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Gulf of Mexico: Exxon, Statoil to Splash $4 Bln on Julia Development
Exxon Mobil Corporation is commencing development of the Julia oil field in the Gulf of Mexico, the oil giant announced yesterday in a press release.
Capital cost for the project, which is expected to begin oil production in 2016, is estimated to be more than $4 billion. The field was discovered in 2007 and is estimated to have nearly six billion barrels of resource in place.
“The development of Julia will provide a new source of domestic energy and well-paying jobs over the next several years,” said Neil W. Duffin, president of ExxonMobil Development Company. “Access to resources such as Julia will contribute to U.S. energy security for many years to come.”
The initial development phase is being designed for daily production of 34,000 barrels of oil and includes six wells with subsea tie-backs to the Jack & St. Malo production facility operated by Chevron U.S.A. Inc. Julia project front end engineering design has been completed and the engineering, procurement and construction contracts have been placed.
“Julia is one of the first large oil discoveries in the ultra-deepwater frontier of the Gulf of Mexico,” said Duffin. “This resource is located more than 30,000 feet below the ocean’s surface. Enhanced technologies will be deployed to ensure the safe and environmentally responsible development of this important energy resource.”
The Julia field comprises five leases in the ultra-deepwater Walker Ridge area of the Gulf of Mexico, 265 miles southwest of New Orleans. The blocks are WR-584, WR-627, WR-628, WR-540 and WR-583.
ExxonMobil, the operator, and Statoil Gulf of Mexico LLC each hold a 50 percent interest in the Julia unit.
Over the past decade, ExxonMobil has drilled 36 deepwater wells in the Gulf of Mexico in water ranging from 4,000 feet to 8,700 feet.
Anadarko Finds High Quality Oil in Gulf of Mexico
Anadarko Petroleum Corporation (NYSE: APC) today announced its Phobos-1 well in the deepwater Gulf of Mexico encountered approximately 250 net feet of high-quality oil pay in Lower Tertiary-aged reservoirs.
“Our 2013 Gulf of Mexico exploration program is off to an outstanding start, as Phobos marks our third significant deepwater success this year,” Anadarko Sr. Vice President International and Deepwater Exploration Bob Daniels said. “Phobos is our first well in the previously untested Sigsbee Escarpment area of the Gulf of Mexico and successfully tested a significant four-way structure in the Lower Tertiary. Phobos’ close proximity to our Lucius project is expected to further enhance the economics of this potential future development.”
The Phobos discovery, located in Sigsbee Escarpment block 39, was drilled to a total depth of 28,675 feet in approximately 8,500 feet of water, approximately 11 miles south of Anadarko’s Lucius discovery, which is under development. Anadarko currently is incorporating the data from the Phobos well to determine future activities.
Anadarko is the operator of the Phobos discovery with a 30-percent working interest. Other co-owners in Phobos are Plains Exploration & Production Company with a 50-percent working interest and Exxon Mobil Corporation (NYSE: XOM) with a 20-percent working interest.
Rosneft Buys Exxon’s GoM Blocks (USA)
Neftegaz America Shelf LP (Neftegaz), an indirect independent subsidiary of Russia’s state-run oil company Rosneft, has acquired 30 percent interest in 20 deepwater exploration blocks in the Gulf of Mexico held by ExxonMobil, under an agreement signed by the two companies.
The 20 blocks have a total area of approximately 111,600 acres (450 square kilometers) in water depths ranging between 2,100 and 6,800 feet (640 and 2,070 meters). Seventeen are located in the Western Gulf of Mexico and three are in the Central Gulf of Mexico.
ExxonMobil retains 70 percent interest in the blocks and remains operator. Analysis of seismic data is under way. There is currently no production on the blocks.
Rosneft and ExxonMobil continue to implement the Strategic Cooperation Agreement signed in 2011, under which the companies and their subsidiaries plan to undertake joint exploration and development of hydrocarbon resources in Russia and other countries and to share technology and expertise. Under subsequent agreements between Neftegaz and ExxonMobil, Rosneft’s subsidiary gained the option to acquire interest in 20 blocks of its choosing from among ExxonMobil’s Gulf of Mexico exploration portfolio. The latest agreement represents the exercise of that option.
