Blog Archives

Malaysia Aims to Become LNG Trading Hub through New $1.3B Terminal


by  Quintella Koh
Rigzone Staff
Friday, September 14, 2012

Malaysia is aiming to become Asia’s liquefied natural gas (LNG) trading hub by 2020 with the establishment of a $1.3 billion LNG terminal in the Pengerang Integrated Petroleum Complex (PIPC), the country’s Prime Minister Najib Razak said in a statement Thursday.

The LNG terminal – also known as the Pengerang Independent Deepwater Petroleum Terminal (PIDPT) – will be developed by the Johor state government, Netherland’s Royal Vopak and Malaysia’s Dialog Group.

PIDPT – which will be constructed over two phases – is designed to have a total storage capacity of five million cubic meters. The terminal will be used for storage, loading and regasification of LNG, both for trading and domestic use. The first construction phase of PIDPT has already started, and is scheduled for completion by 1Q 2014.

“This will be the first independent LNG trading terminal in Asia, allowing multiple LNG users to store and trade the product. It will spur the growth of the [petroleum] industry, and help establish Malaysia as Asia’s LNG trading hub,” Razak said.

PIPC will also house Petronas’ new $20 billion refinery and petrochemical integrated project. The project – scheduled to be commissioned by 2016 – will be able to produce 300,000 barrels per day of refined products.

Malaysia’s PIPC has been touted as a potential strong competitor to Singapore’s Jurong Island – an artificial island located to the southwest of the main island of Singapore, off Jurong Industrial Estate. Singapore is, at present, the Asian price discovery center and trading hub for oil products due to its significant oil storage and trading infrastructure in Jurong Island. The island which is home to oil and gas companies – such as ExxonMobil, Shell, BP, BASF, Celanese, Mitsui Chemicals – sees up to 1.3 million barrels of crude processed each day.

Singapore is also aggressively developing its oil and gas storage infrastructure. The island-city, through the development of the Jurong Rock Cavern (JRC) project, will create an additional 1.47 million cubic meters of oil storage space by 2013. JRC is the first underground rock cavern for oil storage in Singapore and Southeast Asia. Construction work on JRC started in February 2007.


Petronas, PDVSA Searching for Oil Offshore Cuba

Cuba’s state oil company, Cubapetróleo (Cupet) sent a statement to the country’s media saying that a company from Malaysia, a subsidiary of Petronas, had started drilling operations at the Catoche 1X well offshore Cuba.

The Malaysian company is using the Scarabeo 9, a 6th generation semi submersible drilling rig, for the operation. The Catoche 1X well was spudded on May 24. The rig had been under a contract with the Spanish oil major Repsol, who, following the disappointing results of its recent well, decided to scrap plans for further drilling off the Caribean country’s coast.

Cupet has said that Repsol’s failure to find oil doesn’t mean that the oil isn’t there and has added that the area has “a high potential for discovery of new hydrocarbon reserves, according to geological studies performed.”

Cuba estimates that its offshore fields hold approximately 20 billion barrels of oil, which could, once unlocked provide a major boost to the communist country’s economy.

Furthermore, the Cupet’s announcement says that once the drilling of Catoche 1X is completed the Scarabeo 9 will move to the Cabo de San Antonio 1x well, operated by Venezuela’s PDVSA.

Scarabeo 9, capable of operating in water depths of up to 3,600 meters, was built by Singapore’s Keppel specifically for drilling operations in Cuban waters.

Due to the United States trading embargo against Cuba, Repsol had to come up with a rig with almost no U.S. made parts in it, and according to Reuters, the only U.S. manufactured part on the Scarabeo 9 rig is a blowout preventer, a part that malfunctioned and caused the Deepwater Horizon disaster in the U.S. Gulf of Mexico in 2010.


Recap: Worldwide Field Development News (May 4 – May 10, 2012)


This week the SubseaIQ team added 5 new projects and updated 20 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.

