Contract

Offshore driller Seadrill Management Ltd. during the second quarter continued to pare costs and defer delivery of newbuild rigs as much as possible. The company said it has disputed a recent contract termination by Petroleos Mexicanos (Pemex) for the West Pegasus rig and is reviewing its legal options.

More than 30 small oil and natural gas producers have filed a lawsuit against Dominion Transmission Inc. (DTI) and affiliates in West Virginia, claiming that the companies breached their fiduciary duties by forcing the producers into unprecedented long-term, fixed-fee contracts for a pipeline project completed years ago.

Global liquefied natural gas (LNG) buyers clearly have the upper hand as even more supply is slated to enter a glutted market in the coming years. As smaller countries enter the LNG-consuming ranks, sellers will need to accommodate their particular needs while adapting to new demands from their traditional clientele.

Natural gas forwards markets tacked on another 20 cents on average between June 3 and 9 as market players were thrown by this week’s reported storage injection from the U.S. Energy Information Administration, according to NGI’s Forward Look.

Natural gas prompt-month forward prices posted double-digit gains between May 27 and June 2 as strong cash, bullish storage and supportive weather amped up the market, according to NGI’s Forward Look.

May natural gas is set to open 4 cents lower Tuesday morning at $2.02 as traders balance an expected renewed expansion of the long-term storage surplus with a resilient technical outlook. Overnight oil markets rose.

May natural gas is set to open 4 cents lower Tuesday morning at $2.02 as traders balance an expected renewed expansion of the long-term storage surplus with a resilient technical outlook. Overnight oil markets rose.

The Commodity Futures Trading Commission (CFTC) has unanimously approved proposed guidance, issued jointly with the Securities and Exchange Commission (SEC), that certain electric power capacity contracts and natural gas peaking supply contracts should not be considered swaps under the Commodity Exchange Act.

One day after a federal bankruptcy court judge ruled that Sabine Oil and Gas Corp. could terminate some of its gathering contracts as part of its recovery in Chapter 11, industry experts said they don’t believe the ruling sets a precedent in the midstream sector, but are advising midstream companies to fortify their contracts with producers.