Europe
Kerr-McGee plans to develop the Leadon field as well as the Birse and Glassel oil fields. The fields are located in the UK sector of the North Sea in blocks 9/14a and 9/14b in which the company has a 100% stake. The satellite fields are about five miles from the Leadon field and will be developed via subsea horizontal wells tied back to an FPSO. Initial production is expected in early 2002 with peak production of approximately 50,000 b/d by yearend 2002.
Norsk Hydro permanently plugged and abandoned its Barents Sea exploratory well 7216/11-1 after it came up dry. It was the first well to be drilled in the Barents Sea since 1994. There have been 54 Barents Sea wells drilled without commercial success.
Statoil's Åsgard field came on stream as scheduled in early October. Gas flowed from wells on one template in the Midgard field to the Åsgard B gas production platform. First exports were pumped into the Åsgard Transport System pipeline, which runs 719 km to the Karso treatment plant. About 7 MMcm/d of gas will be exported in the start up phase but exports were expected to increase to 18 MMcm/d by mid-October. Planned production from the Smorbukk field is due on stream from two wells in November.
Bow Valley contracted Brovig Production Services for the development and production of the Chestnut field in Block 22/2a in the UK North Sea. The two-phase project will comprise an extended well test on a recently drilled horizontal producer with subsea completion. First oil is expected at initial rates of around 15,000 b/d of oil by the end of the first quarter 2001. Depending upon sufficient reserves, the second phase would include a water injection well and production facilities for an estimated field life of around five years.
Norsk Agip discovered oil with its 7122/7-1 well in the Barents Sea off Norway in Jurassic sandstone. The Norwegian Petroleum Directorate (NPD) estimates recoverable res-erves on the order of 150-250 million bbl. A limited production test was carried out and the well was extensively logged and cored. The well was drilled by the semisubmersible Transocean Arctic.
Statoil will develop the field via subsea completion tied back to an FPSO. The FPSO Petrojarl I has been leased from PGS for up to three years. Substantial modification and upgrading of the process facilities and hull will be performed prior to beginning work on the field, which is set to come on stream in summer 2001. Reserves are set at 40 million bbl, with peak production of 40,000 b/d. The semisubmersible Byford Dolphin will begin drilling three production wells and two injection wells.
Middle East
BG International and Consolidated Cont-ractors made what they believe to be the first natural gas discovery offshore Gaza with the Gaza Marine-1 well. The well was drilled in 603 meters of water about 36 km west of Gaza City. A 37-meter interval tested and flowed at 37 MMcf/d of gas. The companies acquired the concession in November 1999 and committed to drill two wells. The second well is scheduled to be spud by yearend. The partners acquired 1,000 sq km of 3D seismic earlier this year.
Isramco said results of a reserve study of the Nir-1 well in the Nir field indicated 274 Bcf of gas. Isramco plans a mapping of gas objectives based on a 3D seismic survey that was performed in the southern portion of the license area as well as shooting new 3D seismic covering the Yam structure in the northern and central portions of the license and mapping of two deep oil prospects.
Central Asia
Reliance Industries Ltd. and Nikko Resources plan to jointly invest more than $750 million for exploration in 12 blocks off India. The partners successfully bid for nine shallow water blocks and three deepwater blocks in the country's second round of bidding under the New Exploration and Licensing Policy (NELP). The first investment phase will be $172.8 million over three years while the second phase another $247 million will be spent. The third investment phase will see an additional $336 million invested. The Krishna-Godavari deepwater block will receive the largest share of investment with $145 million. The largest shallow water investment will be targeted at the Mumbai block.
Americas
Statoil's 6354/4-1 exploratory hole in the Fylla area off western Greenland, the first well on one of the country's recently awarded licenses, was a dry hole. Following logging the well was plugged and abandoned. The chance of making a find was less than 5%, according to a company spokesman, but the information provided by the well will be studied over the winter. The company will meet with Greenland officials next spring to determine future drilling, although it is unlikely that additional drilling will be done in the area. Statoil will also talk with Phillips regarding its Sisimoid license to the north where seismic data has been acquired. The two licenses are held by the same partners.
Terra Nova operator PetroCanada said the estimated pre-production capital cost estimate rose by approximately $300 million to $2.5 billion for the Canadian east coast development project. Oil production is now expected to start late second quarter 2001. The revised schedule and increased cost is the result of recent reviews of the project and address delays and additional work requirements for offshore drilling and marine installation programs and the hook up and commissioning of the FPSO at Bull Arm, Newfoundland. Terra Nova contains 370 million bbl of oil with an expected average yearly production of 49,000 b/d in 2001 and reaching peak production of 129,000 b/d in 2002, according to PetroCanada, which says the project is an excellent investment in spite of the increase costs.
Noble Affiliates has hit gas from its first well off Ecuador. The well was drilled from a platform installed in approximately 130 ft of water in the Gulf of Guayaquil. It was drilled to about 10,900 ft and encountered approximately 341 ft of gas pay as determined from electric logs. Three additional wells are planned from the platform in connection with development of the field.
Pemex's expansion project aimed at increasing production of the Cantarell field is paying off. The project is 80% complete and the field is currently producing 1.58 million b/d, 750,000 b/d more than previous production rates. The expansion project includes injecting nitrogen into the reservoirs to increase pressure. The field accounts for nearly one-half of the country's total oil output of 3.4 million b/d. Daily output at the field occasionally reaches 1.66 million b/d and has the capacity for 1.73 million b/d.
BP discovered a new gas field offshore Trinidad and Tobago. The initial well on the Red Mango field, 35 miles east of Galeota Point, indicated gas volumes of about 3 Tcf and 90 million bbl of condensate, translating to about 630 million boe. BP plans appraisal work in the field shortly. This is the largest discovery in Trinidad and Tobago and BP's second major gas find in the area this year.
