Wednesday, 15 March 2017

Energean signs Concession Contract for two offshore blocks, Montenegro - 15/03/2017

Energean signs Concession Contract for two offshore blocks, Montenegro

Energean Oil & Gas (“Energean") is pleased to announce that it has signed an exploration and production Concession Contract with the State of Montenegro covering offshore blocks 4219-26 and 4218-30, following approval from the Parliament of Montenegro. The contract was signed by Mrs. Dragica Sekulic, Montenegro’s Minister of Economy, and Mathios Rigas, Chairman and CEO of Energean Group, at a ceremony held earlier today in Podgorica.

Total investment over an exploration period of seven years will be US$ 19 million, including the funding of a new 3D seismic survey, geophysical and geological studies, and the drilling of one well. The two blocks are located offshore at a water depth of 50-100 meters, close to the Montenegrin coast in the vicinity of the town of Bar. Energean plans to begin the 3D seismic acquisition during the first quarter of 2018.

The Eastern Adriatic has been substantially underexplored to date, despite having similar geology to the wider Adriatic Zone, which is well known for its prolific hydrocarbon systems in Italy, Albania and Croatia, and has been a significant oil and gas producing region for over 50 years. This latest announcement further underpins Energean’s commitment to seeking to open up the oil and gas opportunities in this highly promising territory.

Energean Group Chairman & CEO, Mr. Mathios Rigas, commented:

“I am delighted to sign this Concession Contract, which marks a significant day for Energean and our continued growth, as we enter the highly promising Adriatic region. Whilst a number of major oil and gas companies left the area during the period of sustained low oil prices, Energean remained committed to pursuing the development of the region, and is now extremely well placed to take advantage of this commitment and focus.    

“We believe the geology to be similar to that in Western Greece, where we have been exploring since 2014 (onshore Ioannina), have a Field Development Plan in progress offshore West Katakolo, and are ready to sign a new contract for a further block (onshore Aitoloakarnania). 

“Furthermore, our strong track record of operating in environmentally sensitive areas, successfully operating the Prinos oil field in Northeastern Greece, which has been producing oil since 1981, ideally places us to drive through this project for the benefit of the local economy and Montenegrin people.”

Thursday, 9 March 2017

Digitalization helps companies thrive in ‘new normal’ of low oil prices - 09/03/2017

Digitalization helps companies thrive in ‘new normal’ of low oil prices

ABB shows how digitalization can transform oil, gas and chemical operations, bringing greater profitability in tough times.

ABB today releases a white paper detailing how existing market dynamics and challenges are forcing a massive change in the oil, gas and chemical (OGC) industries’ approach to technology. Quoting from a range of independent sources, ABB believes that the current downturn is a forewarning of a new status quo to which industry players must adapt. 

“Despite heavy cost-cutting by way of rig shutdowns and headcount reductions, operational savings have only clawed back a modest amount of losses triggered by the oil price crash,” says Per-Erik Holsten, managing director, oil, gas and chemicals business unit, ABB. “Reports  we’ve seen suggest that only 23% of revenue losses have been offset by cuts in OPEX .”

ABB identifies four key tenets which OGC executives are encouraged to embrace in order to optimize performance and ensure long-term viability:
- Deploying enterprise-wide digitalization and connectivity

- Bringing together information and operational technologies

- Pursuing simplification and standardization wherever feasible

- Having CEO leadership and sponsorship of a digitally-focused approach.

“Network-connected assets can significantly reduce costs, shorten schedules and minimize risk,” says Holsten. “Because we embrace all aspects of electrical, instrumentation, control and  telecoms, we are the only major player able to help customers achieve a completely integrated and digital performance-enhancing solution. In fact, we’ve demonstrated time and again our ability to deliver 20 to 30 percent CAPEX and OPEX savings while simultaneously improving uptime and extending asset lifetimes by 20 years.” 

Continues Holsten, “Our approach to digitalization works, and this white paper shares what works and how it works to a wider audience.”

The implications for each segment –upstream, midstream and downstream– and a roadmap for creating a fully digitalized hydrocarbon value chain is presented for both greenfield and brownfield situations. Case studies are also provided.