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Australia: Shell Completes Tortilla Survey
Octanex has been advised by Shell Development (Australia) Pty Ltd (Shell) that it has completed acquisition of the new Tortilla 2D seismic survey in the WA-385-P permit.
The Tortilla survey is a relatively small 783 km 2D marine seismic survey that fulfils the final work commitment for the WA-385-P permit in the current term. It was acquired off the North West Cape of Western Australia, largely within the area of the WA-385-P permit.
The survey also acquired ‘tie lines’ between the planned location for the Palta-1 well (to be drilled in the WA-384-P permit to the north) and previously drilled wells Herdsman-1 and Pendock-1A to the south and Falcone-1A to the north-east.
The acquisition of the Tortilla 2D survey was timed to avoid the humpback whale migration and took place over the last 10 days of March. As part of a range of management measures, Shell elected that the seismic survey would not come within a 10 km buffer zone to the outer boundary of the Ningaloo World Heritage Area.
Shell has committed to drill the Palta-1 exploration well in the WA-384-P permit and has received environmental approval for the drilling operations. The WA-384-P permit is adjacent to WA-385-P where the Tortilla 2D seismic survey was acquired.
Shell has advised that drilling operations on Palta-1 are being planned for Q3 2012, subject to their receiving all required regulatory approvals. The well is to be drilled in water depths of approximately 1350m and to a total depth of 5325m – 5675m. The Octanex Group originally held 100% of the WA-384-P, WA-385-P and WA-394-P permits that are located in the southern Exmouth Sub-basin.
In 2008, Octanex concluded an agreement with Shell for the disposition of a 100% working interest in each of the three permits. Octanex holds residual rights in each of the permits in the form of discovery payments and a 1% royalty over any production from the permits, as well as rights of re- conveyance.
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INPEX Orders USD 2 bln FPSO from DSME (South Korea)
The second largest shipbuilder in the world, Daewoo Shipbuilding and Marine Engineering, Co, announces that it has received an order to construct a giant Floating Production Storage and Offloading vessel (FPSO).
The order comes from a Japanese oil giant, INPEX and is a part of the company’s Ichthys project, offshore Australia.
Daewoo made the announcement on the Korea Exchange, saying that the estimated worth of the project is $2 billion.
The FPSO will serve for offshore storage and export of condensate from the Ichthys field. The condensate will be transferred from the CPF to the FPSO and, further, it will be exported from the FPSO via a floating loading hose to offtake tankers.
The vessel will also treat and dispose of produced water. It will be located approximately 2 km from the Central Processing Facilitiy and will contain liquid (condensate and water) treatment facilities, living quarters and associated utilities.
South Korea’s shipbuilders have benefited greatly from the INPEX’s Ichthys project. Samsung Heavy Industries Co Ltd has recently received a $2.71 billion order for the construction of an offshore central processing facility (CPF) for the Ichthys project.
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Australia: Tap Taps into Tallaganda
Tap Oil Limited (Tap) advises that at 0900 hours (AWST) today the Atwood Eagle semi-submersible drilling rig commenced drilling the Tallaganda-1 exploration well in the WA-351-P permit.
The Tallaganda-1 prospect straddles both the WA-351-P and WA-335-P permits in the Carnarvon Basin, offshore Western Australia. The well will target 0.8 to 1.3 Tcf (mean to P10) of gas within WA-351-P (Tap estimate).
The prospect will test the gas potential of sandstones in the prolific Triassic age, Mungaroo Formation, in a well defined horst block as imaged by high quality modern 3D seismic data. This is the primary play type of the North West Shelf.
The well will be drilled as a vertical well in a water depth of 1,141 m and is expected to take 37 days (trouble free) to drill with a projected total depth of 4,250 m. Weekly updates will be provided on Wednesdays during drilling operations.
Tap’s cost for the well will be carried up to a cap of $10 million following Tap’s farmout of 25% of its participating interest in the permit to BHP Billiton Petroleum (North West Shelf) Pty Ltd in 2011.
Tap’s Managing Director/CEO, Mr Troy Hayden, said:
“We are pleased to have commenced the Tallaganda-1 well which has the potential to deliver a resource multiple times larger than Tap’s current 2P reserves. Success at Tallaganda-1 will also give greater certainty as to the prospectivity of the Triassic potential on the permit.”
Background
The Operator completed a detailed assessment of the plays, prospects and leads in the permit in 2010 including the 3D seismic acquired in 2008. Further leads and prospects have been defined in the Triassic Mungaroo Formation which Tap has assessed as a 2-3 Tcf combined speculative resource on block.
Additional leads have been identified in WA-351-P in the Jurassic and Early Cretaceous, both of which are productive elsewhere in the Carnarvon Basin. Current indications are that this shallower potential is larger, but higher risk, than the Triassic in this permit. Further work will be done on these objectives.
WA-351-P Joint Venture Participants
BHP Billiton Petroleum Pty Ltd (Operator)
BHP Billiton Petroleum (Northwest Shelf) Pty Ltd 55%
Apache Northwest Pty Ltd 25%
Tap (Shelfal) Pty Ltd 20%
Australia: Tap Taps into Tallaganda| Offshore Energy Today.
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South Korea’s Samsung Wins USD 1.1 bln Order for Two Drillships
Samsung Heavy Industries (SHI), one of South Korea’s “Big Three” shipbuilding companies says it has received an order for the construction of two drillships.
The order’s estimated value is approximately USD 1.1 billion and it comes from a “large-scale” American corporation. According to the contract details posted on the Korea Exchange (KRX), SHI will make the deliveries no later than August 31, 2014.
This has been a fruitful month for Samsung Heavy Industries. On February 13, the company announced it had received the order from INPEX for the construction of an offshore central processing facility (CPF) for the Ichthys LNG project in Australia.
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Australia: Shore ASCO to Build Darwin Marine Supply Base
ShoreASCO Consortium, which includes Asco Holdings, Macmahon Contractors and Capella Capital has been awarded a contract to design and construct the world-class Darwin Marine Supply Base, worth approximately $110 million.
Macmahon Contractors will construct the base which will include three marine berths with water, fuel, chemical and drilling mud connections, hard stand and lay down areas, warehousing, waste management facility, storage capacity for drilling muds, chemicals, water and fuel, office space and associated facilities.
Chief Executive Officer of Macmahon, Nick Bowen, said the project was a fantastic opportunity for Macmahon and continues the Company’s delivery of major infrastructure in the Northern Territory. “The supply base will bolster Darwin and the Territory’s reputation as the port of choice for servicing the needs of the offshore industry and is opportunity for Macmahon to establish another piece of major infrastructure, critical to supporting the Territory’s growth,”
The base will be operated by ShoreASCO for up to 20 years. Construction is expected to start in April 2012 and is expected to be complete by the end of 2013.
Paul Henderson, the current Chief Minister of the Northern Territory, Australia has welcomed the signing of the contract, saying the construction would begin in the coming months on the base which would cement Darwin’s position as a major oil and gas hub.
The Minister revealed that Oil & Gas majors have already shown interest in the Marine Supply Base: “Already major players have come on board to take advantage of our world class Marine Supply Base with ConocoPhillips to use if for their existing operations, INPEX confirming they will using the base during their multi-billion gas development and Shell confirming they will use it to service their floating LNG plant in the browse basin.”
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China: COSCO Orders Ellis’ Cleats for New Drillship ‘Dalian Developer’
Yorkshire-based cable cleat manufacturer, Ellis has turned the tables on the international trend for cheaply manufactured products from the Far East being sold into the UK by securing a significant order from China.
The company’s Emperor cleats have been specified by COSCO Engineering for installation on the Vantage Drilling Company’s new drill ship, the Dalian Developer. The order was secured as a result of the company’s persuasive technical argument, which highlights the vital importance of correctly tested and specified cable cleats.
Tony Conroy, the export sales manager for Ellis, explains: “The growth in cheaply manufactured cleats has certainly muddied the picture in recent times, but we have always remained confident that our approach would eventually see our technically superior products come to the fore in China.”
Ellis’ technical approach has brought the company widespread global success and its cleats are now used in a number of major projects in the oil, gas and power generation industries including Lusail City in Qatar and the Kashagan project in Kazakhstan.
“It certainly seems like our technical and safety based message is really striking home,” continued Conroy. “People now know that underspecified cleats can pose serious safety issues. And when you consider the amount of money some of the projects we’re working on are worth you certainly wouldn’t want to be the specifier who cut costs by ordering cleats that were simply not suitable for the job.”
Ellis is supported by a worldwide network of specialist distributors covering Europe, Middle East, Asia, South America, Australia, Kazakhstan and the United States. For this latest order the company’s export team worked closely with Hong Kong distributor, Wang Yip Hong (J&P) Limited and its Chinese partner, Senkori Trading (Dalian) Co.
The $500million Dalian Developer is being built at COSCO’s Dalianshipyard in China and is due for completion in July 2012. It is a MPF 1000 6th Generation Ultra Deepwater Drillship for use in harsh environments, has a hull size of 291m x 50m, and is designed to drill wells at ultradeep water depths up to 10,000ft and drilling depths exceeding 30,000ft.
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Continents of the World


