PETROL & ENERGY 11.08.2015

Despite a concerted push to expand their overseas presence, few companies are ready to build global organisations, a new survey has found. 

Companies have high global aspirations and confidence in their global strategies, but only about 10% have mastered the capabilities needed to run successful, truly global operations, claims the survey conducted by Boston Consultancy Group and IMD business school.

Mergers and acquisitions, which have been on the rise lately, are critical weaknesses, the survey adds.

Line managers who run businesses or regions are much more pessimistic about their companies’ global readiness than headquarters staff. Midsize companies are at the greatest risk in going global. They are less nimble than smaller companies and do not have the scale or systems of larger ones.

“Companies clearly recognise the need to globalize, but few of them are truly ready to execute and bring to life their global strategies,” said Dinesh Khanna, partner in BCG's Singapore office and global leader of the Global Advantage practice.



Egypt: Rockhopper Exploration has acquired non-operated production and exploration interests in Egypt from Beach Energy for $22 million. As per the transaction, Rockhopper will acquire the entire issued share capital of Beach Petroleum (Egypt) Pty Limited, which on completion will hold 22% interest in the Abu Sennan concession and 25% interest in the El Qa'a Plain concession.

Egypt: The Ministry of Petroleum has completed the implementation of the natural gas connection project to the city of New Ismailia, Minister of Petroleum and Mineral Resources Sherif Ismail announced on Friday. The New Ismailia city project, which was announced by President Abdel Fattah Al-Sisi in December 2014, is a residential city covering a space of 2,156 acres and includes 34,000 housing units. 

Kenya / Uganda: Kenya and Uganda have reached a final decision on the route for a crude pipeline linking their newly found oil fields to the Kenyan coast, an important step for oil firms to make a final investment decision, the countries' presidents said on Monday. "The two heads of state agreed on the use of the northern route, that is Hoima - Lokichar - Lamu for the development of the crude oil pipeline," Uganda's Yoweri Museveni and Kenya's Uhuru Kenyatta said in a statement. 

Libya: Libya's El Sharara and El Feel oilfields remain closed due to protests and a pipeline blockage, oil officials said on Monday. Tribal elders have been trying for months to resume work at both fields, which could add some 400,000 barrels per day (bpd) of crude, doubling Libya's current output.

Equatorial Guinea: Noble Energy’s Hydrocarbon sales in Equatorial Guinea averaged 68,000BOEPD, comprised of 46% crude oil and condensate, 5% NGLs, and 49% natural gas. Sales volumes for the second quarter of 2015 were reduced by planned facility maintenance at the Alba field and the associated LPG plant, representing a seven thousand barrels of oil equivalent per day (7,000BOPD) impact to total sales volumes.


Middle East

Israel: Bank of Israel Governor Karnit Flug has backed a disputed government plan to develop the country's natural gas industry, saying that while not ideal, it was the right move for the economy.In June, after months of negotiations, Netanyahu revealed an outline agreement that lets Texas-based Noble Energy and Israel's Delek Group keep ownership of the largest offshore field, Leviathan. They are required to sell off other assets, including stakes in another large deposit called Tamar. 

Oman: State-owned Oman Oil Refineries and Petroleum Industries Company (Orpic) said the company has received five technical bids for a polymers plant in Sohar industrial area and three technical bids for an NGL extraction plant in Fahud, which are part of its mega petrochemical project -- Liwa Plastics Industries Complex. 

Saudi Arabia: Saudi Aramco, Kingdom of Saudi Arabia's national oil company, and the world's largest exporter of crude oil, struggled to maintain its records and infrastructure three years ago, when a cyber attack was launched on its systems, it has been reported. Cyber security website,, reported on Saturday, 8 August, 2015, that "malware partially wiped or totally destroyed the hard drives of 35,000 Aramco computers" three years ago. 

Saudi Arabia: Saudi Arabia, the world's top crude exporter, will supply full contracted volumes of crude oil to at least two Asian term buyers in September, unchanged from August, industry sources familiar with the matter said on Monday. The move was expected as the OPEC kingpin has supplied full contractual volumes to most Asian buyers since late 2009. 


