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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

InterMoor Completes IRIS Installation and Recovery for Apache in Gulf of Mexico, USA

InterMoor, an Acteon company, has completed an installation and recovery project for Apache Deepwater LLC (Apache) in Mississippi Canyon Block 148, Well 5 in the Gulf of Mexico.

The work scope included the overboard, wet transfer, deployment and recovery of a 30-ton interchangeable riserless intervention system (IRIS) owned by Blue Ocean Technologies. InterMoor undertook the work in water approximately 168 meters deep from Cal Dive’s Uncle John semisubmersible vessel.

InterMoor delivered the project using its compensated anchor handler subsea installation system (CASIM) which reduces heave motions relative to vessel motions. CASIM units are pre-charged at the surface to deliver the needed heave compensation for the load at depth. InterMoor’s proprietary CASIM method requires less deck space and demands fewer deck operations than the traditional buoy-based heave-compensated landing system. The company also provided the associated rigging equipment and a technician to help facilitate the subsea compensation.

“Apache selected InterMoor for this project on the basis of our service record, the fact that we had the necessary equipment available and because of our experience in subsea operations of this kind,” said InterMoor project manager Jacob Heikes. “Although we have used CASIM to deploy and recover many types of subsea equipment, this is the first time that we have used CASIM for IRIS deployment and recovery, and the project’s success shows that this proven installation method is suitable for a wide range of subsea equipment.”

Subsea World News – InterMoor Completes IRIS Installation and Recovery for Apache in Gulf of Mexico, USA.

Corpus Christi, TX: Apache to Add CNG Gas Fuelling Dispensers at Midland Stripes Stores

Stripes LLC, a subsidiary of Susser Holdings Corporation announced it is partnering with Apache Corporation to add natural gas fueling dispensers at selected Stripes® convenience store locations.

Initially, compressed natural gas (CNG) fueling capability will be available at two Stripes locations in the Midland, Texas area.

Steve DeSutter, Stripes President and CEO Retail, said, “Adding natural gas to our conventional motor fuel products reinforces our mission to give Stripes customers what they want at a great price in our convenient store locations.

“We certainly see the role of natural gas in our energy future, and we are looking forward to participating as it evolves as a viable alternative transportation fuel. We plan to evaluate the results of our pilot project in West Texas, and if it is successful, we expect to gradually roll out CNG fueling capabilities in other Stripes markets,” DeSutter said.

Steve Farris, Apache’s Chairman and Chief Executive Officer, said: “Natural gas discovered and produced in the United States is a smart alternative to conventional fuels. It’s cheaper, cleaner, and abundant.

“We use it for our fleet cars and trucks with great results, lowering operating costs and reducing our environmental footprint. Partnering with Stripes provides our fleet and other CNG users with a more convenient fueling experience as well as access to their stores and other amenities.”

Today compressed natural gas is priced 30% to 40% lower than gasoline or diesel on a gallonequivalent basis, which means a big savings at the pump. According to industry experts, natural gas is kinder to the environment by reducing vehicle exhaust emissions, and because of our nation’s abundant natural gas reserves, it represents a more secure American energy supply. According to the Department of Energy Clean Cities Alternative Fuel Pricing Report and the Institute of Energy Research, known domestic resources could satisfy the nation’s needs for more than 100 years.

Apache to Add Gas Fuelling Dispensers at Stripes Stores, USA LNG World News.

Apache Inks Suriname PSC

Apache Corporation today signed a production sharing contract (PSC) with Suriname’s oil company Staatsolie for offshore block 53. located in the territorial waters of the South American country.

The contract, divided into exploration, development and production phases, is valid for approximately 30 years. The parties have agreed to a minimum working program for the exploration phase, which includes geological surveys and exploration drilling. Apache will take full responsibility for all costs during the exploration phase.

If a commercial find has been made and brought into production, Apache will receive reimbursement for such costs. The contract offers Staatsolie the opportunity for a stake in the development phase of up to 20 percent.

Block 53 is located at approximately 130 kilometers off the northwest coast of Paramaribo. The exploration period under the contract is divided into two phases with a combined investment of approximately US$230 million. The duration of the first phase is scheduled for three years with an optional second phase of two and a half years. In addition to a large 3D seismic survey, two wells will be drilled in the first phase with a third well to be drilled in the optional second phase. The production sharing contract explicitly deals with inspection, safety and the environment. There are also special provisions for employment of local cadre, training, social programs and the dismantling of facilities at the end of operations.

Apache Inks Suriname PSC| Offshore Energy Today.

Ecopetrol Updates on US GoM Parmer Propect

Ecopetrol S.A., through its affiliate Ecopetrol America Inc., provided the results of the Parmer Prospect, deepwater Gulf of Mexico.

The Parmer prospect #1 is located on Green Canyon 867, at a depth of 18,900 ft (5,760 meters), which allowed for several pressure readings and the collection of several fluid samples from Miocene sands. The data indicate a column of approximately 240 ft (73 meters) of net condensate-rich gas pay, as prospect as one of 40 ft (12 meters) of net oil pay. In the coming months, Ecopetrol and its partners will reprocess 3-D seismic data and determine a comprehensive delimitation and development plan according to these results.

The two Parmer leases (GC 823 and GC 867) are located within the Green Canyon protraction area, at a depth of approximately 4,200 ft (1,280 meters) underwater. Each covers an area of 5,760 acres (23.3 square kilometers) and is located approximately 143 miles (230 km) from Louisiana.

Ecopetrol America has a 30% interest in the Parmer Prospect. Its partners are Stone Energy, and Apache that is the prospect’s operator.

The Parmer discovery is Ecopetrol’s second deepwater discovery in the Gulf of Mexico, one of the regions with the highest oil hydrocarbon potential in the world.

The results are expected to assist in Ecopetrol S.A.’s strategy to attain a production level of 1.0 million clean barrels of oil equivalent a day by 2015, and 1.3 million clean barrels by 2020.

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