Jeremy Beckman - London
StatoilHydro sets recovery targets
StatoilHydro has 55 pilot technology projects under way on the Norwegian shelf, and more are planned next year. According to a presentation at ONS Stavanger by Margareth Ovrum, executive VP for Technology, over 75% of these programs are devoted to improved oil recovery.
At today’s oil prices, even a 1% increase in output would add $40 billion to the value of the company’s Norwegian fields, said Astrid Jorgenvaag, VP for Research and Development. One problem is that drilling targets close to mature field centers are getting smaller and more difficult to access. The aim, therefore, is to consistently drill and drain 50,000 cu m accumulations compared with an average of 300,000 cu m today, she added.
Jorgenvaag cited other goals such as improved geophysical models for identifying new reserves (one example being 4D seismic for reservoir monitoring at Snorre B); devising new recovery methods to flow remaining oil toward production wells; lower-cost wells; and more cost-effective intervention.
In another presentation, Senior VP for Reserves and Business Development Hege Marie Norheim, said that StatoilHydro was on track to mature more than 600 MMboe through its existing field infrastructure by 2012. She also identified eight promising early-stage field developments planned for 2012 onwards, which could add 300,000 boe/d to the company’s Norwegian output by 2015.
One North Sea field in this category, Valemon, was penciled in for start-up in 2014. However, Wood Group subsidiary Alliance Engineering was recently contracted for a concept feasibility study for Valemon involving a fixed jacket production platform, early drilling via a cantilevered rig, and later-life compression facilities.
Also on Norheim’s list was Dagny, a new oilfield 10 km (6.22 mi) northwest of the Sleipner West complex. The 1978 discovery well found gas and condensate in the Middle Jurassic, but following an oil find last year on the adjacent Ermintrude structure, StatoilHydro decided to delve deeper into Dagny.
A recent well drilled by the semisubmersible drilling rigTransocean Winner encountered a 100-m (328-ft) oil column in the Hugin formation. Pressure data readings were identical to those from the Ermintrude well, said Norway Exploration and Production VP Tim Dodson. Analysis suggests the two fields are a unified structure with potential reserves of 200 MMboe, although the water contact has yet to be established.
Dodson said he was convinced there was potential for further oil finds in license 303 to the north and west of Sleipner. The company plans to drill one structure later this year.
FPSOs in UK comeback
Hess has discovered oil on the Amos prospect, west of the Shetlands. Partner OMV (UK) confirmed that the well in block 204/25a, completed in April, was potentially commercial due to its proximity to BP’s Schiehallion complex 4 km (2.49 mi) to the north. But no firm off-take decision has yet been reached.
Location of Hess’ Amos oil discovery west of Shetland.
Schiehallion is produced through a monohull FPSO, and this mode of development is back in vogue on the UK shelf. Oilexco has contracted Bluewater to deploy theGlas Dowr, currently completing duty on the Sable field off South Africa, to its Huntington project in central North Sea block 22/14b.
Huntington, discovered in summer 2007, is thought to be the UK’s largest new oil find since EnCana’s Buzzard, with potential resources of up to 250 MMbbl from Palaeocene Forties and Upper Jurassic Fulmar sands.
In the same region, Bluewater has taken theUisge Gorm – previously in service on the now-defunct Fife field – into drydock for a life extension program, ahead of a new tour of duty next year on Ithaca Energy’s Athena field in block 14/8b. Ithaca had the option to tie the field back to Talisman’s Claymore platform, but was deterred by the high costs of the modification program.
According to analysts BritBoss, Ithaca will be produced by five subsea wells linked to a manifold that will incorporate equipment for subsea raw water injection. The oil is relatively heavy, so Schlumberger will install electric submersible pumps in all the producers.
Another Canadian operator, Antrim Energy, is looking for an FPSO for Fyne, a Tay sandstones oil and gas discovery it has recently appraised in block 21/28a.
PA tests Danish plays
Sweden’s PA Resources plans to raise its profile in the Danish North Sea. Subject to partner approval, it will acquire 27% interest from Shell in two Maersk-operated licenses, 9/06 and 9/95, south of the Harald field.
PA says both licenses have strong prospectivity. The jackupEnsco 101 is due to drill the Lita structure in 9/06 this fall, testing two Jurassic plays with potential resources in the range 200-1,100 MMboe. A discovery could be developed through spare capacity in nearby infrastructure. PA already operates two Danish exploration licenses, 11/06 and 12/06, and is negotiating for a rig to drill wells on both next year.
Among other transactions elsewhere in the North Sea, Total is set to acquire Talisman’s Dutch subsidiary Goal Petroleum (Netherlands) for $480 million, excluding working capital. Most of the interests are in producing fields operated by Total, and they should lift the company’s Dutch production by around 8,000 boe/d by 2011.
In the UK central sector, Canadian North Sea Energy has agreed to farm in to six license operated by Fairfield, including the proposed Maureen oilfield redevelopment in block 16/29a. CNS will co-fund an appraisal well planned early next year on Maureen’s Palaeocene reservoir.
The field was shut down in 1999 by former operator Phillips Petroleum after 19 years in production. BritBoss claims Fairfield’s preferred option is subsea wells tied back either to BP’s Andrew complex, 20 km (12.43 mi) to the southwest, or southeast to Talisman’s Varg FPSO in Norwegian waters.
Serica to drill in Slyne basin
Serica Energy is preparing for its first well as an operator offshore Ireland, using the semisubmersibleGSF Arctic II. During spring 2009 the rig will drill either Bandon or Boyne, two of four 1 tcf prospects identified from seismic over license PEL 01/06, covering three blocks in the southern Slyne basin off western Ireland.
The main target will be the same Triassic Sherwood sandstone housing Shell’s Corrib gas field to the north. Germany’s RWE Dea will likely co-fund the well via a farm-in to the license.
In the Kish Bank basin offshore eastern Ireland, Providence Resources is evaluating gas storage options over eight blocks in a recently awarded license. The Ulysses project, co-managed by Petronas subsidiary Star Energy, will assess the feasibility of adapting Triassic saline reservoirs for gas storage and CO2 sequestration.
A recent green paper on energy from Ireland’s government recommended building storage capacity of around 45 bcf. Currently the country’s sole offshore storage facility is at the SW Kinsale Head field operated by Marathon offshore Cork, which has capacity for up to 7 bcf.
