Daily Archives: June 14, 2012

Recap: Worldwide Field Development News (Jun 8 – Jun 14, 2012)


This week the SubseaIQ team added 1 new projects and updated 25 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 – SouthEast
Salamander Enters Rig Sharing Agreement
Jun 14, 2012 – Salamander Energy has entered into a rig sharing agreement for use of the Ocean General (mid-water semisub) to begin its exploration drilling campaign in the North Kutei basin, East Kalimantan, Indonesia. The rig will be on contract starting July 1, 2012. The company has committed to drill the South Kecapi, South Kecapi side-track, North Kendang and Bedug prospects and has an additional four-option well slots under the contract to allow follow up drilling in the event of a success. The prospects are located in the Bontang and SE Sangatta PSCs. It is estimated that drilling in the company’s North Kutei acreage will commence in the fourth quarter 2012.
Exploratory Drilling Commences at Ratnadewi Prospect
Jun 12, 2012 – Niko Resources reported that drilling has commenced at the Ratnadewi-1 prospect in the Lhokseumawe Block using the Hercules 208 (MC jackup). The prospect is situated offshore Indonesia.
Niko to Explore Lebah Prospect in August
Jun 12, 2012 – The Discoverer Seven Seas (DW drillship) is slated to commence drilling at the Lebah prospect in the North Ganal block offshore Indonesia in August.
AWE to P&A Atlas-1 Well
Jun 12, 2012 – AWE will plug and abandon its Atlas-1 well due to a high percentage of carbon dioxide. AWE was targeting a carbonate reservoir sequence that, together with the nearby Lengo gas discovery, was thought might contain up to one trillion cubic feet of recoverable gas. On June 7, 2012 AWE announced that it had drilled the well to 2,011 feet (613 meters), and that indications of both methane and carbon dioxide had been detected within the upper part of the Kujung carbonate reservoir section.
Project Details: Atlas
Adira Energy, Noble International Accept LOA
Jun 13, 2012 – Adira Energy reported that Noble International has accepted a Letter of Award, which will enable Modiin Energy to execute a detailed drilling contract on behalf of the Gabriella consortium partners, including Adira and Brownstone Energy. Adira has signed a Memorandum of Understanding with Modiin Energy authorizing Modiin Energy to enter into a drilling contract with Noble Drilling and/or any of its affiliates to drill the Gabriella License prior to the revised spud date of June 30, 2013. To the extent possible, representatives of Adira shall participate in the negotiations with Noble Drilling regarding the Agreement. The consortium will now finalize the agreement to secure the Noble Homer Farrington (mid-water semisub) for a minimum of 75 days for a program that is expected to include one well plus sidetrack. Effective once the agreement has been signed, Adira grants Modiin Energy an irrevocable option to purchase from Adira a 15 percent participating interest in the Yitzhak License.
Project Details: Gabriella
Adira Energy Granted Gabriella, Yitzhak License Extensions
Jun 12, 2012 – Adira Energy announced that the Ministry of Energy and Water of the State of Israel has granted an extension of the dates for the execution of a drilling contract and the spudding of the first well at the offshore Gabriella and Yitzhak licenses. For the Gabriella license, the new contract execution date is Sept. 1, 2012; submission of an environmental study is now slated for July 20, 2012; and the new spud date is June 30, 2013. For the Yitzhak license, the new contract execution date is Sept. 1, 2012; submission of an environmental study is Sept. 1, 2012; and the new spud date is Oct. 30, 2013. The submission date of the Environmental Study was moved forward, and Adira management believes that they will be met by the deadline.
Project Details: Gabriella
N. America – US GOM
Petrobras Detects Small Leak of Hydraulic Fluid at Chinook
