Friday, January 31, 2014

Shell: comforting times


 
Less than two weeks after Royal Dutch Shell announced its first profits downgrade in a decade, the company's share price has bounced back up. Lex's Joseph Cotterill and Alan Livsey discuss why.

For more video content from the Financial Times, visit http://www.FT.com/video

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President Obama on Climate Change


 
President Obama addresses climate change during the State of the Union on January 28, 2014.

TRANSCRIPT

One of the biggest factors in bringing more jobs back is our commitment to American energy. The "all the above" energy strategy I announced a few years ago is working, and today America is closer to energy independence than we have been in decades.

One of the reasons why is

Thursday, December 12, 2013

New Models for Financing Renewables


 
The panel on New Models for Financing Renewables during the 9th annual Columbia University Energy Symposium, which took place Friday November 22nd 2013 at Columbia University in New York City.

The panel is moderated by Bruce Usher (Professor, Columbia Business School) and the panelists are Kevin Parker (CEO, Sustainable Insight Capital Management), Stephen Viscovich (Director, Securitized Products, Asset Finance, Credit Suisse Securities LLC), Jimmy Chuang (Vice President of Structured Finance, SolarCity) and Amy Grace (North and South American Wind Analyst, Bloomberg New Energy Finance)

For more information on the Symposium, see
http://www.cuenergysymposium.com/

Navigating Shifting Geopolitics of Oil & Gas


 
The panel on Navigating Shifting Geopolitics of Oil and Gas during the 9th annual Columbia University Energy Symposium, which took place Friday November 22nd 2013 at Columbia University in New York City.

The panel is moderated by Jonathan Chanis (Professor, School of International and Public Affairs, Columbia University) and the panelists are Osman Shahenshah (CEO,
Afren) Michael Levi (David M. Rubenstein Senior Fellow for Energy, Council on Foreign Relations), Robert Johnston (Director, Global Energy and Natural Resources Practice, Eurasia Group) and Benjamin Dell (Founder and Managing Partner, Kimmeridge Energy)

For more information on the Symposium, see
http://www.cuenergysymposium.com/

Thursday, December 5, 2013

DAILY FIVE: December 5, 2013

Our TOP 5
Developments in International Oil & Gas | Energy | Extractive Industries
TODAY

CLICK ON THE LINKS FOR FULL STORIES

NEWS & ARTICLES
 
Ethiopia spearheads green energy in sub-Saharan Africa
AFP - From the sky, the 84 glimmering white turbines at Ashegoda wind farm shoot up from the ground like massive spokes, standing out high amid vast expanses of yellow wheat.
France24

Shell’s massive Prelude hull world’s biggest-ever floating vessel and first ocean-based LNG plant
Royal Dutch Shell PLC says it has completed building the hull of the world’s largest floating facility, which has been constructed to process natural gas off the coast of western Australia. Financial Post

Is The Oil & Gas Industry Serious About Asset Integrity?
In the wake of the Gulf of Mexico disaster, is BP and the rest of the industry genuine about wanting change?

Wednesday, December 4, 2013

CNN Interview with Diezani Alison-Madueke, Minister of Petroleum Resources


 
A chat with CNN on Nigerian Petroleum Industry

PwC's Nason on the new natural resources frontiers; dubs Africa the 'ris...


 

Christopher Nason, Director of Forensic Services at PwC, reveals the firm's role in assessing the risks associated with new oil frontiers. "It is about the political understanding, also taxation, regulation and things that can catch people unawares," he tells Proactiveinvestors. He dubs Africa is the rising continent and says it is attracting a huge amount of interest.

PwC's Nason on the new natural resources frontiers; dubs Africa the 'ris...


 

Christopher Nason, Director of Forensic Services at PwC, reveals the firm's role in assessing the risks associated with new oil frontiers. "It is about the political understanding, also taxation, regulation and things that can catch people unawares," he tells Proactiveinvestors. He dubs Africa is the rising continent and says it is attracting a huge amount of interest.

PwC's Nason on the new natural resources frontiers; dubs Africa the 'ris...


 

Christopher Nason, Director of Forensic Services at PwC, reveals the firm's role in assessing the risks associated with new oil frontiers. "It is about the political understanding, also taxation, regulation and things that can catch people unawares," he tells Proactiveinvestors. He dubs Africa is the rising continent and says it is attracting a huge amount of interest.

PwC's Nason on the new natural resources frontiers; dubs Africa the 'ris...


 

Christopher Nason, Director of Forensic Services at PwC, reveals the firm's role in assessing the risks associated with new oil frontiers. "It is about the political understanding, also taxation, regulation and things that can catch people unawares," he tells Proactiveinvestors. He dubs Africa is the rising continent and says it is attracting a huge amount of interest.

BP Graduate film - Bunmi


 

If you'd like to see more about Bunmi or are a student or graduate and want to work at the forefront of innovation at BP, please explore our website dedicated to students and graduates http://www.bp.com/en/global/corporate...

US: Domestic Oil Production Up 50% Since Obama


 
 
"The United States produced more crude oil than it imported in October for the first time in almost 20 years, the federal Energy Information Administration announced Wednesday. U.S. crude oil production averaged 7.7 million barrels per day in October while 7.6 million barrels per day were imported. Total petroleum net imports were the lowest since February 1991.

Canadian Overseas Petroleum on Exxon and the prospects for Liberia


 
Arthur Millholland, chief executive of Canadian Overseas Petroleum (CVE:XOP), maps out the potential of its block in Liberia, where the group is partnered with Exxon Mobil.

ELN - What could Scottish independence mean for Oil and Gas?


 
Colin Pearson, tax expert at EY explains the implications of Scottish independence in the oil and gas sector.
 
 

Tuesday, October 29, 2013

ACCOUNTING FOR OIL AND GAS RESERVES: Implications for Investors

By Ejiroghene Elizabeth Agbude

Ejiroghene is an Accounting and Finance professional with interest in tax, corporate governance and policy analysis.

 (Professional contacts only: grandejiro@hotmail.com)

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Accounting regulatory bodies usually formulate industry specific standards when an industry has peculiar characteristics e.g. accounting for banks and non-bank financial institutions. The oil and gas industry is one of such industries that has specific accounting standards, this can be attributed to its peculiarity in terms of huge capital requirements, earnings volatility, regulation, type of business ownerships, taxation, non-correlation between the amount of investment made and returns obtained (Wright & Gallun, et al., 2008) and high sensitivity to risk like price risk and foreign exchange risk.
Up until 2012 when the International Financial Reporting Standard (IFRS) was adopted by exploration companies in Nigeria, Nigerian companies in the upstream sector prepared their financial statements in line with the Statement of Accounting Standard 14 (Accounting in the Petroleum Industry: Upstream Activities) and SAS 17 (Accounting in the Petroleum) formulated by the Nigerian Accounting Standard Board.
By its adoption of IFRS, Nigeria joined over 100 countries who either use or have adopted the accounting guidelines as stipulated by the International Accounting Standard Board (IASB). This will ensure harmony and easy comparison of financial statements, this is particularly useful in the oil and gas industry considering that it is one of the most global industries. The adoption of a common accounting framework also widens access to investment opportunities.
IFRS 6 (Exploration for and Evaluation of Mineral Resources) touches on issues that are unique to the extractive industry, other standards relevant to the oil and gas are IAS 16 (Property, Plant and Equipment), IAS 31 (Interests in Joint Ventures), IAS 36 (Impairment of Assets) and IAS 38 (Intangible Assets).

Wednesday, October 23, 2013

Africa New Energies EIS Investment Opportunity -- Oil Barrel Conference ...


 
What is a 'CLEAN ENERGY MODEL' all about?
 
 

FRACKING: Oil & gas development on steroids?


 
What are the pro's and con's of Fracking?

Geothermal energy exploration steams ahead in Japan


 
Geothermal energy exploration is steaming ahead all over Japan as the nation looks to provide a stable power source.

Optimizing Water Use for Oil & Gas Operations


 
Water resource planning, sourcing, permitting and treatment are critical elements for today's oil & gas operations. This webinar presents total water management strategies to help oil & gas companies manage both the environmental and economic side of resource management. Our water experts discuss resource planning, sourcing, distribution management and reuse options. Presenters: Kevin Molloy, PG, Tina Petersen, Ph.D., PE, Tom Beck, PE, Bob Kimball, PE, BCEE

Tuesday, October 22, 2013

IS YOUR TAKE OR PAY CLAUSE ENFORCEABLE?

BY OLUWADAMILOLA DOMINIC-ESSIEN
DAMILOLA holds a degree in Law from the Obafemi Awolowo University and an LLM in Environmental Law and Policy from the prestigious Centre for Energy, Petroleum, Mineral Law and Policy (CEPMLP) University of Dundee. An exceptionally driven individual with a track record of academic and professional excellence, She graduated with a Second Class Upper Division from both the university and the Nigerian Law School. She is currently a partner at Essien Ogunniyi Legal Practitioners, a firm whose primary area of interest is the Natural Resources Sector.
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A Take or pay contract is a form of off take agreement used mainly in the energy industry. It is a contract whereby one party is under an obligation to take delivery of a specified amount of goods or pay a specified amount. Often times it is inserted as a clause in a wider agreement. The aim of this provision is that the supplier will receive a guaranteed amount of income under the agreement irrespective of whether the buyer takes the commodity or not. A properly constructed take or pay clause gives the seller an assured revenue stream that ensures an adequate return on the capital invested on the project.[1] Furthermore, a take or pay clause could be a key consideration for securing an external debt financing. This form of financing is commonly used in the energy industry because it of its capital intensive nature. It usually serves as collateral in an off balance sheet financing (project finance). It is also a risk allocation mechanism used by sellers of commodities.[2] A take or pay clause or agreement usually shifts the market demand risks (also known as volume risk) from the buyer to the seller. It is pertinent to note that a seller is usually confronted with two forms of risks: Market demand risks and the price risks. Where a seller then enters into a take or pay contract, his volume risks becomes minimized leaving him with only the price risks which in certain cases might be hedged.[3]


Essentially, in a take or pay contract, a buyer’s obligation is always described as being in the ‘alternative’. This connotes that a buyer either agrees to