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Worldwide Field Development News Sep 29 – Oct 5, 2012

This week the SubseaIQ team added 1 new projects and updated 17 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 Alaska

Shells Announces Drilling at Sivulliq

Oct 5, 2012 – Shell announced the Kulluk (shallow-water semisub) has spud the top-hole section at its Sivulliq prospect in Alaska’s Beaufort Sea. The Noble Discoverer is currently engaged in the same type of work at the Burger prospect marking the first time in over 20 years that two rigs have been drilling off the Alaskan coast simultaneously. Last month Shell announced that its containment dome had been damaged during testing. Because of that, the rigs aren’t able to drill into possible hydrocarbon bearing formations, so for now they are restricted to drilling shallow top-hole sections in preparation for the drilling season next year.

Project Details: Torpedo and Sivulliq

Asia – Far East

Roc Oil Spins The Bit in Beibu Gulf

Oct 2, 2012 – Roc Oil Company‘s exploratory drilling program is underway in southern China’s Beibu Gulf. Well WZ6-12N-1 is being drilled in 90 feet of water to a projected depth of 5,249 feet. Up to four exploration wells well be drilled in the WZ6-12 field by the COSL 931 (300′ ILC). Upon completion of the exploratory phase, a multi-well development program will commence pending National Development and Reform Commission approval, which is expected shortly. The combined drilling program is expected to be completed during 3Q 2013.

Project Details: Beibu Gulf

Australia

Subsea 7 Wins Jurimar Development Contract

Oct 5, 2012 – Apache Australia awarded Subsea 7 a $100 million contract for the transportation, installation and pre-commissioning of subsea umbilicals, manifolds and diver-less tie-in spools for the Julimar Development Project offshore Western Australia. Project management and engineering will be handled from Subsea 7′s Perth office with offshore operations scheduled for 2014. Julimar field will be tied-in to and metered on the Chevron operated Wheatstone platform. First gas is planned for late 2016 and development is expected to continue for 20 years.

Project Details: Wheatstone

N. America – US GOM

Technip Awarded Dalmatian Development Contract

Oct 4, 2012 – Murphy Exploration & Production has awarded Technip a lump sum contract for the development of the Dalmatian field in the U.S. Gulf of Mexico. Dalmatian is located in the De Soto Canyon area in water depths ranging from 530 to 1800 feet. Scope of the project will include the engineering, project management, fabrication and installation of a gas riser, an oil riser, 23 miles of flowline and associated subsea structures. Technip will also carry out the installation and pre-commissioning of a main subsea control umbilical and infield umbilical with associated foundation and flying leads. Offshore installation is scheduled to be completed by the end of 2013.

Project Details: Dalmatian

Europe – North Sea

Providence Given Green Light For Dalkney

Oct 4, 2012 – The Irish Department of Environment, Community and Local Government awarded Providence Resources a Foreshore License for an area in the Kish Bank Basin offshore Dublin. Specifically, the Foreshore license allows Providence to conduct a 2D seismic survey, a well site survey and drill an exploration well on the Dalkey Island prospect in block SEL 2/11. Providence operates the block on behalf of its partner Petronas, each with a 50% interest. The prospect is a large undrilled structural closure at Lower Triassic level. Prolific Lower Triassic oil producers in the eastern Irish Sea off Liverpool add to the possibility that Dalkey holds oil.

Project Details: Dalkey Island

BP Flips Switch at Devenick

Oct 4, 2012 – Production systems are up and running at BP’s Devenick gas project in the central North Sea. The HPHT project is in the process of ramping up to full production – estimated to peak in 2013 at 100 million cubic feet per day. When producing at the maximum rate, Devenick will add an extra 3% to the UK’s total gas production. BP and partner RWE Dea have invested $1 million in the project which has largely been serviced by UK based companies. Gas is routed from a subsea manifold through an insulated pipeline to the Marathon-operated East Brae platform. It is estimated that the field holds 430 billion cubic feet and will maintain production until 2025.

Project Details: Devenick

Fairfield Optimistic About Dunlin Enhancements

Oct 4, 2012 – To date, Farifield Energy has invested $113.3 million in an effort to revitalize the Dunlin platform. For the first time since early 2000, the operator will be able to use its own independent power generation system to achieve significantly higher and sustained water injection performance. A new fuel gas import system and modified water injection system are expected to boost production of the mature field to around 10,000 bopd. Additional work has included platform and subsea modifications and a recent acquisition of a new 3D seismic survey over the field. The data will help support an exploration program that could result in additional wells being drilled and tied-back to the platform.

Project Details: Dunlin

Aker Grabs Visund Subsea Work

Oct 4, 2012 – Aker Solutions has been awarded a $52.6 million contract by Statoil for the delivery of five subsea trees and 11 control modules to the Visund field on the Norwegian continental shelf. Included in the contract is an option for four additional subsea trees. The contract is a call-off from an existing frame agreement between the two companies signed in 2007. The trees will incorporate Aker’s most advanced subsea technology which will facilitate oil and gas production at a more efficient level and allow greater recovery of reservoir data. Manufacturing of the Visund trees and control modules will take place at Aker Solution’s Tranby and Aberdeen facilities respectively.

