Blog Archives

Worldwide Field Development News Oct 27 – Nov 2, 2012

This week the SubseaIQ team added 0 new projects and updated 15 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 Alaska

Shells Alaskan Arcitc Drilling Season Comes to an End

Nov 1, 2012 – Shell’s Alaskan arctic drilling program in the Beaufort and Chukchi Seas has reached the end of operations date mandated by the government. The company wasn’t able to make as much progress as hoped due to a late start caused by legal, regulatory and equipment issues. The Kulluk (SW semisub) and Noble Discoverer (mid-water drillship) were only able to drill tophole sections at the Sivulliq and Burger-A prospects. Shell plans to resume activities when the sea ice retreats next summer. For the off-season, the Kulluk will be towed to Dutch Harbor and Noble is weighing options for the Noble Discoverer.

Project Details: Burger, SW Shoebill, Cracker Jack

Australia

OMV Announces Milestone at Maari

Nov 1, 2012 – The Maari field, operated by OMV New Zealand, has produced 20 million barrels of oil since startup in 2009. Maari is the largest producing field in the country and is expected to produce for another decade. Production peaked at 40,000 bopd and has slowed to its current rate of 12,000 bopd. OMV plans to drill additional development wells into what it hopes are untapped accumulations in the field. If the additional wells are successful they will help stabilize the natural decline in production.

Project Details: Maari

N. America – US GOM

Dalmatian South Discovery Confirmed

Nov 2, 2012 – Dalmatian South, operated by Murphy Oil and located in De Soto Canyon block 134, has been confirmed as an oil discovery by partner Ecopetrol. The discovery is Ecopetrol’s third in the U.S. Gulf of Mexico since 2011 and the second of 2012. The Noble Jim Day (DW semisub) drilled the initial exploration well and subsequent sidetrack in 6,394 feet of water. Hydrocarbons were confirmed through electric logs and fluid samples. Dalmatian South lies 6-miles to the southeast of the main Dalmatian field. Production startup from Dalmatian is planned for 1Q 2014 through a tieback to the Petronius platform.

Project Details: Dalmatian

Africa – West

GE Lands Lianzi Contract

Nov 1, 2012 – GE Oil & Gas was awarded a $165 million contract to supply subsea production equipment to Chevron‘s offshore Lianzi project located between Angola and the Republic of Congo. The contract covers the supply of seven trees, nine subsea control modules, topside and subsea controls distribution equipment and vertical connection systems. The first tree is scheduled to be completed in 4Q 2013. Lianzi lies at a depth of 2,950 feet and will be developed with a subsea production system tied to the BBLT platform via a 27-mile heated flowline.

Project Details: BBLT

Rialto Updates Operations in CI-202

Nov 1, 2012 – In a report issued by Rialto Energy, the company announced the completion of the 200+ day Gazelle Field drilling campaign in block CI-202 offshore Cote d’Ivoire. Rialto feels that the field has been adequately appraised and is in the process of reviewing possible development solutions. The company continues to review 3D seismic data covering the entire block. Several new targets have been identified and are being evaluated for inclusion in the 2013 exploration and appraisal drilling program. Vantage Drilling’s Sapphire Driller (375′ ILC) has been contracted for the 2013 program which includes three firm wells with two options. In addition, Rialto intends to commence a farmout process in 4Q 2012 to identify partners to participate in and fund the exploration and appraisal program.

Project Details: Gazelle

Chevron Awards FEED Contract for Lucapa

Nov 1, 2012 – Chevron subsidiary Cabinda Gulf Oil Company Limited awarded WorleyParsons and INTECSEA a FEED (front-end engineering and design) contract regarding the Lucapa oil field in Angola’s Block 14. The field is envisioned to be developed via subsea production and injection wells tied back to an FPSO, all in roughly 4,000 feet of water. The Lucapa development is a joint venture between Chevron, Sonangol, ENI, Total and Galp with Chevron serving as operator. The contract value has not been released.

Project Details: Lucapa

Afren Brings Okoro East On-Line

Oct 31, 2012 – Afren PLC announced the start of production from the Okoro East field in the shallow waters of OML 112 offshore Nigeria. Drilled form the existing Okoro wellhead platform, the Okoro-14 development well was drilled with the intention of establishing early production from the East field – discovered in January 2012. The well has been completed and tied into the Okoro FPSO at a stabilized rate of 5,000 bopd. Okoro-14 is the most productive well drilled in the Okoro area to date.

