GLOBAL E&P

Feb. 1, 2010
Cairn Energy expects to drill its first well offshore western Greenland next summer, a year earlier than scheduled. The Edinburgh-based company has contracted the DP drillship Stena Forth and the semisub Stena Don to work on the Disko West license area during June-October.

Jeremy Beckman • London

North America

Cairn Energy expects to drill its first well offshore western Greenland next summer, a year earlier than scheduled. The Edinburgh-based company has contracted the DP drillshipStena Forth and the semisub Stena Don to work on the Disko West license area during June-October.

The Canada-Nova Scotia Offshore Petroleum Board is inviting bids by June 24 for two shallow-water leases in the Sable sub-basin. The winner(s) will be awarded an exploration license, subject to federal and provincial ministerial approvals.

South America

Brazil remains the focus of drilling action, with the country’s largest independent OGX setting the pace in the southern sector of the Campos basin.

In block BM-C-41, OGX found oil in carbonate reservoirs with well 1-OGX-3-RJS in the Albian, Aptian, and Barremian sections. After reaching an estimated subsurface depth of 4,000 m (13,123 ft), OGX planned a formation test to establish the parameters for a future production scheme. Water depth is around 130 m (426 ft).

Earlier, the company had tested another discovery in the same block, 1-OGX-2A-RJS. That well encountered hydrocarbons in five different reservoirs, with lighter oil thought to be present at deeper levels. Preliminary analysis suggests recoverable volumes in the range 1-2 Bbbl.

Petrobras plans to switch the leased FPSOEspadarte to the Baleia Azul field. The vessel, operated by SBM Offshore, will be disconnected from the Espadarte field in April 2011, and following modifications at a shipyard will start a new 18-year period of service on Baleia Azul in July 2012. SBM estimates the fixed lease rate payable for the contract at $1.7 billion.

SBM also has started a FEED study for Petrobras for a floating LNG (FLNG) production facility, in partnership with Japan’s Chiyoda Corp. This is one of the concepts under review for processing associated gas produced from the pre-salt discoveries in the Santos basin. SBM’s study is based on an FLNG vessel in 2,220 m (7,283 ft) water depth, producing around 2.7 million metric tons/yr (2.9 million tons/yr) of LNG and 1 million metric tons/yr (1.1 million tons/yr) of LPG. A rival consortium of Technip, Modec, and JGC Corp also is working on an FLNG concept for the same project, under a design competition.

Ecopetrol is set to farm into two deepwater blocks operated by Reliance Exploration and Production off Colombia. Assuming government approval, Ecopetrol (the country’s national oil company) will take 20% stakes in Borojo North block 42 and Borojo South block 43. Collectively, these concessions extend across 8,000 sq km (3,089 sq mi), in water depths from 60-1,500 m (197-4,921 ft). Reliance has acquired and processed around 3,000 line km (1,864 mi) of 2D seismic data, and recently started multi-beam bathymetry studies over both blocks.

The Guyane Maritime permit.

Total has taken a 25% stake in the Guyane Maritime Permit, 150 km (93 mi) off the coast of French Guiana. The concession, operated by Tullow subsidiary Hardman Petroleum France, covers 32,000 sq km (12,355 sq mi), in water depths of 2,000-3,000 m (6,561-9,842 ft). The existing partners, which include Shell, have recently acquired 3D seismic data.

West Africa

Total has made a discovery in its OPL 223 deepwater license off southeastern Nigeria. Owowo South B-1 was drilled in 670 m (2,198 ft) of water, 20 km (12.4 mi) from the Usan field. It encountered several oil-bearing reservoirs.

In the Niger Delta Deep offshore region, 75 km (46.6 mi) from the mainland, Allied Energy and Nigerian Agip Exploration have brought Oyo oilfield onstream. The production scheme is based around an FPSO capable of processing 40,000 b/d of liquids, with storage for up to 1 MMbbl of crude. The field currently produces 25,000 b/d of oil via two subsea wells. A third well will re-inject associated gas into the reservoir to lift oil recovery and prevent flaring.

Repsol has signed a letter of intent giving it exclusive negotiating rights to take a 37% operated share in Hyperdynamics’ oil and gas concession offshore Guinea. Under the terms of the agreement, the two companies may jointly evaluate relevant geological and geophysical data. Another European company, Dana Petroleum, recently acquired a 23% interest in the same permit, and has agreed to part-finance an ongoing 2D seismic program over the acreage.

Sonangol has acquired 20% of Marathon Oil’s share of prolific ultra deepwater block 32 off Angola, operated by Total. In nearby block 17, Total recently contracted Aberdeen-based DOF Subsea to perform geotechnical survey services for CLOV, the next multi-field development lined up for the block.

Black Sea

Melrose Resources has budgeted around $51 million for development work this year, most of which will be directed at the Kaliakra and Kavarna gas fields in the Bulgarian sector. Both should come onstream during the second half of 2010. Provisions of over $47 million have also been set aside to complete the Galata field gas storage conversion project and the potential Ana and Doina field developments in the Romanian sector. Additionally, Melrose expects to use its contracted jackup for exploration drilling in both sectors.

Mediterranean Sea

Petroceltic International is set to lift its interest from 40% to 70% in permit B.R268.RG off eastern Italy. Under the agreement with partner Vega Oil, Petroceltic also will operate the concession, which contains the Elsa oil and gas discovery. In exchange, Petroceltic will pay the entire drilling and completion costs of a proposed appraisal well on Elsa.

Hess has successfully tested a discovery well offshore Libya, originally drilled in 2008 in 2,807 ft (855 m) water depth. Well A1-54/01 on the Arous Al-Bahar prospect had encountered hydrocarbons over several intervals. Recently, Hess used the drillshipStena Forth to re-enter and perforate the well over a 300-ft (91.4-m) carbonate interval and perform a drillstem test. This generated flow of 27 MMcf/d of gas and 533 b/d of condensate on a 52/64-in. choke. The drillship was due to return to complete an appraisal well drilled 7 km (4.3 mi) northwest of the discovery.

Burullus Gas Co., the joint venture between EGPC, BG Group and Petronas, has contracted Technip for work on the West Delta Deep Marine (WDDM) Phase VII development offshore Egypt. Under the $93.5-million lump-sum contract, Technip will install a tie-in structure this fall between a new gas export pipeline and two existing pipelines, using theWellservicer vessel. The scheme has been designed to maintain plateau production from the WDDM concession, 95 km (59 mi) off northern Egypt.

Noble Energy and its partners in the Matan license offshore Israel have signed letters of intent to sell gas from the 6.3 tcf deepwater Tamar discovery. Under one of the proposed arrangements, Dalia Power Energies would receive supplies over a 17-year period to fuel a new 870 MW power plant on the Israeli mainland, scheduled to start up in 2013. Volumes could reach 700 bcf, depending on the scale of the operation.

Another power utility, Israel Electric, has contracted 85 bcf/yr over a 15-year term from the start of operations at Tamar. Under a separate agreement, further supplies could be re-injected into the near-shore Mari-B reservoir for storage purposes. Noble estimates revenues from gas sales to date at $10.5 billion, and is pursuing contracts with further potential buyers.

Russia

Bardex has developed a skidding system for the rig for the Prirazlomnoye platform.

Bardex has completed factory acceptance tests for a rig skidding system for the ice-resistant Prirazlomnaya platform in the Pechora Sea, operated by LLC Gazprom Neft Shelf. The skidding system comprises two 550-metric ton (606-ton) gripper jacks for skidding the lower support frame; two 280-metric ton (308-ton) gripper jacks for skidding the upper derrick base; and a 60 kW hydraulic power unit with integrate skidding controls. The equipment is designed to work in temperatures as low as -40º C (-40º F).

Caspian Sea

Dragon Oil, recently the subject of a bid by Dubai-based ENOC, has installed the new Dzheitune (Lam) B platform in the Turkmen sector. The jackupAstra was mobilized recently to the platform to start development drilling. Dragon currently has three rigs in service on its fields in the Cheleken Contract Area, and recently re-engaged a platform-based rig for development work on its Dzheitune (Lam) 22 platform. 

Iran

India’s ONGC and Ashok Leyland Projects Services (ALPS) are set to take a 40% combined interest in the South Pars Phase 12 development project. This follows the signing in December of broad enabling agreements with the Iranian authorities concerning development of gas fields and liquefaction facilities in Iran. In exchange, ONGC/OVL and ALPS reportedly have secured a minimum of 6 million metric tons/yr (6.6 million tons/yr) of Iranian LNG on a long-term basis.

India

Reliance Industries has a third gas discovery in block KG-DWN-2003/1 in the offshore Krishna basin. Well KGV-D3-R1 encountered three reservoir zones in the Miocene interval with gross thicknesses totaling 43 m (141 ft). The company is assessing the find’s commerciality.

Asia-Pacific

Husky Energy has made its third “significant” gas find in block 29/26 in the South China Sea. TheWest Hercules drilled the LH 34-2-1 well 23 km (14.3 mi) northeast of the Liwan 3-1 gas field in a water depth of 1,145 m (3,756 ft). The well tested gas with a high liquids content at a restricted rate – Husky believes it could deliver over 140 MMcf/d under a development.

In the Qiong Dong Nan basin of the western South China Sea, CNOOC has signed production-sharing contracts with BG International for block 63/16, covering an area of 2,623 sq km (1,013 sq mi) in water depths of 90-165 m (295-541 ft). BG will be responsible for 3D seismic acquisition and exploration drilling.

ExxonMobil has discovered hydrocarbons in the South Sulu Sea. The West Aquarius was due to deepen the well to 5,000 m (16,400 ft) TD, setting a new depth record for a well off the Philippines. ExxonMobil also was planning to drill a second well in the area.

In Service Contract 54 block A, the joint venture partners have approval from the Philippine government for their plan to develop the Tindao oilfield in 100 m (328 ft) water depth. Tindalo was discovered in 2008 via a well – since suspended – which flowed oil from a Miocene carbonate reservoir. For the development, a leased jackup will re-enter and convert the well for production, with an electric submersible pump to sustain production rates throughout the field’s life. Oil will be processed via special facilities installed on the rig and sent to a nearby FSO for storage via a floating hose.

Indonesia’s government has awarded Talisman Energy the Andaman III license block in the North Sumatra basin. Talisman bid a three-year work program including a 2,500-sq km (965-sq mi) 3D data acquisition program and drilling of one exploration well. The company may seek a farm-in partner for the well. Water depths in the block reach up to 1,300 m (4,265 ft).

Australasia

The Bassgas Joint Venture partners have approved the $345 million Yolla Mid-Life Enhancement scheme offshore Victoria. The normally unmanned Yolla-A platform will be converted to a normally manned facility through installation of living quarters and safety systems. Two new development wells will be drilled, with pumping and compression equipment also added to the platform to extend the productive life of the Yolla gas field.

Chevron has contracted Technip for FEED work for a processing platform for the Wheatstone project on the Northwest Shelf. The proposed development, in water depths ranging from 70-200 m (229-656 ft), will involve subsea gas gathering systems transporting produced gas/condensate to the platform for dehydration, de-watering, and compression. The wellstream then will be transported to a gas plant onshore at Ashburton North via a 200-km (124-mi) export pipeline.

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