OilVoice Magazine

OilVoice MAGAZINE
Edition One - April 2012
Fending off a sea of troubles 2012 Budget pushes drilling to next level Kenya hits oil The Bakken success story
OilVoice Magazine APRIL
Adam Marmaras
Manager, Technical Director
Issue 1 APRIL 2012 OilVoice Acorn House 381 Midsummer Blvd Milton Keynes MK9 3HP Tel: +44 208 123 2237 Email: press@oilvoice.com Skype: oilvoicetalk Editor James Allen Email: james@oilvoice.com Advertising/Sponsorship Adam Marmaras Email: adam@oilvoice.com Tel: +44 208 123 2237 Social Network Facebook:
https://www.facebook.com/oilvoice
Welcome
to the first edition of the OilVoice
Twitter:
http://www.twitter.com/oilvoice
Google+:
https://plus.google.com/118419367014 120616513/
Linked In: http://www.linkedin.com/groups/Oil Voice-3162868
Read on your iPad You can open PDF documents, such as a PDF attached to an email, with iBooks. When you view a PDF email attachment, simply tap "Open in iBooks," located in the upper-right corner of the screen. iBooks will open and you'll be able to view your PDF using the iBooks app.
Magazine. We've taken the very best featured content from our online site, and assembled it in an easy to read electronic format. We hope you like it! At OilVoice we've always experimented with different ways to deliver oil and gas news. Back in 2002 when the term 'RSS' was relatively unknown, we rolled out dozens of feeds for our users to subscribe to. That service is now used on a daily basis by thousands of people. When Twitter was still a baby we signed up and started delivering all our headlines out to the world , not knowing if the service would take off or not. Today, 2000 people receive our 40+ tweets a day. And finally, with the PC losing ground to tablets, we recently announced OilEarth.com - an iPad friendly site that presents headlines in a whole new way. We never stop innovating, and keeping abreast of all the latest technologies is something we enjoy doing. Our latest contribution to the industry is the magazine you are reading now. Available in electronic format only, we hope you find it a great read. By analysing the pageview statistics on OilVoice we can see what articles are drawing interest from the oil and gas community. Those are then harvested for the magazine. All killer, no filler - as they say. Special thanks must be made to the authors who have contributed the fantastic content inside OilVoice Magazine. We're lucky enough to have contributions from the top writers in the business, and it goes without saying that if you like what you read, then please visit their website and see what else they have to say. We'd love to hear from you too, so if you'd like to have an article appear in the next edition, then please get in touch. Thanks for reading! Adam Marmaras OilVoice
press@oilvoice.com |+44 208 123 2237
Contents
Aprils Featured Authors
Biographies of this months featured authors.
3 5 5 7 8 8 9 10 11 13 16 16 17 19 20 21 23 24 26 28 29 30
Who will survive oil refinery competition from the Middle East?
By Hanife Mehmet
Review: The Middle East: Still on top...

By Richard Etherington
Recently Added Companies
An overview of the recent companies added to the OilVoice database.
North Sea caught in Scottish independence row

By Hanife Mehmet By David Bamford By David Bamford
Insight: The US locomotive gets under way! Exploration: The Bakken success story The price of safety in the spotlight again
By Hanife Mehmet By Eric Watkins By Eric Watkins
Watching World Energy: Showdown in Sudan Operational Energy: Fending off a sea of troubles Exploration: What's happening in the Arctic?
By David Bamford
2012 Budget pushes drilling to next level

By Hanife Mehmet By Eric Watkins
Watching World Energy: Turmoil in the South China Sea Watching World Energy: Rattling the supply chain
By Eric Watkins
Exploration: Arctic Gas Hydrates - a stupendous gas resource!

By Halfdan Carstens
Review: Is the oil industry of Brazil progressing?

By Richard Etherington
Featured University of the Month Review: Can Petrobras deliver?

By Richard Etherington By Eric Watkins
This month we are featuring Heriot-Watt University
Watching World Energy: Crossing swords in the Gulf Kenya hits oil
By Hanife Mehmet By Camilo Muoz By Eric Watkins
Doing Business with Petrobras: How to score a goal Watching World Energy: A double whammy on Iran
Aprils Featured Authors

OilVoice is always on the lookout for quality, original content. We receive submissions from people in the industry on a regular basis, who in turn benefit from our large user base. You get a chance to broadcast to the industry and spread the word, and we get fantastic original content. Get in touch for more details!
Hanife Mehmet Contract Jobs

Hanife Mehmet is a copywriter working for contractjobs.com, the contract only job board and news resource for freelance professionals. The site provides information for professional temporary workers from all leading industry sectors including the oil and gas sector.
Richard Etherington OilEdge

Richard Etherington works as a freelance journalist. Richard, a BA Hons Political Science graduate, is also a fully trained sub-editor and reporter.
David Bamford OilEdge

David Bamford is non-executive director of Tullow Oil, and a past head of exploration, West Africa and geophysics with BP.
Eric Watkins Oil Diplomacy

Oil Diplomacy produces news, analyses, commentary and tailored research concerning the global oil and gas industry. Watching World Energy, which appears daily, comments on current events in the energy industry
Halfdan Carstens GEO ExPRO

Halfdan obtained a M.Sc. in Geology from the University of Oslo and then worked for Saga Petroleim for five years including a year in the US. He also worked for Nopec and PGS, before becoming Founding Editor of GEO ExPro Magazine. He is Editor of the Norwegian geological magazine GEO.
Camilo Muoz Translation Source

Translation Source helps companies communicate worldwide by offering comprehensive multilingual solutions based upon client needs. Our solutions are developed in more than 140 languages and include a full range of language translation and localization services, international training and e-learning development, interpretation, instruction, bilingual staffing and other supporting linguistic services.

Submitted March 01, 2012

Who will survive oil refinery competition from the Middle East?
Indian Oil refinery Essar has put forth the notion that the UK may well see refinery closures in the near future, due to stiff competition. While bigger establishments in Cheshire may be able to handle the tough economic market, rivals may find the profitability balance too difficult to achieve. Following a collapse of a refinery in Coryton, which supplied 20% of the south-east's fuel, competition presented by the middle-east and India has gained more momentum. The Petroplus owned site went into administration in January, putting over 900 jobs on the line. Chief executive at Essar stated: 'There is some sort of structural change in the refining industry globally. Refineries that were small-sized or low-complexity are being replaced by large, complex refineries mostly built in the Asia-Pacific region Those refineries that are not economically sustainable or of low complexity will find it much harder to survive in this marketWe believe that there has to be some shake-up in the European refining industry and that uneconomic capacity will move out." So if this 'shake-up' never materialises, what will this mean for oil and gas contract jobs? Many of those working in smaller refineries may be questioning their current vacancies.
Review: The Middle East: Still on top...

It is hard to talk about the Middle East region without mentioning its number one cash crop, oil, in the same breath. More recently, however, the words 'political' and 'tension' have acquired similar status. While the Middle East may be continue to be the 'bread basket' of the global oil industry, the energy risks that come with it will never been far behind. Indeed, the risk of a damaging shock is always just around the corner, and the same could be said for a potential spike in prices. Although the popular political unrest that spread rapidly across the MENA (Middle East & North Africa) region last year hit the North African nations and subsequently the local oil industry the hardest, Middle Eastern operations did not escape unscathed. Indeed, the ongoing violence and uprisings in both Syria and Yemen continue to grab headlines and the attention of world leaders even today. The political tension in these two nations also poses serious questions of Middle East oil production outside of the OPEC (Organisation of the Petroleum Exporting Countries) grouping. Despite the recent volatility, the Middle East's dominance of global oil supply is unlikely to be challenged anytime soon. After all, the Persian Gulf states are sat
press@oilvoice.com | +44 208 123 2237
upon huge reserves and as such they remain the key region for oil export. Among them, however, is a clear wild card: Iraq. Despite being a stellar producer with strong potential for future output growth, political agendas may serve to cloud the country's medium to long-term oil industry growth ambitions. The escalation of the war of words between Iran and some of the world's leading powers has stepped up a notch this year, over the former's development programme for nuclear energy. On the back of this earlier this month, Iran announced that it would be stopping the sale of crude oil to British and French firms, pledging to sell to new customers instead. The pre-emptive move came in the wake of the US urging its allies to scale down on their purchases of Iranian crude as part of the foundations for a broader scheme of sanctions. In turn this prompted the European Union (EU) to ban all oil purchases from Iran. However, in knowledge of the fact that the ban would not take full effect before the end of 2012, Tehran acted first to send out a clear political message to the allies. And this message was only ever going to lead to one thing: a spike in prices. Indeed a halt of Iran's oil exports to Organization for Economic Cooperation and Development (OECD) nations could well trigger as much as a 20% to 30% spike in the price of a barrel of oil, according to the International Monetary Fund (IMF). In fact, helped in part by Iran's dispute with a number of Western nations,
prices have already begun climbing. At the time of writing on February 23, Brent crude futures have risen by 11% in the 2012 year-to-date to above $120 a barrel (up by around $12 from the start of the year). Moreover, around 9% of that jump higher has come in the month of February alone, as the rhetoric surrounding the Iran embargo hardened. Although prices are widely expected to continue trending higher in the near term, the likely scenario is that the likes of Saudi Arabia, Libya and Iraq will step in and increase their respective supplies, helping to normalising prices somewhat and subsequently help cool nerves surrounding Iran's role as an oil exporter. In sum it appears that while the Middle East may be continue to be the 'bread basket' of the global oil industry, the energy risks that come with it will never been far behind. Indeed, the risk of a damaging shock is always just around the corner, and the same could be said for a potential spike in prices.
Recently Added Companies

The OilVoice database has a diverse selection of company profiles, covering new start-up companies through to multi-national groups. Each of these profiles feature key data that allows users to focus on specific information or a full company report that can be accessed online or printed and reviewed later. Start your search today!
Surmont Energy
Oil Sands
Surmont Energy Ltd is a privately held oil sands company founded in 2011 and headquartered in Canada. Their philosophy was built on a foundation of integrity, honesty, scientific principle, creative applications and hard work.
http://www.oilvoice.com/Description/caa9ede0.aspx
Grand Gulf Energy

Conventional Oil and Gas
Cardinal Midstream
Natural Gas
Cardinal Midstream, LLC is a natural gas midstream company focused on providing exceptional customer service in the areas of natural gas gathering, transportation, processing and treating.
http://www.oilvoice.com/Description/c38d2148.aspx
Grand Gulf Energy is focused on low-risk, conventional oil and gas plays in Louisiana, Texas and Arkansas, close to existing infrastructure and close to or within existing oil and gas production.
http://www.oilvoice.com/Description/1fbd4d90.aspx
Texas Energy Group

Crude oil and natural gas
Hawk Exploration
Crude Oil and Natural Gas
Hawk is a company engaged in the exploration, development and production of conventional crude oil and natural gas in western Canada and is based in Calgary, Alberta.
http://www.oilvoice.com/Description/6d30d596.aspx
Texas Energy Group, LLC (TEG) is an Austin, Texas based oil and gas exploration and development company specializing in bringing industry prospects to the private investor.
http://www.oilvoice.com/Description/ad42ced0.aspx
NAL Energy Corp.

Oil and Gas
North Atlantic Drilling

Offshore Drilling
North Atlantic Drilling is a leading offshore harsh environment drilling company, aiming to be their customers' most important partner in making oil and gas available in a safe and cost-effective manner.
http://www.oilvoice.com/Description/6da6d4b1.aspx
NAL Energy Corporations strategy is to deliver total return to its investors which combines income with modest growth in the Canadian upstream oil and gas industry.
http://www.oilvoice.com/Description/bc8328cd.aspx
List your business free of charge on OilVoice in a few simple steps.
Oil Refineries Ltd.

Oil Refinery
Oil Refineries Ltd. (ORL), located in the bay area of Haifa, is Israel's largest Oil refinery.
http://www.oilvoice.com/Description/d47a9540.aspx

increase among local workers. But before this is even considered, oppositional opinion shows that greater emphasis needs to be given to the Scotland's apparent dependency on separate UK spending. Whatever the outcome, possible consequences from both propositions are too risky for a decision to be decided upon straight away.
North Sea caught in Scottish independence row

While Independence is very much still on the political agenda concerning Scotland, new fuel to the fire has been added in the form of North Sea Oil. According to claims, Scotland would have been in a much better position compared to the rest of the UK if it's entire North Sea Oil revenue was included in the Scottish government's annual analysis report. Although the opposition have expressed that this in fact shows that Scotland is too heavily dependent on North Sea oil revenue, many also believe that this could hold the key to exposing Scotland as far more financially sound than the rest of the UK. If Scotland were to gain full control of its share of North Sea oil, it would be worth around 81% of the rest of the UK's North Sea income. Scottish finance secretary, John Swinney stated on the matter: "With responsibility for our own finances and our own vast natural resources, we will be able to make choices in our own best interestsWith independence, we would control the fiscal levers we need to suit our own economic circumstances and maximise Scotland's potential to secure new investment and jobs." If 'full control' was eventually granted to the Scottish Government, it is possible that oil and gas contract jobs could

Insight: The US locomotive gets under way!

A recently released report states that, in total, an estimated 26 billion to 61 billion barrels of economically recoverable oil could be produced in the United States using currently available CO2-EOR technologies and practices, or potentially more than twice the country's proved reserves. Expanded use of CO2-EOR also can advance the development of infrastructure needed for long-term capture, transportation and storage of carbon emissions. The US National Enhanced Oil Recovery Initiative (NEORI) was formed to help realize CO2-EOR's full potential as a national energy security, economic and environmental strategy. Organized and staffed by the Center for Climate and Energy Solutions (C2ES) and the Great Plains Institute (GPI), the Initiative
brought together a broad and unusual coalition of executives from the electric power, coal, ethanol, chemical, and oil and gas industries; state officials, legislators and regulators; and environmental and labor representatives. A great report is available - I offer just one extract: 'Amidst economic uncertainty, fiscal crisis and political division over energy policy, carbon dioxide enhanced oil recovery (CO2-EOR) offers a safe and commercially proven method of domestic oil production that can help the United States simultaneously address three urgent national priorities: Increasing our nation's energy security by reducing dependence on foreign oil, often imported from unstable and hostile regimes; Supporting job creation, increasing tax revenue, and reducing our trade deficit by keeping dollars now spent on oil imports here at home and at work in the U.S. economy; and Protecting the environment by capturing and storing CO2 from industrial facilities and power plants, while getting more American crude from areas already developed for oil and gas production. A largely unheralded example of American ingenuity, CO2-EOR was pioneered in West Texas in 1972 as a
way to sustain oil production in otherwise declining oil fields. It works by injecting CO2 obtained from natural or man-made sources into existing oil fields to free up additional crude oil trapped in rock formations. In this way, CO2-EOR can significantly extend the lifespan and revitalize production of mature oil fields in the United States." Exactly!!

Exploration: The Bakken success story

Discovered in the 1950s, North Dakota's Bakken Formation oil production was just 1,500 bpd in 2004. Today, it exceeds 440,000 bpd and is expected to be 700,000 bpd within the next few years. Just what is going on there? The longer version of this article is by Tom Smith and can be found in Geoexpro. (Page 52 or page 50 in the pdf!). The Bakken is one of a growing number of shale formation success stories, thanks to new, innovative technologies that make unconventional plays possible, as well as to the constant quest of the oil and gas companies to find new reserves. The increase of Bakken oil production in North Dakota has come within the past five years. In the beginning of 2007, North Dakota had 303 wells producing 12,000 bopd. By early 2009, that number had risen to 904 wells producing
10
106,000 bopd. Jump to November of 2011 (the most recent date published for North Dakota) where 3,118 wells were producing 443,425 bopd. The North Dakota Department of Mineral Resources predicts that oil production from the Bakken and Three Forks Formations will exceed 700,000 bpd in the next four to seven years. North Dakota is not the only area currently with Bakken production. Neighbouring Montana, where the present oil boom originated (see GEO ExPro Vol. 7, No. 2), has been producing a steady 64,000 boepd. Further north in Canada, production is 75,000 boepd. In total, there are around 5,700 producing wells, with about 2,000 new wells to be drilled this year.
While the middle member is the primary reservoir target, all the units shown are potential reservoir targets, with oil production from the Three Forks Formation growing rapidly.
The price of safety in the spotlight again

Since the oil spill in the Gulf of Mexico, health and safety has been on every oil and gas professional's lips when engaging with new projects. But perhaps it's a case of lesson not learnt for some UK oil and gas companies according to Green MP, Caroline Lucas. While UK companies are putting all their efforts into projects concerning Artic Water resources, Lucas has suggested that financial and environmental factors have been put in the side lines. She stated: "There is no reason to believe that that any lessons have been learned from the Deepwater Horizon blowout. They seem to be shutting their eyes and crossing their fingers that they will not have a spill and it beggars belief that they are not able to tell shareholders how much it would cost to deal with a worst case scenario. Either it has not been done or we were not being told," Shell and Cairn energy have been put in the firing line for not putting forth pollution information and safety procedures to investors, leaving many in the dark. It may be a case of too little too late, as Cairn have already started
The Bakken Formation is divided into three informal members and lies between the Three Forks and Lodgepole formations. The upper and lower shale members are world class source rocks.
11
drilling off the coast of Greenland and Shell have proposed to start their drilling expedition this coming summer. Shell have defended their lack of safety information by stating that they had not attached fixed prices to spill clear ups due to the fact that the risk was 'very small'. While the area in question could open up hundreds of oil and gas contract jobs, the battle between safety and diving straight in continues between green MP's and oil and gas companies continues.
were asked by police to leave. When they refused, officers swooped in for the arrests. The protestors included Martin Luther King III, NAACP President Ben Jealous, Enough Project Co-Founder John Prendergast, President of United to End Genocide Tom Andrews and four US Congressmen: Jim McGovern, D-Mass., Al Green, D-Texas, Jim Moran, D-Va., and John Olver, D-Mass. CLOONEY'S EXPERTISE CITED If anyone doubts Clooney's sincerity in protesting on behalf of the beleaguered Sudanese people, they need to think again. The Hollywood actor, nominated for an Oscar this year, has long been on this issue as underscored by his role as producer and narrator of Sand and Sorrow, a documentary depicting the horrors perpetrated in the region by alBashir's regime. Clooney certainly has the respect of US leaders, too. Just days before his protest at the Sudanese embassy, he testified before the Senate Committee on Foreign Relations which held a hearing on independence and insecurity in Sudan and South Sudan. Committee Chairman Sen. John Kerry introduced Clooney as an actor, but underlined his credentials by referring to him as co-founder - along with John Prendergast - of an important means to understand events in the region. 'They represent the Satellite Sentinel Project, which has given us a window in to events in Southern Kordofan and Blue

Watching World Energy: Showdown in Sudan

Actor George Clooney, fresh off a visit to the White House last week, found himself a guest of another branch of government a few days later: the US Secret Service. Along with Clooney, at least eight others were given similar accommodations, including his father Nick Clooney. They were all arrested after staging a protest at the Sudanese embassy in Washington D.C. Their demand? That Sudanese President Omar al-Bashir immediately end his government's blockade of food and humanitarian aid intended for people in the Nuba Mountains and Blue Nile regions. After speaking on the steps of the embassy to hundreds of activists, Clooney along with other activist leaders
12
Nile and elsewhere,' Kerry said, adding that the two had just returned from Sudan. 'So I think today we will have a good opportunity to really get some insights, and we welcome it,' he said. SUDAN'S SHUTDOWN RAISES US GAS PRICES Quite apart from the humanitarian crisis now brewing in Sudan, Ranking Committee Member Sen. Richard Lugar noted that the impact of the 'bloody fighting' has been brought home to the US in the form of higher gas prices. 'When the comprehensive peace agreement, signed in 2005, finally achieved the separation of South Sudan from the north last July, it was hoped that the petroleum wealth that they share, oil from the south exported through pipelines in the north, would be deemed too precious for either side to forego,' Lugar said. 'Instead, however, oil exports have stopped, putting upward pressures on oil prices globally. Even though the United States imported no oil from Sudan, oil is traded on a world market. So in today's tight oil market, any major loss of supply affects all prices,' he said. Clooney and Prendergast are highly aware of the role played by oil in the current crisis. Indeed, two years ago, in an Op-Ed for The Washington Post, they were explicit in linking Khartoum's policy of terror to its drive to secure the country's oil.
IT'S ABOUT OIL 'Over the past 20 years, the regime in Khartoum has armed and politicized the northern communities that border Abyei, using them as a battering ram to drive out residents and ensure control of the area's valuable oilfields,' Clooney and Prendergast wrote. They went on to quote Dinka inhabitants of Abyei on their need for the oil that lies underneath their lands: 'We have suffered so much for so long. The oil is a gift for our suffering. We cannot give it away. We just want to feel the winds of freedom.' The repercussions of the situation in Sudan go far beyond the Dinka, now stretching all the way into the highest levels of international politics as Sudan's oil is mostly exported to China, thirsty for every drop it can find. Apart from higher gas prices, though, the shutdown of oil production in South Sudan also makes a problem for Washington D.C., given its efforts to get Beijing on board with sanctions against Iran. In the Kerry hearing, Prendergast recognized that point and drew it to everyone's attention. HIGH ON THE INTERNATIONAL RADAR SCREEN 'To put a fine point on what this moment does present with the cut off of the oil, is that President Obama and President Hu are going to meet very soon,' he said. 'This is a chance to put the issue high on the radar screen of the two leaders.'
13
The D.C. protest that saw the arrest of one of Hollywood's most famous actors, along with a host of other activists was not a stunt. Clooney, Prendergast, and all of the others know exactly what is at stake. Yes, it's about oil, but oil that will enable the Dinka and other South Sudanese to feel the winds of freedom. It's also about oil that could spell the difference between war and peace in the Middle East.
reduced manning problems, and oil also enabled refueling at sea - something hard to imagine with coal. Still, Churchill also knew that there was something about oil that would make it a hard sell with his defense chiefs. 'To change the foundation of the navy from British coal to foreign oil was a formidable decision in itself,' he said. VAST OIL TRUSTS 'The oil supplies of the world were in the hands of vast oil trusts under foreign control,' he said. 'To commit the navy irrevocably to oil was indeed to take arms against a sea of troubles' Nearly a hundred years later, the U.S. Department of Defense has come to recognize the same risk in the use of oil that is under foreign control, and it has come to fight it with a new concept called Operational Energy. 'The newest area of focus for the DoD is energy - more specifically, renewable energy, and even more specifically, advanced biofuels,' said Raymond James analyst Pavel Molchanov in a note to investors this week. 'The DoD, however, is actually putting its money where its mouth is in terms of providing tangible support - not just rhetoric - for companies that could eventually be significant fuel suppliers for the armed forces,' Molchanov said. STRAIT OF HORMUZ 'This comes at a time when geopolitical threats to oil supply abound - including, but by no means limited to, Iran's threat to shut down the Strait of Hormuz,' he

