Daily Archives: July 11, 2012

Shell Pipeline Houma-To-Houston Reversal Project Progressing

07/11/2012

Shell Pipeline today announced that its Ho-Ho pipeline reversal project (“Ho-Ho Reversal”) is progressing as per plan, based on shipper requests and new crude production and infrastructure coming online.

After the completion of this project, shippers will have access to markets and connectivity in Nederland and Port Arthur, Texas.

Through a Declaratory Order, the Federal Energy Regulatory Commission (FERC) recently approved the contract rates and capacity allocation for the Ho-Ho Reversal project.  Shell Pipeline welcomes this decision that further supports this project.

The initial phase of Shell Pipeline’s Ho-Ho Reversal project will move crude oil from connecting pipelines and terminals in East Houston to Nederland and Port Arthur, thereby supplying the refining complex across the region with crude from Eagle Ford and Permian, as well as crude supplies from the Cushing, Oklahoma area.  Phase I of the Ho-Ho Reversal project is designed to complement the new pipeline infrastructure that is currently being built to the Houston area.

About Shell Pipeline Company LP:  For more than 80 years, Shell Pipeline Company LP has helped meet America’s energy needs. We transport more than 2 billion barrels of crude oil and refined products annually through thousands of miles of pipelines located in seven states.

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USA: Apache Finds Huge Shale Gas Reserves in Liard Basin

Apache Corp. has found a huge amount (up to 48 trillion cubic feet) of natural gas in its Liard Basin properties in northeastern BC. All of the gas is targeted to ship to a proposed LNG plant which should be built at Kitimat, according to Refinery News.

As the company says, it is the best unconventional gas discovery in North America. They have rights to drill 430,000 acres within the region.

Because of the low gas price, it is expected that the drilling plans in the Liard region could be very slow.

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Expro to Supply Subsea Test Trees for Who Dat Project (USA-GoM)

A UK based international oilfield services company Expro has been awarded a $3.4 million, two-year contract working on the Who Dat project, in the Gulf of Mexico, for LLOG Exploration.

Expro will provide subsea test trees for the project on the Mississippi Canyon (Block 547).

“Expro and LLOG have had a long and productive relationship in the past, and this award further cements the relationship,” said the company in a press release.

“This award is an important success for Expro and is a testament to the hard work and commitment the team has shown in delivering world class service for LLOG in the past,” said Geoff Magie, vice president of Expro’s North America offshore operations.

Expro’s market-leading subsea safety systems provide reliable and efficient in-riser landing strings for well interventions and completions. Expro is already well established in the deepwater regions of the world, including Africa, Gulf of Mexico, Asia and Brazil, with its superior technology and expertise in greater demand as development progresses in the world’s deepwater provinces.

LLOG is the leading privately-owned exploration and production company in the Gulf of Mexico, and one of the top 10 private oil and gas companies in the United States.

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USA-GOM: Galapagos Production Rates Above Forecast

Noble Energy, Inc.,independent energy company engaged in worldwide oil and gas exploration and production, has announced that all three wells at the Galapagos development in the deepwater Gulf of Mexico are now producing and at rates above the original forecast. The Company also announced that appraisal of the Deep Blue prospect will not continue at this time.

The Galapagos development includes three deepwater fields. The fields – Isabela, Santiago and Santa Cruz – are being produced using subsea equipment on the floor of the Gulf. A new production flowline loop has been added to carry output to the nearby Na Kika host facility, a BP-operated platform located roughly 140 miles southeast of New Orleans in 6,500 feet of water.

Production in the Galapagos area was initiated from the BP operated Isabela field in early June, followed by the Noble Energy operated fields of Santa Cruz and Santiago. The fields were individually flow tested and production increased over the course of several weeks. The Company’s net production of 13,000 barrels of oil per day and 8 million cubic feet of natural gas per day is about 30 percent greater than previously forecast. With the addition of Galapagos, Noble Energy’s deepwater Gulf of Mexico production has increased to approximately 30,000 barrels of oil equivalent per day, with over 80 percent oil.

David L. Stover, Noble Energy’s President and Chief Operating Officer, commented, “Galapagos is our second major project to start up in the past eight months and will provide significant production and cash flow growth. We continue to build on our strong track record of execution as this project came on-line less than three years after sanction. Galapagos is one of the first development projects to start up in the Gulf of Mexico after the moratorium, and our permit to drill Santiago was the first such permit received following the moratorium.”

At Deep Blue, although hydrocarbons were found in both the initial exploration well and subsequent sidetrack, the Company and its partners have decided not to proceed with additional appraisal activities at this time. The Deep Blue well was originally spud late 2009 and sidetrack operations were underway when the moratorium was announced. Noble Energy was required to suspend operations, and the rig working at that time was released. After the moratorium was lifted, another rig was certified under new regulatory requirements to finish the sidetrack. The Company expects to record $118 million of exploration expense in the second quarter related to the Deep Blue prospect.

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