Monthly Archives: May 2012

Recap: Worldwide Field Development News (May 25 – May 31, 2012)

3-ahts-vessek

This week the SubseaIQ team added 2 new projects and updated 13 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.

Europe – North Sea
Statoil Secures Rig for Dagny
May 31, 2012 – Statoil announced that it has awarded a contract to Maersk Drilling for new jack-up to drill the Dagny oil and gas field located on the Norwegian continental shelf in the North Sea. Statoil reported that this conventional or category C jackup is being constructed at KeppelFels in Singapore. Early this year, Statoil and its partners selected a fixed-processing platform concept, which will connect Dagny gas to the Sleipner field, while oil is transported via ship. FEED studies are currently underway to assure the quality of the selected concept prior to a final investment decision, which is expected by the end of 2012 or early 2013. Production from Dagny is expected by the end of 2016. Production drilling will begin summer of 2015 by pre-drilling through the jacket prior to installation of the platform deck the following summer. Pre-drilling will facilitate accelerated production from the Dagny field.
Project Details: Dagny
Premier Signs Sale Agreement for Bream
May 30, 2012 – Premier announced that it has signed a sale and purchase agreement (SPA) with Skeie Energy AS to acquire a 20 percent equity interest in PL407 and a 40 percent equity interest in the adjacent PL406 license on the Norwegian Continental Shelf, subject to approval from Norwegian Authorities. This will increase Premier???s stake in the Bream project to 40 percent and the company???s operated interest in PL406 to 80 percent. Premier will pay an upfront consideration of $10 million to Skeie with further payments of up to $17.5 million contingent upon certain milestones being reached. Project sanction of the Bream development is planned for the second half of 2012. First oil is targeted for late 2015 with an initial production rate of approximately 14,000 bopd net to Premier, upon completion of the transaction.
Project Details: Bream
Noble Offloads Dumbarton and Lochranza to Maersk
May 30, 2012 – Noble Energy, Inc. announced that it entered into an agreement with Maersk Oil North Sea Limited for the sale of its thirty percent non-operated working interest in the Dumbarton and Lochranza properties. These fields produced approximately 4,400 barrels of oil equivalent (boe) per day, net to Noble, in the first quarter of 2012. At the end of 2011, net proved reserves at Dumbarton and Lochranza were 5.6 million boe. Noble will receive $127 million, subject to customary adjustments for net cash flows between the effective date of January 1, 2012 and the closing date, which is expected before October 2012.
Project Details: Dumbarton
Shells Picks Ups More of Schiehallion from Hess
May 30, 2012 – Hess Corporation announced it has reached agreement with Shell to sell its 15.67 percent interest in the BP-operated Schiehallion field, its associated share in the Schiehallion Floating, Production, Storage and Offloading vessel (FPSO) and the West of Shetland pipeline system. The sale is subject to regulatory approval and is expected to be completed later this year. The Schiehallion field is located on blocks 204 and 205, approximately 109 miles (175 kilometers) west of the Shetland Islands, off the Scottish coast. Hess has been a partner in the project since it was sanctioned by the UK Government in 1996. The FPSO has been in service since production began in 1998. Construction of a new FPSO is underway and is expected to start production in 2016.
Project Details: Schiehallion (Quad 204)
EnQuest to Farm Out 35 Percent of the Alma/Galia Development
May 29, 2012 – EnQuest PLC announced an agreement in which it will farm out 35 percent of its interest in the Alma and Galia oil field developments to the Kuwait Foreign Petroleum Exploration Company (KUFPEC). Awaiting regulatory approval, the agreement stipulates that KUFPEC will invest a total of $500 million in cash, comprised KUFPEC’s pro rata share of development costs from January 1, 2012 along with up to $182 million in future contributions for past costs and development carry, in relation to EnQuest’s remaining interest in Alma/Galia.
Project Details: Alma/Galia
Bentley 9/3b7 Reaches Target Depth
May 29, 2012 – Xcite Energy announced that well 9/3b-7 has reached its target depth of 9,377 feet. A reservoir section in excess of 2,200 feet was penetrated, with 100 percent net pay, and sand screens were run, successfully. Drilling of the second reservoir section, installation of the down-hole pump and commissioning of processing equipment will commence prior to production testing. Two, six-inch export pipelines from the Rowan Norway were successfully installed by the Polar Price.
Project Details: Bentley
Athena Sees First Oil
May 28, 2012 – Ithaca Energy Inc. announced the successful start-up of oil production from the Athena field. The initial operations phase of the field is in line with the management’s expectations and proceeding as planned. This involves bringing production from each well online and establishing stable performance of the oil processing and water injection systems. Athena field is owned by a joint-venture partnership including the field operator, Ithaca with 22.5%, Dyas UK Limited holding 47.5%, EWE Energie with 20% and Zeus Petroleum Limited owning the remaining 10%.
Project Details: Athena
Tybalt Appraisal Well Fails to Impress
