Tag Archives: ConocoPhillips

Government: APA 2019: New High Award Secures Further Exploration of the Norwegian Continental Shelf

The Norwegian Ministry of Petroleum and Energy offers 69 production licenses on the Norwegian continental shelf in the Award in Pre-Defined Areas 2019 (APA 2019).

– I am proud to offer 69 new production licenses in this year’s APA round. The companies show great interest in further access to new exploration acreage. This means that the industry believes in future value creation on the Norwegian continental shelf, says Minister of Petroleum and Energy, Sylvi Listhaug.

The 69 production licenses are located in the North Sea (33), the Norwegian Sea (23) and the Barents Sea (13). A total of 28 different oil companies, ranging from the large international majors to smaller domestic exploration companies, are offered ownership interests in one or more production licenses. Of these, 19 will be offered operatorships. The licenses are awarded with work-programme commitments or as additional areas to such licenses.

– Hopefully, the exploration in the awarded acreage will result in new discoveries. This is important to ensure employment, value-creation and future government revenue for Norway’s largest industry, says Listhaug.

The APA licensing rounds cover the most explored areas on the Norwegian shelf. One of the primary challenges in mature areas is the expected decline in discovery size.

Smaller discoveries may not be able to carry standalone developments, but can have good profitability when making use of existing and planned infrastructure. It can also be seen in context with other discoveries or planned developments. Timely discovery and exploitation of such resources is therefore important. 

Background

The first licensing round on the Norwegian continental shelf (NCS) took place in 1965. The activity started in the North Sea, and exploration in the Norwegian Sea and the Barents Sea started around 15 years later. Thus, Norway will soon have more than 40 years of experience in all sea-areas on the NCS.

Approximately 225 000 people are today directly or indirectly engaged in the Norwegian petroleum sector. The competence and the competitiveness in the industry also produces positive ripple effects into other industries. Since the first oil-discovery was made, the sector has contributed with over 14 900 billion NOK in value creation. It has also given the Norwegian state a net cash-flow of over 6 450 billion NOK since the start of the new millennium. The State’s net cash-flow in 2020 from the petroleum sector is estimated to be approximately 245 billion NOK. That equals approximately 185 000 NOK for a family of four.

The award of new exploration acreage takes place in two equal licensing rounds. The numbered rounds takes place in the least known exploration areas, which for all practical purposes now means remaining parts of the deep-water areas in the Norwegian Sea and parts of the Barents Sea. Acreage in the best-known exploration areas is awarded in the annual APA-rounds. As a consequence of the fact that exploration has been going on for decades, the majority of the North Sea, large parts of the Norwegian Sea and an increasing area in the Barents Sea is now included in the APA-rounds.

The only difference in the process for the two rounds is in how the authorities stipulates the applicable area. In the numbered rounds, this happens after proposals (nominations) from the companies. This gives the authorities the best possible basis for announcing the areas that will give the most information about the regional geology and thus, effective exploration. This approach is not needed in the APA-rounds, where the key challenge is to identify resources in a timely manner in order to best utilise existing and planned infrastructure in the area.

The petroleum activity on the NCS is conducted with great emphasis on health, safety and the environmental standards. Exploration, development and production takes place with low emissions to air. Greenhouse gas-emissions is a part of the EU Emissions Trading System (ETS). In addition, a high CO–tax is paid.  This policy gives the companies financial incentives to reduce their own emissions, as recently demonstrated by the industry’s initiative to cut emissions from the activities on the NCS. In a system like the ETS, the only way to reduce total emissions is to reduce the number of quotas available.

The level of safety on the NCS is high, and normal exploration-activities, development and production has no proven negative effects on the natural environment. As with all other industrial activity, petroleum activities leads to the risk of accidents with consequences for employees lives and health, loss of established infrastructure and the natural habitat. Great emphasis has therefore been made to avoid large-scale accidents.  

Potential damage to the natural environment is limited to large accidental oil spills. The probability of an oil-well blow-out is estimated to be one in more than every 7000 exploration wells drilled. On the NCS, approximately 50 wells are drilled each year. There has been very few larger oil spills on the NCS. There are requirements in place for emergency preparedness in order to reduce the consequences in the event of an accidental oil spill. Restrictions have in addition been placed on exploration drilling in oil-bearing layers for parts of the year. During 50 years of petroleum activities, no accidental oil spills have reached Norwegian shores, and no damage to the marine environment has been proven.

