October’s top stories: Metgasco signed new agreement, US Silica Holdings planned to build second frac sand mine and plant in West Texas

Metgasco signed farm-in agreement over exploration well in Australia

Metgasco signed an agreement with Senex Energy and Cooper Energy to farm-in to the Frey-1 Well Area within PEL93 in the South Australian Cooper Basin for a 20% working interest.

The decision to farm-in will depend on the outcome of drilling and testing.

The Frey prospect is said to have the potential for stacked pay in multiple formations and is a four-way dip-closed anticline, evident on all stratigraphic levels.

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US Silica planned to build new frac sand mine and plant to serve Permian Basin

US Silica Holdings unveiled plans to build a second frac sand mine and plant in West Texas to serve oil and gas clients in the Permian Basin.

On a 3,500-acre site located 60m north of Midland, near Lamesa, Texas, the new $150m facility is expected to produce around 2.6 million tonnes per annum.

The development is part of the company’s previously announced plan to add eight to ten million tonnes of new Brownfield and Greenfield capacity to meet growing frac sand demand.

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BP planned to add six new vessels to its fleet to support global LNG portfolio

BP made plans to add six new liquefied natural gas (LNG) tankers to its shipping fleet in a bid to support its expanding global LNG portfolio and cater to the increasing demand for energy sources.

The tankers are expected to be delivered in the next two years and will enable the company to meet its service obligations related to multiple international LNG projects, including the liquefaction contract with the Freeport LNG facility in Texas over a period of 20 years.

In connection with the procurement of the six tankers, the company has secured a $1bn loan from its finance partners KMarin and ICBC Leasing.

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APPEA warned of jobs losses in Queensland, Australia

The Australian Petroleum Production and Exploration Association (APPEA) cautioned that any restrictions amounting to prohibiting gas exploration and development in Queensland’s Cooper Basin would prove detrimental to the local job market.

The industry body expressed concerns about potential job losses and the resultant negative impact on investment in the sector, as well as the possibility of increased energy costs for households and businesses.

This comes amidst reports that the Queensland Government is planning to bring new regulatory measures to ban gas exploration and development in parts of the Cooper Basin.

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Angus Energy secured final approval for Brockham field in UK

Angus Energy received final approval for its field development plan (FDP) addendum at the Brockham Oil Field (Production License PL235) in the UK from the Oil and Gas Authority (OGA).

The approval represents the final regulatory consent required to start production from the Kimmeridge layers in well BR-X4Z.

Production at the X4Z Well will initially begin from a 200m naturally fractured section of a 385m thick, Kimmeridge interbedded shale and limestone layer.

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LINN Energy agreed to sell properties in Williston Basin, US, for $285m

Frontera Energy Corporation agreed to acquire the remaining 36.36% stake in Pacific Midstream from International Financial Corporation (IFC) for a cash consideration of $225m.

Pacific Midstream holds a 43% interest in Oleoducto Bicentenario de Colombia, a 35% stake in Oleoducto de los Llanos Orientales, and 100% stake in Petroelectrica de los Llanos.

The transaction will increase Frontera Energy’s stake in Pacific Midstream to 100% and will strengthen its products and services portfolio.

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Gazprom and Bolivia discussed prospects overuse of natural gas as vehicle fuel

Russian firm Gazprom held discussions with the Bolivian Government to explore cooperation over potential prospects regarding the use of natural gas as a vehicle fuel and small-scale LNG.

The negotiations were part of a working meeting between Gazprom management committee deputy chairman Vitaly Markelov and Bolivia Minister of Hydrocarbons and Energy Luis Alberto Sanchez at the seventh St. Petersburg International Gas Forum held in Russia.

The parties also focused on the Incahuasi field, emphasising on the active cooperation with regard to its development.

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Chaparral Energy agreed to offload EOR assets in US for $170m

Exploration and production company Chaparral Energy signed an agreement to divest its North Burbank and Texas Panhandle enhanced oil recovery (EOR) assets in the US for $170m to an undisclosed buyer in order to enhance its liquidity.

The agreement also contains contingent payments to Chaparral through December 2020.

The company received an $11.9m performance deposit towards the sale.

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Shale gas development in NT could generate $5.8bn, says report

Revoking the moratorium on onshore unconventional shale gas industry in the Northern Territory (NT) could lead to income generation of between $937m and $5.8bn over 25 years, according to an independent report.

Hydraulic Fracturing in the NT remains banned until the findings of an independent scientific inquiry, which was commissioned last year, are submitted.

The enquiry released an independent economic impact assessment of a potential onshore unconventional shale gas industry in the NT, conducted by ACIL Allen Consulting.

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Petrofac received new contract to develop Iraq field

Oilfield services provider Petrofac secured a new contract to provide Project Management Consultancy (PMC) services for the Halfaya Contract Area (Halfaya) in southern Iraq.

The $30m contract was awarded by PetroChina International Iraq FZE (PetroChina).

Under the contract, Petrofac’s Engineering and Production Services (EPS) East business will undertake project management services for five years.