Blog Archives

Worldwide Field Development News May 4 – May 10, 2013

This week the SubseaIQ team added 7 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.

S. America – Brazil

BP to Sell Polvo Interest to HRT

May 9, 2013 – BP announced its intention to sell its 60% operated interest in the Polvo field to HRT Oil & Gas for $135 million in cash. Polvo is located in the southern part of the Campos Basin in block BM-C-8. Oil from the field is produced through a fixed drilling and production platform tied to an FPSO. The transaction is subject to regulatory approvals, but BP expects the deal to close in the second half of 2013. If approved, HRT will make the transition from a pure exploration company to a small oil producer. Currently, the field is producing at a rate of 13,000 bopd.

Project Details: Polvo

Petronas Gains Brazilian Interests Through OGX Agreement

May 8, 2013 – Brazilian exploration and production company OGX reached an agreement to sell 40% of its interest in Campos Basin blocks BM-C-39 and BM-C-40 to Petronas for a reported $850 million with an effective date of May 1. Based on the agreement, Petronas will acquire an interest in the Tubarao Martelo oil field with its 285 million barrels of recoverable resources along with the Inga and Pero prospects which are all located within the two blocks. Production from Tubarao Martelo is expected to begin by the end of the year. The transaction is subject to approval by Brazil’s National Petroleum, Natural Gas and Biofuels Agency and the Brazilian Council for Economic Defense.

Project Details: Tubarao Martelo (Waikiki)

Karoon Discovers Oil in Bilby Prospect

May 7, 2013 – Karoon announced its second oil discovery of the current 3-well exploration program in the Santos Basin. The company announced a 656-foot gross oil pay made up of interbedded sand and shale intervals encountered while drilling the Bilby-1 well in block S-M-1166. Wireline testing of the pay zone is currently underway. Once complete, drilling will continue to the planned depth of 15,003 feet where Karoon hopes to find hydrocarbon-bearing Santonian aged reserovoirs. Completion of the Bilby well will mark the end of the exploration program.

Project Details: Bilby

Asia – SouthEast

Nido and PNOC Prepare for Baragatan Wildcat

May 8, 2013 – Nido Petroleum and its partner, Philippine National Oil Company (PNOC), have approved a work plan and budget to spud a wildcat on the Baragatan prospect in SC 63 offshore Palawan Island. Nido will serve as technical operator while drilling operations are underway. The well will be drilled when a suitable jackup becomes available and all regulatory approvals are secured. Bragatan is estimated to hold mean risked recoverable oil volumes of 115 million barrels with an upside of 166 million barrels.

Project Details: Baragatan

Ensco Jackup to Drill Cua Lo Prospect off Vietnam

May 7, 2013 – The Ensco 107 (400′ ILC) is expected to drill an exploration well targeting the Cua Lo prospect in Block 105 off Vietnam in June 2013. Participants in the block include Eni (50%) serving as operator, Neon Energy (25%) and KrisEnergy (25%). Interpretation of 3D seismic over the area is ongoing and the joint venture is attempting to finalize the drilling location to maximize the exposure of multiple potential pay zones. A Prospective Resource Assessment of the block has confirmed best estimate gross unrisked prospective recoverable resources of 3.9 Tcf.

Project Details: Cua Lo

Bentara Appraisal Continues in Balai Cluster

May 6, 2013 – ROC Oil advised that drilling of the Bentara-3 well in the Balai Cluster RSC has commenced. The well is the fifth and final well in the Balia Cluster pre-development/appraisal drilling program. Once the well is complete the joint venture partners will review the data and determine the economic viability of the fields. If the decision is made to move forward, a formal field development plan will be submitted.

Project Details: Balai Cluster

N. America – US GOM

W&T Continues Main Pass 108 Development

May 10, 2013 – Total depth has been reached in the B-1 well in Main Pass 108 block in the US Gulf of Mexico. The well, drilled by the Hercules 202 (200′ MC), was designed to target a potential 1.8 MMboe in the Tex W-6 Sand. It is possible that B-1 will be completed and on production by July. At that point, the Hercules 202 will skid over and spud the B-2 well which is targeting similar reserves. If successful, the B-2 well could be on line by 4Q 2013.

