Blog Archives

Investors hit the brakes on resources projects

http://resources0.news.com.au/images/2012/11/28/1226526/095052-121129-n-projects.jpg

Adam Creighton
From: The Australian
November 29, 2012 12:00AM

RESOURCES investors are increasingly scrapping tentative investment plans and cost blowouts are artificially inflating Australia’s resource pipeline, a new report reveals.

Although the total value of committed resource projects rose a little to $268 billion in October, the number of committed projects fell to 87 from 98 six months earlier, the Bureau of Resources and Energy Economics said yesterday in its six-monthly update of Australia’s investment pipeline.

“The increase is primarily a result of the approval of a second train for the Australia Pacific LNG project and cost increases to projects that were already under way,” the bureau said.

Eleven “mega projects”, costing more than $5bn each — mainly liquefied natural gas facilities such as the Gorgon, Ichthys and Wheatsone projects — account for three-quarters of all committed investments.

Only 10 projects worth $13.2bn progressed to the “committed stage” of development, compared with 21 projects worth $45bn in the six months to April.

“Even on the most conservative estimate provided by the bureau, the total potential investment in the resource sector sits at a mammoth $650bn,” Wayne Swan said, pointing out the OECD’s remarks earlier this week that mining in Australia should “continue to expand vigorously” next year, based on current plans.

The bureau said the total committed expenditure on Australia’s oil and gas projects was “comparable to the total cost of the Apollo moon program in 2012 prices”.

But concerns about the longevity of Australia’s resource boom, which intensified earlier this year after BHP’s decision to shelve its multi-billion-dollar Olympic Dam project in South Australia, and Fortescue Metals Group’s decision to retrench 1000 workers in Western Australia, are still worrying investors, who cancelled 18 projects in the very preliminary stages of development in the six months to October.

“The decrease in the number of projects is attributable to the removal of projects that have not progressed as scheduled and because information could not be sourced that confirmed a clear intention to progress to development,” the bureau said.

Nevertheless, more than 170 projects worth about $290bn — mainly coal and gas projects slated for Queensland — remain in the “feasibility stage”, having passed commercial viability tests.

“Due to restrictions on exploration and production, there have been few uranium projects progressing along the investment pipeline,” the bureau added, although it pointed to regulatory changes that should improve their prospects.

Separate data from the Australian Bureau of Statistics showed the value of construction completed over the three months to September rose 1.7 per cent to $51.3bn, and increase underpinned almost entirely by engineering construction work.

Source

INPEX Orders USD 2 bln FPSO from DSME (South Korea)

image

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.

Source

Recap: Worldwide Field Development News (Feb 10 – Feb 16, 2012)

Vantage-Drilling-Company

This week the SubseaIQ team added 15 new projects and updated 33 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.

