ConocoPhillips 1Q net income slides after spin off

ConocoPhillips said its net income decreased in the first quarter after it spun off its Phillips 66 refining unit.
ConocoPhillips spun off Phillips 66, its downstream business, during the second quarter of 2012. It said that business was responsible for about $700 million in income during the first quarter of that year. Excluding results from that business the company said its earnings were about the same as they were a year ago.
ConocoPhillips said its net income fell to $2.14 billion, or $1.73 per share, from $2.94 billion, or $2.27 per share, in the 2012 first quarter. Excluding discontinued operations the company said it earned $1.42 per share.
Total revenue fell 10 percent to $14.65 billion, from $16.08 billion the prior year.
The company is planning to dispose of its interests in business in Algeria and Nigeria businesses and the Kashagan oilfield in the Caspian sea. Those businesses were reported as discontinued operations, and that reduced ConocoPhillips' adjusted earnings by 5 cents per share. It expects $8.5 billion in proceeds from the disposal of those businesses later this year.
The company said total production slipped to 1.6 million barrels of oil equivalent per day, from 1.64 million barrels per day a year ago. Production from continuing operations slipped 2 percent to 1.56 million barrels per day. The company's prices for crude oil fell 5 percent to $105.97 per barrel and liquid natural gas prices dropped 22 percent to $42.95 per barrel.
ConocoPhillips narrowed its production guidance for the year: it now expects to produce an average of 1.49 million to 1.52 million barrels of oil equivalent per day for the year, compared to its previous guidance of 1.48 million to 1.53 million barrels per day. It expects to produce 1.44 million to 1.47 million barrels a day in the second quarter.

Nigerian Navy Inaugurates Website on Crude Oil Theft

Nigerian Navy has inaugurated a new website on crude oil theft and pipeline vandalism in order to create a channel through which information on how to curb the menace would be passed across to the citizenry, relevant stakeholders and concerned authorities.

This was contained in a statement by the Director of Information, Nigerian Navy, Commodore Kabiru Aliyu.

Aliyu said the move was in furtherance of the directive of President Goodluck Jonathan on October 8, 2012 to the Nigerian Navy to ensure that crude oil theft and pipeline vandalism are wiped out from the nation’s maritime environment.

He explained that the website, www.cot.navy.mil.ng provides details relating to exploration, nominations, approvals, movement and trans-shipment of petroleum products as promulgated by relevant authorities.

The Naval spokesman further explained that the website would serves as a platform to share information, exchange ideas with the international community and report suspicious activities.
He said the website would also generate the desired global awareness on the scourge of oil theft and pipeline vandalism.

ExxonMobil Signs Agreement on 500MW Power Plant

Mobil Producing Nigeria Unlimited (MPN), operator of the Nigerian National Petroleum Corporation (NNPC) and MPN Joint Venture, has signed a Seller’s Representative Agreement (SRA) for the Qua Iboe Power Project, located at Mobil’s Qua Iboe terminal in Akwa Ibom State.

The proposed power project includes the construction of a 500megawatt-capacity power plant as well as a 56-kilometre transmission line connecting the plant to the national grid at Ikot Abasi, also in the state.

MPN’s General Manager in charge of Public and Government Affairs, Mr. Paul Arinze, said in a statement that the signing of the SRA was “a critical part of the overall commercial framework that enables MPN to undertake power activities and facilitates the sale of power by MPN to Nigerian Bulk Electricity Trading Plc for itself and on behalf of the NNPC.”

Also speaking on the agreement, the Managing Director of Mobil Producing Nigeria, Mr. Mark Ward, said the project “is a tangible demonstration of MPN’s commitment to Nigeria and supports the president’s priority of providing electricity to the country.”

North-west Zone Rejects PIB

The Kano State Governor, Dr. Rabiu Kwankwaso and his Kaduna State counterpart, Alhaji Mukhtar Yero has rejected the Petroleum Industry Bill (PIB), declaring that if the bill was passed into law, it would further create poverty and insecurity in the North...see details; http://nigeriaenergyintelliegence.blogspot.com/p/the-pib-debate.html

Total to start exploring in offshore Libya

Total is aiming to start offshore exploratory drilling in Libya May for gas, in a further sign the OPEC member's energy industry is returning to normal after the 2011 war.

Speaking at the Libya Oil & Gas Summit in Tripoli, Bernard Avignon, Managing Director of Total Exploration and Production in Libya, said the company was waiting for a drilling rig that was undergoing tests in Croatia. He added the cost of drilling the two exploration wells would be $130 million for this year.

Total, which operates in Libya through the Mabrouk joint venture with the state National Oil Corporation, currently produces 41,000 barrels per day (bpd) of oil at its offshore al-Jurf field and 35,000 bpd at its onshore Mabrouk field. He said Total also wanted to do more seismic studies in the area around the Mabrouk oilfield.

Halliburton posts $18 million 1Q loss

Halliburton says it lost $18 million in the first quarter, pulled down by $637 million in charges related to its role in the 2010 Gulf of Mexico oil spill.

The oil services company's loss amounted to 2 cents per share. That compares with net income of $627 million, or 68 cents per share, a year earlier.

Halliburton, which is in talks to settle claims against it related to the oil spill, said that excluding the charges it posted adjusted earnings of 67 cents per share. That beat the 57 cents that analysts expected.

The Houston company, which provides a variety of services for the petroleum industry, is benefiting from a boom in U.S. oil production, which is at the highest level in more than two decades. At the same time, Halliburton's natural gas business has slowed as drillers slowed production due to falling prices for the fuel.

Halliburton provided cementing services for BP PLC on the failed Macondo well in 2010. The two sides continue to spar over responsibility for the disaster. BP acknowledges it made mistakes that led to the blowout, but the company denies it was grossly negligent and argues Halliburton also must shoulder blame for the catastrophe. Halliburton maintains that BP, as the well's owner, is responsible for the blowout that created the worst offshore oil spill in U.S. history.