Jeremy Beckman • London
North America
Eni has delivered first oil from its Nikaitchuq oil development offshore Alaska’s North Slope. The field, in 3 m (10 ft) water depth, ultimately will produce 28,000 b/d via 52 offshore and onshore wells comprising 26 producers, 21 water injectors, and five water source/disposal wells, with horizontal reaches of up to 20,000 ft (6,096 m). The offshore facilities are connected to onshore process facilities by a buried pipeline bundle, said to be the heaviest installed in the Arctic to date.
South America
In the Gulf of Venezuela, the Cardon IV joint venture co-owned by Eni and Repsol has drilled a fourth successful well on the Perla gas structure, lifting estimated reserves to over 16 tcf. Perla-4, drilled in 60 m. (200 ft.) of water, flowed 17MMcf/d and 560 b/d of condensate on test. The partners plan early production via the wells already drilled and four lightweight platforms linked by pipeline to an onshore central processing plant. Plateau output should reach 1.2 bcf/d.
PDVSA Socialista now has eight wells in place at the Dragon field in the eastern Caribbean Sea, Venezuela’s first offshore non-associated gas development. The drillshipsPetroSaudi Saturn and PetroSaudi Discoverer are drilling and completing the wells in tandem.
Petrobras has started an extended well test (EWT) on the pre-salt Tracaja reservoir in the Marlin Leste field in the Campos basin, 124 km (77 mi) off the coast of Rio de Janeiro. Well 6-MLL-70, which discovered the oil last September, is now connected to process facilities on theP-53 platform, with an initial flow rate of 23,000 b/d of oil. The purpose of the test is to provide data on the reservoir characteristics to assist design of a future development.
In the Caratinga concession, Petrobras has another EWT in progress on the Carimbe accumulation. However, the company was forced to interrupt another test last month in the Guará area of the Santos basin when the pipeline connecting the well to the Dynamic Producer platform suffered a rupture. The well was shut in for investigations, although the test was due to resume following repairs.
The Santos basin continues to prove fertile for exploration, with Petrobras notching two new oil finds in quick succession. The company’s success on the Macunaima structure in block BM-S-10 was followed by productive pre-salt extension drilling, 8 km (5 mi) from the discovery well in the Iara Evaluation Plan in the BM-S-11 concession. Water depth in both cases was well over 2,000 m. (6,562 ft.). Looking ahead, Petrobras has ordered seven new drilling rigs from Estaleiro Atlantico Sul at a total cost of $4.6 billion. The first should start operating in 2015.
Maersk Oil Brasil also proved oil in the Carambola B structure in 130 m (426 ft) water depth in Campos basin license BM-C-37. The well was due to be deepened after encountering hydrocarbons in the target Albian carbonates.
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Rockhopper is using its current slots for the semisubOcean Guardian to further appraise Sea Lion, the sole commercial oil find to date off the Falkland Islands. Its latest completed well, 14/10-3, was drilled to explore the northern lobe of the Sea Lion fan feature. It encountered oil and gas shows within a sequence of four sandstone intervals, with live oil recovered from Sand 3 using a modular formation dynamic tester (MDT) tool. The next target (14/10-4) was due to be drilled 2.3 km. (1.4 mi.) northwest of the discovery well.
West Africa
Total is progressing redevelopment of the Anguille field offshore Gabon. Five Phase II wells were completed in 2010, including two injectors, with the final two producers to follow this year. In France, construction continues on the AGMN wellhead platform which will be used for drilling Phase III wells during 2012.
Petrobras has joined state oil company CBH in block 4 offshore Benin.
Compagnie Beninoise des Hidrocarbures (CBH) has awarded Petrobras a 50% interest in block 4 offshore Benin. Petrobras hopes to find light oil in the concession, which covers 7,400 sq km (2,857 sq mi) in water depths of 200-3,000 m (656-9,842 ft). The company has committed to acquiring and processing 2,250 sq km (869 sq mi) of 3D seismic by year-end, and following a review of the area’s exploratory potential, up to three wells.
Hyperdynamics has issued a tender for exploration drilling on its acreage offshore Republic of Guinea via its well management company, AGR Petroleum Services. A contract was due to be awarded by early April, with the first well likely drilled this fall.
The Jubilee field partners have proven further oil in their contiguous permits offshore Ghana. In the deepwater West Cape Three Points license, the semisubAtwood Hunter found oil and gas for Kosmos Energy in the Teak prospect, 2.7 km (1.7 mi) outside the Jubilee Unit boundary. Hydrocarbons were encountered in shallow Campanian and deeper stratigraphic Turonian reservoirs. The structure extends potentially over 50 sq km (19.3 sq mi), but needs to be appraised.
In the Deepwater Tano license to the west, the drillshipDeepwater Millennium found oil down-dip of, and in communication with, Tullow’s Enyenra (ex-Owo) discovery well to the north. Enyenra-2A well, drilled in 1,674 m (5,492 ft) water depth, intersected a total of 32 m (105 ft) of net pay from the field’s upper and lower channels. Again, further appraisal is planned.
Northern/Eastern Europe
The Nordstream consortium has secured financing of €2.5 billion ($3.49 billion) for Phase II of its pipeline project in the Baltic Sea, designed to take gas from Russian fields to western and central Europe. Earlier this year Allseas’Solitaire finished its installation program for the first Nordstream gas line, covering two of the three sections. Saipem’s Castoro Sei was due to finish the remaining section by April. Connections will follow this spring and summer in the Gulf of Finland and off the coast of Gotland, Sweden.
Romania’s National Agency for Mineral Resources has awarded exploration rights for the Est Rapsodia and Trident blocks in the Black Sea to Lukoil Overseas and Vanco International.
The blocks cover a total area of 2,000 sq km (772 sq mi), 60-100 km (37-62 mi) offshore, in water depths varying from 90-1,000 m (295-3,281 ft). Work commitments include a 3D seismic survey. Also in the Romanian sector, Edinburgh-based Melrose Resources has finalized terms for its concession agreements for offshore blocks 27 and 28 (Muridava and East Cobalcescu).
Mediterranean Sea
TheBergen Surveyor has completed a 7,500-km (4,660-mi) 2D seismic survey over the Rhone Maritime concession off southern France. The data will now be processed and interpreted, with Noble Energy taking responsibility for physical operations on the concession from previous operator Melrose.
Albania’s government has approved San Leon Energy’s work program for the offshore Durresi license, which it will operate in partnership with Beach Energy. The duo plan to acquire over 300 sq km (116 sq mi) of 3D seismic data, which will be used to evaluate the A4-IX gas-condensate discovery 30 km (18.6 mi) off Albania’s southern coast. An appraisal well should follow next year, and San Leon also will investigate multiple plays extending from Italy across the Apulian margin.
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Energean Oil & Gas has put into production a new well on its Prinos field in the Gulf of Kavala offshore Greece. The PA-35 infill well is the first in a series of planned wells designed to lift output from the Prinos license to 5,000 boe/d. Next on the agenda was a recompletion of the Epsilon well.
Extrem Energy is seeking partners for the Candarli block in the Turkish sector of the Aegean. According to brokers Indigo Pool, the license is in the prolific Western Anatolian region off Turkey’s west coast, in water depths of 10-150 m. (33-492 ft.). Extrem has put into production onshore oil wells in the closest analogue basin, and a refinery to the south of the license would facilitate development of a commercial offshore discovery.
ATP Oil & Gas has agreed to operate five deepwater licenses in the Levantine basin offshore Israel, subject to approval from the Ministry of National Infrastructures. ATP’s interests would range from 40-50%.
Caspian Sea
Lukoil has agreed to supply Gazprom with gas from its fields in the northern (Russian) sector of the Caspian Sea. Gazprom aims to accommodate supplies through its gas transmission system near the onshore Yamburgskaya compressor station.
Middle East
Saudi Aramco has set a new record for a long-reach well in Saudi Arabia on the offshore Manifa field. The well was drilled to a TD of 32,136 ft (9,795 m) using a Precision Drilling rig, with a horizontal water injector completed concurrently across the Lower Ratawi reservoir. Manifa is in shallow waters, 200 km (124 mi) northwest of Dhahran. Aramco has tapped the reserves via a combination of extended wells drilled from shore, drilling islands, and offshore platforms.
India
BP is entering an E&P partnership with Reliance Industries. BP will take a 30% stake in 23 oil and gas production licenses that Reliance operates in India, covering a total area of 270,000 sq km (104,247 sq mi), in water depths ranging from 400 m (1,312 ft.) to over 3,000 m (9,842 ft). These interests currently produce 1.8 bcf/d of gas, representing over 40% of India’s total production. BP is paying Reliance $7.2 billion, with further payments of up to $1.8 billion contingent on future discoveries resulting in development.
Leighton Contractors India will perform refurbishment work for ONGC’s 25 year-old Water Injection North (WIN) platform at the Mumbai High field. The $141-million program involves a wide-ranging overhaul of process and utility equipment, and installing new systems to treat sea water and inject treated water at 320,000 b/d.
Australia
Chevron has discovered more gas in the Orthrus prospect in the Carnarvon basin off Western Australia. The Orthrus-2 well, drilled 60 mi (100 km) northwest of Barrow Island in the WA-24-R permit area, encountered 243 ft (74 m) of net gas pay. Of this, 102 ft (31 m) occurred in a deeper, previously unexplored target interval.
Woodside Energy has awarded a FEED study for its Browse LNG project, 60 km. (37 mi.) north of Broome on Australia’s northwest coast. The KLH Australia-Browse Joint Venture (KBR, Leighton Contractors, and John Holland) will provide services for development of three 4 MMton/yr LNG trains, supplied by gas from various offshore fields, along with associated infrastructure, accommodation, and marine facilities.
Asia/Pacific
Petronas has discovered potentially major oil and gas accumulations offshore Sarawak. The NC3 and Spaoh-1 wells were drilled last year in blocks SK316 and SK306, each to a depth of almost 4,000 m (13,123 ft) below sea level. Petronas estimates net in-place gas of 2.6 tcf at NC3, and 100 MMbbl of oil and 200 bcf of gas from Spaoh-1, which was due to undergo production testing.
Transocean has a five-year contract from Chevron for use of two newbuild Super B Class jackups under construction at the Keppel FELS yard in Singapore. The rigs will work offshore Thailand, with drilling due to start in early 2013, subject to the mobilization/construction schedule. The contract is valued at $246 million per rig to Transocean.
Husky Energy has issued details of the heads of agreement it signed last December with CNOOC for the Liwan gas field development in the South China Sea. Husky will operate the deepwater portion of the project, which involves development drilling, installing subsea equipment and controls, and subsea tiebacks to a shallow-water platform. CNOOC will operate the shallow water program and facilities, which will include a new 270-km (168-mi) pipeline to shore and an onshore processing plant. Assuming government approval for the project, first gas could flow in late 2013.
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