The agreement was signed by Igor I. Sechin, president of Rosneft, and Stephen M. Greenlee, president of ExxonMobil Exploration Company.
“ExxonMobil has a long history of safe oil and gas exploration in the Gulf of Mexico using state-of-the-art safety and environmental protection systems,” said Greenlee. “We look forward to working with Rosneft and its affiliates to explore these blocks using our leading-edge exploration and development technology and deepwater execution expertise.”
Sechin said, “This agreement provides Rosneft and its affiliates with access to one of the world’s most prolific basins. We believe joint efforts of our companies will ensure the most efficient development of these blocks, with application of the latest technologies and adhering to high environmental standards. Moreover, experience and knowledge acquired in the process may potentially be used when developing deepwater blocks in Russia, including in the Tuapse Trough in the Black Sea as envisaged under the Strategic Cooperation Agreement.”
ExxonMobil and Rosneft continue to implement a program of staff exchanges for technical and management employees to help strengthen the working relationships between the companies and provide valuable career development opportunities for employees of both companies.
The 20 blocks are:
Western Gulf of Mexico – Alaminos Canyon 569, 612, 613, 655, 656, 657, 698, 699, 700 and 701; East Breaks 429, 471, 472, 473 and 515; Keathley Canyon 529 and 573.
Central Gulf of Mexico – Walker Ridge 629, 673 and 717.
Rosneft Buys Exxon’s GoM Blocks (USA)| Offshore Energy Today.
Ezra Secures USD 65 Million Contracts in GoM and West Africa
Ezra Holdings Limited (Ezra, the Group), a leading global offshore contractor and provider of integrated offshore solutions to the oil and gas (O&G) industry, today announced that its subsea construction division, EMAS AMC, has secured contracts worth more than US$65 million, including options, for projects in the Gulf of Mexico and West Africa.
The Gulf of Mexico work will see EMAS AMC introduce the Lewek Falcon, a versatile subsea construction vessel, into the Gulf of Mexico for a long-term campaign on the Walker Ridge Gathering System (WRGS), which is an ultra-deep (2500 metres) setup to provide natural gas gathering services. The scope of work will consist of the transportation and installation of suction piles, manifolds and jumpers along with pipeline pre-commissioning support, and work is expected to commence first half of 2013.
The West Africa-Equatorial Guinea contract extends an existing general service agreement with ExxonMobil for subsea engineering, subsea construction and ROV support activities in West Africa through mid-2014.
Mr Lionel Lee, Managing Director of Ezra Holdings, said: “These project wins demonstrate that our subsea focus is paying off. We have been building a strong track record for our subsea construction division the past year, with past and recent project awards in remote areas and ultra-deep waters. Our continuous investment in people and key assets will reinforce our ability to efficiently and reliably support our growing global client base.”
Project management and engineering will begin immediately from EMAS AMC’s Houston office.
Subsea World News – Ezra Secures USD 65 Million Contracts in GoM and West Africa.
ExxonMobil Seeks ROV for Operations in Black Sea (Romania)
ExxonMobil Exploration and Production Romania Limited Nassau (Bahamas) is seeking for diving services using a remotely operated vehicle for a drilling programme in the Black Sea.
The objective of the framework agreement is for ExxonMobil to be able to access the resources identified as necessary for the provision of services under the contract.
Minimum and maximum operating 380 – 1,309 days of operation with mobilisation and demobilisation days are included in the tender.
The project has a value between USD8 million and USD30 million with duration of 48 months.
ExxonMobil is expecting the tenders to be submitted until November 06, 2012.
Subsea World News – ExxonMobil Seeks ROV for Operations in Black Sea (Romania).
- Rosneft, ExxonMobil to launch test drilling in Kara, Black seas (english.ruvr.ru)
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)
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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Worldwide Field Development News Sep 8 – Sep 14, 2012
This week the SubseaIQ team added 3 new projects and updated 17 projects. You can see all the updates made over any time period via the Project Update History search. The latest offshore field develoment news and activities are listed below for your convenience.
