Category Archives: GoM

Worldwide Field Development News May 3 – May 9, 2014

This week the SubseaIQ team added 6 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.

Africa – West
Cajun Express Drilling FAN-1 and SNE-1 Top Holes Offshore Senegal
May 8, 2014 – Top hole drilling at the Cairn-operated FAN-1 well offshore Senegal has been completed and the Cajun Express (UDW semisub) has moved to spud the SNE-1 top hole. Once the top hole is complete, the rig will move back to FAN-1 and drill the well total depth. Both wells are located in the Sangomar Offshore license and are being drilled to test the North Fan and Lupalupa prospects respectively. Cairn operates the license with 40% interest. Its partners include ConocoPhillips (35%), FAR (15%) and Petrosen (10%).
Project Details: North Fan
CAMAC Ready to Kick-Off Oyo Development Activities
May 8, 2014 – CAMAC Energy reports the arrival of the Energy Searcher (mid-water drillship) in Nigerian waters. After taking on personnel, equipment and supplies, the rig will sail to the Oyo field in OML 120 to begin a development drilling program starting with the spud of Oyo-8. Upon the completion and tie-in of Oyo-8, the rig will relocate within the field to re-enter and tie-in Oyo-7. Both wells are expected to be producing at a rate of 14,000 bopd by November. Additionally, the company says the rig could drill one or more high-impact exploration wells in OML 120 and OML 121.
Project Details: Oyo
N. America – US GOM
Apache Divests Lucius, Heidelberg and Other GOM Interests
May 8, 2014 – Apache’s U.S. Gulf of Mexico subsidiary elected to sell off its minority interest in the Lucius and Heidelberg developments to a subsidiary of Freeport-McMoRan Copper & Gold Inc. for $1.4 billion. The deal also includes 11 primary term deepwater exploration blocks. Apache combined its deepwater and shelf technical teams in an effort to focus on subsalt and exploration opportunities in water less than 1,000 feet deep. Apache is divesting an 11.7% interest in Lucius and a 12.5% interest in Heidelberg. Its interest in the 11 primary term blocks range from 16.67% to 60%. The transaction is subject to customary closing conditions and is expected to close by June 30. None of Apache’s producing operations are involved in the sale.
Project Details: Lucius
Maersk Developer Spuds Martin in Mississippi Canyon 718
May 8, 2014 – Exploratory drilling is underway at Statoil’s Martin prospect in the U.S. Gulf of Mexico. Martin is located in 2,916 feet of water in Mississippi Canyon Block 718. Statoil acquired the block for $157.1 million in October 2012 which was the highest bid received during the Central Gulf of Mexico Lease Sale 216/222. The company considers Martin to be one of the top components of its global portfolio; it took only 20 months from acquisition of the acreage to advance the prospect to drillable status. Well #1 is expected to take around 150 days to complete and is the first of 4 possible wells that will be drilled in the area. Statoil, the sole participant in the well, contracted the Maersk Developer (UDW semisub) to carry out drilling operations.
Project Details: Martin (GOM)
Mediterranean
Kosmos Comes Up Dry with First Well Offshore Morocco
May 8, 2014 – Kosmos Energy failed to find commercial quantities of hydrocarbons at its FA-1 well in the Foum Assaka license offshore Morocco. FA-1 was drilled by the Maersk Discoverer (UDW semisub) to a total depth of 12,656 feet and is being plugged and abandoned. The well was designed to test the salt diapir play concept, which is one of several in the Agadir Basin. Oil and gas shows were seen in drill cuttings and in sidewall cores which suggests a working petroleum system in the area. Additionally, the well provided key information to calibrate seismic data that will further the geologic understanding of the license.
Project Details: FA-1 (Eagle)
Tamar Partners Sign LOI with Union Fenosa Gas
May 8, 2014 – A non-binding Letter of Intent (LOI) was recently executed between the Tamar field partners and Union Fenosa Gas SA (UFG) regarding the supply of Tamar gas to UFG’s gas liquefaction facilities in Egypt. Terms of the LOI propose a 15-year contract term and total gross sales totaling roughly 440 MMcfd over the period. The LOI follows recent agreements with Palestine Power Generation Company, Arab Potash and Jordan Bromine Companies. A binding agreement with UFG is expected to be reached within the next 6 months pending Israeli and Egyptian regulatory approvals. Tamar has been estimated to hold 10 Tcf of discovered gas resources.
Project Details: Tamar
Australia
AWE Finally Reaches TD at Pateke-4H
May 8, 2014 – After several setbacks that necessitated two sidetracks, drilling operations at the AWE-operated Pateke-4H development well have come to an end. Target depth of the well was 17,654 feet but that was eventually revised to 15,656 feet. The decision to adjust the TD was made due to the 2,457-foot horizontal leg being drilled through a very high quality reservoir and to ensure a stable well bore necessary for completion and production. A 6 5/8″ slotted production liner has been installed and preparations are being made to run the completion. Pateke-4H is expected to begin production in 1Q 2015 following the installation of subsea infrastructure and tie-back to the Tui FPSO. Completion operations are expected to take about 10 days after which the Kan Tan IV (mid-water semisub) will relocate within the license to drill the Oi prospect.
Project Details: Tui Area Development Project
Asia – SouthEast
Norshore Wins Top Hole Drilling Contract for Shell’s Malikai Development
May 9, 2014 – Norshore, owner of the new Norshore Atlantic multipurpose drilling vessel, was awarded a contract by Shell’s Malaysian subsidiary to provide top hole drilling services at the Malikai field in Block G offshore Malaysia. The vessel was primarily designed for riser-less operations, making it well suited to drill top hole sections for developments such as Malikai. The contract will commence in April 2014 and should keep the vessel working through the end of the year. Shell and its partners discovered the field in 2004 and made the decision to proceed with development in early 2013. The development concept envisions 17 subsea wells tied back to the Malikai Tension Leg Platform (TLP). The Malikai joint venture includes Shell (35%), ConocoPhillips (35%) and Petronas (30%). Startup of the $775 million project is scheduled for late 2015.
Project Details: Malikai
KrisEnergy Improves Position in the Gulf of Thailand with G6/48 Acquisition
May 9, 2014 – Thai regulatory approval was recently granted for a March 2013 farm-out agreement between KrisEnergy and Mubadala Petroleum concerning the G6/48 block in the Gulf of Thailand. KrisEnergy now serves as the block operator with a 30% stake and its partners include Mubadala (30%) and Northern Gulf Petroleum (40%). Although it has been very active in the Gulf of Thailand, G6/48 will be the company’s first operated asset in the region. Contained within the block in the 2009 Rossukon oil discovery, an extensive 3D seismic survey was carried out over Rossukon in August 2013 and an appraisal drilling program is planned for later this year in an effort to delineate the discovery.
Project Details: Rossukon
Nido Reports Naga 5 Mobilizing to Baragatan
May 8, 2014 – The newly constructed UMW Naga 5 (400′ ILC) left the Keppel FELS yard at Singapore and is mobilizing to the Philippines to drill an exploratory well in Service Contract 63 (SC63). The well, expected to spud mid-May, will test the Baragatan prospect for the possibility of 676 million barrels in estimated gross unrisked resources.
Project Details: Baragatan
Otto Secures 14 Month Extension to SC55 Work Program
May 8, 2014 – Otto Energy received approval from the Philippines Department of Energy (DOE) for a 14-month extension to the work program regarding Service Contract 55 (SC55). The extension was granted after a lengthy delay in the approval process by the Palawan Council for Sustainable Development for the SC55 Strategic Environmental Plan and the sudden departure of BHP Billiton from the license. Otto is well into a farm-out process to seek a participant in the Hawkeye-1 exploration well and is hopeful that the process will be completed shortly after the June 2014 deadline.
Project Details: Hawkeye
Europe – North Sea
Drivis Discovery Caps Off Mediocre Johan Castberg Drilling Campaign
May 8, 2014 – Statoil recently announced an oil and gas discovery at its Drivis prospect in Norwegian License PL532. Well 7220/7-3S was drilled by the West Hercules (UDW semisub) to a depth of 6,879 feet. A 223-foot gas column was encountered followed by a 282-foot oil column in the Sto and Nordmela formations. Recoverable volumes are estimated to range between 44 and 63 MMboe. Drivis was the last of a 5-well campaign aimed at proving additional resources around the Johan Castberg discovery. Of the 5 wells drilled, only 2 resulted in discoveries. License participants include Statoil (50%), Eni (30%) and Petoro (20%).
Project Details: Drivis
Lundin Proves Additional Oil Pay at Geitungen
May 8, 2014 – Lundin Petroleum recently finished drilling two appraisal wells at its 2012 Geitungen discovery in Norwegian license PL265. Wells 16/2-19 and 16/2-19A were drilled by the Ocean Vanguard (mid-water semisub) in 380 feet of water. Data indicates 20 feet of oil pay was encountered in good quality lower Jurassic and upper Triassic sands in well bore 16/2-19. Well 16/2-19A, drilled as a sidetrack to the southwest, yielded 33 feet of low to medium quality oil-filled upper Jurassic reservoir above 10 feet of excellent quality upper Jurassic sands that are likely part of the Draupne formation. The license is operated by Statoil (40%) on behalf of its partners Petoro (30%), Det norske (20%) and Lundin Petroleum (10%).
Project Details: Geitungen
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Ocean Installer wins subsea installation job in GoM

Ocean Installer has been awarded a subsea installation job in the Gulf of Mexico with one of the world’s leading international oil and gas companies on its largest deepwater producing field which sits in over 1800m water depth.

This is Ocean Installer’s first SURF contract in the GoM and marks a milestone for the company in the region.

The project, which involves the installation and testing of umbilicals and associated equipment, will be managed from the Ocean Installer Houston office with onshore preparations starting immediately. Offshore work will take place this summer and Ocean Installer will be utilising the Subsea Construction Vessel (CSV) the Normand Clipper, which is on a long-term charter from Solstad Offshore.

“This is our first SURF job in the GoM and we are very pleased to have secured this work only a year after we established our Houston office and less than four months after introducing our first vessel in the region. We are now looking forward to working closely with our client to execute the project in a safe, high quality and efficient manner,” says Mike Newbury, President of Ocean Installer in the US.

Ocean Installer opened its Houston office in April 2013 and the Normand Clipper arrived in Houston in January. The vessel has been well-received in the market and has since its arrival experienced good utilisation executing several jobs in the regional spot market.

Press Release, May 02, 2014

Source

McDermott Bags Offshore Installation Gig in U.S. GOM

McDermott International, Inc. announced today that one of its subsidiaries has been awarded a contract by the Discovery system for offshore facilities in the Gulf of Mexico. The value of this contract is included in McDermott’s second quarter 2012 backlog.

Williams Partners L.P.owns 60 percent of the Discovery system and operates it. DCP Midstream Partners, LP owns the other 40 percent of the Discovery system.

The project is to deliver new junction facilities for Discovery’s Keathley Canyon Connector™ pipeline system with a 3,300-ton, four-leg platform in 350 feet of water. The unmanned platform will provide pipeline junction facilities for incoming deepwater pipelines from the Hadrian South and Lucius fields and for outgoing shallow-water pipelines to shore.

Fabrication is expected to commence this summer at McDermott’s Morgan City facility in Louisiana. Offshore installation is expected to commence during the third quarter of 2013, and is intended to be ready for operational start-up before the end of the year.

McDermott’s deepwater combination heavy lift and pipelay vessel DB50 is expected to perform the installation. The DB50 has recently undergone extensive enhancement to its power and propulsion systems, and has a new deepwater lowering system.

Source

USA: Harvey Orders More LNG OSVs from Trinity

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Harvey Gulf International Marine ordered two additional 302’ X 64’, Dual Fuel Offshore Supply Vessels, bringing its total order to four.

The contract signed today with Trinity Offshore is a follow on to the first two vessel order placed in October of 2011. Trinity will build all four vessels at their Gulfport, MS shipyard where the first Harvey Gulf LNG Powered Vessel hull fabrication was started last week.

In addition to being powered by cleaner burning natural gas, the vessels will achieve “ENVIRO+, Green Passport” Certification by the American Bureau of Shipping. The requirements for this certification include, among others, that the vessels be continuously manned with a certified Environmental Officer, be completely constructed with certified environmentally friendly materials, and have advanced alarms for fuel tanks and containment systems. Along with Harvey Gulf’s other vessels under construction, these will be the first OSV’s to achieve this certification, making them the most environmental friendly OSV’s in Gulf of Mexico.

Harvey Gulf CEO Shane J. Guidry announced the signing: “Harvey Gulf’s decision to become the leader in “Clean” Gulf of Mexico operations has been enthusiastically accepted by oil company executives and was the impetus for adding two additional LNG Dual Fuel vessels to the fleet. These vessels, like their two sisterships, will meet the highest emissions standards that exist today and even higher standards that haven’t been created yet. We recognize the strong stance on environmental protection by the administration in the wake of the oil spill and are doing our part to respond to it and provide our customers support for their environmental commitments.

John Dane III, Trinity’s President and CEO, stated “This follow on order is a significant milestone for our shipyard and will increase employment by hundreds at its peak during the next 36 months.”

Articles

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USA: Quantum Forms Renaissance. Buys Offshore Field

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Quantum Energy Partners , has announced the formation of Renaissance Offshore (“Renaissance”) with offshore industry veteran Jeffrey Soine. Supported by a $300 million equity commitment from Quantum, Renaissance will primarily engage in acquiring and redeveloping legacy oil producing properties in the shallow water Gulf of Mexico.

The Renaissance team is led by seasoned Gulf of Mexico executive Jeffrey Soine who will serve as Chief Executive Officer and President. Soine previously served as Executive Vice President of the International Business Unit for Woodside Energy, as well as President of Woodside Energy (USA). Prior to Woodside, Soine was Acquisitions Manager for W&T Offshore where he successfully acquired assets in the Gulf of Mexico. Joining Soine, as Chief Financial Officer and co-founder, is Brian Romere. Romere previously served in the same capacity at Anglo Suisse Offshore Partners and King Ranch Oil & Gas.

Immediately after formation, Renaissance closed on an acquisition of the Ship Shoal 266 field located approximately 75 miles off the coast of Louisiana with an average water depth of 180 feet, from Union Oil Company of California, a Chevron subsidiary. The Ship Shoal acquisition provides Renaissance with a solid production base for the new company, and offers numerous opportunities to increase production over the near term.

Soine commented, “With the recent shift in focus of the majors and large independents to unconventional resources, and continued oil price strength, market conditions are ripe for a well funded, focused acquirer to pursue opportunities on the Gulf of Mexico shelf. Quantum’s strong financial sponsorship and energy industry expertise provides a great complement to our team’s proven Gulf track record.”

“We are excited to be in partnership with such an experienced team focused on the Gulf of Mexico shelf where we see tremendous opportunity to build an acquisition and exploitation platform that we believe will expose Quantum and its investors to superior returns,” said Garry Tanner, Managing Director at Quantum Energy Partners.

Articles

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