VO L U M E 3 7 I I S S U E 7 I J U LY 2 019
SPECIAL TOPIC
Energy Transition TECHNICAL ARTICLE I n pursuit of increased resolution while preserving amplitude fidelity CROSSTALK Where do the super-majors really stand on climate change? INDUSTRY NEWS Shearwater buys CGG fleet
NORTH RONA RIDGE Rich-azimuth multi-client data, NW of Shetland CGG has recently acquired a new 3,600 km 2 survey, NW of Shetland: ¬ Acquired using an innovative acquisition geometry, with two vessels, each deploying triple sources ¬ Designed to image multiple targets from shallow tertiary shale plays to complex fractured Devono-Carboniferous reservoirs by undershooting the volcanic sills and other shallow reflectors ¬ Fast-track PSDM data set available now, with final data available soon
The right data, in the right place, at the right time
cgg.com/wos
FIRST BREAK® An EAGE Publication
CHAIRMAN EDITORIAL BOARD Peter Rowbotham (Peter.Rowbotham@apachecorp.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, Equinor UK Ltd (Pdrum@equinor.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) MEDIA PRODUCTION MANAGER Thomas Beentje (tbe@eage.org) ACCOUNT MANAGER ADVERTISING Keziah Starrenburg (ksg@eage.org) ACCOUNT MANAGER SUBSCRIPTIONS Jack McClean (jmn@eage.org) PRODUCTION Saskia Nota (layout@eage.org) Ivana Geurts (layout@eage.org) 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 19 Leninsky Prospekt 119071, 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 EAGE LATIN AMERICA OFFICE Carrera 14 No 97-63 Piso 5 Bogotá, Colombia • +57 1 4232948 • americas@eage.org • www.eage.org
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Offshore wind’s key role in the global energy transition
Editorial Contents 3
EAGE News
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Crosstalk
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Industry News
Technical Article
31 Source ghost generation: observations from a dual near-field hydrophone test Rob Telling, Sergio Grion, Stuart Denny and R. Gareth Williams 39 In pursuit of increased resolution while preserving amplitude fidelity J.M. Reilly, M. Matheney, P. Monigle, K. He, M. Aharchaou, J. Zhang, S. Lazaratos, Z. Lawrence, J. Jackson, K. Nolan and M. Parry
Special Topic: Energy Transition
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Offshore wind’s key role in the global energy transition Stephen Bull
51 Application of distributed fibre-optic sensing to geothermal reservoir characterization and monitoring Michael Mondanos and Thomas Coleman 57 Assessment of underground energy storage potential to support the energy transition in the Netherlands Joaquim Juez-Larré, Serge van Gessel, Rory Dalman, Gijs Remmelts and Remco Groenenberg 67 Subsurface geology offers untapped seasonal energy storage potential to enable large-scale deployment of renewables Julien Mouli-Castillo 71 Mitigating risk in geothermal projects with an integrated modelling approach: a case study in France Giovanni Sosio, Annalisa Campana, Rabah Ould Braham, Charidimos Spyrou, Oleksandr Burachok, Andreia Mandiuc, Clément Baujard and Albert Genter 81
Building confidence in CCS: From Sleipner to the Northern Lights Project A.-K. Furre, R. Meneguolo, P. Ringrose and S. Kassold
88 Calendar
EAGE MEMBERS CHANGE OF ADDRESS NOTIFICATION Send to: EAGE Membership Dept at EAGE Office (address above) FIRST BREAK ON THE WEB www.firstbreak.org ISSN 0263-5046 (print) / ISSN 1365-2397 (online)
cover: Mating of Hywind Scotland wind turbine. This month we present an overview on recent advances in wind turbine technology.
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European Association of Geoscientists & Engineers
Board 2019-2020
Colin MacBeth Education Officer
Michael Pöppelreiter President
Near Surface Geoscience Division George Apostolopoulos Chair Alireza Malehmir Vice-Chair Micki Allen Contact Officer EEGS/North America Riyadh Al-Saad Oil & Gas Liaison Esther Bloem Technical Programme Officer Hongzhu Cai Liaison China Albert Casas Membership Officer Eric Cauquil Liaison Shallow Marine Geophysics Ranajit Ghose Editor in Chief Near Surface Geophysics Hamdan Ali Hamdan Liaison Middle East Andreas Kathage Liaison Officer First Break Musa Manzi Liaison Africa Myrto Papadopoulou Young Professional Liaison Koya Suto Liaison Asia Pacific Catherine Truffert Industry Liaison
Oil & Gas Geoscience Division
Caroline Le Turdu Membership and Cooperation Officer
Ingrid Magnus Publications Officer
Everhard Muijzert Secretary-Treasurer
Michael Peter Suess Chair; TPC Caroline Jane Lowrey Immediate Past Chair; TPC Lucy Slater Vice-Chair Rick Donselaar TPC Xavier Garcia NSGD Liaison Juliane Heiland TPC Francesco Perrone YP Liaison Ann Muggeridge IOR Committee Liasion Aart-Jan van Wijngaarden Technical Programme Officer Martin Widmaier TPC Michael Zhdanov NSGD Liaison Philip Ringrose Editor-in-chief Petroleum Geoscience Tijmen-Jan Moser Editor-in-chief Geophysical Prospecting Conor Ryan REvC Liaison Sebastian Geiger Member
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. 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.
Aart-Jan van Wijngaarden Technical Programme Officer
George Apostolopoulos Chair Near Surface Geoscience Division
Caroline Jane Lowrey Chair Oil & Gas Geoscience Division
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. 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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Road ahead for rock physics is topic for Milan workshop
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Bahrain workshop to explore why subsurface intelligence is way forward
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Two EAGE conferences make their mark in Tyumen
EAGE Awards 2019 honours the best and the brightest Once again at the Annual Meeting, the EAGE Awards were presented to honour individuals who have demonstrated outstanding dedication to science and the EAGE community. As an Association with the mission of promoting innovation and technical progress, EAGE recognizes the efforts of its members and their contributions to the development and cooperation in geoscience and related engineering disciplines. Honorary Membership Award
Presented to a member of the Association who has made a highly significant and distinguished technical and/or non-technical contribution to the geoscience community at large or to the Association in particular. EAGE President Michael PĂśppelreiter presenting the award ceremony.
Candidates for the 2019 Awards were nominated by colleagues in the membership and submitted to an international Awards Committee who in turn worked hard to select the winners. EAGE is delighted to announce the following exceptional recipients for the 2019 Awards.
SneĹžana Komatina For her outstanding record of publication, her tireless effort in promoting geosciences in Serbia and internationally, and, as the long-standing president of the Association of Geophysicists and Environmentalists of Serbia (AGES), for being the driving force behind much of the joint collaboration in humanitarian geoscience all over the world.
Desiderius Erasmus
Conrad Schlumberger
Award
Award
Presented to a geoscientist or engineer in recognition of his or her outstanding and lasting achievements in the field of resource exploration and development.
Presented to a member of the Association who has made an outstanding contribution to the scientific and technical advancement of the geosciences, particularly geophysics.
Evgeny Landa For a lifetime of innovative, original and lucid contributions to imaging of seismic data for determination of subsurface structure and subtle features critical to reservoir characterization, increasing image-processing efficiency, and inspiring new research directions in both academic and commercial communities.
Andrey Bakulin For his sustained and highly distinguished contributions to many areas of geophysics, including estimation of 3D stress fields from seismic data, co-inventor of the Virtual Source concept and pioneer of seismic interferometry, and development of Distributed Acoustic Sensing (DAS). FIRST
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EAGE NEWS
Winners of the 2019 EAGE Awards.
Arie van Weelden Award
Presented to a member of the Association who has made a highly significant contribution to one or more of the disciplines in our Association and who is under the age of 35. Zoya Heidari For fundamental and applied research on multi-scale formation evaluation, rock physics, and petrophysics to characterize complex formations such as carbonate and unconventional reservoirs. Nigel Anstey Award Presented to the authors of the best paper published in First Break in the past year. Anders Dræge For his paper ‘A new concept – fluid substitution by integrating rock physics and machine learning´, published in First Break, Vol 36, No 4, April 2018. Loránd Eötvös Award Presented to the authors of the best paper published in Geophysical Prospecting in the past year.
Ludger Mintrop Award Presented to the authors of the best paper published in Near Surface Geophysics in the past year. Gianluca Fiandaca and his co-authors, Line Meldgaard Madsen and Pradip Kumar Maurya For their paper ´Re-parametrizations of the Cole-Cole Model for improved spectral inversion of induced polarization data’, published in Near Surface Geophysics, Vol 16, No.4, August 2018. Robert Mitchum Award Presented to the author(s) of the best paper published in Basin Research in the past year. Christopher Kirkham and his co-authors, Joseph Cartwright, Christian Hermanrud and Christopher Jebsen For their paper ´The genesis of mud volcano conduits through thick evaporite sequences´, published in Basin Research, Vol 30, No 2, April 2018. Guido Bonarelli Award Presented in recognition of the best oral presentation at the 80th EAGE Conference & Exhibition, Copenhagen 2018.
Jirˇí Mls and his co-author Tomas Fischer For their paper ´A new mathematical model of asymmetric hydraulic fracture growth´, published in Geophysical Prospecting, Vol 66, 2018.
Volker Oye and his co-authors, Sergei Stanchits, Nicholas Seprodi, Pierre Cerasi, Anna Magdalena Stroisz and Robert Bauer For the oral paper ´Dynamics of stick-slip sliding induced by fluid injection in large sandstone block´.
Norman Falcon Award Presented to the authors of the best paper published in Petroleum Geoscience in the past year.
Louis Cagniard Award Presented in recognition of the best poster presentation at the 80th EAGE Conference & Exhibition, Copenhagen 2018.
Simon A. Stewart For his paper ´Hormuz salt distribution and influence on structural style in Northeast Saudi Arabia´, published in Petroleum Geoscience, Vol 24, No 2, May 2018.
Anton Egorov and his co-Authors, Andrej Bona, Roman Pevzner, Stanislav Glubokovskikh and Vladimir Puzyrev For their poster ‘A feasibility study of time-lapse FWI on DAS VSP data acquired with permanent sources’.
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EAGE NEWS
Dhahran to hold the Fifth workshop on Tight Reservoirs The 2019 fifth edition of the EAGE/ AAPG Tight Reservoirs Workshop is due to take place in Dhahran, Saudi Arabia
Saudi Arabia.
on 25-27 November 2019. The event will once again focus discussion of a crucial topic in the Middle East based on both local and international experiences. Unconventional resources, including tight reservoirs, constitute some of the key remaining hydrocarbon resources in the Middle East reservoirs. Most oil operators are exploiting tight reservoirs in order to sustain their supply of hydrocarbon resources. However optimizing production capacity and recovery potential presents many unique and specific challenges The latest edition of the workshop will highlight case studies and new ideas from industry and academia in the region and worldwide’ Likely topics for discussion include Reservoir geology; Petrophysics/
rock physics/geomechanics; Reservoir geophysics; Reservoir engineering; Integrated projects; and Tight fields economics The workshop will welcome attendance of all scientists and engineers from a diverse range of disciplines interested or involved in exploring and developing tight reservoirs. Call for abstracts for this workshop is currently open and will close on 1 September 2019. The Technical Committee invites you to submit an abstract of 2-4 pages in length. Submissions for posters and oral presentations are welcome for all topics. Students and academia are also invited and encouraged to submit abstracts.
