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Drilling of the first production well has begun on the Maersk Oil-operated Culzean field in the UK. The well is the first of six production wells to be drilled on the high-pressure, high-temperature (HPHT) field, with continuous drilling activity planned over the next five years. First gas is expected to be produced from Culzean in 2019.

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ADIPEC to launch new program targeting cybersecurity

ADIPEC

Cyber threats and attacks against the oil and gas industry are becoming increasingly complex and sophisticated, targeting both IT and OT infrastructures. Industry experts are calling for continuous improvements to cybersecurity safeguards and protocols in oil and gas facilities in order to protect valuable company information and key operational equipment, as well as to maintain operations in a safe and secure manner. Recent figures from Cybersecurity Ventures show that spending on protection against cyber-attacks is forecast to be a market worth US$13.43 billion by 2019 in the Middle East and Africa region alone. Meanwhile, US-based ABIresearch forecasts global cybersecurity spending on oil and gas critical infrastructure to reach US$1.87 billion by 2018. “In 2016, there is an urgency for nations ...

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Burke: Positive indicators point to potential recovery first for shales; offshore must wait longer

The drilling industry is seeing some positive signals. One is that CAPEX reductions, a leading indicator for the industry, are starting to slow down, 
Thomas Burke, President and CEO of Rowan Companies and 2016 IADC Chairman, said at the IADC Houston Chapter Luncheon on 11 October.

In hindsight, the indicators of an impending downturn were clear back in 2014 or even earlier. Still, when it hit, the downturn caught most of the industry by surprise. This has caused massive disruptions as companies realized that their assumptions and projects were flat wrong, Thomas Burke, President and CEO of Rowan Companies, said at an IADC Houston Chapter luncheon on 11 October. Further, Mr Burke, who also serves as 2016 IADC Chairman, pointed to the difficulties that drilling contractors face in planning for their business. “When you have to make investments in expensive assets that are going to last a long time, it takes a lot of capital, and you have to make assumptions about what’s going to happen,” he said. “We have to make long-term decisions based on short-term oil prices.”

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ADIPEC 2016 to launch ‘Security in Energy’ program

ADIPEC

Experts are urging organizations in the oil and gas industry to adapt to an increasingly interconnected energy landscape by taking a streamlined and coordinated approach to security. Technology brings with it a growing concern of data and infrastructure protection that needs to be immediately addressed. The Middle East’s burgeoning security market is forecast to be worth US$34 billion by 2020, with more than 50% being spent on government, energy and critical infrastructure, according to a recent Frost & Sullivan report. Meanwhile, figures from MarketsandMarkets show that the overall critical infrastructure protection market in the Middle East will be worth $13.07 billion by 2018.

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ADIPEC 2016 to launch ‘Security in Energy’ program

ADIPEC

Experts are urging organizations in the oil and gas industry to adapt to an increasingly interconnected energy landscape by taking a streamlined and coordinated approach to security. Technology brings with it a growing concern of data and infrastructure protection that needs to be immediately addressed. The Middle East’s burgeoning security market is forecast to be worth US$34 billion by 2020, with more than 50% being spent on government, energy and critical infrastructure, according to a recent Frost & Sullivan report. Meanwhile, figures from MarketsandMarkets show that the overall critical infrastructure protection market in the Middle East will be worth US$13.07 billion by 2018.

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Barclays survey: 2017 spending poised to grow 3% to 8% at current prices

Market stocks default

A mid-year survey of more than 200 companies shows that global upstream spending is poised to grow in 2017 after consecutive years of declines. The Barclays Upstream Spending Survey estimated that spending will increase by approximately 3% to 8% at current oil prices. Large-cap E&P companies are expected to increase North American CAPEX by as much as 50% next year, although international oil companies (IOCs) – particularly those in the offshore sector – will still be very cautious in their spending.

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Troubled Brazil works to open pre-salt, ease regulatory restrictions

The Brava Star, QGOG Constellation’s ultra-deepwater drillship, can drill in waters as deep as 12,000 ft. The rig was delivered from Samsung Heavy Industries in 2015.

As of July, Petrobras had 39 floating rigs on contract in Brazil. That compares with 60 at the beginning of 2015 and 42 at the end of that year, according to Rudimar Lorenzatto, E&P Executive Manager for the Brazilian national oil company. Despite this fall in activity, Petrobras remains heavily focused on the pre-salt. Of the 60 wells planned for 2016 and another 60 planned for 2017, 60% are expected to be in the pre-salt areas. “Pre-salt is the main focus in the future for Petrobras’ business plans,” Mr Lorenzatto said.

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Shale, tight gas production from Argentina’s Neuquén Basin on the rise, while Venezuela suffers dramatic production declines

Figure 1: Tight gas production from Argentina’s Neuquén Basin more than doubled between January 2014 and January 2016, according to Wood Mackenzie. The Lajas and Mulichinco formations were responsible for the bulk of tight gas production during this period. Overall, there are 11 tight developments under way in the basin, including Total’s drilling program in the Aguada Pichana block and YPF and Petrolera Pampa’s $150 million investment in the Rincón del Mangrullo block.

While much of the E&P attention in Latin America is focused on Brazil’s pre-salt, Argentina and Venezuela both remain key E&P players on the continent, as well. In Argentina’s Neuquén Basin, tight gas production has already doubled since 2014, and production from the Vaca Muerta shale formation is expected to double between 2015 and 2018, according to Wood Mackenzie.

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