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.

Cyprus: Ocean Rig Receives LoA for its UDW Drillship

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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.

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ReCap: Worldwide Field Development News Dec 23 – Dec 29, 2011

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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.

Mediterranean
Noble Finds Gas Pay in Cyprus
Dec 28, 2011 – Noble Energy has made a natural gas discovery at the Cyprus Block 12 prospect, offshore the Republic of Cyprus. The Cyprus A-1 well encountered about 310 feet (94 meters) of net natural gas pay in multiple high-quality Miocene sand intervals. The well reached a depth of 19,225 feet (5,860 meters) in a water depth of 5,540 feet (1,689 meters). Results from drilling, formation logs and initial evaluation work indicate an estimated gross resource range of 5 to 8 Tcf, with a gross mean of 7 Tcf. Noble plans to appraise the find. Noble Energy operates the discovery with a 70 percent working interest; while Delek Drilling and Avner Oil Exploration each hold 15 percent.
Project Details: Cyprus (Aphrodite)
Europe – North Sea
Aker Solutions to Supply Subsea Equipment for Svalin Development
Dec 29, 2011 – Statoil awarded Aker Solutions a contract to engineer, procure and construct a subsea production system for the Svalin development in the Norwegian sector of the North Sea. The scope of work includes two subsea trees, one four-slot integrated template structure with process distribution manifold, subsea and topside production control systems, wellhead systems and remote connection systems. Final equipment deliveries are slated for 3Q 2013. Svalin is a fast-track oil field project situated in a water depth of 394 feet (120 meters).
Tendeka Secures Sand Control Frame Agreement for Troll field
Dec 28, 2011 – Statoil has granted Tendeka a major frame agreement for the provision of sand screens and inflow control devices and services for use in the Troll field. The contract is for an initial three-year period with a further two optional extensions, each of two years. Tendeka’s scope of work includes the provision of sand screens with associated inflow control technology and services for deployment in the field. Troll produces 400,000 barrels a day from three platforms northwest of Bergen. Troll, a natural gas and oil field, lies in the northern part of the Norwegian sector of the North Sea, about 40 miles (65 kilometers) west of Kollsnes, near Bergen. Statoil, holding a 30.59 percent, operates the field; Petoro holds 56 percent; A/S Norske Shell holds 8.1 percent; ConocoPhillips holds 1.62 percent; and Total holds 3.69 percent.
Project Details: Troll Area
EnCore Reaches TD in Tudor Rose
Dec 28, 2011 – EnCore Oil has encountered an oil column in the Tudor Rose well within the targeted Beauly formation and oil water contact at 3,236 feet (986 meters) total vertical depth. The operator gathered wireline samplings and conducted pressure testing of the hydrocarbon-bearing zone. Initial wellsite analysis of the samples suggest a viscosity of 600 to 800 Centipoise, which is likely too viscous to be commercially exploitable. EnCore says further onshore analysis is required before the provisional evaluation can be confirmed. The well will be plugged and abandoned. The Tudor Rose well is located on Block 14/30a in the UK sector of the North Sea. EnCore operates the block with a 40 percent interest; while Nautical Petroleum holds 20 percent; Endeavour holds 20 percent; and EnQuest holds 20 percent.
Project Details: Tudor Rose
Endeavour Acquires UK Producing Assets
Dec 27, 2011 – Endeavour has entered into a purchase and sale agreement to acquire ConocoPhillips’ interest in three producing UK oil fields in the central North Sea for $330 million. Endeavour will increase their current ownership interest in the Alba field, a late Eocene reservoir that has been producing since 1994. Additionally, the company will add ownership interests in the MacCulloch and Nicol fields. Endeavour’s aggregate working interest in the Alba field will be 25.68 percent following the closing of the acquisition. The company anticipates assuming operatorship of the MacCulloch field, subject to final partner agreement.
Project Details: Alba
Antrim Sidetracks Erne Discovery
Dec 27, 2011 – Antrim Energy announced that the Erne discovery well sidetrack, 21/29d-11Z, encountered about 24 feet (7 meters) of net oil pay and 14 feet (4 meters) of net gas pay in a high-quality sandstone reservoir. Initial interpretation is that the well has penetrated a separate accumulation from that in the 21/29d-11 discovery well, but further work is necessary to confirm this, stated the operator. The 21/29d-11Z well will now be suspended for potential future re-entry and use in the development of the Erne discovery. The 21/29d-11Z well was designed to appraise the Erne oil discovery in the Eocene Tay formation, and was drilled up-dip of the discovery location to a total depth of 5,124 feet (1,562 meters). Erne is located in Block 21/29d in the UK sector of the North Sea. Antrim Energy operates Block 21/29d.
Project Details: Erne
BG Discovers Oil in PL 373 S
Dec 27, 2011 – BG Norge has made an oil discovery in the North Sea in Production License 373 S. The wells, 34/3-3 S and 34/3-3 A, proved oil in early Jurassic sandstone. The objective of the well 34/3-3 S was to prove hydrocarbons in the Cook formation of the early Jurassic age in the Jordbaer Vest prospect. Oil was proven in the upper part of the Cook formation with very good reservoir quality. The objective of the 34/3-3 A sidetrack was to delineate the 34/3-3 S discovery by confirming the extent of the reservoir rocks, and also proving oil in the lower part of the Cook formation. The well proved oil both in the upper and lower Cook formation with very good reservoir quality. Extensive data acquisition programs have been carried out in both wells. Preliminary estimates place the size of the discovery between 1.5 and 4 million standard cubic meters of oil equivalents. The licensees will consider developing the discovery with the Knarr development, which was approved in June 2011.
Project Details: Knarr (Jordbaer)
Statoil Considers Skrugard Development in the Barents Sea
Dec 27, 2011 – Statoil and partners are considering developing the Skrugard discovery in the Barents Sea by a floating production unit with additional capacity to process and transport from other prospects in the vicinity. Statoil says a feasibility study has identified a technical and commercial solution for Skugard, resulting in the rapid development of the discovery. The production unit will have separate oil and storage and offloading capability with a production capacity of 95,000 bopd. The field development calls for 14 oil producers and pressure support will be provided via injection wells for water and gas. Skugard is estimated to hold around 250 MMbbl of recoverable oil equivalents, with a considerable upside potential. Statoil plans to drill an exploration well on Havis, a prospect located roughly five kilometers from the Skrugard discovery, but within the same license. After drilling the Havis well, the rig will drill an appraisal well on Skrugard. Skrugard is located in Production License 532, which Statoil operates, holding a 50 percent interest. Partners in the license include Eni Norge (30 percent) and Petoro (20 percent).
Project Details: Skrugard
Australia
BHP Billiton Confirms Rig Slot for Tallaganda-1 Well
Dec 28, 2011 – The WA-351-P joint venture has approved the budget to drill the Tallaganda-1 well in the block. The operator, BHP Billiton, has secured the Atwood Eagle semisub to drill the well and expects to commence well operations at Tallaganda-1 in the first quarter of 2012. The Tallaganda-1 prospect straddles both the WA-351-P and WA-335-P permits and will test the gas potential of sandstones in the prolific Triassic age, Mungaroo formation, in a well defined horst block.
Project Details: Tallaganda
Africa – West
Makouala Marine-1 Fails to Hit Commercial Pay
Dec 28, 2011 – Lundin Petroleum says the Makouala Marine-1 well has encountered limited oil-bearing pay in the targeted Sendji formation reservoirs. The operator will now plug and abandon the well. This well was the second of a two-to-three well campaign in the area. Makouala Marine-1 is located in Block Marine XIV, offshore Congo. Soco International operates the block.
Project Details: Makouala Marine
Asia – SouthEast
Otto Executes Final Farm-in Agreements for SC 55
Dec 28, 2011 – Otto Energy has executed the final farm-in agreements supporting BHP Billiton’s earlier decision to enter into Service Contract 55, offshore Palawan, Philippines. Once the execution is finalized, Otto will receive a final payment relating to back costs associated with SC55 of US $7.3 million, of which $5 million has already been received. Otto will submit the required assignment documents to the Philippine Department of Energy for their approval of the transfer of participating interest to BHP Billiton. Upon completion of the farm-in, Otto’s working interest in SC 55 will reduce to 33.18 percent.
Cairn to Enter Second Phase of Exploration
Dec 27, 2011 – Cairn Lanka Limited has successfully completed the first phase of the exploration campaign in Sri Lanka Block SL-2007-01-001. The exploration program involved the acquisition, processing and interpretation of 433,175 acres (1,753 square kilometers) of 3D seismic data and a three-well deepwater drilling program. The seismic program exceeded the first phase commitment by 20 percent, and the drilling program exceeded the drilling depth commitment by 50 percent. Cairn said this program resulted in two successive gas and condensate discoveries; the CLPL-Dorado-91H/1z well and, the CLPL-Barracuda-1G/1 well. The third well, CLPL-Dorado North 1-82K/1 was plugged and abandoned as a dry hole. This drilling program has found an established working petroleum system in the frontier Mannar Basin. Cairn Lanka intends to enter the second phase of exploration.

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Noble Energy Discovers Significant Gas Discovery Offshore Cyprus

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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.

Source

Cyprus: Deep Sea Supply Provides October Fleet Status Update

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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.

Deep Sea Supply ship owner and operator of a substantial number of Anchor Handling Tug Supply vessels (AHTS vessels) and Platform Supply Vessel (PSV) with extensive newbuild program.

Source

Cyprus Oil and Gas

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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

Original Article

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