Daily Archives: March 8, 2012

Recap: Worldwide Field Development News (Mar 2 – Mar 8, 2012)

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This week the SubseaIQ team added 12 new projects and updated 31 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 – West
Afren Confirms High Quality Oil at Okoro East
Mar 7, 2012 – Afren has completed testing at the Okoro East oil discovery, confirming high-quality API oil of 38 to 40 degrees in excellent reservoir sands. Based on the test data the company expects future horizontal production wells at Okoro East to be capable of yielding between 4,500 to 7,000 bopd per well. The company will drill two production wells using existing facilities in the second half of 2012 and up to eight production wells, under a full field development scenario. Three drill stem tests have been performed and completed, said Afren. The purpose of this test was to obtain fluid samples and pressure data in order to establish reservoir connectivity, heterogeneity and quantify permeability and porosity. The tests have confirmed a high quality 38- to 40-degree API oil, multi-Darcy permeabilities and an average porosity of between 30 percent to 35 percent in the subject reservoirs. The pressure data obtained has helped with the company’s structural understanding of the field and supports the pre-drill volumetric estimates (Pmean STOIIP of 157 million barrels). Based on the test data, the company expects future horizontal production wells at Okoro East to be capable of yielding rates between 4,500 bopd to 7,000 bopd per well. The company intends to drill up to two production wells in 2H 2012 using the free well head slots on the existing Okoro platform, which will be tied-back to the Armada Perkasa FPSO. This production information will allow Amni and Afren to finalize development options with up to eight possible production wells under a full field development.
GSF Monitor Set to Spud Gazelle-P3
Mar 7, 2012 – Rialto Energy announced its plans to drill the first two development wells in the Gazelle Field using the GSF Monitor jack-up rig. The phased development of CI-202 is set to begin with the spudding of Gazelle-P3 followed by Gazelle-P4. An additional two development wells are planned after final investment decision. Two infill wells are planned for 2016.
Project Details: Gazelle
Chariot Inks Deal to Drill Tapir South Prospect
Mar 6, 2012 – Chariot Oil and Gas has signed a contract with AP Moller Maersk for a one-well drilling slot using the Maersk Deliverer (UDW semisub) rig offshore Namibia. The operator expects to spud the Tapir South prospect early April. The prospect is part of the Tapir trend and is located in Northern Block 1811A. The well is located 50 miles (80 kilometers) offshore Namibia in 6,915 feet (2,108 meters) of water with a drilling depth of approximately 16,730 feet (5,100 meters). It is expected to take around two months to drill and will be the first well in Chariot’s four-to-five well exploration program that is planned to take place in 2012 and 2013.
S. America – Other & Carib.
BPZ Further Develops Corvina, Albacora Fields
Mar 5, 2012 – BPZ Energy reported that production from the Corvina and Albacora offshore fields has average about 3,920 bopd from Feb. 2012 to date. The 3D seismic survey acquisition on the offshore Block Z-1 has been underway for four weeks and should be completed in the second quarter of 2012 followed by processing and interpretation of the data. Furthermore, work on the new CX-15 platform continues with installation scheduled for the third quarter of 2012. The CX-15 drilling program, which will be the second platform installation at the Corvina field, will target 23 million barrels of proved undeveloped reserves (PUD). The PUD estimates increased in the 2011 reserve report by one million barrels, stated the operator.
Project Details: Corvina
Europe – North Sea
Wintershall Turns On Taps at K18-Golf Field
Mar 8, 2012 – Wintershall has commenced natural gas production from the K18-Golf field in the Dutch North Sea. Wintershall plans to produce around 1 MMcm/d from the tight gas deposit via a subsea well (subsea completion). A second production well next summer is set to maintain plateau between 1 and 1.4 million cubic meters of natural gas per day. The field was connected via a sea bottom pipeline to the K15-FA platform, about 6.2 miles (10 kilometers) further north. The gas will be treated before being sent via the Wintershall-operated WGT pipeline network. Wintershall has a share of 41.7 percent in K18-Golf. The other participating companies are EBN B.V. (40 percent), NAM (15.9 percent), Tullow Oil (2.2 percent) and Oranje-Nassau Energie (0.2 percent). Wintershall was awarded the concession block K18 in 1983. The natural gas field was discovered in 2005.
Premier Oil P&A Bluebell Prospect
Mar 8, 2012 – Premier Oil will plug and abandon the Bluebell exploration well, 15/24c-10, on Block 15/24 in the UK sector of the North Sea. The well reached a total depth of 7,507 feet (2,288 meters). The Paleocene target was encountered on prognosis; the logs showed excellent sand quality but were water wet.
Project Details: Bluebell
Technip to Conduct FEED for Luva Platform
