Blog Archives

Worldwide Field Development News Oct 13 – Oct 19, 2012

This week the SubseaIQ team added 0 new projects and updated 13 projects. You can see all the updates made over any time period via the Project Update History search. The latest offshore field develoment news and activities are listed below for your convenience.

S. America – Brazil

Petrobras Confirms Oil at Carioca Norte

Oct 18, 2012 – Petrobras confirmed the presence of light oil in appraisal well 3-BRSA-1101-SPS, informally known as Carioca Norte, in block BM-S-9 offshore Brazil. Schahin’s Vitoria 10000 drillship drilled the well to a total depth of 18,293 feet. Results from the well are similar to three others drilled in the Carioca area. The partners in the block will now proceed with their appraisal plan which has been approved by Brazil’s ANP.

Project Details: Carioca

Australia

Shell Cuts Steel on Prelude FLNG

Oct 18, 2012 – Shell and its partners announced steel cutting for what will be the world’s first floating liquid natural gas facility. When complete, the Prelude FLNG vessel will be 1,600 feet long and 242 feet wide and will be the largest offshore floating facility ever built. Prelude will be deployed approximately 120 miles off the Australian coast in block WA-44-L serving the Prelude and Concerto fields. FLNG technology will eventually make it economical to develop gas fields that are currently considered too far from shore or to remote to produce. The facility is expected to receive first gas some time in 2017. At peak production the facility will deliver 3.6 million tons of LNG and 400,000 tons of LPG per year.

Project Details: Prelude

Testing Underway at Boreas-1

Oct 17, 2012 – Karoon Gas announced the Transocean Legend (mid-water semisub) has commenced testing of the Boreas-1 exploration well. Upon bringing in the well, a stabilized flow rate of 30.2 Mmscf/d was achieved through a 40/64 choke. The company notes that flow rates were limited by the surface equipment being used. Flow is being assessed from a 229-foot perforated reservoir section in the primary Plover formation at a depth of 16,089 feet. Testing should last five days with the goal of determining the overall deliverability of the primary reservoir which if a part of the Geater Poseidon structure. The next two wells in the drilling program, Zephyros-1 and Proteus-1, are designed to test the east and west flanks of Greater Poseidon Trend.

Project Details: Boreas

Africa – West

FMC Wins Pazflor Subsea Contract

Oct 19, 2012 – FMC Technologies has been awarded a $33 million equipment contract to supply three additional subsea well systems to Total for its Pazflor project offshore Angola. FMC supplied the initial deepwater production systems that have now been in operation for just over a year. Three of the four Pazflor reservoirs contain very heavy, viscous oil and relatively low reservoir pressures. Subsea separation and pumping is the key enabling technology making production of the heavy oil possible.

Project Details: Pazflor

Aker Books Deep Water Angola Work

Oct 17, 2012 – Eni, operator of block 15/06 offshore Angola, awarded a $50 million-contract to Aker Solutions to participate in the West Hub development project. Aker’s work scope will include engineering, procurement, fabrication and supply of 21 miles of static and dynamic steel tube umbilicals, as well as the associated equipment and peripherals. Delivery is booked for 1Q 2014. Once active, West Hub will draw from the Sangos, Ngoma and Cinguvu fields.

Project Details: West Hub

S. America – Other & Carib.

Rockhopper Premier Finalize Farm-Out

Oct 19, 2012 – Rockhopper announced the completion of the Premier Oil farm-out agreement. Rockhopper will receive a $231 million cash payment and Premier will obtain a 60% interest and operatorship of Rockhoppers licenses off the Falkland Islands. The cash payment will see Rockhopper’s share of Sea Lion fully funded through first oil which is expected 3Q 2017. Both companies are fully aligned on the project and expect to have a development concept by mid 2013. The partners are also discussing other Falklands area exploration prospects and a 2014 drilling campaign.

Project Details: Sea Lion

Europe – North Sea

Fram H to Get 4-Slot Template

Oct 19, 2012 – Statoil and its partners have approved the installation of a 4-slot standard template at Fram H North in the Norwegian North Sea. The template is to be tied-back via flexible pipeline to Fram West which supplies production to the Troll C platform. Installation of subsea equipment, pipelines and control cables is planned for summer 2013. The project will help maintain high flowline temperatures to avoid the use of scale wax inhibitors between Fram and Troll C. Estimates indicate Fram H contains recoverable resources of 10 Mmbeo.

Project Details: Troll Area

OMV Buys Stake in Edvard Grieg

Oct 17, 2012 – RWE Dea has elected to sell its 20% stake in the Edvard Grieg development offshore Norway to OMV for $325.2 million. A contingent payment of almost $46 million is available based on the achievement of certain operational milestones. This acquisition gives OMV access to 2P reserves in excess of 38 Mmboe and net production up to 19,000 boepd in 2016 once the field is brought on stream. The Plan of Development and Operations has already been approved by the Norwegian Parliament and all major contracts for drilling and platform construction have been awarded. OMV will share partnership with Lundin (operator 50%) and Wintershall (30%). The agreement is subject to approval by the Norwegian Ministry of Petroleum and Energy and by the Norwegian Ministry of Finance.

Project Details: Edvard Grieg (Luno, Ivar Aasen) Project

Maintenance Delay at Buzzard

Oct 16, 2012 – A scheduled maintenance shutdown of the Nexen-operated Buzzard platform in the UK North Sea has lasted longer than predicted. Nexen’s original plan was to bring the platform back online mid-October but startup will have to wait another week. The delay has resulted in one cargo being dropped from the November Forties loading program. Forties is the main component of the global benchmark Brent which is used to price most of the world’s oil. Buzzard is the largest Forties producing field and issues there tend to provide strong support to Brent oil futures.

