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Worldwide Field Development News Jun 8 – Jun 14, 2013

This week the SubseaIQ team added 5 new projects and updated 28 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.

Europe – North Sea

Total Locks EPC for Edradour Project Management

Jun 14, 2013 – Total E&P has secured the services of EPC Offshore to support the development of the Edradour gas and condensate discovery in block 206/4 on the UK continental shelf. EPC will provide project management services for the development as part of a 6-month contract worth more than $400,000. Edradour was discovered in 2010 and will be tiebacked to the West of Shetland Laggan-Tormore development project. Total operates Edradour with 75% interest while it partner, DONG, maintains the remaining 25% interest. The partners expect the discovery to begin producing in 2016.

Project Details: Laggan-Tormore

AMEC Secures Position in Bentley Development

Jun 13, 2013 – AMEC has been contracted by Xcite Energy to provide engineering services to support development of the Bentley field in the UK North Sea. Both companies have also entered into a Memorandum of Understanding (MOU) to develop a wider service agreement for the field relating to development scope and ongoing field operations. The MOU includes project and program management and controls, engineering and design through the FEED stage and beyond, fabrication management, sub-contractor management, hook-up and commissioning, operations and maintenance planning and duty holder services.

Project Details: Bentley

WGPSN Receives Beatrice Life of Field Contract

Jun 13, 2013 – Ithaca Energy signed a $200 million managed services contract with Wood Group PSN (WGPSN). The life-of-field contract is a continuation of a contract that WGPSN was awarded in 2008. Terms dictate that WGPSN will operate and manage the Beatrice Alpha and Bravo platforms and the Nigg onshore terminal until the end of their operational life. Production started at Beatrice in 1981 with an estimated 30-year lifespan. Several asset life extension programs have been carried out that have greatly increased the life of the field.

Project Details: Greater Beatrice Area

Appraisal Adds to Johan Sverdrup Potential

Jun 13, 2013 – Statoil announced the results of two appraisal wells that were drilled by the Ocean Vanguard (mid-water semisub) in the western margin of the Johan Sverdrup field. Well 16/2-17S reached a depth of 6,617 feet and penetrated 270-feet of gross oil pay in Jurassic sandstones. A production test was conducted and yielded almost 6,000 bopd with exceptional flow properties in the upper part of the reservoir. Well 16/2-17B was drilled as a sidetrack to the 17S well. Its target was the Cliffhanger South prospect but no hydrocarbons were encountered and the well has been classified as a dry hole.

Project Details: Johan Sverdrup

Mjosa Appears to be Non-Commercial

Jun 11, 2013 – Bridge Energy, minority partner in Norwegian license PL511, indicated that reservoir quality sandstones have been encountered by the Transocean Arctic (mid-water semisub) while drilling exploration well 6406/6-3 on the Mjosa prospect. Initial results indicate the presence of a sub-commercial volume of gas within the reservoir. Data is still being acquired and further interpretation will be needed to determine what potential exists within the prospect. The current plan is to plug and abandon the well upon reaching total depth.

Project Details: Mjosa

Africa – Other

Indian Pair Eyeing Mozambique Area 1 Assets

Jun 11, 2013 – India’s ONGC Videsh (OVL) and Oil India Ltd (OIL) confirmed that they are in advanced negotiations to buy Videocon Industries’ 10% stake in Area 1 offshore Mozambique for $2.47 billion. Several high-profile discoveries have occurred in the area since 2009 and the potential exists for Area 1 to be one of the world’s largest LNG producing hubs by 2018. Recoverable gas reserves for Area 1 are estimated between 35 and 65 Trillion cubic feet (Tcf). If approved, the acquisition will be executed through a 60/40 joint venture between OVL and OIL.

Project Details: Atum


ConocoPhillips and Karoon Struggle Getting Proteus to Bottom

Jun 13, 2013 – ConocoPhillips and Karoon Gas Australia, partners in WA-398-P, have been forced to sidetrack an exploration well being drilled on the Proteus prospect being drilled by the Transocean Legend (mid-water semisub) off Western Australia. Proteus-1ST1 was successfully kicked-off and drilled to 14,740 feet where a well control event forced the partners to shut-in the well. Drilling will continue once the well control issues are remedied.