Project Details: Greater Gullfaks Area

Total Bringing Atla Online Soon

Oct 2, 2012 – The 1.4 billion cubic meter-Atla gas and condensate field is expected to be brought on line in the first half of October according to Total, the field operator. Atla will be utilized via a subsea template tied back to an existing pipeline between the Skirne subsea facilities and the Heimdal Gas Center. The original exploration well was drilled into the Brent formation and is now being re-used as a production well.

Project Details: Atla (David)

Faroe Secures Rig for Novus

Oct 2, 2012 – Faroe Petroleum contracted the West Navigator (UDW drillship) to drill an exploration well at their Novus prospect during the second half of 2013. The prospect is located in the productive Halten Terrace hydrocarbon region offshore Norway and covers blocks 6507/7 and 6507/10 of production license 645. Partners in the license include Centrica (40%) and Skagen (10%). Primary objectives of the well will be the Jurassic reservoirs of the Garn, Ile and Tilje formations. Novus will be Faroe’s second operated well on the Norwegian continental shelf.

Project Details: Novus

Statoil Says No Increase for Melkoya Capacity

Oct 2, 2012 – Norwegian oil major Statoil announced Tuesday that it and its partners have decided to stop work on a capacity increase at the Melk??ya facility serving the Sn??hvit license in the Barents Sea after they concluded that current gas discoveries do not justify the expansion of the field. Statoil said that over the last 18 months, the Sn??hvit license partners carried out studies for the expansion of gas exports from the field, and that increased capacity would enable the accelerated gas production of increased reserves in the Sn??hvit license. Thorough studies were carried out both on an LNG train and a dew-point facility/pipeline solution, while considerable resources were devoted to finding solutions that could make a capacity expansion possible. However, the license partners have now decided the immediate future will focus on optimizing and upgrading the existing LNG facility at Melk??ya. Statoil, the operator, holds 36.79 percent of the Sn??hvit license, while Petoro, Total E&P Norge and RWE Dea Norge hold 18.4 percent, 12 percent and 2.81 percent respectively.

Project Details: Snohvit

Dana Adds to Stake in Bittern

Oct 2, 2012 – Dana Petroleum recently announced it has taken over operatorship of the Triton FPSO from Hess. The Triton FPSO serves the Bittern, Guillemot West and Northwest, Clapham, Pict and Saxon fields. As part of the agreement, Dana also acquired Hess’ 28.28% stake in the Bittern field bringing Dana’s interest in the field to 33%. The acquisition is keeping in line with the company’s strategy of moving from mainly non-operated to fully operated activities in the UK North Sea.

Project Details: Triton FPSO

Marathon Receives PSA Consent for Vilje

Oct 1, 2012 – Consent has been granted by the Petroleum Safety Authority Norway (PSA) allowing Marathon Oil to assume operatorship of the Vilje field in block 25/4 of production license 036D. Vilje has been developed via two subsea wells connected to the Alvheim FPSO. Marathon is now the operator of three producing fields offshore Norway. Partners in the field consist of Statoil with a 28.8% stake and a 25.2%-stake for Total. Additionally, the partners have decided to develop Vilje South through a single development well and standard subsea template.

Project Details: Alvheim

More Success with Johan Sverdrup Appraisal

Oct 1, 2012 – Well 16/2-13A, the sidetrack of appraisal well 16/2-13S, has proven excellent reservoir quality and thickness in the PL501 area of the Johan Sverdrup field. Lundin Petroleum indicates results from the well have validated the field geologic model and confirmed a deeper oil-water contact in that area. A comprehensive coring and logging suite was carried out and helped confirm a gross reservoir column of 72 feet. The sidetrack was drilled to a depth of 9,107 feet and now both wells will be plugged and abandoned.

Project Details: Johan Sverdrup

China: Guidelines welcome foreign money

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Government officials and experts said the new guidelines are in keeping with proposals contained in China’s 12th Five-Year Plan (2011-2015), which seeks to lay the foundations for a more innovative and greener economy. [Photo / China Daily]
 Updated: 2011-12-30 09:03
By Ding Qingfen and Lan Lan (China Daily)

Ministry opens more industries to investment from overseas

BEIJING – China will encourage foreign companies to invest more in domestic industries to further make good on the country’s commitment to open its economy, according to guidelines released on Thursday.

In a new version of the Foreign Direct Investment Industry Guidelines (2011), the Chinese government is encouraging foreign investors to put money into advanced manufacturing, the service industry and certain business concerned with energy conservation, advanced technology, renewable sources of energy, new materials and advanced-equipment manufacturing.

Government officials and experts said the new guidelines are in keeping with proposals contained in China’s 12th Five-Year Plan (2011-2015), which seeks to lay the foundation for a more innovative and greener economy.

On Thursday, the Ministry of Commerce and the National Development and Reform Commission (NDRC) issued the guidelines, which will replace a previous version of the rules that was published in 2007. They are expected to come into force on January 30.

Compared with the 2007 version, the new guidelines encourage foreign companies to invest in a greater number of industries and reduce the number of industries that are off limits to such investment.

