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Eni has made a world class supergiant gas discovery at its Zohr Prospect, in the deep waters of Egypt. The discovery could hold a potential of 30 trillion cubic feet of lean gas in place covering an area of about 100 square kilometres. Zohr is the largest gas discovery ever made in Egypt and in the Mediterranean Sea. Eni will immediately appraise the field with the aim of accelerating a fast track development of the discovery that will utilise at best the existing offshore and onshore infrastructures. Eni’s CEO, Claudio Descalzi, has recently travelled to Cairo to update Egypt’s President, Abdel Fattah Al-Sisi, on this important success, and discuss this discovery with the Prime Minister, Ibrahim Mahlab, and the Minister of Petroleum and Mineral Resources, Sherif Ismail.

The discovery, after its full development, will be able to ensure satisfying Egypt’s natural gas demand for decades
According to the well and geophysical data available, the field could hold a potential of 30 trillion cubic feet of lean gas in place, therefore representing one of the world’s largest natural-gas finds, located in a permit where Eni holds a 100% of the Contractor’s working interest
Eni’s CEO, Claudio Descalzi, has recently travelled to Cairo to discuss the new exploration success with the Egyptian institutional leaders
San Donato Milanese (Milan), 30 August 2015 – Eni has made a world class supergiant gas discovery at its Zohr Prospect, in the deep waters of Egypt. The discovery well Zohr 1X NFW is located in the economic waters of Egypt’s Offshore Mediterranean, in 4,757 feet of water depth (1,450 metres), in theShorouk Block, signed in January 2014 with the Egyptian Ministry of Petroleum and the Egyptian Natural Gas Holding Company (EGAS) following a competitive international Bid Round.

According to the well and seismic information available, the discovery could hold a potential of 30 trillion cubic feet of lean gas in place (5.5 billion barrels of oil equivalent in place) coveringan area of about 100 square kilometres. Zohr is the largest gas discovery ever made in Egypt and in the Mediterranean Sea and could become one of the world’s largest natural-gas finds. This exploration success will give a major contribution in satisfying Egypt’s natural gas demand for decades.

Eni will immediately appraise the field with the aim of accelerating a fast track development of the discovery that will utilise at best the existing offshore and onshore infrastructures.

Zohr 1X NFW was drilled to a total depth of approximately 13,553 feet (4,131 metres) and hit 2,067 feet (630 metres) of hydrocarbon column in a carbonate sequence of Miocene age with excellent reservoir characteristics (400 metresplus of net pay). Zohr’s structure has also a deeper Cretaceous upside that will be targeted in the future with adedicated well.

Eni’s CEO, Claudio Descalzi, has recently travelled to Cairo to update Egypt’s President, Abdel Fattah Al-Sisi, on this important success, and discuss this discovery with the Prime Minister, Ibrahim Mahlab, and the Minister of Petroleum and Mineral Resources, Sherif Ismail.

“It’s a very important day for Eni and its people. This outstanding result confirms our expertise and our technological innovation capacity with immediate operational application, and above all shows the strength of the cooperation spirit amongst all the company’s units which are at the foundation of our great successes. Our exploration strategy allows us to persist in the mature areas of countries which we have known for decades and has proved to be winning, reconfirming that Egypt has still great potential. This historic discovery will be able to transform the energy scenario of Egypt in which we have been welcomed for over 60 years. The exploration activities are central to our growth strategy: in the last 7 years we have discovered 10 billion barrels of resources and 300 million in the first half of the year, confirming Eni’s leading position in the industry. This exploration success acquires an even greater value as it was made in Egypt which is strategic for Eni, and where important synergies with the existing infrastructures can be exploited allowing us a fast production startup‘, Claudio Descalzi commented.

Eni, through its subsidiary IEOC Production B.V., holds a 100% of the Contractor’s working interest in the Shorouk Block and is the operator of the concession. Eni has been present in Egypt since 1954 through its subsidiary IEOC, a company which has always been a frontrunner in exploring and exploiting gas resources in Egypt since the discovery of the Abu Maadi Field in 1967.
By adopting new exploration concepts, leading edge technologies and operational approaches, through AGIBA and Petrobel, operating companies participated by IEOC and EGPC, Eni has successfully managed to double production of oil from the Western Desert and the GOS Abu Rudeis Concessions in the last three years as well as to revamp production from the Abu Maadi plays in the Nile Delta area following the recently announced Nidoco NW 2 discovery (Nooros prospect) currently already in production.
Eni is the main hydrocarbon producer in Egypt, with a daily equity production of 200,000 barrels of oil equivalent.

The development of the largest new field discovered in the UK North Sea for a decade* has been approved by the UK Oil & Gas Authority. The Maersk Oil operated high pressure, high temperature (HPHT) Culzean field in the UK Central North Sea is expected to produce enough gas to meet 5% of total UK demand at peak production in 2020/21. Culzean is also the largest gas field sanctioned since East Brae in 1990*.

Discovered in 2008 by Maersk Oil and its co-venturers, the gas condensate field has resources estimated at 250-300 million barrels of oil equivalent. Production is expected to start in 2019 and continue for at least 13 years, with plateau production of 60,000-90,000 barrels of oil equivalent per day.

Maersk Oil and its co-venturers, JX Nippon and BP (Britoil) are investing around £3bn (USD 4.5 bn) in the development, with more than 50% committed to investments in the UK. Over the projected life of the field, it’s anticipated that £2.1bn (USD 3.3 bn) in operating expenditure will be spent in the UK domestic market. The Culzean field aligns with the UK’s commitment to increased gas-fired electricity generation and is expected to support an estimated 6,000 UK jobs and create more than 400 direct jobs.

The Culzean development has benefited from the HPHT Cluster Area Allowance introduced by the UK Government as part of the 2015 Budget. The allowance supports the development of high pressure, high temperature projects – which typically have considerably higher capital costs – and encourages exploration and appraisal activity in the surrounding area or ‘cluster’.

Welcoming today’s announcement, Jakob Thomasen, CEO of Maersk Oil said, “Culzean is an important development for the UK and also for Maersk Oil and our co-venturers. We are pleased the field will support UK economic growth as well as extend understanding of HPHT development. Culzean is the latest in a series of large investments by Maersk Oil in the North Sea where we are active in Denmark, Norway and the UK – reflecting our commitment to the future of the North Sea region.”

The Chancellor of the Exchequer, Rt Hon George Osborne MP said, “Today’s announcement sends a clear signal that the North Sea is open for business. Already the UK’s oil and gas industry supports hundreds of thousands of jobs across the country and this £3 billion investment comes on the back of massive government support for the sector. “Despite challenging times, this government has backed the oil and gas industry at every turn, introducing a vital package of support to help it to protect and create jobs.

Andy Samuel, Chief Executive of the Oil & Gas Authority said, ”Maersk Oil and partners’ £3 billion investment to develop the Culzean discovery is excellent news for the UK during a period when the decline in global oil prices has created difficult operating conditions for this critical sector of our economy. The Oil & Gas Authority has worked closely with Maersk Oil and HM Treasury on the development plans for the Culzean field, which will support many new contracts in the oil and gas supply chain across the UK.”

The Oil & Gas Authority (OGA) – the UK’s oil and gas regulator – today announced that 27 onshore blocks from the 14th Onshore Oil and Gas Licensing Round will be formally offered to companies.

A second group of 132 further blocks has been subjected to detailed assessment under the Conservation of Habitats and Species Regulations 2010, the findings of which are now out for consultation.

Subject to the outcome of that consultation, the OGA will announce offers for the second group of licence blocks later in the year. The licences for all offered blocks will then be granted after the terms and conditions have been finalised.

OGA Chief Executive Andy Samuel said: “With almost 100 applications received, the 14th Onshore Round has attracted significant interest and high-quality proposed work programmes from a range oil and gas companies. Today’s announcement regarding the offer of 27 blocks gives those successful companies assurance about the blocks that they will be formally offered later in the year.”

UK Energy Minister Lord Bourne said: “As part of our long-term plan to build a more resilient economy, create jobs and deliver secure energy supplies, we continue to back our onshore oil and gas industry and the safe development of shale gas in the UK. This is why the OGA has moved quickly to confirm the winners of licence blocks which do not need further environmental assessment.

“Keeping the lights on and powering the economy is not negotiable, and these industries will play a key part in providing secure and reliable energy to UK homes and businesses for decades to come.

