Venezuela Amuay still starting up
PUNTO FIJO: Venezuela’s 645,000-bpd Amuay is not yet completely up and running though the adjacent 310,000-bpd Cardon refinery is nearly fully operational after a blackout, a union leader and workers said. The massive 955,000-barrel-per-day (bpd) Paraguana refinery complex was hit by an electrical fault on Januay 13. Amuay’s cat cracker and flexicoker were still down, union boss and government critic Ivan Freites said. Another worker at Amuay, who asked to remain anonymous because he is not authorized to speak to media, said "the units are starting up slowly."
Colombia cuts oil price forecast
BOGOTA: Colombian Finance Minister Mauricio Cardenas cut the government’s oil price forecast, saying this could spell more austerity measures in order to meet the country’s fiscal deficit goal.
He cut the estimate for this year’s average oil price to $34.7 per barrel from an initial $50, adding that the tumble in oil prices will affect the Andean country’s tax intake and economic growth.
"We have to get used to these new oil prices, this will probably mean more measures of economic austerity to meet our deficit goal," he said during an economic conference in Bogota. The forecast for Colombia’s oil production was also reduced, to 944,000 barrels per day from a former projection of 955,000 bpd.
Destin to resume maintenance
NEW YORK: Destin Pipeline said it had removed an obstruction at its beach valve site in Pascagoula, Mississippi, that was hindering pigging operations on its 36-inch offshore segment.
The pipeline company said it was developing plans to carry out an alternative operation last week when it had temporarily suspended work at its beach valve site after efforts to remove the obstruction were unsuccessful. Pigging is done to clear or inspect pipelines without stopping operations. The company, majority-owned by BP’s Amoco Destin Pipeline Co, with Enbridge’s Enbridge Offshore holding a 33 per cent stake, said it is now developing plans to resume maintenance pigging operations.
Nigeria’s crude exports to rise
LONDON: Nigeria’s crude oil exports were on track to increase in March, a compilation of loading programmes showed. Several key grades were set to increase from the previous month, including Bonny Light, Bonga, Forcados, Brass River and Escravos, early loading programmes showed. One of the 10 cargoes of Qua Iboe set for March loading was also deferred from the February programme, setting it slightly higher than the previous month.
Ophir signs deal with Schlumberger
NEW YORK: Oil and gas explorer Ophir Energy said it signed a non-binding heads of terms agreement with Schlumberger by which the latter would receive an interest in its Fortuna project in Equatorial Guinea. Ophir said the world’s largest oilfield services provider would receive a 40 per cent economic interest in the floating liquefied natural gas (FLNG) project, subject to due diligence and government approval, ahead of a final investment decision. The company also said it expected to produce 10,500 to 11,500 barrels of oil per day in 2016, less than the 13,000 barrels it produced in 2015.
PBF considers advancing work
NEW YORK: PBF Energy is considering moving up planned work on the 49,000 barrel-per-day coker at its Delaware City, Delaware, refinery after the plant was shut down due to a weekend power outage, according to a source familiar with the plant’s operations.
The work on the coker was scheduled to begin on March 16 and last up to six weeks, the source said. Company officials huddled to discuss the issue, and it may depend on whether or not the unit successfully restarts, the source said.
SandRidge retains advisers
NEW YORK: Oil and gas producer SandRidge Energy, struggling to weather a steep fall in energy prices, said it had retained advisers to explore strategic options. SandRidge has hired Houlihan Lokey Inc as financial adviser and Kirkland & Ellis as legal adviser, the company said in a regulatory filing. Reuters reported earlier in the day that SandRidge was exploring debt restructuring options, citing people familiar with the matter.
Shell re-opens Nigeria’s TNP
LONDON: Royal Dutch Shell said that it had re-opened a key oil pipeline in Nigeria that had been shut since late November.
The Trans Niger Pipeline, or TNP, which carries Bonny Light crude oil to the export terminal had re-opened "in recent days," a Shell spokeswoman said by email. The pipeline remained closed while the company investigated an incident on November 22 in which four contractors died during an operation to remove crude oil theft points. The closure of the pipeline had led to loading delays of up to 10 days, according to traders.
Tesoro finishes maintenance
HOUSTON: Tesoro said it had completed unplanned maintenance over the weekend at the Wilmington portion of its refinery in Los Angeles, California. The refiner resumed normal operations on January 23, a spokesman said. The nature of the work was unclear.
Los Angeles CARBOB differentials for the first pipeline cycle of February were at a 1-cent a gallon premium to the March Nymex contract, while any-month February barrels traded at a 19-cent and 19.25-cent a gallon premium to the March futures contract.
