BP and the China National Offshore Oil Corporation (CNOOC) announced on Tuesday, a heads of agreement for the supply of up to 1.5 million tons of liquefied natural gas (LNG) per year over 20 years starting in 2019. The agreement was signed in London by BP Executive Vice President, Dev Sanyal and CNOOC Chairman, Wang Yilin, in the presence of UK Prime Minister David Cameron and Chinese Premier, Li Keqiang.

Bob Dudley, BP Group Chief Executive said: "This is a significant deal for BP and China but it also marks a step up in global connectivity in the gas market. This is important for all countries and regions looking at the diversity of energy supply and energy security - it gives BP greater flexibility to respond to the changing energy demands from Europe, Asia and other regions.

"We are pleased to support China's commitment to improving its air quality. This agreement is the first long-term LNG supply deal with China where BP is the sole supplier and it should play a crucial role in enhancing China's energy diversification and supporting its economic growth."

A full commercial contract is expected to be agreed in mid-2014. BP would expect to supply LNG from its global portfolio, using its own LNG tanker fleet and chartered ships delivering gas to a number of terminals in China.

1.5 million tons of LNG is approx 72 billion cu ft of natural gas.

CNOOC is a pioneer of China's LNG industry and the third largest LNG importer in the world with 13 million tons of LNG imported in 2013. Currently, CNOOC operates 6 LNG receiving terminals in Guangdong, Fujian, Zhejiang, Shanghai and Tianjin with further terminals under construction.

BP is active in many of the major LNG producing regions as well as in the main LNG markets. It is involved in LNG projects in Australia, UAE, Indonesia, Egypt, Trinidad and Angola.

The discovery in the Piri prospect is Statoil and co-venturer ExxonMobil's sixth discovery and the fifth high-impact discovery in Block 2 offshore Tanzania.

The discovery of an additional two to three trillion cubic feet (tcf*) of natural gas in place in the Piri-1 well brings the total of in-place volumes up to approximately 20 tcf in Block 2.

"Since 2012 we have had a 100% success rate in Tanzania and the area has become a core exploration area in a very short period of time. We quickly went from drilling one well to a multi-well program, and with Piri-1 we are continuing the success," says Nick Maden, senior vice president for Statoil's exploration activities in the Western Hemisphere.

The new gas discovery was made in the same Lower Cretaceous sandstones as the gas discovery in the Zafarani-1 well drilled in 2012.
The Piri-1 discovery is the venture's sixth discovery in Block 2. It was preceded by the high-impact gas discoveries Zafarani-1, Lavani-1, Tangawizi-1 and Mronge-1, and a discovery in Lavani-2.

Piri-1 was drilled by the drillship Discoverer Americas. The well location is two kilometers southwest of the Lavani-1 well at 2,360-metre water depth. The Discoverer Americas has now moved location and is currently drilling the Binzari prospect in Block 2.

"Additional prospectivity has been mapped and will be tested throughout 2014 and 2015. We expect to drill several additional exploration and appraisal wells and hope that the results from these wells will continue to add gas volumes for a future large-scale gas infrastructure development," says Maden.

Statoil operates the license on Block 2 on behalf of Tanzania Petroleum Development Corporation (TPDC) and has a 65% working interest. ExxonMobil Exploration and Production Tanzania Limited holds the remaining 35%. Statoil has been in Tanzania since 2007, when it was awarded the operatorship for Block 2.

(*1 Tcf =180 million barrels of oil equivalent)

Installing new loading buoys is one of several projects intended to extend Gullfaks' life towards 2040. 2.55 billion barrels of oil from the Gullfaks field have passed through the existing loading buoys since first oil.

Towing of the first Gullfaks loading buoy.

Due to come on line in June the towing of the first loading buoy has started. The second old loading buoy will be removed in August, and the new buoy is scheduled to come on line in mid-September.

The two existing loading buoys have been loading oil from Gullfaks since 1986.

"This is an important value enhancement project for the Gullfaks field. Gullfaks needs to have reliable loading systems for crude oil export in the future. The two existing loading systems and loading buoys installed in 1986 and 1987 are approaching the expected design life of 30 years," says Øystein Arvid Håland, asset manager, Development and Production Norway.

The project is an important building block in the efforts to secure the oil export of Gullfaks and the tied-in fields for the next 30 years.

New loading buoys will reduce the need for logistics and helicopter transportation in connection with maintenance. Coordination and synergies with the Statfjord field related to operations, maintenance and spares will be facilitated.

Standard buoy

The loading system is of the same type as that installed at Statfjord and is a simpler system than the existing Gullfaks system.

The new loading buoys are scheduled to come on line in June and mid-September.

The new loading systems will have the same oil loading capacity as the existing systems.
The existing 6,000-tonne loading buoys will be towed to Stord for demolition at Scanmet AS. The aim here is a 98% level of material reuse.

Located in 136 meters of water the loading buoys are situated some 2.4 kilometers north-west and 2.4 kilometers south-east of Gullfaks A.

They are owned by the Gullfaks licensees. Statoil is the operator with a 51% interest, whereas Petoro and OMV have the remaining interests of 30% and 19%, respectively.

Major contracts:
Technip Norge AS has been responsible for engineering work, preparations, the removal of the existing loading buoys, towing and hand-over to the disassembly and demolition supplier – in addition to installing the new loading systems.

The contract for disposal of the two loading buoys from Gullfaks is awarded to Scanmet AS.

The new loading systems are delivered by National Oilwell Varco in Arendal.

New loading hose for Gullfaks.

Source: U.S. Energy Information Administration, International Energy Statistics

Norway is the world's third-largest natural gas exporter, after Russia and Qatar. In 2013, Norway supplied 21% of total European natural gas needs. Norway's natural gas reaches the Continent mainly via its extensive export pipeline infrastructure (see map below), while a small fraction is exported as liquefied natural gas (LNG) by tanker. The largest recipients of Norway's natural gas exports in 2013 were the United Kingdom, Germany, France, the Netherlands, and Belgium.

Source: U.S. Energy Information Administration, with permission from the Norwegian Petroleum Directorate

EIA estimates that Norway produced 3.97 trillion cubic feet (Tcf) of dry natural gas in 2013, a decline of 0.18 Tcf from 2012. EIA also estimates that Norway's net exports for 2013 were 3.8 Tcf of natural gas, which, because of its modest domestic demand, was 96% of its production.

Norway's single largest natural gas field is Troll, which, according to estimates from the Norwegian Petroleum Directorate, produced 1.0 Tcf in 2013,
representing 27% of Norway's total natural gas production that year. Three other major producing fields in 2013 were Ormen Lange (0.76 Tcf), Asgard (0.34 Tcf), and Kvitebjorn (0.24 Tcf). These four fields accounted for just over 60% of Norway's total dry natural gas production in 2013.

For more information, see EIA's Norway Country Analysis Brief.

Noble Energy, Inc. (NYSE: NBL) has announced that it has reached an agreement with BP Exploration & Production Inc. to acquire 50 percent of BP's interest in 17 deepwater exploration leases in the Gulf of Mexico. Each of the leases resides in the Atwater Valley protraction area, with Noble Energy acquiring a 50 percent working interest in 13 leases and an average 26 percent working interest in four leases.

As part of the transaction, Noble Energy is participating with a 50 percent working interest in the Bright prospect, which is currently drilling on Atwater Valley Block 362 in a water depth of approximately 5,600 feet. The initial well, targeting multiple Upper and Middle Miocene reservoirs, is anticipated to be drilled to a total depth of 13,500 feet. The Company's total estimated gross unrisked resource range (P75 - P25) for the Bright prospect is 90 to 350 million barrels of oil equivalent. In addition to the Bright prospect, there are multiple follow-on exploration opportunities that have been identified on these newly acquired leases.

Susan M. Cunningham, Senior Vice President, Gulf of Mexico, West Africa, and Frontier, said, "The deepwater Gulf of Mexico is one of Noble Energy's core areas and today we have expanded our opportunity set there through the successful capture of a number of attractive and sizeable prospects. We have multiple opportunities for substantial hydrocarbon discovery in the near-term, with the Katmai prospect results expected by our second quarter earnings call and the Bright prospect anticipated to be at total depth by the end of the third quarter. In addition to our exploration programs, we are also currently drilling a second well at Dantzler as we progress multiple major projects toward first production."

Eni Norge AS awards DNV GL a framework agreement for the supply of inspection services to the Goliat platform in the Barents Sea.

The term of the contract is three years, with an option for a two-year extension. The assignment consists of planning and carrying out inspections of static equipment, load-bearing structures and offloading and anchoring systems aboard the Goliat FPSO during its operational life.

