Daily Archives: August 23, 2012

Worldwide Field Development News Aug 17 – Aug 23, 2012

This week the SubseaIQ team added 1 new projects and updated 14 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 – Caspian

Seismic Survey Completed on RWE Dea’s Block 23 Offshore Turkmenistan

Aug 20, 2012 – RWE Dea has completed its 3D seismic survey offshore Turkmenistan in under four months. Approximately 154 square miles (400 square kilometers) was acquired in RWE Dea’s Block 23, which was awarded as part of a production sharing contract (PSC) in 2009.
According to RWE Dea, it will take several months for geologists and geophysicists to interpret the processed data collected from the Miocene and Pilocene rock strata at depths of 9,842 to 21,325 feet (3,000 to 6,500 meters). This 3D seismic survey transitioned from onshore to shallow water and was the first of its kind conducted on the coast of Turkmenistan. An additional 2D program was included in the seismic measurements in order to further assess the exploration potential of the area.

Asia – SouthEast

Majority Interest in Philippines Block SC56 Acquired by Total

Aug 23, 2012 – Total E&P Philippines B.V. announced it has agreed to a farm-out with Mitra Energy to take 75% interest in offshore Block SC56. The block is located in the Sulu Sea, covers a total area of 1,660 square miles (4,300 square kilometers) and has water depths ranging from 656 to 984 feet (200 to 3,000 meters). Mitra retains 25% interest in SC56.
A new exploration phase begins September 2012 with Mitra operating the re-processing of existing data and the acquisition of an additional 193 square miles (500 square kilometers) of 3D seismic. Operatorship will transfer to Total for drilling operations. Approval of this agreement by the authorities of the Republic of Philippines is pending.

Premier Upgrades Anoa Facility

Aug 23, 2012 – Premier Oil reported that the Anoa facility has been undergoing a series of upgrades via engineering projects collectively known as Phase 4. The first phase commenced began in July with pre-fabricated compression models being installed on the platform. The second phase of construction will continue during Summer 2013. The overall project will be completed during the second half of 2013 and will result in the development of around 200 billion cubic feet of undeveloped proven reserves on Natuna Sea Block A and increase the Anoa facility’s capacity to 200 BBtud.

Bualuang Bravo Platform to be Installed mid-October

Aug 23, 2012 – Construction on the Bualuang Bravo Platform is scheduled to be finished by the end of August and approvals have been received for the environmental impact assessment. The K1 HLV will begin load-out and installation of the platform by mid-October and by the end of October the platform will be ready for development drilling activities.

Project Details: Bualuang

Premier Reaches TD on Chim Sao NW Appraisal Well

Aug 17, 2012 – Premier Oil reported that the Chim Sao North West appraisal well, CS-3X, has reached a total depth of 13,894 feet (4,235 meters). The well has been plugged and abandoned after encountering oil shows in the Middle Dua sands. The appraisal well was drilled to determine whether the Chim Sao North West discovery extended into a separate fault segment to the north. The well targeted the Upper and Middle Dua sands. While 443 feet (135 meters) of sandstone reservoir were penetrated in the Upper Dua interval there was no indication of hydrocarbons. In the Middle Dua interval 541 feet (165 meters) of sands were drilled, but only oil shows were encountered. The CS-N17XP well, which was completed immediately prior to the appraisal well, was drilled to produce from the North West extension to the Chim Sao Field. That well was brought on-stream earlier this month with initial extended production test rates averaging 4,000 barrels of oil per day from four Upper Dua reservoirs.

Project Details: Chim Sao

Europe – North Sea

DECC Approves Fionn Field Development Plan

Aug 23, 2012 – UK’s Department of Energy and Climate Change has approved the Field Development Plan for the Fionn Field. Previously drilled and suspended, 211/22a-6, will be completed with dual electrical submersible pumps. First oil is anticipated in mid-2013 at an initial rate of 4,500 bopd. The well, which was originally drilled in 2007, tested oil from the Ness and Etive formations at a combined flow rate of approximately 5,500 bopd. Production from Fionn will be combined with production from Causeway and transported for processing to the Cormorant North platform.

Project Details: Causeway

Statoil Aims to Improve Recovery at Gullfaks South

Aug 23, 2012 – Statoil, along with its partner Petoro, has announced plans for further development of the Gullfaks South field located on the Norwegian continental shelf. Production in the field has fallen sharply in recent years. With a planned investment of $1.4 billion, Statoil will apply its “fast-track” concept which will make use of existing infrastructure as well as two new subsea structures and six additional development wells. The partners believe that their investment will allow recovery in the field to be increased by 65 million barrels of oil equivalent.

Project Details: Greater Gullfaks Area

Total to Spin Bit at Spinnaker

Aug 23, 2012 – Upon completion of operations at Tomintoul, Total will move the West Phoenix (UDW semisub) to its Spinnaker prospect. Spinnaker is located West of Shetlands on Block 206/04a.

Project Details: Spinnaker

Total to Spin Bit at Spinnaker

Aug 21, 2012 – Upon completion of operations at Tomintoul, Total will move the West Phoenix (UDW semisub) to its Spinnaker prospect. Spinnaker is located West of Shetlands on Block 206/04a.

Project Details: Spinnaker

Statoil Encounters Oil in Geitungen Prospect

Aug 17, 2012 – Statoil has made an oil discovery at the Geitungen prospect, reported Det norske, a partner in Production License 265. Oil was encountered and a core sample was recovered. Drilling operations are ongoing and the final results from the well are not yet available, Det norske said in a statement. The Ocean Vanguard (mid-water semisub) is drilling exploratory well 16/2-12 to a total depth of 6,759 feet (2,060 meters) to prove the presence of oil-bearing Jurassic sandstones similar to the Johan Sverdrup discovery. Statoil operates the field with a 40 percent stake; while Lundin holds 10 percent; Petoro holds 30 percent; and Det norske holds the remaining 20 percent.

Project Details: Geitungen

Duart Field Remains Shut-In

Aug 17, 2012 – Talisman Energy stated that the Duart field, which was shut-in on July 26 due to a process shutdown on the host Tartan platform, remains shut-in to date. During the shut-in period, additional technical issues have come to light which are preventing the restart of gas processing on the Tartan platform. The gas process is required to support Duart production. The operator will continue to close the field until these problems are resolved. Talisman indicates that the earliest restart date is December 2012.

Project Details: The Greater Tartan Area

S. America – Other & Carib.

Results Are In for Darwin Fluid Sample Analysis

Aug 23, 2012 – Borders & Southern received positive results from the fluid analysis performed on samples from Well 61/17-1 located offshore the Falkland Islands. The initial condensate yield from the Darwin gas samples, as measured in a laboratory separator test, varies from 123 to 140 stb/MMscf. The API gravity of the condensate is 46 to 49 degrees. Based on the condensate yield and ongoing reservoir modeling, the Company estimates the recoverable volume of condensate to be 130 to 250 million barrels with a mid-case of 190 million barrels. The company will now move forward with the acquisition of additional 3D seismic data in 2013 and explore the best way to fund an exploration and appraisal campaign.

Project Details: Darwin East

Africa – West

Ophir Energy Successfully Appraises Fortuna Discovery

Aug 23, 2012 – Ophir Energy has successfully drilled the Fortuna East-1 appraisal well in Block R offshore Equatorial Guinea. Fortuna East-1 is located approximately 4 miles (7 kilometers) east southeast of Fortuna-1. The well encountered natural gas in the eastern lobe of the Fortuna Complex as well as in a deeper exploration target Viscata. The recoverable mean resource from the eastern lobe is now estimated at 426 Bcf. A 180-foot (55-meter) gas bearing column containing a total of 131 feet (40 meters) of net pay in the primary target Late Miocene sands of the eastern lobe of the Fortuna Complex was encountered. Pressure measurements indicate communication between Fortuna-1 and Fortuna East-1.

Australia

Browse LNG Project Loses Chevron in Swap with Shell

Aug 20, 2012 – Interests in two major natural gas projects in Australia have changed hands between Royal Dutch Shell and Chevron Corporation. Shell has agreed to swap its interest 33.3-percent interest in two gas fields associated with its Wheatstone project located in Western Australia and pay $450 million in cash to Chevron. In return, Shell will receive a combined interest of 36.7-percent interest in the Browse LNG project.
Shell will now hold a 35-percent ownership in West Browse and 25-percent in East Browse. International Director for Shell Upstream, Andy Brown believes this deal with simplify the ownership of the Browse gas fields.

Project Details: Browse LNG

ConocoPhillips, Karoon Gas Resume Drilling Boreas-1 After Solving Rig Woes

Aug 17, 2012 – Karoon Gas has completed repair work on a blowout preventer after more than two months, and the contracted semisub rig, Transocean Legend (mid-water semisub), can resume drilling in the Greater Poseidon area in the Browse Basin offshore Western Australia. The operator is planning to drill at the Boreas-1 well, the first of a minimum five exploration wells the consortium will drill in the Greater Poseidon area, will begin on Aug. 17. All of the five exploration wells will be drilled by the Transocean Legend, and lie in the WA-314-P, WA-315-P and WA-398-P Browse Basin permits containing the previously announced Poseidon and Kronos gas discoveries. Karoon Gas holds a 40 percent stake in WA-315-P and WA-398-P, and a 90 percent stake in WA-314-P. ConocoPhillips holds the remaining stakes in the three permits.

Project Details: Boreas

Houston, TX: Petrobras Awards Subsea Supply Contract to Dril-Quip (Brazil)

Dril-Quip, Inc. today announced that Dril-Quip do Brasil LTDA, its wholly owned subsidiary, has been awarded a four-year contract by Petrobras, Brazil’s national oil company, for the supply of subsea wellhead systems and associated tools to be used in the drilling of deepwater wells offshore Brazil.

Based on current exchange rates and after Brazilian taxes, the contract is valued at $650 million if all of the equipment under the contract is ordered. Amounts will be included in Dril-Quip’s backlog as purchase orders are received under the contract. Dril-Quip expects to begin delivering products under the contract in the second half of 2013.

The contract is subject to customary terms and conditions for agreements of this type, including termination, extension, product inspection, local content requirements and price adjustment provisions.

Dril-Quip is a leading manufacturer of highly engineered offshore drilling and production equipment, which is well suited for use in deepwater, harsh environment and severe service applications.

Subsea World News – Petrobras Awards Subsea Supply Contract to Dril-Quip (Brazil).

Borders & Southern Prepares for Darwin Discovery Appraisal (Falkland Islands)

Borders & Southern Prepares for Darwin Discovery Appraisal (Falkland Islands)| Offshore Energy Today

Borders & Southern has announced the results of the Darwin fluid sample analysis. As previously reported, well 61/17-1 encountered a good quality sandstone reservoir comprising 67.8m of net pay with an average porosity of 22%. The gas condensate reservoir was sampled at four separate levels with 3 fluid samples taken at each level.

The initial condensate yield from the Darwin gas samples, as measured in a laboratory separator test, varies from 123 to 140 stb/MMscf. The API gravity of the condensate is 46 to 49 degrees. Based on the condensate yield and ongoing reservoir modelling, the Company estimates the recoverable volume of condensate to be 130 to 250 million barrels with a mid case of 190 million barrels.

Following these positive laboratory results, the Board will approve a work programme that includes appraisal drilling of the Darwin discovery. Additional wells are necessary to confirm the initial resource estimates and establish a commercial development. In the coming months, activity will focus on a comprehensive technical evaluation of all the data collected from well 61/17-1 and a review of potential development concepts along with project economics.

These results have exciting implications for the Company’s prospect and lead inventory and particularly for those prospects in the Lower Cretaceous play fairway to the south of the Falkland Islands. Borders & Southern’s prospect inventory contains further relatively low risk structural prospects of a similar size to Darwin along with stratigraphically trapped fans of slightly higher risk but larger scale. Some of these prospects will be targeted in the next drilling phase with the objective of adding to the discovered resources of Darwin and building a core development area.

“Discussions with a seismic contractor regarding the acquisition of additional 3D seismic are in progress and we plan to have a vessel in the Falklands at the start of 2013 to commence the survey,”said Borders & Southern in a statement.

This survey will focus on similar prospects to Darwin currently outside our existing 3D area. Whilst the final costs of the 2012 drilling programme will not be fully known until after the demobilisation of the rig later in the year, the Company can state that it is fully funded for the 3D seismic acquisition and processing, the reprocessing of the Company’s 2007 3D seismic data and all the technical studies that need to be undertaken on the samples collected from the two wells.

Given the encouraging results from the Darwin well, the Company will start planning the next drilling programme, which is likely to include both exploration and appraisal wells. The company has said that the the timing of drilling will be dependent on rig availability, but “realistically this will not occur before 2014“. The Company is currently exploring the best way to fund the next phase of the programme, including the possibility of now bringing in partners.

Borders & Southern Prepares for Darwin Discovery Appraisal (Falkland Islands)| Offshore Energy Today.

The Un-American Vision of Barack Obama – Thomas Sowell

Years, and sometimes decades, pass between my visits to movie theaters. But I drove 30 miles to see the movie 2016: Obama’s America, based on Dinesh D’Souza’s best-selling book, The Roots of Obama’s Rage. Where I live is so politically correct that such a movie would not even be mentioned, much less shown.

Every seat in the theater was filled, even though there had been an earlier showing that day, and more showings were scheduled for the rest of the afternoon and evening. I had to sit on a staircase in the balcony, but it was worth it.

The audience was riveted. You could barely hear a sound from them, or detect a movement, and you certainly could not smell popcorn. Yet the movie had no bombast, no violence, no sex, and no spectacular visual effects.

The documentary itself was fascinating, as D’Souza presented the story of Barack Obama’s life and view of the world in a very conversational sort of way, illustrating it with visits to people and places around the world that played a role in the way Obama’s ideas and beliefs evolved.

It was refreshing to see how addressing adults as adults could be effective, in an age when so many parts of the media address the public as if they were children who need a constant whirlwind of sounds and movements to keep them interested.Dinesh D’Souza’s own perspective, as someone born in India who came to America and became an American, provided a special insight into the way people from the Third World often perceive or misperceive the United States and the Western world.

That Third World perspective is Obama’s perspective, D’Souza demonstrates in this documentary, as in his book — and it is a perspective that is very foreign to that of most Americans, which may be why some believe that Obama was born elsewhere.

D’Souza is convinced that the president was born in Hawaii, as Obama claims, and argues that it was not only Obama’s time living in Indonesia and his emotionally charged visits to his father’s home in Africa that have had a deep and impassioned effect on his thinking.

The story of Barack Obama, however, is not just the story of how one man came to be the way he is. It is a much larger story about how millions of Americans came to vote for, and some to idolize, a man whose fundamental beliefs and values are so different from their own.

For every person who sees Obama as somehow foreign, there are many others who see him as a mainstream American political figure — and an inspiring one.

This D’Souza attributes to Barack Obama’s great talents in rhetoric, and his ability to project an image that resonates with most Americans, however much that image may differ from, or even flatly contradict, the reality of Obama’s own ideological view of the world.

What is that ideological view?

The Third World, or anti-colonial, view is that the rich nations have gotten rich by taking wealth from the poor nations. It is part of a much larger vision, in which the rich in general have gotten rich by taking from the poor, whether in their own country or elsewhere.

Whatever its factual weaknesses, it is an emotionally powerful vision, to which many people have dedicated their lives and for which some have even risked their lives. Some of these people appear in this documentary, as they have appeared throughout the formative phases of Barack Obama’s life.

The Reverend Jeremiah Wright is just the most visible and vocal of a long line of people who played crucial roles in Obama’s evolution. When Wright thundered about how “white folks’ greed runs a world in need,” he captured the essence of the anti-colonial vision.

But many of the other mentors, allies, family members, and friends of Barack Obama over the years were of the same mind-set, as this documentary demonstrates.

More important, the movie 2016 demonstrates how so many of Obama’s actions as president of the United States, which D’Souza had predicted on the basis of his study of Obama’s background, are perfectly consistent with that ideology, however inconsistent they might be with the rhetoric that gained him the highest office in the land.

Thomas Sowell is a senior fellow at theHoover Institution. © 2012 Creators Syndicate, Inc.

The Un-American Vision of Barack Obama – Thomas Sowell – National Review Online.

Wood Mackenzie: East Africa’s Yet-to-Find Reserves Hold 95 tcf of Gas

Wood Mackenzie: East Africa’s Yet-to-Find Reserves Hold 95 tcf of Gas| Offshore Energy Today

Wood Mackenzie estimates that 100 trillion cubic feet (tcf) of gas has been discovered in Mozambique and Tanzania to date, ranking the Rovuma Basin as one of the most prolific conventional gas plays in the world.

However, there are significant technical and commercial challenges to be overcome in order to bring the gas to market by the end of this decade. These include: addressing issues around infrastructure, government capacity, financing and reaching a positive outcome to unitisation negotiations in Mozambique.

Recent discoveries and high profile M&A activity in Mozambique and Tanzania are attracting attention and Martin Kelly, Wood Mackenzie’s Head of Sub-Sahara Upstream Research, says the interest is justified: “100 tcf of gas has been discovered to date in East Africa and we estimate yet-to-find reserves could be as much as 80 tcf in Mozambique and 15 tcf in Tanzania. There is clearly plenty of gas to supply the likely commercialisation route of LNG – theoretically enough to support up to 16 LNG trains.

“The Rovuma basin is the most prolific in the region, and one of the hottest conventional gas plays in the world, with 85 tcf discovered so far. Globally in 2011, it yielded the third most hydrocarbons, and we expect it to top the list in 2012 if the first half of the year is anything to go by,” Kelly continues.

In neighbouring Tanzania, the targets are the northern extension of the Rovuma Basin and the Mafia Basin. Kelly says: “Tanzania has enjoyed considerable exploration success as well, but hasn’t discovered the same scale of reserves. The average discovery size is much smaller at around 2 tcf, compared to Mozambique which is over 7 tcf. Discoveries in Tanzania are also more spread out, so developing them will be more expensive than those in Mozambique because additional infrastructure will be required.”

One of the most immediate challenges for Mozambique, is the unitisation discussions which Wood Mackenzie understands have already begun. Kelly explains; “Of the 85 tcf of gas discovered to date in Mozambique, around half of it is thought to be one enormous field which is in communication across the block. Under Mozambican law, a unitisation agreement between the operating parties will be required.”

Although there is a risk that unitisation discussions could delay Final Investment Decision (FID) – the crucial last step before commercial development – and therefore LNG production, there are other discoveries which are wholly contained in Area 1 and Area 4 and therefore gas could come from these first.

Giles Farrer, Senior LNG research analyst for Wood Mackenzie comments: “Many challenges will need to be overcome prior to LNG project sanction. The region’s remoteness and lack of development present serious technical obstacles. There is virtually no existing skilled workforce and both Mozambique and Tanzania will have to build and establish deepwater ports capable of servicing the needs of the petroleum sector. On the commercial side, there is the question of government capacity – whether there is sufficient impetus and capability within the governments and national oil companies to advance the huge legislative, bureaucratic, customs and financial challenges that such a development would bring.

“The major outstanding milestone for Mozambique is the conclusion of a commercial framework agreement, which is in the process of being negotiated. It will determine how the LNG facility or facilities will be structured for the purpose of taxation and whether the Joint Ventures (JVs) will co-operate in the construction of a single, mega LNG facility, or pursue individual developments. One crucial advantage that the Tanzanian projects enjoy is that they have already negotiated commercial terms, prior to the announcement of their projects.”

Farrer continues: “Lastly there is the question of finance, we estimate that a two train greenfield development in the region is going to cost at least US$25 billion, and for some of the players involved financing their share of this sort of development cost will certainly prove challenging and could delay development.”

The joint analysis by Wood Mackenzie’s upstream and LNG research teams stresses that these challenges are not insurmountable. “They have been encountered and overcome in several countries before. The risk is that delays could lengthen development schedules and add to costs,” Farrer says in closing.

Wood Mackenzie: East Africa’s Yet-to-Find Reserves Hold 95 tcf of Gas| Offshore Energy Today.

Rialto Energy: Encouraging Oil Shows at Gazelle-P4 Well (Ivory Coast)

Rialto Energy: Encouraging Oil Shows at Gazelle-P4 Well (Ivory Coast)| Offshore Energy Today

Rialto Energy Limited, an international exploration and production company has drilled the Gazelle-P4 Development Well, offshore Côte D’Ivoire to the the planned final depth of 3522m MDRT (2720m TVDSS).

This has taken 28 days from spud to TD. According to the company’s report the well has encountered encouraging oil and gas shows through the Upper Cenomanian and gas shows through the Lower Cenomanian reservoir intervals.  These will now be evaluated by wire line logging, fluid and pressure sampling to properly evaluate the shows, and identify potential test intervals.

Rialto will now release the Transocean GSF Monitor jack-up rig to focus on the FEED for the Gazelle field development and to further refine exploration options for its Cote d’Ivoire acreage.

Rialto is the Operator (85% working interest) of the CI-202 block offshore Côte d’Ivoire. The CI-202 block contains the Gazelle Field, which is the current focus of development, with first production expected by early 2014.

A Competent Person’s Report completed in September 2011 by RPS Energy Services in relation to CI-202 certified Total Mean Contingent Resources of 50 MMbbls of liquids and 396 Bcf of gas, in addition to Total Mean Prospective Resources of 511 MMbbls of liquids and 1,785 Bcf of gas.

Rialto Energy: Encouraging Oil Shows at Gazelle-P4 Well (Ivory Coast)| Offshore Energy Today.

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