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Chevron announces $20 billion capital and exploratory budget for 2019

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Chevron has announced a 2019 organic capital and exploratory spending program of $20 billion. “Our 2019 budget supports a robust portfolio of upstream and downstream investments, highlighted by our world-class Permian Basin position, additional shale and tight development in other basins and our major capital project at TCO in Kazakhstan,” Michael K. Wirth, Chairman and CEO, said. “Our investments are anchored in high-return short-cycle projects, with more than two-thirds of spend projected to realize cash flow within two years.” “We expect to continue to deliver steady production growth, enabling continued free cash flow that underpins our strong dividend and share repurchase program,” Mr Wirth added. Details of the 2019 Capital and Exploratory Spending Program include: Chevron 2019 Planned Capital & Exploratory ...

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USGS identifies largest continuous oil and gas resource potential ever

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The US Department of the Interior announced the Wolfcamp Shale and overlying Bone Spring Formation in the Delaware Basin portion of Texas and New Mexico’s Permian Basin province contain an estimated mean of 46.3 billion bbl, 281 trillion cu ft of natural gas, and 20 billion bbl of natural gas liquids, according to an assessment by the US Geological Survey (USGS). This estimate is for continuous (unconventional) oil, and consists of undiscovered, technically recoverable resources. “Christmas came a few weeks early this year,” Ryan Zinke, US Secretary of the Interior, said. “American strength flows from American energy, and as it turns out, we have a lot of American energy. Before this assessment came down, I was bullish on oil and gas production in the United States. Now, I ...

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Quick plugging of shut-in wells at Valhall

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Through utilization of the PWC (Perforate, Wash & Cement) plug and abandonment method (P&A) on the Valhall field, HydraWell has contributed towards Aker BP executing its plugging program significantly quicker than planned.  Since May 2017, HydraWell has contributed towards plugging 10 shut-in wells on the original drilling platform (DP) at the Valhall field centre. Compared to the first P&A phase on the DP platform from 2014 to 2016, Aker BP has reduced the average time per well by 50% in the latest phase, despite a rise in the complexity of the wells towards the end of the campaign. Plugging wells on the DP platform is a key part of the work to modernize the Valhall field centre. The three original ...

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Rystad Energy: What’s at stake in Vienna

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US production at $50 WTI levels would remove only 0.4 million BPD of the looming 1.5 million BPD surplus in the balances that Rystad Energy, an independent energy consulting services and business intelligence data firm, forecasts for 2019 in a status quo scenario. “We believe a cut announcement that effectively removes anything less than 1 million BPD of 2019 supply would be interpreted negatively by the market,” Bjornar Tonhaugen, Head of Oil Market Research at Rystad Energy, said. Mr Tonhaugen says the market is now at the mercy of OPEC and the 10 non-OPEC countries that have previously agreed to curb production. “To surprise the market in a bullish fashion, we believe cuts approaching 2 million BPD would have to be announced. Should OPEC+ announce a ...

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National Oilwell Varco to outfit Equinor offshore drilling rig fleet with wired drillpipe

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National Oilwell Varco (NOV) has announced the signing of a frame agreement with Equinor for the provision of IntelliServ Wired Drillpipe to outfit their global fleet of offshore drilling rigs. This agreement is based on the success of recent field deployments of version two of Wired Drillpipe that have demonstrated the value of high-speed telemetry in multiple applications across their fleet of working rigs. The initial agreement is for three and a half years with five, two-year extensions. “We are delighted to see accelerated adoption of NOV’s proprietary Wired Drillpipe in the global drilling market,” Clay Williams, Chairman, President and CEO of NOV, said. “As the industry places further emphasis on drilling automation and optimization, high-speed telemetry, which allows data to be ...

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North Sea operator speeds up P&A campaign by running Churchill’s Mud Shear Sub

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Churchill Drilling Tools, a leading oilfield service company specializing in drilling innovation, has revealed that one of its specialist tools, the Mud Shear Sub, significantly improved the mud conditioning process for a major North Sea operator during a recent P&A campaign; so much so the operator began subsequent retrieval operations ahead of schedule. Saving an average of one hour for every 1,000 bbl of mud sheared, the operator using the Mud Shear Sub introduced an additional shearing point to the circulating system across three separate wells. This sped up fluid conditioning, displacing sea water to jetting fluid, before conditioning mud through the tool. Historically, the operator had spent significant time displacing the wells to jetting fluids and so were looking for ...

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3T Energy Group opens new China office

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3T Energy Group has opened a new China office after winning several new contracts in the territory for its training and technology solutions, which are helping the energy sector work safer, smarter and more efficiently. The new office, which is located in TEDA, Tianjin, in the heart of the Chinese oil and gas industry, will become a base for 3T Energy Group to service its customers in the region and to build further new relationships across China.    Over the past 12 months, 3T Energy Group has been working with some of China’s largest oil and gas companies to drive continuous improvement and greater efficiencies.  As well as helping with the adoption of internationally recognized training standards and accreditations, 3T ...

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DEA to acquire Sierra Oil & Gas in Mexico, including stake in world class Zama discovery

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DEA Deutsche Erdoel AG (DEA) has signed an agreement to acquire Sierra Oil & Gas, a leading independent Mexican oil and gas company. Sierra holds interests in a portfolio of six exploration and appraisal blocks in Mexico, including the world-class Zama discovery. The transaction is an important milestone in DEA’s international growth strategy, fulfilling DEA’s objective of building a significant portfolio in the Mexican upstream market. DEA will add Sierra’s acreage to its existing portfolio of operated production and exploration blocks to become one of the country’s largest acreage holders. Once completed, it will be the largest upstream M&A transaction in the country since the liberalization of the petroleum sector in 2013. “The acquisition of Sierra will allow DEA to achieve ...

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Maersk Drilling and Seapulse enter alliance to execute global exploration drilling program

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Maersk Drilling and Seapulse have signed a master alliance agreement (MAA) under which Maersk Drilling will provide fully integrated services, including provision of drilling rigs, related drilling services, well services, and other goods and services, for a global offshore oil & gas exploration drilling program of 12 wells. The program is expected to commence in the middle of 2019 with an expected duration of 490 days. The program spans shallow water and deepwater wells in several regions requiring a combination of jackups, semi-submersibles, and drillships. The specific rigs to be deployed during the course of the program will be determined on basis of rig suitability and availability. The fully integrated services will be provided on the basis of market rates with an incentive payment scheme ...

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Deep Casing Tools launches unique technology to market

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Following a rigorous research and development program, Aberdeen-headquartered casing and completion technology business, Deep Casing Tools, has launched a completely new, unique tool to the well construction market. The mechanically lockable Drill Pipe Swivel has been developed, tested and brought to market by the firm’s in-house engineering team. Using their extensive industry knowledge and experience, the team have created a unique and innovative tool which addresses the challenges inherent in landing completions and liners at target depth. The patent pending tool has been robustly tested across a range of settings and circumstances. In addition to life and workshop testing, the Drill Pipe Swivel has also been tested in tension, under compression, and under a severe dogleg, and for extended periods of time. Throughout this process, the ...

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