“It’s important we press on and get shale moving, while maintaining strong environmental controls. Investment in shale could reach £33 billion and support 64,000 jobs creating financial security for hardworking people and their families, whilst providing a cost-efficient bridge to lower-carbon energy use.”

The Habitats consultation, which covers those blocks which do require further environmental assessment, enables the public and other interested parties to submit responses by the end of September. The OGA will then consider the results of the consultation before offering any further blocks.

The 14th Onshore Oil and Gas Licensing Round was launched on 28 July 2014 and closed on 28 October 2014. A total of 95 applications were received from 47 companies covering 295 Ordnance Survey Blocks.

No licences are being issued today. Successful companies for the 27 blocks are being notified that they are going to be awarded a licence once the HRA for the other sites is completed.

A “block” is an area of land, typically 10km x 10km. The Petroleum Exploration and Development Licence (PEDL), granted under the provisions of the Petroleum Act 1998, affords exclusive rights to licensees “to search and bore for and get petroleum” in all the various stages of oil and gas operations – exploration, appraisal, production and abandonment of wells. The PEDL itself does not confer on the licensee any consent, approval or permission to carry out specified development activities – all activities, such as drilling, will necessarily require further consents, including planning permission and environmental permits.

Following discussion with prospective licensees, and in accordance with the new devolution settlements set out in the Scotland Bill currently before Parliament and the soon to be introduced Wales Bill, the UK Government has decided that no new PEDLs will be awarded in Scotland or Wales as part of the 14th Round.

The announcement today covers 27 blocks that will be formally offered to successful companies in due course, with a further 132 blocks being subject to detailed assessment and consultation under the Conservation of Habitats and Species Regulations 2010. Under those Regulations, a competent authority may agree to a plan or project only if it will not adversely affect the environmental integrity of protected European sites. The public consultation stage of the Habitats assessment for the 14th Onshore Round commences today and will close at the end of September. The licences for all offered blocks will then be granted after the terms and conditions have been finalised.

Applicants’ technical analysis and work programme are assessed against a published marks scheme. Only companies with the necessary financial, technical and environmental competency are considered for award and each application must be support by evidence that the applicant meets the criteria.

Shell is the first company in the lubricants sector to launch an artificial intelligence-driven service for customers – Shell Virtual Assistant.

It is an interactive one-stop shop on the Shell website where customers and distributors can ask common lubricant-related questions, available 24 hours a day, seven days a week.

Customers and distributors type in their question via an online message window, and avatars Emma and Ethan reply back with an appropriate answer within seconds. The interaction is similar to a chat conversation, but instead of a live person on the other end, it is all done through artificial intelligence via a technology known as Natural Language Interaction. This technology allows interaction using normal, everyday language and is also in use in certain popular personal assistant applications.

This new lubricant service by Shell is now available to customers and distributors in the United Kingdom and the United States. Shell Virtual Assistant is capable of answering questions such as: where to buy lubricants, what pack sizes are available and give information about product technical properties. The service can also attend to requests for brochures, Technical Data Sheets (TDS), Material Safety Data Sheets (MSDS).

“Shell offers a wide range of lubricant-related services in addition to our product range. Our services help customers choose and use the right product to improve their operations. Shell Virtual Assistant is the next step in our delivery of great support – it is like having a technical expert at your fingertips, ready to answer your technical questions anytime. We are now evaluating launching Shell Virtual Assistant to other markets and in other languages in the near future,” said Roger Moulding, Vice President of Global Marketing, Shell Lubricants.

Shell Virtual Assistant can also make product recommendations based on customers’ equipment, by linking customers to Shell LubeMatch, a free online service where customers can find the right lubricants for their vehicles and equipment in seconds. Shell LubeMatch provides over two million product recommendations for Shell customers every year. It is the most robust oil selector tool in the market, available in 138 countries and 21 languages.

Shell Virtual Assistant also complements another Shell value-added lubricant service, Shell LubeAdvisor, another widely used service that helps customers optimise lubricants in their machinery. It includes a web platform, a technical helpdesk, as well as local application experts for deeper technical support. In fact, for more complex technical questions that Shell Virtual Assistant cannot answer, users are re-directed to Shell LubeAdvisor.

Shell’s business customers also want personal technical advice and support close by. In response, Shell now employs 350 technical field staff and 30 Product Application Specialists working directly with customers – more than any other lubricants supplier.

Shell Lubricants also offers other technical services such as: Shell LubeAnalyst, an oil condition monitoring service and Shell LubeCoach, a robust training programme for customers’ employees.

For more detailed information on Shell’s lubricant services, visit www.shell.com/techservices.

HOUSTON & DALLAS & PHILADELPHIA– Phillips 66 (NYSE: PSX), Energy Transfer Partners, L.P. (NYSE: ETP) and Sunoco Logistics Partners L.P. (NYSE: SXL) announced that they have formed a joint venture to construct the Bayou Bridge pipeline that will deliver crude oil from the Phillips 66 and Sunoco Logistics terminals in Nederland, Texas, to Lake Charles, Louisiana. The joint venture will also launch an expansion open season for service to the market hub in St. James, Louisiana. Phillips 66 holds a 40 percent interest in the joint venture and Energy Transfer and Sunoco Logistics each hold a 30 percent interest. Sunoco Logistics will be the operator of the system.

This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20150730006710/en/

“The Bayou Bridge pipeline, combined with the storage and logistics capabilities of our Beaumont Terminal, provides enhanced opportunities to deliver North American heavy and light crudes into the Louisiana market that is heavily dependent today on marine and rail delivery of crude oil,” said Greg Garland, chairman and CEO of Phillips 66. “The pipeline also complements other pipeline projects we have underway to deliver Bakken crude oil to the Gulf Coast.”

“Energy Transfer is excited to be part of the Bayou Bridge pipeline with our two joint venture partners,” said Lee Hanse, executive vice president of Energy Transfer Partners. “This project is the logical next step in our development of logistical infrastructure to move crude oil to market centers across the U.S., and we believe that it will be a critical conduit for our shippers to transport multiple grades of crude oil to the major refining market in Louisiana.”

“We are pleased to partner with Energy Transfer and Phillips 66 on the Bayou Bridge pipeline,” said Michael Hennigan, president and CEO of Sunoco Logistics. “We believe being connected to our 25 million barrel Nederland crude terminal on the Gulf Coast greatly benefits this project. Our extensive pipeline system connects our West Texas Permian, southern Oklahoma, Granite Wash, Eaglebine and East Texas systems to our Nederland terminal and now will have enhanced capability to further deliver crude barrels eastward on the Bayou Bridge pipeline into Louisiana.”

Construction is underway on the Nederland to Lake Charles segment of the pipeline, which will be 30-inch diameter and is expected to begin commercial operations in the first quarter of 2016. The companies will also launch a binding expansion open season to assess additional shipper interest for service with connectivity to existing terminal infrastructure and refineries in and around the St. James area. The results of the expansion open season will be used to determine the size of the pipeline to St. James, which has a forecasted in-service date of the second half of 2017.

The binding expansion open season will commence in the third quarter of 2015. Bona fide potential shippers that would like to receive copies of the expansion open season documents, the throughput and deficiency agreement, and proposed tariffs must first sign a confidentiality agreement. More information about the open season will be available on the ETP website at www.energytransfer.com/ops_lc_sj.aspx upon commencement of the open season or by email request to lc_sj@energytransfer.com.

About Phillips 66
Phillips 66 is a diversified energy manufacturing and logistics company. With a portfolio of Midstream, Chemicals, Refining, and Marketing and Specialties businesses, the company processes, transports, stores and markets fuels and products globally. Phillips 66 Partners, the company’s master limited partnership, is an integral asset in the portfolio. Headquartered in Houston, the company has 14,000 employees committed to safety and operating excellence. Phillips 66 had $49 billion in assets as of March 31, 2015. For more information, visit www.phillips66.com or follow us on Twitter @Phillips66Co.

About Energy Transfer Partners
Energy Transfer Partners, L.P. (NYSE: ETP) is a master limited partnership owning and operating one of the largest and most diversified portfolios of energy assets in the United States. ETP’s subsidiaries include Panhandle Eastern Pipe Line Company, LP (the successor of Southern Union Company) and Lone Star NGL LLC, which owns and operates natural gas liquids storage, fractionation and transportation assets. In total, ETP currently owns and operates more than 62,000 miles of natural gas and natural gas liquids pipelines. ETP also owns the general partner, 100% of the incentive distribution rights, and approximately 67.1 million common units in Sunoco Logistics Partners L.P. (NYSE: SXL), which operates a geographically diverse portfolio of crude oil and refined products pipelines, terminalling and crude oil acquisition and marketing assets. ETP owns 100% of Sunoco, Inc. and 100% of Susser Holdings Corporation. Additionally, ETP owns the general partner, 100% of the incentive distribution rights and approximately 44% of the limited partner interests in Sunoco LP (formerly Susser Petroleum Partners LP) (NYSE: SUN), a wholesale fuel distributor and convenience store operator. ETP’s general partner is owned by Energy Transfer Equity, L.P. (NYSE: ETE). For more information, visit the Energy Transfer Partners, L.P. website at www.energytransfer.com.

About Sunoco Logistics
Sunoco Logistics Partners L.P. (NYSE: SXL), headquartered in Philadelphia, is a master limited partnership that owns and operates a logistics business consisting of a geographically diverse portfolio of complementary crude oil, refined products, and natural gas liquids pipeline, terminalling and acquisition and marketing assets which are used to facilitate the purchase and sale of crude oil, refined products, and natural gas liquids. SXL’s general partner is a consolidated subsidiary of Energy Transfer Partners, L.P. (NYSE: ETP). For more information, visit the Sunoco Logistics Partners L.P. web site at www.sunocologistics.com.

HOUSTON –ExxonMobil today signed a memorandum of understanding with the Korea Institute of Energy Technology Evaluation and Planning and the Korea Gas Corporation (KOGAS) to hold discussions concerning natural gas technologies and new energy technologies.

The agreement will focus on the natural gas value chain, including cryogenic materials, hydrogen production and fuel cell utilization, energy efficiency technologies and technologies associated with robotics and automation.

The multi-year agreement was signed in the presence of Youngsam Kim, director general of investment policy at the Korea Ministry of Trade and Industry; Sara Ortwein, president of ExxonMobil Upstream Research Company; Richard Guerrant, vice president of ExxonMobil Gas and Power Marketing Company; and Graham Dodds, president of ExxonMobil in Korea.

Rob Franklin, president of ExxonMobil Gas and Power Marketing, said ExxonMobil is a world leader in LNG across the entire value chain.

“This memorandum of understanding establishes a framework that allows for information exchange on liquefied natural gas technology, research and development projects and best practices,” said Franklin. “It will enable professional exchanges that will help expand our joint capabilities.”

Sara Ortwein, president of ExxonMobil Upstream Research Company, said the technology development is vital to providing energy to help meet the world’s energy needs.

“Strong partnerships are key to developing and delivering integrated technology solutions,” Ortwein said. “We look forward to working with the Korea Institute of Energy Technology Evaluation and Planning and the Korea Gas Corporation to advance new research and development opportunities and energy technologies.”

Graham Dodds, president of ExxonMobil in Korea, noted that ExxonMobil has had a presence in Korea for more than 40 years, and through its ventures supplies about 30 percent of LNG demand, manufactures and markets Mobil-branded lubricants and markets ExxonMobil chemical products in the country.

“This agreement strengthens the links between ExxonMobil and Korea,” said Dodds.

About ExxonMobil

ExxonMobil, the largest publicly traded international oil and gas company, uses technology and innovation to help meet the world’s growing energy needs. ExxonMobil holds an industry-leading inventory of resources and is one of the world’s largest integrated refiners, marketers of petroleum products and chemical manufacturers. For more information, visit www.exxonmobil.com or follow us on Twitter www.twitter.com/exxonmobil.

BHP Billiton expects to recognise an impairment charge of approximately US$2 billion post-tax (or approximately US$2.8 billion pre-tax) against the carrying value of its Onshore US assets as an exceptional item in the 2015 financial year results.

The gas focused Hawkville field accounts for the substantial majority of this charge reflecting its geological complexity, product mix, acreage relinquishments and amended development plans. The remainder relates to the impairment of goodwill associated with the Petrohawk acquisition.

Following this impairment, the Group’s Onshore US business will have net operating assets of approximately US$24 billion1. The value of this business is supported by ongoing cost reductions and improving well performance which help offset increased commodity price volatility and lower near term capital expenditure. Consistently positive results from the appraisal and development of the Permian have also unlocked significant value and we now see the ultimate potential of this field at over 150 kboe/d (up from our previous estimate of 100 kboe/d).

BHP Billiton Petroleum President, Tim Cutt, said: “While the impairment of the Hawkville is disappointing, it does not reflect the quality of our broader Onshore US business. The Black Hawk continues to exceed expectations, the Permian offers significant upside across multiple zones and the Haynesville, one of the industry’s premier dry gas positions, provides an excellent development option as market conditions improve. With industry-leading drilling costs and recoveries, we are well positioned to realise significant value for shareholders as we develop our high-quality resource base.”

BHP Billiton plans to invest US$1.5 billion in the Onshore US in the 2016 financial year, which will support a development program of 10 operated rigs. At an oil price of US$60 per barrel (West Texas Intermediate) and a gas price of US$3.00 per Mscf (Henry Hub), the Group expects its Onshore US business to be free cash flow positive in the 2016 financial year. Associated production guidance will be provided in the June 2015 Operational Review to be released on 22 July 2015.

The broader carrying value assessment of the Group’s assets will be finalised in conjunction with the preliminary financial results to be released on 25 August 2015.

10 July 2015 – Global oil demand growth is forecast to slow to 1.2 million barrels per day (mb/d) in 2016, from an average 1.4 mb/d this year, the IEA Oil Market Report for July informed subscribers, though strong consumption is expected in non-OECD Asia.

World oil demand growth appears to have peaked in the first quarter at 1.8 mb/d and will continue to ease throughout the rest of 2015 and into 2016 as temporary support fades.

Global oil supply surged by 550 000 barrels per day (550 kb/d) in June, on higher output from both OPEC and non-OPEC producers. At 96.6 mb/d, world oil production was an impressive 3.1 mb/d higher than a year earlier, with OPEC crude and natural gas liquids accounting for 60% of the gain. Non-OPEC supply growth is expected to grind to a halt in 2016, as lower oil prices and spending cuts take a toll.

OPEC crude supply rose by 340 kb/d in June to 31.7 mb/d, a three- year high, led by record high output from Iraq, Saudi Arabia and the United Arab Emirates. OPEC output stood 1.5 mb/d above the previous year. The “call on OPEC crude and stock change” for 2016 is forecast to rise by 1 mb/d, to 30.3 mb/d.

OECD industry inventories hit a record 2 876 mb in May, up by a steep 38 mb. Product holdings led the build-up and by end-month covered 30.7 days of forward demand. Global supply and demand balances suggest that the rate of global stock increases quickened rapidly to an astonishing 3.3 mb/d during the second quarter.

Robust margins spurred stronger-than-expected OECD refinery runs, lifting second-quarter global throughput estimates to 78.7 mb/d. Global refinery throughputs are forecast to increase by a further 0.7 mb/d in the third quarter, with annual gains shifting to the non-OECD. New capacity start-ups in 2015 and 2016 will put margins under pressure.

The July OMR also features a focus on the demand implications of the Greek debt crisis as well as analysis of OPEC capacity, Petrobras and refinery capacity additions.

Major oil and gas companies, BG Group plc, BP plc, Eni S.p.A., Royal Dutch Shell plc, Statoil ASA and Total SA, today announced their call to governments around the world and to the United Nations Framework Convention on Climate Change (UNFCCC) to introduce carbon pricing systems and create clear, stable, ambitious policy frameworks that could eventually connect national systems. These would reduce uncertainty and encourage the most cost effective ways of reducing carbon emissions widely.
The six companies set out their position in a joint letter from their chief executives to the UNFCCC Executive Secretary and the President of the COP21. This comes ahead of the UNFCCC’s COP21 climate meetings in Paris this December.

With this unprecedented joint initiative, the companies recognize both the importance of the climate challenge and the importance of energy to human life and well-being. They acknowledge the current trend of greenhouse gas emissions is in excess of what the Intergovernmental Panel on Climate Change says is needed to limit global temperature rise to no more than 2 degrees Centigrade, and say they are ready to contribute solutions.

As the chief executives write:

“Our industry faces a challenge: we need to meet greater energy demand with less CO2. We are ready to meet that challenge and we are prepared to play our part. We firmly believe that carbon pricing will discourage high carbon options and reduce uncertainty that will help stimulate investments in the right low carbon technologies and the right resources at the right pace. We now need governments around the world to provide us with this framework and we believe our presence at the table will be helpful in designing an approach that will be both practical and deliverable.” (Helge Lund, BG Group Plc; Bob Dudley, BP plc; Claudio Descalzi, Eni S.p.A.; Ben van Beurden, Royal Dutch Shell plc; Eldar Sætre, Statoil ASA; Patrick Pouyanné, Total S.A.).

The chief executives have also today sent an additional letter to the media, setting out this position on carbon pricing and also the role that natural gas can play in reducing carbon emissions.

Royal Dutch Shell plc (Shell) today announces the final investment decision (FID) to advance the Appomattox deep-water development in the Gulf of Mexico. This decision authorises the construction and installation of Shell’s eighth and largest floating platform in the Gulf of Mexico. The Appomattox development will initially produce from the Appomattox and Vicksburg fields, with average peak production estimated to reach approximately 175,000 barrels of oil equivalent (boe) per day. The platform and the Appomattox and Vicksburg fields will be owned by Shell (79%) and Nexen Petroleum Offshore U.S.A. Inc. (21%), a wholly-owned subsidiary of CNOOC Limited.
“We have again delivered a globally competitive investment scope for another significant deep-water project,” said Marvin Odum, Shell Upstream Americas Director. “Appomattox opens up more production growth for us in the Gulf of Mexico, where our production last year averaged about 225,000 boe per day, and this development will be profitable for decades to come. With its competitive cost and design, Appomattox is next in our series of deep-water successes.”

During design work for Appomattox, Shell reduced the total project cost by 20% through supply chain savings, design improvements, and by reducing the number of wells required for the development. This includes advancements from previous four-column hosts, such as the Olympus tension-leg platform (TLP), as well as ensuring a high degree of design maturity before construction. With these and other cost reductions, the go-forward project breakeven price is estimated to be around $55 per barrel Brent equivalent.

Shell is currently the only operator in the Gulf of Mexico with commercial deep-water discoveries in this formation (Norphlet), which dates back 150-200 million years ago to the Jurassic period. The company continues active exploration in the area.

The sanctioned project includes capital for the development of 650 million boe resources at Appomattox and Vicksburg, with start-up estimated around the end of this decade. The development of Shell’s recent, nearby discoveries at the Gettysburg and Rydberg prospects remains under review. These could become additional, high-value tiebacks to Appomattox, bringing the total estimated discovered resources in the area to more than 800 million boe.

Shell Pipeline Company LP also made a final investment decision on the Mattox Pipeline, a 24-inch corridor pipeline that will transport crude oil from the Appomattox host to an existing offshore structure in the South Pass area and then connect onshore through an existing pipeline.

Last year in the Gulf of Mexico, Shell started production from the Mars B development, through the new Olympus TLP, and from the Cardamom subsea tie-back to the Auger platform. Shell is also currently developing the Stones project, which is expected to produce approximately 50,000 boe per day.

Shell discovered Appomattox in 2010 and Vicksburg in 2013.
The Appomattox development host will consist of a semi-submersible, four-column production host platform, a subsea system featuring six drill centres, 15 producing wells, and five water injection wells.
The Appomattox project is located 80 miles offshore (129 kilometres) from the nearest shoreline in Louisiana, in approximately 7,200 feet (2,195 metres) of water.
In addition to serving the Appomattox host, the upsized Mattox Pipeline will have pre-installed subsea connection points, which will allow for future interconnections.
Gettysburg is owned by Shell (80%, operator) and Nexen Petroleum Offshore U.S.A. Inc. (20%).
Rydberg is owned by Shell (57.2%, operator), Ecopetrol America Inc. (28.5%), and Nexen Petroleum Offshore U.S.A. Inc. (14.3%).

Opening Speech By HE Dr. Mohammed Bin Saleh Al-Sada, Qatar’s Minister of Energy and Industry and Alternate President of the OPEC Conference

Excellencies, ladies and gentlemen,

Let me begin by welcoming you all to Vienna for the 167th Meeting of the OPEC Conference.

I would like to extend special welcomes to His Excellency Dr. Salah Khebri, Algeria’s Minister of Energy, and His Excellency Mr. Asdrúbal Chávez, the People’s Minister of Petroleum and Mining of Venezuela, who are attending a Meeting of the OPEC Conference for the first time as Heads of their country’s respective Delegations.

On behalf of all the Heads of Delegation and the OPEC Secretariat, I would also like to thank their predecessors in office – His Excellency Mr. Rafael Ramirez of Venezuela and His Excellency Dr. Youcef Yousfi from Algeria. Both provided dedicated and loyal service to their countries, as well as valuable contributions to the work of the Organization. We wish them every success in their future endeavours.

In addition, I would also like to extend a warm welcome to Dr. Jamila Shu’ara, Permanent Secretary at Nigeria’s Ministry of Special Duties and Inter-Governmental Affairs, who has been appointed as her country’s Head of Delegation for this Conference.

Excellencies, ladies and gentlemen,

Since the last Meeting of the Conference in late November of last year, we have witnessed much volatility in the global oil industry.

Prices fell from around $77 per barrel at the time of the Meeting to around $45 by mid-January, although they have recovered since.

It should be stressed that we do not believe that actual market fundamentals warranted the almost 60 per cent fall in prices that the market witnessed between June 2014 and January 2015. It is evident that speculators played some role in this fall.

The market has continued to see oversupply, and additionally, crude stocks have witnessed a significant build. US commercial crude oil stocks in April 2015 were 24 per cent higher than the same time last year, although they have fallen back a little in recent weeks.

As a result of the downward price trend, a number of projects have been cancelled or put on hold, and investment plans have been revised. Rig counts have fallen dramatically, and many industry workers have been laid off.

The current environment is clearly challenging – and has become a test for both oil producers and hydrocarbon investors.

At OPEC, we continue to monitor the situation, and are looking at ways and means to address the challenges ahead. And for 2015, we are focused on how we see the market evolving – particularly over the second half of the year.

The global economic environment shows some encouraging signs, although the outlook is patchy. Global growth for 2015 is forecast at 3.3 per cent, the same level as in 2014.

World oil demand in 2015 is forecast to grow by around 1.2 million barrels per day, higher than the figure of 1 million barrels per day in 2014. The majority of this net oil demand growth will continue to be seen in non-OECD countries.

In terms of oil supply, non-OPEC countries will see much lower levels of production growth in 2015 than in previous years. In fact, expected non-OPEC supply growth this year is just below 700,000 barrels per day, which is only around one-third of the growth witnessed in 2014. In North America, US tight oil and Canadian oil sands are anticipated to see lower growth following recent strong declines in rig counts.

All this points to a more balanced market in the second half of 2015, with current estimates for OPEC crude demand at 30.3 million barrels per day in the third quarter, and 30.7 million barrels per day in the fourth quarter.

Of course, stability will be of paramount importance for the industry in the years ahead, given the need for investments in capacity expansion to make sure the world has enough supply to meet expected future demand.

Excellencies, ladies and gentlemen,

At today’s meeting, OPEC will discuss developments that have taken place over the last six months, and consider the market outlook for the remainder of 2015.

As always, OPEC’s focus will be on enhancing market stability in the interests of all parties and in support of steady global economic growth. However, we should remember that this is not the responsibility of OPEC alone. If we all wish to benefit from a more orderly oil market, then we should all be prepared to contribute to its stability. In support of this, dialogue and cooperation are essential.

It has been encouraging to see more of this take place among OPEC and non-OPEC countries in 2015. This includes a technical meeting between OPEC and non-OPEC countries that took place at the OPEC Secretariat last month.

These developments can only be beneficial. We at OPEC are always willing to talk to other energy stakeholders. And we hope these recent advancements continue.

OPEC also remains committed to participating in other international dialogue and cooperation efforts, and engaging further with other stakeholders.

It is essential for everyone to seek to enhance cooperation efforts in the interest of attaining and ensuring stability in the oil market. This will help us all to better deal with the change and uncertainty that cyclical events in our industry bring. And it will also help us to facilitate and support the development of some of the vast project opportunities that we can expect from the industry in the years and decades ahead.

