Need to know: Natural resources
Total will pay nearly $440m in fines and penalties after it was accused of bribing an Iranian official to win lucrative oil and gas projects.
The Times, 30th May 2013, p.36.
CNOOC eyes first foray into offshore Arctic oil drilling
China National Offshore Oil Corporation is to partner Iceland's Eykon Energy in an application for a licence to explore and produce oil and gas in Arctic waters offshore Iceland. If the application is successful and a licence is awarded, it would mark the Chinese company's first foray into offshore Arctic oil drilling, a new area the industry's biggest players are scrambling to enter in efforts to replenish reserves, but which has become increasingly controversial. While believed to hold vast petroleum reserves, green groups are opposed to drilling in the Arctic environment and investors are concerned about the risks and potential costs to a company in the event of an accident. CNOOC said in an emailed statement that the government of Iceland and Eykon Energy have invited CNOOC to take part in its offshore oil and gas exploration activity and the project is currently under negotiation.
5 June 2013. http://tinyurl.com/oqqrzta
Wood Group Mustang wins Dow pipeline contract
Wood Group Mustang has been awarded a contract by The Dow Chemical Company to provide services for construction of approximately 140 miles of ethane, ethylene, propane and propylene pipelines, associated interconnections, and station modifications between Dow Texas Operations in Freeport, Texas, and facilities at Mt. Belvieu, Texas. The pipelines and station upgrades are part of construction for a world-class ethylene unit, previously announced as part of Dow's comprehensive plan to further connect its US operations with cost-advantaged feedstocks available from increasing supplies of US shale gas. Wood Group Mustang will provide engineering, field services and construction management on the project through its Houston and Angleton, Texas offices.
DownStreamToday, 6 June 2013. http://tinyurl.com/nocpzce
Multi-billion dollar oil & gas investment for Reliance Industries
Reliance Industries Limited has announced that it plans to invest $26bn in India over the next three years. According to International Business Times, the petrochemicals, refining and oil and gas company wants to make the investment in order to expand key business areas. One of the areas Reliance hopes to expand through the investment is its energy production. By boosting production, the company can bring growth to India's economy at a time when foreign investments are declining, the source reported. Reliance is India's fourth-largest company by market value. Its energy unit's share of natural gas output from its US shale operations has reached more than 388M cubic feet per day, according to International Business Times.
PennEnergy, 7 June 2013. http://tinyurl.com/pky9hj5