Jun 13, 2012 – Petrobras reported that a “small leak” of hydraulic fluid was detected during commissioning of a submarine system Sunday at its Chinook field in the GOM. Petrobras did not disclose the volume of the fluid that leaked. The company has notified U.S. officials of the leak, as well as set up an internal commission to evaluate the cause of the incident, reported Dow Jones Newswires. The field is still being developed with first production slated for later this year.
Project Details: The Greater Chinook Area
BP Brings Galapagos Project Online
Jun 12, 2012 – BP has commenced production from the deepwater three-field Galapagos development –Isabela, Santiago and Santa Cruz ??? in the Gulf of Mexico. The three fields are connected via a flowline loop to the BP-operated Na Kika host platform, situated about 140 miles (225 kilometers) south of New Orleans in 6,500 feet (1,981 meters) of water. Production is slated to ramp up by the end of the month from the Na Kika facility, which has an output capacity of 130,000 bopd and has been modified to handle additional output from the fields.
Project Details: Na Kika
ATP Resumes Production at Telemark Hub
Jun 11, 2012 – ATP reported that production at the ATP Titan platform has resumed, which services the company’s Telemark Hub. Production from the ATP Titan, shut-in since May 14, resumed after the operator of the Mars pipeline temporarily shut in the pipeline to allow for the tie-in of a new offsetting platform which has now been completed. Production at the ATP Titan is proceeding as expected and will ramp up over the next few days.
Project Details: Telemark
S. America – Other & Carib.
Niko Spuds Shadow-1
Jun 12, 2012 – Niko Resources has spudded the Shadow-1 well, located on the 2 (ab) Block, offshore Trinidad, using the Rowan Gorilla III (ILC jackup).
Series of Short-term Production Interruptions Occurs on Processing Facility
Jun 8, 2012 – Nexus Energy reported that a series of short-term production interruptions have occurred due to an intermittent electrical fault at the Patricia-Baleen gas processing facility. Production at the facility has been suspended, with outage expected to continue until the fault is identified and fixed through an offshore intervention program. The location of the fault has not yet been determined and could be within the Santos or Nexus offshore facilities. A vessel has been mobilized and is scheduled to arrive at the field on June 15, 2012, depending on weather, to commence the inspection and rectification works. The facility receives gas via a pipeline from Bexu???s offshore Longtom field.
Project Details: Longtom
Africa – West
Tullow Oil Intersects Good Quality Oil in Paon
Jun 8, 2012 – Tullow Oil reported that the Paon-1X exploration well in the CI-303 license offshore Cote d’Ivoire has intersected good quality light oil in a Turonian fan system. Paon-1X, the first deepwater exploration well drilled in the license, encountered 102 feet (31 meters) of net oil pay in a gross interval of 243 feet (74 meters) of turbidite sands. Pressure data indicates that this interval contains a continuous hydrocarbon column and samples show that it is a light oil of 41 degrees API. Further analysis is required to determine reservoir quality and the extent of the fan system. Following completion of logging operations, the well will be suspended for possible future use in appraisal and development operations. Drilled by the Eirik Raude (UDW semisub), the Paon-1X well reached a final depth of 16,699 feet (5,090 meters) in a water depth of 7,195 feet (2,193 meters).
Project Details: Paon
Europe – North Sea
Lundin Temporarily Suspends Albert Drilling
Jun 14, 2012 – Noreco reported that exploratory drilling on well 6201/11-3 in Production License 519, targeting the Albert prospect, has been temporarily suspended until August. The Bredford Dolphin (mid-water semisub) is moving to a Norwegian yard to complete its five-year renewal survey before returning to complete the Albert exploration well.
Project Details: Albert
Bridge Energy Acquires Stake in Boa Field
Jun 14, 2012 – Bridge Energy has signed a Sale and Purchase Agreement to acquire a 1.55 percent working interest in the producing Boa field from OMV Limited for a consideration of $18.1 million. The interest will add production of 250 bopd to Bridge. The unitized field extends across the UK/Norway median line and lies 88.65 percent in Norway Block 24/6 and 11.35 percent in UK Blocks 9/15a and 9/15b. The field was developed in 2008 as part of the wider Alvheim area development with three subsea development wells tied-back to the Alvheim FPSO operated by Marathon. Oil from Boa is shipped by shuttle tanker while gas is exported into the UK market via the Beryl SAGE system. The field is expected to produce until 2022.
Project Details: Alvheim
Statoil Gets Govt Nod to Drill at Troll
Jun 14, 2012 – Statoil was granted consent to drill on the Troll field using the COSLInnovator (mid-water semisub). The consent applies to drilling, completion and plugback on the field in a water depth of 1,093 feet (333 meters). Statoil’s contract with COSL Drilling Europe for use of the COSLInnovator has a duration of eight years from the start of the contract.
Project Details: Troll Area
Xcite Reaches TD at Bentley Well
Jun 13, 2012 – Xcite Energy has reached a targeted depth of 9,646 feet (2,940 meters) at well 9/3b-7z on the Bentley field. A reservoir section in excess of 2,000 feet (610 meters) has been drilled with 100 percent net pay and sand control screens have been run successfully. The top reservoir, at 3,609 feet (1,100 meters) true vertical depth, is higher than previously encountered in any part of the field to date, thereby giving an oil column depth of approximately 121 feet (37 meters). The remainder of the planned operations, including installation of the smart completion equipment (enabling individual laterals to be flowed, co-mingled or shut-in), the down-hole pumps and commissioning of the processing equipment will now be undertaken prior to commencing production testing.
Project Details: Bentley
Antrim Eying Fyne Development
Jun 13, 2012 – Antrim Energy has been granted an extension for the submission of a Field Development Plan for the Fyne field in the UK sector of the North Sea. The UK Department of Energy and Climate Change (DECC) notified the operator that it has extended the deadline for submission of an FDP for the Fyne field from June 2012 to January 2013. Antrim also anticipates DECC approval of the transfer to Antrim of the working interests of the other two partners in the License, Premier Oil UK Limited and First Oil Expro Limited, as well as the transfer of operatorship to Antrim from Premier. Once DECC approves the transfers, Antrim will be operator and hold 100 percent working interest in the Fyne License. The license target date for first production remains in the fourth quarter of 2014. Antrim continues its work on the design of a small SPAR production facility to determine its suitability for Fyne and surrounding fields in the Greater Fyne Area. In parallel with this work, Antrim is seeking joint venture partners to participate in appraisal and development of the Greater Fyne Area discoveries, including West Teal in Block 21/24b (Antrim 100 percent).
Project Details: Fyne
Apache Spuds Tryfan Well
Jun 13, 2012 – Apache has commenced exploratory drilling at the Tryfan prospect located in UK Block 3/17. The operator reported that Tryfan is an Eocene channelized sand play in the northern North Sea which benefits from a strong seismic amplitude response. The well is estimated to take around 25 days to complete.
Project Details: Tryfan
Norwegian Parliament OKs Edvard Grieg Development
Jun 11, 2012 – The Norwegian Parliament has approved development and operation plans for Lundin’s Edvard Grieg field, formerly Luno. This is the first project to progress to the development phase in the oil-rich Utsira High area of the Norwegian North Sea. The Edvard Grieg field is estimated to hold about 186 million barrels of oil equivalent and is scheduled to come on-stream in the fourth quarter of 2015. The Edvard Grieg development plan includes drilling of 15 wells from a jack-up rig, a processing platform on a jacket structure and export pipelines tied-back to existing infrastructure.