Thank you for your attention.

The 167th Meeting of the Conference of the Organization of the Petroleum Exporting Countries (OPEC) was held in Vienna, Austria, on Friday, 5th June 2015 under the Chairmanship of its Alternate President, HE Dr. Mohammed Bin Saleh Al Sada, Minister of Energy and Industry of Qatar and Head of its Delegation.

The Conference congratulated HE Dr. Salah Khebri on his appointment as Algeria’s Minister of Energy and HE Asdrúbal Chávez as the People’s Minister of Petroleum and Mining of Venezuela, and thanked their predecessors in office, HE Dr. Youcef Yousfi and HE Rafael Ramirez, for their dedicated and valuable contribution to the work of the Organization.

A welcome was also extended to Dr. Jamila Shu’ara, Permanent Secretary of Nigeria’s Ministry of Special Duties and Inter-Governmental Affairs, who was heading Nigeria’s Delegation for this Conference by appointment of Nigeria’s newly inaugurated President, HE Muhammadu Buhari, Head of State and Commander-in-Chief of the Armed Forces.

The Conference considered the Secretary General’s report and the report of the Economic Commission Board. It also exchanged views on other issues, in particular, preparations for the COP21/CMP 11 in Paris; the status of the UN post-2015 development agenda; the Organization’s ongoing cooperation with the International Energy Forum and the International Energy Agency; the ongoing collaboration with various international organizations within the G-20; as well as OPEC’s ongoing energy dialogue with the European Union, the Russian Federation, and others.

Agreeing on the importance of maintaining dialogue with other oil-producing countries, the Conference affirmed the technical meeting of oil and economic experts from both OPEC and Non-OPEC countries, held on 12th May 2015, in Vienna. The meeting had discussed, inter alia, oil market fundamentals and the global economy, with participants concluding that market stability remains a common objective for all producers, attainable through cooperative effort. Participants agreed to convene again before the end of the year.

The Conference reviewed the oil market outlook, as presented by the Secretary General, in particular the demand and supply projections, and the outlook for the second half of 2015. The Conference noted that the global economic recovery had stabilized, albeit with growth at moderate levels. In the current year, GDP growth is projected at 3.3%, with this expected to be at a slightly higher level of 3.5% for 2016.

Recording its continued concern over market volatility and the challenges faced by the global oil industry as a whole, the Conference observed, further, that the sharp decline in oil prices witnessed at the end of last year and the start of this year – caused by oversupply and speculation – had now abated, with prices moving slightly higher in recent months.

The Conference noted that world oil demand is forecast to increase in the second half of 2015 and in 2016, with growth driven by non-OECD countries. On the supply side, non-OPEC growth in 2015 is expected to be just below 700,000 barrels per day, which is only around one-third of the growth witnessed in 2014.

The Conference also observed the recent build in stocks and the surplus of oil in both OECD and non-OECD countries, which has resulted in stock levels that lie well above the five-year average in terms of absolute volumes, indicating that the market is comfortably supplied.

In view of the foregoing, the Conference resolved to maintain the 30 mb/d ceiling and urged Member Countries to adhere to it. Member Countries, in agreeing to this decision, confirmed their commitment to a stable and balanced oil market, with prices at levels that are suitable for both producers and consumers. Nonetheless, the Conference stressed that, given the current market uncertainties, the Secretariat should continue to closely monitor developments in the coming months.

The Conference was briefed by the Head of Delegation of Ecuador on the ongoing arbitration process brought against the Republic of Ecuador by Chevron Corporation and Texaco Petroleum Company. The Conference expressed its support to the Republic of Ecuador in the exercise of its sovereign rights over its natural resources, in accordance with international law, a right documented in the Algiers, Caracas and Riyadh Summit Declarations of OPEC Heads of State and Government. Furthermore, the Conference called for amicable negotiations and a good faith resolution for the dispute, within a framework of utmost respect for the sovereignty of the Republic of Ecuador, and without resorting to ex parte pre-judgement measures that would make impartial solutions more difficult.

The Conference appointed Eng. Iván Orellana, Venezuelan Governor for OPEC, as Chairman of the Board of Governors until 31st December 2015, and Eng. Mohamed Hamel, Algerian Governor for OPEC, as Alternate Chairman for the same period.

The Conference decided that its next Ordinary Meeting will convene on Friday, 4th December, 2015, in Vienna, Austria.

Finally, the Conference again expressed its appreciation to the Government and to the people of the Republic of Austria, as well as the authorities of the City of Vienna, for their warm hospitality and the excellent arrangements made for the Conference Meeting and for the 6th OPEC International Seminar.

Speaking at the Australian Petroleum Production and Exploration (APPEA) conference, BHP Billiton President Petroleum and Potash, Tim Cutt, today discussed the petroleum industry outlook and new sources of oil supply needed to meet future demand.

“The challenge will be meeting the demand for oil at a competitive cost by the end of the next decade. Additional supply will be required from new sources around the globe,” he said.

“The question of where future supply will come from is very important, especially considering the declining trend of oil discoveries in recent decades.”

Mr Cutt highlighted continuous productivity improvement would underpin cost-effective sources of energy and reaffirmed BHP Billiton’s commitment to operational excellence.

“The short-term behaviour of the market is outside of our control, but our own operational behaviour is something we can control.

“BHP Billiton has a strong focus on productivity and our Petroleum business is no exception. In our shale operations for example, we have lowered our drilling expenditure by 50 per cent,” he said.

The Company recently announced that as a result of improved capital efficiency, Onshore US drilling and development expenditure would fall to US$1.5 billion in the 2016 financial year from US$3.4 billion in 2015.

Further, Mr Cutt spoke to examples of the team’s strong operating performance.

“In our conventional business we have the best average drill times in the Gulf of Mexico and we continue to safely pursue further improvements,” he said.

“We have also reduced the time to load and analyse seismic data by 80 per cent over the past 12 months. This is critical as we move to interpret the largest proprietary seismic survey ever undertaken by an independent oil company, covering over 21,000 square kilometres in the deepwater of Trinidad and Tobago.”

In conclusion, Mr Cutt said companies that could respond to short-term market conditions and still remain focused on long-term priorities would continue to thrive in times of volatility.

“As we’ve proven time and again, it is when we face challenges that we achieve great innovation and growth,” he said.

WASHINGTON — The U.S. Department of Labor — in partnership with the Department of Commerce, the Small Business Administration and the Appalachian Regional Commission — today announced the availability of up to $35.5 million to help communities and workers successfully adapt to changes in the coal industry and power sector.

The grant is being made available as part of the Partnerships for Opportunity and Workforce and Economic Revitalization initiative — known as POWER — led by the Commerce Department’s Economic Development Agency.

“Recent changes in the energy economy have had a profound impact on Appalachian families and communities that have been sustained by the coal industry for generations,” said U.S. Secretary of Labor Thomas E. Perez announcing the grant at the Shaping Our Appalachian Region Strategy Summit 2015, in Pikeville, Ky. “We have a moral imperative to work together to ensure we all succeed. That’s what the POWER initiative is all about — developing truly cohesive relationships at the federal, state and local level to create real economic opportunities for families throughout the region.”

Opened today, the Federal Funding Opportunity outlines the POWER Initiative implementation grant priorities, evaluation factors, and application guidance for the up to $20 million from Department of Labor, up to $12.5 million in funding from the Department of Commerce, up to $2.5 million from the Small Business Administration, and up to $500,000 from Appalachian Regional Commission.

Grants will take a comprehensive approach towards economic diversification and worker advancement in implementing their economic development strategic plans. Experience shows that projects which integrate both economic development and workforce development solutions with broad community partnerships are more successful than when independent solutions are pursued.

Funds will be granted competitively to partnerships of regionally-driven economic development and workforce development organizations in impacted coal communities. Grants will help recipients build economic resilience, industry diversification, and promote new job creation opportunities.

Although resources from multiple federal agencies are made available through this opportunity, applicants need to apply separately for each funding source in which they are interested. Applications for DOC, SBA and ARC funding must be received by July 10, 2015. DOL funding applications will be accepted on a rolling basis.

MEXICO CITY & NEW YORK– KKR, a leading global investment firm, today announced a new joint venture with Monterra Energy (“Monterra”) to pursue investments in the midstream energy sector in Mexico. Under the agreement, KKR is making an equity commitment to Monterra for the development of new projects and acquisition of midstream assets and businesses. Financial terms and details of the partnership were not disclosed.

Monterra was founded in 2014 by Arturo Vivar and Michael A. Williams to pursue select investment opportunities in the midstream sector in Mexico. With offices in Houston, Texas and Mexico City, Monterra has a proven management team and highly experienced, local advisory board members with success across North and South America in the areas of upstream, midstream and oilfield services.

“Monterra is excited to partner with KKR,” said Arturo Vivar, CEO of Monterra. “Together with KKR and its investment expertise, Monterra will provide a differentiated set of capabilities that can be applied to the development and operation of strategic midstream projects and assets in Mexico.”

Tudor, Pickering, Holt and Co. estimates that Mexico should attract approximately $50 billion and $13 billion in capital expenditures spending for pipeline infrastructure and power generation, respectively, over the next five years.

Monterra intends to own, develop, build and operate midstream infrastructure in Mexico through both new (greenfield) and existing (brownfield) projects and assets. Primary areas of focus include terminaling and storage infrastructure for refined products, crude oil and natural gas liquids (NGLs) as well as pipeline and rail logistics assets to transport and handle refined products, crude oil and NGLs. Other areas of interest may include natural gas transportation and storage and power generation.

Commenting on the partnership, Marc Lipschultz, Global Head of KKR’s Energy and Infrastructure business, said: “This partnership is about backing a strong team with decades of experience in the energy sector and in Latin America to deliver superior solutions to Mexico’s growing energy sector. We look forward to working with the Monterra team.”

Jorge Fergie, KKR’s Head of Brazil and Latin America, added: “We are very optimistic when it comes to the macroeconomic landscape in Mexico, and we continue to believe the country has significant opportunities – in energy and beyond – for long term investment.”

KKR has a depth of experience investing in energy and in businesses that operate in Mexico. KKR’s contributions to the joint venture will be funded primarily from KKR’s North America XI Fund. KKR’s Global Energy & Infrastructure business invests across the entire energy supply chain and the firm manages approximately $10 billion in energy and infrastructure related assets. The Firm also has a global private equity portfolio that includes multiple companies that together employ over 10,000 employees in Mexico, including Aceco TI, Capsugel, First Data, Laureate Education, Lake Region Medical, Nielsen, and PRA Health Sciences.

About KKR
KKR is a leading global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world‐class people, and driving growth and value creation at the asset level. KKR invests its own capital alongside its partners’ capital and brings opportunities to others through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. L.P. (NYSE:KKR), please visit KKR’s website at www.kkr.com.

DOHA, Qatar -ExxonMobil Research Qatar (EMRQ) today announced that ExxonMobil has awarded a global commercial license for Immersive 3D Operator Training Simulator technology to co-developer EON Reality Inc.

The innovative technology incorporates ultra-realistic, multi-angle immersive virtual reality for training process operators and engineers in oil and gas production, processing and transportation facilities. The technology enables effective training to take place in a safe and controlled environment.

The new technology also supports the development of simulators that combine dynamic process training and fully functional 3D models. These complex models include interactive 3D objects such as rotating valves, push-buttons and active gauges; natural gestures and voice commands; and enhanced 4D sensory conditions including tactile feedback, odors, vibration and wind simulation.

The dynamic process simulator uses actual plant operating conditions to create realistic training scenarios for critical procedure execution, upset condition training, and emergency response training. Scenarios also can be created for workforce development, competency assurance, project commissioning support, new hire orientation, and more efficient turnaround/shutdown planning.

A full-scale simulator of an actual gas processing facility in Qatar has been operational since 2013, providing realistic training on more than 300 interactive control devices in six gas processing units.

“The Immersive 3D Operator Training Simulator provides a realistic 3D virtual environment that is a very close replica of an operating plant,” said Sara Ortwein, president of ExxonMobil Upstream Research Company. “These simulators are highly effective in training workers on how to prevent incidents, while teaching them to respond quickly and appropriately should any occur. This technology, developed in cooperation with EON Reality, is another example of how ExxonMobil continues to support research and safety, health and environmental protection across its global operations.”

“The Immersive 3D Operator Training Simulator will change how operators and plant crews train on existing facilities and even before a facility is operational,” said Mats W. Johansson, CEO of EON Reality. “Working with ExxonMobil, we have created an immersive training tool to ensure that entire plant operation teams have practiced actual procedures together on a virtual facsimile of their plant. This truly is a flight simulator for plant operations.”

The Immersive 3D Operator Training Simulator technology is the latest demonstration of how scientists and researchers at EMRQ are committed to helping Qatar and other global ExxonMobil partners supply the world with much needed energy, while improving environmental and operational performance of production facilities.

EMRQ opened its facility at Qatar Science & Technology Park in 2009 to conduct research in areas of common interest to the State of Qatar and ExxonMobil. Scientists and researchers at EMRQ continue to advance projects in the areas of environmental management, water reuse, LNG safety and coastal geology.

About ExxonMobil Research Qatar

ExxonMobil established ExxonMobil Research Qatar (EMRQ) as an anchor tenant at Qatar Science & Technology Park (QSTP) in Education City, Qatar. ExxonMobil Qatar Inc. is a subsidiary of Exxon Mobil Corporation and is the interface point within Qatar for all ExxonMobil affiliated activities. To learn more, visit exxonmobil.com.qa or www.إكسون-موبيل-قطر.com.

About ExxonMobil
ExxonMobil, the largest publicly traded international oil and gas company, uses technology and innovation to help meet the world’s growing energy needs. ExxonMobil holds an industry-leading inventory of resources, is the largest refiner and marketer of petroleum products, and its chemical company is one of the largest in the world. The term “ExxonMobil” is used for convenience and may include Exxon Mobil Corporation (NYSE:XOM) or any affiliates it directly or indirectly stewards.

About EON Reality
EON Reality, Inc. is the world leader in Virtual Reality based knowledge transfer for industry, education, and edutainment. EON Reality provides state-of-the-art 3D display technology for immersive and stereoscopic viewing, from portable tablet PCs and glass free stereo display systems to curved-screen and immersive rooms consisting of multi-channel projection walls. The technology foundation for developing interactive digital content includes importing the most common 3D animation formats into EON’s authoring software and creating modules and applications that can be viewed on various display systems. EON’s technology solutions enable all organizations to more effectively visually communicate, collaborate and accelerate knowledge transfer. For further information, visit www.eonreality.com.

After a comprehensive review and consideration of comments received from the public, stakeholders, and Federal and state partner agencies and tribes, the Bureau of Ocean Energy Management (BOEM) today conditionally approved Shell Gulf of Mexico, Inc.’s revised multi-year Exploration Plan (EP) for the Chukchi Sea.

Among the conditions of approval is the requirement that Shell obtain all necessary permits from other state and federal agencies, including permits to drill from the Bureau of Safety and Environmental Enforcement (BSEE) and appropriate authorizations under the Marine Mammal Protection Act. Another condition of approval prevents Shell from commencing drilling operations until all Biological Opinions under the Endangered Species Act have been issued and requires all operations under the plan comply with the terms and conditions included in those Biological Opinions.

“We have taken a thoughtful approach to carefully considering potential exploration in the Chukchi Sea, recognizing the significant environmental, social and ecological resources in the region and establishing high standards for the protection of this critical ecosystem, our Arctic communities, and the subsistence needs and cultural traditions of Alaska Natives,” said BOEM Director Abigail Ross Hopper. “As we move forward, any offshore exploratory activities will continue to be subject to rigorous safety standards.”

The EP describes all exploration activities planned by the operator, including the timing of these activities, information concerning drilling vessels, the location of each planned well, and actions to be taken to meet important safety and environmental standards and to protect workers, resources, wildlife and access to subsistence use areas. In accordance with the National Environmental Policy Act, the review of the EP included the preparation of an Environmental Assessment and a subsequent Finding of No Significant Impact.

“The review of this Exploration Plan was a team effort,” said James Kendall, BOEM Alaska Regional Director. “We’d like to thank the experts in our cooperating agencies, the tribal government representatives who took time out from their busy schedules to do government-to-government consultations and of course the many members of the public and stakeholder organizations who provided us with valuable comments during the review process.”

Shell’s revised EP proposes the drilling of up to six wells within the Burger Prospect, located in approximately 140 feet of water about 70 miles northwest of the village of Wainwright. Shell will conduct its operations using the drillship M/V Noble Discoverer and the semi-submersible drilling unit Transocean Polar Pioneer, with each vessel providing relief-well capability for the other. The two drilling units and their supporting vessels will depart the Chukchi Sea at the conclusion of each exploration drilling season.

The Department of the Interior is currently undertaking an ambitious reform agenda to strengthen, update and modernize Outer Continental Shelf (OCS) energy regulations. In April the Department announced proposed regulations to better protect human lives and the environment from oil spills. The proposed measures include more stringent design requirements and operational procedures for critical well control equipment used in OCS oil and gas operations.

The proposed well control rule, which is open for public comment, addresses the range of systems and equipment related to well control operations. The measures are designed to improve equipment reliability, building upon enhanced industry standards for blowout preventers and blowout prevention technologies. The rule also includes reforms in well design, well control, casing, cementing, real-time well monitoring and subsea containment.

Additionally, the Department released proposed Arctic standards in February that will ensure that exploration of the Alaska OCS is subject to strong standards specifically tailored to the region’s challenging and unforgiving conditions. The proposed rule, which is open to public comment until May 27, 2015, includes many required measures that have been adopted previously as conditions on Shell’s Arctic operations and which BOEM also adopted in its approval of this revised EP. Those standards build upon existing Arctic-specific standards as well as experience with previous operations offshore Alaska.

A copy of BOEM’s conditional approval letter, the approved EP, the Environmental Assessment and the Finding of No Significant Impact are available at: www.boem.gov/shell-chukchi/

The Bureau of Ocean Energy Management (BOEM) promotes energy independence, environmental protection and economic development through responsible, science-based management of offshore conventional and renewable energy resources.

HOUSTON — GE (NYSE: GE) today announced a new water treatment technology for the upstream oil and gas market. GE’s new seawater sulfate removal (SWSR) nanofiltration membrane eliminates almost all sulfate from injection water in offshore oil production.

GE’s SWSR membrane removes sulfate to drastically reduce scale and corrosion in the injection well, which can reduce oil recovery and plug the well. It also has exceptional fouling resistance due to its three-layer membrane design and smooth surface.

The new SWSR series is an advancement of GE’s DK series nanofiltration membrane and provides a high transmission of sodium chloride into the permeate water to minimize operating pressures. It offers a physical barrier for any suspended particles including bacteria, pyrogens and colloids. Additionally, the new membrane will help prevent strontium and barium sulfate scale in injection wells and will better mitigate well souring by reducing sulfate.

“We put our 30 years of experience in nanofiltration membrane manufacturing to use in creating our latest innovation for the upstream oil and gas industry. On oilrigs, oil producers use injection water to flood the field and force oil to the producing wells, but if the water is of poor quality, it causes scale and corrosion that plugs and sours the field. GE’s new seawater sulfate removal membranes provide excellent sulfate removal and have superior fouling resistance,” said Yuvbir Singh, general manager, engineered systems—water and process technologies for GE Power & Water.

The new SWSR membrane also can be used in conjunction with GE’s existing reverse osmosis membranes in order to provide water for low salinity flooding, polymer flooding and other forms of enhanced oil recovery.

This news, released at the 2015 Offshore Technology Conference, exemplifies GE’s industry-leading technology solutions for the offshore oil and gas industry. Its commitment to operational excellence, local partnerships, capabilities building and sustainable technology solutions is designed to provide maximum value to customers, especially during challenging times. Please visit the GE OTC landing page for videos, live updates, expert presentations and innovation deep dives.

About GE
GE (NYSE: GE) imagines things others don’t, builds things others can’t and delivers outcomes that make the world work better. GE brings together the physical and digital worlds in ways no other company can. In its labs and factories and on the ground with customers, GE is inventing the next industrial era to move, power, build and cure the world. www.ge.com

About GE Power & Water
GE Power & Water provides customers with a broad array of power generation, energy delivery and water process technologies to solve their challenges locally. Power & Water works in all areas of the energy industry including renewable resources such as wind and solar; biogas and alternative fuels; and coal, oil, natural gas and nuclear energy. The business also develops advanced technologies to help solve the world’s most complex challenges related to water availability and quality. Power & Water’s six business units include Distributed Power, Nuclear Energy, Power Generation Products, Power Generation Services, Renewable Energy and Water & Process Technologies. Headquartered in Schenectady, N.Y., Power & Water is GE’s largest industrial business.

HOUSTON; – Despite current lower crude oil prices, most companies in the oil and gas industry plan to invest the same amount or more in digital technologies, according to a new survey by Accenture (NYSE: ACN) and Microsoft Corp. released today at the Microsoft Global Energy Forum 2015. Survey respondents included international oil companies (IOCs), national oil companies (NOCs), independents and oilfield services firms.

In the near term during the current low crude price cycle, approximately three out of five respondents said they plan to invest the same amount (32 percent) or more or significantly more (25 percent) in digital technologies.

Over the next three to five years, approximately 80 percent of the oil and gas industry professionals surveyed said they plan to invest the same amount (18 percent), more (44 percent) or significantly more (18 percent) in digital. Respondents from IOCs and NOCs were the most bullish in the same time period.

Mobility, infrastructure and collaboration technologies currently represent the biggest investment areas across the oil and gas industry. Over the next three to five years, investments are expected to increase in big data and the Industrial Internet of Things (IIoT) and automation.

The key for continued digital investment in the upstream sector is improving operational efficiency, rather than simply reducing cost, as faster, more informed decision making and a more efficient workforce were seen as the key areas where digital technologies are adding value and creating business efficiencies. However, to get the most value from digital technologies, oil and gas industry leaders say they need to overcome several barriers, with workflows and processes that create bottlenecks and physical and cybersecurity issues topping the list.

Approximately 89 percent noted that leveraging more analytics capabilities would add more business value, 90 percent felt more mobile technologies in the field would increase value, and 86 percent said that leveraging more IIoT and automation would boost value. Collaboration technologies were highlighted as an area that could be increasingly used in upstream to create a more efficient workforce and to make faster decisions.

“Oil and gas industry leaders continue to look to digital technologies as a way to address some of the key challenges the industry faces today in this lower crude oil price cycle,” said Rich Holsman, global head of digital in Accenture’s energy industry group. “Making the most of big data, IIoT and automation are indeed the next big opportunities for energy and oilfield services companies, and many are already starting work in these areas. They are increasing investments in enabling people and assets, with a growing emphasis on developing data supply chains to support analytics projects that can improve efficiencies, manage cost and provide a competitive edge. Our survey tells us that companies who do not continue to invest in digital technologies risk being left behind.”

“Mobility and other digital technologies are gaining traction as oil and gas players learn to use these technologies to make faster and better decisions from the field to the front office,” said Craig Hodges, general manager of the Gulf Coast District at Microsoft. “Predictive capabilities to optimize maintenance and maximize production can create value, and digital technologies also support better use of scarce resources and talent, management of more complex work, cost reduction efforts and innovation to remain competitive and continue operating safely.”

The Microsoft and Accenture “Oil and Gas Digital and Technology Trends Survey 2015,” conducted by PennEnergy Research in partnership with the Oil & Gas Journal, surveyed industry professionals worldwide, including engineers, geologists and mid-level and executive management from the upstream, midstream and downstream segments.

About Accenture
Accenture is a global management consulting, technology services and outsourcing company, with more than 323,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$30.0 billion for the fiscal year ended Aug. 31, 2014. Its home page is www.accenture.com.

Accenture Digital, comprised of Accenture Analytics, Accenture Interactive and Accenture Mobility, offers a comprehensive portfolio of business and technology services across digital marketing, mobility and analytics. Learn more about Accenture Digital at www.accenture.com/digital.

About Microsoft
Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services, devices and solutions that help people and businesses realize their full potential.

HOUSTON— At next week’s 2015 Offshore Technology Conference, GE (NYSE: GE) will demonstrate how it optimizes its cross-industry portfolio to provide game-changing value for the offshore oil and gas industry.

“The key to maximizing value in this price-challenged environment lies in providing cutting-edge solutions quickly, and delivering cost savings and operational efficiency for our customers’ existing and future operations,” said Lorenzo Simonelli, President & CEO of GE Oil & Gas. “It is clear that the industry has a great opportunity to enter a new era in the way it works. Taking the best technology, integrating systems through predictive software, and supporting assets through industry-leading thinking and on-the-ground-support must be viewed as one comprehensive strategy to stay competitive in the offshore market.”

GE is answering the offshore industry’s toughest challenges by providing its customers a one-stop shop to access industry-leading technical knowledge. This “GE Store” draws on innovation, global technologies and expertise from across the company in order to locate and accelerate development of advanced cross-industry technologies, tools and ideas. When offshore customers do business with GE, they are tapping into the full breadth of technological expertise, experience and thinking from over 50,000 experts across the whole company. Because of this, GE can bring innovative solutions, built on proven technologies, to the market to deliver for its customers faster and more efficiently.

“Our newly created GE Marine vertical allows us to combine the commercial and technical expertise across multiple GE businesses into one global infrastructure close to where our customers operate,” Mark Begor, President & CEO of GE Energy Management added. “We are excited about the opportunity to provide improved operating performance to our customers in the offshore industry by leveraging the GE store and its ability to tap the best brainpower and technology from across GE. The GE store enables us to provide innovative solutions from our Power Conversion business that power, propel and position critical marine applications.”

Given the cost constraints the industry is facing, operators are looking to get more from their assets. Capital expenditure in the sector is expected to reduce by $30bn this year alone (1). However, the challenges remain the same, with operators focusing on reducing downtime and increasing productivity.

GE is committed to supporting its customers in responding to these requirements during this CAPEX constrained era. Many of the products developed in the GE store do just this. At OTC, GE will showcase and provide technological deep dives into the following solutions and new partnerships to demonstrate the significant value GE can deliver to the offshore industry:

• SeaStream™ Insight: At the forefront of GE’s Industrial Internet, SeaStream™ Insight is the latest innovation in offshore remote monitoring and asset support. Offering customers total visualization, service and management of their monitored assets and operations, it addresses the key challenges of the offshore industry, helping to maximize customer revenue, productivity and efficiency through analytics based operations.

• InspectionWorks Connect: GE Measurement & Control will offer live demonstrations of InspectionWorks Connect, a remote collaboration software platform for asset reliability inspections. InspectionWorks Connect allows nondestructive testing inspectors to access live video and data in real time, which can shorten the duration of large, complex inspection jobs like maintenance turnarounds and equipment commissioning.

• Diesel Engine Innovation: GE’s family of medium-speed marine diesel engines includes 12- and 16-cylinder V250 models and 6- and 8-cylinder L250 models that range from 1.3 MW to 4.7 MW. GE offers an innovative non-Selective Catalytic Reduction (SCR) technology for its L250 and V250 series diesel engines that requires no urea-based after-treatment. Eight years in the making, this technology reduces key emissions by more than 70% and enables in-engine compliance with EPA Tier 4 and IMO Tier III emissions standards.

• HPRC (High Pressure Ratio Compression): Technology based on an innovative architecture that combines unshrouded and shrouded impellers on a single high-speed shaft to achieve pressure ratios and efficiency levels higher than other available technologies. As result of the increased head per stage, HPRC units have a shorter bearing span that reduces the number of casings required. Applications that would typically require multiple compressor bodies will only need one with HPRC. Individual HPRC units are already smaller and lighter than traditional compressors, and the elimination of units per train is another giant improvement in overall plant footprint, reliability, availability and weight.

• GE’s Water & Process Technologies offers broad solutions for upstream chemicals, sulfate removal and enhanced oil recovery including pretreatment filters, NF membranes, upstream chemicals, remote monitoring & diagnostics, pre-engineered solutions, and more.

For show interviews, video and live updates, visit the landing page at www.geoilandgas.com/otc. You may also visit GE’s booth for a technology tour at # 3163.
About GE
GE (NYSE: GE) works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, health and home, transportation and finance. Building, powering, moving and curing the world. Not just imagining. Doing. GE works. For more information, visit the company’s website at www.ge.com.

About GE Oil & Gas
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WASHINGTON – Today, the Environmental Protection Agency (EPA) and Department of Justice (DOJ) announced that ExxonMobil Pipeline Company and Mobil Pipe Line Company (ExxonMobil) have agreed to pay civil penalties, fund an environmental project and implement corrective measures to resolve alleged violations of the Clean Water Act and state environmental laws stemming from a 2013 crude oil spill from the Pegasus Pipeline in Mayflower, Arkansas.

Under a consent decree lodged today in federal court, ExxonMobil will pay $3.19 million in federal civil penalties and take steps to address pipeline safety issues and oil spill response capability. In addition, ExxonMobil will pay $1 million in state civil penalties, $600,000 for a project to improve water quality at Lake Conway, and $280,000 to the Arkansas Attorney General’s Office for the state’s litigation costs.

The oil spill occurred on March 29, 2013 after the Pegasus Pipeline, carrying Canadian heavy crude oil from Illinois to Texas, ruptured in the Northwoods neighborhood of Mayflower, Arkansas. Oil flowed through the neighborhood, contaminating homes and yards, before entering a nearby creek, wetlands and a cove of Lake Conway. Some residents were ordered to evacuate their homes after the spill and remained displaced for an extended period of time. The spill volume has been estimated at approximately 3,190 barrels, or 134,000 gallons.

“Oil spills like this one in Mayflower, Arkansas have real and lasting impacts on clean water for communities,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “Companies need to take the necessary precautions to make sure oil is transported safely and responsibly. This settlement puts in place essential pipeline safety and response measures that are important to make this industry safer for communities.”

“This settlement holds ExxonMobil accountable for this very serious oil spill and its disastrous impact on the Mayflower community and environment,” said John C. Cruden, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “This agreement is also an excellent example of federal and state cooperation that will benefit public health and the environment for years to come, and most importantly prevent future disasters by requiring better pipeline safety and response measures.”

“The U.S. and the state of Arkansas have worked together since the first barrel of oil was spilled in 2013 to provide relief and assistance to the residents of Mayflower and Faulkner County and to hold ExxonMobil accountable for this serious spill,” said U.S. Attorney Christopher R. Thyer for the Eastern District of Arkansas. “This settlement does both. In addition to paying significant civil penalties, ExxonMobil will provide money for safety and water-quality projects to help ensure that the residents of the affected area never have to go through an ordeal like this again. This resolution to a terrible disaster is a testament to the partnership between our federal and state governments to protect the citizens of Arkansas.”

The penalties owed by ExxonMobil under the consent decree are in addition to the money that the company has already paid to reimburse federal and State response efforts, and to comply with orders and directives issued by the Pipeline and Hazardous Materials Safety Administration (PHMSA). The segment of the Pegasus Pipeline that includes the rupture site has not been used since the March 2013 spill, and under the terms of the settlement agreement, ExxonMobil must comply with all PHMSA corrective action requirements before returning the pipeline to operation. The consent decree also requires ExxonMobil to take other important pipeline safety corrective action to help prevent future ruptures and improve its spill response capabilities by providing additional training to its oil spill first responders. In addition, ExxonMobil is required to establish caches of spill response equipment and supplies at three strategically-chosen sites along the pipeline, including one location near Mayflower in Faulkner County, Arkansas.

The Clean Water Act makes it unlawful to discharge oil or hazardous substances into or upon the navigable waters of the United States or adjoining shorelines in quantities that may be harmful to the environment or public health. The penalty paid to the United States for this spill will be deposited in the federal Oil Spill Liability Trust Fund managed by the National Pollution Funds Center. Those funds will be available to pay for federal response activities and to compensate for damages when there is a discharge or substantial threat of discharge of oil or hazardous substances to waters of the United States or adjoining shorelines.

The joint federal and state complaint in the case, filed June 13, 2013 in the U.S. District Court for the Eastern District of Arkansas, alleges that ExxonMobil discharged crude oil in violation of the Clean Water Act. The complaint also asserts state claims for civil penalties for improper storage of hazardous waste generated during the cleanup and for water and air pollution violations pursuant to the Arkansas Water and Air Pollution Control Act and the Arkansas Hazardous Waste Management Act.

The proposed consent decree, lodged in the Eastern District of Arkansas, is subject to a 30-day public comment period and court review and approval. A copy of the consent decree is available on EPA’s website at http://www2.epa.gov/enforcement/exxon-mayflower-clean-water-settlement