Industry News

HIGHLIGHTS

28

SLB shoots survey offshore Australia 31

CGG wins OBN contract in Nile Delta 35

Searcher adds Indonesia to subsurface database

TGS swoops to buy ION Geophysical’s multi-client business and Magseis Fairfield

TGS has announced a triple swoop of acquisitions: ION Geophysical’s multi-client and processing businesses, Magseis Fairfield and the software provider Prediktor.

ION’s assets were auctioned after the company filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the Southern District of Texas.

TGS will acquire all of ION’s global offshore multi-client data library and ION’s data processing and imaging capabilities and intellectual property. ION’s data library consists of more than 637,000 km of 2D and more than 317,000 km2 of 3D multi-client seismic data in major offshore petroleum provinces globally. The revenues associated with the acquired assets were in excess of $86 million in 2021. TGS said that it intends to employ a number of the ION employees associated with the acquired business.

TGS expects to close the transaction early in the third quarter.

Kristian Johansen, CEO of TGS, said: ‘We are now uniquely positioned in the traditional multi-client business, converted contracts, production seismic and 4D – all supported by a strengthened data processing business.’

TGS will fund the transaction from its current cash holding.

Meanwhile, TGS has agreed to buy Magseis Fairfield after putting forward a voluntary exchange offer to acquire all shares of Magseis in the form of 0.0426 ordinary shares of TGS and NOK 2.30 ($0.23) in cash per Magseis share. Based on the closing price of TGS on 28 June 2022, the value of the offer consideration is equal to NOK 8.6048 ($0.85) per Magseis share, and the offer values the total issued share capital of Magseis at approximately NOK 2.333 billion ($231 million).

The board of directors of Magseis has unanimously recommended the offer. Magseis shareholders, including the largest shareholder, Fairfield MS, LLC, and members of the Magseis Board and management, who collectively own 33.4% of the outstanding share capital of Magseis, have accepted the offer.

The offer represents a premium of 53.7% compared to the closing price of the Magseis shares of NOK 5.60 ($0.56) on 28 June 2022.

‘With a strengthening focus on costs and cycle times in the exploration and production of oil and gas, an increasing amount of demand of geophysical data is driven by infrastructure-led exploration (ILX) and production monitoring (4D seismic). Combining Magseis’s leading position in the ocean bottom node (OBN) market with TGS’s multi-client and data processing capabilities creates a unique offering of superior quality products and services across the value chain,’ said Johansen.

Carel Hooijkaas, CEO of Magseis, said: ‘The seismic industry is undergoing a significant transformation brought about by fundamental structural challenges facing the industry. Adapting to these changes via consolidation will be beneficial to our investors and customers. The combined company will be a leading integrated seismic provider with a bestin-class OBN technology and track-record, strong data processing capabilities, and a multi-client business with a large customer base for the company’s operations and a truly global geographical footprint.’

Finally, TGS has acquired Prediktor, an asset management and real-time data management solutions provider. Prediktor’s software and systems are being utilized on: Benban (Egypt), the world’s

Kristian Johansen, CEO of TGS.

largest PV solar plant, built in 2019; Dogger Bank (UK), the world’s largest offshore wind farm, currently under construction; and Johan Sverdrup oil field (Norway), one of the world’s largest offshore oil and gas assets developed in recent times.

Based in Fredrikstad, Norway, with 40 employees, Prediktor currently supports 7 GW of renewable energy assets (mainly PV solar).

Johansen said: ‘In February 2021, we introduced our New Energy Solutions initiative, which provides data and insights for industries actively contributing to reducing greenhouse gas emissions. Since then, we have launched several organically developed data-driven solutions for offshore wind, geothermal energy and carbon storage, as well as acquired offshore wind market intelligence provider 4C Offshore. Prediktor will become another important building block for realizing our vision of creating an energy industry gateway providing integrated solutions for data and actionable insights to facilitate decision making, project development and asset performance management across energy project life cycles and markets.’

Espen Krogh, CEO of Prediktor said: ‘We are currently in a phase of industrial energy asset-building of wind and solar assets at a vast global scale. Prediktor’s biggest challenge is the ability to scale fast enough in all our business processes to deliver to our clients’ ambitious pipeline. In TGS, we see the vision, resources, culture and infrastructure to meet this challenge.’

TGS expects net revenues for Q2 2022 to be £230 million, compared to $72 million in Q2 2021. Kristian Johansen, said: ‘The second quarter of 2022 was another solid quarter with late sales of close to $100 million, driven by a further improvement of activity in frontier areas and transfer fees. With a quarter-end cash balance of approximately $255 million in addition to an undrawn revolving credit facility of $100 million, we have a solid financial position that can comfortably fund the recently announced M&A transactions.’

PGS reprocesses data offshore Uruguay

PGS has completed an 11,600 km reprocessing project offshore Uruguay covering the 2nd Uruguay Licensing Round, scheduled for November 2022.

The reprocessed 2D volume covers the great extension of Uruguay’s shallow and deepwater provinces, with ties to 15,600 km2 3D GeoStreamer data. Notable improvements in data quality are visible across the basin, said PGS.

Increased resolution reveals mini basins in the shallow water areas, and confirms sizable amplitude leads in the deepwater. A better understanding of the petroleum system is now possible, by identifying the distribution of the source rocks, seal and trap mechanisms of the reservoirs, PGS added.

The company has rejuvenated datasets from the 1970s through to 2011, using a broadband pre-processing flow and modern depth velocity model building, with imaging benefiting from PGS’ hyperBeam tomography and Kirchhoff pre-stack depth migration.

‘As the recent discoveries of Graff and Venus in Namibia Orange Basin highlight, across the conjugate margin, better-quality data can support a re-assessment of Uru-

Ramform Vanguard is acquiring data offshore West Africa.

guay’s potential related to different play levels and locations,’ said PGS.

Meanwhile, PGS has won an acquisition contract over the Smeaheia carbon storage site in the North Sea, operated by Equinor. Acquisition is scheduled to start this month and complete in September. PGS acquired data for the Northern Lights JV, which includes Equinor, earlier this year.

