OFFSHORE EUROPE

The report’s authors warn that the projected workload could exceed capacities of the existing heavy-lift vessel fleet and decommissioning sites onshore Europe. Douglas-Westwood analyst Oliver Sanderson said: “Delivery of new vessels is urgent and four more onshore yards may be needed in order to meet increased onshore demand.”

The UKCS Offshore Decommissioning Market Report 2010-40 examines two scenarios: one involves use of current vessels for removal programs, the other assuming an investment in a new generation of ‘super heavy-lift’ vessels capable of extracting loads of 15,000 metric tons (16,534 tons) in one lift. Either way, according to Sanderson, the oil services sector can look forward to “a major business opportunity…especially vessel operators and well service companies.”

Strong response to APA 2010

Norway’s government has received bids from 41 companies for its latest Awards in Pre-defined Areas (APA) licensing round. Although that number is three fewer than for APA 2009, the volume of applications was 30% higher.

Over 300 blocks were offered, spanning total acreage of 81,500 sq km (31,467 sq mi) across all opened parts of the Norwegian sector. The Ministry of Petroleum expanded available acreage in the Barents Sea and Norwegian Sea by more than 22,600 sq km (8,726 sq mi).

According to the Norwegian Petroleum Directorate (NPD), the APA scheme is intended to speed up exploration of mature areas, and access for new players to prospective acreage. Another aim is to ensure that resources discovered in these permits are developed before existing infrastructure has to be abandoned.

NPD’s Director Bente Nyland, speaking at a recent improved oil recovery seminar, warned that Norwegian oil production could fall faster than previously thought without appropriate action. There were currently too few projects on the table to increase output, she said, in line with government expectations.

In 2005, she pointed out, NPD assumed that 75% of Norway’s production growth would have to come from existing fields. In fact, only 56% of the projected growth over the past five years has come from these fields, with the rest accounted for by discoveries newly approved for development. And most of the growth has resulted from re-evaluation of reserves, rather than implementation of new production techniques.

Nyland said the industry should look at resources from an area perspective, rather than considering each field separately, and that oil companies on the shelf should collaborate to test new technological solutions. “We want greater creativity in the development of these fields…we can nag, yell and inspire, but it’s you in the industry that must do the job.”

Shell offers Goldeneye for storage

Petrofac subsidiary CO2DeepStore is working with Shell UK on a potential re-development of the Goldeneye complex – one of the nearest offshore field centers to Aberdeen – as an underground CO2 storage facility. Their solution will be submitted as one of two bids for the UK government’s carbon capture and storage competition. The carbon-dioxide would be transported via existing pipelines from ScottishPower’s Longannet power station in Fife, south of Aberdeen, for storage in porous subsea rock formations. If approved, this could be the world’s first commercial-scale carbon capture and storage scheme linked to an onshore coal-fired power plant.

In the Kish Bank basin offshore Dublin, Providence Resources subsidiary EIRGAS has contracted Amec for a conceptual development study for a gas storage facility in a subsea salt cavern. The study, part of the Ulysses project, should be completed by early next year.

Dana ushers in Medway

Dana Petroleum has won sanction for its first new field development in the Dutch North Sea since acquiring Petro-Canada’s Netherlands interests this summer. The Medway project involves tying the Van Nas and Van Ghent gas and oil fields back to the De Ruyter platform in Block P11b via two subsea wells and flowlines. Base case reserves for the two accumulations are estimated at 11.8 MMboe, with further reserves upside.

GDF Suez E&P Nederland, a much longer-established operator in the sector, has contracted Mercon Steel Structures in Gorinchem to fabricate a platform for last year’s G16a-B gas discovery, 80 km (49.7 mi) north of the island of Terschelling. The facility, due to be installed next summer, will have water separation equipment, with the gas exported through a new subsea pipeline to the G17d-AP platform for further treatment.

Premier in frame for Fyne

Canadian independent Antrim Energy has brought in Premier Oil to help move forward development of the Fyne heavy oil field in UK central North Sea block 21/28a. In exchange for a 39.9% interest, Premier will fund up to $50 million of pre-development and actual development costs, which could include an appraisal well on the structure’s eastern flank. Reserves in the block are currently assessed at 23.3 MMbbl.

In the North Celtic Sea off southern Ireland, London-based heavy oil specialist Nautical Petroleum is set to acquire up to 65% of license 2/07 containing Nemo, a 16degAPI accumulation discovered in 1974 in a water depth of 90 m (295 ft). Nautical will fund development feasibility studies, and could take over operatorship from Providence Resources in exchanged for funding an appraisal well.