According to the quarterly industry survey from jobs board, oilandgaspeople.com, 44% of the workforce is already aged over 45.

The survey found that while tax breaks for the industry were promoting record investment, it was also creating an even greater demand for already scarce skilled professionals.

Last month bank of England governor, Mervyn King, claimed that North Sea oil will boost economic recovery, however the survey found 70% of employers are “struggling” to recruit quality candidates and the recruitment crisis is “set to get worse”.

The survey also revealed mass skills shortages across the industry, with 25% of companies failing to find enough engineers. There was also shortages in: drilling specialists (38%), subsea specialists (75%), HSE specialists (37%), project engineers (65%) and geoscientists (25%).

Kevin Forbes, CEO of oilandgaspeople.com, said: “North Sea investment is at record levels and production will help boost the economy but there is one dark cloud on the horizon and it is a fast reducing qualified work force.

“It’s one thing having record levels of investment but if you don’t have enough people to do the jobs, then the growth will grind to a halt.

“As our survey found, the industry specialisms that are most hard to fill are those with an ageing workforce. It’s no surprise that geoscientists and drilling specialists are hard to recruit as these key workers are retiring in large numbers.”

He added: “The oil industry shed thousands of specialists 20 years ago and now they are waking up to a big retirement headache. Over the next 10 years they will have to find 125,000 new staff otherwise there won’t be enough qualified engineers to do the work.”

http://www.hrmagazine.co.uk/hro/news/1077299/north-sea-oil-gas-industry-facing-recruitment-crisis-record-head-retirement?utm_content=North%20Sea%20oil%20and%20gas%20industry%20facing%20%22recruitment%20crisis%22%20as%20record%20numbers%20head%20for%20retirement&utm_campaign=HR%20magazine%20news%2024%20May%202013&utm_source=HR%20Magazine&utm_medium=adestra_email&utm_term=http%3A%2F%2Fwww.hrmagazine.co.uk%2Fhro%2Fnews%2F1077299%2Fnorth-sea-oil-gas-industry-facing-recruitment-crisis-record-head-retirement

‘We want the people who have been affected by these devastating storms to know that they are in our hearts and prayers,’ said Alan Kleier, vice president of Chevron’s Mid-Continent business unit. ‘As a business with ties to Oklahoma, we hope this donation eases the recovery process.’

Chevron’s Mid-Continent business unit is headquartered in Houston with operations in seven states, including Oklahoma.

Read more: http://www.oilvoice.com/n/Chevron_contributes_to_Oklahoma_tornado_relief_efforts/cc2df50f4137.aspx#ixzz2UCL77CgZ

The boards of Parkmead and Lochard are pleased to announce that they have reached agreement on the terms of a recommended all-share offer for Lochard, pursuant to which Parkmead will acquire the entire issued and to be issued ordinary share capital of Lochard (the “Acquisition”). It is intended that the Acquisition be implemented by way of a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act.

Under the terms of the Acquisition, Scheme Shareholders will be entitled to receive 0.385 Parkmead Consideration Shares for each Scheme Share held at the Scheme Record Time.

Based on the Closing Price of a Parkmead Share of 12.625 pence on 22 May 2013 (being the latest practicable date prior to the date of this Announcement), the Acquisition values the entire issued and to be issued share capital of Lochard at approximately £14.5 million, and each Lochard Share at approximately 4.9 pence. This is based on 298,865,616 Lochard Shares in issue as at the date of this Announcement.

Parkmead is an AIM quoted emerging independent oil and gas company with a strategy of utilising the significant technical and commercial expertise that exists within its experienced team, led by its Executive Chairman Tom Cross, to exploit the exploration and production opportunities that exist in its known and preferred areas of the UKCS and the Netherlands.

Lochard is an AIM quoted independent oil and gas production, appraisal and development company focused on the UKCS. Lochard’s principal asset is its 10 per cent. interest in the Athena field.

The Lochard Directors, who have been so advised by CIBC World Markets plc, consider the terms of the Acquisition to be fair and reasonable. In providing its advice, CIBC World Markets plc has taken into account the commercial assessments of the Lochard Directors. In addition, the Lochard Directors consider the terms of the Acquisition to be in the best interests of Lochard and Lochard Shareholders, as a whole.

Accordingly, the Lochard Directors intend to recommend unanimously that Lochard Shareholders vote in favour of the Scheme at the Court Meeting and the resolutions to be proposed at the General Meeting (or in the event that the Acquisition is to be implemented by means of a Takeover Offer, to accept or procure the acceptance of, the Takeover Offer).

Whilst none of the Lochard Directors are directly interested in any Lochard Shares, Jamie Brooke, a non-executive Director of Lochard, is also an employee of Henderson Global Investors Limited. Funds managed by Henderson Global Investors Limited and Henderson Alternative Investment Advisor Limited are interested in 93,926,577 Lochard Shares, representing approximately 31.4 per cent. of the issued ordinary share capital of Lochard. Parkmead has received irrevocable undertakings from Henderson Global Investors Limited and Henderson Alternative Investment Advisor Limited to vote, or procure the vote, in favour of the Scheme and the resolutions at the Court Meeting and the General Meeting in respect of such 93,926,577 Lochard Shares, representing approximately 31.4 per cent. of the issued ordinary share capital of Lochard.

Parkmead has also received irrevocable undertakings to vote in favour of the Scheme and the resolutions at the Court Meeting and the General Meeting from certain other Lochard Shareholders in respect of a further 22,111,287 Lochard Shares, representing approximately 7.4 per cent. of the issued ordinary share capital of Lochard.

In addition, Parkmead has obtained a letter of intent from Palm Global LLP in respect of 3,900,000 Lochard Shares representing approximately 1.3 per cent. of the issued ordinary share capital of Lochard to vote in favour of the Scheme and the resolutions at the Court Meeting and the General Meeting.

Parkmead has therefore received irrevocable undertakings, or letters of intent, in respect of 119,937,864 Lochard Shares representing, in aggregate, 40.1 per cent. of the existing issued ordinary share capital of Lochard.

This Announcement follows the announcement by Lochard on 3 September 2012 that it had decided to proceed with a ‘formal sale process’ in accordance with Note 2 on Rule 2.6 of the Code. The formal sale process has now been successfully concluded with the Announcement of the Acquisition. The end of the formal sale process means that the data room which was open to participants will be closed from 7.00am on 23 May 2013. Other potential offerors, however, can still announce competing offers for Lochard.

The Parkmead Consideration Shares to be issued pursuant to the Acquisition are expected to represent approximately 11.1 per cent. of the issued share capital of Parkmead as enlarged by the Acquisition.

The Parkmead Consideration Shares will rank pari passu in all respects with the Parkmead Shares in issue on the Effective Date and will be entitled to all dividends and/or other distributions declared or paid by Parkmead by reference to a record date on or after the Effective Date.

The Panel has consented to Lochard entering into a break fee arrangement with Parkmead as a participant in Lochard’s formal sale process pursuant to Note 2 on Rule 21.2 of the Code. As such, Lochard has agreed to pay Parkmead a break fee of £145,267 (subject to adjustment for VAT) if a Competing Offer is announced prior to the Acquisition lapsing or being withdrawn and such Competing Offer becomes or is declared unconditional in all respects or otherwise becomes effective.

The Acquisition is conditional on, inter alia, certain approvals by Lochard Shareholders and the sanction of the Scheme by the Court. In order to become effective, the Scheme must be approved by a majority in number of the Scheme Shareholders voting at the Court Meeting representing not less than 75 per cent. in value of the Scheme Shares held by the Scheme Shareholders present and voting in person or by proxy. It is expected that the Scheme Document, containing further information about the Acquisition and notices of the Court Meeting and General Meeting together with the Forms of Proxy, will be posted as soon as practicable and, in any event, within 28 days of this Announcement. Subject to the satisfaction or, where relevant, waiver of all relevant Conditions, the Scheme is expected to become effective in July 2013.

Commenting on the Acquisition, Clive Carver, Chairman of Lochard, said:

“Since the current board was formed, the Lochard Directors have believed that the future of Lochard would be best served by becoming part of a larger entity. We are therefore delighted to have found in Parkmead a company whose management team have a successful track-record of building an E&P company and creating value for shareholders.

The Lochard Directors believe Parkmead is of a size and quality that will enable it to continue to source and fund exciting exploration prospects and development opportunities at a time when obtaining funding for smaller exploration companies remains difficult. The cash flow from Athena will assist the combined entity in pursuing further growth.”

Commenting on the Acquisition, Tom Cross, Executive Chairman of Parkmead, said:

“This is the most exciting and important deal for Parkmead to date. The acquisition of Lochard will increase Parkmead’s production by over 400 per cent. and therefore provides it with a significantly enhanced cash flow profile. The combination of Parkmead and Lochard will create a stronger and more diverse portfolio of assets, balanced across the UKCS and the Netherlands.

Furthermore, the addition of Lochard’s production will enable Parkmead to deliver its ambitious growth plans. This follows the acquisition of DEO Petroleum plc, first production from the Netherlands, successful horizontal appraisal drilling at the Platypus field and the major award of 25 blocks across the UKCS, all achieved by Parkmead within the last 12 months.”

Read more: http://oilvoice.com/tw/173a2e1484d8.aspx#ixzz2U6dW1kDQ

EnQuest and its partner, the developer Drum Property Group are proposing the demolition of the derelict Aberdeen Seafood Park in the harbour area. It would be replaced by a ‘flagship’ high quality office development and associated car parking.

Provided planning permission is granted the building, when completed in late 2014, will become the new North Sea headquarters for EnQuest. The company is the largest UK independent oil producer in the UK North Sea and currently employs around 500 people at two locations in Aberdeen. EnQuest will become owners of the building, which will provide accommodation for up to 800 personnel, on completion.

David Heslop, EnQuest’s Managing Director UKCS, said: “From our perspective, this development fits with our primary focus of securing a high quality flagship building that clearly demonstrates the company’s long term commitment to Aberdeen and the North Sea and enables us to consolidate our existing workforce under one roof.

“It is in an ideal location in the heart of the city and will serve to support our future growth plans. The fact that we will own the building is testimony to the importance of Aberdeen to the future success of EnQuest’s business and emphasises the city’s status as our centre of operational excellence.”

Drum Director Graeme Bone commented: “EnQuest is a very significant player in the North Sea and we are delighted to have reached agreement with them to take this exciting project forward. The company has enjoyed considerable growth since it was established in April 2010, and has for some time been looking at opportunities to relocate to larger facilities.

“The proposed development provides a purpose made solution for EnQuest and will support the company’s expansion. More generally, our proposals will also lead to the physical regeneration of a neglected and rundown area of the city and in addition act as a catalyst in generating additional long term economic activity for the harbour area and the city in general.”

The proposed site is bounded by Palmerston Road, Raik Road, Poynernook Road and Stell Road. The proposed internal office area of the building is approximately 120,000 sq ft over eight storeys. Associated car parking will be provided on-site in an adjoining building.

http://www.enquest.com/media-centre/press-releases/2013/20-05-13.aspx

Voser announced his surprise decision three weeks ago to step down in the first half of 2014, before his 56th birthday, and less than five years into the role.

“The process has started,” Shell chairman Jorma Ollila told Reuters after the meeting when asked about the succession plan.

Ollila chairs the three-strong nomination and succession committee that will choose Voser’s replacement.

Voser has been a pillar of Shell’s new-found stability since he rejoined the company as finance director in October 2004 as part of a wholesale clearout of disgraced former top management following a reserves accounting scandal.

Employees of the 180-year old Anglo-Dutch group, which traditionally grows its own top executives, believe an import is unlikely to get the top job, but Voser is only the second person to hold the CEO role under a simplified corporate structure introduced in 2005.

A small investor in the company said he expected Shell to appoint someone in Voser’s mould and he thought it likely to be an internal candidate.

“I am not expecting any great changes in management style at all. It will be more of the same at Shell,” Chris White, a portfolio manager at Premier Fund Managers, said.

Inside Shell, the current finance director, Simon Henry, is regarded as a potential frontrunner, along with Marvin Odum, the company’s head of upstream operations in the Americas.

Henry has a mathematics and accounting background even though, like Odum, he joined the company as an engineer. Odum would be Shell’s first American CEO.

Andrew Brown, who became head of international upstream last year, could be a candidate too, as could director of projects and technology Matthias Bichsel.

One company source said Brown’s relatively recent appointment may make him an outside bet, while Bichsel, born in 1954, might be considered too old for the job.

Shell has said it will look outside for Voser’s replacement as well as inside.

Voser leaves Shell with a leading global production and technology position in liquefied natural gas (LNG) and gas to liquids.

Shell is also strong in oil exploration and offshore production in the Gulf of Mexico and West Africa, and has a well-developed relationship with China, where the oil industry has strong growth potential, plus long-term assets in Canadian oil sands.

But the group suffers regular sabotage and theft from its onshore installations in Nigeria, where it is the biggest western producer, and has made little progress with its costly Arctic drilling programme in recent years.

Like its big rivals, Shell is being squeezed by rising finding and development costs as prices and demand stagnate.

The other two members of Shell’s succession committee, drawn from the ranks of its non-executive directors, are Josef Ackermann, the former Deutsche Bank chief, and Hans Wijers, who ran Dutch chemicals group Akzo Nobel until 2012.

http://www.guardian.co.uk/business/2013/may/21/hunt-for-shell-ceo-under-way

Chevron is conducting a separate sale process for its assets in both countries, banking sources have said, speaking on condition of anonymity as the matter is not public.

At least three non-binding bids have been received for the assets from interested parties, including regional and international energy companies, one source said, declining to provide details of the bidders.

Some bidders are eyeing assets in both of the countries, however, the U.S oil major declined to comment.

“They are small assets but are profitable and gaining a lot of interest in the auction process. There are lots of buyers for whom owning these businesses makes perfect sense,” the source said.

Chevron, operating under the Caltex brand in Pakistan, has more than 500 petrol outlets in the country.

Citigroup Inc is advising Chevron on the sale process, according to the sources.

Read more: http://www.oilvoice.com/n/Chevron_in_advanced_talks_to_sell_downstream_assets/0b3003ab4f6e.aspx#ixzz2TuWViZWE

The work will include full structural inspection activities as well as a number of repair and maintenance operations at EnQuest’s Thistle Alpha Platform, 275 miles north-east of Aberdeen. Hallin will provide its Stril Explorer DP2 multipurpose support vessel which is equipped with a modular air dive system supported by a daughter craft, Quasar Compact WROV and Lynx inspection-class ROV, plus a fully integrated interactive data acquisition and reporting system to complete the works.

“This contract award from EnQuest, which is the largest UK independent oil producer in the UK North Sea, is a major achievement for our team,” details Hallin West’s managing director Jonathon Parkes. “Hallin will provide EnQuest with all onshore and offshore support functions for air diving and remotely operated vehicle based inspection services from the Stril Explorer.”

The Thistle Alpha platform is a fixed installation, which consists of a 60-slot drilling and production platform. It was built at the Graythorp Dry Dock, Teesside (since renamed TERRC) and installed in 1976. Oil from the Thistle and Deveron reservoirs is recovered by platform wells and processed through a two-stage production separation system. Oil is imported from the Dons field via an 8 inch pipeline and combined with oil produced by the Thistle platform. The combined oil production is exported from the Thistle platform through a 16 inch pipeline through the Brent Pipeline System, via the Dunlin and Cormorant platforms to the Sullom Voe Oil Terminal.

http://www.yournorthseaoilnews.com/enquest+places+north+sea+irm+project+with+hallin_90211.html

Total will be the operator with 40% interest in five blocks situated in the Foz do Amazonas basin (FZA-M-57, FZA-M-86, FZA-M-88, FZA-M-125 and FZA-M-127) and with 45% interest in one block (CE-M-661) in the Ceara basin. In addition, Total has acquired a 25% working interest in three blocks (ES-M-669, ES-M-671 and ES-M-743) in the Espirito Santo basin as well as a 50% interest in one block (BAR-M-346) in Barreirinhas basin.

‘Thanks to our winning bids for a large number of very promising deep offshore blocks in Brazil in one of the most important licensing rounds in the world, Total has expanded its prospecting and operating acreage in the country, which was one of our main objectives in 2013. We will be able to play a key role in Brazil’s dynamic exploration sector,’ commented Marc Blaizot, Senior Vice President, Exploration at Total. ‘These acquisitions will be major drivers of Total’s strategy of profitable growth in the deep offshore. They also bolster our solid portfolio of prime assets on both sides of the Atlantic, in Africa and the Americas. And we are delighted to be able to put our deep offshore expertise to work for Brazil, alongside Petrobras and our other partners,” he added.

Total will be in partnership with Petrobras, BP, Statoil, OGX and Queiroz Galvão.

Read more: http://www.oilvoice.com/n/Total_wins_10_exploration_licenses_during_Brazils_11th_Bid_Round/c93fbca64b90.aspx#ixzz2TidpBLYA

The last such licensing round closed in February 2008, meaning this will be the first to take place since the shale gas revolution in the US, which has been at the forefront of the drive to extract methane gas trapped in layers of shale rock.

Under each licensing round, companies take the first step towards developing land for oil or gas extraction, although they would need to get further permissions to carry out work such as fracking – hydraulic fracturing – to release shale gas.

“The Government is creating the right framework to accelerate shale gas development in a responsible way,” Mr Fallon said. “We announced fracking could resume with robust regulation last December and there is nothing now stopping licensees from bringing on new drilling plans.

“It is up to licensees to come forward with plans to explore the shale potential, engaging with local communities and gaining the necessary planning permissions and permits.”

More than 330 licences for the onshore exploration and exploitation of energy sources both conventional and unconventional – such as shale gas – have already been issued in the UK.

Considerable interest is expected under the coming round, as companies look to explore the potential for fracking in the UK, with the Government appearing keen to harness the economic benefits.

Opponents of the process, which involves using a mixture of water, sand and chemicals to fracture rock, allowing the gas or oil trapped within to flow out, worry about the environmental impact and upset to residents in affected areas. Tremors related to fracking activity near Blackpool led to initial work being halted.

“Shale gas has great potential and we have the right regulation in place so the UK benefits as quickly as possible in terms of energy security, investment and jobs,” Mr Fallon said. “But development must be done in partnership with communities. We are working hard with industry on a package of community benefits and to ensure that their concerns are properly met.”

Mr Fallon was speaking at the first meeting of the new All Party Parliamentary Group for Unconventional Gas & Oil (APPG) in the House of Commons, a forum to discuss unconventional oil and gas exploration and development, and its impact.

http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/10060075/UK-shale-gas-programme-to-accelerate-say-ministers.html

Production from 1 January to 30 April 2013 averaged 20,494 Boepd, reflecting the third party shutdowns of the Brent pipeline in Q1 2013. EnQuest confirms production guidance of between 22,000 Boepd and 27,000 Boepd for the full year.

Amjad Bseisu, Chief Executive, said

“EnQuest’s growth and execution remain on course. We are on track to submit the field development plan (‘FDP’) for Kraken by mid-year and to sanction the project later in 2013. The well results in north Kraken are in line with expectations and give further confidence in the field development. We completed our acquisition of 8% of the Alba field in Q1 2013, which has similar characteristics to Kraken. Alba adds four non-operated wells to the twelve wells that EnQuest had originally planned for 2013. The Alma/Galia project remains on track for first production in Q4 2013 and dry dock work on the vessel is now complete. With the increase in scope for a potential second phase, our schedule is challenging but achievable. Since the publication of our 2012 results, production continues to be in line with our guidance, driving strong cash flow generation.

We continue to look at opportunities to acquire assets in the UK, as well as other regions, such as in the Norwegian North Sea, South East Asia and North Africa, where our expertise and capabilities can be applied to maturing assets and development opportunities.”

INTERIM MANAGEMENT STATEMENT HIGHLIGHTS

•Alma/Galia. The Alma/Galia development project remains on track for the production of first oil in Q4 2013. The main elements of the subsea system are now in place and the EnQuest Producer vessel has left dry dock on schedule and is now alongside the quay in Hamburg for the remainder of the work.

•Kraken. EnQuest remains on track for submission of the Kraken FDP in Q2 2013. Subject to anticipated regulatory approval, EnQuest’s sanction of the Kraken development is expected later in 2013. An appraisal well has been drilled at Kraken and confirms the north Kraken area.

Further details

•Thistle/Deveron. Production was down year on year due to the shutdown of the third party Brent pipeline, as well as water injection downtime due to an outage of the old ‘B’ turbine generator and to commissioning of the new ‘D’ turbine. Water injection has been re-instated following commissioning of the new D turbine and refurbishment of the B turbine should be completed in June 2013. Drilling is currently underway on the next production well in the Western Fault block

•Dons. Although the Don fields were also impacted by the Brent pipeline shutdowns, the West Don W6/W4 producer/injector pair performed well, following the tie-in of the new W6 injector well in Q1 2013. This contributed to 25% year-on-year production growth from the Don fields. The Don Southwest Area 6 DS producer is scheduled to be brought online in Q2 2013, with an associated water injector to be drilled later in the year

•Heather/Broom. The drilling programme at Heather will start in Q3 2013, following the completion of drilling on Thistle and the commissioning of the refurbished rig on Heather. The Broom field has been performing as expected

•Alba. Platform well A38z (S36) is currently being drilled, part of a 2013 programme which includes three platform wells and one subsea well

Alma/Galia

•Following the batch drilling of six wells in 2012, the manifold and subsea ‘Xmas tree’ systems were installed in Q2 2013 and the umbilical and the riser installation projects are underway. The mooring pile fabrication has also been completed

•In Hamburg, work continues on the EnQuest Producer ‘FPSO’ (Floating Production, Storage and Offloading vessel). The vessel has now left dry dock and moved to the quay. The Electric Power Module and Process Module have been lifted onto the FPSO. The Boiler Module has been completed and is en route to Hamburg. Work continues on the Degasser and the Water Injection Modules

Kraken

•The results of the appraisal well drilled in Q2 2013 confirm the north Kraken area. The reservoir is oil filled and the thickness of the sand is as expected. PVT (fluid) samples have been taken for analysis

Read more: http://www.oilvoice.com/n/EnQuest_announce_production_and_major_projects_on_track/4a3bae27bc3a.aspx#ixzz2TLUhNyAP