Daily Archives: December 15, 2011

Worldwide: Field Development Project News

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

Dec 9 – Dec 15, 2011

This week the SubseaIQ team added 0 new projects and updated 22 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
Anadarko Spuds Lagosta-2 in Rovuma Area 1
Dec 13, 2011 – Anadarko is currently appraising its Lagosta-2 well with plans to complete it towards late January 2012. The well is located Offshore Area 1 of Mozambique???s Rovuma Basin. The discovery well encountered more than 550 net feet (168 net meters) of natural gas pay in multiple high-quality Oligocene and Eocene sands. The consortium is currently in early-stage discussions with major LNG off-takers in the Asian and European markets to secure long-term commercial contracts for the planned production from the Rovuma Area 1 project. Anadarko operates the area with a 36.5% working interest. Co-owners in the area include Mitsui E&P Mozambique Area 1, Limited (20%), BPRL Ventures Mozambique B.V. (10%), Videocon Mozambique Rovuma Offshore, Ltd. (8.5%).
Project Details: Lagosta
Africa – West
SBM Offshore, Eni Finalize Xikomba FPSO Lease and Operate Contract
Dec 14, 2011 – Eni and SBM Offshore have executed contracts for the 12-year charter and operation of Xikomba FPSO for Block 15/06. The development plan calls for the relocation of the existing Xikomba FPSO, which has been operated under contract for ExxonMobil since 2003. The vessel will undergo a major upgrade in order to meet new project specific requirements. First production from the FPSO is targeted for 2014.
Project Details: Kizomba, Block 15
N. America – Canadian Atlantic
Husky Conducts Testing on West White Rose
Dec 12, 2011 – Suncor Energy, a partner in the White Rose project, stated that operations are proceeding on the field with a pilot project to provide additional information about the West White Rose field that is part of the White Rose Extension. The operator completed two pilot wells in 3Q 2011, with water injection support expected to come on-stream late in 2011. The subsea development will connect to the SeaRose FPSO, which has a storage capacity of 940,000 barrels of oil. The White Rose field is located about 217 miles (349 kilometers) east of St. John, Newfoundland.
Project Details: White Rose
N. America – US GOM
Anadarko Sanctions Lucius Development in GOM
Dec 15, 2011 – Anadarko has given the green light for the development of the deepwater Lucius development in the GOM. The development plan calls for six producing wells connecting to a truss spar with a production capacity of 80,000 bopd and 450 MMcf/d. The spar is currently being constructed at Technip’s facility in Pori, Finland. Drilling will begin in 2012 with first production slated for 2014.
Project Details: Lucius
Subsea 7 Scores Two GOM Contracts
Dec 12, 2011 – Subsea 7 received two engineering and installation contracts from Shell for the Cardamom and West Boreas projects in the GOM. The company’s scope of work on West Boreas is the installation of a 20,000 feet (6,096 meter) long umbilical, as well as subsea distribution hardware for the field. Installation will occur in water depths of up to 3,146 feet (959 meters) in the Mississippi Canyon block area. For the Cardamom project, the company will install a 30,400 feet (9,266 meters) long umbilical plus subsea distribution hardware for the field in water depths up to 2,999 feet (914 meters) in the Garden Banks block area. Subsea 7 will use the Skandi Neptue construction vessel for both projects. Both oil fields are slated to commence production in 2013.
Project Details: Auger
ATP Succesfully Tests Clipper Well
Dec 12, 2011 – ATP has successfully completed and tested the second Clipper well on the field in the deepwater GOM, which flowed at rates of 9,000 Bbls per day and 4.6 MMcf/d. This well, combined with the first Clipper well, brings the total test rates to about 13.7 MBbls of oil per day and 50.2 MMcf/d of natural gas or 22 MBbls equivalent per day. The well logged about 56 feet (17 meters) of net oil pay, confirming reserves previously booked. ATP has hired a pipeline lay barge for the Clipper wells until 3Q 12, and will tie-in both the GC 300 No. 4 and No. 2 wells to the Murphy Oil-operated Front Runner production facility. Clipper No. 4 is located at Green Canyon Block 300, and resides in 3,450 feet (1,052 meters) of water. ATP operates Green Canyon block 300 with a 55 percent working interest.
