Blog Archives

Worldwide Field Development News Oct 19 – Oct 25, 2013

This week the SubseaIQ team added 4 new projects and updated 13 projects. You can see all the updates made over any time period via the Project Update History search. The latest offshore field development news and activities are listed below for your convenience.

Africa – West

Lukoil Strikes Oil Offshore Sierra Leone

Oct 24, 2013 – Lukoil completed drilling the Savannah-1X wildcat in the Sl-5-11 license offshore Sierra Leone. The well was drilled on schedule by the Eirik Raude (UDW semisub) to a depth of 14,519 feet. Several oil-bearing reservoirs were confirmed and oil samples were taken from Turonian sands. Drilling data will be evaluated through the end of the year to advance the company’s geological understanding of the area.

Project Details: Savannah

Asia – Far East

CNOOC Announces Additional Bohai Bay Discoveries

Oct 24, 2013 – CNOOC announced an oil discovery at its Luda 5-2 North field in Bohai Bay. The Luda 5-2N-2 and Luda 5-2N-4 wells were each drilled to a depth of 3,740 feet and encountered gross pay zones of 390 and 280 feet respectively. Luda 5-2N-2 tested oil at a rate 1,040 barrels per day. Additionally, the company announced the successful appraisal of the Kenli 9-5/9-6 oil field. The Kenli 9-5-2D and 9-6-2 wells were drilled in the southern part of Bohai Bay. Kenli 9-6-2 flowed at a rate of 200 barrels per day.

S. America – Brazil

Petrobras-led Consortium to Develop Pre-Salt Libra Field

Oct 24, 2013 – A group of companies comprised of Petrobras, Shell, Total, CNPC and CNOOC won a 35-year production sharing contract to develop the Libra pre-salt oil field in the Santos Basin offshore Brazil. Libra is located in block BM-S-11 in 6,500 feet of water and is estimated to hold as much at 12 billion barrels of oil. Additional appraisal will be needed to determine the best development scenario and to confirm production rates that are currently estimated at 1.4 MMbopd. Petrobras will serve as the operator with a 40 percent stake on behalf of its partners Shell (20 percent), Total (20 percent), CNPC (10 percent) and CNOOC (10 percent).

Europe – North Sea

ENI’s Receives Disappointing Results at Bonna

Oct 24, 2013 – Drilling results at Eni’s Bonna prospect in the Barents Sea proved to be disappointing. Well 7016/2-1 was drilled by the Scarabeo 8 (UDW semisub) to a depth of 13,205 feet. The well was drilled to investigate the possibility of gas in the Eocene and Paleocene reservoirs of the Sotbakken Group. No reservoir-quality rocks were encountered and the well has been declared dry.

Project Details: Bonna

Asia – SouthEast

Songa Mercur Spuds Spuds ENI’s Ca Ngu Well

Oct 24, 2013 – Neon Energy announced the spud of the Ca Ngu-1 exploration well in Block 120 offshore Vietnam. The objective of the well is to prove the presence of hydrocarbons in Pliocene clastic and Miocene carbonate reservoirs. Block operator ENI secured the Songa Mercur (mid-water semisub) to drill the well in 885 feet of water to a target depth of around 4,900 feet. If successful, the well could de-risk the nearby Rua Bien and Ca Lang prospects. Block 120 partners consist of ENI (50%), Neon Energy (25%) and KrisEnergy (25%).

Project Details: Ca Ngu

Galoc-6H Flows at Expected Rate

Oct 24, 2013 – Subsea tree installation, well clean-up and flow testing of the Galoc-6H development well have successfully been completed at the Otto Energy-operated Galoc field. Galoc-6H flowed at a stable rate of 3,800 bopd on a 56/64-inch choke with a flowing tubing pressure of ~570 psi. These results were constrained by the testing equipment onboard the Ocean Patriot (mid-water semisub). Once tied into production facilities, Otto expects normal production from the well to reach 4,000 to 6,000 bopd. The 5H and 6H wells were drilled as part of the Phase II development plan which aims to increase field production to 12,000 bopd. Phase II production is scheduled to begin in November 2013.

Project Details: Galoc

S. America – Other & Carib.

Total to Proceed With Vega Pleyade Development

Oct 25, 2013 – French supermajor Total announced its decision to move forward with the development of the Vega Pleyade gas and condensate field offshore Argentina. The field is located in the Cuenca Marina Austral 1 (CMA-1) concession that Total has operated since 1978. Development consists of installing a new production platform in about 160 feet of water. Three production wells will be drilled from the platform and produced gas will flow through 48 miles of subsea pipeline to a treatment plant at Rio Cullen. In a separate initiative, Total will begin a drilling campaign in 2014 aimed at boosting production from the Carina field and providing additional appraisal in CMA-1. Total owns a 37.5 percent stake in the concession. Its partners include Wintershall (37.5 percent) and Pan American Energy (25 percent).

Project Details: Vega Pleyade

Australia

Eni Establishes Additional Resources at Evans Shoal

Oct 25, 2013 – Drilling operations are complete at the Eni-operated Evans Shoal North-1 appraisal well. The well, located in the Timor Sea, was drilled by the Ensco 104 (400′ ILC) to a depth of almost 13,000 feet. Results indicate that the Evans Shoal North-1 reservoir is in communication with the reservoir encountered while drilling Evans Shoal-2. Eni conducted a production test and achieved a constrained rate of 30 MMscfd. The operator estimates the Evans Shoal field to contain at least 8 Tcf of in place gas resources and remains committed to establishing a fast-track development in the area. Eni’s partners in the field include Shell (32.5 percent), Petronas (25 percent) and Osaka Gas (10 percent).

Project Details: Evans Shoal

ExxonMobil Flips the Switch at Tuna and Turrum

Oct 25, 2013 – ExxonMobil announced the start of production from its Kipper Tuna Turrum (KTT) project in the Bass Strait. Gas is now being produced at the Tuna field and oil is flowing from Turrum to the Marlin B production platform. At $4.3 billion, KTT is the largest domestic oil and gas development on Australia’s eastern seaboard. Production startup from the Kipper field is expected to commence in 2016.

Project Details: Kipper Tuna Turrum (KTT)

Recap: Worldwide Field Development News Jul 20 – Jul 26, 2012

This week the SubseaIQ team added 2 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.

Africa – West

Rialto Spuds Gazelle-P4 Development Well

Jul 26, 2012 – Rialto Energy spud the Gazelle-P4 development well using the GSF Monitor (350′ ILC) jackup. Gazelle-P4 is testing the oil potential of the UC-2 and UC-4 oil reservoirs as well as the gas potential of the UC-3, UC-5, LC-1 and LC-2 gas reservoirs discovered by the IVCO-12 and IVCO-21 wells. The Gazelle-P4 well is expected to take approximately 45 days.

Project Details: Gazelle

N. America – US GOM

Murphy to Appraise Diamond in GOM

Jul 25, 2012 – Murphy announced plans to appraise its Diamond discovery at Lloyd Ridge Block 370 in the Gulf of Mexico. Diamond is estimated to contain between 400 billion and 500 billion cubic feet of gas, according to Murphy Chief Executive Claiborne Deming. Depending on the results, Murphy will either keep the rig on site for appraisal drilling or move it to a third prospect, Emerald. Located in Lloyd Ridge Block 317, the Emerald prospect potentially has 150 Bcf of gas in recoverable reserves.

Project Details: Diamond

Newfield Mulling Winter Development Options

Jul 25, 2012 – Deep Gulf Energy reported that the Winter discovery, which was drilled in June 2009, is temporarily abandoned as various development options are under consideration. The discovery is in close proximity to the DGE operated GB 339 Sargent well that is tied-back to the GB 72 fixed platform.

Project Details: Winter

N. America – Canadian Atlantic

Husky Energy to Finalize White Rose Extension Project

Jul 24, 2012 – In May 2012, Husky filed a project description with regulators for the White Rose Extension project. The company expects to make a decision on a preferred development option later in 2012, which will use existing infrastructure at the White Rose field and the existing SeaRose FPSO facilities for processing and storage.

Project Details: White Rose

Sea Rose FPSO to Resume Production in 3Q12

Jul 24, 2012 – The Sea Rose FPSO has been reconnected, reported Husky Energy. Following planned off-station, production is expected to resume in 3Q 2012. An infill production well was drilled at the White Rose field and will be brought online once production resumes. Furthermore, development drilling continued at North Amethyst and a supporting water injection well for the West White Rose pilot project was completed.

Project Details: White Rose

S. America – Brazil

Fluke Engenharia to Fabricate 27 Suction Piles

Jul 25, 2012 – Fluke Engenharia has received a contract from Subsea 7 to fabricate 27 suction piles for use in the Guara-Lula field, which is part of the pre-salt cluster in the Santos basin offshore Brazil. Fluke Engenharia will manufacture the products at its Macae facilities and will deliver them over the course of 2012.

Project Details: Sapinhoa (Guara)

BG Group Signs Contracts for Topside Modules for Lula, Sapinhoa FPSOs

Jul 20, 2012 – BG Group and partners have approved the signature of contracts totaling $4.5 billion for the construction of the first six topside modules and integration packages for eight domestic floating production, storage and offloading units to be used on the Lula (Tupi) and Sapinhoa (Guara) pre-salt projects offshore Brazil.

Project Details: Lula (Tupi)

Asia – Far East

Husky Energy Progresses Liwan Gas Project

Jul 24, 2012 – Husky Energy reported that the Liwan gas project in the South China Sea is advancing as planned with the completion of the shallow water jacket for the project, and the topsides portion of the platform scheduled for completion in the second quarter of 2013. The installation of all nine subsea production trees was completed on the wells at the Liwan 3-1 gas field. Six associated upper completions were installed and flow-tested, with production rates as expected. Front-end engineering and design work for the development of the Liuhua 29-1 gas field is underway. Negotiations are continuing on a sales agreement for gas from the Liuhua 34-2 field. The development is on target to realize first production in late 2013/early 2014.

Project Details: Liwan

Asia – SouthEast

Development Drilling Commences at Madura Project

Jul 24, 2012 – Husky Energy stated that drilling has commenced at a planned six-plus well exploration program in the Madura Strait Block offshore Indonesia. A joint development plan for the MDA and MBH fields has been submitted to the government. The award of development contracts for the BD Field, including a leased FPSO, is expected later this year. The Company and its partners are moving to fully delineate and develop the Madura Strait Block with first gas anticipated in 2014.

Cairn India to Explore Sri Lanka Block in 2013

Jul 23, 2012 – Cairn India Limited reported that the potential commercial interest notification has been submitted for two discoveries, the Dorado and Barracuda wells, as per the terms of the Petroleum Resource Agreement. The operator plans to conduct an exploration program in mid-2013, and tendering for the drilling rig and the associated services is in progress.

Project Details: Dorado

Manora Oil Development to Precede

Jul 23, 2012 – The Manora oil development is scheduled to proceed after its joint venture partners reached a final investment decision. The $246 million project will see a single wellhead platform linked to a floating, storage and offtake unit and the drilling of 15 development wells consisting of 10 production and five injection wells. Tap said that several prospects are being finalized based on recently acquired 3D seismic. The project has also secured a rig to dill up to three wells later this year, and drilling is scheduled to start in the second half of this year. First oil from Manora is being targeted for early 2014 with output expected to peak at about 15,000 barrels per day. The Manora oil development consist of two offshore concessions – G1/48 and G3/48 – sited in the northern Gulf of Thailand. The two concessions could contain up to 31 million barrels of recoverable oil resources.

Project Details: Manora

Mediterranean

Noble Energy Completes Flow Test at Pinnacles

Jul 20, 2012 – Noble Energy Mediterranean has reported that the flow tests of Pinnacles-1 have been completed. Gas composition and gas treatment measures were tested and proved to be effective. The operator will now begin the natural gas flow from the reservoir.

Europe – North Sea

Barryroe is a Huge Find for Providence

Jul 25, 2012 – Providence Resources confirms that estimates of the size of its Barryroe find in the Celtic Sea offshore Ireland have been upgraded. The company reported that its oil in place estimates for Barryroe were now 1,043 million barrels of oil on a P50 basis and up to 1,612 million barrels on a P10 basis. On July 6, oil analysts at Liberum Capital speculated that Barryroe could contain around one billion barrels of oil in place and more than 160 million barrels of recoverable oil. After Providence’s announcement, the London-based investment bank upgraded its estimate of recoverable reserves to 200 million barrels. Providence said that after the successful drilling and testing of the Barryroe 48/24-10z well in March, it has now completed a series of comprehensive post-well studies in order to update the in-place volumetric resource estimate for the Barryroe discovery.

Project Details: Barryroe

Centrica Cooper Well Finds Hydrocarbons

Jul 25, 2012 – Faroe Petroleum reported that its Cooper well in the Norwegian sector of the North Sea has encountered hydrocarbons. The well made a discovery in the Middle Jurassic Garn formation at a depth of 17,500 feet (5,334 meters). After analyzing preliminary results Faroe, and its partners in the well, are now performing a drill stem test (DST) of the Garn formation to evaluate the likely productivity of the reservoir. The Cooper well (in which Faroe has a 30-percent interest) was drilled using the West Alpha (mid-water semisub) rig. It is located in license PL477 on Block 6506/11 on the Halten Terrace.

Project Details: Cooper

Lundin Further Appraises Johan Sverdrup

Jul 25, 2012 – Lundin spud its fifth appraisal well on the Johan Sverdrup discovery in the Norwegian sector of the North Sea. The 16/2-13 well is situated about 1.5 miles (2.4 kilometers) northeast of the discovery well that was found in 2010. The main objective is to determine the top reservoir, reservoir quality and thickness, as well as oil-water contact in this part of the field. The planned total depth of the well is 7,050 feet (2,148 meters) and drilling operations are being conducted by the Transocean Arctic (mid-water semisub). Drilling should take about 45 days.

Project Details: Johan Sverdrup

Statoil Gets Govt Nod to Drill on Valemon

Jul 25, 2012 – Statoil has received consent from the Petroleum Safety Authority Norway to use West Elara (490′ ILC) jackup at the Valemon field. The consent relates to the hook-up of West Elara to the jacket, drilling and installation of 30-inch conductors in the planned first 12 wells and drilling well B-20 for injection of drill cuttings and mud in the Utsira formation. The planned start-up date is July 15, 2012.