Project Details: Edvard Grieg (Luno, Draupne) Project
Total Receives Consent to Develop Martin Linge
Jun 11, 2012 – Total has received approval from the Norwegian Parliament for the development and operation of the Martin Linge, formerly Hild field. The field, which holds estimated recoverable reserves of 189 million boe, will be exploited using a fixed platform with gas to be exported via the UK pipeline system and oil to be processed and stored on a floating storage and offloading vessel for export by shuttle tanker.
Project Details: Martin Linge (Hild)
CGGVeritas to Acquire Seismic Survey over Ekofisk
Jun 8, 2012 – CGGVeritas will commence a survey acquisition of the Ekofisk field in the Norwegian sector of the North Sea, as part of the multi-year Life-of-Field seismic program for which it was awarded both the seismic data acquisition and processing. Mobilization is set to begin early June 2012, and the shooting period will last about one month. Production commenced from the Ekofisk field in 1971, and Eldfisk came on stream in 1979. ConocoPhillips operates the license, PL 018, with a 35.11% interest; Total holds 39.90%; Eni holds 12.39%; Statoil holds 7.60%; and Petoro holds 5%.
Project Details: Ekofisk Center
Africa – Other
Statoil Hits Pay in Tanzania
Jun 14, 2012 – Statoil reported that logging results from its Lavani well, offshore Tanzania, has confirmed a new high-impact discovery. The company said that preliminary estimates suggest a resource of three trillion cubic feet of gas-in-place. The Lavani well encountered 312 feet (95 meters) of “excellent quality” reservoir sandstone with high porosity and high permeability. The Lavani well, drilled in 7,875 feet (2,400 meters) of water depth is being drilling by Ocean Rig Poseidon (UDW drillship).
Project Details: Lavani
Anadarko Strikes Again in Rovuma Basin
Jun 11, 2012 – Anadarko has made another significant natural gas discovery offshore Mozambique in the Rovuma Basin. The Atum discovery well encountered more than 300 feet (92 meters) of natural gas pay in two high-quality Oligocene fan systems. According to preliminary data, the latest discovery is connected to the recent Golfinho discovery located approximately 10 miles (16.5 kilometers) northwest in Offshore Area 1. “We estimate this new complex, which is located entirely within the Offshore Area 1 block, holds 10 to 30-plus trillion cubic feet (Tcf) of incremental recoverable natural gas resources,” said Bob Daniels, Anadarko???s senior vice president of worldwide exploration. The Atum well was drilled by Dolphin Drilling rig Belford Dolphin (UDW drillship) to a total depth of approximately 12,665 feet (3,860 meters) in approximately 3,285 feet (1,000 meters) of water.
Project Details: Atum
S. America – Brazil
BW Offshore Signs Operation Contract with Statoil
Jun 12, 2012 – BW Offshore has signed a five-year contract with Statoil for the operation of the Peregrino FPSO, with options for an additional 15 years. The unit is operating at the Peregrino oil field offshore Brazil and BW Offshore will take over operations after a transition period of six months. The Peregrino field is located 53 miles (85 kilometers) off the Rio de Janeiro coast in a water depth of 394 feet (120 meters). Statoil operates the field holding a 60% interest; Sinochem holds the remaining 40%.
Project Details: Peregrino
Petrobras Finds Light Oil in Southern Portion of Sapinhoa
Jun 11, 2012 – Petrobras has found light crude oil at well, 1-BRSA-1045-SPS located in the southern portion of Sapinhoa field at a water depth of 7,222 feet (2,202 meters). The company’s cable tests confirmed that the discovery is of around 27 degree API. Under a ‘Rights Transfer Agreement’, the company is entitled to produce 319 million barrels of crude equivalent in the area. Petrobras is currently trying to drill the well to a depth of 16,590 feet (5,058 meters) to determine the lower limit of the reservoir. After drilling is completed, the company plans to conduct a formation test to determine the productivity of the oil reservoir.
Project Details: Sapinhoa (Guara)

LOST: Law of the Sea Hearings Point to Lame Duck Passage Strategy

Brian Darling
June 14, 2012 at 10:49 am

Today, the Senate has two hearings scheduled on the Law of the Sea Treaty (LOST). The Senate will have had three hearings on the LOST after today—yet, not for the purposes of educating Senators on the flaws versus the benefits of the treaty. These hearings are a pretext for a lame duck strategy to railroad the treaty through the Senate after the November election.

The first hearing today is titled “Perspectives from the U.S. Military.” Witnesses include Admiral James A. Winnefeld, Jr, Vice Chairman of the Joint Chiefs of Staff, and representatives from other government stakeholders in navigation on the high seas. The question that these witnesses can’t sufficiently answer is, “What can’t you do today, because of the LOST, that you could do if the treaty were to be ratified?” The answer is nothing.

Heritage’s Kim Holmes, former Assistant Secretary of State for International Organization Affairs, wrote for The Washington Times last year that the navigational provisions in the treaty are not necessary.

The treaty’s navigational provisions offer nothing new. Yes, the U.S. Navy says (LOST) might improve the “predictability” of these rights, but does the Navy’s access to international waters really depend upon a treaty to which we are not even a member? The last time I checked, the U.S. Navy could go anywhere it wanted in international waters. Though redundant, the navigational provisions of (LOST) are actually pretty good. That’s why President Ronald Reagan supported them. But Reagan and others objected to the unaccountable international bureaucracy created by the treaty.

The second hearing today will include former Secretary of Defense Donald Rumsfeld, Heritage Foundation expert Steve Groves, former Deputy Secretary of State John Negroponte, and former Legal Advisor at State John B. Bellinger, III. This hearing will be an excellent opportunity for the opponents of LOST to make the case that this treaty is flawed.

The bottom line is that Senator John Kerry (D–MA) has been stacking hearings in favor of proponents of LOST. The first hearing this year included Secretary of State Hillary Clinton, Secretary of Defense Leon Panetta, and General Martin Dempsey, Chairman of the Joint Chiefs of Staff.

As I wrote in an op-ed at Townhall, opponents of the treaty made a strong case against ratification.

Sen. Bob Corker (R-Tenn.) professed to be starting from a neutral position vis a vis ratification. Directing a query to Ms. Clinton, he said, “A lot of people believe that the administration…wants to use this treaty as a way to get America into a regime relating to carbon, since it has been unsuccessful doing so domestically. And I wonder if you might respond to that.” Ms. Clinton’s response? She said she has a legal analysis that knocks down that argument. But not all Americans are willing to rely on a politically driven legal memo from the Obama Administration as a guarantee that this treaty will not empower the International Sea Bed Authority to force regulations on American business. Those seeking certainty on this vital issue would rather take a pass on the treaty than take a chance on Ms. Clinton’s promises.

Senators Mike Lee (R–UT) and Jim Risch (R–ID) expressed dissatisfaction with the Administration’s alleging that opponents of the treaty were engaging in “misinformation” and “mythology.” Risch argued that “you addressed the people who oppose ratification of the treaty, and…I hope you weren’t scoffing at us.” Proponents have engaged in name calling to avoid the central issues to be considered before ratification.

These hearings are intended to show that Senate Foreign Relations Committee Chairman Kerry allowed conservatives to have their say before the lame duck strategy is implemented. The deck has been stacked, with two hearings in favor and one with a 50–50 split between proponents and opponents. Kerry used a similar strategy the last time the Senate considered the LOST.

Make no mistake; these hearings are part of the strategy of the treaty’s proponents to wait until after the election to push through LOST—in November or December of this year when the American people have no recourse against this offense against American sovereignty.


The Slippery Slope of Domestic Drones

Posted by Amanda Bowers
originally posted at the Washington State TAC

There are plenty of obvious concerns about the use of domestic drones. Their use by law enforcement is expanding rapidly, and it’s only normal to be concerned about privacy laws. Even if you don’t have a reasonable expectation of privacy in a public place, with drones the size of hummingbirds, will you have a reasonable expectation of privacy on your own property, or even through your own windows? In the long run, what will constitute the need for surveillance? In Washington state it could be a nice new way to fine litterers.

Let’s not forget the original intent of this technology. Drones are used by our military to spy on, and to kill our enemies. Or at least, those we perceive to be our enemies, whether guilt has been proven or not, and with a callous disregard for collateral damage.

While it could be argued that some use of surveillance drones is reasonable; for example, border patrol or missing persons cases, how soon does it become difficult to draw the line? Are we there already?

Just this week members of Congress accused the EPA of using drones to conduct surveillance flights over Iowa and Nebraska farms. Though they were assured by the EPA that they are using only manned aircraft to check for violations of federal clean water laws, it does make one wonder about the right of the EPA to conduct this type of surveillance in the first place. Not to mention the fact that even Congress doesn’t know what the EPA is doing.

We have many large government agencies like this. The EPA might not actually be using drones to monitor your compliance with federal laws now, but how long until they are? With domestic drones getting smaller and easier to come by, it seems that it is only a matter of time. And if the EPA now, then who next? The FDA? It would be a lot easier for them to keep tabs on who you are selling your raw milk to, if they could only monitor everyone who comes and goes from your property.

Then there is the fact that law enforcement is already talking about arming drones with rubber bullets. Of course this is mainly for things like crowd control. But At some point do you look up at the drone flying over head and feel a sudden solidarity with citizens in Islamabad, wondering; am I next? Perhaps the idea seems a little far fetched now, but not so very long ago, the idea of drones surveying your neighborhood was also far fetched.

Welcome to our new reality.

James Madison once warned us that “the means of defense against foreign danger have always been the instruments of tyranny at home.”

Is doesn’t seem like wisdom to treat our government, who can so easily brush off the deaths of hundreds of innocent civilians, as if they are somehow different people when it comes to surveillance here at home. We need to be vigilant about how this technology is used.

H.R. 5925, The Preserving Freedom from Unwarranted Surveillance Act, was recently introduced by Rep. Austin Scott, R-GA, “To protect individual privacy against unwarranted governmental intrusion through the use of the unmanned aerial vehicles commonly called drones, and for other purposes.” The text of the bill is not available yet, but it would require the government to obtain warrants for surveillance purposes.The bill is currently bound up in judicial committee where many bills go – never to be heard from again. It’s a good start though, and a reminder that we can enact our own surveillance regulation in our own states. In the meantime, we should be asking our Congress men and women to support this kind of legislation that would protect our 4th amendment rights.


Solstad, Ocean Installer Order Subsea Construction Vessel from STX OSV (Norway)

STX OSV Holdings Limited (“STX OSV”), one of the major global designers and shipbuilders of offshore and specialized vessels,  has received an order for the design and construction of a large, advanced Offshore Subsea Construction Vessel (OSCV) for Ocean Installer and Solstad Offshore.

The contract value amounts to approximately NOK 1.4 billion. Ocean Installer and Solstad will have joint ownership of the vessel, which is to be operated by Ocean Installer. The vessel is scheduled for delivery from STX OSV in Norway in 2Q  2014. The hull will be delivered from STX OSV in Romania. The contract is subject to board approval by the Norwegian Guarantee Institute for Export Credits (GIEK), expected to be received on or around 20 June 2012.

The vessel, of type OSCV 06L, has been designed by STX OSV and Solstad in close cooperation with Ocean Installer, and is highly advanced in terms of station keeping, efficiency and operational performance. The vessel is designed to operate efficiently under demanding conditions and is well fitted for SURF (Subsea,Umbilicals, Risers, Flowlines) operations.

The vessel is 156.7 meters long, 27 meters wide and has an aft cargo deck area of 2,100 m2. She will be equipped with a 150 t Vertical Lay System (VLS) and a 3,000 t below deck carousel, Remotely Operated Vehicles (ROVs) in hangars launched through moonpools, and two AHC offshore cranes (400 t and 100 t) which both can operate down to depths of 3,000 meters. The accommodation facilities will have a capacity of 140 persons. The vessel is designed according to the latest environmental standards with focus on low fuel consumption.

Steinar Riise, CEO of Ocean Installer said: “We are very satisfied with placing the contract for this new-build, and are looking forward to developing our operations with this vessel, which is built for heavy construction work, and is highly advanced when it comes to station keeping, efficiency and operational performance. This investment is in line with our growth strategy, as the vessel is capable of conducting the full range of subsea construction operations in the global market. Moreover, this joint venture consolidates the strategic cooperation between Solstad and Ocean Installer”

Ocean Installer is a Norwegian subsea entrepreneur headquartered in Stavanger,Norway. Ocean Installer holds strong EPCI expertise within the SURF (Subsea, Umbilicals, Risers, Flowlines) segment and is rapidly expanding its operations andorganization within and beyond the North Sea basin. Solstad Offshore ASA is among the largest shipping companies in Norway, providing advanced vessels and extensive maritime competence for operations related to the offshore petroleum industry. The company has about 1,600 employees, and operates 50 vessels all over the world. Solstad Offshore is headquartered in Skudeneshavn, Norway and has branch offices in Brazil, Singapore, United Kingdom and Australia


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