Halliburton Reports $28m Revenue Loss

Steep declines in the North American market were in part behind the 9 percent decline in revenue, oil field services company Halliburton said. Halliburton, which provides services to the drilling and production side of the energy sector, reported a $28 million loss for the fourth quarter, against a profit from the previous year's quarter of $901 million. Total revenue was down 9 percent. "North America revenue declined 39 percent compared to 2014, as a result of unprecedented declines in activity, with the U.S. land rig count ending the year down 64 percent from the 2014 peak," Halliburton President Jeff Miller said in a statement. Halliburton is the second-largest company of its kind behind Schlumberger, which last week reported a 9 percent decline in fourth quarter revenue. North American operations accounted for the bulk of the drop for Schlumberger, with land-based revenue falling off in the region by 45 percent. Halliburton's…

ENI Boss Says OPEC Losing Clout

The Organization of Petroleum Exporting Countries is fading, though Middle East producers may reign supreme, the CEO of Italian energy company ENI said. Claudio Descalzi, ENI's top executive, told delegates at a Middle East and North African energy conference in London current weakness in the crude oil market was driven by near-sighted focus on certain data sets that may not correlate with long-term fundamentals "The lack of a regulator -- the role played before by OPEC -- which balanced oil prices and gave a long-term perspective, has resulted in the market being handed over to short-term positions," he said in his remarks. OPEC members have pushed a robust production policy even as crude oil prices drift further away from mid-2014 peaks above $100 per barrel. OPEC, led tacitly by Saudi Arabia, said it needed to defend a market share against the increase in rival producers outside the 13-member group. OPEC…

Crude Oil Production Drop In Nigeria, Libya

Terror activities by Boko Haram in Nigeria and Islamic State in Libya have led to decline in crude oil production, a crude oil productio survey carried out by Platts indicated in a report. The report also revealed a significant drop of crude oil production in the Organization of the Petroleum Exporting Countries (OPEC) member states. Libya and Nigeria are OPEC members from the African continent. Nigerian output dipped by 40,000 b/d to 1.86 million b/d as a slightly shorter loading program was exacerbated by the declaration of force majeure on Brass River crude exports on December 24. Trading sources said exports of the grade restarted in the latter part of this week. December also saw the restart of the 125,000 b/d Kaduna refinery and the two refineries at Port Harcourt with combined nameplate capacity of 210,000 b/d. By early January, all four of the country's plants were online for the…

OPEC Pumped 32.28m Barrels Of Crude Oil Per Day In December

Oil production from the Organization of the Petroleum Exporting Countries (OPEC) fell by 130,000 barrels per day (b/d) in December on lower volumes from Iraq, Nigeria and Saudi Arabia, according to the latest Platts survey of OPEC and oil industry officials and analysts. The latest survey -- which expands the estimate for Iraq to bring in volumes from the semi-autonomous Kurdistan region and also includes an estimate for Indonesia -- shows December output fell to 32.28 million b/d from 32.41 million b/d in November. For comparison purposes, the November table has been adjusted to include Kurdistan and Indonesia. 'Collapsing oil prices and oversupply used to be a recipe for, at the very least, an emergency OPEC meeting,' said Margaret McQuaile, senior correspondent for Platts, a leading global provider of energy and commodities information. 'That is no longer the case, however, and Saudi Arabia and its Gulf allies appear to be…

Schlumberger Buys Into Ophir Energy In Equatorial Guinea

Ophir has signed a non-binding Heads of Terms Agreement with Schlumberger whereby Schlumberger will, subject to due diligence, definitive documentation and Government approval, receive a 40% economic interest in the Fortuna FLNG project, offshore Equatorial Guinea. Ophir and Schlumberger will now work towards signing a definitive agreement, which is expected to be signed in 2Q 2016, ahead of Final Investment Decision. Under the definitive agreement Schlumberger will reimburse 50% of Ophir's past costs in the form of a development carried interest. This is expected to cover Ophir's share of capital expenditures up until first sales of LNG. As previously indicated, Ophir is also presently shortlisting the gas off-take offers and expects to complete this process within the coming weeks. All workstreams are progressing in line with expectations and the project remains on track to achieve FID in mid-2016. Mercedes Eworo Milam, Director General of Hydrocarbons in the Equatorial Guinea Ministry…

