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Corpus Christi, TX – Analysis: From Big Foot to Bluto, Gulf of Mexico set for record oil supply surge
(Reuters) – The Gulf of Mexico, stung by the worst offshore oil spill in U.S. history in 2010 and then overshadowed by the onshore fracking boom, is on the verge of its biggest supply surge ever, adding to the American oil renaissance.
Over the next three years, the Gulf is poised to deliver a slug of more than 700,000 barrels per day of new crude, reversing a decline in production and potentially rivaling shale hot spots like Texas’s Eagle Ford formation in terms of growth.
The revival began this summer, when Royal Dutch Shell‘s (RDSa.L) 100,000 barrels per day Olympus platform was towed out to sea 130 miles south of New Orleans – the first of seven new ultra-modern systems starting up through 2016. It weighs 120,000 tons, more than 200 Boeing 777 jumbo jets.
The Gulf Of Mexico’s growth will bolster the United States’ emerging role as the world’s top oil and gas producer, a trend led by advances in hydraulic fracturing and horizontal drilling that unlock hydrocarbons from tight rock reservoirs in places like North Dakota’s Bakken and the Permian of West Texas.
Rising domestic production and the start of natural gas exports may transform the economy and realign geopolitics as U.S. reliance on foreign oil declines.
The resurgence in the Gulf is occurring even though the U.S. government imposed stringent safety and environmental rules after BP Plc‘s (BP.L) Macondo spill. Foreign countries from Brazil to Angola have also aggressively courted Big Oil to invest in developing their offshore fields. And the shale boom has diverted billions of dollars in capital onshore.
The deepwater Gulf, considered the most technically challenging offshore oil patch, remains alluring even as other areas struggle. Brazil attracted only a single bid this month for its once-touted Libra field, yet global companies still compete fiercely for the right to drill in the Gulf.
“A barrel of discovered oil in the Gulf of Mexico is difficult to beat for value anywhere else, even with the increased costs of doing business,” said Jez Averty, senior vice president of North American exploration at Norway’s Statoil (STL.OL).
Huge finds over the last decade – in what engineers call “elephant fields” that can produce for 25 years or more – are lifting growth in a basin some companies once abandoned, fearing it was drying up or its resources were beyond reach.
“This is still one of the premier oil and gas regions in the world and that’s why we’ve never left,” said Steve Thurston, vice president of Chevron Corp‘s (CVX.N) North American exploration and production division.
Even after decades of production in the Gulf, government estimates have shown that 48 billion barrels could still be recovered.
LOWER TERTIARY
The area of the Gulf of Mexico where most of the new infrastructure will start up is in an ancient geological trend in its deepest waters 200 miles or more from shore known as the Lower Tertiary, estimated to hold 15 billion barrels of crude.
Appraisals in the Gulf’s Lower Tertiary have shown fields that could have half a billion barrels or more of oil, like Exxon Mobil Corp’s (XOM.N) Hadrian, estimated to hold up to 700 million barrels, or Anadarko Petroleum Corp‘s (APC.N) Shenandoah, which tests this year showed could hold up to three times more than initial estimates of 300 million barrels.
The potential bounty of massive deposits that can produce for a quarter century or more is what keeps players coming even though a single well that bores tens of thousands of feet through thick salt and rock to strike oil – or a dry hole – can cost $130 million or more.
By contrast, an onshore well costs about $8 million to drill – but may only produce a trickle of oil for a few years.
Chevron’s Jack/St. Malo project, which will tie a platform to the ocean floor 7,000 feet below the surface and tap a reservoir 26,000 feet deep, costs $7.5 billion.
It may become the biggest such platform in the world after shipping out later this year, with the ability to double its initial 170,000 bpd capacity. It will be followed next year by Chevron’s second new platform, Big Foot, to be secured to the sea floor by 16 miles of interlocking metal strands, or tendons.
In addition to projects by Anadarko Petroleum Corp (APC.N) and Williams Cos (WMB.N), private equity firm Blackstone Energy Partners will join the game. In 2015, Blackstone’s partner LLOG Exploration aims to start up Delta House – named for the boisterous fraternity in the film “Animal House” – less than 10 miles from BP’s plugged Macondo well.
Delta House will pump oil from the Marmalard and Bluto fields, namesakes of characters in the movie.
CLEAR AND STABLE RULES
Three years ago, some analysts thought the post-Macondo Gulf would have fewer players as stricter regulations and higher operating chilled activity, particularly for smaller companies.
Producers must now provide more detailed plans for offshore operations, submit to more frequent inspections and prove they have access to a rapid-response system to cap a gushing well. More than 4 million barrels of oil poured into the sea for 87 days after the Macondo well blowout killed 11 men.
High costs have given some companies pause. Even as BP began appraisal drilling at its self-described “giant” Tiber field this August, a month later it canceled contracts to build a second platform at its Mad Dog field. BP says it wants to move forward on Mad Dog 2 “with the right plan.”
Many others are pressing ahead full steam.
“It hasn’t scared us away,” John Hollowell, Shell’s top deepwater executive for Shell Upstream Americas said, noting deepwater is one-third of Shell’s growth platform, alongside natural gas and unconventional areas like onshore shales.
Hess Corp (HES.N) Chief Executive John Hess has told analysts the company, which operates one oil and gas platform in the Gulf with another on the way next year, also aims to increase its exploration in the deep waters.
“It’s a core area for us and now that Macondo is behind the industry, it is an area where we intend to start investing more, assuming we get the returns that we expect,” he said.
Companies say the Gulf is still the best deepwater basin to set up shop – with high profit margins, reasonable per-barrel costs and a predictable legal and regulatory system.
Operators can bring in their own workers rather than employ a certain number from the host country, as they do in Brazil – where just finding enough qualified workers is a hurdle.
Gulf operators also do not have to brace themselves for sudden changes in royalty requirements or possibly be blocked from bidding on drilling rights, as has happened in Angola.
To get in the Gulf of Mexico’s door, they put in the highest bid when the government leases drilling rights.
“All you have to do is show up at the lease sale,” Statoil’s Averty said.
(Editing by Eric Walsh)
Gulf of Mexico: Halliburton’s ESTMZ System Used on Chevron’s Three Wells
Halliburton announced today the successful completion of three wells in the Deep Water Gulf of Mexico utilizing Halliburton’s Enhanced Single-Trip Multizone (ESTMZ™) FracPac™ System.
ESTMZ™ downhole tool system enables the operator to stimulate and gravel pack multiple production zones in a single trip. Designed for use in Dee Water and Ultra-Deep Water offshore completions, the ESTMZ™ system allows the highest treating rate with the greatest volume of proppant in the industry.
Halliburton developed the multi-zone completion technology in collaboration with Chevron U.S.A. Inc. The two companies conducted numerous system integration tests and two field trials to prove the technology.
The time savings realized for each of the three Chevron-operated wells completed with the ESTMZ™ system averaged 18 days, equating to approximately $22 million.
“ESTMZ™ system allows more reservoir to be stimulated in a shorter amount of time, thus increasing efficiency, reliability and production, which is key to the success of the Lower Tertiary,” said Ron Shuman, Senior Vice President of Halliburton’s Southern and Gulf of Mexico regions.
“In addition, this system allows us to deliver a very aggressive stimulation with rates up to 45 barrels per minute and volumes greater than 400,000 pounds of 16/30 high strength proppant. We deliver this with weighted frac fluid and 10,000 horsepower per interval for up to five intervals, providing a total cumulative proppant volume of greater than two million pounds per well with one service tool. Having to make multiple runs in and out of the wellbore equates to a large expense for operators. The ‘single trip’ element of this system provides significant time savings with improved reliability and better asset optimization,” Shuman concluded.
Providing wellbore assurance through various critical operations such as wellbore cleanout, completion services, pumping and fluids also contributed to the success of these three wells. This integrated approach in planning and execution mitigated risks while promoting efficiency and providing an optimal conduit for the reservoir to flow.
The proven reliability of Halliburton’s ESTMZ™ tool system and the continual evolution of these smart technologies are critical to the changing landscape in the Gulf of Mexico. To date, Halliburton has successfully deployed nearly 20 ESTMZ™ systems around the globe including the Asia Pacific region.
Halliburton’s ESTMZ System Used on Chevron’s Three Gulf of Mexico Wells| Offshore Energy Today.
Chevron Strikes Oil at Coronado Prospect in U.S. Gulf of Mexico
Chevron Corporation has announced an oil discovery at the Coronado prospect in the deepwater U.S. Gulf of Mexico.