Project Details: Main Pass 108

ExxonMobil and Statoil to Proceed with Julia Deepwater Development

May 8, 2013 – ExxonMobil and its partner, Statoil, have agreed to proceed with development of the Julia oil field in the US Gulf of Mexico. Julia was discovered in 2007 and is estimated to hold almost 6 BBbbls of oil. The $4 billion project is expected to start producing in 2016. Phase 1 of the development will be designed to produce 34,000 bopd from 6 subsea wells tied back to the Jack/St. Malo production facility. A development drilling program is planned to be kicked-off in 2014 in waters ranging from 4,000 to 8,700 feet. ExxonMobil, the field operator, and Statoil each hold a 50% stake in the field.

Project Details: Jack/St. Malo

Shell Makes Stones Investment Decision

May 8, 2013 – Royal Dutch Shell made its final investment decision on the Stones ultra-deepwater oil and gas development project in the US Gulf of Mexico. At 9,500 feet deep, Stones is expected to host the world’s deepest production facility. Announcement of the decision sets in motion the construction of a floating, production, storage and offloading (FPSO) vessel along with all of the associated subsea infrastructure. Initially, two developments well will be tied back to the FPSO with six additional wells to follow at a later date. Peak production for the first phase is expected to peak at 50,000 boed. The Stones reservoir is estimated to hold more than 2 BBboe.

Project Details: Stones

Marathon Development Continues off Louisiana Coast

May 6, 2013 – A fifth development well has been spud on the Apache-operated Marathon gas and condensate field in the Atchafalaya Bay off the coast of Louisiana. Marathon-4 is being drilled by the Parker 76-B (inland barge) in 8 feet of water and is targeting the Marathon formation at roughly 18,700 feet total depth. It is estimated to take 4-months to drill, complete and tie-in the well to existing production facilities. The Marathon field is operated by Apache who maintains a 48.75% interest. Petsec Energy holds 8% while private investors make up the remaining 43.25%.

N. America – Canadian Atlantic

Tecnhip Wins South White Rose Extension Contracts

May 8, 2013 – Husky Energy, operator of the White Rose field in Canada’s Jeanne d’Arc Basin, awarded a pair of development contracts associated with the South White Rose Extension project to Technip. The first contract is set to be carried out in 2013 and includes the supply and installation of gas injection flowlines, umbilicals and various subsea structures. Execution of the second contract will commence in 2014 and will involve the supply and installation of flowlines and subsea structures to support oil production and water injection. Husky has started a development drilling program and anticipates production start-up in 2014.

Project Details: White Rose

Europe – North Sea

Cairn Farms Into Spanish Point and Burren

May 8, 2013 – Cairn Energy announced it will farm-in to licenses FEL 2/04, FEL 4/08 and six adjacent licensing option blocks in the Porcupine Basin west of Ireland. Included in FEL 2/04 are the Spanish Point gas condensate discovery and the Burren oil discovery. The farm-in is subject to regulatory and partner approval. If approved, Cairn becomes the operator and acquires a 38% working interest by paying a pro-rated share of back costs for a consideration of $4.1 million and 63.33% of exploration and appraisal costs up to two wells, subject to a cap. An appraisal of Spanish Point is expected to be drilled in 2Q 2014.

Project Details: Spanish Point

Additional Production Well to be Drilled at Ettrick

May 7, 2013 – The UK Department of Energy and Climate Change (DECC) approved an addendum to the Ettrick Field Development Plan (FPD) that was submitted in November 2012. Partners in the field include operator Nexen Petroleum (79.73%), Dana Petroleum (12%) and Atlantic Petroleum (8.27%). Ettrick was discovered in 1981 and began producing in 2009. Approval of the addendum will allow an infill production well to be drilled near the crest of the field. The well should be tied into the Aoka Mizu FPSO near the end of 3Q 2013.

Project Details: Ettrick

Johan Sverdrup Appraisals Continue

May 7, 2013 – Appraisal well 16/2-21 has been spud by the Bredford Dolphin (mid-water semisub) in the Johan Sverdrup discovery on the Norwegian continental shelf. The central part of the discovery is being tested in an effort to establish the depth, quality and thickness of the Jurassic reservoir sequences. Information obtained from this well will aid in developing a drainage and development strategy which is expected to be announced at the end of the year. Well 16/2-21 is the first in a three-well appraisal campaign that will be carried out through 2013.

