David Paganie • Houston
Newfield, Anadarko outline plans to boost production
Newfield is poised to increase its Gulf of Mexico production by more than 60% this year. To reach this target, the company is allocating approximately 15% of its 2010 budget to activities in the deepwater GoM. It is participating in five deepwater developments and two to three exploration wells.
Contributing developments include Fastball (Viosca Knoll block 1003), which started production in late 2009. The field currently produces 41 MMcf/d of natural gas and 3,000 b/d of oil gross. Sargent (Garden Banks block 339) is being developed as a single-well tieback to existing infrastructure. First production is expected in April. Gladden (Mississippi Canyon block 754) is due online late this year; Dalmatian (DeSoto Canyon block 48) in 2011; and Pyrenees (Garden Banks block 293) in late 2011.
The company’s exploration portfolio includes the Saluki (Garden Banks block 425) prospect, which is scheduled to spud by the end of this month. Axe (DeSoto Canyon block 4) was scheduled to spud in March; and one to two additional prospects are planned, including Lyell (Green Canyon block 551).
Anadarko also outlined its 2010 capex program, with a view to boost production by a compounded annual growth rate of 7-9% through year-end 2014. The company also expects to bring online six new “mega projects” by 2016.
Anadarko’s 2010 capex is expected to be between $5.3 and $5.6 billion, of which 18% is allocated to the GoM. Plans for the Gulf include ongoing development at Caesar/Tonga. There, Anadarko and partners have drilled three of the four development wells, and conversion work continues on the topsides of the host platform,Constitution. First production is expected in 2Q 2011.
Drilling plans for the year call for seven to 10 wells, which include appraisal work on recent discoveries at Lucius, Vito, and Heidelberg.
LLOG hits pay in deepwater
An exploration well on the Mandy prospect in Mississippi Canyon block 199 has hit 120 ft (37 m) net TVD of oil pay, according to operator LLOG Exploration. The discovery well was drilled in 2,500 ft (762 m) of water to 7,500 ft (2,286 m) TVD. A follow-up well on Mandy had similar results, striking more than 100 ft (30 m) net TVD of oil pay, LLOG confirms. The field’s pre-drill estimate was about 10 MMboe.
Industry sources indicate that Mandy could be developed as a two-well subsea tieback to existing infrastructure, with first production in 2011.
LLOG operates Mandy with a 50% working interest. Partners are Mariner Energy (35%) and Apache (15%).
LLOG adds that it expects first production later this year from recent deepwater discoveries on Green Canyon block 141 and on GC 448.
Mandy partner Mariner Energy says it has participated in a shelf gas discovery on South Pass block 75. At presstime, the company was five-for-five in its 2010 drilling program. Its total drilling capex for this year is $660 million, 36% of which is allocated for seven to 10 deepwater wells, 24% is for eight to 10 wells on the shelf.
Leed Petroleum also claims drilling success on the shelf with Ship Shoal A-6 well. The discovery reached 13,341 ft (4,066 m) TD and encountered 65 ft (20 m) of true vertical pay in the primary sand, the company reports. The well was drilled from SS 202 Platform A to expedite production, which was expected in the first quarter.
Helix to divest oil and gas business
Helix Energy Solutions intends to divest its entire oil and gas business to become a pure contracting services company with a focus on deepwater well intervention and subsea construction. Helix did not specify a timetable for the divestment, but says it intends to move aggressively.
Helix first announced a divestiture plan in December 2008, which comprised non-core assets, including all or part of its oil and gas business. Since then, it has sold nearly all of its interest in Cal Dive International, 100% of its reservoir consulting business, and Helix RDS. Earlier, Helix started oil production from Danny, its first of two deepwater startups planned for this year. Danny is in Garden Banks block 506 in 2,700 ft (823) m of water and is tied back to a Helix-operated platform in East Cameron block 381. Meanwhile, gas production has increased from the Helix-operated Noonan field following repair of third-party pipeline Sea Robin.
The second deepwater field, Phoenix, is expected onstream in the middle of this year. The field is in Green Canyon block 237 and will produce through the company’s floating production unitHelix Production I. At presstime, the vessel was docked at Kiewit’s yard in Ingleside, Texas, for final commissioning and US Coast Guard inspections. It was expected to leave the yard for sea trials late in the first quarter.
Helix also continues the commissioning of its newest pipelay vesselCaesar, which recently arrived in the Gulf of Mexico. Its first assignment is an internal project to install 7 mi (11 km) of 12-in. (30-cm) pipeline. Work is to begin this month. Next, beginning mid-year, the vessel is contracted to install 46 mi (74 km) of 20-in. (51-cm) gas pipeline.
Statoil increases stake in St. Malo
Statoil has increased its working interest to 21.5% in the Chevron-operated St. Malo development in the US Gulf of Mexico by exercising its preferential rights on a proposed sale of Devon’s share in the project.
St. Malo is scheduled to be sanctioned later this year together with the Chevron-operated Jack development, according to Statoil. First production is expected in 2014.
Cobalt, Anadarko sign rig share agreement
Cobalt International has executed a Rig Assignment Agreement with Anadarko to use one of its contracted drilling rigs for one well, with an option for a second. Anadarko has agreed to make available the semisubmersible drilling rigOcean Monarch to Cobalt on or about May 1. Cobalt plans to use the rig to drill its North Platte exploration well in the Garden Banks area. The company has committed to use the rig for a minimum of 75 days at a day rate of $440,000.
