Oil and gas industry announcements and comments: 26 February 2015

AtlasCopco

AtlasCopco has agreed to acquire Kalibriercentrum Bayern, which specialises in calibration services. The company is headquartered near Munich with an additional laboratory in Kiel, Germany and has 27 employees. The privately owned company provides laboratory and field calibration and related services to customers in such industries as motor vehicle manufacturing and aerospace.

Fluor

Flour Corporation has been named by FORTUNE as the top ranked engineering and construction company in its 2015 World’s Most Admired Companies list. For the fourth year in a row, Fluor earned the top designation among its peers in the engineering and construction market sector. David Seaton, Chairman and CEO of Fluor said, “this accomplishment recognises the commitment of our 40 000 employees around the globe who deliver integrated solutions to our clients on some of the world’s most remote and complex projects. We are a leader in the global engineering and construction industry because of our highly talented and dynamic workforce. It is an honour for them and our company to be recognised for the fourth consecutive year as the best in the market.”

Hein & Associates

Hein & Associates LLP has said that when preparing financial statements for last year, oil and gas exploration companies should consider five key areas that may impact financial statements. Over the years, the world has become familiar with oil price fluctuations and the impact they have on oil and gas financial reporting. The supply of oil is affected by numerous factors including wars, growing economies, regulations, and new discoveries. Last year, crude oil prices were cut in half in just a few months. Starting in August, prices began falling and by year end, they were at their lowest point in over five years.

With 2014 now behind us, Hein & Associates has said that many entities are preparing their financial statements. As oil and gas exploration companies go through this process, it is important to keep in mind that the usual fourth quarter could result in major financial reporting issues and the company has said that there are five areas to consider:

• Impairment of oil and gas properties for full cost companies and successful efforts companies.
• Five year rule on proved undeveloped properties.
• Liquidity concerns.
• Collectability of joint interest billings.
• Derivatives.

The oil prices changes last year have created a number of economic conditions that few people could reliably forecast. As energy producers work hard to adjust their business models to this scenario, it is easy to overlook the impact that these changes may have on 2014 financial statements.

Southwest Research Institute

SwRI has been awarded a five year, US$20.16 million contract by the US EPA to provide testing and analytical services related to vehicle emissions and fuel consumption. Key areas of support include emissions and characterisation and technology assessment. SwRI can develop test procedures and equipment for regulated and unregulated emissions in light and heavy duty vehicles and components as well as marine, railway, small engine, and other non-highway propulsion systems. The contract also calls for evaluating vehicles to ensure compliance with current emissions and other regulatory requirements and safety testing powertrains, batteries and emissions control systems. Technical services include evaluating prototype vehicle propulsion systems and related control, data acquisition, and sampling systems.

Edited from press releases by Claira Lloyd

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