Professional Documents
Culture Documents
EOR) to extract a
higher proportion of oil over the life of the field.
Det norske has awarded Plexus a contract, worth about 1 million ($1.7 million), to
supply POS-GRIP surface wellhead and mudline equipment services for an HPHT
appraisal well off Norway. The contract, which has a planned duration of 80 days, is
expected to start before end-year.
Det norske, OMV and VNG have awarded AGR contracts, worth $1 million, to
deliver software solutions to manage the time, risk and cost of well operations off
Norway. Under the contract, AGR will supply software products P1, a probabilistic
planning tool for managing time and risk of well operations, CT , a real-time cost
tracker, and newly developed iQ, designed to simplify the planning and
execution of wells and which has been nominated for the innovation award at ONS
in Stavanger this week.
GDF SUEZ has contracted Asset Guardian Solutions to provide a fully configurable
process software management programme for the Cygnus field development, in UK
southern basin blocks 44/11a and 44/12a. The tool set will enhance management
and security of all process control software used to manage all assets associated
with the project. First gas from Cygnus is targeted for late-2015.
Petrobras has awarded Farstad Shipping a contract, for four years, with an option
for up to four years, for the AHTS BOS Topzio for operations off Brazil. The
contract, worth about NKr375 million ($60.7 million), excluding options, runs from
this month.
Petrobras has awarded Wood Group Kenny (WGK) contracts, worth over $2 million
in total, for work on the pre-salt Lapa field, off Brazil. One contract comprises
conceptual engineering studies of two options for pipeline heating systems - water-
heated pipe-in-pipe and electrically trace-heated pipe-in-pipe. WGKs scope
includes flow assurance analysis, mechanical and installation design, thermo-
mechanical analysis, material selection and technological gap evaluation. Cost
assessment and an installation capabilities survey will also be carried out. The
second contract will focus on engineering support to provide conceptual, basic and
detailed design. In addition, WGK will be responsible for a set of engineering
studies to be carried out within the contract period. The Lapa field, in block BM-S-
9, has estimated recoverable reserves of 459 million barrels of oil equivalent.
Premier Oil has awarded Costain Upstream a three-year contract extension, worth
12 million ($19.9 million), to provide project and technical support across its
assets, including the Catcher development. On Catcher, Costain Upstream will
provide development engineering and consultancy support in various technical
areas, including subsea infrastructure and floating production.
Saipem has awarded Bureau Veritas a contract to provide classification and
certification services for the two FPSOs for Totals Kaombo development, in block
32, off Angola. Saipem is EPIC contractor for the converted turret-moored FPSOs
for the $4 billion development. Bureau Veritas will oversee the conversion of the
vessels and class the floaters in service, while certifying the topsides and turret
assemblies. Two VLCCs will be converted into FPSOs at Sembawang Shipyard,
North Sea Reporter 27 August 2014
15
Singapore. Each will have an oil treating capacity of 115,000 b/d, a water injection
capacity of 200,000 b/d, a 100 MMcfd gas compression capacity and a storage
capacity of 1.7 million barrels of oil. Some work in connection with engineering,
procurement, topsides modules fabrication and integration as well as onshore and
offshore commissioning work will be carried out in Angola. Topsides fabrication will
be undertaken at Saipems Karimun Island Yard, in Indonesia. The first FPSO is
scheduled to be operational by first-quarter 2017 and the second by second-
quarter 2017.
Wuchang Shipbuilding Industry, China, has awarded Ulstein a contract to design
and equip four newbuild PX121 type PSVs, plus an option for a further four, for
Singapore-based shipowner Otto Offshore. The vessels, scheduled for delivery in
2016, will measure 83.4 metres long and 18 metres wide and will have a cargo deck
of 840 sq metres and a load capacity of 4,000 tonnes. Each will have
accommodation for 30 crew and be equipped with DP2.
Field development
Statoil reports the Aasta Hansteen development, in Norwegian Sea block 6707/10,
is on schedule for first production in third-quarter 2017. Together with Polarled,
the project is moving the boundaries for technology, deep waters and ripple effects
on the Norwegian Shelf, it says. Investment
in the two projects is estimated at NKr57
billion ($9.2 billion) in total. The hull and
the topsides for Aasta Hansteen, which
secured PDO approval in 2013, are being
built in South Korea, while the equipment
packages and subsea facility and pipeline
equipment are being delivered globally. The
first offshore work started this summer
with laying of a fibre-optic cable by
DeepOcean and installation of rocks on the seabed for the pipeline. More than half
of the equipment packages for the topsides are being delivered by Norwegian-
based suppliers, while 93% of the subsea equipment is also being provided by
suppliers in Norway. (Illustration: Aasta Hansteen platform)
Total is facing a delay in starting up production from the Laggan-Tormore
development, in west of Shetland blocks 206/1a and 205/5a, as a result of
problems in the construction of the gas treatment plant at Sullom Voe, partner
DONG Energy reports today (Wednesday) in a first-half 2014 interim results
statement. DONG expects first production to will be postponed from the end of
this year to 2015.
Production
Norway has potential 10 billion boe of undeveloped reserves
Norway has 10 billion barrels of oil equivalent of discovered reserves which have
still to be developed, 60% of which could be commercially viable, potentially
North Sea Reporter 27 August 2014
16
adding $106 billion to the country's oil and gas industry revenues, according to
Wood Mackenzie. The consultant cautions, however, that bringing the reserves
into production presents significant technical and commercial challenges.
In its most recent upstream analysis, unveiled at ONS in Stavanger this week,
WoodMac shows the undeveloped reserves are held within 206 discoveries,
ranging in size from under 1 million boe to the giant 2.4 billion boe in Johan
Sverdrup and spread across the Norwegian Shelf, with half in the North Sea and the
remainder divided equally between the Norwegian Sea and the frontier Barents
Sea. Although the reserves are at different stages of evaluation, WoodMac says
over half could be developed, generating significant returns.
James Webb, WoodMac NW Europe upstream analyst, says: We consider 4.8
billion boe likely to be economic, 1.6 billion boe potentially economic and the
remaining 3.6 billion boe not commercial and therefore will remain undeveloped.
From this we estimate the volumes in the likely and potentially economic
discoveries represent $22 billion of potential value for companies in the sector and
$84 billion in tax revenue alone for the Norwegian government, excluding the
profits of Statoil and the state direct financial interest.
However, Webb notes that among the technical and commercial challenges which
could threaten the development of the discoveries are low reserves, lack of
infrastructure and/or complex geology. Commercially, the global upstream
industry faces an extremely difficult economic environment. Investors are
increasingly demanding bigger dividends and better rates of return. As a result
many companies have committed to stricter capital discipline and are intensely
screening projects based on financial criteria. Capital intensive projects are
particularly being scrutinised. This means more difficult projects could be delayed
and in some circumstances will simply remain undeveloped.
WoodMac also suggests recent exploration success in Norway has hindered the
pace of the development of the discoveries. Over the last five years the average
size of new discoveries has been greater than the average undeveloped field and
therefore new fields have been prioritised, says Webb. In keeping with the capital
discipline theme, complex developments such as HPHT are also being delayed in
favour of more straightforward projects. Nevertheless, despite the obvious
obstacles WoodMac says the pipeline of future developments in Norway is strong.
Statoil has resumed production from the Troll C platform following a shutdown on
17 August after an inspection programme detected corrosion damage to a pipe
connected to the oil export system. The
pipe has been replaced. Output from Troll
C averages around 58,000 b/d of oil and 8
MMcmd of gas. In addition the platform
handles about 34,000 b/d of oil and 2
MMcmd of gas from the Fram field. Partner
interests in Troll, which straddles blocks
31/2, 31/3, 31/5 and 31/6, are Statoil
(operator) 30.583850%, Petoro 56%, Shell
North Sea Reporter 27 August 2014
17
8.101450%, Total 3.690960% and ConocoPhillips 1.623740%, while interests in
Fram, in blocks 35/11 and 31/2, are Statoil (operator) 45%, ExxonMobil 25%, GDF
SUEZ 15% and Idemitsu 15%. (Photo: Troll C )
Drilling
Exploration, appraisal, development activity update
There has been little change in the past week regarding current UK E&A drilling
activity, with seven wells active. Among these only two operators are commenting
on their respective wells progress. Maersk Oil on 22 August plugged Balloch
appraisal 15/20a-20 (TD 11,261 feet) and later the same day the Sedco 704
spudded sidetrack well 15/20a-20z; the current depth is 9,886 feet. BP confirms
the Paul B Loyd Jr continues to operate at TD (11,023 feet) in Clair appraisal
206/12a-4. A round-up of all other drilling is as follows:
BP has the Ensco 101 operating at a TD of 13,815 feet in Marnock/Skua
development well 22/24a-A8. It also has the Byford Dolphin operating in the Don
field, in block 211/18a.
Centrica is drilling Pegasus West appraisal well 43/13b-7 with the Paragon B391.
The well is tight and has been active since mid-July. The operator confirms the rig
will drill a Grove appraisal well next.
Chevron has the GSF Arctic III on Captain. The rig has one more well to drill after
recently completing 13/22a-B30; the rig is with Chevron until October.
ConocoPhillips continues to operate Jasmine well 30/7a-S7 with the Ensco 102. The
Maersk Resilient is operating Joanne 30/7a-M12, while Brodgar development well
21/3a-H3, which spudded back in early-June, is still being operated by the
Transocean Prospect.
EnQuests well workover on Mallard, in block 21/19, is ongoing with the Ocean
Princess. The operation is expected to continue until mid-September.
GDF SUEZ is operating Marconi exploration well 30/1f-13y with the GSF Galaxy II;
the current sidetrack spudded on 16 August. The Ensco 80 is on location on Cygnus
in block 44/12a and is preparing to start a batch-drilling programme.
Ithaca is drilling Stella development well 30/6a-B2z with the Ensco 100. The
plugged 30/6a-B2 well is believed to have been the pilot hole, while B2z is likely to
be the main well penetrating the Stella reservoir.
Maersk Oil, in addition to the already mentioned Balloch appraisal, 15/20a-20z, has
the Sedco 712 abandoning a James development well in central block 30/17a.
For MPX, the Blackford Dolphin is drilling Aragon exploration well 9/14-15a; the
well has been active since mid-July and remains tight.
Nexen has two development wells active, both on Golden Eagle. The Ensco 120 is
drilling 20/1-G2 and 20/1-S1 is being drilled with the Paragon MSS1.
North Sea Reporter 27 August 2014
18
RWE Dea says the Ensco 70 continues with the completion of Breagh development
well 42/13a-A8, which reached a TD of 10,420 feet.
Shell reports the Noble Hans Deul is abandoning Shearwater well 22/30b-A9;
operations started on 6 August. The operator also has the Ocean Guardian
abandoning development well 22/24b-S1z.
Talisman confirms the Sedco 711 remains operating in Seagull exploration well
22/29c-8y, another tight hole.
Total says the West Phoenix is preparing to test Laggan development well 206/1a-
L1x. Meanwhile, the Rowan Gorilla V is conducting clean-up and perforating
operations in Franklin West 29/5b-H1z, while the GSF Galaxy I is abandoning Elgin
22/30c-G1.
Wintershall has the Paragon HZ1 operating in Wingate development well 44/24b-
A4; the last confirmed depth was 11,299 feet.
In Norway, Lundin Petroleum has been granted NPD approval to drill Lindarormen
exploration well 6405/12-1 (PL584) with the Bredford Dolphin following completion
of current Luno II Central appraisal 16/4-8S, which has been in progress since June.
The well will be drilled about 80 km northeast of the Ormen Lange field. Partner
interests in PL584, which also covers blocks 6405/9, 6406/7, 6406/10, 6305/3 and
6306/1, are Lundin (operator) 60% and Bayerngas 40%.
Statoil yesterday (Tuesday) spudded Isfjell exploration well 7220/2-1 (PL714),
about 35 km north of the Johan Castberg discovery, in the Barents Sea, with the
Transocean Spitsbergen, which had previously drilled Pingvin exploration well
7319/12-1 to a depth of 936 metres. The Isfjell well, which has a planned duration
of about 30 days, has reached a depth of 520 metres after 36-inch hole was drilled
to 501 metres. On completion, the rig will return to Ensis exploration well 7125/4-
3, recently suspended at the 9-inch casing. Partner interests in PL714, which also
covers block 7220/3, are Statoil (operator) 50%, Eni 30% and Petoro 20%.
Meanwhile, Statoil has been granted PSA approval to drill appraisal well 25/8-18S
(PL169) with the Transocean Leader. The well, which has a planned duration of 33
days, will be drilled 12 km northwest of the Grane field. Partner interests in PL169,
which also covers block 25/11, are Statoil (operator) 57%, Petoro 30% and
ExxonMobil 13%.
In The Netherlands, GDF SUEZ reports the Paragon C463 is drilling development
well C5 from the K/12-C platform. Elsewhere, the Noble Regina Allen has drilled
12-inch hole to section TD at 4,857 metres in development well L/5-D3 and is
preparing to run 9-inch casing. In exploration well L/10-37, the Paragon C462 has
run and cemented 9-inch casing at 4,889 metres and is drilling ahead in the 8-
inch hole section.
NAM reports the Swift 10 continues operating at a depth of 1.938 metres in
exploration well L/9-FA106.
For ONE, the Paragon C461 is abandoning L/6d after which a pipeline pigging
operation will be carried out. The rig will then return to development well M/7-8.
North Sea Reporter 27 August 2014
19
NW Europe Offshore Drilling Activity 27 August 2014
Well Operator Rig Well Type Spud Status
UK
E&A wells
9/14a-15a MPX Blackford Dolphin Exp Aragon 14.07.14 Drilling
15/20a-20 Maersk Oil Sedco 704 App Balloch 26.07.14 Operating @ TD 11,261ft
15/20a-20z Maersk Oil Sedco 704 App Balloch 22.08.14 Operating @ 9,886ft
22/29c-8y Talisman Sedco 711 Exp Seagull 05.08.14 Operating
30/1f-13y GDF SUEZ GSF Galaxy II Exp Marconi 16.08.14 Drilling
43/13b-7 Centrica Paragon B391 App Pegasus W. 14.07.14 Drilling
53/2a-15 Perenco GSF Monarch Exp Leman South 18.07.14 Drilling
206/12a-4 BP Paul B Loyd Jr App Clair 18.06.14 Operating @TD 11,023ft
Development well
13/22a Chevron GSF Arctic III Dev Captain On location
20/1-G2 Nexen Ensco 120 Dev G. Eagle 22.06.14 Drilling
20/1-S1 Nexen Paragon MSS1 Dev G. Eagle 22.07.14 Drilling
21/3a-H3 ConocoPhillips Trans. Prospect Dev Brodgar 04.06.14 Drilling
21/19 EnQuest Ocean Princess Dev Mallard 18.06.14 Workover
22/6a Apache Rowan Gorilla VII Dev Forties On location
22/17-T27 Talisman Rowan Stavanger Dev Godwin 18.12.13 Rig moved off location
22/24a-A8 BP Ensco 101 Dev Marnock/Skua 14.06.14 Operating @ TD 13,815ft
22/24b-S1z Shell Ocean Guardian
Dev
30.07.14 Abandonment
22/30b-A9 Shell Noble Hans Deul Dev Shearwater 06.08.14 On location
22/30c-G1 Total GSF Galaxy I Dev Elgin 21.05.14 Abandonment
29/5b-H1z Total Rowan Gorilla V Dev W. Franklin 01.05.14 Rig on standby
30/6a-B2z Ithaca Ensco 100 Dev Stella 13.08.14 Drilling
30/7a-M12 ConocoPhillips Maersk Resilient Dev Joanne 15.06.14 Drilling
30/7a-S7 ConocoPhillips Ensco 102 Dev Jasmine 09.07.14 Drilling
30/17a Maersk Oil Sedco 712 Dev James 16.08.14 Well abandonment
39/2 Hess WilHunter Dev Fergus 10.05.13 Well abandonments
42/13a-A8 RWE Dea Ensco 70 Dev Breagh 22.06.14 Completing. TD 10,420ft
44/12a GDF Ensco 80 Dev Cygnus On standby location
44/24b-A4 Wintershall Paragon HZ1 Dev Wingate 04.07.14 Drilling @ 11,299ft
205/26a-8v Premier WilPhoenix Dev Solan 13.05.14 Operating
206/1a-L1z Total West Phoenix Dev Laggan 14.08.14 Installing production tree
210/24a Dana Ocean Nomad Dev On location
210/29a-7 TAQA Trans. John Shaw Dev Cladhan 18.07.14 Operating in 8" hole
211/18a BP Byford Dolphin Dev Don On location
Norway
E&A wells
2/9-5S Det norske Maersk Giant Exp Heimdalsh 21.07.14 Operating
16/4-8S Lundin Bredford Dolphin App Luno 2 Central 19.06.14 Operating
34/6-3S Total Leiv Eiriksson App Garantiana 2 30.05.14 Testing
34/7-36S Det norske Borgland Dolphin Exp Kvitvola 28.07.14 Operating
7220/2-1 Statoil Trans Spitsbergen Exp Isfjell 26.08.14 Drilling @ 520 metres
7220/11-1 Lundin Island Innovator Exp Alta 06.08.14 Drilling
7319/12-1 Statoil Trans Spitsbergen Exp Pingvin 16.08.14 Susp @ 936 metres
North Sea Reporter 27 August 2014
20
NW Europe Offshore Drilling Activity 27 August 2014 (continued)
Well Operator Rig Well Type Spud Status
Norway (continued)
Development wells
2/4-B ConocoPhillips Rowan Norway Dev Ekofisk Operating
2/4-M11A ConocoPhillips Maersk Innovator Dev Ekofisk 13.07.14 Completed 10.08.14
2/4-Z13 ConocoPhillips West Linus Dev Ekofisk 10.07.14 Operating
2/8 BP Maersk Reacher Dev Valhall Operating
7/7-A3AH Lundin Maersk Guardian Dev Brynhild 25.05.14 Operating
15/3-A5A Statoil West Epsilon Dev Gudrun 29.06.14 Completed 14.08.14
15/9-F1C Statoil Maersk Inspirer Dev Volve 22.02.14 Completed 25.03.14
24/9-M2H Marathon Trans Winner Dev Byla 25.06.13 Operating
25/11-H4BH Statoil Songa Delta Dev Svalin 15.04.14 Completed 18.05.14
31/2-E6EY3H Statoil West Venture Dev Troll West 28.05.14 Operating
31/2-N21AY4H Statoil COSLInnovator Dev Troll West 30.07.14 Operating
31/2-Y14BY2H Statoil Stena Don Dev Troll West 03.08.14 Operating
31/5-I13AY1H Statoil COSLPromoter Dev Troll West 11.07.14 Operating
33/12-N1AH Statoil Deepsea Atlantic Dev Gullfaks S 13.05.14 Operating
34/3-A1H BG Trans Searcher Dev Knarr 17.07.13 Completed 08.05.14
34/7-B2AH Statoil Bideford Dolphin Dev Vigdis 30.03.14 Completed 19.04.14
34/8 Statoil COSLPioneer Dev Visund Operating
34/10-I4AH Statoil Songa Dee Dev Gullfaks 04.08.14 Operating
34/11-B2 Statoil West Elara Dev Valemon 21.02.14 Operating
35/11-A31AY2H Statoil Songa Trym Dev Fram 25.05.14 Operating
6407/1-A3AY1H Statoil Transocean Leader Dev Tyrihans 29.05.14 Completed 08.07.14
6407/2-Z4H Statoil Deepsea Bergen Dev sgard 01.05.14 Completed 26.07.14
6407/9 Shell West Navigator Dev Draugen Operating
6507/8-F1AH Statoil Deepsea Bergen Dev Heidrun 04.08.14 Operating
7122/7-F4H Eni Scarabeo 8 Dev Goliat 02.08.14 Operating
Netherlands
F/6-5 Dana Paragon C20052 Exp 07.08.14 Operating
F/14-8 Wintershall Energy Endeavour Exp 07.08.14 Operating
K/12-C2 GDF SUEZ Paragon C463 Dev Completed slot recovery
K/12-C5 GDF SUEZ Paragon C463 Dev Drilling
L/5-D3 GDF SUEZ Noble Regina Allen Dev re-entry 30.05.14 Drilling @ 4,857 metres
L/6d ONE Paragon C461 Dev re-completion Abandoning
L/9-FA106 NAM Swift 10 Exp 10.08.14 Op @ 1,938 metres
L/10-37 GDF SUEZ Paragon C462 Exp 16.06.14 Drilling @ 4,889 metres
Denmark
Chabazite Wintershall Ensco 121 Exp 20.06.14 Operating @ 2,755 metres
Gorm-N4A Maersk Oil Energy Enhancer Dev 07.07.14 Workover
Half-HDA29A Maersk Oil Ensco 71 Dev 30.07.14 Workover
Hejre-HA1 Maersk Oil Maersk Resolve Dev 11.07.14 Drilling
S Arne-SAN7 Hess Maersk Resolute Dev Drilling
Siah NE-1X Maersk Oil Noble Sam Turner Exp Drilling
Tyra SE-B Maersk Oil Ensco 72 Dev Operating
North Sea Reporter 27 August 2014
21
NW Europe: Planned Drilling
UK
Block Operator Rig Type Prospect Spud
9/2b EnQuest Ocean Princess App Kraken 3Q 2014
21/10 Apache Rowan Gorilla VII Exp Les Arcs 3Q/4Q 2014
22/16 GDF SUEZ GSF Galaxy II Exp Dalziel 3Q 2014
15/27a Nexen Exp Ravel 3Q 2014
28/15b Statoil Exp Wall 3Q 2014
29/3b Total Rowan Viking Exp Corfe 3Q 2014
42/15a RWE Dea Ensco 70 App Crosgan 4Q-2014
49/10a Centrica Paragon B391 App Grove 4Q 2014
206/12a BP Paul B Lloyd Jr App Clair 3Q 2014
Norway
1/2-3 ConocoPhillips Maersk Gallant Exp Pelikan 2014
2/4-22S, 22A Statoil Maersk Gallant Exp Romeo September
3/7 Premier Exp Myrhauk 4Q 2014
8/10 Centrica Maersk Guardian Exp Butch E 2H 2014
16/1, 4 Lundin Exp Fignon 4Q 2014
25/5 Total Leiv Eiriksson Exp Greip 2014
25/8-18S Statoil Transocean Leader App 2014
25/8-19S ExxonMobil West Alpha Exp Prince November
25/10-12 Lundin Island Innovator Exp Kopervik November
30/11-10, 10A Statoil Transocean Leader Exp Krafla North/Main September
33/2-1 Lundin Transocean Arctic Exp Storm October
33/9, 12 Lundin Island Innovator Exp Vollgrav South 4Q 2014
34/3-4S BG Transocean Searcher Exp Jordbaer SE 4Q 2014
35/9 RWE Leiv Eiriksson Exp Atlas 3Q 2014
6305/8-2 Shell Transocean Barents App Orm Lange D Far South September
6405/12-1 Statoil Bredford Dolphin Exp Lindarormen September
6406/2-8 Wintershall Transocean Arctic Exp Imsa 2014
6406/6-4 Maersk Leiv Eiriksson Exp Tvillingen South 3Q 2014
6607/12 Total Leiv Eiriksson App Alve North 2014
6707/10-3S Centrica West Navigator Exp Ivory 2H 2014
7227/8, 9, 10 Statoil Exp Saturn October?
International
Petrobras says appraisal well Moita Bonita 3 has confirmed an extension of the gas
and light oil prospect, in Sergipe-Alagoas Basin licence BM-SEAL-10, off Brazil. Well
3-SES-182, the second appraisal, was drilled about 5 km from discovery well Moita
Bonita 1 (1-SES-168), drilled in August 2012. The well encountered a 40-metre thick
reservoir with good permeability and porosity and a subsequent formation test
proved the presence of 41 deg oil and good productivity. Petrobras is sole owner of
BM-SEAL-10.
Mediterranean briefing
Tunisia: Circle Oil has completed drilling the El Mediouni-1 well (EMD-1) in the
offshore Mahdia permit and early indications are the well could be a significant oil
North Sea Reporter 27 August 2014
22
discovery. The well, located in the northern central area of the permit where the
water depth is 240 metres, reached a measured TD of 1,200 metres in Upper
Ketatna carbonates. It came in close to prognosis, with good light oil shows
encountered in a Lower Birsa carbonate, primary target, and Upper Ketatna
carbonates, a secondary target. The combined interval measured around 133
metres. The hydrocarbons found in the Birsa and Ketatna sections confirm the
presence of a working petroleum system in the Mahdia permit and enhance other
nearby prospects. The gross oil zone in the Lower Birsa measured 77 metres and
the Upper Ketatna has a minimum interval of 48 metres. Using known reservoir
and fluid parameters from equivalent formations in the Gulf of Hammamet,
recoverable oil reserves discovered in EMD-1 are estimated around 100 million
barrels. However, during drilling operations severe mud losses occurred and
multiple remedial operations to restore circulation were performed. Nevertheless,
hole conditions in the well deteriorated rapidly and attempts at open hole logging
failed, as a result of which the decision was taken to suspend the well.
Oil price
Seismic
The NPD last week completed, almost a month ahead of schedule, a 5,600-km, 2D
seismic survey in the northern Barents Sea. The survey, which started on 18 July, is
a continuation of the programmes the NPD has undertaken in the southeastern
and northern Barents Sea since 2011. It was carried out by Dolphin Geophysics with
the Artemis Atlantic, which is now in Hammerfest for demobilisation and a crew
change.
Polarcus reports the Polarcus Naila has completed, ahead of schedule, a planned
two-month 3D survey for TGS-Nopec west of Shetland. The complex programme
comprised two individual surveys, each employing a variable depth streamer
spread with a linear gradient from 12 metres to 30 metres. Polarcus says the vessel
is continuing to deliver superior performance since a propulsion upgrade in April.
95.00
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25-Feb 25-Mar 25-Apr 25-May 25-Jun 25-Jul 25-Aug
Brent Oil Price ($)
Average price for last 6 months - $108.25
North Sea Reporter 27 August 2014
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SeaBird Exploration has been awarded a contract, worth an estimated $11 million,
from an unnamed client for a 3D seismic survey in Gulf of Guinea, off West Africa.
The survey, to be carried out with the Geo Pacific, will cover a minimum of 1,450 sq
km. It is expected to start shortly and will have an estimated duration of 78 days.
Licence activity
Atlantic Petroleum is farming out to Repsol 6% of its 15% stake in PL528, covering
blocks 6707/8, 6707/9 and 6707/11 and containing the Ivory prospect, and PL528B,
covering 6707/10, off Norway. Atlantic acquired the interest earlier this year via a
farm-in agreement with Rocksource (NSR 255/32). As a result of the deal, which is
subject to government approval, revised partner interests in both licences will be
Centrica (operator) 40%, Statoil 35%, Rocksource 10%, Atlantic 9% and Repsol 6%.
Companies
ExxonMobil to open data room for Wingate, Netherlands assets
ExxonMobil is seeking to offload its 15.5% interest in the Wingate gasfield, in UK
southern basin block 44/24 and surrounding acreage, held through wholly-owned
subsidiary XTO UK, as well as its entire the shareholding in XTO Netherlands (XTO
NL). The XTO NL portfolio comprises producing assets and a 10.08403% stake in
Noordgastransport (NGT). ExxonMobil plans to open an online data room on 1
September, hosted by Schlumberger, with a competitive tendering process being
held seeking cash bids by 17 October. Offers will be invited for the entire portfolio
or any combination of the elements.
Wingate, which came on stream in October 2011, produces from three wells, with
a fourth, 44/24b-A4, currently being drilled with the Paragon HZ1 and a fifth
planned. Gas is exported via the D/15 platform in The Netherlands and NGT. XTOs
share of output is currently averaging 10,000 cfd. The surrounding acreage includes
the Winchelsea prospect, an exploration in which is planned in 2015.
As well as NGT, XTO NLs assets, all GDF-operated, comprise K/9a, K/9b (7.5%),
K/9c (5.8%), K/12 (5%), L/10 and L/11 (10.1%). Its share of production in the sector
in 2013 averaged 1,400 b/d of oil equivalent. It also has interests in non-producing
block N/7b and prospects, development planning for which is under way.
Applus RTD, the integrity technology services provider, is opening a new office and
test facility in Straume, Bergen, following demand for its non-destructive testing
(NDT) services in the region. The facility, planned to open in October, will provide
in-house and on-site NDT, metallurgic field work and a range of inspection services,
including rig, paint, derrick and hull inspection. Eirik Bjorheim, Applus RTD Norway
manager, says: The organic growth of the company will continue throughout next
year as we also plan to open a base in Hammerfest in February, followed by our
headquarters in Stavanger next summer.
Expro is to invest $40 million in a major new hub in Tanager, Norway, in summer
2015. Europe CIS director Keith Palmer says the move will unify operations that are
North Sea Reporter 27 August 2014
24
currently run across three different sites. The 19,000 sq metre facility, equipped for
100 staff, will comprise a 5,000 sq metre yard and a 10,600 sq metre workshop,
which will be capable of rigging up four well test packages and service a further six
simultaneously. The new base follows a $10 million investment in new equipment
in Norway to service well test projects over the past two years. The new facility will
complement its other offices in Bergen and Haugesund.
NorSea Group, of Norway, is taking over operatorship of Smith Quay and
Embankment in Peterhead. The 10-year agreement with Peterhead Port Authority,
starting on 1 September, adds to the companys existing partnerships with Scottish
ports, including a 15-year lease at South Quay in Montrose and a long-term
agreement with Scrabster Harbour Trust. The announcement follows a merger
earlier this month of NorSea and the UK arm of Danish base and logistics company
Danbor, securing the groups long-term plans to service operators, service
companies and drilling contractors through its offices and warehouses in both
Aberdeen and Montrose.
Peterson company 80:20 Procurement Services has established an operations
facility in Stavanger as part of an ambitious growth strategy. The move is expected
to create up to 20 new jobs, with the company now actively recruiting in the region
for buyers and procurement specialists. 80:20 director Tony Bannon says: 80:20
Procurement Services represents a significant investment within the Norwegian
sector and is part of our long-term strategy to grow the business internationally.
There may also be potential for acquisition as we continue to expand our
Norwegian footprint.
Premier Oil says a higher-than-expected increase in UKCS production fuelled a 7%
rise in first-half 2014 after-tax profits to 104 million ($172.3 million) following a
73.5 million boost from UK tax credits, although pre-tax profits slumped to 30.7
million, from 129.4 million a year earlier. Premier also says it is well funded, with
about 300 million ($497 million) in operating cashflow that it will use to finance its
exploration campaigns, including in Norway and the Falkland Islands. Total first-half
production was up 11%, at 64,900 boed, ahead of expectations, helped by a
resumption of output from the UKCS Kyle field, shut down in December 2011 after
the Banff FPSO lost its anchors and suffered damage in bad weather. However, the
company has left its output target for the year unchanged at 58,000-63,000 boed.
Riverstone Holdings is joining Barclays Natural Resource Investments (BNRI) and
Singapore-based investment company Temasek as an investor in new Norway and
UK-focused E&P company Origo Exploration. Riverstone and BNRI will each
contribute $200 million of funding, while Temasek will provide an additional $125
million. Origo, headquartered in Stavanger, is led by E&P industry veterans Andrew
Armour, Timothy Sullivan, Svein Ilebekk, Kent Hgseth and rjan Gjerde. It is
aiming to acquire acreage in Norway and the UKCS through farm-ins, licensing
rounds and focused M&A activity. It plans to participate in drilling around 25
exploration wells over the next five years.
North Sea Reporter 27 August 2014
25
Safety
Two pilots have been suspended from flying duties and an investigation is under
way after a helicopter landed on the wrong North Sea installation last Friday (22
August). The Bond-operated S-92 aircraft, with one passenger on board, had been
bound for the Nexen-operated Buzzard platform, but instead it made an
unscheduled landing on the jack-up drilling rig Ensco 120, about nine nautical miles
away, which is currently drilling a well on Golden Eagle, also for Nexen. The aircraft
left Aberdeen Airport and made a number of scheduled landings before arriving on
the rig.
DNV GL has established a joint industry project (JIP) to develop a risk-based
maintenance methodology aimed at delivering more effective and cost-efficient
BOP maintenance. Industry partners are invited to attend a kick-off meeting on 25
September in Norway. Several BOP manufacturers, operators, rig owners and
regulators have already joined the JIP.
Shale Gas
IGas Energy has secured a rig to drill the Ellesmere Port exploration well, in NW
England, which is expected to spud before end-year. The well will be a straight
vertical well and the third in a sequence designed to give the company a suite of
results across its licensed areas in the northwest. The second well, drilled at Barton
Moss and completed in the first quarter, is currently being evaluated. IGas says:
The core analysis has started and full results will be available after the 14
th
licence
round applications have been submitted. The exploratory work undertaken to date
together with offset well data has given the company sufficient information to be
able to design an appropriate hydraulic fracture programme for wells in the area.
This will prove invaluable for future planning applications for potential shale wells
and the ability to demonstrate the commerciality of gas extraction from these deep
formations.
Renewables
Funding has been secured to build the first phase of the planned 398 MW Meygen
project, the worlds largest tidal energy array in the Pentland Firth, off Scotland.
The first phase of the project alone will almost double the tidal energy capacity
currently installed in UK waters. The 51 million ($84.5 million) needed for the 6
MW first phase will be partly funded by a 10 million grant from the UK
government, with major funding initiatives also coming from Atlantis Resources,
Scottish Enterprise, Highlands and Islands Enterprise and The Crown Estate.
Construction work on the first four 1.5 MW turbines is expected to begin later this
year, with electricity being provided to the grid by 2016.
Sandbank Offshore Wind, a joint venture between Vattenfall (51%) and
Stadtwerke (49%), has awarded Bladt Industries a turnkey EPCI contract to build
the offshore sub-station for the Sandbank wind farm, off Germany. The sub-station,
comprising a topsides facility weighing about 2,000 tons, including two
North Sea Reporter 27 August 2014
26
transformers and a helideck, and a 1,500t four-legged jacket, is scheduled for sail-
away in second-quarter 2016.
Statoil and Statkraft have awarded Siemens Energy a contract, worth about 500
million ($829 million), including a five-year-service deal, to deliver, install and
commission 67, 6 MW direct-drive wind turbines for the Dudgeon wind farm, off
the UK. Installation is planned to start in early-2017. Partner interests in Dudgeon,
which will have an overall capacity of 402 MW, are Statoil (construction phase
operator) 70% and Statkraft 30%.
People
Cubility: Gunnar Hviding has been appointed chairman and William James Wright
vice-chairman. Hviding was previously president and CEO of Roxar and Crudecorp.
Wright has spent more than three decades in the oil and gas business, most
recently with Schlumberger, where he was vice-president of sales.
Hunting Energy Services: rjan Fryland has been appointed regional manager for
Norway, based initially in Sandnes.
International Marine Contractors Association (IMCA): Chris Baldwin has joined as
a technical adviser following a short secondment from the Royal Navy. He has wide
maritime experience, including DP, AUV and ROV operations, ship and offshore
installation security, competency training, safety auditing and most recently
commercial diving. He is working mainly in IMCAs marine and remote systems and
ROV divisions, acting as secretary for the management committee, as well as
managing the common marine inspection document scheme.
Maersk Training (UK): John Abate has been appointed general manager. He has
held a number of senior management posts, including with retailers John Lewis and
Amazon.
Petrofac: Rijnhard van Tets, an independent director, has been appointed non-
executive chairman, in succession to Norman Murray, who has resigned as
chairman with immediate effect for personal reasons. Murray is a former chairman
of Cairn Energy, from which he joined Petrofac in May 2011.
Conferences, exhibitions
Oceanology international, 3-5 September, Shanghai, China. Inquiries:
www.oichina.com.cn/en/index.html.
2nd East Mediterranean gas conference, 9-10 September, Paphos, Cyprus.
Inquiries: Jesse Reynolds, phone +44 (0)20 7596 5004; email og@ite-events.com.
Subsea engineering & special materials, 1-2 October, Redditch. Subsea production
systems engineering, course, 14-17 October, Aberdeen. Inquiries: email
kel@keltd.co.uk.
North Sea Reporter 27 August 2014
27
Society of Petroleum Engineers annual technical conference and exhibition, 27-29
October, Amsterdam, The Netherlands. Inquiries: www.spe.org/atce/2014.
Offshore energy, 28-29 October, Amsterdam, The Netherlands. Inquiries: Navingo,
Las Palmas Building, Wilhelminakade 302, 3072 AR Rotterdam, The Netherlands;
email oe@offshore-energy.biz; phone +31 (0)10 2092600; http://www.offshore-
energy.biz.
Opito safety and competence conference, 4 November, Abu Dhabi. Inquiries:
www.opito-oscc.com, or email events@bigpartnership.co.uk.
The SPE annual Caspian technical conference and exhibition, 12-14 November,
Astana, Kazakhstan. Inquiries: www.spe.org/events/ctce/2014.
IMCA annual seminar where next for the offshore marine industry, 19-20
November, London. Inquiries: www.imca-int.com or events@imca-int.com.
North Sea Reporter
Published by KL Energy Publishing Ltd
www.klenergypublishing.com
Meg Leitch - Editor
020 7286 6055 Mobile: 07810 072131
Meg.leitch@klenergypublishing.com
John Kendall Rig Market/Exploration Editor
01322 665940 Mobile: 07585 604047
John.kendall@klenergypublishing.com
Meg Chesshyre Contributing Editor
020 8846 9080
Meg.chesshyre@gmail.com
Bill Harris - Freelance Journalist
01224 596487
bill@deskjourno.demon.co.uk
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