Global Briefs: November 2013

OE Staff
Thursday, November 7, 2013

Transboundary may head to committee

The US Senate bill ratifying the US-Mexico Transboundary Hydrocarbon Agreement, S. 812, is reportedly on its way to a conference committee. The Senate’s version of the bill, passed last month (October), differed from that of the US House of Representative’s version. The House ratified the agreement but exempted US companies engaged in joint exploration agreements with PEMEX from complying with Dodd-Frank disclosures. Senate’s version also ratifies the deal, but without the financial disclosure exemption. The US-Mexico Transboundary Hydrocarbon Agreement that would allow for joint oil and gas exploration between the two countries within the Gulf of Mexico (GOM).

Keppel, PEMEX develop yard


Keppel Offshore & Marine signed a memorandum of understanding (MOU) at the Ministry of Affairs in Singapore with PEMEX to jointly develop, own and operate a yard facility in Mexico specializing in construction, maintenance, and repair of platforms and other larger vessels. The yard will be located in the Port of Altamira, in Tamaulipas state. The total yard development cost will be around US$400 million, with the first phase estimated at about US$150 million.

Exmar signs LOI

Exmar signed a letter of intent (LOI) with LNG Partners, LLC and LNG BargeCo BVBA for the long-term charter of a Floating Liquefaction & Storage Unit (FLSU) to serve the BC LNG Project near Kitimat, British Columbia, Canada. The two companies have invested in a joint venture company appropriately named Marching Prospect Limited. The new company will acquire interests in the BC LNG Project upstream of the FSLU. In addition, Exmar has loaned US$47,600,645 to finance a non-refundable deposit for the FLSU’s construction.

Technip scores GOM gig

Houston-based LLOG Exploration awarded Technip a contract for the development of the Delta House field. Technip is tasked with project management, engineering, fabrication, installation and precommissioning of more than 200km of infield and export flowlines and risers. Overall project managemet will be handled by Technip’s Houston office. The infield flowlines and risers will be welded at the company’s spoolbase in Mobile, Alabama. The offshore installation is expected to be performed in the 2H 2014 by vessels from Technip’s fleet: the Deep Blue will lay the deepwater infield lines while the G1200 construction vessel will install the export flowlines.

Annova LNG files for export

Houston-based Annova LNG LLC has filed an application with the US Department of Energy to receive authorization to export domestic LNG to free trade agreement countries. Located in the Port of Brownsville, Annova’s facility is in its initial stages and is expected to be inservice by mid-2018. The facility’s output is expected to reach 2 MTPA (1 MTPA per train). Annova’s facility was designed to be small enough to sell 100% of its volume in long-term tolling agreements to buyers in FTA countries, with the scalability in place to expand to 6 MTPA.

Breagh in production

Production has begun on RWE Dea UK’s Breagh gas field located in Blocks 42/13a and 42/12a in the UK sector of the southern North Sea, about 65km off the coast of northeast England. The first three wells brought into production had an initial total flow rate of 2.75 MMcm/d of natural gas, the company confirmed. Total reserves of the Breagh field are estimated at approximately 19.8 Bcm.

Cyprus estimate revised

Noble Energy, Inc. downgraded the gross resource potential of its A-2 appraisal well, drilled on the Block 12 discovery offshore the Republic of Cyprus. With the reserve potential initially set between 5-8Tcf, the company has now lowered its figures to 3.6-6Tcf. The Houston-based company said the test was limited by surface equipment. Noble operates Block 12 offshore the Republic of Cyprus with a 70% working interest. Delek Drilling and Avner Oil Exploration each have 15% working interest.

BPZ spuds Peru well

Drilling has begun on Houston-based BPZ Energy’s A-18D development well at the Albacora field platform, located off Peru in Block Z-1. Drilling and completion is expected to take up to 12 weeks. In February, the company conducted 3D seismic data acquisition of Block Z-1 to define its exploration program. Targeted depth of the well will be approximately 12,000ft subsea. BPZ Energy holds 51% interest in offshore Block Z-1, which it is developing in partnership with Pacific Rubiales Energy Corp.

Parque das Conchas in production

Production has begun at Shell’s second development phase of the Parque das Conchas (BC-10) project, located off Brazil’s southeast coast. The BC-10 project is comprised of several subsea fields which are tied back to the Espírito Santo FPSO vessel.

Shell and its partners announced in July a plan to move forward with the project’s third development phase, which will include the installation of subsea infrastructure at the Massa and Argonauta O-South reservoirs.

Once online, phase three expected to reach a peak production of 28,000 boe. Shell’s partner ONGC Videsh Ltd increased its stake from 15% to 27%. Shell remains as operator in BC-10 with 73% interest.

BP joins Moroccan blocks

Kosmos Energy has entered into three farm-out agreements with BP plc covering three blocks in the Agadir Basin, offshore Morocco. Under the agreement, BP will pick up 30% non-operating interest in Essaouira, 26.325% in Foum Assaka, and 45% in Tarhazoute. The three contiguous blocks cover approximately 25,000sq km and water depths range up to 3,000m.

Polarcus starts Gabon seismic

Polarcus commenced a 3D seismic acquisition program for Panoro Energy ASA in the Dussafu block off Gabon. The work is planned to cover an area of approximately 1260sq km in the outboard part of the Dussafu license. The primary objective is to upgrade leads that have previously been identified on 2D seismic data to be drillable prospects. These leads are expected to contain pre-salt Gamba and Dentale sandstones. The new 3D seismic acquisition program is expected to be completed by mid-November, with the first high quality seismic products available during Q2 2014. The fully processed seismic data is expected to be available for interpretation and mapping by the second half of 2014.

Tullow joins Namibia license

Tullow Kudu Ltd. entered a farm-in agreement with Australian explorer Pancontinental Oil and Gas NL for 65% of the company’s exploration license (EL) 0037 offshore Namibia. Pancontinental will retain 30% with partner Paragon Oil and Gas holding the remaining 5%. Terms of the agreement includes Tullow funding extensive 3D and 2D seismic campaign and drilling an exploration well. The 3D seismic survey is expected to begin next year.

New MOU for Ivory Coast

Rialto Energy Ltd’s Ivory Coast subsidiary signed a new memorandum of understanding (MOU) with the Cote d’Ivoire Ministry of Oil & Energy, the state-owned oil and gas company PETROCI, and Vitol E&P to replace the existing production sharing contract for block CI-202. The new PSC reflects the new proposed entry of Vitol into the partnership, which was announced last April. Rialto agreed to sell 65% interest in CI-202 for an initial US$50 million to fund appraisal and development activities on the block.

BKE in Dragon jackup deal

Dubai-based Dragon Oil plc has leased two LeTourneau S116E jackup rigs from BKE Shelf Ltd to use in its Cheleken Contract Area, offshore Turkmenistan. The Neptune and Mercury have been contracted for a period totaling three years. Neptune will be utilized for the first nine months of the project, and is expected to be available in the fourth quarter. Operations will then shift to the Mercury for the remainder of the three-year term. Dragon is the sole operator of Cheleken, which includes two offshore oil and gas fields, Dzheitune (Lam) and Dzhygalybeg (Zhdanov) in water depths of between 8-42m (26-137 ft).

Lagansky block agreement

Lundin Petroleum AB and its partner Gunvor Group signed a heads of agreement with Rosneft Oil Co. to jointly sell 51% of PetroResurs LLC. PetroResurs, the Russian subsidiary of Lundin, is the 100% owner of the Lagansky block license, located in the northeastern Caspian Sea. The Lagansky block license contains the Morskoye discovery with best estimate gross contingent resources of 157MMboe. Lundin currently controls 70% of PetroResurs, with Gunvor holding the remaining 30%.

Kashagan offline For the second time since it produced first oil in September, a gas leak has sidelined Kashagan’s operations. As of press time, Kashagan has not returned to production.

Petronas approves Lundin’s plan

Lundin Malaysia won the approval of its Bertam field development plan from Malaysia’s Petronas. The Bertam field marked Lundin’s first development project in the country.

Roc surveys Bohai Bay

Roc Oil Co. Ltd. announced the completion of its 162sq km 3D ocean bottom cable (OBC) seismic campaign in the 09/05 exploration license, located in the Bohai Bay, offshore China.

Chevron, Tohoku agree

Chevron’s Australian subsidiaries signed binding long-term sales and purchase agreements with Tohoku Electric Power Co. Inc. to supply LNG from the Chevron’s Wheatstone project in Western Australia.

CGG completes Australian 3D survey

CGG completed completion its first BroadSeis- BroadSource survey off Australia in July. The 2810sq km, 3D BroadSeis survey was acquired by the Viking Vision towing a 12 x 100 x 6000m spread of steerable, Sercel Sentinel solid streamers and equipped with BroadSource, the company’s proprietary broadband marine seismic source.

Categories: LNG Vessels Engineering Subsea North Sea Activity South America Asia North America Canada Gulf of Mexico Installation Africa China Seismic Fabrication

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