26 november 2019
Valaris secures new contracts and extensions worth $285m
Offshore drilling services provider Valaris has secured new contracts and contract extensions for its drilling rigs, with an associated revenue backlog of about $285m.
Valaris noted that the contract for the drillship Valaris DS-18 (Relentless) had been extended due to the exercise of a one-well priced option with EnVen in the US Gulf of Mexico. It has an estimated duration of 45 days from February to March 2020.
Additionally, the rig secured a two-well contract with an undisclosed operator in the US Gulf of Mexico, which is expected to start in June 2020 and has an estimated duration of 180 days.
The drillship Valaris DS-15 (Renaissance) has been awarded a one-well contract with Eni in the Gulf of Mexico. Set to start in November 2019, the contract work is expected to last for 30 days. It also secured a two-well contract with CNOOC offshore Mexico that is scheduled to commence in April 2020 and run for 160 days.
Due to the exercise of a six-well priced option with ConocoPhillips offshore Norway, the contract for the jack-up Valaris JU-292 (Norway) has been extended and is expected to take place for 300 days from May 2020 to late February 2021.
Valaris has also extended contracts for its fleet of Valaris JU-290 (Viking) with Repsol offshore Norway and Valaris JU-249 (Gorilla VII) with Chrysaor in the North Sea.
The Valaris JU-144 jack-up rig (EXL II) has been awarded a 12-well contract with Eni offshore Mexico while the contract for the Valaris JU-122 has been extended due to the exercise of a one-well priced option with Shell in the North Sea.
Valaris said in a statement: “Valaris JU-117 (Ralph Coffman) contract extended due to the exercise of a two-well priced option with an undisclosed operator offshore Trinidad, with an estimated duration of 60 days from February 2020 to April 2020.
“Valaris JU-115 contract extended due to the exercise of a four-month priced option with Mubadala Petroleum offshore Thailand from March 2020 to July 2020.”
Meanwhile, Valaris JU-87 has secured a 21-well contract with ExxonMobil in the US Gulf of Mexico slated to commence in November 2019.
25 november 2019
Marubeni and partners get PSA extension for Ravva field in India
Marubeni’s wholly-owned subsidiary Ravva Oil (Singapore), along with other joint venture (JV) partners, has agreed with the Government of India to extend the production sharing contract (PSC) for the Ravva oil and gas field.
The PSC, which was due to expire in 2019, has been extended for the next ten years. The PSC’s term was first executed in October 1994.
The Ravva oil and gas field is located in the shallow offshore area of the Krishna-Godavari basin on the eastern coast of India and lies in Block PKGM-1. It is approximately 460km northeast of Chennai.
The field was initially estimated to produce 100 million barrels of crude oil. It has, however, produced more than 225 million barrels until 2011. With a water depth of approximately 10m to 15m, the field has eight offshore platforms, one export terminal, four tanks as well as onshore processing facilities.
According to Marubeni, the oil and gas produced from the Ravva field enters the country’s domestic market through refineries and the gas authority firm.
Partners in the field include Oil and Natural Gas Corporation (ONGC), Videocon Industries, Vedanta and Marubeni. Vedanta, through its division Cairn Oil & Gas, operates the field with a 22.5% stake, while ONGC owns 40%, Videocon owns 25% and Marubeni holds the remaining 12.5% ownership in the field.
Through the Ravva field, the JV partners aim to improve energy access in India, contributing to the development of local communities.
The extension will enable the partners to drill additional wells under a field development plan (FDP) to enhance the oil and gas recovery from the asset.
25 NOVEMBER 2019
TGS to begin 3D seismic survey in MSGBC Basin offshore Africa
Norwegian survey service firm TGS is set to start a new seismic survey in the Mauritania, Senegal, Gambia, Guinea Bissau and Guinea Conakry (MSGBC) Basin, offshore north-west Africa.
The Senegal North Ultra-Deep offshore three-dimensional (3D) survey covers an area of more than 5,100km² equipped with an advanced broadband acquisition set-up.
Supported by Senegalese national oil company Petrosen, TGS has partnered with geophysical and geological services provider GeoPartners for this project. The company will use the BGP Prospector vessel for the survey.
This stand-alone northern Senegal survey is the continuation of the recently completed Jaan 3D seismic survey, which is TGS’ 3D dataset covering the southern portion of the MSGBC Basin. The survey will illuminate plays in the ultra-deep levels to build upon the success the basin has experienced with Sangomar (SNE) field, the GTA complex and Yakaar discoveries.
TGS CEO Kristian Johansen said: “This survey will provide the industry with essential subsurface insight ahead of Senegal’s Offshore License Round which is scheduled to commence early next year. SN-UDO-19 extends our coverage in a highly prospective region where TGS has been actively acquiring data for almost two years.