Africa – West
Harvest Natural Completes Technical Evaluation over Dassafu Ruche Marin
May 9, 2012 – A technical evaluation of the 2011 Ruche discovery has been completed, reported Panoro Energy. Studies indicate that the discovery has recoverable resources of around 11 MMbbl and is commercially marginal. Further resources will need to be found in order to proceed with a commercial development of the field. The Tortue prospect, about 9 miles (15 kilometers) southeast of Ruche, has been selected as the next exploration prospect to drill. The well will target pre-salt Gamba and mid-Dentale reservoirs and a secondary post-salt Madiela reservoir. When combining these reservoirs, the Tortue prospect has consolidated mean prospective resources of 28 MMbbls with 56 percent geological chance of success. When combining a discovery on Tortue with the existing discovery on Ruche, the minimum commercial threshold for Tortue is estimated to be around 10MMbbl resulting in a commercial chance of success of 46 percent. Rig options are currently being reviewed to drill the Tortue prospect.
Project Details: Dussafu Ruche Marin
Aker to Supply Subsea Trees for Dalia Field
May 4, 2012 – Total awarded Aker Solutions a contract for the delivery of seven subsea tree systems to the Dalia field offshore Angola. The scope of work includes seven production trees, seven wellhead systems and seven well jumper systems, and may include some contract options. Management and engineering of the subsea tree systems will be performed at Aker Solutions’ manufacturing center in Tranby, Norway. Procurement, manufacturing and assembly will take place in Port Klang, Malaysia, and Aberdeen, UK. Equipment deliveries will be made in 2013 and 2014.
Project Details: Dalia
Kosmos to P&A Teak-4A Well
May 4, 2012 – Kosmos Energy has completed drilling the Teak-4A appraisal well, located in the West Cape Three Points Block, offshore Ghana. The well, targeting the stratigraphic extension of the Teak discovery area, encountered thin, non-commercial reservoirs and is being plugged and abandoned. Kosmos and partners have begun integrating well results into the Teak field model to determine forward appraisal and development plans. The Atwood Hunter (DW semisub) drilled Teak-4A to a total depth of 9,348 feet (2,850 meters) in a water depth of 1,817 feet (554 meters). Following the completion of operations at the Teak-4A well, the drilling rig will set gauges at the Teak-2A well and perform a drill stem test at the Akasa oil discovery on the West Cape Three Points Block.
Project Details: Teak
Europe – North Sea
Lundin Spuds Albert Prospect
May 10, 2012 – Lundin Petroleum has commenced drilling exploration well 6201/11-3 in PL519 in the Norwegian sector of the North Sea. The well will target the Albert prospect. The main objective of the well is to test Cretaceous and Triassic age sandstones of a multiple target structure. Lundin Petroleum estimates the Albert prospect contains unrisked, gross, prospective resources of 177 MMboe. The planned total depth is 10,335 feet (3,150 meters) below mean sea level and the well will be drilled using the Bredford Dolphin (mdi-water semisub). Drilling is expected to take approximately 55 days.
Project Details: Albert
Total to Begin Elgin Kill Op in Near Future
May 10, 2012 – Total reported that the West Phoenix (UDW semisub) drilling rig has been positioned about 99 feet (30 meters) away from its North Sea Elgin platform, where a gas leak was discovered in late March. Dependent on weather, the well intervention should start “within a very few days,” according to the operator. Additionally, drilling of the first back-up relief well by the Sedco 714 (mid-water semisub) is still progressing as per plan, added the company.
Project Details: Elgin/Franklin
Lundin, Partners Finalize Johan Sverdrup Timetable
May 10, 2012 – Lundin Petroleum and partners have agreed to a development schedule to move forward the Johan Sverdrup discovery. The current timetable for Johan Sverdrup is: concept selection to be selected in 4Q 2013; POD submission in 4Q 2014; and first oil in 4Q 2018. The field is expected to have a production life extending to 2050. Ashley Heppenstall, President and CEO, commented, “We are very pleased that the Johan Sverdrup partners have agreed on a development schedule to move forward this very large discovery. This highlights the importance of this project to all stakeholders.”
Project Details: Johan Sverdrup
Centrica Spuds Cooper Prospect in North Sea