Local spin-off effects
The contract, which will help further reinforce the petroleum cluster in Northern Norway, is in line with Eni Norge's ambition to create spin-off effects connected with the Goliat project.

DNV GL has experience of working for Eni Norge from the company's Harstad section, for example in the field of oil spill contingency. In connection with the new agreement for inspection services, DNV GL sees potential for moving personnel to Hammerfest. Also DNV GL subcontractor ApplusRTD will establish a branch office in Hammerfest during the coming year.

The contract underpins DNV GL's established business strategy for growth in Northern Norway and heightened focus on services connected with Arctic operations.

First in the Barents Sea
Goliat is the first field to be developed in the Norwegian sector of the Barents Sea, and one of the biggest industrial projects ever undertaken in Northern Norway. The cylindrical Goliat platform is a floating production, storage and off-loading unit (FPSO), and is full of unique technological systems, specially adapted to conditions in the Barents Sea. The estimated reserves in the field are 174 million barrels of oil and 8 billion standard cubic meters of gas.

Noble Energy, Inc. (NYSE: NBL) has announced that the parties have agreed to terminate the non-binding memorandum of understanding regarding the sale of interest in the Leviathan licenses, offshore Israel, to Woodside Petroleum. Following termination of the agreement, working interests in the Leviathan Project remain as follows: Noble Energy as operator (39.66 percent), Delek Drilling (22.67 percent), Avner Oil Exploration (22.67 percent), and Ratio Oil Exploration (15 percent).

Charles D. Davidson, Noble Energy's Chairman and CEO, commented, "The plans for development of the Leviathan discovery have significantly changed since we began the search for a partner approximately two years ago. Perhaps the most dramatic changes have been associated with the growth in the regional markets. The emergence of these regional markets, which are accessible through pipeline outlet, has pushed the need for LNG into a later phase of development versus our earlier plans. While we have not been able to reach a mutually acceptable agreement with Woodside, we continue to move forward with our partners and the Israel government with plans to develop this world-class asset for the benefit of all stakeholders."

Significant progress has been made on the development of the Leviathan field, following approval of Israel's natural gas export policy, an agreement with Israel's Anti-trust Authority, and receipt of the Development and Production Leases for Leviathan. Noble Energy is targeting to sanction the initial phase of development at Leviathan by the end of 2014, with first production from the field currently planned for late 2017.

The initial development phase is planned to be a 1.6 billion cubic feet per day floating, production, storage and offloading (FPSO) system, to provide natural gas into Israel and surrounding regional markets. Front-end engineering and design studies are ongoing for the second phase of development at Leviathan, which is anticipated to be a floating, liquefied natural gas (FLNG) production system.

The Leviathan Project is located offshore Israel in approximately 5,550 feet of water. It has an estimated 19 trillion cubic feet of discovered natural gas resources.

Boost for Novorossiysk supply base to meet growing demand

GAC Russia is underlining its commitment to offshore oil & gas exploration and extraction in the Black Sea with a major project to upgrade its facilities at the port of Novorossiysk.

The Black Sea is one of the areas in which the development of fields looks set to boom as Russian oil majors are granted licenses and joint ventures are formed with international energy companies to develop blocks.

Supply Base Manager Alexander Pavlov (left) discusses planned upgrades

GAC Russia has already signed contracts with one of the key players to provide supply base support for their operations from Novorossiysk. Facilities include a dedicated berth, open and closed storage areas, site for liquid mud plant and dry bulk plant and office premises.

During the pre-drilling phase, GAC's Novorossiysk supply base will be used for the accumulation of materials and equipment being gathered in preparation for offshore operations. When drilling starts, the base will swing into full action with round-the-clock operations loading and offloading supply vessels supporting the offshore operations. GAC will provide experienced personnel, mobile cranes, forklifts and trucks to arrange the full scope of supply base management in strict compliance with national and international HSSE regulations.

The project will include coordination with a range of local authorities and service providers, as well as screening and pre-qualifying partners to ensure they meet the stringent standards of the GAC Group. Arkady Podkopaev, GAC Russia's Managing Director, says his company is equal to those challenges, and has already obtained OHSAS 18001:2007 certification in preparation for the task.

"By combining our local experience and expertise with the GAC Group's versatile range of services and international experience in supply base business, we have what it takes to overcome the current limitations of Novorossiysk port to create a strong supply base to support upcoming operations in the Russian Black Sea," he adds. "We are also well prepared to set up bases elsewhere in Russia in the near future."

