Blog Archives
Statoil Signs LoI for AGR’s EC-Drill Managed Pressure Drilling System
Offshore technology provider AGR Enhanced Drilling, via its subsidiary Ocean Riser Systems, has entered into a NOK120m (USD20m) Letter of Intent (LOI) together with Statoil to deliver the next-generation EC-Drill® Managed Pressure Drilling system.
This latest contract will replace a purchase order made last year, when Statoil joined with Norway-based Enhanced Drilling to further develop its EC-Drill® Managed Pressure Drilling (MPD) solution for floating rigs. The initial phase of the project was worth US$5.1m.
The next-generation EC-Drill® system incorporates state-of-the-art control system capability, enhanced riser integration and multiple other features. Testing of the system is due to commence in the autumn and it will eventually be used on the Norwegian Continental Shelf.
EC-Drill® is a step-change MPD solution, solving a challenge commonly encountered in deep-water wells: drilling within a Narrow Pressure Window. EC-Drill® manipulates bottom-hole pressure by changing the level of drilling mud in the riser, enabling the operator to ‘walk the line’ between pore and fracture pressures. It provides a far greater degree of control than conventional drilling while enhancing safety, plus it is possible to cost-effectively hit deep targets that are simply impractical to reach with more traditional drilling techniques.
David Hine, Executive Vice President at Enhanced Drilling, said from the company’s head office in Straume: “This further commitment by Statoil is another significant endorsement of EC-Drill® as a game-changing technology and the benefits that it brings. This next-generation system is a further step in taking Enhanced Drilling towards the forefront of the MPD market.”
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)
Statoil stepping up in the Arctic
Statoil is stepping up its Arctic activities and will drill nine wells during a non-stop 2013 Norwegian Barents exploration campaign. The company plans to meet development challenges here by tripling its Arctic technology research budget.
Statoil’s exploration experience in the Barents is already extensive. Of the 94 exploration wells drilled in the Norwegian Barents Sea so far, Statoil has been involved in 89. Nine more Statoil-operated wells are on their way here next year.
“After our Skrugard and Havis discoveries we still see attractive opportunities here,” says Statoil Exploration executive vice president Tim Dodson.
“This is a less challenging area, as the Norwegian Barents is one of the only Arctic areas with a year-round ice-free zone. We also see the possibility of utilising knowledge gained here for Arctic prospects elsewhere later on – just like we’ve already done with Snøhvit.”
Statoil will start drilling in Nunatak in the Skrugard area in December, and will drill and complete four wells in this area over a six-month period.
“These wells are time critical, as any additional resources will make the Skrugard development even more robust,” says Dodson.
The campaign will then continue with the drilling of two-three wells in the Hoop frontier exploration area further north in the Barents in the summer of 2013. These will be the northernmost wells ever drilled in Norway.
The 2013 Barents drilling campaign finishes in the most mature province of the Barents: the Hammerfest basin. Statoil will carry out growth exploration close to the existing Snøhvit and Goliat discoveries here.
Arctic drilling unit
In addition to increasing its drilling activities, Statoil has created a technology road map to prepare for activities in even harsher Arctic areas.
This includes:
- A tripling of the current Arctic research budget – from NOK 80 million (in 2012) to NOK 250 million (in 2013)
- A research cruise to north east Greenland in September
- The maturing of an Arctic drill unit concept
Some of the technology highlights include work to allow for cost-effective 3D seismic for exploration prospect evaluation in ice, and the continuing development of a tailor-made, Arctic drill unit.
The work on the future drilling unit is based on Statoil’s experience with developing specialised category rigs for the Norwegian continental shelf (NCS).
The unit will be one that can operate in a wide range of water depths across the Arctic, and will involve integrated operations in drifting ice.
Functions here are to include a management system to reduce ice impact, an optimised drilling package for faster drilling and increased rig availability, and solutions to ensure that the rig maintains its position. At present no robust solution for dynamic positioning dedicated for ice operation exists.
“When we see a technology need, we try to fill the gap ourselves. We have now directed our strategic focus towards developing technology for exploration and production in ice. A new dedicated unit has been established to solve these challenges,” says Statoil Technology, Projects and Drilling executive vice president Margareth Øvrum.
Capacity is key
“We’ve secured a five-year contract for Seadrill‘s West Hercules drilling rig. The rig is currently being prepared for Arctic conditions, and can be used to drill consecutively in the region for years to come,” Dodson says.
Broad exploration experience in the Barents Sea and available rig capacity make Statoil well prepared for the 22nd licence round on the NCS. Applications are due in early December, while the awarding of new licences will take place in spring 2013. Seventy-two blocks in the Barents will be on offer.
“The Skrugard discovery has reignited interest in the Barents. A number of major companies that had left the area will be looking to make their way back in. The competition will be fierce, but we’ve built up a strong track record here, and our application will reflect this,” Dodson says.
Related articles
- Chinese icebreaker continues Arctic voyage (shippingtribune.com)
- Shell’s drilling rig begins two-week trek to Arctic sea (fuelfix.com)
Recap: Worldwide Field Development News Jul 6 – Jul 12, 2012
This week the SubseaIQ team added 1 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.
N. America – US GOM
Noble Decides Not to Appraise Deep Blue
Jul 11, 2012 – Noble Energy reported that appraisal drilling will not occur at its Deep Blue prospect at this time. Although hydrocarbons were found in both the initial exploration well and subsequent sidetrack, the company and its partners have decided not to proceed with additional appraisal activities right now. The Deep Blue well was originally spud late 2009 and sidetrack operations were underway when the moratorium was announced. Noble Energy was required to suspend operations and the rig working at that time was released. After the moratorium was lifted, another rig was certified under new regulatory requirements to finish the sidetrack.
Project Details: Deep Blue
Expro to Provide Subsea Trees for Who Dat Development
Jul 10, 2012 – LLOG granted Expro a contract for the Who Dat development in the Gulf of Mexico. The company will provide subsea test trees for the project on Mississippi Canyon Block 547.
Project Details: Who Dat
ATP Announces Completion of MC 941 A-2 Telemark Well
Jul 9, 2012 – ATP has completed a workover at its Mississippi Canyon Block 941 A-2 well located in the Mirage field at the Telemark Hub. The well was completed with 3-1/2 inch tubing at a measured depth of 17,140 to 17,401 feet (5,224 to 5,304 meters) to add the Miocene B sand completion to the wellbore for field development optimization. Initial test flow rates are at 4,000 barrels equivalent per day (boepd) of which 90 percent is oil. The A-2 well will be tied-back to the facility and is expected to produce at a rate of 4,000 to 5,000 boepd. The MC 941 A-2 well produces through the ATP Titan floating drilling and production platform.
Project Details: Telemark
S. America – Other & Carib.
Premier Farms Into Falkland Licenses
Jul 12, 2012 – Premier Oil has agreed to pay an initial $231 million to farm into Rockhopper Exploration‘s license interests in the Falkland Islands in the South Atlantic. Premier Oil will acquire a 60 percent interest in the licenses, with the deal including a provision for Premier to pay an additional $48 million for further exploration within the license areas and an additional $722 million to develop reserves found there (subject to the approval of a field development plan).
Project Details: Sea Lion
Europe – North Sea
Technip Inks Aasta Hansteen Platform Deal
Jul 12, 2012 – Statoil awarded Technip a letter of intent to construct a hull of a spar platform on the Aasta Hansteen field. The platform will be the world’s largest Spar platform and the first of its kind on the Norwegian continental shelf. Total recoverable reserves for Aasta Hansteen, previously called Luva, are preliminary estimated at about 47 Bcm of gas and .8 Bcm of condensate. The platform, the first spar with storage capacity, will have the capability to store about 25,000 square cubic meters of condensate and export gas via the Norwegian Sea Gas infrastructure. The supplier will also design and prepare specifications for steel rigid risers and a complete mooring system. Part of the work will begin in the middle of August, with completion of deliveries set for mid-December 2015. This letter of intent will contribute to securing the overall progress plan for Aasta Hansteen. The investment decision is expected in late 2012/early 2013, with production start-up at the end of 2016.
Project Details: Aasta Hansteen (Luva)
Bentley Pre-Production Flow Test Performs Well
Jul 12, 2012 – Xcite Energy reported that pre-production flow test on the Bentley field is progressing well with the planned shut-in period and pressure build-up test commencing on July 11 following the initial, successful, clean-up and first oil flow on July 9. This planned shut-in period and pressure build- up test is designed to obtain key information about the Bentley reservoir and the mobility of its fluid for use in interpreting the subsequent flow data and for planning the next step of the Bentley field development.
Project Details: Bentley
Talisman Evacuates Personnel from Yme Platform
Jul 11, 2012 – Talisman Energy has evacuated construction personnel from the Yme oil platform in the Norwegian sector of the North Sea after structural issues were discovered. The operator removed 140 workers from the Yme platform late Tuesday after finding weaknesses in the platform’s supporting structure. Dow Jones reported that in May the company took a $250 million write down on the project and delayed production for an unspecified amount of time. It also said the standards to which the platform had been built had fallen behind Norwegian standards. Oil production was scheduled to start next year.
