Blog Archives

Nigeria Labor Talks Collapse, Could Disrupt One Of The Largest Oil Exporters To The US

image

AP | Jan. 15, 2012, 12:24 AM

ABUJA, Nigeria (AP) — Nigeria’s government and labor unions failed Saturday night to end a paralyzing nationwide strike over high gasoline costs, potentially sparking an oil production shutdown in a nation vital to U.S. oil supplies.

It was not immediately clear early Sunday whether a major oil workers’ union had gone ahead with its threat to have its members walk off their jobs starting at midnight in an effort to halt oil production.

Nigeria, which produces 2.4 mi lion barrels of oil a day, is the fifth-largest oil exporter to the United States. Any disruption to oil production could roil the oil futures market at a time traders remain concerned about world supply.

President Goodluck Jonathan did not show up for a meeting with union representatives held Saturday night at the presidential villa in Nigeria’s capital Abuja, nor did Vice President Namadi Sambo. Instead, the nation’s Senate president and its House speaker represented the government along with other officials.

After the meeting, Nigeria Labor Congress President Abdulwaheed Omar told waiting journalists: “We have not reached a compromise.”

Asked whether oil production would immediately halt, Omar said: “We are taking these things gradually.”

Nigeria has been gripped by a paralyzing strike since Monday when labor unions called the nationwide work stoppage in response to a government decision to remove subsidies, causing fuel prices to more than double in Africa’s most populous nation. However, oil workers mostly remained on the job.

On Thursday, the Petroleum and Natural Gas Senior Staff Association of Nigeria threatened to stop all oil production in Nigeria at midnight Saturday. President Babatunde Ogun and other union officials were not immediately available to confirm whether its members had left their posts.

The union’s ability to enforce a shutdown across the swamps of Nigeria’s southern delta to its massive offshore oil fields remains in question. But the threat of a strike caused jitters on global oil markets Friday.

The strike began Monday, paralyzing the nation of more than 160 million people. The root cause remains gasoline prices: President Goodluck Jonathan’s government abandoned subsidies that kept gasoline prices low on Jan. 1, causing prices to spike from $1.70 per gallon (45 cents per liter) to at least $3.50 per gallon (94 cents per liter). The costs of food and transportation also largely doubled in a nation where most people live on less than $2 a day.

Anger over losing one of the few benefits average Nigerians see from being an oil-rich country, as well as disgust over government corruption, have led to demonstrations across this nation and violence that has killed at least 10 people. Red Cross volunteers have treated more than 600 people injured in protests since the strike began, the International Committee of the Red Cross said Friday.

Even if strikers are only partially successful, fears of tightened global supplies could raise oil prices by $5-$10 per barrel on futures markets next week. Gasoline prices would follow, rising by as much as 10 cents per gallon and forcing U.S. drivers to spend an additional $36 million a day at the pump.

Experts predict the national average in the U.S. could rise as high as $4.25 per gallon ($1.12 a liter) in 2012.

Source

Nigeria: Fuel protests turn violent

image

Nigerian union members and demonstrators march in Lagos to protest the removal of petroleum subsidies by the government on January 3, 2012. Nigerian police fired tear gas to disperse a small crowd burning tires in Lagos and arrested demonstrators in the northern city of Kano on Tuesday as protests continued over soaring fuel prices. (Pius Utomi Ekpei /AFP/Getty Images)

Over the weekend, Nigerian President Goodluck Johnathan said the violence that has erupted from Islamist militant group Boko Haram, is the gravest threat since the civil war in 1967 to 1970 that left as many as 3 million people dead, and nearly ripped the country apart, according to Agence France Presse.

“During the civil war we knew and we could even predict where the enemy was coming from. But the challenge we have today is more complicated,” Jonathan said, according to The Guardian. The president said some Boko Haram supporters even work for the government.

As the Nigerian government attempts to counter this threat, however, the country appears to be descending into chaos. On the first of this year, the president announced an end to government-sponsored fuel subsidies, doubling and tripling the price of gas in a matter of days.

The reaction of the people was swift, as people took to the streets in opposition to the move almost immediately. Yesterday, schools, banks and stores were shuttered, as protests and a general strike swept the nation after an emergency court banned the demonstrations on Sunday, according to Bloomberg News.

