Blog Archives

Worldwide Field Development News Aug 3 – Aug 9, 2012

This week the SubseaIQ team added 3 new projects and updated 21 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.

Mediterranean

Petroceltic Gears Up for Italy Drilling

Aug 9, 2012 – Petroceltic International is expecting to drill a well in Italy next year, reported Dow Jones Newswires. In 2010, the company planned to drill an appraisal well on the Elsa discovery in the Central Adriatic, but plans were shelved when Italy banned offshore drilling in reaction to the Macondo incident in the Gulf of Mexico. With the ban now lifted, the company is hopeful a well can be drilled in 2013. “When the Italy ban came in, we were within months of spudding an appraisal well on the Elsa field, which is an old oil discovery of somewhere between 30 million and 180 million barrels, made by ENI S.p.A. in 1992. We have a CPR [competent person's report] that says the most likely oil-in-place is a couple of hundred million barrels,” the Chief Executive Brian O’Cathain said in a statement. Before it starts drilling, however, the company has to reapply for a permit, but Mr. O’Cathain believes that the current government is very favorably disposed towards restarting exploration and production activities.

Project Details: Elsa

Australia

Eni to Appraise Heron

Aug 7, 2012 – Eni Australia has confirmed that it will take over the ENSCO 109 (350′ ILC) jackup on August 15, and after an anticipated four-day tow, the operator expects the rig to arrive at the Heron South-1 location on or around August 19. The operator will then appraise the find, which is part of the work program Eni has agreed to complete in order to earn a 50 percent participating interest in the permit. Eni has 60 days after the well to elect to either drill a second Heron well or withdraw from participation in the Heron area.

Project Details: Heron

New Crux JV to Accelerate Exploration of Offshore Crux Field

Aug 3, 2012 – Nexus Energy has inked an agreement with Shell and Osaka Gas following board approvals Friday to form a new joint venture which will accelerate the exploration and development of the Crux gas and condensate field offshore Western Australia. The final agreement was formally signed and executed. The agreement sees Shell taking its place as the operator of the production license AC/L9 with an 80 percent interest. Nexus and Osaka Gas hold a 17 percent and 3 percent interest respectively. The agreement also provides Nexus with a 12 month put option to sell 2 percent of its equity interest in the JV to Shell for $78.6 million (AUD75 million). Nexus said in a statement that the JV will initially focus on converting the existing AC/L9 offshore production license into a retention lease. This will require a detailed work program, which include technical studies of a range of development options, including a standalone development concept, and exploration drilling of the Auriga prospect targeted for early 2014. The development options currently under consideration for the Crux field include a tie-in to Shell’s Prelude floating liquefied natural gas (FLNG) vessel or a standalone FLNG project.

Project Details: Prelude

N. America – US GOM

Apache Concludes Drilling on Parmer Prospect

Aug 9, 2012 – Apache has completed drilling operations on the Parmer prospect in Green Canyon Block 823 in the Gulf of Mexico. The well has been logged, and pressure readings and fluid samples have been taken in several Miocene objective sands. Thus far, data indicates approximately 240 feet (73 meters) of net condensate-rich gas pay in two gas sands are full to base, as well as 40 feet (12 meters) of net oil pay in two sands. Both have encountered oil on water. The partners plan to analyze the data and develop a forward plan.

Project Details: Parmer

W&T Completes Development Wells at Matterhorn

Aug 8, 2012 – W&T Offshore reported that the A-4 ST at the Matterhorn field began producing approximately 3,190 boepd net in mid-June and the A-13 at Mahogany began producing approximately 1,640 boepd net in late May. During the second quarter, the company commenced drilling the A-5 ST well at Mahogany, and is now currently completing the well. W&T expects to bring the A-5 ST online later this week with projected initial production rates of approximately 925 boepd net to the company. Following the A-5 ST well at Mahogany, the company expects to drill the A-9 ST development well to further develop the P sand south of the A-5 ST during the third quarter. Following the A-9 ST well, W&T anticipates moving to another development drill well for a possible spud date in the fourth quarter followed by completion in early 2013.

Project Details: Matterhorn

McDermott Awarded Spar Hull Installation Contract for Tubular Bells

Aug 6, 2012 – McDermott International announced that one of its subsidiaries received a contract by Williams Partners for transportation and installation services for a spar hull in the Gulf of Mexico. The company will transport and install the Gulfstar FPS GS-1 spar hull and moorings. The spar platform will be moored on the Tubular Bells development, situated about 150 miles (241 kilometers) offshore, on Mississippi Canyon Block 683 and 726 in a water depth of 4,200 feet (1,280 meters). McDermott’s DB50 vessel will install the moorings before transporting the classic-design spar hull to the installation site where it will be upended and ballasted before installing a temporary work deck. The offshore campaign is expected to begin in the third quarter of 2013.

Project Details: Tubular Bells

Europe – East

Statoil Divests Shtokman Interest

Aug 9, 2012 – Statoil reported that it has divested its 24 percent stake in the consortium developing the Shtokman gas field after the agreement lapsed, but the company remains interested in the project. The initial agreement, in which Russia’s OAO Gazprom held a controlling 51 percent stake and France’s Total SA 25 percent in the consortium, expired at the end of June with the three companies failing to agree on technical and financial plans to develop the massive gas field.

Project Details: Shtokman

Africa – West

Harvest Natural Lines Up Rig for Tortue Prospect Offshore Gabon

Aug 9, 2012 – Panoro Energy announced that operator Harvest Natural Resources has secured the use of a semisub to drill the Tortue prospect in the Dussafu Marin Permit offshore Gabon. The drilling unit, the Scarabeo 3 (mid-water semisub), is expected to commence drilling operations in 4Q 2012. The Tortue Marin well will be located about 31 miles (50 kilometers) offshore Gabon and 9 miles (15 kilometers) southeast of the 2011 Ruche discovery in 380 feet (116 meters) water depth. The well targets pre-salt Gamba and mid-Dentale reservoirs and a secondary post-salt Madiela reservoir. When combining these reservoirs the Tortue prospect has, according to the operator, consolidated mean prospective resources of 28 MMbbls with 56 percent geological chance of success.

Project Details: Tortue

Murphy to Drill Azurite Sidetrack Well

Aug 8, 2012 – PA Resources reported that following a full evaluation of remedial options to replace or reinstate the earlier communicated failed production well at the Azurite field in the Republic of Congo, the joint venture has agreed to drill a sidetrack. Preparatory activities have commenced and drilling operations are expected to start in early 4Q 2012 and take several months to complete. The Azurite field commenced production in August 2009.

Project Details: Azurite

S. America – Other & Carib.

CX-15 Platform En Route to Corvina Field

Aug 7, 2012 – BPZ Energy announced that the world’s first buoyant tower drilling and production platform is en route to the Corvina field for installation offshore Peru. The CX-15 platform was safely completed and successfully delivered to BPZ Energy at Wison Offshore & Marine’s China-fabrication facility in 11 months from contract signature. Wison’s scope included the engineering, procurement and construction of the facility’s 2,500 ton buoyant tower hull and 1,500 ton topsides facility. The buoyant tower hull for the facility was designed and engineered through a joint venture between Wison affiliate, Horton Wison Deepwater, and GMC Limited and consists of four, ring-stiffened connected cylindrical tubes with one central suction pile. Each cell measures 26 feet (8 meters) in diameter and 197 feet (60 meters) long, with a total hull length, including suction pile, of 230 feet (70 meters). When installed, the buoyant tower will support the three-level topsides facility designed by Audubon Engineering and GMC Limited and equipped to produce 12,200 barrels per day of oil, 12.8 million standard cubic feet per day of gas and inject 3,500 barrels per day of water. Additionally, the facility will be capable of supporting a drilling rig with 24 well slots. The CX-15 drilling program, which is the second platform installation at the Corvina field, will target 23 million barrels of proved undeveloped reserves (PUD).

Project Details: Corvina

S. America – Brazil

Petrobras Discovers Oil at Pecem Prospect

Aug 8, 2012 – Petrobras has verified the presence of oil in the Ceara Basin during drilling operations of the 1-BRSA-1080-CES (1-CES-158) well. The well, commonly known as Pecem, is located in a water depth of 6,985 feet (2,129 meters). The well’s current depth is 14,469 feet (4,410 meters) and drilling will continue to a total depth of 18,045 feet (5,500 meters). The consortium will continue the operations until the estimated depth is met.

SBM Offshore Secures Financing to Build Cidade de Ilhabela FPSO

Aug 8, 2012 – SBM Offshore and its JV partners QGOG Constellation and Mitsubishi Corporation have secured a US $1.05 billion to finance the construction of the Cidade de Ilhabela FPSO. The loan will be repaid over a 10-year period starting at first oil, which is expected in September 2014 and benefit from a competitive pricing package arranged on a club deal basis with reputable international commercial banks. The vessel will be moored on the Sapinhoa field in 7,024 feet (2,141 meters) of water.

Project Details: Sapinhoa (Guara)

Asia – SouthEast

Lundin Spuds Berangan Well in Malaysian Campaign

Aug 3, 2012 – Lundin Petroleum has commenced the second well in its 2012 Malaysian drilling campaign with the spud of Berangan-1 exploration well in SB 303 Block, offshore Malaysia. The well will target hydrocarbons in mid-Miocene aged sands in a faulted anticline in an undrilled sub-basin 6 miles (10 kilometers) to the southeast of the Tarap gas discovery made by Lundin Petroleum in 2011. The Offshore Courageous (350′ ILC) jackup is drilling a vertical well to a depth of 5,577 feet (1700 meters) in approximately 230 feet (70 meters) water depth.

Project Details: Berangan

Europe – North Sea

AMEC to Perform Detailed Design Contract for Cygnus Project

Aug 7, 2012 – AMEC has received a detailed design contract from GDF Suez for the Cygnus gas field development in the UK sector of the North Sea. The detailed design contract, following the FEED work, starts immediately and is scheduled for completion in 2014. The detailed development concept for the Cygnus field consists of two drilling centers, four platforms and initially 10 development wells; the planned export route is through the ETS (Esmond Transportation System) pipeline system to the Bacton gas terminal in North Norfolk. First gas is expected in late 2015.

Project Details: Cygnus

GDF Suez Sanctions Cygnus Development

Aug 7, 2012 – GDF Suez has officially sanctioned the Cygnus project to develop the sixth largest gas field in the UK sector of the North Sea. The consortium has signed initial contracts, which will kick start the project, and plan to award major contracts soon. Production is expected to start in late 2015. The field is expected to meet demand for nearly one and a half million homes at peak production, accounting for around 5% of the UK’s gas production. GDF stated that the partnership welcomed the recent field allowance for new large shallow water gas fields by the UK Government, which proved the certainty and confidence to proceed with the development.

Project Details: Cygnus

Providence Eyes Dromberg Prospect

Aug 7, 2012 – Providence Resources has issued a technical report on its Dromberg prospect, offshore Ireland, indicating its potential as a hydrocarbon target. Drombeg, which was awarded to Providence and its partner Sosina Exploration as Licensing Option 11/9 in the 2011 Irish Atlantic Margin Licensing Round, is located approximately 140 miles (225 kilometers) off West Cork in 8,200 feet (2,499 meters) of water. The prospect is targeting a Lower Cretaceous zone, demonstrating a significant seismic amplitude anomaly and low seismic impedance as well as a market AVO (amplitude versus offset) response. Providence added that it has also identified an underlying second seismic anomaly that has been modeled to be consistent with hydrocarbon-bearing sandstone.

Project Details: Dromberg

Total Spuds Garantiana

Aug 7, 2012 – Total has commenced drilling at the Garantiana prospect, exploratory well 34/6-2S, in the Norwegian sector of the North Sea. The well is being drilled by the Borgland Dolphin (mid-water semisub), and is targeting stacked Jurassic/Triassic reservoirs. The water depth of the site is 1,247 feet (380 meters).

Project Details: Garantiana

Total: Elgin Cement Plug In Place by Mid-September

Aug 6, 2012 – Total reported that it expects to install a cemet plug, designed to seal a well, at its Elgin North Sea platform. Since the leak was stopped mid-May, Total and its contractors “have now restarted the essential safety and support systems on board the Elgin complex and the adjacent Rowan Viking (430′ ILC) drilling rig,” the company said in a statement.

Project Details: Elgin/Franklin

Freeport,TX: King & Spalding Advises Freeport LNG on Tolling Agreements, USA

King & Spalding’s global energy practice has advised Freeport LNG on the liquefaction tolling agreements for the first of three proposed liquefaction trains to be built near Freeport, Texas, at Freeport LNG’s existing LNG import terminal.

All three trains are expected to be fully subscribed by the end of 2012 and, once completed, will be capable of liquefying approximately 13.2 million tons per annum of natural gas.

Freeport LNG’s liquefaction tolling agreements with Osaka Gas and Chubu Electric Power will cover 100% of the first train’s liquefaction capacity. Subject to regulatory approval and a final investment decision, Osaka Gas and Chubu Electric will each acquire rights to 2.2 million tons per annum production capacity of the first train over an initial 20-year term.

King & Spalding will continue to represent Freeport LNG on the two remaining trains of the liquefaction project, with definitive agreements for both expected before year-end. The firm also represented Freeport LNG on the front-end engineering and design (FEED) contract for the facility earlier this year.

Source

Japan: Osaka Gas Eyes U.S. LNG

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Japan’s Osaka Gas is in negotiations to buy liquefied natural gas from Dominion Resources, Sempra Energy and Freeport LNG in the United States, Bloomberg reported, citing Tetsushi Ikuta, general manager of Osaka Gas energy resources and international business development.

He said that Osaka Gas may invest in planned LNG terminals in Maryland, Louisiana and Texas.

Osaka Gas said recently that it plans to purchase 7.19 million mt of LNG during fiscal 2012.

The company also plans to invest 290 billion yen (3.49 billion U.S. dollars) in LNG storage facilities and laying pipelines in five years from fiscal 2012-2016.

Source

Japan hopes to buy LNG from U.S. by 2015

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Wed Sep 14, 2011 10:43am GMT

* Japan demand for LNG to stay strong after Fukushima crisis

* Japan LNG imports rise to record in August

* Japan eyes initial annual imports of 2-3 mln tonnes/yr-Nikkei

TOKYO, Sept 14 (Reuters) – Japan hopes to start buying liquefied natural gas from the United States after a project there starts exporting LNG in 2015, as the country looks to secure a steady supply amid growing demand for the fuel, a trade ministry official said on Wednesday.

Japan’s demand for natural gas is expected to rise for years to come, with its LNG imports climbing at a record pace this year as utilities ramp up gas-fired generation to offset a drop in nuclear utilisation following the Fukushima crisis.

Seishu Makino, a senior vice trade minister, met with U.S. Energy Secretary Steven Chu on Tuesday and requested approval for imports by Japanese firms.

“Japan conveyed the expectation that exports of LNG from the United States to Japan can contribute to a stable supply, to which the U.S. expressed a certain understanding,” the official told reporters.

The official said one project, the Sabine Pass terminal, has won approval to export LNG and is expected to start production and exports in 2015. Two other projects are now seeking approval. One of them is the Freeport LNG receiving and regasification terminal, in which Japan’s No. 2 natural gas distributor Osaka Gas Co has a stake.

The official declined to give an outlook for how much Japan LNG would like to import from the U.S.

The Nikkei business daily reported on Wednesday that Japanese power and gas utilities would initially import 2 million to 3 million tonnes of LNG a year, while the trade ministry estimates U.S. shipments could eventually make up 10 percent of Japan’s LNG imports.

Gas extracted from shale rock formations will be liquefied in Texas and Louisiana. The LNG will then be shipped to Japan via the Panama Canal, the Nikkei said.

Some Japanese companies have expressed hopes for U.S. exports of LNG.

Osaka Gas sees the United States as a promising shale gas exporter.

“Japan can be a destination when an expansion of the Panama Canal in 2014 allows large LNG carriers to get through the canal,” Kenji Kawamoto, an executive officer in charge of overseas business development at Osaka Gas, told Reuters last week.

Sumitomo Corp , Japan’s third-largest trading firm, is eyeing more upstream investment opportunities in U.S. shale gas and is looking to pick up shale oil assets there, as it sees those markets growing, a senior official told Reuters in July.

The Sumitomo official said obstacles to exporting U.S. shale gas, such as U.S. export regulations and the cost of establishing facilities to liquefy gas for export, could be reduced as some U.S. LNG import facilities are looking to become export facilities to sell surplus gas supplies.

Mounting public concerns over nuclear safety after the Fukushima Daiichi radiation crisis have made it difficult since the March 11 earthquake to restart reactors once they shut for routine maintenance, forcing utilities to tap fossil fuels to make up for lost nuclear power generation.

Japan’s 10 regional power firms used a record 4.81 million tonnes of liquefied natural gas in August to help offset a record low nuclear utilisation rate.

LNG imports this year are set to jump 12.2 percent to 78.6 million tonnes, exceeding the record of 70 million tonnes in 2010.

Japan’s top three sources of LNG imports are Malaysia, Australia and Indonesia, although it recently resumed imports of LNG from Norway for the first time since 2008.

© Thomson Reuters 2011 All rights reserved

Original Article

Australia: Fairstar Vessel FJELL Joins Gorgon LNG Project Fleet

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Fairstar Heavy Transport N.V. (FAIR) has signed a third contract with Chevron PTY LTD and the Kellogg Joint Venture – Gorgon.

Under the terms of the contract, the semi-submersible vessel FJELL will provide marine transportation of modules and other related equipment over a series of voyages commencing in the second half of 2012 for a period of ten months. Chevron Australia PTY LTD and the Kellogg Joint Venture – Gorgon have options to extend the contract for up to an additional nine months.

The Gorgon Project, operated by Chevron Australia PTY LTD, is a joint venture of Chevron (approximately 47 percent), ExxonMobil (25 percent) and Shell (25 percent), Osaka Gas (1.25 percent), Tokyo Gas (one percent) and Chubu Electric Power (0.417 percent).

Original Article

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