World of Oil and Gas
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| EXPLORATION | |||
PGS completes marathon HD/4D survey offshore pre-salt Brazil |
Petrobras and PGS have completed the largest HD/4D project ever acquired. During a series of surveys, PGS flagship Ramform Sovereign produced 21.3 billion seismic traces while sailing a distance equivalent to 3 ½ times around the Earth’s equator, covering some of the largest, most significant offshore oil discoveries of the last 30 years. The mammoth 13,031-sq-km HD/4D program delivers baseline data for future monitoring, for some of the most important Brazilian subsalt oil fields. It began in October 2008 and concluded in July 2012. Accurate positioning and recording of streamer and source positions ensures that the baseline surveys can be matched with future time-lapse surveys, to optimize oil production in decades to come. Over a 45-month period, a vast array of recording equipment was towed behind the ship: Fourteen cables, each 8,100 m long and packed with electronics, were towed in formation, 50 m apart, i.e. in total, 113,400 m of streamer cables (or the distance from Rio de Janeiro to Maceio, along the coast). |
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TGS begins two 3D multi-client surveys onshore Canada |
Through its newly acquired, wholly-owned subsidiary Arcis Seismic Solutions, TGS has begun two 3D multi-client surveys onshore Saskatchewan, Canada, totaling 308 sq km. These high-resolution, wide-aperture surveys are designed to image multiple prospective zones, focusing on illumination of the Bakken and Birdbear light oil plays.The Neptune South 3D project is an expansion of Arcis’ recent activity in the Williston basin, in the prolific Lower Mississippian – Upper Devonian oil fairway. It represents a southern extension of Arcis’ Neptune 3D acquired in North Bakken. |
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India holds back clearances for 52 O&G blocks |
India is holding back clearances for more than a fifth of the exploratory blocks it has auctioned in various rounds since 1999 to domestic and overseas energy explorers, due to defense, environmental and maritime boundary issues. Of the 52 blocks awaiting clearances, 22 are operated by Oil & Natural Gas Corp., 15 by Reliance Industries Ltd., five by BHP Billiton., three by Cairn Energy, two by Santos Ltd. and one, each, by BG Group, BP and ENI. Under nine auction rounds, India has awarded 249 blocks. But so far, discoveries have been made in only 36 blocks. |
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Ukraine selects Exxon Mobil-Shell group to explore Black Sea |
Ukrainian officials have selected a joint bid, led by Exxon Mobil and Shell, for oil and gas exploration in the Black Sea. The bidding group, which also includes Romania’s OMV Petrom and Ukraine’s Nadra Group, was selected over Russia’s Lukoil Holdings. Finds in the Skifska field are adjacent, and geologically similar, to where Exxon Mobil and OMV Petrom are exploring off Romania’s coast, a government official said. Skifska, predominantly a gas field, has reserves of 7.060 to 8.830 Tcf of gas, in 4,920 ft of water. |
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Eni enters Liberia by acquiring offshore block interests |
Eni has signed a sale-and-purchase agreement with Chevron for a 25% interest in the LB 11, LB12 and LB14 blocks offshore Liberia. The blocks are operated by Chevron, extend over 9,560 sq km, and are located on the shelf and continental slope of Liberia in water depths between 0 and 3,000 m. The joint venture is composed of Chevron (45%), Eni (25%) and Oranto Petroleum (30%). Eni has been present in Sub Saharan Africa since the 1960s. Its current operated production in the region is approximately 450,000 boed. |
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UNCONVENTIONALS |
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PEMEX, CHMR partner on new, non-hydraulic shale oil extraction system |
Chimera Energy Corp. (CHMR) has met directly with PEMEX associates in Mexico City, regarding a collaboration for utilizing CHMR’s exothermic non-hydraulic extraction method throughout Latin America. The initial deal between the two companies was publicly announced in mid-August. The non-hydraulic extraction method is a shale oil extraction technology designed to safely and economically replace hydraulic fracturing without negative environmental impacts. The new process uses no water and may be well-suited for exploiting some of the large concentrations of shale oil located throughout Latin America. The MOU precedes a supplemental encompassing agreement. |
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| Shell in talks with InterOil on Papua New Guinea LNG | Royal Dutch Shell is in talks with producer InterOil Corp. that could lead to the Anglo-Dutch energy giant buying into the U.S. firm’s Papua New Guinea exploration license areas, Shell’s two most senior executives said. Papua New Guinea-focused InterOil holds three prospecting licenses onshore the island nation, where early appraisal drilling has revealed vast natural gas reservoirs are located. The firm also plans to build a 9-MMmt/year LNG terminal in Papua New Guinea but will need partners to help cover some of the estimated $6 billion required to build a two-train processing plant. It is currently soliciting interest in the sale of a 25% stake in the LNG project. |
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PRODUCTION |