May 28, 2012 – Valiant Petroleum plc announced that the Tybalt appraisal well 211/8c-5 has reached a total depth of 13,212 feet MD. The well penetrated a full Upper Magnus Sandstone Member (UMSM) section, comprising 844 feet gross, with 316 feet of net sand. Two hundred and ten feet of core was successfully recovered from this interval. Initial interpretation indicates that the hydrocarbon saturations recorded throughout the section were broadly similar to the 211/8c-4z discovery well drilled in 2010. Despite similar porosities, recorded permeabilities in the current well registered lower than most expectations. Moveable hydrocarbons were not detected during reservoir testing. Test points located in the lower part of the UMSM recovered water, while stations towards the top of the interval were tight. Valiant Petroleum and its partners at the Tybalt field are suspending the well. Additional technical analyses will be necessary to determine the size of and any potential in the Tybalt accumulation. Tybalt is operated by Valiant Petroleum, which holds 60 percent interest in the field. Agora Oil and Gas AS, a fully-owned subsidiary of Cairn Energy PLC owns the remaining 40 percent interest.
Project Details: Tybalt
Asia – SouthEast
Production Starts in Terang Gas Field
May 26, 2012 – Kangean Energy Indonesia Ltd. announced that commercial production from the Terang gas field began on May 26, 2012. Terang gas field is located offshore, approximately 56 miles (90 kilometers) north of Bali Island in water approximately 214 feet (90 meters) deep and is part of the TSB gas field complex, which is composed of Terang, Sirasun and Batur gas fields. The produced gas will be first gathered in FPU, supplied through the East Java Gas pipeline and then sold.
Philipino Government Approves Extension for Exploration of SC55
May 25, 2012 – Otto Energy announced that the Philippines Department of Energy (DOE) approved an extension to the current Exploration Sub-Phase 4 of SC55 by 12 months. Sub-Phase 4, which began Aug. 5, 2011 has been extended to Aug. 5, 2013 and retains the commitment to drill one well under the current work program. Sub-Phase 5 has the same well commitment and runs from Aug. 5, 2013 until Aug. 5, 2014. The extension was requested by Otto’s JV partner and operator of SC55 for the purpose of securing an appropriate ultra deepwater rig equipped with the required well control equipment to ensure safe drilling operations. No specific date for commencement of drilling operations in SC55 can be determined until a rig is secured. Current availability of such niche rigs is limited and was a factor in the decision to grant the extension for Sub-Phase 4.
Project Details: Cinco
Africa – West
Post Logging Results for Gazelle-P3 ST
May 30, 2012 – Rialto Energy has disclosed preliminary results from the well log analysis for the Gazelle-P3 ST development well located at permit CI-202 offshore Cote D’Ivoire. The well encountered all expected reservoirs at the Gazelle Field along with a new exploration objective. Rialto is reviewing operational options, including a possible side-track to relocate the development well at a location where it will be suspended as a producer. A secondary objective of the possible side-track will further appraise, potentially test and suspend the UC3 reservoir. A primary gas reservoir in Gazelle was found to be gas bearing at the Gazelle-P3 ST well, where it was encountered 656 feet (200 meters) deeper than the lowest known gas from the earlier IVCO 21 well on Block CI-202. Two high quality PVT samples were taken for use in the Gazelle FEED study. The Condor exploration prospect was encountered with good gas shows however results indicated a low permeability gas reservoir at this location. A follow-up well to fully evaluate the prospect will be drilled as part of Rialto???s next phase in the drilling program planned for early-mid 2013. A 246 foot (75 meter) TVD gross reservoir package of high-quality sand was encountered at the base of the Gazelle-P3 ST Well. Drill cuttings exhibited shows and the logs indicated the sands to be water bearing with possible residual oil saturations. Recently acquired 3D data will be used to identify new prospects in the Gazelle/Condor Area with a view to future exploration activity. A decision as to whether to drill a side-track to the Gazelle-P3 ST well to further appraise the UC1 and UC3 reservoir is forthcoming. Once drilling is completed on Gazelle P-3 ST, a six well template will be set prior to spudding the Gazelle P-4 well. The Chouette exploration well will begin at the completion of the Gazelle P-4 well.
Project Details: Gazelle
Australia
Boreas-1 BOP Pressure Testing Complete
May 25, 2012 – Karoon Gas Australia Ltd reported that the Boreas-1 exploration well completed pressure testing of the surface blowout preventors (BOP). Since the last report, the 12-1/4??? hole section was drilled from 12,822 to 13,153 feet (3,908 meters to 4,009 meters), 9-5/8??? casing was run and cemented, and the BOP and marine riser were pulled from the well. The BOPs were then serviced. The Transocean Legend (mid-water semisub) will begin drilling the 8-1/2??? hole section early next week. Boreas-1 is located approximately 2.5 miles (4 kilometers) south of Poseidon-1 in WA-315-P on a large tilted fault block which is part of the of the north-east trending structural high of the greater Poseidon structure. The objective of the well is to test the extent, presence and quality of reservoirs within the Boreas-1 fault block. ConocoPhillips is the operator of the jointly held WA-314-P, WA-315-P and WA-398-P Browse Basin permits, which contain the previously announced Poseidon and Kronos gas discoveries. Karoon Gas Australia Ltd holds 40% of the permit WA-315-P and WA-398-P and 90% of permit WA-314-P.
Project Details: Boreas

Obama and Energy: Collected Cartoons

Energy Tribune- Obama and Energy: Collected Cartoons

From Investors.com

Energy Tribune- Obama and Energy: Collected Cartoons

From The Week

Energy Tribune- Obama and Energy: Collected Cartoons

From The Week

Energy Tribune- Obama and Energy: Collected Cartoons

From Solid Principles

Energy Tribune- Obama and Energy: Collected Cartoons

From Conservative Daily News

Energy Tribune- Obama and Energy: Collected Cartoons

Editor’s Note: Above is a collection of political cartoons taking President Obama to task for his energy policies.

