Husky Energy Inc. will be expanding its mainline crude oil pipeline between Lloydminster, Alberta and its terminal at Hardisty, Alberta. This expansion will accommodate increased production from its Tucker Oil Sands Project, located near Cold Lake, Alberta and shipments from third parties. The expansion will also allow for increases in future shipping volumes from Husky’s heavy oil upgrader at Lloydminster.

Construction of the $100 million 80 kilometres pipeline project will start in September 2006 and will be completed in two phases. The first phase involves the installation of two 20-kilometre sections of 24-inch pipe and associated pumps north of Wainwright, Alberta and north of the Battle River, Alberta pumping station and is anticipated to be operational by the second quarter of 2007. The second phase will consist of installing the remaining 40 kilometres of 24-inch pipe from Lloydminster to Wainwright, with completion scheduled in the fourth quarter of 2007. The expansion project includes laying pipe, upgrading pumps and installing associated equipment at the terminals and pumping station. Read more » »

Duffy and McGovern Accommodation Services has secured three new contracts in Canada, further boosting its ongoing highly successful growth in North America.

PowerWell Services, Geoservices and Schlumberger have appointed Duffy and McGovern (DMAS) to provide units on contracts worth more than $75,000 Canadian, through long-standing Nova Scotia-based agent Associated Marine.

PowerWell workers on Global Santa Fe’s Glomar Grand Banks semi-submersible rig, operated by Husky, will use an A60 fire-resistance rated zone-1 laboratory unit for six months. Read more » »

Petrofac Training has signed an exclusive agreement with US based company, Decision Point Associates, for the provision of Hazard Recognition PlusTM (HRP) training.

HRP is a unique and universally applicable methodology centred around identifying hazards from eight energy sources. HRP provides workforces with a strong foundation in hazard recognition, educating personnel to recognise and determine hazards before an incident occurs, leading to better risk assessment.

Petrofac’s agreement, which runs until December 2007, gives Petrofac Training exclusive rights to deliver HRP training for companies operating in the UK and European Continental Shelf. The leading safety and technical training specialist has also secured the rights to conduct HRP training for BP’s on and offshore operations globally. Read more » »

Red Spider Technology has been awarded best stand in the Innovation Park at the Offshore North Seas Exhibition (ONS 2006) in Stavanger held from 22 – 25 August 2006. Red Spider was the only UK company out of a total of 21 exhibiting in the Innovation Park at the show.

The innovative oil and gas design company was awarded best stand not only because of its unique design, but also for the eye catching methods Red Spider Technology used to attract people to the stand.

Chris Oliver, managing director of Red Spider Technology says, “To be selected as best stand out of some of the most cutting edge companies is a great achievement for us. We exhibited in the Innovation Park at ONS in 2004 shortly after the company was formed and it proved very successful for us then. However, this year we were truly Norwegian following the establishment of our subsidiary office and the appointment of key staff under Hans Kristian Hegland, General Manager of Red Spider Technology AS. This enabled us to make a far greater impact.” Read more » »

Cabot Oil & Gas Corporation has announced a definitive agreement to sell its offshore portfolio and its south Louisiana properties, which include the once prolific Etouffee field. Citing its growing emphasis on its resource-focused portfolio, Dan O. Dinges, Chairman, President and CEO commented, “In a market where there is a significant disconnect between asset sales values and implied stock prices, we took advantage of an opportunity to accelerate our realizations on these assets and further solidify our long-term objectives.”

In this transaction Cabot will sell the properties to Phoenix Exploration Company LP for total cash consideration of $340 million. The sale is expected to close September 29, 2006, subject to due diligence and other customary closing conditions. With the total proceeds, Cabot intends to repurchase shares of common stock, fund its operations, repay a portion of its outstanding debt and pay the resulting tax bill. Read more » »

Kuala Lumpur: A Chad minister denied yesterday that his country’s expulsion of two foreign energy companies was aimed at winning greater control of its oil resources.

Chad ordered US giant Chevron and Malaysia’s Petronas on Saturday to leave the country for failing to honour tax obligations.

“The solution is to pay their tax,” Mahamat Bechir Okormi, the country’s minister for state control and ethics, said. “We want them to pay the tax. There’s no other solution.

“It’s not a matter of control,” said the minister, who was in Malaysia to attend a meeting of Islamic nations on anti-corruption. Read more » »

The mainland’s largest oil refiner, China Petroleum & Chemical (0386), reported a better-than-expected 8.9 percent increase in first-half net profit, boosted by strong growth in upstream exploration business amid soaring oil prices.

Net profit was 21.4 billion yuan (HK$20.88 billion), or 0.25 yuan a share, for the six months ended June 30, up from 19.7 billion yuan, or 0.23 yuan per share, a year ago, according to a statement filed Monday to the Hong Kong stock exchange.

Revenues for the company, also known as Sinopec, rose 34 percent to 482 billion yuan. An interim dividend of 0.04 yuan per share was declared. Read more » »

LUKoil signed a framework agreement with Slovenia’s Petrol on establishing a joint venture to sell oil products in the Balkans, the press office of Russia’s No. 1 crude producer said Monday.

The joint venture will be managed on a parity basis, with Petrol holding 51% and LUKoil 49% of shares in the new undertaking. “The terms of a joint venture are mutually advantageous,” LUKoil President Vagit Alekperov said in a release. “We are interested in expanding our presence in the markets of the Balkan countries, which provide the best opportunities for achieving synergy with LUKoil’s assets in eastern Europe.”

The framework agreement was approved by the boards of LUKoil and Petrol. The companies intend to set up the JV by the end of 2006.

Oil prices fell by more than $2 a barrel on Monday as concerns eased on Tropical Storm Ernesto’s threat to Gulf of Mexico energy production. The fall in prices also reflected a reaction to statements from Iran over the weekend that appeared to demonstrate the Islamic Republic’s willingness to negotiate over its disputed nuclear programme, analysts said.

With weather forecasters predicting that Ernesto could strengthen to a hurricane and strike Florida, “it’s more of a concern for orange juice futures,” said Wachovia analyst Jason Schenker.

Light sweet crude for October delivery fell $2.16 to $70.35 a barrel on the New York Mercantile Exchange. Read more » »

US regulatory authorities are examining whether the oil giant BP has manipulated the crude oil and unleaded petrol markets – the latest in a string of investigations into the company’s US operations.

The Commodities Futures Trading Commission has sent subpoenas to BP and energy traders in the crude oil probe. The enquiry is focused the possible manipulation of the global over-the-counter market in 2003 and 2004.

The separate gasoline enquiry, which has been under way for more than a year and includes a criminal probe by the Justice Department, is examining a single day’s trading on the New York Mercantile Exchange in 2002, the Wall Street Journal said today. Read more » »