The BBC reports at least three people were killed and more than 30 injured in the protests, that drew tens of thousands of people, and are scheduled to continue indefinitely.

CNN reports a higher death toll, citing at least five reported deaths. Hadiza Halliru, an Abuja protester told the broadcaster that soaring fuel prices have caused an increase in the costs of everything from food to school fees. In Nigeria, more than 90 percent of the people live on less than $2 a day.

“The fuel hike, which has doubled and even tripled in some states, would affect not only transportation but the price of foodstuff, clothing, any form of direct labor, construction costs,” he told CNN. “But salaries still remain the same, which means everyone who directly pays bills will be affected, especially the middle class and the poor.”

In a photo on the Voice of America website, one man carries a placard that reads: “One day the poor will have nothing to eat but the rich.”

The fuel subsidy cost the government $8 billion in 2011, and some argue it never really helped the average Nigerian person get ahead. Critics of the subsidy say it filtered large amounts of money into the hands of the few, leaving the country with very little in the way of infrastructure development.

As the debate over the subsidy raged last fall, a Nigerian Tribune editorial hailed local leaders for standing up to the people profiting from the subsidy. The author, Joshua Ocheja, writes:

“We can’t sit and watch while an infinitesimal percentage of the population milk us dry in the name of fuel subsidy … It is high time we called a spade a spade in this country. Our elected officials must account for their actions and inactions as it concerns the populace.

Source

Worldwide Field Development News Dec 30 – Jan 5, 2012

Norway-Det-Norske-Pens-Important-Jette-Field-Deals

This week the SubseaIQ team added 1 new projects and updated 16 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.

