2012/11/15  BP                      ブログ  http://blog.knak.jp/2012/11/bpdeepwater-horizon.html

BP Announces Resolution of All Criminal and Securities Claims by U.S. Government Against Company Relating to Deepwater Horizon Accident

- Resolution of all criminal claims with Department of Justice includes $4 billion paid in installments over a period of five years
- Resolution of all securities claims with Securities and Exchange Commission includes $525 million paid in installments over a period of three years
- Existing $38.1 billion charge against income to increase by approximately $3.85 billion
- BP is prepared to vigorously defend itself against remaining civil claims
水質汚染防止法に基づく民事訴訟や天然資源の損害賠償、過去の和解に含まれない個人による請求は対象外

BP today announced that it has reached agreement with the United States government, subject to court approval, to resolve all federal criminal charges and all claims by the Securities and Exchange Commission (SEC) against the company stemming from the Deepwater Horizon accident, oil spill, and response.

“All of us at BP deeply regret the tragic loss of life caused by the Deepwater Horizon accident as well as the impact of the spill on the Gulf coast region,” said Bob Dudley, BP’s Group Chief Executive. “From the outset, we stepped up by responding to the spill, paying legitimate claims and funding restoration efforts in the Gulf. We apologize for our role in the accident, and as today’s resolution with the U.S. government further reflects, we have accepted responsibility for our actions.”

In eliminating the possibility of any further federal criminal charges against the company based on the accident, BP has taken another significant step forward in removing legal uncertainty and can now focus more fully on defending itself against all remaining civil claims.

“We believe this resolution is in the best interest of BP and its shareholders,” said Carl-Henric Svanberg, BP’s Chairman. “It removes two significant legal risks and allows us to vigorously defend the company against the remaining civil claims.”

TERMS OF RESOLUTION

As part of the resolution, BP has agreed to plead guilty to 11 felony counts of Misconduct or Neglect of Ships Officers relating to the loss of 11 lives; one misdemeanor count under the Clean Water Act; one misdemeanor count under the Migratory Bird Treaty Act; and one felony count of obstruction of Congress. This resolution is subject to U.S. federal court approval.

Thirteen of the 14 criminal charges pertain to the accident itself and are based on the negligent misinterpretation of the negative pressure test conducted on board the Deepwater Horizon. BP acknowledged this misinterpretation more than two years ago when it released its internal investigation report. Today’s agreement is consistent with BP’s position in the ongoing civil litigation that this was an accident resulting from multiple causes, involving multiple parties, as found by other official investigations. The remaining criminal count pertains to two BP communications made to a member of Congress during the spill response about flow rate estimates. As part of its resolution of criminal claims with the U.S. government, BP will pay $4 billion, including $1.256 billion in criminal fines, in installments over a period of five years. BP has also agreed to a term of five years’ probation.

Under the resolution with the Department of Justice (DOJ), a total of $2.394 billion will be paid to the National Fish & Wildlife Foundation (NFWF) over a period of five years. In addition, $350 million will be paid to the National Academy of Sciences (NAS) over a period of five years.

Pursuant to the terms of the plea agreement, BP has also agreed to take additional actions, enforceable by the court, to further enhance the safety of drilling operations in the Gulf of Mexico. These requirements relate to BP’s risk management processes, such as third-party auditing and verification, training, and well control equipment and processes such as blowout preventers and cementing. In addition, BP has agreed to several initiatives with academia and regulators to develop new technologies related to deepwater drilling safety.

The resolution also provides for the appointment of two monitors, both with terms of four years. A process safety monitor will review, evaluate and provide recommendations for the improvement of BP’s process safety and risk management procedures concerning deepwater drilling in the Gulf of Mexico. An ethics monitor will review and provide recommendations for the improvement of BP’s Code of Conduct and its implementation and enforcement.

Under U.S. law, companies convicted of certain criminal acts can be debarred from contracting with the federal government. BP has not been advised of the intention of any federal agency to suspend or debar the company in connection with this plea agreement. BP will continue to work cooperatively with the debarment authority.

In its resolution with the SEC, BP has resolved the Commission’s Deepwater Horizon-related claims against the company under Sections 10(b) and 13(a) of the Securities Exchange Act of 1934 and the associated rules. BP has agreed to a civil penalty of $525 million, payable in three installments over a period of three years, and has consented to the entry of an injunction prohibiting it from violating certain U.S. securities laws and regulations. The SEC’s claims are premised on oil flow rate estimates contained in three reports provided by BP to the SEC during a one-week period (on April 29 and 30 and May 4, 2010), within the first 14 days after the accident. This resolution is subject to U.S. federal court approval.

“Since the spill, we have worked hard to rebuild confidence in the company,” said Mr. Dudley. “We take seriously not only our commitment to safety and operational excellence but also our communications with stakeholders, including the public, the government and our investors.”

FINANCIAL IMPLICATIONS OF RESOLUTION

The aggregate amount of the resolution is approximately $4.5 billion, with payments scheduled over a period of six years. As of the end of September 2012, BP’s financial statements recorded a charge taken against pre-tax income in relation to the accident and oil spill of $38.1 billion. This charge included $525 million provided for the SEC settlement. Today’s resolution is expected to result in an increase of approximately $3.85 billion to the $38.1 billion charge taken against income as of the end of September. BP’s financial statements as of the end of December 2012 will reflect this additional charge, as well as any other adjustments arising during the fourth quarter. It is anticipated that the cash outflows can be met within BP’s current financial framework. A summary payment schedule is attached to this release.

LOOKING FORWARD

BP will continue to vigorously defend itself against all remaining civil claims and to contest allegations of gross negligence in those cases. The remaining claims include: federal civil claims, including those arising under the Clean Water Act; federal and state Natural Resource Damages claims; private civil claims pending in MDL 2179 that were not covered by the settlement with the Plaintiffs’ Steering Committee (PSC); private securities claims pending in MDL 2185; state economic loss claims; and miscellaneous private civil claims pending in other federal and state courts. BP believes that today’s agreement is consistent with its legal position that it was not grossly negligent. All the pleas related to the accident itself are based on no more than negligent conduct.

“From the outset, we made a commitment to clean up the spill and pay legitimate claims – and we’ve been fulfilling that commitment ever since,” said Mr. Dudley. “As we move forward, we are preparing to defend ourselves in court on the remaining claims. We are open to settlements, but only on reasonable terms.”

A SAFER, STRONGER BP

BP has taken significant steps to further enhance safety and risk management throughout its global operations. It launched an internal investigation immediately after the accident, publicly released the results, and has been implementing all 26 of the investigation's recommendations. BP has also, among other things, made key leadership changes, reorganized its upstream business, created a centralized Safety and Operational Risk organization, and adopted new deepwater drilling standards in the Gulf of Mexico that exceed current regulatory requirements. BP has shared what it has learned with industry and regulators around the world.

“We are committed to building a safer, stronger BP,” said Mr. Svanberg. “This work did not begin with the Deepwater Horizon accident and will not end with today’s resolution.”

Over the past five years, BP has invested more than $52 billion in the United States – more than any other oil and gas company, and more than it invests in any other country where it operates. The company employs 23,000 Americans and supports nearly a quarter of a million American jobs.

On top of this business investment, BP has to date spent more than $14 billion in operational response and clean-up costs. BP continues to monitor the Gulf and its shoreline, and the company has supported regional tourism, promoted Gulf seafood, and committed $1 billion to early restoration projects. BP also quickly set up a process to pay all legitimate claims and established a $20 billion Trust to assure Americans that the resources to pay claims, settlements, and other costs would be there. To date, BP has paid more than $9 billion to individuals, businesses and government entities and has already agreed to a settlement with the Plaintiffs’ Steering Committee, resolving the substantial majority of outstanding private economic loss, property damage and medical claims, which BP estimates will cost approximately $7.8 billion.

Notes to Editors:

- As is typical procedure in criminal resolutions, the government has filed a document called an “information,” which is a formal charging document that describes the government’s allegations and the offenses with which BP is being charged. The plea agreement between BP and the DOJ includes an exhibit called an “allocution,” which sets forth the specific facts to which BP has admitted.

- As is typical procedure in SEC settlements, the SEC has filed a Complaint in federal court in the Eastern District of Louisiana. BP consented to the entry of a final judgment that provides for the payment of the civil penalty and the injunction.

- The injunction to which BP has consented as part of today’s agreement with the SEC is typical in these types of settlements. If BP were to violate the injunction, the SEC can petition the Court to hold the company in contempt of the court order.

- All deferred payments under the SEC settlement will be subject to applicable U.S. statutory post-judgment interest, which is based upon a rate equal to the weekly average 1-year constant maturity U.S. Treasury yield.

- BP’s ordinary shares are listed on the London Stock Exchange. In the U.S., the company’s shares trade on the New York Stock Exchange in the form of ADS. BP is subject to the information requirements of foreign private issuers under the U.S. Securities Exchange Act of 1934. The reports on which the SEC’s claims are based were provided to the SEC on a Form 6-K. Further information related to BP’s listings is available in BP’s Annual Report and Accounts and Form 20-F 2011.

- BP has previously secured contributions toward response and compensation costs from the co-owners of the Macondo well, Anadarko ($4 billion) and MOEX ($1 billion), and from contractors who worked there, including Cameron ($250 million) and Weatherford ($75 million).

Summary Schedule of Payments

$M SEC
$525M
Criminal Fine
$1256M
NFWF & NAS
 payments

$2744M
Total new
cash payments
2012  175      175
2013  175  506  420 1101
2014  175  250  345  770
2015    150  380  530
2016    150  590  740
2017    200 1009 1209
Total  525 1256 2744 4525

 


Note: Estimated payment dates assume court approvals and a sentencing date prior to December 31, 2012 (the date will be set by the court) and assume that the National Academy of Sciences agreement is signed upon announcement of the resolution.

 


November16  2012 

BP Confirms Winning Bids for Nova Scotia Deepwater Exploration Blocks

BP was today notified that it was the successful bidder for four deepwater exploration blocks offshore Nova Scotia, Canada.

The Canada-Nova Scotia Offshore Petroleum Board announced that BP was the successful bidder for blocks five, six, seven and eight in the Call for Bids NS12-1. The blocks together cover an area of almost 14,000 square kilometres and are located approximately 300 kilometres off the Nova Scotia coast, southeast of Halifax, in water depths ranging from 100 to over 3000 metres.

Mike Daly, BP Executive Vice President of Exploration said: “This award gives us access to a significant piece of geology, one of the most promising new deepwater areas to be licensed in recent years. Exploration is a key driver of future growth for BP, and access to prospective new acreage such as this is essential. This entry to Nova Scotia’s offshore plays to our strengths in the deepwater and sub-salt.”

