GLOBAL E&P
Jeremy Beckman • London
Bright future ahead for floating production
Worldwide spending on floating production systems will total $44.8 billion over the next five years, according to a new study by analysts Douglas-Westwood.The World Floating Production Report 2010-2014 suggests that the sector is set for strong long-term growth, reflecting the continuing expansion into deeper waters, the need to exploit marginal fields, and increased demand for fast-track and phased developments. Latin America will account for almost a third of global capex in the forecast period, the analysts say, followed by Africa and Western Europe.
Elsewhere, Douglas-Westwood’s Steve Robertson maintains that the ban on deepwater drilling in the Gulf of Mexico following theDeepwater Horizon incident should not impact floating production projects planned for this region.
Americas
Oil has started flowing from the North Amethyst field 350 km (217 mi) offshore Newfoundland & Labrador. This is the first satellite development at Husky Energy’s White Rose project, and also Canada’s first subsea tieback. North Amethyst, with reserves of 90 MMbbl, is connected to theSea Rose FPSO 6 km (3.7 mi) away via flexible flowlines. Output should peak at 37,000 b/d as more wells come online.
Staatsolie has signed a Heads of Agreement with Tullow Oil for a deepwater exploration license offshore Suriname. Tullow plans to start acquiring seismic next year over the 2,369-sq km (915-sq mi) block 47. It has other interests off neighboring Guyana and French Guiane which it intends to start drilling later this year.
Petrobras reports two further light oil finds in the deepwater Campos basin. Well 6-MRL-199D-RJS in 648 m (2,126 ft) water depth found oil in pre-salt carbonatic reservoirs in the Aptian section, with recoverable reserves estimated at 380 MMboe. These could be developed via the P-27 platform. Another well on the Carimbe structure in 1,027 m (3,369 ft) of water revealed 105 MMbbl of recoverable oil in an Albian post-salt carbonate reservoir. TheP-48 platform is a possible host.
In the pre-salt region of the Santos basin, Petrobras has signed a Letter of Intent with SBM Offshore and Queiroz Galvao Oleo e Gas for an FPSO for the second pilot program on the Tupi field in block BM-S-11. The vessel will be installed on the northeast of the field, in 2,130 m (6,988 ft) water depth, and will be able to produce 120,000 b/d of light crude and up to 5 MMcm/d (1.3 tcf/d) of gas. Delivery is due in the first half of 2013.
Diamond Offshore’s semisubOcean Guardian continues its campaign of exploratory wells offshore the Falkland Islands. The latest effort has been probing the Toroa prospect off the East Falklands basin for BHP/Falklands Oil & Gas. Earlier wells brought gas/condensate and oil discoveries (Liz and Sea Lion) for respectively Desire Petroleum and Rockhopper Exploration. Results from Sea Lion have persuaded Desire to use its next slot to test the Rachel structure on the eastern flank of the North Falklands basin.
West Africa
Maersk Oil has completed its first appraisal well on the deepwater Chissonga field in Angola block 16. The location was 2 km (1.2 mi) downdip of the discovery well, in 1,355 m (4,445 ft) water depth. A production test flowed 6,650 b/d of oil from Oligocene turbidites. Further wells will be needed to determine commerciality, Maersk points out.
Namibia’s government has awarded three contiguous offshore blocks to HRT, in partnership with Universal Power and Acarus Investments. The blocks cover a total area of 15,382 sq km (5,939 sq mi) west/southwest of the undeveloped Kudu gas field off southern Namibia. The initial four-year work program includes interpreting existing 2D and 3D seismic data and the acquisition of new data.
Dana Petroleum and Petronas Carigali have contracted a newbuild semi from Maersk to drill structures offshore Mauritania this fall. Dana will use the rig for a well on Cormorant, a 2-3-tcf prospect in block 7. Petronas’ program is in adjacent block 6.
Europe/Mediterranean Sea
Nexen Petroleum UK has completed installation of the 6,500-metric ton (7,165-ton) deck and bridge structures for a new production-sweetening platform at the Buzzard field complex in the UK central North Sea. Heerema Hartlepool was responsible for fabrication – the jacket, delivered last year, was built by Heerema Fabrication Group at Vlissingen, the Netherlands.
Petrobras has signed for further deepwater exploration acreage offshore Portugal. It is taking 50% operating interests in the Gamba, Lavagante, and Santola blocks in the Alentejo basin. The combined acreage, covering around 9,000 sq km (3,475 sq mi) is in water depths of 200-3,000 m (656-9,842 ft). Petrobras operates a further four offshore blocks in Portugal’s Peniche basin.
Noble Energy has identified a further potential giant gas prospect offshore Israel in the Rachel and Amit licenses, according to partners Delek Drilling and Avner Oil & Gas Exploration. During a presentation earlier this year, Noble said that the tertiary Leviathan structure could hold recoverable reserves of 16 tcf (453 bcm), and had recommended drilling an exploration well late this year. Noble also identified further tertiary prospects on the Ratio Yam licenses which could yield around 3 tcf (85 bcm).
Black Sea
Petrom has successfully applied multi-stage hydraulic fracturing to boost flow from two wells on its Lebada Est field in the offshore Histria block in the Romanian sector. The wells had been in service since 1998, but production had fallen due to the reservoir rock’s low permeability. Strong results led the company to transfer this technique to a new well on the Lebada Vest field. The measures should lift Petrom’s offshore production this year by over 300,000 boe.
Calgary-based Stratic Energy has agreed to sell its interests offshore Turkey to a Turkish consortium. Stratic was one of the founder partners in the shallow water Akcakoca gas development, operated by TPAO.
Middle East
ADMA-OPCO has contracted NPCC for brownfield engineering and a new accommodation platform for the Zakum Central Super Complex offshore Abu Dhabi. The program involves re-activating and re-commissioning production facilities at the complex which had been mothballed since the 1980s. Under the $350-million EPC project, NPCC will install the new 3,500-metric ton (3,858-ton) platform via the floatover method. Work should be completed by late 2012.
Shell and PetroChina have signed a 30-year PSC for block D offshore/onshore Qatar with Qatar Petroleum. The partners, led by Shell, will explore for natural gas in the 8,089 sq km (3,123 sq mi) concession, part of which extends beneath the North field in the overlying Khuff horizon. The first five-year phase includes seismic acquisition and drilling of a well to the pre-Khuff formation.
Surestream’s concessions in Lake Tanganyika.
RAK Petroleum has applied for approval from Oman’s government to drill further production wells on the offshore Bukha and West Bukha oil and gas fields. The company took this decision following reservoir studies and well monitoring last year. West Bukha came onstream early in 2009 via a newly installed platform.
East Africa/Indian Sub-Continent
Tanzania’s government has approved BG Group’s request to farm into 60% of blocks 1, 3 and 4, operated by Ophir Energy. The blocks span a total area of over 27,000 sq km (10,425 sq mi) in the Mafia Deep Offshore basin and the northern part of the Rovuma basin, in water depths of 100-3,000 m (328-9,842 ft). BG will pay 85% of costs of an initial exploration work program.
UK consultancy WGP Exploration is performing a feasibility study for Surestream Petroleum for a 2D survey on Lake Tanganyika. The program relates to offshore blocks B and D. WGP has been investigating the type of vessels that could handle this program, and also local infrastructure/logistics capability.
Cairn Energy and Santos have completed 3D surveys over the producing Sangu gas field in the Bay of Bengal, the South Sangu discovery, and the Magnama discovery in block 16. The partnership will assess the data to identify exploration and production drilling targets for a potential campaign late in 2010 through early 2011.
Asia-Pacific
Korex has signed a 10-year PSC with North Korea’s state-owned Korea Oil Exploration Co. (KOEC) covering exploration rights in the Korean East Sea. The 50,681 sq km (19,568 sq mi) concession comprises deep and shallow water areas off North Korea’s east coast. Early commitments include completing work on existing data and acquiring new 2D seismic. Korex is co-owned by London-based Aminex and Chosun Energy of Singapore.
Primeline Energy Holdings has completed a drillstem test program for its LS 35-3-1- discovery well in the East China Sea. Logging indicated over 20 m (65.6 ft) cumulative hydrocarbon pay in two zones. The find could be tied back 14.5 km (9 mi) to a planned production facility on the LS 36-1 gas field. It is also significant, Primeline claims, as the first proven surface flow of gas from a low-permeability reservoir in the southern part of the East China Sea.
In the South China Sea, Husky Oil China has tested gas at 55 MMcf/d from its first appraisal well on the Liuhua 29-1 discovery. The well was drilled by theWest Hercules rig in 765 m (2,510 ft) of water. Liuhua 29-1 is part of a proposed three-field development in the area, with first gas targeted in 2013.
Lundin Petroleum has signed a PSC with Petronas Carigali for blocks SB307 and SB308 offshore Sabah, Malaysia. The permit includes an oil discovery which will be evaluated to determine its development potential. The partners also plan to acquire 2D and 3D seismic data and to drill at least one exploration well.
Last month, Salamander Energy spudded the first of a series of planned wells in the little-explored Vinh Chau Graben system offshore southern Vietnam. The shallow water Tom Su Lua-1X well, drilled by the jackupPVD-1, was targeting around 60 MMbbl of oil in block DBSCL-01. The rig was then due to transfer to block 31 to work on the Tom Hum Xanh prospect.
Nido Petroleum has produced first oil from its shallow water Tindalo development in the NW Palawan basin off the Philippines. Drillstem testing of the Tindalo-1 well achieved unassisted (natural) oil flow of 18,689 b/d. An extended well test is currently under way – cashflow generated will be used to fund Nido’s planned five-well campaign elsewhere in the basin.
Australia/New Zealand
Apache Energy has contracted JP Kenny for subsea FEED for its Julimar project in the Carnarvon basin offshore Western Australia. Development takes in the Julimar, Brunello, and Grange gas fields with combined reserves of 2.1 tcf, in water depths of up to 250 m (820 ft). They will be produced via up to 18 subsea wells connected to the new Wheatstone central processing platform.
Petrobras has taken a 100% operating interest in block 2 in the Raukumara basin offshore New Zealand. The three-stage work program involves acquiring 2D and 3D seismic data, and drilling of one exploratory well.
ROC Oil Tasman has farmed into the AWE-operated PEP38524 permit in the southern Taranaki basin. Pending approval from New Zealand’s government, the partners planned to drill the Tuatara-1 well this month in 50 m (164 ft) of water, targeting around 80 MMbbl of recoverable oil. ROC and its joint venture partners have also secured another permit offshore Taranaki – PEP52181 – which includes the Kaheru oil and gas/condensate prospect.