Project Details: Proteus

N. America – US GOM

Noble Announces Results of Gunflint Appraisal

Jun 14, 2013 – Noble Energy announced results from the second appraisal well drilled on the Gunflint discovery in Mississippi Canyon block 948 in the US Gulf of Mexico. The well was drilled by the Ensco 8501 (DW semisub) to a depth of 32,800 feet. A net pay of 109 feet was encountered within the primary reservoir targets. Logging results confirmed an estimated gross resource range of 65 to 90 MMboe in the main target. An adjacent three-way structure is a candidate for future exploration. Noble and its partners are likely to develop the discovery as a subsea tieback with project sanction expected later 2013.

Project Details: Gunflint (Freedom)

2H to Provide Julia Riser Design to ExxonMobil

Jun 13, 2013 – 2H Offshore, a subsidiary of Acteon, was awarded a contract by ExxonMobil regarding the first development phase of the Julia project in the Walker Ridge area of the US Gulf of Mexico. Julia will be a subsea development tied back to the Jack/St. Malo floating production unit. Under the contract, 2H will conduct a detailed design study of two 10-inch steel catenary production risers. ExxonMobil and Statoil made the decision to proceed with the chosen development concept in May 2013. Production start-up is planned for 2016.

Project Details: Jack/St. Malo

Subsea 7 Lands Heidelberg Gig

Jun 11, 2013 – Anadarko continues to shop for its Heidelberg development in the US Gulf of Mexico with a recent contract award to Subsea 7. Work scope includes the engineering, fabrication and installation of risers, pipelines and flowlines. The installation work will be performed in over 5,200 feet of water. Project management and engineering will begin immediately with offshore activities to follow near the end of 2014.

Project Details: Heidelberg

Asia – SouthEast

Nido Secures SC58 Drilling Extension

Jun 14, 2013 – Nido Petroleum, operator of Service Contract 58, secured a 6-month extension to its Election to Drill Date from its joint venture partner PNOC Exploration. The extension gives Nido until January 11, 2014 to make the decision to drill one of the prospects identified in the area. Located adjacent to the Malampaya gas field, SC58 covers almost 3,335,922 acres. Water depth exceeds 3,280 feet over most of the block. Promising prospects located in the license include Balyena, Butanding and Dorado.

Project Details: Balyena

Stena Clyde Turns to The Right on Hagana Prospect

Jun 14, 2013 – The Stena Clyde (mid-water semisub) has spud the second well in its current drilling program in the Gulf of Papua off Papua New Guinea. Hagana-1 is being drilled in PPL 244 in almost 350 feet of water. The rig is expected to be on location for roughly 40 days as it tests the Pleistocene sandstone structure. Oil Search (40%) operates the license with support from its partners Total (40%) and Nippon Oil (20%). Hagana has been estimated to contain up to 1.3 Tcf of mean, unrisked, prospective gas resources.

Project Details: Hagana

Otto Receives SC69 Extension

Jun 13, 2013 – Otto Energy received a 6-month extension from the Philippines Department of Energy for Exploration Sub-Phase 3 of Service Contract (SC) 69. Sub-Phase 3, which began February 7, 2011, now has an effective expiration date of November 7, 2013. Three potential drilling targets, Lampos, Lampos South and Managau East, were identified with 3D seismic that was acquired in 2011. Otto will use the extension to complete outstanding technical work, begin well planning and start a farm-down process.

Project Details: Lampos

Worldwide Field Development News Sep 1 – Sep 7, 2012

This week the SubseaIQ team added 0 new projects and updated 8 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.

Europe – North Sea

Valiant Considering Alternative Development Options for Crawford

Sep 6, 2012 – Valiant Petroleum, along with its joint venture partners, is actively pursuing other development solutions for the Crawford discovery in the UK North Sea; the partners concluded the original development plan created by Fairfield is not the best way to proceed. A broad range of development options are under consideration for both surface and subsurface. The timeframe for a fully supported field development plan may extend into 2013.

