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Oil and Gas Energy News Update

Wednesday, June 22, 2011

AGR Selected for Eni's Barents Sea Project

- AGR Selected for Eni's Barents Sea Project

Wednesday, June 22, 2011
AGR Group ASA

ENI has chosen technology from AGR Drilling Services for multi-well projects in the Barents Sea and the Norwegian Sea.

The Cutting Transportation System (CTSTM) from AGR will be used on 24 wells drilled by the Norwegian arm of Italian energy company Eni.

The system will mainly be deployed on the Goliat field, the first oil field to be developed in the Barents Sea. Goliat lies some 85km
(51miles) northwest of Hammerfest in the far north of Norway.

CTSTM (example pictured) enables operators to take cuttings up to 2km (1.24miles) away from the wellhead. This means that the well area is kept debris free, helping ensure the operation proceeds as smoothly as possible – particularly when it comes to procedures such as laying cables and tying in umbilicals.

The CTSTM also makes it possible for operators to deposit cuttings away from environmentally sensitive areas.

Johan Møller Warmedal, Executive Vice President of AGR Drilling Services, said, "We are delighted to be working with Eni Norge for the first time and to add such an important new client to our roster of Norwegian Continental Shelf customers. The Barents is an area where we envisage that operators will benefit not only from the capabilities of CTSTM but also our other technologies such as Riserless Mud Recovery."

The use of Riserless Mud Recovery (RMR®) and CTSTM will soon surpass the 500-well milestone. RMR® enables top-hole sections to be drilled more safely, more quickly yet with less environmental impact.

With Eni Norge, 22 wells will be drilled on Goliat with the new semi-sub rig Scarabeo 8. The remaining two wells will be on the Marulk field in the Norwegian Sea and drilled by the Scarabeo 5.

The contract is for four years, with a one-year optional extension.

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