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from Oilfield Technology Issue 2 2021

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World news Issue 2 2021

Saipem, DSME JV to construct FPSO for Petrobras

A joint venture of Saipem and Daewoo Shipbuilding & Marine Engineering Co. Ltd (DSME) has been awarded a contract by Petrobras to construct the FPSO P-79 as part of the development of the Búzios field offshore Brazil. The FPSO P-79 project is worth approximately US$2.3 billion overall. Saipem’s portion is approximately US$1.3 billion.

The FPSO vessel will allow initial separation of gas from the oil extracted in the deep offshore reservoir and will have a production capacity of 180 000 bpd and 7.2 million m3/d of gas, with a storage capacity of 2 million bbl of oil.

Saipem and DSME will execute the entire FPSO project, which encompasses the engineering, procurement, fabrication and integration of the topsides of the FPSO units and the installation of the mooring systems, as well as the hook-up, the commissioning and the start-up.

The Búzios field, the world’s largest deepwater oilfield, is located in the pre-salt Santos Basin, approximately 200 km off the coast of Rio de Janeiro, at water depths ranging from 1600 m to 2100 m.

There are currently four units in operation in Búzios, which accounts for more than 20% of Petrobras’ total production. The fifth, sixth and seventh platforms planned for the field (FPSOs Almirante Barroso, Almirante Tamandaré and P-78) are under construction and the ninth unit (P-80) is in the contracting process.

Lundin Energy sells oil certified as carbon neutral

Lundin Energy has said that all future barrels of oil the company sells from the Johan Sverdrup field offshore Norway will be certified as carbon neutrally produced under Intertek Group’s CarbonZeroTM standard. The field has been independently certified at 0.45 kg CO2e per boe, approximately 40 times lower than the world average.

In order to supply a fully carbon neutrally produced barrel, the residual emissions have been neutralised through natural carbon capture projects. As a result, there will be no net emissions released during the future production of Lundin Energy’s Johan Sverdrup net barrels, which currently amount to approximately 100 000 bpd.

The first trade of certified carbon neutrally produced oil from Johan Sverdrup has already been completed with the South Korean refiner GS Caltex. The 2 million bbl cargo will be loaded in July 2021 for delivery to South Korea.

McDermott to carry out work for BHP in GoM

McDermott International has been selected by BHP to provide a marine installation campaign for the Shenzi Subsea Multiphase Pumping Project (SSMPP). The project is located approximately 138 miles (222 km) offshore in the Gulf of Mexico at a water depth of 4400 ft.

The scope of the contract includes project management; design and fabrication for a pump station suction pile; umbilical installation and flexible jumpers and flying leads installation; transport of all materials and equipment; and pre-commissioning services and other necessary testing and surveys.

Engineering, procurement and project management services will be led by McDermott’s Houston engineering group. McDermott’s North Ocean 102 vessel will be used for the transport and installation of the material and equipment.

The project will commence immediately and is expected to be completed in the summer of 2022.

In brief In brief

US

Occidental is to sell non-strategic acreage in the Permian Basin to an affiliate of Colgate Energy Partners III, LLC, for US$508 million. The transaction, which is expected to close in 3Q21, includes approximately 25 000 net acres in the Southern Delaware Basin in Texas with current production of approximately 10 000 boe/d from approximately 360 active wells. Proceeds from the sale will be applied towards debt reduction.

UK

The organisers of SPE Offshore Europe 2021 have announced that the show’s face-to-face event is moving to 1 – 4 February 2022 at P&J Live, Aberdeen, and the conference will run virtually from 7 – 10 September 2021. The virtual conference in September will include an opening ceremony, plenary panel, and keynote and technical sessions. The live event will include an in-person socially distanced exhibition, new energy transition keynote conference content, show floor features and networking events.

Norway

Equinor has said that 3 – 4 new wells will be drilled at the Valemon field in the North Sea in 2021 and 2022 in order to extend profitable operations at the Heimdal field, which is processing gas from Valemon, to 2023. The extension will also enable production of the remaining reserves in Vale and Skirne and increase production from Valemon. When operations at Heimdal end the remaining gas reserves at Valemon will be transferred to Kvitebjørn and the Kollsnes plant for processing.