Operational Energy: Fending off a sea of troubles

Winston Churchill knew what he was doing when he took the decision to transform Britain's Royal Navy from a coal-burning fleet to an oil-burning force in the early 1900s. But he also knew the risks. 'The advantages conferred by liquid fuel were inestimable,' he said, knowing that oil had double the thermal content of coal so that boilers could be smaller and ships could travel twice as far. Then, too, oil enabled greater speed and burned with less smoke than coal so that the fleet would not reveal its presence as quickly. Oil also could be stored in tanks anywhere, allowing more efficient design of ships. Oil could also be transferred through pipes without reliance on stokers, which
14
said, echoing an idea Churchill would have understood. If anyone would know about Churchill's sea of troubles, it would be the U.S. Navy, which reaches around the globe to every hotspot imaginable. It certainly has accepted the idea that energy is a strategic resource and that energy security is fundamental to its mission. 'From a strategic perspective, the objective is to reduce reliance on fossil fuels,' the Navy says. 'Tactically, the objective is to use energy sources available on location and increase energy efficiency to reduce the volatility that is often associated with long fuel supply transport lines.' As far as renewables go, the US Navy has a clear plan in mind: By 2020, 50% of its total energy consumption will come from alternative sources. According to Molchanov, several firms are involved in the effort to step up production of biofuels for the Navy, including Solazyme, which produces algae-based oils, and Syntroleum, which produces biodiesel. ORDERING BIOFUELS In 2009, the Navy ordered 20,000 gallons of Solazyme's HRF-76 Naval Distillate, the renewable equivalent of the Navy's main shipboard fuel, and another 150,000 gallons a year later. The June 2011 test flight of the MH-60S Seahawk helicopter, using a 50% biofuel blend, involved the first-ever military aircraft to fly with algae-based jet fuel. Earlier this month, the Navy announced that the USS Ford successfully transited
from the ship's homeport in Everett, Wash., to San Diego, Calif., using '25,000 gallons of a 50/50 algaederived, hydro-processed algal oil and petroleum F-76 blend in the ships LM 2500 gas turbines.' THUMBS UP TO F-76 According to Richard Leung, Naval Sea Systems Command Navy Fuels engineering manager, the biofuel was virtually indistinguishable from ordinary marine diesel. 'The crew reported no change in their typical procedures when receiving, handling, or processing the biofuel, and said operational performance of the fuel system and gas turbine engines on the blend was almost identical to operations on traditional F-76,' Leung said. For the U.S. Navy, the tide is turning. Its transition away from petroleum marks the end of an era, but one that makes sense - especially with demand rising and supplies concentrated in the hands of ever fewer producers. Where's the security in that?
Health, Safety, Environment and Risk Management

RPS Energy is a global multi-disciplinary consultancy, providing integrated technical, commercial and project management support services in the fields of geoscience, engineering and HS&E.
Contact James Blanchard T +44 (0) 20 7280 3200 E BlanchardJ@rpsgroup.com
rpsgroup.com/energy
16

challenging frontier the oil & gas industry has faced whether we consider how to explore and develop in the ice, the costs involved, the environmental risks, the rights and needs of indigenous peoples. I recommend a couple of Geoexpro articles to you: one by myself and another by Jane Whaley
Exploration: What's happening in the Arctic?

Spring and summer approaches and the shoots of oil & gas activity in the Arctic are showing through! How 'green' are they? As mentioned in an earlier article, the Norwegian sector of the Barents Sea is attracting a lot of interest and just recently it was reported that development drilling is scheduled to begin this month from the first permanent offshore platform in the Russian Arctic. Over 500 workers are currently preparing the platform, towed from Murmansk in August of last year, for drilling, deferred from last September. The platform is located in the eastern Pechora Sea, and is 90% surrounded by ice. Shell is putting into place plans for exploration drilling in the Alaskan Arctic including taking what many regard as 'pre-emptive' legal action to prevent their operations being disrupted by protests. And Cairn Energy is attempting to farmdown its circa 80,000 sq km net West Greenland acreage position after a disappointing 2011 drilling campaign which has resulted in them writing off just shy of US$950m. So the Arctic is beginning to acquire the characteristics of routine exploration activity - and yet the area is far from routine, indeed is probably the most

2012 Budget pushes drilling to next level

Many things were expected to come from the 2012 budget announcement yesterday thanks to circulating rumours and hints from Government officials. However, one factor that came of the Budget run-down has come as a shock to some people, mainly green campaigners. This is due to an announcement that will see a 3bn tax break from George Osborne to assist BP and other major companies commence new drilling off the north shore of Scotland. Although this has the potential to spark fresh investment into the area, creating hundreds of oil and gas jobs, campaigners argue that new expeditions are too risky, especially following the Gulf of Mexico spill two years ago. The Chancellor stated on the issue: "We will end the uncertainty over decommissioning tax relief that has hung over the industry for years by
17
entering into a contractual approach ... We are also introducing new allowances including a 3bn new field allowance for large and deep fields to open up west of Shetland, the last area of the basin left to be developed." The voice of campaigners is likely to be drowned out by the Government and the UK oil and gas industry alike, who both view the tax break as the beginning of a more sustainable oil and gas industry in Britain. Derek Leith from Ernst & Young in Aberdeen commented following the 2012 Budget announcement: "We see today's action by the Treasury as a turning point for the UK's oil and gas industry - towards a more stable future fostered by constructive collaboration between the government and industry to ensure that the recovery of the country's oil and gas resource is maximised."
inhibit the ability to produce some of it,' said Robert Hormats, U.S. undersecretary of state for economic growth, energy and the environment. Hormats' remarks came after the Philippines said that it has the right to invite foreign companies to explore for oil and gas in waters located between its western coast and the South China Sea remarks dismissive of China's own claims. 'It is illegal for any country, government or company, without the Chinese government's permission, to develop oil and natural gas in waters under Chinese jurisdiction,' said Chinese foreign ministry spokesman Hong Lei. EXPLORATION ANNOUNCED The dispute arose after the Philippines' Energy Secretary Jose Almendras announced that his country had invited international oil companies to explore for oil and gas offshore Palawan province in

two areas that fall within the country's 200-mile exclusive economic zone. Palawan province faces the South China Sea, which is claimed entirely by China. But other nations in the region, including the Philippines, Brunei, Malaysia, Taiwan and Vietnam, have competing claims of their own. Claims over portions of the sea can have immense bearing on ownership of any oil or gas that lies under the region's waters, according to the U.S. Energy Information Administration. But no one knows for sure just how much oil and gas is actually there. According to EIA, one Chinese estimate
Watching World Energy: Turmoil in the South China Sea

Even as world attention is mesmerized with the Strait of Hormuz, worrisome problems are now arising in the South China Sea, a region along the allimportant energy sea lane of communication out to Asia Pacific. 'You have this conundrum of a region that needs energy and yet has a lot of territorial disputes or gray areas that
18
suggests potential oil resources as high as 213 billion barrels of oil (bbl), but EIA also mentions a 1993/1994 estimate by the U.S. Geological Survey which put reserves at just 28 billion bbl. EVIDENCE QUESTIONED EIA notes speculation that the Spratly Islands could be an untapped oil-bearing province, but it said that, 'There is little evidence outside of Chinese claims to support the view that the region contains substantial oil resources.' Of course, there is only one way to find out and that is to explore, explore, explore. The problem, though, is that overlapping claims to the region are hindering exploration. That was certainly true a year ago when two Chinese vessels threatened to ram the Veritas Voyager, a survey ship hired by U.K.-based Forum Energy PLC. The Philippines government dispatched a surveillance plane, patrol ships and light attack aircraft to the disputed area, known as Reed Bank. By then, though, the Chinese vessels had vanished and Forum decided to suspend its exploration activities. Now, a year on, Forum Energy apparently is planning to return to Reed Bank, aiming to drill its first well for oil and natural gas, an event that some analysts say could spark a military crisis if China responds more aggressively than it did last year. TOP PRIORITY Still, that year has seen a significant change in the posture of the U.S. in the
region, with President Barack Obama announcing in January that Asia Pacific is now his country's top priority in terms of global defence. That view was underlined in early March by Admiral Robert Willard, head of the U.S. Pacific Command, who said that the America's military must be present in the South China Sea. China was less confrontational in 2011 in asserting its claims in the South China Sea than it was in 2010, Willard told the Senate Armed Services Committee. But Willard also noted that China continues to challenge vessels conducting oil and gas exploration within space that it claims as its own. In a word, he said, 'They remain aggressive.' LITMUS TEST Just how aggressive they will remain is yet to be determined, perhaps by U.S. plans for war games in April with the Philippine navy near Reed Bank - war games that one analyst suggests will be viewed by China as provocative. 'This will be a litmus test of where China stands on the South China Sea issue,' said Ian Storey, a fellow at the Singapore Institute of Southeast Asian Studies. According to Storey, the Chinese 'could adopt the same tactics as they did last year and harass the drilling vessels, or they might even take a stronger line against them and send in warships.'
19

East Asia's markets - including Japan. No less important, Okinawa lies near the trajectory of North Korea's planned missile launch next month. Indeed, on announcing the launch, the North Koreans pointedly said their rocket would be heading in a southerly direction so as to avoid the Japanese mainland. 'A safe flight orbit has been chosen so that carrier rocket debris to be generated during the flight would not have any impact on neighboring countries,' the North's news agency said. The Kwangmyongsong-3, designed as a 'polar-orbiting earth observation satellite,' will be launched from a station in the northwestern corner of the country, bordering China, and blasted in a southern direction, North Korea said. However, the Japanese are so concerned about the trajectory crossing Okinawa that they have plans to shoot down the North Korean missile, if necessary. JAPAN DEPLOYS INTERCEPTORS 'I have ordered officials to prepare to deploy the PAC-3 and Aegis warships,' said Japan's Defense Minister Naoki Tanaka, referring to surface-to-air missiles and destroyers carrying missiles. 'We are talking to relevant local governments about the deployment,' he added, as the surface-to-air interceptors are likely to be deployed on Okinawa and its island chain. The North Korean missile launch also is Pyongyang's way of thumbing its nose at
Watching World Energy: Rattling the supply chain

Does North Korea's threat to launch a ballistic missile next month have anything to do the global oil industry? If you believe not, I'll sell you the Empire State Building or the Egyptian pyramids. Does that phrase ring a bell? It should. It was uttered just a few days ago by Saudi Arabia's indefatigable Oil Minister Ali I. Al-Naimi who was dismissing Iran's threats to close the Strait of Hormuz as bluster. Along the way, though, the minister also mentioned an interesting point about Saudi oil storage tanks: 'Our inventories both in Saudi Arabia and worldwide are full. Our Rotterdam inventory is full, Sidi Kerir is full, Okinawa is full. 100% full. 10 million barrels in total, I think.' 'The reason we have them there, is that they are near the market. And I will give you an example,' Al-Naimi said. 'Two weeks ago the Chinese needed about 1.5 million barrels on a rush basis. It is the first cargo we sold from Okinawa, because it is near the market.' NEAR THE MARKET Okinawa is indeed near the oil market, and it is also a terminus for the very large crude carriers that ply the supply chain that stretches from the Persian Gulf, across the Indian Ocean, through the Strait of Malacca and northward to
20
the March 26-27 Nuclear Security Summit to be held across the 38th Parallel in South Korea. Leaders and representatives from 57 countries and international organizations are scheduled to attend the summit, where protection of nuclear facilities and steps to tackle nuclear terrorist threats are high on the agenda. What else can North Korea's planned launch be called except a nuclear terrorist threat? And it is a threat aimed at the world's main oil supply line, with its terminus in Japan. POINT-COUNTER-POINT Does this have anything to do with the Iranian situation? Call it point-counter-point: as the U.S. and its allies apply pressure to Iran at one end of the supply chain, North Korea is rattling its nuclear capability at the other end. And nothing could make the need to encourage Iran to abandon its nuclear ambitions more clear. Who wishes to see both ends of the world's main oil supply line in the hands of enemies holding nuclear weapons along with the ability to deliver them thousands of miles? If you think oil prices are high now, just imagine how much higher they'd go then. That would really make the markets go ballistic.
Halfdan Carstens GeoExpro

Exploration: Arctic Gas Hydrates - a stupendous gas resource!

The Arctic contains huge volumes of conventional oil and gas, but if we also include non-conventional hydrocarbons such as gas hydrate - the Arctic may be a source of energy for centuries to come. Arctic Alaska and Arctic Russia are two established petroleum provinces that have already produced vast volumes of oil and gas. In addition, the USGS has concluded that some 400 Bboe, including 90 Bb of oil, have yet to be discovered in the Arctic. That amounts to 25% of the undiscovered resources worldwide as judged by the same experts. The Russians, on the other hand, claim that as much as 58% of the world's undiscovered oil and gas belong to the Arctic. As a comparison, the annual world oil production is about 30Bbo. For oil, five basins stand out in the USGS assessment: Arctic Alaska, the Amerasia Basin, East Greenland Rift Basins, the East Barents Basins and West Greenland-East Canada, while three basins account for most of the undiscovered gas: the West Siberian Basin, the East Barents Basins and Arctic Alaska. If we combine oil and gas and convert to oil equivalents, it turns out that the West Siberian Basin alone may contain 30% of the Arctic oil and gas to
21
be found. It is worthwhile to keep in mind that almost all of the Arctic resources (84%) are expected to found offshore and in water depths less than 500m. These numbers, however, are dwarfed when we include gas hydrates. While the figures for unconventional resources definitely are more speculative than for conventional oil and gas, there is reason to believe that there may be enough gas around the Arctic to keep the hydrocarbon economy going for several centuries. 'Peak oil' takes a different meaning when we look at resources from that perspective. 'The energy content of methane occurring in hydrate form is immense, possibly exceeding the combined energy content of all other known fossil fuels,' said Espen Andersen of Statoil at the Arctic Frontiers conference in Troms, Norway, in January. Gas hydrate is a solid, crystalline material formed from natural gas (mainly methane) and water. 1 m3 of hydrate contains about 164 m3 gas (at STP). Gas hydrate occurs on land in permafrost regions and in oceanic sediments in Gas Hydrate Stability Zones (GHSZ), ocean continental slopes and deep continental shelves. Gas hydrate will be stable in the very cold Arctic Ocean sediments from depths as shallow about 350m. 'Gas hydrate is an environmentally secure resource in an environmentally fragile area like the Arctic region. It is a thermodynamically stable solid in its natural environment and is unlikely to be
spatially associated with petroleum,' according to Michael Max of Hydrate Energy International speaking at the Arctic Frontiers conference. 'What matters is the volume of gas hydrates accumulated in sand sediments. Even if a small fraction of the energy contained in natural gas hydrates can be commercially produced, it could substantially increase the volume of clean-burning natural gas and improve global energy security by reducing imports,' said Andersen. While the US consumes about 125 Tcfg a year, the Arctic may on its own contain some 6,000 Tcf, according Michael Max. But, beware, that is not to be looked upon as 'reserves'! We are talking about highly speculative, undiscovered resources.

