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.
Cobalt Reports ‘Exceptional’ Results from Its Gulf of Mexico Wells
Cobalt International Energy, Inc. on Tuesday announced extraordinary results from its Shenandoah #2R appraisal well, located in Walker Ridge Block 51, and provided an update on its North Platte #1 exploratory well, located in Garden Banks 959, both located in the Inboard Lower Tertiary Trend, deepwater Gulf of Mexico.
At Shenandoah, the well’s operator announced today that the Shenandoah #2R appraisal well encountered more than 1,000 net feet of oil pay in multiple high quality Lower Tertiary-aged reservoirs. Log and pressure data from both the Shenandoah appraisal well and the 2009 Shenandoah discovery well indicate the presence of exceptionally high quality reservoirs and hydrocarbons.
The appraisal well was drilled as a straight hole to a total depth of 31,405 feet in approximately 5,800 feet of water, about 1.3 miles southwest and approximately 1,700 feet structurally down-dip from the Shenandoah #1 discovery well, in order to test the down-dip extent of the Shenandoah field. Well results indicate that the targeted sands were full to base with no evidence of oil-water contacts. The Shenandoah #1 discovery well was drilled in early 2009 on Walker Ridge Block 52 and encountered more than 300 net feet of Inboard Lower Tertiary oil pay.
North Platte #1
Cobalt, as operator, provided an update confirming that the North Platte #1 exploratory well encountered over 550 net feet of oil pay in multiple high quality Inboard Lower Tertiary reservoirs. This compares to DeGolyer and MacNaughton’s pre-drill estimate for net pay of 350 feet. North Platte is located in approximately 4,400 feet of water and was drilled to a total depth of approximately 34,500 feet. Cobalt completed a bypass coring operation on North Platte #1 and has since temporarily abandoned the discovery well. In addition, Cobalt has begun the acquisition of a new state-of-the-art 3D seismic survey over the greater North Platte field and the majority of its prospects in the immediate area. Evaluation of this data will be ongoing throughout 2013. Appraisal plans for North Platte will be determined later in the year, as well.
Cobalt is currently drilling its Ardennes #1 exploratory well in Green Canyon 896. Ardennes is targeting both Miocene and Inboard Lower Tertiary reservoirs. Results are expected sometime mid-year 2013. DeGolyer and MacNaughton estimates Ardennes to have potential resources greater than 500 million barrels gross oil equivalent.
“The exceptional results of both the Shenandoah #2R appraisal well and the North Platte #1 exploratory well further substantiate our regional model of the prolific potential of the Inboard Lower Tertiary Trend,” said Joseph H. Bryant, Cobalt’s Chairman and Chief Executive Officer. “We believe that our material working interests in these two significant Inboard Lower Tertiary fields will be the source of tremendous value for our shareholders. Our deep portfolio of prospects on trend with these two fields bodes well for our future growth in the Gulf of Mexico. These recent results and our bright future are a testament to our commitment to the people and technology required to succeed in the deepwater Gulf of Mexico subsalt trends.”
Cobalt is the operator and holds a 60 percent working interest in North Platte. TOTAL E&P USA, INC. is Cobalt’s partner in North Platte with a 40 percent working interest. Cobalt is the operator and holds a 42 percent working interest in Ardennes. Partners in Ardennes include ConocoPhillips (30 percent working interest) and TOTAL E&P USA, INC. (28 percent working interest). In Shenandoah, Cobalt holds a 20 percent working interest. Partners in Shenandoah include Anadarko Petroleum Corporation , as operator (30 percent working interest), ConocoPhillips (30 percent working interest), Venari Resources LLC (10 percent working interest) and Marathon Oil Company (10 percent working interest).
Cobalt Reports ‘Exceptional’ Results from Its Gulf of Mexico Wells| Offshore Energy Today.
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.