Project Details: Crawford

Norway’s PSA Approves Geite Permit

Sep 6, 2012 – The Petroleum Safety Authority Norway has given its consent to Det norske to drill their Geite prospect in PL 497. Well 7/11-13 will be drilled using the Maersk Guardian (350′ ILC). Drilling is estimated to take approximately 80 days, but could take as long as 135 days if a sidetrack is drilled.

Project Details: Geite

Lundin Receives NPD Nod for Johan Sverdrup Sidetrack

Sep 6, 2012 – Lundin Petroleum has received approval from the Norwegian Petroleum Directorate to drill an appraisal well at the Johan Sverdrup discovery located in production license 501. Well 16/2-13A will be drilled using the Transocean Arctic (mid-water semisub).

Project Details: Johan Sverdrup

Ithaca Successfully Completes Hurricane DST

Sep 6, 2012 – Ithaca Energy has completed a successful drill stem test (DST) on the Andrew sandstone interval in the Hurricane appraisal well, achieving a maximum flow rate of approximately 24 MMscf/d with associated condensate of 1,200 bopd. The well is being suspended as a future producer from the Andrew reservoir along with the capability to produce from the Rogaland reservoir. During the 24-hour test period, the Andrew interval achieved an average gross flow rate of approximately 17 MMscf/d with associated condensate of 870 bopd from a half-inch choke. Plans are already underway to assess development options.

Project Details: Stella/Harrier

EMAS AMC Wins Cable Installation Work at Troll

Sep 6, 2012 – EMAS AMC has been awarded a contract by ABB for the installation of subsea power cables at the Troll A Platform located offshore Norway. The work scope includes the installation of one HVAC cable and two circuits of HVDC subsea cable from Troll A to the land station Kollsnes. These new cables will provide power to run two compressor drive systems, which will improve production capacity and extend the platform’s lifespan. The Lewek Connector is scheduled to begin operations during 2Q 2014. EMAS AMC is the subsea construction division of Ezra Holdings and the contract was awarded as part of a large strategic cooperation agreement between the two companies.

Project Details: Troll Area

Asia – SouthEast

South Kecapi Expected to Spud by Year End

Sep 6, 2012 – Salamander Energy is expected to spud its South Kecapi prospect by the end of 2012. The Ocean General (mid-water semisub) has been selected to drill the well. Gross mean unrisked resource potential for South Kecapi is 274 Bcf. Salamander Energy estimates its odds of success are 44 percent.

Partners Select Prospect to Drill on Thailand Block G2/48

Sep 5, 2012 – Pearl Oil along with its JV partner, Rayong Offshore Exploration, has selected the Sainampeung-1 prospect as the optimal location to test the G2/48 concession located in the Gulf of Thailand. Sainampueng-1 will be drilled in 4Q 2012 using the Ensco 85 (300′ ILC). Estimates suggest the mean unrisked prospective resources to be 10 million stock tank barrels (MMstb) with a high side of up to 27 MMstb (P10). Sainampueng-1 has the potential to open a new basin with significant follow-up potential.

Project Details: Sainampueng


ConocoPhillips Intersects Primary Objective at Boreas-1

Sep 6, 2012 – Boreas-1 has intersected the primary reservoir objective and the drilling assembly is being pulled so that coring operations can commence. The well intersected a sand interval characterized by a Rate of Penetration increase, sandy drill cuttings and an increase in the mudlog gas readings indicating a potential gas bearing reservoir. Coring operations will be undertaken to allow more extensive analysis of rock properties in potential reservoir intervals. Production testing will be undertaken if hydrocarbon bearing sands are encountered and confirmed by the wireline logging and the pressure and sampling programs.

