According to Thailand’s Energy Minister Anantaporn Kanjanarat, the government plans to auction petroleum concessions held by Chevron Corp. and state-owned PTT Exploration and Production Pcl (PTTEP). The concessions owned by Chevron and PTTEP have a combined production of 2.2bn cubic feet per day, or 76% of total output in the Gulf of Thailand.
Chevron’s Thai unit holds concessions to operate the Erawan gas field, while PTTEP operates the Bongkot gas field.
The concession period for the contracts would expire in 2022-2023, and the auction process was expected to be completed within a year.
In absence of interested bidders, the government would negotiate concession extensions with the existing holders. Separately, Chevron and PTTEP were allowed to bid during the current auction process.
The bidding is also pending an amendment of a new energy law, which will add production-sharing contract terms to existing concession contracts by which firms pay taxes and royalties. The amendment was expected to be completed within the next three or four months.
According Kazakhstan’s energy minister Kanat Bozumbayev, a consortium led by Chevron Corp. plans on investing up to $37bn in the country’s oil fields with Chevron’s CEO John Watson having previously discussed the project with the country’s political leaders.
Investment in the project is expected to commence during 2017 and the project would add up to 24,000 jobs in the country.
Chevron is the biggest partner in the field’s operator, Tengizchevroil, with a 50% stake. Other shareholders in the operator include Exxon Mobil Corp. with a 25% stake, Kazakhstan’s state-controlled oil company Kazmunaigas owns 20% and Lukarco, a company controlled by Russia’s Lukoil, owns the remaining 5% in the operating company.
Chevron would separately announce the consortium’s final investment decision on the project in consultation with its partners.
Output at the Tengiz oil field is currently about 500,000 barrels a day. Chevron plans to increase annual production to about 760,000 barrels a day by 2021, but the company had previously delayed investments amid the crude oil price slump.
Chevron has estimated that it would spend between $17 – 22bn annually over the next two years on capital projects; down from this year’s $25 – $28bn budget for such developments.
Mexico’s PEMEX wants to develop its offshore deep water capabilities in the Gulf of Mexico and was in discussions with Chevron, Total and ExxonMobil. The company also plans to engage with Statoil ASA to look at mutual areas of interest for jointly developing offshore capabilities.
Mexico is scheduled to auction offshore assets in the Gulf of Mexico on 5 December 2016, hoping to raise $44bn to support its economy.
According to sources, Angola’s liquefied natural gas (LNG) export plant was experiencing fresh delays in raising production and shipping cargo. Shareholders of the plant include Chevron (36.4%), Angolan state-owned oil firm Sonangol (22.8%) whilst other stakeholders include Total, BP and ENI.
According to Chervron’s spokesman, the plant, which had been shut since April 2014 due to construction errors and difficulties faced whilst handling feed gas supplies, had re-started operations in January 2016.
Further, it was expected that first cargo would be loaded on 15 May 2016, followed by a supply tender in June. Given the current situation, both outcomes have been postponed temporarily. Sources expected production to commence by the end of May 2016 and first cargo to be shipped in June.
The Sonangol Sambizanga LNG tanker, was currently moored at one Angola LNG jetty, and was only conducting tests, not loading supply. After producing a limited number of cargoes, Angola LNG will then be shut down again for additional testing.
Previously, traders had initially expected the plant to produce and export production output by April 2016.
Oil and gas major Chevron sold 70 offshore platforms to independent explorer Cox Oil at an undisclosed price.
The deal includes a total of 19 offshore oil and gas fields, 70 platforms, and 170 active wells. All assets are located in the US Gulf of Mexico, and in Louisiana state waters.
About 100 employees, which were employed on these platforms, would get absorbed into Cox Oil.
Source: Offshore Post