Australia
MEO Acquires Zeppelin 3D Data
Feb 13, 2012 – MEO Australia Limited has completed acquisition of the Zeppelin 3D seismic survey in AC/P 50 and AC/P 51 in the Ashmore Cartier region of the Timor Sea. A total of 125,530 acres (508 square kilometers) of full fold data was recorded. MEO said the Zeppelin 3D survey will underpin the technical assessment of the company’s exploration concepts and determine whether these will translate into prospects for consideration as future drilling candidates.
KBR to Commence FEED Work on Ichthys
Feb 10, 2012 – KBR and its joint venture with JGC Corporation and Chiyoda Corporation, the JKC JV, have signed a formal contract for engineering, procurement and construction activities on the Ichthys LNG Project in northern Australia. Work is slated to start immediately. Gas from the Ichthys field in the Browse Basin, approximately 124 miles (200 kilometers) offshore of Western Australia, will undergo preliminary processing offshore to remove water and extract condensate. The gas will then be exported to onshore processing facilities in Darwin via a 552-mile (889-kilometer) subsea pipeline. The Ichthys Project is expected to produce 8.4 million tonnes of LNG and 1.6 million tonnes of LPG per annum, along with approximately 100,000 barrels of condensate per day at peak.
Project Details: Ichthys
Europe – North Sea
Bridge Energy Develops Vulcan East, Looks to 2014 to Commence Production
Feb 16, 2012 – Bridge Energy reported that with Victoria Phase II development is scheduled to come online in 2013, the base case for delivery of the Vulcan East field will be in 2014. The Vulcan East gas field is located on Block 49/21 in the UK sector of the North Sea, and is wholly owned and operated by Bridge Energy.
DECC Approves Bridge Energy’s Victoria Phase 2
Feb 16, 2012 – Bridge Energy has received approval from United Kingdom Department of Energy and Climate Changes (DECC) for the development of the Victoria Phase 2 project in the fourth quarter. The company said preparations for the development of phase two continues, with the team focusing on the time critical technical and commercial agreements with ConocoPhillips for the transportation and processing of the gas. Bridge Energy has received an offer from ConocoPhillips for the transportation and processing of Victoria Phase II gas via the Viking facilities, LOGGS facilities and Theddlethorpe terminal. The offer provides for production startup in 2012. Bridge Energy says that the FEED stage of the Victoria Phase II development has commenced and the company is currently reviewing rig availability for 2012 and 2013. All other development activities are on schedule to meet a first gas date set in 1H 2013, subject to rig availability.
RWE Dea Spuds Clipper South Development Well
Feb 16, 2012 – RWE Dea has commenced development drilling at Clipper South in the UK sector of the North Sea. The development well, 48/19a-C1, is targeting a tight Permian-age Rotliegend reservoir at a depth of some 8,202 feet (2,500 meters) and is the first of up to five extended horizontal wells with multiple hydraulically induced fractures in each well. Clipper South contains roughly 500 Bcf of gas-in-place and will be developed using the latest well technology, stated the operator. First gas from the development is slated for this summer.
Project Details: Clipper South
Bridge Energy, TAQA Team Up for Contender Prospect
Feb 16, 2012 – Bridge Energy is planning to spud the Contender prospect in March 2012. The well will target the Jurassic Brent series of sandstones at a projected drilling depth of 16,900 feet (5,151 meters), less than one mile (two kilometers) east of the Cormorant North field. Drilling will be funded by TAQA. If successful, TAQA will receive 60 percent interest in the southern area of the block and 35 percent interest in the northern part. Contender is located in UKCS License P201 on Block 211/22a.
Project Details: Contender
Total to Drill Garantiana in 3Q12
Feb 16, 2012 – Total is planning a spud date in 3Q 2012 to drill the Garantiana prospect in the Norwegian sector of the North Sea. The prospect straddles Blocks 34/6 and 34/9 and lies in a water depth of 1,247 feet (380 meters).
Project Details: Garantiana
Aker to Deliver Subsea Equipment for Troll Field
Feb 16, 2012 – Statoil awarded Aker Solutions a contract to deliver six subsea trees and a tool package for Troll in the Norwegian sector of the North Sea. The scope of work includes six subsea trees, with a possible option for nine further subsea trees, including control systems. Under this contract, Aker Solutions will deliver equipment to the oil section of Troll. The Troll field, containing 40 percent of the total gas reserves on the Norwegian continental shelf, is the world’s biggest subsea development with regards to the number of subsea wells. Equipment deliveries are slated for 2012 until 2015.
Project Details: Troll Area
Det norske Gets Nod to Explore PL 460
Feb 15, 2012 – Det norske has received consent to carry out exploration drilling in the North Sea using the Transocean Barents (UDW semisub). The consent relates to the drilling of exploration well 25/1-12 in Production License 460. The water depth of the site is 335 feet (102 meters). Drilling is slated for 2Q 2012 and will take about 40 days.
