First Break March 2018

VO L U M E 3 6 I I S S U E 3 I M A R C H 2 018

SPECIAL TOPIC

Petroleum Geology INDUSTRY NEWS WesternGeco exits seismic acquisition business TECHNICAL ARTICLE Depth calibration of fibre-optic distributed vibration sensing measurements

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FIRST BREAK® An EAGE Publication

CHAIRMAN EDITORIAL BOARD Trude Støren (elna@emgs.com) EDITOR Damian Arnold (editorfb@eage.org) MEMBERS, EDITORIAL BOARD • Paul Binns, consultant (pebinns@btinternet.com) • Patrick Corbett, Heriot-Watt University (patrick_corbett@pet.hw.ac.uk) • Tom Davis, Colorado School of Mines (tdavis@mines.edu) • Anthony Day, PGS (anthony.day@pgs.com) • Peter Dromgoole, Statoil UK (pdrum@statoil.com) • Rutger Gras, Oranje-Nassau Energy (gras@onebv.com) • Hamidreza Hamdi, University of Calgary (hhamdi@ucalgary.ca) • Ed Kragh, Schlumberger Cambridge Research (edkragh@slb.com) • John Reynolds, Reynolds International (jmr@reynolds-international.co.uk) • James Rickett, Schlumberger (jrickett@slb.com) • Dave Stewart, Dave Stewart Geoconsulting Ltd (djstewart.dave@gmail.com) • Femke Vossepoel, Delft University of Technology (f.c.vossepoel@tudelft.nl) MANAGER MEDIA PRODUCTION DEPARTMENT Arjan Kors (aks@eage.org) MEDIA PRODUCTION COORDINATOR Thomas Beentje (tbe@eage.org)

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Shallow water Gabon 3D: focused processing images pre- and post-salt prospectivity

Editorial Contents 3

EAGE News

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Crosstalk

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Industry News

Technical Article 29

ACCOUNT MANAGER ADVERTISING Charles Callaghan (ccn@eage.org) ACCOUNT MANAGER SUBSCRIPTIONS Ben Love (ble@eage.org) PRODUCTION First Break BV EAGE EUROPE OFFICE PO Box 59 3990 DB Houten The Netherlands • +31 88 995 5055 • eage@eage.org • www.eage.org EAGE RUSSIA & CIS OFFICE EAGE Russia & CIS Office EAGE Geomodel LLC Novocheremushkinskaya Str. 65 Build. 1 117418, Moscow, Russia • +7 495 640 2008 • moscow@eage.org • www.eage.ru EAGE MIDDLE EAST OFFICE EAGE Middle East FZ-LLC Dubai Knowledge Village Block 13 Office F-25 PO Box 501711 Dubai, United Arab Emirates • +971 4 369 3897 • middle_east@eage.org • www.eage.org EAGE ASIA PACIFIC OFFICE UOA Centre Office Suite 19-15-3A No. 19, Jalan Pinang 50450 Kuala Lumpur Malaysia • +60 3 272 201 40 • asiapacific@eage.org • www.eage.org

Depth calibration of fibre-optic distributed vibration sensing measurements T. Dean, T. Cuny, A. Constantinou , P. Dickenson and E. Hamouche

Special Topic: Petroleum Geology 37

The Niobrara formation in the Southern Powder river basin, Wyoming: An emerging giant continuous petroleum accumulation Stephen A. Sonnenberg

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Offshore Argentina: Lessons from previous exploration Jonathan Castell, Andrew Lavender and James Scotchman

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Shallow water Gabon 3D: focused processing images pre- and post-salt prospectivity Paolo Esestime, Howard Nicholls, Karyna Rodriguez, Neil Hodgson and Laura Arti

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An opportunity to re-evaluate the petroleum potential of the Douala/ Kribi-Campo Basin, Cameroon Jean-Pierre Loule, Francis Jifon, Serge Edouard Angoua Biouele, Ponce Nguema, David Spofforth, Daniel Carruthers, Carl Watkins and Joe Johnston

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Derisking the Thebe Discovery through cognitive interpretation Ryan Michael Williams

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West of Shetland broadband 3D seismic: Extending the exploration life of Europe using new seismic technology Katharine Broadbent, Malcolm Francis, Alexander Karvelas, Oliver Schenk and Olga Shtukert

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Calendar

EAGE LATIN AMERICA OFFICE Carrera 14 No 97-63 Piso 5 Bogotá, Colombia • +57 1 4232948 • americas@eage.org • www.eage.org EAGE MEMBERS CHANGE OF ADDRESS NOTIFICATION Send to: EAGE Membership Dept at EAGE Office (address above) FIRST BREAK ON THE WEB www.firstbreak.org

cover: Pumpjack at sunset in the Permian Basin. Lessons from the Permian Basin can be of use for other explorations, see p. 47 (photo courtesy of Halliburton).

ISSN 0263-5046 (print) / ISSN 1365-2397 (online)

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European Association of Geoscientists & Engineers

Board 2017-2018 Jean-Jacques Biteau President

Near Surface Geoscience Division Oliver Kuras Chair George Apostolopoulos Vice-Chair Micki Allen Contact Officer EEGS-NA Riyadh Al-Saad O&G Liaison George Apostolopoulos Awards Committee Representative Peter Bergmann Technical Programme Representative Albert Casas Membership Officer Ranajit Ghose Editor in Chief Near Surface Geophysics Heinrich Horstmeyer Education Officer/Conference Liaison Officer Andreas Kathage Liaison Officer First Break Koya Suto Liaison Asia Pacific Endre Törös Awards Committee Representative Jiangha Xia Liaison China

Oil & Gas Geoscience Division

Juan Soldo Vice-President

Michael Poppelreiter Vice-President-Elect

Jorg Herwanger Education Officer

Caroline Lowrey Chair Michael Peter Suess Vice-Chair Øistein Bøe Resource Evaluation Committee liaison Phil Christie Chief Editor Petroleum Geoscience Rick Donselaar Technical Programme Representative (Geology) Xavier Garcia NSGD liaison Sebastian Geiger Resource Evaluation Committee liaison Olivier Gosselin Technical Programme Representative (Reservoir), Resource Evaluation Committee liaison Juliane Heiland Committee member David Halliday Technical Programme Representative (Geophysics), YP liaison Tijmen Jan Moser Editor-in-Chief Geophysical Prospecting Ann Muggeridge IOR Committee liaison Walter Rietveld Technical Programme Officer Michael Welch Technical Programme Representative (Geology), NSGD liaison Martin Widmaier Technical Programme Representative (Geophysics) Paul Worthington Resource Evaluation Committee liaison Michael Zhdanov NSGD liaison

SUBSCRIPTIONS First Break is published monthly. It is free to EAGE members. The membership fee of EAGE is € 50.00 a year (including First Break, EarthDoc (EAGE’s geoscience database), Learning Geoscience (EAGE’s Education website) and online access to a scientific journal.

Roald van Borselen Membership and Cooperation Officer

Ingrid Magnus Publications Officer

Everhard Muijzert Secretary-Treasurer

Companies can subscribe to First Break via an institutional subscription.

Every subscription includes a monthly hard copy and online access to the full First Break archive for the requested number of online users.

Orders for current subscriptions and back issues should be sent to EAGE Publications BV, Journal Subscriptions, PO Box 59, 3990 DB, Houten, The Netherlands. Tel: +31 (0)88 9955055, E-mail: subscriptions@eage.org, www.firstbreak.org.

First Break is published by EAGE Publications BV, The Netherlands.

However, responsibility for the opinions given and the statements made rests with the authors.

COPYRIGHT & PHOTOCOPYING © 2018 EAGE All rights reserved. First Break or any part thereof may not be reproduced, stored in a retrieval system, or transcribed in any form or by any means, electronically or mechanically, including photocopying and recording, without the prior written permission of the Publisher.

Walter Rietveld Technical Programme Officer

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Oliver Kuras Chair Near Surface Geoscience Division

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Caroline Jane Lowrey Chair Oil & Gas Geoscience Division

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PAPER The Publisher’s policy is to use acid-free permanent paper (TCF), to the draft standard ISO/DIS/9706, made from sustainable forests using chlorine-free pulp (Nordic-Swan standard).

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HIGHLIGHTS

EAGE MEMBERS

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Seventh workshop on Arabian plate geology

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Much to gain from Almaty geophysics event

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Women’s Special Interest Group is meeting a need

Hopes high at first Smart Exploration meeting There was plenty of optimism expressed at the inaugural meeting of the EU Smart Exploration project hosted on 15-17 January by lead organization Uppsala University, Sweden. This was the first occasion for representatives of the 27 European partner organizations including EAGE to get together to consider the next steps in the project’s mission.

Project coordinator Alireza Malehmir.

Funded by the European Commission Horizon 2020 programme, the goal is to identify and support innovative new solutions for the sustainable production of raw materials and exploration technologies.

The project consists of a research and application team supported by a group of technologically advanced small and medium-size enterprises (SMEs) associated with the mining industry as well as civil and professional societies such as EAGE. Presenting the way forward, Prof Alireza Malehmir, project coordinator from Uppsala University Department of Earth Sciences, said: ‘We are ambitious and wellequipped with a great motivated team of professionals.’ Nikos Arvanitidis from the Geological Survey of Sweden told the gathering that ‘the journey towards the location of new exploitable mineral resources begins.

Smart phones, smart TVs, smart techs: they all need and rely on smart exploration.’

One of the advantages of Smart Exploration, according to Joao Carvalho (researcher, LGM, I.P.), was that ‘it brings side by side mining companies and stateof-the-art research, a combination that has proved to be successful in other parts of the world. Another impact of the project is its strong focus on environmentally safe mining exploration techniques and its dissemination across populations, contributing to the general public acceptance of mining activities.’

An example of how Smart Exploration might benefit mining was provided by Paul Marsden, managing director, Nordic Iron Ore. He described the project as a massive FIRST

step forward for European utilization of natural resources providing a gateway to minimize intrusive exploration techniques and help reduce development time and costs. His company would benefit from the improved training/knowledge of advanced exploration techniques and local communities should potentially experience less impact from the exploration phase.

For EAGE, Smart Exploration is an exciting departure in its service to members and the geosciences community. Marcel van Loon, EAGE executive director, said: ‘EAGE’s role is to ensure the results are communicated to partners and stakeholders and to strengthen cooperation between all project participants. With its significant membership base and access to the world’s leading geoscience and engineering network, EAGE is very well placed to use its existing resources to promote the goals and objectives of the SMART Exploration project.’ EAGE’s EU public affairs officer Asli Onar-Verboon is leading the project’s dissemination work package.

The introductory session of the Uppsala meeting was publicly available through a live stream and will soon be available online via YouTube.

For more information on the project, check out the project website www.smartexploration.eu and and twitter account @SmartExplore.

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EAGE NEWS

EAGE joins with SPE for third Middle East geomechanics workshop ‘Brown Fields and Unconventionals’ is the theme for the third workshop on Geomechanics in E&P in Abu Dhabi on 2-3 May 2018, chosen to attract a global audience, with particular interest for the Middle East region.

Also to reach a wider audience, EAGE is joining forces this year to bring a combined workshop with SPE. The technical steering committee says it wants to encourage participation across the entire E&P industry including NOCs, IOCs, service companies, academic institutions, and researchers.

The workshop presentations and discussions will focus on how geomechanics is currently being used and how it can play an important role in maximizing recovery from diverse and challenging environments.

In the Middle East more oil and gas needs to be recovered from (giant carbonate) reservoirs, which have been under production for decades. The potential of unconventional and tight gas reservoirs are

also being viewed to provide energy for a rapidly growing region. The mandate from governments is to reach higher ultimate recoveries whilst limiting environmental impacts and maximizing profits for economic expansion.