From Slate

Souece: Energy Tribune- Obama and Energy: Collected Cartoons.

LNG EXPORT: U.S. Gas Exports Put on Back Burner

https://i2.wp.com/static.seekingalpha.com/uploads/2012/2/10/saupload_FERC-export-terminals.jpg

By TENNILLE TRACY

The Obama administration is telling Japan and other allied countries they will have to wait before moving forward on plans to buy American natural gas, people involved in the talks said.

A dramatic increase in U.S. natural-gas production has led several U.S. companies, including Sempra Energy SRE +0.23% and Dominion Resources Inc., D +0.15% to seek permits from the Department of Energy to export gas to countries that lack free-trade agreements with the U.S. Exxon Mobil Corp. XOM -0.73% Chief Executive Rex Tillerson said Wednesday his company was looking at exporting from the U.S. Gulf Coast and Canada.

Sempra and Dominion are working with Japanese partners that want to import the gas as their country looks for new power sources. The U.S. currently exports relatively small amounts of natural gas via pipelines to Canada and Mexico, but a wave of recent export proposals marks the first time in decades that companies have sought to liquefy U.S. gas and transport it overseas.

But exports have become a hot-button topic for some lawmakers in Washington and have highlighted uncertainty about what kind of energy power the U.S. wants to become as companies unearth huge supplies of natural gas in shale rock.

“We are going to have to answer some basic questions about our role as a producer,” Michael Levi, a senior fellow at the Council on Foreign Relations, said. “The fact that some of these debates have been so difficult stems from their novelty.”

Japan’s prime minister raised the gas-export issue with President Barack Obama at an April 30 meeting, one of several occasions on which Tokyo has pushed the administration.

But the U.S. has told Japan, a leading military ally in the Pacific, it will have to wait, in large part because of the political sensitivities, participants in the talks said.

“I think it’s going to require more people taking a look at it,” an administration official said, adding, “We’re very sympathetic to Japan. They’re in a very difficult situation.”

Following the disaster at its Fukushima Daiichi nuclear plant last year, Japan pulled the plug on all of its nuclear reactors, forcing it to replace a power source that generated about 30% of its electricity. The government is studying whether to restart some of the reactors, but nuclear power is likely to play a smaller role in five or 10 years.

That is when the U.S. natural gas could start arriving, but only if the U.S. grants permits to export terminals that would liquefy the gas for shipping across the Pacific.

Japan isn’t the only country waiting. “The requests come from everywhere,” the administration official said. Natural gas is much cheaper in the U.S. than in Europe and Asia, where the fuel’s value is often tied to the price of oil. Companies importing American gas would be able to reduce costs with contracts tied to the lower U.S. prices.

Mr. Tillerson laid out the case for exports at Exxon’s shareholder meeting Wednesday, saying they would create jobs and help the U.S. trade balance. Sen. Lisa Murkowksi, a Republican from Alaska, asked President Obama in April to expedite permits for natural-gas exports. She said exports could give Alaska a market for gas from its North Slope, which lacks a gas pipeline to the lower 48 states.

Opponents, including Rep. Ed Markey of Massachusetts and some other congressional Democrats, say the U.S. could boost its energy security by keeping its natural gas at home. Oil-and-gas entrepreneur T. Boone Pickens, in an interview, objected to the idea of selling the gas at a discount to global prices. “You’re kind of giving your own stuff away, and it’s stupid to do that,” said Mr. Pickens, who wants U.S. trucks to use natural gas.

Japanese officials said they recognized the Obama administration’s political challenges.

“It is difficult for the U.S. to say yes [to exports] because of the presidential election,” said Hirohide Hirai, director of the petroleum and natural-gas division of Japan’s economy ministry. “There won’t be any deal with any country before November.”

U.S. officials say they are weighing how exports would affect job creation, trade and the domestic price of natural gas. A price spike would hurt consumers and weaken a competitive advantage enjoyed by U.S. manufacturers that use natural gas as a raw material. An Energy Department assessment is due later this year, and an administration official said decisions will follow in a “timely manner.”

—Mitsuru Obe and Isabel Ordonez contributed to this article.

Write to Tennille Tracy at tennille.tracy@dowjones.com

Source

Pacific Drilling Receives LoA for Pacific Sharav Drillship

Pacific Drilling Receives LoA for Pacific Sharav Drillship| Offshore Energy Today

Pacific Drilling S.A., a fast growing company dedicated to becoming the preferred ultra-deepwater drilling contractor, has received a letter of award for the Pacific Sharav drillship, revealed the company’s CEO Chris Becket.

