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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)

Insiders: SAS banker quits after market abuse fine

A JP Morgan senior banker has quit his job after being fined for abuse of insider information about Heritage Oil.

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by Michelle McGagh on Apr 03, 2012 at 10:35

A JP Morgan chairman has quit after being find £450,000 by the City regulator over abuse of insider information relating to a new oil find by Heritage Oil and an offer for the company.

Ian Hannam, chairman of capital markets at JP Morgan Cazenove, has been fined by the Financial Services Authority (FSA) after it discovered he had disclosed inside information in two emails sent in September and October 2008 to a prospective client.

Hannam will appeal the FSA’s decision but has resigned because it would be ‘an unfair distraction to my clients and colleagues’, according to the Guardian.

The information related to Heritage Oil (HOX.L), which was an existing JP Morgan client for which Hannam was the lead adviser.

In the September email, Hannam said of a potential acquisition: ‘I thought I would update you on discussions that have been going on with a potential acquirer of [Heritage Oil chief executive] Tony Buckingham’s business.

‘Tony, advised by myself, has deferred engaging with the client until Thursday of next weeks although we know they are very excited about the recent drilling results of Heritage Oil…I believe that the offer will come in in the current difficult market conditions at £3.50-£4.00 per share. I am not trying to force your hand, just wanted to make sure you aware of what is happening.’

In the second email, Hannam discloses information about a potential oil find, he said: ‘PS – Tony has just found oil and it’s looking good.’

A Fortune article last year described Hannam as a working-class South Londoner, the son of a council worker. He joined the Territorial Special Air Service (SAS) at 17 – one of the youngest men to pass the selection process. Hannam went on to gain a civil engineering degree at Imperial College before going into construction where his first assignment was building roads in Oman.

Hannam then went to business school and embarked on a training programme at Saloman Brothers in New York and worked his way up the corporate ladder – getting caught in the Robert Maxwell fiasco along the way.

The Fortune article said: ‘From Congo to Columbia, from Iraq to Sierra Leone, Hannam and his small team of soldiers-turned-bankers and advisers did business with oligarchs, gem deals, and former mercenaries.’

The FSA said it accepted that Hannam did not deliberately set out to commit market abuse. Hannam has referred the decision to the Upper Tribunal where he and the regulator will state their cases. The Tribunal will determine whether to uphold, vary or cancel the FSA ruling.

Tracey McDermott, acting FSA director of enforcement and financial crime, said: ‘Inside information is extremely valuable and must be handled with care to ensure that it is properly controlled and that appropriate safeguards are observed.

‘This applies to all market participants but is particularly important for senior practitioners who will regularly interact with a wide circle of contacts.’

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Anadarko Finds Hydrocarbons Offshore Sierra Leone

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Anadarko’s Jupiter-1 exploration well in Block SL-07B-11 offshore Sierra Leone has encountered hydrocarbons. This has been confirmed by the results of drilling, wireline logs and samples of reservoir fluids.

The well, located over 25 kilometres west of the Mercury-1 well which discovered oil in the block, intersected 30 metres of hydrocarbon pay in the primary Upper Cretaceousobjective and did not encounter a hydrocarbon water contact. The well has been preserved for possible future re-entry, as the area is likely to require additional evaluation.

Jupiter-1 was drilled by the Transocean Discoverer Spirit drillship to a total depth of 6,465 metres in a water depth of 2,199 metres. On completion of operations, the drillship will move 15km northeast to the Mercury-2 well which will target several reservoir levels including extensions of the oil accumulations discovered by the Mercury-1 well.

Anadarko (55%) is Operator of offshore Block SL-07B-11 along with partners Repsol (25%) and Tullow (20%).

Angus McCoss, Exploration Director of Tullow, commented today:

“Jupiter is the third discovery in the Liberian Basin by Tullow and its Partners and provides further support for the stratigraphic play in the region. The presence of a working petroleum system producing gas and light oil in the basin is encouraging. Our technical teams will continue evaluating prospectivity across our significant regional acreage position. We will further test the play through the drilling of Mercury-2 in Sierra Leone and Kosrou-1 which is currently drilling in Côte d’Ivoire.”

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