What's new in production

	Vol. 229 No. 7
VICTOR SCHMIDT, DRILLING ENGINEERING EDITOR, schmidtv@worldoil.com

OPEC changes

High oil demand across the globe is depleting existing fields and forcing producers to expand field development programs. Producers are feeling the strain, and occasionally one must leave the Organization of Petroleum Exporting Countries (OPEC). This is Indonesia’s situation. According to Energy Minister Purnomo Yusgiantoro, Indonesia will quit OPEC at the end of 2008, due to declining production. It is producing less than 1 million bopd and has had difficulty getting oil company investment to develop new fields. Other countries have experienced this change: Ecuador left OPEC 1992, followed by Gabon in 1994; however, Ecuador rejoined in 2007.

While Indonesia leaves OPEC, another country is considering joining. Brazil’s discoveries and production expansion are the reasons. Petrobras claims that discoveries at Bem-te-vi, Carioca, Jupiter and Tupi Fields bring its reserves up to 11.7 million bbl, giving the state-controlled company the fourth largest oil reserves. Present production is over 2 million bopd and the company intends to grow capacity to over 4 million bopd by 2015. To support this effort, the company will add 40 drillships and semisubmersibles by 2017 along with 146 support vessels to service the expanded fleet.

OPEC pumped over 32 million bopd in May, according to a recent industry survey. This was a 370,000 bpd increase over April, and was led by Saudi Arabia, whose output rose 140,000 bopd to over 9 million bopd. Iraq continued to increase production, nearing almost 2.5 million bopd.

PROJECTS

Flex LNG Ltd. is joining with Mitsubishi Corp. and Peak Petroleum Industries Nigeria Ltd. to jointly develop and market the world’s first floating liquefaction project offshore Nigeria. The companies plan to deliver their first LNG shipload in late 2011.

Total S.A. began Usan Field development, offshore Nigeria. The field is scheduled to come on stream in 2012 and produce 180,000 bopd. Elf Petroleum Nigeria Ltd. will operate the field with partners Nigerian National Petroleum Co., Chevron Nigeria, Esso Exploration and Production Nigeria Offshore East.

Shell has completed the main construction on the Perdido spar, which will be moored Block 857, Alaminos Canyon, Gulf of Mexico in 8,000-ft water depth some 220 mi from Galveston, Texas. The spar is being towed on a barge from Pori, Finland, to Ingleside, Texas, where it will be outfitted. The facility will control 22 wells and process up to 130,000 boepd. Shell is operator with 35% along with partners BP (27.5%) and Chevron (37.5%).

Shell Exploration NZ Ltd. completed Pohokura Field offshore from New Plymouth, New Zealand. The field is reported to have estimated reserves of 739.5 Bcf of gas and 44 million bbl of condensate. Shell is operator at 48% with partners Todd Energy (26%) and OMV (26%).

Origin Energy (operator with 50%) tested three Kupe Field production wells. The field is in PML 38146 in the Taranaki Basin, offshore New Zealand. The wells tested a combined flow of over 115 MMcfd of gas and 15,000 bpd of condensate, and are presently shut in. Origin expects to complete Kupe Field development next summer. Partners include Genesis Energy with 31%, New Zealand Oil & Gas at 15% and Mitsui E&P New Zealand with 4%.

MOORING RECORD

Murphy Sabah Oil Co. with partner Petronas Carigali established a new deepwater mooring record on the Buntal exploration well offshore Sabah, Malaysia. Two 10-metric ton anchors were set in over 8,000-ft water depth to secure Diamond Offshore’s Ocean Rover semisubmersible. The deepest leg of the eight-leg mooring system reached 8,431 ft.

NEW OUTPUT

PA Resources added new production from Didon Field, offshore Tunisia. Well Didon 7 is now producing 12,500 bopd. The well has a 98-ft oil column and was completed with a 1,640-ft lateral in the two upper reservoir layers at 8,905 ft.

Gulf of Suez Petroleum Co. (GUPCO) began producing oil from Saqqara Field and will be increasing production to 30,000 bopd. The field is in the Gulf of Suez almost eight miles offshore. It was developed with four wells that produce to an unmanned platform and connect by pipeline to a processing plant onshore at Ras Shukeir on the coast. GUPCO is a joint venture between Egyptian General Petroleum Corp. and BP.

BP started producing from a single Thunder Horse Field well in the GOM 150 mi southeast of New Orleans to begin the commissioning process. Once it reaches full capacity, the field will produce 250,000 bopd and 200 MMcfd of gas. The field start was delayed three years by damage from Hurricane Dennis in July 2005. BP is operator with 75% and Exxon Mobil Corp. holds 25%.

Total began producing gas from Jura field in UK North Sea Block 3/15 about 275 mi northeast of Aberdeen in 370-ft water depth. The HPHT field has proved and probable reserves of 170 million boe. Production will be ramped up to an anticipated 229.5 MMcfd, which will yield 6,000 bpd of liquids. The field has two subsea wells connected to the Forvie North subsea manifold, from which it flows to Alwyn North platform.

Afren plc began producing to an FPSO from Okoro Setu Field in OML 112, offshore Nigeria. Two wells are producing 3,000 bpd of 27 °API oil. Full production of 15,000 bopd is expected later this year after additional wells are drilled. Afren is operator with partner Amni International Petroleum Development Co.

Pioneer Natural Resources Co. (PNR) began producing at about 2,000 bopd from the Oooguruk Unit on the North Slope of Alaska. The operator will ramp up to around 20,000 bopd by 2011 after 20 producers and 20 injector wells are drilled. The Beaufort Sea offshore field is developed on a man-made gravel island in five-foot water depth. The island is some five miles out from shore about 154 mi southeast of Barrow. PNR is operator with 70% and Eni owns 30%.

Marathon Petroleum Norge AS started Alvheim Field offshore Norway in PL 203, 088BS and 036C. Production is to an FPSO with 120,000 bopd and 125 MMcfd capacity. The field is some 140 mi from Stavanger, Norway, in about 400-ft water depth. The field includes four drill centers with associated flow lines. Oil is shipped to shore by shuttle tanker, and natural gas flows to the SAGE system. Marathon is operator (65%) with partners ConocoPhillips Skandinavia AS (20%) and Lundin Norway AS (15%).