General Interest - Quick Takes API: Industry will work with new president

The US oil and gas industry is looking forward to working with President-elect Barack Obama and a new Congress "to get to work on meaningful energy policy that contributes to economic stability," according to Jack Gerard, American Petroleum Institute president and chief executive officer.

"The American people have spoken loud and clear that they want politicians to put aside partisan bickering," Gerard said in a Nov. 5 news release. "The oil and natural gas industry stands ready to help put America's vast energy resources to good use, strengthening our nation's economy and energy security, and providing good jobs for Americans across the country," he added.

Gerard said the industry stands ready to help the new administration deliver "a comprehensive and realistic energy policy that encourages development of all domestic energy sources, including oil and natural gas, for the benefit of consumers."

Iraqi deputy oil minister escapes attempt on life

Iraq's Deputy Oil Minister Saheb Salman Al-Qutub was wounded in a bomb attack outside his home in the northern Ataifiyah neighborhood of Baghdad.

"The senior deputy oil minister Abdul Saheb Al-Qutub escaped an assassination attempt by improvised explosive device close to his house on Nov. 3," the oil ministry said.

"The deputy minister left the hospital after he received the required treatment," the ministry said, adding that Al-Qutub suffered slight wounds and his driver was severely hurt.

Al-Qutub, a Shiite from the southern province of Basra, also survived an assassination attempt in 2004 along the highway between Baghdad and Hilla, south of Baghdad. He was an adviser to the oil minister at the time.

Al-Qutub was appointed to his position last year when the former deputy oil minister, Abdul Jabar Al-Wagaa, a Sunni, decided to retire after being kidnapped along with four other ministry officials. Al-Wagaa was released a few weeks later.

The latest attempted assassination on Al-Qutub coincided with reports that Iraq's crude oil exports in October rose 3.6% to 1.703 million b/d from 1.644 million b/d.

Iraq exported 1.385 million b/d from the Basra oil terminal, while some 309,000 b/d were exported via pipeline to Turkey's Mediterranean port of Ceyhan. The remaining 9,000 b/d were trucked to neighboring Jordan.

NEB: Economic uncertainty dominates outlook

Canada has sufficient oil and natural gas supplies to meet winter demand, although price volatility is likely, the National Energy Board said.

"Markets here cannot help but be affected by the current volatility of world commodity markets," NEB Chair Gaetan Caron said Oct. 30 in his agency's winter energy outlook.

Fuel prices have declined on a combination of factors, including a deepening global financial crisis, falling demand, and a worsening US and global economic oudook.

NEB forecast that crude oil could average $50-75/bbl this winter on the New York Mercantile Exchange, where natural gas could average $6-9/MMbtu.

Heating oil prices are expected to track crude oil prices, which means average Canadian heating oil prices probably will be lower than last year.

Strong US natural gas production has helped to keep gas prices low while helping to ensure adequate gas supply.

Canadian drilling activity has stabilized but remains down from its 2005-06 winter peak, NEB said.

"Relative to the previous winter, Canadian production is expected to continue trending downward," given slowing gas drilling combined with declines in initial productivity of new wells, NEB said.

Exploration & Development - Quick Takes

Apache's Egyptian discovery tests 4,746 b/d

Apache Corp. said its WKAL-C-1X discovery in Egypt's Western Desert flowed on test at a rate of 4,746 b/d of oil and 4.4 MMcfd of gas.

"The WKAL-C-1X discovery represents the westernmost oil ever discovered in Egypt and confirms our exploration model for this area of the Faghur basin," said G. Steven Farris, Apache president and chief executive officer.

The West Kalabsha concession involves the Jurassic Safa formation in Faghur basin, 5 0 miles east of the Libyan border (OGJ Online, Aug. 11, 2008).

The well, drilled to 14,600 ft TD, logged 46 ft of Safa oil pay. It also logged 36 ft of pay in the Alem El Bueib 3 C formation. Wireline pressure data suggests the water level may be at least 190 ft below the base of the oil sand, Apache said.

Shell, ADNOC sign MOU for gas exploration

Royal Dutch Shell PLC will partner with Abu Dhabi National Oil Co. to carry out possible deep offshore gas exploration in the country.

The companies have signed a memorandum of understanding, and Shell plans to sign final agreements to quickly begin joint exploration and development activities.

Last year Shell's production in Abu Dhabi averaged 146,000 boe/ d.

Shell holds a 9.5% interest in a joint venture with Abu Dhabi Onshore Co., and it has a 15% stake in Abu Dhabi Gas Industries.

Total acquires interest in Nigerian licenses

Nigeria has approved Total SA's farming into two deepwater licenses off its coast. The French company will acquire a 25.67% interest in OPL 285, operated by OMEL Energy Nigeria Ltd., and a 14.5% interest in OPL 279, operated by OMEL Exploration & Production Nigeria Ltd. (OEPNL).

Nigerian firm EMO Exploration & Production Ltd. also is partner in both assets.

OMEL Energy and OMEL ?&? will shoot 500 sq km of 3D seismic and drill one exploration well on the blocks. The exploration period runs until 2012.

OPL 285, covering an area of about 1,170 sq km, lies 80 km offshore near Bonga field in400-900m of water.

OPL 279, which is 1,125 sq km in area, is 100 km offshore near Ehra and Bosi fields in 800-1,800 m of water.

"In the second 5 -year exploration period, which is optional, the work commitments will cover the acquisition of a further 500 sq km of 3D seismic and the drilling of two exploration or appraisal wells," Total said.

Total's offshore operated production in Nigeria currently comes from the OML 99, 1 00, and 102 blocks in joint venture with the Nigerian National Petroleum Corp. The main fields are AmenamKpono, Ofon, and Odudu area fields.

Total makes gas, condensate find off Brunei

Total SA has struck a new gas-bearing compartment of over 400 m in Brunei's offshore Maharaja Lela-Jamalulalam field.

The company said that on Block B within the ML- 4 well the column was equivalent to those already in production in the field. Gas also was found in deeper, high- temperature- high-pressure formations. Total will appraise the gas and condensate discoveries later.

The ML-4 well reached a TD of 5,227 m and was drilled in water 62 m deep, about 50 -km offshore.

"Following the successful MLJ2-06T well, the ML-4 well completes the first phase of an exploration drilling program that will resume in 2009," Total added.

Total supplies gas from Maharaja Lela-Jamalulalam field to the Brunei LNG liquefaction plant, which had an average production of gas and liquids of 28,500 boe/d in 2007.

Total operates Block B with a 3 7.5% interest; partner Shell Deepwater Borneo Ltd. holds 35%, and local partners 27.5%.