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Wildcat's Pick of the Week.
Every Monday, Wildcat will give you a headstart on the coming week, as well as a round-up of what mattered in the previous week.
Week Ahead
Monday 25 June: Court hearing of the United Energy Systems of Ukraine’s case against Ukraine’s former Prime Minister Yulia Tymoshenko over gas contracts with Russia; Essar Energy full-year results; Gas Storage, London (until Tuesday); Grid-Scale Energy Storage, London (until Tuesday)
Tuesday 26 June: South East Asia Industrial Gas Conference 2012, Singapore (until Thursday); LNG Global Congress, London (until Friday); Africa Energy Forum, Berlin (until Thursday)
Wednesday 27 June: The board of directors at South Stream Transport to meet in Zurich; Latin America Oil and Gas, Miami (until 29 June); Future Libya Infrastructure & Rebuild Forum (until Thursday); SPE London Conference and Exhibition (until Friday)
Thursday 28 June: United States sanctions against Iran’s nuclear programme take effect
Friday 29 June: Shtokman Development board of directors meeting
Monday 2 July: Bidding for Greece’s Gulf of Patraikos, Katakolo and Ioannina fields closes.
Winners & Losers
Winner: Ghana is on track to bring new gas supplies to the domestic market by 2013, easing the strain on the country’s fuel import budget. The deepwater section of an offshore gas pipeline running from Tullow Oil’s Jubilee field to gas-fired power plants onshore has been completed, and the shallow water section should be finished by the end of this year, Nana Asafu-Adjaye, the chief executive of Ghana National Petroleum Corp. said on Thursday. This should mean that the line will become operational next year.
Winner: Gazprom is expecting another record year for gas exports in 2012, following last year’s exports of 221 billion cubic metres, the company said on Wednesday. The company will export “no less than 222 bcm” this year, Deputy Chief Executive Alexander Medvedev told reporters at a press conference in Moscow. Income from this could reach $61 billion, he said.
Loser: Germany is struggling to convince power producers to invest in new gas-fired power projects under the government’s ‘Energiewende’, or energy transition, programme. The incoming chief executive of Germany utility RWE said the company will slow progress on new gas and coal-fired plants because of the poor investment climate and will not develop any nuclear power projects.
Loser: Prospects for the development of an unconventional gas industry in Poland have dimmed with the news that US supermajor ExxonMobil has abandoned its shale gas exploration programme in the country after failing to find commercial quantities of gas at its Krupe 1 and Siennica 1 wells. “There have been no demonstrated sustained commercial hydrocarbon flow rates in our two wells in the Lublin and Podlasie basins,” Adam Kopysc, Exxon’s government affairs adviser in Poland, told Interfax on Saturday. “We hope that Poland’s efforts to develop its shale gas potential will be successful, and appreciate the support of the Polish government and local communities, which enabled us to assess our acreage safely.”
Loser: Gas production in Latin America’s largest economy, Brazil, will remain flat until 2015, following a sharp cut in output plans by dominant producer Petrobras. State-controlled Petrobras reduced its domestic oil and gas production target by 20% to 3 million barrels of oil equivalent per day by 2016 in the new five-year investment plan announced last week. To reach the lower target, the company will invest $142 billion in exploration and production in 2012-2016, $14 billion more than envisioned in the 2011-2015 plan.
Loser: The EU’s Energy Roadmap 2050 hit another hurdle after Poland blocked the adoption of an otherwise unanimously supported plan on how the EU should proceed to a low-carbon economy within the next 40 years. Despite Poland’s veto of the European Commission’s roadmap, EU Energy Commissioner Günther Oettinger told a press conference in Luxembourg after the meeting he would propose new post-2020 energy targets for the EU “next spring” in a bid to pave the way for the decarbonisation of Europe’s energy sector by 2050.
Quotes of the Week
“There were some keen buyers, but there was not a meeting of the minds on price,” Scott Parker, general manager of corporate affairs and marketing for Australian pipeline operator Jemena, told Interfax on Monday. Jemena took two of its eastern Australian pipelines off the market, believing developments in the region will soon drive up their value.
“It’s not really the name that matters, it’s the details – the devil lies in the details. We could have a service exploration and development contract, but with better terms for investors,” Thamir Ghadhban, chairman of the advisory commission to the Iraqi prime minister, told journalists at the Iraq Petroleum conference in London on Monday. Iraq is preparing to launch a fifth licensing round, but is unlikely to offer companies a production sharing contract model.
“You’ve got to remember that the prize is significant. It’s 200 tcf [5.7 tcm] of resources,” a spokesman for Cuadrilla Resources told Interfax on Wednesday. The company responded to an MP’s call for action following complaints about the company’s shale gas operations near Blackpool, UK, saying that it is trying to minimise disturbance to local communities.
Week in Numbers
2003: Local content rules were established in Brazil.
2005: Oil and gas companies needed local content certificates from their suppliers.
2012: State demands 60-65% of goods and 80% of services procured locally.
Source: Interfax
6: Companies interested in exploring Bulgarian section of the Black Sea.
3: Companies that lodged a formal application.
8: Maximum days before final decision.
Source: Bulgarian Energy Ministry
215 bcm: Gazprom exports in 2010.
221 bcm: Gazprom exports in 2011.
222 bcm: Gazprom exports in 2012.
Source: Gazprom
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