GLOBAL E&P
Jeremy Beckman • London
North America
Husky Energy has proved up further oil close to its producing White Rose field in Newfoundland’s Jeanne d’Arc basin. The North Amethyst E-17 well, drilled in fall 2008, encountered 55 m (180 ft) of oil-bearing reservoir in the Hibernia formation, below the Ben Nevis Avalon formation that generates White Rose’s crude.
Best estimates suggest in-place oil of up to 60 MMbbl, which could be developed through recently established satellite infrastructure at North Amethyst. In light of this discovery, Husky has re-evaluated data from the E-09 well from the 1980s in the White Rose area, which also flowed oil from the Hibernia formation. In-place reserves here could be up to 170 MMbbl. The company plans further appraisal drilling prior to determining development options.
In the Gulf of St. Lawrence off Quebec, PDI Production is set to take a 100% interest in the St. George’s Group play on exploration license EL1070. In exchange, it will transfer its interest in an unconventional shale play on Shoal Point to Shoal Point Energy and Canadian Imperial Venture Corp. EL1070 is in Port au Port Bay in water depths below 100 m (328 ft). PDI plans to target two main play types via extended reach wells drilled from an onshore location. One is a conventional structural play in middle Ordovician platform carbonates of the St. George’s Group; the other is an unconventional shale play in the Middle Cambrian to Lower Ordovician Green Point formation.
Faroe Petroleum and Noreco both have pre-qualified as operators for Greenland’s 2010 Baffin Bay licensing round. The area on offer has been divided into 14 blocks, varying in size from 8,000-15,000 sq km (3,089-5,791 sq mi). The deadline for applications is May 1, and only consortia including a pre-qualified operator can apply. According to Noreco, Greenland and northwest Europe appear to share similar geological characteristics.
South America
Shell has taken a 33% stake in the deepwater Guyane Maritime permit, 150 km (93 mi) offshore French Guiana, operated by Tullow Oil affiliate Hardman Petroleum France. The concession covers around 32,000 sq km (12,355 sq mi) in water depths of 2,000-3,000 m (6,562-9,842 ft). The partners have been conducting a 3D seismic research program over 10% of the permit.
The self-propelled, cylindrical drilling platformSevan Driller should be approaching Brazilian waters, where it has a six-year assignment from Petrobras. The rig, built by COSCO in China, will operate in pre-salt areas, starting initially in the Campos basin in a water depth of 1,800 m (5,906 ft).
In the Santos basin, Petrobras and BG Group have agreed to implement floating liquefied natural gas (FLNG) as an additional option for commercializing pre-salt associated gas. In December, they expected to award FEED contracts to up to three consortia for a new FLNG vessel, operating close to the planned Santos basin FPSOs, which would liquefy the gas before offloading it to LNG carriers.
OGX and Anadarko have boosted Brazil’s oil inventory with their latest efforts in the Campos basin. The 1-OGX-2A-RJS well in block BM-C-41 encountered oil in Upper Cretaceous reservoirs, estimated at 400-500 MMbbl recoverable. Anadarko’s Wahoo North appraisal/exploration probe delivered over 90 m (295 ft) of net oil pay from a pre-salt interval, extending the main pay section from the Wahoo discovery at least 5 mi (8 km) to the north.
Following completion of this program, the contracted drillship was due to perform drillstem tests on both wells. In adjacent block BM-C-32, Anadarko and partners are drilling the Itaipu oil prospect to test a pre-salt feature that could hold up to 2 Bbbl recoverable.
More oil companies look to drill exploration wells off the Falkland Islands following Desire Petroleum’s long-term hire of theOcean Guardian semisubmersible, due to start next month. The BHP/FOGL joint venture is in discussions over taking the rig’s third contracted slot for a well on the Toroa prospect, 140 km (90 mi) south of the islands’ capital Port Stanley.
Toroa is in 600 m (1,968 ft) water depth, deeper than the other prospects which Desire and Rockhopper plan to drill in the North Falkland basin. If the sub-let goes ahead, the extra depth would entail some modifications to the rig. BHP/FOGL also is keen to drill three other prospects in much deeper water, using a dynamically positioned semi or drillship. Costs could be shared by another operator in the southern region, Borders & Southern, which has raised funds for up to three wells on its acreage, focus initially on the Lower/Upper Cretaceous prospects of Darwin and Stebbing.
West Africa
SOCO has tested oil and gas from its latest appraisal well on the Viodo Marine field offshore Republic of Congo (Brazzaville). Drillstem tests on the upper and deeper Carbonate sections of Viodo Marine 4 produced cumulative flow rates of 2,600 b/d of oil and 7 MMcf/d of gas. SOCO will incorporate the results and reprocessed seismic into a new 3D model to assess the field’s commerciality.
New York-based Pacific Asia Petroleum (PAP) has agreed to purchase CAMAC Energy Holdings’ 60% interest in the deepwater Oyo oilfield in license OML 120, 75 mi (121 km) offshore southern Nigeria. Oyo, operated by Eni subsidiary Nigerian Agip exploration, is undergoing development via the FPSOArmada Perdana. Off Nigeria’s western coast, Afren has farmed into OPL 310 in the Benin basin, assuming a 70% working interest and technical operatorship of the license. Afren and existing partner Optimum Petroleum will assess the block’s prospectivity: Afren has identified strong potential in Upper Cretaceous (Cenonian and Turonian) horizons, which exhibit similar characteristics to hydrocarbon-bearing zones in the company’s blocks off Cote d’Ivoire.
Petrobras has found oil in block 18/06 offshore Angola. The Manganes-01 well, drilled to a depth of 1,500 m (4,921 ft) from the waterline, encountered an 82-m (269-ft) column, and produced 20° API oil at high flow rates.
