Gulf of Mexico: W&T Offshore Makes Discovery at Mahogany Field
W&T Offshore, Inc. announced that it has made a subsalt discovery in a deep shelf exploratory target beneath its Ship Shoal 349 “Mahogany” Field.
The SS 359 A-14 well has exceeded the Company’s expectations and is currently producing from the targeted T-Sand (in excess of 17,200′ total vertical depth), at an initial flow back rate of 3,030 barrels of oil per day and 5.6 million cubic feet of gas per day, for a total of approximately 4,000 barrels of oil equivalent (Boe) per day (3,310 Boe per day net of royalty to W&T) with a flowing tubing pressure of approximately 9,400 psi surface pressure. The T-Sand is the deepest sand discovered in this field, as there is additional pay identified in the M-Sand, N-Sand, and O-Sand, all of which represent future reserve additions to the Company. The well also penetrated a thicker than expected P-sand interval (the main field pay sand) which will also serve as a future recompletion. In total, the A-14 well logged over 370 feet of net oil pay, with the T-Sand accounting for 108 feet of the total net pay. Success from the A-14 T-sand will stimulate additional drilling in 2014 to exploit the four newly discovered oil sands that were encountered in the A-14 well. W&T holds a 100% working interest in the field.
Tracy Krohn, W&T Offshore’s Chairman and CEO, stated, “Our exploration team utilized our subsalt imaging technology to identify and deliver this subsalt discovery which is a deep shelf exploration extension to our producing Mahogany Field. This new oil discovery is part of our organic growth plan and adds substantial value to the Company. We found a very high quality oil sand in the T-sand reservoir with great flow characteristics. Another key value driver on this project is our ability to produce this discovery immediately through our existing infrastructure at Mahogany. We are evaluating additional targets in this highly prolific field based upon our continuing success and look forward to our next exploratory well at Mahogany, the A-15 well, which should begin drilling in in September.”
The platform rig at Mahogany is currently working on a major recompletion in the A-4 well, designed to bring a behind pipe P-Sand interval into production at an expected rate of 1,000 Boe per day, net of royalties to W&T with an anticipated production date of August or September. Following the A-4 recomplete the Company expects to spud the A-15 subsalt exploratory well, a multi-horizon target that is anticipated to encounter multiple stacked oil sand targets. The A-15 well is scheduled to reach total depth near the end of 2013 or early 2014 with a target IP rate of 1,390 Boe per day, net of royalty to W&T. The unrisked reserve potential associated with the A-15 well is anticipated to be in the range of 1.8 to 6.2 million Boe.
Houston TX: Chevron to Build Office Building in the World’s Energy Capital
Chevron U.S.A. Inc. announced plans to construct an office building in downtown Houston to accommodate its business growth and expanding workforce in the world’s energy capital.
The 50-story, 1.7 million-square-foot building will be located at 1600 Louisiana Street at Pease. Together with Chevron’s existing properties at 1500 Louisiana and 1400 Smith, the buildings will comprise an urban campus with indoor and outdoor common areas, enhanced dining facilities, a fitness center, training and conference facilities, and additional parking.
“This announcement underscores Chevron’s long-term commitment to Houston and its role as the epicenter of the global energy industry,” said Bereket Haregot, president of Chevron’s Business and Real Estate Services division. “Houston plays a vital and growing role in Chevron’s global business. The new building and expanded urban campus will provide a first-rate work environment for our employees and help us remain the employer of choice.”
The headquarters of Chevron Corporation, the parent company of Chevron U.S.A., will remain in California, where they have been located for more than 130 years.
Final investment decision for the project, designed by HOK, is expected in the second quarter of 2014. Groundbreaking will follow final investment decision, and occupancy is anticipated to begin in the fourth quarter of 2016.
Press Release, July 4, 2013
Gulf of Mexico: InterMoor Completes Heave-Compensation Job in U.S. GoM
InterMoor, an Acteon company, has successfully completed a contract with Cross Group, Inc. that included the provision of heave-compensation services for the installation of a Cross 7.0 workover riser package (WRP).
An InterMoor compensated anchor-handler subsea installation method (CASIM) unit played a key role in deploying and recovering the WRP.
“The CASIM system enabled us to provide effective heave compensation and to recover the delicate WRP on a vessel without an active heave-compensated crane or stern roller,” said InterMoor vice president of business development David Cobb. “That was the only way to achieve the WRP installation from this vessel. The success of this project underlines the value of the CASIM system as a cost- and time-effective solution, and explains why more and more subsea contractors and operators are choosing it to facilitate the installation of workover packages.”
Each standard CASIM unit has a maximum stroke of 3 meters and can accommodate loads up to 50 tons.
The heave compensation operation was in water depths of about 140 meters and used Cal Dive’s Uncle John DP saturation diving vessel to install the 29-ton WRP. The project took place at East Cameron well 378#3, offshore Louisiana, USA. The Cross Group is conducting a plugging and abandonment (P&A) program in the field for EPL Oil & Gas, Inc.
This project demonstrates how InterMoor can provide cost-effective solutions for the installation of subsea workover equipment using vessels of opportunity. Operators trust InterMoor to be part of their P&A campaigns and to help them meet BOEMRE NTL No. 2010-G05 requirements for timely decommissioning of idle infrastructure on active leases.
Gulf of Mexico: Balltec to Supply Subsea Mooring Connectors for Tubular Bells Project
Balltec Ltd, Morecambe,UK, has been contracted by Houston Offshore to supply and install 10 off MoorLOK™ subsea mooring connectors for the Tubular Bells project, located in the Mississippi Canyon area of the Gulf of Mexico.
The contract covers the manufacture of 10 off 15,000kN MoorLOK™ connectors for the mooring of the Williams floating production system (FPS), Gulfstar GS1 on the Tubular Bells field at a water depth of 4,500ft. The connectors will be manufactured in accordance with the ABS Guide for the Certification of Offshore Mooring Chain, 2009, and are due to be installed during the first half of 2013.
Martin Bell, Sales and Marketing Director at Balltec Ltd said:
‘Balltec is proud to have been awarded this significant mooring connector contract. The Tubular Bells project has been under development for some time and we are very much looking forward to working with Houston Offshore Engineering and Williams to play our part in bringing this project to first oil.’
Russell Benson, Managing Director, Balltec Ltd said:
‘The award of the Tubular Bells mooring connector package is another significant contract gain in 2012. With Tubular Bells and several other projects due to be completed next year as well as new products ready to be launched, 2013 is going to be another exciting year for Balltec.’
The Balltec MoorLOK™ is a disconnectable, subsea mooring connector designed for the temporary and permanent mooring of floating structures.
Gulf of Mexico: Stone Energy Hires Ensco Semi
Stone Energy has contracted an ENSCO 8500 series dynamically positioned deep water drilling rig for Stone’s Cardona oil development program at Mississippi Canyon 29.
Drilling on the first Cardona well is expected to commence during the second half of 2013 followed by the drilling of the Cardona South well. Stone plans to tie back both wells to the 100% owned Pompano platform with production projected for late 2014. Stone holds a 65% working interest in the Cardona wells and will be the operator.
Chairman, President and CEO David Welch stated, “The signing of the Ensco contract allows us to move forward to more fully develop the reserves around the Pompano platform. These Stone-operated deep water wells allow us to be in control of the planning and timing of the Cardona project. After years of preparation, we look forward to progressing our deep water development and exploration efforts.”
Separately, the ENSCO 81 jack-up rig is expected to begin drilling on a three to four well conventional shelf/deep gas drilling program in May 2013. Stone expects to drill the Hammerlock oil prospect located on South Timbalier 100, followed by the Taildancer oil prospect located on Ship Shoal 113. The remaining one or two wells will follow Taildancer. Also in May 2013, the Parker 50B inland barge rig is expected to spud an infield oil well prospect in the Stone-operated Clovelly field. Stone holds a 94% working interest in Hammerlock and a 100% working interest in Taildancer and Clovelly.
At the La Cantera liquids-rich deep gas field, the third well was successfully drilled to 18,000 ft and is currently in completion operations with first production expected in June 2013. Combined with the first two wells, gross production from this field is projected at over 100 MMcfe per day (over 25 MMcfe per day net) when the third well commences production. Stone holds a 34.6% non-operated working interest in the field.
Drilling operations at the deep water Malachite prospect located on Mississippi Canyon 258 are complete. The well has been logged and marginal hydrocarbons were found in several sands. The partners have decided not to proceed with the project and the well is currently being plugged and abandoned. Stone holds a 40% non-operated working interest in the prospect and the net well cost is estimated at approximately $22 million.
- Ensco, Keppel FELS Enter USD 225 Mln Jack-Up Deal (worldmaritimenews.com)
Houston,TX: BP Hires Helix’s Q5000 Semi
Helix Energy Solutions Group, Inc. announced today that it has entered into a five-year contract with BP to provide well intervention services to BP in the US Gulf of Mexico with Helix’s deepwater well intervention semisubmersible vessel, the Q5000, currently being constructed in Singapore.
The contract is for a minimum 270 days each year and is expected to commence between April and August 2015 following the delivery of the vessel from the shipyard. The contract also includes a first right of refusal for additional days each year and an option to extend for two successive one-year terms.
“We appreciate the confidence BP has shown in our Company’s well intervention services, and look forward to this integral step in further executing our business strategy,” said Helix President and Chief Executive Officer Owen Kratz.
Representing a $585 million investment, the dynamically positioned Q5000 will be a bigger version of Helix ESG’s proven Q4000 semisubmersible MODU.
Helix Energy Solutions Group, headquartered in Houston, Texas, is an international offshore energy company that provides key life of field services to the energy market.
USA: Stabilis Energy to Build Five LNG Plants
Stabilis Energy LLC plans to build five LNG liquefaction facilities to service the high horsepower oilfield, marine, and rail fuel markets.
Stabilis has contracted Chart Energy & Chemicals to perform advance engineering for five LNG production plants for implementation in North America. Stabilis has selected Chart’s C100N and C250IMR standard LNG liquefaction plants, which produce 100,000 gallons and 250,000 gallons per day of LNG, respectively. Advance engineering will commence immediately.
Stabilis placed a deposit to secure a manufacturing space reservation with Chart, to ensure that the first LNG plant can be online in the 1st quarter of 2015 or before. Stabilis is still analyzing the data to determine the ideal location for the first plant. The location priority analysis will consider a number of issues including local gas supply and quality, regional LNG demand, as well as state and local permitting requirements and timelines. The four remaining plants are scheduled to come online at regular intervals throughout 2015 and 2016.
“Stabilis Energy believes LNG will be a major contributor to North American energy independence. High quality locally produced LNG is the only reliable, clean and efficient alternative fuel to diesel. LNG is proven to be the most cost effective fuel solution for high horsepower applications. Stabilis will supply off-road engine fuel requirements while supporting on-highway motor fuel markets with strategic distribution partners,” commented Casey Crenshaw, President of Stabilis Energy.
“Chart is very pleased to support Stabilis in their drive to implement LNG fuelling infrastructure in North America, and we are very pleased they have chosen Chart to provide the underlying LNG production plants. Our standard LNG plant platform provides Stabilis the ability to get LNG to market quickly, reliably and cost efficiently. We look forward to our ongoing relationship with Stabilis as their build out progresses,” stated Mike Durkin, President of Chart E&C.
GoM: FMC Technologies Wins Subsea Equipment Order
FMC Technologies, Inc. announced today that it has received a subsea equipment order from LLOG Exploration Company, LLC (LLOG Exploration) for the Who Dat field. The order has an estimated value of $30 million in revenue.
The project is located in the Gulf of Mexico Mississippi Canyon Block 503 in water depths of approximately 3200 feet (975 meters). FMC Technologies’ scope of supply includes subsea trees, a subsea manifold, multiphase meters and a subsea distribution system. The equipment is scheduled for delivery in 2013.
“FMC Technologies is pleased to have been chosen by LLOG Exploration to provide subsea systems for its continued development of the Who Dat field,” said Tore Halvorsen, FMC Technologies’ Senior Vice President, Subsea Technologies. “We welcome the opportunity to continue supporting LLOG Exploration with its Gulf of Mexico developments.”
Subsea World News – FMC Technologies Wins Subsea Equipment Order (USA).