Page 12 - EurOil Week 30

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Ticking upwards in the Middle East Montney shale play from Kelt Exploration for
An increase in commercial activity in the Mid- around $375mn, plus the assumption of roughly
dle East this week provided further evidence $30mn worth of financing obligations for asso-
that the sector is on its way towards recovery. ciated infrastructure. The acquisition, in the liq-
In the UAE, China’s CNOOC joined Abu Dha- uids-rich Inga-Fireweed asset directly adjacent
bi’s Lower Zakum consortium just as signs to ConocoPhillips’ existing Montney position,
were emerging that ADNOC would resume comprises roughly 140,000 net acres (567 square
offshore contracting activity. The growing role km). The deal will bring ConocoPhillips’ total
of Chinese companies in the Emirati oil and Montney footprint to 295,000 net acres (1,194
gas sector has been emphasised by CNOOC’s square km).
entry to the Lower Zakum, Umm Shaif and Nasr The Montney is primarily known as a gas
concessions. play, and though this acquisition consists of
Meanwhile, Chevron agreed to buy Noble both gas and liquids, it may indicate gas coming
Energy for $5bn in stock in the first major deal back into favour with producers – as Chevron’s
of the current oil downturn, providing the major forthcoming merger with Noble also does. This
with a foothold in Israel. Buyers may be attracted is more of a longer-term trend, however.
by bargain prices, but appetite has been muted in In the short term, meanwhile, the US saw
recent months. its first increase in the active oil rig count since
In another sign of stability, Iraq took steps mid-March. But the increase was a marginal one,
towards resuming crude oil exports to Jordan, with Baker Hughes’ data showing the number of
starting with trucked cargoes ahead of longer- oil-focused rigs had risen by one in the week up
term and broader pipeline plans. As cross-bor- to July 24 and, given a drop of three in the gas rig
der trade edges towards normality, optimism is count over the same week, there was still a slight
growing that contracting and M&A activity will net decline. At the basin level, both the Permian
begin to ramp up again. Basin, Eagle Ford and Granite Wash regions saw
If you’d like to read more about the key events shaping slight increases in the oil rig count. And while
the Middle East’s oil and gas sector then please click these were cancelled out by declines in the num-
here for NewsBase’s MEOG Monitor. ber of gas rigs, they are being held up as a reason
to be cautiously optimistic about the start of a
Not all bad news in North America gradual recovery.
Last week’s news that Chevron was buying At the same time, though, second-quarter
Noble Energy for $5bn was followed by other results announcements are looming, and prom-
positive developments in North America. First, ise to be largely negative. Indeed, oilfield ser-
another acquisition – solely involving acreage vices leader Schlumberger reported a net loss
and smaller than Chevron’s deal, but still sizea- of $3.4bn on July 24, and eyes are now turning
ble nonetheless – was announced. Then the latest to the upstream players as they prepare for their
Baker Hughes oil rig count edged up for the first own second-quarter earnings releases.
time since March. If you’d like to read more about the key events shaping
ConocoPhillips said on July 22 that it was the North American oil and gas sector then please click
buying additional acreage in Western Canada’s here for NewsBase’s NorthAmOil Monitor. ™

The US has seen a first
increase in its active rig
count since mid-March.

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