Category Archives: P & A

Worldwide Field Development News Nov 10 – Nov 16, 2012

This week the SubseaIQ team added 3 new projects and updated 19 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.

Australia

Maari Partners to Buy Raroa FPSO

Nov 15, 2012 – OMV New Zealand, on behalf of the Maari field partners, announced the intent to exercise the option to purchase the Raroa FPSO. Since 2009 the Maari partners have leased the Raroa from Tablelands Development Ltd. Included in the lease is an option to buy the vessel after the fourth contract year at a pre-agreed buy-out price. Ownership of the FPSO will give the group the flexibility to refurbish and make upgrades as needed throughout the life of the field. Ownership transfer will be effective as of March 8, 2013. Additionally, MODEC Management Services has been awarded an operations and maintenance services contract for the Maari field through 2017 with options to extend in two year increments. MODEC currently operates 15 FPSOs worldwide.

Project Details: Maari

Drilling Commences at Zephyros-1

Nov 13, 2012 – Joint Venture partner Karoon Gas Australia announced the spudding of Zephyros-1, an exploration well in permit WA-398-P. The well is being drilled on the border of a large tilted fault block and will test the presence, quality and extent of reservoirs in the Plover formation. ConocoPhillips, the operator, has contracted the Transocean Legend (mid-water semisub) to carry out the drilling program which includes a minimum of 5 wells and will continue through 2013. Zephyros is the second well to be drilled and follows the highly successful Boreas-1 well. The remaining wells will be announced as they reach joint venture approval.

Project Details: Zephyros

Asia – Far East

WZ6-12 Development Nearing Completion

Nov 13, 2012 – Roc Oil continues to drill successful wells in the WZ6-12 development area offshore China. Its latest well, WZ6-12-A7, reached a total depth of 8,720 feet while targeting the Sliver and Liushagang prospects. Just over 34 feet of net oil pay was encountered within the Sliver prospect. Liushagang yielded 259 net feet of water wet sands with up-dip potential remaining. A 7″ liner will be set to allow future completion and tie-in to production facilities. Based on the recent drilling results the company is re-examining the area for additional exploration potential. At least two development wells will be needed before the field can be brought online. First oil is still planned for early 2013.

Project Details: Beibu Gulf

S. America – Other & Carib.

BPZ Ready to Flip Switch at Corvina

Nov 13, 2012 – Development drilling in BPZ Energy’s Corvina field will soon begin from the newly installed CX-15 platform. The Peruvain Ministry of Energy and Mines granted the company an environmental permit which cleared the way for drilling and eventual operation of all production and injection facilities on the platform. The current plans call for the Petrex-28 rig to be mobilized to the platform with the first well being spud in December 2012. Production of first oil is expected to take place in 1Q 2013.

Project Details: Corvina

Europe – North Sea

Voyageur Spirit Completing Commissioning Process

Nov 16, 2012 – The Voyageur Spirit FPSO has been on location at the Huntington field in block 22/14b in the UK North Sea since early October undergoing hook-up of risers and completion of commissioning. An exact date of start-up activities has not been set as it is dependent upon favorable weather and the timing of first oil which has been pushed back from 4Q 2012 to 1Q 2013. Prior to being towed to location, the Voyageur Spirit underwent upgrades at the Nymo shipyard in Norway to prepare for Huntington.

Project Details: Huntington

Subsea 7 Wins Martin Linge SURF Contract

Nov 16, 2012 – Total E&P Norge awarded a subsea, umbilical, riser and flowline (SURF) contract worth almost $800 million to Subsea 7 for development activities at the Martin Linge gas field in the Norwegian North Sea. Under the contract, Subsea 7 will provide engineering, procurement, construction and installation of the subsea facilities associated with the field. Engineering and project management are expected to commence immediately with offshore operations forecasted to begin in the spring of 2014. Contract duration is estimated at 4 years.

Project Details: Martin Linge (Hild)

Gudrun Platform Deck Arrives in Norway

Nov 16, 2012 – Production from the Statoil-operated Gudrun field in the Norwegian North Sea is expected to begin during 1Q 2014. The company is a step closer to its start-up goal with the arrival of the production platform’s deck from Aibel’s construction yard in Thailand. The topsides components, which include the operations deck, living quarters, platform modules and helideck, will now be assembled on land. Once complete the unit will be taken via heavy lift vessel to the Gudrun field and attached to the jacket structure which has already been installed. Installation of the deck topsides is expected to take place in the summer of 2013.