Forum puts spotlight on East Africa opportunities beyond geosciences Hard to believe but EAGE is launching the Fifth Eastern African Petroleum Geoscience Forum, to be held on 30 March–1 April 2020 in Cape Town, South Africa. The occasion highlights the importance of the regional operations and opportunities. World class offshore gas resources in Tanzania’s Coastal Basin and Mozambique’s Rovuma Basin, and the more recent gas-condensate discovery in the Brulpadda well are paving the way for future energy supplies in East Africa. Additionally, the wealth of potential
resources onshore, such as geothermal, coal bed methane and shale gas provide an opportunity for Southern and Eastern Africa to develop a diverse supply to meet the energy needs of the region. Along the extensive coastlines of the region, there remain significant areas of frontier and under-explored acreage, and much of the onshore potential has yet to demonstrate commercial viability. Offshore, much of the remaining potential lies in areas with subtle stratigraphic traps and challenging environmental condi-
Iconic Table Mountain in Cape Town South Africa.
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tions. Onshore, balancing the competing needs and overcoming the above ground challenges are all required to support efficient and responsible extraction. Mining operations in the region have been long established. Terms and regulatory frameworks are now evolving to accommodate the unique differences between the mining and emerging hydrocarbon industries in the exploration and development of the regions resources. Technology, local capability and capacity building driven by collaboration between governments, academia, and the mineral and energy industry will be required to encourage investment, move discovered resource into production, and unlock remaining potential to meet the energy challenges of the future. To discuss progress in these developments EAGE has announced the Call for Abstracts for the forum which is open until 30 November 2019, and we encourage you to contribute to the programme. For more information, please contact us at africa@eage.org.
EAGE NEWS
Middle East workshop to get up to speed on seabed seismic
Manama skylline.
An EAGE Workshop in Manama, Bahrain on 22-24 March 2020 brings to the Middle East a discussion on the burgeoning interest in ‘Seabed Seismic from Acquisition to Application’. Approximately a quarter of a century ago, Eivind Berg, James Martin and Bjørnar Svenning ‘took land seismic to the seabed.’ Their pioneer acquisition and processing work, which was supported by Statoil (now Equinor), provided a new tool to the seismic exploration community for address the well known issue of imaging reservoirs located underneath gas charged sediments. The early successes on the application of shear waves recorded at the seabed sparked an explosion of interest and activity. Theoretical seismologists, who studied the potential applications
of this new type of seismic acquisition, came up with a long list that included: imaging reservoirs with weak acoustic impedance contrasts, fracture characterization, distinction of lithology and fluid effects, pore pressure prediction, high resolution imaging of shallow reservoirs, imaging underneath formations with high P impedance contrasts and discrimination between saturation and pressure changes in reservoir monitoring. Arguably, only imaging underneath gas charged sediments has so far been a widely employed success of shear waves recorded at the seabed. However, in the last five years, despite the economic downturn, there has been a growing interest in seabed seismic acquisition, processing and interpretation. The workshop will examine the reasons for
this phenomenon and identify the challenges that these technologies still face. The Technical Committee invites practitioners, innovators and industry experts to contribute and share their achievements and challenges that will help to bring all the attendees up to speed on seabed seismic acquisition, processing and interpretation. Case histories from the participants and theoretical developments from researchers in the industry and from academia are also welcome. Submission of abstracts of 2-4 pages in length are invited on Acquisition; Processing; Imaging and velocity model building; Case studies – From acquisition to interpretation; Multi-component seismic – niche or re-emerging application? and Novel applications. Deadline for submissions is 1 November 2019.
EAGE Education Calendar 27 JUN - 9 JUL
EDUCATION DAYS PERTH: MULTIPLE SHORT COURSES PROGRAMME
PERTH, AUSTRALIA
1 JUL
WEBINAR ‘SEISMIC AVO: WHEN DATA MEETS THEORY’
ONLINE
26-30 AUG
EDUCATION DAYS RIO DE JANEIRO: MULTIPLE SHORT COURSES PROGRAMME
RIO DE JANEIRO, BRAZIL
17-18 SEP
EDUCATION DAYS LONDON: MULTIPLE SHORT COURSES PROGRAMME
LONDON, UNITED KINGDOM
15 SEP
EAGE EDUCATION TOUR 1, BY ERIC VERSCHUUR
SAN ANTONIO, USA
23-26 SEP
EDUCATION DAYS MEXICO CITY: MULTIPLE SHORT COURSES PROGRAMME
MEXICO CITY, MEXICO
27 SEP
EAGE EDUCATION TOUR 13, BY IAN JONES
STANFORD, USA
23-24 OCT
EDUCATION DAYS OSLO: MULTIPLE SHORT COURSES PROGRAMME
OSLO, NORWAY
26-27 NOV
EDUCATION DAYS AMSTERDAM: MULTIPLE SHORT COURSES PROGRAMME
AMSTERDAM, THE NETHERLANDS
FOR MORE INFORMATION AND REGISTRATION PLEASE VISIT WWW.EAGE.ORG AND WWW.LEARNINGGEOSCIENCE.ORG.
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EAGE NEWS
Resolving issues in naturally fractured reservoirs is subject of fourth workshop in UAE The upcoming fourth EAGE workshop on Naturally Fractured Reservoirs to be held in Ras Al Khaimah, United Arab Emirates on 11 - 13 February 2020 intends to build on previous events and look to future developments. In 2018, the third edition of the workshop focused on the calibration issues when characterizing and modelling these reservoirs. The adequate use of conceptual models and appropriate multi-disciplinary data were discussed in constraining our static and dynamic models. The challenges in evaluating and capturing the related uncertainties were exposed as well. The intention of this fourth edition is to look ahead at future aspects of fractured reservoirs. This will be done keeping in mind all the fundamental progress achieved during the recent past in the domains of fracture mechanics, structural history and its impact on loading and fracturing paths, characterization methods for fracture distribution statistics, static modelling of fractured reservoirs, and development of fractured reservoir-dedicated flow simulation methods Three main topics are being proposed for the technical sessions covering (1) aspects of exploration and appraisal of fractured reservoirs, (2) recent and future developments of fracture geology and (3) links between the static and dynamic fractured reservoir models. For these three topics, an effort will be made to include all relevant input from new technologies and modelling methods, 3D visualization and 4D field monitoring, as well as the recent advances in managing uncertainties and risks. The idea will be to identify and evaluate possible new ways to overcome the current limitations of our workflows. In addition, opening these topics and discussions to novel sources of energy such as geothermal resources will be very much encouraged. The 2020 edition of the workshop will cover a number of themes, firstly, exploration and appraisal aspects of fractured reservoirs. When a limited amount of 8
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data is available to evaluate a potentially fractured prospect, we need to keep a critical eye on our workflows and on how we use the modelling tools to overcome these restrictions. For example, what are the advances in managing uncertainty and risks? How well do we understand model uncertainties, errors, and limitations and how do these influence our predictions and forecasts? Are the models properly calibrated? Can subsurface analogues, geological analogues and laboratory measurements reduce uncertainty and increase modelling reliability? A second theme is recent and future developments in fracture geology. Recent developments deeply impact the everyday life of oil and gas geoscientists working in fractured reservoirs. In the past 10-15 years, we have learnt much in terms of fracture mechanics, kinematics, distribution statistics, etc. Questions remain. How far is this integrated in our workflows? What are we missing that could be a game changer in the coming years of fractured reservoir development? What are the new technologies and new modelling methods in creating, manipulating, visualizing, and updating models to reach higher quality/ smarter decisions? Are we skilled enough for fully integrating big data? What are the most forward-looking advances in laboratory measurements, field monitoring, (underground and analogues), visualization (virtual and augmented reality)? What about artificial intelligence in reservoir modelling? Thirdly we ask: from static fracture models to dynamic simulation, what matters? When transferring from static fracture models to dynamic simulation, some parameters are systematically lost. How do they influence the reliability of our models despite any calibration effort? What level of details do we need to transfer into dynamic models to capture the physics of reservoir flow. Multiple scales of fractures have different roles in reservoir dynamics. Among these, and since they can occur at any time 2019
from the rock embrittlement to exploitation, small background fractures can have various influences on the reservoirs. Which fractures matter in a given reservoir? In which case, how and when do they occur and influence reservoir properties? What can we learn from the geological history, mechanical and chemistry aspects? What is the fluid chemistry impact on rock strength, dissolution/karstification? Current static modelling tools tend to capture a high level of detail. Can dynamic simulation tools integrate this level of detail in reservoir flow prediction? Can we set-up rules of thumb to define which fractures to include or exclude from the models as a function of the type of fractured reservoir and of the development strategies selected for a given field?
Ras Al Khaimah, United Arab Emirates.
To approach these questions, we will explicitly discuss when and how to model fractured reservoirs differently depending on the field type. Different cases should be distinguished such as green fields, brown fields (with the aspects of infill drilling, remaining drainage areas and IOR/EOR opportunities), unconventional resources (including the possible interactions between natural fractures and hydraulic fracturing jobs), and geothermal resources. The technical committee invites you to submit an abstract of 2-4 pages in length. Submissions for posters and oral presentations are welcome for all topics. Students and academia are also invited and encouraged to submit abstracts.
EAGE NEWS
Road ahead for rock physics is topic for Milan workshop
Naviglio Grande Canal in Milan.
The fifth EAGE workshop in the series on rock physics is due to be held in Milan in
February 2020, confirming its popularity as a great platform to gain insight into the recent advances in rock physics modelling and its applications in exploration, development and reservoir monitoring. The latest edition of the workshop will focus on the interaction with other disciplines and geophysical domains, as well as on some key trending aspects in rock physics, such as anisotropy, uncertainty and modelling of tight and fractured rocks. The programme is scheduled to include technical sessions: on Geomechanics, Pore Pressure Prediction, Unconventional Resources, Quantitative Seismic
Interpretation and Uncertainty, Experimental Rock Physics EOR, Time-Lapse Rock Physics, and Artificial Intelligence. Overall the workshop will look ahead at how recent advances and techniques will impact current industry practices and help overcome some of the key challenges faced by the rock physics community. The Technical Committee invites practitioners, innovators and industry experts to contribute and share their achievements and challenges. We aim to encourage innovative ideas and seek new alliances to jointly develop a road for the future in rock physics. The Call for Abstracts deadline is 30 September 2019.
Multi-disciplinary approach to borehole geology on agenda for Muscat workshop The Third Borehole Geology Workshop being organized by EAGE on 14-17 October 2019 in Muscat, Oman aims to promote discussion and knowledge sharing on the different aspects of borehole geology and its related technological innovations, hydrocarbon reservoir and field studies, best practices, integrated approaches and applications in new fields. The workshop will also be a ground for triggering collaboration amongst borehole geologists and professionals of other subsurface disciplines.
The workshop is inspired by the fact that borehole data are fundamental to all types of studies intending to measure and describe, understand and eventually predict the geology in the subsurface. Together with core, borehole images are currently the only data that can provide us with a high-resolution view of the actual rock and its features in the borehole. The integration of core and borehole images with a wide range of other data types such as physico-chemical measurements, conventional logging data,
Muscat, Oman.
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cuttings analysis as well as rock and fluid samples allow us to achieve a holistic and detailed understanding of the subsurface features, properties and heterogeneities at various scales to address a wide range of challenges. In the last years, driven by technological and economic changes, borehole images as well as other borehole-based techniques are being applied in a wider range of subsurface characterization studies. These span from hydrocarbon reservoir studies and operations throughout the E&P cycle to applications in environmental impact and mineral resource, and in alternative energy sources. From this perspective the need for multi-disciplinary integration and cross-discipline collaboration is stronger than ever. Registration is now open and will welcome attendance and contribution of all subsurface professionals working in different disciplines of the energy, resource and environmental sectors both in industry and in academic and research institutes. BREAK
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EAGE NEWS
Bahrain workshop to explore why subsurface intelligence is way forward The ‘New Paradigm of Subsurface Intelligence’ is coming to the Middle East in the form of an EAGE Workshop in Bahrain being held on 9-11 December 2019. For many this still may be an unexplored topic but the time is right to adopt this different mindset whereby practitioners can estimate, and continually revise, uncertainty in a more quantitative manner
computer-generated models of the subsurface based on the suite of geophysical and geological datasets available to the industry from both the surface and subsurface. Conventional approaches to estimating the economic potential of subsurface targets require the acquisition of different types of data throughout exploration and
Automated drone in the desert.
throughout the lifetime of a project leading to a more informed decision-making process. Success in subsurface intelligence(SI) depends on the effective integration of human knowledge and skills with
production. This typically means that the deepest subsurface knowledge for a given location is achieved when commercial operations are abandoned, and the opportunity to profit further from fully integrated data and interpretations has gone.
In addition, the timing of acquisition for different data types, such as an expenditure on a 3D seismic survey, or acquiring specific well logs, impacts the timing of new geologic insights and, in turn, key investment decisions. The potential reward of applying SI during the process is to maximize the insight obtained from existing data prior to acquisition of new data, hence reducing the uncertainty in the subsurface model at an earlier stage. Not only does this increase confidence in the risk management process, from which commercial decisions are taken, but it can also ensure subsequent data acquisition is focused on reducing uncertainty of the revised critical risks. With the advent of the 4th industrial revolution, technologies and techniques such as cloud computing, machine learning, advanced software algorithms, and cyber-physical systems are rapidly becoming integral to the petroleum business. Effective SI will enable us to capture full value from continuing hydrocarbon discoveries in mature basins, achieve more accurate evaluations of hydrocarbon resources and improve field development and production strategies. The Technical Committee invites practitioners, innovators and industry experts to contribute to the EAGE SI Workshop programme, share their achievements and challenges, lay out big innovative ideas, and seek new alliances to jointly develop a road for the future. The Call for Abstracts is open until 1 August.
EAGE Student Calendar 21 AUG
GEO-QUIZ LATAM, THE 16TH INTERNATIONAL CONGRESS OF THE BRAZILIAN GEOPHYSICAL SOCIETY AND EXPOGEF
RIO DE JANEIRO, BRAZIL
29 OCT
GEO-QUIZ
LAGOS, NAPE
2 DEC
GEO-QUIZ
HANOI, VIETNAM
FOR MORE INFORMATION AND REGISTRATION PLEASE CHECK THE STUDENT SECTION AT WWW.EAGE.ORG
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EAGE NEWS
Two EAGE conferences make their mark in Tyumen Russian geologists and geophysicists recently got together for the fifth time in Tyumen, the oil capital of Western Siberia for two parallel events - Tyumen 2019 and the EAGE student conference Geonature 2019.
Congratulations to the Student Quiz winners!
Before the main proceedings there was an educational course on kinematic inversion of seismic data for heterogeneous near surface presented by Dr Yury Dolgikh (NOVATEK). At the official opening the distinguished Russian geologist Alexey Nezhdanov spoke about the Earth’s deep outgassing and the role it plays in formation of the planet’s upper layers and hydrocarbon saturation. Anatoly Brekhuntsov, director general of the Siberian Scientific and Analytical Centre, made a presentation on Western Siberia, Russia’s main petroleum province. Igor Shpurov, director general of the State Commission for Reserves of Commercial Minerals, also addressed the audience. In the four days following the plenary session, participants had a unique opportunity for a deep dive into a whole spectrum of geological and geophysical problems covered in six scientific sessions. 12
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Discussion about the accuracy of seismic methods in predicting reservoir properties attracted a full house with Igor Kerusov as moderator. Participants had a chance to discuss such issues as rock physics, amplitude preserving data processing, synchronous inversion of seismic records, geostatic analysis, and inclusion of seismic data in 2D and 3D geological models. When it came to rock physics, the discussions revolved around the accuracy and stability of the estimations obtained from geophysical borehole rock properties surveys. As a rule, such rock properties, usually regarded as reference values for calibration of seismic attributes, have quite a wide range in terms of their accuracy and probability. This was highlighted by experts from the State Commission for Reserves of Commercial Minerals, Tatiana D’yakonova (Central Geophysical Expedition), Boris Enikeev and Valentin Kolesov (Pangea), and Аnastasia Rzaeva 2019
(Institute of Geology and Fossil Fuel Development). They all pointed to the necessity of including rock physics and well logging interpretation uncertainties into the final predictions based on seismic data. The most animated debate involved the seismic prognostication accuracy for rock properties based on statistic correlations. Ivan Priezzhev (IPLab) and Valentin Kolesov (Pangea) underlined the need for mathematically and geologically correlated solutions that go far beyond the correlation coefficient and solution stability as sufficient conditions for prediction accuracy. Algorithms for borehole and seismic data integration including geostatistics, neural networks, machine learning, and their limitations were all mentioned during the discussion. The efficiency of the most widespread approaches to seismic reservoir prediction, such as AVO analysis, synchronous and stochastic inversions, and dynamic staked data analysis were considered in the context of the case studies presented at the meeting. Consensus was that there is no alternative to seismic prospecting as an exploration tool. However, it has serious limitations when it comes to development drilling and solving specific problems in unconventional reservoirs. During the accompanying Geonature 2019 event, students and young scientists presented their work over two days in five scientific sessions. EAGE Student Chapter of Tyumen Industrial University prepared a brilliantly clever quiz with the winners awarded participation in the 21st Scientific Conference Geomodel 2019 in Gelendzhik. Marina Antipina, chairwoman of Geonature 2019 and president of EAGE Student Chapter, said: ‘It took us three years to bring the two conferences together. Not only has it provided experience, knowledge and new acquaintances for those
EAGE NEWS
Discussion about the accuracy of seismic methods attracted a full house.
attending, but it will also surely bring back great memories. This year has been a real breakthrough for our student chapter to become part of such a big event.’ The sessions that brought the biggest young specialists crowd were Geology, Geophysics and Development of Hydrocarbon Deposits and a new session devoted to the future fuel and energy potential of the Arctic. The participants presented
new developments in different fields, each report provoking a lot of questions and intense discussions, many of them continued even after the conference was over. Tyumen is due to welcome the next conference in 2021, and it will be another must-go event for every member of the Russian geological and geophysical community!
West Africa’s potential for further exploration will be subject of Accra workshop EAGE is bringing to Accra, capital of Ghana, a new workshop in a series on West African E&P. The idea of this first event being held from 3-5 December 2019 is to identify ways, including collaborative actions, to boost exploration and appraisal activities in frontier and emerging domains such as Western Africa. The need for collaboration will be showcased with the programme focused around two themes: The Exploration Journey of Ghana and Ivory Coast since 2010 and A New Hot-Spot for Exploration in Mauritania and Senegal. The targeted audience is representatives of government and agency authorities, exploration and operations managers and specialists, universities and institutes; as well as all those involved in the preparation and execution of exploration activities including and not limited to approvals, studies, environmental, geophysical, drilling and logistics in West
Africa. Parallel focus sessions will be implemented into the programme so that the audience remains engaged around specific challenges. The expected deliverable
is for each delegate to exchange potential strategies, based upon past and current practices and to understand better the possibility of exploration programmes.
Fishing boats at the seashore in Accra.
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. SUPPORTED BY
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Climate change conundrum Hands up those who can remember the official theme for EAGE stakeholders expect oil companies to continue meeting the oil and Annual 81st Conference and Exhibition held a month ago in gas needs of the world. London. Not many, one suspects, and it is likely most people never There are so many levels that this is a continuing nightmare, knew what it was in the first place. This is probably just as well as although you wouldn’t think so listening to Jon Eric Reinhardsen, ‘Embracing change – creativity for the future’ was impressively chairman of Equinor, one of the most advanced companies in its abstract, admirably designed to be invitational as well as nebulous climate change policy thinking. He explained his company’s name enough to describe just about every activity at the event. change from Statoil as a statement of intent to lead the world in Sitting in on the actual panel discussions at three out of four clean energy. BP actually started the trend back in 2000 when then of the signature EAGE Forum sessions, ‘embracing’ change might chairman Sir John Browne announced that BP’s slogan would be have been somewhat of a misnomer. Obviously at the session on ‘Beyond Petroleum’. ‘New Technologies for Geoscience and Engineering’ participants Equinor’s mission now is to develop a high value and low carcould engage enthusiastically on emerging trends and innovation bon oil and gas portfolio, a material industrial position in renewable which will result in more cost effective exploitation of oil and energy and low carbon solutions, and climate risk and performance gas, digitalization being a highlight. Such a positive mood was embedded into company decision-making. This is essentially the less in evidence at the forums on the oil and gas industry in 2030, same green policy route being proclaimed by all the supermajors, delivering the world’s low carbon energy needs, and the changing more nuanced in the case of ExxonMobil and Chevron compared energy and technology landscapes for geoscientists and engineers. with European rivals Shell, BP and Total. Like Equinor they all ‘Getting to grips with an uncertain future’ accept climate change is happening (finally in would be a more apposite description of what some cases), and express public support for the ‘Energy transition went on. Just how uncertain was made pretgoal of the international Paris 2015 agreement and low carbon ty clear from the first panel question at the to limit global temperatures to well below 2°C Opening Session, when Tim Gould of the solutions are now on above pre-industrial levels. They say they are International Energy Agency (IEA) was asked in favour of carbon tax initiatives as one way the radar of Big Oil about the agency’s previous predictions. Gould of getting there. jokingly said the first line of defence for poor like never before.’ The difficulty with the oil industry’s narraforecasting was that the IEA dealt in scenarios tive is that its oil and gas business has to carry not predictions. Even so, not only the IEA but just about every on. For example in 2030, according to Reinhardsen, Equinor will industry analyst was caught off guard by the explosive growth in still be investing 85% of its capital in oil and gas projects compared the Chinese economy and its impact on the energy market and by with 15-20% on clean energy. An unverifiable but believable stathe US shale revolution. tistic quoted by oil company critics states that the five supermajors Three days of expert panel opinions made clear that the energy devote 3% of their annual budget on climate change solutions, transition and low carbon solutions are now on the radar of Big whilst spending $110 million on oil and gas production. Oil like never before. A quick takeaway would be that the oil Even more inconveniently, all five of the supermajors are industry is facing an impossible dilemma. On the one hand, it is in the top 20 emitters of greenhouse gases, according to the under increasing public and stakeholder pressure to pursue climate Carbon Majors Database produced in conjunction with the Climate change solutions, and on the other hand the community at large and Accountability Institute. ExxonMobil is the leading supermajor
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passed at the BP Annual Meeting by a 99.14% majority to oblige behind China, due to its coal use for energy, Saudi Aramco, the company to come up with a business strategy consistent with Gazprom and National Iranian Oil. the Paris agreement. It is easy to see how these negative soundbite nuggets add fuel Last year Shell, under shareholder pressure, agreed among to anti-oil industry sentiments already prepped by controversies other things, to set short-term targets on emissions which can be over fracking, marine pollution, support for dodgy regimes around related to executive pay. In April, it became the first major oil the world, etc. More embarrassingly there is well documented company to leave US refining lobby American Fuel & Petrochemevidence that companies such as ExxonMobil and Shell were ical Manufacturers over its antagonist stance towards the Paris first warned about the global warming impact of their operations agreement. in the 1980s, although at that time it is unclear what exactly they In a separate but significant financial market development, should have done about this. ExxonMobil is currently in court Norway’s parliament decreed last month that the country’s trillion in New York defending allegations of covering up the risk of dollar wealth fund can no longer invest in dedicated oil and gas global warming to its investors. The climate change lobbyists exploration and producing companies. Entities such as Cono(sic) have also questioned the sincerity of the oil industry’s newer coPhillips and Hess are thought to be in line to feel the impact. commitment to a low carbon future in view of the heavily financed So far US oil giants ExxonMobil and Chevron have managed to lobbying behind the scenes to frustrate regulations deemed to be escape intense shareholder scrutiny. It may not against their interests, reputedly $126 million in the US last year. ‘Even schoolchildren be entirely coincidental that the US president is a vocal climate change sceptic. He withdrew Yet, climate change activists, just like the IEA and other analysts, are unable to map the have organized strikes the US from the Paris agreement, and has gone course and timing of energy transition and the around the world to so far as to order the removal of the topic from the US Department of the Environment web reduction of greenhouse gas emissions, i.e., vent their frustration.’ pages. Reflecting at least some opposition, the we remain dependent on speculative scenarios US House of Representatives in May passed based on multiple factors such as the rate of its first climate change bill in nearly a decade, voting 231-190 to changing fuel use, development of battery, wind, solar, tidal and require the Trump administration to keep the US a party to the Paris geothermal power; the impact of reduced CO2 emissions and CO2 storage initiatives; less fossil fuel transport, not to mention a raft of Climate Agreement. different oil and gas demand predictions. Outside company boardrooms and the corridors of power, In all this there is arguably an unreasonable presumption that calls for action on climate change have become increasingly oil companies must come up with all the solutions. But, oil and strident in communities around the world, putting pressure on gas, not alternative energy, is still their core business needed for governments to be seen to be doing something. Even schoolchilthe foreseeable future. Moreover there is a profitability threshold dren have organized global strike action to vent their frustration for investment in new technology and climate change mitigation at the perceived lack of government attention. Their protests have measures. been praised in many quarters even receiving a congratulatory Summarizing the panel proceedings on low carbon energy pat on the back from the UN Secretary General António Guterras needs, Wood Mackenzie CEO Neal Anderson stated that there who admitted his generation had failed to meet the dramatic was a recognition that the oil industry can be ‘part’ of the solution challenge of climate change. with its investment R&D dollars and experience in areas such as With so much emotion swirling around, a clear and realistic carbon capture and storage. To date, supermajors have been placing path to a world with reduced CO2 is virtually impossible to chart and explains why oil companies fear that their futures may be relatively modest bets on various clean energy technology options. subject to increased control by outside forces, be it governments, In strictly business terms, this caution is understandable until those stakeholders or public opinion. However dignified, informed and options look more commercially appealing. Equally relevant, every conciliatory their response, as personified by Reinhardsen in his step into renewables may potentially diminish the market for oil presentation at EAGE, history suggests that public sympathy will and gas. never be on the side of the industry. The powerful completely unpredictable X factor in all crystal The worrying consequence is that fighting over our low carbon ball gazing about the low carbon future may turn out to be the future does untold damage to the image oil companies need to pressure cooker of climate change activism, which is boiling up project in order to attract a new generation of geoscientists and possibly to bursting point. This was not quite how Reinhardsen engineers. We know that students today place care of the environdescribed the situation, but he acknowledged that investors were ment high on their priorities. It follows that oil companies will have getting restless. Days before the EAGE meeting in London, a to honour their pledges on climate change action to compete in the resolution drafted by Climate Action 100+, a group of 300 invesrecruitment market. Hopefully it is not a lost cause yet. tors with more than $33 trillion in assets under management, was
Views expressed in Crosstalk are solely those of the author, who can be contacted at andrew@andrewmcbarnet.com.
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Consortium of 11 companies launches big carbon capture project in France
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US oil producers report fiveyear high in net revenue
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TGS shoots 3D survey in the Norwegian Sea
CGG sells its fleet to Shearwater Geoservices
Shearwater will also use CGG streamers.
CGG has sold its five remaining high-end streamer vessels to Shearwater Geoservices while the two companies have signed an agreement to collaborate on seismic acquisition services and create a new streamer technology company. Through the deal CGG, which reported a 2019 first quarter net loss of -$30.5 mil16
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lion on revenues of $271 million, will achieve its objective of becoming an ‘asset light’ company. Shearwater will consolidate its position as the world’s biggest marine seismic acquisition contractor with a fleet of 23 vessels, including three OBS MPVs and two dedicated source vessels. As part of the agreement, CGG will have access to vessel capacity for future multi-client projects. Shearwater, meanwhile, has secured a commitment of cash flow and activity in relation to the five vessels. The five-year agreement will also create a technology partnership, under the Sercel brand name and CGG’s majority ownership, for the development, manufacturing, commercialization and support of marine streamer seismic acquisition systems. ‘We are delighted to enter into a strategic partnership with Shearwater and create the leader in marine streamer equipment under the Sercel brand with the combination of our proprietary technologies,’ said Sophie Zurquiyah, CEO of CGG. ’Shearwater’s modern fleet, global scale and efficient acquisition operations will also support CGG’s multi-client projects and provide more flexibility to execute our long-term asset light multi-client strategy.’ Irene Waage Basili, the CEO of Shearwater, said: ’We are very pleased to partner with CGG and Sercel to create a preferred provider of state-of-the-art streamer technology to deliver the highest possible data quality to our customers. 2019
‘Through this partnership, we will collaborate with CGG, the leading provider of marine towed geophysical equipment to the open market known for their success in commercializing their products. This will enable us to bring our streamer technologies to the market faster, better and more cost efficiently.’ CGG will continue to operate the vessels — Geo Coral, Geo Caribbean, Geo Celtic, CGG Alize and Oceanic Challenger — and execute acquisition contracts and customer commitments until deal closure, which is expected by the end of the year. The agreement is for a five-year utilization commitment for an annual minimum of two vessel-years over the period. It will give Shearwater access to CGG acquisition technology such as Broadseis, Stagseis, Dovetail and Broadsource. At the same time, it will provide Shearwater with a guaranteed cash flow and activity level, resulting in a greatly improved visibility and ‘more robust business models’ for both companies. The vessel acquisition will be a pure asset transfer, which will include the five high-end units and two additional legacy vessels. Shearwater will assume the net liabilities associated with the vessels at time of completion. Shearwater will also take over five complete streamer sets owned by CGG. The agreement is subject to approval by lenders of Global Seismic Shipping AS (GSS), the ship-owning company jointly held by CGG and Eidesvik Offshore ASA.
INDUSTRY NEWS
CGG reports first quarter net loss of -$30 million on revenues of $271 million CGG has reported a first quarter net loss of -$30.5 million on revenues of $271 million, compared to a net loss of -$790 million (impacted by discontinued operations) on revenues of $370 million in Q4 2018 and a net profit of $647 million (boosted by the company’s refinancing) on revenues of $185 million in the first quarter of 2018. Sophie Zurquiyah, CGG CEO, said: ‘Our geoscience markets continue their gradual recovery driven by increase in offshore E&P Capex. Our strong cash generation reflects the strength of our core businesses and our cost management focus. CGG has delivered a first quarter in line with our expectations and, in the context of improving industry outlook, we confirm our 2019 guidance and 2021 targets.’
The company reported an operating income of $11 million (a 4% margin) on segment revenue of $282 million (21% year-on-year), driven by strong equipment sales. Of GGR segment revenue of $180 million, Geoscience revenue was $91 million and Multi-Client revenue was $89 million. Prefunding of multi-client projects reached $42 million, down from $49 million in the first quarter of 2018, mainly due to lower multi-client capex. down to $40 million from $62 million in Q1 2018. The prefunding rate was 106%. After-sales were $47 million, up 32% year on year. Multi-client capex in 2019 is still expected to be around $250 million-$270 million.
Sonardyne buys maritime survey software specialist EIVA
Polarcus wins wide-azimuth contract in the Americas
Subsea technology provider Sonardyne International has acquired maritime software and equipment specialist EIVA as it bids to increase automation, embedded intelligence and remote operability. The acquisition of EIVA is the latest step in Sonardyne’s growth strategy, fully supported by the Partridge family, which founded and continues to own the company. EIVA has more than 40 years’ experience in the development of software and hardware solutions to offshore and shallow water engineering and survey organisations and is increasingly supporting customers with their requirements for higher levels of automation and remote and unmanned operations through its NaviSuite software. The company employs more than 75 people with headquarters in Denmark. ‘EIVA has experienced significant growth and profitability in the past several years,’ said EIVA CEO Jeppe
Polarcus has won a contract for a wide-azimuth data acquisition project to be acquired in the Americas in the third quarter of 2019. The vessels Polarcus Naila and Polarcus Adira will perform the acquisition that is expected start in early August 2019 and take four months to complete. The company has exercised its option to take redelivery of the vessel Vyacheslav Tikhonov (formerly Polarcus Selma) from Sovomflot under the companies’ bareboat charter agreement. The vessel will work on the wide-azimuth project as a source vessel. The Polarcus fleet booked capacity is as follows: Q2-19: 100%; Q3-19: 100%; Q4-19: 60%; Q1-20: 45%.
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Equipment revenue was $105 million, up 60%. External sales were $102 million, up 108%. Land equipment sales represented 81% of total sales, driven by solid land equipment deliveries in India, Russia and the Middle East, including three new 508xt land data acquisition systems delivered to clients. Marine equipment sales represented 12% of total sales in a still low marine equipment market. Downhole equipment sales were $5 million driven by increasing demand for artificial lift for US Lower 48 unconventional projects. Free cash flow from operations was $146 million, net cash flow was $44 million and net debt is $868 million.
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Nielsen, who will remain in post. ‘We felt the time was right to secure a new ownership structure for EIVA that allows the continuing management team to take the company to the next level. Sonardyne is an ideal match, culturally, technically and market wise.’ Stephen Fasham, Sonardyne’s investment and integration director, and now chairman at EIVA, said: ‘EIVA’s day-to-day business activities are very much aligned with our own, including the drive towards remote operations and use of artificial intelligence. They are a crucial piece of the marine data and autonomy jigsaw, which fits very well within our group and will enable us to jointly provide our customers with even greater benefits.’ EIVA will remain an independent business and brand. The terms of the acquisition have not been disclosed.
INDUSTRY NEWS
Consortium of 11 companies launches big carbon capture project in France A consortium of 11 European companies has launched a project to demonstrate an innovative process for capturing CO2 from industrial activities. The DMX project is part of a more comprehensive study dedicated to the development of the future European Dunkirk North Sea capture and storage cluster. The objective is to demonstrate the effectiveness of the DMXTM process on an industrial scale. The pilot, designed by Axens, will be operarational in 2020 at the ArcelorMittal steelworks site in Dunkirk, northern France, and will be able to capture 0.5 metric tonnes of CO2 an hour from steelmaking gases by 2021. The DMXTM process, patented by project partner IFPEN, uses a solvent that reduces the energy consumption for capture by nearly 35% compared to existing processes. Additionally, using the heat produced on site will cut capture costs in half, to less than $34 per metric tonne of CO2.
The project will prepare the first industrial unit at the ArcelorMittal site in Dunkirk, which could be operational from 2025. It should be able to capture more than 125 metric tonnes of CO2 an hour and more than one million metric tonnes of CO2 a year. The initiative will then design the future European Dunkirk North Sea cluster, which should be able to capture, pack, transport and store 10 million metric tonnes of CO2 a year and should be operational by 2035. The $22 million EU-funded project is co-ordinated by IFPEN and brings together 10 partners from research and industry: ArcelorMittal, Axens, Total, ACP, Brevik Engineering, CMI, DTU, Gassco, RWTH and Uetikon. ‘In post-combustion capture, the CO2 is separated from other gases by absorption in a chemical solvent. Currently, the challenge facing research is to significantly increase the energy performances in this stage, the costliest part of the CSC process,
to make this process more competitive,’ said the consortium in a statement.
CO2 will be collected in Dunkirk.
Searcher Seismic launches cloud-based seismic data on-demand for deep learning Searcher Seismic has launched a cloudbased service called Saismic that provides global seismic data on-demand with native support for deep learning and advanced analytics. The global library of data has been deconstructed from the rigid flat file format traditionally associated with seismic data and transformed into a distributed, scalable, big data store. This allows for rapid access, complex queries and efficient use of compute-fundamental criteria for enabling ‘Big Data’ technologies such as deep learning. Joshua Thorp, geoscience manager for Searcher, said: ‘Initially, we began the project to improve our internal data management across multiple offices and to streamline the delivery of seismic data to our clients. After some early success
and what we considered to be nothing short of startling results, we quickly realized the potential and decided to take the project to the next level. Fast forward two years and we now have a platform that holds millions of kilometres of 2D seismic data and hundreds of thousands of square kilometres of 3D seismic data. Far more than just meta-data, we literally have billions of seismic traces at our fingertips.’ Meanwhile, Searcher has expanded the Argentina Super-Tie 2D reprocessing project. Following the success of phase 1 which specifically targeted the recent offshore bid round, the project has now been extended to include all available offshore 2D seismic data in the Malvinas and Austral Basins.
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The reprocessing effort will utilize a broadband and AVO compliant workflow to both improve imaging quality and provide regionally consistent data coverage. Alan Hopping, general manager, added ‘The recent Argentina offshore round attracted bids from 13 oil companies who secured 18 new permits. It’s an exciting time for the Argentina oil and gas industry and we are looking forward to further collaboration with our clients as exploration continues.’ The Argentina Super-Tie 2D PSTM reprocessing project expands Searcher’s data library in Argentina, which currently includes 200,000 km of rectified 2D, 1865 km² 3D and 11,171 km of Pre-STM broadband reprocessed data. Data is expected to be available in Q4 2019.
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UK awards 37 licences in 31st offshore round Equinor will commission seismic surveys in the East Shetland Platform and the Moray Firth after winning several licences in the UK’s 31st Offshore Licensing Round. Along with Carallian, Equinor was the biggest winner round which awarded 37 licences to 30 companies covering 141 blocks or partial blocks. The round offered frontier areas on the UK Continental Shelf (UKCS) in the Faroe-Shetland Basin, Moray Firth, East Irish Sea, East Shetland Platform, Mid North Sea High, and English Channel. Corallian, based in Stroud, UK, and founded in 2015, is operator of all five of its licences, while Equinor will operate four and serve as partner on one. Equinor’s licences are situated in the Moray Firth and East Shetland Platform, expanding on its current position in these areas of the North Sea. Equinor was also awarded an extension to the Frigg Licence in the Northern North Sea supporting the Frigg redevelopment project.
‘The UK Offshore Licensing rounds enable us to add new opportunities to our exploration portfolio in a prolific basin, in line with our strategy to unlock the remaining potential in both underexplored and more mature areas. We believe in continued value creation on the UKCS through new discoveries and look forward to our fifth exploration well in 2019, Lifjellet, to be drilled later this year,’ said Nick Ashton, senior vice-president for exploration. Meanwhile, Cycle Petroleum won four licences; Chrysaor Holdings three; and Chevron, Burgate, Draupner Energy, Jetex Petroleum, and Spirit Energy each won two. Other companies taking operatorships were Shell, BP, Total, Faroe Petroleum, Ardent Oil, Geoscience Services, Nautical Petroleum, Petrogas, Pharis Energy, Stelinmatvic Industries, and United Oil & Gas. ‘Exploration on the UK Continental Shelf continues to be revitalized with the results indicating a continuation of
the strong interest shown in the previous frontier round, the 29th Round in 2016,’ said Nick Richardson, OGA head of exploration and new ventures. ‘It has been very encouraging to see industry generating new prospects and play concepts and seeking acreage in areas which have never before been licensed, such as parts of the East Shetland Platform, underlining the positive impact of ongoing government-funded data initiatives,’ Richardson said. The OGA has launched several programmes to stimulate interest in the 31st round, offering data and analyses, digital maps, prospect and discovery reports, and well and seismic data. This includes data from the 2016 government-funded seismic programme, which provided almost 19,000 km of broadband seismic data, with 23,000 km of reprocessed legacy seismic data and well data packages. The 32nd Offshore Licensing Round is scheduled for this summer, covering mature areas of the UKCS.
EMGS shoots CSEM survey in Barents Sea
The Atlantic Guardian is acquiring a CSEM project in the Barents Sea.
EMGS has confirmed a two-year CSEM acquisition contract with Pemex with a minimum value of $29.3 million that 20
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could rise to $73.3 million. EMGS will mobilize the Atlantic Guardian for the project in the Gulf of Mexico that consists 2019
of both shallow and deep-water surveys and will start in the third quarter. CEO of EMGS, Bjørn Petter Lindhom, said: ‘This demonstrates that Pemex values 3D CSEM data as an important and complementary input in their exploration workflow. We are confident that the 3D CSEM data EMGS will now acquire will help PEMEX identify, evaluate and derisk prospects, thereby significantly contributing to their exploration efforts. Meanwhile, EMGS is carrying out a fully pre-funded multi-client 3D CSEM survey in the Norwegian Barents Sea. The $1.25 million survey is expected to be executed in the second quarter of 2019. The vessel Atlantic Guardian is acquiring the data. Finally, Johan Kr Mikkelsen is expected to elected as the new chairman of the company. Alexandra A Herger is expected to be elected as a board member. Eystein Eriksund and Anne Øian have stepped down as EMGS directors.
INDUSTRY NEWS
BGS starts analysing samples to improve understanding of low carbon technology The British Geological Society has started analysing samples from the first UK Geoenergy Observatories boreholes. The BGS said that the £31 million project will contribute to an understanding of new low-carbon energy technologies both in the UK and internationally. Samples cover core and core barrel fluid preserved for geomicrobiology studies from borehole GGC01 drilled at Dalmarnock, Glasgow, Scotland, in late 2018; cuttings (rock chip) material from mine water and environmental boreholes to be drilled at GGERFS01, 02, 03, 05 Cuningar Loop in 2019; groundwater samples and geomicrobiology filter samples from the Cuningar Loop mine water and environmental baseline boreholes taken at the same time as the BGS monthly sampling round until March 2020 and surface water samples taken at the same time as the BGS monthly sampling round until March 2020.
PGS shoots survey offshore Guinea PGS has completed a multi-client 3D GeoStreamer acquisition covering blocks A4 and A5 of the Republic of Guinea off the West African coast. The 7900 km2 Guinea MC3D survey is PGS’ first multi-client project in collaboration with the Republic of Guinea and marks the start of a series of planned acquisitions. The Ramform Atlas acquired 3D seismic data in water depths of 60-4500 m for 84 successive days. The vessel utilized 12 streamers, 8025 m in length and 150 m apart. The project includes the acquisition and processing of seismic, gravity and magnetic data over open acreages.
Construction of the 199 m deep cored, seismic monitoring borehole GGC01 is complete. Core logging is continuing. Drilling mine water and environmental boreholes at sites GGERFS01, 02, 03, 05 at Cuningar Loop is taking place this summer and autumn. BGS monthly groundwater sampling will then start. As part of this monthly groundwater sampling, the BGS also plans to collect a geomicrobiology sample for the science community from a 250 ml sample, filtered on to a Sterivex filter and frozen at -80°C for nucleic acid analysis. A large range of samples will be analysed for the BGS monthly surface water samples taken at six locations near the research site. The BGS has developed a detailed design for two subsurface research facilities in Cheshire and Glasgow. Planning consent has been granted for Glasgow and the site works are now underway, with one borehole drilled and further drilling
scheduled to start in June 2019. The development of the Cheshire site is contingent on planning approval being obtained. Researchers that submit successful bids to access archived UK Geoenergy Observatories core stored at the National Geoscience Repository (NGR) in Keyworth will be invited to attend a sampling party, where rock core is laid out for inspection. Prior to a sampling party relevant data will be supplied to attendees in the form of a complete ‘Borehole Information pack’ which may include: borehole metadata; single unified core depth scale; geophysical log data (borehole imaging/ core-log-scan integrated data set); core scanning outputs; baseline hydrogeology and geochemistry baseline data (if available); sedimentary description and stratigraphic interpretation. All samples will be laid out in depth order. Once sampling requests have been approved scientists will be informed of the likely schedule for their collection.
TGS launches AI log prediction tool TGS has launched its new well log prediction tool Analytics Ready LAS (ARLAS). ARLAS log prediction algorithms will calculate missing log curves and fill in gaps to give customers complete coverage, standardized, and ready for optimal analytic results. Using as little as one gamma ray, bulk density, neutron porosity, sonic Pwave, or deep resistivity curve, TGS’ prediction algorithms can turn every LAS into a complete Quad-Combo suite. Analytics ready LAS uses a series of high-density data and blind testing, with more than 75 different machine learning models used in each basin, producing details and accuracies well above 90% for most curves, said TGS.
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Arvind Sharma, vice-president, data & analytics, TGS, says: ‘With the ability to combine ARLAS with additional data inputs for complex modelling and sweet spot detection, E&Ps and investors can now accelerate decision making for acquisitions, prospect generation, development, production and divestment.’ The company has developed complete coverage of all 300,000-plus wells in the Permian basin as well as 170,000-plus wells in the Anadarko basin. ARLAS will be available to all US onshore areas by the end of 2019, said TGS. Meanwhile, TGS has announced a share repurchasing programme of up to $50 million.
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CGG launches measurement while drilling tool
The company’s IFR models cover seven US onshore basins and plays.
CGG Multi-Physics has launched MagCube in-field referencing (IFR) models for measurement while drilling (MWD) surveys over seven US onshore basins and plays: Bakken, Eagle Ford, Haynesville, Marcellus, Niobrara, Permian and Woodford. CGG’s MagCube magnetic referencing system combines a global geomagnetic reference model with local magnetic survey data to deliver declination (dip),
inclination, and total field values at depth. These cubes of subsurface vector magnetic field information form a reference frame for MWD surveys in directional drilling. Accurately knowing a well’s trajectory while the well is still being drilled could save costly sidetracks, and even prevent collisions with other wells in tightly drilled shale plays, said CGG. All of CGG’s MagCube models include an estimation of the positional uncertainties, allowing the
design of more closely spaced drilling programmes to more effectively drain unconventional reservoirs. ‘As laterals get longer and the exploitation of stacked reservoirs becomes the norm onshore, well path tolerances are getting smaller. The smaller the target the more important it is to know where the wellbore is in real-time. Real-time azimuth control also eliminates costly rig time to run separate post-drilling gyroscopic surveys,’ said CGG. Meanwhile, CGG has donated 20 of its advanced geoscience software suites to the University of Malaya (UM) in Malaysia. The software will be used to teach quantitative seismic interpretation within the exploration geophysics module of the department’s master of petroleum geoscience programme. It will also be used by undergraduates for final-year projects as well as MSc and PhD postgraduate students and lecturers for conducting and publishing high-quality research focusing on reservoir characterization and quantitative interpretation for exploration and exploitation of reserves. ‘The initiative will enrich the student experience at UM’s Department of Geology while supporting its mission to train worldclass professionals for domestic or international careers in petroleum geosciences,’ said CGG.
Sierra Leone starts airborne geophysical survey of the whole country The government of Sierra Leone has commissioned a high-resolution airborne geophysical survey of the entire country. The survey by South African/Spanish contractor Xcalibur Airborne Geophysics will collect more than 543,000 line km of magnetic and radiometric data at a flight line spacing of 150 m and a nominal terrain clearance of 50 m. Funded by the World Bank, five survey aircraft are employed in data acquisition over a field season lasting approximately six months. So far, more than 50% of field data has been collected and independently approved 22
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within the first 90 days of survey operation. The survey will obtain integrated geophysical data that will form the basis for a review of the country’s geology and mineral resources and their distribution. Sierra Leone’s director of geological survey, Prince Cuffey, said that the aircraft was specifically designed to fly low and slow for improved geological imaging. Magnetic sensors mounted on each wingtip will improve geophysical data quality, and an externally mounted head-up display will enable better and 2019
safer survey navigation. Each aircraft is equipped with 40 litres of radiometric crystal pack, mounted in a belly pod to provide maximum detection capability. Survey supervision, including data QC, is being provided by UK-based Reid Geophysics. Meanwhile, Sierra Leone has relaunched the 4th offshore licensing round that includes near shore and ultradeep areas in water depths of more than 2500 m. Working in partnership with GeoPartners and Getech, the government of Sierra Leone is inviting direct tenders by 20 September and open tenders by 22 November.
INDUSTRY NEWS
US oil producers report five-year high in net revenue to $28 billion
US oil producers have succeeded in lowering production costs per barrel.
Net income for 43 US oil producers totalled $28 billion in 2018, a five-year high, despite crude oil prices that were on average lower in 2018 than in 2013. The figures from the US Energy Information Administration show that lower production costs per barrel of oil equiv-
alent (BOE) and increased production levels contributed to a higher return on equity for these companies for the fourth quarter of 2018 than in any quarter since 2013. The annual average West Texas Intermediate (WTI) crude oil price increased
28% from 2017 to average $65 per barrel in 2018, but expenses directly related to upstream production activities increased 16% between 2017 and 2018 to $24/BOE. When including depreciation, impairments, and other costs, expenses for these 43 companies averaged $48/BOE in 2018, the lowest amount from 2013 to 2018. In contrast to production expenses, between 2017 and 2018 upstream revenue for these 43 companies increased 31% to average $48/BOE in 2018, mainly because of the increases in average energy prices and production. As crude oil prices fell in late 2018, their upstream revenue declined 11% between the third and fourth quarters of 2018. However, this group of companies reported financially hedging nearly one third of their fourth-quarter 2018 production at prices in the mid-$50/b range, offsetting revenue declines when WTI prices fell lower than $50/b by the end of the year. Consequently, even with their decline in upstream revenue in the last quarter of 2018, total revenue increased for these 43 companies because of the gains from financial derivatives.
Cuba launches first licensing round Cuba is offering 24 blocks in the Gulf of Mexico as part of the country’s first licensing round. It has invited companies to present offers for one or more blocks under Production Sharing Agreements (PSA). Union Cuba-Petroleo (CUPET), which is managing the licensing round, said that all existing information and data packages will be available for registered and qualified companies. ‘Additionally, the offered area is widely covered by recent BGP 2D multi-client high resolution seismic data. Data packages are available from BGP on request, as well as the possibility to access data rooms in specialized events or online,’ it said. Additionally, the possibility of participating in existing farm-out projects
remains open by direct negotiation with operating companies. Companies may participate independently or in trusts of two or more companies. Cuba produces around 60000 BOE/ day from the western offshore by drilling extended-reach wells through duplex structures in the Folded and Thrusted Belt. Bidding will close on 29 May, 2020 and licences are expected to be award on 1 July 2020. Reservoirs are basically fractured and lixiviated carbonates from the Late Jurassic period. The seals are lithologically composed by Tertiary shale, while source rocks are Jurassic deepwater clayey carbonate facies. In 2012, three exploration wells were drilled in this area, targets were focused on FIRST
Cretaceous carbonates and no commercial oil was discovered. However, all wells had oil shows which, according to biomarkers, were originated in Late Jurassic source rocks, thus proving the extension of this unit in the offshore. New 2017 2D BGP multi-client seismic data provided valuable information concerning basement depth, and sedimentary thickness. Data was obtained as deep as 7-9 sec (~10-12 km) to determine the boundaries between different exploration scenarios and the seismic stratigraphic sketch for regional interpretation. In addition, new areas with huge potential for petroleum systems were determined. Resources are estimated at more than 10 billion barrels of recoverable oil, with expected qualities of 25-35° API. BREAK
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TGS shoots 3D survey in the Norwegian Sea TGS is shooting the 8000 km2 Atlantic Margin 2019 3D multi-client project in the Norwegian Sea. The survey will be acquired by Shearwater using the vessel Polar Duchess, which has an acquisition specification designed to secure recording of refracted wavelets at target depths for full waveform inversion (FWI), while triple source will ensure high spatial resolution. The 2019 acquisition will mainly cover open acreage available in the yearly APA licensing rounds. This area covers several play models with proven hydrocarbon systems in multiple geological
layers. However, it presently has little existing and no modern 3D data available. Fast-track data will be available by Q4 2019 and final product delivery is planned for Q3 2020. ‘We are very pleased to announce this continuation of the Atlantic Margin 2017 and 2018 acquisition,’ said Kristian Johansen, CEO of TGS. ‘The entire Atlantic Margin project will now cover more than 50,000 km2 of the Norwegian Sea, and will provide the industry with the highest quality data in advance of scheduled licensing rounds in Norway. We will continue to prioritize this high poten-
tial region and look forward to playing a dynamic role in future developments so that we can continue to help E&Ps make better drilling and investment decisions.’
Polar Duchess will acquire the survey.
UK unveils encouraging production figures New figures have shown that production, production efficiency and profits have risen in the UK continental shelf in the past year. Production efficiency in the UK Continental Shelf rose to 75% in 2018, rising for the sixth successive year, according to the UK Oil and Gas Authority annual performance review. In 2018 110% of produced reserves were replaced through progressed resources. Nearly 80% of this came from in-field resources contained within producing oil and gas fields, which can be matured effectively through the application of modern seismic data combined with infill drilling, as well as unsanctioned developments and marginal discoveries.
However, of the 4.1 billion boe currently classed as being prospects and leads, just 0.3 billion boe is drillready prospects and in 2018 less than 50% of planned E&A wells were delivered. Estimates of decommissioning spend have reduced. In 2018 in the Northern North Sea and Southern North Sea actual subsea well removal costs reduced 40% from the previous year. Meanwhile, the UK’s crude and natural gas liquids (NGL) production increased by 9% annually to reach 1.18 million bpd in the first quarter of 2019, according to the UK government. The UK’s crude oil production alone increased by 11% to 1.08 million bpd in Q1.
Finally, 72% of companies forecast an increase in profits in 2019. The findings of the 30th Oil and Gas survey, conducted by Aberdeen and Grampian Chamber of Commerce revealed that around 45% of contractors have increased investment spend in the UK Continental Shelf (UKCS) in the past 12 months. Almost half (47%) report that they have either started to use artificial intelligence or will do so in the next five years. Some 40% of firms have increased their total workforce in the last year. The OGA said that it will soon launch a new interactive digital Production Efficiency benchmarking tool, followed by the annual UKCS Operating Cost Report, Decommissioning Cost Report and a new State of the Basin report later in the year.
Uganda offers five oil blocks Uganda has launched a second round of competitive bidding for five oil exploration blocks in the west of the country where it has already discovered commercial crude reserves, the energy ministry said. The ministry said a total of 4928 km2 would be offered in the new round in five blocks: Avivi, Omuka, Kasurubani, Turaco and Ngaji.
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Uganda launched its first oil block auction in 2015, covering six exploration areas measuring 2674 km2. Prior to that, the country handed out blocks on a firstcome, first-served basis. Five exploration blocks ranging from 400 to 1300 km2 will be offered. Extensive data is available on the blocks including seismic and well data.
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Uganda made its first commercial oil discovery in 2006. To date, more than 121 wells have been drilled with a success rate of more than 88%. Production licences have been issued to Total, Tullow and CNOOC. Uganda’s oil ministry said that Petroleum Exploration Licences will be awarded by December 2020.
INDUSTRY NEWS
Shearwater and Equinor develop marine seismic source technology Shearwater GeoServices is collaborating with Equinor to develop marine seismic source technology for more efficient and environmentally friendly data collection. The development is supported by the Research Council of Norway. ‘This collaboration targets an untapped potential of seismic sources with the goal of delivering better quality seismic data faster than current source technology,’ said Irene Waage Basili, CEO of Shearwater GeoServices. ’We aim to bring about a step-change in productivity by completing surveys faster and reducing the overall cost and external impact of marine seismic acquisition.’ Under the terms of the agreement, Shearwater will accelerate the development of its marine vibratory source
technology. Marine vibrator sources provide total control of the emitted wavefield, which is fundamentally different to existing source technology, said Shearwater. The non-impulsive nature of this type of source technology will bring environmental benefits, especially in sensitive, difficult to reach areas and extreme climates. ‘This new collaboration offers a great opportunity to develop an efficient source with less sound impact on the environment,’ said Klaas Verwer, vice-president, exploration technologies research, Equinor. Shearwater will have the exclusive rights to market the system and Equinor will have initial, preferential access to the technology.
TGS and PGS team up for survey offshore Canada
TGS and PGS are shooting the Torngat 3D multi-client project offshore East Canada. Torngat 3D covers 3287 km2 and encompasses sections of the open acreage included in the Labrador South November 2021 bid round. PGS’ Ramform Titan will perform the acquisition, utilizing Geostreamer technology. The Torngat 3D survey sits within the Labrador Sea’s southern sedimentary basins where frontier exploration has already successfully identified hydrocar-
bons, such as in the nearby Hopedale and Snorri discoveries. Torngat 3D will be the first 3D seismic survey to be acquired offshore Labrador. After this ninth consecutive season of data acquisition in offshore East Canada, the jointly owned library will have more than 189,000 km of 2D GeoStreamer data and 52,000 km2 of 3D GeoStreamer data. An expansive well log library is also available in the region, along with advanced multi-client interpretation products that will improve play, trend and prospect delineation. ‘The Torngat 3D survey will be instrumental in assessing several amplitude variations (AVO) supported leads that were initially evaluated with our comprehensive 2D library in this region. This is critical to help identify potential source rocks, structural and stratigraphic traps and reservoirs, allowing our clients to derisk their exploration activities and prepare them for upcoming licensing rounds,’ said Kristian Johansen, CEO, TGS. FIRST
CGG delivers software on Microsoft platform CGG is partnering with Microsoft to deliver geoscience products, data and services on Microsoft Azure. Through Azure, oil and gas companies will have access to CGG’s extensive library of geoscience data, and high-end interpretation, analysis and reservoir characterization software. Clients will also be able to take advantage of the optimized hosting of CGG’s E&P data management solutions. Sophie Zurquiyah, CEO, CGG, said: ‘Digitalization is rapidly advancing in the oil and gas industry with more and more geoscience data and software converging on to a common cloud platform. This will enable deeper insight through global collaboration, increased efficiency, and the development of new E&P workflows. Integration with industry-leading platforms and environments is core to CGG’s digitalization strategy, and our collaboration with Microsoft will enable our Microsoft Azure clients to make faster and better decisions, by efficiently integrating our data, technology and services into their own digitalization solutions.” Çağlayan Arkan, global lead for manufacturing and resources industry at Microsoft said, ‘CGG’s know-how and experience with high-performance computing, big data, and advanced digital and geoscience technologies, combined with Azure, promise to accelerate digital transformation in the oil and gas industry.’
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TGS and Schlumberger collaborate on OBN schemes in US Gulf of Mexico TGS and Schlumberger have agreed to collaborate on multi-client ocean-bottom node projects in the deepwater US Gulf of Mexico. The collaboration includes the previously announced 2350 km2 Amendment Phase 1 project in the Mississippi Canyon and Atwater Valley protraction areas. Amendment Phase 1 commenced in early 2019 and data acquisition is expected to complete in Q3 2019. Both TGS and WesternGeco have extensive, multi-client libraries of seis-
mic and other geoscience data in the US Gulf of Mexico. The combination of ocean-bottom node data, the associated velocity model improvement, full-waveform inversion and other data processing techniques will significantly improve imaging of complex subsalt structures, they said. Ocean-bottom node technology has traditionally been focused on development and time-lapse 4D seismic applications, but multi-client node projects will also have significant impact on near-field
and greenfield activities, said the JV partners. ‘TGS and WesternGeco have a strong track record of investing together, using the latest technology so that our clients can benefit from large-scale, high-quality data in the US Gulf of Mexico. Both companies are at the forefront of ocean-bottom node technology with Amendment Phase 1 being the world’s first large-scale, multi-client sparse node programme,’ said Kristian Johansen, CEO, TGS.
Big land survey gets underway in Mongolia Mongolian company Micro Seismic is acquiring a ~120-km 2D programme in southern Mongolia which will cover client Elixir Energy’s 100%-owned Nomgon IX CBM PSC. Microseismic has prior experience in acquiring seismic data in Elixir’s licence area for mining companies and the survey will target specific drilling leads rather than prospects. Elixir has also received formal responses to its drilling tender process and was expected to appoint a drilling contractor by the end of June. The drilling campaign, comprising up to three
fully tested coal bed methane (CBM) coreholes, will closely follow the seismic
programme and is expected to commence in or around September 2019. Elixir has completed a Detailed Environmental Impact Assessment (DEIA) for the Nomgon IX area and which has now been lodged it with the Ministry of Environment and Tourism for approval. Elixir’s managing director, Neil Young, said: ‘We are targeting specific CBM drilling targets and the seismic programme not only supports the refinement thereof but is also designed to support the resource upgrading a successful drilling campaign will deliver.’
Spectrum launches 3D survey in Southern North Sea Spectrum has started the first phase of a new high-density regional multi-client 3D survey over a 2019 prioritized area of the UK’s Southern North Sea. The survey is targeting an area of recently increased industry focus in the under-explored Zechstein, Carboniferous and Devonian plays in the Southern North Sea. Spectrum said that the industry’s response to the OGA’s Maximising Eco26
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nomic Recovery (MER) initiative has supported its survey concept for the area and forms part of a ‘multi-year’ plan of data coverage, starting with the initial 1400 km2. Clients will receive processed data before the end of 2019 following their involvement throughout the testing and processing phase of the project. Ian T. Edwards, Spectrum’s executive vice-president for NW Europe and APAC, said: ‘This is the first of several 2019
planned new multi-client 3D surveys within the region. It follows detailed survey planning and design with input from pre-funding companies. This new survey will image the complex, under-explored potential plays that form part of the OGA’s MER initiative, and Spectrum intends to play a key role in stimulating activity in this part of the UK Southern North Sea region by providing high quality affordable data.’
INDUSTRY NEWS
Ithaca buys Chevron North Sea assets for $2 billion Ithaca Energy is to acquire Chevron North Sea Limited (CNSL) for $2 billion. The transaction will add a further ten producing field interests to the existing Ithaca portfolio. As part of the transaction around 500 employees will transfer to Ithaca, of which around 200 work offshore on the operated assets. The transaction establishes Ithaca as the second largest independent oil and gas producer in the UK North Sea. Ithaca is owned by the Tel Aviv stock exchange-listed Delek Group. Mike Tholen, Oil & Gas UK’s upstream policy director, said: ‘This $2 billion transaction is a further signal of confidence in the industry. Chevron is one of the pioneering companies which began
exploration on the UKCS more than 50 years ago and the company has gone on to make a vital contribution to the success of the UK North Sea. That being said, the sale, and indeed purchase of assets, is a natural part of the commercial life of the UKCS and presents new opportunities to maximize recovery. ‘As our Business Outlook report showed, €200 billion ($225 billion) will need to be spent to find, develop and operate the reserves of the future and the UKCS is now in a much more competitive position to achieve this. Delek Group’s acquisition demonstrates the potential for growth in the basin – key to achieving Vision 2035.’
Dominican Republic launches first licensing round The Ministry of Energy and Mines of the Dominican Republic has announced its first licensing round, which will offer 14 onshore and offshore blocks. The Caribbean nation is offering six onshore blocks in the Chibao Basin, three onshore blocks in the Enriquillo Basin, one onshore block in the Azua Basin and four offshore blocks in the San Pedro Basin.
Seismic data for the Enriquillo, San Juan and Cibao Basins is held by the ministry, and recent surface and seismic stratigraphic mapping has clarified the geological story of the area. The existing seismic data identifies undrilled prospects in the Enriquillo basin. All information is available at www.bndh.gob.do/en/.
A roadshow will take place on 10 July, at the Hyatt Regency in Houston, Texas. The presentations will provide an opportunity to review and discuss the exploration opportunities, the contractual and fiscal terms, and the legal framework. There will also be opportunities to meet privately with the ministry over the following two days.
CGG carries out first OBN survey
CGG has started its first multi-client ocean bottom node (OBN) survey. Located in the north-central region of the Gulf of Mexico, the OBN survey will provide well-sampled, full azimuthal coverage with long offsets to deliver data
for imaging the geologically complex structures in Mississippi Canyon. Acquisition services are being provided by Seabed Geosolutions and the data will be processed by CGG Geoscience’s subsurface imaging facility in FIRST
Houston to provide a velocity model and improved definition of drilling targets. Preliminary products will be available in Q3 2019, and final products are expected in Q1, 2020. CGG’s Mississippi Canyon Node survey paves the way for further CGG multi-client OBN surveys in the future, said Sophie Zurquiyah, CEO, CGG. ‘We are pleased to initiate our first multi-client OBN survey in this strongly growing market as clients take advantage of the enhanced geologic understandings that OBN data and advanced imaging can deliver’, she said. BREAK
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Fairfield Geotechnologies and CGG agree to shoot land survey in Louisiana
Fairfield Geotechnologies and CGG have signed an agreement to jointly acquire a large-scale, multi-client survey in South Central Louisiana. The new 1500 km2 wide-azimuth survey, known as Bayou Boeuf, is designed to image the Austin Chalk play and provide a better under-
standing of the formations in this area which have recently regained industry interest. The Bayou Boeuf survey provides coverage over the Avoyelles, Rapides, Evangeline and Saint Landry parishes. Permitting is nearly complete and acqui-
Sercel sells more land kit to India
Seabird wins 2D contract in the Norwegian Sea
Sercel has delivered five of its 508XT seismic land acquisition systems to India’s national oil company, ONGC. ONGC selected Sercel’s cross-technology (X-Tech) solution to conduct various 3D surveys for a total of 40,000 channels across India in challenging environments, from jungle to steppe plain and even desert. The fault-tolerant X-Tech architecture, which combines the benefits
Seabird has won a contract from Wintershall DEA for 2D acquisition in the Norwegian Sea. The survey has an expected duration of one month and will start in the third quarter. Meanwhile, the company has reached agreement with bondholders for a private placement, raising $29 million to fund the purchase of the vessels BOA Galatea and BOA Thalassa. Finally, Seabird has reported first quarter operating profit of $0.1 million on revenues of $12.3 million, which compares to a -$3.6 million operating loss on revenues of $6.8 million in Q4 2018 and a loss of $0.7 million on revenues of $4.7 million in Q1 2018. EBITDA was $2.7 million compared with -$1.2 million in Q4 2018 and $1 million in Q1 2018. Capital expenditure for the first quarter was $0.5 million. Vessel utilization in Q1 was 76% compared to 58% in Q4 2018 and 50% in Q1 2018.
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sition is expected to commence in September 2019. Delivery of fast-track products and final results is expected for Q1 and Q3 2020 respectively. The data will be processed by CGG using an advanced AVO-compliant sequence in order to ensure the final data is reservoir-ready, paving the way for a fast-track reservoir characterization package that will deliver key elastic rock property volumes to assist in further development of the reservoir. Joe Dryer, president multi-client geosciences, Fairfield Geotechnologies, said: ‘This area has attracted attention from numerous oil and gas majors and large independents and is expected to be the anchor for additional survey growth.’
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of cable and wireless systems in a single platform and features local storage and automatic rerouting capabilities, simplifies field operations and enables continuous, autonomous acquisition, said Sercel. This delivery follows 12 other Sercel 508XT systems sold in India in the past three years. There are now 72,000 508XT channels deployed in India, said Pascal Rouiller, Sercel CEO.
INDUSTRY NEWS
Fairfield Geotechologies appoints new leader Chris Sugahara will succeed Chuck Davison as CEO of Fairfield Geotechnologies. Davison is taking over as COO of Oceaneering International Inc. Byron Sugahara, chairman of parent company Fairfield Maxwell, said: ‘Chuck was brought in to lead FairfieldNodal in 2015, right in the middle of the oil crisis. He navigated the challenges brilliantly and transformed Fairfield Geotechnologies into what it is today – a financially strong, highly regarded leader in the industry.’ Davison will continue to serve as the chairman of Magseis Fairfield. Joe Dryer has been promoted to president, Jose Xavier has been promoted to CFO and Elaine Mattos has been promoted to SVP of geosciences.
BRIEFS
As chief sales officer Dryer managed sales across the company. Xavier joined the company in 2017 as VP of corporate development. He has more than 22 years in the energy industry and played a key role in the recent divestiture of the company’s Seismic Technologies division. Elaine Mattos joined the company in January 2019 as VP data processing after spending 19 years with Schlumberger and WesternGeco in various technical and business development roles. Meanwhile, Magseis Fairfield has won a contract for a two-month deepwater data acquisition in the Gulf of Mexico, due to start late in the fourth quarter of 2019.
Seven companies have bid for 11 oil exploration contracts in Colombia. Frontera Energy, Geopark, Ecopetrol, Hocol, Parex Resources, Gran Tierra Energy and ONGC Videsh have put in a total of 19 offers. Ten of the blocks are onshore and one is offshore. Twenty-two companies are qualified to bid for new exploration contracts for 20 oil blocks in Colombia. Initial tests on the Shell Upstream Albania Shpirag-4 appraisal well near Berat, central Albania, have confirmed the flow potential of a significant light oil discovery.
Santos starts 3D survey offshore Western Australia
Santos has started acquisition of the Keraudren 3D seismic survey over the Dorado and Roc discoveries offshore Western Australia and a number of nearby prospects. The survey by Santos and joint venture partner Carnarvon will assist with the advancement of the Dorado oil and gas field development and help to prepare for the potential drilling of a number of high graded exploration targets including the Pavo and Apus prospects. The survey has also been designed to improve the data quality over the Caley, Crespin, Baxter and Milne intervals. These intervals contain significant quantities of oil and gas as proven in the Dorado-1 well.
Ivory Coast has awarded four new offshore oil and gas blocks, two to Total and two to Eni. Total will operate offshore Blocks CI-705 and CI-706, while Eni will operate Blocks CI-501 and CI-504. Investment will total $185 million, including $90 million from Total and $95 million from Eni.
Eni has acquired rights to explore offshore Blocks A5-B, Z5-C and Z5-D in the deep waters of the Angoche and Zambezi Basins offshore Mozambique. Through a farm-in agreement, signed with ExxonMobil, Eni has acquired a 10% stake in the three blocks. In Mozambique’s 5th Licensing Round, Eni was also awarded operatorship of Block A5-A, with a 59.5% stake. Other partners are Sasol (25.5%) and ENH (15%).
The survey, covering approx. 3090 km2, will take around 70 days to acquire. Data will be available for interpretation in early 2020, which will enable the data to be incorporated into field development planning to support a final investment decision in late 2020. Prior to the award of WA-435-P, WA-436-P, WA-437-P and WA-438-P to Carnarvon and Santos, no 3D seismic data existed in these permits. Three 3D surveys were subsequently acquired. These 3D data enabled the joint venture to make the Dorado and Roc discoveries in WA-437-P and identify a significant number of prospects and leads. The survey will improve on existing 3D data over the Caley to Milne reservoir intervals. FIRST
Norway’ has announced its Awards in Predefined Areas licensing round for 2019, encompassing blocks in the North Sea, Norwegian Sea and Barents Sea. The deadline to apply is 27 August 2019 at midday and awards are expected during the first quarter of 2020. Since APA 2018, the predefined areas have been expanded by five blocks in the North Sea, 37 blocks in the Norwegian Sea and 48 blocks in the Barents Sea. Bahrain will allow foreign companies to own 100 % of oil and natural gas extraction projects in the Gulf state, under an order issued by prime minister Sheikh Khalifa bin Salman al Khalifa.
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CALENDAR
CALENDAR OF EVENTS 18-20 NOVEMBER 2019
Fifth EAGE Workshop on Borehole Geophysics Bridging the Gap between Surface and Reservoir www.eage.org The Hague, Netherlands
July 2019 29-30 Jul
EAGE/SPE First Borneo Deepwater Symposium – Managing Deepwater Assets through Geosolutions www.eage.org
Bandar Seri Begawan
Brunei
August 2019 18-23 Aug
Goldschmidt 2019 www.goldschmidt.info/2019/
Barcelona
Spain
19-22 Aug
16th International Congress of the Brazilian Geophysical Society & EXPOGEf www.sbgf.org.br/congresso/
Rio de Janeiro
Brazil
September 2019 1-6 Sept
29 th International Meeting on Organic Geochemistry (IMOG 2019) www.imog.eaog.org
Gothenburg
Sweden
2 Sept
Young Professionals Summit 2019 www.eage.org
Aberdeen
Scotland
2-5 Sept
2 nd Australasian Exploration Geoscience Conference (AEGC2019) www.2019.aegc.com.au
Perth
Australia
2-6 Sept
Fourth EAGE Conference on Petroleum Geostatistics www.eage.org
Florence
Italy
8-12 Sept
Fifth International Conference on Fault and Top Seals www.eage.org
Palermo
Italy
8-12 Sept
EAGE Near Surface Geoscience Conference and Exhibition 2019 www.eage.org
The Hague
Netherlands
9-12 Sept
24th World Energy Congresss www.worldenergy.org
Abu Dhabi
UAE
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9-13 Sept
Geomodel 2019 21st conference on oil and gas geological exploration and development www.eage.org
Gelendzhik
Russia
10-12 Sept
EAGE Workshop on The Interpretation of Attributes to Impact Decision Making www.eage.org
Kuala Lumpur
Malaysia
18-22 Sept
10 th Congress of Balkan Geophysical Society (BGS) www.bgs2019.org
Albena Resort
Bulgaria
October 2019 1-3 Oct
Sakhalin – Far East Hydrocarbons 2019 www.eage.org
Yuzhno-Sakhalinsk
Russia
6-9 Oct
16th SAGA Biennial Conference & Exhibition www.sagaconference.co.za
Durban
South Africa
7-9 Oct
Fourth EAGE Workshop on High Performance Computing for Upstream in the Middle East HPC Through the 4th Industrial Revolution www.eage.org
Dubai
United Arab Emirates
14-17 Oct
Third Borehole Geology Workshop www.eage.org
Muscat
Oman
24-25 Oct
First EAGE Workshop on Pre-Salt Reservoir in Rio de Janeiro www.eage.org
Rio de Janeiro
Brazil
29-30 Oct
Asia Petroleum Geoscience Conference & Exhibition (APGCE 2019) www.eage.org
Kuala Lumpur
Malaysia
30-31 Oct
First EAGE/AAPG Forum on Human Resource Role in the E&P Industry www.eage.org
Manama
Bahrain
November 2019 5-8 Nov
ProGREss’19: Exploration as a Business Oil and Gas International Exploration Conference www.eage.org
Sochi
Russia
11-13 Nov
EAGE Workshop on Faster Subsurface Characterisation for Reservoir Modelling - integrated and innovative workflows from geoscience to dynamic simulation www.eage.org
Perth
Australia
14-15 Nov
Second EAGE/AMGP/AMGE Latin-American Seminar in Unconventional Resources www.eage.org
Mexico City
Mexico
18-20 Nov
Fifth EAGE Workshop on Borehole Geophysics Bridging the Gap between Surface and Reservoir www.eage.org
The Hague
Netherlands
18-20 Nov
Third EAGE WIPIC Workshop: Reservoir Management in Carbonates www.eage.org
Doha
Qatar
19-21 Nov
Second EAGE Eastern Mediterranean Workshop www.eage.org
Athens
Greece
19-20 Nov
First HGS/EAGE Conference in Latin America www.eage.org
Houston
United States
25-27 Nov
Fifth EAGE/AAPG Tight Reservoirs www.eage.org
Dhahran
Saudi Arabia
28-29 Nov
1st Indian Near Surface Geophysics Conference & Exhibition www.eage.org
New Delhi
India
December 2019 2-4 Dec
2 nd EAGE-VPI Conference on Reservoir Geoscience www.eage.org
Hanoi
Vietnam
3-5 Dec
First EAGE Western Africa E&P Workshop www.eage.org
Accra
Ghana
5-6 Dec
First EAGE Workshop on Pre-Salt Reservoir www.eage.org
Rio de Janeiro
Brazil
EAGE Events
Non-EAGE Events
FIRST
BREAK
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VOLUME
37
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JULY
2019
89
Processing & Imaging
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