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OE Press: 2016 / May

OE Press: 2016 / May (99)

Tuesday, 31 May 2016 05:06

Second OpenHydro device deployed

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The second turbine bound for EDF’s Paimpol-Bréhat tidal array has been successfully deployed by OpenHydro, a DCNS company. When the turbines are connected to the grid over the summer the project will be the world’s first grid-connected tidal array, says DCNS.

After leaving the port of Brest on 26 May, the turbine reached its site off the coast of Brittany on Friday 27 and was lowered on to the seabed on the 29th, in under an hour, by OpenHydro’s deployment barge.

The second 16m turbine will operate at a depth of 40m below the surface – close to the first device which was deployed in January.

Over the summer, the array will be connected to a submarine converter, developed by GE. A single cable will make landfall – exporting 1MW of energy to the French electrical grid.

James Ives, OpenHydro Chief Executive, said: “OpenHydro, DCNS and EDF have worked hand-in-hand to deliver this milestone for the tidal energy industry. Paimpol-Bréhat is a global industry first; giving us key insights into the operation of our turbines at array scale.

“On a technical and industrial level, it will help us prepare for delivery of EDF Energies Nouvelles’ Normandie Hydro project – a 14 MW array set to be deployed in 2018. This historic achievement is also an essential step on the path to the commercialization and in ensuring OpenHydro is well positioned to benefit from the €200 billion tidal energy market which exists world-wide.”

The successful deployment comes as OpenHydro announced plans for a purpose-built turbine facility in Cherbourg to act as the industrial hub for the delivery of the Normandie Hydro project.

Discussions are ongoing between DCNS/OpenHydro, the Ports of Normandy Authority and the French government agency, SHEMA, to finalize plans for the ambitious facility.

Tuesday, 31 May 2016 03:59

Santos plans to test Indonesia finds

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Australia's Santos is planning drill stem tests on the G Sand and K Sand reservoirs as part of its Ande Ande Lumut (AAL) project offshore Indonesia. 

AAL is in the Northwest Natuna production sharing contract, in the Natuna Sea, which operator Santos shares with AWE.

AAL, comprises the K Sand reservoir, estimated to contain 101 MMbbl recoverable, and the underlying G Sand reservoir, estimated to contain 289 MMbbl in place and 36 MMbbl recoverable.  

The firm has already drilled into both reservoirs, with oil shows. Following wireline logging, drill stem tests will be carried out.

Appraisal of the G Sand reservoir will help the company prepare a development plan, which could be developed in conjunction with the K Sand development. 

The latest AAL-4X well is being drilled in water depth of approximately 72m using the Raniworo jackup drilling rig

and is forecast to take approximately 48 days in total to complete.

Tuesday, 31 May 2016 03:49

Mixed results for Statoil near Oseberg

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Statoil Petroleum made a small discovery but also drilled a dry hole on its latest drilling in production license 035, 35km south west of the Oseberg Sor facility.

Wildcat well 30/11-12 S (the Askja South East prospect) encountered a 37m oil column in the upper Tarbert formation, of which about 30m had good to moderate reservoir properties, says the Norwegian Petroleum Directorate. 

Appraisal well 30/11-12 A was dry, said the NPD. Preliminary estimates place the size of the discovery at between 0.7 and 2.5 MMcu m of recoverable oil equivalents. 

The discovery will be included in the evaluation of a new field development, along with other earlier discoveries in the area, including Krafla and Askja.

The wells are the 12th and 13th exploration wells in production licence 035. The license was awarded in the 2nd licensing round in 1969.

The wells were were drilled using the Songa Delta drilling facility in 130m water depth.

Tuesday, 31 May 2016 03:21

Statoil to drill for more in Krafla area

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The Norwegian Petroleum Directorate (NPD) has granted Statoil a drilling permit for two wildcat wells and an appraisal well, if a discovery is made, in PL 035.

The wells, 30/11-14, 30/11-14 A and 30/11-14 B, will be drilled from the Songa Delta semisubmersible drilling rig.

Statoil is the operator of PL 035, which contains the Krafla and Askja discoveries, 25km south of Oseberg South, with an ownership interest of 50%. Det norske oljeselskap ASA is the licensee with 50%.

The area in this license consists of a part of block 30/11. Production licence 035 was awarded in licensing round 2-A on 14 November 1969. These are the 12th, 13th, and possibly the 14th exploration wells to be drilled within the license area.