Secretary of the Interior Sally Jewell and Acting Director of the Bureau of Ocean Energy Management (BOEM) Walter Cruickshank have announced the first step in a robust public engagement process to develop the next schedule of potential offshore oil and gas lease sales.

The publication in the Federal Register of a Request for Information (RFI) and Comments on the Preparation of the 2017-2022 Outer Continental Shelf (OCS) Oil and Gas Leasing Program (RFI) is the initial step in the multi-year planning process and does not identify any specific course of action. Per statute and consistent with previous efforts, BOEM will evaluate all of the OCS planning areas during this first stage.

Today’s publication of a RFI begins a 45-day comment period. Substantial public involvement and extensive analysis will accompany all stages of the planning process, which will take up to three years to complete.

“The development of the next Five Year Program will be a thorough and open process that incorporates stakeholder input and uses the best available science to develop a proposed offshore oil and gas program that creates jobs and safely and responsibly meets the energy needs of the nation,” said Secretary Jewell. “Today marks the first step of engaging interested parties across the spectrum to balance the various uses and values inherent in managing the resources of federal offshore waters that belong to all Americans and future generations.”

The OCS Lands Act requires the Secretary of the Interior, through BOEM, to prepare and maintain a schedule of proposed oil and gas lease sales in federal waters, indicating the size, timing and location of auctions that would best meet national energy needs for the five-year period following its approval. In developing the Five Year Program, the Secretary is required to achieve an appropriate balance among the potential for environmental impacts, for discovery of oil and gas, and for adverse effects on the coastal zone.

“In issuing the RFI, BOEM does not propose to schedule sales in particular areas, or make any preliminary decisions on what areas will be included in the schedule,” said BOEM Acting Director Cruickshank. “Rather, the RFI provides an opportunity for interested parties to submit comments and suggestions about the potential for leasing and to identify environmental and other concerns and uses that may be affected by offshore leasing.”

BOEM seeks a wide array of input, including information on the economic, social and environmental values of all OCS resources, as well as the potential impact of oil and gas exploration and development on other resource values of the OCS and the marine, coastal and human environments.

Using the information received, BOEM will prepare a Draft Proposed Program, followed by a Proposed Program and a Proposed Final Program. Throughout the planning process, BOEM consults with all interested parties and seeks additional public comment. Concurrently, BOEM will prepare a Programmatic Environmental Impact Statement (PEIS) required by the National Environmental Policy Act to evaluate the potential environmental impacts of various OCS oil and gas leasing alternatives under the Proposed Program and to help inform decisions on the Proposed Final Program.

The current Five Year Program for 2012–2017, which expires in August 2017, schedules 15 potential lease sales in six planning areas with the greatest resource potential, including more than 75 percent of the estimated undiscovered, technically recoverable oil and gas resources in federal offshore waters. BOEM has held five sales thus far, including annual auctions in the Central and Western Gulf of Mexico and a single sale in the portion of the Eastern Gulf not subject to the Congressional moratorium.

These five auctions offered more than 60 million offshore acres and leased 4.3 million of those, generating more than $2.3 billion in high bids. The sixth lease sale in August 2014 will offer 21 million OCS acres in the Western Gulf of Mexico. Off Alaska, the current Five Year Program includes one potential sale each for the Chukchi Sea, Beaufort Sea and Cook Inlet planning areas.

BOEM currently manages about 6,200 active OCS leases, covering more than 33 million acres – the vast majority in the Gulf of Mexico. Of those, 1,064 are producing leases, covering 5.2 million producing acres – the highest acreage under production since 2008. In 2013, OCS oil and gas leases accounted for about 18 percent of domestic oil production and 5 percent of domestic natural gas production. This production generates billions of dollars in revenue for state and local governments and the U.S. taxpayer, while supporting hundreds of thousands of jobs.

Under the RFI published today, BOEM will accept comments until July 30, 2014 in either of the following ways: On BOEM’s website. Click on the “Open Comment Documents” link and follow instructions to view relevant documents and submit comments. In written form, deliver to: Ms. Kelly Hammerle, Five Year Program Manager; Bureau of Ocean Energy Management; 381 Elden Street - HM-3120; Herndon, Virginia 20170. Additional information on the process of developing the next Five-Year Program as well as on the current Five Year Program can be found here.

