Statoil has, on behalf of the Johan Sverdrup license, awarded a contract to Jacktel AS, a wholly owned subsidiary of Master Marine AS, for providing accommodation services on the Johan Sverdrup field.

Jacktel AS, a wholly owned subsidiary of Master Marine A, located in Oslo/Norway, has been awarded a contract for the Haven jack-up accommodation rig for the installation and commissioning period for the Johan Sverdrup project phase 1.

The Haven jack-up accommodation rig. (Photo: Sondre Steen Holvik)

Included in the accommodation services is bed capacity and catering services for project personnel. The accommodation rig will provide up to 400 beds on the Johan Sverdrup field.

To ensure required capacity for working on the Johan Sverdrup field, Haven will undergo an upgrade related to strength and length of the legs, including provision of new spud-cans/suction-caissons. The upgrade is expected to be performed at a yard in Norway.

The contract period is 18 months with an estimated start 15 June 2018. In addition there are 5x2 months options. The total value of the firm contract period is approximately 178 million USD. including expected upgrade cost of approximately 100 million USD.

"We are very pleased with the contract awarded to Jacktel AS. The Haven jack-up accommodation rig will be an important tool in the final offshore installation and commissioning phase, putting together the different pieces of the Johan Sverdrup puzzle "says Kjetel Digre, senior vice president for the Johan Sverdrup development project.

The development concept for Johan Sverdrup phase 1 will consist of four installations, including a utility and accommodation platform, a processing platform, a drilling platform and a riser platform, in addition to three subsea templates for water injection. 

Statoil (U.K) Limited has awarded contracts for the catering and facilities services for its UK offshore and onshore operations to ESS Offshore and 14forty, both part of Compass Group UK & Ireland.

The offshore catering and facilities contract was awarded to Aberdeen-based ESS Offshore and includes the provision of offshore catering services to the Mariner A platform and Mariner B floating storage unit, as well as housekeeping services, helideck operations and emergency response duties. The agreement is due to start in 2016.

The onshore total facilities management contract was awarded to 14forty, previously known as Eurest, and covers Statoil’s offices in Aberdeen, London and its Dudgeon wind farm operations base in Great Yarmouth.

The provision of catering, cleaning, security and property services will start immediately in Great Yarmouth and in 2016 in the London office and Aberdeen, with the opening of Statoil’s new UKCS operations centre.

“Combining the offshore and onshore scopes has created significant synergies and efficiencies for Statoil in the UK. We appreciate the innovative and cost-effective solutions presented by ESS Offshore and 14forty. This type of close collaboration with our suppliers is critical to ensuring efficient operations for Mariner in the long term,” says Tove Stuhr Sjøblom, managing director for Statoil Production (UK) Ltd.

Each contract has a duration of five years with options to extend to up to four years.

Statoil is the operator of Mariner with 65.11% equity. Co-venturers are JX Nippon Exploration and Production (U.K.) Limited (28.89%) and Dyas UK Ltd. (6%). The Mariner Field is located on the East Shetland Platform of the UK North Sea, approximately 95 miles east of the Shetland Isles.

The Mariner platform is currently under construction. Predrilling will commence in 2016, and production is scheduled to start in 2018. The development of the Mariner field will contribute more than 250 million barrels reserves with average plateau production of around 55,000 barrels per day.

Based in Aberdeen, ESS Offshore delivers market leading services to offshore locations in the UK and around the world. 14forty is one of the world's leading food and support services businesses, offering integrated facilities management.

History repeats itself. In January 1959 the first LNG vessel shipped out from Lake Charles, Louisiana to deliver its trial cargo to Europe. Soon, another important LNG shipment is going to leave the Gulf of Mexico. This time, the destination is Lithuania – one of the first deliveries from Cheniere’s Sabine Pass LNG export terminal will be sent to Port of Klaipėda in January 2016.

Driven by significantly higher natural gas prices compared within Western-Europe, Lithuania took the decision to reduce dependence on Russia by building an LNG import terminal. The project was executed within three years and the Independence FSRU (Floating Storage and Regasification Unit) started operations in December 2014. If planned gas infrastructure developments are delivered in the future, Lithuania will be able to cover domestic natural gas demand from LNG and even export gas to its neighbors. As a result, Gazprom has offered a gas price discount of almost 20% to the country.