The DLM yard in Casablanca is due to deliver a consignment of 16 clamps this month for a Perenco-operated field offshore Gabon. Last year, the yard completed construction of its largest offshore project to date, a 4,000-metric ton (4,409-ton) drilling/process platform for Perenco’s Emeraude development off the Republic of Congo. Currently, DLM’s management is expanding the company’s facilities in Morocco. The program includes opening a new 100,000-sq m (1,076,391-sq ft) manufacturing plant in Tit Mellil, of which 6,750 sq m (72,656 sq ft) is under cover, and securing a 15,000-sq m (161,459-sq ft) assembly yard in Jorf Lasfar Port with a 10-m (32.8-ft) draft alongside.
Mediterranean Sea
INAgip, the joint venture between Eni and Croatia’s INA, has produced first gas through the six-well Annamaria A platform. The Annamaria field straddles the maritime border between Italy and Croatia. On the Italian side, the sister platform Annamaria B also is due to start operations shortly. At full capacity, the facilities should produce around 1.6 MMcm/d (56.5 MMcf/d).
In the southern part of the Adriatic Sea, 50 km (31 mi) northwest of Brindisi, Saipem will supply and install a new FPSO on the Aquila field under a $1.5-billion contract from Eni. The vessel will have oil production capacity of 12,000 b/d, and storage capacity of 700,000 bbl. It is due to enter service in 2011, and will remain on Aquila, in 815 m (2,674 ft) water depth, for at least eight years before being re-deployed by Eni.
Israel Petroleum Co. (IPC) has gained 95.5% working interest in two drilling licenses and one exploration permit in the Levantine basin, 40 km (24.8 mi) off western Israel. Petroleum licenses 347(Mira) and 348 (Sarah) extends across 803 sq km (310 sq mi), while Petroleum Permit 199 (Benjamin) covers an area of around 1,865 sq km (720 sq mi). The permits are close to Noble’s deepwater Tamar and Dalit gas discoveries. Seismic data has been acquired over the license area.
Middle East/Caspian Sea
BP’s North Shadwan shallow water development offshore Gulf of Suez is on target to deliver first oil by mid-year, according to partner Beach Petroleum. The recently drilled NS377-3 development well flowed up to 1,400 b/d. Beach says up to three further wells will be drilled on blocks 377 and 385, starting with the Teen-1 exploratory well, followed by two more deviated development wells drilled from the shore, where all the production facilities are. Ultimate recovery from the NS377 and NS385 fields could reach 10-15 MMbbl, Beach added, and possibly more if Teen-1 is successful.
Iran aims to develop all remaining phases of the South Pars gas field in the Persian Gulf within the next 10 years, according to Pars Oil and Gas Co. Managing director Ali Vakili estimates the remaining projects will require investments totaling $40 billion. Since last March, he added, over $30 billion had been committed to various programs throughout the giant field.
SOCAR subsidiary Caspian Drilling Co. has contracted Northern Offshore to support drilling operations in the Azeri sector of the Caspian Sea. The $21-million contract relates to a program involving the semisubmersible rigDada Gorgud, on acreage operated by BP, on behalf of a multi-national consortium.
India
India’s government has approved a development plan for the Deen Dayal West gas field in block KG-OSN-2001/3, operated by GSPC. The program includes installing one wellhead and one central processing platform, drilling of 11 development wells including eight multilaterals, and laying of a 20-km (12-mi) x 24-in. (61-cm) export pipeline to a new onshore-based terminal. First gas is due in December 2011.
On India’s east coast, Sembawang Shipyard and Kakinada Seaports have agreed to establish and operate a new offshore/marine complex catering to drilling rigs and other vessels. The location of the proposed company, Sembmarine Kakinada, is between Vishakhapatnam and Chennai Port. Initially, it will provide riser/equipment repairs and module fabrication.
Asia-Pacific
Daewoo International has issued a $1.4 billion construction contract to Hyundai Heavy Industries for the SHWE gas project in the Bay of Bengal. This involves development of fields in blocks A-1 and A-3, 70 km (43.5 mi) west of Myanmar. HHI will fabricate and install a 40,000-ton (36,287-metric ton) production/processing platform handling up to 500 MMcf/d, the subsea export pipeline to Ramree Island, and the associated onshore terminal and supply base. The scheduled completion is March 2013.
PetroVietnam has discovered oil while drilling the Lac Da Nau prospect offshore southern Vietnam according to partner Total. The well was drilled in 45 m (147 ft) of water in the southern section of block 15-1/05, 110 km (68 mi) east of Vung Tau. During basement tests, the well flowed 4,200 b/d of 44º API oil.
Last month, PetroVietnam was to formalize a contract for its first semisubmersible tender rig, to be built by Keppel FELS. Keppel’s SSDT 3600E design allows the rig to maintain station alongside deepwater floating platforms, even in strong currents, via its eight-point mooring system.
Close to the maritime border with Indonesia, Premier oil has awarded the main construction contracts for Chim Sao, its first Vietnamese development project. EOCP will provide a converted FPSO with production capacity of 50,000 boe/d and oil storage of up to 680,000 bbl. PTSC is building the associated wellhead platform and also will install the infield flowlines and gas export pipeline.
Australasia
New Zealand’s Energy and Resources Ministry wants to increase exploration activity in the country’s unexplored petroleum basins, particularly in the deepwater regions. Currently, the petroleum sector provides around $3 billion of New Zealand’s export revenue, but the Ministry believes this sum could be increased tenfold through development of hydrocarbon resources.
PEP 38491 partners, led by Westech, are one consortium looking to prove up new reserves in the northern Taranaki basin. The jackupEnsco-107 was due on location last month to drill the Albacore-1 exploratory well, targeting oil and gas in three separate zones.