CEO Chris Beckett commented on the increasing demand for ultra-deepwater units: “During the early part of 2012, demand for ultra-deepwater drillships continued to strengthen, as demonstrated by the acceleration in multi-year inquiries and contract awards with increasingly higher dayrates. We expect to see market demand exceed supply well into 2014.”

He added: “In this favorable market context, the Pacific Sharav received a letter of award from a major oil company for a long term commitment. We expect to provide more details on this commitment in the coming weeks. These positive market dynamics supported our decision to order a seventh drillship, scheduled for delivery in May 2014.”

Construction of the Pacific Sharav started in March 2012 at Samsung Heavy Industries in South Korea. Delivery of the rig is expected in September 2013. The vessel, of Samsung 12000 design, will be capable of operating in 12,000 ft water depth and equipped for 40,000 ft drilling depth. The ship will be able to accommodate a crew of 200.

Pacific Drilling’s fleet of seven ultra-deepwater drillships will, once completed, represent one of the youngest and most technologically advanced fleets in the world. The company currently operates four recently delivered drillships and has two additional drillships under construction and one on order at Samsung.

During the first quarter of 2012, the company invested $102 million in the construction of the fleet, including the initial payment for its seventh drillship.

“We estimate the remaining capital expenditures for our committed drillships at $1.6 billion,” read the company’s statement.

Source: Pacific Drilling Receives LoA for Pacific Sharav Drillship| Offshore Energy Today.

USA: SCA’s Award for Excellence in Safety Goes to Bollinger Shipyards

Bollinger Shipyards, Inc. was awarded the 2011 “Award for Excellence in Safety” by the Shipbuilders Council of America for the seventh consecutive year. With focused efforts of continuous improvement, they also earned the 2011 SCA “Award for Improvement in Safety”.

Read more: Shipbuilding Tribune – USA: SCA’s Award for Excellence in Safety Goes to Bollinger Shipyards.

SMU Report: Permitting delays & new regs stifling offshore drilling

Rig workers, like Robert Cornett, right, pause while mopping the decks on the Hercules 251. (Photo: Smiley N. Pool, Houston Chronicle)

by Jennifer A. Dlouhy

The offshore drilling industry is still rebounding from a five-month moratorium and new regulations after the 2010 Gulf oil spill, with consumers paying the price at the pump, according to a new report being released today.

The findings buck the conventional wisdom about a recent resurgence in offshore drilling that has caused a spike in demand for workers and a run on rigs to drill new wells.

Drilling contractors, including Diamond Offshore Drilling Inc., Noble Corp., and Rowan Cos., say they are seeing strong demand for their rigs. Energy analysts predict 10 more will float into the Gulf this year. And the number of active offshore rigs in the United States was higher at the end of April 2012 than the average total in 2009, the year before the spill (the economic decline had driven down demand that year).

But according to the new analysis, conducted by the Southern Methodist University Cox Maguire Energy Institute, high rig counts, the numbers of federal permits to drill new wells and other positive stats mask problems that could mean suppressed oil and gas production for years to come.

The study was commissioned by the Gulf Economic Survival Team, which has been lobbying for swifter permitting of offshore projects.

Read more: Fuel Fix » SMU Report: Permitting delays & new regs stifling offshore drilling.

America’s actual health and welfare crisis

EPA rules threaten our energy, economy, health, welfare, justice, and civil rights progress.

https://i1.wp.com/www.cfact.org/artimages/featurepowerlines.jpg

May 30, 2012
by Paul Driessen

EPA Administrator Lisa Jackson says we face grave threats to human health, welfare and justice. She’s absolutely right. However, the dangers are not due to factory or power plant emissions, or supposed effects of “dangerous manmade global warming.”

They are the result of policies and regulations that her EPA is imposing in the name of preventing climate change and other hypothetical and exaggerated environmental problems. It is those government actions that are the gravest threat to Americans’ health, welfare, and pursuit of happiness and justice.

By hyper-regulating carbon dioxide, soot, mercury, “cross-state air pollution” from sources hundreds of miles away, and other air and water emissions, EPA intends to force numerous coal-fired power plants to shut down years before their productive life is over; sharply reduce emissions from cars, factories, refineries and other facilities, regardless of the costs; and block the construction of new coal-fired power plants, because none will be able to slash their carbon dioxide emissions to half of what average coal-fired plants now emit, without employing expensive (and nonexistent) CO2 capture and storage technologies.

EPA has also issued 588 pages of rules for hydraulic fracturing for critically needed oil and natural gas, while the Obama Administration has vetoed the Keystone XL pipeline and made 95% of all publicly owned (but government controlled) energy resources unavailable for leasing, exploration, drilling and mining.

These actions reflect President Obama’s campaign promises to “bankrupt any company that tries to build a new coal-fired power plant,” replace hydrocarbons with heavily subsidized solar, wind and biofuel energy, make energy prices “necessarily skyrocket,” advance rent-seeking crony-corporatism – and “fundamentally transform” America’s constitutional, legal, energy, economic and social structure.

Energy is the lifeblood of our nation’s economy, jobs, living standards and civil rights progress. Anything that affects energy availability, reliability and price affects every aspect of our lives. These federal diktats put bureaucrats and activists in charge of our entire economy – seriously impairing our health and welfare.

