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BP Said in Talks for Share in Rosneft East Siberia Oil Producer

BP Plc (BP/) is in talks to buy a direct stake in an East Siberian oil producer from OAO Rosneft, the Russian oil producer facing U.S. and European financing bans, according to a person with direct knowledge of the matter. The talks about Rosneft’s Tass Yuriakh unit started some time ago, according to the person, who asked not to be identified because the information isn’t public. The stake may be valued at $700 million to $800 million, according to Russian daily Kommersant, which reported the deal earlier today. BP has remained committed to its partnership with Rosneft, in which it holds 20 percent, as Russia ’s relations with the U.S. and Europe sour over the conflict in Ukraine. U.S.-led sanctions, which restrict Rosneft from borrowing internationally and limit access to offshore and shale technology, don’t stop it from selling assets. BP has been seeking direct production ventures in Russia […]

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North Sea oil industry close to collapse

North Sea oil industry close to collapse thumbnail The UK’s oil industry is in “crisis” as prices drop, a senior industry leader has told the BBC. Oil companies and service providers are cutting staff and investment to save money. Robin Allan, chairman of the independent explorers’ association Brindex, told the BBC that the industry was “close to collapse”. Almost no new projects in the North Sea are profitable with oil below $60 a barrel, he claims. ‘Everyone is retreating’ “It’s almost impossible to make money at these oil prices”, Mr Allan, who is a director of Premier Oil in addition to chairing Brindex, told the BBC. “It’s a huge crisis.” “This has happened before, and the industry adapts, but the adaptation is one of slashing people, slashing projects and reducing costs wherever possible, and that’s painful for our staff, painful for companies and painful for the country. “It’s close […]

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BP caught between value over volume and falling crude prices

BP filling station If energy is turning into a game of shrink to survive, BP is ahead of its rivals. The tens of billions of dollars in disposals — including rigs, platforms and pipelines — that followed the disastrous Gulf of Mexico oil spill in 2010 have reshaped the oil and gas giant. Its “value over volume” mantra, pursued relentlessly by chief executive Bob Dudley, has become a byword for the majors’ efforts to curb costs, strengthen balance sheets and position themselves for a tougher, leaner world of lower oil prices . So much so, that even as the company moves to cut costs further in the face of a brutal 40 per cent slide in crude prices since June, a more profound question is being asked of BP. Sure, investors can see the benefits of capital discipline, but where are the discoveries that will power growth and keep […]

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British Gas Fined $17 Million for Missing Environmental Targets

LONDON—British Gas, the retail arm of utility Centrica PLC, was Thursday fined £11.1 million ($17.4 million) by the U.K.’s energy regulator for failing to meet certain environmental targets. The fine stems from investigation conduced by the regulator, Ofgem, that found the company had failed to meet environmental obligations under the Community Energy Savings Program and Carbon Emissions Reduction Target by a 2012 deadline. Under CESP, British Gas only reached 62.4% of its energy-saving obligations by the end of December 2012. This meant around 6,750 households in low-income areas experienced delays in energy-saving measures such as insulation that could have helped lower bills during the winter of 2012-13. The CERT program required certain gas and electricity suppliers to achieve targets for reducing carbon emissions within domestic properties. British Gas failed to meet its target on time, achieving 99% of its obligation. Until the shortfall was made up seven weeks later, […]

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U.K. Oil Producers Press for Tax Cuts as Crude Prices Collapse

The U.K. oil industry, after chafing at suggestions it’s subsidized by the state, wants Chancellor of the Exchequer George Osborne to help save it from the market’s crashing prices. Osborne’s Autumn statement tomorrow, setting out tax and spending policies, is a chance for the more than 500 companies represented by Britain’s oil lobby to press for what it says is a fairer deal. In a letter sent to the chancellor last month, Oil & Gas UK said the collapse in prices comes on top of a 26 percent jump in unit costs for the industry last year alone. “Expect news on how the government will look to shore up investment in the North Sea,” said Sanjeev Bahl, Numis Securities Ltd.’s director of oil and gas equity research. Britain has suffered the steepest drop in output of any major producer since supply peaked 15 years ago. Production has declined about […]

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London has faith in marine energy

Early setbacks are expected, but low-carbon technologies like wave energy are part of the future, the British government said. UPI/Shutterstock/Ethan Daniels "Tidal power has the potential to contribute significantly to Britain’s energy security and provide clean energy and predictable clean energy, as part of a diverse mix," British Energy Secretary Ed Davey said at an investment conference in London. In September, the British government launched its so-called Paris 2015 document ahead of next year’s international climate summit in France, describing how acting now on cutting greenhouse gas emissions can help deter future climate disasters. The government said the document shows how it’s giving "a decisive political signal" that the future of energy is low-carbon. Government data show renewable energy’s share in electricity generation increased 7 percent year-on-year to 19.4 percent. The use of fossil fuels in general has declined, with coal’s share falling 3.7 percent to 37.1 percent. The […]

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Shale revolutionary for United Kingdom, company boss says

Momentum is building behind fledgling British shale natural gas industry. UPI/Gary C. Caskey Ineos Chairman Jim Ratcliffe unveiled preliminary plans to give momentum to the fledgling British shale natural gas industry. At a Thursday conference, the chairman said substantial investments could follow developments in shale . "I believe shale gas could revolutionize U.K. manufacturing, and I know Ineos has the resources to make it happen, the skills to extract the gas safely and the vision to realize that everyone must share in the rewards," he said. Ineos acquired shale exploration and development licenses near a power plant a few hundred miles from the Scottish capital, Edinburgh. The British Geological Survey said the available reserves there are "modest." The emerging shale industry in the country has been met with opposition from environmental activists concerned about the fallout from the controversial drilling practice known as hydraulic fracturing, or fracking, as well […]

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Shale gas a top British priority, minister says

British government gets behind fledgling shale natural gas industry for the sake of energy security. UPI/Gary C. Caskey LONDON, Nov. 13 (UPI) — Putting full support behind the fledgling shale natural gas industry is the top priority for the British government, the British energy minister said Thursday. "Shale gas has great potential," British Energy Minister Matthew Hancock told delegates gathered for a regional energy conference. "It’s an opportunity we cannot afford to miss." A report this week from the University of Glasgow said existing regulations that mandate a halt to hydraulic fracturing operations if minor tremors are recorded are too stringent. The British government enacted restrictions in 2012 after minor tremors were recorded near a hydraulic fracturing site. University of Glasgow researchers said the measure kicks in for tremors on par with the seismic activity triggered by a passing truck. For Hancock, supporting the emerging shale industry in the […]

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BP Enhances Dividend as Profit Beats Estimates on Margins

BP Plc (BP/) ’s quarterly profit beat estimates as underlying production increased and refining margins improved. Europe ’s third-largest oil producer said it would pay stockholders a higher dividend for the period. Net income adjusted for one-time items and inventory changes fell 19 percent to $3 billion in the third quarter from $3.7 billion a year earlier, the London-based company said today in a statement. That beat the $2.93 billion average of 14 analyst estimates compiled by Bloomberg. BP will pay a dividend of 10 cents a share, a 5.3 percent increase from a year earlier. “BP is steadfastly continuing on its road to recovery,” said Richard Hunter , head of equities at Hargreaves Lansdown Asset Management Ltd. in London . “BP has been able to generate strong cash flow partly through an improved downstream performance.” While the refining business helped BP beat estimates, the overall decline in profit […]

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BP hurt by Russian economic downturn

Economic cloud hanging over Moscow hurts BP’s bottom line for third quarter 2014. UPI/Alex Volgin BP reported its third quarter profits were off 63 percent. Revenues for the third quarter dropped more than 3 percent year-on-year to $94.8 billion. From its operations related to Russian oil company Rosneft, BP said net income for the quarter was $110 million compared with $808 million during the same period last year. "The depreciation of the ruble against the dollar over the period had a significant impact on the result," the company said in its quarterly statement. The Russian currency hit an all-time low last week, trading at 42 rubles to the dollar. Western sanctions on its energy sector imposed in response to crises in Ukraine, coupled with record-level inflation and low oil prices, have hit the Russian economy hard. In its statement for the second quarter , BP warned any "future erosion" […]

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