OGX Finishes Drilling First Campos HZ Well

- OGX Finishes Drilling First Campos HZ Well

Friday, July 15, 2011
OGX S.A.

OGX announced the conclusion of drilling at the horizontal well 9-OGX-39HP-RJS (Pipeline Horizontal) and as expected identified very good reservoir conditions through a drill-stem test (DST). The well is located in block BM-C-41 in the Campos Basin.

"This was the third horizontal well test that yielded important results, confirming the quality of the accumulations discovered thus far and that are being appraised. We are continuing to move rapidly towards production," said Paulo Mendonça, General Executive Officer and Exploration Officer for OGX.

The OGX-39 well was horizontally drilled for more than 1,000 meters into the carbonate reservoirs of the Albian section of the Pipeline accumulation, which was originally discovered by the 1-OGX-2A-RJS well in November 2009, and uncovered new material information regarding the development of this area. The results from the drilling of the OGX-39 well demonstrated a high correlation with other wells in the Albian section, including calcarenites with excellent porosity with dolomitized and naturally fractured sections, and confirmed the extension of the Pipeline accumulation.

Following the conclusion of the drilling process, a DST was performed which indicated a production capacity of around 10,000 barrels of oil per day with an API gravity of approximately 19°. The process of selective acidification was used in six well intervals, which enabled better stimulation of the 1,000 meter horizontal well extension, thereby maximizing the oil flow.

Oil & Gas Post

Promote Your Page Too
LINK

Petrobras Awards GE O&G Subsea Service Contract in Campos Basin

- Petrobras Awards GE O&G Subsea Service Contract in Campos Basin

Thursday, June 16, 2011
GE O&G

Petrobras has awarded GE Oil & Gas a four-year service agreement to deliver repairs, maintenance and retrofits on Petrobras' fleet of subsea equipment installed in the Campos Basin offshore Brazil. The scope of the agreement, valued at approximately $120M, includes service and repairs on over 300 exploration and 250 production tools, as well as retrofitting six subsea production trees each year with GE advanced technology.

GE will conduct the service program from its Macaé Service Center, located in Rio de Janeiro state, which is currently undergoing a $30M investment refurbishment and expansion. The 91,000 sq. meter facility, which employs over 200 highly skilled employees, will be capable of state-of-the-art inspection, maintenance, repair, spares parts, rental tools and field services for capital drilling, subsea wellhead systems, and subsea production and controls equipment.

Fernando Martins, vice president—Latin America, GE Oil & Gas said, "GE will apply its latest high-tech subsea equipment service and repair technologies across much of Petrobras' Campos Basin installed fleet to help minimize downtime and optimize production output. We will deliver this important assignment from our Macaé Service Center which is currently under expansion and delivers critical offshore production servicing projects for customers including Petrobras, Transocean, OGX and Brasdrill and all the IOC's currently operating in Brazil."

The frame service agreement builds on the announcement this week that Petrobras has awarded GE's Wellstream business a long-term, $200M-plus flexible pipe and subsea equipment logistics services contract to be supported from a dedicated new 55,000 sq. meter, $90M investment Logistics Base that GE will build adjacent to Wellstream's existing manufacturing site in Niterói, 14 kms outside Rio de Janeiro.

In February GE Oil & Gas received $50M in contracts to supply subsea wellhead and installation tooling systems to Petrobras for deployment in Campos and Santos basin projects, bringing to over 1,400 GE's tally of mission-critical subsea wellhead systems installed in Brazilian waters.

GE Oil & Gas has an established presence in Brazil and serves its deepwater segment with integrated drilling & production subsea equipment and services, as well as high-tech unit and modular gas turbines and compressors solutions for fixed & FPSO applications.

GE will open a new $100M investment Global Research Center in Rio de Janeiro in 2012.

Oil & Gas Post

Promote Your Page Too

Petrobras Strikes Oil in Campos Basin

Petrobras Strikes Oil in Campos Basin

Friday, April 29, 2011
Petrobras

Petrobras announced the discovery of a new oil accumulation in the Campos Basin pre-salt, through well 6-AB-119D-RJS drilled in the Albacora field, 107 km off the coast and only 3.2km from the FPSO P-31, by semisub Ocean Concord.

Preliminary volume estimates indicate an economically recoverable volume potential of approximately 350 million barrels of good quality oil (light).

Drilled at a water depth of 380m, it reached the total depth of 4835m, where an oil column of 241m was found, of which 104m are from the carbonate reservoirs of the Macabu Formation, with porosity around 10%.

This discovery will be the object of the Assessment Plan to be opportunely submitted to the ANP. The execution of the Long Duration Test to investigate the production behavior of this new accumulation will be decided after the assessment of the cased-hole drill-stem tests (CHDST) programmed for two selected intervals.

OGX Strikes Oil in Campos Appraisals

OGX Strikes Oil in Campos Appraisals

Wednesday, April 20, 2011
OGX S.A.
by SubseaIQ

OGX has identified the presence of hydrocarbons in the Albian section of 3-OGX-40D-RJS well and in the Albian-Cenomanian section of the well 3-OGX-41D-RJS, both appraisal wells from the Pipeline and Waikiki accumulations, respectively.

"The wells OGX-40 and OGX-41 confirmed the successful OGX delimitative campaign in the Campos Basin and reinforced the Company's base case to develop the 4.1 billion barrels already discovered in the Campos Basin," stated Paulo Mendonça, Executive General Officer and Exploration Officer of OGX.

"The accumulations of Pipeline and Waikiki are among the priorities to be developed for production, due to the advanced stage of the discoveries' delimitation and the quality of the reservoirs," commented Reinaldo Belotti, Production Officer of OGX.

The well OGX-40 found an oil column of approximately 204 meters with a net pay of about 107 meters in carbonate reservoirs in the Albian section. The well OGX-41 discovered an oil column of approximately 148 meters with a net pay of about 92 meters, also in carbonate reservoirs in the Albian-Cenomanian section.

The well OGX-40D is the second appraisal well in the Pipeline accumulation discovered by the well OGX-2A. The first appraisal well of the accumulation was the OGX-36, which also confirmed the presence of oil and contributed to its delimitation. The well OGX-41D is the second appraisal well of the Waikiki accumulation, discovered by the well OGX-25, with OGX-35 being the first appraisal well. The discoveries' evaluation plans for the Pipeline and Waikiki will soon be proposed to ANP.

It is worth noting that wells OGX-40 (Pipeline) and OGX (Waikiki), as well as the wells OGX-35 (Waikiki), OGX-36 and OGX-39HP (both in the Pipeline accumulation), would increased OGX's contingent resources area, in case the certification happened at this moment.

Both wells are deviated and pilots for horizontal wells, in which drill-stem tests could be performed to verify the productivity of these areas, as was done recently for the Waimea accumulation, where exceptional results were obtained.

The OGX‐40D well is located in the BM‐C‐41 block and is situated about 79 kilometers off the coast of the state of Rio de Janeiro at a water depth of approximately 130 meters. The Sea Explorer rig initiated drilling activities there on March 28, 2011.

The OGX‐41D well is located in the BM‐C‐39 block and is situated about 89 kilometers off the coast of the state of Rio de Janeiro at a water depth of approximately 104 meters. The Ocean Lexington rig initiated drilling activities there on April 3, 2011.

Batista: No Need for OGXto Sell 30% Stake in Campos Basin

Batista: No Need for OGXto Sell 30% Stake in Campos Basin

Monday, April 18, 2011
by Jeff Fick

OGX is continuing to explore the sale of part of its Campos Basin oil fields but has reduced the size of the stake to be sold, said OGX Chairman Eike Batista.

"We have discovered such high-quality oil and such high-productivity that we don't see it as necessary to sell a maximum of 30% of our assets," Batista said in a conference call with investors. "The farm-out is ongoing, but it will be reduced to 10%." OGX is part of the billionaire investor's ever-growing industrial conglomerate, which includes energy, mining, logistics and oilfield services companies.

OGX gave investors a clearer picture of the company's value late Friday, when it announced that oilfield consultants DeGolyer and MacNaughton had certified prospective, contingent and delineated resources of 10.8 billion barrels of oil equivalent, or BOE. That was up from an earlier estimate of 6.8 billion BOE made in September 2009. The total included OGX's first contingent resources in the offshore Campos Basin, where the company booked 3 billion barrels of oil equivalent, or BOE.

The report did not include any possible pre-salt resources from the Campos Basin, which could add more than 1 billion BOE to the 5.7 billion BOE total resources in the basin, Batista said.

"We have a huge area to be added," said OGX Chief Executive Paulo Mendonca. The company will further evaluate the pre-salt prospects with fresh three-dimensional seismic data, Mendonca added.

While OGX's pre-salt prospects will require further evaluation, the company is quickly closing in on moving from a pure exploration play to a crude oil producer.

In September, OGX plans to produce its first crude oil. The company will start an extended well test at the Waimea prospect, which is expected to produce about 20,000 barrels a day later this year. The OSX-1 floating production, storage and offloading vessel, or FPSO, will be installed at the site in August, OGX officials have said.

OGX's Batista said that the quality of the oil to be produced from the company's Campos Basin field would range between 20 and 21 degrees on the American Petroleum Institute's grading scale. In talks with refiners in Houston and London, the crude should fetch a better-than-expected price for the company, he added.

"We will fetch Brent oil prices considering today's market situation," Batista said. The company had previously expected to receive a price at a $10-a-barrel discount to U.S. WTI prices, he said.

The shallow waters of the basin will also allow the company to produce the crude at about $7 a barrel, with total operating expenses of about $16 a barrel, Batista said.

OGX Hits Oil Pay in Campos Basin

OGX Hits Oil Pay in Campos Basin

Thursday, April 14, 2011
OGX S.A.

OGX has identified the presence of hydrocarbons in the Albian section of well 1-OGX-33-RJS, which is located in the BM-C-41 block, in the shallow waters of the Campos Basin. OGX holds a 100% working interest in this block.

An oil column of approximately 95 meters with approximately 42 meters of net pay has been identified in the carbonate reservoirs of the Albian section. The drilling of well OGX-33, also known as the Chimborazo prospect, was concluded at a final depth of 3,755 meters.

The OGX-33 well is situated 84 kilometers off the coast of Rio de Janeiro at a water depth of about 127 meters. The rig, Pride Venezuela, left the well on April 9, 2011. Drilling of the third extension well (OGX-42) of the Pipeline accumulation has been initiated.