Review: Is the oil industry of Brazil progressing?

When you think of the Latin American oil industry, you immediately think of Brazil. And rightfully so. The nation already leads the pack in the region and it will only continue to cement its position at the top over the coming years. Indeed thanks to the industry's strong fundamentals in Brazil, it is very easy to be bullish on the outlook for the industry. So much so in fact that upon his visit to Brazil last
22
year, US premier Barack Obama paid homage to the country's strong offshore potential and made moves to put the US at the front of the queue for exports stating that 'when you are ready to start selling, we want to be one of your best customers.' On a macroeconomic level, the BRIC nation has enjoyed rapid economic growth over recent years and this is appears unlikely to change anytime soon. This year-on-year growth will likely serve to continue to push demand for oil from domestic consumers higher still. The likely result? Rising demand for fuel will force Brazil's hand to expand its refining base further still. Simultaneously, the continued growth in production output is widely forecast to continue over the near, medium and long-term, as a combination of new projects come on stream and production levels at existing projects are sent rising higher. Although the outlook is largely positive, this is not to say that there will not be bumps along the way. A poor 2011 for state-run giant Petrobras has already brought some concerns to the forefront of the industry's consciousness. Last month, the industry behemoth announced its results for the fourth quarter of 2011 and they were not pretty: profits were down by 52% yearon-year and production levels were depleted also. The firm's problems were then compounded by leading Brazilian lender Banco Bradesco downgraded its rating for the firm. All that said,
Petrobras remains the undisputed leader of Brazil's lucrative oil sector. So if the country's strong fundamentals were not enough to convince you, then this will be: Brazil is rich in subsalt, and the rush for it has only just begun. The discovery of billions of barrels of oil in the subsalt oil province in Brazil's offshore territory has the potential to take Brazil's domestic oil industry to a whole new level - and the local government has already realised this. Former president Lula de Silva made several regulatory reforms that placed the responsibility for developing these untold reserves at the door of the statebacked operator. Foreign operators will, however, have the opportunity to play their part. In fact Statoil - Norway's national oil firm - has already shown interest on muscling its way into the equation, via the potential takeover of the assets of a firm with a strong subsalt portfolio, independent player Anadarko Petroleum. The US-based firm is presently in the process of withdrawing from the upstream segment of South America's leading economy. The potential of the subsalt sector is vast, but nobody yet knows to quite what degree. Importantly for the local oil industry, however, the government and Petrobras appear to have a good handle of things from the outset - which bodes well for the nation's rising role as a global energy and oil industry leader in the coming years.
23
Featured University: Heriot-Watt

With a history dating back to 1821, Heriot-Watt University has established a reputation for world-class teaching and practical, leading-edge research, which has made them one of the top UK universities for business and industry. Theyre a vibrant, forward-looking university, well known for the quality of their degrees with employers actively seeking out their graduates. Heriot-Watt is also Scotlands most international university with an unsurpassed international in-country presence. They deliver degree programmes to 11,800 students in 150 countries around the world, have a campus in Dubai and boast the largest international student cohort in Scotland.
Contact Heriot Watt Heriot-Watt University Edinburgh EH14 4AS Scotland Tel: +44 (0)131 449 5111 Prof. Patrick Corbett Tel: +44 (0) 131 451 3171 patrick.corbett@pet.hw.ac.uk
Energy research is a core activity at Heriot-Watt University. Through the pan-university Energy Academy, research excellence ranges from solar energy and energy-focused materials through to energy economics, use, policy and logistics. The perspective of energy research at the University has changed in recent years and our interaction with the international agenda of climate change, sustainability and security of supply has informed a 'big picture' vision of how best to match our skills base to the emerging research and knowledge exchange challenges.
RPS are proud to be an OilVoice Sponsor for Heriot Watt University RPS is a global, multi-disciplinary consultancy, providing integrated technical, commercial and project management support in the fields of geoscience, engineering and HS&E to the energy sector. Want to Sponsor a University? OilVoice has created an opportunity for companies to help students gain a valuable insight into the industry from a worldwide perspective by sponsoring unrestricted OilVoice access to a university of their choice. Read more
25

expenditure programme, valued at around US$225 billion over five years. The recent change at the helm, which saw Maria das Graca Foster become the company's new Chief Executive Officer, should serve to bring in an era of consistency to Petrobras. Indeed in her first press conference, the new CEO stressed a policy of continuity, with the firm's investment plans and production targets for 2012 likely to remain unchanged. Without doubt, the Petrobras story is one of continued growth. This is not to say, however, that the energy giant has not encountered problems along the way. More recently, the firm has begun struggling on a financial level. 2011 saw the firm's shares slump by 17% during the twelve-month period, underperforming the 1.2% drop in the Bovespa benchmark index - according to Bloomberg. At the same time, the company posted worse-than-expected fourth quarter results in 2011, with net profit more than halved from a year earlier as a result of the firm's downstream operations weighing on its performance. Perhaps even more concerning however, is the fact that Petrobras has failed to meet its own production targets for the best part of three years now. At the end of last year, the firm's global production level stood at 2.72 million bpd - lower than it was twelve months prior. This certainly does not bode well for the company's ability to lift its global production levels in the near-term. But there is some hope: back in
Review: Can Petrobras deliver?

Acting Local But Thinking Global? State-run Petrleo Brasileiro - or Petrobras as it is more commonly known - is widely regarded as a world leader in deepwater exploration. The industry giant controls virtually all upstream oil and gas production in Brazil, as well as dominating exploration activity. Furthermore, the Rio de Janeiro-based firm owns most of Brazil's refining capacity. Quite simply, the South American company is a giant. Already a leading player in Latin America, Petrobras has big aspirations: by the end of the decade, the firm hopes to have become one of the world's five largest energy players - and with the right management and strategy, this is not an unrealistic possibility. This will, however, require plenty of hard work: the company has forecast that it will more than double production to 6.4 million barrels of oil per day (bpd) by the year 2020. Although the firm is 54% government owned (including voting rights) and is decreed to adhere to state energy policy, Petrobras remains autonomous in many ways. Most notably the firm is keen to remind investors that it maintains control over a large share of its operations and its finances - which is significant given that Petrobras boasts the world's largest corporate capital
26
October, the company was pleased to report the successful drilling of six wildcat wells in the Espirito Santo Basin. This has effectively served to unlock a new oil province, with a resource base reported to be up to 5.4 billion barrels, with further upside potential from two nearing exploration areas in the same basin. It remains to be seen, however, if even such projects will help to stem the rot and see Petrobras' global production return back to being positive anytime soon. Significantly, Petrobras' poor performance on both an economic and production front have come at a crucial time for the fast-growing Brazilian economy. As a result, demand for petrol is soaring. So at a time when Petrobras' domestic refining capacity is strained, the government has thrown in the towel to some extent and has started importing fuel at higher global market rates to meet the heightened level of demand. To cut a long story short, Brazil, with Petrobras as its vehicle for reaching its energy goals, remains a long way off energy self-sufficiency.

Watching World Energy: Crossing swords in the Gulf

Saudi Arabia's Oil Minister Ali I. Al-Naimi has been at pains in recent weeks to underline his country's desire to see lower oil prices, this week in an editorial for the Financial Times. 'High international oil prices are bad news. Bad for Europe, bad for the US, bad for emerging economies and bad for the world's poorest nations,' Al-Naimi said, and few would take issue with that. But he also insists that 'a period of prolonged high prices is bad for all oil producing nations, including Saudi Arabia, and they are bad news for the energy industry more widely.' Behind that remark is much of Saudi Arabia's philosophy when it comes to oil - its most precious commodity. Indeed, with upwards of 260 billion barrels of oil still in the ground, Saudi Arabia has the world's largest reserves. MONEY SPINNER As a result, the Saudis are looking to have their oil be a money spinner for years to come. Assuming they produced 10 million barrels per day, 365 days a year, the Saudis would produce about 3.65 billion barrels a year. At that hypothetical rate, they have around 80 years of production left assuming they discover no new reserves
27
and assuming they stay at 10 million barrels a day. Does anything sound more like money in the ground than that? Wouldn't anyone like to keep it that way? Keeping it that way is exactly what the Saudis want and that is why they always aim for moderation in pricing. They know, and know only too well, that high prices are an invitation for consumers to seek cheaper sources of supply or, for that matter, cheaper forms of energy. That's why Al-Naimi says that, 'The bottom line is that Saudi Arabia would like to see a lower price.' And his explanation makes perfect sense, too. 'It would like to see a fair and reasonable price that will not hurt the global economic recovery, especially in emerging and developing countries, that will generate a good return for producing nations, and that will attract greater investment in the oil industry.' FINANCIAL INCENTIVE In a word, a moderate price keeps everyone happy, and productive. Most of all, it is in the interest of oil producers such as Saudi Arabia to keep exploring and producing oil: they have a financial incentive to keep their industry going. Doesn't that make sense, too? So, what's with high prices these days? Al-Naimi concedes that, 'geopolitical tensions in the region, and concerns over supply, are helping to keep prices high.' That's short-hand for what we all know: the current troubles with Iran. 'Yet fundamentally the market remains
balanced,' he says. 'It is the perceived potential shortage of oil keeping prices high - not the reality on the ground. There is no lack of supply. There is no demand which cannot be met. Total commercial stocks for OECD nations are within target, and there is at least 57 days forward cover, enough to handle almost any eventuality.' Can the Iranians close Hormuz? No. Can the Saudis make up for Iran's sanctioned oil? Yes. Here is a man who knows the score, and it is summed up in that wonderful distinction he makes between a perceived shortage and a real one. That is the distinction on which so much of today's trading turns: not on whether there is an actual disruption of supply but on whether there could be one. SLIGHT UNCERTAINTY Al-Naimi acknowledges that there is enough oil on hand and in storage to handle 'almost any eventuality.' And it is that slight uncertainty which is driving the market: what if what if what if? People are betting, and they do not want to bet the wrong way. Too much is at stake. But the bet is still on a perception, a possibility. Against that, Al-Naimi offers a lifetime of experience in his country's oil industry. He started out as an Aramco office boy, don't forget, and he has risen in its ranks over the course of a lifetime. If there's something about the oil business he doesn't know, then it probably is not worth knowing.
28
In a word, Al-Naimi is letting us know that those who bet on the possibility of something going wrong - of some hypothetical demand not being met - are betting against the proven realities of the oil trade over decades. As he says: 'We want to correct the myth that there is, or could be, a shortage. It is an irrational fear, a fear without basis.' And so it is. But there is something else that AlNaimi is not disclosing: that it is in the interest of Iran to create and play on the possibility of supply shortages precisely in order to drive prices higher and higher. This is a new use of the oil weapon, and the Iranians are adept at it. CROSSING SWORDS WITH IRAN In their efforts to keep world oil prices reasonable, the Saudis are crossing swords with Iran or, if you will, oil weapons. And why should they not? A nuclear Iran standing just across the Gulf is the last thing the Saudis want to see - and they are not alone in that. Saudi Arabia is doing its level best to keep oil prices low as part of the international effort to thwart Iran's nuclear ambitions. Lower oil prices means less income for Iran and its effort to acquire nuclear weapons. Saudi Arabia is also pumping more oil than it has in decades. The reason for that is clear, too. More Saudi oil means a diversity of supply, and that means more choice for countries that want to stop buying Iran's oil in support of the sanctions regime. Al-Naimi is an oil diplomatist par
excellence, too diplomatic perhaps to be so pointedly clear in the purpose of pumping more oil to achieve lower prices. In the long run, it is certainly to preserve his country's market share. But for the immediate future, it is to support the international effort to thwart Iran's nuclear ambitions. The Saudis know how to use the oil weapon, too.

Kenya hits oil

This week, Kenyan officials reported that oil had been found in the country for the first time. Tullow Oil Plc came across the find in the North Kenya and is now in the process of discovering the commercial value and validity of the discovery. President Mwai Kibaki stated: "This is the first time Kenya has made such a discovery and it is very good newsIt is, however, the beginning of a long journey to make our country an oil producer, which typically takes in excess of three years." Although establishing Kenya as a progressive oil provider to the world may be a tedious journey, the opportunities and oil and gas contract jobs it could open are undeniably bountiful. Kenyan energy officials and Tullow Oil Plc have both adamantly expressed that the find is to benefit the Kenyan public. This may be in order to deter fears
29
realised in other countries where oil has been found but not used to help the home economy. Kenya's energy minister Kiraitu Murungi stated:'We will make sure that the oil in Kenya is a blessing for the people of Kenya and not a curse"
technology. In the meantime, the company remains committed to investment in research and development in order to maintain their competitive advantage. No matter what your game is, the prospects for doing business with Petrobras have never been better. 2. Know who you're dealing with: Petrobras is Brazil's pride and joy as
Camilo Muoz Translation Source

proved by former Brazilian President Lula who once said 'If Petrobras were a woman, it would be the one that all mothers would like their sons to be married to.' Boasting $70billion in the last five years, business is booming and the company has a lot to be optimistic about as the newly appointed CEO Maria das Graas Foster brings a new perspective to the company. Nicknamed 'the Iron Lady of Oil' this self-made woman rose from one Rio's favelas to become the first woman to head Petrobras, the largest company in South America. 3. Learn what they're looking for: Petrobras employees are loyal to their company and applaud the many professional development and learning opportunities offered at Brazil's oil giant. Petrobras prides itself in its constant search for improvement, excellence, and profitability allied with social and environmental responsibility. If you want to do business with Petrobras, you will need to show that you are playing the same game, which brings us to our next tip.
Doing Business with Petrobras: How to score a goal

Doing business with Petrobras, Brazil's largest oil company, may seem intimidating but opportunities abound in this ever-expanding company. Before you throw yourself in the game, take a look at our 7 unknown tips to optimize your relationship with Petrobras. 1. Know the prospects: Petrobras' made history in 2006 with their huge discovery of pre-salt and a conservative estimate projects that reserves will double thanks to broad access to new reserves. Exploration in Brazilian sedimentary basins show incredible hydrocarbon potential and deep-water discoveries in Brazil make up 1/3 of global discoveries from 20052010. This planned expansion means many new refineries as well as critical resources and equipment will be required and US$4.6 billion has been set aside for investment in cutting-edge
30
4. Avoid Foul Play: Many of our oil and gas translation clients have found that Petrobras is truly committed to social and environmental responsibility; this is reflected in their long-term business strategy. Terms such as 'corporate citizenship' and 'sustainable development' have been prevalent in Brazilian consumer society for years and Brazil is on the cutting edge of innovating and implementing new procedures that keep up with global environmental protection standards. Petrobras states explicitly that it works towards 'managing the potential impacts of its activities and projects geared to the protection of endangered areas and species'. They've set the bar high so if you have hopes of doing business with Petrobras, you'll need to show them that are able to keep up in areas of environmental protection. 5. Develop an entry strategy: It is said that business in Brazil is based on personal relationships but when it comes to doing business with Petrobras, it's going to take more than a contact to get your foot in the door. An organized, clear cut business plan is a must since the company has strict requirements on procurement and procedures. 6. Play by Their Rules: If you want to be successful in doing business with Petrobras, you can't ignore their ground rules. Your product or service must be fully qualified and you will need to develop a complete proposal
or bid package to even be considered. Petrobras establishes a straightforward but complex bidding process and invitations aren't always broadcast so it can be difficult to spot the upcoming opportunities. Experts such as oil and gas translators may make the process run smoother for you and a partnership with a local company will also help you score the bid. 7. Move Forward: After you've landed the contract with this multi-billion dollar oil company, you'll have much to celebrate but before you sit back and enjoy the caipirinhas, you'll first want to ensure that your partnership is successful and will lead to future collaborations. The best advice out there is 'don't go it alone.' Pair up with local experts that can help you with international staffing, local tax and labour laws, as well as Portuguese language services to assure that your business with Petrobras is communicated effectively.