Project Details: Clipper
Noble to Appraise Gunflint
Dec 12, 2011 – Appraisal operations should commence on the Gunflint discovery in the near future. The operator plans to use the ENSCO 8501 (UDW drillship) to appraise the find to help determine the resource range of the discovery before final development planning and sanctioning of the field occurs. A discovery was made on Gunflint in October 2008. Noble Energy operates the oil discovery, which is located on Mississippi Canyon Block 948 in the GOM.
Project Details: Gunflint (Freedom)
S. America – Other & Carib.
Kosmos Enters Suriname Acreage
Dec 14, 2011 – Kosmos Energy has signed two Production Sharing Contracts with Staatsolie Maatschappij Suriname N.V., the national oil company of Suriname, for Blocks 42 and 45 offshore Suriname. The two blocks span nearly three million gross acres, in water depths of between 650 and 8,500 feet (198 and 2,591 meters). Block 42 covers 1.5 million acres and Block 45 extends 1.3 million acres. Drilling has not occurred in either block. In the initial exploration phase under each of the contracts, Kosmos plans to acquire 3D seismic data. First drilling is targeted for 2014. Kosmos will wholly own and operate both blocks, making it the first acreage acquired by the company outside of West Africa.??
CGX Energy Preparing to Drill Eagle-1 in 2012
Dec 13, 2011 – CGX Energy plans to spud its Eagle-1 prospect in the Corentyne Petroleum License in 1Q12. The well has a proposed depth of 14,000 feet (4,267 meters) and will be drilled by the Ocean Saratoga (mid-water semisub).
Rockhopper Hits Again in Falkland Basin
Dec 13, 2011 – Rockhopper Exploration has made its third discovery in the north Falkland Basin. The 14/15-4 well penetrated multiple reservoir targets: Beverley, Casper South, Casper and Sea Lion Main Complex. A recently performed wireline logging and formation test have indicated that all four targets are hydrocarbon-bearing, and no water wet sands were observed in the well. The well also encountered hydrocarbons in the Beverley and Casper South reservoirs. The well penetrated the Beverley prospect near the crest of the structure. The gross reservoir package of 89 feet (27 meters) was approxiametly 33 feet (10 meters) thicker than prognosed, while net gas pay was 85 feet (25.8 meters). However, an analysis of mud logs indicates the gas is likely to be a wet gas. Rockhopper believes that the gas/oil contact observed in Casper at well 14/10-9 and Casper South at well 14/15-4 is likely to exist in Beverley. As a result, the company believes Beverley may be oil-bearing downdip. Furthermore, it was discovered that Casper South has a separate fan lobe, to the south of and apparently in communication with the Casper fan, which the company mapped to extend over an area of greater than 100 square kilometers with significant down-dip oil potential. The well also penetrated the Sea Lion Main Complex, about 7.5 miles (12.1 kilometers) from the 14/10-2 discovery well, 4 miles (6.3 kilometers) to the south of well 14/10-9 and 8.5 miles (13.8 kilometers) from the northern most successful appraisal well 14/10-7. Rockhopper believes the well is close to the southernmost limit of the Sea Lion field and at the outer edge of its former maximum case area. Rockhopper will now complete a short offset sidetrack to obtain core in the Beverley, Casper South and Sea Lion Main Complex formations.??The company earned a 60 percent interest through the drilling of the well, which was previously controlled by Desire Petroleum.
Project Details: Sea Lion
Repsol Commences Exploratory Drilling Offshore Guyana
Dec 12, 2011 – Repsol has spud the Jaguar prospect offshore Guyana using the Atwood Beacon (400 feet ILC). The high-pressure, high-temperature well is located in the Georgetown Block near the border with Suriname. The well has a proposed total depth of 21,325 feet (6,500 meters) with drilling operations expected to last six months. Partners in the Georgetown Block are Repsol (operator, 15 percent); YPF (30 percent); Tullow Oil (30 percent); CGX (25 percent).
Australia
Chevron Hits Gas Pay in Vos-1