World newsIssue 2 2021

Diary dates Diary Diary dates

21 – 23 September 2021

Gastech Dubai, UAE gastechevent.com

21 – 23 September 2021

SPE ATCE Dubai, UAE atce.org/welcome

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

Transocean secures Norway contracts worth US$116 million Seabed Geosolutions awarded OBN project in Americas Shelf Drilling rig hired by Chevron EIA reports record oil and gas production in New Mexico

To readthese articles in full and for more event listings go to: www.oilfieldtechnology.com

Lime Petroleum acquires Repsol’s Brage interest

Lime Petroleum AS, a 90% subsidiary of Rex International Holding, has entered into a conditional sale and purchase agreement with Repsol Norge AS to acquire Repsol’s 33.8434% interests in the oil, gas and natural gas liquids (NGL) producing Brage field, and the five licences on the Norwegian Continental Shelf over which the Brage field straddles, for a post-tax consideration of US$42.6 million.

Approximately 1.38 million boe or 3800 boe/d were produced from the Brage field in 2020, net to Repsol’s working interest. Although the Brage field has been producing for a long time, work is still ongoing to find new ways of increasing recovery from the field.

According to the Norwegian Petroleum Directorate, there are 3.42 million m3 of oil equivalent or 21.52 million boe of remaining reserves in the Brage field.

Eni and SKK Migas sign exploration MoU

Eni has signed a Memorandum of Understanding (MoU) with SKK Migas regarding cooperation on exploration activities in Indonesia.

The MoU defines the framework for further cooperation in the processing and interpretation of seismic data owned by the Republic of Indonesia by using Eni’s technologies and facilities, including the Green Data Centre supercomputers in Ferrera Erbognone, Italy, as well as seismic imaging algorithms.

Eni’s recent activities in the country include starting up gas production from the Merakes field offshore East Kalimantan in April 2021 and achieving positive results from the Maha-2 appraisal well in the West Ganal block in June 2021.

The company’s equity production in Indonesia currently stands at approximately 80 000 boe/d.

Bacalhau field development given go-ahead

Equinor and ExxonMobil, Petrogal Brasil and Pré-sal Petróleo SA (PPSA) have decided to develop phase one of the Bacalhau field in the Brazilian pre-salt Santos area. The investment is approximately US$8 billion. First oil is planned in 2024.

The Bacalhau field, operated by Equinor, is situated across two licenses, BM-S-8 and Norte de Carcará. The resource is a high-quality carbonate reservoir, containing light oil with minimal contaminants.

The development will consist of 19 subsea wells tied back to a FPSO located at the field. This will be one of the largest FPSOs in Brazil, with a production capacity of 220 000 bpd and 2 million bbl in storage capacity. The stabilised oil will be offloaded to shuttle tankers and the gas from Phase 1 will be re-injected in the reservoir.

MODEC, the FPSO contractor, will operate the FPSO for the first year. Thereafter, Equinor plans to operate the facilities until the end of the license period.

Lifetime average CO2 intensity is expected to be less than 9 kg/bbl produced, significantly lower than the global average of 17 kg/bbl. Work will continue through the lifetime of the field to reduce emissions and increase energy efficiency.

Subsea Integration Alliance has been awarded the contract for engineering, procurement, construction and installation (EPCI) of the project’s subsea production systems (SPS) and subsea pipelines (SURF).

Siemens Energy will provide pressure and temperature sensors for the subsea production system, electrical distribution equipment including flying leads, umbilical terminations, connectors for subsea modules and multi-leg harness assemblies. Installation and commissioning of the equipment are slated for 2022 and 2024.

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Issue 2 2021World news

Africa Energy Corp., Total JV assessing early production system off shore South Africa

Africa Energy Corp., part of the Lundin Group of companies, has said that the joint venture (JV) partners on Block 11B/12B offshore South Africa, which also include TotalEnergies, Qatar Petroleum and CNRI, are assessing the feasibility of an early production system for a possible phased development of the Paddavissie Fairway.

Block 11B/12B is located in the Outeniqua Basin 175 km off the southern coast of South Africa. The block covers an area of approximately 19 000 km2 with water depths ranging from 200 to 1800 m. The Paddavissie Fairway, located in the southwest corner of the block, now includes both the Brulpadda and Luiperd discoveries, confirming the prolific petroleum system.

The original five submarine fan prospects in the fairway all have direct hydrocarbon indicators recorded on both 2D and 3D seismic data and intersected in the wells, significantly de-risking future exploration.

Following the Luiperd discovery in October 2020, the JV partners decided to proceed with development studies and engage with authorities on the commercialisation of gas from Block 11B/12B. The JV expects to apply for a Production Right before the Exploration Right expires in September 2022.

Africa Energy Corp. holds 49% of the shares in Main Street 1549 Proprietary Ltd., which has a 10% participating interest in Block 11B/12B. Total E&P South Africa B.V. is the operator and has a 45% participating interest in the block, while Qatar Petroleum and CNRI hold 25% and 20% interests respectively.

US$2 billion Tilenga EPCC contract awarded Serica Energy reports positive Rhum flow test

A consortium of a subsidiary of McDermott International, Ltd. and Sinopec International Petroleum Service Corp. has received a conditional Letter of Award for a future contract valued at approximately US$2 billion from TotalEnergies for the Tilenga project.

Formal contract award remains subject to the Tilenga Partners’ approval. The Tilenga project is located in the Lake Albert Basin, Republic of Uganda. Tilenga includes six oilfields and will feature 426 oil wells at full production.

The consortium will provide engineering, procurement, construction and commissioning (EPCC) services for the development of an onshore oilfield that will generate up to 200 000 bpd. It will consist of 31 well pads connected to a central processing facility (CPF) via buried flowlines.

The project will be led from London, UK, and Yangzhou, China, before transitioning to Uganda for the construction activities. Work began in 2Q21 and first oil is expected in 2025. Serica Energy has said that new completion equipment has been successfully installed into the Rhum R3 well in the UK North Sea and a flow test has now been performed.

A stabilised flow rate of 58.4 million ft3/d of gas and 135 bpd of condensate has been achieved through a 60/64ths in. choke. The rate was constrained by the surface well test equipment on board the WilPhoenix semi-submersible drilling rig, and it is expected that the well will be able to produce at higher rates when in production.

A diving support vessel has been contracted to install the subsea control equipment required so the well can start producing in 3Q21.

The recompletion of R3 will increase Rhum’s production capacity, utilising the existing facilities located on the Bruce platform, and will not lead to significant additional CO2 emissions, in line with Serica’s objective of reducing the carbon intensity of its production operations.

Havfram awarded FPSO contract for GTA project

Technip Energies has awarded Havfram a contract for the pre-installation and subsequent hook-up of the subsea mooring system for a natural gas FPSO to be deployed on the maritime border of Mauritania and Senegal as part of the Greater Tortue Ahmeyim (GTA) project.

The GTA project will provide gas to both the domestic market and the wider market via the inshore LNG hub/terminal.

Havfram will project manage, engineer, transport and install some of the largest ever driven piles and corresponding mooring lines.

Havfram will later return to hook-up the pre-installed mooring system to the FPSO on its arrival at the field.

The FPSO will be stationed 35 km from the shore in approximately 120 m water depth.

ExxonMobil makes new Stabroek block discovery

ExxonMobil has made a discovery in the Stabroek block offshore Guyana. Drilling at Longtail-3 encountered 230 ft (70 m) of net pay, including newly identified, high-quality, hydrocarbon-bearing reservoirs below the original Longtail-1 discovery intervals. The well is located approximately 2 miles (3.5 km) south of the Longtail-1 well. It was drilled in more than 6100 ft (1860 m) of water by the Stena DrillMAX.

The Longtail-1 discovery was drilled in 2018, encountering approximately 256 ft (78 m) of high-quality, oil-bearing sandstone reservoir.

ExxonMobil has deployed two additional drillships in 2Q21, the Stena DrillMAX and the Noble Sam Croft, to enable further exploration and evaluation while continuing development drilling activities offshore Guyana. As the company advances its 15-well campaign in the Stabroek block, DrillMAX will move to Whiptail-1 while the Noble Sam Croft supports development drilling for Liza Phase 2.