NEW DEVELOPMENTS

OGUK calls for action to progress UK carbon capture, storage

Oil and Gas UK, the UK offshore oil and gas sector’s representative body, has released its second Energy Transition Outlook report, calling for urgent action to progress UK carbon capture and storage. The comprehensive report says that government and industry must work together to advance five projects across the UK, which look to capture, transport and store carbon dioxide from heavy-emitting industrial processes. It suggests that the UK’s oil and gas industry is already in a position to lead in developing carbon capture usage and storage; however, its energy sector investment reportedly will need to double, to achieve a decarbonized economy. In a release, OGUK Chief Executive Deirdre Michie said, “With the launch of Roadmap 2035: a blueprint for net zero, we were one of the first industrial sectors to set out credible plans to support the UK and Scottish Government net-zero emissions. Yet the oil and gas sector will have to earn its position in this new energy world, cutting its own emissions and working with governments and regulators to progress the five CCUS projects, which now need to move forward into the next phase and developing hydrogen.”

Shell employs Fugro for first deepwater AUV, geotechnical site survey in Brunei

Fugro has completed the first deepwater AUV site survey for Brunei Shell Petroleum (BSP) Company. In August, the Fugro Equator was deployed in water depths of more than 1,968 ft. The company said that the survey results will provide critical information for engineering and design studies for pipeline routing and subsea structures in the future deepwater field developments. Following the successful site survey, BSP awarded an additional contract to Fugro for the associated geotechnical site investigation. The contract award included a review of the geophysical data and desktop study, which assisted in delineating the company’s geotechnical scope of work. The work reportedly was carried out in October using a dedicated deepwater geotechnical drilling vessel, Fugro Voyager.

Petrofac enters U.S. shale market

Petrofac Limited has entered into a sale-and-purchase agreement with the shareholders of W&W Energy Services. The $22-million acquisition represents Petrofac’s entry into the U.S. shale market. According to the company, the acquisition is in line with its stated strategy to position Engineering & Production Services (EPS) for growth by diversifying into new markets and geographies. “This bolt-on provides a platform to grow EPS using a low-risk reimbursable services model in the U.S. onshore services market. As production volumes, infrastructure support requirements and the activity of major operators rise in the Permian, we are confident that the combination of W&W’s footprint and strong local brand with Petrofac’s Engineering and Modifications capability and global track record can unlock growth,” said John Pearson, COO of E&P services.

ADNOC, Total collaborate on world’s first automated seismic acquisition system

Abu Dhabi National Oil Company (ADNOC) and Total are collaborating on a pilot project in Abu Dhabi, using autonomous drones and a ground vehicle to drop off and retrieve seismic sensors without human intervention. It reportedly is the world’s first automated seismic acquisition system. The project, which is expected to allow lower costs and contribute to onshore exploration and appraisal campaigns, will be performed with Total’s Multiphysics Exploration Technology Integrated System (METIS). “The ultimate purpose of this collaboration is to be able to jointly develop a safer, faster, more efficient and cost-effective acquisition system to acquire 3D and 4D high-resolution seismic images of the subsurface, which can be processed in real time to build a clearer understanding of the subsurface, lowering geoscience and drilling uncertainties and optimizing field production,” explained Khadija Al Daghar, ADNOC V.P. of research and technology development, in a release.

EXPLORATION

Equinor hopes for dry well south of Troll field for potential CO₂ storage

Equinor is drilling an exploration well south of Troll field, in the North Sea, in the hope that it is dry. For the first time, the well’s main objective is to investigate whether the reservoir in the deep Johansen formation is suitable for storage of carbon dioxide (CO₂). The Northern Lights project—consisting of Equinor, Shell and Total—is drilling wildcat well 31/5-7 Eos using the West Hercules rig (pictured). The first well to be drilled in exploitation License 001, the objective of the well is to prove sandstone and the storage potential for CO₂ in the Cook and Johansen geological formations. “If the well proves sandstone with good flow properties, this part of the Johansen formation may be well-suited as a storage facility for CO₂,” explained Wenche Tjelta Johansen, assistant director of exploration. “In Norway, we have lots of experience and good expertise when it comes to safe storage of CO₂ under the seabed.” The Norwegian Petroleum Directorate reportedly has already mapped areas that may be suitable for safe, long-term storage. Estimates showed that, in theory, the reservoir volume on the shelf could accommodate more than 80 billion tons of carbon dioxide, which is equivalent to 1,000 years of Norwegian CO₂ emissions at the current level. Image: Equinor.

Equinor, partners report significant find southwest of Fram field

Equinor Energy AS (45%)—alongside partners Exxon Mobil E&P Norway AS (25%), Idemitsu Petroleum Norge AS (15%) and Neptune Energy Norge AS (15%)—has discovered oil and gas at its Echino South well (35/11-23). The exploration well—situated nearly 2 mi southwest of Fram field, in
the northern North Sea—was drilled by the Deepsea Atlantic rig (pictured) to a vertical depth of over 9,668 ft below sea level, targeting petroleum in the upper Jurassic reservoir of the Sognefjord formation. Because hydrocarbons were proven, a sidetrack reportedly is being drilled to delineate the discovery. According to the companies, recoverable resources are estimated at 38 MMboe to 100 MMboe. The additional North Sea resources likely will be tied back to existing infrastructure. “After more than 50 years of geological surveys on the NCS, we are still learning something new and finding hydrocarbons where we previously thought there were none. By utilizing existing infrastructure, these resources may be recovered at good profitability and with low CO₂ intensity,” Nick Ashton, Equinor’s senior V.P. for exploration in Norway and the UK, said in a release. Image: Odfjell Drilling.

PRODUCTION

Shell increases production in Brazil’s Santos basin

Shell Brasil Petróleo Ltda., alongside consortium partners, has started production at the P-68 FPSO unit, in the Brazilian pre-salt Santos basin. The FPSO, situated in BM-S-11-A Concession in Berbigão, Sururu and West Atapu, can process up to 150,000 bopd and 6 Mcfgd, according to the companies. Operated by Petrobras, the FPSO features ten producing wells and seven injection wells. Additionally, Shell announced that the P-69 FPSO, situated on Lula field, reached peak output levels just over ten months after first production. Consequently, Shell reported that its fourth-quarter oil and gas production in Brazil is expected to be approximately 400,000 boed. The company won several new blocks in the 16th concession deepwater bidding round, bringing its regional portfolio to 2.6 million net acres with 21 exploration blocks, four development fields and 11 production fields. Following exploration activities in the Gato do Mato and Alto do Cabo Frio Oeste Blocks of the Santos basin, the company plans new exploration drilling activity on the Saturno Block next year, also in the Santos basin. Image: Shell.

Exxon to add third FPSO offshore Guyana

Esso E&P Guyana Limited (EEPGL), a subsidiary of Exxon Mobil, has moved forward with plans for a third FPSO offshore Guyana. The company has awarded FEED contracts to SBM Offshore for the deepwater Payara development project, in Guyana’s Stabroek Block. The FPSO, to be named Prosperity, reportedly will utilize a scheme that closely imitates the design of the Liza Unity FPSO. It is based on SBM Offshore’s Fast4Ward program, which incorporates the company’s newbuild, multi-purpose hull, combined with several standardized topsides modules. It will be designed to produce 220,000 boed, as well as associated gas treatment capacity of 400 MMcfd and water injection capacity of 250,000 bpd. It will be spread-moored in a water depth of approximately 6,233 ft, with overall capacity of about 2 MMbbl of crude oil.

Johan Sverdrup seen reversing production decline in Norway

Norway’s third-largest oil field, Johan Sverdrup, is already producing at 350,000 bpd. According to Equinor, it is expected to increase to 440,000 bopd in Phase 1, which is anticipated for next summer. By Phase 2, which is anticipated for 2022, daily production is expected to climb to 660,000 bopd. The company’s flagship project, which started production in early October, has single-handedly reversed the country’s recent output decline. The drop in output has largely been attributed to the region’s aging fields and unplanned outages.  Most notably, there was a lengthy outage from Equinor’s Snorre field earlier this year. After a riser reportedly broke off one of the platforms, the field was shut from March through August. Consequently, output had lagged forecasts in 28 straight months through September, according to Bloomberg. Norway’s giant oil field is not only reversing the production decline, Equinor says that it is creating “economic ripple effects” throughout Norway, where the project will provide revenue and employment to new generations of Norwegians for the next five decades.

OPEC+ deepens, redistributes production cuts

OPEC and its allies have agreed to deepen production cuts further. The group said in early December that it will reduce its output target another 500,000 bopd. Thus, its production cut target reportedly has been increased from 1.2 MMbopd to 1.7 MMbbopd. Before OPEC’s meeting in Vienna, Saudi Energy Minister, Prince Abdulaziz bin Salman, said that his main concern was getting some group members to stop cheating and fulfill their promise to reduce output. “Like religion, if you are a believer, you have to practice. And without practice, you are an unbeliever,” said Prince Abdulaziz. “The market will have to trust us. The analysts will have to believe us.” Accordingly, the alliance agreed to redistribute production cuts between its members following pressure from Saudi Arabia, which has long carried the bulk of the burden. According to Russian Minister Alexander Novak, the adjusted quota reduction will only apply through first-quarter 2020. OPEC will then hold another meeting in March to discuss its next steps.