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| Russia eyes huge hikes in gas, oil production by 2030 | Russia plans to massively increase its shelf gas and oil production by 2030, said President Dmitry Medvedev. Continental shelf gas production is slated to increase to 230 Bcm/year from the current 57 Bcm/year, while shelf oil production is expected to increase to 66.2 MMmt annually from 13 MMmt, said Medvedev. The economic effect from the shelf development program will total 8 trillion rubles ($247 billion) by 2030, he added. |
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| LNG back in production near Hammerfest | Following the ingression of water into the natural gas dryers, which led on July 10 to a temporary shutdown, Statoil’s Melkøya LNG plant northwest of Hammerfest is now back online. The LNG plant was started up again at the end of July/beginning of August and is gradually being returned to full production. Statoil’s share of production from Snøhvit gas field comprises roughly 50,000 boed. Snøhvit is the first petroleum development in the Barents Sea and has no installations above the sea’s surface. Large amounts of natural gas are sent ashore and liquefied at the LNG facility on Melkøya Island, the world’s most northerly, and Europe’s first, export facility for LNG. | ||
| Exxon Mobil doubles daily Bakken output | Exxon Mobil is producing about 32,000 boed from the Bakken shale, doubling its output from when it first entered the area, an executive said. The company has moved into a development phase in the shale, located in North Dakota, Montana and Saskatchewan. The company will buy back $5 billion of its own shares during third-quarter 2012. | ||
BUSINESS |
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| Indian oil firms invest $3 billion in Venezuela | Indian state-run oil companies plan to invest nearly $3 billion in Venezuelan crude oil production projects, as part of efforts to address an energy shortage threatening India’s economic growth. India suffers from shortages of coal, crude oil and natural gas. Its power sector has been crippled by the coal shortage, which has delayed the development of multibillion-dollar projects. In expanding its presence in Venezuela, India is following in the footsteps of rival China, which has become a major importer of Venezuelan crude as part of loans-for-oil agreements. A consortium of state-run Indian companies led by ONGC Videsh Ltd., the overseas investment arm of Oil & Natural Gas Corp., plans to invest an additional $2.2 billion in the Carabobo-1 heavy oil project, the government said. ONGC already holds an 11% stake in Carabobo-1, while state-run Indian Oil Corp. and Oil India Ltd. each hold a 3.5% stake. The Carabobo-1 project, which is still in development phase, is forecast to begin producing about 400,000 bpd of heavy oil by the end of this year. That target is likely to be reached within six to seven years. |
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| Halliburton enhances market presence by acquiring Old School Services | Boots & Coots, a Halliburton business line, has enhanced its pressure control offerings with the acquisition of Old School Services (OSS). The acquisition gives Halliburton the resources to provide operators with the through-tubing equipment required to resolve production challenges faced by the rapidly growing unconventional, horizontal drilling and multi-stage completion markets. OSS has a broad selection of specialty tools for fishing, milling, cleanout and tubing-conveyed perforating services that complement the well intervention services provided by Boots & Coots. |
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| Keppel FELS Brasil wins $950 million in FPSO contracts | Keppel FELS Brasil has secured two contracts worth a total of about $950 million from the Petrobras-led consortiums, Guara BV and Tupi BV, for the fabrication and integration of topside modules on FPSO vessels P-66 and P-69. As part of the agreement, Petrobras has an option for a similar contract to be exercised by first-quarter 2014. The FPSOs will have identical work scopes that include the fabrication and integration of seven topside modules. When completed, P-66 will be deployed to Guara field, while P-69 will work in Tupi field offshore Brazil. Each FPSO will have a production capacity of 150,000 bopd. | ||
REGULATORY AFFAIRS |
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| Chesapeake investigated for anti-trust probe | Chesapeake Energy Corp. said that the U.S. Department of Justice is conducting an anti-trust investigation into its oil and gas leasing activities. The disclosure comes in the wake of a Reuters report in June that said the company may have colluded with rival Encana Corp. while bidding for oil and gas leases in Michigan. Chesapeake said in a quarterly filing with the U.S. Securities and Exchange Commission that the Midwest Field Office of the Department’s Antitrust Division had requested documents from the company for a grand jury investigation of possible violation of anti-trust laws. Chesapeake said it also has received demands from state governmental agencies related to other investigations of its oil and gas rights leases and purchases. | ||
