View Full Version : Oil News

06-25-2008, 02:43 AM
Wednesday, June 25, 2008
Marathon Extends Deepwater Rig Contract to 4 Years for $750MM
BassDrill to Build Two Tender Assist Units at Lamprell
Iraq Accepts 6 More Firms to Bid for Oil Deals
Saipem Signs Contract for Nord Stream Pipeline
CNOOC Starts Up Xijiang Oil Field in South China Sea
Shell Starts Bonga Back Up

Today's Feature

CNOOC Starts Up Xijiang Oil Field in South China Sea

XJ23-1 is located in Block XJ04 in the Pearl River Mouth Basin, about 19 kilometers east of the XJ23-4 oil field. Its development facilities contain one platform, one FPSO and 15 producing wells.
continue reading >>

Industry Headlines
Marathon Extends Deepwater Rig Contract to 4 Years for $750MM
[Gulf of Mexico] -- Marathon Oil Corporation has exercised a two-year option extension on its contract for the Noble Jim Day drilling rig, expected to commence drilling operations in the Gulf of Mexico in 2010. The rig will be capable of working in water depths of up to

Iraq Accepts 6 More Firms to Bid for Oil Deals
[Middle East] -- An Oil Ministry spokesman confirmed that six oil companies were added to the ministry's list of qualified firms, including Aonatrach, PetroVietnam, TPAO, Sonangol, Pakistan Petroleum and the NOC of Thailand.

06-25-2008, 03:03 AM

This assumption--that far offshore facilities are beyond the reach of militants--must now be reconsidered. The week's most successful attack, shutting in 225,000 barrels per day, came against Shell's Bonga facility. At 120 km offshore, the Bonga attack demonstrated a new militant capability in the offshore environment. As Nigeria is one of the few states with the geological potential to significantly increase oil production and exports, the Bonga attack may prove to be an extremely important development.

Overnight on June 19th, MEND militants struck Shell’s offshore Bonga facility, resulting in Shell declaring force majeure for deliveries of 225,000 barrels per day in June and July. Then, on June 20th, militants destroyed a key Chevron pipeline near Escravos, Nigeria, forcing Chevron to shut-in and declare force majeure on 120,000 barrels per day of production. This article will analyze the significance of the Bonga attack in light of Nigeria's efforts to grow its offshore oil production.

What is at Stake?

The Bonga attack is particularly troubling because of the nature of oil production in Nigeria. A February, 2006 Citigroup report noted that "clearly most of the (oil production) growth near-term looks to be in the Nigerian deepwater and as such should be less subject to current disruptions." While offshore production currently only accounts for 16% of Nigeria’s oil production, it is expected to account for 90% of future growth.
The Bonga attack highlights the recent development's in MEND's offshore capabilities, and demonstrates the group's ability to continue to improve its tactics in the near term. Comments as early as 2006 noted that MEND’s offshore capabilities are continuously improving, and that facilities as far as 50-60 km offshore may be at risk. Bonga is twice that far offshore, at 120km

06-25-2008, 05:48 AM
Nothing a couple of 40mm Bofors could not handle.


06-25-2008, 06:08 AM
Bofors, only if you've got a good gun crew to go with it.

06-25-2008, 06:34 AM
Oh , I don't think it would take much to top a Bofors these days .