Africa – Other
BG Group, Ophir Commence Drilling Program Offshore Tanzania
Jan 3, 2012 – BG Group has commenced exploratory drilling in Block 1 offshore Tanzania using the Deepsea Metro-1 (UDW drillship). The first three wells in the program will be Jodari-1, Mzia-1 and Papa-1. The operator will drill the Mzia-1 top hole section first, as part of a batch drilling program, then the rig will move to drill Jodari-1 in its entirety, before returning to Mzia-1 to complete the bottom portion of the well. Ophir spudded the Mzia-1 well in 4,921 feet (1,500 meters) of water on Jan. 1, 2012, which should take seven to 10 days. The operator will then spud the Jodari-1 well in a water depth of 3,789 feet (1,155 meters) and drill to total depth of 15,092 feet (4,600 meters) in 40 days. The Jodari prospect contains multiple stacked targets in both the Tertiary and Cretaceous sections with the former having seismic flat spot and amplitude fit to structure. Jodari is modeled to contain mean resources of 2.2 Tcf in the stacked targets. BG Group operates the blocks with a 60 percent stake; while Ophir holds the remaining interest.
N. America – US GOM
McMoRan Drills Ahead in Blackbeard East Well
Jan 5, 2012 – McMoRan has reached a true vertical depth of 33,400 feet (10,180 meters) in the Blackbeard East by-pass well, and logging operations for the section below 30,800 feet (9,388 meters) are under way. Wireline logs indicated that Blackbeard East encountered hydrocarbon bearing sands in the Oligocene with good porosity below 30,000 feet (9,144 meters). The well previously encountered 178 net feet (54 meters) of hydrocarbons in the Miocene sands above 25,000 feet (7,620 meters). Pressure and temperature data below the salt weld between 19,500 feet (5,944 meters) and 24,600 feet (7,498 meters) at Blackbeard East indicate that a completion at these depths could utilize conventional equipment and technologies. The Blackbeard East exploration well lies in 80 feet (24 meters) of water on South Timbalier Block 144. McMoRan operates the block, holding a 38.5% interest; PXP holds 31.5%; EXXI holds 18.0%; W.A. “Tex” Moncrief, Jr. holds 10%; and a private investor holds 1.6%.
Project Details: Blackbeard East
McMoRan Completes Activities at Davy Jones Discovery
Jan 5, 2012 – McMoRan is moving forward with completion activities of the Davy Jones No. 1 discovery well at South Marsh Island Block 230 in the GOM. Installation of the central processing facility for the Davy Jones No. 1 well and sales pipelines were completed. The operator plans to proceed with the completion and flow testing of the well once the wellbore is cleared. Once a flow test is completed, McMoRan expects first production from the well to be established. As previously reported, McMoRan has drilled two wells on the field. The operator expects to complete and flow test both wells in 2012. Davy Jones is located on South Marsh Island Block 234 in 20 feet (6 meters) of water. McMoran operates the block, holding a 32.7% interest; PXP holds 27.7%; EXXI holds 15.8%; Nippon Oil holds 12%; W.A. “Tex” Moncrief, Jr. holds 8.8%; and a private investor holds the remaining 3% interest.
Project Details: Davy Jones
Africa – West
Shell Resumes Bonga Production
Jan 5, 2012 – Shell has restarted production at its Bonga oil field offshore Nigeria, after an oil leak was detected. The facility was closed after a leak during a tanker loading operation on Dec. 20, leading to a serious oil spill, announced Dow Jones newswires. Shell says it completed the clean-up from the spill and resumed output on Jan. 1 at the 200,000 bopd oil field. The Bonga field is located 75 miles (120 kilometers) offshore Nigeria in Oil Prospecting License 212. SNEPCo (55%) under a Production Sharing Contract with Nigeria National Petroleum Corporation (NNPC) operates Bonga.
Project Details: Bonga
Maersk Hits Oil Pay in Pre-Salt Well in Angola
Jan 4, 2012 – Maersk Oil and partners have made a discovery in the Azul-1 deepwater exploration well in Block 23 in the Kwanza Basin offshore Angola. Azul-1, drilled in a water depth of 3,028 feet (923 meters), reached a final depth of 17,500 feet (5,334 meters). The condition of the well prevented an assessment of flow capacity by a conventional test, which was performed as a mini-DST. This test enabled the recovery of two good quality oil samples. Maersk says the preliminary interpretation of the data indicate a potential flow capacity greater than 3,000 bopd. The operator will further evaluate the results of the discovery and will proceed with exploratory work in the block. Maersk Oil is the operator of Block 23 with a 50 percent interest. Partners in the block consist of Svenska (30 percent) and Sonangol (20 percent).
Ophir Targets March to Conduct Appraisal Drilling in Block R
Jan 3, 2012 – Ophir Energy expects to secure a rig to commence a three-to-four well drilling program in the extended Block R offshore Equatorial Guinea. The program, which is designed to demonstrate sufficient gas volumes to underpin a planned second LNG train in Equatorial Guinea, will include one or more appraisal wells on Ophir’s Fortuna-1 discovery, plus exploration wells on the Tonel and Silenus prospects. Drilling should commence in late March. Ophir believes that the gas volumes in Block R are likely to range between 2 to 4 Tcf with additional upside potential in as-yet untested play types. Ophir operates the block with an 80 percent stake.
Seismic Program Commences Offshore Gabon
Jan 3, 2012 – Ophir Energy has commenced a 3D seismic program in the Mbeli and Ntsina licenses offshore Gabon. The operator is acquiring 518,921 acres (2,100 square kilometers) of data, which should take 42 days to complete. The survey is specifically designed to mature pre-salt targets for drilling in late 2012. Ophir operates the licenses with a 50 percent interest; while Statoil holds the remaining interest.
Kosmos Plans to Further Appraise Teak in 1Q12
Jan 3, 2012 – Kosmos Energy plans to commence appraisal drilling on the Teak-4 well in first quarter 2012. Teak is located in the West Cape Three Points Block, which Kosmos Energy operates with a 30.875 percent interest. Partners in the license include Anadarko Petroleum (30.875 percent), Tullow Oil (26.396 percent), Sabre Oil & Gas (1.854 percent) and Ghana National Petroleum (10 percent).
Project Details: Teak
S. America – Other & Carib.
BPZ Energy Plans to Install 2nd Platform on Corvina Field in 2H12
Jan 5, 2012 – BPZ Energy expects to install the new CX-15 platform on the Corvina field and begin a development drilling campaign in the second half of 2012. Two wells are scheduled to be completed during 2012 with first oil production expected in the fourth quarter. The Corvina oil and gas field is situated in the offshore Block Z-1 in northwest Peru. BPZ Energy operates the field with a 100% interest in the license.
Project Details: Corvina
Rockhopper Completes Sidetrack
Dec 30, 2011 – Rockhopper Exploration has completed coring and logging operations at well 14/15-4z in the Falkland Basin. The sidetrack well, about 41 feet (12.5 meters) from the main wellbore, reached a total depth of 8,383 feet (2,555 meters) MD. A total of 377 feet (115 meters) of core was cut through the hydrocarbon-bearing Beverley, Casper South, Casper and Sea Lion reservoirs bringing the total amount of core cut during the entire drilling campaign to 1,493 feet (455 meters). Rockhopper says that drilling of the well has completed the commitments required to earn the 60 percent interest and operatorship of license PL004b. The well will now be plugged and abandoned.
Project Details: Sea Lion
Australia
Apache Plans to Appraise Zola in 2012
Jan 3, 2012 – Apache plans to acquire new 3D seismic data over the Zola gas discovery, located in WA-290-P, in June 2012 with processing to follow. Appraisal drilling is set to follow. The field is located in a water depth of 935 feet (285 meters) offshore Western Australia. Apache operates the permit, holding a 30.25% interest.
Project Details: Zola
Europe – North Sea
Aker to Supply Production System for Boyla Development
Jan 5, 2012 – Marathon awarded Aker Solutions a contract to supply a subsea production system for the Boyla (formerly Marihone) development in the Norwegian sector of the North Sea. The scope of work includes engineering, procurement, construction and delivery of four subsea trees, four over-trawlable subsea structures and control systems. Final deliveries will be made in 1Q 2013. The Boyla field, located in Production License 340 in 394 feet (120 meters) of water, will be subsea tied-back to the Alvheim FPSO. Marathon operates the project with a 65 percent interest; while ConocoPhillips holds 20 percent; and Lundin holds 15 percent.
Project Details: Alvheim
Statoil Finds More Oil in Gullfaks Area
Jan 5, 2012 – Statoil found more oil in the Skinfaks South field in the Norwegian sector of the North Sea. The operator confirmed the discovery of light oil in Middle Jurassic reservoir rocks (Brent group) and an 262-foot (80-meter) high column in good-quality reservoir rocks. Drilled to a vertical depth of 12,211 feet (3,722 meters), the well concluded in the Drake formation in Middle Jurassic rocks. The field is located on Block 33/12, directly west of the Gullfaks field in the Tampen area. Serving as operator of the block is Statoil with a 70 percent interest; while Petoro holds the remaining interest.
Project Details: Greater Gullfaks Area
Noreco Divests Interests in PL 435
Dec 30, 2011 – Norwegian Energy Company (Noreco) has completed the sale of its interest in license PL 435, containing the gas discovery Zidane-1, to OMV. Noreco is also under certain conditions entitled to an additional consideration if a discovery is made in the upcoming exploration well Zidane-2. The license contains the Zidane-1 gas discovery, which was made in 2010, and is estimated to contain between 5 and 18 Bcm of recoverable gas.
Project Details: Zidane
S. America – Brazil
Petrobras Signs Lease, Operating Contract for Marlim Sul FPSO
Jan 5, 2012 – SBM Offshore has received an extension of 26 months for the lease and operating contract of the Marlim Sul FPSO from Petrobras. The extension begins in April 2012, at the end of the initial lease period, which was eight years. The vessel is capable of processing 100,000 bopd and 2.3 MMcm/d of gas compression. The produced gas is exported through Campos Basin pipelines. The vessel is moored in a water depth of 4,692 feet (1,430 meters), and has five oil producers and four water injectors tied-back to the FPSO.
Project Details: Marlim Sul (South)
Petrobras Finds Light Oil in Golfinho Concession
Jan 3, 2012 – Petrobras has discovered a light oil and natural gas accumulation in the Golfinho Concession (4-BRSA-1001-ESS) offshore Brazil. The discovery was made during the drilling of well 4-GLF-31-ESS, known as Tambuata, in a water depth of 4,987 feet (1,520 meters). Petrobras will continue to drill the well at a depth of 20,013 feet (6,100 meters) in order to test deeper formations. Reservoirs from the Cretaceous Period, Santonian Age were identified and are already producing in the field, at a depth between 14,862 and 15,322 feet (4,530 and 4,670 meters), stated the operator. The reservoirs are in good condition for production.
Petrobras Submits DOC for Guara Development
Jan 3, 2012 – Petrobras has submitted a Declaration of Commerciality with the Brazilian National Agency of Petroluem, Natural Gas and Biofuels for the accumulations of light oil and gas in the Guara area. This declaration marks the start of the production phase for the field. The consortium will rename the field as Sapinhoa. The consortium drilled four wells in the area, including one well designed for reservoir data acquisition. Drill stem tests were performed on three of the wells. In addition, a five-month extended well test was carried out on the discovery well, confirming the excellent productivity of the Guara reservoir. Data gathered from this test will assist in the optimization of the field development plan. Guara is located in Block BM-S-6 about 186 miles (300 kilometers) off the Sao Paulo state coast. Petrobras serves as the operator of the consortium, holding a 45 percent interest; while BG Group holds 30 percent; and Repsol Sinopec Brazil holds 25 percent.
Project Details: Sapinhoa (Guara)
Petrobras Estimates Guara Presalt Area Holds 2.1B BOE
Dec 30, 2011 – Petrobras estimates that the Guara presalt area holds roughly 2.1 Bbbl of oil equivalent in Brazil’s Santos basin. The new field, located in BM-S-9 block, is formed by reservoirs of high-quality oil. Petrobras sent a declaration of viability to Brazil’s national oil regulator, ANP, a year ahead of the deadline it was given. The company plans to submit a development plan to the organization in February.

Source

USA: Busy December Ahead of Pacific Drilling’s Drillships

image

Pacific Drilling S.A. today provided an update on the status of its ultra-deepwater drillships.  The Pacific Bora commenced its three year contract with a wholly owned Chevron subsidiary on August 26, 2011, and continues to operate in the Agbami Field in Nigeria. The rig has reached performance levels in line with industry expectations.

In addition, following previously announced repairs and upgrades, the Pacific Scirocco is mobilizing from quayside in Port Ngqura, South Africa, to Nigeria, where it is expected to commence a one year contract with Total E&P Nigeria Limited in December 2011.

The Pacific Santa Ana will complete upgrades prior to expected delivery in December 2011, before mobilizing to the US Gulf of Mexico for a five year contract with Chevron as the world’s first dual gradient drilling rig.

The Pacific Mistral arrived in Rio De Janeiro, Brazil, on November 21, 2011. The rig will now undergo regulatory approvals and acceptance testing with its client, Petrobras, prior to beginning operations, which are expected to start in December 2011.

Source

Usan Production Will Mitigate Yemen Loss, Nexen Says

image

Government of Yement today informed Nexen that the company’s application to extend the Block 14 (Masila) Production Sharing Contract has not been accepted, and that a newly Yemen national company will take over the operatorship of the block upon the PSC expiry on December 17.

Marvin Romanow, Nexen’s President and CEO said: “While we’re disappointed we did not receive an extension, we’re proud of the accomplishments we’ve achieved there. Our operations at Masila have generated significant value for our company, enabling us to deploy the cash flow to build our current portfolio of legacy assets.”

Nexen explained on its website that decrease in the company’s all round production volumes as a result of the contract expiry will be reduced by the start-up of the Usan project, offshore Nigeria, which is expected to begin production in the first half of next year.

The Usan field was discovered in 2002 and is located some 100 kilometers offshore in water depths ranging from 750 to 850 meters. The field development plan includes a floating production, storage and offloading (FPSO) vessel with a storage capacity of two million barrels of oil.

Source

Dutch Fairmount Escorts Scarabeo 9 Rig around the Cape of Good Hope, South Africa

image

Fairmount Marine, a Dutch marine contractor for ocean towage and heavy lift transportation, announces that its powerful tug Fairmount Glacier has successfully assisted the new build semi submergible drilling rig Scarbeo 9 sailing around Cape of Good Hope.

For this operation Fairmount was contracted by Saipem Energies directly after the successful installation of  the Usan FPSO Unit offshore Nigeria.

Fairmount Glacier was contracted to sail towards a meeting point offshore South Africa where she met with Scarabeo 9 and escorted her safely around the Cape of Good Hope. Despite the bad weather encountered during the route, the  convoy proceeded at an average speed of 4.5 to 5.0 knots.

The semi submersible drilling rig Scarabeo 9 has a length of 115 metres, is 80 metres wide and her depth – from keel to main deck – is 35 metres. After they had safely cleared the South African Coast, the Master of Scarabeo 9 thanked Fairmount  Glacier for her continued support throughout the voyage. The Fairmount Glacier returned to Cape Town.

Source

%d bloggers like this: