This week the SubseaIQ team added 7 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.
S. America – Brazil
May 9, 2013 – BP announced its intention to sell its 60% operated interest in the Polvo field to HRT Oil & Gas for $135 million in cash. Polvo is located in the southern part of the Campos Basin in block BM-C-8. Oil from the field is produced through a fixed drilling and production platform tied to an FPSO. The transaction is subject to regulatory approvals, but BP expects the deal to close in the second half of 2013. If approved, HRT will make the transition from a pure exploration company to a small oil producer. Currently, the field is producing at a rate of 13,000 bopd.
Project Details: Polvo
May 8, 2013 – Brazilian exploration and production company OGX reached an agreement to sell 40% of its interest in Campos Basin blocks BM-C-39 and BM-C-40 to Petronas for a reported $850 million with an effective date of May 1. Based on the agreement, Petronas will acquire an interest in the Tubarao Martelo oil field with its 285 million barrels of recoverable resources along with the Inga and Pero prospects which are all located within the two blocks. Production from Tubarao Martelo is expected to begin by the end of the year. The transaction is subject to approval by Brazil’s National Petroleum, Natural Gas and Biofuels Agency and the Brazilian Council for Economic Defense.
Project Details: Tubarao Martelo (Waikiki)
May 7, 2013 – Karoon announced its second oil discovery of the current 3-well exploration program in the Santos Basin. The company announced a 656-foot gross oil pay made up of interbedded sand and shale intervals encountered while drilling the Bilby-1 well in block S-M-1166. Wireline testing of the pay zone is currently underway. Once complete, drilling will continue to the planned depth of 15,003 feet where Karoon hopes to find hydrocarbon-bearing Santonian aged reserovoirs. Completion of the Bilby well will mark the end of the exploration program.
Project Details: Bilby
Asia – SouthEast
May 8, 2013 – Nido Petroleum and its partner, Philippine National Oil Company (PNOC), have approved a work plan and budget to spud a wildcat on the Baragatan prospect in SC 63 offshore Palawan Island. Nido will serve as technical operator while drilling operations are underway. The well will be drilled when a suitable jackup becomes available and all regulatory approvals are secured. Bragatan is estimated to hold mean risked recoverable oil volumes of 115 million barrels with an upside of 166 million barrels.
Project Details: Baragatan
May 7, 2013 – The Ensco 107 (400′ ILC) is expected to drill an exploration well targeting the Cua Lo prospect in Block 105 off Vietnam in June 2013. Participants in the block include Eni (50%) serving as operator, Neon Energy (25%) and KrisEnergy (25%). Interpretation of 3D seismic over the area is ongoing and the joint venture is attempting to finalize the drilling location to maximize the exposure of multiple potential pay zones. A Prospective Resource Assessment of the block has confirmed best estimate gross unrisked prospective recoverable resources of 3.9 Tcf.
Project Details: Cua Lo
May 6, 2013 – ROC Oil advised that drilling of the Bentara-3 well in the Balai Cluster RSC has commenced. The well is the fifth and final well in the Balia Cluster pre-development/appraisal drilling program. Once the well is complete the joint venture partners will review the data and determine the economic viability of the fields. If the decision is made to move forward, a formal field development plan will be submitted.
Project Details: Balai Cluster
N. America – US GOM
May 10, 2013 – Total depth has been reached in the B-1 well in Main Pass 108 block in the US Gulf of Mexico. The well, drilled by the Hercules 202 (200′ MC), was designed to target a potential 1.8 MMboe in the Tex W-6 Sand. It is possible that B-1 will be completed and on production by July. At that point, the Hercules 202 will skid over and spud the B-2 well which is targeting similar reserves. If successful, the B-2 well could be on line by 4Q 2013.
Project Details: Main Pass 108
May 8, 2013 – ExxonMobil and its partner, Statoil, have agreed to proceed with development of the Julia oil field in the US Gulf of Mexico. Julia was discovered in 2007 and is estimated to hold almost 6 BBbbls of oil. The $4 billion project is expected to start producing in 2016. Phase 1 of the development will be designed to produce 34,000 bopd from 6 subsea wells tied back to the Jack/St. Malo production facility. A development drilling program is planned to be kicked-off in 2014 in waters ranging from 4,000 to 8,700 feet. ExxonMobil, the field operator, and Statoil each hold a 50% stake in the field.
Project Details: Jack/St. Malo
May 8, 2013 – Royal Dutch Shell made its final investment decision on the Stones ultra-deepwater oil and gas development project in the US Gulf of Mexico. At 9,500 feet deep, Stones is expected to host the world’s deepest production facility. Announcement of the decision sets in motion the construction of a floating, production, storage and offloading (FPSO) vessel along with all of the associated subsea infrastructure. Initially, two developments well will be tied back to the FPSO with six additional wells to follow at a later date. Peak production for the first phase is expected to peak at 50,000 boed. The Stones reservoir is estimated to hold more than 2 BBboe.
Project Details: Stones
Marathon Development Continues off Louisiana Coast
May 6, 2013 – A fifth development well has been spud on the Apache-operated Marathon gas and condensate field in the Atchafalaya Bay off the coast of Louisiana. Marathon-4 is being drilled by the Parker 76-B (inland barge) in 8 feet of water and is targeting the Marathon formation at roughly 18,700 feet total depth. It is estimated to take 4-months to drill, complete and tie-in the well to existing production facilities. The Marathon field is operated by Apache who maintains a 48.75% interest. Petsec Energy holds 8% while private investors make up the remaining 43.25%.
N. America – Canadian Atlantic
May 8, 2013 – Husky Energy, operator of the White Rose field in Canada’s Jeanne d’Arc Basin, awarded a pair of development contracts associated with the South White Rose Extension project to Technip. The first contract is set to be carried out in 2013 and includes the supply and installation of gas injection flowlines, umbilicals and various subsea structures. Execution of the second contract will commence in 2014 and will involve the supply and installation of flowlines and subsea structures to support oil production and water injection. Husky has started a development drilling program and anticipates production start-up in 2014.
Project Details: White Rose
Europe – North Sea
May 8, 2013 – Cairn Energy announced it will farm-in to licenses FEL 2/04, FEL 4/08 and six adjacent licensing option blocks in the Porcupine Basin west of Ireland. Included in FEL 2/04 are the Spanish Point gas condensate discovery and the Burren oil discovery. The farm-in is subject to regulatory and partner approval. If approved, Cairn becomes the operator and acquires a 38% working interest by paying a pro-rated share of back costs for a consideration of $4.1 million and 63.33% of exploration and appraisal costs up to two wells, subject to a cap. An appraisal of Spanish Point is expected to be drilled in 2Q 2014.
Project Details: Spanish Point
May 7, 2013 – The UK Department of Energy and Climate Change (DECC) approved an addendum to the Ettrick Field Development Plan (FPD) that was submitted in November 2012. Partners in the field include operator Nexen Petroleum (79.73%), Dana Petroleum (12%) and Atlantic Petroleum (8.27%). Ettrick was discovered in 1981 and began producing in 2009. Approval of the addendum will allow an infill production well to be drilled near the crest of the field. The well should be tied into the Aoka Mizu FPSO near the end of 3Q 2013.
Project Details: Ettrick
May 7, 2013 – Appraisal well 16/2-21 has been spud by the Bredford Dolphin (mid-water semisub) in the Johan Sverdrup discovery on the Norwegian continental shelf. The central part of the discovery is being tested in an effort to establish the depth, quality and thickness of the Jurassic reservoir sequences. Information obtained from this well will aid in developing a drainage and development strategy which is expected to be announced at the end of the year. Well 16/2-21 is the first in a three-well appraisal campaign that will be carried out through 2013.
Project Details: Johan Sverdrup
May 7, 2013 – Lundin Petroleum reports the previously announced production test of the Luno II discovery well is complete. Well 16/4-6S was drilled by the Bredford Dolphin (mid-water semisub) and encountered 131 gross feet of oil pay. A flow rate of more than 2,000 bopd was achieved through a 48/64 inch choke with a gas to oil ration of 1,100 scf/bbl. Lundin estimates the Luno II structure to contain gross contingent resources of 25 to 120 MMboe along with 10 to 40 MMboe of prospective resources for he Luno II North segment.
Project Details: Luno II
S. America – Other & Carib.
May 8, 2013 – Shell’s exploration campaign off the coast of French Guiana continues with the recent spudding of well GM-ES-4 on the Cebus prospect in the Guyane Maritime Permit. Cebus is the third well in the four-well program. The well will test the hydrocarbon potential of a different fan system than that of the two previous wells that failed to find pay.
Last week, OGX, the Brazilian oil and gas company responsible for the largest private-sector exploratory campaign in Brazil, has delivered its first shipment of approximately 600,000 barrels of oil to Shell Western Supply and Trading Ltd. (“Shell”).
On March 27, 2012, the Company, owned by Eike Batista, initiated the process of offloading the first shipment of OGX’s oil. At the conclusion of the procedure, a Bill of Lading was issued certifying that the shuttle tanker had taken possession of the oil. This shipment is bound for Europe, where Shell intends to process the oil in one of its refineries. On October 2011, OGX signed its first sales contract with the Anglo-Dutch partner, for the delivery of 1.2 million barrels of oil in two batches of 600,000 barrels each.
“The shipment of the first batch of oil to Shell represents the beginning of OGX’s cash generation and an important step towards the establishment of the Company as a major player in global E&P,” commented Paulo Mendonça, general Officer and Exploration Officer of OGX.
- Brazil: OGX Encounters Huge Hydrocarbon Column in Santos Basin (mb50.wordpress.com)
- Bullish on Brazil: Billionaire Batista to Buy $1 Billion of Additional Shares of OSX (gcaptain.com)
- Offshore and Subsalt Discoveries in Brazil – Market Analysis, Competitive Landscape and Production Forecasts to 2015 (prnewswire.com)
OGX, a largest privately owned oil & gas company in Brazil, today announced that it has identified the presence of hydrocarbons in the Albian and Aptian sections of well 1-OGX-63-SPS in the BM-S-57 block, in the shallow waters of the Santos Basin. OGX holds a 100% working interest in this block.
“This discovery is important for its huge hydrocarbon column and net pay identified in the Albian section, as well as by the quality of the Aptian reservoir and its behavior,” commented Paulo Mendonça, General Executive Officer and Exploration Officer of OGX.
A hydrocarbon column of approximately 1,000 meters was encountered in Albian reservoirs with about 110 meters of net pay. The drilling of the well, which is still in progress, already reached the Aptian section of the reservoir identifying hydrocarbons through a high gas presence that resulted in a kick, which is already controlled.
The OGX-63 well, known as Fortaleza, is still in progress and located in the BM-S-57 block and is situated approximately 102 kilometers off the coast of the state of Rio de Janeiro at a water depth of approximately 155 meters. The Ocean Quest rig initiated drilling activities on October 08, 2011.
- Brazil: OGX Announces Presence of Hydrocarbons in Well OGX-17, Santos Basin
- OGX Discovers Hydrocarbons in BM-C-41 Block, Campos Basin, Offshore Brazil
- OGX Discovers Hydrocarbon Column in Shallow Waters of Santos Basin, Brazil
- Brazil: OGX Announces Presence of Hydrocarbons in Well OGX‐20 in the Campos Basin
- Brazil: OGX Finds Hydrocarbons in BM-C-40 Block, Campos Basin
- Petrobras Discovers Oil at Tucura Well, Campos Basin, Offshore Brazil (mb50.wordpress.com)
- Brazil: Petrobras Discovers Hydrocarbons in Campos Basin (mb50.wordpress.com)
- Anadarko Reports Successful Itaipu Appraisal, Offshore Brazil (mb50.wordpress.com)
- Worldwide: Project Field Development News (mb50.wordpress.com)
Skandi Møgster, built by Kværner Kleven Leirvik in 1998, is an AHTS with 16.000 BHP and 192 T Bollard Pull.
The DOF group operates within three different segments in relation to strategic types of activities and vessel types. The groups technical diversified fleet consists of innovative vessels specialized for their operational purpose.
- DOF Subsea’s Skandi Singapore Bags Gig Offshore New Zealand (mb50.wordpress.com)
- OGX Gets Nod for EWT and Production Development in Campos Basin, Offshore Brazil (mb50.wordpress.com)
- Petrobras Discovers Oil at Tucura Well, Campos Basin, Offshore Brazil (mb50.wordpress.com)
- Norway: DOF Subsea to Provide Offshore Survey & Construction Services to Statoil (mb50.wordpress.com)
- 350-foot specialized diving ship makes stop at Pensacola port (mb50.wordpress.com)
- Westshore Shipbrokers: Ultra-Deepwater, What is Next for the Shipowner? (Brazil) (mb50.wordpress.com)
- Re-inventing subsea intervention to keep economics above water (mb50.wordpress.com)