Page 13 - AsianOil Week 34

AsianOil
NEWS IN BRIEF
AsianOil
EAST ASIA
KMG profits soar 73% in H1
Kazakhstan’s state oil and gas producer KazMunayGas (KMG) boosted its pro ts by 73% year on year in the rst half of 2019, on the back of increased gas sales to China and the devaluation of the Kazakh tenge.
Net income came to KZT622bn ($1.64bn) in the six months ending June 30, up from KZT359.7bn in the rst half of 2018, the company said in a statement. Ebitda rose by 20.5% to KZT1.095tn, with the spike supported by a 1.4% growth in revenues to KZT3.4tn.
e performance li was largely the result
of a 46.7% growth in KMG’s gas sales to China to KZT340bn. Kazakhstan was able to carve
out a share in China’s gas market in 2017, a er completing a cross-country pipeline enabling it to transport gas from elds in the west to export infrastructure in the south-east. From an initial 5bn cubic metres per year, Kazakhstan and China signed a ve-year deal in October 2018 to double shipments to 10 bcm per year.
KMG also cited a drop in the tenge’s value as a key factor behind its higher earnings. e Kazakh currency dipped to record lows against the US dollar last summer – in part a knock-on e ect from the devaluation of the Russian ruble as a result of US sanctions.
ese factors more than o set a 0.5%
y/y drop in the company’s rst-half oil and condensate production to 484,000 barrels
per day (bpd). e slump was caused by maintenance at the Kashagan oil project in the Caspian Sea, and higher levels of well watercut at the onshore Karachaganak development. Gas output was up 0.9% y/y at 4.16 bcm.
In addition to its upstream operations,
KMG also controls Kazakhstan’s oil and gas pipeline infrastructure and its three main oil re neries, as well as other downstream assets in Romania. e company completed a sweeping modernisation programme at its Kazakh plants in late 2018, in order to alleviate domestic fuel shortages and produce a surplus for export. Production of diesel rose by 6% y/y in the rst half to 1.985mn tonnes, while output of jet fuel surged 224.6% to 231,000 tonnes. Gasoline production fell 0.8% to 1.53mn tonnes, however, casting doubt on Kazakhstan’s plans to launch large-scale gasoline exports this year.
OCEANIA
NT approves new shale well
Falcon Oil & Gas is pleased to announce that the Environmental Management Plan (EMP) for the Kyalla 117 N2 horizontal appraisal well, for the planned 2019 drilling, stimulation, and well testing prepared by Origin Energy B2 Pty on behalf of the JV, has been approved by the Northern Territory Department of Environment and Natural Resources.
e well is targeting the Kyalla shale liquids rich gas fairway. Construction of the well pad and related civil works is nearing completion. Drilling operations will commence in September.
Philip O’Quigley, CEO of Falcon, commented: “Today’s announcement relating to the approval of the Kyalla 117 N2 Well EMP targeting the Kyalla shale liquids rich gas fairway is an exciting development for Falcon shareholders. We look forward to the commencement of drilling operations.” FALCON OIL & GAS, August 22, 2019
First oil from Greater Enfield
Woodside advises that on 25 August 2019 the Greater En eld Project produced rst oil through the Ngujima-Yin oating production storage and o oading vessel (FPSO).
e Greater En eld Project was approved in 2016, to develop the Laverda Canyon, Norton over Laverda and Cimatti oil accumulations through a subsea tie-back to the Ngujima-Yin FPSO, located over the Vincent eld. Total investment for the project was approximately US$1.9 billion (100%).
e project scope included a major
re t of the Ngujima-Yin FPSO which was successfully completed at the Keppel Tuas Shipyard in Singapore. e FPSO returned to waters o the North West Cape on 5 May 2019 and production from the Vincent wells recommenced on 4 July 2019.
Installation of subsea infrastructure has been completed, with all the project’s 12 development wells now also complete.
Woodside CEO Peter Coleman said rst oil from Greater En eld was produced on schedule and under the project’s budgeted cost.
“ e subsea campaign and refurbishment of the Ngujima-Yin FPSO was a signi cant
undertaking, and the project team and
our contractors should be proud of their achievement. A highlight included performing over ve million work hours in the shipyard without a recordable safety incident.
“ e delivery of Greater En eld is further demonstration of Woodside’s capacity to execute the major projects that will underpin our next phase of growth. e technical and project leadership capabilities applied on the Greater En eld Project will be carried forward as we progress our plans to develop the Scarborough and Browse o shore gas resources through the proposed Burrup Hub,” he said.
Production from the Greater En eld reservoirs is an important contribution to Woodside’s targeted annual production of approximately 100 MMboe in 2020.
e Greater En eld Project is a joint venture between Woodside Energy Ltd (Operator, 60%) and Mitsui E&P Australia Pty Ltd (40%). WOODSIDE PETROLEUM, August 26, 2019
Oil Search’s PNG facilities damaged by weather
Oil Search advises that the mooring system at the Oil Search-operated liquids o shore loading facilities in the Gulf of Papua appears to be damaged. Due to adverse weather and sea conditions in the Gulf
of Papua, Oil Search has not been able
to complete the necessary inspections
to fully assess the issue. Consequently,
as a precautionary measure, Oil Search temporarily suspended scheduled liquids loading last week. In addition, to extend
the liquids storage available in the liquids export system, the Company curtailed production from the Oil Search-operated oil elds and the PNG LNG Operator partially reduced PNG LNG production.
In collaboration with other key stakeholders, Oil Search has developed a temporary solution for the safe berthing and loading of vessels at the facilities, which enabled liquids loading to resume at a reduced rate from 25 August.
Oil Search is working closely with the PNG LNG Operator to ramp up production back to normal rates as soon as is practical, while the mooring system issue is fully investigated, and any necessary repairs are made. It is presently unclear whether it will be necessary to adjust our 2019 production guidance, as a result of these loading issues. A comprehensive review of optimising loading procedures, evaluation and repair options is now taking place and we will continue to keep the market informed as these mature.
OIL SEARCH, August 26, 2019
Week 34 28•August•2019
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