Dec 15, 2011 – Chevron has made a natural gas discovery in the Exmouth Plateau area of the Carnavon Basin, offshore Western Australia. The Vos-1 well encountered about 453 feet (138 meters) of net gas pay. Chevron stated that this is the 12th offshore discovery made in Australia since mid-2009. Vos-1 reached a depth of 12,461 feet (3,798 meters) in a water depth of 4,869 feet (1,484 meters). Chevron operates the WA-439-P permit with a 50 percent interest with Shell holding the remaining interest.
Apache Plugs, Abandons Hannah-1
Dec 13, 2011 – Apache plugged and abandoned its Hannah-1 well after the well came up dry. The primary target was intersected at 3,937 feet (1,200 meters), but significant hydrocarbons were not present in the reservoir. The well reached total depth at 4,488 feet (1,368 meters). The well is located in permit TP/8, about 11 miles (18 kilometers) east of Barrow Island. TP/8 joint ventures consist of Apache (operator, 68.50 percent), Kufpec (19.27 percent) and Tap (12.22 percent).
Project Details: Hannah
Europe – North Sea
BP Delays Skarv Production Date
Dec 15, 2011 – PGNiG, a partner in the Skarv development, says that production from the field will defer from the first quarter 2012 to the second quarter 2012. The consortium has rescheduled the installation work, and says that this will significantly reduce the need of the planned stoppages in production in 2012. Natural gas production for 2012 was revised and forecasted at .211Bcm, instead of the previously reported .240 Bcm. Production of crude oil (including Natural Gas Liquids) in 2012 is estimated at 180 thousand tonnes, instead of the previously reported 250 thousand tones. Located in the northern part of the Norwegian Sea, the Skarv/Idun unit consists of two separate fields, situated in water depths of 1,148 to 1,476 feet (350 to 450 meters). The unitized equity of the project, which BP serves as the operator, is BP (24 percent), Statoil (36 percent), E.On Ruhrgas Norge AS (28 percent), and PGNiG Norway AS (12 percent).
Project Details: Skarv/Idun
Providence Encounters Notable Gas Shows in Barryroe
Dec 14, 2011 – Providence Resources announced that well 48/24-10 has encountered notable gas shows in the PSE Seven Heads Limited operated gas reservoir, which overlies the Barryroe oil discovery. The well has reached section total depth of 4,038 feet (1,231 meters) true vertical depth subsea, with the key geological horizons encountered close to the pre-drill depth prognosis. Following casing of this section, the well will be drilled through the underlying primary and secondary Barryroe oil reservoir targets to a TD of 7,464 feet (2,275 meters) TVDSS.??The GSF Artctic III semisub is drilling the well. Barryroe is located in 328 feet (100 meters) of water about 31 miles (50 kilometers) offshore Ireland in Standard Exploration License (SEL) 1/11. Providence operates the license with a 50 percent interest.
Project Details: Barryroe
Valiant Progresses with Causeway Development
Dec 14, 2011 – Project execution for the Causeway development is progressing with all of the long-lead items now ordered with main contracts in place. First oil is anticipated to commence in the second half of 2012. Causeway is located on Blocks 211/22a and 211/23d in a water depth of 350 feet (107 meters) in the UK sector of the North Sea.
Project Details: Causeway
Petrofac Finalizes Don Work Program
Dec 14, 2011 – Petrofac and Valiant Petroleum are currently finalizing the Don Area work program for 2012. The scope of work includes a new production well on Don Southwest, a new water injection well on West Don and a sidetrack of an existing West Don production well, which is currently shut-in. Don Southwest is located on UK Block 211/18a roughly 6 miles (9.5 kilometers) away from the UK/Norway median line. The field is 60 percent owned by Petrofac, serving as operator; Valiant owns the remaining 40 percent interest.
Project Details: Don Area
Premier Plans to Commence Drilling on Bluebell
Dec 13, 2011 – Premier plans to spud the Bluebell exploration prospect by year-end. Canadian Overseas Petroleum Limited, who entered a farm-in agreement with Premier last year, said a drilling vessel has been contracted. The well has a target depth of 7,550 feet (2,300 meters) to evaluate the Paleocene anomaly. Bluebell is located on UK Blocks 15/24c and 15/25f.
Project Details: Bluebell
Suncor Proposes to Drill Romeo in 3Q12
Dec 12, 2011 – Suncor Energy plans to drill a well on the Romeo prospect, a HPHT well, in 3Q12. The Romeo prospect is considered a small, rotated Upper Jurassic fault terrace on the flank of the West Central Graben. The prospect lies in Block 30/11c, which covers an area of 11,738 acres (47.5 square kilometers) and is located in the UK sector of the North Sea. The water depth of the site is 280 feet (85 meters). Suncor Energy operates the block.
Ithaca Updates Ops on Athena Development
Dec 12, 2011 – Ithaca Energy announced that conversion operations on the Athena FPSO is still underway, however, the conversion scope has proved to be more extensive than previously thought. BW Offshore, the party responsible for the conversion, and Dubai Dry Docks have completed a fast-track engineering project to deliver the vessel close to the original schedule. Additional work is being performed to ensure that production is not delayed once the vessel is moored on the field, stated the operator. Once the vessel leaves Dubai, it will sail to the North Sea and hook-up to the pre-installed production buoy. In-field commissioning will be minimized by the comprehensive dockside commissioning being undertaken in Dubai. It is anticipated the vessel will sail from Dubai in early 2012. Furthermore, installation of subsea equipment has progressed well and remains within schedule; and all development wells are ready for production. The Athena field lies on Block 14/18b in 440 feet (134 meters) of water. Ithaca Energy serves as the operator of the field, holding a 22.5% interest; Dyas UK Ltd. holds 47.5%; EWE holds 20%; and Zeus holds the remaining 10% interest.
Project Details: Athena
ConocoPhillips Hits Gas Pay in North Sea
Dec 12, 2011 – ConocoPhillips has discovered gas in wildcat wells 7/11-12 S and 7/11-12 A on the Peking Duck field in the Norwegian sector of the North Sea, about 12 miles (19 kilometers) southwest of the Ula field. The objective of well 7/11-12 S was to prove petroleum in Triassic reservoir rocks. A 131-foot (40-meter) gross gas column was encountered in Jurassic age reservoir rocks, but the reservoir quality in Triassic rocks was poorer than expected. The objective of the sidetrack, drilled higher in the structure on a separate segment, was to prove petroleum in Upper Jurassic rocks and in Triassic rocks. The well encountered a 112-foot (34-meter) gross gas column in Jurassic rocks with poorer reservoir quality than expected. ConocoPhillips needs to further evaluate the well results to calculate the size of the discovery. ConocoPhillips is the operator of Production License 301 CS, holding a 22% interest. The other licensees on the field include OMV (30%), Dong (28%), and Talisman (20%).
Project Details: Peking Duck
Mediterranean
NZOG Farms-In to Tunisian Concession
Dec 14, 2011 – New Zealand Oil & Gas signed an agreement to acquire a 40 percent stake in a Tunisian concession containing the Cosmos South oil field. The Cosmos Concession is located in the Gulf of Hammamet, offshore Tunisia. The concession was held by a joint venture consisting of Storm Ventures International (80 percent, operator) and L’Enterprise Tunisienne d’Activites Petrolieres (20 percent). Storm, a wholly-owned subsidiary of Chinook Energy, will reduce its share of the concession to 40 percent under the farm-in agreement. A development plan is being prepared, and if approved through a Final Investment Decision, NZOG will pay the first US $19MM of Storm???s share of the development costs. The development plan is based on three wells, a small platform and an FPSO, with initial production rates targeted at 15 to 20M barrels of oil per day. A decision on the FID is slated for mid-2012, and if approved, first oil production is anticipated for mid-2014. Independently evaluated proved and probable oil reserves of 6.3 MMbbl have been attributed to the Cosmos South Block, with the potential of additional capacity from adjacent lobes. These reserves will be further assessed before the submission of the FID. The discovery was made in 1983, with a smaller adjacent discovery made in 1985. The water depth of the site is 394 feet (120 meters).
S. America – Brazil

OGX Plans to Flow Oil from Campos Basin in 1Q12
Dec 15, 2011 – OGX has pushed the date of first oil back from the OSX-1 FPSO until January. The company expects the FPSO and offloading tanker to leave the port of Rio de Janeiro on Christmas day, and anticipates for production to commence on January 23. Furthermore, preparatory work in the Waimea field was carried out. The Waimea field is located 37 miles (60 kilometers) off the coast of Rio de Janeiro in water depths ranging from 394 to 459 feet (120 to 140 meters).

USA: Anadarko, Partners Give Nod for Lucius Project in Deepwater GoM

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Anadarko Petroleum Corporation announced that it, along with its co-venturers, have sanctioned the development of the Lucius project, located in the Keathley Canyon area of the deepwater Gulf of Mexico.

“We are very pleased to achieve this important milestone in the development of the deepwater Lucius project,” said Anadarko President and Chief Operating Officer Al Walker. “We expect Lucius to be among the most economic projects in our portfolio, as we plan to utilize ‘off-the-shelf’ technology and leverage our proven project-management skills in an area where we have extensive expertise. We estimate the Lucius unit holds more than 300 million BOE (barrels of oil equivalent) with relatively shallow and highly productive reservoirs that can be developed in a capital-efficient manner. Once completed, Lucius will establish important infrastructure in an emerging area of the Gulf of Mexico where we have identified additional prospects and opportunities. We expect to have an active drilling program in the unit beginning in 2012, and we look forward to working with our partners to achieve first production in 2014.”

Technip's Yard in Pori Finland

Lucius will be developed with a truss spar floating production facility with the capacity to produce in excess of 80,000 barrels of oil per day and 450 million cubic feet of natural gas per day. The spar is currently under construction at Technip’s facility in Pori, Finland and will be the largest of Anadarko’s operated spars — a deepwater production solution pioneered by the company in 1997.

The Lucius unit includes portions of Keathley Canyon blocks 874, 875, 918 and 919. Anadarko operates the unit with a 35-percent working interest. Following the previously announced unitization agreement, Lucius interest owners entered into an agreement with the Hadrian South co-venturers, whereby natural gas produced from the Hadrian South field will be processed through the Lucius facility in return for a production-handling fee and reimbursement for any required facility upgrades.

Co-venturers in the Lucius unit include Plains Exploration & Production Company with a 23.3-percent working interest; Exxon Mobil Corporation​ with a 15-percent working interest; Apache Deepwater LLC, a subsidiary of Apache Corporation with an 11.7-percent working interest; Petrobras with a 9.6-percent working interest; and Eni with a 5.4-percent working interest.

Source

Milestone Achievement for AGR’s Drilling Technology in Chirag Field, Azerbaijan

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Oil & Gas industry solutions provider AGR is celebrating a milestone achievement for its drilling technology.  Its Riserless Mud Recovery system (RMR™) and Cutting Transportation System (CTS™) have now been deployed on more than 500 wells.

This achievement is not only an indication of AGR’s experience but also of the continued need from the industry for the technology devised by the Norwegian firm’s Enhanced Drilling Solutions division.

David Hine, EVP Enhanced Drilling Solutions, said: “This achievement is a reflection of the ground-breaking technologies that we pride ourselves at AGR and confirms their continued popularity with operators the world over. It also demonstrates the hard work, dedication and ingenuity of the people who work here.

“AGR will continue to further its reputation for step-change technological solutions into 2012 with our EC-Drill™ managed pressure drilling system. This will be deployed for the first time early next year.”

Well number 500 was on the Caspian Sea’s Chirag Oil Project field, located 120 km (75 mi) east of Baku, Azerbaijan and a part of the larger Azeri-Chirag-Guneshli (ACG) project. It was drilled using RMR™ in order to solve the challenge of the area’s weak clay formation. The client was BP, which was the first user of RMR™, again in the Caspian, in 2003.

RMR has been an industry changer since it was introduced. It allows engineered mud to be used in the top-hole section of a well, enabling a much more stable foundation for successful drilling, with all mud and cuttings being returned to the rig.

The top-hole section can be drilled more safely, quickly and with far less impact on the environment, says AGR on its website.

CTS enables operators to take cuttings, cement, mud, clay and other deposits away from the well area, keeping templates debris free. Because of this, it has had a major impact on the validity of drilling operations in areas that have been deemed is being particularly environmentally sensitive. The system was first used by Statoil on the Gullfaks field in 1998.

EC-Drill™ solves the challenge of the narrow-pressure window in deep-water well drilling, where too much bottom hole pressure (BHP) can cause the formation to fracture; too little may cause an influx. EC-Drill offers greater control of the BHP as it is not regulated by mud-weight but the level of fluid in the riser.

Not only is there the potential to reduce the number of casings, saving time and money, but safety is also enhanced thanks to improved kick/loss detection, improved hole stability and the possibility of drilling with riser margin.

Source

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Constitution, Anyone? Obama Promises to Rule… Without Congress

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Mike Brownfield

December 14, 2011 at 4:00 pm

Well, we can’t say he didn’t warn us. After the November 2010 elections when the President’s party lost control of the U.S. House, Barack Obama told America that where he can’t legislate, he will regulate. In the last year, he lived up to that pledge, and now he’s promising to do even more of it in 2012.

With 2011 coming to a close and the President about to embark on an election year, he is unabashedly showing his cards and telling America that he’s going to enact his agenda, whether the legislative branch is with him or not. Real Clear Politics captured the President’s words from an interview with KOAA-TV in Colorado Springs, Colorado. Reporter Rob Quirk asked what we can expect from the President over the next year. Obama’s response:

Well, what we’re going to have to do is continue to make progress on the economy over the next several months. And where Congress is not willing to act, we’re going to go ahead and do it ourselves. But it would be nice if we could get a little bit of help from Capitol Hill.

Make no mistake, those words weren’t a slip of the tongue. It’s the same line the President uttered in his 60 Minutes interview with Steve Kroft that aired Sunday. Here’s the relevant excerpt:

Kroft: Do you have any hope that anything is gonna get accomplished between now and the next election?

Obama: If I have anything to do about it, absolutely. We’re gonna keep on pushing to get things done. I want to work with Congress. I want to work with both parties in Congress. I think that we can still make progress on a balanced approach to deficit reduction. What I’m not gonna do is wait for Congress. So wherever we have an opportunity and I have the executive authority to go ahead and get some things done, we’re just gonna go ahead and do ‘em.

As Heritage has detailed here and here, whether it is in the area of environmental regulations, labor and immigration law, No Child Left Behind, the auto bailout, the selective enforcement of other federal laws, and the regulation of the Internet (among others), the Obama Administration has in fact enacted its agenda via legislative fiat. So what’s the problem? A big thing called the U.S. Constitution and the separation of powers. The Honorable Douglas Ginsburg explains:

Articles I, II, and III of the Constitution respectively vest the legislative, executive, and judicial powers each in a separate department of the federal government. This separation of powers, which draws upon ideas advanced by John Locke, Baron de Montesquieu, and Sir William Blackstone, reflects the Framers’ intention that undue power not be combined in any one department lest, being unchecked, it become tyrannical.

The separation, by which each department may exercise only its own constitutional powers, is fundamental to the idea of a limited government accountable to the people. The principle is particularly noteworthy in regard to the Congress. The Constitution declares that the Congress may exercise only those legislative powers “herein granted.” That the power assigned to each branch must remain with that branch, and may be expressed only by that branch, is central to the theory.

In short, it’s Congress’ job to legislate, not the President’s, whether Barack Obama likes it or not.

Read more about the separation of powers in Legislative Powers: Not Yours to Give Away at Heritage.org.

Posted in First Principles

Source

Lucius: Deepwater Gulf of Mexico

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Located in the deepwater Gulf of Mexico on Keathley Canyon Blocks 874, 875, 918 and 919 (Lease OCS-G-21444) in a water depth of 7,126 feet (2,172 meters) is the Lucius oil and gas field. Acquired by Anadarko, formerly Kerr-McGee, at the Western GOM Lease Sale No. 174 in 2005, the company holds a 35% interest in the field. Co-owners in the discovery include Plains Exploration & Production PEP 23.33%; Anadarko 35%; ExxonMobil 15%; Petrobras 9.6%; and Eni 5.4%

A discovery was made at the Lucius prospect in December 2009. The discovery well encountered more than 200 feet (61 meters) of net pay in subsalt Pliocene and Miocene sands. Lucius was drilled to a total depth of about 20,000 feet (610 meters) by the ENSCO 8500 semisub.

A sidetrack appraisal well was then drilled in January 2010, encountering almost 600 net feet (183 meters) of high quality oil pay with additional gas-condensate pay in thick subsalt sands. Drilled as an up-dip sidetrack roughly 3,200 feet (975 meters) south of the discovery well, the appraisal well reached a total depth of 20,600 feet (6,279 meters) in 7,100 feet (2,165 meters) of water.

Field Development

Anadarko sanctioned the development on Dec. 15, 2011. The development plan calls for six producing wells connecting to a truss spar with a production capacity of 80,000 bopd and 450 MMcf/d of natural gas.
The spar is currently being constructed at Technip’s facility in Pori, Finland. Drilling will begin in 2012 with first production slated for 2014.

Source

LWI Vessels: Important Tool for Increasing Recovery

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Statoil is cutting the costs of increased recovery from fields in operation by hiring in light well intervention vessels. As of December Statoil has three light well intervention vessels in operation.

Statoil awarded Island Offshore a framework agreement earlier this year for light well intervention (LWI) services from their Island Constructor vessel.  The new vessel is set for operation in December, and is Statoil’s third light well intervention vessel in operation on the Norwegian continental shelf (NCS).

Light well intervention vessels – known as cat A – are an important tool to increase recovery from the fields on which Statoil operates.

Compared with conventional drilling units, these LWI vessels reduce the cost of well interventions substantially. Reduced well intervention costs also helps increase the number of interventions.

“Performing conventional jobs of this kind for subsea developments in areas with low volumes of oil in place has been expensive,” says Statoil drilling and well technology operations manager Øyvin Jensen.

“To address this, Statoil has put LWI vessels into service on a large scale. This is of high value to us, both in terms of efficiency and cost reduction.”

Light well intervention vessels are an important tool in Statoil’s toolbox to increase field recovery. A growing number of discoveries are developed via subsea installations. At the same time, production from mature fields is declining.

Wells need workover in order to maintain their output. These have historically been expensive operations on subsea developments.

Utilising light well intervention vessels contributes to a more cost-effective maintenance of subsea wells, improves drilling efficiency, and provides the potential to offset rig capacity.

Statoil has pursued riserless wirelining in subsea wells since 2000, and the technology has steadily improved.

Statoil issued a new tender for light well intervention vessels this autumn. The invitation to tender was issued in October, and the bids are due in December this year.

“We already have three light well intervention vessels in our portfolio. The new tender process will cover our needs for light intervention services when the existing vessels come off contract,” says Statoil vice president for drilling and well procurement Terje Rognan.

“We are tendering for a minimum of two such vessels and are open for long-term commitments. With 487 subsea wells on the NCS, it is evident that this is an important market segment for Statoil going forward and subsequently of high interest for the supplier industry and shipowners.”

