Daily Archives: June 21, 2012

Recap: Worldwide Field Development News (Jun 15 – Jun 21, 2012)

This week the SubseaIQ team added 3 new projects and updated 30 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

Rialto Recovers Oil, Gas in Gazelle-P3 Well

Jun 21, 2012 – Rialto Energy reported that it has encountered high gas readings and recovered oil and gas samples from the sidetrack of its Gazelle-P3 well. Wireline logs have been taken while further logging with vertical seismic profile and sidewall coring are continuing with completion expected in the next three days. Rialto said the oil and gas samples were recovered from the Upper Cenomanian sands as expected while the gas readings were noted in the Lower Cenomanian. The samples will also be used to assist in the design of the Gazelle field development processing facilities.

Project Details: Gazelle

S. America – Other & Carib.

Chevron Enters Suriname Acreage

Jun 20, 2012 – Kosmos Energy has entered into an agreement with Chevron under which Kosmos will assign half of its interest in Blocks 42 and 45, offshore Suriname, to Chevron. Under the agreement, Kosmos will have a 50 percent working interest and remain operator of both blocks until the end of the exploration phase. Chevron will assume the remaining 50 percent working interest and will become development operator of any commercial discoveries. Blocks 42 and 45 cover an area of about 2.8 million gross acres in water depths ranging between 650 to 8,500 feet (200 and 2,600 meters). First drilling is targeted for 2014.

Asia – SouthEast

Salamander Spuds Bualuang Far East-1 Well

Jun 18, 2012 – Salamander Energy has spud the Bualuang Far East-1 exploration well in Block B8/38, Gulf of Thailand. The Bualuang Far East prospect is located approximately four miles (six kilometers) to the northeast of the Bualuang oil field. The Far East-1 well will be drilled to a total vertical depth of 4,765 feet (1,452 meters) subsea. The primary target is the T5 Miocene sandstones with secondary targets comprising an underlying Permian-age Ratburi carbonate and a T4 Miocene sandstone stratigraphic trap. The main T5 objective has potential mean recoverable resources of 20 million barrels of oil. The well will be drilled by the ENSCO 53 (300??? ILC) jackup and is expected to take about 20 days to complete.

Project Details: Bualuang

Australia

Chevron Sells Interest in Wheatstone to Pan Pacific Energy

Jun 19, 2012 – Chevron has agreed to sell 10-percent participating interest of its Wheatstone field licenses and 8-percent participating interest of its Wheatstone natural gas processing facilities to Japan’s Pan Pacific Energy. Chevron added that Japan’s Tokyo Electric Power Company (Tepco), one of the stakeholders in Japan’s Pan Pacific Energy K.K, has agreed to purchase an additional 0.4 million tons per annum (MTPA) of liquefied natural gas from the Wheatstone Project for up to 20 years. This new agreement brings Tepco’s total LNG offtake to 4.2 MTPA.

Project Details: Wheatstone

Mediterranean

Noble Suspends Pinnacles Gas Flow

Jun 18, 2012 – Noble Energy has suspended gas flow from the Pinnacles No. 1 well offshore Israel. According to partner Delek Group, this is due to an indication of a gas composition that does not match the specification for flow. The operator plans to examine alternative options including gas treatment to allow the resumption of gas flow.

N. America – US GOM

Cobalt Comes Up Dry iat Ligurian

Jun 15, 2012 – The Ligurian No. 2 well has failed to encounter commercial hydrocarbons and will now be plugged and abandoned after reaching a final depth of more than 30,000 feet (9,144 meters). The ENSCO 8503 (UDW semisub) drilled the well to a total depth of 31,800 feet (9,693 meters).

Project Details: Ligurian

Anadarko Gets Nod to Drill in GOM

Jun 15, 2012 – The BOEM recently approved Anadarko’s permit to drill at its Shenandoah prospect in Walker Ridge Block 51. The permit lists the ENSCO 8505 (UDW semisub) as the rig that will perform drilling operations. The Shenandoah well has a proposed depth of 32,000 feet (9,754 meters) and is located in approximately 5,800 feet (1,768 meters) of water.

Project Details: Shenandoah

Europe – North Sea

Ocean Installer Completes Survey, Intervention Work at Balder

Jun 21, 2012 – Ocean Installer has completed a survey and intervention work at the Balder field. The conducted work encompassed inspection and maintenance of the subsea control system at the field. Balder is located on Blocks 25/10 and 25/11 in the Norwegian sector of the North Sea about 118 miles (190 kilometers) west of Stavanger, Norway at a water depth of 410 feet (125 meters).

