Beyond Kazakhstan’s Megaprojects

Commentary by Mauro Fiorucci in Newsbase A former consultant to Kazakhstan’s national oil company tells NewsBase why Kazakhstan has had little luck developing projects besides its largest three fields WHAT: Kazakhstan is becoming increasingly reliant on just a trio of oil projects to support its economy. WHY: Lacklustre exploration results and investment risks have deterred companies from exploring further in the country. WHAT NEXT: Oil production in Kazakhstan will continue […]

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M&A: A Deal’s Details

By Paul Legoudes, in Midstream Business In the higher commodity price environment of 2010 to 2014, upstream companies either sold gathering systems to raise capital and/ or incentivized midstream companies to construct assets on their behalf. This typically resulted in long-term agreements that included such terms as minimum volume commitments (MVCs), dedicated acreage and, in some cases, guaranteed cash flow. At the time, both the E&P and midstream companies benefited from the […]

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Opportune LLP Talks ‘Top M&A Targets in 2017’ to U.S. News & World Report

Mergers and acquisitions have hit breakneck speed and the outlook remains strong for investors. By Lou Carlozo, U.S. News & World Report | Commentary by John Vanderhider, Partner & Corporate Finance Expert   One way to think of mergers and acquisitions invokes traditional metrics and flow-chart precision: Two companies meet, discuss, crunch the numbers and hopefully emerge as a stronger unit the moment they join forces, or one buys the other. But in […]

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Refining: Europe’s Refineries: walking dead or happy valley?

Unloved and increasingly unneeded, Europe’s oil refining sector has been under duress for an astonishing four decades. Hydrocarbon Processing  By Tommy Mars, Opportune LLP Unloved and increasingly unneeded, Europe’s oil refining sector has been under duress for an astonishing four decades. As in many other sectors, Europe’s refineries expanded during the post-war decades to accommodate the internal needs of national markets. That world changed following the second oil shock of […]

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Oil Market Shrugs Off Iran Sanctions, Is Trading Up in Early February

With global oil supply tightening, oil traders aren’t too concerned about new sanctions on Iran. By Brian O’Connell, TheStreet New York Mercantile Exchange crude oil prices were up for the first week in February, and that positive trend has continued on Monday, with March futures trading opening at 53.81. April oil futures are also up, to 54.48, while May futures are trading at 54.99. With the Trump administration’s move to sanction […]

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The ‘Neu’ Oil and Gas Organization

By Lynell Rogeri, Opportune LLP Future business organizations, including oil and gas companies, will be a series of neural networks of capabilities that continually build and break up to create value to customers. Just as human brains form new neurons every day, so should the organization that wants to succeed.  So-called motor neurons in the organization will be barraged with signals from the market and will learn to respond. They […]

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Rosneft on the retreat in the Mediterranean

Western sanctions have upended one of Rosneft’s most promising ventures in Europe Written by Joseph Murphy, commentary by Mauro Fiorucci Russia ’s top oil producer, Rosneft, announced last week it would be offloading its remaining 12% stake in Italy’s Saras, the owner of the sixth biggest refinery in Europe. The rationale behind the move, according to Rosneft, was that Western sanctions had prevented it from pursuing its long-term plan to secure […]

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Re-Energizing Companies in a Post-Restructuring World

Precipitous commodity price declines and high volatility, coupled with high operating costs and high levels of borrowing, led to a wave of restructuring in the energy industry. In the frenzy of restructuring, a company is consumed with legal issues, employee layoffs, salary cuts, asset sales, and workload reassignments, to name a few. When the company emerges out of restructuring, the focus turns to healing. This is not dissimilar to recovering […]

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Determining The Fair Value of Oil & Gas Reserves

By Lauren Clyburn The lower commodity price environment over the last two years has presented challenges for valuing oil and gas reserves and unevaluated acreage acquired by E&P companies. For financial reporting purposes, the primary method for valuing reserves is the income approach via the discounted cash flow method, whereas unevaluated acreage is typically valued using the market approach via the comparable transaction method. The challenges presented by the decline […]

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European Refining–Part III, Alternatives to M&A and the Rise of the Asset-backed Trading Model

There is money to be made in European refining after all, but it is not really about the refinery, is it?      Introduction Market conditions confront European refiners with a complex set of challenges, and not all of them are well-equipped to survive. Opportune LLP (“Opportune”), a leading international energy consulting firm, examines the complex dynamics of the European market and the long-term outlook for the refining industry in Europe. […]

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