Project Details: Johan Sverdrup

Luno II Tests at 2K BOPD

May 7, 2013 – Lundin Petroleum reports the previously announced production test of the Luno II discovery well is complete. Well 16/4-6S was drilled by the Bredford Dolphin (mid-water semisub) and encountered 131 gross feet of oil pay. A flow rate of more than 2,000 bopd was achieved through a 48/64 inch choke with a gas to oil ration of 1,100 scf/bbl. Lundin estimates the Luno II structure to contain gross contingent resources of 25 to 120 MMboe along with 10 to 40 MMboe of prospective resources for he Luno II North segment.

Project Details: Luno II

S. America – Other & Carib.

Shell Spuds Third Well off French Guiana

May 8, 2013 – Shell’s exploration campaign off the coast of French Guiana continues with the recent spudding of well GM-ES-4 on the Cebus prospect in the Guyane Maritime Permit. Cebus is the third well in the four-well program. The well will test the hydrocarbon potential of a different fan system than that of the two previous wells that failed to find pay.

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Brazil: InterMoor Completes Conductors for Papa Terra Project

InterMoor, an Acteon company, has completed installation of the drilling and production conductors for the Papa Terra project, announced Global President Tom Fulton. Petrobras serves as the operator of the Papa Terra concession with a 62.5 percent interest; Chevron holds the remaining 37.5 percent interest.

InterMoor was responsible for the design, procurement, fabrication and installation of 15 conductors for the project. Fabricated at InterMoor’s 24-acre, Morgan City, La., facility, the conductors are 36 inches (91 centimeters) in diameter and 187 feet (57 meters) long.

InterMoor chartered the Skandi Skolten, DOF Subsea’s Construction Anchor Handling Vessel, and the installation barge with a customized conductor launch system. For conductor driving, InterMoor used MENCK’s MHU-270T DWS which included a deepwater hydraulic hammer capable of providing a driving energy of 270 kilojoules at a water depth of 3,281 feet (1000 meters) combined with MENCK’s girdle-type electro-hydraulic power pack and umbilical support system. Generating hydraulic power at depth, rather than at the surface, means no hydraulic hose, therefore minimalizing environmental impact and energy loss.

The conductors were installed in water depths of 3,937 feet (1,200 meters) in the southern Campos Basin off the coast of Brazil. The installation took place in April 2012. InterMoor’s conductor services optimize conductor design to meet project-specific load and fatigue requirements, and the unique patented installation method allows installation without the need of a construction vessel. A standard Anchor Handling Vessel is sufficient, leading to a more economical installation off the rig’s critical path.

“We are proud to have successfully completed this important installation for Petrobras and to be part of the first offshore tension-leg, wellhead platform in Brazil,” said Fulton. “Our collaboration with sister company MENCK proved to be an effective partnership, and InterMoor remains the only company worldwide to offer a full conductor installation service in deep water.”

“InterMoor has been developing its strength in the Brazil market through our office in Rio de Janeiro, and this project completion confirms the breadth of our capabilities in the region,” added John Riggs, Managing Director for InterMoor do Brasil.

Subsea World News – InterMoor Completes Conductors for Papa Terra Project (Brazil).

Recap: Worldwide Field Development News (Apr 20 – Apr 26, 2012)

Baker-Hughes-International-Offshore-Rigs-Up-by-11-USA

This week the SubseaIQ team added 8 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.

