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PGS Overseas to farm into Sicily Channel permits

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PALERMO, ITALY — AuDAX Resources has signed a memorandum of understanding with seismic contractor PGS Overseas AS for participation in exploration of offshore permit G.R15.PU, Pantelleria, in Italian waters of the Sicily Channel and the contiguous offshore permit Kerkouane in Tunisian waters.

AuDAX is the operator of the permits and holds a 70 percent interest. Kairiki (ASX: KIK) holds 30 percent interest.

PGS would earn a 15 percent interest in the permits by paying 30 percent of a significant future exploration work program. The memorandum is subject to a number of conditions including the signing of a farm-in agreement.

Oil & Gas UK Introduces New Offshore NRB Guidelines

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Oil & Gas UK is introducing new guidelines setting out the principles and process to be followed in the event of permanent removal of contractor personnel from an offshore installation, a process commonly referred to as not required back or NRB. The new guidelines, which for the first time have been endorsed by industry and the trade unions alike, are being introduced in response to workforce concerns that the lack of a clear and transparent process could potentially prevent individuals from raising safety concerns.

Malcolm Webb, Oil & Gas UK’s chief executive, explained, “Whilst we are only talking about a very small number of cases, we recognize that this emotive issue needed to be rectified by industry. We want to leave no doubt that safety issues can be raised by anyone at anytime, so even the perception that this was not always the case needed to be dealt with. I am particularly encouraged that the new guidelines have been endorsed by employers and trade union representatives alike.”

StatoilHydro eyes Australia gas projects

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Norway’s StatoilHydro is eyeing equity stakes in Australian natural gas and liquefied natural gas (LNG) developments to boost its Asia Pacific business, a senior company official said on Thursday. 

StatoilHydro’s reserve replacement ratio tumbled to 34 percent in 2008, it said last week, showing shrinking business prospects for the third-year running and confirming its need for more acquisitions abroad to compensate for dropping output from its core North Sea oil fields.

Norwegian Maritime Directorate Recognizes ABS MODU Rules

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The maritime authority of Norway, the Norwegian Maritime Directorate (NMD), has extended its authorization to class society ABS to include Mobile Offshore Drilling Units (MODUs) in its scope as a Recognized Organization (RO). This is significant as it now entitles ABS to class Norwegian-flagged rigs without having to perform additional safety equivalencies or a GAP analysis to meet Norwegian law.

Cyclone Brews Off Australian Oil, Mining Region

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AUSTRALIA — A tropical low has formed off the remote west Australian coast and may develop into a cyclone this weekend, the country’s weather bureau said on Thursday, threatening iron ore mines and offshore oil and gas production.

The tropical low formed about 210 km northwest of Kalumburu, in the northwest of the Western Australia state, and may develop into a cyclone by Saturday as it moves towards the Pilbara coast, the bureau said. 

“Widespread heavy rain is likely in the Pilbara from Saturday evening as the system approaches the Pilbara coast, and significant flooding may result,” the bureau said. 

The Pilbara region is home to key iron ore mines owned by BHP Billiton Ltd and Rio Tinto Ltd, while the nearby town of Karratha is home to some of Australia’s largest oil and gas projects, including the onshore North West Shelf liquefied natural gas processing plant.

A cyclone would be the season’s fourth, following tropical cyclones Dominic, Billy and Anika. Dominic, the third cyclone of the season, forced the shut-in of several oil and gas operations for nearly a week.

Clough scores US$75 million contract from PTTEP

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DARWIN, AUSTRALIA — Engineering and construction company Clough Ltd. (ASX: CLO) has been awarded a contract worth around AUD 116 million (US$75 million) by PTTEP Australasia for the installation of offshore facilities for the Montara field development.

The project incorporates the Montara, Swift and Skua fields which are located approximately 690 kilometers (428 miles) west of Darwin in the Ashmore Cartier permit area of the Timor Sea within the AC/L7 and AC/L8 production licenses in 80 meters (262 ft) of water.

Chevron restates commitment to develop Niger Delta

Xinhua News Agency 

Andrew Fawthrop, Managing Director of Chevron Nigeria Ltd, on Monday restated its commitment to the development of the Niger Delta, the News Agency of Nigeria reported. 

Fawthrop stated this in Abuja when he visited Nigeria’s Minister of Niger Delta Affairs Obong Ufot Ekaette, adding that the company’s activities had spanned a period of 50 years, manifesting in commercial oil exploration and community development successes. 

He said Chevron better understands the terrain of the region with 50 years of its existence and knows where its services are needed. 

“We cannot do this outside now that there is a ministry on ground and thus the essence of this visit, so that we can rub minds to partner in this vein,” he added. 

In his response, the minister said some host communities had complained of the ill treatment by some oil companies that had kept the region at the present state. 

He said although the government had recognized some good works done by some oil companies, they still needed to intensify their efforts. 

He explained that the struggle for development of the region has been on and several attempts by oil companies to tackle the problems have yielded little or no results. 

“The ministry will continue to interface with stakeholders, so that there would be synergy in order to avoid duplications of efforts and waste of resources,” the minister said. 

Ekaette noted that it would be better to understand the causes of militancy in a bid to achieve the desired results. 

The Niger Delta is an unstable area of Nigeria ,and inter ethnic clashes are common practice, often access to oil revenue is the trigger for the violence.

Crash Survivor Tells of 'Impact' Before Helicopter Ditched in Sea

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An oil-rig worker on the helicopter that ditched in the North Sea last Wednesday said he felt the aircraft “impact with something” moments before it went down. 

Finlay McGregor, one of the 18 people to survive the incident, said the aircraft jolted as if it had been “rear-ended by a truck” seconds before it was due to land on an oil platform 125 miles east of Aberdeen. 

However, the welder, who is the first to describe the potential disaster in detail, was unable to explain what could have caused the bump.

Nine dead in Algeria attack

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Nine security guards were killed in an attack on an engineering site near a coastal town east of Algiers late on Sunday, local witnesses and media said. 

The attack took place in the commune of Ziama Mansouriah in the province of Jijel, 120 km (75 miles) from the Algerian capital, they said.

Oil executives ask congress not to delay offshore drilling

 

HOUSTON — Top executives at Devon Energy Corp. and Shell Oil Co. said Tuesday they will ask Congress not to stall the opening of new offshore drilling areas that can provide the U.S. with a reliable source of energy and jobs.

“We can’t be particularly happy about any further delay,” said Devon’s Chief Executive Larry Nichols. “The country needs those resources and the sooner we start the sooner we will get there.”