Project Details: Buzzard

Eni To Begin Drilling At Goliat

Oct 16, 2012 – Drilling at the Eni-operated Goliat field will begin near the end of October by the Scarabeo 8 (UDW semisub). Appraisal well 7122/7-6 is expected to take 50 days to drill. A 3 ?? year development drilling phase, consisting of 22 wells drilled from 8 subsea templates, will begin upon completion of the appraisal well. The templates will eventually be tied to a circular floating production facility with an integrated loading and storage system. Total development cost of Goliat is estimated at $5.2 billion. After start-up, production is expected to plateau at 100,000 barrels per day.

Project Details: Goliat

Drilling Underway at Spaniards East

Oct 15, 2012 – Drilling operations at the Premier Oil-operated Spaniards East prospect are underway in the UK North Sea. Awilco Drilling’s WilPhoenix (mid-water semisub) is expected to be on location for roughly 40 days. The Spaniards discovery was made in 1989 and flowed 2,660 barrels per day. Spaniards East will test the down-dip potential ?? mile to the east of the discovery well. Successful results from this well could cause the partners in the license to accelerate appraisal plans for the area.

Geite Comes Up Dry

Oct 15, 2012 – Det norske and its partners announced disappointing results at the Geite prospect offshore Norway. Well 7/11-13 encountered Triassic sandstones as planned but were proved to be void of hydrocarbons. The well will now be plugged and abandoned as a dry hole.

Project Details: Geite

Asia – SouthEast

EOC Bags FPSO Upgrade Project

Oct 18, 2012 – Premier Oil awarded a $15 million contract to EOC Limited in relation to the upgrade of FPSO Lewek EMAS. Under the contract, EOC will provide project management, engineering and procurement services for modifications that are necessary to accommodate a subsea tie-back that will link the vessel to the nearby Dua oil field in Block 12E offshore Vietnam. The Lewek EMAS is currently in operation in the Premier-operated Chim Sao field. Once the project is completed in late 2013, the FPSO will produce both fields. All modifications will be made in the field without taking the vessel offline.

Project Details: Chim Sao

Other

Tullow Farms Into Greenland Block

Oct 15, 2012 – Greenland’s Government approved an agreement between Maersk Oil and Tullow in which Tullow will take a non-operated 40% interest in Block 9 located off the nation’s western coast. Maersk Oil will maintain operatorship of the block with 47.5% interest and state oil company Nunaoil will hold the remaining 12.5%. Block 9 is also referred to as the Tooq license and covers an area of 7,333 square miles. Decision to drill an exploration well will be made once 3D seismic is acquired and processed, which will last through 2014.

Borders & Southern Prepares for Darwin Discovery Appraisal (Falkland Islands)

Borders & Southern Prepares for Darwin Discovery Appraisal (Falkland Islands)| Offshore Energy Today

Borders & Southern has announced the results of the Darwin fluid sample analysis. As previously reported, well 61/17-1 encountered a good quality sandstone reservoir comprising 67.8m of net pay with an average porosity of 22%. The gas condensate reservoir was sampled at four separate levels with 3 fluid samples taken at each level.

The initial condensate yield from the Darwin gas samples, as measured in a laboratory separator test, varies from 123 to 140 stb/MMscf. The API gravity of the condensate is 46 to 49 degrees. Based on the condensate yield and ongoing reservoir modelling, the Company estimates the recoverable volume of condensate to be 130 to 250 million barrels with a mid case of 190 million barrels.

Following these positive laboratory results, the Board will approve a work programme that includes appraisal drilling of the Darwin discovery. Additional wells are necessary to confirm the initial resource estimates and establish a commercial development. In the coming months, activity will focus on a comprehensive technical evaluation of all the data collected from well 61/17-1 and a review of potential development concepts along with project economics.

These results have exciting implications for the Company’s prospect and lead inventory and particularly for those prospects in the Lower Cretaceous play fairway to the south of the Falkland Islands. Borders & Southern’s prospect inventory contains further relatively low risk structural prospects of a similar size to Darwin along with stratigraphically trapped fans of slightly higher risk but larger scale. Some of these prospects will be targeted in the next drilling phase with the objective of adding to the discovered resources of Darwin and building a core development area.

“Discussions with a seismic contractor regarding the acquisition of additional 3D seismic are in progress and we plan to have a vessel in the Falklands at the start of 2013 to commence the survey,”said Borders & Southern in a statement.

This survey will focus on similar prospects to Darwin currently outside our existing 3D area. Whilst the final costs of the 2012 drilling programme will not be fully known until after the demobilisation of the rig later in the year, the Company can state that it is fully funded for the 3D seismic acquisition and processing, the reprocessing of the Company’s 2007 3D seismic data and all the technical studies that need to be undertaken on the samples collected from the two wells.

Given the encouraging results from the Darwin well, the Company will start planning the next drilling programme, which is likely to include both exploration and appraisal wells. The company has said that the the timing of drilling will be dependent on rig availability, but “realistically this will not occur before 2014“. The Company is currently exploring the best way to fund the next phase of the programme, including the possibility of now bringing in partners.

Borders & Southern Prepares for Darwin Discovery Appraisal (Falkland Islands)| Offshore Energy Today.

Recap: Worldwide Field Development News Jul 6 – Jul 12, 2012

This week the SubseaIQ team added 1 new projects and updated 20 projects. You can see all the updates made over any time period via the Project Update History search. The latest offshore field develoment news and activities are listed below for your convenience.

N. America – US GOM

Noble Decides Not to Appraise Deep Blue

Jul 11, 2012 – Noble Energy reported that appraisal drilling will not occur at its Deep Blue prospect at this time. Although hydrocarbons were found in both the initial exploration well and subsequent sidetrack, the company and its partners have decided not to proceed with additional appraisal activities right now. The Deep Blue well was originally spud late 2009 and sidetrack operations were underway when the moratorium was announced. Noble Energy was required to suspend operations and the rig working at that time was released. After the moratorium was lifted, another rig was certified under new regulatory requirements to finish the sidetrack.

