Category Archives: Cyprus
Cyprus, officially the Republic of Cyprus, is a Eurasian island country in the Eastern Mediterranean, east of Greece, south of Turkey, west of Syria and north of Egypt. It is the third largest island in the Mediterranean Sea.
Ocean Rig UDW Inc., a global provider of offshore deepwater drilling services, headquartered in Cyprus, today announced that it has received a Letter of Award for its ultra deepwater drillship “Ocean Rig Olympia”, from a major oil company.
The Letter of Award is for a three- year contract for drilling offshore West Africa, with an estimated backlog of approximately $652 million. The Letter of Award is subject to completion of definitive documentation and receipt of regulatory approvals. The contract is expected to commence in direct continuation of the Ocean Rig Olympia’s existing contract in West Africa. The customer would have the option to extend the contract for two periods of one year each, with the first option exercisable within one year from the commencement date under the drilling contract, and the second option exercisable within one year after the date of exercise of the first option.
With this latest fixture, Ocean Rig no longer has any rigs available in 2012.
- Ensco in $645m drillship buy (mb50.wordpress.com)
- South Korea: SHI to Build Seventh UDW Drillship for Pacific Drilling (mb50.wordpress.com)
- South Korea: Seadrill Confirms Samsung Drillships Contracts (mb50.wordpress.com)
- ENSCO Orders Drillship with Retractable Thrusters!? (mb50.wordpress.com)
- Pacific Scirocco Drillship Begins Work in Nigeria (mb50.wordpress.com)
- Ophir Begins with Drilling Operations Offshore Tanzania (mb50.wordpress.com)
- USA: Vantage Drilling Reports Record Revenues (mb50.wordpress.com)
- Deepsea Metro II Drillship Arrives in South Africa (mb50.wordpress.com)
|This week the SubseaIQ team added 2 new projects and updated 11 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.|
- Noble Energy Discovers Significant Gas Discovery Offshore Cyprus (mb50.wordpress.com)
- UK: Talisman Selects Helix Well Ops for Subsea Works on Its Assets (mb50.wordpress.com)
- Shell Awards Subsea 7 with Two Gulf of Mexico Contracts (mb50.wordpress.com)
- Worldwide: Project Field Development News (mb50.wordpress.com)
- USA: Shell Sets World Record for Deepest Subsea O&G Well at Perdido Development (mb50.wordpress.com)
Noble Energy, Inc. announced today a natural gas discovery at the Cyprus Block 12 prospect, offshore the Republic of Cyprus. The Cyprus A-1 well encountered approximately 310 feet of net natural gas pay in multiple high-quality Miocene sand intervals.
The discovery well was drilled to a depth of 19,225 feet in water depth of about 5,540 feet. Results from drilling, formation logs and initial evaluation work indicate an estimated gross resource range(1) of 5 to 8 trillion cubic feet (Tcf), with a gross mean of 7 Tcf. The Cyprus Block 12 field covers approximately 40 square miles and will require additional appraisal drilling prior to development.
Charles D. Davidson, Noble Energy’s Chairman and CEO, said, “We are excited to announce the discovery of significant natural gas resources in Cyprus on Block 12. This is the fifth consecutive natural gas field discovery for Noble Energy and our partners in the greater Levant basin, with total gross mean resources for the five discoveries currently estimated to be over 33 Tcf. This latest discovery in Cyprus further highlights the quality and significance of this world-class basin.”
Davidson went on to say, “We would like to thank the Government of Cyprus for their productive cooperation and support in achieving an important outcome for the people of Cyprus and Noble Energy. We look forward to working closely with the Government of Cyprus to develop this discovery in a manner that maximizes value for all stakeholders.”
Noble Energy operates the well with a 70 percent working interest. Delek Drilling and Avner Oil Exploration will each have 15 percent, subject to final approval by the Government of Cyprus.
- Noble Energy Announces Significant Natural Gas Discovery Offshore Republic of Cyprus (prnewswire.com)
- Cyprus: Offshore gas find gets investor interest (sfgate.com)
- Cyprus: Offshore gas find gets investor interest (seattlepi.com)
- Cyprus to Press Ahead with Offshore Drilling Despite Turkish Objection (mb50.wordpress.com)
- Cyprus Oil and Gas (mb50.wordpress.com)
- Cyprus’ FM briefs US officials on gas development (mysanantonio.com)
In October 2011 Deep Sea Supply`s AHTS fleet (all 12 AHTS Vessels) had an average gross income of approx. USD 19,600 per ship per day compared to USD 15,800 in September.