“The new version indicates China’s strong commitment to opening its market wider,” said Wang Zhile, director of the ministry’s research center for transnational cooperation. “It’s absolutely a positive signal.”

In the new guidelines, the Chinese government will encourage foreign enterprises to invest in new technology and equipment for the textile, chemicals and machinery-manufacturing industries.

The guidelines also call for the encouragement of investment into nine service industries. Among them are those concerned with charging electric vehicles and swapping their batteries, protecting intellectual property rights, cleaning up offshore oil pollution and vocational training.

China will also allow foreign companies to invest in medical institutes and various other industries that were previously off limits to them.

Dirk Moens, secretary general of the European Union Chamber of Commerce in China, said foreign investors are likely to take heed of the government’s investment guidelines.

This “will indeed facilitate decision-making for foreign investors thinking of coming to China”, Moens said.

Kong Linglong, director-general of the National Development and Reform Commission’s department of foreign capital and overseas investment, had similar thoughts.

“Looking at the changes in the new version, we can tell the way in which the Chinese government would like to transform its industrial structure,” Kong said.

“And another message is that China is now placing more value on the quality of foreign investments rather than their scale.”

The government will also prevent foreign companies from building or operating refineries that have the capacity to distill fewer than 200,000 barrels of crude oil a day. That is up from the previous limit of 160,000 barrels a day.

China, meanwhile, has removed industries from the list of those it encourages foreign companies to invest in. No longer part of that group are automakers, large coal-to-chemical operations and manufacturers of polycrystalline silicon.

“The restrictions generally apply to industries that have excessively large capacities and that pollute the environment,” said Zhang Xiaoji, senior researcher at State Council’s development research center.

“But they will probably be a source of their (foreign companies’) complaints about transparency in China’s market for foreign investment. To alleviate their concerns, China should try to provide detailed information about what will be restricted.”

China issued the first version of its guidelines governing foreign direct investment in 1995. They are now amended every four years.

China released a draft version of the new guidelines in early April, seeking the public’s suggestions and comments.

“We have made reasonable changes in response to foreign companies’ opinions,” Kong said. For instance, the draft version said foreign investors could take no more than a 50-percent stake in joint ventures that produce all of the chief components needed in new-energy vehicles, a proposal that led to heated discussions in the auto industry.

The final version changed the stipulation about “all chief components” to one that only concerns “fuel cell batteries”.

Giving a keynote speech in December at a celebration ceremony for the 10th anniversary of China’s entry into the World Trade Organization, President Hu Jintao said China will continuously open its economy to the world. He said that is especially true for industries concerned with advanced manufacturing, strategic emerging industries, services, agriculture and modern culture.

In April, China issued a directive that encouraged more investment in the high-tech, renewable energy and service industries, and for more attention to be paid to the country’s western and central regions. The directive marked a turning point in China’s policies concerning foreign direct investment.

China is now the second-largest destination for such investment in the world and the largest among developing economies. In 2010, the value of foreign direct investment into China hit a record high, increasing to $105.74 billion, a rise of 17.4 percent from the year before. In 2009, it decreased by 2.6 percent.

From January to November, the value of China’s foreign direct investment increased by 13.15 percent from the same period the year before, reaching $103.77 billion.

Source

China: Third West-East Gas Pipeline to Start Operation in 2013

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China’s third West-to-East gas pipeline, mainly carrying gas from Central Asia to southeastern Fujian province, is expected to become operational by the end of 2013 , China Daily reported on Thursday, citing a source with the country’s dominant gas supplier.

The 5,200-kilometre project, with annual shipment capacity of about 30 billion cubic metre (bcm), will include one artery, six branch lines, three gas storage facilities and a liquefied natural gas (LNG) terminal, the report said.

The pipeline will run from the Xinjiang region to the city of Fuzhou in Fujian province, the source was quoted as saying.

Work on the fourth and fifth pipeline will be initiated some time after 2015, with each pipeline having an annual capacity of about 30 bcm and supplying gas to the country’s industrialized coastal regions, the English newspaper reported.

Turkmenistan, Uzbekistan, and Kazakhstan will be the major sources of supply for all the planned pipelines, the report said.

China National Petroleum Corp (CNPC), parent of China’s largest oil and gas producer PetroChina Co Ltd , has long planned to add more lines across the country to feed booming demand in the eastern and southern coasts.

But its plans have been modified from one time after another due to uncertainties in gas supplies.

Talks with Russia for gas imports of up to 68 bcm per annum have been on and off for years as the sides were far apart on prices.

China’s first West-to-East gas pipeline, pumping domestic gas from Xinjiang to eastern cities including Shanghai, is running at full capacity of 17 bcm per year, and the second line, sending Turkmenistan gas to the east, is scheduled to reach its capacity of 30 bcm by the end of next year.

China’s natural gas imports rose 86.5 percent from a year earlier to some 25 bcm in the first 10 months, of which 12.3 bcm was piped in from Turkmenistan and the remainder shipped in by LNG carriers, according to the National Development and Reform Commission.

The country aims to more than double the current 4 percent share of gas in its overall energy consumption by 2020.

(reuters)

Source

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