Global E&P

North America

Planning is under way for two decommissioning projects offshore Nova Scotia, eastern Canada. ExxonMobil has contracted Heerema Marine Contractors to remove various structures from the seven-platform complex serving the Sable Offshore Energy Project, using the heavy-lift vessel Thialf. These will be transported across the Atlantic to northeast England for disposal at Able Seaton Port on the River Tees.

In May, Encana shut down production from the Deep Panuke gas field, 47 km (29 mi) west of Sable Island in 44 m (144 ft) water depth. Claxton will provide abrasive jet cutting equipment to support the harsh-environment jackup Noble Regina Allen on the well P&A program, due to start in January 2020.

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MODEC has a letter of intent from Eni to supply and operate an FPSO in Offshore Area 1, 10 km (6.2 mi) from the Mexican coast in 100 m (328 ft) of water, under a 15-year charter due to start in 2021. The scope includes construction and installation of the vessel, which will feature oil processing capacity of 90,000 b/d and storage for 900,000 bbl of crude. MODEC subsidiary SOFEC will design and supply the disconnectable tower yoke mooring system.

South America

Kosmos Energy’s first exploration well offshore Suriname was water-bearing. Pontenoe-1 was targeting oil in a stratigraphic trap in late Cretaceous reservoirs in block 42, 280 km (174 mi) northwest of Paramaribo in 2,497 m (8,192 ft) of water. The company and partners Hess and Chevron plan to resume drilling in 2020.

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Brazil’s regulatory agency ANP awarded all four deepwater blocks offered under the country’s 5th production sharing round. The anticipated programs should raise $9.88 billion/yr for the government, states and municipalities, according to ANP director-general Décio Oddone.

Blocks awarded under Brazil’s 5th production sharing round. (Courtesy ANP)

In the Santos basin, Shell will operate the Saturno block in partnership with Chevron and BP. ExxonMobil will operate Titã, alongside QPI Brasil, while BP heads a consortium that includes Ecopetrol and CNOOC for the Pau-Brasil block. Petrobras exercised its preferential right to secure 100% of the Sudoeste de Tartaruga Verde block in the Campos basin.

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Petrobras has contracted Aker Solutions to provide a subsea production system for the ultra-deepwater Mero 1 project in the northwestern part of the Libra block in the Santos basin, which will be tailored to presalt operations. It will include 12 vertical subsea trees and three topsides master control stations for installation on the FPSO Guanabara. All deliveries are scheduled for 2020, with installation spread between 2020 and 2023. The FPSO will process up to 180,000 b/d of oil and 12 MMcm/d of gas.

An extended well test has finished on the Mero field from the FPSO Pioneiro de Libra, which was also adapted to re-inject the produced gas. The production well flowed up to 58,000 boe/d, with results reducing the block partners’ uncertainties over the reservoir. The vessel was due to mobilize to a new location on the concession for further trials. Petrobras expects to commission three further FPSOs for the block over the next few years, with similar capabilities to the Guanabara.

West Africa

BP has contracted KBR to perform front-end engineering design (FEED) for Phase 1 of the Tortue gas/condensate field hub/terminal development offshore Senegal and Mauritania. KBR is managing work on the quarters and utilities, including the telecoms system. The contract could be upgraded later to include engineering, procurement, and construction management.

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Aker Energy has contracted the drillship Maersk Viking to drill the Pecan-4A appraisal well in the Deepwater Cape Three Points block offshore Ghana. The program, due to start in the current quarter, could last up to 35 days. Aker Energy also assigned Halliburton and Exceed respectively the associated drilling services and well design.

Subsea 7 and NOV subsidiary APL are jointly working on construction and installation of the new buoy turret loading system that Tullow Oil has commissioned for the Jubilee field FPSO in 1,000 m (3,281 ft) water depth offshore Ghana. The scope includes suction piles and two offloading lines.

Ghana’s government has reportedly launched the country’s first offshore licensing round, with bids to be invited for six blocks next year.

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VAALCO Energy and its partners have secured a 10-year extension to three exclusive exploitation areas under the Etame Marin PSC offshore Gabon. They have agreed to a new phase of drilling comprising two development wells and two appraisal wells.

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Namibia’s Ministry of Environment and Tourism has granted Eco (Atlantic) Oil & Gas an environmental clearance certificate to drill an exploration well on the Osprey prospect in offshore block PEL 30. The company and its partners have identified prospectivity in a Cretaceous channel and fan system.

Mediterranean Sea

BP, Eni, and Libyan state oil company NOC have signed an agreement under which Eni will acquire a 42.5% operated interest in a BP-led exploration and production-sharing agreement. This includes the offshore contractual area C in the Sirt basin. The Italian major has existing E&P activities and production infrastructure nearby – the agreement should lead to a resumption of exploration in the region.

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In the Adriatic Sea off eastern Italy, Eni has contracted Shelf Drilling’s jackup Key Singapore for a two-year drilling program, scheduled to begin around mid-2019.

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Energean expected to submit an environmental and social impact assessment for a $60-million development of the 10.5-MMbbl Katakolo field offshore western Greece, which could be followed by an investment decision by year-end. In that case, first oil should follow in 2020.

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The harsh-environment jackup Rowan Norway is due to start a two-well contract shortly for Turkish Petroleum in the Mediterranean Sea. The program could last up to 140 days.

Black Sea/Caspian Sea

The drillship Noble Globetrotter II may have started an exploratory drilling program for Total offshore Bulgaria, scheduled to end in early January.

Total has also contracted a consortium of Saipem, Boshelf LLC, and Star Gulf FZCO to engineer, supply and install the SURF facilities for the Absheron field development in the Azeri sector of the Caspian Sea. Facilities will include a single 12-in. production flowline and a main umbilical, both 34 km (21 mi) long.

Middle East

ADNOC LNG has approved an $860-million investment for the second phase of Abu Dhabi’s Integrated Gas Development Expansion (IGD-E) project. This will take 54 months to complete and will add 245 MMcf/d of associated gas to the 1.4 bcf/d of gas from the offshore Umma Shaif field sent via Das Island to ADNOC Gas Processing’s Habshan gas facilities. Phase 1 of IGD-E, completed this summer, included construction of a new 117-km (73-mi) offshore gas line.

Baker Hughes, a GE company has an agreement with the state oil company under which it will pay $550 million to acquire a 5% stake in ADNOC Drilling – the aim being to develop the latter into a fully integrated drilling and well construction provider. BHGE and ADNOC plan to jointly pursue more competitive well completion times and improved drilling efficiencies.

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Qatar Petroleum will commission a fourth liquefaction train to increase capacity of the Qatar LNG expansion project by around 32 MMt/yr of LNG, supplied by gas from the offshore North Field. This follows strong recent results from offshore appraisal drilling and testing. The company may by now have awarded the EPCI contract for the associated new wellhead platform jackets.

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Saudi Aramco and Bahrain Petroleum Company (BAPCO) have jointly commissioned the new AB-4 pipeline between the two countries. The 122-km (69.6-mi), 30-in. pipeline, which includes a 42-km (26-mi) offshore segment, can transport up to 350,000 b/d from Aramco’s Abqaiq complex to a refinery in Bahrain.

Floater installation of the REGAS topsides offshore Bahrain.
(Courtesy GS E&C)

Aqualis Engineering has completed supervision of the floatover installation of the REGAS topsides for the Bahrain LNG import terminal project. The 7,000-metric ton (7,716-ton) topsides, built in Thailand and transported on the semisubmersible vessel Zhenhua 15, was mated to the pre-installed jacket in 17 m (56 ft) water depth, 4 km (2.5 mi) offshore Bahrain, under a program managed by APMC.

East Africa

Mozambique’s government has awarded Eni operatorship of offshore block A5-A in the deepwater Northern Zambezi basin, 1,500 km (932 mi) northeast of Maputo. The 5,133-sq km (1,982-sq mi) concession is in water depths of 300-1,800 m (984-5,905 ft) in an unexplored area. Eni’s partners are Sasol and state-owned ENH.

Asia/Pacific

ONGC has awarded the subsea development of block DWN-98/2 in the Krishna Godavari basin off eastern India to a consortium of BHGE, McDermott International, and L&T Hydrocarbon Engineering. This covers all the subsea production systems, including 34 deepwater trees and SURF installations in water depths of 300-3,200 m (984-10,500 ft). BHGE will provide most of the subsea equipment, with L&T contributing some of the manifolds, while McDermott will handle the offshore installations.

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Woodside Energy has successfully appraised its Shwe Yee Htun gas discovery in the A2 block offshore Myanmar. Following the recently completed second well on the structure, partner Total estimates combined resources from this and the earlier Pyi Thit find in the same block in the range of 2-3 tcf. Total will assume operatorship for the development.

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PTTEP has submitted bids for the giant Bongkot and Erawan fields in the Gulf of Thailand, which the Thai government plans to re-license under new long-term concession agreements. Together the fields account for 60% of the country’s gas production. PTTEP is bidding for Bongkot on a sole basis, having been involved in operations for the past 25 years, and in partnership with Mubadala Petroleum for Erawan.

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Gazprom Neft and Mitsubishi plan to co-operate on development of the shallow-water Ayashky license block in the Sea of Okhotsk offshore northeast Russia. The block includes last year’s Neptune oil field discovery, in 62 m (203 ft) water depth.

Drilling in the Ayashky license block off Sakhalin Island. (Courtesy Gazprom Neft)

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CNOOC has started production from the Penglai 19-3 oilfield comprehensive adjustment project in the south-central Bohai Sea offshore China. The facilities, which include two wellhead platforms and a central processing platform, are 80 km (50 mi) southeast of Penglai in 27-33 m (88-108 ft) of water, and are connected to existing infrastructure serving Penglai 19-3.

Australasia

ConocoPhillips has agreed to sell its 30% interest in the Greater Sunrise fields in the Timor Sea to the government of Timor-Leste for $350 million. Analyst Wood Mackenzie expected the associated LNG development to now go forward through an FPSO, processing the condensate, and construction of a new onshore liquefaction plant and associated infrastructure. The government sees the project as a priority to replace declining production from the offshore Bayu Undan field. •