Global E&P

Jeremy Beckman • London

Petrobras has completed formation tests on its fourth well in the Tupi Assessment Area of the Santos basin, with positive results. Well 3-RJS-662A spudded last November in 2,115 m (6,939 ft) of water, 18 km (11.2 mi) northeast of the Tupi discovery well in block BM-S-11. Although the test equipment capacity limited flow to around 5,000 b/d of light oil, Petrobras believes the well could potentially deliver 30,000 b/d, confirming the high productivity noted from the earlier Tupi Sul well and an extended well test on the field.

The company recently started another extended test on the post-salt, shallow water Tiro and Sidon deposits discovered last year in Santos basin southern block BM-S-40. The two-year program is being conducted from the semisubmersibleAtlantic Zephyr, with production, at around 10,000 b/d, stored on the FSO Avare and offloaded to shuttle tankers. Petrobras estimates recoverable reserves from these fields at 150 MMboe, with upside from other prospects in the area. It is also drilling another structure to the east in block BM-S-12 to test pre-salt potential.

In the Sergipe-Alagoas basin, Petrobras is lining up eight exploration wells this year for what it claims will be its widest-ranging campaign to date off northeast Brazil. Part of the program will focus on shallow water structures close to producing fields such as Piranema, but the company also has targets in the virtually unexplored deepwater areas.

BP has picked up a range of licenses offshore and onshore Brazil, after paying Devon Energy $7 billion for a package that also comprised interests in the US Gulf of Mexico and Azerbaijan. The transaction brought BP stakes in eight shallow/deepwater blocks in the Campos and Camamu-Almada basins, including the pre-salt Wahoo and Itaipu finds.

Tullow Oil is hoping to prove analogies off the northern coast of South America with the productive deepwater basins offshore Ghana. The company and its partners Shell and Total are reviewing data from a recently-acquired six-month 3D survey over the Guyane Maritime block off French Guiana. Their focus is on high-risk, potentially high-impact stratigraphic traps formed in Upper Cretaceous turbidite fans in the southeast of the block. A deepwater rig could be brought in to drill the first of these targets towards year-end. Tullow may also look to drill Upper Cretaceous/Tertiary stratigraphic trap prospects in its Georgetown block offshore neighboring Guyana.

Transocean's new drillshipDeepwaterChampion, under construction in Ulsan, Korea, will tackle ExxonMobil's initial deepwater exploration campaign in the Turkish Black Sea next year. The double-hulled, dual-derrick vessel will be equipped for simultaneous operations, and will be able to maintain station in open water in waves of up to 9 m (30 ft) and winds up to 60 knots (70 mph). ExxonMobil will jointly explore prospects in three licenses with Turkish national oil company TPAO.

The BP-led ACG partnership proceeds with development of the Chirag oil field in the Azeri sector of the Caspian Sea, according to partner Statoil. The $6-billion project involves adding a new production, drilling, and living quarters platform in the Chirag-Deep Water Gunashli (DWG) area, in 170 m (558 ft) of water. The facility, capable of processing 185,000 b/d of oil, will be the sixth production installation on the Azeri-Chirag-Gunashli fields. Produced oil and gas will be processed at the onshore Sangachal terminal, with start-up scheduled for 2013.

State oil company SOCAR, one of the ACG partners, has partnered with Keppel Offshore & Marine to develop a new 52-ha (128-acre) shipbuilding, repair, and conversion yard in Baku. The SOCAR-Keppel Shipyard will be able to handle a range of vessels, including offshore support ships.

Anadarko has encountered further gas pay while delving deeper into its Windjammer discovery offshore Mozambique. The newly intersected objective, drilled by theBelfordDolphin, lifted total net pay to 555 ft (169 m). Windjammer is 30 mi (48 km) east of the coastline in the Rovuma basin in 4,800 ft (1,463 m) of water. Anadarko plans to move the drillship 50 mi (80.5 km) southeast to drill its next prospect, named Collier.

Lukoil, Vanco, and GNPC report a significant accumulation in the Dzata structure in Ghana's Cape Three Points deepwater block. Dzata-1, drilled to a subsurface depth of around 4,500 m (14,763 ft), tapped a 94-m (308-ft) thick hydrocarbon column, with gas and light oil in the primary reservoir sandstone. The partners plan a detailed appraisal program.

SBM Offshore has contracted Keppel Shipyard to convert the VLCCM/T Bauhinia into an FPSO for use off Equatorial Guinea. The floater will be assigned to Noble Energy's Aseng oil field development in block I. The scope of work, due to be completed in the second half of 2011, includes refurbishment works, accommodation block extensions, installation and integration of topsides modules, and construction/installation of an internal turret and a flare tower.

Perenco has picked up a new offshore exploration permit in Cameroon's Douala/Kribi-Camp basin. Under the initial three-year PSC for the Elombo block, Perenco will acquire and interpret 300 sq km (116 sq mi) of 3D seismic, and drill at least one well. The program could be extended by two further terms, and two more exploratory wells, incurring a total outlay of $50 million.

Saudi Aramco has contracted J. Ray McDermott to upgrade crude-gathering and power supply facilities in the offshore Safaniya field. The work will involve use of J. Ray's new pipelay bargeLB328 and other vessels from the company's fleet. The program should be completed in 2013.

UAE company Dana Gas has finished detailed engineering for a platform for the Zora gas field offshore Sharjah. Conceptual engineering is also complete for the onshore gas processing plant, which will receive Zora's well stream via a new 25-km (15-mi) subsea pipeline.

Iran has proposed a joint development of the Arash oilfield in the Persian Gulf with Kuwait and Saudi Arabia. NIOC managing director Mahmoud Zirakchianzade says the cooperation could take the form of joint investment, production, and management of the field which extends across the countries' offshore median lines. Zirakchianzade also stated recently that a European company was looking to participate in development of the giant Lavan gas field in the Iranian sector.

ONGC has ordered four new wellhead platforms for Phase II of its Mumbai High North (MHN) redevelopment project. Mumbai High has been in production since 1974, and ONGC is implementing various schemes to improve reservoir recovery. Larsen & Toubro will perform engineering out of Bangalore, Chenna, and Faridabad, with its yards in Hazira and Sohar, Oman building the 23,000 metric tons (25,353 tons) of topsides and jackets. Each platform will feature 12 well slots, with remote operation from the NQ/MHN process complex.

Vietnam's government has approved construction of the country's largest gas trunkline. The Block B Gas Pipeline Project will transport 18.3 MMcm/d (646 MMcf/d) from blocks 52/97 and B48/95 off southwest Vietnam to power and fertilizer plants and other consumers in the country's southwest region. Around 246 km (153 mi) of the 398-km (247-mi) trunkline will be subsea. Signatories to the joint venture were PetroVietnam, Chevron, Mitsui, and PTTEP.

Keppel Shipyard in Singapore has won a contract from Bumi Armada Berhad to convert a Suezmax tanker into an FPSO for deployment on the Te Giac Trang (TGT) development in Vietnam's Cuu Long basin. The facility, due to be delivered by mid-2011, will be able to produce up to 45,000 b/d of oil and to store 1 MMbbl. The Hoang Long joint operating company, comprising PetroVietnam, SOCO, PTTEP, and OPECO, is responsible for the development.

In the Hanoi Trough off northern Vietnam, London-based Salamander Energy is set to acquire operatorship of block 101-104, currently co-owned by Santos and Singapore Petroleum Vietnam Song Hong. Over 500 sq km (193 sq mi) of 3D seismic has been acquired over the license, and a first well is due to be drilled next year on the Cat Ba oil prospect.

London-based Primeline Energy Holdings signed agreements with CNOOC concerning development of the Lishui 36-1 gas field in East China Sea block 25/34. The parties sanctioned the overall development program in 2009, and have since compiled related documents for submission to China's government for approval of the project. One purpose of the new agreements is to transfer operatorship of development and production to a new subsidiary of CNOOC, which can procure services and equipment via its long-term cooperations with various contractors.

Petrofac and partners PetroVietnam and Kufpec have commissioned a front-end engineering design study for a second-phase development of block PM304 offshore Malaysia. The Cendor oil field within the license averaged production of 14,400 b/d last year. The partners have drilled numerous successful near-field appraisal wells, and are aiming to submit a development proposal in the second half of 2010.

Subsea 7 has completed installation of subsea facilities for Santos' VIC/P44 Stage 2 development project in the Otway basin offshore Victoria. The company's rigid reel lay vesselSeven Navica performed the work, supported by the DSV Rockwater2. The scope included installation of a 21.7-km (13.5-mi), 12-in. (30.5-cm) pipeline and four rigid spool pieces connecting subsea production trees in 56-72 m (184-236 ft) of water at the Henry-2 and Netherby locations; and a 22-km (13.7-mi) electro-hydraulic umbilical from Casino-4 to Pecten East. Subsea 7 was also involved in the original Casino development in 2005.