Rest of the World

Brazil: Ultrapar Participações SA , which owns Brazil's largest natural gas distribution company, is interested in acquiring some assets from state-controlled Petróleo Brasileiro SA that could be listed as early as this year, O Estado de S. Paulo newspaper reported on Monday. Ultrapar would be willing to acquire Liquigás, a rival controlled by the state firm commonly known as Petrobras, Chairman Paulo Cunha told Estado in an interview. However, such a move could face tough regulatory scrutiny, Cunha told the paper. 

Brazil: Prumo Logistica SA, the Brazilian port operator controlled by EIG Global Energy Partners, agreed to sell 20% of its oil terminal at Brazil's Port of Acu to Oiltanking for $200 million. Under the agreement, Oiltanking will also manage the Port of Acu Oil Terminal, which has the capacity to transfer 1.2 MMbbl/d and can handle the large crude carriers or VLCCs. 

China: China's Ministry of Commerce said on Monday it will grant licenses to two independent refineries to directly import crude oil, shortly after the companies won import quotas, as Beijing continues to open up the tightly state-controlled sector. Beijing has already widened the pool of companies to which it will award quotas for imported crude, starting early this year to boost private participation in the oil trade ahead of a planned launch of a crude oil futures contract. 

Denmark: Maersk Drilling, a unit of shipping and oil firm A.P. Moller-Maersk has received a contract for the jack-up rig Maersk Giant with Danish energy company Dong.The firm contract covers 150 days of work on the Nini and Siri fields in the Danish part of the North Sea. The estimated contract value is $16 million it said.

Ecuador: Tecpetrol SA has completed the drilling and testing of the successful Secoya Oeste-A001 exploration well, located adjacent to the producing Libertador and Atacapi light oil fields in the Oriente Basin of Ecuador. 

India: Indian Oil Corp. has launched a tender to buy one liquefied natural gas (LNG) cargo for September delivery, trade sources said. The tender was launched late last week. 

Kazakhstan: Chevron-led Tengizchevroil (TCO), Kazakhstan's No.1 oil company, said on Monday it had increased crude output by 8.2 pct year-on-year to 14.07 million tonnes in the first half of the year. U.S. Chevron owns 50 percent of Tengizchevroil, while ExxonMobil has a 25-percent stake, Kazakh state company KazMunaiGaz owns 20 percent and a subsidiary of Russia's Lukoil holds a 5 percent stake.

Philippines: Junior explorer Red Emperor Resources reported Monday that its Hawkeye-1 well, in the Palawan Basin offshore the Philippines, has been drilled through to 8,740 feet. Spud at the end of July, the Hawkeye-1 well has seen operations "run smoothly" and with "excellent performance from both the rig and service companies," Red Emperor said. 

Ukraine / Russia: Ukraine expects to hold a new round of talks with the European Commission and Russia about natural gas supplies at the end of August in Vienna, Energy Minister Volodymyr Demchyshyn said on Monday. The European Commission has been mediating in a gas pricing dispute between Russia and Ukraine, an important transit route for gas to the EU, for more than a year. 

USA: America Resources Exploration has acquired oil and gas leases on five tracts in Utah, totaling 2,834 acres. The leases are located in Emery County, Eastern Utah and are subject to State of Utah royalties equal to 16.66%. Exxon Mobil's XTO Energy, ConocoPhillips and Anardako Petroleum all operate active wells in Emery County, Utah.

USA: Bechtel has been selected by Delfin LNG to perform front-end engineering and design for the first U.S.-based floating liquefied natural gas vessel (FLNGV) to go into service at Port Delfin. Port Delfin is a proposed deepwater port and floating LNG facility that will be located approximately 50 miles off the coastline of Cameron Parish, Louisiana. 

Energy Prices

Crude Oil ($/BBL)

Brent: $ 50.05 +3.54%
WTI: $ 44.63 +2.29%
OPEC Basket: $ 46.95 -0.32%

Natural Gas ($/MMBTU)
Henry Hub: $ 2.82 -0.70%

Steel ($/MT)
Steel Billet: $ 115.00
(LME Official – 3 months Buyer)

€ 1 = $ 1.0973 +0.05 %


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