  1. Map
  2. Awards with work-programme

Offer of licenses to 28 licensees

(Number of licenses /operatorships)

Aker BP (15/9)

AS Norske Shell (5/2)

Capricorn (3/3)

Chrysaor (8/3)

Concedo (4/0)

ConocoPhillips (5/3)

DNO (10/2)

Edison (2/1)

Equinor (23/14)

Idemitsu (2/0)

INEOS (2/1)

Lime (2/0)

Lotos (2/0)

Lundin (12/7)

Neptune (13/4)

OKEA (5/2)

OMV (4/1)

ONE-Dyas (3/0)

Pandion (3/0)

PGNiG (3/0)

Repsol (1/0)

Source (3/0)

Spirit (6/1)

Suncor (5/2)

Total (2/1)

Vår Energi (17/7)

Wellesley (7/3) 

Wintershall Dea (9/3)

Lite olje- og gassfunn nær Balderfeltet i Nordsjøen

ConocoPhillips Skandinavia AS, operatør for utvinningstillatelse 917, har avsluttet boring av undersøkelsesbrønn 25/7-8 S.

Brønnen er boret om lag 10 kilometer nordvest for Balderfeltet i midtre del av Nordsjøen, og 200 kilometer vest for Stavanger.

Primært letemål for brønnen var å påvise petroleum i nedre jura og øvre trias reservoarbergarter (Nansen-, Eiriksson- og Skagerrakformasjonen). Sekundært letemål var å påvise petroleum i midtre jura reservoarbergarter (Hugin- og Sleipnerformasjonen).

Les hele saken HER.

Bloomberg: ConocoPhillips Launches Plan to Distance Itself from Shale

ConocoPhillips announced a 10-year plan to buy back $30 billion of shares, equivalent to about half of its current market capitalization, as the oil producer attempts to distance itself from the troubled U.S. shale industry.

The company also said it will pay dividends of about $20 billion over the period and limit average capital expenditure to about 10% above current levels.

Read entire article HERE.

Sysla: ConocoPhillips økte inntektene med ti milliarder kroner på to år

Oljeselskapets omsetning har ikke vært høyere siden før krisen. Bedre oljepris er årsaken.

Selskapene som produserer olje og gass, var ikke de som ble hardest rammet av den alvorlige krisen som begynte sommeren 2014. Langt lavere oljepris førte likevel til at inntektene falt kraftig.

Slik var det også for ConocoPhillips’ norske virksomhet. På to år ble inntektene nesten halvert da de falt med ti milliarder kroner fra 2014 til 2016, da de endte på 14,8 milliarder.

Høyere oljepris

Men de siste årene har situasjonen snudd. I 2017 økte inntektene med 43 prosent til 21,1 milliarder kroner, og i fjor fortsatte framgangen. Inntektene i 2018 endte på 24,9 milliarder kroner.

Resultatet før skatt ble 13,6 milliarder kroner, en økning på 45 prosent fra 9,6 milliarder kroner i 2017.

– ConocoPhillips Skandinavia har i 2018 nok en gang levert et år med verdiskapning og sterkt finansielt resultat, skriver kommunikasjonsdirektør Stig S. Kvendseth i en e-post til Sysla.

Les hele saken HER.

World Oil: ConocoPhillips submits re-development plan for Tor field

On behalf of the licensees, operator ConocoPhillips has submitted a Plan for Development and Operation (PDO) for a re-development of Tor field, in the Greater Ekofisk area in the North Sea.

The field was in production from 1978 until it was shut down in 2015 when the installation reached the end of its lifetime. At shutdown, just 20% of the resources in place had been produced.

Read entire article HERE.

Press Release: TechnipFMC Awarded a Significant Integrated EPCI (iEPCI™) Contract for the ConocoPhillips TOR II Development

LONDON & PARIS & HOUSTON–(BUSINESS WIRE)– TechnipFMC (Paris:FTI) (NYSE:FTI) has been awarded a significant(1) integrated Engineering, Procurement, Construction and Installation (iEPCI™) contract from ConocoPhillips for the TOR II development, located in the Norwegian sector of the North Sea at a water depth of 80 meters.

This contract covers the delivery and installation of a subsea production system including installation of umbilical, rigid flowlines and associated subsea equipment.

Arnaud Pieton, President Subsea at TechnipFMC, commented: “This is the first iEPCI™ award by ConocoPhillips. Through early engagement and collaboration, with ConocoPhillips we engineered an integrated subsea solution enabling first oil sooner than with a traditional project execution. We have partnered with ConocoPhillips in the Ekofisk area on several projects and are honored that ConocoPhillips is expanding its scope with us, embracing our innovative and comprehensive approach”.

(1) For TechnipFMC, a “significant” contract ranges between $75 million and $250 million.

Read entire press release HERE.

World Oil: Equinor reports “profitable” oil discovery from the Visund A platform

STAVANGER — Equinor has, together with partners Petoro, ConocoPhillips and Repsol, made an oil discovery from the Visund A platform in the Telesto exploration well in the North Sea. The resources are estimated at 12-28 MMbbl of recoverable oil.

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Source: Equinor

“We are pleased to have made a new discovery on Equinor-operated acreage on the Norwegian continental shelf (NCS). These are profitable barrels that can be quickly tied in to existing infrastructure and generate substantial revenues for society. Infrastructure-led exploration is an important part of our roadmap for the NCS,” said Nick Ashton, Equinor’s senior V.P. for exploration in Norway and the UK.

Read entire article HERE.