Australia
MEO Renews WA-360-P Permit
Apr 24, 2012 – Permit WA-360-P was renewed for an additional five years, and MEO’s participating interest officially increased to 62.5 percent. MEO reported that early interpretation of 3D data has confirmed the presence of the Maxwell prospect.
Eni Preps to Drill Heron Well
Apr 24, 2012 – Eni is preparing to drill the new Heron well – Heron South-1 – in permit NT/P68. The ENSCO 109 (350′ ILC) jackup is scheduled to arrive between mid-July and mid-August. Heron is located in NT/P68 permit in the Bonaparte Basin offshore Australia.
Project Details: Heron
Origin Connects Accommodation, Controls Module to Yolla A Platform
Apr 23, 2012 – Origin advises that the Yolla Mid-Life Enhancement project has reached a major milestone with the successful lifting and connection of the new accommodation and controls module to the Yolla A platform in Bass Strait. The operator commented that the installation of the accommodation module and associated controls equipment paves the way for further critical work on the construction program. This will include the lifting into place of the compression and condensate pump modules in coming weeks, followed by commissioning works to complete Stage 1 of the MLE project. The joint venture is targeting to restart production from Yolla in July, with project commissioning and completion during September. Evaluation of the program for Stage 2 of the BassGas MLE project continues. This will include the drilling of the Yolla 5 and Yolla 6 development wells and is currently expected to be undertaken during the summer of 2013/2014.
Project Details: BassGas Project
Origin Spuds Thistle-1 Well Offshore Australia
Apr 20, 2012 – Origin Energy has spud the Thistle-1 exploration well using the Stena Clyde (mid-water semisub). The planned total depth of the well is 8,396 feet (2,559 meters). Thistle is located in permit VIC/P43, about 10 miles (16 kilometers) north-northwest of the Geographe gas field.
Project Details: Thistle
S. America – Brazil
OGX Strikes Again in Shallow Waters of Campos Basin
Apr 26, 2012 – OGX has identified the presence of hydrocarbons in carbonate reservoirs in the Albian section of well 1-OGX-79-RJS in Block BM-C-39 in the shallow waters of the Campos Basin. A hydrocarbon column of approximately 492 feet (150 meters) was encountered in carbonate reservoirs of the Albian section with about 210 feet (64 meters) of net pay. The drilling of well OGX-79, known as Itacoatiara, was concluded, reaching a final depth of 6,660 feet (2,030 meters). OGX said that this accumulation, Itacoatiara (OGX-79), expands the Waikiki Complex, and together with the Tubarao Martelo field and Pero and Inga accumulations. Drill stem tests will be conducted to obtain more information on this accumulation. The proximity of Itacoatiara accumulation to the other Waikiki Complex accumulations, a distance of about 2 miles (4 kilometers), facilitates their integration and development, in addition to accelerating the monetization of the discovered resources. The ENSCO 5004 (mid-water semisub) drilled the well in a water depth of 335 feet (102 meters).
Project Details: Itacoatiara
OGX Declares Waikiki Oil Field Commercial
Apr 25, 2012 – OGX has declared the Waikiki oil field commercial, making it the company’s first commercial declaration of an offshore oil discovery. The Waikiki field will be renamed Tubarao Martelo or Hammerhead Shark. The development plan for the oil field is being finalized and will be submitted to ANP soon. OGX estimates the field holds recoverable reserves of 285 million barrels of oil with production expected to start in the second half of 2013.
Project Details: Waikiki
OGX Places Order for Wellhead Platforms
Apr 20, 2012 – OGX has placed an order for the charter and construction of the Wellhead platforms 3 and 4, in addition to the already placed order for platforms 1 and 2 with Techint. WHPs 1 and 2 are scheduled for delivery in the first half of 2014 and are expected to be assigned to the Waimea and Waikiki fields offshore Brazil.
Africa – West
Hess Drills Hickory North Offshore Ghana
Apr 26, 2012 – Hess is currently drilling the Hickory North-1 well in the DWT/CTP license offshore Ghana. Results from this well are expected within the end of the second quarter of 2012. Hess operates the 518,921 acre (2,100 square kilometer) license with a 35 percent working interest. The Stena DrillMax (UDW drillship) is drilling the well.
Project Details: Hickory North
Statoil Enters Ghana Deepwater License
Apr 26, 2012 – Statoil has farmed into the Deepwater Tano/Cape Three Points license offshore Ghana, which is operated by Hess. Two wells have already been drilled in the DWT/CTP license with a third well, Hickory North-1, underway. Results from this well are expected within the end of second quarter of this year. Hess operates the 518,921 acre (2,100 square kilometer) license with a 90 percent working interest and carries Ghana National Petroleum Corporations (GNPC) costs through the exploration phase. Statoil will assume a 35 percent working interest in the license with Hess retaining a 55 percent working interest and GNPC holding the remaining 10 percent carried interest.
