission to build import terminals. Hydraulic fracturing, or fracking, for natural gas has opened access to reserves that previously couldn’t be produced economically, driving prices to a decade low and letting companies shift gears and seek overseas buyers for the fuel.
In fracking, oil and gas companies shoot a mixture of water, sand and chemicals underground to crack shale rock formations and free fossil fuels trapped inside.
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- Energy Department delays release of LNG export report (news.terra.com)
- Obama’s delay leaves LNG exports on hold though election (bizjournals.com)
- Politics are causing LNG export delays, attorney says (fuelfix.com)
- Freeport LNG inks deal to sell natural gas to Japanese utilities (fuelfix.com)
- U.S. Expected to Approve Expanded LNG Exports to Japan (mb50.wordpress.com)
- USA: Main Pass Energy Hub Files for LNG Export Licence (mb50.wordpress.com)
This week the SubseaIQ team added 4 new projects and updated 29 projects. You can see all the updates made over any time period via the Project Update History search. The latest offshore field develoment news and activities are listed below for your convenience.
Europe – North Sea
Jun 27, 2012 – BP is selling its interests in the Alba and Britannia fields in the UK sector of the North Sea to Mitsui & Co. for $280 million. Net BP production from the two fields averages some 7,000 barrels of oil per day. The sale comprises BP’s 13.3-percent stake in Alba and 8.97-percent stake in Britannia. Completion of the deal is anticipated by the end of 3Q 2012, subject to regulatory and other licensee approvals.
Project Details: Alba
Jun 27, 2012 – Statoil has commenced exploratory drilling at its Brugdan prospect in License 006, Block 6104/21, in the Faroe Islands. The operator is using the COSLPioneer (mid-water semisub) to drill the well. Statoil expects drilling operations to take four to five months.
Project Details: Brugdan
Jun 27, 2012 – Bridge Energy has executed an agreement with Agora Oil & Gas for the farm-down of a 15-percent working interest in Production Licenses 497 and 497B. After the transaction Bridge Energy will hold a 15-percent working interest in the two licenses. Cairn will, as a consideration for the transaction, carry a substantial share of Bridge Energy’s well cost. Geite, the main prospect in the licenses is scheduled for drilling in 3Q 2012.
Project Details: Geite
Jun 27, 2012 – Noreco has increased its interest in the Maja License (9/95) on the Danish Continental Shelf from 12 to 16.4 percent, and the license period has been extended for two years. The license contains part of the Gita discovery which was made in 2009. A new exploration well is now being planned in the license. The increase in ownership takes place at no charge, following a partner’s withdrawal from the license. Operator for the Maja license is Maersk Oil with 42.6 percent interest. Other partners are DONG Energy with 27.3 percent interest and Danoil with 13.7 percent interest.
Project Details: Gita
Jun 27, 2012 – ExxonMobil awarded Aker Solutions a frame agreement for fields located on the Norwegian Continental Shelf. The frame agreement covers engineering, procurement, construction and installation of several fields, including Balder, Jotun A, Jotun B and Ringhorne. The fixed contract duration is five years from 2012 to 2017, with options for two additional five year periods. The frame agreement will be managed from Stavanger.
Project Details: Jette (Jetta)
Jun 25, 2012 – EnQuest Britain awarded Technip a contract for the development of the Alma and Galia fields in the UK sector of the North Sea. The scope of work includes installation of two 10-inch production flexible flowlines, one 8-inch water injection flexible flowline and one further 8-inch production flexible flowline; installation of three 8-inch flexible risers; installation of two production control umbilicals/risers; installation of four power cables and associated dynamic risers; procurement, fabrication and installation of a 175-ton manifold structure; and associated trenching operations, tie-ins, testing and commissioning. The fields will be tied-back to the EnQuest Producer FPSO, which are located in a water depth of about 262 feet (80 meters).
Project Details: Alma/Galia
Jun 25, 2012 – Premier Oil will plug and abandon the Coaster exploration well at UK Block 28/10 as a dry hole. The operator commenced exploratory drilling in the beginning of June.
Project Details: Coaster
Jun 25, 2012 – The Danish Energy Agency has extended PA Resources Licenses 12/06 and 9/06 by two years. License 12/06 is operated by the company with a 64% interest; and license 9/06 is operated by Maersk, wherein the company has a 26.8% stake. The 12/06 permit contains last year’s Broder Tuck gas/condensate and Lille John oil discoveries. PAR plans to drill an appraisal well at Lille John and is negotiating a drilling management contract. In 2009, the Gita 1X-well in license 9/06 encountered indications of hydrocarbons in the Middle Jurassic high-pressure/high-temperature (HP/HT) secondary target, but with low permeability. Subsequent studies have not lowered the producibility risk. There is no well commitment but a decision regarding drilling must be made by October 2013. In the meantime, further subsurface studies will be performed to evaluate prospectivity at Upper Jurassic and shallower Cretaceous and Tertiary levels.
