E&P Highlights: Jan. 13, 2023

From CNOOC’s plan to bring 9 fields onstream in 2023 to drilling rig updates, below is a compilation of the latest headlines in the E&P space in the past week.

Activity headlines

Wintershall Dea discovers gas at E. Damanhour

Wintershall Dea reported discovering gas at its East Damanhour exploration block, in the Nile Delta.

Cheiron Energy and INA are the partners. The discovery will be evaluated by the Egyptian Gas Holding Co., (EGAS) as a potential tieback development to Disouq’s nearby infrastructure, operated at DISOUCO, a joint venture of Wintershall Dea & EGAS.

In November 2021, Wintershall Dea began exploration at East Damanhour. This was the second exploration hole in this license. The ED-2X Well is located approximately 3km north of the Disouq Field. The well discovered a 43-m thick, gas-bearing reservoir at 2,627 meters. It had a gas-water contact of at least 15 MMcf/d.

Wintershall Dea manages the East Damanhour Block with 40% for partners Cheiron with 40, INA with 20%, and EGAS.

Pensacola prospect has gas

Deltic Energy Plc reported that the Pensacola prospect exploration well 41/05a-2 of License P2252 in Central North Sea had encountered gas. The license partners have accepted a well testing program.

Shell holds the license with 65% interest for Deltic at 30% and ONE Dyas at 5%.

Trillion plans SASB sidetracks at Black Sea

Trillion Energy International Inc. reported plans to increase production at the South Akçakoca Sub-Basin (SASB) gas field in the Black Sea in 2023 by adding three side-track wells to its development program.

The total number of wells in the SASB program development program now stands at 20. Eleven more wells are planned for 2023.

Trillion said that the three additional side-track wells were due to the experience gained from successful recompletion and other geological works. To calculate the remaining gas reserves for the East Ayazli Gas Field, and Akkaya Gas Field, production volume, log evaluations and perforation intervals have been evaluated.

Hibiscus production is well spudded

BW Energy announced that it had drilled the production well at the Hibiscus/Ruche Phase 1, development in Dussafu Block off Gabon.

Borr Norve’s jackup dug the well in January. The production well DHIBM-3H, which targets the Gamba Sandstone reservoir on Hibiscus Field, will take approximately two months to drill. In January, the installation of flexible pipes and risers to complete the 20-km link between the BW MaBoMo manufacturing facility and the FPSO BW Adolo were also completed.

“We are on track for first oil towards the end of the first quarter,” said BW Energy CEO Carl Krogh Arnet. “This will be the first step of many on a path for successive production growth as we complete the drilling Hibiscus/Ruche Phase 1 program and asset upgrades through 2023 and into early 2024.”

Hibiscus/Ruche Phase 1 drilling campaign focuses on the Hibiscus/Ruche field. This will add 30,000 bbl/d to total oil production once all wells have been completed in early 2024.

The installation of the new gas-lift compressor for supporting production from the six Tortue existing wells is continuing. It was installed onboard the BW Adolo in decembrie. The first oil from Hibiscus/Ruche will be able to commission and start-up the compressor.

Updated White Rose recoverable Reserves

Canada-Newfoundland and Labrador Offshore Petroleum Board, (C-NLOPB), has updated its estimate for recoverable reserves at White Rose.

Cenovus Energy’s decision to construct a wellhead platform and proceed with the White Rose Extension Project has extended the life of the White Rose Field from 2032 to 2038.

C-NLOPB estimates that the field has 436 MMbbl oil. This is an increase from 2015’s 404 MMbbl estimation. The board attributes this increase to the field’s longer life.

However, estimates for NGL and 2P contingent gas have declined from 2015 estimates.

C-NLOPB reduced the 2P contingent-gas estimate for White Rose Field to 1,497Bcf (1.5Tcf) from its previous estimate of 2,716Bcf (2.7Tcf). This was due to a change in the methodology used for assessing gas resources.

C-NLOPB said a decrease in gas volume is responsible for dropping the field’s 2P NGL estimate to 45 MMbbl from the 2015 estimate of 82 MMbbl. The decrease is directly related to the reduction in gas volume.

Gannet well is close to Triton FPSO production

Tailwind reported that the Gannet E well, 21/30c/29 (GE-04), had been drilled on the U.K. Continental Shelf.

Petrofac was responsible for the operation of the well that was drilled using the Stena Do.

Tailwind reports that the well results are better than pre-drill.

The well will be connected to the Triton FPSO by Dana in February 2023, and produce 8,000 boe/d. Tailwind stated that there are two additional wells in the Triton joint-venture committed plan for drilling and production in 2024. Each well is capable of producing more than 5,000 boe/d. There are also some smaller impact well interventions planned in 2023.

Tailwind offers 100% interest on the Gannet field.

News and contracts

CNOOC plans to bring 9 fields online by 2023

CNOOC Ltd. is targeting net production of 650 MMboe to 660 MMboe in 2023, with the expectation the operator will reach net output of around 700 MMboe in 2024 and up to 740 MMboe in 2025.

To support these targets, the operator budgeted for the 2023 capex at $14.9 billion to 16.4 billion.

Capex is made up of 18% exploration, 59% for research and 21% for production.

The operator sets its production targets based on nine new projects that it expects to bring on stream, including the Bozhong 19-6 Condensate Gas Field Phase I Development Project; Lufeng 12-3 Oilfield Development Project; Enping 18-6 Oilfield Development Project. In China, the Payara Project is Guyana, Buzios5 Project, and Mero 2 Project in Brazil.

Perenco puts Fololo on Mibalé Field

Perenco DRC subsidiary Perenco Rep announced it installed a self-elevating platform system on the Mibalé Field, offshore the Democratic Republic of Congo (DRC).

Perenco Group installed the Fololo system as the 11th. Fololo was developed by Perenco to support operations in the DRC. It has lightweight floating pontoons, and legs that can be raised to the required height.

The Fololo was initially designed to support workover operations. It was also intended as an alternative for the traditional options for operations in shallow water depths below 30 m. These options were jacket-based and required a heavy lifting barge to install. The idea was to build a self-elevating mini platform measuring 20 m x 20 m with enough space for all the equipment and materials needed for well intervention.

Fololo allows workover groups to install electric submerged pump (ESPs) on their own without any external assistance.

Perenco is currently working to make the concept more capable in waters between 40 m and 60 m to help with the development of additional fields.

Trendsetter for Shenandoah intervention package

Trendsetter Engineering Inc. announced it won a multi-year rental and servicing agreement to provide a 20,000 psi subsea well intervention package for Beacon Offshore Energy LLC’s Shenandoah project in the Gulf of Mexico.

Trendsetter expects the delivery of the system by the third quarter 2023. The scopes were previously awarded for the initial design of the system and its qualification.

Trendsetter’s TRIDENT intervention system is suitable for offshore mobilization to a vessel of opportunity and capable of rapid re-configuration to facilitate hydraulic, riserless light-well and risered medium-well subsea intervention operations.

Nigeria sets pre-bid conference for bid round

A pre-bid conference is being held by Nigerian Upstream Petroleum Regulatory Commission. It is for the Mini Bid Round 2022. The Mini Bid Round 2022 is offering seven deepwater exploration block.

NUPRC stated that this bid round is the first of a series aimed at encouraging deepwater exploration and oil and gas drilling.

The seven blocks on offer —PPL 300, 301, 302, 303, 304, 305 and 306— are in water depths ranging from 1,150 m to 3,100 m.

Companies interested in applying for the position should submit their pre-qualification application by January 31st. Bids must be submitted by April 7, and the bid winners will announced on April 19.

NUPRC keeps a portal dedicated to the bid round.

Orcadian farming in Crinan and Dandy fields

Orcadian said it would sell its interests in Crinan and Dandy discovery in the U.K. North Sea for Rapid Oil Production Ltd.

Rapid is currently developing the Fyne field near the discoveries. It hopes to get development approval this year. Rapid could produce Crinan as part of Fyne Cluster in phase two or 3, according to the company. This would be followed by a Dandy tieback via Fyne.

Hydrogen conversion system that qualifies for DNV qualification

Ocyan engaged DNV as an independent party to help with the qualification process for a system injecting hydrocarbons into drilling rigs’ internal combustion engines.

DNV’s technology qualification process will verify that the technology achieves the expected degree of maturity, following provisions in DNV-RP-A203 – which provides the industry with a systematic approach to technology qualification, ensuring that new technologies function reliably within specified limits.

Ocyan has partnered with LZ Energia as a technology partner. This company develops technological solutions that reduce fuel consumption and pollution. The project is supported by Shell Brasil, through the RD&I investment clause of the National Petroleum Agency (ANP).

TechnipFMC wins Dvalin North EPCI work

TechnipFMC was awarded an engineering, procurement construction and installation contract by Wintershall DEA for the Dvalin North project located on the Norwegian Continental Shelf.

The contract covers all aspects of the design, engineering, manufacturing, and installation of pipe.

Dvalin North Field, which will be tied back to the Heidrun Platform via the existing Dvalin Field.

TechnipFMC installed previously subsea umbilicals risers flowlines in Dvalin Field.

Strohm’s Jumpers on Demand planned for Uaru

Strohm won a second “Jumper on Demand” contract from ExxonMobil to supply more than 24 jumpers and associated pipe handling equipment for the Uara Field offshore Guyana.

The thermoplastic composite pipes (TCP) jumpers are made of carbon fiber, PA12 polymer and will be installed to depths up to 1,700 m. They will be used for water and gas injection.

This award is subject to approval by the government and final investment decision. It follows an ExxonMobil similar award a year ago for jumpers for Yellowtail, also offshore Guyana.

The TCP will be manufactured by Strohm at its Netherlands facility. TCP will be delivered in one continuous length. This will allow individual 24-plus jumpers to cut to the length they desire, as well as to be terminated and tested in Guyana.

Valaris announces rig contracts

TotalEnergies EP Brasil a exercised the option for VALARIS DS-15 drillship offshore Brazil. Valaris announced this in its most recent fleet status reports. The option has been exercised, and the rig is expected be in contract until December 2023. There is one price option remaining, with an estimated duration 100 days.

Harbour Energy has taken two-year options on VALARIS 120, a heavy-duty harsh environment jackup, for work in the U.K. North Sea. In direct continuation to an existing contract, the first option period will begin in July 2023.

Petrofac signed a one-well contract to work in the U.K. North Sea on VALARIS 121, a heavy duty harsh environment jackup. The contract is expected start in the third quarter of 2023, and will last for 70 to 100 days.

Talos Energy used a one-well option to purchase the standard duty modern Jackup VALARIS144 for work in U.S. Gulf of Mexico. The option is an extension of the existing program, with a duration estimated at 30 days. The daily rate for the operating day is $86,900.

North Sea Natural Resources has signed a one-well contract with the U.K. North Sea to supply VALARIS Norway, a heavy duty, ultra-harsh environment jackup, at an operating rate of $105,000.

LoA for Blackford Dolphin

Dolphin Drilling AS has announced that it has signed an award letter (LOA), for the Blackford Dolphin, for 120 to 485 days work in Nigeria. The minimum firm period is $325,000. This work would be in continuation of the previously announced contract with General Hydrocarbon Ltd.

Nigerian Agip extends Abo FPSO

BW Offshore has announced that it has extended Abo FPSO’s contract with Nigerian Agip Exploration Ltd. (a subsidiary of Eni S.p.A.).

The extension will continue through March 31, 2023.

Helix Robotics charters Glomar Wave

Helix Energy Solutions Group’s robotics division, Helix Robotics Solutions, has entered into a three-year charter agreement with two years of options for the DP2 offshore support vessel Glomar Wave for work in both the offshore oil and gas and renewables sectors.

The Glomar Wave, a multi-role vessel, can be configured with one or two remotely operated vehicles (ROV) and Helix’s new custom-built IROV boulder and debris clearance tool.

Rockwell wins ICSS for Búzios FPSO

Sensia, a joint venture between Rockwell Automation and SLB, will supply automation and integrated control and safety systems (ICSS) for the P-79 FPSO destined for the Petrobras-operated Búzios pre-salt field in the Santos Basin offshore Brazil.

Previously, Rockwell supplied the ICSS for the P-78 FPSO, also for the Búzios Field.

Petrobel extends Trident 16 Jackup Contract

Shelf Drilling Ltd. announced that it had extended its contract for the Trident 16 jackup rig for one year in continuation of its current term with Belayim Petroleum Co., (Petrobel), for operations in the Gulf of Suez off Egypt.

The contract comes with a 1-year option period. Since 2015, the Trident 16 has been operating in Belayim with Petrobel. After this extension, the expected availability date for the rig is February 20, 2024.

FET provides ROVs to OceanPact

 

Forum Energy Technologies (FET) has delivered three of its 200 hp Perry XLX-C work-class remotely operated vehicles (ROV) to Brazil-based OceanPact to support inspection, repair and maintenance services for Petrobras’ oilfields.

FET also provided a VMAX ROV Simulator with a complete XLXC Console as part of this scope. The simulator includes training exercises that are designed to help pilots improve their skills in tether management and manipulator control, as well as operation of tooling.

Odfjell reopens Aker BP-Halliburton Alliance deal

Odfjell Drilling Ltd. has extended its “one for all, all for one” collaborative alliance agreement with Aker BP ASA and Halliburton AS for a further five years.

Through common incentives, the alliance will work together to drill and complete well projects and provide greater value for all members.

Odfjell Drilling is equipped with two semi-submersibles, which were contracted by Aker BP. Aker BP is currently operating the Deepsea Nordkapp, while the Deepsea Stavanger will begin operations in 2025 with Aker. The renewal of the Alliance model is expected to allow both units to operate, subject approval from respective licenses.

Apex adds Egypt leases in its portfolio

Apex International Energy purchased four concessions from IEOC Production B.V. in Egypt’s Western Desert, a unit under Eni S.p.A. After parliamentary approval of extensions, the company will be able to acquire two more concessions. This is what the company anticipates in the first quarter 2023.

Apex and IEOC were also awarded the East Siwa exploration permit in the Western Desert. IEOC holds 50% operator interests. The East Siwa concession agreement was approved by the Egyptian General Petroleum Co. and is expected to be signed into law by parliament in the second quarter 2023.

Apex discovered four new fields in the South East Meleiha (SEM), concession in January 2021. The company plans to continue exploratory drilling in SEM until 2023.

Archer closes on Romar-Abrado deal

Archer Ltd. has closed the acquisition of Romar-Abrado, which offers advanced milling and SWARF handling services in the plug and abandonment (P&A) market.

Archer CEO Dag Skindlo said the acquisition expands Archer’s capabilities within workover operations and well abandonment.

“Romar-Abrado fits well with our strategy for brownfield and P&A,” he said. “We expect [the] These markets are expected to see increased activity as long as the outlook and fundamentals remain positive. In addition, the transaction will contribute to the acceleration of our international expansion within the well services segment.”

ABS launches Custom Rule Book

ABS has launched the Custom Rule Book tool. This allows users to quickly create custom ABS rule sets, saving considerable time.

ABS MyFreedom users are now able to quickly filter 140 guides and 28,000 pages, 600 notations and create a Custom Rule Book. Inputting a vessel’s ABS class number or selecting six attributes produces a custom collection of rules, according to the classification society.

Zenith is negotiating Block 1 offshore Benin

Zenith Energy Ltd. said the Republic of Benin’s Ministry of Water and Mines has awarded Zenith Energy three months of exclusivity to negotiate the terms of a Block 1 production sharing contract.

The block holds the Sèmè oilfield offshore Benin. The shallow-water oil field has produced 22 million barrels of oil to date. However, the last commercial production occurred in 1998 at low oil prices.

Sèmè North was discovered in 2015 with recoverable reserves of 16 MMbbl.

Ace rebrands its self

Ace Oil Tools, the company behind the Ace Rachet Collar (ARC), has changed its name to Ace Well Technology to reflect the company’s ability to support hydrocarbons as well as geothermal and carbon capture and storage (CCS).

The company will be focusing on its core markets and expanding markets in 2023.