Project Details: Sleipner Area

Providence Announces Drombeg Potential

Nov 14, 2012 – Providence and its partner Sosina recently completed a potential resource assessment and major seismic inversion program over its Drombeg prospect in the southern Porcupine Basin offshore Ireland. Analysis results indicate recoverable P50 prospective resource potential of 872 MMbo within Drombeg and a new target identified below the main prospect. Additional Lower Cretaceous seismic anomalies have been identified both laterally offset to and vertically stacked with Drombeg which provide further resource potential. Supplemental data and 3D seismic of the area will be needed to accurately evaluate the true potential of Drombeg.

Project Details: Dromberg

Antrim Inks FPSO Agreement for Fyne

Nov 14, 2012 – A Heads of Terms agreement was signed between Antrim Energy and Hummingbird Production Limited, a subsidiary of Teekay Corporation, for an option to lease the Hummingbird Spirit FPSO for the development of the Fyne field in UK North Sea block 21/28a. The agreement will be subject to approval of a Field Development Plan which Antrim (operator) must submit to the UK Department of Energy and Climate Change no later than January 2013. First oil is tentatively expected in 4Q 2014 contingent upon timing of the redeployment of the FPSO from its current work location. Results from well 21/28a-11, drilled earlier this year, have increased Fyne 2P reserve estimates to 11.7 million barrels of oil.

Project Details: Fyne

Shell Acquires Additional Stake in Schiehallion

Nov 14, 2012 – Shell and Murphy Oil signed an agreement whereby Shell will acquire Murphy’s 5.9% stake in the Schiehallion field offshore Scotland. The field is located in blocks 204 and 205 of the West of Shetlands area in 1,300 feet of water. Execution of the agreement will bring Shell’s stake in the field to 55%. Partners in the field include BP (operator) with 33.5% and Statoil and OMV, both with 5.9% stakes.

Project Details: Schiehallion (Quad 204)

Major Causeway Milestone for Antrim

Nov 13, 2012 – Antrim Energy announced the start of oil production from the Causeway field in UKCS block 211/23d. Commissioning of the field has commenced with gross production rates of roughly 4,500 barrels per day on a 53% choke. The long horizontal geometry of the well has lead to slow clean-up and is impacting initial flow rates. Electric submersible pumps are expected to contribute to production rates through the first half of 2013. Antrim maintains a 35.5% working interest in the block.

Project Details: Causeway

Ithaca Updates Greater Stella Area

Nov 13, 2012 – Ithaca Energy plans to start its Greater Stella Area (GSA) development drilling program by drilling four production wells at the Stella field starting 1Q 2013 using the Ensco 100 (350′ ILC). Each of the Stella wells is expected to take 90 days to complete. These wells will be tied into the FPF-1 floating production unit which is currently being upgraded at the Remontowa yard in Gdansk. Commissioning of the vessel and hook-up to the GSA production hub is scheduled for 1H 2014. Engineering and construction of the GSA subsea facilities is on schedule with installation to take place throughout 2013. More wells are planned for the Stella, Harrier and Hurricane fields once the four initial Stella wells are brought on line.

Project Details: Stella/Harrier

MidEast – Persian Gulf

Total Extends Al Khalij Involvement

Nov 14, 2012 – Total will continue to operate the Al Khalij field offshore Qatar for the next 25 years thanks to the signing of a Heads of Agreement between Qatar’s Ministry of Energy and Industry, Qatar Petroleum and Total. Qatar Petroleum will maintain a 60% stake in the field while Total will remain the operator with a 40% stake. Al Khalij was discovered by Total in 1991 and production was initiated in 1997.

S. America – Brazil

Petrobras Signs LoI for Iracema Norte FPSO

Nov 15, 2012 – Petrobras and its partners in block BM-S-11 announced the signing of a Letter of Intent with Schahin and MODEC for the charter of an FPSO that will be used for the development of the Iracema Norte area in the Santos Basin. The vessel will be operated by Schahin and MODEC and chartered to the Consortium for a period of 20 years. MODEC is tasked with taking VLCC Alga and converting it into FPSO Cidade de Itaguai MV26 which is to be installed on location in December 2015. Once operational, the vessel will be capable of handling 150,000 bopd, 280 MMscf of gas per day and storing a total of 1,600,000 barrels of liquids. SOFEC, a subsidiary of MODEC, will design the mooring spread that will hold the FPSO on location in 7,349 feet of water.