May 9, 2012 – Centrica Resources has commenced drilling the Cooper prospect in the Norwegian sector of the North Sea. Drilled by the West Alpha (UDW semisub), the exploration well will target the Cooper prospect located in P L477 in Block 6506/11 on the Halten Terrace between the Smorbukk oil field, immediately to the east, and the Morvin oil field, to the west. Cooper consists of an untested north to south trending fault block. The main reservoir objectives are the prolific Middle Jurassic Garn and Ile formations, which are the main producing reservoirs in the neighboring Smorbukk and Morvin fields.
Project Details: Cooper
CB&I to Provide FEED Services for Aasta Hansteen Project
May 4, 2012 – Statoil awarded CB&I a contract for the provision of front-end engineering design (FEED) services for the Aasta Hansteen, formerly Luva, topsides project in the Norwegian sector of the North Sea. The platform will process hydrocarbons from the field in a water depth of 4,265 feet (1,300 meters). The development concept consists of a spar platform tied to subsea templates. Processing on the topsides will consist of conventional gas dehydration and dew-pointing with condensate stabilization through heating and separation, designed for daily production rates of 23 MMcm/d. CB&I???s scope of work consists of the FEED package for the topsides which includes units for processing, utilities, 108-bed living quarters and flare, with a total dry weight of about 21,500 tonnes. FEED is scheduled for delivery by year-end.
Project Details: Aasta Hansteen (Luva)
MPX North Sea Spins Bit at Timon Prospect
May 4, 2012 – Valiant Petroleum announced that the WilHunter (UDW semisub) has arrived on location to drill the Timon prospect, located in the UK sector of the North Sea. The well is anticipated to spud within the next few days and take around 40 days to complete. Timon is an Upper Jurassic channelized sand play similar to the Cladhan and Tybalt discoveries also located in the UK Northern North Sea. Gross best estimate prospective resources are estimated by Valiant to be 30 million barrels of oil equivalent.
Project Details: Timon
N. America – US GOM
Stone Energy Acquires Additional Shares in Pompano
May 10, 2012 – Stone Energy will purchase Anadarko’s working interests in the Pompano field for $67 million. Under the terms of the agreement, Stone Energy will acquire Anadarko’s 25% working interest in the five-block deepwater Pompano field, 22% in Block 29, and 10% in portions of Block 72 of the Mississippi Canyon.
Project Details: Pompano
Nexen P&A Kakuna Well
May 8, 2012 – Nexen failed to encounter commercial hydrocarbons in its Kakuna well and is in the process of plugging and abandoning the well. Kakuna was drilled to a depth of 30,300 feet (9,235 meters) by the ENSCO 8502 (UDW semisub).
Project Details: Kakuna
AMEC to Perform FEED for Mad Dog Phase 2 Development
May 8, 2012 – AMEC received a contract from BP to provide Front End Engineering Design services (FFED) for the topsides facilities for the second phase of the Mad Dog field development. The new facility, expected to be one of the largest floating production systems installed in the GOM, will produce oil and gas from the Phase 2 development area within the existing Mad Dog field.
Project Details: Mad Dog
Apache to Spud Parmer
May 8, 2012 – The deep water Parmer step-out appraisal well is expected to spud late in the second quarter of 2012. The well is expected to drill for approximately three months, followed by a possible sidetrack. Apache operates the prospect.
Project Details: Parmer
S. America – Brazil
Manati’s Production Increases as Wells Come Online
May 9, 2012 – Average gas production at the Manati field was 5.2 MMcm/d in the first quarter of 2012, stated Panoro Energy, a partner in the field. The production figures represent an increase of approximately 12 percent from the fourth quarter 2011 and an increase of approximately 27 percent compared to the first quarter 2011. The year-on-year increase is a result of the wells being back at full production capacity, after repair and maintenance work last year that resulted in lower production capacity. Average production in Q2 2012 has been 6.4 MMcm/d to date with the field currently producing from all six wells. The operator has scheduled a shut-down of the field for two to three weeks, which has now been postponed to November/December 2012, for maintenance of the gas processing plant and replacement of certain topside equipment on the platform. Annual production from the field is expected to average between 5.5 to 6 MMcm/d.
Petrobras will Re-inject Gas from Bauna, Piracaba Fields
