GLOBAL E&P

Akpo field location offshore Nigeria.

The development is based on 44 wells, comprising 22 producers, 20 water injectors and two gas injectors, of which 22 have so far been drilled. Production is transported to a 100,000-ton (90,718-metric ton) dry weight FPSO through high pressure/high temperature flowlines connected to steel catenary risers. The floater can process 185,000 b/d of oil and store up to 2 MMbbl of stabilized liquid hydrocarbons, which are exported through a single-point mooring terminal stationed 2 km (1.25 mi) away. Around one-third of the high pressure gas (185 MMcf/d) is re-injected.

Tullow Oil has discovered what it calls a “significant” light hydrocarbons accumulation in the Twenoboa structure in the Deepwater Tano license off Ghana. The well, drilled by the semisubEirik Raude in a water depth of 1,148 m (3,766 ft), was designed to penetrate multiple targets, including the edge of an undrilled Turonian fan system. The site is 25 km (15.5 mi) west of the Jubilee field.

Further drilling will test core areas within what Tullow says is potentially a giant stratigraphic trap. Tullow estimates the upside area at around 200 sq km (72 sq mi), including two de-risked prospective parts, Owo and Ntomme.

Chevron Overseas Congo has contracted Granherne for front-end engineering and design for its Lianzi subsea development. Lianzi is in water depths of 2,700-3,500 ft (820-1,070 m) in a unitized zone taking in part of block 14 off Angola and Haute Mer offshore Congo. The subsea system will comprise three production wells, three water injectors, and associated flowlines, and will require additional topsides equipment on the host Benguela Belize platform.

First Australian Resources (FAR) has executed an agreement with Shell Exploration Co. to conduct an exploration program in the Sangomar offshore, Rufisque offshore, and Sangomar deep offshore blocks in Senegal.

Under the agreement, Shell will fund a CSEM data acquisition and geophysical evaluation program over part of the license area where a number of drilling prospects have already been identified by FAR and its partner Petrosen.

The CSEM acquisition phase is expected to begin in the second quarter, and will be followed by processing, interpretation, and integration of results. The objective of the program is designed to enable Shell to determine whether or not to exercise an option to acquire a 70% interest in the block and enter the second renewal period that includes a well commitment, the company says.

Europe

DONG E&P Norge has submitted a DKK4.2 billion ($713 million) development plan for the Oselvar oil and gas field in the Norwegian North Sea. This calls for three subsea horizontal production wells connected via a pipeline to BP’s Ula field, 23 km (14.3 mi) distant.

From the Ula platform, the processed oil would be transported through the Ekofisk/Norpipe system to the UK. Some of the produced gas would be injected to boost oil recovery on Ula, while the remainder could be exported to Germany. Assuming approval from the Norwegian government, DONG aims to start production from Oselvar late in 2011.

Cirrus Energy Nederland has completed testing of its L11-13 appraisal well in the Dutch North Sea. This was drilled directionally from the L11b-A production platform in the L8-D field, thought to extend across three blocks. The well tested dry gas at a maximum stabilized flow rate of 30.6 MMcf/d on a 48/64-in. choke at a flowing wellhead pressure of 2,900 psi (20 MPa).

The results are being integrated with existing data on L8-D, which was discovered in 2004, flowing gas from the same Permian-age Upper Rotliegend Group sandstone reservoirs. Cirrus hopes to bring L11-13 into production as soon as possible.

Caspian Sea

Total has signed an exploration, development, and production-sharing agreement with Socar for a license on the Absheron block in the Azeri sector. The location is 100 km (62 mi) offshore Baku, in a water depth of around 500 m (1,640 ft). Total will operate in the exploration phase, forming a joint operating company with Socar for any development.

The French company has been present in Azerbaijan since 1996, with average production of 18,000 boe/d in 2008, mainly from the BP-operated Shah Deniz field. It also has a stake in the SCPC and BTC pipelines exporting gas and condensate from Shah Deniz to neighboring countries.

Subsoil licensing agency Rosnedra has granted Lundin Petroleum a five-year extension to its Lagansky exploration license in the Russian sector of the Caspian. The acreage includes last year’s Morskaya discovery, which has estimated recoverable reserves of 110-450 MMbbl of oil.

Later this year, Lundin plans to drill the Petrovskaya prospect, a four-way dip closure on trend and updip of Morskaya, which has unrisked potential oil resources of 300 MMbbl.

India

In the Cauvery basin, CUEL has completed the load-out of the jacket and topside for Hindustan Oil Exploration Co’s PY-1 development. The integrated platform weighs 3,320 metric tons (3,660 tons). CUEL’s scope ranged from fabrication and materials procurement to sea-fastening.

Load-out of the PY-1 jacket, contracted by HOEC for its Cauvery basin development.

ONGC’s board has approved capital spending of $131.6 million as its share of the Hydra development under the Panna-Mukta joint venture. The production facilities will comprise two wellhead platforms and associated pipelines, and nine development wells. These should lift recovery of oil and gas from the PK and SWP areas of the Panna field by 14.5 MMbbl and 21.4 bcf respectively over a period of 11 years. ONGC’s partners in Panna-Mukta are RIL and British Gas.

Mediterranean Sea

PGS Overseas is set to farm into the Panetelleria and Kerkouane permits operated by AuDAX Resources in the Sicily Channel. Assuming approval from AuDAX’s partner, Perth-based Kairiki Energy, PGS would earn 15% in both concessions through financing 30% of future exploration work.

The G.R15.PU (Panetelleria) permit is in Italian waters, while the adjacent Kerkouane permit is offshore Tunisia. Previous exploration has identified numerous prospects, headed by a large structure extending across the two countries’ maritime borders.

Middle East

RAK has started production from two wells drilled from a recently installed platform on the West Bukha field offshore Oman. Partner Heritage Oil reported initial flow rates of 10,000 b/d of 42° API oil and 30 MMcf/d of gas from the Mishriff-Maudud and Thamama reservoirs.

The six-slot, unmanned platform is in 90 m (295 ft) of water around 25 km (16 mi) from the Musandam Peninsula. The wellstream heads through a 12-in. (30-cm) multiphase flowline to the nearby Bukha production platform. Commingled output is transported from Bukha through another multiphase line to the Khor Khwair plant in Ras Al Khaimah for processing.

South Oil Co. has contracted Foster Wheeler Energy for basic engineering of new offshore oil export facilities for Iraq’s Al-Basra terminal. These will include single-point mooring tanker-loading buoys, pumping and metering equipment, and pipelines.

Asia-Pacific

Husky Energy has proven further gas from its Liwan discovery in the South China Sea. The Liwan 3-1-2 well, drilled by theWest Hercules, encountered 36 m (118 ft) of net pay with a restricted flow rate of 53 MMcf/d. This could rise to 150 MMcf/d in a production scheme, the company says.

Front-end engineering design for a development should start once results from a second appraisal well come through. The rig then will move on to drill other exploration targets in the area.

Nido Petroleum says its recent Tindalo and Yakal discoveries in the SC 54 license off the Philippines contain estimated oil resources of 24.5 MMbbl and 10.7 MMbbl, respectively. Analysis of data from the two discovery wells, both of which intersected the target Nido limestone formation, indicates oil columns of 124-144 m (407-472 ft) for Tindalo-1 and 78-93 m (256-305 ft) for Yakal-1.

SapuraAcergy will handle subsea installations for Sabah Shell Petroleum’s deepwater Gumusut-Kakap development. The $825 million contract covers engineering, procurement, transport, and installation of an oil pipeline and catenary riser; flowlines, jumpers, steel catenary risers and other associated structures; and mooring lines for the field’s semisubmersible production platform. Installations should start in 2010 in 1,200 m (3,937 ft) water depth, using the construction vessel Sapura 3000.

Russia

Shtokman Development AG has awarded a $32 million contract to Aker Solutions, SBM Offshore, and Technip France for the Shtokman gas-condensate Phase 1 development. The consortium will provide concept definition for a floating production unit, and front-end engineering design for the associated hull, turret, topsides, and mooring system. The trio also will tender collectively for the full engineering, procurement supply, construction, and commissioning contract in 2010.

Australasia

Chevron says the Iago and Wheatstone fields off northwest Australia hold enough gas to support a two-train LNG and domestic gas supply facility, based at Ashburton North near Onslow. It expects to launch a front-end engineering and design program later this year.

Wheatstone straddles the WA-245-P and WA-17-R permits, 125 mi (200 km) north of Onslow in water depths of 650 ft (200 m). Iago, discovered in 2000, lies in WA-17-R and WA-16-R, where Shell Development (Australia) is Chevron’s partner. The company plans further exploration and appraisal drilling on its acreage in the region this year, with two contracted rigs.

First oil has flowed to the Maari wellhead platform off New Zealand’s Taranaki coast. Over the field’s 10-15 year life, it should produced 50 MMbbl of oil, peaking at 30,000 b/d in 2010. The development, operated by OMV, is based on five producer wells and three water injectors, with oil sent 1.5 km (0.9 mi) to the FPSORaroa for processing. OMV’s partners in the project are Todd Energy, Horizon Oil, and Cue Taranaki.