CGG has announced that Robertson Geolab, specialists in surface geochemistry in its GeoConsulting business line, is currently performing a multi-client surface geochemistry (shallow core) survey to detect seafloor seepages of hydrocarbons in the South East Barents Sea. The project has received high prefunding from major oil industry players.

The survey covers all the blocks in this region which have been recently proposed by the Norwegian Petroleum Directorate (NPD), as well as sampling of outlying sub-areas where hydrocarbon seepages are suggested to be present by methods including satellite image analysis from NPA Satellite Mapping. The coring method used has minimal environmental impact, being simply the dropping of a thin, clean iron core barrel and penetrates the seafloor sediments to a few meters depth to retrieve mud samples.

The main aim of the survey is to detect active petroleum systems in the area, targeting both larger and smaller structures of interest. The extensive geochemical analysis program for both the gaseous and liquid hydrocarbons in the sediments will yield information as to the gas- or oil-affinity of the petroleum systems and the sourcing /maturity of the hydrocarbons. This information will be of prime importance in connection with de-risking of areas by the oil companies, prior to more detailed investigations. It is therefore also of importance in limiting any future environmental issues, e.g. from over-drilling, and not least in assessing the background levels of natural seafloor seepage pollution that occurs in the region.

The collected data will be processed to provide a full geochemical interpretation report, including anomaly mapping in ArcGIS format for assimilation into clients' own seismic or geological databases. The final report for this survey will be available in December 2014, in time for our clients' future licensing round decisions.

Sophie Zurquiyah, Senior Executive Vice President of CGG's Geology, Geophysics & Reservoir Division (GGR), said: "Our Barents Sea oil and gas seep survey is part of our rich multi-disciplinary multi-client data library that we are developing in the region. It complements existing exploration products ranging from our offshore hydrocarbon seeps database and regional Gravity & Magnetics coverage to our state-of-the-art BroadSeisTM surveys. It will result in unique exploration data, which directly targets and measures the hydrocarbons, within an exciting frontier area about which we have, as yet, very little information regarding active petroleum systems."

In March 2011 Kvaerner signed a contract with ConocoPhillips to deliver the topside for the Eldfisk 2/7 S integrated production platform. The topside was completed in April 2014 as planned, and was towed to field in the North Sea on Friday May 16.

"We are extremely proud of the Eldfisk delivery. It is a state-of-the-art platform and possibly one of the most complete topsides ever delivered," says Jan Arve Haugan, President & CEO of Kvaerner.

The Eldfisk 2/7 S topside consists of one combined living quarter and utility module and a combined process and wellhead module, with a total weight of 15 500 tons. The project was executed with fabrication deliveries from subcontracting partners in Poland and Finland, and fabrication, assembly and commissioning at Stord. In addition, the contract included the fabrication of two bridges, one bridge support module and a flare, all of which were delivered in 2013 directly to the field from Kvaerner's subcontractors in Poland. At peak, Kvaerner has had more than 2 000 people involved in the project.

As the topside leaves Stord, it will be towed to field and lifted onto the steel jacket substructure in two separate lifts. Kvaerner will then perform the offshore hook-up work to prepare the platform for production start. This work has already commenced and will continue through the summer and into the fall. 

"Effective hook-up and preparation for production start is a specialised line of work where we have strong experience. We look forward to following Eldfisk offshore to assist the customer with the completion activities," says Haugan.

Eldfisk is a part of the Greater Ekofisk Area and has been in production since 1979. The field is located in the southern part of the North Sea, about 300 kilometers from the Norwegian shore.

Statoil (OSE: STL, NYSE: STO) has announced that it has started its latest Gulf of Mexico exploration campaign. It started drilling Martin, a high-impact prospect, on 20 April.

"We consider Martin one of the top prospects in our global portfolio," says Jez Averty, senior vice president of exploration for Statoil in North America. "Since acquiring this prospect in 2012, we've advanced it in 20 months which is considerably faster than the normal maturation time."

As the world's largest offshore operator, Statoil has a significant presence in the Gulf of Mexico.  In addition to its active exploration program, Statoil is a partner in many of the largest fields under development, including Jack, St. Malo, Big Foot, Julia, Vito and Stampede.

"We're committed to profitability growing our business in North America," said Bill Maloney, Statoil executive vice president of its North America operations. "Having a strong and robust exploration program is essential for long-term growth, and we're very excited to begin this latest drilling campaign in the Gulf of Mexico."