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
- Worldwide Field Development News Oct 27 – Nov 2, 2012 (mb50.wordpress.com)
- Subsea 7 Wins $800 Million North Sea Contract (gcaptain.com)
- FPSO Armada Sterling Ready for Departure to India (worldmaritimenews.com)
- Worldwide Field Development News Sep 22 – Sep 28, 2012 (mb50.wordpress.com)
- Papa Terra FPSO Starts Voyage to Brazil (worldmaritimenews.com)
- Worldwide Field Development News Oct 20 – Oct 26, 2012 (mb50.wordpress.com)
- First Subsea Invests in Test Rig for Mooring Connectors (UK) (mb50.wordpress.com)
USA: Maersk Secures Contract for Deepwater Advanced 2 Drillship
With the signing of a contract for the newbuild drillship Deepwater Advanced 2 Maersk Drilling adds USD 694 million to its contract backlog. Five out of seven newbuild drilling units have now secured contracts..
Maersk Drilling has signed a contract with ConocoPhillips Company a wholly owned subsidiary of ConocoPhillips and Marathon Oil Company a wholly owned subsidiary of Marathon Oil Corporation for the second ultra deepwater drillship in a series of four identical drillships currently under construction.
The estimated total contract value is USD 694 million including mobilization, but excluding cost escalation compensation. The contract duration is three years, with options for up to an additional two years and commencement of operations is expected by mid-2014 upon delivery from Samsung Heavy Industries in South Korea, mobilization to the US Gulf of Mexico and acceptance testing. The drillship will be equipped with two Blow-Out-Preventers (BOPs).
The drillship will be employed by ConocoPhillips and Marathon Oil for their respective drilling programs in the US Gulf of Mexico.
“We are pleased to having been able to customize a drilling contract with ConocoPhillips and Marathon Oil combining their respective drilling programmes into a three year drilling contract providing security of deepwater rig availability for the two companies while leaving some flexibility in regards to the timing of their drilling programmes. In addition, merging the two programmes provides us with a contract with an attractive duration,” says Claus V. Hemmingsen, CEO of Maersk Drilling and member of the Executive Board of the A.P. Moller – Maersk Group.
Strong demand for advanced drilling rigs
Since 2011 Maersk Drilling has invested USD 4.5 billion in seven new drilling units currently under construction; three ultra harsh environment jack-ups at KeppelFELS in Singapore and four ultra deepwater drillships at Samsung Heavy Industries in South Korea. With the latest contract for the second drillship five out of the seven newbuild rigs have now secured contracts.
“We are pleased to see continued strong demand for our advanced drilling rigs. This contract brings further evidence to our strategic focus on ultra harsh and deepwater drilling and provides firm ground for our ambitious growth plans,” says Claus V. Hemmingsen, CEO of Maersk Drilling and member of the Executive Board of the A.P. Moller – Maersk Group.
Maersk Drilling has performed deepwater operations in the US Gulf of Mexico since 2009 with the ultra deepwater semi-submersible Mærsk Developer. In June 2012, Maersk Drilling secured a contract for the first drillship under construction with commencement in the US Gulf of Mexico expected by end 2013.
“The US Gulf of Mexico remains a focus area of Maersk Drilling, and we are pleased to further expand our presence in this attractive market positioning us with three ultra deepwater rigs by 2014,” says CEO Claus V. Hemmingsen.
- Maersk Drilling has hit the ground running in Angola (maerskpress.com)
- South Korea: Samsung Yard Bags $ 600 Mln UDW Drillship Order (mb50.wordpress.com)
- Sonardyne Supplies BOP Control System to Noble’s Drillship (USA) (mb50.wordpress.com)
- Shell Gives Transocean a Huge Shot in the Arm with 40 Years of Drilling Contracts (gcaptain.com)
- Atwood Oceanics Orders Third Ultra-Deepwater Drillship (gcaptain.com)
Worldwide Field Development News Oct 9 – Oct 15, 2012
This week the SubseaIQ team added 0 new projects and updated 7 projects. You can see all the updates made over any time period via the Project Update History search. The latest offshore field development news and activities are listed below for your convenience.
S. America – Brazil
Petrobras Announces Farfan Discovery
Oct 11, 2012 – Petrobras announced the discovery of light hydrocarbons at its Farfan prospect in block SEAL-M-426 offshore Brazil. Well 1-BRSA-851-SES is being drilled in 8,923 of water by the Deepsea Metro II (UDW drillship). A hydrocarbon bearing zone of 144 feet was discovered at a depth of 18,314 feet and was confirmed by wireline testing and fluid sample analysis. The rig will continue drilling to the target depth of 19,685. Petrobras and partner IBV Brazil hold 60% and 40% interest in the well respectively.