Project Details: Deep Blue

Expro to Provide Subsea Trees for Who Dat Development

Jul 10, 2012 – LLOG granted Expro a contract for the Who Dat development in the Gulf of Mexico. The company will provide subsea test trees for the project on Mississippi Canyon Block 547.

Project Details: Who Dat

ATP Announces Completion of MC 941 A-2 Telemark Well

Jul 9, 2012 – ATP has completed a workover at its Mississippi Canyon Block 941 A-2 well located in the Mirage field at the Telemark Hub. The well was completed with 3-1/2 inch tubing at a measured depth of 17,140 to 17,401 feet (5,224 to 5,304 meters) to add the Miocene B sand completion to the wellbore for field development optimization. Initial test flow rates are at 4,000 barrels equivalent per day (boepd) of which 90 percent is oil. The A-2 well will be tied-back to the facility and is expected to produce at a rate of 4,000 to 5,000 boepd. The MC 941 A-2 well produces through the ATP Titan floating drilling and production platform.

Project Details: Telemark

S. America – Other & Carib.

Premier Farms Into Falkland Licenses

Jul 12, 2012 – Premier Oil has agreed to pay an initial $231 million to farm into Rockhopper Exploration‘s license interests in the Falkland Islands in the South Atlantic. Premier Oil will acquire a 60 percent interest in the licenses, with the deal including a provision for Premier to pay an additional $48 million for further exploration within the license areas and an additional $722 million to develop reserves found there (subject to the approval of a field development plan).

Project Details: Sea Lion

Europe – North Sea

Technip Inks Aasta Hansteen Platform Deal

Jul 12, 2012 – Statoil awarded Technip a letter of intent to construct a hull of a spar platform on the Aasta Hansteen field. The platform will be the world’s largest Spar platform and the first of its kind on the Norwegian continental shelf. Total recoverable reserves for Aasta Hansteen, previously called Luva, are preliminary estimated at about 47 Bcm of gas and .8 Bcm of condensate. The platform, the first spar with storage capacity, will have the capability to store about 25,000 square cubic meters of condensate and export gas via the Norwegian Sea Gas infrastructure. The supplier will also design and prepare specifications for steel rigid risers and a complete mooring system. Part of the work will begin in the middle of August, with completion of deliveries set for mid-December 2015. This letter of intent will contribute to securing the overall progress plan for Aasta Hansteen. The investment decision is expected in late 2012/early 2013, with production start-up at the end of 2016.

Project Details: Aasta Hansteen (Luva)

Bentley Pre-Production Flow Test Performs Well

Jul 12, 2012 – Xcite Energy reported that pre-production flow test on the Bentley field is progressing well with the planned shut-in period and pressure build-up test commencing on July 11 following the initial, successful, clean-up and first oil flow on July 9. This planned shut-in period and pressure build- up test is designed to obtain key information about the Bentley reservoir and the mobility of its fluid for use in interpreting the subsequent flow data and for planning the next step of the Bentley field development.

Project Details: Bentley

Talisman Evacuates Personnel from Yme Platform

Jul 11, 2012 – Talisman Energy has evacuated construction personnel from the Yme oil platform in the Norwegian sector of the North Sea after structural issues were discovered. The operator removed 140 workers from the Yme platform late Tuesday after finding weaknesses in the platform’s supporting structure. Dow Jones reported that in May the company took a $250 million write down on the project and delayed production for an unspecified amount of time. It also said the standards to which the platform had been built had fallen behind Norwegian standards. Oil production was scheduled to start next year.

Project Details: Yme

Ithaca Spins Bit at Hurricane Appraisal

Jul 10, 2012 – Ithaca Energy has commenced exploratory drilling on the Hurricane appraisal well in Block 29/10b, which lies within the Greater Stella area in the UK sector of the North Sea. The well is being drilled by the WilHunter (mid-water semisub). Drilling should take between 75 to 85 days to complete, including the performance of a drill stem test. The Hurricane discovery well, 29/10-4z, was drilled by Shell in 1995. The well encountered 41 degrees API light oil in Eocene Rogaland sands in the western lobe of the structure. The appraisal well will be drilled to the base of the Tertiary section in the eastern lobe of the mapped structure and is designed to satisfy three primary objectives: to confirm the nature and volume of recoverable hydrocarbons; calibrate the hydrocarbon contact with seismic amplitude; and verify the distribution, quality and connectivity of the reservoir. Upon successful completion of the appraisal well objectives, the wellbore will be suspended for future re-entry and completion as a production well.

Project Details: Stella/Harrier

WGP Completes LoFS on Valhall

Jul 10, 2012 – WGP has completed the 15th Life of Field Seismic (LoFS) survey over the Valhall field in the North Sea for BP. The company acquired the full data set of 2,552 kilometers in six weeks, which included time for mobilization and demobilization. This data will help enhance the life of the Valhall field, stated the company.

Project Details: Valhall

Barryroe Discovery Could be Larger than Anticipated

Jul 9, 2012 – Providence Resources might be sitting on more than one billion barrels of oil in place at its Barryroe discovery, according to a research report issued by oil analysts at London-based Liberum Capital. The research note stated that Liberum estimates Barryroe could contain around one billion barrels of oil in place and more than 160 million barrels of recoverable oil based on technical disclosures concerning the Barryroe well made by Providence. These figures are around three times what investors in Providence are expecting from Barryroe, according to Liberum.

Project Details: Barryroe

Xcite Energy Signs Loan Deal for Bentley Phase 2 Development

Jul 9, 2012 – Xcite Energy has signed a five-year, $155 million loan agreement with a group of lending institutions, secured against oil reserves, which will provide funding for Phase 1B development of its Bentley heavy oil field. The loan facility is subject to certain conditions and the achievement of targets in the Bentley Phase 1A development work program, including the drilling of a well and a flow test.