Project Details: Iracema

Statoil Boosts Peregrino Recovery

Nov 15, 2012 – Statoil is well known for its use of multilateral well technology and has used it extensively on the Norwegian Continental Shelf. The company has now taken its expertise to the Peregrino field in block BM-C-7 offshore Brazil. Peregrino was regarded as an oil field with large potential for increased recovery based on already low recovery rates and in-place volumes of nearly 2.3 billion barrels. By using horizontal wells drilled with geosteering technology to optimize placement, water injection and flow assurance measures, the estimated recoverable resources have been increased to the range of 300 to 600 million barrels of oil. To date, the company has drilled 15 production wells of this type at Peregrino and has doubled the expected recovery rate.

Project Details: Peregrino

USA: Helix Marks Strong Market Demand for Deepwater Well Intervention Services

Helix Energy Solutions Group, Inc. announced that it has been awarded its initial customer contractual commitments for the Helix 534. The Helix 534 was acquired in August from Transocean and is undergoing modifications and upgrades necessary for conversion into a well intervention vessel at the Jurong Shipyard in Singapore.

The Helix 534 is scheduled to sail from Singapore during the first quarter of 2013 and after transit to the Gulf of Mexico, is expected to be placed into service in late second quarter 2013. Backlog for the Helix 534 involves work in the Gulf of Mexico and extends into 2016.

Meanwhile, the Q4000 has extended its strong contractual backlog through 2014, with strong customer interest into 2016.

Helix also announced that the Skandi Constructor has also received its initial contractual awards. The Skandi Constructor is a chartered vessel and is expected to enter the Helix well intervention fleet in the spring of 2013. Its initial contract involves work in the North Sea and follows with a project off the eastern Canadian coast.

Helix’s two existing North Sea based well intervention vessels, the Seawell and the Well Enhancer, have been awarded customer contracts into the fourth quarter of 2013.

Owen Kratz, President and Chief Executive Officer of Helix, stated, “The recent contract awards for our two new additions to the well intervention fleet, the Helix 534 and the Skandi Constructor, as well as the growing backlog for our existing fleet, reflects the strong market demand for deepwater well intervention services as well as Helix’s market leadership for these services. Furthermore, customer interest for our newbuild semisubmersible well intervention vessel, the Q5000, remains high. The Q5000 is currently under construction at the Jurong Shipyard in Singapore and is scheduled to enter the fleet in early 2015.”

Subsea World News – USA: Helix Marks Strong Market Demand for Deepwater Well Intervention Services.

Worldwide Field Development News Nov 3 – Nov 9, 2012

This week the SubseaIQ team added 0 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 – SouthEast

Maleo MOPU Recevies TLC

Nov 8, 2012 – SOV Windermere (subsea operations vessel) has been contracted to provide offshore support services in the Maleo field in East Java’s Madura offshore PSC. Hall Marine, the vessel’s owner, indicated the operation is centered around the Windermere’s integral 15-man saturation diving facility. The crew of the vessel will be engaged in facility inspections as well as repair and maintenance operations. Maleo is produced via a six-wellhead platform and a jackup converted to a Mobile Offshore Production Unit.

Thailand Partners Provide Concession Update

Nov 6, 2012 – Thailand’s Department of Mineral Fuels, Ministry of Energy has formally approved the transfer of 50% participating interest in the G2/48 concession from Pearl Oil to Rayong Offshore Exploration Ltd. The concession lies in proximity to the Jasmine and Manora oil fields and also contains the Rayong Basin which possesses similar characteristics to nearby basins with known oil accumulations. An exploration drilling program is in the advanced stages of planning with the Anchan-1 and Sainampueng-1 wells scheduled to spud 4Q 2012. These wells will satisfy the 5- and 6-year concession commitments respectively.

Project Details: Sainampueng

Black Sea

Sterling Gets Mixed Results From Ioana

Nov 7, 2012 – TD has been reached in the Ioana-1 well in the Romanian sector of the Black Sea. Gas shows were encountered in the Sterling Resources-operated well from 1,640 feet to the total depth of 6,397 feet. The main objective identified by 2D seismic was encountered as prognosed but was found to be made up of thinly bedded sands within low permeability siltstones. Shallower gas bearing sands were intersected but formation details won’t be known until cased-hole logs are thoroughly reviewed. Sterling indicated that it might seek to acquire 3D seismic data over the area to gain a better understanding of the complex formations encountered while drilling Ioana.