Project Details: Paradise
Afren Encounters Water-Bearing Reservoirs in Nunya
Apr 25, 2012 – Afren has encountered thick and high-quality water-bearing reservoirs in the Nunya-1x exploration well in the Keta block offshore Ghana. The objective of the well was to explore a large four-way dip closed Upper Cretaceous prospect. The well intersected 502 feet (153 meters) of very good quality sandstone reservoirs, however they were interpreted as water bearing. The well was drilled with the Transocean Marianas (DW semisub) to a total depth of 14,928 feet (4,550 meters) in a water depth of 5,535 feet (1,687 meters).
Project Details: Nunya
Europe – North Sea
Noreco Comes Up Dry at Eik
Apr 26, 2012 – Noreco has completed the drilling of wildcat well 7228/1-1 on the Eik prospect in the Norwegian sector of the North Sea. The well was drilled to a vertical depth of 5,486 feet (1,672 meters) in a water depth of 1,155 feet (352 meters). It was terminated in the Kobbe formation in Middle Triassic. The well’s primary exploration target was to prove petroleum in Jurassic and Triassic reservoir rocks (the Realgrunnen subgroup). The secondary exploration target was to prove petroleum in the Snadd and Kobbe formations of Late and Middle Triassic Age. The well encountered reservoir rocks with reservoir quality as expected in both exploration targets and with weak traces of petroleum in the main target. Data acquisition has been carried out, but all levels are water wet. The well is dry.
Project Details: Eik
EnQuest Increases its Stake in Kraken
Apr 26, 2012 – EnQuest has further increased its interest in the Kraken oil discovery to 60 percent. It is buying 15 percent of the project from venture partner First Oil, paying between $90 million and $144 million. Kraken is currently estimated to contain 167 million barrels of oil, following an independent assessment in March. EnQuest is now the operator and majority stakeholder in the oil field. Nautical has a 25 percent stake in the venture, while First Oil retains 15 percent.
Project Details: Kraken
RWE Successfully Appraises Zidane
Apr 26, 2012 – RWE Dea has found additional gas in the Zidane field in the Norwegian sector of the North Sea. The operator said the gas discovery increases the total value of the license with preliminary estimates of the size of the discovery ranging between 4 and 13 Bcm of recoverable gas. The well encountered gas in a 459 feet (140 meter) column in the Fangst group, and hydrocarbon-bearing rocks in the secondary objectives. The well was drilled to a total vertical depth of 14,875 feet (4,534 meters) below the sea surface and terminated in the Early Jurassic Tilje formation. Water depth of the site is 1,309 feet (399 meters). RWE Dea plans to analyze the well results and move into the next phase of field development.
Project Details: Zidane
Centrica to Drill in PL 477
Apr 25, 2012 – The Norwegian Petroleum Directorate has granted Centrica Resources a drilling permit for wellbore 6506/11-9 to be drilled by the West Alpha (mid-water semisub). The drilling program for wellbore 6506/11-9 S relates to the drilling of a wildcat well in Production License 477. This is the first well to be drilled in the license. Centrica Resources operates the license with a 40 percent stake; while Faroe holds 30 percent; and Suncor Energy holds 30 percent.
EnQuest to Appraise Kildrummy in 2012
Apr 25, 2012 – The Kildrummy discovery is estimated to contain 40 MMboe of original oil-in-place in excellent reservoir sands. EnQuest, the operator, plans to drill an appraisal well in 2012.
PSA Grants Wintershall Consent to Drill
Apr 25, 2012 – Wintershall has received consent to carry out exploratory drilling of well 33/6-4 with the Borgland Dolphin (mid-water semisub). Well 33/6-4 lies in Production License 370 in the northern part of the North Sea in a water depth of 1,076 feet (328 meters). Drilling operations are set to begin in mid-May and last about 46 days.
EnQuest Mulls Crawford Development Options
Apr 25, 2012 – EnQuest reported that it is evaluating development options for the Crawford field and expects to make a decision during 2012.
Project Details: Crawford
Premier Gets Govt Nod for Solan Development
Apr 25, 2012 – The Department of Energy and Climate Change has approved Premier’s Field Development Plan for the Solan field in the UK sector of the North Sea. The Premier-operated Solan field is expected to produce approximately 40 million barrels of oil with an estimated initial production rate of 24,000 bopd commencing in the fourth quarter of 2014. This is a significant project which will entail the drilling of four subsea wells (two producers and two water injectors) tied-back to a processing deck supported by a jacket. It is planned that the facilities will not be permanently manned after one year of operations. Oil will be stored in a subsea tank prior to being offloaded to shuttle tankers. Premier has entered into an agreement with Awilco Drilling for the provision of the WilPhoenix (mid-water semisub) for Solan drilling commencing in the second quarter of 2013. It is expected that the packages for the procurement and fabrication of the topsides and jacket will be awarded shortly to Burntisland Fabricators while the contract for the installation of the jacket, topsides and subsea tank has been awarded to Heerema.