Fuel Retailer Opens Another Java House Restaurant

Vivo Energy Uganda, the company that distributes and markets Shell branded fuels and lubricants, has invested in a programme to upgrade its Shell service stations to offer a wider range of services. The new programme targets both shoppers and motorists who visit Shell service stations by partnering with professionals who share in its ambition to invest and grow and provide better services to customers. Vivo Energy Uganda’s latest partnership is with Java Coffee House, a food and beverages retailer. The former will be setting up food joints at Shell fuel stations. On Monday the partnership saw another Java outlet opened at Shell Lugogo bypass. The Managing Director Vivo Energy Uganda, Hans Paulsen, said that Vivo Energy understands that customers are looking for more than just a fill-up when they drive to the Shell forecourts. Paulsen said that it’s not just about the quality fuels and lubricants sold to the customers,…

Oil Ministry Boss In Family Land Disputes

Land disputes involving the permanent secretary Ministry of Energy and Mineral Development Fred Kabagambe Kaliisa is tearing his family apart, the New Vision reported on Saturday. According to the newspaper, the family is fighting over an estate their father Francis Muntukwonka Kaliisa, who died in 1985 left behind in oil rich Hoima district, western Uganda. Kabagambe’s relative, led by Julius Kaliisa, filed a suit in the Land Division of the High Court accusing the permanent secretary of fraudulently taking over the unsurveyed family land in Hoima Municipality. Relatives accuse Kabagambe of registering the said land in his liability company called Miika Estates. He co-owns the copany with his children Francis and Henry Kaliisa. Kabagambe apparently without the knowledge of his relatives registered the said land under the freehold title with intention to defraud his siblings. The land, according to New Vision, is now registered as Bugahya block 15, plot 372,…

Besigye: Oil Shouldn’t Be A Curse

Forum for Democratic Change (FDC) presidential candidate Kizza Besigye has said oil in Bunyoro region, western Uganda, shouldn’t be a curse but a blessing to the nation. The former military officer, now a leading opposition figure, was speaking at various political rallies in Hoima district in Bunyoro this weekend as he lobbied to be elected the next president of Uganda. “Oil can never become a curse to a nation when there is good governance & a leadership that believes in equal opportunities and shared prosperity,” Besigye, who faulted the sitting government for keeping the people of Bunyoro in poverty, stated. He promisingly added that “Our government will ensure that the people of Hoima benefit from their resources especially oil that is ozzing from their ground. Our government will make sure their resources (oil) will work for” There is increasing unrest in Bunyoro region that government is not doing enough to…

Shell Not Sure When Recovery Will Emerge

There's a durable sense of weakness in the oil economy and, while recovery is expected, it's uncertain when, Royal Dutch Shell said Wednesday. Shell said it expects fourth quarter profits to come in at around 50 percent lower year-on-year as the industry continues to suffer from the dramatic declines in crude oil prices. The price for Brent crude oil tumbled 2.8 percent in early Wednesday trading in a sign of protracted weakness in the energy markets. A spokesperson for Shell said the company was positioning itself for a sustained downturn by cutting capital investments. The company is planning to merge with British counterpart BG Group and, combined, spending of $33 billion for the year marks a 45 percent reduction from its peak. Shell said an oversupplied market is the fundamental reason behind the sector decline. Once production falters from maturing fields and investments in future output falls off, supply pressures…

CNOOC Trims Global Production Target

China National Offshore Oil Corp., the country's largest producer, said its 2016 production forecast is lower than last year by about 3.5 percent. CNOOC set a production target for the year in the range of 470 million to 485 million barrels of oil equivalent. "The net production targets set for 2017 and 2018 are around 484 and 502 million boe respectively," the company said. "The estimated net production for 2015 was approximately 495 million boe." The decline comes as the slowing in the Chinese economy is putting downward pressure on crude oil prices. The Chinese National Bureau of Statistics reported the economy in 2015 grew 6.9 percent year-on-year for its slowest rate in a quarter of a century. Wang Baoan, the head of the NBS, was quoted by China's official Xinhua News Agency as saying the country has the "daunting task" of enacting deep reforms to slow the pace of…
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