Jeremy Beckman • London
Seismic acquisition was due to start this month over the waters off Jan Mayen, a volcanic island in the Arctic Ocean, 1,000 km (621 mi) west of Norway’s North Cape. The 2D campaign, conducted by PGS, forms part of the Norwegian government’s impact assessment of the fishing-rich maritime zones ahead of any future petroleum activity in this region. More seismic data will be acquired next summer.
The government is responding to the industry’s pleas to open new areas for exploration. Norway’s twenty-first licensing round focused exclusively on the Norwegian Barents Seas – 24 permits were issued, including acreage north of any previous activity. Statoil picked up four operatorships in the Barents Sea, two close to its recent Skrugard discovery, which may have opened a major new oil play.
Others awarded licenses in the Skrugard area included Wintershall and Lundin Norway. Last month, Lundin started drilling its first operated well in the Barents Sea, targeting multiple prospects in Skalle, a potential 250 MMboe structure north of the Snohvit gas/condensate field.
Statoil switches on field conveyor belt
Statoil has submitted three fast-track field development plans in quick succession, incurring estimated costs of over $2.5 billion, and designed to deliver just over 100 MMboe. By “fasttrack,” the company means halving the normal time from discovery to first oil and gas for smaller accumulations through use of standardized subsea facilities.
The costliest project involves Katla, discovered in March 2009, which will be connected to the Oseberg platform in the North Sea 13 km (8 mi) to the northeast via a seabed template, with two production wells and two water injectors. Katla’s gas will provide pressure support to the Oseberg Omega North reservoir. Assuming approval, Katla should come on line late in 2012
Vigdis North, discovered around the same time, will feature a standard subsea template, with oil and gas from three wells flowing through a new pipeline to the Vigdis template, and from there through an existing line to the Snorre A platform for processing. Start-up is targeted for early 2013. Hyme (formerly “Gygrid”) is an oilfield discovery drilled in June 2009 in the Halten Terrace of the Norwegian Sea. Here, a four-slot subsea template will serve initially one producer and one water injector, both connected to the Njord A platform.
Statoil may have a further tieback option to Oseberg, following a discovery in Brent Group mid-Jurassic rock on the Krafla prospect. This could contain up to 55 MMboe – a sidetrack due to follow on the Krafla West structure should provide a clearer picture.
Bacchus bundle completes tow
Subsea 7 has installed a 6.7-km (4.2-mi) pipeline bundle for Apache Energy’s Bacchus field development in the UK central North Sea. The bundle, manufactured at the company’s Wester site in northeast Scotland, comprises two insulated 6-in. (15.2-cm) piggable production lines; two insulated 4-in. (10.2-cm) heating/produced water re-injection lines; a gas-lift line; scale inhibitor; and control system lines.
Preparations for the Bacchus flowline bundle tow.
Following integration with the towheads, the bundle was transported to the Bacchus field location by tugs in a suspended position via the controlled depth tow technique. It will remain inactive at this location until later in the year, pending connection to the Forties Alpha platform and the three Bacchus development wells. The program was overseen by Aberdeen-based subsea project management specialist Flexlife.
Nexen gives Golden Eagle all-clear
Nexen’s board has approved plans for the company’s second major development in the central UK North Sea, after Buzzard. The $3.3-billion Golden Eagle project will feature two platforms producing a total of 70,000 boe/d from three fields. Assuming approval from Nexen’s partners and the UK government, work on the scheme could start shortly, leading to first oil in late 2014.
The price is “attractive,” said chaiman and CEO Marvin Romanow, in spite of the government’s unexpected tax increase on petroleum activity. But this action would discourage new investment on the UK shelf, he warned, a theme taken up by another Calgary-based producer, Canadian Natural Resources. CNR says the tax hit will cut post-tax profits for UK E&P companies by 24% this year. As a result, CNR has not only cancelled planned drilling at the Murchison field in the northern North Sea, but has decided to start decommissioning the field’s elderly platform.
OSPRAG outlines spill response measures
Britain’s Oil Spill and Response Advisory Group (OSPRAG) has published its second interim report concerning the repercussions of the Macondo incident for the UK sector. One recommendation already implemented is the establishment of the Well Life Cycle Practices Forum, chaired by a Mobil North Sea drilling engineer and administered by industry association Oil & Gas UK. Six work groups are examining blowout preventer issues, well planning needs, well life cycle integrity guidelines, verification, competency, and other factors.
Another measure, well documented, is the construction by Cameron of a well-capping device to seal off oil leaking from an uncontrolled well. Oil Spill Response commissioned this program, with a BP North Sea team managing the project. The modular cap will be deployable in a wide range of spill scenarios and is designed to be attached to various parts of subsea equipment.
A further Osprag priority has been to secure provisions that address the industry’s responsibilities in meeting potential clean-up and compensations costs arising from a spill. There is a formal agreement in place, known as OPOL, requiring each operator to accept liability for reimbursing public authorities for remedial measures and to provide compensation to third parties for pollution damage. On OSPRAG’s recommendation, the pre-determined limit has been raised to $250 million per incident, which the group claims should be enough to cover third-party claims for most oil spill scenarios.
ONE boosts Dutch North Sea reserves
Oranje-Nassau Energie (ONE) has strengthened its base in the Dutch North Sea by acquiring NAM’s operating interest in the Q16a license. The acquisition, which includes the producing Q16-FA field, will lift ONE’s production by 1,500 boe/d.
Earlier this year, the Dutch company announced itself as a force in the sector through buying the interests of Canadian company Cirrus Energy, which include numerous operated fields and participating interests in the Dutch M and L quadrants. ONE’s target is to raise its developed reserves base from 30 MMboe at present to at least 80 MMboe within five years.
Offshore Articles Archives
View Oil and Gas Articles on PennEnergy.com
