Activities

Energy services provider Nabors Industries Inc., which concentrates most of its activities in North America, and private equity firm First Reserve Corp. on Friday committed $1 billion to form NFR Energy Inc., a new exploration and production company (E&P). The 50-50 joint venture will focus on development and exploitation projects with Nabors’ existing customers and other operators worldwide.

Mississippi Hub LLC is seeking an exemption from Section 7 certificate requirements to conduct certain temporary activities to determine the operational feasibility of developing a natural gas storage facility in southern Mississippi.

Southern Natural Gas said it resumed offshore construction activities last Monday after suspending them for about seven days due to adverse weather conditions. Based on the best information available, Southern projected these return-to-service dates for the remaining portions of its offshore system that were damaged during Hurricane Katrina: east of Main Pass 298 Junction Platform, Dec. 25; 12-inch line from Main Pass 298 “A” to Main Pass 298 “B,” Jan. 11, 2006; 20-inch line from South Pass 62 “B” to Main Pass 298 “B,” Feb. 28, 2006; 18-inch line from Main Pass 306 “D” to Main Pass 293, Feb. 28, 2006; and the 14-inch line from Main Pass 153 to South Pass 62 “B,” March 16, 2006. An in-service date for the 12-inch line to West Delta 133 is dependent on producer repairs, Southern said. An OFO Type 6 remains in effect for Friday on Southern’s contiguous system; the pipeline said Thursday it is “too close to call” on whether the OFO will be extended beyond Friday.

Without new discoveries and more investment for exploration activities, Mexico’s state oil monopoly Petroleos Mexicanos (Pemex) could be importing oil within 10 years, the director general said last week. However, if it doubled its current $20 billion annual investment, Pemex could become one of the largest oil and natural gas exporters, according to Luis Ramirez Corzo, who took over Pemex last November.

Without new discoveries and more investment for exploration activities, Mexico’s state oil monopoly Petroleos Mexicanos (Pemex) could be importing oil within 10 years, the director general said last week. However, if it doubled its current $20 billion annual investment, Pemex could become one of the largest oil and natural gas exporters, according to Luis Ramirez Corzo, who took over Pemex last November.

Houston-based Southwestern Energy Co., which focuses its oil and natural gas activities in the United States, on Thursday said it would spend up to $352.7 million, or 24% more, in 2005 for capital investments than it expects to spend this year. The budget includes up to $339 million for exploration and production (E&P) and $13.7 million to improve utility systems. Southwestern plans to drill 380 wells in 2005, up from an estimated 206 wells during 2004. Southwestern also plans to drill 35 exploration and exploitation wells in the onshore Texas Gulf Coast, the Permian Basin and in its other operating areas. Of the $339 million E&P capital budget, $271.2 million will be invested in development drilling, $10 million in exploratory drilling, $26.8 million for land and seismic, $24.0 million in capitalized interest and expenses, and $7 million in equipment, facilities and technology. Southwestern is targeting 2005 production at 61-63 Bcfe, an increase of 13-17% over the company’s forecasted 2004 production. The 2005 targeted oil and gas production includes targeted natural gas production for the Fayetteville Shale play of 2.5-3.0 Bcf, “assuming positive operational results and full utilization of the allocated capital,” the company said.

ConocoPhillips said Tuesday that expected seasonal declines and scheduled maintenance activities in North Sea and Alaskan operations will send third quarter oil and natural gas production 7% lower sequentially over second quarter output. The company will issue its quarterly report on Oct. 27.

A coalition of 18 Midwest municipal gas utilities has accused five major natural gas producers of engaging in activities to “control and unlawfully” raise the price of gas in the United States in restraint of trade or commerce.

A coalition of 18 Midwest municipal gas utilities has accused five major natural gas producers of engaging in activities to “control and unlawfully” raise the price of gas in the United States in restraint of trade or commerce.