Facts

  • Light well intervention vessels are connected to a well with the aid of a toolbox lowered to the seabed
  • The vessels can carry out logging and wireline operations, but not drill
  • During LWI, downhole equipment is remotely operated via a wireline from the surface and – unlike rigs – without a riser.
  • Currently three LWI vessels – Island Wellserver, Island Frontier and Island Constructor – have been contracted by Statoil on the NCS.

Source

India unease as China debates naval base in Seychelles

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China’s ministry of defence said the Seychelles would allow naval vessels to take on supplies in anti-piracy campaigns, but initiative is likely to viewed with unease in India.

Daniel Bardsley (Foreign Correspondent) and Suryatapa Bhattacharya

BEIJING // China is considering an offer from the Seychelles to set up a supply base for its naval ships, in a move to be closely watched by India.

Details of Beijing‘s tie with the Indian Ocean archipelago come as the Chinese navy holds sea trials for its first aircraft carrier and continues making double-digit defence spending increases that are strengthening the country’s naval power.

China’s naval ambitions are a concern for many of its neighbours, especially given the assertiveness Beijing has shown in recent maritime disputes with Japan in the East China Sea, and Vietnam and the Philippines over the South China Sea.

State media quoted the defence ministry as saying that the port in the Seychelles was still under consideration, while the Chinese authorities reaffirmed the country’s policy of not stationing troops overseas.

“China’s position is clear. China has never set up military bases in other countries,” said the foreign ministry spokesman, Liu Weimin.

China’s ministry of defence said the Seychelles would allow naval vessels to take on supplies, while Chinese ships were assigned to anti-piracy patrols in the Gulf of Aden.

The Chinese navy has previously taken on supplies in Oman, Yemen and Djibouti when carrying out missions against pirates from Somalia, Reuters reported yesterday.

“According to escort needs and the needs of other long-distance missions, China will consider taking supplies or recuperating at appropriate ports in the Seychelles and other countries,” said a defence ministry statement. But Joseph Cheng, a regional political analyst at the City University of Hong Kong, said it was “to be expected” that China would develop more advanced centres to support its growing navy.

He added that initially these would simply be supply bases of the kind proposed in the Seychelles but repair facilities would likely be developed later.

The issue of Chinese naval activity in the Indian Ocean is of particular interest to India, which has long-standing border disputes with China and is deeply suspicious of the country’s close ties with its archrival, Pakistan.

There was no official reaction from India’s government yesterday, but The Times of India said China’s initiative “was bound to create a degree of unease in New Delhi”.

Retired Brigadier Rumel Dahiya, the deputy director general of the Institute for Defence Studies and Analyses in New Delhi, said the move would go beyond a piracy-related issue.

“This is clearly a case of China trying to establish a greater base in the Indian Ocean. They are expanding their reach,” he said.

Christian Le Mière, a research fellow for naval forces and maritime security at the International Institute for Strategic Studies, said India may view any agreement with the Seychelles as “indicative of Chinese naval expansionism into India’s back yard”.

“It is not necessarily a direct threat to India, in much the same way that Diego Garcia [a US navy base] is not a direct threat to India currently. Arguably Chinese counter-piracy efforts are beneficial for global trade and hence for Indian interests as well,” he added.

The China Daily newspaper said the invitation from the Seychelles was issued during a visit by Liang Guanglie, the defence minister, earlier this month. It was the first time a Chinese defence minister has visited in 35 years. The Chinese navy has grown in recent years from a coastal protection force to one spanning the globe, sending ships as far as the Caribbean on goodwill missions and into the Mediterranean to escort vessels evacuating Chinese citizens from the fighting in Libya.

Meanwhile, Sri Lanka said yesterday it was “true friends” with China because of the military assistance Beijing provided during the island’s bloody civil war.

China’s influence in Sri Lanka, Pakistan, Nepal and other surrounding countries is also a sensitive subject with India.

Also yesterday, US officials were investigating an American military drone that crashed at an airport on the Seychelles. It is used to target Al Qaeda-linked militants in Somalia.

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