1. Saudi Arabian Oil Company is a Saudi Arabian national oil company (Saudi Aramco) - 306.8 billion barrels of oil equivalent (BBOE).
Saudi Basic Industries Corp. (SABIC), the world’s largest petrochemical producer, plans to invest in companies in the U.S and other countries possessing technology to turn shale gas into chemical products.
The amount of natural gas produced from shale is a “game- changer” that is to have a considerable impact on worldwide supplies, Mohamed Al-Mady, chief executive officer of the company known as Sabic, said in the interview in Jubail, Saudi Arabia.
Growth in U.S. shale-gas exploration and production has lowered domestic gas prices and enables producers there to use gas as feedstock. That has put pressure on petrochemical producers in Saudi Arabia that obtain gas for a government- subsidized price of $0.75 per million British thermal units. Gas for December delivery traded at $3.513 per million Btu at 10 a.m. on the New York Mercantile Exchange.
Saudi Arabia is increasing the output of gas to meet local demand for power generation and to feed petrochemical plants. Saudi Arabian Oil Co., or Saudi Aramco, is exploring for shale gas in northern parts of the country, and has started a venture capital company this year to buy stakes in companies with technology aimed at developing the resource.
2. National Iranian Oil Company (NIOC)
- 300.3 BBOE
In mid-October, the European Union introduced a raft of new energy sanctions against Iran, including the ban on the import of natural gas, and added the Iranian Oil Ministry, the National Iranian Oil Company and National Iranian Tanker Company and some 30 other oil and gas companies to the sanctions list.
An EU ban on the import and transport of Iranian oil as well as on providing insurance for ships carrying Iranian oil has been in force since July 1.
Iran's oil exports have also been affected by US financial sanctions in force since June 28, with Washington having given waivers to Tehran's top customers in Asia in return for "significant" cuts in imports of Iranian oil.
A Platts survey of OPEC and oil industry officials earlier on Friday estimated Iranian crude output at 2.72 million b/d in October, a drop of 800,000 b/d since January.
OPEC, using secondary source estimates, pegged Iran's October output at 2.626 million b/d.
In such conditions the only exception that can help Iran to escape financial sanctions is its participation in the Shah Deniz project of the Azerbaijani sector of the Caspian Sea. The US Congress will have to reconsider the situation and provide exceptions from the financial sanctions associated with Iran on further development of Azerbaijan Shah Deniz field, where Iran is one of the shareholders, the report of the influential U.S. Senator Richard Lugar runs.
3. Turkmengaz and Turkmenneft -
212.2 BBOE.
In the opinion of Baymurad Hojamuhammedov, Vice Prime Minister of Turkmenistan, such volume of reserves enables the country to “successfully implement a policy of diversification of export routes”. By 2030 Turkmenistan intends to raise oil production up to 67 mln tons per year and gas production up to 220 bcm per year. Almost half of Turkmenistan’s gas reserves (21 trillion cubic meters) falls to the share of South Iolotan field that Gaffney, Cline & Associates announced to be the second biggest field worldwide in October of this year. The minimal volumes of this field have been estimated at the level of 13 trillion cubic meters.
Trans-Turkmen gas pipeline East-West is under construction. Its length starting from the compressor station Shatlyk (Marysk velayet) till the compressor station Belek (Balkan velayet) will total about 800km with the pipeline diameter will total 1,420mm.
East-West gas pipeline with a carrying capacity of 30 bcm of gas per year will have to combine resources of major fields of the country into a single system so that to regulate gas flowing for export and gas meant for dwelling settlements of the country. The gas pipeline shall become the frame of the gas transportation system under construction for transportation of gas of giant field Galkynysh and other fields of the country.
4. Qatar Petroleum (QP) is a state-owned petroleum company - 150 BBOE.
On 4 December, 2012 Qatar Petroleum (QP) and the World Bank-led Global Gas Flaring Reduction (GGFR) partnership today agreed to extend their cooperation in reducing the flaring of gas associated with oil and gas production as a concrete contribution to improving energy efficiency and mitigating climate change. The Qatar National Development Strategy 2011-2016, for example, sets out as a key objective the halving of flaring between 2008 and 2016. It also mentions the development of a detailed flaring monitoring tool as one of the ten priorities of the environmental strategy up to 2016.
