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Showing posts with label Caspian. Show all posts
Showing posts with label Caspian. Show all posts

Friday, September 9, 2011

Total Hits Gas Pay in Caspian

- Total Hits Gas Pay in Caspian

Friday, September 09, 2011
Total S.A.

Total on Friday announced a major gas discovery in the Caspian Sea in the Absheron block offshore Azerbaijan.

The Absheron X-2 well has encountered more than 500 feet of cumulated net gas pays within high quality sands on the northern flank of a major 270 square kilometers structure. Reservoirs are expected to extend over the entire northern part of the structure.

The well's first results confirm a potential of several trillion cubic feet of gas and associated condensates.

"This discovery could be very significant in terms of resources," said Total's Senior Vice President Exploration, Marc Blaizot. "It is the result of Total's bolder exploration strategy aimed at exploring high risk/high reward prospects both in prolific and frontier basins particularly in high pressure, deeply buried reservoirs. Our geoscientists and drillers have all the skills to make other discoveries in similar environments like the United Kingdom, Brunei, Malaysia or Egypt where new permits have been recently awarded to Total."

The well is currently at a depth of approximately 6,550 meters. Drilling will continue to explore further deeper objectives that look attractive. The well will then be tested to better confirm the reservoir potential.

The Absheron discovery is located in 500 meters of water, 100 kilometers south east of Baku, some 25 kilometers north east of the Shah Deniz gas and condensate field.

Total subsidiary, Total EP Absheron is the operator of the Absheron license with a 40% equity. The partners are SOCAR (40%) and GDF SUEZ (20%).

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Wednesday, August 17, 2011

Fluor Lands Caspian Pipeline Expansion Contract

- Fluor Lands Caspian Pipeline Expansion Contract

Wednesday, August 17, 2011
Fluor Corp.

Fluor has been awarded a contract by Chevron Neftegaz—one of three project managers engaged by the Caspian Pipeline Consortium—for its recently announced expansion project. Fluor will provide project services for the marine terminal and supervisory control and data system (SCADA) portions of the Caspian Pipeline Expansion project. The pipeline begins in western Kazakhstan and runs 1,510 kilometers west to the terminal in Novorossiysk, Russia, on the Black Sea. Fluor booked $100 million into backlog in the second quarter.

"This pipeline expansion is a vital first step to pave the way for numerous additional crude oil production expansion projects in the region," said Peter Oosterveer, president of Fluor's Energy & Chemicals Group. "As the original program management contractor for the first phase of the Caspian Pipeline project—which involved refurbishing more than 700 kilometers of pipeline and building an additional 740 kilometers—we're pleased in the confidence the client consortium has again placed in us. This expansion of the Caspian pipeline and terminal to increase oil transportation capacity is crucial to Russia, Kazakhstan and European economic stability and to meet energy demand."

As the project services contractor, Fluor is providing oversight assistance for the deepwater marine terminal expansion in Novorossiysk as well as the SCADA system for the entire pipeline. The project is scheduled to be completed at the end of 2014.

Fluor completed the first phase of this pipeline project with the first crude oil loaded onto a tanker at the marine terminal in October 2001.

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Thursday, July 21, 2011

Caspian Energy, Partners Spud Kazakh Well

- Caspian Energy, Partners Spud Kazakh Well

Thursday, July 21, 2011
Caspian Energy Inc.

Caspian Energy and partners announced spudding of an exploration well between the two producing wells in the East Zhagabulak field of Kazakhstan.

The new well is the first step in a plan aimed at expanding the area held by the partners under a 25-year production licence, said Caspian Chairman and CEO William Ramsay. Ramsay said the well is one of six drilling targets approved July 8 by the Central Development Committee (CDC) of the Republic of Kazakhstan.

Well EZ #308 spud on July 16 and will take about 100 days to complete to about 4,700 meters, Ramsay said. It is targeting the same carboniferous structure of the Bashkirian layer from which the two earlier successful wells are currently producing about 400 barrels of oil per day.

All wells will be drilled under the direction of Aral Petroleum Capital, the operating entity in Kazakhstan, which is owned 40 per cent by Calgary-based Caspian and 60 per cent by Asia Sixth Energy of China.

Second target

At the same time that EZ #308 began drilling, a second rig was en route to a location southwest of the East Zhagabulak field, an area officially designated Zhagabulak II and III and locally known as Sakramabas. This rig is expected to commence drilling the CDC-approved Sakramabas #316 well before the end of July.

"Our seismic analysis indicates the potential for a high-porosity carbonate reef at the Sakramabas #316 site," Ramsay said. Neighbors have drilled successful wells on surrounding leases and our 3-D seismic indicates our well is on the same trend line as those producing wells and we have more advantageous geological conditions for oil and gas accumulation than our neighbors."

"It's a new direction for us and a potential new resource base, arising out of the success of our neighbors and a consequent re-examination of our seismic data.

"This is a deep well, targeting the same well know carboniferous structure of the Bashkirian layer at some 4,500 meters," he said. "Again we expect drilling to take about 100 days to reach total depth, with testing to follow.

"By drilling two separate exploration plays, we're offsetting risk and enhancing potential," Ramsay said. "We have good confidence in both prospects, but they are exploration wells and they entail some level of risk."

Next steps

Next steps in Aral's drilling plans will be governed by results at Sakramabas, Ramsay said. Success there may indicate the presence of a number of separate new oil and gas formations, from East Zhagabulak to Sakramabas. In the event of a good result at Sakramabas #316, the partners will complete the EZ #308 well and move that rig to a location northeast of Sakramabas, where it will test for oil between Sakramabas and East Zhagabulak. An additional drilling rig would then be contracted in October to pursue targets within East Zhagabulak.

Obtaining new geological data could prove regional distribution of oil and gas productive layers through all central parts of the Zhagabulak field and will enable Aral to apply for a production license on a greatly expanded area, Ramsay said.

"We would cross over into the new year with three rigs working full time to prove up the potential of the Zhagabulak field," he said.

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Wednesday, July 13, 2011

Dragon Oil Breathes Life into Caspian Well

- Dragon Oil Breathes Life into Caspian Well

Wednesday, July 13, 2011
Dragon Oil plc

Dragon Oil has recently refitted the previously stacked Rig 40 and commenced drilling on the Dzheitune (Lam) 13 platform. The rig has spudded the Dzheitune (Lam) development well 13/160, the first of four wells planned to be drilled from this platform. Two wells and one sidetrack are expected to be completed by the end of 2011 with the remaining two wells and another sidetrack to be completed in 2012. Later, the Rig 40 will be stacked pending consideration of options for its further use.

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Monday, July 11, 2011

Could Energy Resources Cause Russia to Spark a Naval War in the Caspian?

- Could Energy Resources Cause Russia to Spark a Naval War in the Caspian?

Monday, July 11, 201
OilPrice.com
by John Daly

In the past three decades the Islamic Republic of Iran has developed a well-earned sense of paranoia. First, in September 1980 Saddam Hussein invaded Iran in what he thought would be a quick military victory, but which quickly turned into an eight-year bloody slugfest, leaving an estimated 500,000-1,000,000 dead before the guns fell silent.

More recently Iran has been subjected to increasingly militant rhetoric from both Tel Aviv and Washington over its civilian nuclear energy program, with thinly veiled threats of possible military action if Tehran does not abandon its efforts, even though they are completely complaint under the terms of the Nuclear Non-Proliferation Treaty (NPT), which Iran has signed.

Now however, potential is brewing for Iran from an unexpected direction - the north.

Russia is sharply increasing its military presence in the Caspian. Russian Federation Navy Commander in Chief Admiral Vladimir Vysotskii has stated that Russia's Caspian Sea Flotilla will receive up to 16 new ships over the next decade, while some aviation units will be transferred to the Navy from the Russian military's southern operational-strategic command. What has really got to have the mullahs in Tehran fingering their worry beads however is Vysotskii's promise to provide the Caspian Sea Flotilla with Bastion shore-based missile systems armed with Yakhont hypersonic missiles, which are designed to destroy surface targets at distances of up to 200 miles.

Russia's Caspian Sea Flotilla flagship, the Tatarstan frigate, is already the most powerful vessel on the Caspian, armed with Uran missiles with a range of 100 miles. Later this year the Tatarstan will be joined by a sister ship, the Dagestan.

The Caspian Sea Flotilla is also taking delivery of the first in a series of new Project 21631 Buyan-M-class rocket-artillery ships, along with three amphibious assault ships.

The Iranian Navy has a total of approximately one hundred, mostly small combat and supports ships on the Caspian. They include three Iranian-made midget submarines (of a North Korean type that can transport a group of combat divers and have a range of 1,200 miles), an outdated Salman-class minesweeper (American-made), and patrol cutters.

Russian analysts believe that Iran however has the ability to increase its Caspian naval forces by 50 percent in short order by relocating craft from the Persian Gulf.

As for the other Caspian littoral states - Azerbaijan, Turkmenistan and Kazakhstan, their naval forces are negligible, to be polite.

So, why is Russia beefing up its naval presence?

