Daily Archives: February 16, 2012

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

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This week the SubseaIQ team added 15 new projects and updated 33 projects. You can see all the updates made over any time period via the Project Update History search. The latest offshore field develoment news and activities are listed below for your convenience.

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

 

SubseaIQ

Zachry-CB&I venture lands Freeport FEED

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Texas-based Freeport LNG Development has awarded a front-end engineering and design contract to a joint venture between Zachry Industrial and CB&I for a liquefaction facility on the Gulf Coast.

Luke Johnson  16 February 2012 17:51 GMT

Zachry and CB&I will engineer and design a trio of 4.4-million-tonnes-per annum liquefaction trains and corresponding pre-treatment facilities that will be located near the existing Freeport LNG regasification terminal at the Quintana Island terminal near Freeport, Texas.

The two companies will develop a fixed-priced, fixed-schedule proposal within the three-train design for both a one-train initial development and a two-train initial development, Freeport said in a statement.

“This optionality will provide Freeport LNG with the ability to choose the optimum size of the initial phase of the project based upon customer demand and financing considerations,” Freeport said.

Financial terms of the deal were not disclosed.

LNG companies like Freeport and Cheniere Energy – which, just a few years ago, were anticipating being net importers of the fuel – are trying to reinvent themselves as exporters in the wake of a gas glut in the US thanks to the shale boom.

Cheniere is well on its way, having secured sales deals and proper permitting to export gas as soon as 2015.

Freeport is in the process of securing permits. The Department of Energy has given the OK to export LNG while Freeport has started preliminary applications for approval from the Federal Energy Regulatory Commission (Ferc).

It expects to file a formal Ferc application by the end of the first quarter this year and hopes to have all permits in place to begin construction early next year.

Construction will take about 32 months, Freeport says on its website, with start-up at the facility expected in early 2016.

The liquefaction facility will have a processing capacity of about 1.9 billion cubic feet per day of gas. The gas will come via interconnecting intrastate pipeline systems operated by Dow Pipeline, Kinder Morgan and Brazoria Interconnector, through Freeport LNG’s existing Stratton Ridge metre station.

The gas will be liquefied and stored in full-containment LNG storage tanks as it awaits export by tanker, according to Freeport’s website.

Source

Drilling permit slowdown having effect on St. Tammany businesses

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By Debbie Glover
St. Tammany News
Published on Wednesday, February 8, 2012 12:09 AM CST

St. Tammany Parish may seem an unlikely place for the drilling permit slowdown to affect business, but the 2010 BP oil spill and now delays from the permit moratorium and lack of permitting for deep water and shallow wells in the Gulf of Mexico are doing just that..

“Absolutely, St. Tammany has many businesses directly and indirectly connected to the oil industry, and they are affected by the industry slowdown caused by the permitting delays,” said Executive Director Brenda Reine Bertus of St. Tammany Economic Development Foundation.

“Some of the parish’s businesses service rigs, some rehab products used on rigs and many are tucked away in the parish. During the study completed by GNO Inc., it was evident many are simply trying to hold on until things turn around,” she said.

Suppliers of rigs, oil supply boats, caterers and equipment already know how hard hit they are, but this has been confirmed by the release of a study of the impact of decreased drilling permit approvals on businesses conducted by Greater New Orleans Inc.

“Offshore service and supply companies are the core of the oil and gas industry in Louisiana,” said Lizette Terral, president of the New Orleans region for the J.P. Morgan Chase Bank. “These small- and mid-sized companies are dependent on activity in the Gulf for their business, and as a result they have been disproportionally hurt by the ongoing permit slowdown.”

Participants in the survey represented small, medium, and large offshore supply and service companies in numerous industries. Answers provided included details on the revenue, cash reserves, employment, business plans, and personal finances of their respective companies.

Key findings of the study show that 46 percent of businesses have moved all or some of their operations away from the Gulf of Mexico. In addition, 41 percent of businesses are not making a profit. Most, or 76 percent have lost cash reserves, and 27 percent of businesses have lost more than half of their cash reserves.

Half of the businesses have laid off employees, and 39 percent of businesses have retained workers but have reduced their hours and/or salaries.

Worst of all, 82 percent of business owners have lost personal savings as a result of the permit slowdown. Another 13 percent have lost all of their savings.

Small– and mid-sized companies are the hidden victims of the permit moratorium and ensuing slowdown,” said Michael Hecht, president and CEO of GNO, Inc. “While global companies can simply shift their assets, these Louisiana companies — through no fault of their own — have endured significant, and now documented, financial hardships.”

“Through this study, GNO, Inc. has determined that the federal moratorium and the permit slowdown created significant negative “unintended consequences” for local businesses. While larger companies have deep cash reserves and the ability to shift assets outside of the country, Louisiana businesses dependent on the Gulf of Mexico for business have experienced significant financial hardship,” reported GNO, Inc.

“The smaller companies are digging into their personal cash reserves to keep going because many of these job require specialized training. In the 1980’s when there was an industry slowdown, the employees left and were very difficult to replace when business increased,” Bertus said. “They want to keep these specialized employees at all costs. Another problem is that the really small companies can’t just pick up and move elsewhere like larger companies.”

In 2011, the average approval time for a drilling plan was 109 days, compared to the historical average of 61 days. All deep-water plans that include any type of drilling activity must now undergo an environmental assessment (EA) process; for those plans requiring EAs in 2011, the average approval time was 213 days, significantly higher than the overall average approval time. Additionally, in 2011, only 34 percent of plans submitted were approved, compared to the historical 73.4 percent approval rate.

Deep-water permit issuance continues to lag the monthly average observed in the year prior to the oil spill. Only two deep-water permits are being issued per month since November 2011, representing a monthly reduction of 3.8 permits, or 66 percent reduction from the average of 5.8 permits per month. This number also represents a five permit or a 71 percent reduction from the historical average of seven permits per month over the past three years.

Shallow-water permit issuance is also below the historical average. Since November 2011, 2.3 shallow water permits, on average, were issued. That number represents a decrease of 4.8 permits or 68 percent from the monthly average of 7.1 permits per month observed in the year prior to the oil spill. This number also represents a reduction of 12.4 permits or a 84 percent reduction from the historical average of 14.7 permits per month over the past three years, according to the gulf permit index.

A lack of permit approval can be taken as a lack of future business in the industry and many small and mid-size businesses have been hit hard with possible lack of future business as they had known it before the oil spill, thus causing many of them to either relocate or close completely, as the study has shown.

The permitting process has become lengthy and mired in red tape, which has slowed the entire industry, affecting businesses throughout the area, even in St. Tammany.

Source

China: COSCO Orders Ellis’ Cleats for New Drillship ‘Dalian Developer’

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Yorkshire-based cable cleat manufacturer, Ellis has turned the tables on the international trend for cheaply manufactured products from the Far East being sold into the UK by securing a significant order from China.

The company’s Emperor cleats have been specified by COSCO Engineering for installation on the Vantage Drilling Company’s new drill ship, the Dalian Developer. The order was secured as a result of the company’s persuasive technical argument, which highlights the vital importance of correctly tested and specified cable cleats.

Tony Conroy, the export sales manager for Ellis, explains: “The growth in cheaply manufactured cleats has certainly muddied the picture in recent times, but we have always remained confident that our approach would eventually see our technically superior products come to the fore in China.”

Ellis’ technical approach has brought the company widespread global success and its cleats are now used in a number of major projects in the oil, gas and power generation industries including Lusail City in Qatar and the Kashagan project in Kazakhstan.

“It certainly seems like our technical and safety based message is really striking home,” continued Conroy. “People now know that underspecified cleats can pose serious safety issues. And when you consider the amount of money some of the projects we’re working on are worth you certainly wouldn’t want to be the specifier who cut costs by ordering cleats that were simply not suitable for the job.”

Ellis is supported by a worldwide network of specialist distributors covering Europe, Middle East, Asia, South America, Australia, Kazakhstan and the United States. For this latest order the company’s export team worked closely with Hong Kong distributor, Wang Yip Hong (J&P) Limited and its Chinese partner, Senkori Trading (Dalian) Co.

The $500million Dalian Developer is being built at COSCO’s Dalianshipyard in China and is due for completion in July 2012. It is a MPF 1000 6th Generation Ultra Deepwater Drillship for use in harsh environments, has a hull size of 291m x 50m, and is designed to drill wells at ultradeep water depths up to 10,000ft and drilling depths exceeding 30,000ft.

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USA: Helix to Build New Semi-Sub Well Intervention Vessel

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Helix Energy Solutions Group, Inc. announces that it is proceeding with the construction of a newbuild semisubmersible well intervention vessel.

Owen Kratz, Helix’s Chairman and CEO, stated, “We are leveraging our market and technological leadership in subsea well intervention along with the proven success of the Q4000 platform to satisfy an increasing market interest for specialized deepwater well intervention services. We have previously indicated that we intend to address this growing market by delivering new capacity and will continue to expand this business segment further.”

Helix has completed the detailed engineering for the new vessel and expects to commence construction in the near future.

The Q4000 (image) is a unique multi-purpose vessel designed to operate in depths up to 3,048 metres of water – a stable platform for a wide variety of tasks, including slimbore drilling, slimbore completion and decommissioning well intervention.

Helix Energy Solutions Group, headquartered in Houston, Texas, is an international offshore energy company that provides development solutions and other key life of field services to the energy market as well as to its own oil and gas business unit.

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