The Walker Ridge Block 98 Well No. 1 encountered more than 400 feet (122 m) of net pay. The well is located approximately 190 miles (308 km) off the Louisiana coast in 6,127 feet (1,868 m) of water and was drilled to a depth of 31,866 feet (9,713 m).
“The Coronado discovery demonstrates how Chevron is achieving its strategy of superior exploration performance,” said George Kirkland, vice chairman, Chevron Corporation. “The discovery adds to our global portfolio of high-quality opportunities for future growth.”
“The Coronado discovery continues our string of exploration successes in the Lower Tertiary Trend, where Chevron is advancing multiple projects,” said Gary Luquette, president, Chevron North America Exploration and Production Company. “It also highlights the importance of the deepwater Gulf of Mexico as a source of domestic energy for the United States.”
The well results are still being evaluated, and additional work is needed to determine the extent of the resource. Chevron, with a 40 percent working interest in the prospect, is the operator of the Coronado discovery well. Other owners are ConocoPhillips with 35 percent, a subsidiary of Anadarko Petroleum Corporation with 15 percent and Venari Offshore LLC with 10 percent.
Chevron is one of the largest leaseholders in the Gulf of Mexico and is currently constructing the Jack/St. Malo and Big Foot projects, which are scheduled to begin production in 2014.The company is also conducting appraisal activities at its previously announced Buckskin and Moccasin discoveries, also in the Lower Tertiary Trend.
Chevron Strikes Oil at Coronado Prospect in U.S. Gulf of Mexico| Offshore Energy Today.
Gulf of Mexico: Chevron Announces Successful Production Well Test on St. Malo PS003 well
Chevron Corporation today announced that it had conducted a successful production test on the St. Malo PS003 well in the prolific Lower Tertiary trend in the deepwater Gulf of Mexico. Oil flow rates, though limited by testing equipment constraints, exceeded 13,000 barrels of oil per day.
The test, in Walker Ridge Block 678, targeted Lower Tertiary sands more than 20,000 feet (6,096 m) under the sea floor and was conducted during August and September 2012. This is the first development well in the St. Malo field, which is being jointly developed with the Jack field.
“The well test is a further demonstration of the potential of the Lower Tertiary and highlights our leadership in developing deepwater resources globally,” said Chevron Vice Chairman George Kirkland.
“The results of this production test further confirm the significance of the St. Malo field,” said Gary Luquette, president, Chevron North America Exploration and Production Company. “The jointly developed Jack and St. Malo fields are expected to provide a major step-up in Chevron’s production from 2014 and produce domestic energy for decades to come.”
The Jack and St. Malo fields are located within 25 miles (40 km) of each other and are being jointly developed with a host floating production unit located between the two fields in 7,000 feet (2,134 m) of water, approximately 280 miles (450 km) south of New Orleans, Louisiana. The facility is planned to have a design capacity of 177,000 barrels of oil-equivalent per day to accommodate production from the Jack/St. Malo development, which is estimated at a maximum total daily rate of 94,000 barrels of oil-equivalent, plus production from third-party tiebacks. Total project costs for the initial phase of the development are estimated at $7.5 billion.
Chevron has a working interest of 51 percent in the St. Malo field. Other owners of the St. Malo field are Petrobras (25 percent), Statoil (21.5 percent), ExxonMobil (1.25 percent) and ENI (1.25 percent).
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- InterMoor Completes IRIS Installation and Recovery for Apache in Gulf of Mexico, USA (mb50.wordpress.com)
SDLP – Seadrill Partners files plans for $225 mln IPO
Seadrill Partners LLC filed plans for an initial public offering estimated at up to $225 million.
The limited liability company was formed by Norwegian oil-services company Seadrill Ltd. (SDRL, SDRL.OS) to own, operate and acquire offshore drilling rigs.
Seadrill Partners said it will use the proceeds to buy from Seadrill Ltd. interests in Seadrill Operating LP and Seadrill Capricorn Holdings LLC, which own and operate Seadrill Partners’s offshore drilling rigs.
After the planned offering, Seadrill Partners said it will own a 30% stake in Seadrill Operating and a 51% stake in Seadrill Capricorn Holdings.