Project Details: Ioana

N. America – Mexico

Pemex Awards Akal Contract to Sea Trucks

Nov 9, 2012 – Pemex awarded an EPCI contract to Sea Trucks for work to be done in the Akal field offshore Mexico. The project calls for the extension of topsides of four platforms including processing equipment with associated piping and fire, gas, electrical and control systems. Field infrastructure will also be upgraded by the addition of subsea pipelines, pig launchers/receivers, spools and risers. No definite timeline has been released but the company says the work will take place in the first half of 2013.

Project Details: Cantarell

Asia – Far East

Roc Continues Success in Beibu Gulf

Nov 6, 2012 – Roc Oil, operator of the WZ6-12 development area in the Beibu Gulf, successfully drilled its second exploration well to a total depth of 8,720 feet. Well WZ6-12-A6 intersected almost 200 feet of net oil pay through multiple hydrocarbon bearing zones in the Weizhou formation and will be completed as a producer. Results of the well have confirmed the extent of the WZ6-12 South field. The third well in the three well exploration program, WZ6-12-A7, is underway and will survey the Sliver and Liushagang prospects to the north of the field.

Project Details: Beibu Gulf

N. America – US GOM

Technip Wins Cardamom Contract

Nov 9, 2012 – Shell awarded another Gulf of Mexico development contract to Technip for the development of infrastructure for the Cardamom field in Garden Banks block 427. The project consists of a subsea tieback to the Auger TLP at a water depth of 2,720 feet. Under the contract, Technip will provide project management, engineering, fabrication and installation of 8 miles of pipe-in-pipe flowlines with associated line terminations and steel catenary risers. Offshore installation is planned for the second half of 2013. The company has not disclosed the value of the contract.

Project Details: Auger

MidEast – Persian Gulf

South Pars 17 and 18 Nearing Completion

Nov 6, 2012 – Iranian Offshore Engineering and Construction Company successfully built and installed the 2,320-ton production deck for South Pars A17 platform. From engineering to installation, the entire project took just over 4 years to complete. Production will begin in about 3 months when final commissioning is complete. The unit has the capacity to produce 500 million cubic feet of gas per day. Construction of the production deck for the A18 platform is 90% complete. Completion of the two platforms will be a milestone for phases 17 and 18 in the South Pars development.

Project Details: South Pars

Mediterranean

Cosmos Concession Sees Reserve Estimates Rise

Nov 5, 2012 – New Zealand Oil & Gas announced 2P reserve estimates for the Cosmos Concession, offshore Tunisia, have increased from 6.3 to 8.8 million barrels of recoverable hydrocarbons. The 40% increase is attributed to a resource evaluation completed by InSite Petroleum Consultants Ltd. Two other independent assessments have garnered similar results. A final investment decision from the Cosmos partners is expected in early 2013. Storm Ventures International operates the license with a 40% stake. NZOG and state-owned oil company ETAP hold 40% and 20% stakes respectively.

Project Details: Cosmos South

Europe – North Sea

Europa Eyes Irish Atlantic Margin Prospects

Nov 9, 2012 – Europa Oil and Gas has identified two previously unknown prospects, Mullen and Kiernan, in the South Porcupine Basin in the Irish Atlantic Margin. Both prospects are located in the company’s 100% owned Licensing Options 11/7 and 11/8. First pass seismic data has been reprocessed over Mullen while reprocessing is on-going over Kiernan. Resource estimates at Mullen range from 66 mmbo (P90) to 1092 mmbo (P10). Both prospects are characterized by Early Cretaceous turbidite reservoirs which, although proven in the North Porcupine Basin, are untested in the south. Results from the upcoming ExxonMobile Dunquin well may help to de-risk the area. Europa is currently looking for a joint venture partner to assist with maturing the prospects to drillable status.

Subsea 7 Grabs Subsea Compression Gig

Nov 9, 2012 – Subsea 7 is the winner of a subsea compression contract for the Statoil-operated Gullfaks C production facility. At almost $70 million the contract provides for the engineering, installation and commissioning of a 9.5 mile integrated power umbilical, a protection structure, a subsea compressor station, pipeline spools and tie-ins. Work will begin immediately at Subsea 7’s Stavanger office with offshore operations scheduled to begin in 2015.

Project Details: Greater Gullfaks Area

Proserv Awarded Cygnus Controls Contract

Nov 8, 2012 – GDF SUEZ, through its design contractor AMEC, awarded a $1.9 million contract to Proserv to design, engineer and build wellhead control panels for the Alpha and Bravo platforms at the Cygnus project in the UK North Sea. Proserv will also provide an umbilical termination unit that is integral to the control of the isolation valve fitted to the subsea export pipeline. Six of the ten development wells associated with the platforms will be controlled through the initial panel design. Work is already underway on the project and equipment is scheduled for delivery in 2013 and 2014.

Project Details: Cygnus

Chevron Takes The Helm in West of Shetland Probe

Nov 7, 2012 – Chevron has been given consent by the UK Department of Energy and Climate Change (DECC) to drill the West of Sheland Cambo-5 well on behalf of Hess Limited, the operator of block 204/5a. Cambo-5 will be drilled by a drillship in 3,576 feet of water but the vessel chosen for the drilling program has yet to be named. As part of the approval process, the DECC has thoroughly reviewed Chevron’s management systems and emergency response plans and inspected the drillship that is to be used for the well.

Northeastern Johan Sverdrup Reservoir Qualtity Confirmed

Nov 7, 2012 – Diamond Offshore’s Ocean Vanguard (mid-water semisub) drilled another successful well in the Johan Sverdrup discovery area. Well 16/2-14 was drilled almost 4 miles northwest of Johan Sverdrup discovery well 16/2-6. The main objective was to collect data from the stratigraphic sequence above the reservoir to serve as the basis for field development decisions. A 98-foot oil column was encountered in Upper Jurassic reservoir rocks that exhibited good reservoir quality. The Hegre and Shetland Groups were encountered but reservoir quality was poor in both. The well was drilled to a total depth of 6,430 feet and will be permanently plugged and abandoned.

Project Details: Johan Sverdrup

Premier and Partners Come Up Dry at Spaniards East

Nov 6, 2012 – Exploration well 15/21a-60 in the UK North Sea was drilled to a depth of 10,694 feet and plugged and abandoned as a dry hole. The Premier-operated well was designed to test the easterly extent of the Spaniards discovery and encountered 75 feet of Jurassic sands. However, logging revealed the sands to be water wet. A full analysis of the drilling data is required before a final decision on the commerciality of the Spaniards discovery can be made.

Africa – West

Alen Development Remains On Schedule

Nov 7, 2012 – PA Resources announced work on the Alen field development in Blocks O and I, offshore Equatorial Guinea, is progressing on schedule. The goal remains to achieve first production in the second half of 2013. Fabrication of platform facilities is in advanced stages and installation of flowlines and umbilicals is expected in 4Q 2012. The development will be comprised of a wellhead platform connected by a bridge to a central processing platform. Once on-line, Alen should produce 33,000 barrels of oil per day via three production wells.

Project Details: Aseng

S. America – Other & Carib.

Mapale-1 Yields Gas Offshore Columbia

Nov 8, 2012 – Equion Energia and its partners announced the discovery of gas in the Mapale-1 exploration well in block RC-5 offshore Columbia. The well was spud in August using the West Mischief (350′ ILC). Gas shows during drilling confirmed the presence of a hydrocarbon system and fluid tests and logging results confirmed the presence of dry natural gas. The company will now begin the technical evaluation process in order to determine the potential of the discovery. A second well was scheduled to be drilled but was postponed until after the harsh weather season, which lasts from November through April, passed. Equion serves as operator with 40.56% interest followed by Ecopetrol with 32% and Petrobras with the remaining 27.44%.

Worldwide Field Development News Oct 27 – Nov 2, 2012

This week the SubseaIQ team added 0 new projects and updated 15 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.

N. America – US Alaska

Shells Alaskan Arcitc Drilling Season Comes to an End

Nov 1, 2012 – Shell’s Alaskan arctic drilling program in the Beaufort and Chukchi Seas has reached the end of operations date mandated by the government. The company wasn’t able to make as much progress as hoped due to a late start caused by legal, regulatory and equipment issues. The Kulluk (SW semisub) and Noble Discoverer (mid-water drillship) were only able to drill tophole sections at the Sivulliq and Burger-A prospects. Shell plans to resume activities when the sea ice retreats next summer. For the off-season, the Kulluk will be towed to Dutch Harbor and Noble is weighing options for the Noble Discoverer.

