Daily Archives: February 3, 2012

‘The new normal’

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Daily Advertiser

Oil and gas exploration and production in the Gulf of Mexico will some day return to pre-BP spill levels, the president of Chevron North America Exploration and Production Company, Gary Luquette said Thursday.

But the rigorous permitting, safety and verification requirements imposed after the April 2010 BP disaster are here to stay, Gary Luquette said during an interview with The Daily Advertiser before the Greater Lafayette Chamber of Commerce annual banquet, where he was keynote speaker.

“It’s a new normal,” Luquette said.

The industry hasn’t found its stride since the Deepwater Horizon platform operated by BP off the coast of Louisiana exploded and sunk, creating the largest oil spill in U.S. history.

That disaster, which killed 11 workers, led the federal government to impose a six-month moratorium on deepwater drilling that was followed by more stringent permitting and safety regulations.

“I think activity levels can and will return to pre-Macondo (spill) levels,” he said. “The effort and rigor in getting permits approved won’t return.”

Luquette said that’s a good thing for Louisiana and the industry. The BP disaster tainted the entire industry.

Tighter permitting, regulations and oversight will help the industry rebuild public trust, he said.

The “new normal” may be too costly for some of the small independent companies to survive, Luquette said.

“In the end,” he said, “the standards are going up. It’s your responsibility to enact them.”

The Gulf of Mexico is still a major source of oil and natural gas and Chevron maintains a presence there, in deepwater and shallow water, said Luquette, a 1978 civil engineering graduate of UL Lafayette.

More than half of the company’s 2012 budget is allocated to Gulf of Mexico activity. Today, Chevron has 10 rigs operating in shallow water, he said.

Lafayette plays an important role in the industry with numerous supply and service companies operating here.

Chevron alone has 300 workers in its Lafayette office and another 300 or so working offshore out of the Lafayette office, Luquette said.

President Obama said last week in his State of the Union address that he wants to end “subsidies” to the oil and gas industry which makes billions of dollars in profits. Luquette said the energy industry creates jobs and creates wealth for the federal government.

In 2011, the oil and gas industry paid $86 million a day to the federal government in royalties, rents and tax revenue, he said. The industry also employs more than nine million either directly or indirectly.

The industry doesn’t need bailouts and such, just a level-playing field, the same so-called subsidies and breaks the federal government provides other U.S. industries and those from foreign nations, Luquette said.

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Norwegian LNG on Way to U.S.

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The latest LNG cargo to be loaded at Norway’s Hammerfest terminal has been dispatched to United States, according to shipping data.

The 165,500 m3 Maersk Meridian departed Hammerfest yesterday, and is expected to arrive at U.S. Sabinne Pass terminal on February 17.

Statoil said on January 20 that it has resumed production at the Hammerfest LNG plant following a temporary shutdown due to rupture of a firewater line.

The Hammerfest terminal has a capacity to produce 4.3 million mt/year of LNG.

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These New Developments Could Be Paving The Way For Military Action In Iran

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An Iranian Ghader missile launched at the shore of sea of Oman.

Robert Johnson

There are so many snippets of rhetoric being reported about Iran, Israel and the U.S. that it’s begun to feel like a middle school circle of “he said, she said.”

Piecing together sound bites to form a rough idea of what’s actually going on is about the only option available right now, so when Leon Panetta announced yesterday that he thinks Israel may strike Iran this spring it immediately made the news.

David Ignatius at The Washington Post reported Panetta’s thoughts Thursday when the Secretary of Defense said he believed Israel would launch an attack on Iran in April, May or June.

After that, Israel allegedly believes Tehran will enter a “zone of immunity” where they will have enough enriched uranium, stashed in bunkers deep enough, that only U.S. bombs will be able to penetrate and they will be helpless to act on their own.

Ignatius did not cite a source, but reported the news from Brussels where Panetta was attending a NATO Defense meeting.

It’s a reasonable argument that is bolstered by the fact that Israel cancelled its massive missile defense drill with the U.S., slated for the same period, saying that they couldn’t spare the forces at that time. The drill is said to be back on the books for October.

For its part, Iran is doing nothing to assuage any concerns over its intentions as it launched a satellite into orbit Friday.

Nasser Karimi at the Associated Press reports the launch raises concerns not only for the satellites possible military applications, but because the rocket that delivered it uses the same technology as a ballistic missile would use. Say, an inter-continental ballistic missile fitted with a nuclear warhead.

Israel announced Thursday that Iran is developing technology that will enable it to launch such a missile that will reach the continental United States. This satellite launch only reinforces this possibility.

In an official announcement the Iranian supreme leader warned any action against Iran will have dire effects on the U.S.