The company said its drilling rigs are under long-term contracts with major oil companies, such as Chevron Corp. (CVX), Total S.A. (TOT, FP.FR), BP PLC (BP, BP.LN) and Exxon Mobil Corp. (XOM), with an average remaining term of 3.1 years as of June 30, according to its regulatory filing.
Seadrill Partners said its profit rose 5.6% to $93.9 million as revenue increased 11% to $275.2 million for the six months ended June 30.
The company has applied to list its common units on the New York Stock Exchange under the symbol SDLP.
Seadrill Ltd. reported last month its second-quarter earnings fell 14% as higher operating expenses masked the company’s 13% rise in revenue.
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USA: EPL Acquires Shallow Water GoM Assets from Hilcorp for USD 550 Mln
EPL Oil & Gas, Inc. (EPL or the Company) announced it has executed a purchase and sale agreement to acquire certain shallow water Gulf of Mexico (GOM) shelf oil and natural gas interests from Hilcorp Energy GOM Holdings, LLC (Hilcorp) for $550 million.
The assets are currently producing approximately 10,000 barrels of oil equivalent (boe) per day, about 50% of which are oil. Estimated proved reserves as of the July 1, 2012 economic effective date totaled approximately 36.3 million boe, 54% of which are oil. The properties include three fields that Hilcorp had acquired from Chevron Corporation in Ship Shoal Block 208, South Pass 78, and South Marsh Island 239, which are all on the Central GOM shelf in the vicinity of EPL’s existing core field areas. These three fields account for 64% of the current proved reserves, and approximately 82% of the total proved acquisition PV10 value estimated at $626 million using strip prices as of August 31, 2012 (see discussion of PV10 in appendix). The currently estimated asset retirement obligation to be assumed by EPL in the acquisition is expected to total approximately $120 million.
Gary Hanna, EPL’s President and CEO commented, “This is the fourth acquisition we have made since 2011, and it is the most transformational. This accretive acquisition provides scale and diversification while continuing to focus the value of our Company in the Central gulf, which is the most prolific, oil bearing region of the GOM. These underdeveloped, legacy Chevron assets allow us to leverage our proven strengths as an efficient exploiter of shallow water shelf assets.
The high operating control of 95% will permit us timely access to the development opportunities that exist on these properties. There are already over 90 low-risk, oil-rich shallow behind pipe and drilling opportunities, as well as numerous optimization projects that our operational teams will vigorously pursue. Meanwhile, as our successful strategy has demonstrated with prior acquisitions, we will apply our proven regional knowledge and technical skills to identify and exploit the upside potential of these acquired properties in short order.”
Gary Hanna continued, “This transaction nearly doubles our proved reserves to approximately 74 million boe. Additionally, it drives our production above 20,000 boe per day, supports EBITDAX generation in 2013 in the range of $450 million to $500 million and is very accretive to our key operational and valuation metrics. This transformational acquisition fits all of our acquisition criteria.”
In conjunction with signing the purchase and sale agreement, EPL will add to its crude oil and natural gas hedge positions to provide downside protection. The Company is planning to hedge 80% of the forecasted proved producing oil and natural gas production of the assets being acquired for years 2013 through 2015, with 2013 hedges scheduled to be secured early this week representing approximately 80% of forecasted proved production. Approximately 50% of EPL’s existing oil production is hedged for 2013.
In addition to utilizing cash on hand to finance the purchase, EPL has obtained committed financing from Bank of Montreal to complete the transaction, including an increase in its senior secured credit facility from $250 million to $750 million. The borrowing base under this expanded credit facility has been increased from $200 million to $450 million in conjunction with the acquisition. Additionally, Bank of Montreal and BMO Capital Markets have provided the Company a commitment for $200 million in the form of a senior unsecured bridge loan, which is expected to remain unutilized as the Company plans to access the high yield market for permanent financing before the anticipated closing date in late October.
The purchase is subject to customary closing conditions and adjustments. Hilcorp has indicated to EPL that this sale represents their exit from the GOM shelf. The economic effective date is July 1, 2012, with closing expected by October 31, 2012. EPL has submitted a 10 percent cash deposit to Hilcorp under the terms of the purchase agreement.
USA: EPL Acquires Shallow Water GoM Assets from Hilcorp for USD 550 Mln| Offshore Energy Today.
