Firering Strategic Minerals: From explorer to producer. Watch the video here.
BP estimates all remaining material Deepwater Horizon liabilities BP announced today that following significant progress in resolving outstanding claims arising from the 2010 Deepwater Horizon accident and oil spill, it can now reliably estimate all of its remaining material liabilities in connection with the incident. As a result, taking into account this estimate together with other positive tax adjustments, BP expects to take an after-tax non-operating charge of around $2.5 billion in its second quarter 2016 results. This charge is expected to include a pre-tax non-operating charge associated with the oil spill of around $5.2 billion. This would bring the total cumulative pre-tax charge relating to the Deepwater Horizon incident to $61.6 billion or $44.0 billion after tax. BP believes that any further outstanding Deepwater Horizon-related claims not covered by this additional charge will not have a material impact on the Group’s financial performance. It will deal with remaining claims in the ordinary course of business. Brian Gilvary, BP chief financial officer said: “Over the past few months we’ve made significant progress resolving outstanding Deepwater Horizon claims and today we can estimate all the material liabilities remaining from the incident. Importantly, we have a clear plan for managing these costs and it provides our investors with certainty going forward.” Gilvary reconfirmed that BP expects to continue to use proceeds of divestments to meet Deepwater Horizon commitments in line with the financial framework laid out in previous quarters.
Talks at the conciliation service Acas broke down today (Friday 8 July) after Wood Group refused to reconsider swingeing 30 per cent pay cuts on eight of Shell’s North Sea oil and gas platforms. The breakdown in talks comes ahead of the result of an industrial action ballot of members of Britain’s largest union, Unite on Wednesday 13 July. Expressing its ‘bitter disappointment’ over Wood Group’s refusal to significantly change its position, Unite urged the firm to start negotiating meaningfully to find a settlement prior to any industrial action. More than 200 North Sea oil rig workers have been balloted for strike action over a swingeing 30 per cent pay cut on eight of Shell’s North Sea oil and gas platforms,once reductions to base rates and other allowances are added in. Workers have already seen significant reductions in allowances over the last two years and recent changes have also seen workers move to a three-week offshore working cycle. Unite highlighted that the only movement that has been proposed by Wood Group during talks, were small reductions to the large cuts to sickness pay and travel allowances, and retaining existing life insurance. There has been no change in Wood Groups proposal to make large reductions to base pay and the removal of a number of existing allowances.
BP has knocked more than half the cost off its Mad Dog Phase 2 project. Estimated at $20 billion four years ago, it’s now expected to cost less than $9 billion, Chief Executive Officer Bob Dudley said last month. Rig-rental rates are likely to stay down because of an oversupply, while low steel prices are reducing the cost of other equipment, he said.
BP announces final investment decision to expand Indonesia’s Tangguh LNG facility Project will create 10,000 new jobs and support economic growth in Papua Barat Province BP, on behalf of Tangguh Production Sharing Contract Partners, today announced that the Final Investment Decision (FID) has been approved for the development of the Tangguh Expansion Project in the Papua Barat Province of Indonesia. “The Tangguh Expansion Project demonstrates BP and its partners’ continued confidence in Indonesia and our commitment to work closely with the government to meet the country’s energy needs, while creating thousands of jobs,” said Bob Dudley, BP Group Chief Executive. The Tangguh Expansion Project will add a third LNG process train (Train 3) and 3.8 million tons per annum (mtpa) of production capacity to the existing facility, bringing total plant capacity to 11.4 mtpa. The project also includes two offshore platforms, 13 new production wells, an expanded LNG loading facility, and supporting infrastructure. The Tangguh Expansion Project will play an important role in supporting Indonesia’s growing energy demand, with 75% of the Train 3 annual LNG production sold to the Indonesian state electricity company PT. PLN (Persero). The remaining volumes are under contract to Kansai Electric Power Company in Japan, the other foundation buyer for Train 3. The Tangguh Expansion Project will also bring a positive contribution to Indonesia and the Papua Barat Province starting in 2016, supporting economic growth and providing 10,000 valuable jobs spread over the project period. Tangguh is currently making positive local social and economic impacts through its comprehensive community development programs and providing much needed electricity for the Teluk Bintuni Regency. Train 3 will enhance this with a portion of the gas committed for the electrification of Papua Barat, and further development of Tangguh’s Papuan workforce to meet the 85% Papuan skilled workforce commitment by 2029. Commenting on the decision, Christina Verchere, BP Regional President Asia Pacific said, “This final investment decision marks the culmination of many years of hard work by BP, our partners, and the Indonesian Government. We are pleased to reach this major milestone and look forward to continued cooperation as we progress the largest upstream project in the eastern part of Indonesia.” This FID decision follows the Government of Indonesia’s approval of the Plan of Development II in late 2012. Awards for the project’s key engineering, procurement and construction (EPC) contracts are expected in the third quarter of 2016 with construction to begin thereafter. Operation is expected in 2020.