Oct 11, 2012 – Petrobras released preliminary drilling results concerning appraisal well 3-RJS-683A at the Jupiter prospect confirming a discovery of natural gas and condensate. The discovery has proven a continuous reservoir between 3-RJS-683A and the Jupiter discovery well. A 577-foot oil column has also been detected in rocks displaying excellent permeability and porosity. Further appraisal is needed to determine the size of the field but initial estimates suggest that Jupiter could hold as much as 1 billion cubic feet of gas. To this point, the well has reached a depth of 17,834 feet and drilling will continue in an effort to reach deeper targets.
Project Details: Jupiter
Europe – North Sea
Lundin Announces Albert Results
Oct 11, 2012 – The Bredford Dolphin (mid-water semisub) wrapped up drilling operations at Lundin’s Albert prospect offshore Norway. Well 6201/11-3 was drilled to 9,760 feet and penetrated a thin Cretaceous oil bearing reservoir. The reservoir was found at a depth where the primary target was expected to be encountered. Due to the makeup of the structure and uncertain distribution, an estimation of resources in place cannot be made at this time. A minor column of movable hydrocarbons was encountered in a Paleocene secondary target. Further geophysical and geological studies are required to clarify the potential of the discovery.
Project Details: Albert
Heerema Delivers Andrew Process Module
Oct 11, 2012 – Heerema Fabrication recently completed construction of the new 750 ton process module for BP’s Andrew platform in the UK North Sea. The module was designed to be a “bolt-on” addition to the platform facilitated by the use of two large hinge pins that engage hooks welded to the existing structure. Heerema’s Hartlepool yard benefited from the project by the creation of 180 jobs. In addition, the module was delivered without a single lost time incident.
Project Details: Andrew (UK)
Providence Encouraged by Barryroe Development Modeling
Oct 9, 2012 – Providence Resources recently completed a suite of static and dynamic modeling of the main Basal Wealden oil bearing reservoir interval within the Barryroe complex offshore Ireland. Data from the new models was incorporated with maps made from the recent 3D seismic survey of the area allowing Providence to establish oil recovery factors ranging from 17% to 43%. A modeled recovery factor of 31% over 25 years was achieved based on a development scenario which implemented 41 horizontal production and 22 horizontal water injection wells. Also, the company awarded the Barryroe Concept Development Engineering Study to Procyon Oil and Gas. Procyon will help determine the best development plan for the field based on the different scenarios recently modeled by Providence.
Project Details: Barryroe
Ithaca Adds to Resources in UK North Sea
Oct 9, 2012 – Ithaca Energy has acquired interest in the Cook and MacCulloch fields in the UK North Sea through the acquisition of two Noble Energy subsidiaries. The Shell-operated Cook field is located in block 21/20a and is processed through the Anasuria FPSO. The acquisition will bring Ithaca’s stake in the field to 41.345%. The ConocoPhillips-operated MacCulloch field is found in block 15/24b and was developed through 4 subsea wells tied back to the North Sea Producer FPSO. Finalization of the acquisition, expected in early 2013, will give Ithaca a 14% stake in the field. With the addition of these assets, Ithaca’s net production – largely oil – should increase by 1,100 boepd. The company’s total consideration in the arrangement is $38.5 million.
Project Details: MacCulloch
Asia – Far East
Lufeng FSOU Gets an Upgrade
Oct 9, 2012 – InterMoor completed its first permanent mooring project in the Lufeng field in the South China Sea. The company was contracted by CNOOC to handle project management, engineering, procurement and installation of a new buoy turret mooring system for the Nanhai Sheng Kai FSOU. Installation of the new mooring system should allow CNOOC to get an additional 15 years of service life out of the vessel which was first deployed in 1992. Included in the work scope was the addition of a new 8-inch flexible flowline and riser between the mooring system and LF13-2 wellhead platform. The FSOU was previously anchored in the LF13-1 field but has been moved to the 13-2 field since the upgrade to expand development there.
Scarborough Partners Still Mulling Development Options
Oct 11, 2012 – ExxonMobil said a decision on how to develop the Scarborough gas field is not likely until the second half of 2013. Scarborough is considered one of the most difficult fields off Western Australia to develop. Water depth in the area is around 4,700 feet and the closest land is 170 miles away. The company is evaluating several options with its joint partner BHP Billiton. Some of the options include building a floating LNG platform or supplying gas to companies that have existing LNG plants.