The most likely reason is the one that has bedeviled the region for the last two decades - a final treaty delineating the ownership of the Caspian's offshore waters and seabed has yet to be signed. While Moscow and Tehran might agree about keeping the U.S. locked out of exploiting the Caspian's energy resources, worth an eye-watering $3 trillion, they remain at loggerheads over the issue of dividing the Caspian, with Russia insisting that each nation receive offshore waters in proportion to its coastline, while Iran insists that all five nations receive an equitable twenty percent apiece. Under the Russian definition Iran's share would be 11-13 percent.

Complicating the issue is that international law has yet to definitively designate whether the Caspian is an inland "sea" or a lake, an adjudication which has enormous implications for both the applicability of the 1982 U.N. Convention on the Law of the Sea and negotiation of the boundary demarcation regime affecting the littoral states' rights to significant undersea oil deposits.

Ironically, Iran has itself played the "gunboat diplomacy" card in the past. On 23 July 2001, an Iranian warship and two jets forced two Azeri research vessels, the Geofyzik -3 and the Alif Hajiyev, operating in what Azerbaijan calls the Alov oilfield on behalf of BP-Amoco, to leave the field where they were conducting surveys, which lies 60 miles north of Iranian waters. BP-Amoco immediately announced it would cease exploration activities and withdrew the research vessels. Azerbaijan denounced the move as a violation of its sovereignty and on 31 July charged that an Iranian reconnaissance aircraft had violated Azeri airspace and come within 90 miles of Baku. Ramping up the pressure, Iranian former Pasdaran Commander Mohsen Reza'i pointedly reminded Azerbaijan that the whole country had once been Iranian territory and that Iran might decide to take it back, even as the Iranian press speculated that the whole thing was a provocation cooked up by Azerbaijan who was scheming to bring about American intervention in the Caspian.

In the unlikely event that hawks in Washington ever considered, then or now, to fly the Stars and Stripes on the Caspian while taking a few potshots at the evil Russkies or the even more perfidious Axis of Evil mullahs, then geography seems to have thrown a spanner in the works, as the Caspian's sole exit point, the Volga-Don canal, is controlled by... Moscow.

What seems to be happening is that Russia has decided that gunboat diplomacy has its uses, and an upping of its naval presence in the Caspian might finally persuade Iran's obstinate mullahcracy that it's time to divvy up the Caspian pie according to Moscow's formula.

And, after all, 11-13 percent of $3 trillion is no small chunk of change, even to an OPEC member.

(John Daly is an energy and geopolitical specialist with OilPrice.com. The full article is available here.)

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Friday, July 1, 2011

Chevron Begins Work to Double Capacity at Caspian Pipeline

- Chevron Begins Work to Double Capacity at Caspian Pipeline

Friday, July 01, 2011
Dow Jones Newswires
MOSCOW
by Jacob Gronholt-Pedersen

The Chevron-led Caspian Pipeline Consortium Friday said it has started a $5.4 billion expansion to double capacity to 1.4 million barrels a day by 2015.

"The capacity of the 900-mile [1500 kilometer] pipeline, which carries crude oil from Western Kazakhstan to a dedicated terminal in the Black Sea, will increase to 1.4 million barrels a day from its current capacity of 730,000 barrels a day," Chevron said in a statement.

The project will be implemented in three phases with capacity increasing progressively from 2012 to 2015, Chevron said.

The pipeline, which has been operating for ten years, ships crude from the Tengiz and Karachaganak fields in Kazakhstan to Russia's Black Sea port of Novorossiysk.

CPC shareholders include Lukoil Holdings, Transneft, Shell, ExxonMobil), Kazakhstan's KazMunaiGas and Italy's Eni.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Wednesday, May 25, 2011

NC KMG, KMG EP Sign MOU for Joint Participation in Caspian Sea

- NC KMG, KMG EP Sign MOU for Joint Participation in Caspian Sea

Wednesday, May 25, 2011
JSC KazMunaiGas Exploration Production

JSC NC KazMunaiGas (NC KMG) and JSC KMG EP (KMG EP) have signed a Memorandum of Understanding, providing KMG EP with access to the detailed geophysical, financial and economic data of a number of oil and gas projects, including those located in the Kazakhstan sector of the Caspian sea. The list of projects includes, in particular, the offshore blocks Zhambyl, Ustyurt, Zhenis, Godina, С-1, С-2 as well as an onshore block Urikhtau. By agreement between the two parties the list of oil and gas projects may be expanded.

On the basis of the provided data KMG EP will conduct a technical, economic and investment evaluation of the above-stated projects to consider the Company's participation in these projects, subject to negotiations with NC KMG and on the same commercial terms as other participants.

Kairgeldy Kabyldin, Chairman of the Management Board of NC KMG noted, "The engagement of the resources and experience of KMG EP in the joint development of the Caspian sea shelf along with the large international oil companies is an important step for the KazMunaiGas group of companies. Enhanced participation of the National Company KMG in the offshore projects corresponds to the strategic interests of the country in the oil and gas sector."

Askar Balzhanov, Chief Executive Officer of KMG EP said, "Signing of the Memorandum is an important step in implementation of our Strategy which envisages participation in the development of the Caspian sea shelf as a way to increase the Company's resource base and hydrocarbons production. KMG EP possesses the necessary technical and financial resources for carrying out offshore oil operations."

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Tuesday, April 26, 2011

BP Liquidates Well in Caspian Sea

BP Liquidates Well in Caspian Sea

Tuesday, April 26, 2011
Knight Ridder/Tribune Business News
by E.Ismayilov, Trend News Agency, Baku, Azerbaijan

BP is the technical operator for development of the gas condensate field Shah Deniz in Azerbaijan's sector of the Caspian Sea. It will drill a new well SDX-07 for more advanced drilling in the field, a source in the oil and gas market said.

BP previously began drilling the SDX-07 well, but operations were suspended due to problems of lifting the casing pipe. The pipe was to be lowered to a depth of 1,100 meters, but could only descend to a depth of 900 meters.

"The well will be eliminated," a source said. "The drilling rig will be moved to another location to drill a new well."

The source did not mention a set date of liquidating the old well and its replacement with the new one.

He said that drilling is conducted from the Istiglal rig.

Drilling of the new well is planned to be completed by late 2011.

Two offshore platforms will be installed and 30 underwater wells will be drilled to extract additional 16 billion cubic meters of gas per year within the Shah Deniz -2 project. Peak production is forecast at over 8.6-9 billion cubic meters. Gas production may be brought up to 25 billion cubic meters per year under the second stage of development.

The field's reserves are estimated at 1.2 trillion cubic meters during the first stage. The contract to develop Shah Deniz was signed June 4, 1996. Participants are BP (operator) -- 25.5 percent, Statoil Hydro -- 25.5 percent, NICO -- 10 percent, Total -- 10 percent, LukAgip -- 10 percent, TPAO -- 9 percent, and SOCAR -- 10 percent.

Monday, April 25, 2011

Lukoil to Begin Work with Rosneft in Caspian, Black Seas

Lukoil to Begin Work with Rosneft in Caspian, Black Seas

Monday, April 25, 2011
Dow Jones Newswires
by Jacob Gronholt-Pedersen

Russia's biggest private oil producer Lukoil and state oil champion Rosneft plan to begin joint exploration in the Black and Caspian Seas under a new long-term cooperation agreement, Lukoil Chief Executive Vagit Alekperov said Saturday, according to the government's website.

The two companies announced a deal to merge forces in offshore exploration last week.

"It's a step forward that today allows us to take on very complex projects, both technological and capital-intensive," Alekperov told Prime Minister Vladimir Putin during a meeting.

Alekperov said Lukoil and Rosneft are likely to begin their joint work on projects in the Caspian and Black Seas, and may also merge two projects in the Timan Pechora region, where Lukoil already has oil export infrastructure in place.

Black Sea

The agreement also envisions joint development of offshore fields in the Azov Sea and in Arctic waters, Alekperov said.

Alekperov didn't say when work would begin, but said the deal with Rosneftby Sept. 1.

Wednesday, March 30, 2011

Statoil, KazMunaiGas Team Up in Caspian Sea JV

Statoil, KazMunaiGas Team Up in Caspian Sea JV

Wednesday, March 30, 2011
Statoil
Statoil and KazMunaiGas have signed the Heads of Agreement (HoA) on the Abay block in the Kazakhstani sector of the Caspian Sea.

Under the HoA, the parties plan to conduct evaluation of the hydrocarbon potential of the Abay block in the Northern Caspian Sea. Statoil and KazMunaiGas will jointly establish a company that will serve as operator of the project. The exploration work program will cover seismic surveys, data acquisition and the drilling of one exploration well.

"Joint cooperation in the Abay block is an important strategic step for Statoil as we continue our international growth. This agreement marks an important milestone in Statoil's re-entry into Kazakhstan and I am very pleased that we have strengthened our partnership with KazMunaiGas," said Tim Dodson, executive vice president for Exploration in Statoil.

In addition to the work program the joint operating company will participate in social investment projects including training of local personnel. Statoil will provide financial and technical assistance to KazMunaiGas' project to build, own and operate a jack-up drilling rig for the use in the Caspian Sea.

"We are interested in cooperation with Statoil in attracting and using their experience and technologies in operating international offshore oil and gas projects. The HoA signing confirms the intentions of the parties about the strategic partnership of our two companies on the joint activities in the Caspian Sea," said Kairgeldy Kabyldin, Chairman of the management board of JSC NC KazMunaiGas.

The Abay block is located 65 km from the shore, at a water depth of 8-10 meters.