ExxonMobil to triple production in Permian basin by 2025

ExxonMobil has unveiled plans to enhance total daily production up to three times by 2025 from its operations in the Permian basin in West Texas and New Mexico.

Through the plan, ExxonMobil intends to achieve daily production of more than 600,000 barrels of oil equivalent, as well as increase tight oil production from the Delaware and Midland basins by five times in the same period.

Furthermore, the company is planning to invest more than $2bn on transportation infrastructure in order to support its Permian operations.

The proposed capital investments are driven by recent changes in the US corporate tax rate.

Chesapeake Energy to cut 400 jobs to reduce debt load

Chesapeake Energy has announced its plans to axe 400 jobs, equal to around 13% of its workforce as part of its efforts to cut down costs.

An email sent by the company’s Chief Executive Doug Lawler to employees indicates that the job cuts are mostly restricted to the headquarters in Oklahoma City.

As of September, the company employed around 3,250 people.

Suncor Energy begins production at Fort Hills project in Canada

Suncor Energy has commenced production at the Fort Hills project located around 90km north of Fort McMurray, Canada.

The company will continue to ramp up production at Fort Hills in an effort to reach 90% capacity by the end of this year.

The project has a capacity of about 194,000 barrels per day (bblspd), of which Suncor has claims to around 103,000bblspd.

Having brought the first of three trains from secondary extraction online, the company intends to ramp up production on the train through the first quarter.

McDermott gets FTC clearance for $6bn merger with CB&I

Engineering, procurement, construction and installation (EPCI) services company McDermott International has secured an approval from the US Federal Trade Commission (FTC) for its previously announced $6bn merger with CB&I.

FTC granted an early termination of the waiting period under the 1976 Hart-Scott-Rodino Antitrust Improvements Act, regarding the proposed combination.

Last month, the companies reached a merger agreement to create a fully vertical integrated onshore-offshore company.

ConocoPhillips and Statoil to fund new downhole X-ray technology

ConocoPhillips and Statoil Petroleum have reached a joint agreement to fund the development of a new downhole X-ray technology that has the potential to improve the evaluation of cement integrity in oil and gas wells.

Known as the VR360 Diagnostic Cement Evaluation Tool, the new technology is focused on producing a full 3D cement map, in addition to complementing conventional ultrasonic measurements.

The development agreement, which was signed with oilfield service company Visuray Technology, comprises a joint industry project (JIP) aimed at delivering several downhole prototype tools with a range of external diameters.

California takes Trump administration to court over fracking rule repeal

California has filed a lawsuit against the Donald Trump administration over its decision to repeal Obama-era regulations related to hydraulic fracturing on federal lands.

The development comes after the US Department of Interior’s Bureau of Land Management (BLM) annulled the 2015 final rule on fracking last month, in line with Trump’s goal to scrap federal regulations he considers to be detrimental to economic growth and energy development.

Fracking involves the use of high-pressure injection of water and chemicals to release oil and gas trapped inside rock formations underground.

Twister partners with Petronas for joint development programme

Dutch engineering company Twister has launched a joint development programme with Petronas to use Twister technology for the monetisation and processing of acid gas fields containing large amounts of CO₂.

Under the programme, the companies will develop, fabricate and test a skid-mounted Crystallizer Vessel for qualification.

The test is intended to confirm the functionality and prove the concept of melting CO₂ solids, as well as produce liquid CO₂ ready for reinjection.

Cepsa and Sonatrach to operate RKF oilfield in Algeria

Cepsa and Sonatrach have signed a concession contract with Algeria’s state oil licensing body Alnaft for the operation of the Rhoude el Krouf (RKF) oilfield located in the Berkine basin.

The new 25-year agreement includes the significant redevelopment of the mature oilfield following 19 years in production.

Expected to involve an investment of $1bn, the programme aims to increase crude production from the field significantly by deploying new hydrocarbon recovery techniques.

It is also expected to generate between 1,000 and 1,500 jobs during the peak construction stage.

Zenith Energy to buy terminal asset in Germany

Zenith Energy, a Houston-based private equity backed liquids and bulk terminalling company, has agreed to buy liquids storage terminal asset in Hamburg, Germany, from Royal Dutch Shell (Shell).

The deal is slated to complete in the first half of this year. Further terms of the deal have not been divulged.

The facility, located on 55 ha, is situated in Hamburg port, which is the country’s largest seaport and one of the largest container ports in Europe.

ONGC to acquire majority stake in HPCL for $5.78bn

India’s Oil and Natural Gas (ONGC) has signed an agreement to acquire a 51.11% stake of government-owned refiner Hindustan Petroleum (HPCL) in a deal valued at $5.78bn.

The acquisition forms part of the government’s plan to strengthen oil companies by combining various public sector enterprises and enable them to tackle higher risks, avail economies of scale, create shareholder value and take higher investment decisions.

Under the share purchase agreement, the company will purchase 778,845,375 equity shares of HPCL.

ONGC will pay Rs473.97 per HPCL share, a premium of nearly 14% on the current market price.