Finally, PGS has won a contract to shoot several 4D surveys for an international oil company offshore West Africa. Acquisition is scheduled to start early November 2022 and is expected to complete in early May 2023. The contract award secures work for the vessel Ramform Vanguard until the summer season.

US launches oil and gas leasing plan for next five years

The US Department of the Interior (DOI) has put its oil and gas leasing programme for 2023-2028 out to public consultation.

The programme includes ten potential lease sales in the Gulf of Mexico (GoM) and an option for one potential lease sale in the northern portion of the Cook Inlet of Alaska. No lease sales are proposed for the other Alaska planning areas, nor for the Atlantic or Pacific planning areas during the five-year period.

The plan puts forward several options from no lease sales up to 11 lease sales over the next five years.

Secretary of the Interior Deb Haaland said: ‘The DPP released in 2018 by the previous administration proposed 47 lease sales across 25 of 26 OCS planning areas. Under the Proposed Programme, the secretary significantly narrowed the area considered for leasing to the Gulf of Mexico and Cook Inlet, where there is existing production and infrastructure.’

After the public consultation period, the US Bureau of Ocean Energy Management will prepare a proposed final programme and analysis of the size, timing, location, and number of potential lease sales.

Global recoverable oil resources dip by 9%, says Rystad

Rystad Energy analysis shows that global recoverable oil now totals an estimated 1572 billion barrels, a drop of almost 9% since last year and 152 billion fewer barrels than 2021’s total.

The drop in reserves is driven by the 30 billion barrels of oil produced last year, plus a significant reduction in undiscovered resources, to the tune of 120 billion barrels. The US offshore sector accounts for the largest drop, where 20 billion barrels of oil are expected to remain in the ground, largely thanks to leasing bans on federal land.

Of the 1572 billion barrels of technically recoverable oil, only about 1200 billion barrels are likely to be economically viable before 2100 at $50 per barrel. This economically extractable oil would contribute about 0.1°C of additional global warming by 2050, and somewhat less by 2100 thanks to natural carbon sinks.

‘While the drop in oil availability is positive news for the environment, it may threaten to further destabilize an already precarious energy landscape. We need more of everything to meet the growing demand for transport and any action to curb supply will quickly backfire on pump prices worldwide, including large producers such as the US. Politicians and investors can find success by targeting energy consumption, encouraging electrification of the transport sector and drastically improving fuel efficiency,’ said Per Magnus Nysveen, Rystad Energy’s head of analysis.

Rystad Energy has updated its estimates for total undiscovered oil from 1 trillion barrels in 2018 to 350 billion barrels, due to a rapid collapse in investor appetite for exploration exposure, leading to fewer government leases.

All OPEC countries have proven reserves that are expected to last over 10 years, ranging from Iraq with just over 10 years to more than 14 years in Saudi Arabia. In non-OPEC member countries, Mexico ranks last among individual countries with fewer than five years of proven reserves, whereas Canada’s reserves are projected to last almost 20 years.

Saudi Arabia holds the most recoverable oil reserves with 275 billion barrels, followed by the US with 193 billion barrels. Russia with 137 billion barrels, Canada with 118 billion barrels and Iraq with 105 billion barrels.

In South America Brazil remains in first place, with 71 billion barrels of recoverable oil, ten times the volume of proven reserves, but down four billion barrels from last year. In Europe, both the UK and Norway’s recoverable volumes have fallen by one billion barrels and now stand at 10 billion and 17 billion barrels respectively.

Bucking the trend of most countries losing oil resources this year, the US added 8 billion barrels to its discovered resources.

CGG wins contract extension from Petrobras for seismic services

CGG has won a four-year contract extension with Petrobras for its reservoir services centre in Rio de Janeiro, Brazil. Its in-house team of reservoir characterization specialists have worked closely with Petrobras for the last 15 years, supporting its asset teams in optimizing the value of its seismic data and resolving complex geophysical challenges present in Brazil’s pre-salt and post-salt fields.

The company will continue to provide its reservoir characterization workflows, such as geostatistical, 4D and azimuthal inversion, while also bringing new technologies to further enhance reservoir understanding. These include its EBPetro and EBMatch ensemble-based petrophysical inversion and history matching, machine learning-augmented rock physics workflows, PP-PS inversion and joint azimuthal inversion of amplitudes and velocities.

Global emissions rise but renewable energy increases too, says BP Review of Energy

Global energy demand increased by 5.8% in 2021, exceeding 2019 levels by 1.3%, according to BP’s Statistical Review of World Energy.

Between 2019 and 2021, renewable energy increased by more than 8 EJ. Consumption of fossil fuels was broadly unchanged. Fossil fuels accounted for 82% of primary energy use last year, down from 83% in 2019 and 85% five years ago.

Carbon dioxide emissions from energy use, industrial processes, flaring and methane (in carbon dioxide equivalent) rose 5.7% in 2021 to 39.0 GtCO2e, with carbon dioxide emissions from energy rising 5.9% to 33.9 GtCO2, close to 2019 levels. Carbon dioxide emissions from flaring and emissions from methane and industrial processes rose more modestly by 2.9% and 4.6% respectively

Oil prices averaged $70.91/bbl in 2021, the second highest level since 2015.

Oil consumption increased by 5.3 million barrels per day (b/d) in 2021 but

remained 3.7 million b/d below 2019 levels. Regionally, most of the growth took place in the US (1.5 million b/d), China (1.3 million b/d) and the EU (570,000 b/d). Global oil production increased by 1.4 million b/d in 2021, with OPEC+ accounting for more than three-quarters of the increase. Among all countries, Libya (840,000 b/d), Iran (540,000 b/d) and Canada (300,000 b/d) saw the largest increases. Nigeria (-200,000 b/d), the UK (-170,000 b/d) and Angola (-150,000 b/d) reported the biggest declines.

Global natural gas demand grew 5.3% in 2021, recovering above pre-pandemic 2019 levels and crossing the 4 Tcm mark for the first time. Its share in primary energy in 2021 was unchanged from the previous year at 24%.