As a condition of the issuance of an Exploration Licence, BP must post within thirty days a security with the Petroleum Board in the form of a Work Deposit. The CNSOPB would then award the Exploration Licences to BP with an effective date of Jan 15, 2013. BP then must submit an Exploration Plan to the Petroleum Board within ninety days of that effective date.

In recent years, BP has secured access to significant new upstream acreage globally; half of BP’s prospect inventory now comprises new plays and half is in proven plays in known basins.

“We are pleased about the quality and materiality of our exploration prospects. In addition to deepening in our existing core areas, our drilling programme is expected to test 15 completely new plays between 2012 and 2015,” said Daly.

Parcel detail:

Parcel 5: 2,862.9 km2
Parcel 6: 2,822.0 km2
Parcel 7: 4,151.0 km2
Parcel 8: 4,145.9 km2

Map of Nova Scotia blocks

Map of Nova Scotia blocks

 


November 28, 2012 BBC News 

BP faces temporary ban from new US contracts

BP has been temporarily suspended from new contracts with the US government, the Environmental Protection Agency (EPA) has said.

While it is unclear how long the ban will last, it follows BP's record fine earlier this month over the 2010 oil spill in the Gulf of Mexico.

The EPA said it was taking action due to BP's "lack of business integrity" over its handling of the blowout.

But BP said it had spent $14bn (£8.8bn) on its response to the spill.

"The BP suspension will temporarily prevent the company and the named affiliates from getting new federal government contracts, grants or other covered transactions until the company can provide sufficient evidence to EPA demonstrating that it meets federal business standards," said the EPA in a statement.

"Suspensions are a standard practice when a responsibility question is raised by action in a criminal case."

'Resolve and lift' ban
The EPA and BP both said that the temporary ban would not affect existing agreements BP has with the government.

The oil giant added that the suspension may in fact be lifted quite soon.

"The EPA has informed BP that it is preparing a proposed administrative agreement that, if agreed upon, would effectively resolve and lift this temporary suspension," BP said.

"Over the past five years, BP has invested more than $52bn in the United States - more than any other oil and gas company, and more than it invests in any other country where it operates. On top of this business investment, BP has to date spent more than $14bn in operational response and clean-up costs."

Since the Deepwater Horizon accident, the US has granted BP more than 50 new leases in the Gulf of Mexico, where the company has been drilling safely since the government moratorium was lifted.

For now, BP is to be excluded from the lease of new exploration fields in the Gulf of Mexico, including some 20 million acres that was auctioned on Wednesday.

'Reckless'
Congressman Ed Markey, a senior member of the Natural Resources Committee in Congress, said: "When someone recklessly crashes a car, their licence and keys are taken away."

"The wreckage of BP's recklessness is still sitting at the bottom of the ocean and this kind of time out is an appropriate element of the suite of criminal, civil and economic punishments that BP should pay for their disaster," he added.
Continue reading the main story

BP's finance director Brian Gilvary told investors earlier this month that the group would have to rethink its entire US strategy were a blanket ban put in place.

"How big this is depends on how long it lasts," said Phil Weiss, an analyst at Argus Research.

"It's a negative that they can't participate in (Wednesday's sale), but it's not a big concern. If it happens two times, or three times, or 10 times, it's a much bigger concern."

Pentagon contracts
The US is vital for BP, accounting for more than 20% of its global daily production. It has ploughed more than $52bn (£32bn) into US energy development projects since 2007, more than any other country BP invests in.

The UK company was the biggest fuel supplier to the US Department of Defense, which awarded it contracts valued at about $1.35bn in 2011.

BP's contracts with the US military jumped 33% over a year in 2011, according to data from Bloomberg. The group was awarded a fuel contract in May from the Pentagon while it faced mounting legal costs over the disaster.

The Deepwater Horizon accident, in which an oil rig exploded killing 11 people, caused one of the worst oil spills in history.

BP has pleaded guilty to 14 criminal charges over the accident.

The EPA is the lead agency for suspension and debarment matters regarding BP and has the authority to disbar individuals and companies under sections of the Clean Air Act and the Clean Water Act.


November 28, 2012 

BP to Sell Package of Central North Sea Assets to Taqa for $1.1 Billion

BP announced today that it has agreed to sell its interests in a number of central North Sea oil and gas fields to TAQA for $1.058 billion plus future payments which, dependent on oil price and production, BP currently expects will exceed $250 million. The assets included in the sale are BP’s interests in the BP-operated Maclure, Harding and Devenick fields and non-operated interests in the Brae complex of fields and the Braemar field.

TAQA:
We are 51% owned by Abu Dhabi Water and Electricity Authority (ADWEA) which is a government authority and which provides long-term stability for our company.

We are incorporated as a Public Joint Stock Company and are listed on the Abu Dhabi stock exchange.

TAQA is organised into two business streams: Oil & Gas and Power & Water.
TAQA’s Oil & Gas operations are located in North America, the United Kingdom and the Netherlands and comprise crude oil and natural gas exploration, production, processing, transmission and storage.

The sale is subject to third party and regulatory approvals and the companies currently expect the sale to complete in 2Q 2013.

Bob Dudley, BP group chief executive, said: “This transaction is in line with BP’s strategy to focus on a smaller number of higher-value assets with long-term growth potential and to continue the simplification of our portfolio with a further reduction of operated infrastructure and wells.”

Trevor Garlick, regional president, North Sea, said: “It has made strategic sense for BP and for the buyer to combine our non-operated interests in the Braes and Braemar fields with Harding, Maclure and Devenick. BP continues with a focused investment programme in the UK and Norway, which includes planned capital spending of $10 billion over five years.”

With today’s announcement, BP has now entered into agreements to sell assets with a value of around $37 billion since the beginning of 2010. BP expects to divest assets with a total value of $38 billion between 2010 and 2013 as it focuses its business around the world on its strengths and opportunities for growth.

Jefferies acted as financial adviser to BP in relation to this transaction.

Notes to editors

The base consideration is $1.058 billion of which a deposit of $632 million has been paid. The anticipated future payments of $250 million are expected to be realized over three years.

BP in the North Sea:
BP is a major investor in the North Sea (UK and Norway) with an extensive portfolio of production from existing reservoirs, new projects under development, and growth potential in undeveloped resources.

BP’s annual North Sea production averages around 200,000 barrels of oil equivalent per day and the company has over three billion barrels of estimated proven and contingent resource available in the region.

The company employs over 3,000 staff in its North Sea business and operates around 30 oil and gas fields.

BP-operated producing assets include
Clair, Schiehallion, Foinaven and Magnus in the Shetland area;
Andrew, ETAP and Bruce in the UK’s central North Sea; and
Valhall, Ula, and Hod in Norway.
The company also operates the Sullom Voe Terminal in Shetland, the CATS gas terminal in Teesside, and the Forties Pipeline System and Kinneil terminal.

BP plans to invest $10 billion (c £6.7billion) net over the next five years in the North Sea – including major projects in the UK and in Norway.

Three major projects are currently underway in the UK – Clair Ridge, Quad 204 (Schiehallion), and Kinnoull – and two in Norway – Skarv and the Valhall Redevelopment.

BP’s strategy to focus in the North Sea has already included the sale of the Wytch Farm oil field in Dorset, the Southern Gas Assets and the sale of its non-operated stakes in the Draugen, Alba and Britannia fields. The total value of those assets sold, including this deal, is around $2.8 billion.

Brae complex, Braemar, Maclure, Harding, Devenick

売却:The assets included in the sale are BP’s interests in the BP-operated Maclure, Harding and Devenick fields and non-operated interests in the Brae complex of fields and the Braemar field.

BP has an equity interest of 27.7% in the Marathon-operated Brae fields, a collection of oil and gas fields -- South, Central, North and West Brae -- which started production in the 1970s, and 33.21% in the Marathon-operated East Brae field and production facility.

Braemar is a subsea tie-back to the Marathon-operated East Brae platform in which BP owns a 52% interest.

The Maclure oil field started production in 2002 and was developed via a single subsea gas-lifted well tied back to Maersk’s Gryphon Floating Production Storage and Offloading vessel. BP is the operator and owns 37.04%.

Harding has been a quality asset for BP, but it is isolated from the rest of BP’s portfolio and will require significant investment and resource to develop its gas reserves. BP’s major capital investment programme is focused on other assets from which it can extract greater value in the central and northern North Sea, west of Shetland and Norway. BP owns 70% of Harding and is the operator.

Devenick, which was brought on-stream in September, is a subsea tie-back to the East Brae platform. Given the inclusion of BP’s interest in Braes in this deal it makes strategic sense to include Devenick in the sale package. BP owns 88.7% of Devenick and is the operator.

The base consideration will be allocated 50% to plant and machinery for tax purposes
 


19 December 19, 2012

BP to Sell Yacheng Gas Field in China to KUFPEC

BP today announced that it has agreed the sale of its 34.3 per cent interest in the
崖城Yacheng gas field in the South China Sea to Kuwait Foreign Petroleum Exploration Company (KUFPEC) for $308 million cash. Subject to regulatory, CNOOC and third party approvals, BP expects the deal to close in the second half of 2013.



“This sale is part of BP’s ongoing global portfolio optimization,” said Chen Liming, President of BP China. “BP remains committed to working with China to contribute its deep expertise and oil and gas supply options in this important emerging market.” The sale takes BP’s total divestments announced since 2010 to $37.8 billion.

Commercial production at Yacheng started in 1996. BP operated the field until 1 January, 2004, when it handed operatorship to its major project partner CNOOC.

The field currently supplies natural gas for power generation to Castle Peak Company Limited in Hong Kong via a 780-kilometre pipeline. Additional natural gas, condensate and LPG are sold to customers on Hainan Island.

Following completion, the Yacheng partnership will consist of CNOOC (51 per cent), and Kuwait Foreign Petroleum Exploration Company (49 per cent).
 

Yacheng 13-1 Gas Field

In 1982, during the first licensing round in China that was open to western companies, BP's heritage company Arco acquired the Ying Ge Hai Block in the South China Sea. This led to the discovery of the Yacheng 13-1 gas field in 1983, the subsequent development of the field, and the commercial production of the reserves in 1996. Yacheng 13-1 lies in 90 meters of water and is the largest offshore natural gas field in China. It supplies natural gas for power generation to Castle Peak Company Limited青山發電廠 in Hong Kong via a 780-km pipeline (the 2nd longest offshore pipeline in the world), and to Fuel & Chemical Corporation of Hainan Province via a 60-km pipeline. The Yacheng Partnership consists of BP 34.3%, CNOOC 51%, and Kuwait Foreign Petroleum Exploration Company 14.7%.

