TPT September 2007

Oil & Gas News

©Omar Ariff. Image from BigStockPhoto.com

■ Shell UK Ltd has announced that, together with the ExxonMobil subsidiary Esso Exploration and Production UK Ltd, it would market its equity interests in a number of northern North Sea assets on an open, competitive basis. Shell produces some 350,000 barrels of oil equivalent per day (boe/d) in the UK. The assets announcement of June 14 will affect some 25,000 to 30,000 boe/d. Shell UK Ltd is operator in the UK sector of the North Sea on behalf of Shell, Esso, and others. According to Tom Botts, executive vice president, Shell Exploration & Production in Europe, relinquishment of the “relatively high-cost assets” reflects active management of the company’s European portfolio. Shell, he said, “remains committed to Europe and the North Sea as a core business area and holds a key strategic position in security of energy supply to the UK.” ■ Ecuador, the fifth-largest oil producer in South America, is conducting a review to determine whether private oil companies have breached their contracts with the nation. Alberto Acosta, the oil minister, said on June 7 that a nine- member committee of energy officials and specialists is examining exploration and development contracts let by Ecuador. These are mostly held by foreign oil companies including Petrobras of Brazil and Repsol-YPF of Spain. “[The] committee will look into all contracts,” Mr Acosta said. “It will review all we need to review and we are seeking transparency.” ■ Venezuela has signed a preliminary agreement with Belarus to further develop two mature Venezuelan oil fields, as reported on the website of the state-owned oil company Petróleos de Venezuela (PDVSA) in mid-July. Writing from Caracas for Dow Jones Newswires (July 17), Peter Millard said that one of the fields is located in eastern Venezuela; the other, Block 10 of Lago Medio, in Lake Maracaibo in the west. Officials from PDVSA and Belarus will form a technical team to do a feasibility study for a joint venture to commercially exploit the fields. Mr Millard noted that Venezuela has been making an effort to improve economic and political ties with landlocked Belarus, in Eastern Europe. The two countries are also planning a joint- venture project to develop an area of the Orinoco river basin in Venezuela and Colombia, containing the world’s largest hydrocarbons deposits.

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S eptember /O ctober 2007