- Energy Partners (EPL) Changes Name to EPL Oil & Gas (streetinsider.com)
BMT to Provide EFMS Services for Chevron’s Big Foot TLP (USA)
Chevron has awarded a contract to BMT Scientific Marine Services Inc (BMT) to provide an Environmental and Facilities Monitoring System (EFMS) for the Chevron operated Big Foot Tension Leg Platform (TLP) at the Big Foot field in the U.S. Gulf of Mexico.
“The EFMS monitors, logs and displays data in real-time on the local environment and facility motions. It archives the data for assessing the TLP’s integrity over time and interfaces with the facility’s other platform control systems,” explains BMT in a press release.
The Big Foot EFMS will measure factors such as wind speed and direction, platform position, wave frequency and high frequency platform motions, air gap, surface currents and draft.
A TLP is a vertically moored floating structure suited for use in a wide range of water depths.
The Big Foot TLP will be Chevron’s sixth operated facility in the deepwater Gulf of Mexico and will be located approximately 225 miles south of New Orleans. The TLP will include an on-board drilling rig and will have a production capacity of 75,000 barrels of oil and 25 million cubic feet of natural gas per day. Installation of the TLP is scheduled to begin in November 2012 and first oil is expected in 2014.
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Recap: Worldwide Field Development News Jul 27 – Aug 2, 2012
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.
N. America – US GOM
McDermott to Deliver New Junction Facilities for GOM
Aug 2, 2012 – McDermott has received a contract by the Discovery system for offshore facilities in the Gulf of Mexico. The project is to deliver new junction facilities for Discovery’s Keathley Canyon connector pipeline system with a 3,300-ton, four-leg platform in 350 feet (107 meters) of water. The unmanned platform will provide pipeline junction facilities for incoming deepwater pipelines from the Hadrian South and Lucius fields and four outgoing shallow-water pipelines to shore. Fabrication is expected to commence this summer in Louisiana with offshore installation commencing in 3Q2013.
Project Details: Lucius
Apache Continues to Drill Parmer Appraisal Well
Aug 1, 2012 – Stone Energy reported that the Parmer appraisal well, which was spud during the second quarter of 2012, is expected to reach total depth in the third quarter of 2012.
Project Details: Parmer
Eni Gearing Up to Spud Phinisi in 2013
Aug 1, 2012 – Eni plans to commence drilling on the deepwater Phinisi well in the first quarter of 2013 using the Deepwater Pathfinder (UDW drillship). The water depth of the site is 6,837 feet (2,084 meters) and is targeting oil and gas.
Project Details: Phinis
MidEast – Persian Gulf
CNPC Pulls Out of Iran’s South Pars Project
Jul 30, 2012 – China National Petroleum has pulled out of developing Phase 11 of Iran’s offshore South Pars gas field, reported Dow Jones newswires. The firm, which had delayed the project for more than 1,130 days, has already withdrawn all of its workers from the southern Iranian port city of Assaluyeh, the onshore part of South Pars gas field in the Persian Gulf, Mehr said, citing information from the oil ministry.
Project Details: South Pars
Asia – SouthEast
ExxonMobil Finds More Pay Offshore Vietnam
Jul 30, 2012 – ExxonMobil has encountered additional hydrocarbons in its third well offshore Da Nang, Vietnam. The well 118-CVX-3X, on the Ca Voi Xanh field, was drilled by the Seadrill West Aquarius (UDW semisub). The well has been plugged, and the rig has left the site.
Lundin Drills Duster in Tiga Papan Well
Jul 27, 2012 – Lundin Petroleum has completed the Tiga Papan-5 well in Blocks SB307 and SB308 offshore Sabah, Malaysia. The Tiga Papan-5 well targeted an un-appraised fault block of mid-Miocene aged sands at the Tiga Papan unit, which was successfully tested in 1982 by the Tiga Papan 1 well. The well penetrated the target reservoir interval but proved to be water-bearing. The well will be plugged and abandoned as a dry hole. Offshore Courageous (350′ ILC) jackup will now move to drill the Barangan prospect located in Block SB303.
Project Details: Tiga Papan
Europe – North Sea
ProServ to Provide Subsea Services for Flyndre/Cawdor Development
Aug 2, 2012 – Proserv has received a contract from Maersk Oil UK to provide electro-hydraulic multiplex subsea control systems along with its associated topside and subsea interface systems for the development of the Flyndre and Cawdor project. Maersk Oil is developing a 16-mile-long (25-kilometer-long) subsea tie-back to the Clyde platform, which the fields will connect to. The development is scheduled to commence production in 2013.
Project Details: Flyndre and Cawdor
Second Well at Bacchus Comes Online, Increases Production
Aug 2, 2012 – Apache has completed a horizontal well on the Bacchus field which has increased production to 12,900 bopd. The well, Bacchus West, penetrated Jurassic-aged Fulmar reservoir sandstones and logged 889 feet (271 meters) of net pay in three sections. The well currently is producing about 8,500 barrels of oil per day. The first well on the field, Bacchus South, commenced production in May 2012 and reached levels of about 6,000 bopd. Currently the well is producing nearly 4,400 barrels per day. Bacchus is subsea tied-back to the Forties Alpha platform. The Rowan Gorilla VII (450′ ILC) jackup will relocate to the Aviat shallow gas discovery for appraisal drilling.
Project Details: Forties
Dana Successfully Appraises Platypus
Aug 2, 2012 – Dana Petroleum reported that the Platypus gas appraisal well in the Southern North Sea has recorded a test flow rate of 27 MMcf/d on a 96/64-inch choke. The ENSCO 80 (225′ ILC) jackup drilled the well to a total measured depth of 14,175 feet (4,321 meters). A drill stem test was completed and the well is being suspended for use as a future production well. Platypus is located in Block 48/1a in the UK southern North Sea. It was discovered in 2010 when well 48/1a-5 encountered the gas bearing Lower Leman Sandstone reservoir.
Project Details: Platypus
PetroMarker to Perform EM Survey on Grouse Prospect
Aug 1, 2012 – Faroe Petroleum has selected PetroMarker a contract for an EM survey on their Grouse prospect. Grouse is located in UK License P1853, which lies north of the Shetlands, in an area close to existing infrastructure. The EM survey will be executed with the newly mobilized Normand Baltic at the end of June.
Project Details: Grouse
Wintershall Comes Up Dry at Kakelborg Prospect
Aug 1, 2012 – Wintershall, operator of Production License 370, has completed the drilling of wildcat well 33/6-4 on the Kakelborg prospect in the Norwegian North Sea. The well, which is dry, did not encounter reservoir rocks in the Lista formation. The objective of the well was to prove petroleum in reservoir rocks from the Paleocene Age. The well was drilled to a vertical depth of 5,950 feet (1,814 meters) below the sea surface, and terminated in the Jorsalfare formation in the Shetland group in the Upper Cretaceous. Well 33/6-4 was drilled by the Borgland Dolphin (DW semisub) drilling facility.
Project Details: Kakelborg
Ithaca Grabs Greater Stella Area Contract
Jul 30, 2012 – Ithaca Energy is moving forward with development on the Stella and Harrier fields by awarding Technip a contract to carry out all subsea engineering work in the Greater Stella Area. The EPIC (engineering, procurement, installation and construction) contract includes the detailed design and pipelay of a 20-mile (32-kilometer), 10-inch oil export pipeline and a 38-mile (61-kilometer), 10-inch gas export pipeline to the fields’ production platform, along with various other subsea work. The contract is scheduled to be completed in the second half of 2013. The Greater Stella Area development is located on the UK Continental Shelf around 175 miles (282 kilometers) east-southeast of Aberdeen, Scotland, in a depth of approximately 300 feet (91 meters).
Project Details: Stella/Harrier
Statoil Spins Bit at Geitungen
Jul 27, 2012 – Statoil has commenced exploratory drilling on well 16/2-12 targeting the Geitungen structure. The main objective of well 16/2-12 is to prove the presence of oil-bearing Jurassic sandstones similar to the Johan Sverdrup discovery. The planned total depth of the well is 6,759 feet (2,060 meters) and will be drilled by the Ocean Vanguard (mid-water semisub). Drilling should take about 40 days.
Project Details: Geitungen
Africa – Other
Papa Goes the Distance for Ophir
Aug 2, 2012 – BG Group has made a Cretaceous gas discovery at the Papa-1 well in Block 3 offshore Tanzania. The well encountered a 292-foot (89-meter) gas bearing column in the Upper Cretaceous; and based on the preliminary data available, the operator estimates that it holds 0.5-2.0 Tcf in place. A detailed core and petrophysical analysis will confirm the scale of the discovered resource. The well was spud on May 29, 2012 in 7,172 feet (2,186 meters) of water and was drilled by the drillship Deepsea Metro I (UDW drillship) to a total depth of 18,189 feet (5,544 meters) subsea in 57 days.
Project Details: Papa
Eni Finds Additional Gas in Area 4 Offshore Mozambique
Aug 1, 2012 – Eni announced that a discovery has been made in the eastern part of Area 4, offshore Mozambique, at the Mamba North East 2 exploration prospect. The new discovery adds at least 10 Tcf of gas in place to Area 4, confirming at least 62 Tcf of gas in-place already discovered, bringing the resources, exclusively located in Area 4, to at least 20 Tcf plus of gas in place, stated the operator. Mamba North East 2, where Eni will conduct a production test, was drilled in 6,542 feet (1,994 meters) of water and reached total depth of 17,602 feet (5,365 meters). The well is located approximately 6 miles (9 kilometers) east of Mamba North East 1 and approximately 14 miles (23 kilometers) from Mamba South 1, 37 miles (60 kilometers) off the Capo Delgado coast. The well encountered 656 feet (200 meters) of gas pay in stacked multiple high-quality Oligocene, Eocene and Paleocene sands. The discovery has proved the existence of hydraulic communication with the Oligocene reservoir in Mamba North East 1 and with those of the Eocene age in Mamba North East 1 and Mamba South 1, through a unique gas column of 1,509 feet (460 meters). Lastly, Mamba North East 2 has identified a new exploration play in the Paleocene located exclusively in Area 4.
Project Details: Mamba South/North
Africa – West
Tap Oil Gazes at Starfish in Ghana
Aug 1, 2012 – Tap Oil announced plans to commence drilling on the Starfish prospect in 1Q13. Starfish is considered a well-defined, large ‘Jubilee style’ Upper Cretaceous fan play at comparable burial depths to the producing Jubilee reservoir. It has recoverable oil potential of 500 million to 1.2 billion barrels at the P50 to P10 range.
Project Details: Starfish
Chevron Tags $2B for Development of Offshore Lianzi Project
Jul 30, 2012 – Chevron announced that its subsidiary will proceed with the development of the Lianzi field located in a unitized offshore zone between the Republic of Congo and the Republic of Angola. Located 65 miles (105 kilometers) offshore in approximately 3,000 feet (900 meters) of water, the Lianzi field will be developed via a subsea tie-back to the existing Benguela Belize Lobito Tomboco (BBLT) platform located in Angola Block 14. The $2 billion development will include a subsea production system and a 27-mile (43-kilometer) electrically heated flowline to transport the oil from the field to the BBLT platform. First oil is expected in 2015. Once completed, the project is expected to produce a maximum of 46,000 barrels of oil equivalent per day. Chevron Overseas Congo Limited is operator of the Lianzi field and has a 31.25% interest, along with Total (36.75%), ENI (10%), Sonangol (10%), SNPC (the Republic of Congo National Oil Company 7.5%), and GALP (4.5%).
Project Details: BBLT
Jul 30, 2012 – Chariot Oil & Gas has commenced exploratory drilling on the Nimrod prospect offshore Namibia. The company said that the well is the second in its four-to-five well drilling program in the region. The well is being drilled by the Ocean Rig Poseidon (UDW drillship). The firm has previously reported that Nimrod is estimated to contain around 4.9 billion barrels of potential gross mean prospective resources. The drilling location is around 50 miles (80 kilometers) offshore Namibia in 1,180 feet (360 meters) of water and has an estimated total drilling depth of approximately 11,000 feet (3,353 meters). Drilling and logging operations are expected to take approximately 60 days.
Project Details: Nimrod
S. America – Other & Carib.
Borders & Southern Plugged, Abandoned Stebbing Well
Aug 1, 2012 – Borders & Southern announced that well 61/25-1 (Stebbing) has been successfully plugged and abandoned, bringing an end to the Company’s current two well drilling program. The Leiv Eiriksson (UDW semisub) drilling rig will now be assigned to Falkland Oil and Gas for its two well program at Loligo, after which it will be demobilized.
Project Details: Loligo
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