Other Central-Eastern European countries are seeking to diversify their gas import sources through LNG. After a two-year project delay, the Polish LNG terminal is scheduled to start its commercial operation in May 2016. The Croatian Government has also announced the construction of an LNG import terminal as a strategic investment project which has recently received the location permit on Krk Island. If Hrvatska LNG passes the final investment decision next year, the plant could be commissioned in 2019.

Currently, 26 LNG import terminals are in operation in the EU-28 countries, with annual regasification capacity of 195bcm. An additional 23bcm/y of capacity is currently under construction with 13bcm/y expected to come online this year with the start of the Dunkerque LNG Terminal in France. Total European LNG import capacity already exceeds recent Russian exports volumes. With extensive LNG export infrastructure developments in North America and Australia, and slowing gas demand growth in China and Japan, more LNG is anticipated to be available to European gas markets, potentially reshaping the continent’s natural gas landscape significantly.

Claxton Engineering Services Ltd, an Acteon company, is celebrating its 30th anniversary of successful operations in offshore and subsea engineering. The company has grown extensively since it began in the UK in 1985 and now employs approximately 150 people in offices across Europe, Asia and the Middle East.

In October, Claxton’s managing director, Laura Claxton, was nominated and shortlisted for the prestigious Businesswoman of the Year award at the 33rd Vitalise Women of the Year Luncheon & Awards. This was in recognition of her role in supporting Claxton’s successful growth in the UK and internationally; the company’s annual turnover almost quadrupled between 2006 and 2014.

Laura Claxton said, “I am very proud of what Claxton has achieved over the last 30 years. We are now a genuinely international business, having worked in 35 different countries across six continents. Our staff has 1000 years of combined industry experience between them. Our ethos of strong service and delivery and a commitment to our customers has enabled us to provide engineering and services that match and often exceed those of much larger competitors.”

Dannie Claxton, technical director, Claxton, added, “The oil and gas market has changed significantly over the last 30 years and Claxton’s customer requirements have changed with it. More so than ever, operators are under pressure to deliver projects safely, quickly and efficiently. Claxton continually adapts its offshore engineering and support services, and uses its extensive in-house capabilities and experience to deliver value for its clients through the development of new technologies to tight schedules or using smarter methodologies.”

Claxton has designed and supplied more than 3000 custom-built solutions to customers; installed more than 5,000 conductor guide centralisers; built up a rental pool of more than 4000 items; completed more than 280 decommissioning projects; and produced and run 1,460 m (1,129 t) of high-pressure, subsea drilling risers.

Claxton has also achieved several industry firsts. In 2009, Claxton supplied the world’s first 12,200-psi, high-pressure, high-temperature riser technology. The company also pioneered the positive-grip tension ring and designed and built the largest tensioning system in the world at 1000 t. Claxton also performed the first rigless well abandonment in the North Sea in the Leman field for Perenco and, in 2014, completed the first rigless removal of a stuck bottomhole assembly during slot recovery.

Laura Claxton concluded, “By continually striving to respond and adapt to customers’ needs, we have built an enviable reputation and a robust suite of products and services that we are truly proud of. Across our entire product range, from a pre-drilling template, to a complete riser system, to decommissioning and extending the life of assets, you will find innovation drawn from our team’s passion for solving operating challenges. We look forward to rising to the challenges that lie ahead over the next 30 years.”

Claxton has created an infographic of 30 company facts to mark its 30th birthday.

Atwood Oceanics, Inc. (NYSE: ATW) announces that one of its subsidiaries agreed to an extension and rate adjustment to its existing contract with Noble Energy, Inc. for the ultra-deepwater rig, the Atwood Advantage, effective November 9, 2015. The agreement is to extend the contract for the purposes of a plugging and abandoning four well program in the Gulf of Mexico that has an estimated duration of one hundred and twenty (120) days during the contract term and is anticipated to occur in 2016. This extension adjusts the operating day rate to approximately $240,000 per day only during the four plug and abandon wells and makes the new contract expiry date approximately August 2017.

Atwood Oceanics, Inc. also announces that one of its subsidiaries has received a letter confirming that it has been chosen to enter exclusive negotiations with an undisclosed operator to conclude agreement on a drilling program offshore Brazil commencing in the third quarter of 2017. The letter specifies that either the Atwood Admiral or Atwood Archer, ultra-deepwater drillships currently under construction at the Daewoo Shipbuilding & Marine Engineering Co., Ltd yard in South Korea, would be contracted to drill the program. The letter specifies a number of contractual items that have been agreed by the parties, including the commercial rates, well count, minimum term length, and rig acceptance criteria.