Project Details: Lille John
Jun 25, 2012 – Valiant Petroleum has completed drilling at the Tryfan prospect in UK Block 3/17. The well encountered both Frigg and Dornoch sandstones on prognosis with a small gas column present at the top of the Frigg formation interpreted to be sub-commercial. The well will now be plugged and abandoned.
Project Details: Tryfan
Jun 22, 2012 – Hertel Offshore has signed a contract for the EPC delivery of the Shell Draugen Additional Living Quarter, which will accommodate 44 people and will be designed according to the Norsok standards. Work has commenced and delivery of the module is scheduled for May 2013. Construction will be done at the Hertel Offshore premises in Rotterdam, The Netherlands.
Project Details: Draugen
S. America – Brazil
Jun 27, 2012 – InterMoor has completed the installation of the electrical submersible pump conductors for the artificial lift manifold as part of the Shell BC-10 phase two project. InterMoor was responsible for the fabrication and installation of four conductors in addition to one spare conductor for the project. Weighing in at more than 70 metric tons, the conductors measured 48 inches in diameter and 197 feet (60 meters) long with a 1.5-inch wall. The conductors were installed in water depths up to 5,600 feet (1,707 meters) off the coast of Brazil in the northern Campos Basin.
Project Details: Parque das Conchas (BC-10)
Jun 28, 2012 – BHP Billiton will plug and abandon the Banambu Deep-1 well as wire-line logs show that the well is water-bearing. The well, located in permit WA-389-P, lies in waters 1,050 feet (320 meters) deep. The well was drilled to 15,470 feet (4,696 meters) measured depth (mMD) on June 26, 2012, within the Mungaroo Formation.
Project Details: Banambu Deep
Jun 28, 2012 – ConocoPhillips is moving forward with drilling of the Boreas-1 exploratory well in WA-314-P following the final function testing of the blowout preventers for the semisub Transocean Legend (mid-water semisub). The BOPs and marine riser were run to the sea floor, and after function testing, were pulled from the hole for further repair and maintenance. After passing all checks on the surface, they have been re-run to the seafloor for final subsea function testing. The company will drill the second well in the program, Zephyros-1, in permit WA-398-P approximately 4.9 miles (8 kilometers) southwest of the Kronos-1 discovery location. The third well, Proteus-1, will be drilled in WA-398-P approximately 8.6 miles (14 kilometers) southeast of the Poseidon-1 discovery location.
Project Details: Boreas
Jun 27, 2012 – Apache is ready to spud its Balnaves Deep-2 prospect offshore Australia, but is waiting on approval from the Australian government to move forward. The operator will use the Atwood Falcon (DW semisub) for drilling operations.
Project Details: Balnaves
Jun 22, 2012 – Technip received a contract to provide services to the Ichthys FPSO, which will be located in the Browse Basin, Western Australia, at a water depth of 820 feet (250 meters). Under the agreement, Technip will provide engineering and procurement assistance for the topside facilities of the 1.2 million barrels storage capacity FPSO to South Korea’s Daewoo Shipbuilding & Marine Engineering. The Ichthys LNG project is expected to produce 8.4 million tonnes of LNG, 1.6 million tonnes of liquefied petroleum gas and 100,000 barrels of condensate.
Project Details: Ichthys
Jun 22, 2012 – Nexus Energy Limited announced that the vessel to inspect and potentially rectify the electrical fault that caused the suspension of production on the Longtom field has arrived. Initial inspections have identified the fault to be contained within a specific section of the offshore system, which has enabled an engineering solution to be developed with implementation and associated production expected by month end. Given the mobilization of the specialized vessel, the opportunity is being taken to expand the inspection program to include additional sections of the offshore system, stated the company.
Project Details: Longtom
S. America – Other & Carib.
Edison Farms-In to Falkland Acreage
Jun 27, 2012 – Falkland Oil and Gas has executed a farm-out agreement with Edison International in relation to its licenses in the Falkland Islands. Edison will farm-in and earn a 25 percent interest in FOGL’s northern area license, which contains the Loligo prospect, in return for which it will contribute a pro-rate share of the costs of the 2012 drilling program – comprising two exploration wells. Edison will also farm-in and earn a 12.5 percent interest in FOGL’s southern area license, containing the Undine prospect, and will contribute to the 2012 work program. Meanwhile, Edison has agreed to pay its pro-rate share of certain historical costs incurred by FOGL during 2011 related to the 2012 drilling program. Edison’s share of these costs is expected to be around $50 million. FOGL expects to receive the Leiv Eiriksson (UDW semisub) in July to commence the drilling program.
Eni Turns on Taps at Seth Field
Jun 28, 2012 – Eni has commenced gas production from the Seth field off the coast of Egypt. The field is expected to produce about 4.8 MMcm/d. The Seth project consists of a platform placed at a water depth of 262 feet (80 meters), two production wells and a pipeline of 6.8 miles (11 kilometers). The pipeline links the platform to the onshore processing facility in El Gamil.
Noa North Comes Online
Jun 27, 2012 – Noble Energy has begun gas flow from the Noa North field in the Mediterranean. The field was completed as a subsea tie-back to the Mari-B platform. Mari-B is the first offshore natural gas production facility in the State of Israel. Noble Energy is the operator of the project with a 47.059 percent working interest.
Jun 27, 2012 – KBR will execute a pre-FEED study for a project located off the coast of Israel. KBR will provide the pre-FEED study for the King liquefied natural gas-floating production storage and offloading (LNG-FPSO) facility currently being evaluated for Noble Energy’s Tamar gas field off the coast of Israel.
Project Details: Tamar
Africa – West
Jun 27, 2012 – Rialto Energy has awarded Petrofrac a Front End Engineering Design (FEED) contract for Block CI-202, containing the Gazelle field, offshore Cote d’Ivoire. Work is scheduled for completion in October. Rialto is working to fast track first hydrocarbons. It expects to award further contracts before the end of this year. The field development plan and gas agreement has been approved by the Cote d’Ivoire authorities and the production facilities will consist of a fixed production platform at the Gazelle field with separate oil and gas pipelines from the platform to shore.
Project Details: Gazelle
BP Gets Govt Nod to Namibia Farm-In
Jun 25, 2012 – Namibia’s Minister of Mines and Energy has approved BP’s farm-in of 30 percent to Serica Energy’s offshore Luderitz basin license 0047. The agreement was first announced in March. BP will cover the entire cost of a 3D seismic survey over an area of up to 1.025 million acres (4,150 square kilometers) across the concession. Participants in the block are now Serica Energy (55%); BP (30%); National Petroleum Corp. of Namibia (10%); and Indigenous Energy (5%).
Asia – SouthEast
Otto Granted Extension to Explore Offshore Philippines Block
Jun 27, 2012 – Otto Energy reported that the Philippines Department of Energy has granted a nine-month extension to the third exploration sub-phase of Service Contract 69 in the offshore Visayan Basin. The extension will give the consortium additional time to evaluate three potential targets on the block – Lampos, Lampos South and Managau East. Otto said it will use the extension period to start planning for an exploration well.
Jun 27, 2012 – Salamander Energy reported that the Far East prospect on the Bualuang field in License B8/38 in the Gulf of Thailand has reached a total vertical depth of 4,580 feet (1,396 meters) and is currently being prepared for a Drill Stem test. The well encountered an 82 foot (25 meter) section of excellent quality T5 Miocene sandstones, the primary target on depth prognosis. However, following the acquisition of a full suite of wireline logs, these sandstones are interpreted to be water-wet, with no evidence of hydrocarbon saturation. The well was then deepened to test the secondary objective. The well penetrated a conglomeratic section overlying the Ratburi carbonates from 4,423 feet (1,348 meters) TVDSS to current total depth (“TD”). Oil shows were observed at 4,482 feet (1,366 meters) TVDSS and severe mud losses were experienced from 4,495 feet (1,370 meters) TVDSS. Interpretation of logging while drilling data shows zones of potential oil pay in highly porous section from 4,478 feet (1,365 meters) to current TD.
Project Details: Bualuang
- Recap: Worldwide Field Development News (Jun 15 – Jun 21, 2012) (mb50.wordpress.com)
- Recap: Worldwide Field Development News (Jun 8 – Jun 14, 2012) (mb50.wordpress.com)
- Recap: Worldwide Field Development News (Jun 1 – Jun 7, 2012) (mb50.wordpress.com)
- Recap: Worldwide Field Development News (May 11 – May 17, 2012) (mb50.wordpress.com)
Mitsui & Co., Ltd. announced that Mitsui E&P Texas LP, a wholly owned subsidiary of Mitsui, and SM Energy Company have closed the previously announced agreement for MEPTX to acquire a 12.5% working interest in SME’s Eagle Ford property in Texas, USA.
Mitsui has participated in shale oil/gas projects in the United States and Poland, and aims to expand its shale business into other countries leveraging its global network and the knowledge acquired through these projects.
- Halliburton: Moving Quickly on the Global Shale Boom (mb50.wordpress.com)
- Natural gas shale play development now going global (mb50.wordpress.com)
- Caddo Minerals Buying Mineral Interest in Texas, Louisiana and Kansas (prweb.com)
- Comstock Resources, Inc. Announces Acquisition in the Delaware Basin and Provides Update on Eagle Ford Shale Drilling Program (prnewswire.com)
- Industry predicts natural gas boom will fuel growth (tech.mit.edu)
- Industry study touts large economic impact of shale-gas drilling (philly.com)
- BHP places Its chips on shale gas (tradingfloor.com)
- Mozambique LNG Eyed to be Sold to Japan Market (ibtimes.com)
- Deloitte Report Examines the Future of Oil and Gas in the Middle East and Beyond (prnewswire.com)