In this context, brown fields bring challenges in extending well lifetimes, drilling infill wells and in drilling through depleted reservoirs to access new ones. The combined effects of depletion and injection

Abu Dhabi is workshop venue.

mean that evaluation of well integrity, caprock integrity, fault reactivation and sanding must all be evaluated and monitored.

Unconventional fields require considerable planning of well locations, spacing and stimulation strategies. This must be combined with predictions of flow rates through fractures and long-term production.

Six sessions are planned for the workshop to gain a better understanding of subsurface characterization and dependency on accurate data acquisition, processing and interpretation. Four sessions aim to cover treatment of data and how to improve reliability; current status and benefits of field monitoring; application of data and models to improving recovery and efficiency; and keeping development and operating costs down. The other two sessions will look ahead at upcoming technology and how geomechanics can be best positioned in the future.

For further workshop information, go to https://goo.gl/6yzBJJ.

Near Surface Geoscience exhibition selling fast The exhibition at the forthcoming Near Surface Geoscience Conference and Exhibition (NSG) 2018 in Porto, Portugal is proving to be a popular feature. Over 30 exhibitors have alreaday booked booth space at the Alfandega Porto Congress Centre, an impressive building overlooking the Douro River in old town Porto.

The latest annual gathering for the near surface geoscience community includes three excellent conferences. The 24th European Meeting of Environmental and Engineering Geophysics, the 3rd Applied Shallow Marine Geophysics Conference and the 2nd Conference on Geophysics for Mineral Exploration and Mining, will all

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be meeting during the week of 9-13 September guaranteeing a wide range of highly qualified visitors from industry and academia for the exhibition which will run on 10-12 September.

Between the conference sessions, attendees can also participate in field demonstrations of the latest technology upcoming in the near surface geoscience sector, and have the opportunity to meet the people behind the products and services that shape their professional world.

With a beautiful setting, a diverse mix of people and companies, and an engaging atmosphere, this is the perfect place for companies to showcase their latest innovations, products and services.

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Booth space at the exhibition itself is already at a premium with 268 m2 of the limited available area booked.

We therefore strongly advise interested organizations to act quickly to avoid disappointment.

Also for those interested in raising their profile at the event, advertising and sponsorship provide a great opportunity.

Sponsors receive maximum exposure through our conference literature, website, mailings, delegate bags and much more.

If you are interested in exhibiting, advertising, sponsoring, or even just attending the NSG2018, please check out: www.nearsurfacegeoscience2018.org or contact us at exhibition@eage.org.

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EAGE NEWS

Seventh workshop on Arabian plate geology set for Muscat The EAGE Arabian Plate Geology workshop is becoming a never-ending story. On 9-13 December this year in Muscat, Oman the workshop will be convening for the eighth time, proving there is still plenty to talk about.

The theme of the upcoming workshop will be the deeper, challenging, and exiting sections from Pre-Cambrian to Paleozoic (mega sequence AP1 to AP5).

These sections have diverse regional stratigraphy which was likely the result of segmented basinal physiography, and recorded the Hercynian tectonic event and several glaciation events. In several parts of the plate the section are buried very deep and drilling activity is limited.

This resulted in sketchy data availability especially in off structure areas. The sections consist of known regional source and reservoir rocks.

The core workshop is one of the highlights of the event, with selected

cores from a number of producing and non-producing fields spanning the entire Gulf region (Oman, Kuwait, Saudi Arabia and the United Arab Emirates) being displayed. Guided by specialists, rock-based discussions and experience sharing will provide a great opportunity for participants to develop a better understanding of the stratigraphy, sedimentology, diagenesis and petrography of these Pre-Cambrian to Paleozoic rocks.

The workshop should be of interest to geoscience and engineering technical experts working in national and international operating and service companies, as well as academic institutions with a working experience of Pre-Cambrian and Paleozoic in the Middle East or with a wish to discover/understand these challenging series.

The successful format of the previous workshops will be in evidence again, including the stratigraphic framework,

Evening cityscape of Muscat, Oman.

sedimentology, stratigraphic evolution, tectonic modelling, core sessions, and poster sessions. In addition, two-days of fascinating field trips on the Ediacaran Nafun Group and the Cambrian-Ordovician Amdeh Formation of Oman will follow the main event.

Oral presentations and poster submissions are encouraged. The call for abstracts is open until 15 July 2018.

More information can be found at https://goo.gl/UbJYXF.

EAGE Education Calendar 19 MAR 19-23 MAR 22 MAR

DLP WEBINAR BY SEBASTIEN SOULAS

ONLINE

EDUCATION DAYS LONDON: MULTIPLE SHORT COURSES

LONDON, UK

EAGE EDUCATION TOUR 2

BUENOS AIRES, ARGENTINA

EAGE EDUCATION TOUR 9

NASHVILLE, USA

5 APR

DLP WEBINAR BY ANTONY PRICE

ONLINE

9 APR

SAINT PETERSBURG CONFERENCE & EXHIBITION: MULTIPLE SHORT COURSES

SAINT PETERSBURG. RUSSIA

25 MAR

EAGE-HAGI CONFERENCE: MULTIPLE SHORT COURSES

YOGYAKARTA, INDONESIA

DLP WEBINAR BY PETER HAFFINGER

ONLINE

18 APR

EAGE EDUCATION TOUR 2

LAGOS, NIGERIA

23 APR

ENGINEERING & MINING GEOPHYSICS CONFERENCE & EXHIBITION: MULTIPLE SHORT COURSES

ALMATY, KAZAKHSTAN

9-13 APR 18 APR

SHORT COURSE ON BOREHOLE SEISMIC

KUALA LUMPUR, MALAYSIA

10-11 MAY

SHORT COURSE ON SEISMIC ACQUISITION PROJECT ESSENTIALS

BEIJING, CHINA

14-18 MAY

EDUCATION DAYS BUENOS AIRES MULTIPLE SHORT COURSES

BUENOS AIRES, ARGENTINA

10-15 JUN

EAGE ANNUAL CONFERENCE: MULTIPLE SHORT COURSES

COPENHAGEN, DENMARK

12-27 JUL

EDUCATION DAYS BEIJING: MULTIPLE SHORT COURSES

BEIJING, CHINA

5-18 JUL

EDUCATION DAYS PERTH: MULTIPLE SHORT COURSES

PERTH, AUSTRALIA

9-16 JUL

EDUCATION DAYS KUALA LUMPUR: MULTIPLE SHORT COURSES

KUALA LUMPUR, MALAYSIA

27-31 AUG

EDUCATION DAYS RIO DE JANEIRO: MULTIPLE SHORT COURSES

RIO DE JANEIRO, BRAZIL

28-31 AUG

EDUCATION DAYS ABERDEEN: MULTIPLE SHORT COURSES

ABERDEEN, UK

EDUCATION DAYS MEXICO CITY: MULTIPLE SHORT COURSES

MEXICO CITY, MEXICO

9-10 MAY

3-7 SEP

FOR MORE INFORMATION AND REGISTRATION PLEASE VISIT WWW.LEARNINGGEOSCIENCE.ORG.

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As tools evolve

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EAGE NEWS

A second round for the geosteering and well placement workshop EAGE and SPE are joining forces for the second time to hold a Workshop on Geosteering and Well Placement in Abu Dhabi on 5-8 November 2018. The event follows the successful inaugural workshop in 2016.

Participants from industry and academia are invited to meet again to discuss the importance and technical drivers of geosteering and accurate well placement in the production of hydrocarbons. Geosteering is the area which combines all disciplines involved to ensure flawless execution, from well placement to long term production.

The organizing committee believes the main way forward is to share accumulated experience together with new technologies, and ideas regarding real-time geosteering and its impact on maximizing reservoir flow. In order to significantly improve the

Participants at the first workshop.

old practices in well drilling, all stakeholders need to become actively involved in the process. The committee encourages workers/experts from all disciplines involved in well design, well drilling, geosteering, geological modelling, completions and reservoir production to take part in the workshop.

The committee also encourages students to attend and share their work and innovative spirit through poster sessions

held during the workshop. The sharing of new ideas and approaches between young professionals and industry seniors is an extremely valuable step in the support of continuous improvement in geosteering and well placement practices.

The call for abstracts is open until 15 May 2018. More information is available at https://events.eage.org/ en/2018/2nd-geosteering-and-well-placement-workshop/technical-programme.

Making sense of seals in the Middle East

The upcoming second EAGE/AAPG Workshop on Hydrocarbon Seals in the Middle East will highlight the latest 8

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developments in analyzing seals of hydrocarbon traps in the Middle East with a variety of applications from a regional perspective to field scale. The workshop is scheduled for Abu Dhabi on 16-19 April 2018.

The organizers say that as the basins of the Middle East reach a mature exploration phase, more emphasis is being directed towards understanding hydrocarbon seals through multi-disciplinary data and workflows. The proposed workshop, which builds on a successful first event, will offer several case studies integrating geological, geophysical and engineering data in novel ways to define and map hydrocarbon seals. Oral presentations and posters will cover a variety of aspects including the role of sedimentation, tectonics, diagenesis,

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pressure distribution on the development and effectiveness of seals.

There will be a special focus on inferences about hydrocarbon seals from geochemical data and charge analysis.

Moreover, the workshop will showcase discoveries made by the integration of seismic, special core analysis, petrophysical, geochemical, pressure, and production data to evaluate hydrocarbon seals.

The workshop invites anyone in the industry interested in sharing their knowledge of the subject and learning from local experiences with perspectives from outside the region. Understanding hydrocarbon seals is key to maximizing Middle East production.

For more information and to register, please visit our website at https://goo.gl/ bAWBHS.

EAGE NEWS

Italian students win thesis awards There was a slight change of format for the 2017 Gustavo Sclocchi Awards made on 13 December last year at a ceremony in San Donato Milanese, Italy.

The awards honour the best theses in geosciences and petroleum engineering presented by university graduates from Italian universities, as well as by Italian nationals graduated anywhere in the world.

The theses must be related to hydrocarbon (from fossil sources and biomasses) and geothermal exploration and production activities: geology, geophysics, formation evaluation, drilling and completion, reservoir engineering, production, transport and hydrocarbon upgrading (midstream technologies), HSE, carbon management, and energy economics.

Since 1993 the competition has been a joint initiative of SPE Italian Section, EAGE and Assomineraria, which is the Italian Petroleum and Mining Industry Association. Since 2001 it has been associated with the name of Gustavo Sclocchi, the Eni manager who was the main promoter of the event. Over the last 24 years 641 theses have been submitted out of which 138 have won awards.

This year 26 theses competed for the prizes and, for the first time, they were split into four categories: 2nd level Master reports, Bachelor of Science, Master of

Sclocchi 2017 Award winners Agnese Nebbia and Aronne Dell’Oca.

Science, and Doctor of Philosophy. The prize for winners of the first two categories is set at €1200 and €2400 for the other two categories. The recipients of an honourable mention receive a free membership for either SPE or EAGE for 2018.

This time two theses were awarded and five received a special mention.

Edoardo Dellarole, Scholarship chairperson, SPE Italian Section chaired the ceremony. Alberto Di Lullo, chairperson, SPE Italian Section and Giancarlo Bernasconi, who is a member of the EAGE Students Affairs Committee, introduced the main activities of their associations. Then, they warmly greeted the winners and presented them with the prize.

The winners were: Agnese Nebbia (Master of Science) for Pipeline acoustic

imaging: theory and applications and Aronne Dell’Oca (PhD) for Constant and variable density flow in porous media, under multiple sources of uncertainty.

