Lukoil Stays Out of West Qurna, SandRidge Gets 3rd TPG-Axon Letter: Energy Business Review

The second-largest crude producer in Russia, Lukoil Co. (LUKOF.PK), announced on Monday that it will not join the development of Iraq’s West Qurna-1 oilfield due to high risks, clearing the way for Chinese firms to enter the project. Presently, Lukoil oversees the biggest share of oil reserves in Iraq among foreign firms and is already involved in the West Qurna-2 project. Andrei Kuzyayev, chief of Lukoil Overseas, commented to Russian state TV channel Rossiya-24 that, “We have analyzed all the risks and decided that, as we have been implementing such a global project as West Qurna-2 without a partner, we would have taken great risks by entering another big project such as West Qurna-1.”

Chicago Bridge & Iron Company (NYSE:CBI) reported Monday that its joint venture with Chiyoda Corporation CC JV has won a contract for the Front End Engineering and Design for the on-shore natural gas liquefaction facility project in a liquid natural gas park in the Cabo Delgado Province of Mozambique by Anadarko Moçambique Area 1 Limitada, operated by Anadarko Petroleum Corporation (NYSE:APC). The project possesses the capacity to expand up to approximately 50 million metric tons per annum of LNG in the future. The first LNG cargo is targeted for 2018.

Are these stocks a buy or sell? Let us help you decide. Check out our Stock Picker Newsletter now.

The board of directors of SandRidge Energy (NYSE:SD) has received a third letter from TPG-Axon, which owns 6.7 percent of its outstanding shares, in which it says that it has filed a lawsuit in Delaware Chancery Court which challenges the validity of the declared Initial Consent Date noted in SandRidge’s 8-K, dated December 21st, linked to TPG-Axon’s proposals to amend the firm’s bylaws and remove and replace members of the current board. Additionally, PG-Axon stated that it intended to file consent solicitation documents with the Securities and Exchange Commission on Monday.

The Tamar field operator Noble Energy (NYSE:NBLrejects the findings of a report by the Dutch energy development consultancy company SGS Horizon, which said that the natural gas supply from Tamar field to Israel might be in jeopardy if additional production drilling to the prospect is not conducted within the next two years. At a meeting last week at the Ministry of Energy and Water Resources, Noble’s staff contended that SGS had not taken into account the most recent data which had been obtained from the development procedures for the field, remarking that, “We believe in our models and we are in close contact with the Petroleum Supervisor and SGS in order to look over their models and our models and bridge the gaps between them.”

Don’t Miss: The Fiscal Cliff: Is an 11th Hour Solution All That’s Left?