Project Details: Yme
Ithaca Spins Bit at Hurricane Appraisal
Jul 10, 2012 – Ithaca Energy has commenced exploratory drilling on the Hurricane appraisal well in Block 29/10b, which lies within the Greater Stella area in the UK sector of the North Sea. The well is being drilled by the WilHunter (mid-water semisub). Drilling should take between 75 to 85 days to complete, including the performance of a drill stem test. The Hurricane discovery well, 29/10-4z, was drilled by Shell in 1995. The well encountered 41 degrees API light oil in Eocene Rogaland sands in the western lobe of the structure. The appraisal well will be drilled to the base of the Tertiary section in the eastern lobe of the mapped structure and is designed to satisfy three primary objectives: to confirm the nature and volume of recoverable hydrocarbons; calibrate the hydrocarbon contact with seismic amplitude; and verify the distribution, quality and connectivity of the reservoir. Upon successful completion of the appraisal well objectives, the wellbore will be suspended for future re-entry and completion as a production well.
Project Details: Stella/Harrier
Jul 10, 2012 – WGP has completed the 15th Life of Field Seismic (LoFS) survey over the Valhall field in the North Sea for BP. The company acquired the full data set of 2,552 kilometers in six weeks, which included time for mobilization and demobilization. This data will help enhance the life of the Valhall field, stated the company.
Project Details: Valhall
Barryroe Discovery Could be Larger than Anticipated
Jul 9, 2012 – Providence Resources might be sitting on more than one billion barrels of oil in place at its Barryroe discovery, according to a research report issued by oil analysts at London-based Liberum Capital. The research note stated that Liberum estimates Barryroe could contain around one billion barrels of oil in place and more than 160 million barrels of recoverable oil based on technical disclosures concerning the Barryroe well made by Providence. These figures are around three times what investors in Providence are expecting from Barryroe, according to Liberum.
Project Details: Barryroe
Xcite Energy Signs Loan Deal for Bentley Phase 2 Development
Jul 9, 2012 – Xcite Energy has signed a five-year, $155 million loan agreement with a group of lending institutions, secured against oil reserves, which will provide funding for Phase 1B development of its Bentley heavy oil field. The loan facility is subject to certain conditions and the achievement of targets in the Bentley Phase 1A development work program, including the drilling of a well and a flow test.
Project Details: Bentley
PSA Audits Statoil’s Compliance During Module Construction for Gudrun
Jul 6, 2012 – The Petroleum Safety Authority Norway (PSA) conducted an audit of Statoil’s compliance with regulatory requirements during engineering and construction of the wellhead and process modules for the Gudrun facility. The audits were conducted in Asker from May 8-9, 2012 and on the construction site in Thailand from May 14-16, 2012 and focused on electrical systems, instrumentation and technical safety disciplines.
The objective of the audit was to ensure Statoil’s compliance with requirements to establish and implement technical and operational barriers. Special emphasis was placed on how Statoil and its partner Aibel, promotes the understanding of interactions between operator, development project, suppliers and operations preparations. Two nonconformities were identified in relation to the system for electrical power supply and for establishment of barrier performance requirements. Improvements were suggested for flame detection and the command structure in the emergency shutdown system.
Project Details: Sleipner Area
BP Receives Go Ahead for Use of Safe Scandinavia on Valhall
Jul 6, 2012 – BP Norge AS (BP) received approval from Norway’s Petroleum Safety Authority (PSA) to use the Safe Scandinavia facility as a flotel on the Valhall field from July 1, 2012 to January 1, 2013. Aker Verdal’s Safe Scandinavia was built in 1984 and has been contracted for the Valhall field numerous times with the last contract expiring in March 2012. The 583-bed facility received the PSA’s Acknowledgement of Compliance in April 2007.
Project Details: Valhall
Asia – SouthEast
Lundin Begins Malaysian Drilling Campaign
Jul 10, 2012 – Lundin Petroleum has commenced its 2012 Malaysian drilling campaign with the spud of the Tiga Papan 5 well in the SB307 & SB308 Blocks offshore Sabah, East Malaysia. The well will target mid-Miocene aged sands of the Tiga Papan unit previously tested (in 1982) with the original discovery well that flowed at a cumulative rate of 5,631 bopd. A vertical well will test the un-appraised fault block to the east of the original Tiga Papan 1 discovery well. In the event of a discovery, the well will be sidetracked into the same fault block as the original discovery well to test the down dip extension of the pay zones previously encountered. The well will be drilled with the Offshore Courageous (350′ ILC) in a water depth of approximately 164 feet (50 meters) to a depth of 5,482 feet (1,671 meters). The well is the first of the five-well program planned in 2012 by Lundin Malaysia BV.
PTTEP: Oil Production at TGT to Hit 55,000 BPD
Jul 9, 2012 – PTTEP reported that oil production from the offshore Vietnam 16-1 project will hit 55,000 bopd by the fourth quarter of this year due to the successful installation of a second wellhead platform. Oil production at the Te Giac Trang (TGT) field, where the newly installed wellhead is sited, is currently at 41,000 bpd. The TGT field is located off the southern coast of Vietnam, 62 miles (100 kilometers) from Vung Tau province. The project consists of a floating, production, storage, and offloading unit, two wellhead platforms and a subsea pipeline system. The development came online in August 2011.
Project Details: Te Giac Trang (White Rhinoceros)
N. America – US Alaska
BP Shelves Liberty Oil Project Offshore Alaska
Jul 11, 2012 – BP is shelving its Liberty project in Alaska after deciding that the current development plan is not up to the stricter standards the company has enforced, reported Dow Jones. The oil project was anticipated to produce about 40,000 bopd. The company stated it is working with regulators to discuss potential ways to move the project forward.
Project Details: Liberty
Africa – West
Exxon Starts Production from Clochas Mavacola Oil Project
Jul 9, 2012 – ExxonMobil has commenced production at the Kizomba Satellites Phase 1 project offshore Angola, and is expected to produce 100,000 bopd from two large deepwater fields, Mavacola and Clochas. The initial phase of the Kizomba Satellites project ties 18 new wells to production facilities already in use tapping other oil fields in the Block 15 area.
Project Details: Kizomba, Block 15
S. America – Brazil
Total Acquires Xerelete Field
Jul 10, 2012 – Total became operator of the offshore Xerelete concession, located around 155 miles (250 kilometers) off the coast of Rio de Janeiro. The oil field, discovered in 2001, contains relatively heavy oil. A pre-salt prospect has also been identified below the Xerelete structure, which lies around 25 miles (40 kilometers) west of the recently announced Pao de Acucar discovery. Total plans to start drilling activities in 2013. Total and Petrobras each hold a 41.2% interest in the concession, while BP holds the remaining 17.6 %.
Jul 9, 2012 – Vanco has spud the Sabia well in the BM-S-72 block in the southern Santos Basin offshore Brazil. The well is being drilled by the GSF Arctic I (mid-water semisub). The Sabia well is located offshore approximately 143 miles (230 kilometers) south of the city of Santos in a water depth of approximately 656 feet (200 meters). The well will be vertically drilled with a target depth of 14,718 feet (4,486 meters). The primary reservoir target for this well is post-salt sandstones of the Itajai-Acu formation, expected to be encountered at around 12,139 feet (3,700 meters) below mean sea level. The prospect is also targeting secondary sandstone in the Ilha Bela member of the Jureia formation. Drilling operations should take about two to three months, and after finishing this well the rig will drill the Canario prospect (BM-S-63) and the Jandaia prospect (BM-S-71).
Project Details: Sabia
Mediterranean
Noble Energy to Flow Test Pinnacles Reservoir
Jul 10, 2012 – Noble Energy has completed an extensive test of the Pinnacles 1 well and its production facilities. The operator will now flow test the Pinnacles reservoir, during which the gas composition and gas treatment measures will be tested. Flow tests are expected to begin in the near future and last for several days.
Delek Updates Tanin’s Contingent Resources
Jul 10, 2012 – Delek Group has reported details on the Tanin reservoir, specifically, 81 percent of the high estimate of Tanin’s contingent resources is within the Alon A licenses, and that the rest is within the Alon B and Amit licenses. The low and best estimates are wholly within the Alon A license, stated Netherland Sewell & Associates. NSAI contingent estimates for Tanin are as follows: low estimate of 160 billion cubic feet (Bcf); best estimate of 592 Bcf, and a high estimate of 1,035 Bcf. The prospective estimates are: low estimate of 359 Bcf; best estimate of 471 Bcf, and a high estimate of 607 Bcf. The best estimate for Tanin’s proven and contingent reserves makes it the third largest natural gas discovery after Delek and Noble Energy’s Tamar and Leviathan discoveries of 9.7 trillion cubic feet and 17 trillion cubic feet, respectively.
Project Details: Tanin
Australia
Jul 12, 2012 – Total has increased its stake in the Ichthys LNG project to 30 percent through the acquisition of a further 6 percent interest from its partner INPEX. Total commented that the acquisition will not have an impact on any of the LNG offtake agreements that have been arranged.
Project Details: Ichthys
Technip Wins $61M Subsea Contract for Balnaves Field Development
Jul 10, 2012 – Apache Energy awarded Technip a subsea installation contract worth around $61 million for the Balnaves oil field development. The project is situated in a water depth of about 442 feet (135 meters). The contract covers the project management, design, engineering and installation of 4.3 miles (7 kilometers) of flexible flowlines and risers and 1.9 miles (3 kilometers) of umbilicals. It also includes the transportation and installation of the subsea equipment including the manifolds, spools, flying leads, jumpers and a mooring system and riser column. First production from the $438-million development is scheduled in 2014, with gross peak production of approximately 30,000 barrels of oil per day and estimated gross recoverable resource of 17 million barrels of oil and 30 billion cubic feet of gas.
Project Details: Balnaves
Related articles
- Noble Energy Linking Noa and Pinnacles to Mari B Platform (mb50.wordpress.com)
- Israel: Pinnacles Delivers First Gas (mb50.wordpress.com)
- PHOTOS: Express installing subsea manifolds ” Helix Currents (mb50.wordpress.com)
- Recap: Worldwide Field Development News (Jun 22 – Jun 28, 2012) (mb50.wordpress.com)
- Recap: Worldwide Field Development News (May 18 – May 24, 2012) (mb50.wordpress.com)
Recap: Worldwide Field Development News (Jun 22 – Jun 28, 2012)
This week the SubseaIQ team added 4 new projects and updated 29 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
Jun 27, 2012 – BP is selling its interests in the Alba and Britannia fields in the UK sector of the North Sea to Mitsui & Co. for $280 million. Net BP production from the two fields averages some 7,000 barrels of oil per day. The sale comprises BP’s 13.3-percent stake in Alba and 8.97-percent stake in Britannia. Completion of the deal is anticipated by the end of 3Q 2012, subject to regulatory and other licensee approvals.
Project Details: Alba
Statoil Explores Brugdan Prospect
Jun 27, 2012 – Statoil has commenced exploratory drilling at its Brugdan prospect in License 006, Block 6104/21, in the Faroe Islands. The operator is using the COSLPioneer (mid-water semisub) to drill the well. Statoil expects drilling operations to take four to five months.
Project Details: Brugdan
Agora O&G Farms-In to Geite Prospect
Jun 27, 2012 – Bridge Energy has executed an agreement with Agora Oil & Gas for the farm-down of a 15-percent working interest in Production Licenses 497 and 497B. After the transaction Bridge Energy will hold a 15-percent working interest in the two licenses. Cairn will, as a consideration for the transaction, carry a substantial share of Bridge Energy’s well cost. Geite, the main prospect in the licenses is scheduled for drilling in 3Q 2012.
Project Details: Geite
Noreco Increases its Interest in Maja License
Jun 27, 2012 – Noreco has increased its interest in the Maja License (9/95) on the Danish Continental Shelf from 12 to 16.4 percent, and the license period has been extended for two years. The license contains part of the Gita discovery which was made in 2009. A new exploration well is now being planned in the license. The increase in ownership takes place at no charge, following a partner’s withdrawal from the license. Operator for the Maja license is Maersk Oil with 42.6 percent interest. Other partners are DONG Energy with 27.3 percent interest and Danoil with 13.7 percent interest.
Project Details: Gita
Aker Solutions Awarded Frame Agreement Contract for Norwegian Fields
Jun 27, 2012 – ExxonMobil awarded Aker Solutions a frame agreement for fields located on the Norwegian Continental Shelf. The frame agreement covers engineering, procurement, construction and installation of several fields, including Balder, Jotun A, Jotun B and Ringhorne. The fixed contract duration is five years from 2012 to 2017, with options for two additional five year periods. The frame agreement will be managed from Stavanger.
Project Details: Jette (Jetta)
Technip to Install Subsea Equipment for Alma/Galia Development
Jun 25, 2012 – EnQuest Britain awarded Technip a contract for the development of the Alma and Galia fields in the UK sector of the North Sea. The scope of work includes installation of two 10-inch production flexible flowlines, one 8-inch water injection flexible flowline and one further 8-inch production flexible flowline; installation of three 8-inch flexible risers; installation of two production control umbilicals/risers; installation of four power cables and associated dynamic risers; procurement, fabrication and installation of a 175-ton manifold structure; and associated trenching operations, tie-ins, testing and commissioning. The fields will be tied-back to the EnQuest Producer FPSO, which are located in a water depth of about 262 feet (80 meters).
Project Details: Alma/Galia
Premier to P&A Coaster Prospect
Jun 25, 2012 – Premier Oil will plug and abandon the Coaster exploration well at UK Block 28/10 as a dry hole. The operator commenced exploratory drilling in the beginning of June.
Project Details: Coaster
PA Resources Wins Contract Extension
Jun 25, 2012 – The Danish Energy Agency has extended PA Resources Licenses 12/06 and 9/06 by two years. License 12/06 is operated by the company with a 64% interest; and license 9/06 is operated by Maersk, wherein the company has a 26.8% stake. The 12/06 permit contains last year’s Broder Tuck gas/condensate and Lille John oil discoveries. PAR plans to drill an appraisal well at Lille John and is negotiating a drilling management contract. In 2009, the Gita 1X-well in license 9/06 encountered indications of hydrocarbons in the Middle Jurassic high-pressure/high-temperature (HP/HT) secondary target, but with low permeability. Subsequent studies have not lowered the producibility risk. There is no well commitment but a decision regarding drilling must be made by October 2013. In the meantime, further subsurface studies will be performed to evaluate prospectivity at Upper Jurassic and shallower Cretaceous and Tertiary levels.
Project Details: Lille John
Apache Reports Tryfan is Sub-Commercial
Jun 25, 2012 – Valiant Petroleum has completed drilling at the Tryfan prospect in UK Block 3/17. The well encountered both Frigg and Dornoch sandstones on prognosis with a small gas column present at the top of the Frigg formation interpreted to be sub-commercial. The well will now be plugged and abandoned.
Project Details: Tryfan
Hertel Offshore Signs EPC Contract for Draugen Platform
Jun 22, 2012 – Hertel Offshore has signed a contract for the EPC delivery of the Shell Draugen Additional Living Quarter, which will accommodate 44 people and will be designed according to the Norsok standards. Work has commenced and delivery of the module is scheduled for May 2013. Construction will be done at the Hertel Offshore premises in Rotterdam, The Netherlands.
Project Details: Draugen
S. America – Brazil
InterMoor Completes Conductor Fabrication, Installation Proj. for Shell
Jun 27, 2012 – InterMoor has completed the installation of the electrical submersible pump conductors for the artificial lift manifold as part of the Shell BC-10 phase two project. InterMoor was responsible for the fabrication and installation of four conductors in addition to one spare conductor for the project. Weighing in at more than 70 metric tons, the conductors measured 48 inches in diameter and 197 feet (60 meters) long with a 1.5-inch wall. The conductors were installed in water depths up to 5,600 feet (1,707 meters) off the coast of Brazil in the northern Campos Basin.
Project Details: Parque das Conchas (BC-10)
Australia
BHP Billiton Encounters Water at Banambu Deep Prospect
Jun 28, 2012 – BHP Billiton will plug and abandon the Banambu Deep-1 well as wire-line logs show that the well is water-bearing. The well, located in permit WA-389-P, lies in waters 1,050 feet (320 meters) deep. The well was drilled to 15,470 feet (4,696 meters) measured depth (mMD) on June 26, 2012, within the Mungaroo Formation.
Project Details: Banambu Deep
ConocoPhillips Set to Spud Boreas-1
Jun 28, 2012 – ConocoPhillips is moving forward with drilling of the Boreas-1 exploratory well in WA-314-P following the final function testing of the blowout preventers for the semisub Transocean Legend (mid-water semisub). The BOPs and marine riser were run to the sea floor, and after function testing, were pulled from the hole for further repair and maintenance. After passing all checks on the surface, they have been re-run to the seafloor for final subsea function testing. The company will drill the second well in the program, Zephyros-1, in permit WA-398-P approximately 4.9 miles (8 kilometers) southwest of the Kronos-1 discovery location. The third well, Proteus-1, will be drilled in WA-398-P approximately 8.6 miles (14 kilometers) southeast of the Poseidon-1 discovery location.
Project Details: Boreas
Apache Ready to Drill Balnaves Deep-2 Prospect
Jun 27, 2012 – Apache is ready to spud its Balnaves Deep-2 prospect offshore Australia, but is waiting on approval from the Australian government to move forward. The operator will use the Atwood Falcon (DW semisub) for drilling operations.
Project Details: Balnaves
Technip Pens Ichthys FPSO Services Contract
Jun 22, 2012 – Technip received a contract to provide services to the Ichthys FPSO, which will be located in the Browse Basin, Western Australia, at a water depth of 820 feet (250 meters). Under the agreement, Technip will provide engineering and procurement assistance for the topside facilities of the 1.2 million barrels storage capacity FPSO to South Korea’s Daewoo Shipbuilding & Marine Engineering. The Ichthys LNG project is expected to produce 8.4 million tonnes of LNG, 1.6 million tonnes of liquefied petroleum gas and 100,000 barrels of condensate.
Project Details: Ichthys
Nexus Energy Eradicating Longtom Producton Problem
Jun 22, 2012 – Nexus Energy Limited announced that the vessel to inspect and potentially rectify the electrical fault that caused the suspension of production on the Longtom field has arrived. Initial inspections have identified the fault to be contained within a specific section of the offshore system, which has enabled an engineering solution to be developed with implementation and associated production expected by month end. Given the mobilization of the specialized vessel, the opportunity is being taken to expand the inspection program to include additional sections of the offshore system, stated the company.
Project Details: Longtom
S. America – Other & Carib.
Edison Farms-In to Falkland Acreage
Jun 27, 2012 – Falkland Oil and Gas has executed a farm-out agreement with Edison International in relation to its licenses in the Falkland Islands. Edison will farm-in and earn a 25 percent interest in FOGL’s northern area license, which contains the Loligo prospect, in return for which it will contribute a pro-rate share of the costs of the 2012 drilling program – comprising two exploration wells. Edison will also farm-in and earn a 12.5 percent interest in FOGL’s southern area license, containing the Undine prospect, and will contribute to the 2012 work program. Meanwhile, Edison has agreed to pay its pro-rate share of certain historical costs incurred by FOGL during 2011 related to the 2012 drilling program. Edison’s share of these costs is expected to be around $50 million. FOGL expects to receive the Leiv Eiriksson (UDW semisub) in July to commence the drilling program.
Mediterranean
Eni Turns on Taps at Seth Field
Jun 28, 2012 – Eni has commenced gas production from the Seth field off the coast of Egypt. The field is expected to produce about 4.8 MMcm/d. The Seth project consists of a platform placed at a water depth of 262 feet (80 meters), two production wells and a pipeline of 6.8 miles (11 kilometers). The pipeline links the platform to the onshore processing facility in El Gamil.
Noa North Comes Online
Jun 27, 2012 – Noble Energy has begun gas flow from the Noa North field in the Mediterranean. The field was completed as a subsea tie-back to the Mari-B platform. Mari-B is the first offshore natural gas production facility in the State of Israel. Noble Energy is the operator of the project with a 47.059 percent working interest.
KBR to Execute Pre-FEED Study for Tamar Field
Jun 27, 2012 – KBR will execute a pre-FEED study for a project located off the coast of Israel. KBR will provide the pre-FEED study for the King liquefied natural gas-floating production storage and offloading (LNG-FPSO) facility currently being evaluated for Noble Energy’s Tamar gas field off the coast of Israel.
Project Details: Tamar
Africa – West
Rialto Awards FEED Contract to Petrofrac
Jun 27, 2012 – Rialto Energy has awarded Petrofrac a Front End Engineering Design (FEED) contract for Block CI-202, containing the Gazelle field, offshore Cote d’Ivoire. Work is scheduled for completion in October. Rialto is working to fast track first hydrocarbons. It expects to award further contracts before the end of this year. The field development plan and gas agreement has been approved by the Cote d’Ivoire authorities and the production facilities will consist of a fixed production platform at the Gazelle field with separate oil and gas pipelines from the platform to shore.
Project Details: Gazelle
BP Gets Govt Nod to Namibia Farm-In
Jun 25, 2012 – Namibia’s Minister of Mines and Energy has approved BP’s farm-in of 30 percent to Serica Energy’s offshore Luderitz basin license 0047. The agreement was first announced in March. BP will cover the entire cost of a 3D seismic survey over an area of up to 1.025 million acres (4,150 square kilometers) across the concession. Participants in the block are now Serica Energy (55%); BP (30%); National Petroleum Corp. of Namibia (10%); and Indigenous Energy (5%).
Asia – SouthEast
Otto Granted Extension to Explore Offshore Philippines Block
Jun 27, 2012 – Otto Energy reported that the Philippines Department of Energy has granted a nine-month extension to the third exploration sub-phase of Service Contract 69 in the offshore Visayan Basin. The extension will give the consortium additional time to evaluate three potential targets on the block – Lampos, Lampos South and Managau East. Otto said it will use the extension period to start planning for an exploration well.
Salamander to Conduct DST on Far East Prospect
Jun 27, 2012 – Salamander Energy reported that the Far East prospect on the Bualuang field in License B8/38 in the Gulf of Thailand has reached a total vertical depth of 4,580 feet (1,396 meters) and is currently being prepared for a Drill Stem test. The well encountered an 82 foot (25 meter) section of excellent quality T5 Miocene sandstones, the primary target on depth prognosis. However, following the acquisition of a full suite of wireline logs, these sandstones are interpreted to be water-wet, with no evidence of hydrocarbon saturation. The well was then deepened to test the secondary objective. The well penetrated a conglomeratic section overlying the Ratburi carbonates from 4,423 feet (1,348 meters) TVDSS to current total depth (“TD”). Oil shows were observed at 4,482 feet (1,366 meters) TVDSS and severe mud losses were experienced from 4,495 feet (1,370 meters) TVDSS. Interpretation of logging while drilling data shows zones of potential oil pay in highly porous section from 4,478 feet (1,365 meters) to current TD.
Project Details: Bualuang
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Aker Solutions to Provide Well Intervention Services to Statoil (Norway)
Aker Solutions has been awarded two contracts from Island Offshore to provide well intervention services for Statoil in the North Sea.
Scope of work is to deliver downhole well intervention services from Island Offshore’s two riserless well intervention vessels Island Frontier and Island Wellserver. These operations include running of mechanical wireline, electrical wireline and wireline tractor services.
The two contracts are valid for five years plus two optional two-year extensions (5+2+2). They will run from 2015, when the current contracts expire.
Aker Solutions has provided downhole services from Island Frontier since 2006 and Island Wellserver since 2009.
Aker Solutions estimates that the two contracts in total will generate revenues between NOK 400 and 500 million during the firm five-year period.
“Through our cooperation with Island Offshore, Aker Solutions has become the world’s most experienced provider of downhole services through riserless light well intervention. To date we have together completed close to 200 interventions on subsea wells. We are thrilled to be able to continue our partnership with them,” says Wolfgang Puennel, head of well intervention services in Aker Solutions.
Well intervention services are carried out in an oil or gas well, with the objective of maximising production and increasing the recovery rate of oil and gas. Well intervention has traditionally been performed from fixed platforms. In more recent years, specially equipped ships have been developed to undertake the same type of service on subsea wells, where recovery rates have been much lower.
500 million Norwegian kroner = 82.4 million U.S. dollars
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Norway: FMC to Provide LWI Services to Statoil
FMC Technologies, Inc., a global provider of technology solutions for the energy industry, has signed two five-year contracts with Island Offshore Management AS to supply Light Well Intervention (LWI) services for use by Statoil in the North Sea, contingent on approval from Statoil’s partners. Each contract contains options for two, two-year extensions.
FMC’s LWI services enable cost effective intervention and maintenance operations to be performed on existing subsea wells, resulting in higher recovery rates and accelerated production volumes in mature subsea oil fields. The contracts will commence when the existing LWI contracts between the companies expire in 2015. The well intervention activities will be conducted from two Island Offshore vessels, the Island Frontier and the Island Wellserver.
“Reducing the cost of operations and increasing oil recovery are two key benefits of the LWI system,” said Tore Halvorsen, FMC’s Senior Vice President of Subsea Technologies. “Demand for these services will continue to grow as the number of subsea wells increase, and we are pleased to continue to support Statoil with our LWI services.”
Norrway’s oil giant Statoil yesterday awarded contracts for new light well intervention (LWI) vessels. These “category A” units will contribute to increased recovery from Statoil’s approximately 500 operated subsea wells on the Norwegian continental shelf (NCS). Statoil has awarded contracts to Island Offshore Management and Eide Marine Services for the charter of a total of three LWI vessels.
“These contracts prove that Light Well Intervention will also in the future be a common part of oil and gas recovery on the Norwegian Continental Shelf. Island Offshore is proud to announce another milestone as a validation of our efforts and investments in this market segment,” commented Robert Friedberg of Island Offshore.
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Statoil Charters Light Well Intervention Vessels to Increase Recovery
Statoil has awarded contracts for new light well intervention (LWI) vessels. These “category A” units will contribute to increased recovery from Statoil’s approximately 500 operated subsea wells on the Norwegian continental shelf (NCS).
Statoil has on behalf of relevant licensees awarded a contract to Island Offshore Management and Eide Marine Services for the charter of a total of three LWI vessels.
These purpose-built vessels are used for performing light well interventions, well operations and well maintenance without a riser-based system. Statoil can reduce well intervention costs by about 60% by utilizing a LWI vessel instead of a conventional rig.
“Performing these types of conventional jobs on subsea wells with low volumes of oil in place is expensive. The LWI vessels ensure both cost-efficient and safe operations,” says Statoil’s head of drilling and well Øystein Arvid Håland.
“Having more and new vessels of this category also helps increase recovery from fields on stream by opening new zones in the well, and stopping water production downhole.”
The contracts are worth a total of NOK 9.4 billion (USD 1.57 billion).
Island Offshore vessels Island Frontier and Island Wellserver, which already have contracts with Statoil, have been awarded new five-year contracts. Eide Well Intervention, a new supplier in this segment for Statoil, has been awarded an eight-year contract for their new build, which employs a completely new technology.
The contracts with both companies come into effect in the spring of 2015, and include two options to extend for another two years.
A growing number of discoveries are developed via subsea wells, and it is important both to have equipment capable of maintaining these and to avoid using conventional drilling rigs for this type of work.
The rig market on the NCS is characterized by an aging rig fleet, and it is necessary to ensure sufficient and adequate rig capacity at sustainable rates. To address this, Statoil has put light LWI vessels – category A units – into service on a large scale.
“We have great ambitions and a long-term perspective on the NCS. Using purpose-built rigs and vessels in our operations is an important part of Statoil’s rig strategy. The high number of subsea wells in the future will require maintenance, and we are securing capacity in order to meet this need,” says Statoil’s chief procurement officer Jon Arnt Jacobsen.
“Island Offshore has delivered solid services and we expect the same going forward. At the same time we are pleased to have increased the number of suppliers in this market, and through the Eide Well Intervention newbuild we are also employing the latest available technology. Together these three vessels will provide us with an efficient service fleet for light well intervention services.”
Statoil has been pursuing riserless well intervention in subsea wells since 2000, and the technology has steadily improved.
The category A units will perform services for Statoil and the partners on the Åsgard, Norne, Gullfaks, Oseberg, Heidrun, Snøhvit, Tyrihans, Tordis/Vigdis, Snorre, Statfjord and Sleipner fields.
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