CNN reports that Iran’s supreme Leader Ayatollah Khameni announced “You see every now and then in this way they say that all options are on the table. That means even the option of war.” During Friday prayers in Tehran, he continued, “This is how they make threats against us.”

“Well, these kinds of threats are detrimental to the U.S.,” he said. “The war itself will be 10 times as detrimental to the U.S.”

The Ayatollah went on to say that Iran pledges its full support to any country or organization that attacks Israel and that the U.S. and Israel will soon face defeats in a coming “great event.”

In a random aside: A South African telecom is being sued for aiding Iran’s nuclear development in exchange for an exclusive cellular license within the country.

Read more: BI

Energy secretary backs natural gas exports

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The low price of natural gas is hurting domestic job growth, and exporting a small amount of the fuel will boost the economy, U.S. Energy Secretary Steven Chu told a Houston audience Thursday.

Speaking at a town hall at Houston Community College, Chu said a modest increase in the price of natural gas wouldn’t significantly raise its cost to U.S. consumers who use it to heat their homes and manufacturers who need it to make products.

Natural gas futures closed at $2.55, up 17 cents, in trading Thursday on the New York Mercantile Exchange. It brings much higher prices in other countries.

“Exporting natural gas means wealth comes into the United States,” Chu said.

The Energy Department’s Office of Fossil Energy is reviewing several applications to export liquefied natural gas. The exports would relieve the glut of natural gas on the domestic market and raise revenue, but also potentially increase prices for domestic consumers.

Several U.S. energy companies have announced plans to close their natural gas wells and curb spending in natural gas fields, as its price has fallen from more than $13.50 in 2008.

In his State of the Union speech last week, President Barack Obama called for an “all-of-the-above” approach to domestic energy production, including investment in oil, natural gas and renewable energy sources.

Chu said it’s important that the United States be at the forefront of innovations and technologies in renewable energy.

“We have a choice. When all these things become cost-competitive, do you want to buy or do you want to sell?” he asked. “If we are buying, that is wealth out of the country. If we are selling, that’s wealth into the country.”

Before the hour-long session with students at the college, Chu met with oil and gas executives and explored the Texas Medical Center’s energy efficiency upgrade.

At the college, he answered questions about the Obama administration’s rejection of the Keystone XL pipeline and Iran’s threat to close the Strait of Hormuz, among other topics.

Chu said the administration is open to exploring alternate routes for the pipeline that would carry oil from Canadian tar sands to Gulf Coast refineries.

It’s become a touchstone issue for supporters who say it will create jobs and reduce U.S. dependence on oil from hostile nations, and opponents who argue it could threaten water supplies and promote use of an especially dirty form of oil.

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Photo: Melissa Phillip / © 2011 Houston Chronicle

 

Chu said he supports construction of pipelines nationwide, particularly to relieve the glut of oil at the hub in Cushing, Okla., a major price point for domestic oil.

“There is such a shortage of pipelines between Cushing and Houston,” Chu said. “There will be major construction of pipelines in the next decade or so. All the job creation from Cushing to Houston is being done now.”

Chu touted government investment in wind, solar and other renewable energy sources, as well. He said he expects the cost of solar power to fall by 50 percent within six to eight years.

Chu also dismissed Iran’s threats to close the Strait of Hormuz, a key oil shipment channel, in retaliation for international sanctions aimed at the nation’s nuclear program.

“I don’t think they can really shut down the Strait of Hormuz,” Chu said. “We certainly have capabilities to reopen it.”

simone.sebastian@chron.com @SimonesNews

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NMS Girl Of The Day #2 – Chantelle Hammann

It was pointed out to me during the selection of the second NMS Girl Of The Day that yesterday’s inaugural NMS Girl Of The Day was also a Chantel (see Chantel Fouche’s post here). My response was that the spelling is different, the hair colour is different and that they are quite clearly different people.  And that they are both smoking hot entries into the NMS 2012.

I won that argument – and the second girl to win a NMS Girl Of The Day badge is the beautiful Chantelle Hamman.  We’re sure you all agree that it’s the type of hotness that we like to get our weekend off to a flying start.

What you need to do now, though, is VOTE FOR CHANTELLE! That is if you’d like to see her in the Sports Illustrated Swimwear edition.

NMS Girl Of The Day #2 – Chantelle HammannSports Illustrated.

Some content on this page was disabled on September 26, 2017 as a result of a DMCA takedown notice from Chantelle Hammann. You can learn more about the DMCA here:

https://en.support.wordpress.com/copyright-and-the-dmca/

Ghana: Aker Solutions Signs Well Service Contract with Tullow

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Aker Solutions has signed a frame agreement with Tullow Ghana Limited to provide well intervention services for the oil company’s Jubilee and Tano deepwater fields offshore Ghana, West Africa.