According to satellite estimates, since the year 2000, whilst the oil and gas production in Qatar increased by almost four fold, gas flaring has been halved. Qatar flared nine cubic meters of gas per barrel of oil equivalent (boe) produced in 2000, versus 1.1 m3 per boe in 2011. This was achieved through the implementation of a number of gas flaring reduction projects in various oil fields as well as in the mega gas plants of Ras Laffan.
5. Abu Dhabi National Oil Company (ADNOC) - 133.29 BBOE (November 11, 2012)
Adnoc informed on Sunday it has allocated billions of dollars to several mega projects, some of which are underway while others are in the pipeline.
Adnoc said their investments include the development of Sahil and Shah fields to increase their production capacity so that Sahil can produce 100,000 bpd instead of its current 55,000 bpd, and Shah’s production becomes 70,000 bpd instead of its present 50,000 bpd.
“Likewise, the Jasyoura field is to be developed to accommodate two gas separation lines in a new central plant due to be operational by the end of March 2013,” Adnoc said.
6. Ministry of Oil of Iraq - 130.3 BBOE.
EIA estimates that up to 90-percent of the county remains unexplored due to years of wars and sanctions. Unexplored regions of Iraq could yield some additional 100 billion barrels. Iraq's oil production costs are among the lowest in the world. However, only about 2,000 wells have been drilled in Iraq, compared to about 1 million wells in Texas alone. The reserves in Iraq contain 110 trillion cubic feet of natural gas, and can assist in regional and international security issues.
7. Gazprom Group - 120.319 BBOE.
Gazprom reported that during 11 days of December it increased gas export to foreign countries by 16% (up to 5.54 bcm) during 11 days of December compared to the figures from the same period of last year. According to the results of 11 months and the information of the Central Dispatch Office of FEC, export of Russian gas to Europe reduced by 8% (down to 98.959 bcm). Meanwhile, Alexander Medvedev, Deputy CEO of Gazprom and Head of Gazprom, told journalists early in December that holding would increase gas export in 2013 vs the figures of the present year.
Gazprom said that it plans to maintain gas export to Europe at the rate of 150 bcm in 2012. Medvedev said that this year Gazprom plans to supply a total of 222 bcm of gas to neighbor countries and beyond vs 221.1 bcm of gas registered last year.
8. Kuwait Petroleum Corporation (KPC)
–114.5 BBOE
Kuwait's state-owned petroleum company is close to formation of a $4-billion joint venture with Athabasca Oil Corp. in Alberta's oil patch.
Kuwait Petroleum Corp. has signed a memorandum of understanding for an investment with the Calgary-based firm.
9. Petroleos de Venezuela (PDVSA) -
84.68 BBOE
Petroleos de Venezuela SA, the state oil company, will invest $18 billion this year and expects the similar amount next year, said Eulogio Del Pino, the company’s Vice President of Exploration and Production. PDVSA is producing 3 million barrels a day, including 2.5 million barrels daily in the Orinoco belt, Del Pino told in an interview to Panorama. Venezuela is expecting verdicts soon in some international arbitration cases, Del Pino also said, the Maracaibo-based daily reported.
10. National Company KazMunayGas
- 59 BBOE.
Kazakhstan is on the verge of starting of commercial development of Kashagan field, its the biggest on the Caspian and the most expensive field worldwide (PSA dated November 18, 1997 also includes 11 blocks)
Kashagan oil-gas field was found the most expensive energy project worldwide according to CNN Money. $116 bln has already been invested into the development of the facility that makes it one of the most expensive ones for the last 40 years.
December 2012 – June 2013 is an expected term to commence commercial production at Kashagan. The first phase of this project envisages production of about 370,000 barrels of oil per day with possible growth up to 450,000 barrels. The second phase envisages growth of production up to 375,000 barrels per day at least within the coming three years. Recoverable oil reserves of Kashagan are estimated at 11 bln barrels. Total geological reserves of crude are estimated at 35 bln barrels. The consortium the North Caspian Operating Company (NCOC) operates the development of Kashagan within the framework of the North-Caspian project. The shareholders of the consortium are Agip Caspian Sea B.V. (16.81%), KMG Kashagan B.V. (16.81%), ConocoPhillips North Caspian Ltd. (8.4%), ExxonMobil Kazakhstan Inc. (16.81%), Inpex North Caspian Sea Ltd. (7.56%), Shell Kazakhstan Development B.V. (16.81%) and Total EP Kazakhstan (16.81%).
11. Sonatrach - 38.46 BBOE. Europe’s answer to the U.S. shale boom may lie beneath the Sahara desert.
While environmental regulation and disappointing drilling tests have held back the development of shale gas reserves in Europe, Algeria is using tax breaks to encourage exploration. Pipelines under the Mediterranean to Spain and Italy already link Africa’s largest gas exporter into Europe’s grid. The North African nation is holding talks with Exxon Mobil Corp. (XOM) over shale, Ali Hached, an adviser to Energy and Mines Minister Youcef Yousfi, said in an interview. Eni SpA (ENI), Royal Dutch Shell Plc (RDSA) and Talisman Energy Inc. (TLM) have already signed shale exploration accords with Algeria, which expects tax breaks for gas exploitation and drilling shale to get parliamentary approval within weeks.
Algeria holds 231 trillion cubic feet of recoverable shale gas, the International Energy Agency estimated, it is enough to supply the entire European Union for a decade and valued at about $2.6 trillion at current month-ahead U.K. prices.
12. NC Rosneft - 31.7 BBOE.
Rosneft holds the first position in Russia on the volume of oil production. State Company Rosneftegaz OJSC 75.6% is its main shareholder. Apart from this, Rosneft nowadays has about 138,000 shareholders – physical persons. ВР, Rosneft and its main shareholder Rosneftegaz signed (November 22) final agreements envisaging purchase-sale of 50% of TNK-BP as well as BP’s investments into Rosneft. The British company sells its 50% stake in TNK-BP to Rosneft for $17.1 bln and 12.84% Rosneft shares currently held in treasury. BP will spend $4.8 bln out of money means it got within the framework of this deal on acquisition of additional 5.66% shares of Rosneft from the state company Rosneftegaz. As the result, its stake in Rosneft will reach 19.75%. Rosneft /RN Nordic Oil AS/ has applied for the right to develop subsoil in the Norwegian continental shelf within the framework of the 22nd license round. The Ministry of Oil and Energy of Norway reports it.
Applications had been collected by late in November 2012. Proposals will have been sent to companies in spring of 2013 whereupon alliances for operation in the Norwegian shelf to be created. Participants will have received new licenses by summer of 2013. The competitors received licenses for 86 blocks (14 for the Norwegian Sea and 72 for the Barents Sea) within the framework of the 22nd round.
The list of companies participating in the 22nd round announced in summer 2012 included Atlantic Petroleum AS, AS Norske Shell, Bayerngas Norge AS, BG Norge AS, BP Norge AS, Centrica Resources Norge AS, Concedo ASA, ConocoPhillips Skandinavia AS, Dana Petroleum Norway AS, Det norske oljeselskap ASA, Dong E&P Norge AS, E.ON E&P Norge AS, Edison International SpA, Eni Norge AS, Faroe Petroleum Norge AS, GDF SUEZ E&P Norge AS, Idemitsu Petroleum Norge AS, Lukoil Oil Company, Lundin Norway AS, Maersk Oil Norway AS, Moeco Oil & Gas Norge AS, North Energy ASA, OMV Norge AS, PGNiG Norway AS, Repsol Exploration Norge AS, Rocksource ASA, RN Nordic Oil AS, RWE Dea Norge AS, Skagen44 AS, Spring Energy Norway AS, Statoil Petroleum AS, Suncor Energy Norge AS, Total E&P Norge AS, Tullow Oil, Valiant Petroleum and Wintershall Norge ASA.
Norway compensates 78% of all expenditures of oil companies on geological survey including expenditures on exploratory drilling.
13. Exxon - 31.3 BBOE. On October 17, 2012 ExxonMobil announced about the purchase of Canadian oil producing company Celtic Exploration Ltd for $3.14 bln.
ExxonMobil will enjoy an opportunity to operate in Montney, the region that abounds in shale gas and is located in the north-east of the state of British Columbia, as well as receive a share in Duvernau field located in Alberta.
Chevron and ConocoPhillips are already operating there.
Besides, proved and probable reserves of the company will increase by 17 mln tons of barrels of oil equivalent (127.5 mln barrels of oil equivalent).
Early in December ExxonMobil signed an agreement with NC Rosneft OJSC for development of hardly recoverable reserves in West Siberia. Within the framework of the agreement the companies will carry out a joint activity for assessing the possibilities of commercial production of hard-to-recover oil reserves of Bajenovsk and Achimovsk suites in West Siberia region.
14. SOCAR (State Oil Company
of Azerbaijan Republic) - 29.8 BBOE.
In spite of the decline of oil production in Azerbaijan there still remain many non explored structures in Azerbaijan. Exploration will be continued at Shafag, Asiman, Zafar, Mashal and Babek areas. “I think it will be gas discoveries as we mainly run into gas and gas condensate fields at a depth of 6,000-7,000 meters”, Academician Khoshbakht Yusifzade, First Vice President of the State Oil Company of Azerbaijan for Geology, Geophysics and Field Development, says at the meeting with the Caspian-European Integration Business Club (CEIBC).
According to him, only Umid, Absheron fields as well as developing fields of Azerbaijan have proved reserves of 2 trillion 550 bcm of gas. Meanwhile, forecasted reserves of Azerbaijan are estimated at 6 trillion cubic meters of gas. Proved oil reserves in Azerbaijan total 2 bln tons. Forecasted reserves total 2 bln tons. Altogether, undiscovered reserves of Azerbaijan total 10 bln tons of oil equivalent.
15. Chevron - 27 BBOE.
Chevron Corporation (NYSE: CVX) announced a $36.7 billion capital and exploratory investment program for 2013. $3.3 billion of planned expenditures by affiliates, which do not require cash outlays by Chevron are included in the 2013 program.
"Consistent with long-stated strategies, we're investing in a portfolio of very attractive oil and gas projects that will deliver volume growth and real value to our stockholders," said Chairman and CEO John Watson. "Next year's program supports several projects currently under construction, including our Australian LNG projects and United States deepwater developments. As these and other projects will be launched soon , we anticipate production will reach our 2017 goal of 3.3 million barrels per day. With our strong balance sheet and industry-leading producing margins, I further expect to continue our pattern of significant stockholder distributions."
Approximately 90 percent of the 2013 spending program is budgeted for upstream crude oil and natural gas exploration and production projects. Another 7 percent is associated with the company's downstream businesses involved in manufacturing, transportation and sale of gasoline, diesel fuel and other refined products, fuel and lubricant additives, and petrochemicals.
16. PetroChina Company Limited -
22.2 BBOE
Encana Corp. (ECA)’s C$1.18 billion ($1.2 billion) joint venture with state-owned PetroChina Co. signals the first of many foreign deals as companies seek to navigate new Canadian rules that favor minority stakes over takeovers.
Athabasca Oil Corp. (ATH), Talisman Energy Inc. and Canadian Natural Resources Ltd. (CNQ) may attract overseas investors willing to gain access to oil and natural gas resources, as the companies seek funds for drilling and development costs.
“There are probably going to be more joint ventures,” said Leo De Bever, who oversees C$70 billion including Encana shares as chief executive officer of Alberta Investment Management Corp. in Edmonton. “Now that there is some clarity on the rules, people may feel less hesitant about being involved in something that has political overtones, rather than just economic overtones.”
The agreement between Encana, Canada’s largest gas producer and Beijing-based PetroChina is the first since Canada’s Prime Minister Stephen Harper unveiled new restrictions on Dec. 7 for state-owned companies seeking to invest in the oil sands. PetroChina’s 49.9 percent stake in the joint venture is in line with the rules, which prohibit purchases by state-owned enterprises unless there are “exceptional circumstances.”
Joint ventures are the “way of the future” for companies like Encana and Canadian Natural, said John Stephenson, who helps manage C$2.7 billion at First Asset Investment Management Inc. including Encana shares.
17. PETRONAS (Malaysian national
oil and gas company) – 20.56 BBOE
Malaysian company is operating successfully in the Turkmen shelf of the Caspian. In 2011 it invested in construction of gas processing plant in the settlement of Kiyanly as well as in onshore gas terminal which receives natural gas from the fields located in the Turkmen shelf of the Caspian. A new industrial complex in Kiyanly where the Malaysian company PetronasCharigali invested conducts cleaning and drying of natural gas produced on Magtymguly field. The current production capacity of the plant totals 5 bcm of gas per year. The company also aspires to expand activity on Canadian shale plays in 2012 even though no big success has been gained in this direction yet.
Canada has blocked a $5.2bn (£3.3bn) takeover bid from Malaysia's Petronas, explaining saying it would not bring advantages to the country.
Petronas had wanted to buy Canadian oil and gas firm Progress Energy Resources. It now has 30 days to adjust its offer.
Analysts said the move raises questions about Canada's appetite for foreign investment in key industries.
The decision also doubts a $15.1bn (£9.3bn) bid for Canada's Nexen by Chinese state-owned Cnooc.
The offer from Petronas for Progress Energy Resources, worth 5.18bn Canadian dollar, was agreed by the companies in June.
However, in the statement the Canadian industry minister said the deal did not provide "net benefit" to Canada.
A takeover would render Petronas access to shale gas reserves in the Montney region of British Columbia and Alberta, a resource many firms are keen to develop.
Chief executive of Progress Energy Resources, Michael Culbert, expressed the company's disappointment with the decision. "Progress will be working over the next 30 days to determine the meaning of the issues and the potential remedies," he said.
"The long-term health of the natural gas industry in Canada and the development of a new liquefied natural gas export industry are dependent on international investments such as (the one by) Petronas."
18. BP – 17.75 BBOE (total reserves)
Though bp failed to fulfill the production plan from the mega field Azeri-Chyrag-Gunashli in the Azerbaijan sector of the Caspian Sea and as a result Azerbaijan’s losses reached as much as $8bn, “our major partner, bp, treated these remarks with great responsibility”, said the President of Azerbaijan Ilham Aliyev after the meeting with bp CEO Robert Dudley. According to President Aliyev, at the meeting on December 18 bp CEO announced the plans of the company for coming years. “I am pleased that bp set out oil production stabilization as a priority issue in these plans. This shows that our cooperation has formed a strong basis”, the President of Azerbaijan said.
Bp, the operator of the Shah Deniz gas field, plans to focus its strategic activity on oil not gas production, as well as on exploration and production of hydrocarbons but not on development of their processing. BP executives said this while presenting company’s development strategy from 2014 to 2020 to the analysts of the stock exchange on December 17, Reuter agency reports.
BP Executive Robert Dudley said that the British Corporation had not lost its positions in the industry as the result of sale of its assets including its 50% stake in the Russian oil group TNK-BP. It simplified its structure by becoming more manageable. “We sold 50% of our production equipment, third of our wells and half of pipelines. However, we lost only 9% of production and 10% of reserves”, Dudley said at the presentation of BP strategy. We have become a much simpler company”.
Meanwhile BP reported a fall in third-quarter profits to $4.69bn, but its shares rose 5% on the day following news that its dividend would increase by 12.5%.
19. Petrobras – 16.4 BBOE.
A state-controlled oil company, had the outlook on its foreign currency bonds revised to negative from stable by Moody’s Investors Service, according to a statement from the ratings company.
The cut in the outlook for the Rio de Janeiro-based company known as Petrobras, “reflects the company’s rising debt levels,” Moody’s said. “We also witness increasing linkage between Petrobras and the state».
20. Shell - 14 BBOE.
Royal Dutch Shell has reported profits of $6.12bn (£4.5bn) for the past three months, down from $7.2bn for the same period of last year. The Anglo-Dutch company explains the reduction with lower oil and gas prices.
Excluding one-off items such tax changes and other factors, the third-quarter profits were $6.6bn, down 6% on last year.
Chief Executive Peter Voser said the figures showed “progress in a difficult industry environment”. Sales fell 8.9% down to $112bn, reflecting the global economic slowdown and reduced demand for oil.
Shell said that it showed stronger margins in its oil refining division, but these were outweighed by lower crude prices during the quarter.
Shell, the world’s second largest publicly quoted oil company behind Exxon Mobil, has raised its quarterly dividend by 2.4% from last year.
21. Pemex - 13.796 bln barrels
In February U.S. Secretary of State Hilary Clinton and Mexican Foreign Affairs Minister Patricia Espinosa signed an agreement for joint development of oil and gas reserves located at the two nations’ boundaries in the Gulf of Mexico. Thus, the moratorium on exploration and production of oil in the western part of the Gulf of Mexico will be cancelled after the agreement gains force. The agreement establishing a legal framework for joint operations is also designed for creating incentives for U.S. energy companies to develop fields jointly with the Mexican state oil company known as Pemex.
According to the agreement, American companies and Pemex may sign contracts on joint development of fields located on the border of the two countries. It also enables each party to develop their share of the field in case if the American companies and Pemex do not reach an agreement on joint venture, U.S. Internal Affairs Department said.
Mexican President Philippe Calderon said that all common hydrocarbon deposits will be developed jointly.
According to the report of the US Internal Affairs Department, the agreement will provide companies a permit for performing operations on continental shelf’s area covering about 1.5 mln acres. The area may contain 172 mln barrels of oil and 304 bln cubic feet of gas.
22. Total - 11.423 BBOE.
23. Eni - 7.09 BBOE.
For a long period of time ENI has been the partner of Russian companies in Blue Stream and South Stream gas transportation projects. The company is also actively involved in the Kazakhstan mega-project Kashagan. Rosneft OJSC and Italian concern ENI have this year reached an agreement on joint development of sections in the Barents and Black seas. ENI’s share in the joint project with Rosneft will total 33.33%. Rosneft will enjoy an opportunity to participate in foreign projects of ENI.
The agreement envisages joint development of RF’s sections of the Barents and Black Seas, exchange of technologies and personnel, as well as Rosneft’s participation in international projects of ENI. The parties will create a joint venture for development of Fedinsk and Central-Barents sections in the Barents Sea and West-Black Sea section in the Black Sea. Total recoverable reserves of the mentioned sections are estimated at 36 billion barrels of oil equivalent. According to the agreement, ENI will finance geological survey operations that are necessary for acknowledgement of commercial potential of sections.
Exchange of technologies is one of the important components of strategic cooperation. ENI is expected to make a substantial contribution to the technological potential of the joint venture due to its broad experience of working in Norwegian shelf and other countries.
24. Statoil - 5.107 BBOE.
Statoil, the most high-tech and efficient international company dealing in development of shelf fields with high pressure and temperature, this year activated work in the Arctic zone and Norwegian Sea. Norway offered foreign companies 86 blocks in the 22nd round of licensing. 72 blocks are located in the Arctic zone (a record number for the region) and 14 more in the Norwegian Sea.
In the past, the Barents Sea area was not popular with energy companies due to lack of the developed infrastructure. However, discovery of such fields as Skrugard by Statoil changed the situation.
Rosneft and Statoil will have reached agreement on all joint projects by the end of the first quarter of 2013. “The companies should complete creation of 4 joint ventures for offshore blocks development in Russia, decide whether companies want to create JVs for shelf-related projects in Russia by this term”, Nick Maden, Senior Vice-President, International Exploration at Statoil, said.
In return, Statoil offered Rosneft to join a number of projects of the Norwegian company in the third companies. In particular, a possibility of joint participation of parties in license tenders for the development of the Norwegian shelf of the Barents Sea is under consideration.