Murphy Oil Corp. has started production from its Front Runner field in Green Canyon blocks 338 and 339. The field is producing from the first of eight wells to be completed. Production from the well will be increased to 13,000-15,000 boe/d. Next, Murphy plans to run three risers and then proceed to the second completion.
The Front Runner development is in 3,100 ft of water and consists of a spar facility capable of handling 60,000 b/d of crude oil and 110 MMcf/d of natural gas.
Murphy operates the field and holds a 37.5% interest with partners Dominion Exploration & Production Inc. 37.5%, and Spinnaker Exploration Co 26%.
Front Runner is in Green Canyon blocks 338 and 339.
Meanwhile, BP has brought its Holstein oil and natural gas production online. The field is in Green Canyon block 645 in 4,300 ft of water.
The Holstein development consists of the largest truss spar in the world, equipped with facilities for simultaneous production and drilling operations. Production began on Dec. 9, 2004, and will increase over the next year as additional wells are completed and brought online. At peak production, the facility will produce more than 100,000 b/d and 90 MMcf/d.
Oil from Holstein will flow to shore via the Mardi Gras Transportation System to Ship Shoal block 332B, where it will interconnect with the Cameron Highway Oil Pipeline System. Holstein gas will travel to Ship Shoal block 332A, where it will interconnect with Manta Ray Gathering System, and from there to the Nautilus Gas Transportation System into Louisiana.
Holstein is one of several BP deepwater developments scheduled for start-up in the Gulf over the next two years. The others are Mad Dog, Thunder Horse, and Atlantis.
BP operates Holstein with a 50% working interest with Shell 50%.
Independence Hub contracts
Independence Hub LLC, an affiliate of Enterprise Products Partners LP, and operated by Anadarko Petroleum, has awarded ABS a contract to class the Mississippi Canyon block 920 Independence Hub, a semisubmersible facility destined for 8,000 ft of water.
The platform will serve as a gas-gathering hub for nearby fields. Installation is slated for fall 2006, with peak gas production estimated at 850 MMcf/d.
The Mississippi Canyon block 920 Independence Hub will represent the third application of polyester/synthetic moorings in the Gulf of Mexico.
The new platform will be classed an A1 Floating Offshore Installation. Areas of emphasis include platform stability, structural integrity, and buoyancy after damage, while also considering the unit’s compliance and readiness in terms of fire-fighting capability and life-saving equipment.
Maritime Pusnes, part of the Aker Kværner group, has signed a contract with Atlantia Offshore Ltd. for delivery of mooring equipment to Independence Hub. The contract involves supply of a 12-point mooring system and ancillary equipment, such as a control system and two hydraulic power units. Atlantia’s semisubmersible is a wet-tree semi with deep draft hull and four rounded edge columns set on a ring pontoon capable of operating in water depths between 1,800-3,000 m. The deeper draft reduces vertical motion and bending stresses, enabling SCRs to be used for the floating production, import, and export risers.
Atlantia also contracted riser engineering consultants MCS to deliver the riser design for Independence Hub. MCS will deliver the design of 17 SCRs gathering and exporting from existing and future wells.
Undiscovered oil and gas
The Minerals Management Service has issued an interim update estimate for undiscovered technically recoverable resources underlying waters on the Outer Continental Shelf. Based on information obtained from new exploration activities in the Gulf of Mexico and in the Scotian basin offshore Canada, MMS estimates that 76 Bbbl of oil and 406.1 tcf of natural gas are technically recoverable from federal offshore areas. While the overall estimate for oil resources remained about the same as the 2000 assessment, the MMS estimate for natural gas increased about 12% compared to the 2000 number. About 91% of this increase in the natural gas estimate is due to new information obtained from recent exploration activities in the Gulf.
These estimates represent the potential hydrocarbons of an area that can be produced using current technology without any consideration to economic feasibility. Current technology includes drilling in water in excess of 3,000 m deep and to depths in excess of 9,600 m.
Shell to use Noble semi in GoM
Noble Corp. has signed a two-year contract with Shell Exploration & Production Co. for the use of theNoble Clyde Boudreaux deepwater semisubmersible in the US Gulf with an estimated start date in 3Q 2006.
TheNoble Clyde Boudreaux is a moored semisubmersible designed to drill to 35,000 ft in water depths to 10,000 ft with living accommodations for 200 persons. The unit’s operational design follows the Noble EVA-4000 format.
Noble estimates the drilling contract value at $142-$153 million, based on the current equipment configuration, depending on the definitive contract’s base operating dayrate.
Noble Clyde Boudreaux
TheNoble Clyde Boudreaux unit is in the Signal Shipyard in Pascagoula, Mississippi, where the company suspended its upgrade project in mid-2003 pending an operator commitment. Substantially the company completed all major steel work on the hull prior to suspension of the project and delivered or ordered long lead-time equipment items. Noble will start work on the upgrade project, with overall completion and commissioning estimated for 3Q 2006.