Moreover, the anti-hydrocarbon global warming “solutions” the Obama Administration is imposing will bring no real world benefits – even assuming carbon dioxide actually drives climate change. That’s largely because China, India and other developing countries are increasing their use of coal for electricity generation, and thus their CO2 emissions – far beyond our ability to reduce US emissions. These nations rightly refuse to sacrifice economic growth and poverty eradication on the altar of climate alarmism.

Even worse, the health, welfare and environmental justice benefits that EPA claims will result from its regulations are equally exaggerated and illusory. They exist only in the same dishonest computer-generated virtual reality that concocted its alleged climate change, health and environmental cataclysms, and in junk-science analyses that can best be described as borderline fraud.

Implementing EPA’s regulatory agenda will inflict severe economic dislocations and send shock waves through America’s factories, farmlands and families. Far from improving our health and welfare – they will make our economy, unemployment, living standards, health and welfare even worse.

EPA’s new automobile mileage standards alone will result in thousands of additional serious injuries and deaths every year, as cars are further downsized to meet its arbitrary 54.5 mpg requirements. Its anti-coal and anti-fracking rules will severely impact electricity generation, reliability and prices; factory, office and hospital operations and budgets; American industries’ competitiveness in global markets; employment, hiring and layoffs; and the well-being of families and entire communities. Especially for areas that depend on mining and manufacturing – and the 26 states where coal-based power generation keeps electricity rates at half of what they are in states with the least coal use and toughest renewable energy mandates (6-9 cents versus 13-17 cents per kilowatt hour) – it will be all pain, for no gain.

According to the Wall Street Journal, a White House letter to House Speaker John Boehner inadvertently acknowledged that EPA alone is still working on new regulations that the agency itself calculates will impose $105 billion in additional regulatory burdens and compliance costs. Win or lose in November, the Administration will likely impose these and other postponed rules after the elections. We, our children and grandchildren will pay for them in countless ways.

Utilities will have to spend $130 billion to retrofit or replace older coal-fired units, says energy analyst Roger Bezdek – and another $30 billion a year for operations, maintenance and extra fuel for energy-intensive scrubbers and other equipment, to generate increasingly expensive electricity.

Duke Energy’s new $3.3 billion coal gasification and “carbon dioxide capture” power plant will increase rates for its Indiana customers by some 15% the next two years. Hospitals, factories, shopping malls and school districts will have to pay an extra $150,000 a year in operating expenses for each million dollars in annual electricity bills. That’s four or five entry-level jobs that won’t be created or preserved.

Nationwide, 319 coal-fueled power plants totaling 42,895 megawatts (13% of the nation’s coal fleet and enough for 40 million homes and small businesses) are already slated to close, the Sierra Club joyfully proclaimed. Illinois families and businesses could pay 20% more for electricity by 2014, the Chicago Tribune reports. Chicago public schools may have to find an extra $2.7 million a year to keep the lights and heat on and computers running.

Higher electricity prices will further strain refineries already struggling with soaring electricity costs and EPA’s sulfur and other regulations, restrictions on refinery upgrades and construction, constraints on moving crude oil to East Coast refineries, and other compliance costs – all for dubious environmental or health benefits. Three East Coast refineries have already closed, costing thousands of jobs and causing the Department of Energy to warn that pump prices are likely to soar even higher in Eastern states.

When we include discouraged workers who have given up looking for jobs, and people who have been forced to work fewer hours or at temporary jobs, our unemployment rate is a whopping 19 percent – and double that for black and Hispanic young people. America’s labor force participation rate is at a 30-year low. Our nation’s 2011 economic growth rate was a dismal 1.7 percent.

Well over a million U.S. workers age 55 and older have now been out of work for 27 weeks or more. Not only do prospects plummet for re-employment of older workers. The longer they are unemployed, the more they are disconnected from society, the further their living standards fall, the more their physical and emotional well-being deteriorates, and the more likely they are to die prematurely.

The cumulative effect is that families have even less money to buy food, pay the rent or mortgage, repair the car or house, save for college and retirement, take a vacation – and keep people comfortable (and alive) on frigid winter nights and sweltering summer afternoons. Workers lose jobs. Health and welfare, family relationships, future prospects and psychological well-being plummet. Because they spend the highest proportion of their incomes on energy, poor and minority families suffer disproportionately.

And yet the EPA and White House regulatory agenda, regulatory onslaught and horse-blinder definition of health, welfare and justice ignore these realities – and ensure that this unconscionable situation will only get worse. In fact, the only welfare EPA’s rules will ensure is the expansion of our welfare rolls, unemployment lines and already record-setting food stamp programs.

EPA is also giving billions of taxpayer dollars to activist groups, to advance its agenda and dominate our media and hearings with false or misleading information about the costs and benefits of its programs.

Worst of all, our Congress and courts have completely abdicated their obligations to provide oversight and control of this dictatorial agency and Obama Administration. If this is the hope, change and future we can look “forward” to, our nation’s health, well-being and justice will be rolled backward.

Paul Driessen

Paul Driessen is senior policy adviser for the Committee For A Constructive Tomorrow (CFACT), which is sponsoring the All Pain No Gain petition against global-warming hype. He also is a senior policy adviser to the Congress of Racial Equality and author of Eco-Imperialism: Green Power – Black Death.

Recap: Worldwide Field Development News (May 18 – May 24, 2012)

Baker-Hughes-International-Offshore-Rigs-Up-by-11-USA

This week the SubseaIQ team added 5 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.

N. America – Mexico
McDermott to Build, Install Ayatsil Platform
May 23, 2012 – McDermott International has received a contract for the new Ayatsil-B drilling platform for PEMEX in the Bay of Campeche Ayatsil field. McDermott will undertake the engineering, procurement, fabrication, pre-commissioning, load-out and sea fastening of the Ayatsil-B eight-leg jacket and deck, weighing about 11,650 tonnes for installation in waters 377 feet (115 meters) deep. McDermott will also carry out transportation and installation analysis of the structures, and will conduct training for Pemex personnel for the facility operation and maintenance. At peak, more than 500 personnel will be engaged on the project. Completion is expected during the third quarter of 2013.
Project Details: Ayatsil
Africa – Other
Anadarko Finds Major Gas Accumulation in Rovuma Basin
May 22, 2012 – Anadarko Petroleum has discovered a major natural gas accumulation in the Golfinho exploration well offshore Area 1 of the Rovuma Basin. The Golfinho discovery well encountered more than 193 net feet (59 net meters) of natural gas pay in two high-quality Oligocene fan systems that are age-equivalent to, but geologically distinct from, the previous discoveries in the Prosperidade complex. “The Golfinho discovery, which is entirely contained within the Offshore Area 1 block, adds an estimated 7 to 20-plus Tcf of incremental recoverable resources over a significant areal extent. This new discovery is only 10 miles offshore, providing potential cost advantages for future development options,” stated Anadarko. The Golfinho exploration well was drilled to a total depth of approximately 14,885 feet (4,537 meters), in water depths of approximately 3,370 feet (1,027 meters). Once operations are complete at Golfinho, the partnership plans to mobilize the Belford Dolphin (UDW drillship) to drill the Atum-1 exploration well.
Project Details: Golfinho (Anadarko)
Australia
AWE Identifies Potential Prospects in Tui Area
May 23, 2012 – Pan Pacific Petroleum, a partner on the Tui field, reported that the joint venture has further progressed evaluation of the Tui Area upside and has identified two potential development infill opportunities and two prospects, which are currently being further matured to enable the JV to decide on possible drilling plans. Subject to approval and rig availability, drilling is planned for 4Q 2012 – 1Q 2013.
Project Details: Tui
Oilex Plans to Drill Bazertete, Tutuala Prospects by Year-End
May 23, 2012 – Oilex has finalized evaluation of the Bazartete and Tutuala prospects which have both emerged as attractive drilling candidates, according to the company. The Bazartete prospect has been selected by the Joint Venture participants as the third commitment well based on an assessment of a higher chance of success than Tutuala and proximity to potential oil charge modeled from the southern part of the contract area based on offset well calibration. Oilex estimates mean recoverable resources for Bazartete (within JPDA06-103) of 65 MMbbls with an upside of 164 MMbbls. Subject to rig availability, drilling is targeted for 3Q 2012.
Project Details: Tutuala
Africa – West
Chariot Secures Rig to Drill Nimrod Prospect
May 21, 2012 – Chariot Oil & Gas Limited and partners have reached an agreement with Ocean Rig UDW to use the Ocean Rig Poseidon (UDW drillship) to drill the Kabelijou (2714/6-1) well at the Nimrod prospect. The Poseidon, which is currently on a long-term contract with the operator, is anticipated to arrive on location in July 2012. Drilling operations will commence shortly thereafter. The Nimrod prospect is located in the Orange Basin in Southern Block 2714A where Chariot has a 25 percent equity interest. The Kabeljou well is expected to take approximately two months to drill. The drilling location is 48 miles (77 kilometers) offshore Namibia in 1,181 feet (360 meters) of water with an estimated total drilling depth of 10,171 feet (3,100 meters).
Project Details: Nimrod
Asia – SouthEast
AWE Ready to Spin Bit at Atlas Prospect
May 23, 2012 – AWE reported it is ready to start drilling the Atlas-1 well in May 2012. The prospect is targeting a large gas opportunity in East Java Basin, and if successful, will provide ongoing prospects for further exploration.
Project Details: Atlas
Premier Reviewing Commercial Potential of CRD Discovery
May 23, 2012 – Premier has completed an extensive assessment of exploration opportunities remaining in Block 07/03 and of the commercial potential of the CRD oil and gas/condensate discovery, including whether additional appraisal drilling is required. The JV participants are considering future drilling plans based on the results of this work. At least one exploration well is required to be drilled as a commitment well prior to the end of November 2013.
Project Details: Ca Rong Do (CRD)
Premier Oil Moves Forward with Dua Development
May 21, 2012 – Premier Oil announced that the Dua project, a tie-in to the Chim Sao field, was formally sanctioned by Premier and Santos in April. It is expected that the necessary Vietnamese government approvals will be received during the second quarter of 2012. In the meantime, bids for FPSO modifications and the drilling rig have been received and are being evaluated. Premier continues to target 2014 for first oil.
Project Details: Chim Sao
Otto Energy Updates Galoc Oil Reserves