After operating successfully for 8 years, BP handed over operatorship to its major partner CNOOC on 1st January, 2004. Zhou Shouwei, president of CNOOC Limited, gave a speech in which he said:"Yacheng is widely known in the industry as a successful model of Sino-foreign co-operation. I would like to take this opportunity to thank BP for leading the Yacheng operation and sharing their valuable experience and skills on both the managerial and operational fronts in the years which BP served as the operator."

BP was awarded interests in the 42/05 and 43/11 deepwater blocks in the South China Sea in 2010 and 2012. These blocks are currently in the exploration phase.

Notes to editors

As one of the largest foreign investors in the Chinese energy sector, BP remains committed in its long-term growth in China, for both upstream and downstream areas.

Discovered in 1983, Yacheng 13-1 field is the largest offshore natural gas producing field in China. The field is located in about 90 metres water depth and is some 100 kilometres south of Hainan Island, in the South China Sea.

--------------

Feb 15, 2012 Reuters

BP hopes to drill new S.China Sea gas block this yr

Oil giant BP Plc plans to start drilling at the 43/11 deepwater block in the South China Sea this year, after receiving approval recently from the Chinese government, a company executive said on Wednesday.

"When we start depends on many factors, such as whether the drilling rig is ready. We hope to start drilling there by the end of the year." BP China President Chen Liming told Reuters.

BP received approval from the commerce ministry last week to explore and develop natural gas resources at deepwater block 43/11, together with China National Offshore Oil Corp (CNOOC) and Anadarko Petroleum Corp.

During the exploration phase, BP will have a 40.82 percent working interest, Anadarko 50 percent and CNOOC 9.18 percent. During development and production, CNOOC will be operator with a 55.5 percent interest, BP with 20 percent and Anadarko will have 24.5 percent, according to BP China.

BP and CNOOC signed a cooperation agreement for deepwater exploration of block 43/11 in January last year, during Chinese Vice-Premier Li Keqiang's visit to Britain.

BP's other upstream assets in China include the under-producing gas field Yacheng 13-1 in the South China Sea, and deepwater block 42/05, in which BP purchased an intertest in September 2010, according to the company's website.

----------------

September 13 2010

BP Acquires Interest in Block 42/05 South China Sea

BP announced today that its acquisition of an interest in block 42/05 in the South China Sea’s Pearl River Mouth Basin has been approved by the Chinese Government. BP has acquired a 40.82 per cent interest in the block from Devon Energy China, Ltd. The block covers an area of 6939 square kilometers. Chevron acquired the remaining 59.18 per cent and will be the operator during the exploration phase under the amendment agreements to a production sharing contract with China National Offshore Oil Corporation (CNOOC). CNOOC Limited, a listed arm of CNOOC, has the right to back-in to a level of 51% during the development phase of the production sharing contract.

September 7, 2010

CNOOC Signed Amendment Agreements to PSC for Three Deepwater Blocks

 
CNOOC Limited announced today that its parent company, China National Offshore Oil Corporation (“CNOOC”) has signed amendment agreements to the Production Sharing Contracts (PSCs) with Chevron China (“Chevron”), BP China (“BP”) and Devon Energy Corporation (“Devon”) for deepwater blocks 42/05, 64/18 and 53/30 in South China Sea. These agreements have been approved by the Chinese government.

Prior to this, Chevron and BP signed Sale and Purchase Agreements with Devon for the above blocks: Chevron acquired a 59.18% interest in block 42/05 and a 100% interest in blocks 64/18 and 53/30 from Devon in the exploration phase;BP acquired the remaining interest of Devon in block 42/05.

Block 42/05, located in Baiyun Sag of Pearl River Mouth Basin in the Eastern South China Sea, covers a total area of 6,939 square kilometers. Blocks 64/18 and 53/30 are located in Qiong Dong Nan Basin in the Western South China Sea with acreage of 7,712 and 6,313 square kilometers respectively. Water depth of the three blocks ranges from 300 to 2,000 meters.

During the exploration period, Chevron will act as the Operator in the three blocks. CNOOC Limited has the right to participate in up to a 51% interest in the event of any commercial discovery in the blocks.

Mr. Zhu Weilin, Executive Vice President of the Company and General Manager of the Exploration Department commented, “We welcome Chevron and BP to become our new partners in these blocks and look forward to the joint exploration of the great deepwater potential in the South China Sea.”

In 2005 and 2006, CNOOC signed three PSCs with Devon for blocks 42/05, 64/18 and 53/30.
 


2013/3/22 BP 

BP to Buy Back $8 billion of Shares, Returning its 2003 Investment in TNK-BP to Shareholders

BP announced today that it intends to carry out a share repurchase, or buy-back, programme with a total value of up to $8 billion

Today’s decision to buy back shares follows the completion yesterday of the sale of BP’s 50% interest in TNK-BP to Rosneft. The programme is expected to return to BP shareholders an amount equivalent to the value of the company’s original investment in TNK-BP.

2012/10/24 ロシアのRosneft、TNK-BPを買収

In 2003 BP invested around $8 billion in cash, shares and assets in the formation of TNK-BP. Over the following decade BP received a total of $19 billion in dividends from the joint venture. BP sold its interest in TNK-BP to Rosneft, followed by a reinvestment in Rosneft shares, for an overall consideration of $12.48 billion in cash (including $0.71 billion in TNK-BP dividends received by BP in December 2012) together with shares representing 18.5% of Rosneft. As a result, BP now holds a 19.75% interest in Rosneft.

BP Group Chief Executive Bob Dudley said: “BP is moving on to the next phase of its business in Russia, becoming the largest private shareholder in Rosneft, Russia’s leading oil company. In the process we have also released cash, equivalent to at least six years of BP’s anticipated future dividends from TNK-BP. We look forward now to working closely with Rosneft and together developing opportunities to create value for both companies.”

Dudley said that the size of the proposed buy-back programme, which is expected to exceed that required to offset the earnings per share dilution expected as a result of the sale of TNK-BP, also reflected the reduction in BP’s asset base following its major $38 billion divestment programme over the past three years.

BP intends to retain the additional cash consideration of $4.48 billion received from the sale of its interest in TNK-BP to reduce BP Group debt as part of its continuing commitment to maintaining a strong balance sheet.

BP Chairman Carl-Henric Svanberg said: “We expect our stake in Rosneft will generate long-term value for BP and its shareholders. But this buy-back programme should also allow our shareholders to see benefits in the near-term from the value we have realised by reshaping our Russian business.”

Notes to editors:

When its intention to sell its interest in TNK-BP to Rosneft was announced in October 2012, BP said that it intended to use the cash proceeds from the sale to, at minimum, offset any dilution to earnings per share as a result of the transaction.
This buy-back programme will be effected in accordance with BP's general authority to repurchase shares granted by its shareholders at BP’s 2012 Annual General Meeting and Chapter 12 of the UK Listing Rules. The shares purchased will be cancelled. The aim of the programme is to reduce the issued share capital of BP p.l.c. The buy-back programme may be suspended at any time.
The pace at which the buy-back programme is executed is determined by market capacity, as well as applicable regulations. At current volumes, BP estimates the buy-back programme could take 12 to 18 months to complete.



December 16 2013
BP

The Government of the Sultanate of Oman Gives the Go-Ahead to BP for the Khazzan Project

 
The Government of the Sultanate of Oman and BP have today signed a gas sales agreement and an amended production sharing agreement for the development of the Khazzan field, with BP as operator.
 
The full field development will involve a drilling programme of around 300 wells over 15 years to deliver plateau production of one billion cubic feet (28.3 million cubic metres) of gas per day and 25,000 barrels per day of gas condensate. This volume is equivalent to around a third of Oman’s total daily domestic gas supply and will make a significant contribution to ensuring continuing stable supplies from domestic sources.  The total investment in the full field development is around $16 billion, which includes the investment made to date in the appraisal of the resource and early well test programme.

The Khazzan project represents the first phase in the development of one of the Middle East region’s largest unconventional tight gas accumulations, which has the potential to be a major new source of gas supply for Oman over many decades.

非在来型天然ガス

「タイトガス」 在来型ガスが貯留している地層よりも稠密な砂岩層に貯留した天然ガス。生産性が低かったため従来は開発が進まなかったが、1980年代後半から米国で開発が進展した。
「コールベッドメタン」 石炭が生成される過程で発生して、そのまま石炭層に滞留した天然ガス。1980年代後半から米国で開発が進み、現在はオーストラリア・カナダ・中国などでも開発が進んでいる。
「シェールガス」 タイトガスよりも浸透率が2桁以上低い(0.001ミリダルシー未満)泥岩の一種である頁岩(シェール)に含まれる天然ガス

His Excellency Dr Mohammed Al Rumhy, Minister of Oil and Gas of the Sultanate of Oman, said: “Today’s signing is an important step in the Sultanate of Oman’s plans to meet growing demand for energy over the coming decades and to contribute to economic development in Oman. The Khazzan project is the largest new upstream project in Oman and a pioneering development in the region in unlocking technically challenging tight gas through technology.”

HE Al Rumhy added: “As well as providing additional energy supply for Oman, the Khazzan project will generate wider direct benefit with the development of Omani employees and delivering in country value through the development of the local supply chain.”

Bob Dudley, BP Group Chief Executive, said: “We are very pleased to be going ahead with this major project, which is very important for both Oman and for BP. This enables BP to bring to Oman the experience it has built up in tight gas production over many decades. This is one more example of BP developing a long term gas supply chain, in this case to bring energy to customers in Oman for decades to come.”

David Dalton, President of BP in the Middle East Region, added: “The sanction of the Khazzan project follows an extensive and rigorous appraisal programme. This has given BP and the Government of the Sultanate of Oman confidence in the strength of the project and our ability to deliver long term gas supply to Oman.”

Construction work for the Khazzan project, located in the South of Block 61, will begin in 2014, and first gas is expected in late 2017. Gas production is expected to ramp up to plateau in 2018 and in total the project is expected to develop around 7 trillion cubic feet (tcf) of gas, which will require BP to successfully deploy new technologies. 

The amended exploration and production sharing agreement and a gas sales agreement  extend for an initial 30 years and also provide for the additional appraisal of further gas resources within Block 61, which are expected to be developed in subsequent project phases.

The full field development involves a 15-year drilling programme, with production tied back to a new central processing facility in Block 61 via a 500 kilometre long gathering system.

The Government of the Sultanate of Oman also announced the intent of the state-owned Oman Oil Company Exploration & Production (OOCEP) to participate with a 40 per cent stake in Block 61. Salim Al-Sibani, CEO of OOCEP, noted: “We are delighted to work with BP on this challenging project to supply gas to the country. Unlocking unconventional resource will help to meet Oman’s future energy needs. We are very pleased to be part of this exciting journey and to build the required unconventional skills across the upstream sector.”

At the same time, BP and Oman Oil Company (OOC) also announced the signing of a non-binding memorandum of understanding (MoU) to develop the world’s first acetic acid manufacturing plant using BP’s revolutionary new SaaBre™ process, which was first announced in November 2013. The MoU covers joint economic evaluation and a detailed feasibility study for a proposed one million tonne per year acetic acid plant in the Special Economic Zone in Duqm, Oman. Subject to negotiating definitive agreements, it is anticipated to lead to a joint venture investment, with start-up expected in 2019.


Notes to editors

The Khazzan development follows an extensive appraisal programme that began after BP signed an agreement with the Government in January 2007 for the appraisal and development of Block 61.

Block 61 contains significant volume of unconventional gas, distributed across several reservoirs, with estimates of total gas in place of up to 100 trillion cubic feet. This first phase of the Khazzan field development plan will involve drilling around 300 wells, mostly horizontal, using eight drilling rigs over 15 years.

Since 2007, BP has carried out one of its largest-ever onshore seismic surveys covering the 2,800-square-kilometre Block 61 area. BP began appraisal well drilling activities in 2008 and has drilled 11 wells, including three horizontal wells. Owing to the tight nature of rocks in Khazzan reservoirs, the wells need to be hydraulically stimulated to stimulate production and flow gas at target rates.

In March 2011 BP Oman achieved a milestone with the first gas delivery to the government from its extended well test project in Block 61. This successful pilot project has helped to demonstrate the potential of a much larger scale development.

BP has focused on health and safety throughout the appraisal programme and together with its contractors has achieved over 9.8 million man-hours of work without a major safety incident.

BP is preparing for the full field development of Khazzan on a number of fronts, most recently with the launch of its multi-year technicians development programme for Omani nationals that will qualify up to 150 technicians to support the long term operations of the Khazzan Project. BP is also investing in Omani capability development for graduates and mid-career staff. Over 70 per cent of BP’s staff in Oman are Omani nationals.

-------------

BP to invest $15 billion to develop Oman tight gas

BP’s Khazzan tight gas project in Block 61 is one of the company’s top five upstream projects globally. BP’s Khazzan project is also the first and largest of its kind in the Middle East.

In January 2007 BP signed a major exploration and production sharing agreement with the Government of Oman for the appraisal and development of Block 61 and the Khazzan and Makarem gas fields.

The agreement covers an area of some 2,800 km² in central Oman, which contains a number of tight gas reservoirs which were first discovered in the 1990s.

Drilling commenced in September 2008. Then, in March 2011 BP Oman achieved a major milestone with the first gas export from the Extended Well Test project delivered to the government-owned gas plant at Saih Rawl.

The development of the tight gas reservoirs is a significant technical challenge owing to the low porosity of the reservoir rock.

BP is applying innovative technology to unlock this tight gas, drilling horizontal wells and using hydraulic fracturing technologies to force cracks in the rock to encourage flow.

BP Oman has announced in Muscat to award several contracts for the appraisal of the Khazzan & Makarem gas fields in Oman’s Block 61.


2014/5/24  BP/Rosneft 

Rosneft and BP Sign Agreement on Development of Domanik Formations

Rosneft and BP Exploration Operating Company Limited signed a Heads of Agreement on Domanik formations. The document was signed today within the framework of the St. Petersburg International Economic Forum by Rosneft President and Chairman of the Management Board Igor Sechin and BP Russia President David Campbell.

The signature ceremony was led by President of the Russian Federation Vladimir Putin.

The Heads of Agreement provides for implementation of a joint pilot project by Rosneft and BP relating to the Domanik formations and, in the event of success, the possible development of unconventional Domanik resources in the Volga-Urals region. The joint venture company (Rosneft 51%, BP 49%) will be incorporated in Russia.

BP will compensate part of the historical costs to Rosneft for exploration of the Domanik formations and will provide carry financing of up to US $300 million for the pilot programme, which will be conducted in two phases at licence blocks in the Orenburg Region.

2014/5/3 ウクライナ問題でのロシア制裁の影響 

BPのCEOは「Rosneftが制裁対象ではない。ロシアの事業には影響はない」と語った。
JVではボルガ・ウラル地域でシェール鉱区などの開発を推進する。

ロシアではソ連時代からシェールオイルを「採掘が困難な石油」と呼んでいる。これは、頁岩以外の岩からの採掘も含む広義語である。

ロシアはこのような油の採掘に必要な、技術の応用条件を整えるために、税制改革を始めた。
2013年末、バジェノフ累層、アバラク累層、ハドゥム累層、ドマニク累層の4累層の難採油の鉱床について、鉱物採掘税を10〜15年免税にした。


Jun 27, 2014 Reuters 

Russia's Rosneft signs further oil products supply deal with BP

* Rosneft to get at least $1.5 bln in pre-payment
* Follows BP-Rosneft shale oil exploration deal
* Sechin wants a motorbike trip across US (Adds Sechin quotes, banks)


Rosneft signed on Friday its second major agreement with BP since sanctions were imposed on the Russian oil company's chief executive, a close ally of President Vladimir Putin, over Russia's involvement in the Ukraine crisis.

The five-year agreement will supply BP with up to 12 million tonnes of refined oil products and involves a pre-payment of at least $1.5 billion arranged by leading global financial institutions, Rosneft said.

Rosneft refined nearly 90 million tonnes of oil last year, according to company figures.

Some Western firms have been wary of investment and business in Russia since sanctions were imposed over the crisis in Ukraine, where Moscow denies accusations of orchestrating a rebellion by pro-Russian separatists.

2014/5/3 ウクライナ問題でのロシア制裁の影響 

But the sanctions have had only a limited impact on the Russian energy industry, a cornerstone of the country's $2-trillion economy, resulting mostly in higher borrowing costs for domestic companies.

Since the sanctions were imposed, executives from Total , BP, Statoil and ExxonMobil have visited Russia, underlining the importance they attach to business with the world's leading oil producer with current output of around 10.5 million barrels per day (bpd).

Last year, Rosneft announced deals worth more than $15 billion to sell crude oil and other products to BP, which now owns almost a fifth of Rosneft following Rosneft's acquisition of Anglo-Russian oil firm TNK-BP last year.

Friday's signing also follows an agreement by BP and Rosneft in May to jointly explore in Russia for hard-to-recover shale oil.

Such deals do not violate sanctions over the Ukraine crisis because Rosneft has not been included on any sanctions list, but Rosneft's chief executive Igor Sechin had a visa ban and asset freeze slapped on him by the United States after Russia annexed the Black Sea peninsula of Crimea from Ukraine in March.

"I am working here with Rosneft. It's a business between the companies. I don't comment on personal sanctions," BP's chief executive Bob Dudley told reporters in Khabarovsk in Russia's far east after attending the signing ceremony with other members of the Rosneft board of directors.

Sechin told reporters that he had no accounts or assets in the United States but he felt the impact from sanctions.

"Sanctions don't allow me to see the beauty of their (U.S.) nature, to learn their culture, show my kids their nature," he said. "I wanted to take a motorbike trip across America but this decision denies me such an opportunity."

Eight banks have signed a $2-billion prepayment facility与信枠 backing the long-term delivery of crude oil products between Russian oil giant Rosneft and BP, Rosneft said on Friday.

The banks include Deutsche Bank, Bank of China, Societe Generale, Bank of Tokyo-Mitsubishi and Sumitomo Mitsui Banking Corporation, two banking sources close to the deal said.

Rosneft also said the prepayment facility will increase further as several other banks also have shown interest in joining the deal, adding that supplies to BP could start next month.

Bankers earlier this month said partly state-owned UK lender Lloyds Bank had pulled out of the $1.5-$2 billion trade finance deal to avoid risking any political embarrassment for its government.

Under the terms of the latest deal, Rosneft said oil product deliveries could be substituted for supplies of oil but gave no explanation of the circumstances under which this could happen.

LIMITED IMPACT

Such pre-payment supply deals have raised billions of dollars for Rosneft, which borrowed $30.1 billion in two separate loans in 2012 and 2013 to help finance last year's $55 billion acquisition of TNK-BP, once Russia's third largest oil producer.

Last year Rosneft also agreed an $8.32 billion loan with commodity traders Glencore and Vitol and a $1.5 billion pre-payment loan with Swiss-based trading house Trafigura.

However, some Russian energy companies have recently been talking to their customers about a possible switch to using currencies other than the U.S. dollar in transactions to minimise sanction-related risks.

Other companies could also now follow the example of Surgutneftegas, Russia's fourth-biggest oil producer with an average daily output of 1.2 million barrels of crude, which according to its accounts has stockpiled over 1 trillion roubles ($30 billion) of cash instead of paying out higher dividends or making large acquisitions.

Meanwhile Lukoil, Russia's second-biggest oil producer, has postponed an up to $2 billion Eurobond issue until the autumn because of a spike in borrowing costs. ($1 = 33.6595 Russian roubles)


2015/1/15  BP 

BP Statement on Phase 2 Decision in Gulf Oil Spill Trial

Today the United States District Court for the Eastern District of Louisiana ruled on the issues raised in the Phase 2 trial of the Deepwater Horizon case: the quantification of oil spilled and BP’s source control efforts following the accident.

The Court found that 3.19 million barrels of oil were discharged into the Gulf of Mexico and therefore subject to a Clean Water Act (CWA) penalty.
In addition, the Court found that BP was not grossly negligent in its source control efforts.

No penalty has yet been determined. The decisions in the Phase 1 and Phase 2 trials represent steps in the process of assessing a CWA penalty. The third phase of the CWA trial, currently scheduled to begin in the Court on Tuesday, 20 January, 2015, will address the penalty to be assessed.

During the penalty proceedings, the Court is required to consider the application of eight statutory factors, including
the violator’s efforts to minimize or mitigate the effects of the spill:
the seriousness of the violation or violations;
the nature, extent, and degree of success of any efforts of the violator to minimize or mitigate the effects of the discharge;
the economic impact of the penalty on the violator;
the economic benefit to the violator, if any, resulting from the violation;
the degree of culpability involved;
any other penalty for the same incident;
any history of certain types of prior violations; and any other matters as justice may require.

BP believes that considering all the statutory penalty factors together weighs in favor of a penalty at the lower end of the statutory range.

BP is continuing to review the Court’s decision.

---

New Orleansの District Court のCarl Barbier 裁判官は9月4日、BPに「重大な過失」(gross negligence )と「故意の不法行為」(willful misconduct)があり、これが大量流出の原因となったとし、BPは水質浄化法によるバレル当たり4,300ドルの罰金に値するとの判決を言い渡した。

責任割合について、判事は、BPが67%、Transoceanが30%、Halliburton が3%と認定した。

BPでは流出量320万バレルとし、重大な過失なしとしてバレル1,100ドルを適用し、35億ドルを引き当てている。
他方、政府は流出量を490万バレルとし、
そのうち420万バレルはBPの責任だとしており、流出量そのものに大きな差がある。

319万バレルの場合、35億ドル[email protected]ドル)か137億ドル[email protected]ドル)になるが、これは全体で、BPの割合は67%。
但し、BPの実際の負担は当時の権益率の65%相当の92億ドルとなる筈。
 
25%分の35億ドルはAnadarkoに請求できる。三井石油開発の負担分の10%の14億ドルは、三井が罰金を払って政府と和解しているため除外される筈。

2014/9/8    2010年の原油流出事故、「BPに重大な過失」と認定


2015/3/6  BP  

BP Finalises Deal To Develop Egypt’s West Nile Delta Gas Fields

BP announces the signing of the West Nile Delta project todevelop 5 tcf of gas resources and 55 mmbbls of condensates

BP today announced that it has signed the final agreements of the West Nile Delta project to develop 5 trillion cubic feet (tcf) of gas resources and 55 million barrels (mmbbls) of condensates with an estimated investment of around $12 billion by BP and its partner. The project underlines BP’s commitment to the Egyptian market and is a vote of confidence in Egypt’s investment climate and economic potential.

Production from WND is expected to reach up to 1.2 billion cubic feet a day (bcf/d), equivalent to about 25 per cent of Egypt’s current gas production and significantly contribute to increasing the supply of energy in Egypt. All the produced gas will be fed into the country’s national gas grid, helping to meet the anticipated growth in local demand for energy. Production is expected to start in 2017.

“BP is proud of its record in Egypt over the past 50 years and we are looking forward to many more years in the country. The WND project investment is the largest foreign direct investment in Egypt, and demonstrates our continued confidence in Egypt and our commitment to unlock its energy potential. WND production is key to Egypt’s energy security,” said Bob Dudley, BP Group Chief Executive.

Gas will be produced from two BP-operated offshore concession blocks, North Alexandria and West Mediterranean Deepwater. BP believes that there is the potential through future exploration to add a further 5-7 tcf which could boost WND production with additional investments.

Commenting on the project, Hesham Mekawi, BP North Africa Regional President said, “This is a critical milestone in the Egyptian oil and gas history. It marks the start of a major national project to add significant production to the domestic market. BP expects to double its current gas supply to the Egyptian domestic market during this decade when the WND project reaches its peak production. BP will also continue to invest in our existing oil operations at the Gulf of Suez (through GUPCO) and gas operations in the East Nile Delta (through Pharaonic Petroleum Co.), as well as progressing our recently discovered resources to allow for the next new major development after WND.”

The scale of investment and activities of the WND project are expected to significantly contribute to the growth of petroleum-related industries and to Egyptian employment. During the construction phase, the project is projected to employ thousands of direct and indirect personnel. In line with BP’s commitment to support the development of Egyptian capability, the WND project will encourage technology transfer and know-how through training and on-the-job development. This will help to create strategic national capabilities to unlock the country’s future hydrocarbon potential.

As part of the WND project, BP will also undertake a social investment programme directed to various sustainable development projects in coordination with the local communities and utilizing local service providers.

This will be in addition to the project’s principal approach, which is focused on increasing local labour, with a commitment to employ significant local labour during operations.
 

Notes to editors:

The West Nile Delta (WND) Major Project is a strategic project for BP where BP has about 65 per cent equity in the project partnership.

The WND project concept maximises the utilisation of existing infrastructure:

BP-operated Taurus/Libra fields: this will be a subsea development tied-in offshore to existing BG-operated Burullus facilities

The BP-operated Giza/Fayoum & Raven fields: These are two deepwater long distance tie-backs to the shore, where the existing Rosetta plant will be modified for Giza/Fayoum and integrated with a new adjacent onshore plant for Raven.

BP has a long and successful track record in Egypt stretching back 50 years with investments exceeding $25 billion, making BP one of the largest foreign investors in the country. In Egypt, BP’s business is primarily in oil and gas exploration and production.

BP has made a series of discoveries in Egypt in recent years including Taurt North, Seth South and Salmon and Rahamat, Satis, Hodoa, Notus and Salamat.

To date, BP Egypt, in collaboration with the Gulf of Suez Petroleum Company (GUPCO), BP’s joint venture (JV) Company with the Egyptian General Petroleum Company (EGPC), has produced almost 40 per cent of Egypt’s entire oil production, and currently produces almost 10 per cent of Egypt’s annual oil and condensate.

In addition, through joint ventures with EGPC/EGAS and IEOC (ENI) the Pharaonic Petroleum Company (PhPC) and Petrobel BP currently produces close to 30 per cent of Egypt's total gas.

BP is working to meet Egypt’s domestic market growth by actively exploring in the Nile Delta and investing to add production from existing discoveries.

BP is a 33 per cent shareholder of an NGL plant extracting LPG and propane, United Gas Derivatives Company (UGDC) in partnership with ENI/IEOC and GASCO (the Egyptian midstream gas distribution company).


 
9 March 2015  BP

BP makes second significant gas discovery in Egypt’s East Mediterranean Sea

BP Egypt announced today another important gas discovery in the North Damietta Offshore Concession in the East Nile Delta. The “Atoll-1” deepwater exploration well, currently being drilled using the 6th generation semi-submersible rig “Maersk Discoverer,” has reached 6,400 metres depth and penetrated approximately 50 metres of gas pay in high quality Oligocene sandstones. Expected to be the deepest well ever drilled in Egypt, the Atoll well still has another 1 kilometre to drill to test the same reservoir section found to be gas bearing in BP’s significant 2013 Salamat discovery, 15 kilometres to the south.

Bob Dudley, BP Group Chief Executive, commented: “Success in Atoll further increases our confidence in the quality of the Nile Delta as a world class gas basin. This is the second significant discovery in the licence after Salamat. The estimated potential in the concession exceeds 5 trillion cubic feet (tcf) and we now have a positive starting point for the next possible major project in Egypt after BP’s West Nile Delta project.”

Commenting on the discovery, Hesham Mekawi, BP North Africa Regional President said: “The Atoll discovery is a great outcome for our second well in this core exploration programme in the East Nile Delta. It demonstrates BP’s continuous efforts to help in meeting Egypt’s energy demands by exploring the potential in the offshore Nile Delta. We are proud of our commitment to unlock Egypt’s exploration potential that requires large investments to utilise using the latest drilling and seismic technologies.”

Atoll-1 was drilled in 923m water depth around 80km north of Damietta city, 15km north of Salamat and only 45 km to the north west of Temsah offshore facilities. BP has 100% equity in the discovery.

Notes to editors:

BP has a long and successful track record in Egypt stretching back 50 years with investments exceeding $25 billion, making BP one of the largest foreign investors in the country. In Egypt, BP's business is primarily in oil and gas exploration and production.

To date, BP Egypt, in collaboration with the Gulf of Suez Petroleum Company (GUPCO), BP's joint venture (JV) Company with the Egyptian General Petroleum Company (EGPC), has produced almost 40% of Egypt's entire oil production, and currently produces almost 10% of Egypt's annual oil and condensate production.

In addition, through BP's JVs with EGPC/EGAS and IEOC (ENI), the Pharaonic Petroleum Company (PhPC) and Petrobel currently produce close to 30% of Egypt's total gas production.

BP is working to meet Egypt's domestic market growth by actively exploring in the Nile Delta and investing to add production from existing discoveries.

The West Nile Delta (WND) Major Project is a strategic project for BP and its partner and is also critical to Egypt as it will provide more than one billion cubic feet per day (25% of Egypt's current production) of gas.

BP is a 33% shareholder of an NGL plant extracting LPG and propane, United Gas Derivatives Company (UGDC) in partnership with ENI/IEOC and GASCO (the Egyptian midstream gas distribution company).

BP is also present in the downstream sector through Natural Gas Vehicles Company (NGVC, BP 40%) which was established in September 1995 as the first company in Africa and the Middle East to commercialize natural gas as an alternative fuel for vehicles.

---

09 September 2013

BP Discovers Gas in Salamat Well in Egypt

BP Egypt today announced a significant gas discovery in the East Nile Delta. The deepwater exploration well, named Salamat, is the deepest well ever drilled in the Nile Delta. It is the first well in the North Damietta Offshore concession granted in February 2010 and operated by BP.

The well was drilled using the sixth generation semi-submersible rig “Maersk Discoverer”, owned by Maersk Drilling, in water depth of 649 metres and reaching a total depth of around 7,000 metres. The wireline logs, fluid samples and pressure data confirmed the presence of gas and condensate in 38m net of Oligocene sands in Salamat. Further appraisal will be required to better define the field resources and to evaluate the options for developing the discovery.

Mike Daly, Executive Vice President Exploration at BP, commented: “Success with Salamat proves hydrocarbons in the centre of a 50-km long structure. With a hydrocarbon column in excess of 180 metres, the discovery increases our confidence in the materiality of the deep Oligocene play in the East Nile Delta.”

Hesham Mekawi, BP Egypt Regional President said: “The Salamat discovery is a great outcome for our first well in this core exploration programme in the East Nile Delta. It shows our commitment to meeting Egypt’s energy needs by exploring the deep potential offshore the Nile Delta. Standalone and tie-back to the nearby Temsah infrastructure development options are currently being evaluated.”

The Salamat discovery is located around 75 kilometres north of Damietta city and only 35 kilometres to the North West of the Temsah offshore facilities. BP has 100% equity in the discovery.

Notes to editors:

BP has a long and successful track record in Egypt stretching back 50 years, with investments exceeding $20 billion, making BP one of the largest foreign investors in the country. BP’s business in Egypt is primarily in oil and gas exploration and production.
To date, BP Egypt, in collaboration with the Gulf of Suez Petroleum Company (GUPCO), BP’s joint venture (JV) company with the Egyptian General Petroleum Company (EGPC), has produced almost 40% of Egypt’s entire oil production and currently produces almost 15% of Egypt’s annual oil and condensates production.
In addition, through BP’s second JV with EGPC/EGAS, the Pharonic Petroleum Company (PhPC), and together with our partners, BP currently produces more than 30% of Egypt's total gas production.
BP is working to meet Egypt’s domestic market growth by actively exploring in the Nile Delta and investing to add production from existing discoveries
The West Nile Delta (WND) major project is BP’s first operation in Egypt through a BP operating company. With its partner RWE, WND represents a major new source of gas for the domestic market in Egypt.
BP is a 33% shareholder of United Gas Derivatives Company (UGDC), a natural gas liquids plant extracting LPG and propane, in partnership with ENI/IEOC and GASCO (the Egyptian midstream gas distribution company).
BP is also present in the downstream sector through Natural Gas Vehicles Company (NGVC, BP 40%) which was established in September 1995 as the first company in Africa and the Middle East to commercialize natural gas as an alternative fuel for vehicles.



19 June 2015
 BP                
Rosneft and Skyland Petroleum to Consider Joint Development of Srednebotuobinskoye field

Rosneft and BP Sign Production, Exploration and Refining Agreements

Rosneft and BP today signed several agreements strengthening the long term strategic relationship between the two companies, at the St. Petersburg International Economic Forum.

Rosneft and BP signed final binding agreements for Rosneft’s sale to BP of a 20 per cent share of Taas-Yuryakh Neftegazodobycha (Taas), creating a new joint venture in East Siberia. The document was signed by Rosneft Management Board Chairman Igor Sechin and President of BP Russia David Campbell.

February 2, 2012
Rosneft and Sberbank reach agreement in principle on Taas-Yuryakh project

Rosneft and Sberbank signed a tentative agreement on the acquisition by Rosneft of a 35.3 percent stake in Taas-Yuryakh Neftegazodobycha.

Taas-Yuryakh Neftegazodobycha holds production licences for the Srednebotuobinsk oil and gas condensate field, which is situated 160 km north of the ESPO pipeline. Recoverable oil reserves of the field are estimated at 90.9 million tonnes of C1 and 38.9 million tonnes of С2 category. Due to its size the field was put on the list of Fields of Federal Importance on March 18, 2010. The deal price was set at $444 million, which equals to the historical cost incurred by Sberbank.
“The acquisition is a major step forward in strengthening Rosneft’s world-class reserve base in Eastern Siberia and ensuring deliveries to the Eastern Siberia – Pacific Ocean pipeline. Together with the Yurubcheno- Tokhomsk field, these projects will form the foundation of the Company’s East-Siberian production cluster within the next few years. After closing the deal with Sberbank, Rosneft will be working with other shareholders of Taas-Yuryakh Neftegazodobycha to ensure the success of the project. The company will also reach out to federal authorities to make sure that necessary fiscal conditions are in place for the project to be profitable,” said Rosneft President Eduard Khudaynatov.

Until 2009, the 35.3 percent stake in Taas-Yuryakh Neftegazodobycha was held by Urals Energy, which in the course of the financial crisis in 2008-2009 had to hand over the asset to Sberbank Capital to cover overdue loans. The remaining stakes are held by Yakut Energy Limited (37.4 percent) and Finfund Limited (16.8 percent) as well as Limenitis Holding Limited (10.5 percent). The latter is part of the Ashmore Investment Management Group.


15Oct2013

Rosneft completes takeover of East Siberial crude producer Taas-Yuryakh

Russia's largest crude producer Rosneft has completed its takeover of East Siberian crude producer Taas-Yuryakh Neftegazodobycha, the company said in a statement Tuesday.

Rosneft, which now owns 100% of Taas-Yuryakh Neftegazodobycha, did not give a price for the transaction. Prior to the deal Rosneft held 35.3%. The other shareholders in Taas-Yuryakh Neftegazodobycha were Yakut Energy, with a 37.4% stake, Finfund (16.8%) and Limenitis Holding (10.5%).

 

The venture will further develop the Srednebotuobinskoye oil and gas condensate field which is one of the largest fields in eastern Siberia, currently producing about 20,000 barrels a day. The Taas venture will also undertake the development of suitable infrastructure for further exploration and development of the region’s reserves. Related to this, Rosneft and BP will also jointly undertake the exploration of an associated Area of Mutual Interest (AMI) in the region, covering approximately 115,000 square kilometres.

Commenting on the signing, Igor Sechin said: “Eastern Siberia is a priority area for Rosneft. Taas-Yuryakh Neftegazodobycha is carrying out a set of actions with the aim to further expand local infrastructure and boost production capacities. I’m glad that our cooperation with BP is developing in such a promising area.”

David Campbell said: “I am pleased we have been able to conclude this transaction. It further deepens our relationship with Rosneft and underlines BP’s position and strategy as a successful long term investor in Russia. BP will continue to seek attractive investment opportunities to develop Russia’s substantial resources, whilst continuing to comply with international sanctions.”

Rosneft and BP have also agreed jointly to explore two additional Areas of Mutual Interest (AMIs) in the West Siberian and Yenisey-Khatanga basins covering a combined area of about 260,000 square kilometers. This agreement commits BP and Rosneft jointly to conduct studies and, if successful, establish new joint ventures to obtain licences and perform exploration activities. Any joint ventures will be owned 51 per cent by Rosneft and 49 per cent by BP. As part of this agreement Rosneft and BP will also form a joint venture to carry out further appraisal work on the 2009 Rosneft-discovered Baikalovskiy field inside the Yenisey-Khatanga AMI. Exploration activities in the two AMIs will include screening studies, acquisition of seismic data, and drilling of exploration wells as new licences are added.

Within the framework of the Forum, Igor Sechin and David Campbell also signed a heads of terms to pursue a reorganization of the German Ruhr Oel GmbH (ROG) refining joint venture. The document envisages restructuring the JV by dividing between the parties shares in four refineries and associated infrastructure.

As a result of the planned deal Rosneft will double its shareholding in the Bayernoil refinery – to 25% from 12.5%; the MiRO refinery – to 24% from 12%; and the PCK Raffinerie – to 37.5% from 18.75%.

BP in exchange will consolidate 100% of the equity of the Gelsenkirchen refinery and the solvent production facility DHC Solvent Chemie. The closing of the deal is subject to the fulfillment of conditions precedent, which include inter alia regulatory approvals.         

The restructuring of Ruhr Oel GmbH will enable Rosneft and BP to re-focus their refining and petrochemicals strategies in Germany.

Commenting on the signing Igor Sechin said: “This agreement demonstrates Rosneft’s shift to a fundamentally new level of operations in Western Europe and confirms the Company’s commitment to the creation of the most efficient marketing structure, aimed at the creation of additional value for our shareholders. We are thankful to BP, our strategic partner, for the lessons learned during our joint work within ROG and their support for our new beginnings.”

David Campbell said “Our sole ownership of the Gelsenkirchen refinery will re-focus our refining business in the heart of Europe and is in line with our drive for greater simplification and efficiency.”

Notes to Editors

In November 2014, Taas-Yuryakh Neftegazodobycha produced its one millionth ton of oil after the Srednebotuobinskoye oil and gas condensate field was commissioned in October 2013, owing this result to efficient geological and technical measures, and the construction of wells and infrastructure, including oil and gas containment and treatment units and a delivery/acceptance station.

Also the company constructed a 169 km-long pipeline to the Eastern Siberia-Pacific Ocean oil pipeline system. Today there are as many as 51 producing wells, which deliver about 2.4 thousand tons of crude every day.

Taas-Yuryakh Neftegazodobycha, a Rosneft subsidiary, operates the Srednebotuobinskoye oil and gas condensate field, which is located in the Sakha Republic, Yakutia. The field’s reserves under Taas-Yuryakh Neftegazodobycha’s С1+С2 licensed areas total 133 mln tons of liquid hydrocarbons and 137 bcm of  gas.

In May 2011, Rosneft acquired a 50% share in a joint venture Ruhr Oel GmbH (ROG) in Germany. ROG holds stakes in four refineries in Germany (Gelsenkirchen – 100%, Bayernoil – 25%; MiRO – 24%; PCK– 37.5%). Moreover the joint venture holds stakes in five pipelines and marine crude oil terminals in the North, Baltic, Mediterranean and Adriatic Seas. Rosneft`s partner in the JV on a parity basis is BP Europa SE. ROG is a  German market leader in terms of refining volumes – 21.2 mln tonnes in 2013.

In October 2010 Rosneft reached an agreement with the Venezuelan national oil company (PDVSA) on acquisition of 50% of Ruhr Oel GmbH for USD 1.6 bln (not including working capital). Ruhr Oel owns stakes in four refineries in Germany. The acquisition gives Rosneft a refining partnership with BP, which owns the other half of Ruhr Oel.

Total refining capacities of Ruhr Oel are 23.2 mln tonnes (the net share of Rosneft is 11.6 mln tonnes), which represents about 20% of total refining capacities in Germany. The refineries have advantageous geographical locations and a high complexity index. They are also in excellent condition and fully match the latest requirements for product quality. The share of Urals crude in total refining volumes of Ruhr Oel in 2010 was about 50% and this level may be increased in the future. The Gelsenkirchen Refinery, which is fully owned by Ruhr Oel, has a 3.9 mln tonne petrochemical block producing 250 different products. Rosneft will also have access to the wholesale margin of AMV, which is owned by BP and specializes on wholesale marketing of products on the German market.

The acquisition will increase Rosneft’s refining-to-production ratio, give the Company exposure to the German petroleum product market, and offer access to BP’s know-how in refining and management.

BP Refining & Petrochemicals, BP RP for short, is a wholly owned subsidiary of Deutsche BP, on whose behalf it operates of one of the biggest refinery and petrochemicals systems in Europe. This system, known as Ruhr Oel, is a joint venture between BP and Venezuela’s PdVSA. Each partner has a 50% stake in Ruhr Oel

In 2014, overall Rosneft crude oil supplies to Germany amounted to 20.3 million tonnes, which is almost a quarter of all oil imported to Germany. In addition to the 265,000 b/d Gelsenkirchen refinery, BP will still own and operate the 95,000 b/d Lingen refinery which was not a part of the ROG venture and will maintain a separate 10 per cent share in the 217,000 b/d Bayernoil refinery.

ーーーー

June 19, 2015 

Rosneft and Skyland Petroleum to Consider Joint Development of Srednebotuobinskoye field

Rosneft and Skyland Petroleum Group (SPG) signed Heads of Agreement regarding potential joint venture based on “Taas-Yuryakh Neftegazodobycha” at the St.Petersburg International Economic Forum.
The agreement provides for Rosneft’s sale of up to 29 per cent share of Taas-Yuryakh Neftegazodobycha to Skyland Petroleum Group and creating joint venture for development of Srednebotuobinskoye oil and gas condensate field.
Development of Srednebotuobinskoye field – one of the largest fields in Eastern Siberia - will allow to create infrastructure for further exploration and production in the region.

Notes for editors:
Skyland Petroleum Group has extensive experience in the regions of former Soviet Union, South Asia and the Middle East. The Company's financial partners based in East Asia provide a stable foundation in order for the team to successfully explore and produce properties globally.
Rosneft also signed final binding agreements for sale of a 20 per cent share of Taas-Yuryakh Neftegazodobycha (Taas) to BP at the St.Petersburg International Economic Forum.
In November 2014, Taas-Yuryakh Neftegazodobycha produced its one millionth ton of oil after the Srednebotuobinskoye oil and gas condensate field was commissioned in October 2013, owing this result to efficient geological and technical measures, and the construction of wells and infrastructure, including oil and gas containment and treatment units and a delivery/acceptance station.
Also the company constructed a 169 km-long pipeline to the Eastern Siberia-Pacific Ocean oil pipeline system. Today there are as many as 51 producing wells, which deliver about 2.4 thousand tons of crude every day.
Taas-Yuryakh Neftegazodobycha, a Rosneft subsidiary, operates the Srednebotuobinskoye oil and gas condensate field, which is located in the Sakha Republic, Yakutia. The field’s reserves under Taas-Yuryakh Neftegazodobycha’s С1+С2 licensed areas total 133 mln tons of liquid hydrocarbons and 137 bcm of gas.

Skyland Petroleum Corporation is a new oil and gas exploration and production company established in January 2015 by the British company, Vazon Energy and additional technical staff. The Company's financial partners based in East Asia provide a stable foundation in order for the team to successfully explore and produce properties globally.

Currently Skyland is focused on acquiring projects in the regions around China, particularly the former Soviet Union, South Asia and the Middle East as the technical team has extensive experience in these areas. This, combined with the expertise and financial strength of its Asian partners, Skyland is keen to grow into a large oil and gas company, supplying East Asian and world markets and ultimately securing an important role in the flow of energy to the developing economies of this rapidly growing region.

Vazon Energy Limited  was founded in 1997 and is an energy management business focused on oil and gas as well as other energy and resource activities. 


 17 June 2016  BP 

BP and Rosneft create joint venture to develop prospective resources in East and West Siberia

Rosneft and BP have today signed final binding agreements to create a new joint venture, Yermak Neftegaz LLC, to conduct exploration in the West Siberian and Yenisey-Khatanga basins in the Russian Federation. The document was signed at the XX St. Petersburg International Economic Forum (SPIEF) by Rosneft CEO Igor Sechin and President of BP Russia David Campbell.

The joint venture will focus on onshore exploration of two Areas of Mutual Interest (AMIs) in the West Siberian and Yenisey-Khatanga basins covering a combined area of about 260,000 square kilometers.

西シベリアとYenisey-Khatanga 盆地

Yermak Neftegaz will be owned 51 per cent by Rosneft and 49 per cent by BP.
In the initial stage, the joint venture will carry out further appraisal work on the 2009 Rosneft-discovered Baikalovskiy field inside the Yenisey-Khatanga AMI and on exploration of Zapadno-Yarudeiskoye, Kheiginskoye and Anomalnoye licenses in the West Siberian AMI.

Exploration activities in the two AMIs will include regional research, acquisition of seismic data and drilling of exploration wells, with the beginning of field works anticipated in the winter season of 2016 / 2017. The preliminary agreement relating to this project was signed at SPIEF in 2015.

2015/6/23 BPとロスネフチ、長期戦略関係を強化 

Igor Sechin, Rosneft CEO, said after signing: “These agreements serve as an example of full scale cooperation with BP, Rosneft’s strategic partner and largest minority shareholder. After creation of the Taas-Yuryakh Neftegazodobycha LLC joint venture we are now broadening the geography of our cooperation and creating a precedent which allows us to pursue cooperation in partnership with leading international companies to implement upstream projects at the largest Rosneft greenfield sites in West and East Siberia.”

David Campbell, President BP Russia, said: “This agreement and creation of a new joint venture reinforces BP’s commitment to our strategic investment in Russia and our long term partnership with Rosneft. In the current low oil price environment we continue to look for opportunities for future growth.”

BP has committed to provide up to $300 million in two phases as its contribution to the cost of the JV’s activities at the exploration stage. Rosneft will contribute licenses and operational experience in West Siberia and Yenisey-Khatanga with initial drilling to be performed by Rosneft subsidiaries.
 


August 9, 2016 Bloomberg                   

BP to sell stake in Chinese joint venture

BP, the UK energy group, is planning to sell one of its biggest Chinese investments, by disposing of its 50 per cent stake in the Secco petrochemicals plant near Shanghai.

上海SECCO石油化工(Shanghai SECCO Petrochemical Company

BP is the latest western oil company to curtail activity in China, as energy groups reel from low crude and petrochemical prices. China’s slow liberalisation of its energy sector has disappointed investors.

Analysts said that the group’s move to exit the Secco plant made sense at a time when Asia was “awash” with petrochemical supplies.

It also comes amid the UK company’s plans to sell between $3bn and $5bn worth of assets this year. BP has made more than $50bn of divestments since 2011 to help pay legal and clean-up bills following the 2010 Gulf of Mexico oil spill.

2016/7/20 BP、原油流出事故の損害、累計616億ドル 

2012/12/3 BP、北海の石油・ガス資産を一部売却  一覧表

State-controlled Sinopec, which also has a 50 per cent stake in the Secco joint venture, said it was “researching” BP’s planned sale.

“We haven’t made any decision to buy or not,” said Sinopec. BP declined to comment.

One analyst, who declined to be named, valued BP’s chemicals business, which is largely Asia focused, at $3bn. This would imply that BP could secure $1bn-$2bn for its Secco stake, the analyst added.

The Secco plant started operations about 10 years ago after $2.7bn of investment by BP and Sinopec. It makes products including ethylene, which is a building block for plastics.

While BP appears keen to scale back its activity in China, it has no plans to exit the country.

The UK company has stakes in several big Chinese petrochemical sites as well as a liquefied natural gas terminal. It does not have any oil or gas production in the country.

Other western oil companies aiming to reduce their presence in China include Total, which is seeking to sell its stake in the Wepec refinery in the north-east of the country. Royal Dutch Shell has shelved a shale gas joint venture in the south-west.

The petrochemical industry is now struggling with overcapacity. “Asia is awash with petrochemicals supplies and in China, even though there is ample demand, the oversupply is translating into lower domestic prices,” said Michal Meidan, analyst at Energy Aspects.

“For BP, that must focus on costs in the current oil price cycle, this probably makes sense.”

While western energy companies have been retreating from Chinese oil investments, Middle Eastern and Russian groups are keen on projects in the country.

Saudi Aramco, Saudi Arabia’s state-controlled oil company, has held on-off talks with China National Petroleum Corporation, parent of PetroChina, about buying a stake in its new refinery in Kunming. No deal has been finalised. Saudi Aramco already holds a stake in a Quanzhou refinery.

Kuwait Petroleum Corp and National Iranian Oil Company have been in talks about investing in Chinese refineries.

Rosneft, Russia’s state-controlled oil company, agreed in 2013 to establish a refining joint venture in Tianjin, the port city near Beijing.

Last year ChemChina, the state-controlled chemicals and refining conglomerate, offered a stake in some of its refineries to Rosneft.
 


 13 September 2016

BP unveils PTAir - a world-first low carbon and carbon neutral PTA solution

BP today launched PTAirTM, a new low carbon1 and carbon neutral PTA brand with three products that offers a more sustainable solution for the polyester value chain through a combination of world-class technology and carbon management expertise.

A feature of PTAirTM is its use of proprietary PX and PTA technology which supports a 29% lower global warming potential than the average European PTA production2.This low carbon benefit has been independently assured by ERM CVS3.

In addition to this BP will also be launching PTAirTM Neutral, the world’s first certified carbon neutral PTA. PTAirTM Neutral offers customers the opportunity to purchase a carbon neutral product where associated CO2 equivalent emissions are mitigated through the investment in carbon projects providing equivalent CO2 benefits and delivering a net zero position. These projects, located around the world, provide economic, social and environmental benefits to the communities they serve.

Furthermore, through PTAirTM Neutral Products customers have the opportunity to offset all of their product footprint - over and above their PTA use - to achieve full carbon neutrality across their product portfolio. This unique offer is made possible through BP Target Neutral, BP’s longstanding, not-for-profit carbon management programme.

PTAirTM is available in Europe today and BP plans to roll out in the US and Asia in due course.

“Our exciting new PTAirTM product offer is an important stepping stone towards a more sustainable polyester chain,” said Luis Sierra, CEO, BP Aromatics. “PTAirTM is available today in large quantities and seamlessly fits into the current supply chain as a ‘drop in’ substitute for higher carbon, conventional PTA. Moreover it allows our customers to economically achieve a meaningful carbon footprint reduction using a raw material whose eco-profile has been independently measured and verified by respected environmental consultants.”

At today’s product launch, Rita Griffin, BP’s COO, Petrochemicals, said, “Social responsibility and carbon reduction are both high on the public agenda. Retailers and brand owners are seeking more environmentally-friendly solutions that will help reduce the carbon impact of their products and are choosing brands that reflect their concerns for the environment. Through the new BP PTAirTM product suite and collaboration with our customers and our customers’ customers BP are taking an important step to improving sustainability in the polyester industry and moving towards a lower carbon future.”

Notes

  1. Based on an independent cradle-to-gate Eco-profile by IFEU reviewed by ERM Certification and Verification Services (ERM CVS). The study conducted by IFEU uses Plastics Europe Methodology to compare the environmental impact of 1 Kg of BP Geel PTA manufactured with BP integrated PX (integrated production) to PTA produced in Europe as published in the Environmental Product Declaration of the PET Manufacturers in Europe February 2016.The study is in accordance to ISO 14040-44 requirements. Data for both studies are based on 2013. Mass balance approach based on proportion of integrated PX versus total consumption. PTAirTM is a trade mark of BP p.l.c
  2. Compared to the Global Warming Potential (100 years) per 1 kg PTA as published in the Environmental Product Declaration of the PET Manufacturers in Europe February 2016. PTA produced by BP Aromatics NV in Geel is included in the European study average and represents ~30% of the total installed production capacity in Europe in the input
  3. The full assurance opinion of ERM CVS can be found on www.bp.com/bp-geel/ptair/assurance

Note to editors

  • BP is one of the world's largest producers of purified terephthalic acid (PTA), paraxylene (PX) and metaxylene (MX). As a global leader in the aromatics business, BP maintains a high level of customer satisfaction and hold leadership positions in cost and technology.
  • BP invented purified terephthalic acid (PTA), which is used in both clothes and polyethylene terephthalate (PET) bottles for water, soft drinks and many other food and non-food packaging products.
  • BP Target Neutral is administered by BP as a not-for-profit scheme - and BP covers BP Target Neutral’s operating costs. BP Target Neutral’s work is governed by an independent advisory panel of prominent environmental and industry experts. The panel ensures that all policies and activities conform to best practice in carbon management, and where possible will set new standards for that best practice.

Sep 15, 2016                    BP to sell stake in Chinese joint venture

Three firms vie for BP's China petrochemicals plant: sources

At least three leading chemical companies are set to vie for BP's stake in Chinese petrochemicals joint venture SECCO which could fetch more than $2 billion, sources close to the process said.

Offers for the 50 percent stake, the British oil and gas company's largest investment in China, will be submitted in the coming days, the sources said.

SK Chemicals Co Ltd, a pharmaceutical unit of South Korea's SK Group; Austrian plastics group Borealis, owned by Abu Dhabi's sovereign wealth fund IPIC and oil and gas company OMV; and privately-owned Switzerland-based chemicals company Ineos are set to bid for the asset, the sources said, speaking on condition of anonymity as the information isn't public.

At least one other company is considering entering the bidding round.

BP's partner in the joint venture, state-owned China Petroleum & Chemical Corp (Sinopec), has a right of first refusal. It has said it is discussing the conditions put forward by BP, but has made no decision.

BP and the three potential bidders declined to comment or were not immediately available to comment.

SECCO, a venture formed in 2001, produces ethylene and propylene, which are used to make resins, plastics and synthetic rubbers.

BP, like other of the world's top oil companies, is in the midst of a divestment drive in order to focus its business and boost cash flow in the wake of the halving of oil prices since mid-2014. It is planning sales worth $3-$5 billion this year.

The company has sold more than $50 billion of assets since a deadly explosion on an oil rig in the Gulf of Mexico in 2010.

BP has sold several assets to Ineos in recent years, including the Grangemouth refinery in Scotland as part of a $9 billion sale of the olefins and refining business Innovene in 2005.


11 October 2016

BP decides not to proceed with Great Australian Bight exploration

 
BP has taken the decision not to progress its exploration drilling programme in the Great Australian Bight (GAB), offshore South Australia.

The decision follows the review and refresh of BP’s upstream strategy earlier this year, which included focusing exploration on opportunities likely to create value in the near to medium term, primarily building on BP’s significant existing upstream positions.

BP has determined that the GAB project will not be able to compete for capital investment with other upstream opportunities in its global portfolio in the foreseeable future.

“We have looked long and hard at our exploration plans for the Great Australian Bight but, in the current external environment, we will only pursue frontier exploration opportunities if they are competitive and aligned to our strategic goals. After extensive and careful consideration, this has proven not to be the case for our project to explore in the Bight,” said Claire Fitzpatrick, BP’s managing director for exploration and production, Australia.

“This decision isn’t a result of a change in our view of the prospectivity of the region, nor of the ongoing regulatory process run by the independent regulator NOPSEMA. It is an outcome of our strategy and the relative competitiveness of this project in our portfolio.”

Fitzpatrick said BP has informed federal and state governments of its decision.

“This decision has been incredibly difficult and we acknowledge it will be felt across the South Australia region. We have made significant progress with preparations for drilling in the Bight with the support of communities and federal, state and local governments. We acknowledge our commitments and obligations and our priority now is to work with government and community stakeholders to identify alternative ways of honouring these.”

BP has also consulted with its joint venture partner, Statoil, who fully understand BP’s change in strategic direction and accept BP’s decision.

“BP is a long-term, significant investor in Australia, most visibly through our retail network and refinery and also as partners in the North West Shelf and Browse ventures,” added Fitzpatrick. ”We expect to continue to consider further opportunities to invest and grow our business here.”

Notes to editors

BP was awarded exploration licences for four blocks in the Ceduna area of the GAB in January 2011. Seismic data was acquired in the area in late 2011-early 2012. Statoil acquired a 30% interest in the licences in 2013, BP remained operator with 70% interest.

BP has a contract with Diamond Offshore Drilling for the provision of a new Moss CS60E design semisubmersible drilling rig, which Diamond commissioned Hyundai Heavy Industries to build and is specially designed for use in deep water and harsh marine environments. BP’s decision does not impact this rig contract.


1 November 2016                        BP and Rosneft create joint venture to develop prospective resources in East and West Siberia

Rosneft and BP complete the creation of a new joint venture to develop prospective resources in East and West Siberia

Rosneft and BP announce the completion of the deal to create a new joint venture, Yermak Neftegaz LLC, to conduct exploration in the West Siberian and Yenisey-Khatanga basins in the Russian Federation.

Final binding agreements for the new joint venture were signed at the XX St. Petersburg International Economic Forum (SPIEF) in June 2016.

The joint venture will focus on the onshore exploration of two Areas of Mutual Interest (AMIs) in the West Siberian and Yenisey-Khatanga basins covering a combined area of approximately 260,000 square kilometers. Yermak Neftegaz is owned 51 per cent by Rosneft and 49 per cent by BP. Beginning in this coming winter season (2016-17), the joint venture will carry out further appraisal work by starting the drilling of the Bkl-21 well on the 2009 Rosneft-discovered Baikalovskiy field inside the Yenisey-Khatanga AMI and will commence seismic surveys of the Zapadno-Yarudeiskoye block in the West Siberian AMI. The joint venture will also conduct geological exploration of the Kheiginskoye and Anomalnoye licenses in the West Siberian AMI.

Before the completion of the deal the JV partners took a decision to participate in an auction for two E&P license blocks in Krasnoyarsk region - Verknekubinskiy and Posoyskiy, located within the Yenisey-Khatanga AMI. On October 28, 2016 Yermak Neftegaz LLC won the auctions for both exploration and production licenses. Thus the joint venture holds 7 licenses for the use of subsurface resources.

Exploration activities in the two AMIs will include regional studies, acquisition of seismic data and drilling of exploration wells. BP has committed to provide up to $300 million in two phases as its contribution to the cost of the JV’s activities at the exploration stage. Rosneft will contribute licenses and operational experience in West Siberia and Yenisey-Khatanga with initial drilling to be performed by Rosneft subsidiaries.


2016/12/19 BP

BP agrees deal with Kosmos Energy to partner on world-class discoveries in Mauritania and Senegal and cooperate on future exploration

BP announced today that it has signed agreements with Kosmos Energy to acquire a 62% working interest, including operatorship, of Kosmos’ exploration blocks in Mauritania and a 32.49% effective working interest in Kosmos’ Senegal exploration blocks -- acreage which holds world-class deepwater gas discoveries and exploration prospectivity across both countries. 

The approximately 33,000 square kilometres of acreage covered by today’s agreements includes the Tortue field, estimated by Kosmos to contain more than 15 tcf of discovered gas resources.  The total acreage, by Kosmos’ estimates, could contain roughly 50tcf of gas resource potential and in excess of 1 billion barrels of liquids resource potential.

BP will invest nearly one billion dollars mostly in the form of a multi-year exploration and development carry to acquire a 62% interest and operatorship of offshore Blocks C-6, C-8, C-12 and C-13 in Mauritania and an effective 32.49% interest in the Saint-Louis Profond and Cayar Profond blocks in Senegal.

BP chief executive officer Bob Dudley commented: “BP’s entry into Mauritania and Senegal represents an exciting strategic opportunity to work with Kosmos Energy in an emerging world-class hydrocarbon basin. We believe our expertise in integrating the gas value chain, together with a talented exploration partner in Kosmos, along with the support of the Mauritanian and Senegalese governments brings together all the elements needed to create a new LNG hub in Africa.”

In order to reduce development time and drive capital efficiency, the partners plan to process and transport the gas from Tortue at a nearshore LNG facility. The proposed complex could be expanded in phases to accommodate future gas discoveries. 

Under the terms of the agreements, BP and Kosmos have also agreed that Kosmos will remain the technical operator for the exploration phase of the project and drill three new exploration wells beginning in 2017.  

In addition to the existing blocks, the companies have agreed to cooperate in areas of mutual interest in offshore Mauritania, Senegal and The Gambia with Kosmos acting as the exploration operator and BP as the development operator.

Subject to government approvals, the agreements are expected to close by the first quarter of 2017. 

Notes to editors

  • Under the terms of the agreements, BP will pay Kosmos a cash bonus of $162 million on completion. Moving forward, BP will carry Kosmos’ exploration and appraisal costs of $221 million along with Kosmos’ development costs of $533 million, including front-end engineering and design studies. Project sanction is expected by 2018.  
  • Kosmos will also receive a contingent bonus of up to $2 per barrel for up to 1 billion barrels of liquids, as a production royalty, subject to a future liquids discovery and oil price.
  • BP’s proposed share of the Contractor Group results in a working interest
    in Mauritania consisting of Société Mauritanienne Des Hydrocarbures et de Patrimoine Minier 10%, BP 62% and Kosmos 28% and
    an effective working interest in Senegal consisting of Société des Pétroles du Sénégal 10%, BP 32.49%, Kosmos 32.51% and Timis Corporation 25%.

 


29 December 2016

BP and PTT sign LNG sale and purchase agreement

BP and PTT Public Limited Company (PTT) entered into a sales and purchase agreement for liquefied natural gas (LNG).

Under the agreement, BP will provide PTT with approximately 1 million tonnes of LNG per annum. The term of the agreement is 20 years. LNG supply will commence in 2017 and will be sourced from BP’s diverse portfolio of LNG, including the Freeport LNG Project in the USA.

Paul Reed, Chief Executive of BP Integrated Supply and Trading, said: “BP is pleased to conclude this LNG sale and purchase agreement with PTT, with whom we have a longstanding relationship. Thailand has become a significant LNG market and this agreement with PTT further demonstrates our LNG supply capability in the region.”
 

Freeport LNGは年間440万トンの能力の液化設備3系列を建設中で、2017年に液化事業を開始することを目指しているが、下記の通り 2系列分について契約を締結している。

大阪ガスと中部電力は2012年7月31日、天然ガス液化加工契約に関する契約を締結した。
第1系列の液化設備においてそれぞれ年間約220万トンずつの天然ガス液化能力を確保した。

BP Energyは2013年2月、年間440万トンの天然ガス液化加工契約に関する契約を締結した。

2013/5/20 米エネルギー省、日本へのLNG輸出を許可