Project Details: Bentley

PSA Audits Statoil’s Compliance During Module Construction for Gudrun

Jul 6, 2012 – The Petroleum Safety Authority Norway (PSA) conducted an audit of Statoil’s compliance with regulatory requirements during engineering and construction of the wellhead and process modules for the Gudrun facility. The audits were conducted in Asker from May 8-9, 2012 and on the construction site in Thailand from May 14-16, 2012 and focused on electrical systems, instrumentation and technical safety disciplines.
The objective of the audit was to ensure Statoil’s compliance with requirements to establish and implement technical and operational barriers. Special emphasis was placed on how Statoil and its partner Aibel, promotes the understanding of interactions between operator, development project, suppliers and operations preparations. Two nonconformities were identified in relation to the system for electrical power supply and for establishment of barrier performance requirements. Improvements were suggested for flame detection and the command structure in the emergency shutdown system.

Project Details: Sleipner Area

BP Receives Go Ahead for Use of Safe Scandinavia on Valhall

Jul 6, 2012 – BP Norge AS (BP) received approval from Norway’s Petroleum Safety Authority (PSA) to use the Safe Scandinavia facility as a flotel on the Valhall field from July 1, 2012 to January 1, 2013. Aker Verdal’s Safe Scandinavia was built in 1984 and has been contracted for the Valhall field numerous times with the last contract expiring in March 2012. The 583-bed facility received the PSA’s Acknowledgement of Compliance in April 2007.

Project Details: Valhall

Asia – SouthEast

Lundin Begins Malaysian Drilling Campaign

Jul 10, 2012 – Lundin Petroleum has commenced its 2012 Malaysian drilling campaign with the spud of the Tiga Papan 5 well in the SB307 & SB308 Blocks offshore Sabah, East Malaysia. The well will target mid-Miocene aged sands of the Tiga Papan unit previously tested (in 1982) with the original discovery well that flowed at a cumulative rate of 5,631 bopd. A vertical well will test the un-appraised fault block to the east of the original Tiga Papan 1 discovery well. In the event of a discovery, the well will be sidetracked into the same fault block as the original discovery well to test the down dip extension of the pay zones previously encountered. The well will be drilled with the Offshore Courageous (350′ ILC) in a water depth of approximately 164 feet (50 meters) to a depth of 5,482 feet (1,671 meters). The well is the first of the five-well program planned in 2012 by Lundin Malaysia BV.

PTTEP: Oil Production at TGT to Hit 55,000 BPD

Jul 9, 2012 – PTTEP reported that oil production from the offshore Vietnam 16-1 project will hit 55,000 bopd by the fourth quarter of this year due to the successful installation of a second wellhead platform. Oil production at the Te Giac Trang (TGT) field, where the newly installed wellhead is sited, is currently at 41,000 bpd. The TGT field is located off the southern coast of Vietnam, 62 miles (100 kilometers) from Vung Tau province. The project consists of a floating, production, storage, and offloading unit, two wellhead platforms and a subsea pipeline system. The development came online in August 2011.

Project Details: Te Giac Trang (White Rhinoceros)

N. America – US Alaska

BP Shelves Liberty Oil Project Offshore Alaska

Jul 11, 2012 – BP is shelving its Liberty project in Alaska after deciding that the current development plan is not up to the stricter standards the company has enforced, reported Dow Jones. The oil project was anticipated to produce about 40,000 bopd. The company stated it is working with regulators to discuss potential ways to move the project forward.

Project Details: Liberty

Africa – West

Exxon Starts Production from Clochas Mavacola Oil Project

Jul 9, 2012 – ExxonMobil has commenced production at the Kizomba Satellites Phase 1 project offshore Angola, and is expected to produce 100,000 bopd from two large deepwater fields, Mavacola and Clochas. The initial phase of the Kizomba Satellites project ties 18 new wells to production facilities already in use tapping other oil fields in the Block 15 area.

Project Details: Kizomba, Block 15

S. America – Brazil

Total Acquires Xerelete Field

Jul 10, 2012 – Total became operator of the offshore Xerelete concession, located around 155 miles (250 kilometers) off the coast of Rio de Janeiro. The oil field, discovered in 2001, contains relatively heavy oil. A pre-salt prospect has also been identified below the Xerelete structure, which lies around 25 miles (40 kilometers) west of the recently announced Pao de Acucar discovery. Total plans to start drilling activities in 2013. Total and Petrobras each hold a 41.2% interest in the concession, while BP holds the remaining 17.6 %.

Vanco Spuds Sabia

Jul 9, 2012 – Vanco has spud the Sabia well in the BM-S-72 block in the southern Santos Basin offshore Brazil. The well is being drilled by the GSF Arctic I (mid-water semisub). The Sabia well is located offshore approximately 143 miles (230 kilometers) south of the city of Santos in a water depth of approximately 656 feet (200 meters). The well will be vertically drilled with a target depth of 14,718 feet (4,486 meters). The primary reservoir target for this well is post-salt sandstones of the Itajai-Acu formation, expected to be encountered at around 12,139 feet (3,700 meters) below mean sea level. The prospect is also targeting secondary sandstone in the Ilha Bela member of the Jureia formation. Drilling operations should take about two to three months, and after finishing this well the rig will drill the Canario prospect (BM-S-63) and the Jandaia prospect (BM-S-71).

Project Details: Sabia

Mediterranean

Noble Energy to Flow Test Pinnacles Reservoir

Jul 10, 2012 – Noble Energy has completed an extensive test of the Pinnacles 1 well and its production facilities. The operator will now flow test the Pinnacles reservoir, during which the gas composition and gas treatment measures will be tested. Flow tests are expected to begin in the near future and last for several days.

