2018's mantra will be to keep the focus on simpler wells. With investment down and competition up, companies will focus on newly proven plays and frontiers, and capturing new acreage for the longer term.
Mime Petroleum AS (together with its subsidiaries referred to as “Mime Petroleum” or “the Company”), a new independent development and production company established earlier this year by Blue Water Energy LLP (“BWE” or “Blue Water Energy”) and Sverre Skogen (Chairman and CEO), announces that they have partnered with Blackstone Energy Partners (“Blackstone”).
Rising oil prices have drawn more eyes to the offshore markets. There are signs of green shoots after a period of depressed sentiment that started in late 2014, pushing asset values downwards through 2016. VV's Fixed Age Values for a 5-year old Jack Up Rig has increased 36% from Jan 2017, when a vessel was worth $69.9 million, to $95.14 million today.
Chevron Corporation (NYSE:CVX) has announced a 2018 capital and exploratory spending program of $18.3 billion. This figure includes $5.5 billion for the company’s share of expenditures by affiliated companies.
Enpro Subsea has secured investment from EV Private Equity (EV) to grow its production optimization business into new and existing international markets and further develop the range of production optimisation and intervention technologies.
ArcLight Capital Partners announced that one of its affiliates has acquired a 26.5% non-operated interest in the Perdido Regional Host from BP Exploration & Production Inc. The Perdido Regional Host is the only deepwater production facility serving the Gulf of Mexico’s Perdido Foldbelt Trend, one of the most prolific and strategic plays in the Gulf of Mexico.
On December 26, a pipeline explosion disrupted flows from Waha Oil Company fields to the Es Sider terminal on Libya’s central coast.
Industry confidence has increased much faster than the oil price, as two-thirds of senior professionals globally plan to maintain or increase capital spending in 2018. 36% expect to increase investment in R&D and innovation - the highest level recorded in four years. Efficiency remains a priority, however, as half of professionals forecast increased cost control.
Downstream Markets Will Remain Strong
McDermott International, Inc. (NYSE:MDR) and CB&I (NYSE:CBI) have announced that the companies have agreed to combine in an all-stock transaction to create a premier fully vertically integrated onshore-offshore company, with a broad engineering, procurement, construction and installation ("EPCI") service offering and market leading technology portfolio.
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