“The MSGBC Basin remains a key region for TGS where our unique combination of multibeam, seafloor sampling, seismic, interpretation and imaging products deliver the best subsurface knowledge in the industry.
“As we expand offshore activities in the Southern Atlantic, we are well-positioned to provide our customers with valuable insights to further develop opportunities both offshore Senegal and in the wider region.”
The project is expected to last for 75 days, with fast track data available three months after the acquisition. TGS noted that the complete dataset will be available by the fourth quarter of 2020.
22 november 2019
Halliburton launches multizone system for deepwater operations
Oilfield services company Halliburton has unveiled the Xtreme Single-Trip Multizone (XSTMZ) system for extreme deepwater conditions.
The new XSTMZ system can be used for completing wells in deepwater and ultra-deepwater conditions up to 15,000 per square inch (psi).
The pressure rating of the XSTMZ system is designed based on the company’s 10,000psi rated Enhanced Single-Trip Multizone (ESTMZTM) system.
It enables operators to isolate and frac pack multiple zones at higher pump rates with larger proppant volumes.
The XSTMZ system also supports the creation of zonal compartments for better stimulation of long pay zones with high-pressure differentials.
Halliburton said in a statement: “The increased capability of the XSTMZ system helps increase production and total recovery by driving down abandonment pressure and can save rig time by isolating and treating several intervals with a single trip.”
The new system will be used by a major operator in the Gulf of Mexico Lower Tertiary to complete multiple reservoirs that experience large bottomhole pressure differentials due to the exhaustion of some of the reservoirs.
With the deployment of the new system, stimulation and gravel packing of long pay zones will be improved in Gulf of Mexico Lower Tertiary.
The operator intends to start equipment installation next year for the completion of two wells.
Halliburton Completion Tools business line vice-president Mark Dawson said: “The introduction of the 15,000psi rated XSTMZ system allows us to maximise production in even more challenging formations while further reducing the time required to complete these wells versus conventional systems.
“The success of our ESTMZ system has helped operators complete over 200 independent zones globally, and we are pleased to see our engineered completion solutions continue to meet our customers’ needs in ultra-deep water.”
22 NOVEMBER 2019
India to divest majority stake in Bharat Petroleum
The Government of India has agreed to sell 53.3% of its stake of oil marketing firm Bharat Petroleum Corporation (BPCL).
According to the Press Trust of India, the government is considering plans to sell BPCL to foreign and private firms.
However, the news agency noted that the privatisation plan will need prior approval from parliament.
India Finance Minister Nirmala Sitharaman said that the decision is part of a move to bridge a widening fiscal gap in the country and to meet the disinvestment target for the fiscal year 2019-20.
She mentioned that the proposed sale will not include the Numaligarh Refinery (NRL) in the state of Assam, which will be later sold to another state-run company.
News 18 quoted Equinomics Research founder and managing director Chokkalingam as revealing to another media house that, ‘given the current scenario, investors should stay put for now and wait for suitors to queue up’.
He added: “It is only then that the true value of these central public sector enterprises (CPSEs) will be discovered, helping the stocks gain more ground, especially in the case of BPCL.”
According to the country’s officials, BPCL will be an attractive buy for companies, ranging from Saudi Aramco to French energy giant Total, which are already in the process of entering the fuel retail market worldwide.
BPCL operates four refineries at Mumbai, Kerala, Madhya Pradesh and Assam with a combined capacity to convert 38.3Mt of crude oil into fuel.
The company owns 15,078 petrol pumps and 6,004 liquified petroleum gas (LPG) distributors, among the total 65,554 petrol pumps and 24,026 LPG distributors in India.
BPCL’s upstream exploration and production plans are being undertaken through its wholly owned subsidiary Bharat PetroResources (BPRL), which currently has participating interest in 17 exploration blocks, which includes six in Brazil.
20 november 2019
Petrobras to become the world’s largest oil producer predicts Rystad
Brazilian Petrobras is set to become the world’s largest oil producer among publicly listed companies by 2030, according to data by Rystad Energy.
Although Brazil’s biggest oil auctions in the second week of November were less successful than expected, shortly after that the company gained eight billion barrels of oil in the Buzios field, where it also has a sixth floater planned. In addition, it bought development rights at the Itapu Field located in the Tarija Department of Bolivia during the transfer-of-rights sale, for which Petrobras paid a $443 million signing bonus.
Current plans for developments off the Brazilian coast are set for a $70 billion offshore capital investment spree between 2020 and 2025, on field development alone, which Rystad predicts to have a major effect on Petrobras’ status.
Rystad Energy upstream team vice president Aditya Ravi said “Petrobras can, in a matter of years, become the world’s largest oil producer among publically listed companies. The significance is huge and symbolic.
“We predict that Petrobras alone can boost its production numbers by more than 1.3 million barrels per day over the next decade,” he added.
Based on Rystad’s forecasts, after its latest acquisitions Petrobras has the potential to overtake PetroChina over the next few months, and overhaul the Russian producer Rosneft over the following decade.
Rystad estimated that Brazil’s production could increase from 2.8 million bpd in 2019 average to over 5.5 million bpd thanks to Petrobras’ potential peak output of almost 3.8 million bpd by 2030.
During 2019, Petrobras climbed from fifth place to become the third-largest oil producer, reaching an output of around 2.2 million bpd in the third quarter. Currently, Rosneft and PetroChina top the list of largest public exploration and production companies.
Petrobras’net income in 3Q19 also reached R$ 9.1 billion – equivalent to R$ 0.70 per share – against R$ 18.9 billion in 2Q19. The Company’s recurring net income and adjusted EBITDA were R$ 10.0 billion and R$ 35.1 billion, respectively.
20 november 2019
ABB proves subsea power system for offshore oil and gas
Swiss-Swedish technology multinational ABB has completed a 3,000-hour shallow water test proving that its subsea power distribution and conversion technology system for the offshore oil and gas industry is commercially viable.
The technology will allow energy companies to access a 100 MW power supply over distances up to 600km and to water depths of 3,000m using a single cable with little or no maintenance for up to 30 years.
The complete system incorporates a number of electronics and control systems that are proven to operate underwater, improving on previous iterations of the technology that could only use a step-down transformer and a transmission cable.
ABB vice president and global industry manager for oil and gas Martin Grady told Offshore Technology: “I think people are going further and deeper to reserves. [This technology meets] the needs of the other subsea equipment – compressors and boosting pumps for us to drive – so you’re looking at the development of a whole range of equipment, that makes that subsea prospect a reality.”
According to ABB, this technology could significantly reduce power consumption in oil and gas operations by powering pumps and compressors on the seabed, closer to reservoirs.
These energy savings would also reduce carbon emissions from offshore operations, which could be reduced further through future integrations with renewable energy sources. The shallow test project in Vaasa, Finland also used a system to recycle its own waste heat as power, reusing 85%-90% of its waste heat.
Based on a specific field development case, the technology could offer offshore oil and gas companies capital expenditure savings of more than $500m by linking eight pumps or consumers through a single cable.
The system was researched, designed and developed as part of a $100m joint industry project (JIP) initiated in 2013 between ABB and Norwegian oil and gas company Equinor, with Total and Chevron as partners.
Describing the JIP, Grady told Offshore Technology: “I think the massive decline of the oil price in late 2014 was a seminal moment for the industry. My perception is that the industry [will] become a lot more collaborative; I think this [project] is a particularly good example because [of] the level of trust and the level of openness.”
ABB Industrial Automation president Peter Terwiesch said: “This milestone marks an outstanding achievement and is the culmination point of an inspirational technology development achieved through tremendous dedication, expertise and perseverance.
“Moving the entire oil and gas production facility to the seabed is no longer a dream. Remotely operated, increasingly autonomous, subsea facilities powered by lower-carbon energy are more likely to become a reality as we transition towards a new energy future.”
ABB told Offshore Technology that the system is ready to be deployed as early as the first quarter of 2020, but will likely be subject to 12 months of further study to account for administrative or legal approval.
20 november 2019
CGG to begin multi-client ocean bottom node survey in UK CNS
French seismic player CGG has taken on a new project to deliver the largest ever ocean bottom node (OBN) multi-client survey to be carried out in the UK Central North Sea (CNS).
Expected to commence in early 2020, the multi-client seismic shoot is being supported by industry prefunding. Oil and gas firm BP is also partly pre-funding the survey, according to CGG.
Imaging deeper reservoir targets is a challenging condition in the CNS due to complex salt diapirism. The new survey will be able to overcome this situation by providing well-sampled, full azimuthal coverage with long offsets to enable precise imaging in challenging geological conditions, especially in a shallow water environment.
It will use CGG’s advanced imaging technology to provide a step-change in the quality of seismic image and reservoir characterisation. As part of the first phase of the multi-year programme, the company plans to acquire approximately 2,000km2 of OBN data.
CGG CEO Sophie Zurquiyah said: “We are pleased to initiate this exciting new OBN programme which will deliver unprecedented industry insight and lead to a step-change in development in this critical Central North Sea area.
“Our asset-light configuration enables us to best take advantage of key opportunities and fully leverage our core capabilities.
“The new data set will also complement CGG’s extensive high-quality Cornerstone towed-streamer data library in the area and support the UK Oil & Gas Authority’s strategy for Maximizing Economic Recovery.”
Due to its expertise in OBN processing, CGG has been qualified to launch this programme to bring new understanding of the geological and geophysical complexity in the CNS region.