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USA: Pangea LNG Seeking Approvals for Corpus Christi Project

Pangea LNG Holdings announced that it has begun the process of seeking approvals necessary to build a liquefied natural gas export facility on Corpus Christi Bay in South Texas.

Pangea has filed an application with the U.S. Department of Energy seeking authority to export up to eight million metric tons per year of liquefied natural gas to all current and future countries with which the U.S. has a Free Trade Agreement and intends to quickly file a similar application for LNG exports to any country with which the U.S. does not have a Free Trade Agreement in effect.

The project is located in the city of Ingleside on the La Quinta Ship Channel which is part of the Port of Corpus Christi. The project will be known as South Texas LNG Export.

South Texas LNG Export will be located on a portion of a 550-acre site which includes half a mile of frontage on the federally-maintained deepwater ship channel. Pangea has had the site under option since June. A separate pipeline project would connect the LNG plant to the extensive interstate and intrastate natural gas transmission pipeline network in South Texas.

Pangea LNG is an energy project and investment company involved in the development of LNG liquefaction and storage projects around the globe including an offshore floating LNG liquefaction project in the Eastern Mediterranean Sea.

John Godbold, project director for Pangea LNG, said an intensive project feasibility and preliminary design process is now underway on the South Texas project. The assessment is being conducted by CB&I, a leading international engineering, procurement and construction company.

The South Texas LNG Export project will require federal, state and local regulatory approval. The U.S. Federal Energy Regulatory Commission (FERC) is the lead agency in the permitting process. If this process moves forward on schedule the South Texas LNG terminal could be in operation by 2018.

Kathleen Eisbrenner, Pangea LNG’s chief executive officer, said, “We expect there to be several successful LNG export projects on the Texas Coast in the coming years because of the large new natural gas reserves in North America. Exporting LNG will help stabilize U.S. natural gas prices, sustain drilling and production jobs in South Texas, and stimulate investment in developing additional gas reserves.”

The South Texas project is the second LNG liquefaction project being developed by Pangea LNG companies. Levant LNG Marketing, a Pangea subsidiary, completed an extensive pre-FEED (preliminary front end engineering design), is finalizing commercial agreements and will start FEED engineering shortly on the Tamar Project which will export LNG from the Tamar and Dalit fields in the Eastern Mediterranean, 60 miles offshore from Israel.

That facility will be a permanently moored offshore floating natural gas liquefaction vessel with onboard LNG storage. The self-contained operation will be the first floating LNG export project in the Mediterranean basin. A final investment decision on the Tamar Project is expected by the second half of 2013.

USA: Pangea LNG Seeking Approvals for Corpus Christi Project LNG World News.

Pangea, Tamar Partners Share Israeli FLNG Costs

A Cost Sharing Agreement (CSA) has been executed between Levant LNG Marketing, a subsidiary of Pangea LNG B.V., and Tamar Partners. This major milestone demonstrates the continuing progress toward the export of LNG from the Tamar and Dalit fields in the Eastern Mediterranean, 60 miles offshore from Israel.

The Tamar Partnership will participate in the cost of developing the project front end engineering and design (FEED) for a permanently moored offshore floating natural gas liquefaction vessel with onboard storage. Pangea LNG and Tamar Partners anticipate launching FEED by end of 2012 and making a final investment decision by the second half of 2013.

The floating liquefaction (FLNG) midstream solution is being developed by Pangea LNG, an LNG development and investment company owned by Daewoo Shipbuilding and Marine Engineering (DSME), Next Decade International and D&H Solutions AS. Pangea LNG is a floating LNG liquefaction and storage project developer now working on projects around the globe that will connect gas suppliers to the world’s most important LNG demand markets.

The Tamar Partnership includes Noble Energy Mediterranean Ltd, Isramco Negev 2 Limited Partnership, Delek Drilling Limited Partnership, Avner Oil Exploration Limited Partnership, and DorGas Exploration Limited Partnership. These companies are the owners and producers involved in the discovery of significant natural gas resources in the Tamar and Dalit fields where development drilling is underway.

Gerhard Ludvigsen, a founding member of the Pangea LNG board of directors, said “the Tamar project embraces the entire value chain and balances the risk positions for the owners of hydrocarbons, the off takers and the midstream technology provider.

“The Pangea business model offers the opportunity for all stakeholders to take part in the value enhancement from gas production through the FLNG/midstream solution to the final off take of LNG. Pangea LNG opens the potential for national oil companies and owners of small to medium size gas reserves to monetize stranded gas and take part in the value creation in the entire value chain.”

Pangea LNG continues to work on off-take agreements for LNG production from the Tamar project. Pangea LNG has already executed several letters of intent with potential off takers and is in the final stage of negotiations for the long term sales and purchase agreement.

The Tamar framework agreement represents an important step in the development of what will be the first floating LNG liquefaction project in the Mediterranean basin. The Tamar and Dalit fields are located in the Levantine basin in Israeli waters.

“The Eastern Mediterranean gas fields provide a particularly good location for deploying an offshore floating LNG solution,” said Kathleen Eisbrenner, Pangea LNG’s chief executive officer. “The reserves are large, the climate is moderate and the location offers efficient access to significant LNG markets.”

O.K. Shin, Team leader of DSME Corporate Strategy Team, noted that the vessel-mounted liquefaction system being designed will take advantage of the efficiencies of the DSME shipyard construction environment and the best practices the company has developed during many years of LNG and process vessel construction.

Pangea LNG brings together a team that generated the innovations that are at the foundation of the floating LNG sector. DSME, the majority owner of Pangea, is one of the world’s leading shipbuilders and a contractor for major energy companies providing them with offshore platforms, drilling rigs and floating production units. The company builds special purpose vessels and specializes in LNG carriers. It constructed nine of the 11 floating LNG regasification vessels now in service.

Pangea, Tamar Partners Share Israeli FLNG Costs| Offshore Energy Today.

Tamar Partners Dive into FLNG FEED (Israel)

Delek Group gas subsidiaries announced that the Pre-FEED stage of Tamar and Dalit floating liquefied natural gas project (FLNG), off the coast of Israel, has now been successfully completed.

Therefore, the Tamar partners decided to begin the second phase-front-end engineering design (FEED). LNG production is expected to be up to 3 MMTPA. In accordance to that, Daewoo Shipbuilding & Marine Engineering Co. Ltd. (DSME) signed an agreement with Levant LNG Marketing and Pangea LNG BV for the completion of the FEED stage.

DSME will carry out the costs of FEED and Tamar partners will contribute a total amount of $15 million (100%). The agreement has been set for two years, or until the date of the final investment decision of the FLNG project, whichever is earlier.

Tamar Partners Dive into FLNG FEED (Israel)| Offshore Energy Today.

KBR to Design Bonaparte FLNG Vessel for GDF Suez

KBR has been selected by GDF SUEZ Bonaparte Pty. Ltd. (GDF SUEZ), operator of the Bonaparte LNG project, to execute floating liquefied natural gas (FLNG) production vessel design work for its project offshore Darwin, Australia.

This award is one of two contracts being let by GDF SUEZ as part of an initial concept definition design competition for the vessel. The award also pre-qualifies KBR as a contender for the EPC delivery phase of the project. The concept definition work is already underway in KBR’s London operations centre in Leatherhead, and is expected to last up to 12 months.

KBR has developed an extensive global FLNG engineering capability in recent years, and draws on its experienced resource pool with capabilities in FPSO and onshore LNG EPC delivery.

“KBR is delighted to be working with GDF SUEZ on this project. We look forward to working together in a new relationship which we hope will prove valuable for both companies as this project moves towards the EPC phase,” said Roy Oelking, Group President, Hydrocarbons.

This work follows KBR’s recent FLNG front-end projects in London, Houston and Perth. FLNG represents a new market for the industry and KBR’s engineering capability is already being utilized in several FLNG projects around the world.

KBR to Design Bonaparte FLNG Vessel for GDF Suez| Offshore Energy Today.

Worldwide Field Development News Oct 13 – Oct 19, 2012

This week the SubseaIQ team added 0 new projects and updated 13 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

Petrobras Confirms Oil at Carioca Norte

Oct 18, 2012 – Petrobras confirmed the presence of light oil in appraisal well 3-BRSA-1101-SPS, informally known as Carioca Norte, in block BM-S-9 offshore Brazil. Schahin’s Vitoria 10000 drillship drilled the well to a total depth of 18,293 feet. Results from the well are similar to three others drilled in the Carioca area. The partners in the block will now proceed with their appraisal plan which has been approved by Brazil’s ANP.

Project Details: Carioca

Australia

Shell Cuts Steel on Prelude FLNG

Oct 18, 2012 – Shell and its partners announced steel cutting for what will be the world’s first floating liquid natural gas facility. When complete, the Prelude FLNG vessel will be 1,600 feet long and 242 feet wide and will be the largest offshore floating facility ever built. Prelude will be deployed approximately 120 miles off the Australian coast in block WA-44-L serving the Prelude and Concerto fields. FLNG technology will eventually make it economical to develop gas fields that are currently considered too far from shore or to remote to produce. The facility is expected to receive first gas some time in 2017. At peak production the facility will deliver 3.6 million tons of LNG and 400,000 tons of LPG per year.

Project Details: Prelude

Testing Underway at Boreas-1

Oct 17, 2012 – Karoon Gas announced the Transocean Legend (mid-water semisub) has commenced testing of the Boreas-1 exploration well. Upon bringing in the well, a stabilized flow rate of 30.2 Mmscf/d was achieved through a 40/64 choke. The company notes that flow rates were limited by the surface equipment being used. Flow is being assessed from a 229-foot perforated reservoir section in the primary Plover formation at a depth of 16,089 feet. Testing should last five days with the goal of determining the overall deliverability of the primary reservoir which if a part of the Geater Poseidon structure. The next two wells in the drilling program, Zephyros-1 and Proteus-1, are designed to test the east and west flanks of Greater Poseidon Trend.

Project Details: Boreas

Africa – West

FMC Wins Pazflor Subsea Contract

Oct 19, 2012 – FMC Technologies has been awarded a $33 million equipment contract to supply three additional subsea well systems to Total for its Pazflor project offshore Angola. FMC supplied the initial deepwater production systems that have now been in operation for just over a year. Three of the four Pazflor reservoirs contain very heavy, viscous oil and relatively low reservoir pressures. Subsea separation and pumping is the key enabling technology making production of the heavy oil possible.

Project Details: Pazflor

Aker Books Deep Water Angola Work

Oct 17, 2012 – Eni, operator of block 15/06 offshore Angola, awarded a $50 million-contract to Aker Solutions to participate in the West Hub development project. Aker’s work scope will include engineering, procurement, fabrication and supply of 21 miles of static and dynamic steel tube umbilicals, as well as the associated equipment and peripherals. Delivery is booked for 1Q 2014. Once active, West Hub will draw from the Sangos, Ngoma and Cinguvu fields.

Project Details: West Hub

S. America – Other & Carib.

Rockhopper Premier Finalize Farm-Out

Oct 19, 2012 – Rockhopper announced the completion of the Premier Oil farm-out agreement. Rockhopper will receive a $231 million cash payment and Premier will obtain a 60% interest and operatorship of Rockhoppers licenses off the Falkland Islands. The cash payment will see Rockhopper’s share of Sea Lion fully funded through first oil which is expected 3Q 2017. Both companies are fully aligned on the project and expect to have a development concept by mid 2013. The partners are also discussing other Falklands area exploration prospects and a 2014 drilling campaign.

Project Details: Sea Lion

Europe – North Sea

Fram H to Get 4-Slot Template

Oct 19, 2012 – Statoil and its partners have approved the installation of a 4-slot standard template at Fram H North in the Norwegian North Sea. The template is to be tied-back via flexible pipeline to Fram West which supplies production to the Troll C platform. Installation of subsea equipment, pipelines and control cables is planned for summer 2013. The project will help maintain high flowline temperatures to avoid the use of scale wax inhibitors between Fram and Troll C. Estimates indicate Fram H contains recoverable resources of 10 Mmbeo.

Project Details: Troll Area

OMV Buys Stake in Edvard Grieg

Oct 17, 2012 – RWE Dea has elected to sell its 20% stake in the Edvard Grieg development offshore Norway to OMV for $325.2 million. A contingent payment of almost $46 million is available based on the achievement of certain operational milestones. This acquisition gives OMV access to 2P reserves in excess of 38 Mmboe and net production up to 19,000 boepd in 2016 once the field is brought on stream. The Plan of Development and Operations has already been approved by the Norwegian Parliament and all major contracts for drilling and platform construction have been awarded. OMV will share partnership with Lundin (operator 50%) and Wintershall (30%). The agreement is subject to approval by the Norwegian Ministry of Petroleum and Energy and by the Norwegian Ministry of Finance.

Project Details: Edvard Grieg (Luno, Ivar Aasen) Project

Maintenance Delay at Buzzard

Oct 16, 2012 – A scheduled maintenance shutdown of the Nexen-operated Buzzard platform in the UK North Sea has lasted longer than predicted. Nexen’s original plan was to bring the platform back online mid-October but startup will have to wait another week. The delay has resulted in one cargo being dropped from the November Forties loading program. Forties is the main component of the global benchmark Brent which is used to price most of the world’s oil. Buzzard is the largest Forties producing field and issues there tend to provide strong support to Brent oil futures.

Project Details: Buzzard

Eni To Begin Drilling At Goliat

Oct 16, 2012 – Drilling at the Eni-operated Goliat field will begin near the end of October by the Scarabeo 8 (UDW semisub). Appraisal well 7122/7-6 is expected to take 50 days to drill. A 3 ?? year development drilling phase, consisting of 22 wells drilled from 8 subsea templates, will begin upon completion of the appraisal well. The templates will eventually be tied to a circular floating production facility with an integrated loading and storage system. Total development cost of Goliat is estimated at $5.2 billion. After start-up, production is expected to plateau at 100,000 barrels per day.

Project Details: Goliat

Drilling Underway at Spaniards East

Oct 15, 2012 – Drilling operations at the Premier Oil-operated Spaniards East prospect are underway in the UK North Sea. Awilco Drilling’s WilPhoenix (mid-water semisub) is expected to be on location for roughly 40 days. The Spaniards discovery was made in 1989 and flowed 2,660 barrels per day. Spaniards East will test the down-dip potential ?? mile to the east of the discovery well. Successful results from this well could cause the partners in the license to accelerate appraisal plans for the area.

Geite Comes Up Dry

Oct 15, 2012 – Det norske and its partners announced disappointing results at the Geite prospect offshore Norway. Well 7/11-13 encountered Triassic sandstones as planned but were proved to be void of hydrocarbons. The well will now be plugged and abandoned as a dry hole.

Project Details: Geite

Asia – SouthEast

EOC Bags FPSO Upgrade Project

Oct 18, 2012 – Premier Oil awarded a $15 million contract to EOC Limited in relation to the upgrade of FPSO Lewek EMAS. Under the contract, EOC will provide project management, engineering and procurement services for modifications that are necessary to accommodate a subsea tie-back that will link the vessel to the nearby Dua oil field in Block 12E offshore Vietnam. The Lewek EMAS is currently in operation in the Premier-operated Chim Sao field. Once the project is completed in late 2013, the FPSO will produce both fields. All modifications will be made in the field without taking the vessel offline.

Project Details: Chim Sao

Other

Tullow Farms Into Greenland Block

Oct 15, 2012 – Greenland’s Government approved an agreement between Maersk Oil and Tullow in which Tullow will take a non-operated 40% interest in Block 9 located off the nation’s western coast. Maersk Oil will maintain operatorship of the block with 47.5% interest and state oil company Nunaoil will hold the remaining 12.5%. Block 9 is also referred to as the Tooq license and covers an area of 7,333 square miles. Decision to drill an exploration well will be made once 3D seismic is acquired and processed, which will last through 2014.

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