Kvaerner Wins Jacket EPSC Gig at Hild Field
Feb 14, 2012 – Total has awarded Kvaerner an EPSC-contract for the delivery of a steel jacket to be located at the Hild field in the Norwegian sector of the North Sea. The contract includes engineering, procurement, supply, construction, load-out and sea-fastening of the jacket and associated piles. The jacket is slated for delivery in 2014.
Project Details: Hild
Hurricane Mulling Lancaster Development Plans
Feb 14, 2012 – Hurricane Resources believes that its Lancaster development, west of the Shetland Islands, contains 200 MMbbl of recoverable oil. This estimate is based on a thorough evaluation of the original Lancaster pilot well, drilled in 2009 and its subsequent sidetrack drilled in 2010. The company said that prior to the proposed 2012 drilling operations, Hurricane has commissioned a site survey and is now planning for future Lancaster appraisal and development wells. These wells are targeted at improving the company’s understanding of the structure’s upside and confirming delivery rates from a basement horizontal well. Hurricane is also working with EPC Offshore on several development scenarios for the discovery. The consortium is leaning towards a development plan including several subsea wells connecting to an FPSO with oil exported to the mainland by a shuttle tanker.
Project Details: Lancaster
Hurricane Targeting 2014 to Drill Lincoln Prospect
Feb 14, 2012 – Hurricane reported that a third basement prospect on License P1368, Lincoln, has been defined to the southwest of Lancaster, in the UK sector of the North Sea. The prospect shares many geological characteristics with Lancaster, including proven oil on structure and a well defined basement fault system. Technical work undertaken during the latter half of 2010 and the first half of 2011 resulted in a prospective well location being identified, and subsequently a site survey has been acquired. Prospective P50 recoverable resources are estimated at 150 MMbbl. Well planning for a Lincoln exploration well is ongoing with the objective of drilling in 2014.
Project Details: Lincoln
Hurricane Exploration Acquires Site Survey Over Typhoon
Feb 14, 2012 – Hurricane Exploration acquired a site survey over the Typhoon prospect during the summer of 2011 and is now working on well plans with the objective of drilling in 2012, subject to rig availability. Prospective resources could be in the range 149 MMbbl to 1.266 Bbbl.
Project Details: Typhoon
Providence Resources Confirms Plans for Dunquin Prospect
Feb 13, 2012 – Providence Resources has confirmed the forward program for Frontier Exploration License (FEL) 3/04, which contains the Dunquin exploration prospect. The consortium approved the 2012 budget, including the provision of well design activities and procurement of long-lead items as part of the ramp up to the drilling of an exploration well on the Dunquin prospect next year. Providence plans to spud the exploration well in the second quarter of 2013. The FEL 3/04 license covers five blocks in the South Porcupine Basin, 124 miles (200 kilometers) off the southwest coast of Ireland, where the water depth is more than 4,921 feet (1,500 meters).
Project Details: Dunquin Project
Det norske Comes Up Dry at Kalvklumpen Prospect
Feb 13, 2012 – Det norske announced that exploratory well 25/6-4 S on the Kalvklumpen prospect in Production License 414 has come up dry. The primary objective of the well was to prove hydrocarbons in Paleocene and Jurassic sandstone. Det norske said the well struck good quality reservoir rocks but the formation was water-bearing. The well will now be permanently plugged and abandoned.
Project Details: Kalvklumpen
Wintershall Receives Consent to Explore PL 418
Feb 10, 2012 – Wintershall Norge has received consent to carry out exploratory drilling in the Norwegian sector of the North Sea using the Songa Delta (mid-water semisub). The consent relates to the drilling of exploration well 35/9-7 which belongs to production license 418, at which Wintershall acts as operator. Water depth of the site is 1,237 feet (377 meters). Drilling operations should last about 48 to 60 days, depending on whether a discovery is made.
Lundin Gets Govt Nod to Drill Albert Prospect
Feb 10, 2012 – Lundin Norway has received consent to carry out exploratory drilling in the Norwegian sector of the North Sea with the Bredford Dolphin (mid-water semisub). The consent permits Lundin to act as operator at exploratory well 6201/11-3, which is part of production License 519. Water depth of the site is 1,257 feet (383 meters). Drilling operations should take roughly 53 days, depending on whether a discovery is made.
Project Details: Albert
Black Sea
Petrom Eyes Hydrocarbons in Romanian Black Sea
Feb 10, 2012 – Petrom announced that natural gas was encountered at Domino-1, the first deepwater exploration well in the Romanian sector of the Black Sea. The operator said it is too early in the data evaluation and exploration process to determine whether it is commercial or not. Drilling operations commenced at year-end 2011 and are ongoing. The total depth of the well should be more than 9,843 feet (3,000 meters) below sea level. Drilling operations are being carried out by the Deepwater Champion (DW drillship).
Project Details: Domino
Asia – South
DDE-A-2 Well Spud in Deen Dayal East
Feb 13, 2012 – Jubilant Energy announced that appraisal well DDE-A-2 was spud on 9 February 2012. DDE-A-2 is being drilled in a water depth of 325 feet by Aban Offshore’s Deep Driller-1 jack-up rig. This is the third appraisal well in the Deen Dayal East (“DDE”) area of the KG-OSN-2001/3 block. The target depth of the well is 17388′ TVD with the objective of appraising the lower Cretaceous Early Rift fill sands that were shown to be hydrocarbon bearing by the KG-16 discovery well. Gujarat State Petroleum Corporation Limited operates the KG block with an 80% interest. The remaining ownership is split between Jubilant Energy and GeoGlobal Resources.
Project Details: Deen Dayal
ONGC Hits Gas Offshore India
Feb 10, 2012 – ONGC has made a shallow water gas discovery offshore India. Exploratory well Alankari No. 1, in NELP Block KG-OSN-2004/1 in the KG shallow offshore Basin, was drilled to a depth of 6,273 feet (1,912 meters). The 6,002 to 6,010 foot (1,829.5 to 1,832 meter) interval in the Godavari clay/Ravva formation of Mio-Pliocene age was formation tested, producing gas at a rate of 144,780 MMcm/d and condensate at 1.6 cu M/d. The gas discovery is located south of Narsapur, Andhra Pradesh, 4.3 miles (7 kilometers) from the coast in a water depth of around 69 feet (21 meters).
ONGC Strikes Again Offshore India
Feb 10, 2012 – ONGC said exploratory well GSS04NAA No. 1 in NELP Block GS-OSN-2004/1 in Saurastra offshore, Western offshore basin, reached a depth of 16,033 feet (4,877 meters). The 15,733 to 15,697 foot (4,795.5 to 4,784.5 meter) interval of Mesozoic age was also formation tested, and produced gas at a rate of 1.4 MMcf/d through a 1/4-inch choke. ONGC claims this discovery provides a significant lead to explore other sub-basalt Mesozoics in the area. Exploratory well GSS04NAA No. 1 is located southwest of Dwarka, Gujarat, about 56 miles (90 kilometers) offshore in a water depth of around 328 feet (100 meters).
Mediterranean
Dolphin Gas Field Estimate Downsized by 85 Percent
Feb 13, 2012 – Netherland Sewell & Associates have cut the estimated size of the Dolphin natural gas reservoir by 85 percent to approximately 81.3 Bcf of gas from 550 Bcf of gas. The operator has yet to finalize field development plans.
Project Details: Dolphin
Africa – Other
Eni All Smiles Over Mamba North
Feb 15, 2012 – Eni has made a “massive” natural gas discovery at the Mamba North 1 prospect, in Area 4 offshore Mozambique, encountering a mineral potential of 7.5 Tcf of gas-in-place, reported the company. This new discovery, in addition to the Mamba South find made in October 2011, further increases the potential of the Mamba complex in Area 4. It is estimated that the total volume of gas-in-place is 30 Tcf. The well encountered 610 feet (186 meters) of gas-bearing rock. A production test was conducted, producing about 1 MMcm/d of natural gas and minor volumes of condensate during testing, but flow rates were constrained by surface facilities. Eni estimates output per well could reach more than 4 MMcm/d in a final production completion configuration.
Project Details: Mamba South/North
N. America – US GOM
Shell Successfully Appraises Appomattox
Feb 16, 2012 – Shell has successfully appraised the Appomattox discovery in Mississippi Canyon Block 348 in the GOM. The well, located in a water depth of 7,257 feet (2,212 meters), reached a total depth of 25,851 feet (7,879 meters) and encountered about 150 feet (46 meters) of oil pay. The operator will continue to appraise the find in 2012 with an additional well in the southwest fault block and a sidetrack appraisal in the northwest fault block to further delineate the hydrocarbon accumulation. Further Appomattox and Vicksburg appraisals, if warranted, may extend into early 2013, stated Shell.
Project Details: Appomattox
Correction to 2/2/12 Telemark Well Activities
Feb 15, 2012 – We previously reported on February 2, 2012, ATP’s completion of drilling operations at Mississippi Canyon 942 and erroneously referred to it as Thunder Horse instead of Telemark.
Project Details: Telemark
Africa – West
Hyperdynamics Completes Drilling of Sabu-1 Well Offshore Guinea-Conakry
Feb 14, 2012 – Hyperdynamics has completed drilling the Sabu-1 exploration well on its concession offshore Guinea-Conarky. The well reached a depth of 11,844 feet (3,610 meters) in a water depth of 2,329 feet (710 meters). Results of real-time hydrocarbon chromatograph measurements and Schlumberger petrophysical wireline analysis warranted collection of downhole fluid samples. These samples, together with sidewall cores taken, are being sent to Core Lab for analysis, reported the operator. Hyperdynamics will be incorporating the results of the well, along with the interpretation of the newly acquired 3D seismic, in order to plan the subsequent drilling program in consultation with Dana Petroleum and the government of Guinea.
Project Details: Sabu