Tuesday, 31 May 2016 03:19

Malaysia gas find for Sapura

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SapuraKencana Energy discovered gas in two of the three wells drilled in 2015 within the SK408 block contract area, offshore Malaysia in Sarawak.

The first well Jerun-1 is approximately 5km north of the 2014 Bakong gas discovery. Based on analysis of electric log, pressure and sample data, Jerun-1 has an interpreted gross gas column of about 800m in the primary target reservoir and is a multi-Tcf gas discovery.

Jeremin-1, about 15km west of the F9 gas field encountered a 104m gross gas column, but Putat-1, 20km north of the Cili Padi gas field was confirmed as a dry hole. All wells have been safely plugged and abandoned.

SapuraKencana said Jerun-1 and Jeremin-1 together with the earlier five discoveries within Block SK408 are close to existing infrastructure supplying gas to one of the world’s largest liquefied natural gas (LNG) facilities in Bintulu, Sarawak.

SapuraKencana as operator holds 40% working interest in the project, and partners PETRONAS and Sarawak Shell hold the remaining interest of 30% each. 

Friday, 27 May 2016 10:03

Mermaid wins 7 subsea gigs, delays newbuilds

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Mermaid Maritime’s Western Hemisphere business unit (MSSW) has been awarded seven different subsea projects in the Middle East with an estimated value of US$11 million. In addition, Mermaid has also secured extensions for three newbuild deliveries with a Chinese builder that will allow the company to align with its strategic initiatives due to the market conditions.

The Mermaid Endurer, from Mermaid.

The various work scopes include subsea survey, inspection, repair and maintenance (IMR) as well as light construction. The jobs will be performed in various offshore areas of Qatar and in the Kingdom of Saudi Arabia such as Manifa, Safaniya, Zuluf and Tanajib. Most projects will be completed by the end of August 2016.

In particular, Mermaid’s DP2 dive support vessel Mermaid Endurer has started working in Qatar on a light construction intervention with an estimated working period of circa 100 days commencing from 8 May 2016.

Mermaid Endurer is the pride of the fleet of Mermaid, and we are pleased to have the ship deployed once again here in Qatar,” Chalermchai Mahagitsiri, Mermaid CEO said. “Additionally, the chartered-in DP2 construction barge Mubarak Supporter has just completed a successful cable laying campaign, and will demobilize in the Kingdom of Saudi Arabia over the coming days.”

Mermaid’s Eastern Hemisphere business unit (MSSE) has also been awarded a one-year extension of its subsea construction support services contract with a major engineering, procurement, construction, installation and commissioning (EPCIC) contractor in Thailand serving a major international upstream oil and gas operator. The current existing contract was originally awarded for a two-year campaign ending in December 2016. The term extension expands work service to the end of December 2017. Total estimated value of the two-year contract for 2015 and 2016 is $51 million with an expected duration of approximately 325 days. The work scope for the one-year contract extension for 2017 will be similar to previous years although the duration has yet to be determined. The work will be completed using MERMA the DP2 dive support vessel Mermaid Commander along with diving systems, plus associated equipment and specialist personnel.

This marks the 12th consecutive year Mermaid has been awarded the work. The contract term has been extended for one more year to the end of December 2017.

Mermaid’s associate company Asia Offshore Drilling Ltd. (AOD) has secured a three-month interim contract extension for its jackup rig AOD I. The unit is now committed until July 2016 at a day rate of $125,000 effective from January 2016. The contracts for jackups AOD II and AOD III are still due to expire in July 2016 and October 2016 respectively, but with a day rate of $125,000 in effect from January 2016.

Built to the popular MOD V B-Class model by Keppel FELS in Singapore, these rigs are on long term drilling contracts from 2013 to 2016 in Saudi Arabia with extension options. The rigs had undergone customization at client expense to suit working conditions and workplace configuration and have achieved high operational efficiency, safety and reliability since commencement of their respective drilling programs to date.

Delayed newbuilds

Mermaid has secured the delay of two performance class tender rigs, the MTR-3 and MTR-4, and one DP2 dive support and construction vessel the Mermaid Ausana with China Merchants Industry Holdings.

Pursuant to the construction contracts that were entered into with respect to the above, the vessels are all scheduled for delivery by the China Merchant at various periods in 2016.

Due to the co-operative relationship between the Mermaid and China Merchant, the parties have mutually agreed to postpone the delivery dates for both rigs to 31 December 2016 and for the vessel to 30 June 2017.