Mar 8, 2012 – Statoil awarded Technip a lump sum FEED contract for the development of the Luva platform. The contract covers the design and planning for procurement, construction and transportation of a Spar hull and the mooring systems as well as the design of the steel catenary risers. The scope of work includes design and planning for procurement, construction and transportation of a Spar hull and mooring systems, as well as design of the steel catenary risers.
Project Details: Luva
Summit to Begin Drilling Operations at Orchid Prospect
Mar 8, 2012 – Summit Petroleum has commenced well operations at the Orchid prospect in the UK sector of the North Sea, with spudding anticipated in the next couple of days. Orchid is a dual target, four-way dip closure at Tertiary and Chalk level with gross prospective resources associated with the entire prospect estimated internally by Valiant to be 30 mmboe (net 9 mmboe). The well is being drilled by the Sedco 711 (mid-water semisub) and is anticipated to take 35-40 days to complete, once drilling commences.
Project Details: Orchid
Faroe Petroleum Completes Drilling Ops at T-Rex, Bolan
Mar 7, 2012 – Faroe Petroleum has discovered oil in both the T-Rex and Bolan exploration prospects in the Norwegian sector of the North Sea, but not in commercial quantities. The 6406/3-9 well, reached a total depth of 13,725 feet (4,183 meters) within shales of the Lange Formation. The well targeted Lower Cretaceous sandstones of the Lange formation (T-Rex) and Lysing formation (Bolan). T-Rex was the primary target and preliminary results based on extensive coring, wireline logs and pressure data have confirmed the presence of oil, but in a thinner than expected reservoir interval, and the well will therefore not be production tested. Fluid samples were successfully recovered in T-Rex. The quality of the oil was in line with fluids seen in the original discovery well 6506/11-2 (drilled by Statoil in 1991). The Bolan prospect in the shallower Lysing formation also encountered an oil column within an inter-bedded sandstone package. A similar extensive data gathering program was performed on the Bolan prospect as with T-Rex. Additional evaluation is required in order to delineate the areal extent of the oil bearing layers, before any decisions in terms of a further appraisal program can be made.
Project Details: T-Rex
Statoil Touts Success at Skrugard Appraisal
Mar 6, 2012 – Statoil is in the process of concluding the drilling of appraisal well 7220/5-1 on the 7220/8-1 (Skrugard) gas/oil discovery. The discovery was proven in 2011 in Middle and Lower Jurassic reservoir rocks. The objectives of the appraisal well were to confirm the previous volume estimate for the Skrugard discovery and to collect reservoir and overburden data for field development planning. Both objectives have been met, said Statoil. Drilled by Transocean Barents (DW semisub), appraisal well 7220/5-1 has proven a gas column of 85 feet (26 meters) overlaying an oil column of about 158 feet (48 meters). Both column heights and reservoir properties came in as expected. This confirms the previous volume estimate for the Skrugard discovery and the total resource estimate for the Skrugard and Havis structures ranging from 400 to 600 million barrels of recoverable oil. Statoil is currently considering several alternative development concepts for the discovery.
Project Details: Skrugard
Lundin Ups Stake at Brynhild Field
Mar 5, 2012 – Lundin Petroleum has entered into an agreement with Talisman Energy Norge AS to acquire an additional 30 percent interest in PL148, which contains the Brynhild field, offshore Norway. Following the acquisition, Lundin Petroleum will hold a 100 percent interest in PL148. The Brynhild field, which is currently under development, is forecasted to produce first oil in late 2013 at a gross plateau production of 12,000 bopd.
Project Details: Brynhild (Nemo)
Lundin, Det norske Reach Agreement for Luno, Draupne Combined Development
Mar 5, 2012 – Lundin Petroleum and partners Wintershall and RWE Dea have reached an agreement for Det norske-operated licenses PL001B, PL028B, PL242. A plan for development and operation for the Luno field was submitted on January 19, 2012 to the Norwegian Ministry of Petroleum and Energy and includes 15 wells drilled from a jackup. First production is expected in the fourth quarter of 2015. In the coordinated development solution, the partially processed fluids from the Draupne field will be transported from the Draupne platform to the Luno platform for stabilization and export of oil and gas. The combined production from the Luno and Draupne fields will be phased in time with Draupne production planned to start in late 2016 and increasing toward a peak rate in late 2018. The Luno platform design capacity will accommodate in excess of 120,000 bopd and up to 175 MMcf/d when Draupne production is combined with that from the Luno field.
Project Details: Luno, Draupne Project
Statoil Contracts EMAS AMC for Fram H Nord
Mar 5, 2012 – EMAS AMC has received a SURF contract for marine installation and pipe lay from Statoil for the Fram H Nord subsea development. The field is situated in the Troll C/Fram area in the northern part of the North Sea. The Fram H Nord subsea development is the third phase of the development of the Fram field which is tied-back to the Troll C Platform. Fram H-Nord will be developed with one satellite well tied-back to the existing infrastructure at Fram Vest A2 template via twin flowlines and a control and service umbilical. The contract scope includes the engineering, procurement, transport and installation of one 10-inch flexible production and one 4-inch gas injection flowline both 3.2 miles (5.3 kilometers) long, as well as all activities necessary for the installation of the following: integrated template structure and manifold; subsea control umbilical; near-by protection structures; tie-ins of all lines to the Fram H Nord and Fram Vest A2 manifolds plus pre-commissioning/testing; trenching and rock dumping of all line systems; and the supply and installation of protection covers over tie-in areas at Fram H Nord and Fram Vest A2 templates. Engineering, procurement and planning activities will commence immediately, and the offshore work is scheduled to commence in the third quarter of 2013.
Project Details: Troll Area
Asia – SouthEast
Premier Successfully Tests Lama Formation in Anoa Field
Mar 5, 2012 – Premier has successfully tested the Lama formation within the Anoa field on the Natuna Sea Block A. The WL-5 development well was deepened to a total depth of 11,012 feet (3,356 meters) to investigate the exploration potential of the Lama formation within the Anoa field. The well encountered about 300 feet (91 meters) of fractured Lama sandstones. The Lama formation was tested over an interval of 10,658 to 10,770 feet (3,249 to 3,283 meters) and flowed gas at a rate of 17 MMcf/d through a 48/64-inch choke. The results of the test will be intergrated with the log and seismic data to determine the ultimate recoverable resource of this deeper reservoir that will be produced through the Anoa facility. Moreover, the jackup West Callisto (400′ ILC) will move to drill the Biawak Besar prospect on Natuna Sea Block A. The results of this well are expected in April 2012.
N. America – US GOM
Petrobras Brings Cascade Online in GOM
Mar 5, 2012 – Petrobras reported that on Feb. 25, 2012, it commenced production at the Cascade field through the Cascade No. 4 well, which was interconnected to the BW Pioneer FPSO. The Cascade 4 production well was drilled and completed in reservoirs of the Lower Tertiary geological period, which is a promising exploratory maritime boundary of the Gulf of Mexico, at a vertical depth of around 26,247 feet (8,000 meters). The BW Pioneer is the first FPSO to produce oil and gas in the U.S. portion of the Gulf of Mexico, and has the capacity to process 80,000 barrels of oil and 500 Mcm/d.
Project Details: The Greater Chinook Area
Australia
Technip to Supply Flexible Pipe for Fletcher, Finucane Development
Mar 5, 2012 – Santos has awarded Technip a flexible pipe supply contract for the Fletcher Finucane oil field development in Western Australia. The contract, which includes project management, engineering and the supply of 19 miles (31 kilometers) of 10.2-inch and 9-inch production flowlines, along with 14 miles (22 kilometers) of 3-inch service lines, will start in April 2012. Delivery is planned for the second semester of 2012.
Project Details: Fletcher/Finucane
BHP Billiton Spuds Tallaganda
Mar 2, 2012 – BHP Billiton has commenced drilling the Tallaganda-1 well at permit WA-351-P offshore Australia. The operator is using the Atwood Eagle (DW semisub) to drill the well. The prospect will test the gas potential of sandstones in the prolific Triassic age, Mungaroo formation, in a well defined horst block as imaged by high quality modern 3D seismic data. The well will be drilled vertically in a water depth of 3,743 feet (1,141 meters) and is expected to take 37 days to drill with a projected total depth of 13,944 feet (4,250 meters).
Project Details: Tallaganda
S. America – Brazil
Petrobras Commences Iracema Well Test
Mar 5, 2012 – Petrobras and partner BG Group have commenced a new well test in the Iracema area of the BM-S-11 concession in the pre-salt Santos Basin. The Cidade de Sao Vicente FPSO was connected to the RJS-647 well in water depths of 7,257 feet (2,212 meters). The FPSO will operate in the area for approximately six months gathering technical information on reservoir behavior and oil flow in the subsea lines amongst other data. During this initial test phase the well is expected to produce at around 10,000 bopd, constrained by facilities. The information gathered will support the development of the final production system in the area, expected to be in operation by the end of 2014 with the installation of the 150,000 bopd capacity FPSO Cidade de Mangaratiba.
Project Details: Iracema
Mediterranean
Noble Energy Preps to Drill Pinnacles
Mar 5, 2012 – Delek Group has reported that Pinnacles No. 1 exploratory well, offshore Israel, is due to start soon and is expected to last about five weeks. According to a report prepared by Netherland, Sewell and Associates (NSAI) the estimated unrisked gross prospective gas resources for the Pinnacles Prospect, as of December 31, 2011, is expected to be 25.7 (low) to 78.2 (high). The operator will use the ENSCO 5006 (DW semisub).

Source

Gulf Locals and Energy Experts Express Concern Over Decreased Gulf of Mexico Offshore Drilling Activity on Jobs, Economy

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WASHINGTON, D.C., March 8, 2012 – Today, the Subcommittee on Energy and Mineral Resources held an oversight hearing on the Fiscal Year 2013 budget for the Bureau of Ocean Energy Management (BOEM) and Bureau of Safety and Environmental Enforcement (BSEE). During the hearing, Committee Members heard testimony from Gulf of Mexico business leaders and energy experts who expressed deep concern over the slowdown in offshore permitting that has negatively impacted Gulf businesses and local economies.

“Production in the Gulf of Mexico is essential to our nation’s energy security – accounting for 29 percent of total U.S. crude production and 12 percent of total U.S. natural gas production. The thousands of businesses throughout the Gulf and nationwide that support this industry still struggle to stay afloat as a result of President Obama’s moratorium and the subsequent permitorium,” said Subcommittee Chairman Lamborn (CO-05). “We will hear from some of these stakeholders in the Gulf of Mexico, as well as review an analysis that shows that the pace of permitting is still well below historical averages.”

Historically low permitting has caused unemployment, economic instability and businesses to leave the Gulf of Mexico.

James Adams, President and CEO of the Offshore Marine Service Association (OMSA), which represents more than 100 firms that operate marine service vessels in the Gulf of Mexico, spoke to how devastating the permitting slowdown has been. “The economic impacts of this permit slow-down or de facto moratorium are diverse and farreaching, affecting individuals and businesses in various industries across the Gulf Coast…businesses are indeed laying off workers, reducing hours and salaries, and limiting new hires as a result of the permit slow-down.” Adams also mentioned the reoccurring theme of businesses moving overseas, “and postponing local expansion puts the regional economy on insecure ground, and the loss of businesses in the oil and gas industry to international markets has potential negative effects on the national economy.”

Brady Como, Ecxecutive Vice President of Delmar Systems, a leading supplier of offshore services in the Gulf, testified that slow permitting activity, “has not only had an impact upon our employees that were laid off, but also has been the driving force for the percentage of our international business outside the Gulf of Mexico more than doubling during that time.” To stay in business, his company has been forced to follow, “rigs leaving the gulf all over the world, from Brazil and Australia, to Trinidad, West Africa and the Mediterranean.” Como reminded Members that, “for every drilling rig that leaves, 200 jobs go with it. That impact is even greater when indirect jobs are considered.”

Benjamin Salsbury, Senior Energy Policy Analyst at SVP FBR capital Markets, confirmed that, “there are just 25 Mobile Offshore Drilling Units or ‘floaters’ and 15 platforms drilling. That is 12% fewer floaters than were operating before the Macondo spill despite crude oil prices more than 25% higher.” Salsbury continued to reiterate what local Gulf businesses already know, “there continues to be a permitting constraint on Deepwater Gulf of Mexico drilling activity.”

Background:

A study put forward by Greater New Orleans, Inc. estimates that of the Gulf businesses they surveyed:

  • 41% said they were not making a profit;
  • 50% said they have laid of employees as a result of the moratorium; and
  • 82% said they have lost personal savings as a result of the permit slowdown.

Printable PDF of this document

Source

NMS Girl Of The Day #26 – Donna Solomons

Online Guy must come clean here and admit a glaring oversight. The fact that it has taken me over a month to feature Donna Solomons as a NMS Girl Of The Day is almost unforgivable.

It’s not that I was unaware of Donna’s great claim to a NMS Girl Of The Day badge. Those claims are obvious. It’s more complacency as I watched with great pride as she dominated voting on The Bounce to earn herself a Bounce Badge and I simply assumed that she already must have been NMS Girl Of The Day.

You know what they say about assumption and how it makes an ass out of you and me. Well this oversight just made an ass out of me.

Thank goodness for the Social Media suggestions where Donna and her fans brought the error of my ways to my attention.

Donna – please accept my humblest apologies. You’re a deserving NMS Girl Of The Day and I just spent the first 15 minutes of my day voting for you. I suggest that you all do the same and VOTE FOR DONNA!

Interestingly Donna has over 140 000 votes already which just goes to show how that smile of hers will win over voters in their droves.

March 8, 2012

NMS Girl Of The Day #26 – Donna Solomons.

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