Marathon Oil Corporation (NYSE: MRO) announces that the Company has signed an agreement for the sale of its operated producing properties in the greater Ewing Bank area and non-operated producing interests in the Petronius and Neptune fields in the Gulf of Mexico for $205 million. The buyer will assume all future abandonment obligations for the acquired assets. These assets represent a majority of the Company's operated and non-operated producing properties in the Gulf of Mexico. The effective date of the transaction is Jan. 1, 2015. Closing is expected before year end.

Marathon Oil will retain its interests in certain other producing assets and acreage in the Gulf of Mexico, as well as its interests in the Gunflint development and Shenandoah discovery.

Marathon Oil Corporation is a global exploration and production company. Based in Houston, Texas, the Company had net proved reserves at the end of 2014 of 2.2 billion barrels of oil equivalent in North America, Europe and Africa. For more information, please visit the website here.

Radio Holland, part of RHMG, will keep its name

RH Marine Group, formerly known as Imtech Marine was introduced at the Europort exhibition in Rotterdam on November 5th.

Following the recent acquisition by Parcom Capital and Pon Holdings, Imtech Marine will now be known as RH Marine Group. RH Marine Group is built on the strong roots of the founding companies, Radio Holland and van Rietschoten & Houwens.

The two major ‘pillars’ for service and newbuild activities within Imtech Marine are also involved in the new naming structure. Radio Holland will keep its name but will have a fresh new logo. Radio Holland is the renowned global NavCom, Connectivity, On Board ICT service and maintenance brand and connects its customers to an unrivalled network of offices and support locations along the global shipping routes. It delivers unique technical service expertise that helps customers run smarter, more profitable businesses. Additionally, the Radio Holland management team has announced a strategy to strengthen the company’s offer in On Board ICT. Building on its experience of successful design and implementation of integral on-board networks, Radio Holland will provide customers with customised solutions that seamlessly align with their ICT and connectivity needs.

The newbuild pillar or former ‘Imtech Marine & Offshore’ is relaunched under the name RH Marine. RH Marine is the leading system integrator and full-service provider of state of-the-art technology to support the core processes of complex ships, with innovative solutions in Electrical, Automation systems and HVAC. As a Maritime System Integrator, RH Marine is active in a number of dedicated markets including: navy, megayachts, special vessels & ferries and cruise ships (via the specialized HVAC company Schiffbau-/Dockbautechnik in Hamburg). Its innovation focus is directed towards hybrid power solutions, future proof ship automation and performance management.

René ten Brinke, CEO of RH Marine Group comments: “The rich heritage of the founding companies, Van Rietschoten & Houwens, dating back to 1860, and Radio Holland dating back to 1916, played a key role in the new naming. With both companies’ initials being RH, it made sense for us to integrate those letters into the new naming and implement a new, sharp and colourful branding for RH Marine Group, Radio Holland and RH Marine.

Our fleet of brands including Radio Holland, RH Marine, Van Berge Henegouwen, Venteville, Techsol Marine, Elkon, Schiffbau-/Dockbautechnik and Tess will all keep individual names and branding styles and focus on their key specialisms, technology expertise and target markets to deliver customised, flexible solutions which closely align with customers’ requirements. In a sense, this is a new start and we’re looking forward to the future.”

Symbolic to the heritage of the company, RH Marine Group showcases the ‘Flyer’ at its booth at Europort. The Flyer is the famous sailing yacht with which Conny van Rietschoten won the Whitbread race around the world in 1978, now known as the Volvo Ocean Race. Delegates attending Europort can visit the Flyer on request.

Global marine technology company, Kongsberg Maritime has appointed a new business manager for the Offshore Production division of its Kongsberg Maritime Ltd base in Aberdeen.

David Wilson has over 27 years’ experience in the marine engineering industry, the vast majority of which has been spent with Kongsberg Maritime. He has played an integral role within a number of teams, holding key positions within technical sales and business development, covering Offshore Support, Offshore Survey and Construction, Merchant Shipping, Marine Research and Naval markets.

David Wilson, newly appointment business manager of Offshore Production, Kongsberg Maritime Ltd

Since 2012, David has held the position of general manager, Kongsberg Maritime Middle East DMCCO (Dubai) and returns to Aberdeen to manage the company’s Offshore Production division, focusing on its integrated control and safety systems (ICSS), which allow operators to control complex production facilities, using Kongsberg’s unique “The Full Picture” philosophy.

Commenting on David’s appointment, Frank McLean, general manager of Kongsberg Maritime Ltd’s Aberdeen base said: “David brings a wealth of experience to our Offshore Production division, having an impressive track record of sales and business development across the company.

“This is a period of challenge for the offshore industry, and there is no doubt that David has the capacity to strengthen Kongsberg’s offering of attractive full-scale integrated asset management solutions and services to our customers.”

Commenting on his appointment, Mr Wilson said: “My focus in the Middle East was customer support, and this will be valuable on my return to lead the Offshore Production team in Aberdeen. Kongsberg Maritime currently has topside automation on several oil and gas production units in the UK sector, and recent major contract wins with Statoil (Mariner) and BWO (Catcher) demonstrate clear market recognition of our strengthening capabilities.

“I look forward to working with our customers to continue to offer the very best solutions, products and services.”

McDermott International, Inc. (NYSE:MDR) announced on Monday, November 9th, that it has been awarded a large brownfield contract by RasGas Company Limited (RasGas) for the engineering, procurement, construction and installation (EPCI) of a flow assurance and looping project consisting of 74 miles of 6- and 8-inch pipeline and topside modifications, offshore Qatar. Work is scheduled for completion by the end of the third quarter of 2017.

McDermott and RasGas have worked closely together for two decades with McDermott having fabricated and installed numerous RasGas facilities offshore Qatar. Currently, the companies have an Engineering Service Agreement (ESA) under which McDermott has executed several concept studies and Front End Engineering Design (FEED) projects. Additionally, the McDermott team is assisting with the upgrade and replacement of three helidecks.

“Some 20 years ago, McDermott and RasGas began building what has become a historically strong working relationship,” said Tom Mackie, McDermott’s Vice President, Middle East. “This set the stage for this award. By combining our knowledge of the customer’s current production infrastructure, early collaboration through our ESA, and our unique brownfield capabilities, McDermott provided RasGas with an optimal EPCI solution.”

Engineering, procurement and fabrication is expected to be performed by McDermott’s teams based in Dubai, U.A.E. Vessels from the McDermott global fleet are expected to undertake the installation work.

Revenue for the order will be included in McDermott’s third quarter 2015 backlog

Anadarko Petroleum Corporation (NYSE: APC) has announced the following statement from Chairman, President and CEO Al Walker:

"We constantly strive to make Anadarko a better company. As part of these efforts to enhance value, and after extensive analysis of public information, we recently sent Apache Corporation a non-binding offer to acquire the company. The proposed all-stock transaction, which included a modest premium, would have been highly accretive to Anadarko on a cash flow per-share basis, even before synergies. Further, based on public information and Apache's historic financial and operating underperformance, the proposed transaction offered shareholders of both companies numerous value-creation opportunities given Anadarko's demonstrated success at building value through operational excellence, proven capital allocation, and active portfolio management.

"Our efforts to enter into a mutually acceptable confidentiality agreement for the purpose of exploring the merits of a potential transaction were summarily rejected and no discussions of substance occurred. We are unwilling to pursue the transaction without access to detailed non-public information, and based on our analysis, which shows that Apache appears to trade at or near full value currently, the offer was withdrawn."

Tendeka, the provider of completions systems and services to the upstream oil and gas industry, has signed a two-year agreement with SapuraKencana Energy Peninsula Malaysia Inc. (SKE) for the exclusive application of Tendeka’s market-leading FloSure™ Autonomous Inflow Control Device (AICD) valves. The contract was awarded through Tendeka’s partner in Malaysia, Aemos.

The work will include modifying existing ICD screens to incorporate Tendeka’s AICD valves on the SKE-operated East Belumut oil field. The field is located approximately 160 miles offshore Peninsula Malaysia.

Early water or gas breakthrough can result in lost recovery, lost revenues and reduced well life. Tendeka’s AICD, part of the company’s fully integrated sandface completions solution, self-adjusts to choke back zones where unwanted water or gas breakthrough has occurred to promote oil production.

More than 10,000 FloSure™ AICD valves have been installed to date globally in light and heavy oil wells, ensuring uniform production longevity and increasing production rates by up to 50% in comparison to passive inflow control technology.

Gillian King, Tendeka’s Vice President of APAC, said: “We are delighted to have been awarded this contract, our first AICD technology in Malaysia. Detailed analysis of the field’s reservoir characteristics indicate it is a perfect application for our technology and the modelling shows significant productivity improvements. This will be the first deployment of AICD technology within SKE-operated assets. We look forward to working closely with SKE to install this innovative solution and to share the positive results with other clients within Malaysia”.

Tendeka has a proven record in the provision of completions and reservoir monitoring products, systems and services. Our robust solutions help operators overcome the technological challenges they are facing, as we work to continuously develop our offering to the oil and gas industry. Our focus is to improve returns and create value from our client’s wells by providing high quality completions and well services to significantly improve performance.

For more information on the products visit www.tendeka.com

Danos is proud to announce that the company’s Amelia, La.-­‐based fabrication facility has achieved ISO 9001:2008 certification for its quality management system (QMS). Two of Danos’ other locations – the Larose fabrication shop and headquarters in Gray, La. – are already ISO 9001:2008 certified.

The ISO 9001:2008 standard is an important benchmark for quality based on recognized principles of superior quality control, including strong customer focus, motivation of top leaders, decision-­‐ making and commitment to continual improvement. Earning the certification requires an accredited third-­‐party auditing organization to thoroughly review a company’s internal QMS processes to ensure they are capable of consistently delivering a service that reliably meets customer needs and expectations. Danos is now fully certified by ABS-­‐QE for ISO 9001:2008 QMS for production workforce, fabrication, construction and coating services.

“We are proud of achieving ISO certification and what this means to our organization,” said Mark Danos, vice president of projects. “This helps us to continue to raise the standard that we have set to deliver high-­‐quality products to meet or exceed our customers’ needs.”

In addition, Danos’ fabrication shop in Amelia has received the American Society of Engineers (ASME) “U” and “R” stamp certifications for the fabrication and repair of boiler and pressure vessels. With the capacity to handle large-­‐scale fabrication projects, the Amelia yard includes 120,000 square feet of fabrication area, including 94,000 square feet under roof. Situated on Bayou Boeuf, the facility’s more than 18 feet of water depth makes load-­‐out easy for barges traveling to and from the Gulf of Mexico.

These industry certifications are evidence of Danos’ continuing commitment to providing the highest level of quality and customer service. The ISO 9001:2008 certification (created by the International Organization for Standardization) establishes Danos as a company that uses resources efficiently and has the right processes and people in place to consistently deliver on, and even exceed, customer expectations.

The results of two DNV GL led joint industry projects (JIPs) and a JIP pre-study commissioned by Statoil are now captured in a new Recommended Practice on offshore fiber ropes. With a system perspective on mooring performance, DNVGL-RP-E305 provides new industry guidance for achieving cost reductions of overall mooring operations, by addressing the engineering, manufacture, and integration of offshore fiber ropes.

The offshore oil and gas industry uses synthetic fiber ropes across various mission-critical activities where performance and reliability are key concerns. These include mooring systems, lifting slings, and deepwater deployment and recovery systems for subsea infrastructure.

“Fiber ropes are increasingly used for offshore operations due to their high performance for a very low weight and because they can be easily customized. Their functionality is critical to ensuring successful offshore operations,” said Vidar Åhjem, principal engineer, DNV GL - Oil & Gas. “Performance-based selection of the mooring lines, lifting lines, slings and tethers, renders these offshore systems highly cost effective.”

Lifting lines are used for the installation of subsea infrastructure, where the offshore fiber rope performs as an integral part of a lifting appliance and where no function can be seen in isolation. The integrated system behavior is also very important in offshore mooring.

“The technical advice provided to the offshore mooring industry in this RP help assure that the design, fabrication and installation of cost-efficient, tailor-made fiber rope based mooring systems will meet the functional requirements,” added Espen Cramer, global service area leader for technical advisory, DNV GL - Oil & Gas. “DNVGL-RP-E305 will be part of more than 170 recognized industry standards and recommended practices that are openly accessible for the industry from our home page, ensuring cost-efficient, reliable and safe solutions.”

NYC-based PIRA Energy Group reports that October crude prices traded within a narrow range. In the U.S., total commercial stocks drew again this week. In Japan, crude runs eased again while crude imports and stocks surged. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following:

North American Midcontinent Oil Forecast

October crude prices traded within a narrow range, with bullish sentiment related to declining domestic production offset by a bearish 20+ million barrel U.S. crude stock build associated with seasonal refinery maintenance. The majority of that stock build occurred in PADD III, resulting in weaker crude differentials in both West Texas and the Gulf Coast, relative to Cushing, where crude stocks were unchanged. Meanwhile, Bakken and Canadian light grades strengthened on the imminent start-up of two new northern pipelines.

Upside Production Surprise Before Abrupt Ongoing Downturn

Last Thursday's storage injection brings total inventories to 3,929 BCF assuring a new end-October record high. Updated balances now point to a 3.98-4.00 TCF weekly peak for the season with a daily foray above 4.0 TCF still in the cards. The inability to post an even higher peak underscores the extent to which supply and demand responses were needed to limit builds given feasible storage limits, namely within the Producing Region (PR), where stocks are projected to peak a bit above 1.4 TCF by mid-November. Such a level would be ~94% of demonstrated capacity — a figure that also highlights the need of incremental demand and the additional pullback in production of late needed to keep storage in check.

As Marginal Costs for Coal Units Hold Up, German Power Sets to Remain Firm

This week will see wind output rise well above normal levels, bringing German day-ahead prices down with them. There are, however, some structural factors that will continue to underpin German prices. While EUAs remain at multi-year highs, marginal costs for coal units are also relatively stronger than anticipated. In fact, critically low water levels in key stations along the Rhine River imply higher delivery costs by at least 0.8 to 2 euro/MWh. Power generators have announced possible disruptions, especially as water levels are moving further lower.

Brief Bullish Run Tamped Down, Market Returns to Downward Trajectory

The modest coal rally that occurred in late October into early November came to an end last week, with the entirety of the three major forward curves falling compared to the end of the previous week. FOB Newcastle (Australia) generally lost the most ground, while API#2 (Northwest Europe) and API#4 (South Africa) also fell, but to a lesser extent. API#5 prices (higher ash, lower cv FOB Newcastle coal) fell sharply to a new low for the year. This is a reflection of how weak buying activity, particularly from China, is in the current market. With underlying Chinese coal demand and thermal coal imports continuing to contract year-on-year, it will be very difficult for prices to structurally rise.

Interest in California Offsets Prior to Compliance

PIRA expects a continued slow escalation in carbon price — with upward pressure from the increasing reserve price will be muted somewhat by bearish emissions data, weak inflation figures (impacting reserve price), and compliance offset usage. November has seen the milestone Compliance Period 1 surrender and will see the final auction of 2015. Interest in offsets drove prices higher and narrowed the spread vs. allowances.

European LPG Prices Mixed

Large cargo butane import prices were crushed 9% lower to be called below $360/MT, as low Rhine River levels are stifling barge traffic to Germany. Although higher prices persist up the river, halted barge traffic has disconnected inland markets and the Amsterdam/Rotterdam/Antwerp cargo market. Propane prices gained $11/MT to $367/MT for December futures — a level that has the arbitrage from the United States wide open.

Ethanol Prices Higher

U.S. ethanol prices increased the week ending October 30. Assessments were supported by higher gasoline and corn values.

Dollar Pressure

With commodity indices struggling to maintain multi-year lows, and farmers extremely undersold on 2015 production, it’s hard to find much to be bullish about.

Strong U.S. Labor Market Report Significantly Raises Odds of December Fed Tightening

Last week’s better-than-expected U.S. data for October removed worries about the economy’s momentum. They also suggested that the country’s labor market is increasingly running out of slack. There were signs of faster wage growth, but they remained tentative. The relationship between unemployment and wage inflation is likely to be a key concern for U.S. policymakers going forward. Asian manufacturing confidence data for October showed encouraging improvements.

U.S. Commercial Stocks Draw Again

Total commercial stocks drew this week, the second draw in a row. A drop in crude and product imports seems to be the primary driver. Total commercial stocks are down 6.0 million barrels from the all-time high. With larger draws the same few weeks last year, the commercial stock excess. Crude stocks built and the surplus widened to the highest of the year. With crude runs still low due to maintenance, this is not an unexpected outcome.

U.K. Gas Enters the Switching Band with Coal, but Effect Limited at this Point

The slide in NBP prices is leading gas to a more competitive position relative to coal. At current market prices, PIRA will be upgrading the utilization of U.K. gas-fired generation by roughly 1 GW through the end of the year and about 2 GWs in 1Q 2016.

U.S. Coal Market Forecast

Warm weather (actual and balance of month) is depressing natural gas prices and inflating coal stock levels, stirring memories of 2012. The downside price risks for gas and coal, which we warned about the past few months, have already arrived. More supply-side destruction in fossil fuel markets is expected.

WCI Carbon Market to Carry Surplus Forward, 2015 With Record Expected Length

Newly released California and Quebec GHG emissions data, through 2014, contained few surprises. The Compliance Period 1 allowance surplus is at least 35 MT, not accounting for use of offsets. Should 2014 CA broad scope emissions levels persist for 2015, the surplus would be about 35 MT for that year alone. CCA prices were not affected by the release.

Key Ethanol Industry Indicators Reverse

The week ending October 30, U.S. ethanol and production and stocks rose and the manufacture of ethanol-blended gasoline fell.

Key Indicators Continue to Gain

The S&P 500 posted a fifth week of gains. Most of the related indicators improved again (Russell 2000, volatility, and U.S. high yield credit). Emerging market bond credit performance has been flat the last several weeks, while the U.S. indicators have continued to improve. Overall, commodities eased again, as did ex-energy. Oil was slightly higher. With regard to currencies, the U.S. dollar was mostly stronger, most notably against the euro, yen, British pound, and key eastern European currencies. U.S. government bond yields have inched higher on short and longer-term maturities as markets continue to contemplate the Fed raising short-term rates at its next meeting, which will conclude December 16th.

Japanese Crude Runs Ease Again, Crude Imports and Crude Stocks Surge

Crude runs eased again and crude imports rose sharply from very low levels such that crude stocks ballooned 7.9 MMBbls. Finished product stocks posted a draw, though kerosene continued to build seasonally and there was a minor build in gasoline. Margins remain good and strengthened on the week due to higher cracks on all the major products.

Ukraine Receiving Gas Cheaper from Western Europe Despite Deal to Lower Russian Price

The price of natural gas (delivered to Ukraine) from the European Union under some contracts with national joint-stock company Naftogaz Ukrainy has fallen to the level that is lower than the price of Russia’s Gazprom, Business Development Director at Naftogaz Yuriy Vitrenko has stated. “Last week we’ve signed an agreement at the price lower than Gazprom’s [price]. This week we’ve also bought at a price lower than Gazprom’s [price],” he said.

CSAPR Emissions Below Cap — Awaiting New Regs

Emissions data for the Cross State Air Pollution Rule are complete through Q3 2015 (including the Ozone Season) and show significant year-on-year emissions decreases, with all programs set to finish 2015 at or below even tighter Phase II caps. The Seasonal NOx market awaits the new federal Transport Rule for 2008 Ozone NAAQS; it is unclear whether current allowances will be recognized. EPA must also address certain states’ budgets/caps, while a decision is soon expected from the D.C. Circuit on MATS.

Global Equities Gain on the Week

Global equities gained on the week. In the U.S., growth sectors led the complex higher. Banking and energy well outperformed and posted strong gains. Defensive sectors underperformed as evidenced by declines in consumer staples and utilities. Internationally, many of the tracking indices were higher, led by a strong gain for China.

Petrobras Oil Workers Strike — A Step Toward a More Politicized Movement

The Petrobras oil workers' strike has spread to producing fields in the Campos Basin, which account for 65% of Brazil’s crude oil output. Oil production losses on Monday and Tuesday averaged 226 MB/D and reportedly increased on Wednesday. The company is trying to reduce the damage to production by sending contingency teams to the affected platforms. The downstream impact of the strike is likely to be limited since, by law, refining operations must meet a minimum requirement in order to avoid serious disruptions of supply. Unlike most previous labor actions, which focused on wages and have ended with typically little impact, the unions this time are demanding a say in management business decisions. PIRA’s best guess is that the strike does not last more than two weeks. Production losses will mostly impact exports, but not initially because ample stocks can be drawn down, but inevitably they will be lower than they would have been because of the output losses.