May 21, 2012 – Otto Energy provided an update on remaining oil reserves balances at the Galoc oil field in the Philippines, performed by independent consulting firm RISC. The company confirmed the reported increase in reserves is attributable to better than expected reservoir performance to date and an extension of field life due to higher prevailing oil prices. Galoc is expected to remain in production until 2016 to 2018 on the basis of the existing two wells alone. Otto Energy estimates Contingent Resources of 1.49 MMboe (Otto share) at 2C level attributable to the Galoc Phase II development, currently progressing through Front End Engineering and Design, with a target Final Investment Decision around mid-2012.
Project Details: Galoc
Black Sea
Sterling Resources to Drill in Black Sea
May 24, 2012 – Sterling Resources and partners intend to drill two offshore prospects in the Romanian sector of the Black Sea by year-end. The first of the two wells to be drilled will be the Ioana prospect, located in the gas-prone Midia Block, directly northeast of the Ana and Doina discoveries. Following drilling of the Ioana well, the jackup will be relocated to the Eugenia prospect in the Pelican Block.
Project Details: Ioana
Asia – Far East
CNOOC Finds Oil in Liaodong Bay
May 24, 2012 – CNOOC Limited has made a discovery in the Luda (LD) 21-2 prospect in the Bohai Bay. LD 21-2 is located in the inverted structure belt of LD 22-27 in south Liaodong Bay, with its south part adjacent to the LD 27-2 oilfield. The average water depth is 66 feet (20 meters). The discovery well of LD 21-2-1D was drilled and completed at a depth of 9,288 feet (2,831 meters) and encountered oil pay zones with a total thickness of about 558 feet (170 meters), representing the thickest oil layers found in the exploration of Bohai clastic rocks in recent years. Currently, oil production at the Luda well tested at around 608 barrels per day.
S. America – Other & Carib.
Repsol Drills Duster at Jaguey Prospect
May 21, 2012 – Repsol failed to hit pay at the Jaguey prospect offshore Cuba and will begin operations to plug and abandon the well.
Project Details: Jaguey
S. America – Brazil
Respol Gears Up Appraisal Plans for BM-C-33 Block
May 24, 2012 – Repsol Sinopec Brazil reported that Block BM-C-33, in the deepwater Campos Basin, contains resources of more than 700 million barrels of light oil and 3 trillion cubic feet of gas. The partners are working on an appraisal plan for the area, which contains the recently discovered Seat, Gavea and Pao de Acucar fields. The latter is reportedly one of the world’s top five discoveries in 2012. The latest well, Pao de Acucar, was drilled in approximately 9,186 feet (2,800 meters) of water and 121 miles (195 kilometers) from the coast of Rio de Janeiro, and found a 1,640 foot-thick (500 meter-thick) oil column. The consortium is preparing to submit an appraisal plan for submission to ANP.
Project Details: Pao de Acucar
Wartsila Hamworthy to Deliver Inert Gas Generator Units for Tupi, Guara FPSOs
May 21, 2012 – Wartsila Hamworthy will deliver inert gas generator units to eight FPSOs in the Santos Basin. Six of the units will be deployed for the Tupi fields with the other two being utilized for the Guara field. The first two units will undergo full scale testing at the factory in Moss prior to delivery, starting as soon as the end of December this year and up to the end of January 2015. Each of the units will be installed on the utility module on the FPSO inside a dedicated compartment. The eight FPSOs are currently under construction in Brazil.
Project Details: Lula (Tupi)
Europe – North Sea
Barryroe Proves Production Potential
May 24, 2012 – Providence Resources reported that it is “dealing with a high productivity oil system” at its Barryroe discovery, offshore Ireland in the North Celtic Sea. Providence said that well test analysis at Barryroe indicates a high-permeability basal oil-bearing reservoir interval, while the firm expects horizontal development wells to deliver “significant production rates”. Data acquired by Schlumberger during well-testing operations of the 48/24-10z Barryroe well was analyzed to find an average permeability of around 400 millidarcies, confirming high permeability. The analysis forecasts that a 1000-foot (305-meter) horizontal well could deliver around 12,500 barrels of oil per day and 11 million standard cubic feet of gas per day through a standard 4.5-ince outer diameter production tubing under natural lift.
Project Details: Barryroe
Faroe Spuds Clapton
May 24, 2012 – Faroe Petroleum has commenced drilling at the Clapton prospect in the Norwegian sector of the North Sea. Clapton is a chalk prospect on the flanks of the salt induced Mode Dome. The well will target the Ekofisk, Tor and Hod formations, which are the main producing reservoirs in the neighboring fields. The well is being drilled using the Maersk Guardian (350′ ILC) jackup.
Project Details: Clapton
Total to Appraise Norvarg in 2013
May 24, 2012 – Total is preparing for an appraisal well on the Norvarg discovery for 2013. Total currently carries a resource estimate in excess of 200 million barrels of oil equivalent (mmboe). However, the resource range is wide and the need for appraisal apparent, stated the company.
Project Details: Norvarg
MPX Halts Timon Drilling Ops
May 24, 2012 – The WilHunter (UDW semisub), which is drilling the Timon exploration well in the UK sector of the North Sea, has incurred technical downtime due to equipment failure. Therefore, operations at the Timon well have been temporarily suspended and the current estimated length of downtime is roughly 18 days. A further update will be released once the semisub is able to recommence normal operations, which is expected to be in early June 2012.
