Page 14 - Euroil Week 41 2019

EurOil
NEWS IN BRIEF
EurOil
IGas to advance Welton project
IGas Energy has said it is advancing an enhanced oil recovery venture to raise production from conventional reservoirs
at the Welton project in the East Midlands. The company said it would be following on from a previous success using waterflodding techniques at the Welton field in the southern portion of the project.
IGas plans to use a suspended production well as a water injector to deliver an increase in “reservoir sweep”
and raise output. It predicts it can add 340mn barrels of contingent resources with the programme, with peak incremental production rates measuring up to 120 barrels of oil per day. “Mid-case” project economics could deliver IRR of above 100% and value the project at around GBP7mn ($9mn), it said.
“We continue to mature projects across the portfolio as we seek to maximise returns on our existing operations and infrastructure, and in this case are pleased to be moving forward with another low-risk opportunity with an estimated mid-case IRR of over 100%,” CEO Stephen Bowler said. “This is part of the wider Welton Full Field Development and as well as increasing production, will aid in de-risking further injection projects into other areas of the field and provide critical infrastructure
to assist with water disposal and support future rationalisation work across Welton sites.”
October 14 2019
S&P affirms BBB- rating
on Slovenia’s energy firm
Petrol
Slovenia’s energy company Petrol said on October 14 that Standard & Poor’s Rating Services has affirmed the company’s ‘BBB-‘ long-term rating with stable outlook.
Petrol is the largest provider of comprehensive energy and environmental solutions in Southeast Europe and a circular economy partner promoting the transition to a low-carbon society.
The agency also confirmed ‘A-3’ short-term credit rating of Petrol, it said in a bourse filing.
“The stable outlook reflects our view of Petrol’s broadly stable profitability and comfortable leverage,” the agency said in a separate statement.
S&P projected that Petrol will post adjusted EBITDA of about €200mn in the coming years.
bne IntelliNews, October 15 2019
Mol to receive compensation for tainted oil
Hungarian oil company Mol could soon
agree with Russian oil major Lukoil and gas pipeline operator Transneft on the amount of compensation for the tainted oil it received on the Friendship oil pipeline in April-May, local media writes October 14.
There will be a three-way agreement with Hungarian oil and gas company Mol and Russian pipeline monopoly Transneft, Lukoil CEO Vagit Alekperov said in Saudi Arabia. He said Lukoil plans to stabilize its oil supplies to Mol at between 300,000-500,000 tonnes a month, Reuters reported.
The report did not include the size of the agreed compensation, but local media estimates it would be near $11mn.
In July Transneft reportedly offered $15 per barrel compensation to European costumers for the contaminated oil delivered.
A number of refineries in Europe suspended oil imports via the Druzhba, or “Friendship”, pipeline on April 19 after it
was found to contain high levels of organic chloride, a material used to boost oil output which must be separated before shipment as it can destroy refining equipment.
MOL said in the middle of May it was removing 100,000 tonnes tainted Russian crude from the pipeline and putting it in storage. The crude will be treated and mixed with clean oil to make it usable in future, it said
October 15 2019
PGNiG makes small discovery off Norway
Poland’s PGNiG has made a small oil and gas discovery at production licence 838 in the Norwegian Sea, after drilling two wells, the Norwegian Petroleum Directorate said on October 15. The wells were drilled 5 km south of the Skarv facility and 210 km northwest of Bronnoysund.
A wildcat encountered an 85-metre oil and gas column, while an appraisal well encountered a 65-metre column. The total net pay at both sites was 105 metres. Preliminary estimates place the size of the discovery
at 3-6mn cubic metres of recoverable oil
equivalent.
PGNiG operates licence 838 with a 40%
stake, while partners Aker BP and Lime Petroleum each have 30%. It won the licence during Norway’s 2015 APA licensing round, and these represent its first wells at the site.
October 15 2019
Repsol comes up dry in North Sea
Spain’s Repsol has drilled a dry well 6 km northeast of the Yme field in the North
Sea, the Norwegian Petroleum Directorate reported on October 15. The well’s aim was to prove petroleum in Middle Jurassic reservoir rocks, but it found no trace of it. Data has been collected and the well will now be permanently plugged and abandoned.
This is the first well at production licence 910. The Scarabeo-8 facility used to drill it is now on route to a shipyard.
October 15 2019
Lundin to book gain on Sverdrup sale
Sweden’s Lundin Petroleum will publish its financial report for the third quarter 2019 on October 31 2019, it said in a statement. In these results, it will recognise a post-tax accounting gain of approximately $757mn in relation to the sale of a 2.6% working interest in the Johan Sverdrup project. Lundin Petroleum will also expense pre-tax exploration costs of approximately $14mn and recognise a largely non-cash net foreign exchange loss of approximately $272mn.
For the third quarter of 2019, Lundin Petroleum will incur pre-tax exploration costs of approximately $14mn which will be charged to the income statement and offset by a tax credit of approximately $11mn. The exploration costs are mainly related to the dry well on the Rumpetroll prospect located in PL869.
Lundin Petroleum will recognise a net foreign exchange loss of approximately $272mn for the third quarter of 2019. The Norwegian Krone weakened against the
US Dollar by approximately 7% and the
Euro weakened against the US Dollar by approximately 4% during the third quarter of 2019. The foreign exchange loss is largely non- cash and mainly relates to the revaluation of loan balances at the prevailing exchange rates at the balance sheet date.
October 16 2019
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Week 41 17•October•2019