The PSV fleet (all 8 PSVs) had an average gross income of approx. USD 20,000 per ship per day compared to USD 20,200 in September.
The AHTS Sea Tiger has been approx 50% off hire in October due to scheduled maintenance program.
Sea Vixen, which was delivered from the yard in October, is not included in the figures.
- Norway: STX OSV to Build 4 PSVs for Island Offshore (mb50.wordpress.com)
- Westshore Shipbrokers: A Closer Look at Vessel Scrapping and Attrition in the OSV Market (mb50.wordpress.com)
- Norway: Bourbon Offshore Takes Delivery of Ulstein PX105 Design PSV (mb50.wordpress.com)
- India: Cochin Shipyard Names Two Platform Supply Vessels (mb50.wordpress.com)
- Westshore Shipbrokers: Ultra-Deepwater, What is Next for the Shipowner? (Brazil) (mb50.wordpress.com)
- USA: Wartsila Wins LNG Propulsion Equipment Contract for Offshore Vessels (mb50.wordpress.com)
By Michael J. Economides
Posted on Oct. 11, 2011
The January 2011 announced discovery of some of the largest offshore natural gas reservoirs in the world, 90 kilometers west of Haifa and not much further than that from Cyprus has created some understandable excitement among Cypriots. The potential for large hydrocarbon accumulations in the same Messinian geologic formation, underlain Cypriot economic zone waters, should now be considered as high possibility. Seismic evidence makes the Cypriot block, named Aphrodite, currently being drilled by Houston’s Noble Energy, to be at least as good and perhaps as much as 50% better than Israel’s Leviathan field. The latter has been confirmed as holding at least 17 Tcf of natural gas.
It is a dream of so many countries to find oil and gas deposits: easy riches the notion goes, a chance to even the field versus big and powerful nations. However, in spite of the occasional jubilation in some parts of the Cypriot and Greek press and thinly disguised wishful thinking by government officials and politicians a dose of reality is in order.
First, this is undeniably good news. The discovery in Israeli-controlled waters is a clear and positive sign. But what are often missed in the debate are two other important elements that turn the good news into not so good and even bad if countries are unprepared or inexperienced.
There is a big disparity between oil and gas in place in a geological structure and having those resources labeled as recoverable reserves. The latter implies technical and economic attractiveness. Hydrocarbons buried under 2,000 meters of water and then another 5,000 meter beneath the bottom of the sea are far more attractive when the price of oil approaches $150 per barrel as it was in July 2008.
Natural gas is even more cumbersome because it cannot be handled readily as oil can and, therefore, its exploitation is even more tenuous. To understand this issue one needs to realize that in the deep waters of the Gulf of Mexico and of more recently emerging offshore Brazil, while oil production has been prolific, virtually no natural gas deposits have been targeted. Gas associated with oil has been produced but in most cases it is used for re-injection to augment oil production and not for sales.
The second issue and one that is likely to prove challenging is that a pipeline from the area of discovery to e.g., Europe is highly unlikely because of the water depth and the underwater terrain. This means that the transportation of gas will have to employ conversion into liquid natural gas (LNG) and, in early time, perhaps compressed natural gas (CNG) transportation.
There is almost a sadistic irony that natural gas of the size being contemplated can be so close and yet so far if the right decisions and the right knowledge are not evident. The size of the resource would require tens of billions of euros. The cost will involve the field development with very expensive wells and facilities and, especially, if LNG will be deployed. In all cases it will take huge companies to do it. Nobody should have the fantasy that the state should or could do it.
There are also plenty of examples from afar to the neighborhood of the difficulty to match local resources with local needs. Trinidad in the Caribbean is a major source of LNG for the US but huge parts of the island have no access to gas. Egypt, a major new player in LNG is faced with increasing local discontent. Cairo and its almost 30 million inhabitants have no gas. If Cyprus wants to use natural gas for its electricity a very viable option would be to buy relatively cheap CNG from Israel.
Greece now gearing up for its own exploration program should take an intense interest in the Cypriot experience and learn from it. For Cyprus the tantalizing and difficult dilemma will emerge after all that gas is proven. The geopolitical re-alignment in Eastern Mediterranean will be a yet another issue and the subject of a forthcoming editorial
- Cyprus to Press Ahead with Offshore Drilling Despite Turkish Objection (mb50.wordpress.com)
- Turkey And Cyprus – Continued Scuffle Over Mediterranean Oil Rights (gcaptain.com)
- Turkish Ship Explores Off Southern Cyprus (online.wsj.com)