March’s top news stories

WPX Energy completes $2.5bn acquisition of Felix Energy

US-based energy producer WPX Energy completed its acquisition of Delaware Basin-based operator Felix Energy.

WPX first announced this $2.5bn acquisition in December.

Felix Energy had been producing about 60,000 barrels of oil equivalent per day (boepd).

Woodfibre LNG delays project start to 2021 amid Covid-19 pandemic

Developers of the Woodfibre LNG export project in British Columbia are delaying the start of construction to 2021 due to the Covid-19 pandemic.

The project is a proposed liquefied natural gas (LNG) processing and export facility developed by Woodfibre LNG, a Pacific Oil & Gas Company.

Canadian Broadcasting Corporation (CBC) cited project spokesperson Rebecca Scott as saying that the substantial construction expected to start this summer would not take place until the middle of next year.

SAP launches cost-reduction solution for oil and gas sector

German software firm SAP has launched a new solution for upstream oil and gas companies to help streamline processes and costs.

The company launched the new solution in collaboration with professional services firm Accenture.

The SAP S/4HANA Cloud platform is designed to help oil and gas companies to reduce operational and ownership costs, and present new revenue opportunities.

Fire at Petronas-Aramco oil refining complex claims five lives

A fire and explosion at an oil refining complex owned by Petronas and Saudi Aramco in Malaysia’s southern state of Johor killed five people and injured one.

Reuters reported that this incident occurred at the diesel hydrotreater unit in the Pengerang Integrated Complex (PIC).

It is the second fire at the $27bn Petronas Aramco PIC in the last year.

EOG launches cost-cutting programme in response to Covid-19

Europa Oil & Gas Holdings (EOG) announced plans to cut costs in the wake of the coronavirus (Covid-19) pandemic, stock market volatility, and the oil price crash.

EOG noted that it aims to conduct a comprehensive review and a phase of cost reductions across the company in order to retain enough cash to fund current and upcoming activity, including the Wressle field development project.

Farm-outs will continue to be sought, while work programmes in Ireland and Morocco are due to be reduced.

Energy Transfer proceeds with Lake Charles LNG project as Shell exits

Energy Transfer will take over project development of the proposed Lake Charles liquefied natural gas (LNG) export terminal after Royal Dutch Shell decided to exit the project.

The proposed large-scale LNG export facility is located in Lake Charles, Louisiana, US.

It is expected to have three LNG trains with a total liquefaction capacity of 16.45Mtpa to export US natural gas to customers in Asia, Europe and the Americas.

Rosneft sells Venezuelan assets to Russian company

Oil producer Rosneft is set to terminate its operations in Venezuela and sell the assets linked to its operations in the country to an undisclosed company owned by the Russian Government.

The move comes as the US Government increased the pressure on Venezuelan president Nicolas Maduro’s administration, including imposing sanctions on Rosneft Trading and TNK Trading International in Switzerland.

Rosneft finalised an agreement with the Russian Government-owned firm to sell all of its interest in its Venezuelan businesses. These include joint ventures (JVs) of Petromonagas, Petroperija, Boqueron, Petromiranda and Petrovictoria.

Equatorial Guinea waives fees for oil and gas sector due to Covid-19

Oil producer Equatorial Guinea announced that it will abolish fees for oil and gas service companies operating within the country.

This is the first step the country has taken to support the oil and gas sector following the oil price crash caused by the Covid-19 outbreak.

Equatorial Guinea is taking all necessary steps to support its service industry in order to explore other measures for upstream oil and gas operators, as well as ongoing projects currently underway.