|Worldwide Field Development News
Oct 18 – Oct 24, 2014
|This week the SubseaIQ team added 9 new projects and updated 38 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.|
LLOG Exploration today provided an update on the status of Deepwater drilling contracts, production at the Who Dat field, development activities at the Marmalard discovery, and its recent Powerball discovery.
On April 2, a three-year contract, with an option for an additional year at mutually-agreeable rates, between LLOG Bluewater Holdings, LLC (the joint venture partnership between LLOG and Blackstone) and Sevan Drilling was announced for the Sevan Louisiana ultra-deepwater drilling rig that is currently under construction in China. The rig will be capable of drilling in water depths up to 10,000 feet, and is scheduled for delivery in Q4 2013.
On April 16, LLOG Bluewater Holdings and Seadrill announced a three-year contract, with an option for a fourth year at mutually-agreeable rates, for the new-build, ultra-deepwater drillship West Neptune. The West Neptune is being built in South Korea and is scheduled for delivery in Q2 2014. The rig will have two BOPs, will be outfitted to work in up to 10,000 feet of water, and is capable of water depths up to 12,000 feet and drilling depths up to 37,000 feet.
First production from the fifth well in the Who Dat field at Mississippi Canyon 503/504/546/547 was initiated on April 12, bringing total production to 28 thousand barrels of oil and 58 million cubic feet of gas per day. The development plan for the field calls for the company to drill eight additional wells, which would fully utilize the 60 MBOPD and 150 MMCFD capacity of the floating production system.
Drilling activities are underway on Mississippi Canyon 255 #1, a development well resulting from the Marmalard discovery announced in August of 2012. The Marmalard discovery well at Mississippi Canyon 300 was drilled to a total depth of 18,100 feet and encountered two oil-bearing zones. Marmalard is one of the discoveries that will be tied back to the Delta House Floating Production System, which is under construction and scheduled to begin operations in 2015. LLOG Bluewater owns a 26% working interest in Marmalard.
On the Shelf, the South Timbalier 231 #1 well (Powerball South) was drilled to a depth of 18,915 feet and encountered over 90 feet of net gas/condensate pay in high quality reservoir sands. Facilities are being constructed to bring the well on line in Q3 2014, and another well is planned for later in the year. LLOG Bluewater owns a 74% working interest in South Timbalier 231/232.
Scott Gutterman, President and CEO of LLOG, commented: “These activities are further evidence of the tremendous growth being experienced at LLOG. The two rig contracts will allow us to develop the acreage around our Delta House project and explore our extensive portfolio of exploration prospects in the Deepwater Gulf of Mexico. Who Dat continues to perform extremely well, and we are quite enthusiastic about the opportunities at Marmalard and Powerball.”
Seadrill has signed a contract with LLOG Bluewater Holdings, LLC, for employment of the newbuild drillship, West Neptune, offshore Gulf of Mexico.
The contract duration is a minimum of three years plus an option for a one-year extension at mutually agreed rates. The potential revenue for the primary contract term is approximately US$662 million. The West Neptune is expected to be delivered to Seadrill from the Samsung Heavy Industries shipyard in Geoje, South Korea, in early June 2014. The rig will be outfitted to work in up to 10,000′ of water and is capable of water depths up to 12,000′ and drilling depths up to 37,000′.
Fredrik Halvorsen, CEO and President of Seadrill Management Ltd. says in a comment, “We are delighted to have signed our first contract with LLOG, a leading independent operator in the Gulf of Mexico. This award complements our expanding deepwater operations in the area with Seadrill’s fleet growing to six ultra-deepwater units within the US and Mexican Gulf of Mexico over the next 18 months. In addition, this contract brings Seadrill’s order backlog to US$20.9 billion. We continue to experience strong demand for premium ultra-deepwater rigs and expect to further increase our backlog and earnings visibility in the next months as our additional ultra-deepwater units under construction secure term contracts.”
Scott Gutterman, President and CEO of LLOG, added: “The West Neptune will be the first dual BOP rig in the Gulf of Mexico for LLOG. LLOG will initially utilize the rig to perform completions of our Delta House wells. Having two BOP’s will allow LLOG to complete our wells efficiently saving up to 12 days per completion. Execution of this contract is another key step in accelerating the drilling and development of our extensive portfolio of exploration prospects in the Gulf of Mexico. Seadrill is an outstanding company and we are looking forward to the business relationship.”
Sevan Drilling has confirmed that a three-year charter contract for operation in the US Gulf of Mexico now has been entered into between one of its wholly owned subsidiaries and LLOG Bluewater Holdings LLC.
Sevan Drilling rig no 3 which will be named Sevan Louisiana, which is currently under construction at Cosco Quidong shipyard in China, will be used for the charter contract. The rig will be capable of drilling in water depths up to 10,000 feet and will employ an innovative, proven cylindrical hull design that makes the rig less sensitive to weather conditions. The Sevan Louisiana is scheduled for delivery in Q4 2013, and the start of operations under the charter contract is expected to be in January 2014. The total value of the charter contract is in excess of USD 550 million.
The CEO of Sevan Drilling, Scott Kerr comments: “The execution of this charter contract represents an important milestone for Sevan Drilling, and we are very pleased to have reached agreement with LLOG which is a well reputed operator in the US Gulf of Mexico”.
Scott Gutterman, President and CEO of LLOG, added: “Execution of this contract is another key step in accelerating the drilling and development of our extensive portfolio of exploration prospects in the Gulf of Mexico. The Sevan Louisiana will be capable of drilling each prospect in our inventory, and the rig has numerous operating, safety and environmental advantages. Sevan is an outstanding company and we are looking forward to the business relationship.”
FMC Technologies, Inc. announced that it has received a subsea equipment order from LLOG Exploration Company, LLC (LLOG Exploration) for their Delta House project. The order has an estimated value of $114 million in revenue.
The project is located in the Gulf of Mexico Mississippi Canyon area in water depths of approximately 5000 feet (1524 meters). FMC Technologies’ scope of supply includes nine subsea trees, four subsea manifolds, five multiphase meters and associated topside control systems and subsea distribution systems. The equipment is scheduled for delivery in 2013.
“FMC Technologies is pleased to provide LLOG Exploration subsea systems for their recent Mississippi Canyon developments,” said Tore Halvorsen , FMC Technologies’ Senior Vice President, Subsea Technologies. “We welcome the opportunity to provide them with the subsea technology to meet their needs.”
“LLOG Exploration’s strategic alliance with FMC Technologies has been critical to LLOG Exploration’s success,” said Scott Gutterman , LLOG Exploration’s President and CEO.
Gutterman added, “We are pleased that FMC Technologies will provide the subsea equipment for this important project.”