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Monday, 18 September 2017 14:10

Hyperdynamics still hopeful off Guinea

Hyperdynamics is looking at options after finding signs of encouragement at its recently failed Fatala prospect, offshore the Republic of Guinea in Northwest Africa.

Map of Guinea acreage, from Hyperdynamics.

Through detailed log studies, the company says that hydrocarbons were found.

“From our detailed study of the logs conducted over the last several days, we identified 5m of calculated hydrocarbons in the upper Cenomanian channel located above our main target formation.  This 5m sand has an average porosity of 17% and a hydrocarbon saturation of 61%. A minor background gas increase was also observed while drilling through this interval,” says Ray Leonard, Hyperdynamics president and CEO.

A review by eSeis, the company’s independent geophysical and petrophysical consultant, concurred with its findings.

“These results are technical calculations, and the thickness, porosity and saturation characteristics from this zone does not by itself make Fatala a commercially developable project, but we believe it could be an encouraging sign for the hydrocarbon potential of the offshore Guinea shelf,” he said.

“Over the next few days, we plan to hold further discussions with our 50% partner Sapetro and with the Guinea government to determine any future options we may have for further activity in Guinea taking into account this additional information,” Leonard said. 

The immediate focus of the review that the JV conducted last week was from the targeted 75m thick main channel of the Fatala-1 well, which did not yield any oil shows above oil based mud signature while drilling or from an analysis of the cuttings taken from the well.

Earlier this month, Hyperdynamics reported the failure to find hydrocarbons at Fatala-1, in what the company thought was to be a “potential world-class hydrocarbon discovery.”

Fatala-1 was drilled to a total depth of 5117m below sea level at 2897m water depth, where the well encountered a 75m thick Cenomanian sedimentary channel sequence, but contained predominantly siltstone and clays with no hydrocarbon shows.

Read more:

Hyperdynamics fails at Fatala-1

Hyperdynamics nears final Fatala-1 stage

Hyperdynamics gets Fatala extension

Hyperdynamics starts drilling operations at Fatala

Monday, 18 September 2017 09:54

Video: Statoil Cat J's head for Norway

Statoil is awaiting the arrival of two of its Cat J jackup rigs in the Norwegian North Sea, one destined for the Gullfaks field and the other for the Oseberg field.

Category J drawing. Image from Statoil.

In a video, the Norwegian giant said that its Askeladden is expected to reach Norway this week. Askepott, translated to Cinderella in English, is expected to arrive a few weeks later.

“As they are too large for the Suez channel, their journey from South Korea has gone around South Africa,” Statoil said.

In the video, the two giant jackups are being carried by the Dockwise Blue Marlin and OHT Hawk vessels.

“Their final destinations are the Gullfaks and Oseberg fields, but first we look forward to seeing them in the Coast Center Base in Bergen, Norway,” Statoil said.

Askeladden will help carry out the development of the Gullfaks field. The drilling program will focus of proven reserves and gas blowdown wells on one of the Gullfaks satellite fields. In 2016, Statoil gained consent to extend the field’s lifetime to 2034, nearly 30 years beyond the original plan for development and operation estimate, which was 2005.

Askepott will contribute to the continued development of Oseberg. The Cat J will primarily drill through the unmanned wellhead platfrom at Vestflanken 2 (West Flank II) project.

Owned by the Gullfaks and Oseberg licenses, the Cat J jackup rigs werespecially designed to perform efficient drilling operations on subsea development solutions in addition to conventional surface drilling from fixed platforms.

The rigs have a derrick allowing 40m pipe joints to be put together to increase the efficiency of the operations. They feature automatic pipe handling and the opportunity to perform parallel operations, making up pipe while drilling.

Earlier this year, Schlumberger and Baker Hughes were awarded integrated drilling and well services deals for the two Cat J rigs.

Read more:

Schlumberger, Baker to provide Cat J services for Statoil

Video: Statoil installs Oseberg unmanned platform

Friday, 15 September 2017 10:42

Karoon still set on Brazil deals

Karoon Gas says it still intends to move forward with the proposed divestment deal with Petrobras for the Bauna and Tartaruga assets, and the development of Echidna.

Map of Santos basin, from Karoon.

The Australian company clarified its strategy in Brazil that the sales process by Petrobras of its Bauna and Tartaruga assets remains subject to court proceedings. Karoon said the company has been notified that the process was withdrawn and that it was Petrobras' intention to re-launch the process.

The two companies first entered negotiations for Bauna and Tartaruga in October 2016, but have faced several setbacks from the Brazilian court.

“We understand that this will not occur until after the court proceedings are finalized. It remains Karoon's intention to participate in the Bauna and Tartaruga processes when the sales process re-opens, based on the merits of the assets and subject to Karoon's position when the assets are re-tendered for sale,” Karoon said. “In the meantime, Karoon has entered alternative sales processes with a focus on bringing high quality assets to the business in the short term.”

Karoon is currently reviewing opportunities that include production assets and government sanctioned exploration opportunities in the southern Santos and Campos Basins.

The company has also entered the front-end engineering and design (FEED) on its Echidna light oil discovery in the Santos Basin.

“This process is expected to continue into 2018 and, subject to a successful final divestment decision (FID), will provide a firm timeline for development and first oil,” Karoon said.

The Echidna development concept consists of two production wells, with each well expected to be able to flow at rates of up to 14,000 b/d. The production well estimates are the result of extensive subsurface modelling using data from 3D seismic and exploration drilling, production scenario analysis and well construction feasibility studies.

Read more:

Petrobras axes Karoon deal

Petrobras, Karoon deal remains suspended

Injunction order disrupts Karoon, Petrobras deal

Karoon to buy Petrobras stake in two fields

Friday, 15 September 2017 07:43

Mexico approves Wood Group, Amec merger

Wood Group’s proposed US$2.72 billion deal to takeover Amec Foster Wheeler is closer to completion following approval from the Mexican antitrust commission today (15 September).

Watson. Image from Wood Group.

“Following approval by the Mexican antitrust commission, Wood Group considers that all of the regulatory and third party clearance conditions set out in paragraphs 2 to 14 of Part III of the scheme document have now been satisfied,” the company said in a scheme of arrangement filing.

A court hearing to sanction the scheme is expected to be held on 5 October, with the effective date of the scheme expected to be on 6 October.

The acceptance the remedy from the Competition and Markets Authority (CMA) was revealed earlier this week on 12 September.

The remedy consists of most Amec Foster Wheeler’s UK upstream oil and gas business in the UK.

Wood Group Chief Executive Robin Watson said that the CMA decision came earlier than expected.

“Since we announced the deal in March, both parties have maintained a relentless focus on keeping on schedule,” Watson said on 12  September. “[The] earlier than anticipated decision from the CMA allows us to move forward with pace and we are very confident of completing the acquisition of Amec Foster Wheeler in October.”

“We have made significant progress marketing Amec Foster Wheeler’s UK upstream oil and gas business to a range of high quality bidders, which has helped to ensure that we will close the transaction in October, bringing the many benefits of the combined company to our clients, colleagues and shareholders,” Jon Lewis, Amec Foster Wheeler CEO said on Tuesday.

In March, Wood Group made its move to begin the takeover of Amec Foster Wheeler, just three years after Amec's 2014, $3.2 billion acquisition of Foster Wheeler.

Wood Group believes the merger will result in significant growth opportunities and "significant sustainable cost synergies of at least £110 million, equivalent to about $134 million a year on a recurring basis, at a one-off cost of about $231 million (£190 million) in the three years, post completion.

Three months after the proposed merger announcement, shareholders of both companies overwhelmingly approved the deal.  

Once complete, the combined company will be led by Watson as chief executive and David Kemp as chief financial officer. 

Read more:

Wood Group, Amec shareholders agree on takeover

Wood Group, Amec Foster Wheeler to combine