MEO Ready for Farmout in Joseph Bonaparte Gulf
Oct 9, 2012 – MEO Australia announced its intention to launch the farmout of exploration permit WA-454-P on Nov. 1. The farmout is scheduled to conclude by the end of 1Q 2013. WA-454-P, located in the Joseph Bonaparte Gulf, contains the Marina-1 discovery and the sizable Breakwater prospect. MEO describes Marina-1 as a “gas and probably oil” discovery with 3C contingent gas resources of up to 3.2 Bcf and 3C contingent oil/condensate resources of up to 29.5 MMstb. Gas-only perspective resources for Breakwater are up to 2.7 Tcf with 87 MMstb condensate. In addition, Breakwater is situated in an area near proven gas discoveries that are planned to be developed with floating LNG technology. MEO was awarded WA-454-P in June 2011 and holds 100% interest in the permit.
Project Details: Marina
- Worldwide Field Development News Sep 29 – Oct 5, 2012 (mb50.wordpress.com)
- Worldwide Field Development News Sep 14 – Sep 20, 2012 (mb50.wordpress.com)
- Worldwide Field Development News Aug 10 – Aug 16, 2012 (mb50.wordpress.com)
- Worldwide Field Development News Sep 22 – Sep 28, 2012 (mb50.wordpress.com)
Exxon, Conoco, BP and TransCanada Make Progress on Alaska LNG Project
Executives for ExxonMobil, ConocoPhillips, BP, and TransCanada submitted a letter to the Parnell administration describing their companies’ progress in advancing an Alaska liquefied natural gas (LNG) export project.
“I’m encouraged that the companies have made significant progress in advancing a project and an associated schedule for commercializing North Slope gas,” Governor Parnell said. “Clearly, they have fully shifted their efforts to an Alaska LNG project.”
The companies’ letter addresses a critical benchmark that Governor Parnell laid out in his January State of the State address, calling on the companies to harden the numbers on an LNG project and identify a project timeline by the end of the third quarter.
The letter also addresses an additional third-quarter benchmark that Governor Parnell laid out in his address, calling on the companies to complete their discussions with the Alaska Gasline Development Corporation (AGDC) on the potential to consolidate their work. In the letter, the companies said they have established a cooperative framework with AGDC to share information.
“I am also encouraged to see the significant work between AGDC, which is advancing an in-state gas project, and the Alaska Pipeline Project (APP), which is advancing an LNG export project. Deeper cooperation between these two state-backed efforts is strongly in the state’s interest,” Governor Parnell said.
Prior to the announcement, ExxonMobil, ConocoPhillips and BP had met two earlier benchmarks laid out in Governor Parnell’s State of the State address. On March 29, the state and the companies resolved the Point Thomson litigation. The following day, the companies announced their alignment “on a structured, stewardable and transparent approach with the aim to commercialize North Slope natural gas within the Alaska Gasline Inducement Act (AGIA) framework.”
Letter from the producers and TransCanada provide details on the team they have assembled and the team’s activities in developing a project, building on their previous work to commercialize North Slope gas. The documents include a project timeline and a cost range covering various stages in the project development schedule and work plan. The documents also provide new details regarding the components of an Alaska LNG project, including a liquefaction facility, gas production and storage, a large-diameter pipeline, and a gas treatment plant.
Over the past six months, more than 200 employees from the four companies have been working on managerial, technical, and commercial aspects during this phase of the project schedule, according to the letter.
Given the massive size of the North Slope conventional gas resource (35 trillion cubic feet of reserves and more than 200 trillion cubic feet of undiscovered, technically recoverable resources) and the scope of the project as described by the companies, an Alaska LNG project will be one of the largest in the world.
While the companies have been developing their LNG project design, the Parnell administration has undertaken significant outreach to Pacific Rim markets to highlight the comparative advantages of Alaska LNG exports, and to other key stakeholders, including U.S. government officials in charge of export licensing.
The most recent of these efforts was Governor Parnell’s trade mission in September to South Korea and Japan, where he discussed Alaska LNG exports with leading government and industry officials.
Exxon, Conoco, BP and TransCanada Make Progress on Alaska LNG Project LNG World News.