May 9, 2012 – Petrobras reported that the nearby Tiro/Sidon discoveries (now renamed Bauna and Piracaba) will re-inject the gas produced from these fields, rather than export gas through a common pipeline with gas from the BS-3 fields. Gas export options for the BS-3 fields are consequently being re-evaluated, including potential volumes from several nearby high-profile exploration wells for which results are expected within the next year. Revised development plans will be filed with the ANP, including a gas export solution and a strategy to evaluate the area B1 zone potential.
Vanco Preps for Drilling Campaign
May 9, 2012 – Vanco reported that the GSF Arctic I (mid-water semisub) is undergoing required inspections and preparations to commence an exploratory drilling campaign offshore Brazil. The campaign includes the drilling of three prospects, Sabia, Canario and Jandaia, with Sabia being the first drilling target. The shipyard operations are on track and the drilling campaign on the three exploration licenses is expected to start in June/July 2012. The three prospects to be drilled in this campaign are estimated to hold around 100 MMBOE of unrisked resources.
Oceaneering to Supply Umbilicals for Lula, Sapinhoa Development
May 8, 2012 – Petrobras awarded Oceaneering a contract to supply nearly 125 miles (200 kilometers) of thermoplastic production control umbilicals for field development projects, Lula and Sapinhoa, offshore Brazil. Product manufacturing is expected to commence in 3Q 2012 and be completed in 3Q 2015.
Project Details: Sapinhoa (Guara)
Asia – SouthEast
Talisman Progresses HST/HSD Development
May 9, 2012 – The Hai Su Trang and Hai Su Den (HST/HSD) development, which was sanctioned in December 2011, is progressing on schedule and on budget, announced Talisman. First production from the project is planned for the second half of 2013.
McDermott to Provide Subsea Infrastructure for Siakap North Development
May 9, 2012 – McDermott has received a subsea contract to execute a deepwater engineering, procurement, construction, transportation, installation and commissioning project offshore Malaysia. The award is for the subsea infrastructure of the Siakap North – Petai (“SNP”) development project operated by Murphy Sabah Oil Co., comprising rigid flowlines, flexible risers, an umbilical and subsea hardware and controls. The SNP field is located nearby the existing Kikeh field, northwest of Labuan Island, Malaysia, in waters measuring 3,900 to 4,900 feet (1,189 to 1,494 meters) deep. The SNP field architecture consists of two rigid, insulated, pipe-in-pipe production flowlines, one rigid water injection flowline and one main umbilical system connecting eight new manifolds and subsea distribution units to existing riser slots on the Kikeh FPSO. The development calls for five water injection and eight production wells, drilled from the manifolds at each of the four drill center locations. The project scope is scheduled to be completed by the third quarter of 2013.
Project Details: Kikeh
Aker to Provide Subsea Production System for the Siakap North Project
May 4, 2012 – Murphy Sabah Oil has awarded Aker Solutions a contract for the delivery of a subsea production system for the Siakap North project. The scope of work includes 13 subsea trees, eight manifolds, well jumpers, engineering for topside controls and life cycle support services. The first hardware delivery is slated for 1Q 2013. The subsea production system will be tied-back to Murphy’s Kikeh FPSO.
Project Details: Kikeh
Noble Suspends Leviathan Drilling Ops
May 4, 2012 – Noble Energy announced that the Leviathan deep well offshore Israel has reached a depth of approximately 21,400 feet (6,523 meters), the deepest known penetration in the Levant Basin. High well pressure and the mechanical limits of the wellbore design resulted in the suspension of drilling operations before the primary objective was reached. Over the course of deepening the Leviathan No. 1 well, the operator obtained valuable geologic and engineering data about the basin. At approximately 21,000 feet (6,401 meters), the well encountered a zone where natural gas was detected. The composition of the natural gas was heavier than discovered in the shallower intervals and suggests a thermogenic source. At a total depth of 21,400 feet (6,523 meters) higher pressure was encountered indicating the possibility of an overlying seal. The Noble Homer Ferrington (mid-water semisub) is scheduled to remain on location at the No.1 well to conduct a production flow test of the previously discovered natural gas sands at Leviathan
Project Details: Leviathan

McDermott Wins Siakap North – Petai Subsea Contract in Malaysia

McDermott International, Inc. announced that its Malaysian affiliate Berlian McDermott Sdn. Bhd. was recently awarded a significant subsea contract for executing a deepwater engineering, procurement, construction, transportation, installation and commissioning project offshore Malaysia. The value of this contract is included in McDermott’s first quarter 2012 backlog.

The award is for the subsea infrastructure of the Siakap North – Petai (“SNP”) Development Project operated by Murphy Sabah Oil Co., Ltd. (“Murphy”), comprising rigid flowlines, flexible risers, an umbilical and subsea hardware and controls. The SNP field is located nearby the existing Kikeh field, northwest of Labuan Island, Malaysia, in waters 3,900 – 4,900 feet deep.

“Our subsea engineering expertise, fabrication track record at our Batam Island facility, state-of-the-art subsea construction vessels and understanding of the Malaysian market, contributed to this successful award,” said Stephen M. Johnson, Chairman of the Board, President and Chief Executive Officer of McDermott. “We look forward to delivering the facilities for this important field development for Malaysia.”

The SNP field architecture consists of two rigid, insulated, pipe-in-pipe production flowlines, one rigid water injection flowline and one main umbilical system connecting eight new manifolds and subsea distribution units to existing riser slots on the Kikeh FPSO. The development calls for five water injection and eight production wells, drilled from the manifolds at each of the four drill center locations.

Detailed engineering and procurement for the project are underway, and fabrication of PLETs, jumpers and other installation aids is expected to begin in the third quarter of 2012. Following the infrastructure installation, McDermott will undertake a comprehensive System Integration Test of the subsea units and provide commissioning assistance. The project scope is scheduled to be completed by the third quarter of 2013.


Aker Solutions to Build Umbilical Plant in Malaysia


Aker Solutions will build a new state-of-of-the-art umbilical manufacturing plant in Pekan, Malaysia, to meet the anticipated growth and the needs of their Asia Pacific customers. The total investment of USD 60 million will expand Aker Solutions’ manufacturing capacity and strengthen their position as a leading producer of steel tube umbilicals.

The new manufacturing facility close to Kuantan, on the east coast of Malaysia, will complement the existing umbilicals manufacturing plants located in Moss, Norway, and Mobile, Alabama, US.

“I am very excited about the opportunities that will be created by our new manufacturing plant in Malaysia and the added capabilities it ensures. This new plant increases Aker Solutions’ footprint in Asia and our capability to serve customers in the Asia Pacific region,” says Tove Roskaft, head of Aker Solutions’ umbilical business.

She adds: “The umbilical market has robust fundamentals and this strong growth is expected to continue. This investment gives us a strategic advantage in the already booming oil and gas market in the region. As a technology and market leader, we are now ready to take on the opportunity of having umbilical manufacturing hubs in three major oil and gas regions of the world.”

Over the past few years, Aker Solutions has invested heavily in Malaysia, which is the company’s hub for the Asia Pacific region. This includes their first-class manufacturing centre for subsea production technologies and drilling risers in Port Klang, close to Kuala Lumpur. The company also has a 600-strong front-end, design and engineering hub in Kuala Lumpur.

Subsea umbilicals are deployed on the seabed to supply necessary controls and chemicals to subsea oil and gas wells, subsea manifolds and any subsea system requiring a remote control. Over the past 15 years, Aker Solutions has delivered more than 400 umbilicals to some of the world’s most challenging fields, from harsh environment to ultra-deep, high-pressure water conditions.

Aker Solutions has already opened its regional head office for umbilicals in downtown Kuala Lumpur managed by Mr. Crawford Tennant who is an industry veteran and former head of the Aker Solutions facility in Port Klang. The Pekan facility is scheduled to begin operations in the fourth quarter of 2013.


Gulf of Mexico Records Largest Demand for Specialised Offshore Vessels


Infield Systems have made a report on the offshore construction activity demand in order to recognize key regions and gauge supply developments stressing the possibility for activity increase due to the arrival of transcontinental pipelines and the deepwater tie-in of various satellite wells matched to an increased level of subsea installations. Demand is expected to reach its peak during 2015.

North America, particularly the Gulf of Mexico (GoM), has been recording the largest demand level mainly because of the availability of assets.

A considerable growth is expected in Asia and West Africa to 2016, supported by West African projects perceived as one of the key constituents of the emergent deepwater market and the region is seen as a key to a continued utilization of strategic assets. The Asian market features numerous countries including Malaysia, India, China and Indonesia, each reflecting differing dynamics, providing a slightly different opportunity for vessel operators who are keen to secure high utilization.

The global recession has affected all offshore developments and oil companies forcing them to restructure their capital cost commitments together with their offshore expansion plans.

Considerable confidence in Global financial markets has been regained. The declining oil price trend seen in Q2 2011 stabilized during Q3 2011. Greatly depending on whether the major economies return to recession, the global oil demand is anticipated to grow, although at a slower rate than expected.

Infield Systems strongly believe that the level of activity for specialist vessels will increase as E&P ventures expect to rise as a result of exploited reserves.

Vessel operators dealing with harsh and remote environments are most likely to be at the forefront of the expected growth. However, Infield Systems expects the global fleet to become more technologically advanced.

Infield Systems’ Global Perspective Specialist Vessels Market Report To 2016 is dedicated to the construction and construction support vessels that are employed in the development of offshore oil and gas fields. The third edition of this ground breaking report provides an in depth analysis of global and regional trends and the supply and demand dynamics for the period 2007 through to 2016.


Murphy Oil Malaysia Completes Rigless Intervention Campaign Using Welltec Services


Murphy Oil Malaysia recently completed a highly successful, rigless intervention campaign using Welltec services. Not only did the operation allow immediate production from a “lost” well, but it also saved the time and cost of a rig based sidetrack. The end result is expected to add 20 MMscf/d into the production portfolio.

In the first well, the drift run hung up at 945 ft MD when trying to perforate the well. Based on previous experience, the cause was suspected to be part of a cement wiper plug. This was pushed down to a nipple profile at 4,314 ft MD, leaving it still 1,690 ft above the perforation depth. After only minutes of milling, the Well Miller made it through the plug, which allowed the Well Tractor® to push it down to 6,398 ft MD, approximately 380 ft below the target perforation interval. Thereafter the well was perforated and put on production.

In the second well, a poor cement job had made the primary target zone inaccessible and left an obstruction inside the tubing. With pressing rig commitments there was insufficient time to fix the problem, leaving the well temporarily abandoned and a candidate for future sidetracking. Based on the success of the first well, the Well Tractor and Well Miller were used to push the obstruction from 400 ft to 2,132 ft MD , meeting the objective to prepare the well for sidetracking.

However, it was decided to attempt to push the obstruction as far as possible. Using the Well Tractor and Well Miller the well was cleared well beyond the sidetrack target depth to an eventual Hold Up Depth of 8,743 ft MD. Getting this far down the production string allowed access to two of the three reservoirs in this well, which could now be completed for production rather than scheduled for a sidetrack workover.

Related articles


Songa Eclipse Getting Ready for Contract with Total in Angola


Songa Offshore​, Cyprus-based offshore drilling company, today provided a fleet update for October 2011.

Songa Venus remained on location for Petronas Carigali, Malaysia through-out the period. The rig was shut down during the majority of the period and completed earlier announced repairs and testing of re-worked BOP components on December 19. The unit achieved 100% operating efficiency for the remainder of the period after re-commencing operations.

Songa Mercur completed its de-mobilization and load off from Sakhalin, Russia to Labuan Malaysia end of October and the rig has undergone extensive contractual acceptance testing and installation of third party equipment through November and December. The rig is now fully accepted and scheduled to depart for commencement of its two well program in Malaysia with Petronas Carigali.

Songa Dee continued its program for Statoil at the Gulfaks field, and the rig achieved an average operating efficiency of 99% during the period.

Songa Delta completed its scheduled SPS and rig upgrade yard stay at CCB base outside Bergen, Norway during the period. The yard stay was extended from an original 40 days to 56 days mainly due to extended work scopes and additional work related to the BOP system. The rig was then further delayed by weather and remained in sheltered waters until 6th January and is currently in process of anchoring up at location in order to re-commence the contract with Wintershall / Det Norske Oljeselskap.

Songa Trym achieved an operating efficiency of 99% during the period. The rig continues to operate for Statoil in Norway.

Songa Eclipse completed its mobilization to Angola during the period, and the rig is currently undergoing final rig contractual acceptance testing which is expected to be completed during second half of January. The rig will thereafter commence its one well plus 18 month contract with Total E&P Angola


%d bloggers like this: