Croatia: Exploration Tender Goes Live
Croatia has published its international tender for oil and gas exploration blocks in the Adriatic Sea, hoping to launch production in five years. The tender was launched on 2 April, and will be open for seven months, with concessions expected to be awarded in early 2015 at the latest. Croatia hopes to attract around $2.5 billion in exploration investment, and so far Exxon Mobil, Shell and Italy's Eni (Agip unit) have expressed interest. Up for tender are 29 offshore blocks ranging between 1,000 and 1,600 square kilometers. Exploration concessions will likely be given for five years with extension possibilities, while exploitation concessions will be 25 years.
Interested investors can bid on a limited number of blocks. OP Tactical is working with potential investors to help determine the suitability of certain blocks based on their location and what geologists expect to find in terms of gas versus crude. OP Tactical also takes potential investors through the regulatory climate, as well as setting up introductions with potential partners and power brokers, with full spectrum due diligence. There will be some hindrances in the form of environmental protests, as the drilling could harm the local fishing and tourism industries, which account for a large part of the country's current revenues. (For more information on this venue and how to get a foothold, contact OP Tactical.)
Argentina: Subsidy Cuts Promise Backlash
The…
Croatia: Exploration Tender Goes Live
Croatia has published its international tender for oil and gas exploration blocks in the Adriatic Sea, hoping to launch production in five years. The tender was launched on 2 April, and will be open for seven months, with concessions expected to be awarded in early 2015 at the latest. Croatia hopes to attract around $2.5 billion in exploration investment, and so far Exxon Mobil, Shell and Italy's Eni (Agip unit) have expressed interest. Up for tender are 29 offshore blocks ranging between 1,000 and 1,600 square kilometers. Exploration concessions will likely be given for five years with extension possibilities, while exploitation concessions will be 25 years.
Interested investors can bid on a limited number of blocks. OP Tactical is working with potential investors to help determine the suitability of certain blocks based on their location and what geologists expect to find in terms of gas versus crude. OP Tactical also takes potential investors through the regulatory climate, as well as setting up introductions with potential partners and power brokers, with full spectrum due diligence. There will be some hindrances in the form of environmental protests, as the drilling could harm the local fishing and tourism industries, which account for a large part of the country's current revenues. (For more information on this venue and how to get a foothold, contact OP Tactical.)
Argentina: Subsidy Cuts Promise Backlash
The government of Argentina has moved to reduce natural gas and drinking water subsidies by 20% in an effort to narrow the budget deficit, but the move is expected to lead to widespread protests. Our partners at Southern Pulse noted on 27 March that water bills are expected to increase by as much as 400%, while gas bills could up by over 280 percent. The reduction in subsidies in expected to lower consumption by discouraging waste, and will affect homes and businesses, but not industry.
Brazil: Next Oil-Rights Auction in Mid-2015
Brazil is preparing to hold its next auction of oil concessions in the middle of next year, while the government works on new sale rules. At the current pace, the government expects the auction to take place in the first half of 2015 at the latest.
Colombia: Bidding Begins in April
The formal opening for bidding on Colombia's next round of onshore and offshore oil concessions begins on 11 April. This will also be the first time the country is auctioning off shale blocks. Colombia will auction off a whopping 230 oil blocks in different areas of the country, including the Pacific region and a zone near the maritime border with Nicaragua, though the aim of this round of bidding is to auction off up to 50 blocks, for which 80 companies have been qualified to compete so far. The country's National Hydrocarbons Agency (ANH) has published the draft terms of reference for bidders. Contracts are expected to be finalized by the end of July this year. Terms are now more favorable, particularly an extension of deep-sea exploration contracts to nine years (up from six years) and exploitation time to 30 years.
Late last year, Colombia made two potentially large discoveries. In December 2013, Ecopetrol, in partnership with Canada's Talisman Energy, announced their exploration area could contain around 1.3 billion barrels of crude, around 10% of which was estimated to be recoverable. That same month, Ecopetrol said another area of exploration (Cano Sur Este) held proven reserves of 22.4 million barrels.
Mozambique: Anadarko to Sell Gas Linked to US Oil and Gas Prices
Anadarko Petroleum Corp. has announced that it has closed deals to sell Mozambique gas at a hybrid price linked to oil and US natural gas prices. The hybrid price is based on a formula combining Henry Hub and world oil prices, accounting for shipping and treatment. It is modeled loosely on the oil-linked indexes for LNG trading with Asia. The high cost of these African LNG projects has made pricing formulas a critical issue.
Peru: Promises to Ease Environmental Restrictions
Peru's new minister of energy and mines says the government is considering a package of reforms that would make the permitting process for investors faster and easier, and could end up exempting some oil exploration projects from environmental impact studies. The new minister, Eleodoro Mayorga, is a former World Bank petroleum economist and only took up position in the ministry last month. His view is that the environmental impact studies are overly burdensome in some cases, taking years to conduct. The announcement comes as Peru prepares to open bidding on six offshore oil blocks in May and another 26 blocks in the jungle by the end of this year.
To read the full article
Please sign up and become a premium OilPrice.com member to gain access to read the full article.
Register Login