OFFSHORE EUROPE

Jeremy Beckman • London

Ekofisk faces major overhaul

ConocoPhillips Norge is considering further expansion of its production facilities in the Greater Ekofisk Area of the North Sea. The company has invited bids for a two-year program of front-end engineering design. The scope includes new accommodation and wellhead platforms for the Ekofisk field, and two further platforms, pipelines, and cables for tie in to the existing platform on Eldfisk.

Recently, the company contracted FMC Kongsberg Subsea for equipment and services for a new subsea water injection development on Ekofisk to replace the existing 2/4W injection platform. The NOK 600 million ($118 million) contract includes future provisions for up to 50 wells.

In the Norwegian Barents Sea, Eni and its partners in Goliat have opted to power the field’s FPSO with electricity transmitted from the shore via a subsea cable, and a gas turbine on deck. The electrification solution, based on proven technology, is designed to cut CO2 emissions compared with a full-blown offshore power generation scheme.

Having two independent power sources also safeguards operations. Interruptions to production must be minimized due to the reservoir’s low temperature. The cable will feature spare capacity to accommodate future satellite tie-ins.

Discoveries cannot offset rig shortage

BG Group has made its second find as an operator on the Norwegian shelf, discovering gas and oil with a well on the Jordbaer prospect in North Sea license PL 3735, drilled by the semisubBredford Dolphin. The company also partnered Oilexco in the Moth discovery well in UK central block 23/21, which flowed gas at up to 24.4 MMcf/d and condensate at 6,526 boe/d during a test.

Despite these successes, rigs remain scarce in the North Sea, according to a recent presentation in London by Senergy Group. Most rigs entering the UK sector are heavy-duty jackups, said a spokesman for the well management specialist, commanding rates of typically $215,000/day. With gas prices strengthening in the southern Gas Basin, he anticipates more operators coming in to drill, leading to further capacity constraints.

Lundin Petroleum found oil and gas in July drilling the Torphins prospect in the central sector, but had to pay $425,000 to secure the semisubArctic II on a two-month contract, the spokesman said. The same rig also is contracted to Providence Resources for three months at $400,000/day, while Total recently took another rig for two years at $400,000/day, with escalation costs.

“There is very little sub-let capacity either coming into the market,” he added. “There are 20 conventional semis currently operating in Europe, and one contractor has a monopoly. If you control the market, the last thing you want is to risk over-supply, allowing rig rates to drop.”

Dutch newcomers eye developments

A series of transactions should boost project activity in the Dutch sector. Canada’s Cirrus Energy looks set to acquire Wintershall and Petro-Canada’s interests in the K10 Bravo oil field in the K10a license. The field lies beneath the K10-B production platform, which was installed in 28 m (91.8 ft) of water in 1980 to process and export gas from a Permian Rotliegend reservoir.

Some of its process facilities were removed when gas production ended in 2003, but the platform remains. Two of its still-intact development wells also encountered oil in overlying Triassic Bunter and Cretaceous Vlieland sandstones. Cirrus plans to further explore the oil potential with one or more wells, probably next year using its contracted jackupNoble Lynda Bossler.

Wintershall also has agreed to sell its operated interest in A15-2 and B17-5, two shallow gas Pleistocene sandstone discoveries, to Venture Production. A15-2 is adjacent to three fields under development in the northern Dutch North Sea. Venture plans to recover around 65 bcf of gas via four wells drilled from a satellite platform, connected to Chevron’s A12-A infrastructure through a 10-in. (25.4-cm) pipeline.

The B17-5 field, northwest of the Hanze oilfield, was discovered in 1997. Here Venture plans two wells and a platform, exporting the gas through the A6-F3 pipeline. There also may be scope for a joint development with Venture’s recently acquired F3-FA gas fields.

Finally, a Dutch-owned energy utility, Nuon, has paid ConocoPhillips €476.7 million ($759 million) for Burlington Resources Nederland. The package comprises interests in 35 offshore gas fields and associated processing facilities and pipelines, including the Westgas transport trunkline. Nuon’s goal is to expand its services across the gas/power chain.

Faroes, Ireland up license stakes

The Faroe Islands Fishery and Natural Resources Ministry has launched the country’s third offshore licensing round. Acreage offered lies to the east, south, and southwest of the islands covering an area of just over 38,400 sq km. Bids are due by Nov. 3, 2008, with awards likely towards year-end.

Offshore western Ireland, the country’s Department of Communications, Energy, and Natural Resources has opened 117,000 sq km (45,174 sq mi) in the Rockall basin under the 2009 Rockall Licensing Round. Applications must be submitted by next spring.

New projects may arrest Denmark’s decline

Production of oil from Denmark’s North Sea fields dropped 9% last year to 18.1 MMcm, according to the latest review from the Danish Energy Agency. Remaining reserves fell to 214 MMcm, although the country should stay self-sufficient in oil through at least 2017. Exploration expenditure totaled DKK 0.5 billion ($106.7 million) in 2007, with one new discovery, Rau-1. Danish sector operators also spent DKK 6.6 billion ($1.41 billion) on developing existing oil and gas fields.

Recently, the agency approved Maersk’s application for a Phase 4 development of the Halfdan field. This will involve drilling parallel oil producer and water injector wells in the northeast of the field, and a new process platform (HBD) for separation, water disposal, and compression. SembCorp Marine in Singapore has the construction contract, which includes bridges to the Halfdan HBA installation.