Project Details: Boreas

Farm-Out Negotiations Open for La Bella

Sep 4, 2012 – WHL Energy announced they have formally commenced the farm-out process on its VIC/P67 oil and gas permit in the offshore Otway Basin off the Victorian coast of Australia. Strong industry interest to participate in the development of the permit has prompted this Australian-based operator to open a data room in Perth, providing potential partners with access to past exploration and study data from previous operators as well as WHL Energy. The farm-out process is expected wrap up by the end of 2012. The VIC/P67 permit is located approximately 124 miles (200 km) West-Southwest of Melbourne and is wholly owned by WHL Energy.

Project Details: La Bella

Recap: Worldwide Field Development News (Apr 27 – May 3, 2012)

This week the SubseaIQ team added 0 new projects and updated 16 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.

Europe – North Sea
Aker Solutions Sub-Contracted for EPC Gig at Edvard Grieg
May 3, 2012 – Kvaerner will subcontract Aker Solutions to engineer, procure and construct topsides for the Edvard Grieg platform, formerly the Luno field. Aker Solutions will deliver design engineering and procurement services from the company’s offices in Oslo, Norway and Mumbai, India, with support from Kvaerner. Fabrication and assembly of the 4 500 tonn process module will be conducted by Aker Solutions’ yard in Egersund. Detail engineering will begin instantly, while fabrication is expected to commence in 2013. First production from the field is expected in late 2015, with a forecast gross peak production of approximately 90,000 barrels of oil per day (bopd).
Project Details: Edvard Grieg (Luno, Draupne) Project
Lundin Strikes Again at Johan Sverdrup
May 3, 2012 – Lundin reported that sidetrack 16/2-11A of the appraisal well 16/2-11 has confirmed good quality in Upper and Middle Jurassic reservoir on the Johan Sverdrup field, reported Lundin Petroleum. The well was drilled approximately 2.05 miles (3.3 kilometers) southwest of the discovery well 16/2-6 and 2,493 feet (760 meters) north east of the 16/2-11 appraisal well. The sidetrack well (16/2-11A) encountered a gross reservoir column of approximately 167 feet (51 meters) of which 115 feet (35 meters) was above the oil water contact. The oil water contact was established and in line with other wells in PL501. A comprehensive coring and logging program has been performed which confirmed the good reservoir properties in the appraisal well 16/2-11. The total depth of the sidetrack was 7,759 feet (2,365 meters). The wells will be plugged and abandoned.
Project Details: Johan Sverdrup
TD Reached at Valiant’s Orchid Prospect
May 3, 2012 – Valiant Petroleum announced that the well on the Orchid prospect has reached a total depth of 9,333 feet. The well encountered a Chalk zone of over 280 feet (85 meters) which exhibited oil shows throughout and higher-than-anticipated porosities. The shallower, secondary Tertiary target sands were not present in the well location. Initial interpretation of the wireline log data by Valiant suggests the well has encountered a 50 foot (15 meter) pay zone above a large Chalk interval with low average oil saturations. The partnership has decided to plug and abandon the well pending further work on the data acquired to determine what further appraisal might be warranted.
Project Details: Orchid
Nexen Drills Dry Hole in Stingray
May 3, 2012 – Nexen has reached total depth of 6,895 feet (2,129 meters) in the Stingray exploration well (15/13b-11) in the North Sea. The well is dry and will be plugged and abandoned.
Project Details: Stingray
Det norske Drills Duster at Storebjorn
May 2, 2012 – Det norske has hit a water-bearing reservoir section in the Storebjorn prospect in PL 450. The drill bit encountered high pressure zones in the well, and because of this, drilling operations took longer than expected to reach the reservoir section. The well will be plugged and abandoned.
Project Details: Storebjorn
PSA Grants Statoil Consent to Drill on Tyrihans
May 2, 2012 – The Petroleum Safety Authority Norway has granted consent to use the facility Transocean Searcher (mid-water semisub) for recompletion of well 6407/1A-4-H on the Tyrihans field in Production License 091. The water depth of the site is 879 to 945 feet (268 to 288 meters). The estimated start up is May 16, 2012 and the activity will last up until March 30, 2013.
Project Details: Tyrihans
GE to Supply Cheviot Subsea Equipment
May 1, 2012 – ATP has contracted GE Oil & Gas to supply subsea production equipment, ancillary systems and related services for the Cheviot field in the North Sea. The supplied equipment, including wellheads, subsea Xmas trees and a subsea control system will be used in conjunction with ATP’s Octabuoy FPS that is currently being constructed. As part of the contract, GE will also provide system engineering and design, procurement and on-site testing services. Product shipments will begin in February 2013 with installation scheduled for later that year. Commercial operations are set to begin in 2014.
Project Details: Cheviot
Bacchus Comes Online
May 1, 2012 – Apache has commenced production from the first development well on the Bacchus field, located in Block 22/06a in the UK sector of the North Sea. Initial production rates over the first five days were approximately 6,000 gross bopd. When the full field development is completed and online, the company will be able to provide reliable long-term sustainable production estimates. Furthermore, the company has commenced development drilling on the second production well on the field and expects for it to come online in 3Q 2012.
Project Details: Forties
MidEast – Persian Gulf
ATP Spuds Shimshon Well
Apr 30, 2012 – ATP Oil & Gas Corporation and its wholly-owned subsidiary ATP East Med B.V. have initiated drilling at the Shimshon well in the Levant Basin offshore Israel using the ENSCO 5006 (DW semisub). The Shimshon well resides in a water depth of 3,622 feet (1,104 meters) with a target depth of 14,764 feet (4,500 meters). After spud, several protective casing strings will be set until the well has penetrated the salt layer, said the operator. A full set of electric logs will be run at total depth to assist in evaluation of target reservoirs. ATP expects to announce results during the third quarter of 2012.
S. America – Other & Carib.
McDermott Wins Brownfield Contract for North Coast Marine Area Project
May 1, 2012 – McDermott International received a brownfield contract to provide two new permanent living quarter modules, including Front End Engineering Design (FEED), design engineering, construction, transportation and installation for BG’s North Coast Marine Area project. The two modules comprise a 640-ton, 60-man quarters module for the Hibiscus platform and a 915-ton, 62-man quarters module for the Poinsettia platform. The Hibiscus module will also accommodate new electrical power generation and distribution, the design of which is being performed by the McDermott engineering office in Houston. The Poinsettia and Hibiscus fields are located in the North Coast Marine Area (“NCMA”) in waters up to 530 feet (162 meters), offshore Trinidad.
Project Details: North Coast Marine Area (NCMA)
BPZ Energy, Pacific Rubiales Form JV
Apr 27, 2012 – BPZ Energy has formed an unincorporated joint venture with Pacific Rubiales to explore and develop Block Z-1 offshore Peru. The agreement calls for Pacific Rubiales to pay $150 million in cash and is subject to a commitment of $185 million for BPZ’s share of capital and exploratory expenditures in Z-1, for their assumption of a 49 percent participating interest in Block Z-1. The block spans 555,000 acres and holds two producing fields, Corvina and Albacora, which averaged 3,880 bopd in the first quarter of 2012. BPZ Energy said it also contains several prospects and leads in water depths ranging from 200 to 1,000 feet. Under the terms of the agreement, BPZ will remain as operator, holding a 51% participating interest, while Pacific Rubiales assumes a 49% participating interest.
Project Details: Corvina
N. America – US GOM
Technip to Deliver Spar for Mad Dog Phase 2
Apr 30, 2012 – Technip has received a FEED contract from BP for the Mad Dog phase two project. The contract covers the design of a spar hull and mooring systems for the development, located near Green Canyon Block 825 in the Gulf of Mexico. This first award comes under the framework of the 10-year spar platform master services agreement signed in 2011. The Mad Dog Phase 2 Spar will be located near the first Mad Dog Spar delivered by Technip for BP in 2004, and installed on Green Canyon 782. Detailed engineering for the new spar is scheduled to start during the second half of 2012.
Project Details: Mad Dog

Norway to Power Offshore Platforms from Land?


The operators and licence holders for the Johan Sverdrup, Dagny, Draupne and Luno fields in the North Sea will study setting up a hub for the supply of electrical power from land. The study will form the basis for a decision on electrification.

The study, which has been initiated by the Ministry of Petroleum and Energy, is headed by Statoil and involves the operators Lundin and Det norske oljeselskap, as well as the other licence holders. The work will comprise technical studies, such as concept planning, as well as commercial solutions for the electrification of the fields on the Utsira High. The intention is to create a framework for potentially setting up a company or partnership to own and operate the facilities that will feed the receiving platforms with power.

It is primarily the gigantic Johan Sverdrup discovery – together with Luno, Draupne and Dagny, including Eirin – that makes such a shared power solution possible. Preparations will be made for the possible subsequent tie-in of other installations on the Norwegian continental shelf.

The study will take in an offshore distribution platform located near Johan Sverdrup, with DC cables from land to the distribution platform and AC cables on to the receiving platforms. An analysis of the power situation at the potential land-based connection points will also form part of the study.

There will be the additional requirement for converters and transformers on the distribution platform and on land. AC cables will also be necessary and the existing switching station will need to be extended for connection to the grid network.

The progress plan for study will, to a large extent, be governed by the plans of those who will be in receipt of the power.

A concept will be selected, and the investment decision made,at the earliest in the fourth quarter of this year.

The decision to electrify will be taken by the licence holders/owners, on the basis of profitability, the official specifications and the conditions stipulated . Utsira Height can be well suited for electrification due to its considerable power needs, as well as the favourable distances and water depths involved.


Statoil Introduces New “Cat J” Jackup Rig for Norwegian Continental Shelf + [VIDEO]


OSLO (Dow Jones)– Norwegian oil and gas giant Statoil ASA (STO) Friday said it is introducing a new drilling rig concept for mature fields on the Norwegian continental shelf, in a move to increase the recovery rate from its wells and reduce costs.

The new rigs will cut production costs by around 20%, cut yard delivery costs by 10%, and increase oil recovery, the company said, essential at a time when production from its existing fields is falling by about 5% a year.

The partly state-owned company said it is preparing an invitation to tender for the new jack-up rigs, known as category J, able to operate at water depths from 70-150 meters and drill wells down to 10,000 meters. Statoil will ask for offers for a minimum of two rigs, at an estimated cost of $450 million-$500 million each.


The company said the new rig type could be used on fields such as Gullfaks on the Norwegian continental shelf and Mariner on the U.K. shelf, and that the future Johan Sverdrup field could also be a candidate.

“Statoil has huge ambitions on the Norwegian shelf. We want to maintain current production until 2020,” said Statoil’s Chief Procurement Officer Jon Arnt Jacobsen, adding that the new rigs will help rejuvenate the current rig fleet.

“Today, more than 50 of the rigs on the Norwegian continental shelf are more than 20 years old, which means more maintenance and higher costs,” Jacobsen said.

The most important measure to extract more oil on the shelf is to drill more wells, the company said. The Cat J concept “will have real impact on improving oil recovery,” said Statoil’s Senior Vice President for Drilling and Wells, Oystein Arvid Haaland.

Statoil said the rigs should be owned by the licenses for each field, since the rigs are part of the long term development of the field. The company has discussed this with partners such as the state-owned petroleum company Petoro, said Jacobsen, adding that Petoro “supports this approach fully.”

Statoil is currently developing several large fields, including Gudrun, Dagny, Valemon, Luva, Skrugard and Avaldsnes /Aldous. It also plans increased oil recovery projects on several fields including Snorre, Statfjord, Troll, Oseberg, Gullfaks and Asgard, and fast-track developments on fields like Stjerne, Visund Sor and Hyme, among others.

Statoil is the world’s largest offshore operator and has 44 developed fields on the Norwegian continental shelf that produced about 1.4 million barrels a day in 2010.

The invitation to tender will be issued in July and the contracts will be awarded in the second half of 2012. The rigs will be delivered in the second half 2015.

At 1051 GMT, Statoil traded 0.6% higher at NOK161.40.

-By Kjetil Malkenes Hovland, Dow Jones Newswires

Source & [ VIDEO ]

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