UnaCom Oil and Gas news
29th Oct- 4th Nov
Monday 29th October
North Sea Future Oil and Gas Projects to total £34bn in the next 7 years
Two studies have recently been undertaken and their results suggest that there could be a boost in investments in the near future. Energy companies will spend more than £31bn on new North Sea Projects over the next seven years. A total of 67 projects to be operated by four countries are expected to begin in operations between 2018-2025. The new project investment is expected to be worth £33.6bn of which £14.7bn will be spent to bring the projects online and the remaining amount of £18.9bn will be spent on key announced schemes. The UK leads the way in terms of the number of planned oil and gas projects with 11 in the pipeline with Norway and Netherlands following behind with 8 and 2 respectively. Norway is expected to be the biggest investor with £16.6bn between 2018 and 2025, comprising £10bn on key planned projects plus £6.6bn on announced projects. The UK comes a close second with a planned £15.8bn in capital expenditure, which includes £4.4bn on key planned projects and £11.4bn on announced projects during the same period. Research from the University of Aberdeen has predicted forecasts for energy production off Scotland’s coast to be up to 17 billion barrels of oil to be extracted between 2018 and 2050.
Tuesday 30th October
Prospects still high for the North Sea
There have been numerous stories over the years about the demise of the North Sea, yet they have been consistently wrong with predicting the eventual date when it will be finally out of use for good. Admittedly is has passed its peak, with only this year four exploratory wells having been drilled in the first eight months of 2018, with optimistic predictions for the end of the year to be 12 wells. This puts it at the same status as in 1965, which was just the second year of the modern era when exploratory work got underway. Every time an international company divests its assets in the North Sea, more news stories arise about the impending doom of the North Sea. However, if recent data is taken to be considered, Westwood Global Energy, forecasts that 17 exploration wells could be drilled on the U.K. continental shelf (UKCS) over the next 18 months, with a yield potential of over 2 billion barrels of oil equivalent. This is under half of what was drilled in 08-09, but it shows that the North Sea is nowhere near its end.
Wednesday 31st October
What does the budget mean for the Oil Industry in the North Sea?
The oil industry had no reason to be nervous for the budget announcement this week, with the Government having stated in the past to being committed to maximizing economic recovery from the UK continental shelf and stating they understand that higher tax rates play no role in achieving that objective. The Government has introduced new changes that make it possible for companies to transfer historical tax capacity as part of assets dispositions, thereby ensuring that new entrants or companies with no historic tax capacity will be able to obtain effective tax relief on future decommissioning costs. This policy measure, announced in last year's Budget, should help create a more active transactions market in UK oil and gas sector, and enable licence interests to be moved into the hands of the companies who wish to invest in the underlying assets.
Thursday 1st November
BP more than double it profits over the Third Quarter
BP has doubled its profits over the third quarter after benefiting from higher oil prices. The oil major said underlying replacement cost profit, rose to £2.9 billion over the three-month period, up from £1.4 billion in the same quarter last year. Oil and Gas production during the third quarter averaged 3.6 million barrels of oil per day. Revenue during the quarter rose to £63 billion, up substantially from £47.5 billion in the same period last year. BP has plans to develop the Alligin field, 140 km west of Shetland, targeting 20 million barrels of oil equivalent and giving the North Sea a £230 million investment boost.
Friday 2nd November
BP completes $10.5 billion BHP acquisition
BP has completed its acquisition of BHPs U.S unconventional assets in a huge deal that will upgrade BPs U.S onshore oil and gas portfolio helping to drive long term growth. The acquisition was announced in July and closed on Wednesday 31st of October. This acquisition adds oil and gas production of 190,000 boed and 4.6 Bboe of discovered resources in the liquids-rich regions of the Permian and Eagle Ford basins in Texas and in the Haynesville natural gas basin, in East Texas and Louisiana. The transaction is accredited to generate more than $350 million of annual pre tax synergies and is expected to boost Upstream free cash flow by $1 billion.
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