In a speech at a private reception during the Offshore Technology Conference in Houston, Maloney explained that Statoil's growth in North America has been methodical and incremental. The company has made strategic acquisitions in onshore and offshore plays while building its midstream capacity.  The company has been active in North America for 25 years.

In 2013, Statoil was ranked as the world's most successful exploration company, finding more oil and gas than any other company. Statoil also made the world's largest conventional oil discovery in 2013. Its Bay du Nord discovery in the offshore east coast of Canada contains 300-600 million barrels of oil.

Royal Dutch Shell plc ("Shell") has announced the sale of a total of approximately 156.5 million shares in Woodside Petroleum Limited ("Woodside") representing a total estimated value to Shell of around US$5.0 billion on an after tax basis.

The sale, which represents 19.0% of Woodside's issued share capital, is through an underwritten sell-down to equity market investors and a selective share buy-back by Woodside.

"This announcement is part of our drive to improve Shell's capital efficiency and to focus our Australia growth in directly owned assets", said Shell Chief Executive Officer Ben van Beurden. "It doesn't change our view of Australia as an important player on the global energy stage, or Shell's central role in the country's energy industry."

Shell Australia's Country Chair, Andrew Smith, added, "Woodside is an important strategic partner for us, through our investments in established projects such as the North West Shelf and growth opportunities such as Browse.

We are pleased we have been able to work with Woodside to find a solution that allows us both to meet our strategic objectives. We continue to see Australia as an important place for us to invest and grow our business."

Shell's subsidiary, Shell Energy Holding Australia Limited ("SEHAL") has mandated two investment banks to sell 78.27 million shares in Woodside, through an underwritten sell-down at a price of A$41.35 per share.

This part of the sale represents around 9.5% of the issued capital in Woodside, with the shares to be sold to a range of equity market investors. The sell-down is expected to complete on 18 June 2014.

Under an agreement with SEHAL, Woodside will also buy-back 78.27 million of its shares from SEHAL at a price of US$34.24 per share.
The buy-back price per share has been split into a dividend component of US$26.29 per share and a capital component of US$7.95 per share, as agreed with the Australian Taxation Office (ATO) in a private ruling. SEHAL will receive franking (tax paid) credits on the dividend component with the effect that no further tax is payable by SEHAL on the dividend component.

Completion of the buy-back will be subject to limited conditions, including consent under a number of Woodside's facility agreements, an independent expert opinion and Woodside shareholder approval. Completion of the buy-back is expected in early August 2014.

After the buy-back and the sell-down have been completed, including cancellation of the buy-back shares by Woodside, SEHAL's shareholding in Woodside will reduce to below 5%. As part of this transaction, SEHAL has committed to retain its remaining shares in Woodside for 90 days from completion of the sell-down, with limited exceptions.

Shell's world-wide LNG equity liquefaction capacity is 26.1 mtpa (million tonnes per annum), with interests in eleven LNG plants. The announced transaction will reduce Shell's equity liquefaction capacity to 25.5 mtpa after the sell-down and to 24.9 mtpa after completion of the share buy-back.

Australia is set to underpin Shell's next tranche of LNG growth, with the Gorgon LNG project (~15 mtpa), where Shell has a 25% interest and the Shell-operated Prelude Floating LNG project (3.6 mtpa LNG + 1.7 mtpa NGLs), in which Shell holds a 67.5% interest.

Shell has further options for the next generation of LNG growth, in Australia, North America and Indonesia.

Shell also continues with an active and successful exploration campaign adding to further options for future development.

A new state-by-state analysis shows that Florida could add up to 10,736 jobs and $1.23 billion to the state economy in 2020 if federal restrictions on U.S. crude exports were lifted, said Executive Director of the Florida Petroleum Council (FPC) David Mica.

"The U.S. is poised to become the world's largest oil producer, and access to foreign customers will drive job creation here in Florida and around the country," said Mica. "When it comes to crude oil, the rewards of free trade are amplified wherever energy, manufacturing, and consumer spending drive growth. American energy exports mean new jobs, higher investment, and greater energy security."

The new report was conducted by ICF International and EnSys Energy. It provides a state-by-state analysis of economic benefits first outlined this March in a national report, which showed that lifting export restrictions could save consumers up to $5.8 billion per year, on average, between 2015 and 2035, as higher production and efficient markets help boost supplies and lower costs.

