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MARKET WATCH: Oil price rises amid geopolitical tensions (Oil & Gas Journal, January 5, 2009, 11:25 AM)

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GULF OF MEXICO

Approximately 74% of the tracts receiving bids are in greater than 800 m (2,625 ft) of water, 17% are in ultra deepwater (more than 1,600 m [5,249 ft]). The deepest tract bid on is Alaminos Canyon block 783 in 2,977 m (9,767 ft) of water. The highest bid received on a tract was $61,110,000, submitted by Statoil Gulf of Mexico LLC for Alaminos Canyon block 380. ExxonMobil submitted the highest total of high bids – 130, followed by Hess, with 22. ExxonMobil also bid the highest sum of high bids – $127.3 million.

Click here to enlarge image
Shell’s Perdido spar is upended by Heerema’s heavy-lift vessel Balder and is being secured to the seafloor in 8,000 ft (2,438 m) of water. First production from Perdido is expected around the turn of the decade.

ATP secures rigs for 2008, 2009

ATP Oil & Gas has secured four drilling rigs for the balance of this year and 2009. The rigs are Seadrill Americas West Sirius, Hercules Rig 211, Ensco 72, and Diamond Ocean Victory.

West Sirius is on the Telemark Hub project. The rig is drilling and running casing on the upper sections of two wells at Mirage (Mississippi Canyon block 941) and, if time permits, take a third well to completion at Morgus (Mississippi Canyon block 942).

The bottom section of the remaining wells will be drilled and completed with the Nabors 202 platform rig, to be installed on the ATP MinDOC I, a floating drilling and production facility that will be moored at Mirage/Morgus early in 2009.

ATP also entered into a letter of intent for the semisubmersible Diamond Ocean Victory to drill and run casing in four wells at Telemark (Atwater Valley block 63) beginning in mid-2009. Similar to the operation at Mirage/Morgus, after the pre-drilling is complete, ATP will move on location its second MinDOC, the MinDOC II. The Nabors 202 platform rig will then be transferred to the MinDOC II where it will be used to finalize drilling and complete the four wells.

Ocean Victory is scheduled to sidetrack and complete one well and complete a second well on the Clipper field (Green Canyon block 299 and 300) during the first half of 2009.

The Diamond Ocean Confidence is scheduled to arrive in 2Q 2009. During a 150-day period, ATP expects to sidetrack/drill and complete two development wells, one at King’s Peak (Mississippi Canyon block 217) and one at Aconcagua (Mississippi Canyon block 305). After completing these two wells the vessel will depart for another job and return after approximately one year to sidetrack/drill and complete two additional wells, one each at Aconcagua and De Soto Canyon block 133.

After installation of a tripod platform, the Hercules jackup 211 was scheduled to be on location at West Cameron block 462 during August 2008. It was scheduled to complete two previously drilled wells and prepare them for production in the third quarter of this year.

“We now have secured rigs for our entire 2008 scheduled drilling program and for all but one well of our 2009 drilling program,” says George Morris, ATP’s COO.

Meanwhile, ATP’s bids for Atwater Valley block 19 and block 62 have been accepted for award by MMS. Block 19 is in approximately 4,199 ft (1,280 m) of water and block 62 is in approximately 4,173 ft (1,272 m) of water, and both are contiguous to the Telemark Hub. ATP acquired a 100% working interest in both blocks for a total cost of $463,980 and will serve as operator of each block.

Deepwater contracts

Chevron has awarded a pre-FEED study to INTEC Engineering for the Big Foot project in Walker Ridge block 29 in 5,000 ft (1,524 m) of water. The study is scheduled to be complete in the fourth quarter of this year.

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Volume 68  Issue 9   September 2008

Offshore Current Issue Table of Contents


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