Weatherford to acquire TNK-BP Oil Field Services
Weatherford has agreed to acquire TNK-BP’s Oil Field Services (OFS) enterprises in exchange for 24.3 million shares of Weatherford common stock and other consideration. TNK-BP’s OFS business currently provides drilling, sidetracking, well intervention and workover, cementation and required support services in Russia. It comprises six operating companies owning and operating more than 75 drilling rigs, 180 workover units, 150 cementation and pumping units and over ten operating bases in critical reservoir plays including two central bases in Western Siberia and the Volga-Urals region. OFS revenues exceeded $650 million in 2008.
NEB says pipeline companies to set aside funds for abandonment
The National Energy Board (NEB) adopted a report on the financial issues of pipeline abandonment that will require companies to set aside funds to cover future abandonment costs.
The report and recommendations follows a January 2009 hearing into the financial matters of pipeline abandonment. By the board’s adoption of the report, all pipeline companies regulated under the NEB Act will be required to comply with the report’s framework and action plan. This calls for companies to submit estimates of funds needed for abandonment as well as proposals for how they will collect and set aside those funds.
The NEB’s goal is to have companies begin setting aside funds for abandonment no later than the end of May 2014. It’s the board’s view that no pipeline system is likely to be abandoned in the foreseeable future and therefore there is time to ensure the funding framework is established and implemented in a manner that considers all parties’ interests.
Imperial Oil approves Kearl oil sands project
Imperial Oil Limited announced its board of directors has approved the first phase of the Kearl oil sands project, a surface mining operation northeast of Fort Mc-Murray, Alberta.
The Kearl project is envisioned to be developed in three phases and could ultimately produce more than 300,000 barrels a day of bitumen. The first phase of the project, expected to begin production in late 2012 with total production to average 110,000 barrels per day, is anticipated to cost about $8 billion or approximately $4.50 per barrel to construct.
Atlas Copco to acquire full ownership of Focus and Prisma in India
Atlas Copco, India, has exercised an option to buy the remaining 75 percent of shares in Focus Rocbit and Prisma Roc-tools. They provide complementary products and services for rotary and down-the-hole (DTH) drilling. The acquisitions will strengthen Atlas Copco’s position in the market for drill bits and hammers. Atlas Copco acquired 25 percent of the companies in April 2008, and the companies have been operating as joint ventures of the Secoroc division since then. Focus is a manufacturer of bits for rotary drilling and Prisma makes bits and hammers for down-the-hole drilling and are headquartered in Hyderabad, India.
Vista awarded contract for North Peace Energy project
Calgary-based engineering firm, Vista Projects Ltd. has been awarded the contract to provide advanced engineering work on North Peace Energy Corp’s (North Peace Energy) Red Earth thermal 3,000 bbl/d expansion project.
The Cyclic Steam Stimulation (CSS) project will demonstrate a practical, environmentally conscious and advantageous method of producing cost-effective amounts of bitumen. The goal of the project is to validate the economic and technical parameters of future commercial development. North Peace Energy plans to exploit its heavy oil leases in Northern Alberta by applying CSS and leveraging its business and technical acumen.
Convincing injection results expands Powerwave program
Wavefront Energy and Environmental Services Inc., a solutions provider for increasing oil field production and enhancing the treatment of contaminated groundwater, announced that a six-fold increase in water injection rate resulting from the use of Powerwave, has prompted a central Texas client to expand the program for its oil field.
Prior to Powerwave implementation the client reported a water injection rate of 40 barrels of water per day at 1000 psi injection pressure. After implementing a Powerwave program the client reported a water injection rate of 240 barrels of water per day at 800 psi injection pressure. “This is a substantial response for a client that had not experienced injection rates of this magnitude and at much lower injection pressures at any time in the field's history,” said Wavefront president and CEO Brett Davidson. “The considerable performance improvement Pow-erwave brings to waterflooding in this region has other operators looking closely at how Powerwave can be used to maximize oil recovery in their fields.”