Poor Showing in China LNG Will Remove Support for Asia Spot

The illusion of spot price support in Asia is bound to be short lived if only for a severe slowdown in China, which has subscribed to a large portion of the new regional LNG supplies on offer.

Aramco Pricing Adjustments for December: Europe More Generous, Asia Tightened

Saudi Arabia's formula prices for December were just released. The most significant change was more generous terms for European destinations, with Northwest Europe being cut more aggressively than the MED. U.S. pricing was lowered by a modest amount, while Asian pricing was raised. The adjustments, in a broad sense, were in line with what fundamental pricing drivers would have suggested.

Keystone XL Pipeline Rejected

On Friday, U.S. President Obama formally rejected TransCanada’s application to build an oil pipeline from Alberta to Steele City, Nebraska, where it would connect with the existing Keystone pipeline system, increasing its capacity by 830 MB/D. This was a political decision and the President made it clear that fighting climate change is a priority for his remaining 14 months in office. In the near term, this decision will not have much impact on Canadian price differentials. However, by the end of this decade, new capacity will be needed to avoid steeper discounts for Canadian grades.

The information above is part of PIRA Energy Group's weekly Energy Market Recap - which alerts readers to PIRA’s current analysis of energy markets around the world as well as the key economic and political factors driving those markets.

LQT Industries, a full-service provider of high quality accommodation facilities, design -build construction services, and support services to the oil and gas industry, has been awarded multiple construction contracts including the fabrication and outfitting of steel modular buildings fo r an LNG facility in Southwest Louisiana.

The buildings consist of operator control and deluge buildings that house and protect specialty equipment. Each building will be fire and blast rated to the customer’s specifications. The project is scheduled to be completed by the end of the first quarter 2016.

LQT has also been awarded the fabrication and outfitting of an aluminum MCC building for a major oil and gas company. The aluminum MCC will be located on a n offshore platform in Trinidad. Also, LQT was awarded contracts from two (2) customers to build specialized equipment for offshore Gulf of Mexico operations.

The fabrication and outfitting will be completed at LQT’s construction facility in Abbeville, LA, which specializes in designing and fabricating various types of modular structures including MCC buildings, blast rated buildings, and accommodation buildings. LQT is currently expanding its fabrication facility to increase their capabilities in the ar ea of specialized building construction for the energy sector. This is the second expansi on in Abbeville, LA since 2014.

Chevron Corporation (NYSE: CVX) announces that its subsidiary, Chevron Overseas (Congo) Limited, has commenced oil and gas production from the Lianzi Field, located in a unitized offshore zone between the Republic of Congo and the Republic of Angola.

Located 65 miles (105 km) offshore in approximately 3,000 feet (900 meters) of water, Lianzi is Chevron's first operated asset in the Republic of Congo and the first cross-border oil development project offshore Central Africa. The project is expected to produce an average of 40,000 barrels of crude oil per day.

"This milestone demonstrates that we continue to make steady progress on delivering major development projects," said Jay Johnson, executive vice president Upstream, Chevron Corporation. "We have the industry's strongest queue of major capital projects that are expected deliver significant value and production growth."

"As the first offshore energy development spanning national boundaries in the Central Africa region, Lianzi represents a unique cooperative approach to share offshore resources and may serve as a model for the development of similar cross-border fields between two countries," said Ali Moshiri, president of Chevron Africa and Latin America Exploration and Production Company.

The field, discovered in 2004, includes a subsea production system and a 27 mile (43 km) electrically heated flowline system, the first of its kind at this water depth. The system transports the oil from the field to the Benguela Belize–Lobito Tomboco platform in Angola's Block 14 and utilizes a Direct Electrical Heating (DEH) system to ensure fluid flow under a wide range of conditions.

Chevron Overseas (Congo) Limited is operator of the Lianzi Field and has a 15.75 percent interest, along with its affiliate Cabinda Gulf Oil Company Limited (15.5 percent), Total E&P Congo (26.75 percent), Angola Block 14 BV (10 percent), Eni (10 percent), Sonangol P&P (10 percent), SNPC (the Republic of Congo National Oil Company – 7.5 percent), and GALP (4.5 percent).