Coal consumption grew by more than 6% in 2021 to 160 EJ, slightly above 2019 levels and its highest level since 2014. China and India accounted for more than 70% of the growth in coal demand in 2021, increasing by 3.7 and 2.7 EJ, respectively. Global production matched consumption with an increase in supply of 440 Mt. China and India accounted for much of the increase in production, which was largely consumed domestically, as well as Indonesia, supporting higher exports. Notably, both Europe and North America showed an increase in coal consumption in 2021 after nearly 10 years of back-to-back declines

Renewable primary energy (including biofuels but excluding hydro) increased by around 5.1 EJ in 2021 – corresponding to an annual growth rate of 15%, stronger than the previous year’s 9%, and higher than that of any other fuel in 2021. Solar and wind capacity continued to grow rapidly in 2021, increasing by 226 GW, close to the record increase of 236 GW seen in 2020. China remained the main driver of solar and wind capacity growth last year, accounting for about 36% and 40% of the global capacity additions, respectively. Nuclear generation increased by 4.2% – the strongest increase since 2004 – led by China.

Electricity generation increased by 6.2% in 2021. Wind and solar reached a 10.2% share of power generation in 2021, the first time wind and solar power have provided more than 10% of global power and surpassing the contribution of nuclear energy. Coal remained the dominant fuel for power generation in 2021, with its share increasing to 36%, up from 35.1% in 2020. Natural gas in power generation increased by 2.6% in 2021, although its share decreased from 23.7% in 2020 to 22.9% in 2021.

The price of cobalt increased 63% in 2021 to average $51,000/ tonne. Similarly, lithium carbonate prices rose 58% to average $11,000/tonne. So far in 2022, mineral prices have continued to surge. Lithium production rose sharply by 27%, cobalt output was up by only 4%.

Spencer Dale, chief economist at BP, said: ‘In many ways, this sharp rebound in energy demand is a sign of global success, driven by a rapid recovery in economic activity as the widespread distribution of effective vaccines allowed for an easing in COVID-19 restrictions in many parts of the world and a return to our everyday lives. But it also highlights that the pronounced dip in carbon emissions in 2020 was only temporary: carbon equivalent emissions from energy (including methane), industrial processes, and flaring increased by 5.7% last year. Encouragingly, renewable energy, led by wind and solar power, continued to grow strongly and now accounts for 13% of total power generation. Renewable generation increased by almost 17% in 2021 and accounted for over half of the increase in global power generation over the past two years. The low-carbon energy sources and technologies needed to achieve a fast and deep decarbonization exist today – wind and solar power, biofuels, blue and green hydrogen, CCUS (carbon capture, use and storage), and carbon dioxide removals. The challenge is to apply them at unprecedented pace and scale.’

Spencer Dale, chief economist at BP.

UK launches first carbon storage licensing round

The UK North Sea Transition Authority (NSTA) has launched the country’s first carbon storage licensing round with 13 areas available.

The new carbon storage areas, alongside the six licences which have been issued previously, aim to meet the UK’s

target of storing 20-30 million tonnes of carbon dioxide (CO2) in four carbon storage clusters by 2030.

The areas being offered for licensing are off the coast of Aberdeen, Teesside, Liverpool and Lincolnshire in the Southern North Sea, Central North Sea, Northern North Sea, and East Irish Sea and are made up of a mixture of saline aquifers and depleted oil and gas field storage opportunities.

This round is envisaged to be the first of many as it is estimated that as many as 100 CO2 stores could be required in order to meet the net zero by 2050 target, said the NSTA which added that it had launched the carbon storage licensing round in response to ‘unprecedented levels of interest from companies eager to enter the market’.

‘The areas on offer have a combination of attributes such as the right geological conditions, proximity to existing infrastructure which may be able to be re-purposed, and links to industrial clusters which are looking to carbon storage to help meet their decarbonisation goals,’ said the NSTA.

In choosing suitable areas to make available for licensing, the NSTA fully considered issues including co-location with offshore wind – whether there are any known challenges and mitigations around existing or future offshore wind developments – environmental issues and potential overlaps with existing or future petroleum licences.

There are currently six carbon storage licences on the UK Continental Shelf which could meet up to one-fifth of storage needs, if they reach their maximum potential of up to 40 million tonnes per annum (MTPA) injection rates by the mid-2030s.

Deadline for applications is 13 September and licences are expected to be awarded in early 2023. First injection of CO2 could come as early as four to six years after the licence award, said the NSTA.

Andy Samuel, NSTA chief executive, said: ‘Carbon storage is going to be needed across the world. There is growing investor appetite and we are keen to accelerate development of the carbon storage sector so that UK is well positioned to be a global leader.

‘The NSTA is ready to work with industry, government, regulators and others to deliver these exciting projects at pace.’

Andy Samuel, NSTA chief executive.

Maintenance spending on renewables will rival fossil fuels by end of decade, says Rystad

The maintenance, modification and operations (MMO) market for the renewable and low-carbon energy industries is set to soar by the end of the decade and approach $250 billion, says Rystad Energy.

Its research shows that annual MMO spending, including in oil and gas, will surpass $600 billion in 2030, up from $367 billion in 2019, before the Covid-19 pandemic. Out of that spending, the MMO market for renewables and low-carbon energy is set to almost quadruple from $63 billion in 2019 to $244 billion in 2030.

In 2019, 82% of global MMO spending will be related to fossil fuel industries, with 82% of total expenditure originating from the oil and gas industry. By 2030, that total will drop to only 60%.

‘With the rapid adoption of renewable and low-carbon energy infrastructure expected by the end of the decade, there will be ample opportunities for MMO players to take advantage. The suppliers who can adapt quickly and service the maintenance needs of these growing industries will be in pole position to seize a significant portion of this expenditure towards 2030,’ said Ulrik Eriksen, energy services analyst with Rystad Energy.

Combined MMO expenditure in the oil and gas industry is forecast to jump from $303 billion in 2019 to $364 billion in 2030. However, total non-fossil fuel MMO expenditure is projected to surge by 2030. The maintenance market in the solar industry is expected to be worth $64 billion in 2030, up from only $12 billion in 2021. Onshore and offshore wind markets’ spending on MMO will hit a combined $143 billion by the end of the decade, compared to a combined total of $39 billion in 2021.

The CCS industry is expected to spend close to $7 billion on MMO in 2030, up from $1 billion in 2021, while the comparatively small geothermal sector will reach $1.6 billion in maintenance expenditure by the turn of the decade.

Regionally, the main driver of global growth will be Asia, including China. MMO spending in the region is expected to grow rapidly from $35 billion in 2021 to $125 billion in 2030, more than half the global market value. Expenditure in North America in 2030 is projected to be $37 billion, while the European market will top $53 billion.

SLB sets out details of 3D survey, offshore Western Australia

Schlumberger Australia has set out its plans to acquire the Bonaparte Multiclient 3D survey in the Bonaparte Basin, offshore Western Australia.

The survey is expected to start as early as September 2022 and will be completed before 30 June 2024. It is estimated that it will take between approx. 120 to 190 days to acquire 12,000 km2 .

The operational area for the survey is ~200 km north of Port Warrender and Kulumburu, Western Australia, and ~175 km northeast of Ashmore Island and comprises water depths in the order of 20-200 m. The operational area is ~26,000 km2, with approx. 50% of the total area constituting water depths >100 m deep.

The proposed seismic survey will comprise a single seismic vessel towing up to 12 seismic streamers with 120 m spacing up to 8 km long, at a speed of approx. 4-5 knots (7-9 km/h). The acoustic source will have an effective volume of up to 3000 in3 and will comprise two sub-arrays, with 13 acoustic sources per sub-array (26 in total).

Some 50% of the survey area constitutes depth to seabed of greater than 100 m. To support effective delivery of the seismic survey, seismic source testing (e.g., bubble tests) will also occur within the acquisition area.

There will be one support vessel and one chase vessel accompanying the seismic vessel. The role of the support vessel and chase vessel is to manage any possible interactions between the seismic vessel, the seismic array (acoustic source and streamers), and other vessels, receptors or activities occurring in the area.

SLB will acquire 12,000 km2 of data offshore West Australia.

CGG launches cloud solutions business

CGG has launched an HPC & Cloud Solutions business, under the leadership of Agnès Boudot.

Over her 30-year career, Boudot has gained experience in various areas of IT, and specifically HPC, storage & media, and visualization. Before joining CGG, she led the global HPC, artificial intelligence and quantum business line at Atos, growing this business over the last five years.

Sophie Zurquiyah, CGG CEO, said: ‘The HPC and cloud solutions markets offer CGG significant and immediate business opportunities that capitalize on our well-established HPC and cloud computing strengths.’

CGG’s HPC & Cloud Solutions business will be consolidated into the Data, Digital & Energy Transition (DDE) reporting segment under Geoscience (GEO).

ION Geophysical completes reprocessing and reimaging offshore Mauritania

ION Geophysical has completed the reprocessing and reimaging of approximately 19,100 km² of 3D seismic data offshore Mauritania, West Africa. The multi-client programme was undertaken through an exclusive agreement with the Ministry of Petroleum, Energy and Mines in Mauritania. It is comprised of 11 vintage seismic surveys and provides a seamless, modern, high-resolution data set spanning the Mauritanian offshore coastal basin. This basin is a key part of the frontier MSGBC basin in which several large-scale, offshore, gas fields have been discovered, with an estimated 63 trillion cubic feet (Tcf) in place in Mauritania thus far.

‘The MSGBC basin has become one that matters in the global oil and gas landscape, even if it is still today a frontier area. We have an enormous potential and we must find the right solutions to use these resources for the development of the country,’ said Chemsdine Sow Deina, exploration director at Societe Mauritanienne des Hydrocarbures (SMH).

Chris Usher, president and CEO if ION Geophysical said: ‘We anticipate additional discoveries will be made that ensure Mauritania’s long-term energy security, as well as exports that fund sustainable economic growth and development.’

The Mauritania 3D reprocessing programme almost triples the amount of 3D data that ION has delivered this year from approximately 10,000 km2 to 29,000 km2 . Final pre-stack depth images have been delivered.

Wind investments set to double to $100 billion by 2030, says Rystad.

Installations and investments in the global offshore wind industry are projected to more than double from $46 billion in 2021 to $102 billion in 2030, Rystad Energy research shows.

Capital expenditure in Europe in 2030 is forecast to approach $53 billion, up from $15 billion last year. The Americas region is projected to spend $3.3 billion this year, up from $700 million last year, and rise further to almost $15 billion by 2030.

China has been a major player in the offshore wind market to date, but the powerhouse’s investments are set to slow as we approach the 2030s. In 2020, China invested almost $25 billion, double what Europe spent in that year, but the country’s total expenditure is forecast to gradually decline to a comparatively small $7.7 billion in 2030.

‘The offshore wind industry is set for substantial growth this decade, with more than 265 gigawatts of operational capacity expected by 2030. As the world moves towards a greener energy mix, investments in the offshore wind sector are set to soar and provide ample opportunities for suppliers to cash in,’ said Anubhav Venkatesh, offshore wind analyst with Rystad Energy.

With more than 26 GW of operational capacity, Europe represents more than 50% of the global total. The continent is expected to have an installed base of more than 57 GW by 2026 when Danish giant Orsted is expected to remain the region’s leading offshore wind developer.

More than 8500 turbines are expected to be operational in Europe by 2026.

Asia, excluding China, and the US, relatively new regions to the offshore wind market, are expected to commission their first large-scale projects in 2022 and 2024. The US is set for a wave of project commissioning towards 2030 as it targets 30 GW of operational offshore wind capacity, although the country is likely to fall short and install only around 21 GW, says Rystad. The Biden-Harris Administration has accelerated lease sales in the US, with eight leases being sold so far this year and the final sale notice for another five released towards the end of May.

TGS reprocesses Central North Sea data

TGS has launched a seismic reprocessing project in the Western Margins of the Central North Sea.

It is reprocessing 3500 km2 of data in the Greater Catcher Area covering quads 21, 28, and 29 of the North Sea on the margins of the UK Central Graben. Acquired in 2011 and 2012, the original data will be reprocessed through a fully comprehensive broadband PSTM processing flow, focused on maintaining the AVO character of the data to allow for an inversion-based quantitative interpretation (QI) workflow to follow.

Highlights of the flow include TGS’ leading inversion-based deghosting technique, comprehensive shallow water demultiple routines, and a high-fidelity migration algorithm to provide the robust AVO-compliant regional benchmark dataset for the innovative interpretation and inversion workflow.

This data and interpretative QI output, combined with TGS’ existing seismic coverage in the area, will augment understanding of the subsurface. This insight will enable the targeting of prolific Tay sandstone reservoirs with a view to future development in an area with excellent prospectivity and infrastructure-led exploration (ILX) opportunities, said TGS.

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Thirty five wells to be drilled offshore Norway this year, says Westwood

Some 2.5 bnboe of oil is being targeted in Norwegian waters this year.

Exploration on the Norwegian Continental Shelf will remain buoyant with 35 exploration wells, targeting 2.5 bnboe, expected to be drilled this year according to analysis from Westwood Insight.

However, according to its Norway State of Exploration report, more companies are likely to focus on lower-risk ILX drilling to sustain production levels in existing hubs that can provide short cycle opportunities, Westwood said.

The report also shows that 298 exploration wells were drilled between 2012 and 2021 in Norway with an estimated total exploration spend of $15.4 billion.

Average commercial success rate (CSR) was 24% and the technical success rate (TSR) was 49%. Seventy one commercial discoveries were made with total resources of 3.3 bnboe, at a drilling finding cost of $4.6/boe. There were only six commercial discoveries >100 mmboe, reflecting the decreasing discovery size as the NCS matures.

The Northern North Sea (NNS) was the top performing basin on the NCS in terms of CSR (34%) and discovered volumes (1.1 bnboe). The Barents Sea has continued to disappoint in terms of CSR and the number of discoveries made. However, it has delivered more than 1 bnboe of commercial resources at the lowest finding cost, compared to other basins.

The most drilled and best-performing play in terms of commercial success and discovered resources was the Middle Jurassic with 1.7 bnboe from 91 wells and a CSR of 36%.

Infrastructure-led exploration (ILX) drilling accounted for 60% of all activity and spend and contributed 2.1 bnboe with a CSR of 35%. The proportion of ILX drilling is expected to trend upwards.

There were only 13 discoveries made from HI wells between 2012 and 2021, giving a CSR of just 11%. Total resource discovered was 1.5 bnboe; however, 65% of this was discovered in the early part of the decade in the Barents Sea.

More than 80 companies participated in exploration drilling, 36 of which participated in 10 or more wells. Companies that have been most successful have either been involved in the high impact discoveries of the decade or have targeted the more successful plays such as the Middle Jurassic. ILX-focused exploration portfolios delivered more consistent performance, with higher commercial success rates and lower finding costs but with smaller average discovery sizes.

Shearwater GeoServices wins 4D survey offshore Australia

Shearwater GeoServices has won a contract from Woodside for 4D baseline survey work over gas fields in the Carnarvon Basin Australia.

The survey is expected to take 2-3 months to acquire, and will be conducted by the vessel Geo Coral, equipped with multicomponent sensor streamers. The survey is planned to commence in Q3 2022 and will cover the Scarborough and Jupiter gas fields.

‘The objective of the survey is to provide a modern, robust high-definition survey for development planning, and ultimately be used as the baseline for time-lapse data in the event of acquisition of future monitoring seismic surveys,’ said Shearwater.

‘This new award by Woodside demonstrates continuing commitment to invest in 4D time-lapse for development and reservoir management of their natural gas resources,’ said Irene Waage Basili, CEO of Shearwater. ‘Natural gas is a key low carbon fuel for the future, and high-end seismic surveys are a critical tool for advanced management of these resources.’

The fields are part of the Greater Scarborough gas fields which are estimated to hold 13.0 TCF (2C, 100%) of dry gas.

Geo Coral will acquire data in the Carnarvon Basin.

TGS extends Northern North Sea OBN survey

TGS has extended the 2021 NOAKA ocean bottom node (OBN) seismic survey in the Northern North Sea.

The NOAKA22 survey will comprise an additional 318 km2 of multi-client OBN data within theAPA area between Oseberg and Alvheim in the Norwegian North Sea.

‘The NOAKA fields are one of the largest developments on the NCS, with recoverable reserves of more than 500 million barrels of oil equivalents. The area has witnessed significant infrastructure-led exploration in recent years, and further prospectivity is anticipated,’ said TGS.

This latest OBN survey is the third to be acquired by TGS in the North Sea in recent years after the initial phase of NOAKA21 and the flagship Utsira OBN project, a joint survey with AGS.

TGS will use of ultra-long offset signal for FWI-based model-building, and full-azimuth, high-fold, high signal-tonoise ratios, reliable AVO, and ultra-long offsets to illuminate the complex geology for field development and near-field exploration.

CGG wins OBN contract in Nile Delta

CGG has won a project from bp and JV partner Pharaonic Petroleum Co for the 3D seismic imaging of the first OBN survey ever conducted in the Nile delta covering the Atoll and Atoll North fields.

CGG will apply its OBS & FWI imaging technologies, expertise and specialised HPC from its UK and Cairo imaging centres to deliver the 3D seismic images of pre-Messinian targets with greater velocity model detail, image bandwidth and AVO reliability for improved field development planning and near-field exploration.

Peter Whiting, EVP, Geoscience, CGG, said: ‘This new 3D OBN imaging project is the first of its kind in the Nile delta.’

Energy transition briefs

Shell has taken the final investment decision to build Holland Hydrogen I in Rotterdam, which will be Europe’s largest renewable hydrogen plant once operational in 2025. The 200MW electrolyser will produce up to 60,000 kilograms of renewable hydrogen per day.

Neptune Energy has joined the Aiming for Zero Methane Emissions Initiative, a project to cut emissions of the greenhouse gas to near zero by 2030. Signatories to the initiative, which is developed by the Oil and Gas Climate Initiative (OGCI), aim to reach near zero methane emissions from their operated assets by the end of this decade.

The state government of North Rhine-Westphalia is funding a€770,000 feasibility study on a 100-megawatt water electrolysis plant for the production of green hydrogen at the Ineos site in Köln/Dormagen. The project could lead to a reduction in greenhouse gas emissions of more than 100,000 tonnes per year.

Fluxys and Equinor have agreed to transport captured CO2 from emitters to safe storage sites in the North Sea, connecting Belgium to Norway. The project includes a 1000 km CO2 export trunkline operated by Equinor which will transport CO2 for permanent storage under the seabed on the Norwegian Continental Shelf. A final investment decision is expected in 2025.

Petronas has signed an agreement with Mitsui & Co. to evaluate potential CO2 storage sites offshore peninsular Malaysia. The collaboration also covers a capturing and gathering strategy of CO2 from various industries, competitive transportation of the CO2 and emerging technology in direct air capture.

ExxonMobil, Shell, CNOOC, and Guangdong Provincial Development and Reform Commission have signed an agreement to evaluate a potential carbon capture and storage project at the Dayawan Petrochemical Industrial Park in Huizhou, Guangdong Province, China. The project has the potential to capture up to 10 million metric tonnes of CO2 a year from Dayawan’s industrial sector.

Shell advertises for TikTok expert

Shell has made a bid to communicate its energy transition credentials to a younger audience by advertising for a full-time TikTok channel manager to drive a strategy for the company on the popular social media platform.

The role is for a ‘TikTok platform expert able to drive the ambition to catapult Shell to be one the best content creators on TikTok’, according to a job brief posted by the company.

The successful candidate will ‘start a new chapter that will help the energy engaged audience and Gen Z worldwide understand in an engaging way the opportunities of energy transition and the Shell role and ambition in it’, the company’s brief outlined.

TikTok, which is operated by the Chinese company ByteDance, is a popular destination for short-form mobile video.

Shell will aim to use TikTok to outline progress recently published in its Energy Transition Progress Report 2021, which included critical investment decisions in the production of low-carbon fuels, solar and wind power, hydrogen and significant changes to Shell’s upstream and refinery portfolios.

‘As we accelerate towards our goal of becoming a net zero emissions business, we are putting greater emphasis on how we engage with all stakeholders on the many complex issues and opportunities related to the energy transition,’ said Shell CEO Ben van Beurden.

nikkimeel - stock.adobe.com.

PGS expands Côte d’Ivoire dataset

PGS has expanded its Côte d’Ivoire mega survey to bring total coverage to 33,861 km2 of 3D data and 31,743 line km of 2D data.

Open acreage in the prospective Tano Basin is targeted with this additional 3108 km2 of 3D seismic data. This expands continuous mega survey data coverage from Côte d’Ivoire to Nigeria.

In partnership with PetroCi and Direction Générale des Hydrocarbures, PGS has worked to ensure that the various 3D input datasets have been matched, merged and re-binned onto a common grid resulting in a single, continuous volume of full-stack seismic data in the time domain.

The mega survey spans the western extension of the prolific Tano Basin and covers the high-profile Baleine-1X (Eni) discovery with preliminary resource estimates of up to 2 billion barrels of oil in place and up to 2.4 trillion cubic feet (TCF) of associated gas in two main Cretaceous reservoir levels. The dataset also occurs along-strike of the 2021 Eni ‘Eban-1X’ discovery, offshore Ghana, which is reported to have found light oil in an 80m-thick section of Cenomanian sandstones. These discoveries highlight the significant remaining potential of Cretaceous shelf edge play along the margin.

‘MegaSurvey regional seismic data enables exploration for analogs, the identification of new prospects, and allows detailed play analysis from shelf to deep water, along the entire margin,’ said PGS in a statement. ‘Five key regional horizons have been tied to well and interpreted to allow field-scale geological understanding to be placed into a basin-wide context and open acreage opportunities to be assessed with confidence.’

Wind energy projects will create 100,000 jobs in the UK, says report

The Offshore Wind Skills Intelligence Report has outlined that the sector will employ in the region of 100,000 people in the UK by 2030.

The report, published by the East of England Energy Group of 200 organisations, also indicates that between 2022 and 2030 the industry in the UK will see a benefit of $190 billion from private investment in new offshore wind projects. This will take the average annual spend to more than $20.8 billion, significantly higher than last year’s reported private investment which showed an average spend of just over $12.2 billion per year.

Investments are expected from major developers including ScottishPower Renewables, Vattenfall, RWE, and Equinor.

PGS expects much-improved second quarter revenue

Rune Olav Pedersen, president and CEO of PGS.

PGS expects to report Q2 2022 income of approx. $274 million, compared to $185.9 million in Q2 2021.

Contract revenues ended at approx. $63 million in Q2 2022, compared to $51.5 million in Q2 2021. Multi-client late sales revenues were approx. $108 million in Q2 2022, compared to $65.5 million in Q2 2021. Multi-client pre-funding revenues were approx. $96 million in Q2 2022, compared to $62.7 million in Q2 2021, and Multi-client cash investment ended at approx. $26 million, compared to $25.7 million in Q2 2021.

Cash and cash equivalents at June 30, 2022 are estimated to approx. $220 million, compared to $155.4 million at June 30, 2021 and $163.9 million at March 31, 2022. Most of the company’s multi-client late sales in Q2 2022 will be collected in Q3 2022 and are expected to contribute to strong cash flow in the quarter.

The order book at June 30, 2022 is $360 million, compared to $315 million at March 31, 2022 and $410 million at June 30, 2021.

‘We continue to see an improving marine seismic market and we deliver the second highest quarterly revenue number since Q4 2014. Significant lates sales, including high transfer fees, is a confirmation that our multi-client library is highly attractive to customers and that investments in exploration seismic is again increasing. During Q2, all our six active 3D vessels came back in operation. The contract acquisition market continued to improve in the quarter and dominated our vessel activity. However, contract revenues are impacted by steaming and standby early in the quarter, and by mobilization on two surveys where production and revenue impact primarily will be in Q3 and Q4. Our fleet is fully booked through Q3, and the winter season is already firming up with activity and pricing continuing on a positive trend,’ said president and CEO Rune Olav Pedersen.

Cash and cash equivalents in excess of $200 million at quarter-end will have to be used to repay upcoming amortizations of the TLB and ECF loans. The company has received the gross proceeds of approximately $85 million from the equity private placement in Q2, 2022, while proceeds from the subsequent equity offering and proceeds from drawing the new $50 million senior secured debt is expected in Q3 2022.

PGS issued a prospectus on June 29, 2022 and commenced a subsequent offering of up to 38,155,803 new shares. The subscription period closed on July 15, 2022.

inApril announces sales of OBN equipment and QC software

inApril has sold an ocean bottom nodal system based on the A3000 node to a European research institution. Meanwhile, Profocus Systems, an inApril company, has started on the delivery of a data management system for a new customer developing a proprietary ocean bottom node system.

Finally, inApril’s QC software Argus SourceQC is now operating on seven source vessels and has recently been sold to an eighth. Argus SourceQC is a real-time, non-intrusive QC software that warns the operator of anomalies or changes in hydrophone air gun signatures. It was developed for observers and gun mechanics with the aim of quickly detecting air leaks, electrical leakage, drop outs, auto-fires, misfires and loose hardware. The latest version is a Beta release of the SourceQC Autopilot, including automatic data QC and alarm notification with no need for manual monitoring. BRIEFS

Sercel has successfully bid for ION Geophysical Corporation’s software business. The assets were put up for sale after ION announced US chapter 11 bankruptcy in April. The company intends to retain all employees within the business. The acquisition is expected to close in the third or fourth quarter of 2022.

The deadline for oil and gas companies to submit bids for the Lebanon Second Licensing Round has been extended to 15 December 2022. Eight blocks are on offer with a simplified bidding process to attract new investors.

EMGS has secured $3.8 million in revenue related to uplifts from its multi-client library in Norway. The company has also recorded $1.4 million in late sales and $1.2 million in revenue from a change of control event, also related to its existing multi-client library in Norway.

Magseis Fairfield has won an OBN project in the Gulf of Mexico from a repeat customer, with an option for a programme extension. The initial survey will use Magseis Fairfield’s ZXPLR technology and is expected to take three months. Magseis Fairfield has won a one-month extension to an OBN survey in the North Sea that will take three months.

Green Energy Group (formerly SeaBird) has announced that an agreed sale of its seismic data acquisition business has been put on hold. Agreement in principle on the transaction had been reached but has stalled ‘due to events outside of both parties control’. The period of exclusivity has lapsed and the company has restarted negotiations with other suitors.

ExxonMobil has entered into an agreement with Whitecap Resources Inc. for the sale of XTO Energy Canada, jointly owned by Imperial and ExxonMobil Canada, for $1.47 billion. The assets include 567,000 net acres in the Montney shale, 72,000 net acres in the Duvernay shale and additional acreage in other areas of Alberta.

Offshore wind expansion will outperform targets

The offshore wind industry enjoyed its best-ever year in 2021, with 21.1 GW of new capacity connected to the grid, according to the latest Global Offshore Wind Report launched by the Global Wind Energy Council (GWEC).

GWEC has revised up its outlook for 2030 to 45.3 GW, or 16.7% from last year’s report and believes that 260 GW of new offshore wind capacity could be added in 2022-2030, bringing total global offshore wind installations to 316 GW by the end of this decade.

The energy crisis and the Russian invasion of Ukraine have led to governments further raising their offshore wind targets as they look to secure their energy supplies, said GWEC. The report forecasts government targets will take the world to around 370 GW of capacity by 2031, close to the GWEC/IRENA Offshore Wind Energy Compact’s target of 380 GW of offshore wind installations by 2030.

‘On one hand, we see political ambitions increase exponentially. But on the other hand, the industry is facing increasing costs and disrupted supply chains, jeopardizing its long-term ability to realize these targets,’ Ulrik Stridbæk, vice-president and head of regulatory affairs at Ørsted, said.

There was a three-fold increase in grid connection worldwide from 2020 to 2021, with 21.1 GW of new installations bringing global capacity to 56 GW. Yearon-year growth of 58% means offshore wind now represents 7% of total global cumulative installations.

China contributed 80% of new offshore installations last year, which makes 2021 the fourth year the country has led the world in new installations. Vietnam’s proactive approach delivered further capacity, and GWEC forecasts that by the end of 2022 Asia will replace Europe as the world’s largest offshore market. The report suggests it could take until 2031 for Europe to regain the crown.

In 2021 57 MW of floating offshore wind projects were installed bringing the global total to 121.4 MW. Of those new installations, 48 MW were in the UK, 5.5 MW in China, and 3.6 MW in Norway.

The report predicts that by 2031 315 GW of new offshore wind capacity will be added. As the volume of annual offshore wind installations is expected to more than double from 21.1 GW in 2021 to 54.9 GW in 2031, offshore’s share of new global wind installations is set to grow from 23% in 2021 to at least 30% by 2031.

Considering the increased floating wind target in the UK and the accelerated floating project development activities in Europe, Asia, and North America, which bring the current global floating project pipeline to 120 GW, GWEC has upgraded its 2030 global floating wind forecast by 14% from last year’s report and predicts that 18.9 GW is likely to be built globally by 2030, of which 11 GW will be in Europe, 5.5 GW, in Asia and the rest in North America.

Also, GWEC has identified more than 700 GW of offshore wind projects that are at different stages of development worldwide, of which 120 GW is floating wind.

Currently, offshore wind projects totalling 23 GW capacity are under construction. With a 49.5% market share, Europe is now taking the lead in offshore wind project construction, followed by Asia (46.4%) and the US (4.1%).

China is the most active market with 7.8 GW under construction, followed by the UK (5.6 GW), Netherlands (2.3 GW), Taiwan (2.1 GW), France (1.4 GW), and Germany (1.1 GW).

Getech subsurface software supports UK carbon licensing round

Getech has won a contract to deploy its proprietary geospatial software and subsurface expertise to support the UK’s first carbon storage licensing round.

Working with the North Sea Transition Authority (NSTA), Getech has used its Exploration Analyst software to leverage NSTA’s in-house data to create strategic maps that the NSTA is using to define optimal areas for CO2 storage.

The NSTA is inviting bids on 13 high graded areas.

Getech’s chief executive officer, Dr Jonathan Copus, said: ‘NSTA’s use of Exploration Analyst to map and promote an integrated ‘emissions-to-storage’ value chain in and around the UK North Sea showcases another exciting application of products that we originally developed for petroleum customers, and which we are now establishing as essential tools in geothermal energy, critical minerals, carbon storage and green hydrogen.’

Some 130 commercial-scale CO2 capture projects were announced in 2021, and the International Energy Agency (IEA) is forecasting that capital spending on CCUS could exceed $40 billion by 2024 (from $1.8 billion in 2021). A further 700 carbon storage projects must be identified by 2030 to stay on track for the IEA’s 2050 Net Zero Emission Scenario.

Oil and Gas Round-up

Wintershall Dea has been given consent to start production from the Nova field in the North Sea. Nova will be developed with two seabed templates, one for oil production and one for water injection (to increase oil recovery). The field will be tied back to the Gjoa field for processing and export. Reserves are estimated at about 14 million standard cubic metres of oil equivalent (90 million bbls o.e.).

Strike Energy has confirmed an extension of high-quality conventional gas within the Kingia Sandstones at WE3 at the West Erregulla gas field in the Perth Basin, Western Australia. The Kingia Sandstone reservoir was encountered between 4731 m MD and 4791 m MD with a gross gas column of 60 m. Mud logs, logging while drilling and wireline logging tools were used to evaluate the Kingia Sandstone. The Kingia is made up of a single package of high-quality reservoir totalling 38 m of net pay with an average porosity of 13.8% and up to 19%. The sands within this section are observed to be consistent with other Kingia penetrations for the field and across the broader play. Strike said that the WE3 reservoir characteristics are the best observed in the field to date.

Equinor has agreed to sell to Shell 51% of its interest in the North Platte deep water development project in the US Gulf of Mexico. Equinor will retain 49% interest in the project, and Shell will become the new operator of the field. Renamed Sparta, it straddles four blocks of the Garden Banks area, 275 km off the coast of Louisiana in approx. 1300 m of water depth.

Trinity Exploration and Produc-

tion has announced that drilling operations have commenced for the first well of its 2022 six well programme in Trinidad and Tobago, targeting an aggregate 450-1100mbbls of reserves. A 3D seismic survey in 2020 identified a ‘hopper’ of c.40 infill opportunities, which includes c.35 conventional wells and c.5 high angle/horizontal wells.

Serinus Energy’s two-well exploration programme in Romania continues to progress towards commencement of drilling. Drilling of the Canar-1 well is expected to commence on schedule in mid-July, and once drilling is completed, the rig will move to the Moftinu Nord-1 location and start drilling. Canar-1 well is located 4 km to the west of the Moftinu gas plant, while the Moftinu Nord-1 well is located 5.2 km to the northwest of the Moftinu gas plant. Production from each well will be connected to the Moftinu gas plant, utilizing current excess plant capacity.

Equinor has drilled wildcat well 34/9-1 about 35 km northeast of the Kvitebjørn field in the North Sea and 167 km northwest of Bergen. The objective of the well was to prove petroleum in Lower Cretaceous reservoir rocks (the Sola Formation in the Cromer Knoll Group). The well encountered the Sola Formation, but reservoir rocks in the form of sandstone were not present. Data acquisition was carried out.

Searcher adds Indonesia to its subsurface database

Searcher Seismic has formed a partnership with the Indonesian Petroleum Association (IPA) on the use of GeoClerk, Searcher’s subsurface geo-imagery search engine. GeoClerk enables geoscientists and engineers to discover geological information from a range of data libraries and technical archives.

The IPA was founded 50 years ago and holds an annual convention to address the need for and market the development of the upstream oil and gas industry in Indonesia.

The IPA convention proceedings, technical symposiums and other special publications across Indonesia and its basins, comprising more than 4700 documents and dating back to 1972, will now be accessible through GeoClerk.

‘We are looking forward to working together with the IPA and providing our GeoClerk users with an exploration search engine to discover subsurface information across our growing library of data sources. This saves GeoClerk users substantial amounts of research time and ensures they find information relevant to their search criteria,’ said VP of Operations for Searcher, Alan Hopping.

‘The IPA is keen to make its publications available to a wider global audience and sees this partnership as a way of achieving that aim. These publications provide an invaluable resource on the geology of Indonesia and oil and gas exploration and production in the country,’ added the IPA.

Searcher Seismic has partnered up with Indonesian Petroleum Association on the use of its GeoClerk search engine.

NEAR SURFACE GEO & MINING

Near Surface Geoscience ranges from ground penetrating radar techniques to time lapse ERT seismic micronzonation and modelling algorithms. The field covers mining, ground engineering and water seepage analysis and other sectors. These papers will be presented at the EAGE’s Near Surface Mining Event.

Michael Becken et al demonstrate the use of an optically pumped magnetometer (OPM) suspended below an UAV to measure scalar EM responses.

Jesper Emilsson et al will discuss the effects an airborne antenna solution has on antenna footprint, unwanted signal input and signal loss. They also describe a few scenarios where airborne GPR has been successfully used.

T.-J. Hupe et al demonstrate that PSI can be used to produce virtual-source underground seismic surveys resembling an active-source seismic survey.

Hector R. Hinojosa presents the results of an ERI survey that deployed eight electrical resistivity profiles and four continuous flight hollow-stem auger cores.

Julien Oukili et al demonstrate what abundant 3D exploration seismic data coverage could offer in the search of net zero energy solutions.

Kevin Jarvis demonstrates why subsurface characterisation, providing a clear and detailed image of the distribrution of lithologies, is best achieved through joint inversion of both lithologies and elastic properties.

Sasha Ziramov et al show how the mineral sector could deliver an order of magnitude saving, while substantially increasing the data density and hence allowing optimum performance of modern seismic imaging algorithms.

Shohreh Hassanpour et al investigate the utility of magnetic data to understand the distribution of concentrating on porphyry systems in NW Iran.

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Special Topic overview

January Land Seismic February Digitalization / Machine Learning March Reservoir Monitoring April Unconventionals and Passive Seismic May Global Exploration Hotspots June Leading Geosciences in a New Era July Modelling / Interpretation August Near Surface Geo & Mining September Reservoir Engineering & Geoscience October Energy Transition November Marine Acquisition December Data Management and Processing