Daily Archives: May 12, 2013

Worldwide Field Development News May 4 – May 10, 2013

This week the SubseaIQ team added 7 new projects and updated 29 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.

S. America – Brazil

BP to Sell Polvo Interest to HRT

May 9, 2013 – BP announced its intention to sell its 60% operated interest in the Polvo field to HRT Oil & Gas for $135 million in cash. Polvo is located in the southern part of the Campos Basin in block BM-C-8. Oil from the field is produced through a fixed drilling and production platform tied to an FPSO. The transaction is subject to regulatory approvals, but BP expects the deal to close in the second half of 2013. If approved, HRT will make the transition from a pure exploration company to a small oil producer. Currently, the field is producing at a rate of 13,000 bopd.

Project Details: Polvo

Petronas Gains Brazilian Interests Through OGX Agreement

May 8, 2013 – Brazilian exploration and production company OGX reached an agreement to sell 40% of its interest in Campos Basin blocks BM-C-39 and BM-C-40 to Petronas for a reported $850 million with an effective date of May 1. Based on the agreement, Petronas will acquire an interest in the Tubarao Martelo oil field with its 285 million barrels of recoverable resources along with the Inga and Pero prospects which are all located within the two blocks. Production from Tubarao Martelo is expected to begin by the end of the year. The transaction is subject to approval by Brazil’s National Petroleum, Natural Gas and Biofuels Agency and the Brazilian Council for Economic Defense.

Project Details: Tubarao Martelo (Waikiki)

Karoon Discovers Oil in Bilby Prospect

May 7, 2013 – Karoon announced its second oil discovery of the current 3-well exploration program in the Santos Basin. The company announced a 656-foot gross oil pay made up of interbedded sand and shale intervals encountered while drilling the Bilby-1 well in block S-M-1166. Wireline testing of the pay zone is currently underway. Once complete, drilling will continue to the planned depth of 15,003 feet where Karoon hopes to find hydrocarbon-bearing Santonian aged reserovoirs. Completion of the Bilby well will mark the end of the exploration program.

Project Details: Bilby

Asia – SouthEast

Nido and PNOC Prepare for Baragatan Wildcat

May 8, 2013 – Nido Petroleum and its partner, Philippine National Oil Company (PNOC), have approved a work plan and budget to spud a wildcat on the Baragatan prospect in SC 63 offshore Palawan Island. Nido will serve as technical operator while drilling operations are underway. The well will be drilled when a suitable jackup becomes available and all regulatory approvals are secured. Bragatan is estimated to hold mean risked recoverable oil volumes of 115 million barrels with an upside of 166 million barrels.

Project Details: Baragatan

Ensco Jackup to Drill Cua Lo Prospect off Vietnam

May 7, 2013 – The Ensco 107 (400′ ILC) is expected to drill an exploration well targeting the Cua Lo prospect in Block 105 off Vietnam in June 2013. Participants in the block include Eni (50%) serving as operator, Neon Energy (25%) and KrisEnergy (25%). Interpretation of 3D seismic over the area is ongoing and the joint venture is attempting to finalize the drilling location to maximize the exposure of multiple potential pay zones. A Prospective Resource Assessment of the block has confirmed best estimate gross unrisked prospective recoverable resources of 3.9 Tcf.

Project Details: Cua Lo

Bentara Appraisal Continues in Balai Cluster

May 6, 2013 – ROC Oil advised that drilling of the Bentara-3 well in the Balai Cluster RSC has commenced. The well is the fifth and final well in the Balia Cluster pre-development/appraisal drilling program. Once the well is complete the joint venture partners will review the data and determine the economic viability of the fields. If the decision is made to move forward, a formal field development plan will be submitted.

Project Details: Balai Cluster

N. America – US GOM

W&T Continues Main Pass 108 Development

May 10, 2013 – Total depth has been reached in the B-1 well in Main Pass 108 block in the US Gulf of Mexico. The well, drilled by the Hercules 202 (200′ MC), was designed to target a potential 1.8 MMboe in the Tex W-6 Sand. It is possible that B-1 will be completed and on production by July. At that point, the Hercules 202 will skid over and spud the B-2 well which is targeting similar reserves. If successful, the B-2 well could be on line by 4Q 2013.

Project Details: Main Pass 108

ExxonMobil and Statoil to Proceed with Julia Deepwater Development

May 8, 2013 – ExxonMobil and its partner, Statoil, have agreed to proceed with development of the Julia oil field in the US Gulf of Mexico. Julia was discovered in 2007 and is estimated to hold almost 6 BBbbls of oil. The $4 billion project is expected to start producing in 2016. Phase 1 of the development will be designed to produce 34,000 bopd from 6 subsea wells tied back to the Jack/St. Malo production facility. A development drilling program is planned to be kicked-off in 2014 in waters ranging from 4,000 to 8,700 feet. ExxonMobil, the field operator, and Statoil each hold a 50% stake in the field.

Project Details: Jack/St. Malo

Shell Makes Stones Investment Decision

May 8, 2013 – Royal Dutch Shell made its final investment decision on the Stones ultra-deepwater oil and gas development project in the US Gulf of Mexico. At 9,500 feet deep, Stones is expected to host the world’s deepest production facility. Announcement of the decision sets in motion the construction of a floating, production, storage and offloading (FPSO) vessel along with all of the associated subsea infrastructure. Initially, two developments well will be tied back to the FPSO with six additional wells to follow at a later date. Peak production for the first phase is expected to peak at 50,000 boed. The Stones reservoir is estimated to hold more than 2 BBboe.

Project Details: Stones

Marathon Development Continues off Louisiana Coast

May 6, 2013 – A fifth development well has been spud on the Apache-operated Marathon gas and condensate field in the Atchafalaya Bay off the coast of Louisiana. Marathon-4 is being drilled by the Parker 76-B (inland barge) in 8 feet of water and is targeting the Marathon formation at roughly 18,700 feet total depth. It is estimated to take 4-months to drill, complete and tie-in the well to existing production facilities. The Marathon field is operated by Apache who maintains a 48.75% interest. Petsec Energy holds 8% while private investors make up the remaining 43.25%.

N. America – Canadian Atlantic

Tecnhip Wins South White Rose Extension Contracts

May 8, 2013 – Husky Energy, operator of the White Rose field in Canada’s Jeanne d’Arc Basin, awarded a pair of development contracts associated with the South White Rose Extension project to Technip. The first contract is set to be carried out in 2013 and includes the supply and installation of gas injection flowlines, umbilicals and various subsea structures. Execution of the second contract will commence in 2014 and will involve the supply and installation of flowlines and subsea structures to support oil production and water injection. Husky has started a development drilling program and anticipates production start-up in 2014.

Project Details: White Rose

Europe – North Sea

Cairn Farms Into Spanish Point and Burren

May 8, 2013 – Cairn Energy announced it will farm-in to licenses FEL 2/04, FEL 4/08 and six adjacent licensing option blocks in the Porcupine Basin west of Ireland. Included in FEL 2/04 are the Spanish Point gas condensate discovery and the Burren oil discovery. The farm-in is subject to regulatory and partner approval. If approved, Cairn becomes the operator and acquires a 38% working interest by paying a pro-rated share of back costs for a consideration of $4.1 million and 63.33% of exploration and appraisal costs up to two wells, subject to a cap. An appraisal of Spanish Point is expected to be drilled in 2Q 2014.

Project Details: Spanish Point

Additional Production Well to be Drilled at Ettrick

May 7, 2013 – The UK Department of Energy and Climate Change (DECC) approved an addendum to the Ettrick Field Development Plan (FPD) that was submitted in November 2012. Partners in the field include operator Nexen Petroleum (79.73%), Dana Petroleum (12%) and Atlantic Petroleum (8.27%). Ettrick was discovered in 1981 and began producing in 2009. Approval of the addendum will allow an infill production well to be drilled near the crest of the field. The well should be tied into the Aoka Mizu FPSO near the end of 3Q 2013.

Project Details: Ettrick

Johan Sverdrup Appraisals Continue

May 7, 2013 – Appraisal well 16/2-21 has been spud by the Bredford Dolphin (mid-water semisub) in the Johan Sverdrup discovery on the Norwegian continental shelf. The central part of the discovery is being tested in an effort to establish the depth, quality and thickness of the Jurassic reservoir sequences. Information obtained from this well will aid in developing a drainage and development strategy which is expected to be announced at the end of the year. Well 16/2-21 is the first in a three-well appraisal campaign that will be carried out through 2013.

Project Details: Johan Sverdrup

Luno II Tests at 2K BOPD

May 7, 2013 – Lundin Petroleum reports the previously announced production test of the Luno II discovery well is complete. Well 16/4-6S was drilled by the Bredford Dolphin (mid-water semisub) and encountered 131 gross feet of oil pay. A flow rate of more than 2,000 bopd was achieved through a 48/64 inch choke with a gas to oil ration of 1,100 scf/bbl. Lundin estimates the Luno II structure to contain gross contingent resources of 25 to 120 MMboe along with 10 to 40 MMboe of prospective resources for he Luno II North segment.

Project Details: Luno II

S. America – Other & Carib.

Shell Spuds Third Well off French Guiana

May 8, 2013 – Shell’s exploration campaign off the coast of French Guiana continues with the recent spudding of well GM-ES-4 on the Cebus prospect in the Guyane Maritime Permit. Cebus is the third well in the four-well program. The well will test the hydrocarbon potential of a different fan system than that of the two previous wells that failed to find pay.

Obama Breeds Rebellion Among the States

By Alan Caruba

The resistance to Obamacare is writing a new chapter in U.S. history. It may well become the most unpopular law since Prohibition became an Amendment to the Constitution in 1919. By 1933, another Amendment repealed it.

Obamacare passed by a straight Democratic party vote on Christmas Eve in 2009. No Republican voted for it and, as one poll recently revealed, a third of Americans are still unaware it is the law of the land. A divided Supreme Court gave it a pass, calling it a tax, but it is a profoundly unconstitutional law insofar as the federal government may not pass a law that requires Americans to purchase something and to fine them if they do not. It is also playing havoc with the economy, delaying recovery as it deters hiring and encourages firing.

Nonetheless, a number of states have gone on record seeking to nullify its enforcement and some are doing the same as regards gun control. Arizona became famous when it passed its own immigration law in response to the federal government’s failure to protect its border with Mexico. The proposed “Gang of Eight” immigration law is facing stiff opposition for its various provisions, most of which do not address the central issue of security on the southern border.

How out of touch is the President? He went to Mexico and blamed the violence arising from its drug cartels on America, saying “Most of the guns used here to commit violence came from America.” He made no mention of the scandalous “Fast and Furious” scheme in which the ATF actually ran guns into Mexico, claiming they would track them. It took an executive order to throw a blanket of silence over it and a compliant media to ignore that scandal.

It is, however, Obamacare that poses the greatest threat to the nation, intruding on the patient-doctor relationship, robbing billions from Medicare to pay for it, requiring states to fund more Medicaid when many are strapped to meet other needs, and putting 16% of the nation’s economy under federal control.

A total of twenty-seven states have filed suit against Obamacare. Two federal judges have upheld its individual mandate to purchase health insurance and two others have ruled that it is unconstitutional.

Twelve states have introduced versions of the Federal Health Care Nullification Act that was drafted by the Tenth Amendment Center. They include Texas, Montana, Wyoming, Oregon, Alabama, and Maine. All declare that Obamacare is “hereby declared to be invalid, shall not be recognized, is specifically rejected, and shall be considered null and void and of no effect.”

In South Carolina, on May 1st, the state House passed a bill that declares the bill null and void and goes a step further, criminalizing its implementation. Earlier Governor Nikki Haley, in her state of the state address, said that South Carolina does not want and cannot afford Obamacare, saying of the President’s namesake, “not now, not ever.”

The following day, Kansas Governor Sam Brownback sent a letter in response to Attorney General Eric Holder’s opposition to its Second Amendment Protection Act, declaring it unconstitutional; essentially tell him to piss off. “The people of Kansas,” said the Governor, “have clearly expressed their sovereign will.” The same day, Missouri passed a comparable law protecting the Second Amendment.

Not since the years leading up to the Civil War was kicked off on December 20, 1860 when South Carolina voted for secession, has there been such open resistance to the mandates of the federal government by the states on a range of issues. Earlier, in 1832, President Andrew Jackson had threatened to send troops to South Carolina to enforce federal laws.

Nullification, however, will not succeed as a means to rid the nation of Obamacare. To Obama’s dismay, his gun control law failed in Congress when even members of his party joined in voting against it. The fate of immigration reform remains unknown but it will come to a vote soon enough.

The reason why nullification will fail is embedded in the Constitution. The Supremacy Clause states “This Constitution, and the Laws of the United States which shall be made in Pursuance thereof; and all Treaties made, or which shall be made, under the Authority of the United States, shall be the supreme Law of the land; and the judges in every State shall be found thereby, any Thing in the Constitution or Laws of any State to the Contrary, notwithstanding.”

That has not discouraged the legislatures of many states from expressing their opposition to Obamacare, intrusions on the Second Amendment right of citizens to bear arms, and to demand the federal government enforce the laws regarding its borders.

There isn’t a constitutional scholar that does not support the Supremacy Clause. The Heritage Foundation has a policy paper on the subject of nullification that says “there is no clause or implied power in either the national or the various state constitutions that enables states to veto federal laws unilaterally.”

The states, though, can express their displeasure and their opposition to federal laws and that is what lies at the heart of the spate of nullification laws that have been passed. As sovereign republics, the states can and do express themselves and, through their elected Senators and Representatives, have the power in concert to repeal obnoxious and injurious federal laws.

That will be the fate of Obamacare.

© Alan Caruba, 2013

Posted by Alan Caruba at 3:01 PM

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