Project Details: Burger, SW Shoebill, Cracker Jack

Australia

OMV Announces Milestone at Maari

Nov 1, 2012 – The Maari field, operated by OMV New Zealand, has produced 20 million barrels of oil since startup in 2009. Maari is the largest producing field in the country and is expected to produce for another decade. Production peaked at 40,000 bopd and has slowed to its current rate of 12,000 bopd. OMV plans to drill additional development wells into what it hopes are untapped accumulations in the field. If the additional wells are successful they will help stabilize the natural decline in production.

Project Details: Maari

N. America – US GOM

Dalmatian South Discovery Confirmed

Nov 2, 2012 – Dalmatian South, operated by Murphy Oil and located in De Soto Canyon block 134, has been confirmed as an oil discovery by partner Ecopetrol. The discovery is Ecopetrol’s third in the U.S. Gulf of Mexico since 2011 and the second of 2012. The Noble Jim Day (DW semisub) drilled the initial exploration well and subsequent sidetrack in 6,394 feet of water. Hydrocarbons were confirmed through electric logs and fluid samples. Dalmatian South lies 6-miles to the southeast of the main Dalmatian field. Production startup from Dalmatian is planned for 1Q 2014 through a tieback to the Petronius platform.

Project Details: Dalmatian

Africa – West

GE Lands Lianzi Contract

Nov 1, 2012 – GE Oil & Gas was awarded a $165 million contract to supply subsea production equipment to Chevron‘s offshore Lianzi project located between Angola and the Republic of Congo. The contract covers the supply of seven trees, nine subsea control modules, topside and subsea controls distribution equipment and vertical connection systems. The first tree is scheduled to be completed in 4Q 2013. Lianzi lies at a depth of 2,950 feet and will be developed with a subsea production system tied to the BBLT platform via a 27-mile heated flowline.

Project Details: BBLT

Rialto Updates Operations in CI-202

Nov 1, 2012 – In a report issued by Rialto Energy, the company announced the completion of the 200+ day Gazelle Field drilling campaign in block CI-202 offshore Cote d’Ivoire. Rialto feels that the field has been adequately appraised and is in the process of reviewing possible development solutions. The company continues to review 3D seismic data covering the entire block. Several new targets have been identified and are being evaluated for inclusion in the 2013 exploration and appraisal drilling program. Vantage Drilling’s Sapphire Driller (375′ ILC) has been contracted for the 2013 program which includes three firm wells with two options. In addition, Rialto intends to commence a farmout process in 4Q 2012 to identify partners to participate in and fund the exploration and appraisal program.

Project Details: Gazelle

Chevron Awards FEED Contract for Lucapa

Nov 1, 2012 – Chevron subsidiary Cabinda Gulf Oil Company Limited awarded WorleyParsons and INTECSEA a FEED (front-end engineering and design) contract regarding the Lucapa oil field in Angola’s Block 14. The field is envisioned to be developed via subsea production and injection wells tied back to an FPSO, all in roughly 4,000 feet of water. The Lucapa development is a joint venture between Chevron, Sonangol, ENI, Total and Galp with Chevron serving as operator. The contract value has not been released.

Project Details: Lucapa

Afren Brings Okoro East On-Line

Oct 31, 2012 – Afren PLC announced the start of production from the Okoro East field in the shallow waters of OML 112 offshore Nigeria. Drilled form the existing Okoro wellhead platform, the Okoro-14 development well was drilled with the intention of establishing early production from the East field – discovered in January 2012. The well has been completed and tied into the Okoro FPSO at a stabilized rate of 5,000 bopd. Okoro-14 is the most productive well drilled in the Okoro area to date.

Project Details: Okoro

S. America – Brazil

PanAtlantic Spinds Bit at Jandaia

Nov 2, 2012 – Exploration drilling is underway at the PanAtlantic-operated Jandaia prospect in block BM-S-71 in the southern Santos Basin. Transocean’s Arctic I (mid-water semisub) is drilling the well in 520 feet of water. The rig is expected to be on location for up to 3 months as it drills to an estimated total depth of 20,100 feet. The well is targeting shallow and deep prospects in the Upper Jureia formation and post-salt Guaruja limestone respectively.

Europe – North Sea

Faroe Relinquishes West of Shetlands License

Nov 2, 2012 – Faroe Petroleum announced its intention to relinquish operatorhsip and interest held in West of Shetland license P1161. Since exploration well 206/5a-3 was drilled in the Fulla prospect the company has been working to establish resource potential and an economical joint development solution for Fulla and the nearby Freya prospect. The area is hindered by lack of access to existing infrastructure and research has confirmed relatively poor oil quality and smaller than expected resource size. Based on these factors, the company will terminate operations in the license and concentrate efforts on its existing West of Shetlands portfolio that includes four provisional exploration licenses that were recently awarded.

Project Details: Freya

Garantiana Partners Move Forward With Sidetrack

Oct 31, 2012 – Bridge Energy, 20% partner in PL 554 offshore Norway, confirmed the plan to move forward with a sidetrack of Grantiana well 34/6-2S. Well 34/6-2A will be drilled by the Borgland Dolphin (mid-water semisub) in an effort to prove additional oil volumes in the formation and determine the oil/water contact. Sidetracking operations will take place once the drilling permit has been approved by Norwegian authorities.

Project Details: Garantiana

Glitne Reaches End of Road

Oct 31, 2012 – After outliving its estimated service life by 9 years the partners in the Glitne field have decided that nothing more can be economically produced from the reservoir. To date, the field has produced 55 million barrels of oil which more than doubles the original estimate. Several new wells have been drilled in the field since production first began in 2001. The final well, drilled earlier this year, demonstrated that Glitne is no longer viable. Oil from the field is produced through the Petrojarl FPSO. Teekay, the vessel’s owner, has been given a six month notice of contract termination. A total of seven wells will be plugged and abandoned in order to close the field.

Project Details: Glitne

Asia – Far East

Liwan Gas Project Remains On Track

Nov 2, 2012 – Husky Oil’s Liwan Gas Project in the South China Sea is approximately 75% complete. The central platform jacket has been constructed and anchored to the seabed. Topsides will be completed and ready for installation in the second quarter of 2013. The Mono-ethylene Glycol Recovery Unit, an important module on the central platform, is nearing completion. Roughly half of the two 49 mile subsea pipelines have been laid from the gas field to the central platform. Liwan remains on schedule for startup by early 2014.

Project Details: Liwan

MidEast – Persian Gulf

DNO Might Double Output at West Bukha

Nov 1, 2012 – Norwegian oil and gas company DNO International announced test results of the recently completed West Bukha-4 well offshore the Sultanate of Oman. On a 54/64-inch choke, the well flowed 7,000 barrels of 39 degree API oil and 15 million cubic feet of gas per day through a test separator. Once the new well is on-line, production from the West Bukha field is expected to achieve 15,000 barrels per day which almost doubles the current rate. Boasting a total depth of nearly 19,700 feet, the well has the longest reach of any drilled well in Oman’s waters. West Bukha-4 targeted a previously un-drilled zone and is the second of a three well Block 8 drilling campaign initiated last year.

Project Details: Block 8

Asia – SouthEast

Additional Discovery Announced at Bertam

Nov 1, 2012 – Malaysian Prime Minister Najib Razak released a statement via his personal website indicating a significant discovery of additional oil reserves at the Bertam field in block PM 307. The new discovery raises the field’s recoverable resources to 64 million barrels. A preliminary development plan estimates first oil in 3Q 2014 with a max output of 20,000 barrels per day. Lundin Petroleum operates the block with a 75% stake while Petronas Carigali holds the remaining 25%.

Project Details: Bertam

Natuna Gets New Plumbing

Oct 31, 2012 – Hallin Marine completed a subsea infrastructure, umbilicals, risers and flowlines project at the Natuna gas field offshore Malaysia. Under the $3 million contract Halling was responsible for engineering, procurement, installation and commissioning of installed systems as well as the abandonment of some existing infrastructure. Natuna is the largest gas field in southeast Asia with estimated recoverable reserves of approximately 46 trillion cubic feet.

PetroVietnam Secures Funding for Cuu Long Basin Block

Oct 31, 2012 – PetroVietnam secured a 7 year syndicated loan of $140 million from five domestic banks for the development of offshore block 15-2/01 in Vietnam’s oil laden Cuu Long Basin. Talisman Energy operates the block, through the Thang Long JOC, holding 60% interest while PetroVietnam maintains the remaining 40%. The funds will be put towards the development of the Hai Su Trang and Hai Su Den fields located within the block. Talisman indicates the fields will be tied into the existing Te Giac Trang facilities on adjacent block 16-1 with first oil expected near the end of 2013.

Gulf of Mexico: Quest Offshore Sees Bright Future for Deepwater GoM (USA)

The Gulf of Mexico, more than any other major deepwater region in the world, has experienced massive changes in the last five years with long-term implications for the future of the region and the GoM’s supply & demand effects on the global deepwater oil and gas market, Quest Offshore says in its report.

The worldwide financial crisis and subsequent recession, shale gas’ implications on U.S. natural gas prices and the aftermath of the Macondo incident have led to significant changes in the outlook for the region. Despite those overwhelming obstacles, the U.S. GoM’s future is bright with a pronounced recovery expected in all major market segments from drilling to subsea, floating production and marine construction.

Overall spending in the region is expected to increase significantly starting in 2013 up nearly 30 percent to $40 billion. Total expenditures are expected to reach a significant $167 billion in the 2013 to 2016 period. For the first time, 2012 is expected to represent an investment shift with deepwater CAPEX and OPEX spending surpassing that in shallow water. In the under developed ultra-deepwater frontier areas of the region, challenging technical and reservoir conditions will result in increased spending across the board, a trend expected to continue through the foreseeable future.

Five years ago the region was a mix of major and independent oil companies executing both oil and gas standalone and subsea tieback projects. In 2013 and beyond, Quest sees more oil dominance with offshore gas waning. Large international oil companies will play a larger role with the execution of standalone (hub) projects with niche-focused independents looking to infrastructure-led drilling around existing hubs and mega-independents continuing to grow their strategic portfolios in select basins.

In Quest Offshore’s latest market report, Quest Deepwater Review: Gulf of Mexico 2013 and Beyond, the reader will gain a comprehensive understanding of current trends and expectations from one of the leading deepwater basins, the U.S. Gulf of Mexico.

Leasing Activity Positive for Deep and Ultra-deepwater

Leasing activity is rightly seen as the furthest leading indicator for prospective oil and gas activity not only in the Gulf but throughout the world. Due to the relatively long lead times between leasing, drilling and production, leasing trends can be expected to provide insight on future activity for years to come. With one-third of active deepwater leases, oil majors and national oil companies are expected to continue to be the driving force for pushing the boundaries of the Gulf of Mexico’s development. Excluding Anadarko and Conoco, all recent frontier projects have been undertaken through operatorship’s of one of the majors or national oil companies (BP, Chevron, Exxon, Shell, Total, Statoil, Petrobras), and we expect this theme to persist moving forward.

Drilling Permitting on an Upward Trend

Drilling permit approvals are showing noticeable increases over the past six months with total counts back to pre-Macondo levels. As of the end of September there have been 78 new exploration drilling permits and 36 new development drilling permits approved over the year.

While raw permit counts are showing positive movement this year, the comparison in permits issued per project highlights the underlying cause for such steep increases in the first half of 2012. Multi-well projects (defined as five or more wells) have seen a record permitting pace since late 2011; examples of this trend include Chevron’s Jack/St. Malo Project, Shell’s Mars B Project, Hess’s Tubular Bells project, Chevron’s Big Foot and most recently the BP’s Atlantis North development, while true wildcat exploration permit numbers are still well below levels seen prior to the drilling moratorium.

Drilling Market Accelerating

Notable discoveries of ultra-deepwater fields in the Lower Tertiary continue to increase the reserve and production expectations for the region. The shift in the Gulf is most apparent in the floating rig market with four operators now possessing 50 percent of the contracted rig fleet. Ninety percent of rigs operating are high-spec and rated for ultra-deepwater.

Robust Outlook for Deepwater Development

Since 2008, the U.S. Gulf of Mexico has undergone a shift in project development mix from heavy in small, independent-operated subsea tiebacks to one that is grounded in fewer, larger subsea tiebacks and high-investment standalone developments developed by international oil companies and mega-independents.

This shift towards fewer, larger subsea tiebacks as well as increased FPS units will have profound effects on the future of the subsea sector as the hardware installed evolves as a direct result of fewer gas developments and deeper, more challenging fields. Subsea equipment manufacturers will experience fewer, but larger scope, award opportunities through the forecast period. As these developments move into more challenging areas, the value of these subsea production packages are expected to increase significantly as HP/HT trees and subsea processing become an enabler for these complex, capital-intensive projects.

This next wave of FPS developments is, for the most part, in ultra-deepwater and in more remote areas not currently connected to shallow water or onshore infrastructure. These developments will materially impact the pipeline and marine construction markets (SURF) as these production hubs are connected to existing export infrastructure through 2016 and beyond. The subsea tieback potential for these hubs is most likely to be seen in the latter half of this decade and into the following, with these latest hubs laying the foundation for the next generation of deepwater developments in the region.

Quest Offshore Sees Bright Future for Deepwater GoM (USA)| Offshore Energy Today.

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