 

SubseaIQ

Australia: Heerema Wins Subsea Installation Contract for Ichthys Project

image

McDermott Australia (McDermott) has awarded Heerema Marine Contractors Australia Pty Ltd (HMC) a contract to transport and install infield flowlines, subsea structures and moorings for the INPEX Ichthys LNG Project.

McDermott Australia has been appointed the main contractor for the subsea umbilical, riser, flowline (SURF) project by INPEX. McDermott will work with HMC on the complex offshore installation campaign. HMC will carry out the transportation and installation of a portion of the offshore scope, utilizing the heavy lift, J-Lay and Reel-Lay capability of Heerema’s new-build vessel Aegir.

Scope of work

HMC’s scope of work includes the transportation and installation of flowlines, production flowlines, integrated pipeline structures, large subsea structures, a subsea riser support structure, and moorings for future FPSO and CPF facilities.

All pipeline production welding, both onshore and offshore, will be carried out by HMC’s subsidiary Pipeline Technique Ltd.

Aegir’s cutting-edge technology

The project logistics are of an unprecedented scale in HMC’s subsea track record. It involves lowering over 100,000 tonnes of project materials to the seabed in water depths up to 275 meters.

HMC’s Executive Vice President Commercial & Technology Steve Preston says: “This is a really exciting opportunity for us, not only because of the enormous scope of the project, but also because we will be able to demonstrate the groundbreaking capabilities of our new vessel Aegir. We will be able to use its heavy lift, J-Lay and Reel-Lay capabilities all in one project.”

image

Ichthys LNG Project

The Ichthys LNG Project is a joint venture between INPEX (76%, the Operator) and Total (24%). Gas from the Ichthys Field, in the Browse Basin approximately 200 kilometers offshore Western Australia, will undergo preliminary processing offshore to remove water and extract condensate. The gas will then be exported to onshore processing facilities in Darwin via an 889-kilometer subsea pipeline. The Ichthys LNG Project is expected to produce 8.4 million tonnes of LNG and 1.6 million tonnes of LPG per annum, along with approximately 100,000 barrels of condensate per day at peak.

About Heerema Marine Contractors

Heerema Marine Contractors is a world-leading marine contractor for the oil and gas industry. HMC transports, installs, and removes all types of offshore facilities and operates three of the four largest crane vessels in the world. HMC is a fully-owned subsidiary of the Heerema Group.

Related articles

Source

France: Total Allocates Billions for Upstream in 2012

image

French oil major Total said today it intended to continue to actively manage its asset portfolio with, in particular, a program of non-strategic asset sales.

The 2012 budget for organic investments is $24 billion , of which more than 80% will be dedicated to the Upstream.

In the Upstream, Total expects in 2012 to implement its strategy to accelerate production growth and increase the profitability of its asset portfolio.

The ramp-up of Pazflor in Angola and the start-up of several major projects, including Usan in Nigeria, Angola LNG, and Bongkot South in Thailand, will contribute to  production growth in 2012 and to achieving the objective of growing production by 2.5% per year on average between 2010 and 2015.

“The successful start-up of the Pazflor field in Angola was the crowning achievement of an important year for Total. This start-up and the ones to follow will ensure a return to production growth in 2012 and the years to come”, Chairman and CEO Christophe de Margerie said.

After launching Ichthys in Australia, announced at the start of  this year, Total said it intends to continue work on the drivers for post-2015 growth by preparing to launch, notably, projects in West Africa, Russia and Canada.

Income Soars

The Group today announced 2011 adjusted net income of $15.9 billion which is an increase of 17 per cent when compared to full year results from 2010.

Commenting on the results de Margerie said:

“In a period of economic slowdown, ongoing tensions on the global oil supply supported the Brent price above 110 S/b in 2011. This environment has been favorable for the Upstream, but it was difficult for the Downstream activities, notably in Europe. In this context, the Group posted a 17% increase in earnings, expressed in dollars, compared to 2010. With its track record of operational excellence, the Group also confirms its constant improvement in safety performance.”

Articles

Source

Ichthys: The Largest Subsea Gig for McDermott (Australia)

image

McDermott International, Inc. announced today that its Australian subsidiary has received and signed a letter of award for the Ichthys Gas-condensate Field Development subsea umbilical, riser, flowline (“SURF”) project by INPEX. The contract value is in the order of magnitude of US$2 billion and is the largest subsea contract McDermott has been awarded to date.

This project includes engineering, procurement, construction, installation (“EPCI”) and pre-commissioning of production flowline systems, a MEG injection system, plus start-up condensate transfer and fuel gas transfer flowline systems, control systems as well as other associated SURF elements in water depths up to 275 meters. McDermott will also install mooring systems for the Floating Production, Storage and Offtake vessel and Central Processing Facility as well as installation engineering for future flowlines, risers and umbilicals.

McDermott has already begun engineering and procurement work and is expected to start fabrication of more than 16,000 tonnes of subsea equipment, including a subsea Riser Support Structure and installation aids, at its Batam Island, Indonesia fabrication facility beginning in 2013. The complex offshore installation campaign will see McDermott undertake the installation of subsea hardware, moorings, risers, umbilicals and flowlines utilizing its specialty subsea vessels Emerald Sea and North Ocean 102. McDermott is working with Heerema Marine Contractors (“Heerema”) for transportation and installation of a portion of the offshore scope, utilizing the heavy lift, J-Lay and Reel-Lay capability of Heerema’s new-build vessel Aegir.

Stephen M. Johnson, Chairman of the Board, President and Chief Executive Officer, McDermott said, “McDermott has a long track record working on EPCI projects offshore Australia. This major SURF award firmly endorses McDermott’s core EPCI competencies and our competitive subsea construction vessels, combined with Heerema’s installation strength and the team’s alignment with INPEX. This is a large scale and complex development, and we are firmly behind promoting the success of this LNG project.”

The Ichthys LNG Project is a Joint Venture between INPEX (76%, the Operator) and Total (24%). Gas from the Ichthys Field, in the Browse Basin approximately 200 kilometers offshore Western Australia, will undergo preliminary processing offshore to remove water and extract condensate. The gas will then be exported to onshore processing facilities in Darwin via an 889-kilometer subsea pipeline. The Ichthys LNG Project is expected to produce 8.4 million tonnes of LNG and 1.6 million tonnes of LPG per annum, along with approximately 100,000 barrels of condensate per day at peak.

Articles

Source

%d bloggers like this: