Statoil (OSE: STL, NYSE: STO) has sold its 15.5% participating interest in the Shah Deniz production sharing agreement, 15.5% share in the South Caucasus Pipeline Company (SCPC), 15.5% share in the SCPC holding company, and 12.4% share in the Azerbaijan Gas Supply Company (AGSC) to the Malaysian oil and gas company PETRONAS. The transaction value is USD 2.25 billion.
“Statoil has created significant value by participating in the development of this asset over the years and we are pleased to announce this deal with PETRONAS. The divestment optimises our portfolio and strengthens our financial flexibility to prioritise industrial development and high-value growth,” says Lars Christian Bacher, executive vice president for Development and Production International in Statoil.
In recent years Statoil has strengthened its resource base and industrial opportunity set. To prioritise high potential future developments, Statoil has realised substantial value from transactions on the Norwegian continental shelf and internationally. This portfolio optimisation continues to increase financial strength and flexibility to deliver on our strategy for high-value growth. Statoil’s 2014 second quarter production from the Shah Deniz field was 38,000 barrels of oil equivalent per day.
Statoil’s 2014 second quarter production from the Shah Deniz field was 38,000 barrels of oil equivalent per day.
Lars Christian Bacher, executive vice president for Development and Production International in Statoil.
Following the divestment, Bacher says, “We remain committed to our business in Azerbaijan, which continues to play an important role in Statoil’s international portfolio.”
The effective date is 1 January 2014. The transaction is expected to be closed early 2015, subject to approval from the relevant authorities.
Shah Deniz
The Shah Deniz field was discovered in 1999. It is located on the deep water shelf of the Caspian Sea, 70 kilometres south-east of Baku, in water depths ranging from 50 to 500 metres. Shah Deniz Stage 1 began operations in 2006. The Shah Deniz partners are currently producing approximately 26 million cubic meters of gas and 53,000 barrels of condensate per day, approximately equivalent to 225,000 barrels of oil equivalent per day.
The Shah Deniz field is operated by BP (28.8%) and the other partners are TPAO (19%), SOCAR (16.7%), Lukoil (10%), Nico (10%).
Critical Need for Optimised Performance in the Oil & Gas Industry Spurs Demand for Industrial Automation Solutions Oil & Gas sector -- what lies ahead for industrial automation players
AKA: The rapid development in communication and IT, as well as the feasibility of integrating field operations with onshore operational centres, will see new solutions for integrating automation and information systems. This development has already begun, and is expected to have significant growth potential.
For the marine/shipping side of the offshore oil and gas industries, adoption of these technologies is lagging other industries. There is a vast opportunity in utilising modern automation in terms of optimising the performance of vessels, reducing fuel consumption, and to have a much better monitoring of the performance as well as technical conditions of the plant. We see opportunities to be utilised first in the higher end segments where the daily values in charters and costs can justify the return of such investments.
The need to adapt for challenging environments
AKA: In general, the automation solution is changing from being loop-oriented to be process- and plant- oriented. Optimising loops are being extended to optimise the overall process and plant control systems. As a consequence of this, the requirements for reporting performance have increased. Safety and availability becomes more important as operations are moved to more challenging environments and less accessible areas; which means that automation systems become more advanced in terms of monitoring and predicting performance and technical conditions. Remote connectivity towards shore-based operational centres with the operators and/or suppliers also gains more importance.
End-users' reluctance to migrate to the latest technology
AKA: Such reluctance is not necessarily unhealthy, as one should always consider the benefits of upgrading the plant to the costs of upgrade and potential disturbances in the system.
My thoughts about this are, that when making a major investment in a new plant, or upgrade, the decision should not only be based on what you get today, but to also consider the long term strategy for the technology being selected. The technology is moving fast, and it is impossible to always have the latest technology installed in all plants; but it is still possible to plan for the years to come by designing a system that has the ability to extend in structure and functionality without replacing all of it. There might be additional costs to a system that is designed for long term operation and compatibility to future technologies, but this allows for a much more continuous and gradual implementation of new technologies that will provide a steady improvement in the performance and efficiency of the plant.
Showcasing top-notch industrial automation solutions at OSEA2014
OSEA2014 is set to unveil a lineup of industrial automation system solutions that enable manufacturers, processors and even transporters in the oil and gas industry to manage their assets and costs effectively across the value chain. Visitors will be able to get in-depth information on how they can build on existing software or systems to enhance workflow processes, improve plant or process efficiency and even enhance output and safety through controls or instruments that can accurately pinpoint the location to drill for oil or gas.
Aside from ABB, companies such as 3R Software Solutions, D'Mark Technologies, Endress + Hauser (S.E.A), Honeywell, Imtech Marine, International Metal Engineering, Masstron, MIE Industrial, Mitsubishi Electric Asia, PRÜFTECHNIK S.E.A., Rockwell Automation, Seal Control, Siemens, Vega Instruments (SEA), Wyeco Auto Valves and Yokogawa will be highlighting their industrial automation solutions at the event.
OGmTech2014 -- Manufacturing solutions for oil and gas
OGmTech, the International Exhibition on Manufacturing Technology for Oil & Gas, will make its debut at OSEA2014. Focusing on definitive manufacturing solutions, OGmTech2014 represents a value-added platform that brings forth an array of formidable, high-end precision engineering technologies and capabilities for the Oil & Gas industry.
OSEA2014 International Conference -- Prominent platform for in-depth discussions
Held concurrently with OSEA2014, the conference provides an invaluable ground for in-depth discussions that tackles the needs of Asia's oil and gas industry.
Featuring a new theme "Unlocking the Full Potential of Offshore Reserves with Innovative Solutions", the Conference has 10 tracks to address pertinent topics such as the future outlook for oil and gas supply and exploration, resource management through oilfield recovery, latest developments and technologies in unconventional and deepwater environments, specialised panel sessions as well as two workshops focusing on best practices in drilling & well design and asset integrity management.