- Alaska gas line project could cost $65B or more (jsonline.com)
- Parnell in Asia, touting Alaska natural gas (juneauempire.com)
- Alaska Sees Asia Driving Annual $20 Billion Via Pipeline – Bloomberg (bloomberg.com)
- Alaska cozies to Asia for natural gas (upi.com)
Marathon Oil in $750m Eagle Ford splash
Bill Lehane 09 May 2012 14:15 GMT
Marathon Oil has splashed out $750 million to acquire Houston-based private Paloma Partners II and its Eagle Ford assets.
The US independent will pay in cash for the acquisition, which is expected to close subject to approvals in the third quarter.
Paloma II owns roughly 17,000 net acres in the Eagle Ford shale play, primarily in Karnes and Live Oak counties.
Net production at the properties as of 1 April was around 7000 barrels of oil equivalent per day.
Paloma II’s principal shareholders are Paloma Resources, Encap Energy Capital Fund VII and Macquarie Americas Corporation.
Marathon Oil has previously flagged its intentions to hone in the Eagle Ford, telling the Howard Weil conference earlier this year it would ramp up activity in the oil window of the South Texas shale play.
The Eagle Ford is a key plank of the New York-listed outfit’s $4.82 billion capital expenditure budget for this year.
- Energy: Texas Tops Finds From Brazil to Bakken as Best Prospect (mb50.wordpress.com)
- New drilling, production in Eagle Ford surges (mb50.wordpress.com)
- Marathon Sells Alaska Assets (mb50.wordpress.com)
Ex-Im Bank Provides USD 2.95 Billion Loan to Australia Pacific LNG Project
The Export-Import Bank of the United States (Ex-Im Bank) has authorized a $2.95 billion direct loan to support U.S. exports to the Australia Pacific liquefied natural gas (LNG) project.
The transaction is Ex-Im’s second-largest single-project financing in history and is also the Bank’s first LNG project in Australia.
The project on Curtis Island in south-central Queensland will produce natural gas from coal-seam wells and will have total capacity of nine million metric tons per year. China Petroleum and Chemical Corp. (Sinopec) and Kansai Electric Power Co. Inc. of Japan will purchase most of the LNG produced. China Ex-Im Bank and commercial lenders are also providing debt financing for the project.
Ex-Im’s financing is expected to support an estimated 11,000 American jobs. Principal U.S. exporters are ConocoPhillips Co. and Bechtel International, both of Houston, Texas. Additional exporters and suppliers include numerous small businesses in Texas, Colorado, Nevada, California, Oregon and Oklahoma.
“Our authorization paves the way for U.S. companies to export equipment and services to this major LNG project and, in so doing, to maintain thousands of American jobs across the country,” said Ex-Im Bank Chairman and President Fred P. Hochberg. “This financing also demonstrates how the United States and China can work together for our mutual benefit to foster trade and develop critically needed energy resources.”
The transaction, approved by Ex-Im’s board of directors on May 3, was announced following Chairman Hochberg’s trip to China, where he participated in the fourth round of the Strategic and Economic Development Dialogue (S&ED) with Treasury Secretary Timothy F. Geithner and other officials. The S&ED was held in Beijing on May 3-4.
Bechtel official Jay C. Farrar, who manages the company’s office in Washington, D.C., cited the importance of Ex-Im’s financing for U.S. exporters to large international projects. “Since 1992, Ex-Im Bank has been instrumental in the successful awarding and completion of projects involving Bechtel that have supported thousands of jobs for highly skilled employees at our company. The Bank’s financing also has helped to maintain thousands of additional jobs related to the supply chain for these projects,” Farrar said.
The Australia Pacific LNG project will involve development of coal-seam natural-gas fields, two gas transmission lines to a collection hub, a natural gas liquefaction plant and an adjacent marine shipping export terminal on Curtis Island near the city of Gladstone.
- Why America’s Missing Out on the Billion-Dollar Global LNG Game (mb50.wordpress.com)
- UK: Shell Tables USD 1.56 bln Bid for Cove (mb50.wordpress.com)
- USA: Sumitomo, Tokyo Gas in Cove Point LNG Talks with Dominion (mb50.wordpress.com)
- Will the US Become the World’s Largest Exporter of LNG? (mb50.wordpress.com)
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