Project Details: Solan
Buzzard Field Remains Shut-In
Apr 24, 2012 – Nexen’s Buzzard oil field remains shut-in after an incident that occurred on Saturday, April 21. The operator said repairs are on-going and production is expected to ramp up soon. A bearing failed Saturday morning on one of the gas compressors on the fourth platform.
Project Details: Buzzard
Islay Comes Online
Apr 24, 2012 – Total has commenced production at its Islay gas field in the Norwegian sector of the North Sea. Lying in a water depth of 395 feet (120 meters), the field has estimated reserves of nearly 17 million barrels of oil equivalent and has already reached its expected production of 15,000 boepd. Islay’s single well is tied-back to the Alwyn North platform via existing subsea infrastructure.
Project Details: Greater Alwyn
RWE Dea Finds Gas near Heidrun Field
Apr 24, 2012 – The Norwegian Petroleum Directorate reported that a gas discovery of up to 13 Bcm of recoverable gas has been made near the Heidrun field through well 6507/7-15 S in the Norwegian Sea. The primary exploration target for the well was to prove petroleum in Middle Jurassic reservoir rocks in the Fangst group. The secondary exploration target was to prove petroleum in reservoir rocks from the Early Cretaceous Age in the Lange formation and Early Jurassic Age in the Tilje formation. The well was not formation-tested, but extensive data acquisition and sampling have been carried out which will provide valuable information for future production of the gas discoveries in the production license. The West Alpha (MW semisub) performed the drilling operations in a water depth of 1,300 feet (399 meters). The well will now be permanently plugged and abandoned.
Project Details: Heidrun
Agora O&G Increases Tybalt Stake
Apr 24, 2012 – Valiant Petroleum has signed a farm-out agreement with Agora Oil and Gas for the Tybalt appraisal well in the UK sector of the North Sea. Agora will increase its interest in Tybalt to 40 percent in return for a partial cost carry. Valiant will remain as operator with a 60 percent interest.
Project Details: Tybalt
Aker Solutions Wins Svalin Umbilical Contract
Apr 23, 2012 – Subsea 7 awarded Aker Solutions a contract for the design and fabrication of a control umbilical for the Svalin C project in the Norwegian sector of the North Sea. The scope of work includes a four-mile-long (six-kilometer-long) control umbilical, connectors, engineering and project management. In December 2011, Statoil awarded Aker Solutions the contract for engineering, procurement and construction of the subsea production system for the Svalin project. The Svalin umbilical will be delivered in 2Q 2013. Svalin is a fast-track oil field project located in the middle part of the North Sea, about five miles (eight kilometers) southwest of the Grane field and 115 miles (185 kilometers) west of Haugesund. The water depth is approximately 394 feet (120 meters).
Penspen to Provide Detailed Design Services for Stella Development
Apr 23, 2012 – Penspen Group has been contracted to provide Detailed Design services to EPC Offshore Limited in support of Ithaca Energy’s Greater Stella Area development. The contract follows on from Penspen’s recent work for EPC Offshore on the FEED for the GSA Development. Under the terms of agreement, Penspen will provide Detailed Design services for the Phase 1 subsea structures and associated tie-in infrastructure, consisting of the Stella Main Drill Center manifold, northern drill center manifold, export riser base, oil and gas export tee assembles. Ithaca Energy has contracted EPC Offshore to provide project management of the subsea and pipelines elements of the development last year, which the company then contracted Penspen. The project is slated to commence production in 2014.
Project Details: Stella/Harrier
TAQA to Acquire Operatorship of Cladhan
Apr 20, 2012 – TAQA Bratani will acquire a 13.5 percent stake in the North Cladhan area from Sterling Resources for an initial consideration of $47 million including an allocation to tax allowances. The initial consideration will be satisfied in three installments: $22.3 million paid upon completion; $4.3 million paid on achievement of certain milestones expected in 2012; and the balance either as a carry of part of Sterling’s development expenditure in respect of Cladhan or, subject to satisfaction of certain conditions linked to project approval, in whole or in part (at Sterling’s election) in cash up to a maximum payment of $20.4 million. In addition, Sterling could receive a contingent consideration after first production linked to reserves upside up to a maximum additional payment of $10 million if proven plus probable reserves are certified in the range of 30 million barrels to 45 million barrels for 100 percent of the field. TAQA will assume operatorship on or shortly after approval of a final Field Development Plan expected for submission by 3Q 2012. Once this transaction is completed and approved, the new equity positions will be Sterling Resources (26.4 percent), TAQA (40.1 percent) and Wintershall (33.5 percent).
Project Details: Cladhan
S. America – Other & Carib.
Boders & Southern Find Gas in Darwin East
Apr 23, 2012 – Borders & Southern has made a gas discovery in the 61/17-1 well on the Darwin East prospect in the South Falkland Basin. The well, reaching a total depth of 16,000 feet (4,876 meters), encountered good hydrocarbon shows from 15,200 to 15,780 feet (4,633 to 4,810 meters). The main reservoir interval comprises good quality massive sandstone and is found to be 277 feet (84.5 meters) thick with net pay of 222 feet (67.8 meters). Fluid samples from the reservoir have been recovered and will be brought back to the UK for analysis. The operator will complete wireline logging operations, plug and abandon the well, then move the Leiv Eiriksson rig (DW semisub) on to the Stebbing prospect.
Project Details: Darwin East
Rockhopper Boosts Success Rates at Sea Lion
Apr 20, 2012 – Rockhopper Exploration has received a 90 percent chance of success in developing its Sea Lion field off the Falkland Islands, according to a report conducted by Gaffney, Cline & Associates. The report also gave other discoveries adjacent to Sea Lion, including Casper, Casper South and Beverly, a 75 percent chance of successful development. In its report, GCA gave a best estimate of gross contingent resources at Sea Lion and the adjacent discoveries of 385.9 million barrels, with 355.6 million barrels net to Rockhopper. The CPR also reports on a development concept for the Sea Lion field using an FPSO. The principal assumptions of the development concept include first oil occurring in 2016, with a plateau production rate of 70,000 barrels per day for the first three years of full production.
Project Details: Sea Lion
N. America – Canadian Atlantic
Kiewit-Kvaerner Contractors to Perform FEED on Hebron Development
Apr 25, 2012 – Kiewit-Kvaerner Contractors has been authorized by ExxonMobil Canada Properties to proceed with the Hebron Project gravity based structure (GBS) project in Newfoundland and Labrador, Canada. The authorization follows substantial completion of front-end engineering and design (FEED) services and awards the next phase, which includes detailed engineering, procurement and construction (EPC) related services.
Project Details: Hebron
Black Sea
TPAO Secures Rig for Istranca-1 Well
Apr 26, 2012 – TPAO, the national oil and gas company of Turkey, awarded GSP Jupiter a contract for offshore drilling services. The jackup will drill the Istranca-1 well, plus one optional well, on Block 3920 in the Turkish sector of the Black Sea.
Project Details: Istranca
Asia – Far East
Technip to Install Liwan Pipeline
Apr 23, 2012 – Technip received a pipeline installation contract for the Liwan 3-1 shallow water project in the China Sea. With a total length of 160 miles (260 kilometers), the pipeline will link the Liwan gas platform to China National Offshore Oil Corporation’s (CNOOC) Gaolan gas plant. Technip’s scope covers the shallow water portion of the development project. It includes the installation of 100 miles (160 kilometers) of a 30-inch export oil/gas two-phase pipeline from the Liwan gas platform to a water depth of approximately 230 feet (70 meters). The contract is scheduled for completion by the end of 2012.
Project Details: Liwan
CNOOC Hits HPHT Gas Discovery in South China Sea
Apr 20, 2012 – CNOOC Limited has made a gas discovery in Dongfang (DF) 13-2 in the high-temperature and high-pressure gas reservoir in Yinggehai, following the successful appraisal of the middle formation of the DF 13-1 gas field in 2010. The new discovery is located in the north of central sag in the Yinggehai Basin of Western South China Sea. The discovery well, DF13-2-1, encountered gas pay zones with total thickness of 115 feet (35 meters) in a water depth of 213 feet (65 meters) and a well depth of 10,394 feet (3,168 meters). During the test period, the well flowed at an average rate of 42.4 MMcf/d.
Project Details: Dongfang
Asia – SouthEast
Santos to Submit Peluang FID in 2012
Apr 25, 2012 – Santos Limited expects to submit a Final Investment Decision on the Peluang field in the Madura Offshore PSC in the second half of 2012 with production commencing in the second half of 2013. The Peluang field, holding about 45 Bcf, will be tied-back to the nearby Maleo field. The company currently produces 110 MMcf/d of natural gas from Maleo.
BG Group Begins Production at Greater Bongkot South
Apr 23, 2012 – BG Group has commenced production from the Greater Bongkot South field in the Gulf of Thailand, about 125 miles (200 kilometers) east of the city of Songkhola in southern Thailand. The development has new standalone facilities with processing capacity of 350 MMcf/d of gas and 15,000 barrels of condensate per day. BG said that once plateau production is achieved, Greater Bongkot South will deliver around 14,000 barrels of oil equivalent per day. Production is expected to reach plateau in the second quarter of 2012. Gas from the project is exported via a new-build spur line while condensate is exported to a floating, storage and offloading vessel at Bongkot North.

Brazil: Oil Leak Found at Petrobras’ Roncador Field

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Brazil’s state controlled oil company, Petrobras, announces that on Sunday afternoon, April 8, a subsea inspection discovered seepage of oil coming from its Roncador oil field’s seabed in Campos basin.

The inspection was carried out using a Remotely Operate Vehicle (ROV), at the field located approximately 120 km off the coast of from the coast of São Tomé Cape, Rio de Janeiro State, Brazil, near the Chevron operated Frade field where two seeps – one in November, 2011 and the second in early March, 2012, occurred.

According to the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP), the ROV was submerged approximately 500 meters to the East from the Frade field border line, where it collected oil samples which should help with identifying the source of the leak.

So far, no oil slick can be seen on the surface of the sea.

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BP Acquires New Offshore Acreage in Brazil

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BP announced today that the Brazilian National Petroleum Agency (ANP) has approved its farm-in to four deepwater exploration and production concessions operated by Petróleo Brasileiro S.A. (Petrobras) in the Brazilian equatorial margin.

BP Energy do Brasil Ltda. is taking a 40 per cent interest in each of the blocks, located in the Barreirinhas and Ceará basins, from Petrobras.

The move will give BP access to four new concession blocks in Brazil: BM-BAR-3 and BM-BAR-5 in the Barreirinhas basin, and BM-CE-1 and BM-CE-2 in the Ceará basin. Together the blocks cover a total area of 2,113 square kilometres.

“BP is building on our strengths in exploration and the deepwater and these four new blocks bring exciting new exploration opportunities, adding to the already significant position we hold in Brazil,” said Bob Dudley, BP group chief executive. “I am pleased that this also deepens our strong relationship with Petrobras, one of the world’s leading deepwater operators.”

Guillermo Quintero, BP Brazil President added: “Over the past year, in addition to acquiring ten upstream concessions from Devon Energy in May, we have made major investments in biofuels and expanded our aviation business in Brazil. I am delighted with this continued growth of our presence in Brazil.”

Following the farm-in, BP will hold concessions in 14 blocks in Brazil, operating six. BP will be a partner with Petrobras in nine of these concession areas: the Xerelete field, BM-C-34 and BM-C-35 (in the Campos basin); BT-PN-2 and BT-PN-3 (in the Parnaíba basin); BM-BAR-3 and BM-BAR-5 (in the Barreirinhas basin) and BM-CE-1 and BM-CE-2 (in Ceará basin).

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