Any info on why?
Nothing in the RNS, must be close to a deal. Chinese whisper?
What has set this one off?
Guys I'm getting bored with all this political opinions, BP stated it doesn't expect it to have any effect on its business. The share price is rocketing, so let's just focus on BP chat. UK are out of the European Union, England are out of European championship, only one of them was a shock! GLA
It's moving today for some reason!
BP sanctions “fast-track” development of Atoll discovery in Egypt BP announced today that together with the Egyptian Natural Gas Holding Company (EGAS), it has sanctioned development of the Atoll Phase One project which is an early production scheme that will bring up to 300 million cubic feet a day (mmscfd) gross of gas to the Egyptian domestic gas market starting in the first half of 2018. BP has a 100% interest in the concession. Hesham Mekawi, Regional President, BP North Africa commented: “BP is proud to progress the acceleration of the Atoll project which will bring critical gas to the Egyptian market and establish a new material hub offshore East Nile Delta. Our confidence in the prospectivity of the area along with our ongoing commitment to Egypt and our successful history of partnership with the Ministry of Petroleum, EGPC and EGAS is allowing us to fast track Atoll from discovery to production in less than three years which is a significant achievement.” BP recently completed multiple transportation and processing agreements accelerating the development of the Atoll field which contains an estimated 1.5 trillion cubic feet (tcf) of gas and 31 million barrels (mmbbl) of condensates. Onshore processing will be handled by the existing West Harbour gas processing facilities. BP announced the Atoll discovery in March 2015. The Atoll-1 deepwater exploration discovery well in the North Damietta Offshore concession in East Nile Delta was drilled using the 6th generation semi-submersible rig Maersk Discoverer. The exploration well reached a depth of 6400 metres and penetrated approximately 50 metres of gas pay in high quality sandstones. The Atoll Heads of Agreement was signed by His Excellency Tarek El Molla, Egyptian Minister of Petroleum and Mineral Resources and Bob Dudley, BP Group Chief Executive in November 2015, just eight months after the discovery. Atoll Phase One is an early production scheme (EPS) involving the recompletion of the existing exploration well as a producing well, the drilling of two additional wells and the installation of the necessary tie-ins and facilities required to produce from the field. The Atoll wells will be drilled by the DS-6 rig which arrived in Egypt last month and is expected to start drilling in August for roughly the next 24 months. Success of the Atoll Phase One EPS could lead to further investment in the Atoll Phase Two full field development.
Shocking reply! You have no idea what you are talking about. No matter what trade or job you do, you wouldn't be such a smart ar*e if it was all taken away from you for 6-9 months at short notice. There are a lot of highly skilled workers struggling to get work this year in the industry, the same guys that make sure you get your divi each quarter. Have some respect.
Rosneft and BP have today signed final binding agreements to create a new joint venture, Yermak Neftegaz LLC, to conduct exploration in the West Siberian and Yenisey-Khatanga basins in the Russian Federation. The document was signed at the XX St. Petersburg International Economic Forum (SPIEF) by Rosneft CEO Igor Sechin and President of BP Russia David Campbell. The joint venture will focus on onshore exploration of two Areas of Mutual Interest (AMIs) in the West Siberian and Yenisey-Khatanga basins covering a combined area of about 260,000 square kilometers. Yermak Neftegaz will be owned 51 per cent by Rosneft and 49 per cent by BP. In the initial stage, the joint venture will carry out further appraisal work on the 2009 Rosneft-discovered Baikalovskiy field inside the Yenisey-Khatanga AMI and on exploration of Zapadno-Yarudeiskoye, Kheiginskoye and Anomalnoye licenses in the West Siberian AMI. Exploration activities in the two AMIs will include regional research, acquisition of seismic data and drilling of exploration wells, with the beginning of field works anticipated in the winter season of 2016 / 2017. The preliminary agreement relating to this project was signed at SPIEF in 2015. Igor Sechin, Rosneft CEO, said after signing: “These agreements serve as an example of full scale cooperation with BP, Rosneft’s strategic partner and largest minority shareholder. After creation of the Taas-Yuryakh Neftegazodobycha LLC joint venture we are now broadening the geography of our cooperation and creating a precedent which allows us to pursue cooperation in partnership with leading international companies to implement upstream projects at the largest Rosneft greenfield sites in West and East Siberia.” David Campbell, President BP Russia, said: “This agreement and creation of a new joint venture reinforces BP’s commitment to our strategic investment in Russia and our long term partnership with Rosneft. In the current low oil price environment we continue to look for opportunities for future growth.” BP has committed to provide up to $300 million in two phases as its contribution to the cost of the JV’s activities at the exploration stage. Rosneft will contribute licenses and operational experience in West Siberia and Yenisey-Khatanga with initial drilling to be performed by Rosneft subsidiaries.
Looks like the floor just collapsed! What news are you expecting?
Deal creates strategic platform for long-term growth in Norway, combining Det norske’s efficient operating model with BP’s experience and technical expertise BP and Det norske oljeselskap today announced the creation of Aker BP ASA, an independent oil and gas company combining the assets and expertise from both companies’ Norwegian exploration and production operations to form the largest Norwegian independent oil and gas producer. BP group chief executive Bob Dudley commented: “BP and Aker have matured a close collaboration through decades, and we are pleased to take advantage of the industrial expertise of both companies to create a large independent E&P company. The Norwegian Continental Shelf represents a significant opportunity going forward and we are looking forward to working together with Aker to unlock the long term value of the company through growth and efficient operations. This innovative deal demonstrates how we can adapt our business model with strong and talented partners to remain competitive and grow where we see long-term benefit for our shareholders.” Under the terms of the proposed transaction, the BP Norge and Det norske businesses will combine and be renamed Aker BP ASA. Aker BP will be independently operated and listed on the Oslo Stock Exchange. Aker BP will be jointly owned by current Det norske shareholder Aker (40%), other Det norske shareholders (30%) and BP (30%). BP will also receive a cash payment of $140 million plus positive working capital adjustments as part of the transaction.
Hundreds of North Sea workers are to be balloted for industrial action in a dispute over pay cuts. Members of the Unite union working for Wood Group on eight Shell installations will vote on whether to strike. The union said its members were "deeply worried" and felt they had no other option but to consider industrial action. Wood Group said it was "extremely disappointed" at the news during the consultation process. The platforms involved are Shearwater, Gannet, Nelson, Curlew, Brent Delta, Brent Alpha, Brent Bravo and Brent Charlie. In February, Aberdeen-based Wood Group PSN announced it was cutting rates paid to about a third of its UK contractor workforce.
Babcock has won a contract to construct a reactive compensation substation for Dong Energy’s 1.2GW Hornsea 1 offshore wind farm off the Yorkshire coast. The kit will be constructed at the engineering outfit’s Rosyth facility. Dong said the kit will be a world first. It will be deployed mid-way between shore and the 174-turbine site some 120km off the UK coast to enable a high voltage AC transmission system to work on longer cable lengths than previously used on offshore wind farms. The substation build will kick off this summer and will be completed in 2018. Hornsea project director Duncan Clark said: “Dong Energy is absolutely committed to investing in the UK and we are delighted to be working with Babcock on this world first structure which will play an important part of the world’s largest offshore wind farm.” Babcock energy and marine business managing director Ian Donnelly added: “Babcock is delighted to be working with Dong Energy on the construction of the world’s first offshore reactive compensation station at our facilities in Rosyth, Fife. This contract will sustain around 100 jobs within our operation here.”
Quiet on here, has everyone dumped these dogs!