Due to this deal, Mermaid has aligned its strategic initiatives with market conditions through extended time to consider and implement preferred courses of action for the application of these assets. This includes accepting delivery of one or more of these assets from China Merchant on or before the respective delivery dates, or sale and disposal of the same to interested third parties.

The MTR-3 and MTR-4 are performance class tender assist drilling rigs. The rigs will each be equipped with a modern drilling package supplied by leading drilling equipment specialist National Oilwell Varco (NOV). Compared to other tender rigs, these rigs will feature larger deck space, bigger cranes, faster rig moves, larger and more living quarter capacity, larger tank storage and offline activity systems. The rigs will be able to operate in water depths of up to 243m with conventional mooring and 914m with pre-laid mooring. They will each also have a drilling depth rating of 7620m and accommodation for 200 personnel.

The Mermaid Ausana is a DP2 multipurpose subsea dive support and construction vessel that will be equipped with an 18-man twin bell saturation system and will have two self powered hyperbaric lifeboats. The vessel will also be equipped with diesel electric frequency controlled propulsion, highly efficient azimuth thrusters, dynamic positioning systems, offshore cranes and a large platform deck for construction duties. The Mermaid Ausana will be DNV classed, fully OGP compliant and will fly the Singapore flag.

Friday, 27 May 2016 03:37

Oil slump impacts Norwegian investment figures

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Estimates for total investments covering oil and gas, manufacturing, mining and quarrying and electricity supply in Norway expected to fall in Norway in 2017, mainly due a decrease in oil and gas and manufacturing.

The projection, from Statistics Norway, comes as new figures for 2016 show total investments covering oil and gas, manufacturing, mining and quarrying and electricity supply are expected to amount to NOK 216.5 billion - or 9.9% down on the 2015.

Statistics Norway says the decline is mainly due to a significant fall of 14.8% within oil and gas, partly offset by higher investments in electricity supply and manufacturing.

The first estimates for 2017 show that total investments are expected to amount to NOK 200.6 billion, which is 14.6% lower than the corresponding figure for 2016. The decline is mainly due to a fall within oil and gas and manufacturing, says Statistics Norway.

The 2016 investments in oil and gas extraction and pipeline transport for 2016 are now estimated at NOK 165.9 billion, or 14.8% lower than the corresponding estimate for 2015, given in Q2 2015.

The decrease is due to lower investments in all categories. The fall is dominated by the decreases within exploration and fields on stream.

Investments for fields on stream in 2016 are now estimated at NOK 70.6 billion, 12.6% lower than the corresponding estimate given for 2015.

Investments in the exploration activity in 2016 are estimated at NOK 22.3 billion, some 30.1% lower than the corresponding figure for 2015, presented in Q2 2015. 

First estimates for 2017 indicate further fall in oil and gas investments. The investments in oil and gas extraction and pipeline transport for 2017 are estimated at NOK 153.2 billion, a 18.7% fall on the corresponding estimate given for 2016 in Q2 of 2015.

However, Statistics Norway says the sharp decrease indicated from 2016-2017 should be interpreted with caution, due to the figures tending to change through the year and 2016 also not following traditional developments in the estimates. It is thought this is due to the decrease in crude prices during autumn 2015 and winter 2016. 

Friday, 27 May 2016 03:34

Wintershall hands out six completions contracts

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Wintershall Norge has awarded a series of four-year contracts for supply of well completion equipment and services for its operated drilling activities in Norway. 

The contracts have been awarded to six companies including Halliburton which will provide the largest share of the work. Tendeka, TCO, Schlumberger, PTC and Interwell will supply the remaining equipment and services. 

The contracts will be used for completion of wells on Wintershall’s Maria development in the Norwegian Sea as well as the North Sea. There is also an option to use the contracts for Wintershall’s operated Skarfjell development in the future. 

"These contracts are a win-win business for Wintershall and our partners in Norway. They give us the certainty of a robust solution for our drilling activities in the months and years to come, as well as the flexibility to use them on our developments in the future. In a challenging market environment, these are also important contracts for the Norwegian supplier market," said Bernd Schrimpf Wintershall Norge Managing Director. 

The four year contracts, which can be extended for up to four additional years, include supply of downhole valves, packers, liner hangers, injection systems, gas lift equipment and sand screens.

Wintershall and its partners will drill six subsea wells on the Maria field in the Norwegian Sea in 2017.

Friday, 27 May 2016 03:13

Mixed results for West Cable, off Norway

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Det Norske has completed two appraisal wells on the West Cable discovery, nearby the Ivar Aasen field in the Norwegian North Sea.

The wells, in license 001 Bm, 16/1-26 S and 16/1-26 A, were drilled about 1.5km southeast of the 16/1-7 West Cable discovery and sought to prove additional recoverable oil resources in the southern part of the West Cable discovery. 

16/1-26 encountered gas and oil in moderate to good reservoir quality. The oil/water contact was not encountered. 

16/1-26 A encountered about 75m of sandstone in the Sleipner formation with moderate to good reservoir quality, but was dry.

The size of the discovery prior to drilling the appraisal wells was 2.1 MMcu m of recoverable oil equivalents. Preliminary results put the additional resources at between 0.5-2 MMcu m of oil equivalent.

The wells were drilled from a production well being drilled from the Ivar Aasen platform using the Maersk Interceptor jackup in 113m water depth. The Maersk Interceptor is due to continue pre-drilling on the field, due to start up early December this year.

Thursday, 26 May 2016 08:36

Snorre B up 30% from triple well result

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Old and partly lost slots that were given up as providers of new production triggered new solutions for Statoil’s Snorre B. The result was three wells with an average price of US$21.6 million (NOK 170 million), compared to NOK 490 as reference base.

The three new wells, C-2, C-3 and C-4, have boosted Snorre B production by 30%. Image from Statoil.

Drilling and well (D&W) has recently delivered three new wells on the North Sea Snorre B field, contributing strongly to the corporate goal of radical change to reduce the breakeven for new wells.

The three wells, C-2, C-3 and C-4, have boosted Snorre B production by 30%.

“We estimate the price per barrel for these wells to be well below $10. Snorre B is currently producing around 80,000 b/d, which is a very satisfactory result. Together with D&W we have found the right drilling targets for our wells, and when we add a predictable and long-term drilling plan allowing optimization and higher efficiency, we have the success factors,” Oddmund Rismyhr, acting head of Snorre Petec said.

New ideas – new possibilities

“This had not been the outcome if the slots had not been so bad at the outset, forcing us to be innovative. Due to a damaged C-3, for example, we applied a simplified casing design. This resulted in a short and quick well,” Johan Dahl, head of D&W planning said.

The cost reduction recipe involved a standardized and simplified well design – a standard completion design for all wells. The same type of drilling fluid was also applied to allow reuse. By carrying out the same operations in series they also saved a lot of time and resources, as they were able to complete all stages – drilling, lower completion, upper completion and Christmas tree setting – three times when they first started the operations.
“If we drill only one well, we must rent equipment and send it back to shore, while the remaining completion equipment and drilling fluid must be sent to shore when we are done. In this case we did the same operations three times, saving much time, improving use of resources and reducing costs and rental time. We also save a lot on mobilization costs and logistics,” he said.

“At the same time we learn a lot from each well, which is reflected in the reduction in time spent on sub-operations during the process,” says Dahl.

Took advantage of the good weather season

The planning leader points out the good cooperation between D&W and Petec, which allowed them i.e. to include weather considerations in their planning. Normally they experience 35% waiting on weather during the months of the year with the most demanding weather conditions. Operations in bad weather often lead to major downtime incidents. This has been avoided and consequently they have succeeded at their first attempt.

“Earlier we wanted to start production immediately, and it was therefore not considered to adapt operations to the weather conditions. But we realize that when we make a good plan that takes this aspect into consideration and has a long-term perspective we achieve higher production sooner than we did before. If we had done like we did in the old days, we would not have been able to deliver more than two of these three wells, with the starting point we had at that time,” said Dahl.

Aiming for perfection

For the D&W community on Snorre there is only one reference base that matters.

“We are only looking at how close to a «perfect well» we can get,” Ilhan Løwen, drilling superintendent of D&W said.

This is the result of the best sub-operations completed in wells previously and combined in a fictitious reference well.

“We have made it a little difficult for ourselves by including reference wells from the field start-up all the way back in 2001,” he continued.

The perfect well time consumption for C-4, C-3 and C-2 was 49, 46 and 69 days respectively. The actual time consumption was 58, 58 and 91 days. The costs were NOK 168, 149 and 193 million. The average price in the period 2009–2013 was NOK 490 million.

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