Global E&P

April 1, 2021
Petronas’ second floating LNG vessel PFLNG DUA has produced first LNG from the Rotan gas field, 140 km (87 mi) offshore Kota Kinanalu, Sabah.


LLOG has secured an export route for its Taggart field development in Mississippi Canyon block 816. Under an agreement with Eni, production will be exported via subsea infrastructure linked to the Devils Tower spar platform in block 773. LLOG plans to initially complete and tieback two wells in 1,722 m (5,650 ft) of water, followed by start-up in the first half of 2022.


The FPU Argos for BP’s Mad 2 project should have reached Kiewit Offshore Services’ yard in Ingleside, Texas, having sailed 24,140 km (15,000 mi) onboard the BOKA Vanguard from the SHI shipyard in South Korea. Following further work and inspections at Kiewit the 60,000-t structure will head to its offshore location in 1,372 m (4,500 ft) of water in the Green Canyon area, 322 km (200 mi) south of New Orleans. The platform will produce up to 14,000 boe/d via up to 22 producer/water injector wells, and should help extend the life of the Mad Dog oil field beyond 2050.


Murphy Exploration & Production has sold its 50% interest in the King’s Quay FPS and associated export pipelines to a fund managed by ArcLight Capital Partners. The facilities will now be co-owned in a joint venture with entities managed by Ridgewood Energy. The FPS, due to enter service in mid-2022, will be able to process 80,000 b/d of oil and 100 MMcf/d from the Khaleesi/Mormont and Samurai fields.


Petrobras has discovered oil in the Urissanê prospect on block CM-411 in the presalt Campos basin. The well location was 200 km (124 mi) offshore in 2,950 m (9,678 ft) of water: ExxonMobil is the other partner in the concession.


Equinor and partners Repsol Sinopec Brasil and Petrobras have approved the BM-C-33 gas-condensate development in the presalt Campos basin. The license, 200 km (124 mi) from shore in water depths of up to 2,900 m (9,514 ft), contains the Pão de Açucar, SEAT and Gávea discoveries. Their combined wellstreams will be sent to a newbuild FPSO designed to process 126,000 b/d of oil/condensate and 16 MMcm/d of gas over a 30-year lifespan. Oil will be offloaded to shuttle tankers with the gas sent through a subsea pipeline to Petrobras’ Cabiúnas terminal.


SBM Offshore has a letter of intent from Petrobras for a long-term lease/operate contract for the FPSO Almirante Tamandaré, the sixth designated floater for the giant Búzios field in the presalt Santos basin. SBM has allocated its fourth Fast4Ward MPF hull for the facility which will be Brazil’s largest oil-production platform to date, processing 225,00 b/d of oil and 12 MMcm/d of gas, with storage capacity of 1.4 MMbbl. Following delivery in 2024 it will be spread-moored in 2,000 m (6,562 ft) of water, 180 km (112 mi) from the Rio de Janeiro coast.


Chariot Oil & Gas will work with Subsea Integration Alliance (Subsea 7 and OneSubsea) to fast-track first gas from the Anchois field development offshore Morocco. The collaboration agreement covers the full engineering scope, from the FEED through construction, installation, operations, and management. Current plans call for two subsea wells connected to a manifold and exporting production through a 40-km (25-mi) offshore flowline to a gas processing complex onshore.


The drillship Maersk Venturer is due to start a multi-well campaign for Tullow Oil this month offshore Ghana. This year the rig will likely drill and complete two producers and one water injector on the Jubilee field, and a gas injector on TEN to provide pressure support for two Ntomme oil production wells. Further wells next year should lead to sustained production gains from both fields. The campaign is targeting drilling cost reductions, in part through simplified well designs compared with the previous program, performed by the same rig.


Panoro Energy has agreed to acquire Tullow’s non-operated interests in producing fields offshore Equatorial Guinea and Gabon for up to $140 million. These include the Ceiba and Okume complex of fields off Equatorial Guinea, producing respectively through an FPSO and a central processing facility: and a 10% stake in Gabon’s Dussafu Marin permit, operated by BW Energy, in which Panoro is already a partner.


Equinor and its partners in the Åsgard gas-condensate field in the Norwegian Sea will convert the field to low-pressure production under a $165-million program designed to recover a further 400-500 Mboe. Åsgard, 200 km (124 mi) offshore in the Haltenbanken region, came onstream in 1999: the infrastructure is also connected to the Midgard, Smørbukk, and Smørbukk South deposits. The project will involve modifying the topsides of the Åsgard B gas-processing semisubmersible platform, replacing the re-injection compressors to reduce inlet pressure, and other changes to accommodate both high and low-pressure production. The revised system should start-up in 2023.

In the North Sea, Equinor is preparing to cease production from the Veslefrikk and Hemidal fields, and has contracted Heerema Marine Contractors to remove the three platforms and a subsea drill template. Aker Solutions will dismantle and recycle the structures at its decommissioning complex in Stord, western Norway.


NEO Energy is emerging as a major force on the UK continental shelf after lining up two transactions with a total value of around $2 billion.  The company, backed by HitecVision, will take on most of ExxonMobil’s non-operated upstream interests in the northern and central UK North Sea. These include stakes in 14 producing fields, most operated by Shell. NEO will also acquire Zennor Petroleum, which over the past six years has amassed interests in five producing North Sea fields and is currently developing the Finlaggan gas field through the Britannia complex. Assuming regulatory approvals, NEO expects to increase its production to 90-100,000 boe/d next year.


OMV Petrom has signed a production sharing contract for block II in the Georgian sector of the Black Sea, covering a 5,282 sq km (2,039 sq mi) area in water depths up to 2,000 m (6,562 ft). The company plans 3D seismic acquisition in 2022.


Energean has assigned two subsea tieback projects to TechnipFMC. One covers the Karish North gas-condensate tieback to the FPSO Energean Power, serving the Karish field: the scope encompasses supply and installation of the subsea production system, rigid flowlines and umbilicals.

The other award, issued by AbuQir Petroleum, Energean’s joint venture in Egypt with EGPC, is an integrated EPCI contract related to four development wells on shallow-water discoveries in the North El Amriya and North Idku concessions in the West Nile Delta. These will be tied into existing production/process infrastructure.


Cosmo E&P Albahriya won rights to operate offshore block 4 under Abu Dhabi’s second competitive block bid round. The concession covers 4,865 sq km (1,878 sq mi) northwest of Abu Dhabi City. Cosmo has pledged to spend up to $145 million in the exploration phase, and to support ADNOC’s mega seismic survey which is acquiring 3D data within the block area.


Qatar Petroleum has taken a final investment decision to proceed with the offshore North Field East gas development. The $28.75-billion project will deliver around 6 bcf/d from new offshore facilities and wells on the field’s eastern flank to two new onshore LNG trains, each with a capacity of 8 MMt/yr, with a CO2 carbon capture/sequestration process alongside.

Saipem has a letter of award from Qatargas for a $1.7-billion EPCI contract for the North Field production sustainability offshore project, covering the new offshore gas production platforms, inter-field subsea pipelines and cables - plus a letter of intent for the offshore export pipelines and related onshore activities.


Equinor will write down the book value of its Tanzania LNG project by $982 million. The company operates offshore block 2, containing nine discoveries with estimated in-place gas totalling 20 tcf (ExxonMobil is the other partner). Progress on establishing commercial terms for the project has been slow, with the present breakeven price well above Equinor’s global portfolio average. However, the company will continue engaging with Tanzania’s government on delivering an appropriate commercial, fiscal, and legal framework.


Appraisal drilling has confirmed Lang Lebah is PTTEP’s largest gas discovery to date offshore Sarawak. The Lang Lebah-2 well, completed in January on the SK410B block, 90 km (56 mi) offshore, encountered over 600 m (1,968 ft) of net gas pay, and tested at 50 MMcf/d. In addition, the company proved gas with its first well on the Dokong-1 prospect in shallow-water block SK417, 90 km (56 mi) from Sarawak. PTTEP plans follow-up drilling in mid-year.


Petronas’ second floating LNG vessel PFLNG DUA has produced first LNG from the Rotan gas field, 140 km (87 mi) offshore Kota Kinanalu, Sabah. The 393-m (1,289-ft) long vessel is also the company’s first deepwater FLNG facility, capable of accessing gas reservoirs in water depths up to 1,500 m (4,921 ft).


CNOOC has made a large oil and gas discovery in the Bozhong 13-2 field in Bohai Bay off eastern China. The structure is within the southwestern ring of the Bozhong Sag, in a water depth of 23.2 m (76 ft). Well BZ13-2-2 intersected oil pay zones with a total thickness of 346 m (1,135 ft).

In the mid-west Bohai region, the company has produced first oil from the Caofeidian 6-4 field development. The platform, in a water depth of 20 m (65.6 ft), is connected to process facilities serving the Nanpu 35-2 and Qinhuangdo 32-6 oilfields. CNOOC plans a total of 30 producer wells and 12 water injector/water source wells, with production peaking in 2023 at around 15,000 b/d.


Petronas has proved oil in its North Madura II PSC offshore East Java, Indonesia. The Hidayah-1 well, drilled to a TD of 2,739 m (8,968 ft) encountered oil and good reservoir qualities in the Ngimbang carbonate formation, testing around 2,100 b/d.


The jackup Noble Tom Prosser will drill the Pavo-1 and Apus-1 exploration wells for Santos in the Bedout basin offshore Western Australia. The back-to-back program, due to start in late 2021, will target further oil to support the nearby Dorado field development.


Perth-based National Energy Resources Australia has opened The Centre of Decommissioning Australia, supported by major operators such as Woodside, Santos, BHP and Esso Australia and others. The complex will address issues associated with the country’s ageing oil and gas infrastructure which will require over $40 billion to decommission, according to a report by Advisian.