Pemex has reached a two-year agreement with Talos Energy, Premier Oil and Sierra Oil & Gas to determine whether a Gulf of Mexico oil discovery by the three-company alliance overlaps with a Pemex block. The preliminary agreement is a first for Mexico's Pemex.
Tullow Oil says it is plugging and abandoning its Cormorant-1 exploration well off Namibia's coast after coming up short in pursuit of commercially viable hydrocarbons. The company, which says natural gas readings show the area may still have potential, will examine data before making a decision regarding continued development.
Permian Basin infrastructure constraints and widening oil price differentials are prompting oil and natural gas producers with diversified portfolios to reallocate capital to other oil regions, reports the Energy Department. The department pointed to a Noble Energy executive's statement during an earnings call that the company was tempering its Delaware Basin activity to focus on Colorado's Denver-Julesburg Basin as an example.
Eagle Ford Shale mergers and acquisitions could reach record levels in 2018, according to Scotiabank Global Investment Banking Director Robert Urquhart, as Permian Basin pipeline bottlenecking continues slowing down activity and the industry looks toward more frustration-free areas. The Permian has had $45 billion worth of deals so far this year and the Eagle Ford Shale is second with $15 billion, while Oklahoma's SCOOP and STACK fields have attracted $9 billion in investment.
Hoping to replicate the Texas shale boom elsewhere, oil giants such as Chevron are applying factory models to simplify hydraulic fracturing operations and solve and prevent pipeline bottlenecks, labor shortages and other problems plaguing the US shale industry. "They can transfer technology and skilled people across assets and parts of their portfolio from North America to Argentina," says Andrew Slaughter, executive director of Deloitte's Center for Energy Solutions.
US refiners stepped up activity in the past few months, counteracting a distillate deficit but also pushing gasoline supplies to 234 million barrels at the end of last week, a record for this time of year, writes Reuters analyst John Kemp. To avoid a fuel glut, refineries might need to reduce crude processing for longer than usual during the fall maintenance season, Kemp adds.
Chevron, ExxonMobil and Occidental Petroleum announced Thursday that they're joining the Oil and Gas Climate Initiative, a global coalition formed in 2014 by oil and natural gas industry giants to fight climate change. ExxonMobil and Chevron will also contribute $100 million each to a fund currently worth $1 billion that invests in carbon-reduction technologies.
North Dakota regulators may amend the state's oil conditioning regulations that require companies to remove volatile gases from oil before it's transported by rail. The proposed changes include removing the requirement to conduct quarterly vapor pressure tests.
Reliance Industries has ended operations at the MA oil and natural gas field in India's Krishna-Godavari Basin because reserves have dropped off, the company said. The offshore site on the country's eastern coast is one of the India-based company's three fields in the Bay of Bengal Basin.