Watching World Energy: A double whammy on Iran

If Tehran thought it was going to evade U.S. and E.U. sanctions by using its own Islamic Republic of Iran Shipping Lines (IRISL) or Yas Air cargo lines, it has been sadly disappointed.
31
Washington imposed more sanctions on IRISL this week due to its connections with the Islamic Revolutionary Guard Corps. It said IRISL has 'played a key role' in Iran's efforts to advance its missile programs and transport other military cargoes. 'The IRGC has continued to expand its control over the Iranian economy - in particular in the defense production, construction, and oil and gas industries,' it said - a reminder that Iran's Oil Minister Rostam Qasemi is a Brigadier General in the IRGC. The US Department of the Treasury also designated two IRISL front companies based in Malta: Modality Limited and Malship Shipping Agency Ltd. It said that the companies are owned by Mansour Eslami, an IRISL executive.
around the globe under a variety of guises all aimed at bypassing sanctions. 'Despite the sanctions 130 of the 144 banned ships in IRISL's fleet continue to call at many of the world's major ports hidden behind a web of shell companies and diverse ownership,' the report said, naming Malta as a place where the Iranians can play those shell games. 'Despite being a member of the European Union, Malta not only supplies flagging services to IRISL ships, but is also home to 24 shell companies that help conceal Iran's ownership of vessels,' the report said. PAPER TRAIL In the Grand Harbor of Malta, Transport
PRIOR DESIGNATION It said that Eslami had already been designated in October 2010 for his role as director of an IRISL subsidiary, IRISL (Malta) Ltd., and for his co-management of several IRISL-affiliated holding companies. Two IRISL employees were also designated this week including a senior IRISL legal advisor, Seyed Alaeddin Sadat Rasool, and Ali Ezati, IRISL's Strategic Planning and Public Affairs Manager. The announcement of new sanctions follows a media report last month that claimed IRISL has continued to operate
Malta earns around 300,000 euros annually from registering IRISL ships, according to an estimate by Reuters based on a table of tariffs on the agency's website. Transport Malta also is home to the country's public shipping register, the location of the paper trail of Iran's shell games, as well as evidence of those who have worked for the country. As sanctions have tightened, the Maltese register shows that Iran's ships have regularly switched not just flags, but names, registered owners, registered agents, and the addresses of owners and agents. The IRISL announcement came just a day after another one designating the Iranian cargo airline, Yas Air; Behineh
32
Trading; three Iranian Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF) officials; and one Nigerian shipping agent for acting for or on behalf of, or providing support to, the IRGC-QF. 'The airline, the trading company and the IRGC-QF officials were involved, respectively, in shipments of weapons to the Levant and Africa, further demonstrating Iran's determination to evade international sanctions and export violence and instability throughout the Middle East and beyond,' the Treasury said. COVERT ARMS TRADE It said the Tehran-based Yas Air is an Iranian cargo airline that acts for or on behalf of the IRGC-QF to transport illicit cargo - including weapons - to Iran's clients in the Levant. In particular, it said, Yas Air has moved IRGC-QF personnel and weapons 'under the cover of humanitarian aid.' According to the announcement, IRGCQF officials oversaw and authorized actions taken by Yas Air that involved a series of flights carrying weapons destined for Syria and worked with Hizballah and Syrian officials to ensure passage of the illicit cargo. It said that a Turkish inspection of one of the Yas Air flights bound for Syria which listed 'auto spare parts' on its cargo manifest - found weapons including Kalashnikov AK-47 assault rifles, machine guns, nearly 8,000 rounds of ammunition, and an assortment of mortar shells.
Behineh Trading, the shipping company, and the Nigerian agent designated today were involved in a weapons shipment seized in Nigeria in late October 2010. 'This weapons shipment - orchestrated by the IRGC-QF and intended for The Gambia - is part of a larger pattern of Iranian lethal aid shipments to clients in Africa and around the world,' the announcement said.

OilVoice Magazine - April 2012

Hochgeladen von

Dokumentinformationen

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

OilVoice Magazine - April 2012

Hochgeladen von

Copyright:

Verfügbare Formate

Edition One - April 2012

OilVoice Magazine APRIL

to the first edition of the OilVoice

Linked In: http://www.linkedin.com/groups/Oil Voice-3162868

press@oilvoice.com |+44 208 123 2237

OilVoice Magazine APRIL

Biographies of this months featured authors.

Review: The Middle East: Still on top...

Recently Added Companies

An overview of the recent companies added to the OilVoice database.

North Sea caught in Scottish independence row

2012 Budget pushes drilling to next level

Exploration: Arctic Gas Hydrates - a stupendous gas resource!

Review: Is the oil industry of Brazil progressing?

Featured University of the Month Review: Can Petrobras deliver?

This month we are featuring Heriot-Watt University

press@oilvoice.com |+44 208 123 2237

OilVoice Magazine APRIL

Aprils Featured Authors

Hanife Mehmet Contract Jobs

Richard Etherington OilEdge

David Bamford OilEdge

Eric Watkins Oil Diplomacy

Halfdan Carstens GEO ExPRO

Camilo Muoz Translation Source

press@oilvoice.com |+44 208 123 2237

OilVoice Magazine APRIL

Hanife Mehmet Contract Jobs

Richard Etherington OilEdge

Review: The Middle East: Still on top...

press@oilvoice.com | +44 208 123 2237

OilVoice Magazine APRIL

press@oilvoice.com | +44 208 123 2237

OilVoice Magazine APRIL

Recently Added Companies

Grand Gulf Energy

Texas Energy Group

NAL Energy Corp.

North Atlantic Drilling

List your business free of charge on OilVoice in a few simple steps.

Oil Refineries Ltd.

press@oilvoice.com | +44 208 123 2237

OilVoice Magazine APRIL

Hanife Mehmet Contract Jobs

North Sea caught in Scottish independence row

David Bamford OilEdge

Insight: The US locomotive gets under way!

press@oilvoice.com | +44 208 123 2237

OilVoice Magazine APRIL

David Bamford OilEdge

Exploration: The Bakken success story

press@oilvoice.com | +44 208 123 2237

OilVoice Magazine APRIL

The price of safety in the spotlight again

press@oilvoice.com | +44 208 123 2237

OilVoice Magazine APRIL

Eric Watkins Oil Diplomacy

Watching World Energy: Showdown in Sudan

press@oilvoice.com | +44 208 123 2237

OilVoice Magazine APRIL

press@oilvoice.com | +44 208 123 2237

OilVoice Magazine APRIL