Oilfield set aside for U.S. Navy 99 years ago goes to auction

The U.S. government wants to sell a naval petroleum reserve field first set aside by presidential decree 99 years ago to ensure fuel supplies for American warships.

The Energy Department is seeking bids for the Teapot Dome field north of Casper, Wyoming, by Sept. 30, according to an offering document published on the website of Meagher Energy Advisors Inc. today, June 23. The field, which includes several layers of shale and oil wells more than 1 mile (1.6 km) deep, currently produces about 240 bbl of crude a day.

The Teapot Dome field was designated a naval reserve in 1915. The 9,481-acre parcel is the last such reserve still under control of the Energy Department, according to the offering document.

The field has several untapped layers of oil- and gas-soaked rocks that may be suitable for enhanced recovery techniques such as carbon-dioxide flooding, according to the offering. A data room with technical details about the geology of the field is scheduled to open on July 30.

The U.S. began divesting naval petroleum reserves in 1998, when it sold the Elk Hills field near Bakersfield, California, to Occidental Petroleum Corp. for $3.65 billion.

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Planned LNG import terminal for Indonesia: GDF SUEZ continues its international development of gas infrastructures

GDF SUEZ has recently signed a new cooperation agreement protocol with Perusahaan Gas Negara (PGN), the principal Indonesian operator in the field of natural gas distribution and transportation. The agreement relates to a feasibility study for an onshore LNG terminal in northern Java. This agreement is the result of a collaboration between the Energy International business line and the Infrastructures Branch.
 
On signing the agreement, Jean-Claude Depail, EVP, in charge of Infrastructures business line for GDF SUEZ, declared that "This new agreement represents a significant milestone in developing gas infrastructure projects in Indonesia as part of a long-term strategic partnership with PGN. This partnership is an important new example of the Group' s development strategy for international gas infrastructures that will facilitate access to energy supplies for countries experiencing rapid growth."
 
Experience acquired by the GDF SUEZ Group in managing gas infrastructures has been the foundation for such cooperation agreements. PGN will benefit from technical assistance from the different units of the GDF SUEZ Infrastructures business line, particularly in terms of optimising network operations and maintenance and facilitating the commissioning of the new LNG terminal.

The current agreement follows a prior agreement signed in February 2014, which also includes plans for cooperation in training PGN employees in the field of gas technologies, both in France and Indonesia.

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C&J Energy forms fifth-largest fracturing fleet with $2.86 bn Nabors deal

Nabors Industries has signed a definitive agreement to combine its completion and production services businesses in the U.S. and Canada with C&J Energy Services, Inc.

The transaction will roughly triple the C&J stimulation fleet, which should then rank as the fifth-largest fleet in North America. The combined company will also operate the largest fluids management fleet and the second-largest workover/well-servicing fleet in North America. In addition, prospects for international expansion should be enhanced through a global alliance agreement with Nabors.

Following the completion of this transaction, Nabors will own approximately 53% percent of the combined company, which will be incorporated in Bermuda and listed on the NYSE as C&J Energy Services Ltd. In addition to the 62.54 million shares of the combined company, Nabors will also receive approximately $937 million cash, to be paid from proceeds of a public debt placement by the combined company.

The new C&J Energy Services Ltd. will be managed by the current C&J Energy Services management team, supplemented by Nabors' completion and production services workforce.

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Safe, efficient solar-powered wireless load cell introduced

Bright Automation, a designer and manufacturer of monitoring and control products, has introduced a fully solar-powered wireless load cell designed for use on pumping units. The Bright Wireless Load Cell has a fully solar-powered battery, transmitting data via a 2.4-GHz wireless digital communication protocol. Based on its unique wireless design, the Bright Load Cell provides easier, faster installation, according to the manufacturer, and reduces shutdowns associated with cable failure. The receiving module output generates a standard 4-20-mA or 0-10-mV signal, making it useful as a replacement of conventional load cells, the company said.

The load cell’s lack of wires and U-shaped structure provides for easy installation, repair and maintenance, while its durable outer shell allows it to withstand harsh environments, reported Bright.

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Argentine governors said to seek tax breaks for rigs in oil bill

Argentine provincial authorities are pushing for tax cuts to be included in an energy bill covering the country’s nascent shale oil and gas industry, three officials briefed on the matter said.

The governors of 10 provinces with oil and gas reserves agreed to request the elimination of a 35% levy on imports of rigs and other machinery before agreeing to the federal government’s proposed reform, the provincial officials said, asking not to be named as discussions are private. Provinces also want royalties to be based on global benchmarks rather than the price set by the federal government, they said.

The demands are part of federal-provincial talks on replacing a 1967 hydrocarbons law with rules for distributing revenue from the world’s fourth-biggest shale oil reserves and second-largest shale gas reserves. The bill would end political tensions derived from unclear regulations for both shale and offshore resources and lure more investors to Vaca Muerta, a Belgium-sized formation in the country’s south.

“All I can say is that all the actors are participating in the writing of the draft,” Horacio Mizrahi, spokesman for federal Planning Minister Julio De Vido, said by phone from Buenos Aires. “We prefer not to comment while negotiations between all parties involved are going on in a civilized way.”

Chubut Governor Martin Buzzi, who heads a committee of the 10 provinces, and Neuquen Governor Jorge Sapag weren’t available to comment, their respective assistants said.

While the provinces are prepared to reduce their taxes and the participation of provincial companies in projects, they want the same benefits stipulated in a July decree imposed for a venture between YPF SA and Chevron Corp. to be extended to all companies, the officials said.

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Shell announces IPO for a U.S. pipeline unit

Royal Dutch Shell said it will sell shares in a U.S. pipeline business in the second half of this year.

Shell Midstream Partners LP’s assets are expected to consist of ownership interests in four onshore and offshore pipelines located primarily in Texas and Louisiana, according to a statement today. The Houston-based company will trade on the New York Stock Exchange.

Pipeline companies structured as tax-exempt master limited partnerships, or MLPs, have attracted investors by returning almost all their income to shareholders. Pipeline operators are also benefiting from the boom in North America’s oil and gas production from shale fields.

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