Recap: Worldwide Field Development News (Jun 1 – Jun 7, 2012)

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This week the SubseaIQ team added 3 new projects and updated 28 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.

Asia – Far East
CNOOC Receives Formal EIA Approval for Lishui Development
Jun 6, 2012 – CNOOC and Primeline Energy have received formal approval on the environmental impact assessment report for the development of the Lishui gas field from the State Oceanic Administration. The SOA had previously approved the routing of pipeline for the development. Primeline Energy, a partner on the field, reported that the EIA approval paves the way for the final regulatory approval required for the development, namely approval of the overall development program. Primeline expects that CNOOC will submit the ODP for confirmation by the National Reform and Development Committee shortly. Thus far, major construction contracts have been signed for the development to progress with fabrication of the platform and work on the pipeline are proceeding on schedule. The development is currently on time for first production, which is expected to be around 3Q 2013. The Lishui gas field is located on Block 25/34 offshore China and reportedly holds 4.9 billion cubic meters of proven gas reserves.
Project Details: Lishui
Peng Lai Field Leaks Small Amount of Oil
Jun 5, 2012 – CNOOC Limited reported that a small amount of oil is leaking from the Penglai 19-3 oil field in the Bohai Bay. A small amount of oil leaked into the sea from the Penglai 19-3 field when a safety device on a hose coupling parted due to an abnormality during an oil transfer operation on June 3. The leak was secured immediately when automatic isolation valves closed. Roughly 0.6 tonnes of oil was released into the sea, said CNOOC.
Project Details: Peng Lai
Europe – East
Gazprom Seeking New Partners for Shtokman Project
Jun 6, 2012 – Gazprom has been seeking to develop Shtokman, one of the world’s largest natural gas fields, since the early 1990s, and after several attempts has put together a consortium comprising Statoil, Total and itself. But technological challenges and precipitously low gas prices, as well as the emergence of the U.S. as a gas exporter, have called its financial viability into question. The final investment decision for project hasn’t been announced.
Project Details: Shtokman
N. America – Mexico
Fluor to Build Ku-Maloob-Zaap Production Platform
Jun 7, 2012 – ICA Fluor and Fluor Corporation have signed a contract with Pemex for the construction of an offshore production platform at the Ku-Maloob-Zaap field in the Gulf of Mexico. The contract has a value of $95 million. ICA Fluor and its subsidiary Industria del Hierro will be responsible for the procurement, construction, testing, and load-out of the Ayatsil-C platform. Weighing 11,832 tons and reaching 433 feet (132 meters) deep, Ayatsil-C is the first structure of this size to be installed by Pemex. The project is expected to be completed by the end of 2013.
Project Details: Ku-Maloob-Zaap
Europe – North Sea
Athena Field Performs as Expected
Jun 7, 2012 – Ithaca Energy reported that the Athena field has reached initial peak gross oil production rates of 22,000 bopd, and oil export operations have commenced. The flow from each of the four oil production wells is being supported by electrical submersible pumps with water injection being used to support the reservoir pressure of the field and thereby maintaining and sustaining production rates. An initial cargo has already been offloaded from the BW Athena to the shuttle tanker Betty Knutsen.
Project Details: Athena
Premier Hits Oil in Carnaby
Jun 6, 2012 – Premier has reached a total depth of 4,695 feet (1,431 meters) at the Carnaby exploration well and has encountered oil. Initial analysis indicates that the well encountered 51 feet (15 meters) of net oil in the main Tay sandstone within an estimated 86 feet (26 meters) oil column. A core was taken and confirmed oil in excellent quality sandstones. Pressure data and sampling indicates that the API of the oil is 24 degrees and is of similar quality to that established at the nearby Catcher discoveries. The oil water contact was at the shallower end of expectation; driven by the more complex geology associated with this type of footwall prospect. The well also encountered 51 feet (15 meters) of Cromarty sands but these were shown to be water wet on the logs. The high quality data acquisition from the well will now be used to determine what contribution the Carnaby discovery will make to the overall Catcher development. The well will be plugged and abandoned ahead of the rig moving to drill the high risk Coaster prospect on Block 28/10a, immediately east of the Catcher acreage.
Project Details: Carnaby
MPX Terminates Rig Contract
Jun 6, 2012 – MPX Energy and partners have terminated the drilling contract with Awilco Drilling as a consequence of technical downtime. The semisub was conducting exploratory drilling at the Timon exploration well in the UK sector of the North Sea. As previously reported, the well has been suspended for reentry and the license partners are currently investigating alternative rig options to complete drilling of the Timon prospect.
Project Details: Timon
ConocoPhillips Delays Jasmine Production until 2013
Jun 5, 2012 – ConocoPhillips has delayed production start-up of its Jasmine field in the central North Sea until 2013. It had been hoped that the high-pressure, high-temperature field, described as one of the UK’s largest finds in the last 10 years, could come online in the fourth quarter of 2012. Thus far, the operator has drilled two of eight development wells and plans to spend about $400 million on the project. Jasmine was discovered in 2006 and has been estimated to hold recoverable reserves of more than 100 million barrels oil equivalent. The development, 5.5 miles (8 kilometers) west of the Judy platform, will comprise a Jasmine wellhead platform (WHP) and a bridge-linked accommodation and utility platform, a Judy riser and separation platform (JRP) with additional Judy well slots bridge-linked to the existing Judy platform and a multiphase pipeline from the WHP to the JRP.
Project Details: Jasmine
Marathon Submits Boyla PDO to Norwegian Authorities
Jun 4, 2012 – Marathon and partners have submitted a plan for development and operation (PDO) of the Boyla field (formerly Marihone) to the Norwegian Ministry of Petroleum and Energy. The Boyla development is expected to begin production during the fourth quarter of 2014. The field will be developed as a subsea tie-back to the Alvheim floating production, storage and offloading vessel (FPSO) with two production wells and a water injection well being drilled. The total investment is estimated to be $867 million with reserves estimated at 23 million barrels of oil equivalents. Boyla crude oil will be commingled with the Alvheim blend and exported via shuttle tankers. Associated gas will be exported via Alvheim to the SAGE pipeline.
Project Details: Alvheim
Aker Grabs Early Phase Studies for Several Discoveries
Jun 4, 2012 – Statoil has awarded Aker Solutions early phase studies for several major discoveries on the Norwegian Continental Shelf including Skrugard, Havis and Johan Sverdrup. Aker Solutions will perform a concept study for the Skrugard and Havis fields, as one of several vendors. The two fields, which are located only 4 miles (7 kilometers) apart, will be developed as a joint solution. The work on the Johan Sverdrup field development is a feasibility and screening study. The concept study for the Skrugard and Havis development will be executed by Aker Solutions in Oslo, with participation from its new engineering office in Tromso. As a part of the concept study for the Skrugard and Havis fields, Aker Solutions will on behalf of Statoil perform a screening of potential scope to be performed by local suppliers in the northern regions for the developments ahead. The screening will be led by the Tromso office.
Project Details: Skrugard
Africa – West
Rialto Energy Sidetracks Gazelle-P3 well
Jun 5, 2012 – Rialto Energy has commenced drilling of the Gazelle-P3 ST2 well to optimize the recently drilled Gazelle-P3 ST well in order to underpin the oil and gas development of the Gazelle field. Following planned testing in the Upper Cenomanian-1 reservoir (UC-1), the Gazelle-P3 ST2 well is intended to be suspended as a future producer. The sidetrack operation is expected to take about 12 to 15 days.
Project Details: Gazelle
First Subsea Completes Block 31 FPSO Mooring
Jun 4, 2012 – First Subsea has completed the mooring of the PSVM (Plutao, Saturno, Venus and Marte) FPSO in Block 31 offshore Angola. The double-hulled PSVM FPSO, moored in 6,562 feet (2,000 meters) of water, is a hub field development that will produce oil from the Plutao, Saturno, Venus and Marte fields. Comprising the northeast sector of the license about 400 kilometers (249 miles) from Luanda, PSVM is the first of four planned development projects on Block 31.
Project Details: PSVM
N. America – US GOM
ATP Resumes Completion Ops at Mirage Field
Jun 4, 2012 – ATP has resumed recompletion operations at the Mississippi Canyon Block 941 A-2 well at the Telemark Hub. The recompletion was suspended while the company recovered a piece of tubing that was stuck in the casing. The MC 941 A-2 recompletion operations to perforate and frac-pack the B upper and lower sands are expected to conclude during second quarter 2012. MC 941 is located in the Mirage field at the Telemark Hub location utilizing the ATP Titan floating drilling and production platform.
Project Details: Telemark
N. America – US Alaska
Shell Still Optimistic about Alaska Drilling
Jun 5, 2012 – Dow Jones Newswires reported that Shell hopes to drill for oil offshore Alaska in July 2012. “We are very encouraged with the progress in the Beaufort and Chukchi seas. All the permits are coming into place and we are looking forward to drilling, most probably in July and then later on in August and the early part of September,” Chief Executive Peter Voser told Dow Jones Newswires.
Project Details: Burger, SW Shoebill, Cracker Jack
Australia
ConocoPhillips Progresses Caldita/Barossa Discoveries
Jun 7, 2012 – Santos Limited has entered into an agreement with ConocoPhillips and SK E&S to progress with the development of the Caldita and Barossa gas discoveries located in the Timor Sea. Prior to the agreement, Santos held a 40% interest in both discoveries, with operator ConocoPhillips holding the remaining 60%. Under the terms of the agreement, SK will earn a 37.5% interest in Caldita and Barossa through a proportionate reduction by Santos and ConocoPhillips. ConocoPhillips will remain operator of both permits. SK will fund the first $260 million of a three-well appraisal program, expected to begin in 2013. Following completion of the appraisal program, SK will have the option to increase its interest to 49.5% in exchange for a further payment of $60 million to Santos and ConocoPhillips, shared according to their original interests in the permits. SK will fund up to $90 million of pre-front end engineering and design (pre-FEED) and FEED activities, expected to begin in 2014. SK will make FID and first LNG cargo payments of up to $110 million to Santos and ConocoPhillips upon meeting certain milestones.
Asia – SouthEast
AWE Spuds Atlas
Jun 4, 2012 – AWE Limited has commenced exploratory drilling at the Atlas-1 well. The well is an exploration well designed to test the gas potential of a carbonate reservoir sequence that, together with the nearby Lengo gas discovery, could contain up to 1 trillion cubic feet of recoverable sales gas. The well is planned to be drilled to a total measured depth of about 2,526 feet (770 meters). The water depth of the site is 230 feet (70 meters).
Project Details: Atlas

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