Project Details: Okoro

S. America – Brazil

PanAtlantic Spinds Bit at Jandaia

Nov 2, 2012 – Exploration drilling is underway at the PanAtlantic-operated Jandaia prospect in block BM-S-71 in the southern Santos Basin. Transocean’s Arctic I (mid-water semisub) is drilling the well in 520 feet of water. The rig is expected to be on location for up to 3 months as it drills to an estimated total depth of 20,100 feet. The well is targeting shallow and deep prospects in the Upper Jureia formation and post-salt Guaruja limestone respectively.

Europe – North Sea

Faroe Relinquishes West of Shetlands License

Nov 2, 2012 – Faroe Petroleum announced its intention to relinquish operatorhsip and interest held in West of Shetland license P1161. Since exploration well 206/5a-3 was drilled in the Fulla prospect the company has been working to establish resource potential and an economical joint development solution for Fulla and the nearby Freya prospect. The area is hindered by lack of access to existing infrastructure and research has confirmed relatively poor oil quality and smaller than expected resource size. Based on these factors, the company will terminate operations in the license and concentrate efforts on its existing West of Shetlands portfolio that includes four provisional exploration licenses that were recently awarded.

Project Details: Freya

Garantiana Partners Move Forward With Sidetrack

Oct 31, 2012 – Bridge Energy, 20% partner in PL 554 offshore Norway, confirmed the plan to move forward with a sidetrack of Grantiana well 34/6-2S. Well 34/6-2A will be drilled by the Borgland Dolphin (mid-water semisub) in an effort to prove additional oil volumes in the formation and determine the oil/water contact. Sidetracking operations will take place once the drilling permit has been approved by Norwegian authorities.

Project Details: Garantiana

Glitne Reaches End of Road

Oct 31, 2012 – After outliving its estimated service life by 9 years the partners in the Glitne field have decided that nothing more can be economically produced from the reservoir. To date, the field has produced 55 million barrels of oil which more than doubles the original estimate. Several new wells have been drilled in the field since production first began in 2001. The final well, drilled earlier this year, demonstrated that Glitne is no longer viable. Oil from the field is produced through the Petrojarl FPSO. Teekay, the vessel’s owner, has been given a six month notice of contract termination. A total of seven wells will be plugged and abandoned in order to close the field.

Project Details: Glitne

Asia – Far East

Liwan Gas Project Remains On Track

Nov 2, 2012 – Husky Oil’s Liwan Gas Project in the South China Sea is approximately 75% complete. The central platform jacket has been constructed and anchored to the seabed. Topsides will be completed and ready for installation in the second quarter of 2013. The Mono-ethylene Glycol Recovery Unit, an important module on the central platform, is nearing completion. Roughly half of the two 49 mile subsea pipelines have been laid from the gas field to the central platform. Liwan remains on schedule for startup by early 2014.

Project Details: Liwan

MidEast – Persian Gulf

DNO Might Double Output at West Bukha

Nov 1, 2012 – Norwegian oil and gas company DNO International announced test results of the recently completed West Bukha-4 well offshore the Sultanate of Oman. On a 54/64-inch choke, the well flowed 7,000 barrels of 39 degree API oil and 15 million cubic feet of gas per day through a test separator. Once the new well is on-line, production from the West Bukha field is expected to achieve 15,000 barrels per day which almost doubles the current rate. Boasting a total depth of nearly 19,700 feet, the well has the longest reach of any drilled well in Oman’s waters. West Bukha-4 targeted a previously un-drilled zone and is the second of a three well Block 8 drilling campaign initiated last year.

Project Details: Block 8

Asia – SouthEast

Additional Discovery Announced at Bertam

Nov 1, 2012 – Malaysian Prime Minister Najib Razak released a statement via his personal website indicating a significant discovery of additional oil reserves at the Bertam field in block PM 307. The new discovery raises the field’s recoverable resources to 64 million barrels. A preliminary development plan estimates first oil in 3Q 2014 with a max output of 20,000 barrels per day. Lundin Petroleum operates the block with a 75% stake while Petronas Carigali holds the remaining 25%.

Project Details: Bertam

Natuna Gets New Plumbing

Oct 31, 2012 – Hallin Marine completed a subsea infrastructure, umbilicals, risers and flowlines project at the Natuna gas field offshore Malaysia. Under the $3 million contract Halling was responsible for engineering, procurement, installation and commissioning of installed systems as well as the abandonment of some existing infrastructure. Natuna is the largest gas field in southeast Asia with estimated recoverable reserves of approximately 46 trillion cubic feet.

PetroVietnam Secures Funding for Cuu Long Basin Block

Oct 31, 2012 – PetroVietnam secured a 7 year syndicated loan of $140 million from five domestic banks for the development of offshore block 15-2/01 in Vietnam’s oil laden Cuu Long Basin. Talisman Energy operates the block, through the Thang Long JOC, holding 60% interest while PetroVietnam maintains the remaining 40%. The funds will be put towards the development of the Hai Su Trang and Hai Su Den fields located within the block. Talisman indicates the fields will be tied into the existing Te Giac Trang facilities on adjacent block 16-1 with first oil expected near the end of 2013.

ExxonMobil, OMV Petrom Strike Gas Offshore Romania

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ExxonMobil’s affiliate EMEPRL Corporation and OMV Petrom SA, the 51% subsidiary of OMV Aktiengesellschaft, today confirmed a potentially significant gas discovery in the Black Sea offshore Romania.

Operated by ExxonMobil, the Domino-1 well is the first deep water exploration well offshore Romania and has a total depth of more than 3,000 meters below sea level. The Domino-1 well is located in the Neptun Block, 170 kilometers offshore in water approximately 930 meters deep.

The exploration well encountered 70.7 meters of net gas pay, resulting in a preliminary estimate for the accumulation ranging from 1.5 to 3 trillion cubic feet (42 to 84 billion cubic meters). Drilling operations started at year-end 2011 and are in the process to be finalized. ExxonMobil and OMV Petrom plan new 3D seismic acquisition during 2012. The evaluation of the Domino-1 well results and the new seismic will determine next steps.

Petrom’s report says that it is too early in the data evaluation and exploration process to determine whether the Neptun block will ultimately prove to be commercially developable or not. However, should further work confirm the technical and commercial feasibility of deep water gas production from the Neptun block, further investment during both the exploration and development phases could reach several billion USD with the potential for first production towards the end of the decade at the earliest.

The drilling of Romania’s first deepwater well began last month. The well is being drilled by the world-class, sixth generation drillship, Deepwater Champion, which recently transited to Romanian waters after completing its drilling program offshore Turkey.

Source

Australia: Tap Oil Selling Zola Stake

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Tap Oil has put its stake in the big Zola gas discovery, which is likely to play a part in the expansion of Chevron’s $29 billion Wheatstone LNG project, up for sale.

It is understood the Perth company has engaged Miro Advisors to market the 10 per cent stake in Carnarvon Basin permit WA-290-P.

The decision comes just days after Chevron and its Wheatstone foundation partners, including Apache Corp, sanctioned development of a two-train 8.9 million tonne a year LNG operation near Onslow. The partners have regulatory approval for five trains.

The Zola-1 well, which is thought to have hit a field containing up to two trillion cubic feet of gas, is located within striking distance of the path of the Wheatstone trunk line, which will link the project’s fields with the Onslow LNG plant.

Apache (30.25 per cent) is the operator of WA-290-P.

Santos (24.75 per cent), OMV (20 per cent) and Nippon Oil Exploration (15 per cent) are the other equity holders and expected to be interested in Tap’s 10 per cent stake. It is unclear whether the WA-290-P partners hold pre-emptive rights over each other’s stakes.

Tap managing director Troy Hayden would not discuss his WA-290-P plans but pointed to the portfolio restructure that he started since joining the company in December.

“We are always trying to add value,” he said yesterday.

Zola’s attractiveness to other gas players will have increased now that Chevron has sanctioned Wheatstone because it provides a tangible development option for Zola’s gas. However, any go-ahead for Zola’s development, as part of Wheatstone’s expansion, is not expected for several years. The necessary delay is thought to have prompted Tap to try to realise its stake in the permit now.

By Peter Klinger, The West Australian

Original Article

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