Project Details: Balder

Providence Pleased with Barryroe’s Core Analysis

Jun 21, 2012 – Providence Resources has completed the core analysis of the reservoir at its Barryroe discovery. The firm said that permeabilities in the basal oil-bearing reservoir interval have exceeded expectations, while good permeabilities have also been confirmed in secondary logged hydrocarbon-bearing sand. The permeabilities in the basal oil-bearing interval confirm the high-productivity nature of this reservoir as observed during well-testing operations, said Providence. The company will provide a revised resource update for Barryroe later this summer.

Project Details: Barryroe

Technip to Construct Subsea System for Boyla Development

Jun 20, 2012 – Technip won a contract for the development of the Boyla field in the Norwegian sector of the North Sea. The $381 million deal with Marathon covers all activities necessary to complete the construction of the subsea system for the field development and connect it to the existing Alvheim subsea facilities. Offshore construction will take place in 2014. The field is to be developed as a subsea tie-back to the Alvheim FPSO, with two production wells and a water injection well. The Boyla field is estimated to hold reserves of 23 million barrels of oil equivalent.

Project Details: Alvheim

Valemon Jacket Delivered and Installed

Jun 19, 2012 – Statoil reported that the Valemon jacket was successfully delivered and installed on the field, which lies in the Norwegian sector of the North Sea. The 9,000-ton steel jacket was carried out as planned and the project remains on schedule. The jacket, which was built by Heerema Fabrication Group in Vlissingen in the Netherlands, was transported from the shipyard and out to the field by the crane barge Thialf. Development of Valemon involves a fixed platform with a steel jacket for the separation of gas, condensate and water. The rich gas will be transported via a new pipeline to the existing pipeline from Huldra to Heimdal for further processing. The condensate will be piped to the Kvitebj??rn platform for stabilization and further transport via the Troll oil pipeline to the Mongstad refinery. At peak production, Valemon is expected to deliver roughly 86,000 barrels of oil equivalent per day. The field is expected to come on stream in the fourth quarter of 2014 and has a life expectancy of 11 years.

Project Details: Valemon

North Sea Buzzard Oil Field to Shut Down for 4 Weeks

Jun 15, 2012 – Nexen reported that the Buzzard oil field will have an extended four-week shutdown in the third quarter for the field’s five-year regulatory inspection. The company did not specify when the shut-down will likely occur. Buzzard produces about 200,000 bopd and is the largest oil field that contributes to Forties crude.

Project Details: Buzzard

Statoil Submits PDO for Svalin

Jun 15, 2012 – Statoil has submitted a plan for development and operation for the Svalin field to the Norwegian government and reported it expects to bring the field online in 2013. Recoverable reserves at the field are estimated at around 75 million barrels of oil equivalent, with two structures Svalin C and Svalin M containing similar quantities. The Svalin C and Svalin M discoveries will be developed through a ‘fast-track’ method that uses a standard solution involving processing by existing infrastructure. The Svalin development will be tied-back to the Grane platform. Svalin M will be produced by a well drilled from the Grane platform, while Svalin C will be a subsea development connected via a four-mile long flowline to the Grane platform. The hydrocarbons will utilize shared processing and export facilities. The gas compression facility at the Grane platform will be modified to handle gas from Svalin. Oil from the Svalin development will be transported, along with production from the Grane field, through the existing pipelines for storage and shipment from the oil terminal at Sture.

Project Details: Svalin

Shell Contracts FPSO for Fram Field

Jun 15, 2012 – Shell sent SBM Offshore a letter of interim award (LOIA) for the supply, lease and operation of a FPSO for the Fram field in the UK sector of the North Sea. The LOIA allows SBM Offshore to commence engineering and procurement of long lead items to ensure timely completion of the planned Fram FPSO project, which is subject to a Final Investment Decision. In March 2012, Shell and SBM Offshore signed an Enterprise Framework Agreement (EFA) covering a term of five years, with an option to extend for another five years. The Fram FPSO, subject to a Final Investment Decision, will be the first project to be developed under the terms of the EFA. The hull of the FPSO will be based on a converted Aframax tanker and will incorporate an internal turret permanent mooring system. The crude will be offloaded to shuttle tankers and the gas exported via the existing Fulmar pipeline.

Project Details: Troll Area

N. America – Canadian Atlantic

Statoil Confirms Mizzen Discovery Holds Large Amounts of Oil

Jun 21, 2012 – Statoil has confirmed that it has found between 100 and 200 million barrels of recoverable oil at its Mizzen deepwater prospect offshore Newfoundland. The company stated it is now assessing the discovery to determine how and when it can be economically developed. Statoil discovered oil in 2009 while drilling Mizzen O-16 and appraised the find in late 2011. Statoil plans to drill two new wildcat wells in the area by the end of next year, and potentially additional wells in 2014 and beyond. Mizzen is situated roughly 311 miles (500 kilometers) east of St. John’s in 3,609 feet (1,100 meters) of water.

Project Details: Mizzen

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GoM Lease Sale: Apache Expands Presence in Gulf of Mexico

Apache Corporation announced it was the high bidder on 90 shelf and deep water blocks in the Central Gulf of Mexico offshore lease sale held by the Bureau of Ocean Energy Management (BOEM) in New Orleans.

Of the 56 companies submitting bids for Gulf of Mexico acreage, Apache Corp. was ranked No. 1 overall for its 61 high bids on the shelf, while Apache Deepwater LLC, the company’s deep water arm, was ranked No. 4 overall with 29 high bids.

The sum of the combined high bids was nearly $96 million gross.

“We’re excited about these blocks and our expanding presence in the Gulf of Mexico,” said G. Steven Farris, Apache chairman and chief executive officer. “The Gulf of Mexico is integral to Apache’s long-term growth. The shelf provides some of the best margins, highest returns and most free cash flow, and the deep water has some of the best exploration potential of any region in our global portfolio.”

Bidding on acreage in the shelf was focused on areas where Apache is acquiring proprietary seismic data, along with moderate to deep exploration prospects based on recently acquired and reprocessed seismic data. Successful deep water bids were focused on Pliocene and Miocene trends where Apache has acquired a significant seismic data base. Deep water bid partners included Stone Energy, Samson, Noble, Repsol, Nexen and Ecopetrol.

“This was a very robust lease sale with premium acreage,” said Jon Jeppesen, executive vice president of Apache’s Gulf of Mexico regions. “These blocks strengthen our position on the shelf and in the deep water. In both areas, Apache has the fiscal wherewithal, technical prowess and experience to capture the value of these opportunities.”

The shelf and deep water Gulf of Mexico currently represents 15.5 percent of Apache’s overall daily production.

Source

Six New Leases for EPL in Central GoM Lease Sale (USA)

Energy Partners, Ltd., a U.S. based oil and gas exploration and production company announced was the high bidder on six leases at the Central Gulf of Mexico Lease Sale 216/222 held yesterday in New Orleans, Louisiana.

The six high bid lease blocks cover a total of 27,148 acres on a net and gross basis and are all located in the shallow Gulf of Mexico Shelf within the Company’s core area of operations. EPL’s share of the high bids totals $7.0 million.

Gary C. Hanna, EPL’s President and Chief Executive Officer commented, “This lease sale was a long awaited one, and we are pleased that we were successful with high bids within our core areas and targeted region. Consistent with our acquisition and organic growth strategy, the leases contain oily prospects that enhance our existing portfolio and were identified with the aid of our regional study that kicked off earlier this year. The six leases include three leases within the Main Pass area, two within the West Delta area, and one adjacent to our South Timbalier 41 field.”

The Central Gulf of Mexico oil and gas lease sale attracted $1,704,500,995 in high bids for tracts on the U.S. outer continental shelf offshore Louisiana, Mississippi and Alabama. Yesterday’s highest bid on a tract was $157,111,000 submitted by Statoil Gulf of Mexico LLC for Mississippi Canyon, Block 718.

Secretary of the Interior Ken Salazar said that the sale, was good news for American jobs, good news for the Gulf economy, and would bring additional domestic resources to market.

Source

U.S. Gulf of Mexico Oil and Gas Lease Sale Attracts USD 1.7 bln in High Bids

Yesterday, the Department of the Interior took the latest step as part of President Obama’s all-of-the-above energy strategy to expand safe and responsible domestic energy production, holding a 39 million acre lease sale in the Gulf of Mexico.

Secretary of the Interior Ken Salazar announced that the Central Gulf of Mexico oil and gas lease sale attracted $1,704,500,995 in high bids for tracts on the U.S. outer continental shelf offshore Louisiana, Mississippi and Alabama. A total of 56 offshore energy companies submitted 593 bids on 454 tracts covering more than 2,402,918 acres. The sum of all bids received totaled $2,602,563,726.

The lease sale builds on a series of actions taken by the Obama administration, including additional lease sales for both onshore and offshore areas for oil and gas development, to meet the President’s direction to continue to expand safe and responsible production of America’s important domestic resources.

“This sale, part of the President’s all-of-the-above energy strategy, is good news for American jobs, good news for the Gulf economy, and will bring additional domestic resources to market,” said Salazar, who opened the sale. “When it comes to domestic production, the President has made clear he is committed to expanding oil and natural gas production safely and responsibly, and today’s sale is just the latest example of his administration delivering on that commitment. The numbers speak for themselves: every year the President has been in office, domestic oil and gas production has increased, foreign imports of oil have decreased, and we are currently producing more oil than any time in the past eight years.”

The Central Gulf of Mexico Lease Sale 216/222, conducted by the Bureau of Ocean Energy Management (BOEM), offered more than 39 million acres for oil and gas development on the U.S. Outer Continental Shelf. The acreage included 7,434 tracts from three to more than 230 miles off the coast, in depths ranging from 10 to more than 11,200 feet (3 to 3,400 meters). BOEM estimates the economically recoverable hydrocarbons that could be produced as a result of the acreage offered ranges from 0.8 to 1.6 billion barrels of oil and 3.3 to 6.6 trillion cubic feet of natural gas.

The sale builds on the successful Western Gulf of Mexico lease sale held by BOEM in December 2011 that made available more than 21 million acres – equal to an area the size of South Carolina – and attracted more than $337 million in high bids and included 20 companies submitting 241 bids on 191 tracts comprising over a million acres offshore Texas. In 2010, DOI offered nearly 37 million offshore acres to industry for oil and gas leasing.

“Before moving forward with Sale 216/222, we conducted a rigorous analysis of the environmental effects of the Deepwater Horizon oil spill on the Central Gulf of Mexico,” said BOEM Director Tommy P. Beaudreau. “We have also continued a number of lease terms designed to ensure fair return to the American people and provide innovative incentives to promote diligent development of our nation’s offshore oil and gas resources.”

Yesterday’s highest bid on a tract was $157,111,000 submitted by Statoil Gulf of Mexico LLC for Mississippi Canyon, Block 718. Shell submitted the highest total amount in bonus bids, $406,594,560 on 24 tracts.

Lease terms for both sales included escalating rental rates to encourage faster exploration and development of leases as well as shorter lease terms for shallower water in order to encourage timely development. BOEM has increased its minimum bid requirement in deepwater to $100 per acre, up from $37.50 in previous Central lease sales. Rigorous historical analysis showed that leases that received high bids of less than $100 per acre have experienced virtually no exploration and development activities.

Lessees will have to comply with a series of important environmental stipulations, including requirements to protect biologically sensitive features, as well as marine mammals and sea turtles, and employ trained observers to ensure compliance and restrict operations when conditions warrant. These terms will help ensure an appropriate balance of responsible resource development with protection of the human, marine and coastal environments.

Each high bid on a tract will now go through a strict evaluation process within BOEM to ensure the public receives fair market value before a lease is awarded. This is the final Gulf Lease Sale scheduled in the current Outer Continental Shelf Oil and Gas Leasing Program: 2007-2012.

Source

USA: Statoil Secures 26 New Leases in Gulf of Mexico

Statoil was the high bidder on 26 leases in the first lease sale in the Central Gulf of Mexico since March of 2010.

With the addition, Statoil will control more than 350 leases in the Gulf of Mexico, further securing its significant leaseholder position

“We are very pleased with today’s outcome,” says Erik Finnstrom, senior vice president of Exploration for Statoil in North America.

“This addition of leases allows us to further build upon our broad-based strategy for exploration in the Gulf of Mexico and further upgrades our core position in this prolific and proven basin.”

As the world’s largest offshore operator and a leader in subsea technology, Statoil has been a partner in several major discoveries, including Jack, St. Malo, Julia, Vito and Logan.

“The lease additions underscore our commitment to increased investment in North America, which we see as a core region for long-term growth. Our strategy involves acquiring prospects across a full range of plays – from those at the frontier level to very mature, drill-ready plays,” Finnstrom says. “Statoil’s growth in North America has been methodical, based on best practices and technological innovation honed from operating for 40 years in some of the world’s harshest offshore regions.”

Statoil has six producing fields and has eight fields under development. At the moment the company is drilling the Bioko prospect in the central Gulf of Mexico region and plans to drill two to three more wells within the next 12 months offshore Gulf of Mexico, while also participating in an additional two to three wells drilled by its partners.

Statoil is the operator of three of 2011’s 10 largest oil and gas discoveries globally and has a strong safety and environmental record. The company has been active in North America for 25 years and, over the six years since it began operations, has acquired a broad portfolio with offshore and onshore assets in Canada and the U.S.

The lease sale on June 20 was conducted by the Bureau of Ocean Energy Management (BOEM).

Statoil’s winning bids are subject to review and final approval by the BOEM. This may take up to 90 days.

Source

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