Weatherford International has reported a net loss of US$171mn, or a loss of US$0.17 per share, and a non-GAAP net loss of US$282mn before charges and credits (US$0.28 non-GAAP loss per share) on revenues of US$1.36bn for the second quarter of 2017

The mega-project at Phu Quoc Island, Vietnam to generate growth in the local area, significantly contributing to the modernisation of the economy and supply channel in southern Vietnam 

Petrofac has won a contract extension and a new award with a combined value of more than US$100mn for construction management, engineering, commissioning and start-up services for two international oil companies (IOCs) in Iraq

The new business announcement builds upon US$70mn of new awards in Iraq announced in April, for engineering, operations and maintenance services with two IOCs and South Oil Company, giving the Group good visibility of future work in the country and securing around 250 jobs. The company has built up an extensive track record in the country since 2010.

Mani Rajapathy, managing director, Engineering & Production Services East, said, “We’re delighted the IOCs in Iraq continue to choose Petrofac to support their operations. Iraq is an important market for us and, as evidenced by the number of awards we’ve secured there this year, we’ve consistently proven our delivery and execution capability on behalf of our clients.

“As we move forward, our teams will remain focused on ensuring services are delivered in alignment with our clients’ expectations to enable them to maximise value from their oil and gas assets.”

The fourth meeting of the OPEC and non-OPEC Joint Ministerial Monitoring Committee held on 24 July in St. Petersburg reviewed progress on the November agreement to cut output by 1.8mn bpd, stressing that all participating producing countries must promptly reach full conformity, with ‘room for improvement’ in some participating countries

The committee noted that the oil market is making "steady and significant progress towards rebalancing" and recommended keeping the extension of the agreement as an option “should further action be required for the stabilisation of the market.” 

A particularly positive development was that Nigeria  voluntarily agreed to implement similar OPEC production adjustments as soon as its recovery reaches a sustainable production volume of 1.8mn bpd.

Russian Energy Minister Alexander Novak, who hosted the meeting, said an additional 200,000 bpd of oil could be removed from the market if there is 100 per cent compliance with the OPEC-led deal.

HE Khalid A Al-Falih, Saudi Arabia’s Minister of Energy, Industry & Mineral Resources, noted some positive trends, including the pick up in global demand and the reverse in the build-up in global inventories. Global stocks had fallen by 90mn bbl in the first six months of the year, but were still 250mn bbl above the five-year average for industrialised nations, which is the target level for OPEC and non-OPEC members. “It is only a matter of time before inventories return to more normal levels,” he said.

He acknowledged however that the market had “turned bearish”, with compliance issues, increased Libyan and Nigerian production and US shale forecasts driving this behaviour. 

Prices have fallen below US$50 a barrel in recent weeks, declining by eight percent quarter-on-quarter in Q2 2017, amid higher production in the USA, as well as from Libya and Nigeria. The latter two countries have been exempt from the OPEC/non-OPEC agreement due to political unrest.

Prices rallied following the meeting and Al-Falih’s announcement that Saudi Arabia would limit its crude exports to 6.6mn bpd in August, almost one million bpd below the levels of a year ago. Reports of falling US crude stockpiles also served to bolster the market.

However Jadwa Investment comments in its latest quarterly oil market update, “Any sizable rises in oil supply are likely to be more sharply felt than the potential upside of demand. In particular, doubts remain over OPEC’s ability to, firstly, maintain discipline amongst members and, secondly, prevent sizable increases in supply from Libya and Nigeria. In addition, as the recovery in US oil production continues, with US shale oil supply expected to achieve an all-time record high in the next few months, the risk to oil prices remains firmly skewed to the downside.”