The latest report shows that Florida is among 18 U.S. states that could gain over 5,000 jobs each in
2020 from exports of U.S. crude oil. The study also forecasts that most states could see economic activity grow by hundreds of millions of dollars due to growing energy production and downward pressure on the prices at the pump. In addition:

Depending on global price trends, nine states – Florida, Michigan, Indiana, California, New York, Pennsylvania, Ohio, Texas, and North Dakota -- could see over $1 billion each in state economic gains in 2020, with slower growth through 2035 after new drilling plateaus.

Eight states – Illinois, Florida, New York, Pennsylvania, Ohio, California, North Dakota, and Texas – could gain over 10,000 jobs each in 2020.

Texas alone could gain up to $5.21 billion in added economic activity and 40,921 jobs in 2020.

North Dakota could gain 22,215 added jobs and $4.81 billion in state economic growth in 2020.

States with significant manufacturing and consumer spending, such as California, could add

23,787 jobs and $2.06 billion in economic activity in 2020. Illinois could add 10,033 jobs and $990 million in state income in 2020.

"Restrictions on exports only limit our potential as a global energy superpower," said Mica. "Additional exports could prompt higher production, generate savings for consumers, and bring more jobs to Florida. The economic benefits are well-established, and policymakers are right to reexamine 1970s- era trade restrictions that no longer make sense."

The FPC is a division of API, which represents all segments of America's oil and natural gas industry. Its more than 600 members produce, process, and distribute most of the nation's energy. The industry also supports 9.8 million U.S. jobs and 8 percent of the U.S. economy.

Production from a subsea template at the Snorre B platform was shut down on 17 May following the discovery of an abnormal erosion of mass under the template.

Over the last 24 hours, no movement has been observed in the pit at the subsea template. The area is under continuous ROV surveillance and sediment samples have been taken. "Brine" (water with heavier sediments) was pumped into the well for a brief period in the event that there was some sort of connection between the pit and the well. There have been no signs of hydrocarbon leaks in any of the surveys carried out since the pit was discovered on 17 May.



"The pit is stable and is being monitored continuously. The most important thing for us now is to clarify what caused the pit to form, and a number of explanations are being examined," says Bente Aleksandersen, Statoil's senior vice president for Operations South.

On Monday, 33 people were moved over to the Safe Scandinavia, and then transported onshore as a precautionary measure after movement and hydrocarbon indications were observed in the pit. In connection with this, the emergency response organization was mobilized, and then demobilized the same evening. The Petroleum Safety Authority Norway is being provided with continuous updates.

Statoil has decided to keep production shut down until the necessary investigations have been carried out.

AziPac Ltd. is a newly established exploration and production company focused on exploring for oil and gas in the maritime basins offshore the Asia Pacific region and the Bay of Bengal. AziPac is backed by Seacrest Capital Group, the global energy investor. AziPac will be headquartered in Singapore.

Portfolio
At launch, AziPac has secured a number of exploration licenses in the Southeast Asian offshore and Bay of Bengal regions. Further details of the opening portfolio of licenses will be made public following final regulatory approval in each of the relevant countries. AziPac has built up a significant pipeline of attractive exploration opportunities throughout the region.

Management & Technical Resources
AziPac joins a growing portfolio of regional companies established by the Azimuth Group ("Azimuth") and backed by Seacrest Capital Group, the global energy investor. Azimuth has exploration assets offshore Asia-Pacific, Ireland, Norway, the United Kingdom and Namibia. Azimuth has a team of thirty oil industry professionals with a proven track record of finding significant hydrocarbons offshore, including the Asia Pacific region. The team has been involved in over 100 oil and gas discoveries globally. AziPac, like the other Azimuth exploration companies, will utilize this shared resource of world-class professionals, as well as leading edge seismic data, to optimize exploration opportunities and de-risk assets in the Asia-Pacific region.

Azimuth Group is managed and backed by Seacrest Capital Group, a leading global energy investor.

David Sturt, Director of AziPac, Commented:
'The offshore Asia Pacific and Bay of Bengal regions are experiencing a resurgence in exploration for new oil and gas reserves. This is driven by exciting recent discoveries, new licensing rounds, new company entrants and, importantly, the potential for new technologies to be brought to bear in new and mature exploration areas. AziPac has been established with an opening portfolio of world-class exploration assets and is well supported by the Azimuth Group which includes professionals who have a proven ability to discover significant hydrocarbons in the region. We aim to rapidly grow the company, with a focus on technology and innovative exploration thinking to unlock value in traditional and new oil and gas basins offshore Asia."