Delek Updates Tanin’s Contingent Resources

Jul 10, 2012 – Delek Group has reported details on the Tanin reservoir, specifically, 81 percent of the high estimate of Tanin’s contingent resources is within the Alon A licenses, and that the rest is within the Alon B and Amit licenses. The low and best estimates are wholly within the Alon A license, stated Netherland Sewell & Associates. NSAI contingent estimates for Tanin are as follows: low estimate of 160 billion cubic feet (Bcf); best estimate of 592 Bcf, and a high estimate of 1,035 Bcf. The prospective estimates are: low estimate of 359 Bcf; best estimate of 471 Bcf, and a high estimate of 607 Bcf. The best estimate for Tanin’s proven and contingent reserves makes it the third largest natural gas discovery after Delek and Noble Energy’s Tamar and Leviathan discoveries of 9.7 trillion cubic feet and 17 trillion cubic feet, respectively.

Project Details: Tanin

Australia

Total Increases Ichthys Stake

Jul 12, 2012 – Total has increased its stake in the Ichthys LNG project to 30 percent through the acquisition of a further 6 percent interest from its partner INPEX. Total commented that the acquisition will not have an impact on any of the LNG offtake agreements that have been arranged.

Project Details: Ichthys

Technip Wins $61M Subsea Contract for Balnaves Field Development

Jul 10, 2012 – Apache Energy awarded Technip a subsea installation contract worth around $61 million for the Balnaves oil field development. The project is situated in a water depth of about 442 feet (135 meters). The contract covers the project management, design, engineering and installation of 4.3 miles (7 kilometers) of flexible flowlines and risers and 1.9 miles (3 kilometers) of umbilicals. It also includes the transportation and installation of the subsea equipment including the manifolds, spools, flying leads, jumpers and a mooring system and riser column. First production from the $438-million development is scheduled in 2014, with gross peak production of approximately 30,000 barrels of oil per day and estimated gross recoverable resource of 17 million barrels of oil and 30 billion cubic feet of gas.

Project Details: Balnaves

Argentina warns Falklands’ oil companies of May 2 deadline when legal actions begin

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Argentina once again warned oil companies considered by the Government to be “illegally operating” in the Falklands/Malvinas Islands, and reiterated it will press charges against them unless they justify their actions before next Wednesday, May 2.

Thursday, April 26th 2012 – 01:33 UTC

In a recent statement released to the press, the ministry said that on last April 17th, all oil companies currently performing exploration tasks in the ‘Malvinas basin’ were notified “of their clandestine actions and their consequences” by the Argentine embassy in the United Kingdom.

The companies notified were Argos Resources, Rockhopper Exploration, Borders and Southern PLC, Falkland Oil & Gas Ltd and Desire Petroleum PLC.

The Argentine government has set a May 2 deadline for companies to justify their activities.

“If case of failure to offer a response and once the legal deadline expires, we will issue the corresponding sanctions to every company according to a resolution by the Argentine Energy Secretariat, which considers these activities to be clandestine. The Government will also proceed to press criminal and civil charges,” the ministry warned.

The Foreign Affairs release states that by doing this they “reaffirm Argentina’s decision to defend the nation’s sovereign rights by any peaceful means possible – both legal and diplomatic- as well as the country’s natural resources, which belong to the Argentine people.”

Source

Britain reassures banks over Argentina’s Falklands threats

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The British Government has told the Falklands and companies working there that it will defend the protectorate against Argentine aggression. Photo: Reuters

The Foreign Office has sought to reassure British and American banks threatened by the Argentine government over their involvement in the Falkland Islands oil industry.

By James Quinn
9:30PM BST 21 Apr 2012

The Government, in a move designed to ease concern among the investment community about the Argentine legal threats, has written to some 15 banks and oil exploration companies operating in the region.

The move comes as Argentina faces international condemnation for its seizure of Repsol’s majority stake in YPF, Argentina’s largest oil company, last week.

In the new letter, the Foreign Office says it is “deeply sceptical” that Argentina would be able to enforce “any penalties” in courts outside its own borders. It adds that the government of the Falklands “is entitled to develop” oil and fishing industries in its own waters “without interference from Argentina.”

“The British Government has no doubt about our sovereignty over the Falkland Islands and surrounding maritime areas,” it adds.

News of the letter follows The Sunday Telegraph’s revelation that the Argentine government had written to banks involved in the Falkland oil industry threatening them with legal action. In writing to the banks concerned, including broker Oriel Securities and Royal Bank of Scotland, the Government has sought to not jeopardies the fledgling Falkland oil industry.

Related Articles

Edison Investment Research, which has published research on the value of oil around the islands , slammed the attempts to silence it.

“Edison Investment Research firmly believes in the right for all financial institutions, publishers and in particular financial research houses such as ours to be able to exercise their right to provide independent analysis of all quoted companies wherever they are listed and wherever their operations may be carried out,” said Edison’s Fraser Thorne.

Source

Recap: Worldwide Field Development News (Jan 27 – Feb 2, 2012)

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This week the SubseaIQ team added 7 new projects and updated 86 projects. You can see all the updates made over any time period via the Project Update History search. The latest offshore field develoment news and activities are listed below for your convenience.

