Chevron moves further ahead in Latin America; Total commits to Qatar; Shell and BP face cost challenge in engineer shortage.
Following last month's announcement of progress in Mexico, Chevron continue to focus on Latin America with news that it is set to negotiate a heavy oil project in the Orinoco Oil belt. Chevron Venezuela are negotiating participation in prospecting three blocks in the Faja area, covering some 557km2. Negotiations will be in partnership with Petroleos de Venezuela SA.
Meanwhile, Total pledged its continued commitment to investing in Qatar. The company produces an average of 35,000bpd in the State and is aiming to renew its Al Khalij Oilfield licence, where Total claims to have invested more than $1bn. Total also has significant stakes in a number of petrochemical projects in Qatar.
And an article in Bloomberg's Business Week highlights the challenges Shell and BP's dramatic cost cutting activities may face in their as a result of increased drilling. With crude oil prices continuing to rise, says Bloomberg, drilling projects previously on hold are being revitalised. A global shortage of engineers and geologists could lead to cost inflation rather than reductions, although oil service companies are set to benefit.