Drilling & production

China’s economy faces a strong headwind from power shortages and rising coal costs. Ng Weng Hoong assesses the threats.

Kawasaki Heavy Industries (KHI) has announced that it will test its new technology at the world-leading European Marine Energy Centre (EMEC) in Orkney.

The energy security strategies of states across the region, if not working in cooperation with each other, could have severe geopolitical and economic repercussions in a region where high food and oil prices threaten economic recovery and human security.

Fluor Offshore Solutions unit as been awarded a FEED contract by Abu Dhabi Marine Operating Company (ADMA-OPCO) for new offshore facilities located at the Nasr Field.

Wood Mackenzie’s Near-Term Market Outlook cautions of falling metallurgical coal prices from now to Q4 2012, dropping from the current quarterly price of US$ 285/t for premium metallurgical coal to under US$ 240/t.

The Clough AMEC joint venture has been awarded a two-year contract extension by ConocoPhillips to provide operations and maintenance services to the Bayu Undan facilities located in the Timor Sea. The contract extension has an estimated value of AU$100 million.

Saipem has been awarded new E&C Offshore contracts worth US$ 1.5 billion.

Petrel resources PLC has been awarded two offshore exploration blocks in the Irish Atlantic margin in bid to boost native Irish energy resources.

BP has reached agreement with Anadarko Petroleum Company to settle all claims between the companies related to the Deepwater Horizon accident. Anadarko, which had a 25% interest in the Macondo well, and BP have concluded that entering into a settlement is in the best interest of the parties to resolve pending disputes.

The 38 in. gas pipeline that links the block 18 gas field to the Balhaf terminal on the Gulf of Aden was sabotaged in Yemen on October 15th. The explosion occurred at in a desert region 75 km north of the Balhaf terminal.

Leighton Offshore has been awarded a US$ 518 million contract which forms part of the Crude Oil Export Facility Reconstruction Project (the ‘Sea Line Project’), which is financed and supported through the Japanese Official Development Assistance (ODA) Loan by Japan International Cooperation Agency (JICA).

Ophir Energy Plc has offered US$186.3 million to acquire Dominion Petroleum. The acquisitions will reinforce Ophir’s position in its East Africa play where it has already made three consecutive deepwater discoveries.

A consortium of Ecofys, Fugro and Real NewEnergy has started developing the Poseidon Atlantic centre, the first North American offshore wind turbine test centre, off the eastern Atlantic shore of the US state of Virginia

Peabody Energy and ArcelorMittal have announced that they have received clearance from the Chinese Ministry of Commerce to proceed with their AU$16/share offer for all outstanding shares of Macarthur Coal Ltd.

Latin America will account for half of the projected floating production Capex over the next five years according to a new Douglas-Westwood report.