MAR. 4, 2019 | USD 15 International Petroleum News and Technology | www.ogj.com CAPITAL SPENDING UPDATE US OLEFINS UKRAINE OFFERS NEW PSAS IEA UPDATES EOR PROJECTS, OUTPUT IMPROVING NAPHTHA CRACKING MARCELLUS-UTICA OPTIONS 190304OGJc1-c5.indd 1 2/26/19 3:08 PM Oilwell Supply North Sea Cables Norge AS Texas Mill Supply United Distribution Capital Valves National Supply Wallace Company Machine Tools Supply Bovaird Supply MacLean Electrical Union Supply Wilson Supply Midco Odessa Pumps & Equipment Republic Supply Continental EMSCO Highland Pump & Supply Colorado Valve & Controls DOSCO/TS&M Van Leeuwen USA Texas Oil Works CE Franklin HOMCO Supply Mannesmann International Alloys Power Service Inc. OAASIS Group Rye Supply Tyler Dawson Energy Delivered.™ Dupré Supply Challenger Industries, Inc. 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DistNow_OGJ_190304 1 2/18/19 10:50 AM 190304OGJc1-c5.indd 2 2/26/19 3:09 PM CONTENTS Mar. 4, 2019 Volume 117.3 GENERAL INTEREST SPECIAL REPORT CAPITAL SPENDING UPDATE IEA: Crude oil quality matters amid lower supply Growth of US upstream 26 spending to decelerate in 2019 Conglin Xu Queensland’s CSG-LNG plants unlikely to reach full capacity 20 Rick Wilkinson 27 Capital investment continues BP lets rig contract for Ironbark wildcat to increase in Latin America off Western Australia Siddhartha Sen Rick Wilkinson 28 24 APLNG to buy Ironbark coal seam gas prospect from Origin Energy Rick Wilkinson 28 Aramco forms combine for $10-billion Chinese refining complex Robert Brelsford 29 Meridian Energy plots grassroots refinery for Permian basin Robert Brelsford 29 REGULAR FEATURES INTRODUCING NAPE: Croatia opens licensing round in NEWSLETTER 6 Dinarides onshore area LETTERS/CALENDAR 12 OIL & GAS Paula Dittrick JOURNALLY SPEAKING 16 30 EDITORIAL 18 COMMUNITY, MAR. 4, 2019 | USD 15 COVER SERVICES/SUPPLIERS 56 an Oil & Gas Journal online International Petroleum News and Technology | www.ogj.com Devon Energy Corp. plans by yearend to sell STATISTICS 58 service enabling you to CAPITAL SPENDING UPDATE or spin-off its heavy oil properties in Canada MARKET CONNECTION 61 comment on articles, US OLEFINS and gas production in the Barnett shale to ADVERTISERS INDEX 63 communicate with OGJ focus on US oil. The moves will help Devon EDITOR’S PERSPECTIVE/ editors, and meet meet a cost-cutting target of at least $780 specialists in your field. WATCHING GOVERNMENT 64 million/year by 2021. Concentrating on US UKRAINE OFFERS NEW PSAS IEA UPDATES EOR PROJECTS, OUTPUT oil, Devon expects to achieve production For instructions and to sign IMPROVING NAPHTHA CRACKING MARCELLUS-UTICA OPTIONS growth of 13-18% in 2019 with 10% less up, go to upstream capital than in 2018, self-funded www.ogj.com/ at an oil price of $46/bbl if service and sup- oilandgascommunity. ply prices don’t increase. Photo from Devon Energy. 190304OGJ001-005.indd 1 2/28/19 12:22 PM MARCH 5–7, 2019 | SAN ANTONIO, TX USA HENRY B. GONZALEZ CONVENTION CENTER | WWW.SUBSEATIEBACKFORUM.COM Owned & Presented by: Supported by: Hosted by: Produced by: SSTBDev_Petro_180219 1 2/19/18 2:55 PM 190304OGJ001-005.indd 2 2/28/19 12:22 PM UKRAINE LICENSING ROUNDS FIG. 1 BELARUS POLAND Dnipro-Donets basin RUSSIA US NGPL PRODUCTION FIG. 1 Pre-Carpathian basin 2017 7 Kharkiv History Projections Lviv UKRAINE 6Rollava Ivano- Frankivsk 5 East Carpathian MountainsChernivtsi 4 Southwest MOLDOVA 3 Million b/d 2019 PSAs 2019 licenses Kherson 2 North Black Sea basin31 Valid contracts:* 49 Other US Exploration Odessa 1 ROMANIA Black Sea Azov Sea E&P Production T E C H N O L O G Y . 0 PSA 2000 2010 2020 2030 2040 2050 *Exploration licenses cover 5 years onshore, 10 years offshore, combined E&P licenses cover 20 years onshore, 25 years offshore, productionSource: licenses US cover Energy 20 Information years. Administration Source: GoUkraineNow EXPLORATION & DEVELOPMENT DRILLING & PRODUCTION PROCESSING TRANSPORTATION Ukraine outlines latest IEA updates EOR project US olefins industry turns US DOE details concessions, production- data, doubling output to face global market Marcellus-Utica sharing agreements forecast Dan Lippe ethane, petrochemical Roman Opimakh 34 36 options 31 49 In-depth phase characterization improves naphtha cracker emulsion breaking Fabrice Cuoq Jérôme Vachon 44 MARCH 5–7, 2019 | SAN ANTONIO, TX USA HENRY B. GONZALEZ CONVENTION CENTER | WWW.SUBSEATIEBACKFORUM.COM Owned & 44 Presented by: Supported by: Hosted by: Produced by: SSTBDev_Petro_180219 1 2/19/18 2:55 PM 190304OGJ001-005.indd 3 2/28/19 12:22 PM HRM FOR THE OIL & GAS INDUSTRY OGJ® In Houston Steven Tobias Hess Corp., Houston Shree Vikas ConocoPhillips Co., Houston Vice President and Group Publisher Clark White Targa Resources Inc., Houston Paul Westervelt, [email protected] Colin Woodward Woodward International Ltd., Durham, UK Editor Bob Tippee, [email protected] Managing Editor-News Steven Poruban, Editorial Offices [email protected] Managing Editor-Technology Christopher E. 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