The initial contract period is for three years, with two additional one-year options (3+1+1). Aker Solutions estimates that the agreement will generate annual revenues of approximately USD 4 million.

Under the agreement Aker Solutions will provide slickline and coiled tubing equipment and services, which are conducted with the objective of maximising production of oil and gas. Aker Solutions has delivered well services to Tullow’s Jubilee field since 2008.

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“Tullow is the largest independent oil and gas exploration and production company operating offshore West Africa. We are pleased to be able to support their ambitious growth plans through providing our technologies and services to increase oil recovery ratios,” says Wolfgang Puennel, head of well intervention services in Aker Solutions.

“Ghana is an up-and-coming oil nation. This new and extended contract with Tullow provides us with a solid long term outlook for our operations there. We will utilise this to set up a more permanent presence in Ghana, which will also drive the need for a larger local workforce. This will put us in a better position to secure further oil service work in the country,” adds Puennel.

Aker Solutions’ contract party is Aker Qserv Ltd.

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BERNANKE TO SAVERS: We Don’t Owe You A Living

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Jeff Miller, A Dash of Insight

While we wait for the employment report, there was another big story yesterday — the Fed treatment of savers.

Fed Chair Bernanke testified before the House Budget Committee, responding to some illuminating questions from Committee Chair Paul Ryan (R. WI).  Joe Weisenthal, who is usually on the track of the biggest story, anticipated this one yesterday:

DEAR SAVERS AND RETIREES: Stop Whining About Those Lousy Rates You’re Getting From The Bank

Here is Joe’s conclusion:

And while we sympathize with people not getting returns on their money, the fact of the matter is that the big problem we have right now is that people have too much debt, not an abundance of cash that’s just sitting there not returning anything.

The bottom line is this: Yes, it sucks that pensioners and garden-variety savers aren’t getting returns, but it also sucks for everyone in the U.S. right now, because the economic outlook seems to be so mediocre. Welcome to the club!

Until growth and inflation return to anything that looks robust, savers will have to be stuck with the same garbage returns boat the rest of us are in.

The confirmation came in Congressional testimony by Fed Chair Ben Bernanke and the ensuing questions.

There is a lot of buzz about the role of the Fed and also the leadership of Bernanke.  The leading Republican candidates all want to fire Bernanke, and some of them even want to abolish the Fed.  Some of the GOP House Budget Committee members have joined the criticism.

Here at “A Dash” I focus on investments, not politics.  Years ago some readers called me a “Bush apologist” and a blatant “supply sider.”  I have tried to explain that I do not have a partisan perspective, but an investment perspective.  I want to find the best investments no matter who is in power.  My perspective changes with the evidence.

With that in mind, let me suggest a few propositions for your consideration.  If these are not obvious, I recommend more research.

  • Bernanke is a Republican, with a conservative background.  This is typical for Fed Chairs.
  • If President Bush had been re-elected, the current GOP fiscal argument would be different.  There would be support for stimulus, including both tax cuts or spending.  If you do not believe this, look back in history to the end of the Bush administration.
  • If President Bush had been re-elected, the GOP monetary story would be different.  They would be screaming for easy money, as both parties have always done, including past GOP administrations, and including Bush senior.
  • Paul Ryan is an ambitious and aspiring VP candidate who has a theme that resonates — balancing the budget.  It is an effective political argument — for the party out of power.

Meanwhile, the Fed is doing a good job of ignoring politics and focusing on the economy.

Investment Conclusion

I continue my plea:  Look beyond politics.  Most recently, look beyond the popular ploy of making a villain out of the Fed.

The Fed has a dual mandate including both price stability and employment.  Here is the official statement:

The Congress established two key objectives for monetary policy–maximum employment and stable prices–in the Federal Reserve Act. These objectives are sometimes referred to as the Federal Reserve’s dual mandate.

There are many who have criticized the US approach suggesting that there should be only a single mandate – price stability.

So let us all be clear about this — very clear.

The Fed has no Third Mandate.  There is no interest rate guarantee for savers!

It is difficult enough to balance economic growth and price stability.  The idea that the Fed should be judged by a third criterion — maintaining interest rates for savers — is misguided, politically biased, displaying favoritism for one group, and basically wrong.

More importantly, it is not going to happen.  Our investment decisions should be based upon reality, not the wishful thinking of those with a partisan agenda.

I understand the plight of savers and senior citizens.  I work with such investors every day, helping them find a combination of a bond ladder, dividend stocks, and enhanced yield.  Those who do not have a job at all face a more difficult problem.  Until we have a stronger economic recovery, we are all in this together.

Read more: BI

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

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

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

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