| Total reserves $338 million to settle U.S. probe of Iran business | Oil major Total said it had reserved $338 million to settle a long-running investigation by U.S. authorities into potentially corrupt business practices in Iran. Total said in a regulatory filing that it reserved the funds after settlement discussions “accelerated” with the Department of Justice and the Securities and Exchange Commission in recent weeks. The Paris-based company said the $338 million reflected “the best estimate of potential costs” associated with resolving the probe. The SEC and the Justice Department have been investigating Total’s pursuit of contracts in the early 2000s to develop parts of Iran’s South Pars field, among the world’s largest natural gas fields. The huge sum reserved would be one of the largest-ever settlements under the U.S. Foreign Corrupt Practices Act. The SEC opened its probe in 2003 and the Justice Department followed. Total previously disclosed that the investigation focuses on whether a consultant hired by the company paid bribes on its behalf, in violation of the FCPA, which bars bribery of foreign officials and holds U.S.-listed companies liable for corrupt payments made by third parties. | ||
DISCOVERIES |
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| Petrobras drills deeper in Carcara well, continues to find oil | Brazil’s Petrobras said it has drilled deeper in the Carcara well and confirmed that it continues to find oil. The company first announced the discovery in March, and with its partners has now drilled to a depth of 20,384 ft. Drilling continues, Petrobras said. The company has confirmed an oil column of more than 1,310 ft, with an API gravity of 31°. The deposit is in the BM-S-8 Block off the coasts of Rio de Janeiro and Sao Paulo states. Petrobras operates the block with a 66% stake, while Portugal’s Galp Energia holds 14%. Queiroz Galvao Exploracao e Producao and Barra Energia do Brasil each hold 10% stakes. Potential volumes for the BM-S-8 finds weren’t disclosed, but Brazilian officials have estimated that the so-called pre-salt discoveries could potentially hold as much as 100 billion bbl of oil. Petrobras is investing heavily to tap the reserves, with plans to spend $224.7 billion through 2015. | ||
| ONGC strikes new reserves offshore western India | Oil & Natural Gas Corp., India’s largest explorer, said it has discovered a new pool of reserves in the western offshore. This could help to significantly boost its output at D1 field five times, to 60,000 bopd by March 2014 from 12,500 bopd now. The Mumbai High western offshore area accounts for 70% of the company’s production. ONGC’s local production has been declining for the past five years, as a majority of its producing fields are aging. The firm hasn’t been able to bring any new major field into production. | ||
| Ophir strikes gas offshore Tanzania | Ophir Energy plc announced that the Papa-1 well has made the first Cretaceous gas discovery outboard of the Rufiji Delta in Block 3, offshore Tanzania and is the sixth consecutive discovery by Ophir offshore that country. This is the sixth consecutive gas discovery for the Ophir-BG Joint Venture in Tanzanian offshore Blocks 1, 3 and 4. Based on the preliminary data available, Ophir management estimates 0.5-2.0 Tcf of gas are in-place; detailed core and petrophysical analysis will confirm the scale of the discovered resource. Papa-1 is in Block 3, about 62 mi offshore Tanzania and was drilled by the drillship Deepsea Metro I to a TD of 18,189 ft. | ||
| Crimson hits oil pay at Woodbine well | Crimson Exploration Inc. announced the successful completion of Payne #1H, its sixth horizontal well targeting the Woodbine formation. The Payne well tested at a gross initial production rate of 1,332 boed, or 1,128 bopd, 112 bpd of NGLs and 554 MMcfgd, on a 40/64th choke and 328 psi of tubing pressure. The well was drilled to a TMD of 16,130 ft, including a 7,460-ft lateral, and was completed using 26 stages of fracture stimulation. The well is in Crimson’s Force Area in Madison County, Texas, where the company has approximately 5,975 net acres. Including the Payne well, Crimson has successfully completed three operated wells and one non-operated well in the Force Area with an average IP rate over 1,300 boed, and an initial oil rate of over 1,140 bopd. This area continues to respond positively to longer laterals and perf-and-plug completion techniques. | ||
| Eni’s latest find off Mozambique adds 10 Tcf | Eni announced a new, giant, natural gas discovery in the eastern part of Area 4, offshore Mozambique, at the Mamba North East 2 exploration prospect. This is the fifth exploration well successfully drilled in the area. The new discovery adds at least 10 Tcf of gas-in-place to Area 4, confirming at least 62 Tcf of gas in place already discovered. The resources, located exclusively in Area 4, are at least 20 Tcf-plus of gas-in-place. Mamba North East 2, where Eni will conduct a production test, was drilled in 6,542 ft of water and reached TD at 17,602 ft. The well is about 37 mi off the Capo Delgado coast. The discovery has proved the existence of hydraulic communication with the Oligocene reservoir in Mamba North East 1 and with those of the Eocene age in Mamba North East 1 and Mamba South 1, through a unique gas column of 1,509 ft. Lastly, Mamba North East 2 has identified a new exploration play in the Paleocene, located exclusively in Area 4. | ||
| Ecopetrol reports deepwater discovery in U.S. Gulf | Partner Ecopetrol has provided the results of Apache’s Parmer prospect in the deepwater Gulf of Mexico. Parmer 1 is in Green Canyon 867, at a depth of 18,900 ft, which allowed for several pressure readings and the collection of several fluid samples from Miocene sands. The data indicate a column of approximately 240 ft of net condensate-rich gas pay and 40 ft of net oil pay. | ||
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