Project Details: Timon
Wintershall Succesfully Appraises Maria
May 22, 2012 – Wintershall has successfully appraised the Maria well (6407/1-5 S) in the Norwegian sector of the North Sea. The purpose of the appraisal well was to delineate the Maria discovery and prove hydrocarbons in the northern extent of the structure. “Our preliminary calculations do not only confirm our original resource estimates, but support the upper end of our discovery volumes”, said Bernd Schrimpf, Managing Director of Wintershall Norge. The original Maria discovery has been estimated to contain between 60 and 120 million barrels of recoverable oil and between 2 and 5 billion standard cubic meters (sm3) of recoverable gas.
Project Details: Maria
Development Progresses at EnQuest’s Alma/Galia Project
May 21, 2012 – EnQuest reported that development of the Alma/Galia project is continuing on schedule for start-up in 4Q 2013. Batch drilling of the first three wells continues; the first of these wells is in the reservoir and on prognosis.
BG Group Updates Ops at Bream
May 21, 2012 – BG Group reported that the conceptual design of the Bream project was formally agreed among the JV partners in March and the operator has signed a FEED agreement. An invitation to tender to drill the development wells has also been issued and the JV partners anticipate achieving formal project sanction in the second half of 2012.
Project Details: Bream
Emerson to Deliver Subsea Instrumentation for Brynhild Development
May 21, 2012 – Emerson will deliver its Roxar subsea instrumentation for the Brynhild field in the North Sea. The contract was awarded by Aker Solutions and covers Roxar subsea multiphase meters, subsea Sencorr pressure and temperature sensors, subsea chemical injection valves, and sand monitors. Aker Solutions will use the instrumentation as part of the rolling out of a complete subsea production system on Brynhild, with Emerson also delivering a number of downhole pressure and temperature gauges directly to Lundin Petroleum. 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)
Premier Oil Continues with Concept Engineering, Evaluation Design on Catcher
May 21, 2012 – Premier Oil reported that concept engineering and evaluation by the JV partners of the Catcher development continues to progress. It is expected that an agreement on the conceptual design of the development will be reached in the third quarter. The operator continues to target a final investment decision around year-end and first oil in 2015.
Project Details: Catcher
Total Confirms Well Intervention at Elgin Complex
May 21, 2012 – Total has confirmed the success of the G4 well intervention at the Elgin complex. To regain control of the well, heavy mud was pumped into the G4 well from the West Phoenix (UDW semisub). The leak was stopped, stated the company. Following the success of the well intervention, the next phase will be to re-man the Elgin complex and restart the Rowan Viking (430′ ILC) drilling rig in order to set cement plugs in the G4 well. This phase, aiming at completing the plugging and permanent abandonment procedure of the G4 well, will take several weeks. Once the first cement plug is set in the G4 well by the Rowan Viking, the drilling of the ongoing relief well with the Sedco 714 (mid-water semisub) will be stopped. In consultation with the appropriate authorities, it has been decided that drilling a second relief well by the Rowan Gorilla V (400′ ILC) jackup is no longer necessary and has therefore been cancelled.
Project Details: Elgin/Franklin
E.ON to Bring Huntington Online by Year-End
May 21, 2012 – E.ON reported that progress has been made offshore on the Huntington field in the UK sector of the North Sea. The production wells drilled to date have exceeded expectations and development drilling is expected to be completed in July. The infill pipeline is now being laid and a two month installation FPSO window, commencing on September 1, has been secured. Previously announced delays to the upgrade of the FPSO have been addressed by increasing the manpower in the yard. The operator continues to forecast fourth quarter for first oil with an expected plateau production rate of 25,000 bopd.
Project Details: Huntington
N. America – US GOM
Anadarko Fails to Hit Pay in Spartacus
May 24, 2012 – Anadarko has failed to hit commercial pay in the Spartacus oil and gas prospect in the Gulf of Mexico. The well was targeting subsalt layers in the vicinity of Anadarko’s Lucius project, which is currently under development.
Project Details: Spartacus
Shell Begins Development Drilling at Cardamom
May 22, 2012 – Shell has begun development drilling at its Cardamom field in Garden Banks Block 427 using the Noble Jim Thompson (DW semisub). The rig will drill two wells, with each well taking about 90 days. Both wells will be tied-back to the Auger TLP. Shell’s DOCD for Cardamom includes drilling four development wells and permits for all wells have been approved.
Project Details: Auger
Repsol to Drill Leon Prospect in 2012
May 22, 2012 – Repsol reported it has received a drilling permit for its Leon prospect in Keathley Canyon Block 686 in the Gulf of Mexico. Drilling is scheduled to take 140 days. It is reported that the Noble Jim Day (UDW semisub) will drill the well. Leon is a subsalt prospect with a proposed total depth of just over 31,500 feet (9,601 meters) and is located in approximately 6,200 feet (1,890 meters) of water.
Project Details: Leon
%d bloggers like this: