World news

Issue 1 2021World news

Up to 120 million bbl discovered near Fram field

Equinor and partners Vår Energi, Idemitsu Petroleum and Neptune Energy have made the biggest discovery so far this year on the Norwegian continental shelf (NCS). Preliminary estimates place the size of the discovery between 12 and 19 million m3 of recoverable oil equivalent, corresponding to 75 – 120 million bbl of recoverable oil equivalent.

Exploration wells 31/2-22 S and 31/2-22 A in the Blasto prospect of production licences 090, 090 I and 090 E were drilled about 3 km southwest of the Fram field, 11 km northwest of the Troll field and 120 km northwest of Bergen. Exploration well 31/2-22 S struck a total oil column of around 30 m in the upper part of the Sognefjord formation and an oil column of around 50 m in the lower part of the Sognefjord formation. The oil-water contacts were proven at 1860 and 1960 m respectively. Exploration well 31/2-22 A struck high-quality sandstone in the Sognefjord formation, but the reservoir is filled with water and the well is classified as dry.

Regarding the discovery to be commercially viable, the licensees will consider tying it to other discoveries and existing infrastructure in the area. The wells were not formation tested, but extensive data acquisition and sampling have been carried out.

Well 31/2-22 S was drilled to a vertical depth of 2282 m below sea level and a measured depth of 2379 m below sea level. Well 31/2-22 A was drilled to a vertical depth of 2035 m below sea level and a measured depth of 2207 m below sea level. Water depth in the area is 349 m. The wells have been permanently plugged and abandoned.

Noble Corp. and Pacific Drilling to merge

Noble Corp. and Pacific Drilling Co. LLC have entered into a definitive merger agreement under which Noble will acquire Pacific Drilling in an all-stock transaction.

The definitive merger agreement was unanimously approved by each company’s Board of Directors. The transaction has also been approved by a majority of Pacific Drilling’s equity holders, and no shareholder vote is required for Noble to close the transaction. As part of the transaction, Pacific Drilling’s equity holders will receive 16.6 million shares of Noble, or approximately 24.9% of the outstanding shares of Noble at closing. Noble expects to realise annual pre-tax cost synergies of at least US$30 million, and additionally, will move to dispose of the Pacific Bora and Pacific Mistral drillships expeditiously. The transaction is expected to be completed in April 2021.

Pro forma for the acquisition, Noble will own and operate a high specification fleet of 24 rigs, with 11 drillships, 1 semisubmersible, and 12 jackups.

Eni and SONATRACH sign agreements

Eni and SONATRACH have signed various agreements covering exploration and production, research and development and decarbonisation.

The first agreement aims to implement a programme for the relaunch of exploration and development activities in the Berkine Basin region and provides for the creation of a gas and crude oil development hub through a synergy with existing MLE-CAFC installations. This agreement is part of the process for the finalisation of a new hydrocarbon contract in the basin, under the aegis of the new Algerian oil law which came into force in December 2019.

A Memorandum of Understanding was also signed for the development of a partnership in new technologies, with a focus on renewable energy, biofuels and hydrogen.

The two companies have also agreed to collaborate in staff training programmes in the upstream industry and new technologies related to the energy transition.

In brief In brief

UK

Aker BP UK, a newly established subsidiary of Aker BP in Norway, has entered into an agreement with Eni UK to take over a 50% interest in licence P2511 on the UK Continental Shelf. The key objective for the partnership between Eni UK and Aker BP UK is to explore the resource potential across the UK border in the greater Alvheim area.

Norway

INEOS Energy is to sell its oil and gas business in Norway to PGNiG Upstream Norway AS for a consideration of US$615 million. The deal includes all INEOS Oil & Gas interests in production, licenses, fields, facilities and pipelines on the Norwegian continental shelf. INEOS E&P Norge AS produces around 33 000 boe/d from the Norwegian Sea, and has a 93% gas ratio from three non-operated fields: Ormen Lange (14%), Alve (15%) and Marulk (30%). The business also holds 22 offshore licenses, of which six are operated.

Mexico

Doris has been selected by BHP Petroleum subsidiary BHP Billiton Petróleo Operaciones de Mexico, S. De R. L. De C.V. to continue into the next phase of engineering work at the Trion field: FEED for the subsea umbilicals risers and flowlines (SURF) scope of work. The Trion field encompasses an area of 1285 km2 and is located in the Mexican waters of the Gulf of Mexico, at a water depth of approximately 2500 m. BHP is the operator, holding a 60% interest in the development, with PEMEX Exploration and Production holding the remaining 40% interest.

World newsIssue 1 2021

Diary dates Diary Diary dates

13 – 16 September 2021

Gastech Singapore gastechevent.com

21 – 23 September 2021

Global Energy Show Calgary, Canada globalenergyshow.com

15 – 18 November 2021

ADIPEC Abu Dhabi, UAE adipec.com

05 – 09 December 2021

23rd World Petroleum Congress

Houston, Texas, US 23wpchouston.com

To stay informed about the status of industry events and potential postponements or cancellations of events due to COVID-19, visit Oilfield Technology’s events listing page: www.oilfieldtechnology.com/events/

Web news Web news highlights highlights

Rystad Energy: drilling activity set for two consecutive years of growth Grants made available to support exploration in Beetaloo Basin Petrofac given Iraq contract extension EY: UK energy sector recovery cycle has begun but new mindset needed

To read more about these articles and for more event listings go to: www.oilfieldtechnology.com

Beach Energy finds gas in Otway Basin

Beach Energy has discovered gas in licence VIC/P43 (Beach 60% and operator, O.G. Energy 40% interest), offshore Victoria, Australia, in the Otway Basin.

The Artisan 1 exploration well was drilled to 2205 m measured depth (MD) and penetrated the primary Upper Waarre Formation at 1921 m MD, approximately 92 m high to prognosis. The well intersected a gross gas column of 69.5 m in the Upper Waarre Formation, including 62.9 m of net gas pay, with a gaswater contact intersected at 1990 m MD. A gross gas column of 20.9 m was also intersected in the secondary target of the Flaxman Formation from 1902.8 m MD, with net gas pay of 4.6 m. The well is being cased and suspended as a future producer, with an opportunity to tie into the offshore pipeline currently delivering gas from the offshore Thylacine and Geographe fields to the Otway Gas Plant at a later date.

Development concept chosen for BM-C-33

Equinor, Repsol Sinopec Brasil and Petrobras have approved the development concept for BM-C-33, a gas/condensate field in the Campos Basin pre-salt in Brazil.

The well streams will be sent to a FPSO located at the field. Gas and oil/condensate will be processed at the FPSO to sales specifications and exported. Crude will be offloaded by shuttle tankers and shipped to the international market after ship-to-ship transfer. A new-build hull has been selected to accommodate for 30 years lifetime of the field.

The gas export solution is based on an integrated offshore gas pipeline from the FPSO to a new onshore gas receiving facility inside the Petrobras TECAB site at Cabiúnas, before connecting to the domestic gas transmission network. Gas export capacity is planned for 16 million m3/d with average exports expected to be 14 million m3/d.

Four subsea tree systems installed at Duva development

Neptune Energy has announced the installation of four Enhanced Horizontal Subsea Tree Systems (EHXTs) for the Duva development project in the Norwegian sector of the North Sea. The installation was carried out by a vessel instead of a rig, reducing installation time, costs and operational emissions.

The Duva development, on Production Licence 636, is an oil and gas subsea tie-back to the Gjøa semi-submersible facility. Neptune Energy is the operator of both the Duva project and the Gjøa facility.

While conventional installation of EHXTs would be carried out with a drilling rig, Neptune, together with its partners and contractors, conducted the installation using the vessel Far Samson, operated by Solstad Offshore.

The 20 days of reduced rig time is equivalent to approximately US$12 million savings for the license partners. By using a vessel instead of a rig, emissions were reduced by more than 60% during the installation activities.

It was the first time Neptune Energy has installed EHXTs in a standalone operation with a vessel. They were successfully deployed on the template wellheads over an 18-hour period, with the total installation and subsea system testing completed within eight days. The operation was carried out in cooperation with TechnipFMC, Ross Offshore, Solstad Offshore, Oceaneering, Fugro, IKM and Tigmek.

The drilling rig Deepsea Yantai, operated by Odfjell Drilling, will drill and complete the remaining sections of the Duva well programme during 2Q21/3Q21. The Duva oil and gas field is located 14 km northeast of the Gjøa field, at a water depth of 360 m. Gross 2P reserves are 88 million boe (gas 76%). First production from Duva is expected in 3Q21.

Issue 1 2021World news

Siemens Energy wins FPSO topside contract

Siemens Energy has been awarded a topside EPC contract by MISC Berhad for eight complete topside modules that will provide sustainable, efficient and environmentally friendly power generation, transmission and distribution, as well as gas processing and compression aboard an FPSO that will operate offshore South America, starting in 2024.

MISC Berhad is building the FPSO to expand its fleet of 14 floating production systems. The FPSO is expected to have a processing capacity of 180 000 bbl of oil and 12 million m3/d of gas.

The topside modules will be designed and manufactured across Asia, with main engineering and execution activities done through Singapore. Packaging for all the rotating equipment packages will occur at Siemens Energy’s Santa Barbara d’Oeste facility in Brazil. The facility is also fully equipped to provide support and service to the FPSO’s modules once it is deployed.

Siemens Energy’s scope of supply includes the EPC work for all eight modules and several key components: two electric, low-pressure centrifugal compressors; two electric, CO2 compressors; three main injection compressors driven by Siemens Energy SGT-A35-GT62X gas turbines; four Siemens Energy SGT-A35-GT30 gas turbines for power generation; an E-house; plus all electricals including an electrical control and management system (ECMS).

The ECMS is being designed to provide monitoring and supervision for the power generation and distribution network for load management of the FPSO facility, including topside and marine. MISC Berhad and the FPSO operator can use the ECMS to monitor FPSO power, generate reports and plan for future sustainability.

Murphy Oil sells stake in King’s Quay FPS

Murphy Oil Corp.’s subsidiary, Murphy Exploration & Production Company – USA, has completed the sale of its 50% interest in the King’s Quay floating production system and associated export lateral pipelines (Associated Laterals), to be located in the Gulf of Mexico.

The FPS and Associated Laterals will be co-owned in a joint venture with entities managed by Ridgewood Energy Corp., including ILX Holdings III, LLC.

The FPS is more than 90% built and is scheduled to go into service in mid-2022. The FPS is designed to process 80 000 bpd of oil and 100 million ft3/d of natural gas, and will handle the anticipated production from the Khaleesi/Mormont and Samurai fields.

The transaction reimburses Murphy’s past capital expenditures of approximately US$270 million related to the FPS and the Associated Laterals. The company intends to use the proceeds to repay borrowings under the US$1.6 billion senior unsecured credit facility and for general corporate purposes.

Chevron Australia awards maintenance contract

AusGroup’s subsidiary AGC Industries (AGC) has been awarded a significant maintenance master contract by Chevron Australia.

The contract is the longest maintenance master contract currently in the Australian oil and gas market.

The 10-year master contract enables Chevron Australia to order full-service asset maintenance from AGC across Chevron’s onshore and offshore natural gas and oil production facilities located in the north-west of Australia.

The contract will see AGC deliver management, planning, scheduling and supervision; painting insulation and fireproofing (PIF); scaffolding including engineering services; rope access (central trades); workshop management; asset management (hire equipment special tools); procurement and maintenance; crane operation (rigging) and maintenance.

AGC confirmed a significant number of new roles would be required to service orders under the contract.

Expro Group and FTAI Ocean form alliance

Expro Group has formed an exclusive alliance with FTAI Ocean LLC for the supply of the DP3 M/V Pride well intervention vessel to provide full light well intervention services to the subsea oil and gas sector.

The alliance creates a full service offering for the riserless and riser-based well intervention and P&A markets, providing all marine, ROV, well intervention, wireline, e-line, coilhose, subsea well access, hydraulic intervention, well planning, execution and offshore well management by a single supplier using one contracting entity.

Both services and technologies will be deployed under the alliance, and will be supported by the introduction of FTAI Ocean’s well intervention smart tower system, to be installed on the DP3 M/V Pride Offshore Construction Vessel.

Halliburton provides E&P soft ware to students

Halliburton has awarded a software grant to Universiti Teknologi PETRONAS (UTP) in Malaysia to support the education and development of students pursuing careers in the oil and gas industry.

The three-year donation provides access to the company Landmark’s DecisionSpace® suite of exploration and production software so students can bridge the gap between academic coursework and practical application.

The grant also facilitates the Halliburton Science and Technology for Exploration & Production Solutions (STEPS) programme, which offers students the opportunity to conduct a research project while receiving industry-relevant training and mentorship. Two UTP graduate students will be able to participate in the programme.

In addition, Halliburton will deliver adjunct lectures for undergraduate and master’s degree students on a variety of topics including drilling, production, field development and data science.