S. America – Venezuela
Repsol Begins Developing Perla Field
Feb 2, 2012 – Repsol has drilled five gas wells and plans to place each in production using offshore platforms and underwater connections, which will carry the gas onshore. The gas will be processed and sent through the Venezuelan distribution network. Repsol will develop the project in phases, with the first phase entailing an estimated investment of $1.5 billion, including the exploration and evaluation phase in which 300 MMcf/d of gas is expected to be produced. In the next two phases, production is set to rise fourfold to 1.2 Bcf/d, which will be maintained until the end of the contract in 2036.
Project Details: Perla
S. America – Other & Carib.
Borders & Southern Spuds Darwin East
Feb 1, 2012 – Borders & Southern Petroleum have spud exploratory well 61/17-1, which is designed to test the Darwin East prospect off the Falkland Islands. The prospect is a fault/dip closed structure with lower Cretaceous sandstone, reservoir target. Additionally, the exploration well will investigate geophysical attributes that include a flat spot, amplitude conformance to structure and an AVO (amplitude versus offset) anomaly. The Leiv Eiriksson (UDW semisub) is drilling the well and should take roughly 45 days to complete. Darwin East is located in the South Falklands Basin in the South Atlantic, about 87 miles (140 kilometers) south of the Falkland Islands.
Project Details: Darwin East
Bayfield Spuds Trinidad Well
Jan 27, 2012 – Bayfield Energy expects to spud the first well in its drilling campaign in its Galeota license offshore Trinidad. The operator is using the Rowan Gorilla (450′ ILC) jackup to drill the exploratory well EG8. The well lies in 135 feet (41 meters) of water and will be drilled to a total depth of 8,700 feet (2,652 meters). EG8 is a deviated exploration well intended to appraise the Lower Pliocene-to-Upper Miocene stacked, shallow marine sandstone reservoirs that were encountered in previous offset wells. Both of these earlier wells – EG2 and EG5, which were drilled in 1978 and 1985 respectively – encountered and tested gas at various levels and EG2 tested oil at a rate of 1,000 barrels of oil per day, reported Rigzone. The Galeota block spans 30,147 acres (122 square kilometers) in the shallow waters of the prolific hydrocarbon-rich Columbus Basin off the southeast coast of Trinidad. Bayfield operates the block with a 65 percent interest; while partner, Petrotin, holds the remaining stake.
Europe – North Sea
Subsea 7 Awarded Work for BP’s Clair Ridge Project
Feb 2, 2012 – BP granted Subsea 7 a contract for the Clair Ridge Project, west of Shetland. The Clair Ridge development will comprise two new bridge-linked platforms to be located in the northeast of Clair Phase 1. The contract scope includes the project management, engineering, procurement, fabrication and installation of a 3-mile-long (6 kilometer-long), 22-inch-diameter oil export pipeline and a 9-mile-long (14-kilometer-long), 6-inch-diameter gas export pipeline connected to the new production facilities and existing Clair Phase 1 export systems. The pipeline systems will allow production to be transported from Clair Ridge to Sullom Voe Terminal (SVT) via a dedicated gas export pipeline spur tied into the Clair Phase 1 pipeline. The associated gas will tie into the West of Shetland Pipeline System via the gas export pipeline. The scope also includes tie-ins of integrated subsea towhead structures, field testing and pre-commissioning activities. Offshore operations are due to commence in 2013.
Project Details: Clair
Total Launches Hild Development
Feb 2, 2012 – Total is launching the development of the Hild field in the Norwegian sector of the North Sea. The development, projected to cost $4.2 billion, is subject to the approval of the Norwegain Ministry of Petroleum and Energy and Norwegian Parliament. The partners submitted the PDO for approval on Jan. 25, 2012. Hild’s reserves amount to approximately 190 million boe. Production is expected to start in 2016 and will reach 100,000 boepd at peak.
Project Details: Hild
Nautical Farms-In to UK License Containing Hydra Prospect
Feb 2, 2012 – Nautical Petroleum has entered into an agreement with First Oil to acquire a 25 percent interest in UK License P1756, which contains the Hydra prospect. The license commitment calls for the acquisition of 155 miles (250 kilometers) of 2D and 24,711 acres (100 square kilometers) of 3D seismic plus a well to be drilled at the discretion of the participants. First Oil will continue to operate the license with a 75 percent interest.
Project Details: Hydra
Wintershall Spuds Maria Appraisal Well
Feb 2, 2012 – Wintershall has spudded the Maria appraisal well in the Norwegian sector of the North Sea. The operator is using the Borgland Dolphin (mid-water semisub) to drill well 6407/1-5S in PL 475BS. The main objective of the well is to prove oil in the northern part of the structure and to perform extensive data acquisition. “The results will help the Maria partnership to decide on the optimum development concept for Maria – either a subsea tieback or a standalone development,” said Maria Project Manager Hugo Dijkgraaf.
Project Details: Maria
Statoil Spins Bit at King Lear
Jan 31, 2012 – Statoil has spud the King Lear prospect in the Norwegian sector of the North Sea. The well should take about 166 days to reach total depth, and an additional 51 days if Statoil elects to sidetrack the well. The operator is using the Maersk Gallant (350′ ILC) jackup for the drilling operations.
Project Details: King Lear
Total Gets Consent to Drill in PL 102 C
Jan 30, 2012 – Total has been granted consent for use of the Borgland Dolphin (mid-water semisub) for drilling and completion of a production well in Production License 102 C. The operator will drill well 25/5-D-1-H as a sidetrack, which lies in a water depth of 390 feet (119 meters). Drilling is expected to start in February.
Project Details: Atla (David)
BP Shuts-in Production at Foinaven
Jan 30, 2012 – BP has halted production at its Foinaven field after a hairline crack was discovered in an underwater connecting pipeline. Production was immediately shut down and the leak was stopped, said the company. The field, which produces around 43,000 bopd, remains shut-in, and the company is unsure when production will resume. Foinaven was the UK’s first deepwater field and came online in mid-2000.
Project Details: Foinaven
Statoil Selects Spar Concept for Luva Development
Jan 30, 2012 – Statoil has selected a spar platform to develop the Luva field. Considered a deepwater pioneer in the Norwegian Sea, the Luva field may be the first to have a spar platform on the NCS. “This development may represent the start of deepwater production in the Norwegian Sea, and it will enable the tie-in of other discoveries in the same area,” said Ivar Aasheim, Statoil’s senior vice president for NCS field development. The spar platform will consist of a large-diameter, single vertical cylinder supporting a conventional deck with processing facility, accommodation quarters and other facilities. The installation will fix to the seabed. The development concept will include two subsea templates with four wells on each and one satellite template with one well. The platform will house accommodation quarters for a permanent crew, a storage unit for condensate, and a gas processing facility with a capacity of 812 MMcf/d. Gas will be exported through a 300-mile-long (483-kilometer-long), 30-36 inch diameter pipeline from the Luva field to the onshore processing facility at Nyhamna. The pipeline will also connect to the Linnorm field and tied-in to the Zidane field.
Project Details: Luva
Det norske Spuds Storebjorn Prospect
Jan 30, 2012 – Det norske has commenced exploratory drilling at Storebjorn in Production License 450. Well 7/12-13 S is the first well in the license, which was awarded in the 2007 APA licensing round. The Storebjorn prospect is located in the southern North Sea, in close proximity to existing infrastructure on the Ula and Gyda fields. The operator is using the jackup Maersk Guardian (350′ ILC) to drill the well.
Project Details: Storebjorn
N. America – US Alaska
Pioneer Divests Interest in Cosmopolitan Project
Feb 2, 2012 – Buccaneer Energy Limited has executed a Purchase and Sale Agreement for the acquisition of two main productive leases in the former Cosmopolitan Unit from Pioneer Natural Resources. The acquisition is being jointly made with BlueCrest Energy II. Buccaneer will acquire a 25% working interest and BlueCrest a 75% working interest with Buccaneer assuming operatorship of the project. Buccaneer plans to commence preliminary development planning on the Cosmopolitan project offshore Alaska. The operator plans to drill an offshore well using the Endeavour, Spirit of Independence (300′ ILC) jackup in late 2012 to further quantify both the oil and gas zones of the project. Development of the Cosmo project will begin in the northern hemisphere during the winter of 2012 and continue through to 2014. The preliminary development plan includes drilling oil wells from the existing onshore production site and drilling offshore water injection wells for reservoir pressure maintenance. Separately, offshore gas wells will be drilled and tied-back to the existing onshore site, which will be connected to ENSTAR’s recently completed gas transportation line.
Project Details: Cosmopolitan
N. America – US GOM
ATP Completes MC 942 No. 2 Well at Thunder Horse
Feb 2, 2012 – ATP has completed drilling of the Mississippi Canyon Block 942 No. 2 well to a measured depth of 21,400 feet (6,523 meters). As previously reported, three productive sands have been logged with a total of 239 feet (73 meters) of pay. ATP has set 7-5/8 inch casing across the B and C Sands and a 5-1/2 inch liner through the S Sand. The S Sand, at a depth of 21,010 to 21,090 feet (6,404 to 6,428 meters), has been perforated and completed. After completion of the next regularly scheduled BOP test, ATP will move to the completion of the C Sand which will be perforated at a depth of 17,560 to 17,730 feet (5,352 to 5,404 meters). As soon as the C Sand is completed, ATP will begin completing the B Sand which will be perforated at a depth of 17,410 to 17,480 feet (5,307 to 5,328 meters). An additional BOP test will be required before the completion of the B Sand. ATP estimates first production immediately upon completing these activities, scheduled for the first quarter 2012. Plans are to begin production in the S Sand. ATP intends to comingle the B and C Sands with the S Sand when the pressure equalizes between the three sands.
Project Details: Thunder Horse
Anadarko Spuds Spartacus
Jan 31, 2012 – Anadarko has spud the Spartacus prospect in 7,008 feet (2,136 meters) of water in the GOM. The operator is drilling the well using ENSCO 8500 (UDW semisub). Drilling should take roughly 60 days.
Project Details: Spartacus
Asia – SouthEast
Santos Commences Gas Production at Wortel
Feb 1, 2012 – Santos has commenced gas production at the Wortel field offshore Indonesia. The project includes two gas wells, a minimum facility wellhead platform and a 6-mile (10-kilometer) gas pipeline to the existing Oyong wellhead platform. Wortel???s gas production will then flow through the existing 37-mile (60-kilometer) pipeline to the onshore gas processing facility at Grati for processing and onward sale. Gross production rates from the combined Oyong and Wortel fields are expected to be about 90 MMcm/d.
Project Details: Oyong Project
Hess Comes Up Dry in Andalan
Jan 31, 2012 – Hess completed two of its three commitment wells on the Semai V Block offshore Indonesia, reported Rigzone’s RigLogix Database. Wells Andalan 1 and 2 were both dry. Andalan 1 encountered hydrocarbons and although non-commercial, it helps with understanding the basin, Hess said from a geological perspective.
Project Details: Andalan
AWE Prepping to Spud Atlas-1
Jan 31, 2012 – AWE Limited said planning for drilling the Atlas-1 well in the Titan PSC is accelerating following the execution of the drilling contract in November 2011. Site surveys are completed and based on the current rig schedule, the well is expected to commence drilling in April 2012.
Project Details: Atlas
PPP Reviewing CRD Development Plans
Jan 27, 2012 – Pan Pacific Petroleum is continuing to assess the potential of a commercial development of the CRD oil and gas/condensate discovery offshore Vietnam. The operator is deciding whether to further appraise the area or commence development plans. A decision is expected around the end of 1Q 2012, stated the company. In addition to the CRD discovery, Block 07/03 also contains several large undrilled exploration prospects which will be matured with the aim of establishing an exploration drilling program, subject to the approval of JV participants. The Ca Rong Do field is located on Block 07/03 in the prospective Nam Con Son Basin offshore Vietnam.
Project Details: Ca Rong Do (CRD)
Mediterranean
Mediterranean O&G Increases Guendalina’s Gas Reserves
Feb 1, 2012 – Mediterranean Oil & Gas has revised the 2P recoverable reserves of the Guendalina field after conducting an independent review of gas reserves. The study was performed by RPS Energy, following the start of gas production in 4Q 2012 at the field. RPS’s CPR shows revised 2P recoverable reserves of 31.2 billion cubic feet (6.2 Bcf net to Mediterranean Oil & Gas), representing an increase of 42 percent relative to the previous pre-development valuation of 22 Bcf (4.4 Bcf net to MOG). RPS also estimates P3 reserves of 40.3 Bcf (8.1 Bcf net to MOG). The field, located 29 miles offshore the northeast coast of Italy, is producing roughly 21 MMcf/d.
Project Details: Guendalina
Tamar Development on Schedule to Commence Production
Jan 31, 2012 – Noble Energy reported that the Tamar development project remains on schedule for commissioning in late 2012, the company adds. Fabrication of the platform jacket and deck, and offshore pipeline installation, are 50 percent complete and onshore facility expansion is under way.
Project Details: Tamar
S. America – Brazil
New Subsea Guiding Frame Stabilizes Piles in Waimea Field
Feb 1, 2012 – The first offshore pile installation operation with the StabFrame, a newly developed subsea pile-stabilizing template, has been successfully completed at the Waimea field in Brazil’s Campos Basin. Jointly developed by Large Diameter Drilling Ltd. (LDD) and MENCK GmbH, the StabFrame stabilizes piles in all depths required for underwater pile driving. The operation was carried out in association with a contract that was awarded to MENCK by Wellstream International Ltd. The contract required MENCK to drive ten 84-inch mooring piles in water depths of up to 459 feet (140 meters) using an MHU 500T hydraulic hammer. The piles were required for installation of an FPSO mooring system on the OGX development of the offshore Waimea field.
OGX Confirms Hydrocarbon Find in Santos Basin, Swaps Rigs
Feb 1, 2012 – OGX has confirmed the existence of pre-salt microbiolite reservoirs with hydrocarbons in the shallow waters of the Santos Basin. As previously reported, the 1-OGX-63-SPS well had identified hydrocarbons both in the Aptian and Albian sections. When the well reached the Aptian section, it identified hydrocarbons through a high gas presence that resulted in a ‘kick’, indicating favorable permo-porosity characteristics and high pressure. As operations continued, the ‘kick’ was controlled and the analysis of rock fragments led to the confirmation of a microbiolite reservoir of Aptian age, which is the same type of reservoir rock found in the deep and ultra-deep waters pre-salt of the Santos and Campos Basins. The well has reached a depth of 20,128 feet (6,135 meters) and has thus far discovered a column of about 492 feet (150 meters) in the Aptian section. Due to the high pressures encountered, the drilling was temporarily suspended so that OGX can replace the current rig Ocean Quest (mid-water semisub) with the rig Ocean Star (DW semisub). The Ocean Star has the requisite specifications to continue the operation, which is expected to include logging and possibly conducting at least one drill-stem test.
Project Details: Fortaleza
OGX Opens First Well of OSX-1 FPSO
Jan 30, 2012 – OGX has initiated the opening procedure of the first producing well of OSX-1 FPSO, denominated OGX-26HP. The beginning of the production procedure initiated through the injection of chemical products into the well for the preliminary treatment of oil and gas, which will be processed by the vessel.
Australia
Clough Limited Gets Hook-Up, Commissioning Contract for Wheatstone Project
Feb 2, 2012 – Clough Limited received a contract for the offshore hook-up and commissioning component of the Chevron-operated Wheatstone project. The services will be provided over a 40-month period commencing immediately. The agreed scope of work includes the provision of labor, materials and an accommodation support vessel to assist Chevron with pre-commissioning, commissioning of integrated float over deck systems, offshore hook-up, and start-up assistance. Project management will be executed from Clough’s head office in Perth, while engineering and technical teams will be deployed to the fabrication yard in Korea and subsequently to the offshore platform located 140 miles (225 kilometers) from the Onslow coast.
Project Details: Wheatstone
Woollybutt Production to Cease in 1H12
Feb 1, 2012 – Woollybutt is an oil field in the Carnarvon Basin, Western Australia. Oil is produced from the field by a Floating Production Storage and Offtake vessel (FPSO), the Four Rainbow. Production at the Woollybutt field will end in April 2012 prior to the May 2012 termination of the FPSO contract. During the quarter, oil production rates at Woollybutt averaged 2,375 bopd gross for the period, with production lower production due to the mid-November shut-in of the Woollybutt-1 well, which was caused by a mechanical production.
Cliff Head Produces at Higher Rates following Field Maintenance
Jan 31, 2012 – Gross oil production at the Cliff Head oil field averaged 3,953 bopd for 4Q 2011. AWE said production remains at higher levels following the successful installation of a higher volume pump in the CH-12 well. Further field optimization studies are being undertaken.
Project Details: Cliff Head
AWE Updates Ops at Tui
Jan 31, 2012 – AWE reported that operational performance on the Tui oil field has performed well with production in line with budget forecasts. Furthermore, in early January 2012, a subsea project was undertaken to complete minor repair and maintenance work on various wellhead components on the producing wells. The field averaged daily gross production of about 5,600 bopd. Tui is located offshore New Zealand in 394 feet (120 meters) of water.
Project Details: Tui
GE to Supply Equipment for Ichthys LNG
Jan 30, 2012 – GE Oil & Gas will supply rotating equipment, subsea production systems, and connectors for the Ichthys LNG project offshore Australia. GE will provide rotating equipment, including gas turbines and compressors, for a new LNG plant at Blaydin Point, near Darwin, and associated floating production storage and offloading and a central processing facility in the Browse basin. In addition, GE will supply subsea production systems for the offshore portion of the project as well as subsea connectors for the pipeline to Darwin.
Project Details: Ichthys
Africa – West
Tullow Commences Phase 1A Development on Jubilee
Jan 27, 2012 – Tullow Oil reported that Jubilee’s Phase 1A of development has been approved by the Government of Ghana, and drilling is expected to commence in March 2012. The operator will use the Sedco Energy (DW semisub) to perform the drilling operations. This phase of development consists of drilling eight new wells (five producers and three additional water injectors) and expanding the existing subsea network. It will be conducted over an 18-month period. The total cost of Phase 1A is projected to cost around $1.1 billion. Commencing production in 4Q 2012, Jubilee is flowing at a gross rate of 70,000 bopd. The Jubilee field, located on two licenses, Deepwater Tano and West Cape Three Points, is situated in a water depth of 3,609 feet (1,100 meters).
Project Details: Jubilee

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