The special mentions were awarded to: Marco Ferrari: A one-dimensional code for slug capturing in pipes; Ahmed Mohamed Sadek Elgendy: Screening Criteria and Fluid Design Optimization for Low Salinity Waterflooding Applications; Matteo Cerri: Water Drive gas injection in a depleted reservoir; Valentina Marzia Rossi: Mixed Energy shallow marine system with emphasis on tidal influence; and Rosalena Filograsso: Ultrasonic measurements on unconsolidated samples under triaxial stress: experimental validation of pressure dependent rock physics models.

EAGE Student Calendar 6 MAR 12 MAR 26-30 MAR 9-12 APR 11-12 APR

13TH MIDDLE EAST GEOSCIENCES CONFERENCE AND EXHIBITION/GEOQUIZ

BAHRAIN, BAHRAIN

EAGE ONLINE GEO-QUIZ (STUDENT CHAPTER ONLY)

ONLINE

STUDENT LECTURE TOUR ASIA PACIFIC

MUMBAI, INDIA

SAINT PETERSBURG 2018: GEOQUIZ/STUDENT PROGRAMME

SAINT PETERBURG, RUSSIA

EAGE/HAGI 1ST ASIA PACIFIC MEETING ON NEAR SURFACE GEOSCIENCE & ENGINEERING (REGIONAL GEO-QUIZ)

YOGYAKARTA, INDONESIA

16-26 APR

STUDENT LECTURE TOUR AFRICA

AFRICAN CITIES

23-27 APR

ENGINEERING & MINING GEOPHYSICS 2018: GEOQUIZ

ALMATY, KAZAKHSTAN

10 JUN

LAURIE DAKE CHALLENGE FINAL

COPENHAGEN, DENMARK

11 JUN

LAURIE DAKE ANNOUNCEMENT

COPENHAGEN, DENMARK

EAGE ANNUAL 2018: STUDENT PROGRAMME

COPENHAGEN, DENMARK

13 JUN

GEO-QUIZ

COPENHAGEN, DENMARK

3-8 JUL

ACEG, SEMANA TECNICA DE GEOCIENCIAS DE LA ASOCIACIÓN COLOMBIANA DE ESTUDIANTES DE GEOLOGÍA

MANIZALES, COLOMBIA

11-14 JUN

FOR MORE INFORMATION AND REGISTRATION PLEASE CHECK THE STUDENT SECTION AT WWW.EAGE.ORG

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EAGE NEWS

Much to gain from Almaty geophysics event Almaty, Kazakhstan will be hosting Engineering and Mining Geophysics 2018, the annual conference and exhibition being held for the 14th time, organized

by EAGE and Kazakh National Technical Research University after K.I. Satpaev (KazNTRU).

The event being held on 23-27 April 2018 with the support of the Kazakhstan Ministry for Investment and Development is sure to give a new impetus to progress in science and technology, according to Bulat Ujkenov, president of the Academy of Mineral Resources of the Republic of Kazakhstan and co-chairman of the Advisory Committee.

Both theoretical and field geological research in Kazakhstan have a remarkable history. This is reflected in the session topics which will include: Integrated approach to interpretation of geological and geophysical data; Geophysics for mineral exploration; Integrated shallow geophysical surveys; Topical problems in engineering geology; Marine geophysics; Remote sensing (aerial and drone) technologies for geological objectives; Well logging: theory and practice; Geophysics for archeology; and Engineering geophysics for petroleum production and more. The number of submitted abstracts has already broken the

Sunkar ski jump complex near Almaty opened in 2010 for the Asian Games.

record. Stay tuned to check out the full technical programme online after 1 April!

A special session on ‘Cooperation of seismologists, surveyors, and project developers for design of unique structures: state of the art and prospects’ will be organized. There will be discussion of new international standards which impose extensive requirements on data presentation formats, in different lines of seismic surveys.

The conference participants are also invited to take part in free short courses on Seismic Exploration for Mining Support

by I. Sanfirov and A. Babkin from the Geological Institute of the Ural Branch of the Russian Academy of Sciences; Crosswell Seismic and Vertical Seismic Profiling by A. Oshkin from Moscow State University; and Transient Electromagnetic Surveys for Engineering and Mining Geophysics by N. Kozhevnikov from the Institute of Petroleum Geophysics of the Siberian Branch of the Russian Academy of Sciences.

The event also features an exhibition, and for the first time, the student GeoQuiz. The contest will be held for master and post-graduate geoscience students.

Prize for the winning team will be travel grants to the 80th Annual EAGE Conference and Exhibition in Copenhagen.

For all information about Engineering and Mining Geophysics 2018, see www.eage.ru. Please note that the working language of the conference is Russian.

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EAGE NEWS

How getting more out of carbonates is possible

WORKSHOP

REPORT

‘Maximize the results from your Carbonate Reservoirs’ was the message from the Second EAGE Workshop on Well Injectivity & Productivity in Carbonates on 10–12 December 2017 in Doha, Qatar, co-chaired by Oussama Gharbi, Total Research Centre Qatar, and Eduardo da Motta, Texas A&M University Qatar. This is the report.

Nearly 40 delegates took part in some lively discussions during the workshop co-organized by Texas A&M University at Qatar and Total Research Centre-Qatar.

Short course The workshop began with a very informative short course ‘Advances in Carbonate Acidizing’ taught by Professor Ding Zhu from Texas A&M University. Dr Zhu started by laying out the main concepts and calculations of formation damage in the near-wellbore and productivity for both vertical and horizontal wells, explaining the importance of heterogeneity and anisotropy. She then proceeded to explain the goals and methods of well stimulation and the differences between matrix treatments and hydraulic fracturing, and matrix acidizing of sandstones vs carbonates. Next, she focused on wormholing process, and detailed the several models for matrix acidizing in carbonates, with examples and guidelines. She moved on to the results of core flood experiments conducted over the years and finalized the course addressing the many issues pertaining to the acidizing of horizontal wells.

Day 2 of the workshop started with the keynote Overview of Carbonate Acidizing by Professor Dan Hill from Texas A&M University, who showed the latest findings in the area and the importance of addressing the heterogeneous nature of carbonate reservoirs in order to optimize stimulation results.

Acid stimulation Four papers were presented by industry professionals Mateus Schwalbert (Petrobras), Chris Shuchart (ExxonMobil), N. Sheikh Ali (Total Research Centre Qatar), and T. Ahmed (Schlumberger).

Schwalbert described the empirical models available for predicting wormhole propagation, such as Furui’s and Buijse and Glasbergen’s. He used CFD simulations to represent the dissolution of the porous and confirmed previous results that four to six wormholes propagate radially in each plane. When the propagation is spherical, simulations result in 16 to 24 wormholes propagating spherically from the point of acid injection. Analogously, the spherical wormholes propagation pattern might become an ellipsoidal stimulated zone in anisotropic formations.

Shuchart explained several ways to enhance results from matrix acidizing in low-permeability carbonates. Sheikh Ali presented an experimental study on the complexity of reactive transport in carbonates. Ahmed presented a re-stimulation design and treatment workflow for mature wells based on the experience in the Middle East region. A substantial enhancement has been demonstrated for proper stimulation design that includes fluid selection, placement 12

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technique, volume determination, and diverter design based on the understanding of uncertainties risk and treatment objectives.

Advances in core flooding This session discussed studies related to estimating rock properties and their impact on well performance. Talha Khan from TAMU-Qatar campus shared the findings from a lab study to illustrate the challenges associated with porosity and permeability predictions for carbonate rocks using X-Ray Micro CT scans. He presented findings from the study of two carbonate lithologies (Estaillades and Ketton Limestone) to suggest that the uncertainties exist in the predictions due to an inability to achieve statistically representative

Workshop delegates at the workshop in Qatar.

volumes for image-based estimation using cone beam X-Ray micro CT equipment. Amr Sayeed, also from TAMU-Qatar Campus, shared the findings from an Eclipse-based simulation for water-wet. oil-wet and mixed-wet systems. He concluded that mixed-wet conditions produced the highest oil recovery and lowest residual oil saturations. He explained his findings by stating that in an oil-wet or mixed-wet environment invading water creates layers that allow oil to be connected and moved through the matrix towards the wellbore.

In the final presentation of the session, Jalel Ochi of Total EP, described core plug tests to assess the impact of entrained solids and hydrocarbons on the injectivity of produced water re-injection in carbonate and sandstone reservoirs. He concluded that for mixtures of solid particles with entrained oil droplets in injection water, the damage assessment based on flow of solid suspensions alone does not apply and the interaction of solid particles with the oil droplets needs to be considered.

Well completion Eduardo Da Motta from Texas A&M University at Qatar proposed a new completion design for large diameter intelligent wells meant to allow high productivity and full surface control and selectivity.

A. Abdul Rauf also from Texas A&M University at Qatar presented the possible applications of fibre-glass casing and tubing for shallow injection wells. Finally, Jingsheng Ma from Heriot-Watt

EAGE NEWS

University presented the paper ‘Shape Factor Determination of Horizontal Wells Productivity and Pressure Derivative Functions Evaluation Based on Generalized Models’.

Numerical modelling The first paper was presented by Andrew Seagraves from Schlumberger. In this paper an excellent experimental work was presented showing a perforation tunnel creation process using an explosive in real reservoir conditions. The subsequent formation damage and leak-off velocity were quantified. The second paper was presented byAhmad Abushaika from Hamad bin Khalifa University. In the presentation he showed an innovative numerical scheme that will help to simulate a reservoir considering all reservoir conditions. The final presentation by D. Guérillot from Texas A&M University at Qatar showed the advantage of a dual mesh approach for reservoir simulation.

There followed a very interesting poster session, including seven papers from academia and industry. The session included one minute presentations of each poster. Workshop participants selected the poster ‘Multiscale Imaging Analysis of Reactive Transport Processes’ by a group of researchers from Total Research Centre Qatar led by A. Thirion as the best paper.

Breakout session A. Amhamed from Qatar Environment & Energy Research Institute explained that natural gas (NG) processing starts from simple separation and conditioning for pipeline network for further processing, integrated offshore and onshore operations. The ultimate aim of his work is to enhance acid gas loading, reduce energy consumption in AGR system and strip CO2 at high pressure through modifying amine solvent and a new AGR process integration system. The results show that by maintaining the same specification of treated gas quality, the acid gas loading increased by approx. 40%, the amine circulation rate decreased from 522 m3/hr to 295 m3/h. The pumping power decreased by 47%, the external heating steam consumption decreased by more than 25%, and the air coolers electrical power and cooling water consumption were eliminated. Although there is an added compression power, the oil production could be enhanced by 1360 barrel/day. Moreover, 13.6 MMSCFD of CO2 is mitigated and utilized rather than flared to the environment.

S. Mansour from Qatar Environment & Energy Research Institute (QEERI) presented the impressive facilities designed to provide innovative solutions that underpin the sustenance of the ongoing infrastructure development in Qatar, thus responding to the aspiration of the current generation, whilst protecting and enhancing the natural environment for future generations, as clearly defined by Qatar 2030 vision.

Launch priorities for QEERI include: solar energy, water security, and clean air. coordination with existing and emerging energy and environment research in universities, Government and other private and public entities, and cooperation with other QF research institutes and programmes are an essential component of the QEERI operation.

After the technical sessions, co-chairs Eduardo Da Motta and Oussama Gharbi made their closing remarks and the workshop finished with calls for a new WIPIC in 2019.

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EAGE NEWS

Women’s Special Interest Group is meeting a need

One of the challenges of a global and multi-disciplinary association is to engage the different segments of its widespread community, each having its own interests, ideas and priorities. At the same time, similar issues – such as starting a successful career, balancing work and personal life, promoting women in the job market - are often relevant to members operating in different sectors, countries and roles.

One strategy for targeting these aspects which has proven to be particularly effective is the establishment of special interest communities: networks dedicated to specific target groups that actively contribute to the mission of the Association - fostering communication, fellowship and cooperation in geoscience and engineering fields - under the guidance of a committee of volunteers.

EAGE is proud to support two such special interest communities: Women in Geoscience and Engineering (WGE) and Young Professionals (YP). Both groups can be reached via LinkedIn and both EAGE members and non-members are free to join them.

The WGE special interest community is an ideal platform for sharing (and

seeking) career guidance and discussing gender-related challenges. Advice is delivered via periodical activities such as a weekly column summarizing relevant news, an active Job Corner and an e-Mentoring Programme, as well as a special session held in conjunction with the EAGE Annual Conference & Exhibition. To learn more about WGE activities and connecting with its inspiring global community, connect via LinkedIn or visit www.eage.org > Membership > Special Interest Communities.

Please use this QR-code to visit our LinkedIn page.

Meet member number 1000!

At in the beginning of 2018 the WGE group welcomed its 1000 th member and continues to grow. To celebrate this milestone, we contacted the 1000 th person who joined and invited her for an interview.

Judith Moreno Píriz is a geology undergraduate student from Barcelona and she was happy to share her story and how she approached Women in Geoscience and Engineering. Her profile is one out of the many that are represented within the WGE community, spanning from students to senior professionals and covering a large portion of the EAGE geographic distribution.

Where are you at in your career?

There are several pathways in my professional career in which I am very interested: I am in my last year of a Bachelor’s degree in geology and I’ve been learning a lot of science, data processing and interpretation. Working in geology is challenging due to important

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rock setting complexities but I am ready for the challenge. I would like to dedicate my future career to working in the field of this beautiful science.

How did you hear about the WGE EAGE SIC? I heard about the EAGE thanks to my advisor who, along with other professors from my faculty, invited me to assist as a host at a Congress in Barcelona. This volunteering opportunity allowed me to attend some of the lectures and I was also able to present my work. I was very pleased with this experience. Then, this past year, my advisor presented my final degree work at a poster session at the EAGE Conference in Malmö. I am very proud to have been able to contribute and take part in such a huge event.

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Judith Moreno Porotz.

What do you expect from the group? How do you contribute?

I hope to be kept updated with news. As a new member I could contribute in many ways such as introducing and promoting this community among my classmates and faculty members and forming a blogspace. I would also be very interested in writing papers and presenting them to new meetings and conferences.

EAGE NEWS

Kraków workshop to focus on value of passive seismic applications It is particularly appropriate that the seventh instalment of the EAGE Passive Seismic Workshop is due to take place on 26-29 March 2018 in Kraków, Poland. The city Kraków has been a centre of excellence in mining-induced seismicity for decades, which makes it an ideal location to gather and discuss new insights into passive seismicity.

This year’s technical committee is being chaired by Stanislaw Lasocki (Institute of Geophysics Polish Academy of Sciences) and Ted Urbancic (ESG).

Previous workshops have considered everything from the fundamentals of passive seismic monitoring, from surface to downhole, to the integration with geomechanics and new technologies such as DAS and InSar as primarily related to reservoir behaviour. The Kraków workshop, with its historical perspective, will also focus on understanding how passive seismic monitoring is used in various industrial applications, from mining to petroleum and geothermal applications.

With an interactive format and keynote discipline experts, the workshop provides an opportunity to explore and tap into the combined knowledge of the participants to learn and discuss specific problems to address the challenges ahead.

Invited keynote speakers and discussions in the morning will introduce the different problems and provide some background information. The poster sessions and round table discussions provide an opportunity to explore and discuss these topics in more detail after lunch. In order to tap

Rynek Glówny, the heart of Krakow and close to the venue.

into the combined knowledge of the participants, the afternoon will be dedicated to discussions of specific problems in very small groups before rounding out the day with a summary that clearly captures the learnings and problem solutions.

The value of microseismic and other passive seismic data is measured by its capability to impact business critical decisions. Although microseismic data has been used extensively to this effect, often the decision makers perceive mixed messages from their technical experts with respect to the validity and accuracy of processing and interpretation

results from microseismic projects. The workshop intends to focus on topics and problem solutions that have a direct impact on the cost-effective application of microseismic data.

The EAGE-PSW workshop LinkedIn discussion group also allows you to join in the discussion before and after the workshop.

In addition to the workshop there is a social programme, which includes exploring and then dinner in the world-famous Wieliczka Salt Mines. Online registration is still open for the workshop until 24 March 2018.

The EAGE Student Fund supports activities that help bridge the gap between the university and professional environments for students of geosciences and engineering. Thanks to our Student Fund contributors we can continue supporting students around the globe and through this securing the future of our industry. For more information to become a Student Fund contributor, please visit eagestudentfund.org or contact us at students@eage.org.

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No time is a good time ‘Part of being a winner is knowing when enough is enough.

The main reasons cited by the Schlumberger boss for quitting Sometimes you have to give up the fight and walk away. Move were that too many vessels were chasing too few jobs, the technical on to something else that’s more productive’. This tip for top entry level for smaller operators to enter the market was too low executives would surely hearten Paal Kibsgaard, Schlumberger’s and, perhaps most painfully, attempts by contractors to differentiate chairman and CEO, who made the startling decision in January to themselves from the competition with superior technology were lost pull the company out of any further operational involvement in the on oil company customers who have increasingly treated seismic marine and land seismic acquisition business. He would probably be data acquisition as a commodity to be ordered off the shelf when disarmed to discover that the source of the advice came from none required. other than Donald Trump in his pre-presidential It must hurt that Schlumberger spent a TV celebrity days. reputed fortune on developing the IsoMetrix ‘The logic of Nevertheless the logic of the Schlumberger marine seismic acquisition system, launched in the Schlumberger decision is irrefutable, and arguably could 2012 and acknowledged by geophysicists to be have been taken a long time ago. It is ironic decision is irrefutable.’ an important advance on previous broadband that it was a Norwegian who finally pulled the imaging solutions. However, the technology plug. On the marine side Norwegian shipbuilders, ship owners never became the killer application in the marketplace to vanquish and investors have driven the market since the advent of 3D the opposition. It was the same story with the earlier Q-marine multi-streamer vessel in the 1990s, and hence have been a major point receiver system introduced with huge fanfare in the early factor in the chronic over-supply that has plagued this segment of 2000s. the E&P service sector.

Recasting the WesternGeco story with the benefit of hindsight, From all accounts Kibsgaard had been sceptical about the value it is possible to see one overriding factor in play. A similar pattern of WesternGeco’s seismic acquisition operations ever since he is evident in the evolution of major competitors such as CGG and succeeded Andrew Gould as Schlumberger boss in 2011. Two or PGS. It is best summarized as relentless consolidation, although it three years ago the WesternGeco division was quietly divorced from may not have looked like that at the time. What transpires is that the its main data processing and multi-client functions and left to fend main tenets of conventional enterprise culture, prioritizing growth for itself as a seismic vessel operator. Unsurprisingly it struggled and shareholder value, have never benefited this sector of the in the extremely unfavourable market affecting all marine seismic industry for very long. contractors. Six years ago the company boasted a fleet of 18 vessels, Schlumberger dived into the industry when the first of many earlier this year that was down to five immediately available vessels recessions hit the seismic business leaving companies exposed and only two of which were active. vulnerable to takeover. In 1985 the company acquired Merlin ProfilIn justifying the ‘difficult’ decision to write off Schlumberger’s ers, an integrated UK acquisition and processing company. Its next seismic acquisition activities, Kibsgaard became the first top execstep was to buy the Geophysical Company of Norway (Geco), in utive ever to fully acknowledge that the vessel-operating marine which Anders Farestveit was the prime mover having helped found seismic contractor business model is unsustainable. This must have the original company as Geoteam-Computas in 1972. (Farestveit been a tough statement to make given the billions of dollars that would later be involved in the creation of Wavefield Inseis, which the company has poured into company acquisitions, equipment and traded briefly before acquisition by CGGVeritas in 2008 at a lower research and development. valuation than anticipated owing to market conditions).

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likelihood of any relief to the persistent over-capacity. Even if In due course Schlumberger made further significant addioil company E&P spending picks up a little this year and next as tions such as Delft Geophysical on the processing side plus forecast, there will still be too much vessel and streamer capacity land and marine contractors Prakla-Seismos and Seismograph available.

Service, including the GeoQuest software services line. When In terms of the potentially active world fleet, the Westernthe 1999 oil industry downturn once again floored the seismic Geco collection of six streamer vessels and three ocean bottom/ business, Schlumberger’s Geco-Prakla was one of the two major multi-purpose acquisition vessels which it owns represents only a players. Its main rival was Baker Hughes’ Western Geophysical. fraction. PGS, Polarcus, Shearwater and CGG, as it emerges from That company’s history was another saga of mergers, principally its financial difficulties, all have usable inventory in the wings.

Geophysical Services (GSI) and Geosource into Halliburton This could be why Kibsgaard referred to selling to a new entrant, Geophysical Services (HGS) and then HGS and Western Atlas but from where? Most speculation suggests into Western Geophysical, before ownership ‘There will still be too China or Russia. It is, however, never beyond

by Baker Hughes. the bounds of possibility that Norwegian In 2001 as seismic players struggled with much vessel and investors club together to form yet another the oil business recession, Schlumberger made streamer capacity marine seismic contracting company, perhaps its move and bought 70% of Western Geoincluding existing players. If this resulted in physical, combining it with Geco-Prakla to available.’ further significant consolidation, then it would form WesternGeco. Schlumberger took over make sense, albeit painful. full ownership in 2006 at a cost of $2.4 billion.

As far as Schlumberger’s land seismic capability goes, there It is worth reflecting that Schlumberger, Halliburton (which will be a load of vibrator trucks and many kilometres of cable up sold HGS to Western Atlas in 1994 having incurred major losses), for grabs from the company’s long term contracts in the Middle and Baker Hughes were at the time the largest oilfield service East and elsewhere. Its most recent acquisition technology companies in the world. Today, none of them is now interested upgrade, the UniQ integrated point receiver land seismic system in offering a comprehensive land and marine seismic acquisition has been available for sale or lease for some time. This is not the and processing service. case for the marine-related IsoMetrix and Q products for marine, Kibsgaard’s vision for Schlumberger’s continued involveseabed, borehole, etc which are unlikely to be of interest to ment in the seismic business is ‘asset light’. It is the one that existing international marine seismic contractors. They have their has served TGS so profitably for two decades. Without the own proprietary technology. overhead of vessels, Kibsgaard said the company will focus on What comes across from Schlumberger’s decision is that it multi-client data processing and interpretation businesses. This was strictly business. Seismic acquisition was found to be the will presumably include the commissioning of surveys via a only product line that failed to meet future return expectations. As third party in the same way as multi-client players such as TGS such its axing was inevitable, according to the company’s CEO. and Spectrum.

This contrasts with those that say too many companies For some time Schlumberger’s technology gurus have been have been run by geoscientists, not business types, and that has talking about advances in high-performance computing, data contributed to the malaise which the sector finds itself in. That is analytics and machine learning. Kibsgaard said such technologies not a claim easy to substantiate because there is nothing to stop a will enable the company to ‘extract significantly higher value geo turning into a commercially astute CEO. from our previously acquired data’ and one must assume, future That said, the seismic business has always been technology multi-client survey data. driven, and therefore in a geoscientist’s comfort zone. A common Kibsgaard conceded that only a company of the size of thread in many of the big investment decisions of the last two Schlumberger was able to carry out the planned divestiture stating decades has been the belief that the best technology solutions will that ‘stand-alone acquisition players have no other choice than to win the day, whether bigger and better boats, smarter equipment stay in and fight on to avoid bankruptcy while hoping for a better or improved imaging techniques. On land, higher channel counts, future. We at Schlumberger do have a choice and we chose to exit cableless acquisition and improved sources have preoccupied the commoditized land and marine acquisition business’. equipment suppliers and contractors.

Details of Schlumberger’s exit strategy remain to be clarified.

We now know definitively that technology differentiation has It would be surprising if the company didn’t want to recoup as not worked in this sector. Few of the mergers of the past two or much of its losses as possible in terms of equipment and techmore decades have added to shareholder value. Who should carry nology. Kibsgaard stated that the company may end up selling the can is a moot point. its acquisition business to a new market entrant. Those are words Meantime Kibsgaard’s decision makes perfect business sense, that the competition did not want to hear. If withdrawing from but it is not exactly quitting while you’re ahead. the marine side still leaves vessels in the pool, then there is little

Views expressed in Crosstalk are solely those of the author, who can be contacted at andrew@andrewmcbarnet.com.

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HIGHLIGHTS

INDUSTRY NEWS

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Global survey of oil bosses signals rising confidence

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India puts 55 oil and gas blocks up for sale

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Eni launches world most powerful industrial computer

Schlumberger quits seismic acquisition market and puts fleet up for sale

Amazon Conquerer is among the vessels that will be taken out of service by Western Geco.

Schlumberger has decided to exit the marine and land seismic acquisition market and turn its WesternGeco product line into an asset-light business, focusing on multi-client, data processing, and geophysical interpretation services.

Schlumberger indicated that WesternGeco has stopped bidding on new contracts and its ships and equipment would be called back after completing the company’s contractual commitments.

WesternGeco’s contractual backlog was $399 million at the end of the fourth quarter of 2017, down from $489 million at the end of the third quarter of

2017. WesternGeco’s continued poor performance is reflected in the fact that parent company Schlumberger’s Reservoir Characterization Group — which includes WesternGeco — reported fourth quarter revenue of $1.6 billion, down 8% sequentially and 2% year-on-year, despite improved figures in most other areas of the company. Multi-client sales were a disappointing $166 million in the fourth quarter of 2017 and $127 million in the third quarter of 2017.

The company said that it is evaluating options for selling its assets but recognized that the process could take some time, FIRST

given the depressed state of the seismic aquisition market. The company acknowledged that it is not expecting to recover its full investment and has written off $1.114 billion in its fourth quarter results towards the cost of restructuring WesternGeco as well as a $247 million impairment in the value of its seismic data library.

Schlumberger chairman and CEO Paal Kibsgaard said: ‘We have taken the difficult decision to exit the marine and land seismic acquisition market, and instead turn our WesternGeco product line into an asset-light business, built on our leading position within multi-client, data processing and geophysical interpretation services.

‘Based on in-depth analysis, the only product line that does not meet our return expectations going forward, even factoring in an eventual market recovery, is our seismic acquisition business.

‘This has not been an easy decision to make. But following a careful evaluation of the current market trend, our customers’ buying habits and our current and projected financial return, it is an unfortunate and inevitable outcome.’

The company took an $800 million charge when it retired older and higher-cost WesternGeco vessels in December 2014, reducing the fleet to nine survey vessels (six streamer acquisition vessels and three ocean bottom seismic boats) and six source boats from 15 survey vessels and eight source boats. Vessels that will now be taken BREAK

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out of service include its purpose-built Amazon-class vessels Amazon Conquerer, Amazon Warrior as well as WG Amundsen, WG Vespucci, WG Cook and WG Columbus. A spokesperson for the company said that in future WesternGeco would look to contract vessels for seismic acquisition from ‘the available fleet in the market’ as part of its asset-light model.

Over the years the company has invested in technology such as Isometrix, single-sensor true 3D broadband

measurements and the Q-Marine point receiver marine seismic system, the only single-sensor true 3D broadband measurements for full-bandwidth imaging of fine-scale structures in the subsurface in all directions — vertically, along the streamer, and crossline between the streamers — for detailed imaging from seabed to reservoir. WesternGeco has fiercely protected the intellectual property of its acquisition systems in the courts over the years.

Analysis of the market impact of WesternGeco’s restructuring was mixed.

One observer of the seismic market noted that ‘Schlumberger exiting the industry probably bodes well for other players’.

However, analyst Jeremy Punnett, managing director at Stamford Maritime, said. ‘If you go long on seismic companies at this point you might want to ask yourself what Schlumberger’s management knows that you don’t?’

Global survey of oil bosses signals rising confidence

More will be spent on infrastructure.

A survey of 813 senior oil and gas executives has found that 66 per cent expected to increase or maintain capital spending in 2018, compared with 39 per cent at the same point a year ago.

According to research by the risk management company DNV GL, the number of oil bosses expressing confidence in growth has risen from 32 per cent to 63 per cent.

In DNV GL’s report, Confidence and Control: the outlook for the oil and gas industry in 2018, executives cited greater stability in the oil price and a reduction in 20

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costs as reasons for the brighter outlook.

They expected the price of oil to be about $63 a barrel at the end of this year, above the World Bank’s prediction of $55.

The report reveals an imminent turnaround in spending on R&D and innovation after three years of cuts and freezes. More than a third (36%) expect to increase spending on R&D and innovation in 2018: the highest level recorded in four years.

Digitalization (37%) and cyber security (36%) will form the principal areas of R&D investment focus this year.

Nearly one in five respondents (19%) cite lack of investment in innovation as a key barrier to growth in 2018 — on a par with oversupply of oil and gas (19%), operating costs (18%), reduced exploration activity (19%) and competitive pressure (22%).

‘Our research indicates that the oil and gas industry is becoming more confident that its successful focus on cutting costs and building new efficiencies into the value chain will last. A new optimism is now emerging, driven from a common understanding that cost levels are under control and operators can make reasonable margins from an oil price that is expected to stay lower for much longer.

The winners in our industry this year are those who can continue to make a clear shift from an expansion mindset to a margin mindset, and recognize the importance of implementing new models and technologies to improve operational efficiency,’ said Liv Hovem, CEO, DNV GL – Oil & Gas.

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Half of respondents (50%) are steadfast in their efforts to increase cost control measures in 2018, consistent with 2017 (51%), suggesting permanent new discipline in the industry. Close to two-thirds (62%) believe that these are permanent changes, mirroring the results from last year’s survey (63%).

‘Intentions to increase capital and innovation spending in 2018 come alongside a clear signal that oil and gas industry costs will not return to pre-2014 norms.

The need to invest in R&D is urgent for some parts of the sector and our research shows that industry leaders plainly see the need to maintain a tight control over costs,’ added Hovem.

Europe has the most improved outlook for the oil and gas sector (up from 25% last year to 64%), with Latin America at 77% (46% in 2017) and Asia Pacific at 57% (30% in 2017) and North America (up from 49% to 57%).

Nearly three quarters (73%) of senior industry professionals say their organization was somewhat or highly successful in achieving cost efficiency targets in 2017.

Just 37% of senior industry professionals named the oil price as an expected barrier to growth for 2018, compared to 64% one year ago.

Nearly two-thirds (62%) of respondents expect their organization to maintain or increase headcount in 2018, compared to 43% in 2017 – 58% of respondents expect to maintain or increase operating expenditure in 2018, up from 41% last year.

INDUSTRY NEWS

ION and WesternGeco patent lawsuits goes to US Supreme Court ION Geophysical has vowed to fight on if the US Supreme Court overturns a decision in the US Court of Appeals for the Federal Circuit not to impose damages on ION for infringing a WesternGeco patent.

WesternGeco sued ION and one of ION’s customers for patent infringement in 2009. In 2012, a jury awarded WesternGeco damages for reasonable royalties and lost profits. The lost-profits damages were based on the use of ION’s products outside of the US. On appeal, ION argued that WesternGeco was not entitled to lost-profits damages for two reasons: one, that under applicable law, WesternGeco cannot recoup lost profits for the overseas use of ION’s products by ION’s customers; two, that lost-profits can only be recouped from a direct competitor, and that ION and WesternGeco are not direct competitors in this market.

The US Court of Appeals for the Federal Circuit agreed with ION on the first issue and, as a result, overturned the award of lost-profits damages.

On 12 January, 2018, the Supreme Court granted WesternGeco’s petition to review the Court of Appeal’s ruling. The Supreme Court is expected to issue a decision by the end of June 2018.

If the Supreme Court upholds the Court of Appeal’s decision, the case will be over and ION will owe no further damages. If the Supreme Court overturns the Federal Circuit’s decision, the case will be remanded back to the Court of Appeals, at which point ION said that it will present its second argument for eliminating the award of lost profits.

Other proceedings may have an impact on WesternGeco’s ability to recover lost profits damages even if WesternGeco prevails in the Supreme Court, said ION. ION was a party to a challenge of the validity of WesternGeco’s patents to the Patent Trial and Appeal Board (PTAB). The PTAB has invalidated four of the six patent claims that formed the basis for the jury verdict in this case. WesternGeco appealed against that decision to the Court of Appeals

for the Federal Circuit, which was scheduled to hear oral argument on January 23, 2018.

If the Court of Appeals affirms the PTAB’s invalidation of the patents, that may provide a separate ground for reducing or vacating any lost-profits award, said ION. ‘We will continue to defend vigorously against WesternGeco’s claims and the award of lost-profits damages,’ said Brian Hanson, ION’s president and chief executive officer. ‘If the Supreme Court reverses the decision, we are confident about revisiting our second argument at the Court of Appeals. In addition, we believe the IPR process underway is also very positive for our legal position.

‘This is clearly a David and Goliath situation where a company like Schlumberger has the luxury of unlimited legal expenditure without having to rationalize the additional expense of continuing these proceedings. If the Supreme Court does not put this issue to rest this year, we expect this lawsuit will continue for years, potentially beyond 2020.’

Norway awards record number of licences in APA 2017 A series of seismic surveys are expected to take place off the Norwegian Continental Shelf as part of the work commitments for the country’s Awards in Pre-Defined Areas 2017 licensing round.

The Norwegian Ministry of Petroleum and Energy has announced that it has offered 75 production licences in APA 2017. ‘The number of licences is the highest ever awarded in a licensing round on the Norwegian continental shelf,’ said Minister of Petroleum and Energy, Terje Søviknes. ‘With this award, we maintain a predictable and high level of exploration acreage awards to a broad range of oil companies.’

Statoil leads the way with 17 operaterships; BP 14; Lundin 6; ConocoPhillips 4;

Faroe Petroleum 4; Total 3; OMW 3; Spirit 3; Shell 2; Wintershall 2; VNG 2; Wellesley 2; Engie 2; MOL 2; Point 2; Repsol 2; Suncor 2; INEOS 1; and Petrolia 1.

Statoil also leads the way with interests in 31 licences; BP 23; Lundin 14; Spirit 11; DNO 10; Point 10; Faroe Petroleum 8; ConocoPhillips 7; Wellesley 7; Wintershall 6; Concedo 5; DEA 5; OMW 5; Suncor 5; Shell 4; Capricorn 4, Engie 4; Eni 4; Petrolia 4; Total 3; VNG 3; Maersk 3; MOL 3; Repsol 3; ExxonMobil 2; Lotos 2; OKEA 2; Pandion 2; PGNiG 2; Idemitsu 1; INEOS 1; INPEX 1; Lime 1; and Skagen44 1.

The 75 exploration licences are distributed over the North Sea (45), the Norwegian Sea (22) and the Barents Sea (8). Thirty-four

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oil companies, ranging from the large international majors to the small domestic exploration companies, are awarded ownership interests in one or more production licences.

Nineteen of these companies will be offered one or more operatorships.

Terje Søviknes, Norway’s Minister of Petroleum and Energy.

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INDUSTRY NEWS

Mexico sells 19 blocks in deepwater round An auction of 29 deepwater oil and gas fields offshore Mexico will raise an estimated $93 billion and generate seismic data sales estimated at $800 million.

Nearly $100 million will be spent offshore Mexico.

In the country’s offshore bid round 2.4, the biggest sale since the state’s oil monopoly was ended in 2014, Royal Dutch Shell was the biggest winner snapping up interests in nine of 19 oil and gas blocks sold in the auction on 31 January.

Qatar Petroleum and Petronas each picked up interests in five oil and gas blocks and the Mexican oil company Pemex picked up interests in four blocks. Repsol picked up interests in three blocks. Among the oil companies that registered to take part but did not win any blocks were ExxonMobil, BP, Total and China Offshore Oil Corp.

In the Perdido area, Shell and Pemex won Area 2 (light oil) for $80 million and a royalty of 15%. Shell and Pemex also won Area 3 (light oil) for $80 million and a royalty of 15%. Shell and Qatar Petroleum won Area 3 (super light oil and light oil) for $40 million and a royalty of 10%. Shell and Qatar Petroleum won Area 4 (light oil) for $58 million and a royalty of 10%. Pemex won Area 5 (light oil) for $41.5 million and a royalty of 6%. Shell and Qatar Petroleum won Area 6 (superlight oil and wet gas) for $115 million and a royalty of 20%. Shell and Qatar Petroleum won Area 7 (light oil) for $114.5 million and a royalty of 20%.

In the Mexican Ranges area, Repsol, Petronas and Ophir won Area 10, thought to contain dry gas and light oil for $114.5 million with an royalty of 20%.

Petronas, Ophir, PTTEP won Area 12 (dry gas and light oil) for $103 million with a royalty of $20. Repsol and Petronas won Area 14 (dry gas and light oil) for $80 million with an royalty of 20%.

Pemex won Area 18 (dry gas and wet gas) for $45.5 million with a 7% royalty.

In the Salinas area, Shell won Area 20 (light oil) for $114.5 million and a royalty of 20%. Shell won Area 21 (light oil, heavy oil and superlight oil) for 114.5 million with a 20% royalty.

Chevron, Pemex and Inpex won Area 22 (heavy oil) for $96 million and a royalty

of 18.4%. Shell won Area 23 (heavy oil) for $58.7 million and a royalty of 10%. Eni and Qatar Petroleum won Area 24 (wet gas and light oil) for $56.3 million and a royalty of 9.5%.

Petronas won Area 25 (heavy oil) for $79.9 million and a royalty of 20%.

Petronas won Area 26 (heavy and light oil) for $103 million and a royalty of 20%. Shell won Area 28 (light oil and extra heavy oil) for $114.5 million and a 20% royalty. Repsol, Sierra and PTTEP won Area 29 (wet gas, light oil) for $114.5 million and a 20% royalty. Areas 1, 8, 9, 11, 13, 15, 16, 17 and 27 were ‘declared deserted’.

With oil prices at a three-year high, conditions were better for this auction than any of the previous eight sales in Mexico since 2015, and which have drawn investment pledges of around $61 billion.

Because there has been very little deepwater exploration in the past, the latest sale is expected to create strong demand for seismic data and the Mexican government has made all the information it has available to seismic survey contractors. An estimated $2 billion has been spent on carrying out seismic surveys since 2015 and reprocessing Pemex’s old data on the region.

The Mexican government has given seismic survey companies licences for up to 12 years to sell data they collect.

TGS to process 30,000 wells onshore and offshore Mexico TGS has been given the go ahead by the Mexican regulator, Comisión Nacional de Hidrocarburos (CNH), to process the country’s library of more than 30,000 wells in Mexico.

This award grants TGS the right to process and deliver well data products to companies exploring in offshore and onshore Mexico. The first phase of processing is focused on all onshore and offshore exploration and appraisal wells, plus key development wells for bid rounds.

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TGS’ Mexico well data packages are available through the TGS R360 web portal. The packages of subsurface data include digitized well logs in LAS+ format, smartrasters, and validated well headers, with optional checkshots and directional survey plus, checkshot plus, mud LAS and lithology LAS. All data products come with full coverage of the wellbore system from surface to total depth.

The packages provide coverage of all offshore and onshore basins including

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exploration and appraisal wells in the Perdido Fold Belt and Salina basin with additional focus on high interest areas such as Sureste and Veracruz, where recent discoveries have received industry-wide attention. The packages also focus on Tampico-Misantla, with dense coverage across Chicontepec, and deep data for Agua Nueva and Pimienta unconventionals extending through the Burgos Sabrina Basins. The first delivery of well data packages was expected in February 2018.

INDUSTRY NEWS

CGG 2017 revenue up 10% year-on-year CGG has reported that its full-year 2017 revenue was up 10% year-on-year at $1.320 billion compared to $1.196 billion in 2016.

Fourth quarter revenue stood at $400 million, compared to $328 million in Q4 2016, with GGR at $256 million, Equipment $116 million, Contractual Data Acquisition $40 million and Elimination $12 million.

Within GGR, Multi-Client Q4 revenue was ‘above expectations’ at $160 million, while Equipment and Contractual Data Acquisition revenues were in line with expectations.

As a result of improved multi-client revenue, 2017 EBITDA (before restructuring costs) should be higher than expected, showing an increase above 10% on 2016 EBITDA of $328 million.

Costs related to the company’s Transformation Plan and its financial restructur-

ing are estimated at $187 million for the whole year 2017, including $26 million booked in Q4.

Net debt was $2.640 billion at December 31, 2017, versus $2.571 billion at 30 September, 2017, with a cash balance at $315 million at December 31, 2017.

However the cash generation is negative in 2017, as expected.

CGG’s €112 million ($140 million) rights issue is expected to be launched shortly.

Meanwhile, CGG GeoSoftware has donated its Jason reservoir characterization software suite to the University of Oslo (UiO).

Dr Nazmul Haque Mondol, associate professor, petroleum geology and geophysics, said: ‘Having seen the extensive and integrated range of solutions the Jason software package can offer, we wanted

our students to have access to such tools by incorporating them in our teaching and research programme. Now students can use industry-leading technology like Jason for their learning and research and also become familiar with the software they are likely to use when they enter the workplace.’

Finally, CGG has rebranded its Data Management Services division as Smart Data Solutions to reflect its engagement in projects that address the digital transformation programmes using technologies such as machine learning and public cloud.

‘Using Extract, Transform and Load technology, data are made available alongside current volumes in next-generation platforms that meet the industry’s data management requirements well into the future,’ said CGG.

IAGC demands legislation to speed up permitting of seismic surveys in the US The International Association of Geophysical Contractors (IAGC) has urged passage of the SECURE American Energy Act to remedy the ‘misapplication’ of the Marine Mammal Protection Act (MMPA) that is causing long delays to seismic surveys.

The IAGC told a US House Committee on Natural Resources, Subcommittee on Energy and Mineral Resources Oversight Hearing, ‘Deficiencies in the Permitting Process for Offshore Seismic Research’ of the need to modernize the MMPA. Ryan Steen of Stoel Rives, testifying on behalf of the IAGC said: ‘In the past decade, these problems have manifested in the form of routinely delayed permitting processes, inconsistent and misguided analyses of potential impacts, and opportunistic advocacy litigation intended to block or impede offshore development.’

Citing the findings of a recent Government Accountability Office report

detailing how America’s offshore energy potential has been undermined by ‘bureaucratic dysfunction’, Steen also said the manner in which key federal agencies have carried out their federal mandates is not in line with the intent of Congress when it directed the ‘expeditious and orderly development’ of the nation’s Outer Continental Shelf under the Outer Continental Shelf Lands Act (OSCLA).

Steen went on to point out that despite ‘fallacious allegations’ by environmental advocacy organizations, in the more than 50-year history of seismic operations in US waters, the scientific record continues to confirm seismic survey activities have had nothing more than a negligible impact on marine mammal species.

This finding has been repeatedly substantiated by federal agency scientists in numerous public documents over the years, he added.

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Steen recommended setting clear and firm deadlines for each stage of the permitting process and establishing and implementing consequences for agencies when those deadlines are not met.

Finally, Steen reinforced the IAGC’s endorsement of the SECURE American Energy Act introduced by Representative Steve Scalise (LA). ‘The bill would not, as has been suggested, eliminate mitigation requirements or reduce substantive protections for marine mammals. Rather, the bill helps to accomplish what any reasonable person would expect of a federal regulatory programme: transparent standards; firm timelines; efficient process; and elimination of redundancy.

Indeed, the only basis for opposing this bill would be an antagonism to efficient federal processes and a desire for the ambiguities and inefficiencies that create opportunities for delay and litigation.’

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INDUSTRY NEWS

PGS reports Q4 net loss of -$194 million PGS has made a fourth-quarter net loss of -$194 million on revenues of $236 million and an operating loss of -$159 million, compared with a net loss of -$190 on revenues of $207 million in the third quarter of 2017 and a net loss of -$156 million on revenues of $154 million in the fourth quarter of 2016.

Fourth quarter EBIT was -$159 million compared with -$113 million in Q3 and -$92 million in the fourth quarter of 2016.

Multi-client pre-funding revenues were $299.4 million with a corresponding pre-funding level of 140%, compared to $242.3 million and 121% in 2016.

Multi-client late sales of $235 million, compared to $226.8 million in 2016.

PGS invested $54 million in its multi-client library, compared to $47.8 million in the third quarter of 2017.

PGS reported full-year revenue of $839 million, compared with $764 million in 2016. EBIT was -$383 million and PGS reported a net loss of -$523 million, impacted by impairments and other charges of $177 million related to the company’s transformation plan and ‘ceasing activities that don’t currently generate cash’. Meanwhile, the company settled

its disputes related to ISS service tax for licensing of multi-client data with the tax authorities of Rio de Janeiro. Cash flow from operations of $281.8 million compared to $320.9 million in 2016.

Rune Olav Pedersen, president and CEO of PGS, said: ‘We experienced a strong finish to our multi-client sales from all regions in Q4, making the full-year multi-client performance an improvement from 2016. Our capitalized multi-client investments ended at $213.4 million. We achieved a sales-to-investment ratio of close to 2.5 times, continuing on the positive trend from 2016 when the ratio for the year was 2.3 times.

‘The marine contract market was challenging in 2017 with significant seasonal swings. To address the continued difficult market fundamentals we have implemented a centralized, simplified and streamlined organization in Q4, combined with improved flexibility for vessel and imaging capacity.

‘We commenced operating in the new organization from 1 January 2018. We are confident that we will reduce the full year gross cash cost by more than $100 million in 2018, compared to 2017, which together with

lower capital expenditure should position us well to achieve our target of delivering positive cash flow after debt service this year.’

Liquidity reserve of $257.3 million at year-end 2017, compared to $271.7 million in 2016. Interest bearing debt stands at $1.4 billion.

In 2018 ‘PGS expects the higher oil price, improved cash flow among clients and unsustainable reserve replacement ratios to benefit the marine 3D seismic market fundamentals going forward’.

However, it warned that a market recovery will ‘take some time’.

PGS expects full-year 2018 gross cash cost below $575 million. Multi-client 2018 cash investments are expected to be $250 million. More than 50% of 2018 active 3D vessel time is expected to be allocated to multi-client acquisition.

Capital expenditure for 2018 is expected to be approximately $50 million.

The order book totaled $135 million at 31 December, 2017 (including $101 million relating to multi-client), compared to $167 million at 30 September, 2017 and $215 million at 31 December, 2016. The company expects to be able to book and operate eight 3D vessels from Q2 2018.

India puts 55 oil and gas blocks up for sale India has launched an auction of 55 oil and gas exploration blocks under new rules.

India’s Prime Minister Narendra Modi.

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The world’s third biggest oil importer last year eased rules and allowed companies to carve out areas where they want to drill to attract greater interest and monetize as much as 220 billion barrels of undiscovered oil and gas resources.

In the country’s first licensing round for eight years, the identified blocks, spread over a 59,000 km2 area, are on offer with some advantages given to companies that first identified the area.

About 65% of the 55 blocks are on land and mostly in the northeastern state of Assam and western states of Gujarat and Rajasthan.

The last date to submit bids is 3 April and the contracts are expected to be signed by the end of July, said Atanu

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Chakraborty, head of India’s Directorate General of Hydrocarbons.

‘This is the biggest offering (of blocks) in the last decade and we are offering a high-quality area, as the companies themselves have chosen it,’ he said.

India imports nearly three-quarters of its energy and Prime Minister Narendra Modi has set a target of cutting the country’s fuel import dependency to two-thirds by 2022 and to half by 2030.

In previous licensing rounds, India had a muted response from global oil firms but Chakraborty is hopeful of a better response in the present climate.

‘With oil prices now looking up, we anticipate good interest,’ he said.

INDUSTRY NEWS

Fugro carries out seismic surveys in the Arabian Sea Fugro has started a programme of geophysical and geotechnical surveys offshore Abu Dhabi as part of the Hail and Ghasha development being led by the Abu Dhabi National Oil Company (ADNOC).

Fugro has mobilized equipment including self-elevating platforms for geotechnical work and crew accommodation as part of ADNOC’s largest sour gas field project in the Arabian Gulf.

In the Hail field, an inter-tidal shoal area, Fugro is conducting surveys with amphibious buggies while in deeper water, marine geophysical and bathymetric surveys are being performed using its survey vessel, Fugro Proteus.

Chris Arnott, Fugro’s project delivery manager, said: ‘The geotechnical workscope includes boreholes, grab samples, vibrocores, cone penetration tests, pressuremeters and downhole seismic.’

Bathymetric, multi-beam echo sounder, tide gauges, ultra-high resolution seismic sub-bottom profiling, magnetometer and side scan sonar make up the geophysical survey activities at the site.

Louis Burnard, Fugro’s country manager, UAE added, ‘Our involvement in this strategic project for the United Arab Emirates further strengthens Fugro’s relationship with ADNOC. It follows more than 30 years of collaboration across all of the

company’s subsidiary operating companies in Abu Dhabi.’

Fugro Proteus will conduct surveys in the Hail field.

Big oil companies report big rise in profits Statoil has reported fourth-quarter revenue of $4 billion up from $1.7 billion in the same period in 2016. Q4 earnings after tax were $1.3 billion, up from -$40 million in the same period last year. IFRS net income was $2.6 billion, up from negative -$2.8 billion in the fourth quarter of 2016.

Full-year 2017 earnings were $12.6 billion, compared with $4.1 billion in 2016. Full-year IFRS net income was $4.6 billion, compared to -$2.9 billion in 2016.

‘We had record high production both in the fourth quarter and for the full year,’ says Eldar Sætre, president and CEO of Statoil. ‘We have taken down our capital expenditure to $9.4 billion from an initial guiding of $11 billion.’

Production growth was above 6% with Statoil delivering 2134 mboe per day in the fourth quarter, an increase from 2095 mboe per day in the same period in 2016.

The company completed 28 exploration wells and made 14 commercial discoveries in 2017.

Statoil expects capex of $11 billion in 2018 and to deliver 1-2% production growth in 2018 and annual production

OMV starts land survey in Austria

growth of 3-4% from 2017 to 2020.

The company expects to drill around 40 exploration wells in 2018.

Meanwhile, BP has reported an increase in profits by up to 139%. Profit was $6.2 billion for full-year 2017 and $2.1 billion for the fourth quarter, compared with $2.6 billion and $400 million for full year and fourth quarter 2016.

Upstream production is up 12% at 3.6 mboe a day, the highest since 2010.

Exploration delivered the most successful year for BP since 2004, with around 1 bboe resources discovered.

Royal Dutch Shell’s profit more than doubled in 2017 to $16 billion, its highest since the start of the 2014 downturn. The company has delivered $39 million of cash flow from operations.

Halliburton has reported a fourth quarter loss of -$805 million after special items. Halliburton’s Q4 revenue was $5.9 billion, a 9% increase from $5.4 billion in the third quarter of 2017.

Full-year revenue was $20.6 billion, an increase of $4.7 billion from 2016.

Operating income for 2017 was $1.4 billion, compared to an operating loss of $6.8 billion for 2016.

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OMV has started the largest Austrian seismic campaign in the company’s history to explore the subsurface of an area of the Weinvertel region in Lower Austria.

The survey will explore the geological subsurface at depths of 4000 to 6000 m and will provide information on the layers of the earth that potentially contain gas. In the winter months of 2018 a total of around 600 km2 will be measured on an area stretching from the north-east of Vienna via the majority of the Marchfeld through to the north-east of Schönkirchen.

Four fleets, each with three impulse generator vehicles, are generating impulses that are reflected by the geological layers in the subsurface and recorded by geophones.

OMV will carry out data processing in-houseto create a 3D image of the sub-surface.

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Eni launches world most powerful industrial computer

The supercomputer will be housed at Eni’s Green Data Centre in Italy.

Eni has launched its new HPC4 supercomputer at its Green Data Centre in Italy, which quadruples the company’s computing power, making it the world’s most powerful industrial system.

In particular, HPC4 will support the development of Eni’s suite of 3D seismic imaging packages, as well as advanced petroleum system modelling together with reservoir simulation algorithms and optimization of production plants.

HPC4 has a peak performance of 18.6 Petaflops which, combined with the supercomputing system already in operation (HPC3), increases Eni’s computational peak capacity to 22.4 Petaflops.

According to the latest official Top 500 supercomputers list published last November, Eni’s HPC4 is the only non-gov-

ernmental and non-institutional system ranking among the top ten most powerful systems in the world.

Eni’s supercomputing infrastructure operates on an ecosystem of algorithms, created and developed by Eni, said chief executive officer, Claudio Descalzi: ‘We can store and process enormous quantities of data for geophysical imaging, the modelling of oil systems and reservoirs, in addition to using predictive and cognitive computing algorithms for all our business activities. These technologies will enable us, on the one hand, to accelerate and make the entire upstream process more efficient and accurate, reducing risks in the exploration phase and, at the same time, give us a significant technological advantage, but also to increase the

level of reliability, technical integrity and operability of all our productive plants, while minimizing operational risks, with benefits both in terms of safety and environmental impact. In our industry it is increasingly important to be able to process ever-increasing amounts of data, ensuring more accurate and faster results.

With HPC4 we are tracing the path for the use of exascale supercomputers in the energy sector that could revolutionize the way in which oil and gas activities are managed.’

HPC4’s system architecture has been designed with the same philosophy of the Eni’s previous HPC solutions, all based on a hybrid clusters technology.

The new hybrid HPC cluster provided

by Hewlett Packard Enterprise (HPE) is built on 1600 HPE ProLiant DL380 nodes, each equipped with two Intel 24-core Skylake processors (totalling more than 76,000 cores) and two NVIDIA Tesla P100 GPU accelerators, all connected through a highspeed EDR InfiniBand. The new system will be working alongside a high-performance 15 Petabytes storage subsystem.

Eni’s Green Data Centre in Ferrera Erbognone, 60 km away from Milan, will house the new supercomputer.

Oil companies report big exploration finds Shell has announced one of its largest US Gulf of Mexico exploration finds in the past decade. The Whale deepwater well encountered more than 1400 net feet (427 m) of oil-bearing pay.

Whale is operated by Shell (60%) and co-owned by Chevron (40%). It was discovered in the Alaminos Canyon Block 772, adjacent to the Shell-operated Silvertip field and 16 km from the Shell-operated Perdido platform.

Meanwhile, Chevron has announced a significant oil discovery at the Ballymore prospect in the deepwater US Gulf of Mexico.

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Ballymore is located in the Mississippi Canyon area, 5 km from Chevron’s Blind Faith platform, in water depth of 2000 m. The initial Ballymore well reached total measured depth of 8900m and encountered more than 200 m net oil pay with excellent reservoir and fluid characteristics.

Chevron is the operator with a 60% working interest and Total has 40%.

Finally, BP has announced the Capercaillie discovery, in Block 29/4e in the Central North Sea, and the Achmelvich disvoery, in Block 206/9b west of Shetland. BP is 100% owner of Capercaillie

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and is the operator of the Achmelvich well with 52.6% with Shell (28%) and Chevron (19.4%).

Both wells were drilled by the Paul B Loyd Junior rig in Summer 2017. The Capercaillie well was drilled to a total depth of 3750 m and encountered light oil and gas-condensate in Paleocene and Cretaceous-age reservoirs. Options are expected to be considered for a possible tie-back development to existing infrastructure.

The Achmelvich well was drilled to a total depth of 2395 m and encountered oil in Mesozoic-age reservoirs.

INDUSTRY NEWS

Shearwater wins 10,000 km2 survey from Total and Eni Shearwater GeoServices has been awarded a 10,000 km2 marine seismic acquisition services contract by Total and Eni for their 2018 exploration programme 300 km offshore Myanmar.

Polar Empress.

Shearwater will deploy the vessel Polar Empress for the six-month survey that was due to start in January 2018. Irene Waage Basili, CEO of Shearwater said,

BRIEFS LMKR has launched the GVERSE GO, a pay-per-use subscription programme that allows instant access to LMKR’s software.‘With GVERSE GO, you get complete transparency through GO Portal as well as complete security of data. All software, along with all data are located on the network and behind your company’s firewall enabling improved collaboration between teams while ensuring the integrity of your data,’ said the company.

‘Shearwater has undertaken a significant effort since its inception to pre-qualify for work with major oil companies. We see this recent award as a validation of that strategy, and appreciate the positive engagement of our clients to achieve this.’

Total and Eni are the operators of the two blocks to be surveyed, YWB and MD-04, off the coast of Myanmar. Polar Empress was built in 2015 and with a capacity of up to 22 streamers it is one of the most powerful and efficient seismic vessels in the world. This contract is the second significant recent award to Shearwater, after the November award by an NOC for a 5-6 month contract for which it started mobilizing the vessels Polar Duchess and Polar Marquis in December.

‘The seismic market remains challenging, but on the back of a solid operational performance in 2017 in combination with recently awarded contracts, Shearwater is well positioned through the winter season and for 2018 as a whole,’ said Waage Basili.

Polarcus has won a contract for a 4D marine seismic acquisition project in the Asia Pacific region. The survey is due to commence in Q1 2018 and will run for approx. one month. The company’s active fleet is now 100% booked in Q1.

EMGS has reported that it expects to realise revenues of $1 million from data licensing agreements as a result of the the Norwegian Ministry of Petroleum and Energy’s announcement of Awards in Pre-defined Areas (APA 2017) licensing round. The revenues will be recognised in the first quarter of 2018.

China has sold rights for three oil and gas exploration blocks in the remote northwest Xinjiang region for more than 2.7 billion yuan ($422 million). Shenergy Co, Xinjiang Energy Co and Zhongman Petroleum and Natural Gas Group Corp (ZPEC) secured the rights after a bidding competition involving seven companies. The three blocks in the Tarim basin were among five blocks, totalling 9000 km2, which the Chinese government auctioned in December.

CGG to promote Cameroon licensing round CGG has won a contract from the National Oil and Gas Company of Cameroon to promote multi-client E&P data packages and interpretative products in support of the country’s 2018 Onshore & Offshore Licensing Round that will offer eight blocks in sedimentary basins offshore and onshore Cameroon.

The Licensing Round opened by the country’s Société Nationale des Hydrocarbures (SNH) was due to be opened on 15 January 2018 and will close on 29 June 2018. Roadshows were due to be held in London on 28 February-2 March 2018 and in Houston on 7-9 March 2018.

Cameroon already produces oil and gas from both the Rio Del Rey (RDR) and Douala/Kribi-Campo (DKC) basins.

Significant further opportunities exist for commercial hydrocarbon accumulations in both basins with large tracts of open acreage available, particularly in the DKC basin, said CGG. Recent new petrophysical and geophysical analyses have identified potential missed opportunities from previous exploration offshore and onshore Cameroon, and there is even more potential for large volumes of hydrocarbons to be discovered across these increasingly prospective basins, it added.

CGG’s TerraCube suite of integrated data packages of the onshore/ offshore DKC and RDR sedimentary basins will offer oil and gas explorers access to workstation-ready 2D and 3D seismic data, well data and interpretative products.

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Sinopec is carrying out a 3D seismic survey for client Lekoil at the Otakikpo Marginal Field in OML 11, onshore and offshore the south-eastern part of the Niger Delta. The survey is expected to complete around June 2018.

Iran aims to raise its crude output capacity to 4.7 million barrels per day in the next four years, said deputy Oil Minister Amir Zamaninia.

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Schlumberger reports fourth quarter net loss of -$2.25 billion Schlumberger has reported a fourth quarter net loss of $-2.25 billion on revenue of $8.179 billion as a result of $3.041 billion of special charges relating to the company’s restructuring of WesternGeco and a write off of the company’s operations in Venezuela. The company reported a net income of $668 million before the special charges.

A charge of $1.114 billion was recorded for the restructuring of WesternGeco, while Schlumberger has written down its investment in Venezuela and recorded a charge of $938 million. Workforce reductions account for $247 million and an impairment of the multi-client data library amounts to $246 million. Other charges in the quarter total $496 million.

Q4 results compared with a third quarter net profit of $545 million on revenues of $7.05 billion and a Q4 2016 loss of $216 million on $7.107 billion.

Schlumberger reported a full-year net loss of $-1.5 billion on revenue of $30.44 billion. Net income excluding special charges was $2.085 billion. This compared to a net loss of $1.687 billion for 2016 on revenues of $27.81 billion.

Capex for the full year 2018 is expected to be approximately $2 billion, which is similar to the levels of 2017 and 2016.

Schlumberger Chairman and CEO Paal Kibsgaard, said that the improved figures were the result of the company’s restructuring of poorly performing divisions and expansion of its hydraulic fracturing presence in North America. Land activity in North America has increased by 82% in 2017.

He added that he is expecting a strong performance in 2018. ‘Looking at the oil market, the strong growth in demand is projected to continue in 2018, on the back of a robust global economy.

On the supply side, the extension of the OPEC- and Russia-led production cuts is already translating into higher-than-expected inventory draws. In North America, 2018 shale oil production is set for another year of strong growth, as the positive oil market sentiments will likely increase both investment appetite and availability of financing. At the same time, the production base in the rest of the world is showing fatigue after three years of unprecedented underinvestment.

The underlying signs of weakness will likely become more evident in the coming year, as the production additions from investments made in the previous upcycle start to noticeably fall off. All together this means the oil market is now in balance and the previous oversupply discount is gradually being replaced by a market tightness premium, which makes us increasingly positive on the global outlook for our business.

‘These positive oil market sentiments are reflected in the third-party E&P spend surveys, which predict 15-20% growth in North American investments in 2018, while the international market is expected to grow for the first time in four years, with a projected 5% increase in spend.’

North America Area revenue of $2.811 billion grew 8% sequentially on increased land activity and improved pricing.

Revenue in the Mexico and Central America GeoMarket of $1.034 billion declined after strong WesternGeco multi-client seismic licensing sales recorded in the third quarter.

Europe/CIS/Africa Area revenue of $1.808 billion declined 2% sequentially as peak summer activity ended in Russia, the North Sea, and Continental Europe.

Sub-Saharan Africa revenue declined sequentially from lower activity in Congo as well as from the absence of WesternGeco multi-client seismic licence sales in Mozambique recorded in the third quarter.

Middle East and Asia Area revenue of $2.396 billion increased 2% sequentially.

Reservoir Characterization Group revenue of $1.6 billion decreased 8% sequentially and 2% year-on-year. Pretax profit for Q4 was $360 million.

Higher sales of WesternGeco multiclient seismic licences in the US Gulf of Mexico were partially offset by lower licence sales in the Mexico and Central America GeoMarket. Pretax operating margin was 22%.

Drilling Group revenue of $2.2 billion in Q4, of which 73% came from the international markets, increased 3% sequentially and 8% year on year. Pretax operating income was $319 million.

Production Group revenue of $3.1 billion increased 7% sequentially and 40% year-on-year. Pretax operating income was $315 million.

Cameron Group revenue of $1.4 billion increased 9% sequentially and 5% year-on-year. Pretaxing operating income was $205 million.

Indonesia to auction 43 oil and gas blocks Indonesia’s Energy and Mineral Resources Ministry plans to offer 40 conventional and three unconventional oil and gas blocks through a tender in early March, including 32 blocks that failed to attract investors in the 2015-2017 auctions.

The winners of the upcoming tender will operate all of those blocks using 28

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the new gross-split mechanism, which requires investors to pay exploration and production costs instead of relying on the government’s reimbursement.

In December 2017, the ministry announced it had found bidders for five of 15 oil and gas blocks offered through that year’s auction.

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Among the bidders are the United Arab Emirates-based Mubadala Petroleum, Repsol and a consortium consisting of the UK-based Premier Oil, Mubadala Petroleum and Singapore’s Kris Energy.

The ministry said that with the higher oil price it expected a good result.

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Technical Contents Technical Article epth calibration of fibre-optic distributed vibration sensing measurements D T. Dean, T. Cuny, A. Constantinou , P. Dickenson and E. Hamouche

Special Topic: Petroleum Geology T he Niobrara formation in the Southern Powder river basin, Wyoming: An emerging giant continuous petroleum accumulation Stephen A. Sonnenberg Offshore Argentina: Lessons from previous exploration Jonathan Castell, Andrew Lavender and James Scotchman Shallow water Gabon 3D: focused processing images pre- and post-salt prospectivity Paolo Esestime, Howard Nicholls, Karyna Rodriguez, Neil Hodgson and Laura Arti n opportunity to re-evaluate the petroleum potential of the Douala/Kribi-Campo Basin, Cameroon A Jean-Pierre Loule, Francis Jifon, Serge Edouard Angoua Biouele, Ponce Nguema, David Spofforth, Daniel Carruthers, Carl Watkins and Joe Johnston Derisking the Thebe Discovery through cognitive interpretation Ryan Michael Williams est of Shetland broadband 3D seismic: Extending the exploration life of Europe using new seismic technology W Katharine Broadbent, Malcolm Francis, Alexander Karvelas, Oliver Schenk and Olga Shtukert

INTERESTED IN OUR TECHNICAL CONTENT? Our Technical Articles and Special Topics are available to all EAGE Members.

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Read more on how to become a member at www.eage.org/membership

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CALENDAR

CALENDAR OF EVENTS 23-27 APRIL 2018

Engineering and Mining Geophysics 2018

www.eage.org • Almaty, Kazakhstan

March 2018 1-2 Mar

GeoTHERM 2018

5-8 Mar

GEO 2018 - 13th Middle East Geosciences Conference and Exhibition

25-29 Mar

Symposium on the Application of Geophysics to Engineering and Environmental Problems (SAGEEP) 2018

www.geotherm-germany.com/en

geo2018.com/

Offenburg

Germany

Manama

Bahrain

Nashville

USA

Oran

Algeria

Kraków

Poland

Vienna

Austria

Saint Petersburg

Russia

Yogyakarta

Indonesia

Abu Dhabi

UAE

Celle

Germany

Reykjavik

Iceland

Almaty

Kazakhstan

Abu Dhabi

UAE

www.eegs.org/sageep-2018

25-28 Mar

NAPEC – North Africa Petroleum Exhibition & Conference

26-29 Mar

Seventh EAGE Workshop on Passive Seismic 2018

www.napec-dz.com

www.eage.org

April 2018 8-13 Apr

EGU General Assembly 2018

9-12 Apr

EAGE Saint Petersburg 2018

11-12 Apr

EAGE-HAGI 1st Asia Pacific Meeting on Near Surface Geoscience & Engineering

16-19 Apr

Second EAGE/AAPG Hydrocarbon Seals of the Middle East Workshop

18-19 Apr

DGMK Spring Meeting 2018

24-26 Apr

Iceland Geothermal Conference 2018

23-27 Apr

Engineering and Mining Geophysics 2018

25-26 Apr

EAGE Second SPE/EAGE Workshop on Integrated Geomechanics in E&P

www.egu2018.eu www.eage.org www.eage.org www.eage.org www.dgmk.de www.igc.is www.eage.org www.eage.org

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May 2018 7-9 May

GeoConvention 2018

14-15 May

First EAGE Workshop in Deepwater Exploration

14-16 May

EAGE Geoinformatics 2018

14-16 May

EAGE/SEG Workshop on Marine Multi-Component Seismic

16-18 May

Calgary

Canada

Cancun

Mexico

Kiev

Ukraine

Kuala Lumpur

Malaysia

12th Polish Congress of Oil and Gas Industry Professionals

Krakow

Poland

20-23 May

AAPG 2018 Annual Convention & Exhibition

Salt Lake City

USA

23-25 May

Unconventionals in China – The Next 10 Years

Cheng Du

China

Copenhagen

Denmark

Kolding

Denmark

www.geoconvention.com www.eage.org www.eage.org www.eage.org

www.aapg2018.org www.eage.org

June 2018 11-14 Jun

80th EAGE Conference & Exhibition 2018

17-20 Jun

7th International AEM Conference and Exhibition

18-21 Jun

17th International Conference on Ground Penetrating Radar www.gpr2018.hsr.ch

Rapperswil

Switzerland

11-17 Aug

GeoBaikal 2018

Irkutsk

Russia

22-24 Aug

Marine Acquisition Workshop 2018

Oslo

Norway

Barcelona

Spain

Barcelona

Spain

Gelendzhik

Russia

Porto

Portugal

Palermo

Italy

Barcelona

Spain

Rueil-Malmaison

France

Dallas

USA

www.eage.org www.conferencemanager.dk/AEM2018

August 2018 www.eage.org www.eage.org

September 2018 3-6 Sept

ECMOR XVI 2018

7 Sept

EAGE/ TNO Workshop on OLYMPUS Field Development Optimization

10-14 Sept

EAGE Geomodel 2018

19-13 Sept

Near Surface Geoscience Conference and Exhibition 2018

16-20 Sept

Fifth International Conference on Fault and Top Seals

17-20 Sept

DMG Gastech 2018

18-20 Sept

First EAGE/IFPEN Conference on Sulfur Risk Management in E&P

24-26 Sept

SPE SPE ATCE 2018

EAGE Events

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