Asia – SouthEast
Torquing the Bit for Gurame Appraisal
Sep 13, 2012 – The Gurame SE-1X well is expected to spud towards the end of September, according to MEO Australia. Success of the appraisal well could lead to early development of the Gurame oil and gas field situated offshore northern Sumatra in the Seruway PSC. The well was identified via 3D seismic as the lowest risk drill-ready candidate with the highest potential for commercial development. Drilling will be undertaken by the Hercules 208 (200′ MLC). Two attractive targets in the well, the Baong and Belumai reservoirs, are expected to be naturally fractured and gas bearing. These attributes should improve the possibility of achieving commercial flow rates. MOE maintains a 100% interest in Seruway.
Project Details: Gurame
Lundin Announces Third Gas Discovery
Sep 12, 2012 – The Berangan-1 well has proved to be Lundin Petroleum‘s third gas discovery in block SB303 offshore Malaysia. The well was drilled in 229 feet of water to a total depth of 5,607 feet by the West Courageous (350’ ILC). Data acquired from the well indicates a 541 foot gross continuous gas column in mid-Miocene sands. While Berangan-1 is the third gas discovery in SB303, it is the fourth in the contract area. Each of the 4 gas discovery lies within a 6 mile radius.
Project Details: Berangan
Sep 11, 2012 – Otto Energy has approved the Final Investment Decision for Phase II of the Galoc field. Total project cost will be $188 million. Based on its working interest in the project, Otto will be funding 33 percent of the cost, or $62 million. The scope of work for Phase II includes drilling two subsea wells, tying back the wells to the existing FPSO and installing a second production riser and control umbilical. Both wells are expected to commence production during the second half of 2013. The two new Phase II wells will increase field production rates to 12,000 bopd from the current rate of 5,600 bopd.
Project Details: Galoc
Europe – North Sea
Sep 13, 2012 – BP has announced it reached an agreement to sell its 18.36% stake in Draugen Field in the Norwegian Sea to Norske Shell for $240 million. The deal, subject to regulatory approval, should be completed by the end of the year. BP’s net production from the Shell-operated Draugen field averages 6,000 barrels per day. Since 2010, BP has entered into agreements to sell assets valued at $33 billion. In an effort to focus more on growth opportunities and its core business strengths BP expects to divest $38 billion in assets between 2010 and 2013.
Project Details: Draugen
Providence Resources Confirms Plans for Dunquin Prospect
Sep 13, 2012 – Providence Resources has been informed by ExxonMobil that a letter of intent has been signed for the use of Ocean Rig’s Eirik Raude (UDW semisub). The rig will be used to drill the Dunquin prospect located in Frontier Exploration Licence 3/04 offshore Ireland. Program duration is expected to take up to 6 months and will commence in the first quarter of 2013, pending corporate and co-venture contract approvals. Partners in the exploration license include operator ExxonMobile (27.5%), Eni (27.5%), Repsol (25%), Providence Resources (16%) and Sosina Exploration (4%).
Project Details: Dunquin Project
Exploration Well Spuds at Geite
Sep 12, 2012 – JV partner Bridge Energy has announced the start of operations at exploration well 7/11-13 on the Norwegian continental shelf. The well is targeting the Triassic reservoir Geite prospect which is located 19 miles (30 kilometers) west of the Ula field. The Maersk Guardian (350′ ILC) is drilling the well and is expected to be on location for a minimum of 80 days.
Project Details: Geite
N. America – US Alaska
Shell Starts Drilling in Chukchi Sea
Sep 12, 2012 – Shell’s much anticipated Chukchi Sea drilling campaign is underway marking the first attempt in 20 years to explore offshore U.S. Arctic petroleum resources. Currently, the Noble Discoverer (mid-water drillship) is being used to drill the mud line cellar and top-hole sections of the first well. This is expected to take two weeks, after which the Discoverer will either continue drilling the Burger prospect or will move to another location to drill the top-hole section. Part of that decision will rest on whether or not the company is able to obtain a permit to drill past the surface sections into the oil bearing portion of the well. Shell has plans to drill three wells in the Chukchi Sea and two wells in the Beaufort Sea if the weather cooperates.
Project Details: Burger, SW Shoebill, Cracker Jack
Africa – Other
Sep 11, 2012 – Africa-focused Tullow Oil reported Monday that the Mbawa-1 exploration well, currently being drilled by Apache Corporation offshore Kenya, has encountered gas in its shallowest objective. Mbawa-1, located in the L8 license, has so far been drilled to a depth of 8,375 feet and it has encountered approximately 170 feet of net gas pay in porous Cretaceous sandstones. The Deepsea Metro I (UDW Drillship) is now drilling the well to a total depth of 10,745 feet. Apache is the operator of Block L8 with a 50-percent interest. Tullow holds a 15-percent interest.
Project Details: Mbawa
Black Sea
Beach Gains 30% of Est Cobalcescu
Sep 12, 2012 – Melrose Resources has agreed to farm-out 30% of its equity in the Est Cobalcescu exploration concession in the Black Sea to Beach Petroleum. Once the transaction is completed, Melrose will retain operatorship of the concession. Terms dictate that Beach will pay its proportionate share of past costs and cover Melrose’s share of the recently completed seismic survey.
Africa – West
Partners Reprocessing Seismic Data for Aje
Sep 13, 2012 – The joint venture partners for Aje, led by YFP, are reprocessing seismic data related to the Aje discovery with a focus on the Cenomanian reservoir. The joint venture is mulling the potential for early oil development as the technical review could lead to an increase in Cenomanian oil volumes. An appraisal well may be drilled in 2013 targeting the reservoir.
Project Details: Aje
N. America – US GOM
Petrobras Turns on the Taps at Chinook
Sep 13, 2012 – Petrobras has started production at its Chinook field in the U.S. Gulf of Mexico. The Chinook #4 well was drilled and completed in Lower Tertiary reservoirs. Production from Chinook is processed by the BW Pioneer – the first FPSO to operate in U.S. waters.
Project Details: The Greater Chinook Area
Plains Buys Shell’s Stake in Holstein
Sep 12, 2012 – It has been announced that Plains Exploration & Production has agreed to buy Shell’s 50% working interest in the Holstein Field for approximately $560 million. The transaction is effective October 2012 and should close by the end of the year. Holstein, located in the U.S. Gulf of Mexico, began producing in December 2004 and is facilitated by a spar platform anchored in 4,400 feet of water. Average net production at the field is 7,400 boepd. The remaining 50% interest in the field is held by BP.
Project Details: Holstein
S. America – Brazil
Canario Spud Expected in Next Few Weeks
Sep 13, 2012 – Vanco is preparing to move the GSF Arctic I (mid-water semisub) to drill its Canario prospect on BM-S-63. This is the second well in their three-well program offshore Brazil. Drilling is expected to commence in approximately two weeks.
Project Details: Canario
Sep 13, 2012 – Vanco Energy’s Sabia well reached a depth of 13,779 feet when a decision was made to stop drilling short of the proposed depth of 14,717 feet. Based on current well data, the discovered volumes are at the low end of the pre-drill range estimate. While the well encountered an active petroleum system, the commerciality of the discovery cannot be firmly made at this time. The information obtained from the well is likely to have a positive impact on the next two prospects to be drilled – Canario and Jandaia.
Project Details: Sabia
First Production at Baleia Azul
Sep 12, 2012 – Petrobras has announced the start of oil production at the Baleia Azul presalt field in the offshore Camps Basin. First oil from the field is being pumped aboard the Cidade de Anchieta FPSO. The Cidade de Anchieta is one of two new production systems that Petrobras will put into operation in 2012. Initial production at Baleia Azul is a good sign for Petrobras whose oil production has taken a hit this year due to maintenance and unexpected shutdowns. The company has also announced plans to bring Bauna and Piracaba fields online in October. Petrobras holds a 100% stake in the fields.
Project Details: Espadarte
Related articles
- Shell Starts Drilling Offshore Alaska (247wallst.com)
- BP Divests a Number of GoM Assets for $5.55 Bln (mb50.wordpress.com)
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