Project Details: Valemon

Expro to Provide Well Testing and Data Management Services at Bentley Field

Jul 23, 2012 – Expro has received a contract to provide equipment and services in support of Xcite Energy’s 90-day extended well test in the Bentley field. Expro will provide heavy oil well testing and data management services through drilling and completions company ADTI on the Rowan Norway (400′ ILC) jackup. The Bentley field is estimated to contain 116 million barrels of proven and probable reserves.

Project Details: Bentley

Lundin to Appraise Well in PL 490

Jul 23, 2012 – Lundin has received consent to conduct appraisal drilling on Production License 490. A possible sidetrack (7120/6-3 A) may also be drilled. The Transocean Arctic (mid-water semisub) will conduct drilling operations in a water depth of 1,073 feet (327 meters). Drilling activities are estimated to last a total of 133 days, including the possible sidetrack well.

Project Details: Skalle

Talisman Gets OK to Drill on Varg

Jul 23, 2012 – Talisman Energy has received consent to use Rowan Stavanger (400′ ILC) jackup to drill three sidetrack wells on the Varg field. The consent relates to the drilling of three sidetracks in wells 15/12-A-3 B, 15/12-A-12 E and 15/12-A-1 B on the Varg field. Water depth of the site is 285 feet (87 meters) and drilling should take 62 days.

Project Details: Varg

Petrofac Wins Extended North Sea Contract

Jul 20, 2012 – Petrofac has been awarded a three-year contract to supply engineering and construction services to Apache North Sea. Petrofac will supply onshore engineering as well as onshore and offshore construction to all of Apache North Sea’s assets, including the Beryl Alpha and Bravo platforms in the northern North Sea. The contract represents an extension to, and continuation of, the firm’s current service contract to service Apache’s offshore platforms in the Forties field, 110 miles (177 kilometers) east of Aberdeen.

Providence Approves 2012 Budget for Spanish Point Discovery

Jul 20, 2012 – Providence Resources and partners have approved the 2012 budget for the Spanish Point discovery, as the companies prepare for the 2013 drilling campaign. The gas condensate discovery is located in a water depth of 1,300 feet (396 meters) in the Main Porcupine Basin 125 miles (201 kilometers) off the west coast of Ireland. The 2012 budget includes the provision for well design activities as part of the ramp up to a 2013 appraisal drilling program on Spanish Point. The plan is to spud the initial appraisal well in the third quarter of 2013 subject to rig availability and government approvals while the partners have agreed to transfer the operatorship of FEL 2/04, along with that of other licenses from Providence to Chrysaor.

Project Details: Spanish Point

Australia

Alcatel-Lucent, Technip to Provide Advanced Communications System

Jul 26, 2012 – Alcatel-Lucent together with the Technip Samsung Consortium (TSC) is set to provide an advanced communications system for Shell???s new Prelude FLNG facility. The system will enhance the safety and efficiency of operations and provide entertainment and communications services for crew members on the facility, 124 miles (200 kilometers) off Western Australia. The communications system will include operations, safety, and entertainment systems such as: trunk and marine radio communications; air communications radar recorder (black box); beacons; local and wide area networks; voice over IP; closed circuit TV; public address alarm systems; distress and safety systems; GPS; weather monitoring; and search and rescue transponders.

Project Details: Prelude

Chevron Finds Additional Gas in Gorgon Area

Jul 23, 2012 – Chevron has made a natural gas discovery in the Greater Gorgon area of the Carnarvon Basin, offshore Western Australia. The Pontus-1 exploration well encountered approximately 97 feet (30 meters) of net gas pay. The well is located in the WA-37-L permit area in the Greater Gorgon Area gas fields, approximately 40 miles (65 kilometers) northwest of Barrow Island. The well was drilled in 690 feet (210 meters) of water to a total depth of 16,581 feet (5,054 meters). Chevron Australia is the operator of WA-37-L and holds a 47.3% interest in the permit. Exxon Mobil and Shell Development Australia both hold 25%, Osaka Gas holds 1.25%, Tokyo Gas holds 1% and Chubu Electric Power holds approximately 0.42%.

Project Details: Greater Gorgon

GE Oil & Gas Receives Gorgon Contract

Jul 23, 2012 – GE Oil and Gas has been awarded a $600 million service contract to maintain the compressor trains and associated equipment at Chevron’s Gorgon LNG project off the northwestern coast of Australia. Under the 22-year agreement, GE will provide Chevron with scheduled maintenance, monitoring and diagnostics of the installed equipment and access to local engineers. GE will also manage inventory and supply initial spare components. GE’s first contract performance manager will start working in Perth in October 2012.

Project Details: Greater Gorgon

Petrobras Makes Oil Discovery in Sul de Guará, Offshore Brazil

Brazil’s state controlled oil company, Petrobras, has announced the discovery of good quality oil in the third well drilled in the Santos Basin pre-salt cluster’s Sul de Guará region.

According to the Rights Transfer contract, Petrobras is entitled to produce up to 319 million barrels of oil equivalent in this area.

This discovery well, 1-BRSA-1045-SPS (1-SPS-96), lies 320 km off the coast of the State of São Paulo and is located in the southern portion of Sapinhoá Field at a water depth of 2,202 meters.

Cable tests were used to confirm that the discovery was good quality oil (around 27º API). A sample was taken from carbonate reservoirs below the salt layer.

Petrobras said that after the completion of drilling, a formation test will be conducted to evaluate the productivity of the oil reservoirs, in line with the activities and investments set out in the Mandatory Exploration Program annexed to the Rights Transfer Contract.

Source

Recap: Worldwide Field Development News (Apr 6 – Apr 12, 2012)

Australia-GE-Bags-USD-150-mln-Julimar-Subsea-Gig

This week the SubseaIQ team added 4 new projects and updated 22 projects. You can see all the updates made over any time period via the Project Update History search. The latest offshore field development news and activities are listed below for your convenience.

Africa – Other
Apache Secures Rig to Drill Mbawa Prospect
Apr 10, 2012 – Apache has secured the use of the deepwater drillship Deepsea Metro 1 (UDW drillship) to drill the Mbawa prospect. The operator is anticipating a spud date within the third quarter of 2012, pending on when the rig finishes with its current operations. The well is expected to take about 45 to 60 days to complete to a planned total depth of 10,662 feet (3,250 meters) in a water depth of 2,821 feet (860 meters). It is estimated that Mbawa has a maximum potential to contain 4.9 billion barrels of oil-in-place at the main Tertiary/Cretaceous level with significant additional potential also to be tested by the well at the deeper Upper Jurassic level and shallower Tertiary levels.
Project Details: Mbawa
S. America – Brazil
Oceaneering to Supply Umbilicals for Whales Park Development
Apr 12, 2012 – Oceaneering International has secured a contract from Petrobras to supply nearly 85 miles (135 kilometers) of thermoplastic production control umbilicals for the Whales Park (formerly Baleia Azul) field development project offshore Brazil in the Espirito Santos Basin. Product manufacturing is slated to commence in 4Q 2012 and be completed in 4Q 2014.
Project Details: Espadarte
Petrobras Completes Iara Extension
Apr 10, 2012 – Petrobras has completed drilling an extension to exploratory well 3-BRSA-1032-RJS (3-RJS-697) in the Iara Evaluation Area in the pre-salt area of the Santos Basin. The well, informally known as Iara Oeste, is the third well drilled in the Discovery Evaluation Plan 1-BRSA-618 (Iara). Drilling results have confirmed good quality oil samples ranging from 21 and 26 degrees API in carbonate reservoirs of the pre-salt. Iara Oeste is located 139 miles (223 kilometers) off the coast of Rio de Janeiro, about six miles (nine kilometers) from the discovery well in a water depth of 7,054 feet (2,150 meters).
Project Details: Iara
Europe – North Sea
Valiant Fails to Hit Pay in Cladhan
Apr 12, 2012 – Valiant Petroleum will plug and abandon the Cladhan South exploratory prospect in Block 210/29c in the UK sector of the North Sea. The well encountered multiple Upper Jurassic sand channels on prognosis, none of which were thought to be hydrocarbon-bearing.
Project Details: Cladhan
Marathon to Submit Boyla POD
Apr 11, 2012 – Marathon expects to submit a plan of development for the Boyla field subsea tie-back to the Alvheim FPSO in the first half of 2012. First oil is expected in 2014.
Project Details: Alvheim
Marathon Mulls Completing Caterpillar as Satellite to Boyla
Apr 11, 2012 – During the first quarter of 2011, the Caterpillar exploration well in PL 340BS was completed as an oil discovery. Caterpillar, located close to the Boyla field, will now most likely be developed through the Boyla subsea development facilities.
Project Details: Caterpillar
Duart Resumes Production
Apr 11, 2012 – Bridge Energy has restarted production at the Duart field, which has been shut-in since Oct. 5, 2011 as a result of planned maintenance activity on the host Tartan platform. The extended shutdown on the Tartan platform has enabled completion of a more comprehensive maintenance work scope which should increase the near term uptime of the facility.
Project Details: The Greater Tartan Area
Total’s Elgin Relief Well May Take More Than 6 Months
Apr 6, 2012 – Total estimates that it may take more than six months to drill relief wells near the Elgin oil rig in the Norwegian North Sea to stop a natural gas leak. The company is currently drilling a relief well to cut off the gas at the level of the reservoir at about one kilometer from the problematic well. Total plans to drill two relief wells, the second one acting as a backup. Another solution is also in the works: pumping heavy mud into the well to balance the pressure and end the leak. The Elgin/Franklin project has been shut-in since Monday, March 26.
Project Details: Elgin/Franklin
Asia – SouthEast
Lundin Says Bertam a Likely Commercial Success
Apr 11, 2012 – In January 2012, the Bertam-2 appraisal well was successfully completed proving the continuity and quality of the K10 oil reservoir sandstone. Lundin stated Bertam is likely a commercial oil field and studies are now progressing to review potential development concepts.
Project Details: Bertam
Lundin to Appraise Janglau Field
Apr 11, 2012 – Lundin Petroleum reported that the Janglau-1 well, completed in November 2011 as an oil discovery, proved a new play concept in Oligocene intra-rift sands. The discovery will require further appraisal drilling to determine commerciality.
Project Details: Janglau
N. America – US GOM
BHP Billiton Bites into $708M Funding for Mad Dog Proj.
Apr 11, 2012 – BHP Billiton has approved the $708 million (BHP Billiton share) in pre-commitment funding for the Mad Dog Phase 2 project in the deepwater Gulf of Mexico. The funding will facilitate detailed engineering and the procurement of long lead time items related to the hull, topsides and subsea equipment. The proposed project, focusing on the southern portion of the field, includes the development of a second spar facility with all subsea production and injection wells. The new facility is estimated to have a design capacity of approximately 130,000 bopd that will be exported via the Mardi Gras Pipeline under existing agreements. A final investment decision is anticipated in 2013 with first production scheduled for 2018.
Project Details: Mad Dog
McMoRan Trying to Establish Commercial Production at Davy Jones
Apr 10, 2012 – McMoRan has completed technical work on the Davy Jones No. 1 well on South Marsh Island Block 230 in the GOM. Work is ongoing to establish commercial production from the well, stated the operator. To maximize production from the well and enable effective formation penetrations, McMoRan plans to use electric wireline casing guns that are larger than the tubing guns used to perforate the Wilcox “C” and “D” sands. The company expects its current operations to enable a measurable flow rate during the second quarter of 2012 followed by commercial production shortly thereafter.
Project Details: Davy Jones
Australia
Technip Scores Subsea Gig for Wheatstone Project
Apr 12, 2012 – Chevron awarded Technip a subsea contract for the Wheatstone project offshore Australia. The contract, covering the development of the Wheatstone and Iago fields, includes project management, design, fabrication and installation of subsea isolation valve, production tee protection structures, spools and jumpers; transportation and installation of manifolds, foundation structures and pipeline termination structures; and the supply and installation of 25 miles (41 kilometers) of umbilicals.
Project Details: Wheatstone
Technip Grabs EPCI Contract for Ichthys Field
Apr 11, 2012 – Inpex awarded Technip a flexible pipe supply lump sum contract for the Ichthys gas field in Australia. This contract is part of the overall subsea umbilical, riser, flowline EPCI contract. The Supply A ??? production & gas export lines’ contract includes: 1.86 miles (3 kilometers) of technologically advanced smooth bore 10-inch-diameter flexible gas export risers, 1.86 miles (3 kilometers) of 12-inch-diameter production risers. The contract is scheduled to be completed in the first semester of 2015. Gas from the Ichthys field will undergo preliminary processing offshore to remove water and extract condensate. The 552 mile (889 kilometer) Ichthys gas export pipeline will transport production from the offshore central processing facility through a subsea pipeline to the onshore liquefied natural gas (LNG) facility to be located at Darwin.
Project Details: Ichthys
Clough AMEC Receives ORM Contract for Wheatstone Facility
Apr 11, 2012 – Chevron awarded Clough AMEC a contract for the operability, reliability and maintainability component of Wheatstone’s offshore facility. The scope of work involves building the maintenance database, assuring operational readiness for the offshore facility, including writing of all operations procedures, all training and development programs, and operations engineering and support services. The work will be performed by Clough AMEC, with support from AMECs specialist Performance Improvement team. Work will commence immediately and will last for about three years.
Project Details: Wheatstone
Clough AMEC Secures Work for Eni’s Blacktip
Apr 10, 2012 – Clough Limited has received a contract for the provision of maintenance support to the 1.3 Bcm per year onshore gas treatment plant and the offshore unmanned wellhead platform for Eni’s Blacktip project. The scope of work involves the provision of trades labor to support routine and campaign maintenance. Supporting services include specialist consultancy services, multidiscipline engineering, procurement, and management of subcontractors and fabrication. The initial contract is for three years with further extension options. Blacktip has been producing since September 2009.
Project Details: Blacktip
Browse Amendments Receive Govt Approval
Apr 10, 2012 – Woodside was advised that the Commonwealth Minister for Resources and Energy and the WA Minister for Mines and Petroleum have approved amendments to the Browse Basin retention leases. The amendments include extending the condition relating to readiness for a final investment decision on the proposed Browse LNG Development in Australia from mid-2012 to the first half of 2013. This will allow time to better evaluate the outcomes of front-end engineering and design work and the results of the tender processes for the developments major contracts. The Browse LNG development consists of three fields: Torosa, Brecknock and Calliance. It is estimated they hold roughly 13.3 Tcf of dry gas and 360 million barrels of condensate in reserves.
Project Details: Browse LNG

Recap: Worldwide Field Development News (Mar 30 – Apr 5, 2012)

Huisman-to-Build-500mt-Yard-Crane-and-150mt-Flexlay-System-for-Technip-France

This week the SubseaIQ team added 8 new projects and updated 45 projects. You can see all the updates made over any time period via the Project Update History search. The latest offshore field development news and activities are listed below for your convenience.

Mediterranean
Cooper Energy Preps Hammamet Appraisal
Apr 4, 2012 – Cooper Energy is preparing to drill the Hammamet West-3 well in the Bargou permit offshore Tunisia. The company has awarded a contract for well management services to AGR Petroleum, which includes planning and executing drilling operations and post well activity. Drilling of the Hammamet West-3 well is targeted to commence in 4Q 2012. Hammamet was discovered in 1967 and appraised in 1990.
Project Details: Hammamet West
Adira Energy to Explore Yitzhak, Gabriella Licenses
Apr 3, 2012 – Adira Energy is moving forward with plans to spud two exploration wells in late 2012 hoping to investigate Jurassic-aged fractured carbonates in the Syrian Arc structural trend, off the coast of Israel. The company said it is in the process of securing a rig to drill back-to-back wells in the Yitzhak and Gabriella licenses beginning in the fourth quarter of 2012. The Adira partnership will initially drill its first well within the Gabriella license to appraise a reservoir discovered by Isramco’s Yam-Yafo wildcat nearly two decades ago. The well tapped the Zohar formation, and flow rates at the time were about 800 bopd. The Gabriella prospect will be drilled in 394 feet (120 meters) of water to a target depth of about 16,076 feet (4,900 meters).
S. America – Brazil
Saipem Scores Gas Pipeline Gig for Lula Development
Mar 30, 2012 – Petrobras awarded Saipem a new E&C offshore contract in Brazil for the Lula development. The EPCI contract is for the gas export trunkline Rota Cabiunas, situated in the Santos Basin pre-salt region, approximately 186 miles (300 kilometers) off the coast of the State of Sao Paulo. The development comprises the engineering and procurement of subsea equipment, and the installation of a 236-mile-long (380-kilometer-long) pipeline with a 24-inch diameter, in a maximum water depth of 7,218 feet (2,200 meters). The pipeline will connect the central gathering manifold in the Lula field, in the Santos Basin, to the onshore Processing Plant of Cabiunas, located in the Macae district, in the State of Rio de Janeiro. Work is slated for completion in 2Q2014.
Project Details: Lula (Tupi)
S. America – Other & Carib.
Desire Acquires 3D Data over Sea Lion Complex
Apr 3, 2012 – Desire Petroleum reported that a joint 3D seismic program with Rockhopper Exploration, using the Polarcus Nadia, was completed in May 2011. Overall, an additional 349,901 acres (1,416 square kilometers) of data was acquired within Desire’s licenses and adjacent open areas. The new seismic data is being integrated with reprocessing of the 2004 3D survey to provide a contiguous, merged volume over PL003, PL004 and most of PL005. The final processed 3D merge volume was delivered in early February 2012 and Desire says this will be the basis for a re-assessment of their prospect inventory. Results are expected later this year.
Project Details: Sea Lion
Shell to Appraise Zaedyus
Apr 3, 2012 – Northpet announced that the Zaedyus consortium plans to commence drilling in mid-2012 on the Guyane permit, to follow-up on the Zaedyus oil discovery in late 2011. Appraisal drilling is planned to delineate the discovery. Shell, who took over as operator of the license, has contracted the Stena DrillMax ICE (UDW drillship) to commence operations mid-year subject to government consent.
Project Details: Zaedyus
Europe – North Sea
Valiant Secures Rig Slot for Handcross Well
Apr 5, 2012 – Valiant Petroleum has entered into a contract to secure a firm rig slot on the Stena Carron (UDW drillship) to drill the Handcross prospect located in UK Block 204/18b. Drilling is expected to commence within the first quarter of 2013. The Handcross prospect is a large stratigraphic trap, similar to the nearby Foinaven and Schiehallion fields, which benefits from a number of geophysical anomalies interpreted to reflect the presence of hydrocarbons in Paleocene sands.
Project Details: Handcross
Eni Brings Marulk Online
Apr 5, 2012 – Eni has commenced production from the Marulk field in the Norwegian sector of the North Sea. Marulk is Eni’s first operating field in Norway and is part of the PL 122 license held by Eni (20 percent) with Statoil (50 percent) and Dong (30 percent). Marulk is a gas and condensate field with estimated reserves of 74.7 million barrels of oil equivalent and produces 20,000 boepd.
Project Details: The Greater Norne Area
Caledonia Redevelopment Project Makes Headway
Apr 4, 2012 – The Caledonia field redevelopment project is progressing and sanctioning is expected in late 2012. First oil is targeted for 2012 with gas slated for 2014.
East, West Rochelle to Come Online by Year-End
Apr 4, 2012 – A processing tariff was agreed with the Scott owners and initial Rochelle modifications were made to the Scott topside facility during 2011. The development program has made good progress towards first gas from Rochelle in November 2012. The subsea fabrication work is on schedule and drilling rigs have been contracted to drill this summer.
Project Details: Rochelle
BG Dives Deep into Bream Development
Apr 3, 2012 – BG Group announced plans to conduct development drilling at its Bream oil field in the Norwegian sector of the North Sea. Development plans call for seven wells. Drilling will commence in 4Q13 and last for about 13 months. The field was discovered in 1972.
Project Details: Bream
Cairn Energy Buys Agora Oil & Gas
Apr 3, 2012 – Cairn Energy has agreed to buy Norwegian oil firm Agora Oil & Gas as part of a strategy to balance its portfolio of assets. Cairn will pay $450 million for Agora, which holds several assets in the UK and Norwegian North Sea. Agora holds a 15 percent stake in the Catcher P1430 license in the Central North Sea and a 20 percent interest in the Tybalt P1632 license in the Northern North Sea, along with nine other licenses.
Project Details: Catcher
DONG Reviewing Ipswich Data
Apr 3, 2012 – Noreco reported that the Oselvar license consortium, which houses the Ipswich discovery, is currently reprocessing seismic data acquired from the license. This will improve the understanding of the size of the discovery and map a possible upside potential. Given a positive outcome of this study, plans will be made for further drilling. Ipswich was discovered in August 2008 when exploration well 1/3-11 and sidetrack 1/3-11 T2 on the Ipswich-prospect proved oil in rocks of Paleocene age.
Project Details: Ipswich
Lundin Looking to Appraise South East Tor Discovery
Apr 3, 2012 – Lundin plans to further appraise the South East Tor discovery in license PL006C in the Norwegian sector of the North Sea. Further appraisal drilling is required to delineate the reservoir and to better define the reserve base for a development plan. South East Tor was discovered in 1972 and appraised in 1988.
Project Details: South East Tor
Lundin Brings Gaupe Field Online
Apr 2, 2012 – Lundin Petroleum has commenced production at the Gaupe field located in the Norwegian sector of the North Sea. Gaupe has estimated gross recoverable reserves of approximately 31 MMboe and is expected to produce about 6 Mboepd. The field is a cross-border subsea tie-back to the Armada platform, located in the UK sector of the North Sea, and will contribute to the doubling of production to 70,000 boepd in late 2015.
Project Details: Armada
Xcite Moves Forward with Bentley Development
Apr 2, 2012 – Xcite Energy reported that following the spudding of the Bentley 9/3b-7 well on March 18, 2012 by the jackup Rowan Norway (400′ ILC) good progress has been made in drilling the 36-inch hole. The 26-inch hole has been directionally drilled and the 20-inch surface casing has been set and cemented satisfactorily. Bently is under development with first oil slated for later this year.
Project Details: Bentley
Subsea 7 to Furnish Umbilicals, Flowlines for Cheviot Development
Apr 2, 2012 – ATP Oil & Gas awarded Subsea 7 a SURF contract for the Cheviot field in the UK sector of the North Sea. The Cheviot field development will use a moored floating process facility which will import oil and gas from four satellite drill centers allowing oil to be exported via shuttle tankers and gas to be exported to a third party host facility. The contract scope includes the transportation and installation of flexible flowlines and risers, control umbilicals, a 2.6-mile-long (4.2-kilometer-long) 14-inch flexible oil export pipeline and a 30 mile-long (48 kilometer-long) 10-inch rigid gas pipeline, together with the fabrication and installation of associated subsea structures. The contract scope also includes post installation, trenching of the subsea lines, tie-in of the lines to the Octabuoy and drilling centers, testing and pre-commissioning activities for the entire field facilities. Offshore operations are slated to begin in 2014.
Project Details: Cheviot
Shell Grants EPCI Contract for Draugen Field
Apr 2, 2012 – Shell and Ocean Installer have signed a Letter of Intent for the development of the Draugen field. The contract covers the EPCI services for further development of the subsea infrastructure at the Draugen field, in the context of Shell drilling four infill wells for the purpose of increasing the ultimate recovery factor and accelerating oil production at the field. Ocean Installer will be responsible for all phases of the operation, from planning and engineering to installation and establishment of connections. This includes: procurement and installation of approximately 11.5 miles (18.5 kilometers) oil production and gas lift flexible flowlines and jumpers including pull-in to the Draugen platform, installation of approximately 13-mile-long (21-kilometer-long) umbilicals including pull-in to the Draugen platform; procurement and installation of a T-manifold and protection covers; supply of rock dump; and detailed engineering. The project is expected to start-up immediately and is planned for completion in 2014.
Project Details: Draugen
Noreco Spuds Eik Prospect
Mar 30, 2012 – Noreco has commenced drilling at exploration well 7228/1-4 on the Eik prospect in the Barents Sea. The well is being drilled by the Transocean Barents (UDW semisub). The partners in the license PL396 are Noreco (operator, 50 percent), Front Exploration (30 percent) and Petoro (20 percent).
Project Details: Eik
Total Mobilizing Rigs for Elgin Relief Well
Mar 30, 2012 – Total is mobilizing two rigs to drill a relief well in an attempt to halt a gas leak from the Elgin platform in the North Sea, according to the U.K Department of Energy and Climate Change (DECC). The firm is also seeking a second solution of pumping heavy mud into the well, DECC added. “We believe the hydrocarbons are coming from a rock formation above the reservoir at a depth of 4,000 meters (13,120 feet),” a spokesperson for the firm told Rigzone. The Elgin/Franklin project has been shut-in since Monday, March 26.
Project Details: Elgin/Franklin
Aker Sails Goliat Subsea Manifolds to Field Location
Mar 30, 2012 – Aker Solutions has completed the manufacturing and load-out of eight subsea manifolds and six riser bases for Eni’s Goliat project in the Barents Sea. The load-out commenced on March 27, 2012. Aker Solutions’ Goliat contract, signed in September 2009, consisted of engineering, procurement and construction of a complete subsea production system. Subsea hardware deliveries include eight overtrawlable four-slot subsea templates with manifolds, wellheads system, 24 subsea trees, subsea and topside controls systems, 12 miles (20 kilometers) of steel tube umbilicals, work-over equipment and a tie-in and connection system. Goliat, the first oil field to be developed in the arctic waters of the Barents Sea, is scheduled to commence production in 2013. The field has a life expectancy of 15 years.
Project Details: Goliat
BP Augments Aker’s Maintenance, Modification Contract on Valhall
Mar 30, 2012 – BP will extend the maintenance and modification contract with Aker Solutions, exercising an option in the existing agreement for the Ula, Valhall, Skarv, Hod and Tambar fields. Work under the extended contract will last until April 2014. The original maintenance and modification contract was signed in 2005. Scope of work under the contract includes maintenance support services and brownfield modification projects covering engineering, procurement, fabrication and offshore installation. Maintenance and modification work will help to increase oil recovery rate and extend the life of BP’s fields.
Project Details: Valhall
N. America – US GOM
Technip to Install Lucius Subsea Equipment
Apr 5, 2012 – Technip received a lump sum contract from Anadarko for the development of the Lucius field. The contract covers installation of a flexible flowline; multiple flexible gas lift jumpers; main gas lift and infield umbilicals; subsea distribution units; electrical; fiber optic and hydraulic flying leads; design and fabrication of the flexible flowline end termination; fabrication and installation of rigid jumpers; burial of flowlines; and flooding and hydro-testing of the flowline system. Offshore installation will occur in 2013 and 2014.
Project Details: Lucius
Shell, Nexen Continue Winning Streak at Appomattox
Apr 2, 2012 – Shell has successfully drilled the northeast fault block of the Appomattox structure in the Gulf of Mexico. The company demonstrated contingent recoverable resource in the northeast block of approximately 215 MMboe, with a range of 120 to 370 MMboe of light oil. Future planned appraisal drilling will further refine this range.
Project Details: Appomattox
Asia – SouthEast
Premier Oil Performs Workover Ops on Anoa Field
Apr 4, 2012 – Premier Oil performed workovers on the A7 and A11 wells on the Anoa field, which added a further 30 MMcf/d of gas deliverability. A new oil well (A22) was successfully completed, which added around 1,500 bopd of incremental oil production. A three-well drilling campaign on the field’s West Lobe platform progressed well and included the discovery of new reserves in the deeper Lama reservoir below Anoa. In order to upgrade the compression facilities and to increase production capacity on the producing Anoa field, a major ‘brown-field’ development project has been sanctioned, extending the assumed field plateau and developing some 200 Bcf of gross field reserves. This project, known as Anoa Phase 4, will be completed in 2013.
Premier to Bring Additional Wells Online at Chim Sao
Apr 4, 2012 – Premier Oil reported that by year-end 2011, close to 2 MMboe had been produced from six production wells on the Chim Sao field, which came online in October 2011. An additional three production wells will be available to come on-stream in early 2012 when the four-well water injection system will come online. Furthermore, a well deepened into the Oligocene directly beneath the main field proved an estimated 56 feet (17 meters) of net hydrocarbon-bearing pay, and an additional well to be drilled in early 2012 will accelerate production from a shallow reservoir that has larger reserves than initially estimated. The CS-N2P well, a development production well for the Chim Sao project, intersected the shallow part of a previously undrilled fault terrace to the northwest of the Chim Sao field. The well encountered a 66 feet (20 meter) oil column in an independent closure within good quality Upper Dua sandstones. The plan is to further appraise this new accumulation in 2012 as a near-field tie-back opportunity.
Project Details: Chim Sao
Galoc Field Recommences Production
Apr 2, 2012 – Otto Energy has recommenced production at the Galoc oil field offshore Palawan in the Philippines following a planned shutdown for refurbishment of the FPSO. During the shutdown, the FPSO Rubicon Intrepid underwent planned re-certification, maintenance, inspection and turret installation work. Otto said the upgrade of the FPSO mooring system should increase the reliability and uptime of the FPSO and is a crucial component of infrastructure to enable the Galoc Joint Venture to move ahead with a potential phase II development of the Galoc field.
Project Details: Galoc
Australia
ConocoPhillips Spuds Boreas
Apr 5, 2012 – ConocoPhillips has spud the Boreas-1 well in the Browse Basin offshore Australia. The well is located on a large tilted fault block which is part of the northeast trending structural high of the greater Poseidon structure. The objective of the well is to test the extent, presence and quality of reservoirs within the Boreas-1 fault block. ConocoPhillips is using the Transocean Legend semisub for the entire drilling campaign (consisting of five wells), which is expected to continue through 2013. The principal objective of the exploration program is to better define the size and quality of the hydrocarbon accumulation within the exploration permits which contain the greater Poseidon trend.
Project Details: Boreas
Africa – West
Chariot O&G Spuds Tapir South
Apr 5, 2012 – Chariot O&G has commenced exploratory drilling on well 1811/5-1 at its Tapir South prospect offshore Namibia. Drilling operations are being performed by the Maersk Deliverer (UDW semisub). The prospect has a 25 percent chance of success and a mean un-risked prospective resource potential of 604 million barrels of oil.
Project Details: Tapir South
Rialto Encounters Drilling Problems at Gazelle-P3 Well
Apr 2, 2012 – Rialto Energy reported that while drilling the Gazelle-P3 development well, the drill-pipe became stuck. The drilling contractor, Transocean, is currently trying to rectify the rig equipment that encountered mechanical problems while trying to free the drill-pipe. It is estimated that the repairs to the rig and the subsequent operations to remedy the stuck-pipe situation will take two weeks, after which normal drilling operations will resume.
Project Details: Gazelle
Africa – Other
Anadarko Hits Additional Gas Pay in Rovuma Basin
Apr 4, 2012 – Anadarko made another gas find in the Rovuma Basin offshore Mozambique at its Barquentine-4 appraisal well. The Barquentine-4 well encountered 525 net feet (160 meters) of natural gas pay. This is the company’s ninth successful well in the complex, which is part of the larger Prosperidade complex that is estimated to hold recoverable resources of between 17 and 30 Tcf of gas. Drilling is slated to end in July 2012. The well is situated about 19 miles (31 kilometers) north of the Lagosta discovery well at the southern end of the Windjammer/Lagosta/Barquentine/Camarao gas complex.
Project Details: Barquentine

BG Group Secures $1.8B for Brazilian FPSO Program

image

BG Group announced Thursday that it has received initial approval from the Brazilian Development Bank (BNDES) for up to $1.8 billion of long-term finance to fund part of the company’s interests in the pre-salt Santos Basin, offshore Brazil.

Subject to further approvals and the completion of a final agreement, the funding facility will be allocated to BG Group’s share of local procurement and construction costs for the eight floating production, storage and offload (FPSO) facilities that will be owned by BG Group and its Santos Basin partners.

The 150,000 barrels of oil per day capacity vessels are part of the wider first phase, fast-track development program in the Santos Basin that will deliver 2.3 million barrels of oil equivalent per day of capacity by 2017.

By the second quarter of 2012, BG Group expects to agree terms with BNDES on finance with a 14-year term.

“We are delighted to have received this initial approval from BNDES for long-term financing of up to $1.8 billion which will add to the diverse funding options already in place as we progress our global growth programme,” said BG Group Chief Financial Officer Fabio Barbosa.

“In particular, the funds will help underpin BG Group’s investments for the successful development of our world-class pre-salt Santos Basin interests. Finally, it also represents the support of one of the key players in the Brazilian government to our partnership with Petrobras and the country.”

Source

President Obama’s Domestic Energy State Of Delusion

image

Larry Bell, Contributor

President Barack Obama’s administration has claimed a number of remarkable accomplishments that will reduce dependence upon foreign oil and secure future energy security. Statements leading up to and during his January 24 State of the Union address take credit for highest levels of natural gas production in more than 30 years, record oil production in eight years, reduction of oil imports by an average of 1.1 million barrels per day, and making the U.S. a net energy exporter.

To hear him tell it, these achievements, to the extent they really exist, are appropriately attributable to his foresight and actions, rather to than to an entrepreneurial energy industry. Speaking at a January 17 meeting of his Jobs and Competitive Council he complained about lack of recognition of this fact, stating, “Folks are acting as if that [natural gas boon] just sprung out of thin air and is one more example of the dynamism of the marketplace.” Yup, under his leadership, government did it.

Furthermore, his masterworks have but only begun. Next he will open up 75% of our potential offshore oil and gas resources for development, and approve enough renewable energy projects on federal land to power three million homes.

Of course there is obviously a small catch. He will need a little more time, another four years beyond this one, to really solve everything. But before we cast those 2012 ballots to allow that to happen, let’s review the veracity of his many claims thanks to lots of fact checking help from the Institute for Energy Research (EIR) and Politifact.com.

First, he’s right about natural gas production being at record high levels and oil up very slightly, but he apparently forgot to mention that is occurring on private and state-owned lands, not on federal lands that presidents have control over.In fact the U.S. Energy Information Administration (EIA) has reported that both natural gas and oil production have declined on federal lands since the beginning of the Obama administration.

As for domestic oil, it is also true that production has reached slightly highest levels since 2003, but yields on federal lands have fallen 43% over the past 9 years, and have done so most rapidly under Obama’s watch. While total levels have been quite stable, EIA’s estimated production for 2012 is only about 13% higher than for the lowest year over an eight-year period (about 2,055,646,000 barrels, compared with 2,073,453,000 barrels in 2003). In January 2009 when President Obama was inaugurated, the U.S. produced 5,154,000 barrels of oil per day. By November 2011 (the last month for data), the U.S. was producing 5,874,000 barrels per day.This 700,000 increase occurred once again on private and state lands. Not only is the Obama administration making it more difficult to produce energy on federal lands, his minions are also leasing out less lands than in the past. Due to actions that limit offshore areas where oil can be produced and cancel other leases, production on federal lands will most likely continue to fall.  Yet fortunately, the most recent EIA “Short-Term Energy Outlook” published in January forecasts increases in total crude oil production in 2012 and 2013 thanks to increases in onshore production in the lower 48, which overshadows decreases in Alaska and the Gulf of Mexico.

Has the president, as he bragged, caused the amount of oil we are importing to be reduced? Very likely, the answer is a clear “yes”. More than half of this reduction is because of the ongoing recession along with much higher fuel prices which have caused consumers to drive less. But has the U.S., as Obama stated, become a net energy exporter? He didn’t provide any information source to back up that claim, and it contradicts EIA data that shows this to be far off the reality mark. In 2010 the U.S. imported 21 quadrillion of the 98 quadrillion Btus of energy used.

And what about that bold new proposal to make more than 75% of undiscovered oil and gas resources off our shores available for development, while putting in place common-sense safety requirements to prevent a disaster like the BP oil spill from happening again? For historical perspective, let’s remember that when Obama was elected, nearly 100% of the offshore areas were available for exploration and development. Since then his administration has imposed severe limitations. One case in point is that despite bi-partisan support from the Virginia delegation, including Democratic senators, exploration off Virginia’s coast has been prohibited.

Do you happen to remember when the Obama administration imposed a nearly year-long deep water drilling moratorium following the BP oil spill that blocked U.S. access to an estimated 7.5 billion barrels of oil and nearly 60 trillion cubic feet of natural gas? And when that very same administration also invested more than $2 billion in trade credits with Brazil’s state-owned oil company Petrobras to finance offshore exploration in their Tupi oil field in the Santos Basin near Rio de Janeiro? (Investor’s Business Daily has recently reported that an Ex-Im bank source informed them that the amount could go way higher, “in the neighborhood of $20 billion”.) Do you happen to recall that March 19, 2010 White House press conference when the president pledged that America would become one of their best customers?

Well, it seems they got a better offer. Ten months later Brazil snubbed Obama’s generosity with our money and opted to sell its oil to another country. China bought up a 40% stake in Repsol-YPF’s Brazil unit which has dibs on drilling in the offshore Santos Basin where the biggest deepwater discoveries are occurring, along with a 30% stake in Galp Energia, a Portuguese company that has also acquired rights there. Meanwhile, some of those embargoed out-of-business deep water rigs we had planned to use sailed off into the sunset to Brazil.

Having been jilted by Brazil, one might imagine that the president might be more appreciative of our neighbor to the north. Yet shortly before his State of the Union address he single-handedly rejected issuing a Keystone XL pipeline permit that does great injury to Canada as well as to American energy consumers, businesses and job opportunities. A scant one month earlier his administration imposed onerous regulations on the American economy through EPA standards that will have little or no measurable effect on health from targeted emissions.

While extolling virtues of natural gas and cheering his administration’s accomplishments, the president continues to call for higher taxes and restrictions on those industries we depend upon to produce it.  Included are proposed windfall profit taxes, use-it or lose-it land fees, and agency foot-dragging on leases awaiting federal permits.  At the same time, he stumps unrelentingly for taxpayer handouts and other special benefits for Solyndra-style green energy companies that can’t compete in free markets, and most likely, never will.

This is a president who promoted alarmism about a scarcity of American oil resources, mistakenly declaring in June 2010 that “We consume more than 20% of the world’s oil, but have less than 2% of the world’s oil reserves.” In reality, the Institute for Energy Research founded by fellow Forbes contributor Robert Bradley has reported, based upon government data, that North America land areas contain twice the combined proven reserves of all OPEC nations, and enough natural gas to provide for America’s electricity needs at current usage rates for the more than 500 years.

A continuation of current White House agendas will only ensure that the administration’s energy scarcity narrative is realized. Moreover, as IER President Thomas Pile observes , “If the state of the union is actually stronger, it comes despite the policies of President Obama and not because of them.”

Source

China gets jump on U.S. for Brazil’s oil

image

Two export pacts a coup for Beijing

By Kelly Hearn – Special to The Washington Times

BUENOS AIRES — Off the coast of Rio de Janeiro — below a mile of water and two miles of shifting rock, sand and salt — is an ultradeep sea of oil that could turn Brazil into the world’s fourth-largest oil producer, behind Russia, Saudi Arabia and the United States.

The country’s state-controlled oil company, Petrobras, expects to pump 4.9 million barrels a day from the country’s oil fields by 2020, with 40 percent of that coming from the seabed. One and a half million barrels will be bound for export markets.

The United States wants it, but China is getting it.

Less than a month after President Obama visited Brazil in March to make a pitch for oil, Brazilian President Dilma Rousseff was off to Beijing to sign oil contracts with two huge state-owned Chinese companies.

The deals are part of a growing oil relationship between the two countries that, thanks to a series of billion-dollar agreements, is giving China greater influence over Brazil’s oil frontier.

Chinese oil companies are pushing to meet mandatory expansion targets by inking deals across Africa and Latin America, but they are especially interested in Brazil.

“With the Lula and Carioca discoveries alone, Brazil added a possible 38 billion barrels of estimated recoverable oil,” said Luis Giusti, a former president of Venezuela’s state oil company, PDVSA, referring to the new Brazilian oil fields.

“That immediately changed the picture,” he said, adding that Brazil is on track to become “an oil giant.”

During Mrs. Rousseff’s visit to China, Brazil’s Petrobras signed a technology cooperation deal with the China Petroleum & Chemical Corp., or Sinopec.

Petrobras also signed a memorandum of understanding with Sinochem, a massive state-owned company with interests in energy, real estate and agrichemicals.

The Sinochem deal aims to identify and build “business opportunities in the fields of exploration and production, oil commercialization and mature oil-field recovery,” according to Petrobras.

The relationship with China goes back to at least two years before Mr. Obama came to Brazil to applaud the oil discovery and tell Mrs. Rouseff:

“We want to work with you. We want to help with technology and support to develop these oil reserves safely, and, when you’re ready to start selling, we want to be one of your best customers.”

China rescued Petrobras in 2009, when the oil company was looking at tight credit markets to finance a record-setting $224 billion investment plan. China’s national development bank offered a $10 billion loan on the condition that Petrobras ship oil to China for 10 years.

A chunk of Brazil’s oil real estate appeared on China’s portfolio in 2010, when Sinopec agreed to pay $7.1 billion for 40 percent of Repsol-YPF of Brazil, which has stakes in the now internationally famous Santos Basin, and the Sapinhoa field, which has an estimated recoverable volume of 2.1 billion barrels. Statoil of Norway also agreed that year to sell 40 percent of the offshore Peregrino field to Sinochem.

Last year, Sinopec announced it would buy 30 percent of GALP of Brazil, a Portuguese company, for $3.5 billion. GALP has interests in the Santos Basin and a 10 percent stake in the massive Lula field.

“The $5.2 billion cash-in we will get from Sinopec is paramount for our strategy in Brazil,” GALP CEO Manuel Ferreira de Oliveira told Bloomberg News.

“It will give us a rock-solid capital base as we enter a decisive investment period at the Santos Basin. This operation values our existing Brazilian assets at $12.5 billion and is really a landmark for the company and for our shareholders.”

News reports in December said Sinopec is the current favorite to buy stakes in Brazilian oil owned by Britain’s BG Group, which also has interests in the massive fields of Carioca, Guara, Lula and Lara.

On Jan 8., the French company Perenco announced it was selling Sinochem a 10 percent stake in five offshore blocks located in the Espirito Santos Basin. Some of the transactions still await approval by Brazil’s government.

In December, Venezuelan Oil Minister Rafael Ramirez publicly reiterated his government’s commitment to an oil refinery joint venture with Petrobras.

That project reportedly is set to be funded by China’s national development bank. Some news reports have quoted the head of China’s development bank saying that new deals with Brazil are under consideration.

James Williams, an energy economist with the U.S. consulting group WTRG Economics, said the Chinese are taking on big risks with ultra-deep-water investments.

“But for them, the benefits are greater, as they become partners with companies that have better technology and expertise,” he said.

This article is based in part on wire service reports.

Source

%d bloggers like this: