Ascent Gets OK for License Extension Offshore Netherlands

- Ascent Gets OK for License Extension Offshore Netherlands

Tuesday, September 13, 2011
Ascent Resources plc

Ascent Resources has received confirmation of the extension of its M10/M11 block licenses ('the Project') located offshore Netherlands in the southern North Sea until June 30, 2013.

The M10/M11 appraisal project is in the shallow waters off the north coast of the Netherlands. In the license area there are three structures, all of which contain gas discovery wells with the gas present in the Slochteren unit of the Rotligendes sandstones. A conceptual development plan has been prepared and a final appraisal well is being planned for H2 2012 to confirm reservoir parameters for the detail project design. This well will be an appraisal well for the Terschelling Noord discovery, which is in a structure that lies partly within the M10/M11 license area and partly to the area to the south. The well would be expected to then become a production well for the development.

ARN holds a 54% interest in the Project. Other partners in the Project are Energie Beheer Nederland B.V with 40% and GTO Limited with 6%.

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Apache Gets Environmental Nod for Julimar, Brunello Fields

- Apache Gets Environmental Nod for Julimar, Brunello Fields

Thursday, September 08, 2011
Apache Corp.

Apache said a subsidiary has received Australian government environmental approval for development of the Julimar and Brunello offshore natural gas fields that will supply natural gas to the Chevron-operated Wheatstone LNG project.

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MWCC's First Non-Member Gets Permit Approval

- MWCC's First Non-Member Gets Permit Approval

Wednesday, September 07, 2011
Marine Well Containment Co.

Marine Well Containment Company (MWCC) announced that Petrobras America Inc. (PAI) is the first non-member to have cited MWCC's system to receive an approved drilling permit.

PAI contracts with MWCC for the right to cite the MWCC system in its permit application to the Bureau of Ocean Energy, Management, Regulation and Enforcement for a deepwater well in the U.S. Gulf of Mexico.

The agency approved the PAI application on September 2 to drill a development well at its Cascade field approximately 180 miles south of the Louisiana coast in water depth of 8,200 feet.

"MWCC is a not-for-profit, independent organization available to all deepwater U.S. Gulf of Mexico operators," said Chief Executive Officer Marty Massey. "Even if an operator is not a member of MWCC, our system can be made available on a well by well basis and cited in respective applications for permits to drill."

The MWCC member companies include Chevron, ConocoPhillips, ExxonMobil, Shell, BP, Apache, Anadarko, BHP Billiton, Statoil and Hess. These 10 companies operated approximately 70 percent of deepwater wells drilled in the U.S. Gulf of Mexico between 2007 through 2009.

All MWCC members have equal ownership, with each paying a proportional share of the system development and operating costs. System equipment and services are available to members and can be made available to non-members for use in the U.S. Gulf of Mexico.

An expanded containment system is on track for delivery in 2012. In addition to operating in water depths up to 10,000 feet, the system will have the capacity to capture up to 100,000 barrels of fluid and handle up to 200 million cubic feet of gas per day.

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BP Gets Govt OK for Kinnoull Field Development

- BP Gets Govt OK for Kinnoull Field Development

Tuesday, September 06, 2011
BP plc

On behalf of its co-venturers BP announced an agreement to invest up to £700 million to progress a project to develop the Kinnoull reservoir in the central North Sea.

Kinnoull is the largest of three reservoirs that are being developed as part of the Andrew Area developments project, and contains 45 million barrels of oil equivalent. The reservoir will be connected to BP's Andrew platform and enable production to be extended to 2020 and beyond.

Production from Kinnoull is forecast to peak at 45,000 barrels per day and be exported via the existing Forties pipeline system to Kinneil and the CATS pipeline system to Teesside.

Trevor Garlick, Regional President for BP's North Sea business said, "The Kinnoull project is a further demonstration of BP's vision to sustain a material and high quality business in the North Sea region. It is also a showcase for the outstanding subsea expertise that exists within the UK. At its peak the project will create employment for over 1,000 people in the UK."

Charles Hendry, Minister of state for Energy and Climate Change said, "I am pleased to see that BP is taking forward the development of the Kinnoull field. With around 90% of the development involving UK firms, this is a real big win for our domestic supply chain and shows that the thriving North Sea oil and gas sector continues to deliver economic benefit. I hope major global players continue to harness the expertise of UK companies as new developments come forward."

In order to access the new reservoir, the project will install a new subsea system and caisson onto the Andrew platform. The backbone of the subsea system will be 4 subsea bundles with a total length of 28 km - the longest bundle system in the world - which will carry the fluids to the Andrew platform for processing. The bundle system is being fabricated by Subsea 7 at its facility in Wick, Scotland.

To accept the new Kinnoull production fluids, and to facilitate the production from the Lower Cretaceous reservoir below the Andrew reservoir, the Andrew platform will undergo major modifications including the addition of a 750 ton process module. Construction will be completed over 2 years, with the flotel Borgholm Dolphin on location throughout. The Andrew platform is expected to be shut down for 18 months during this campaign during which time operational work will also be undertaken to maintain the efficiency and integrity of the existing Andrew platform facilities.

The new facilities are scheduled to commence production in 2013.

BP owns 77.06%, with other interests as follows: Eni (16.67%); Summit (6.27%)


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GDF Suez Gets NPD Nod for North Sea Drilling

- GDF Suez Gets NPD Nod for North Sea Drilling

Wednesday, August 31, 2011
Norwegian Petroleum Directorate
by SubseaIQ

The Norwegian Petroleum Directorate has granted GDF Suez Norge AS a drilling permit for well 7124/4-1 S, cf. Section 8 of the Resource Management Regulations.

Well 7124/4-1 S will be drilled from the Aker Barents drilling facility at position 71°35'16.16" north and 24°5'56.84" east after completing the drilling of wildcat well 6508/1-2 for Det Norske Oljeselskap ASA in production license 482.

The drilling program for wellbore 7124/4-1 S relates to drilling a wildcat well in production license 530. GDF Suez Norge AS is the operator with a 30 percent ownership interest. The other licensees are Rocksource ASA (20 percent), Front Exploration AS (20 percent), North Energy ASA (20 percent) and Repsol Exploration Norge AS (10 percent).

The area in this license consists of the blocks 7123/6 and 7124/4. The well will be drilled about 100 kilometers north of Hammerfest and about 70 kilometers northeast of the Goliat field.

Production license 530 was awarded in the 20th licensing round. This is the first well to be drilled in the license.

The permit is contingent upon the operator securing all permits and consents required by other authorities prior to commencing drilling activity.

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Transocean Bid Gets Green Light from Aker Investors

- Transocean Bid Gets Green Light from Aker Investors

Friday, August 26, 2011
Transocean Ltd.

Transocean Services, a wholly owned subsidiary of Transocean, after receiving clearance by the Oslo Stock Exchange, launched its all cash voluntary offer (the "Offer") for 100 percent of the shares of Aker Drilling ASA ("Aker Drilling") for NOK 26.50 per share. The Offer has been made on the same terms as the previously announced voluntary offer, except that it has been made on an unconditional basis and with settlement guaranteed by a financial institution.

The Offer period begins August 26, 2011 and ends on September 23, 2011 at 11:30 a.m. (EDT), 5:30 p.m. (CEST). To date, Transocean and its affiliates have acquired 13.7% of the shares and votes in Aker Drilling, and shareholders representing 59.5% of the total share capital of Aker Drilling have given their unconditional and irrevocable pre-acceptances to the Offer.

The Offer document has been reviewed and approved by the Oslo Stock Exchange in accordance with Section 6-14 of the Norwegian Securities Trading Act. The document will also be sent to the shareholders of Aker Drilling, subject to restrictions under applicable securities laws.

The Offer and the distribution of this announcement and other information in connection with the Offer may be restricted by law in certain jurisdictions. Transocean assumes no responsibility in the event there is a violation by any person of such restrictions. Persons into whose possession this announcement or such other information should come are required to inform themselves about and to observe any such restrictions.

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Sound Oil Gets Govt Nod for Rapagnano Concession

- Sound Oil Gets Govt Nod for Rapagnano Concession

Wednesday, August 24, 2011
Sound Oil plc

Sound Oil announced that the Italian Ministry for Economic Development has awarded the Rapagnano Concession, located in the Marche Region of central Italy, to the Company's wholly-owned subsidiary Apennine Energy srl. The award is subject to the acceptance of any environmental impact assessment that may be required by the Marche regional authorities. In view of the previous production history at the site which is within an industrial area, the Company anticipates that this acceptance will be granted.

The Rapagnano gas field on the concession had previously produced 4.1 Bscf of gas into the national network until it was shut-in in 2001. A recent reservoir engineering study by consultants Senergy (GB) Ltd has estimated that an additional 2.45 Bscf of gas is potentially recoverable from the field. Apennine's objective will be to put the field back on stream at an approximate estimated cost of US $0.5 million with expected first revenue in 2Q of 2012.

Commenting on the news, Gerry Orbell, Sound Oil's Chairman and Chief Executive, said, "This is very encouraging news. The Italian Ministry has awarded the Rapagnano field to us at no cost with the expectation that we can put it back on stream quickly. We intend to produce to the national gas network through the connection which is on site and provide an early cash flow with minimal investment."

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BHP Billiton-Petrohawk Deal Gets Final Nod

- BHP Billiton-Petrohawk Deal Gets Final Nod

Thursday, August 18, 2011
BHP Billiton plc

BHP Billiton and Petrohawk announced that on August 17, 2011, BHP Billiton and Petrohawk received notice from the Committee on Foreign Investment in the U.S. (CFIUS) that CFIUS has concluded that there are no national security issues of concern in relation to the transactions contemplated by the merger agreement between BHP Billiton and Petrohawk, including BHP Billiton's tender offer for all of the issued and outstanding shares of common stock of Petrohawk for US $38.75 per share in cash. As previously announced, on July 22, 2011, BHP Billiton and Petrohawk received notice from the U.S. Federal Trade Commission of early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act in relation to the tender offer. Accordingly, all regulatory approvals conditions to the tender offer have been satisfied.

The documents related to the tender offer have been filed with the U.S. Securities and Exchange Commission (the SEC). As previously announced, the tender offer has been unanimously recommended by the Petrohawk board of directors and is being made pursuant to the merger agreement between BHP Billiton and Petrohawk. The tender offer is scheduled to expire at midnight, New York City time, at the end of Friday, August 19, 2011, unless the tender offer is extended or earlier terminated in accordance with the rules and regulations of the SEC and the merger agreement.

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Reliance-BP Deal Gets OK from Indian Govt

- Reliance-BP Deal Gets OK from Indian Govt

Tuesday, August 09, 2011
Reliance Industries Ltd.

Reliance Industries Limited has received the Government of India approval for its transformational deal with BP. Reliance Industries is grateful to the Government of India for the approval, which will result in the largest foreign investment in the domestic hydrocarbon sector.

BP will take 30% stake in 21 oil & gas production sharing contracts that Reliance operates in India, including the producing KG D6 block. Following the approval, RIL and BP will work together to conclude the deal expeditiously.

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Rowan Gets Go-Ahead for Share Repurchase Program

- Rowan Gets Go-Ahead for Share Repurchase Program

Monday, August 08, 2011
Rowan Companies Inc.

Rowan's board of directors has authorized the Company to repurchase up to $100 million in shares of its common stock.

Matt Ralls, Rowan's President and Chief Executive Officer, commented, "This share repurchase program is an expression of confidence in Rowan's long-term future and ability to continue to create shareholder value."

This program is effective immediately. Repurchases under this program will be made through the open market or in privately negotiated transactions. These repurchases may be commenced or suspended from time to time without prior notice.

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RWE Dea Gets Govt Nod for Breagh Field Development

- RWE Dea Gets Govt Nod for Breagh Field Development

Monday, July 25, 2011
RWE Dea AG

RWE Dea UK announced that the field development plan for its operated Breagh gas field has received the unconditional approval of the Department of Energy and Climate Change (DECC) of the UK Government.

The FDP approval from DECC was formalized today by Charles Hendry MP, Minister of State for Energy at RWE Dea UK's London office, in a ceremony attended by senior management of RWE Dea and its Breagh license partner, Sterling Resources (UK).

"The FDP approval is a hugely significant achievement for our Breagh gas field development. It is an essential element for the realization of our strategic target to boost RWE Dea's annual gas and oil production to more than 70 million barrel of oil equivalents by 2016," said Ralf to Baben, Chief Operating Officer of RWE Dea AG.

René Pawel, RWE Dea UK's Managing Director, commented, "I am delighted with today's announcement by the UK Government. It means that RWE Dea UK remains on course to achieve production from the Breagh field less than three years after we acquired operatorship of the Breagh license."

The FDP approval marks yet another step in a busy summer for the Breagh development. Around 100 kilometers of 20" pipeline has been successfully installed offshore and the platform is due for installation in early September. The platform is being constructed by Heerema Vlissingen in the Netherlands and consists of a jacket approximately 85 meters tall with a total weight of some 4,000 tons and topsides of approximately 1,400 tons. The platform will be installed by Heerema Marine Contractors.

Energy Minister Charles Hendry said, "This is welcome news, Breagh is one of the largest natural gas discoveries in the Southern North Sea in recent years, and developments like this play a vital role in ensuring we have secure energy supplies throughout the UK. It is also encouraging to see the success of initiatives such as the Promote license, developed through PILOT, which originally allowed Sterling Resources to gain access to this acreage and bring the development forward under the partnership and operatorship of RWE Dea."

The Breagh field is located in UKCS blocks 42/12a and 42/13a of the southern North Sea in 62 meters water depth, approximately 100 kilometers east of Teesside. The field is being developed in two phases. Phase 1 entails gas to be exported via the 20" pipeline from the Breagh Alpha platform to Coatham Sands, Redcar on the UK mainland, and a 10 kilometers onshore pipeline for processing at the Teesside Gas Processing Plant (TGPP) at Seal Sands. The TGPP site is owned by Teesside Gas & Liquids Processing, and after processing at the TGPP, the gas will enter the UK National Transmission System. Phase 2, expected to receive FDP approval in early 2012, is expected to include additional wells in the east of the field drilled from a Breagh Bravo platform tied back to Alpha.

RWE Dea holds 70% interest in the Breagh gas field as operator (Sterling Resources UK 30%). The gas field is a conventional carboniferous reservoir and the expected reserves will make a significant contribution to the growth of RWE Dea's gas production. Further upside potential is expected in the surrounding exploration blocks.

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Statoil Gets Green Light to Drill N. Sea Block 15/8

- Statoil Gets Green Light to Drill N. Sea Block 15/8

Thursday, July 21, 2011
Petroleum Safety Authority Norway

Statoil has secured consent to conduct exploration drilling in the central part of the North Sea using the COSLPioneer mobile facility.

The consent relates to the drilling of exploration well 15/8-2 in production license 303. The well is located about 250 kilometers southwest of Stavanger. The consent also covers the drilling of a potential sidetrack.

The well has the following geographical coordinates: N 58° 24' 55.08", E 01° 32' 49.89" Water depth at the site is approx. 119 meters.

Drilling is scheduled to start in late July/early August 2011. The expected duration of the activity is about 79-124 days, depending on potential discoveries.

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Commodity Corner: Oil Gets Boost from EIA, Bernanke

- Commodity Corner: Oil Gets Boost from EIA, Bernanke

Wednesday, July 13, 2011
Rigzone Staff
y Matthew V. Veazey

Oil futures received a boost Wednesday from the latest inventory data from the U.S. Energy Information Administration as well as testimony by Federal Reserve Chairman Ben Bernanke. The WTI benchmark on the New York Mercantile Exchange gained 62 cents to settle at $98.05 a barrel. Brent futures, meanwhile, rose $1.03 to end the day at $118.78 a barrel.

The EIA reported that U.S. commercial crude oil inventories declined sharply last week. According to the agency, oil stocks fell by 0.9 percent to 355.5 million barrels. The 3.1 million barrel week-on-week decline exceeded analysts' expectations. A panel of analysts surveyed by Platts, for instance, predicted a relatively modest 2.1 million-barrel draw.

Testifying before a U.S. House panel Wednesday, Bernanke hinted that the central bank may initiate a third attempt to stimulate the economy by printing more money to buy Treasury bonds. This "quantitative easing" monetary policy approach is designed to improve liquidity in the economy by enticing banks to make more loans to businesses and consumers. A third round of quantitative easing, or "QE3," would be bullish for oil because the Fed would weaken the value of the U.S. dollar by making money more widely available to banks. For investors holding currencies other than the greenback, dollar-denominated crude oil would become a better value.

The WTI peaked at $99.21 and bottomed out at $96.53 while Brent futures fluctuated from $117.01 to $119.50.

Front-month natural gas gained seven cents to settle at $4.40 per thousand cubic feet. Sizzling temperatures extending from the Midwest to the East Coast, with more to come beginning this weekend after a brief respite, have boosted cooling demand.

The intraday range for natural gas during midweek trading was $4.31 to $4.42.

Gasoline futures rose by a nickel to end the day at $3.15 a gallon. The commodity traded within a range from $3.08 to $3.175.

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Bowleven Gets Exploratin Extension at Etinde Permit

- Bowleven Gets Exploratin Extension at Etinde Permit

Friday, July 08, 2011
BowLeven plc

Bowleven announced the following update on activities on the Etinde Permit, offshore Cameroon.

Highlights

• One year extension to Etinde PSC exploration phase
• Cameroon LNG project progressing; gas sales term sheet signed by Etinde joint venture and SNH/GDF Suez
• Sapele-2 testing program ongoing; update now expected in around two weeks

Etinde PSC Extension

In accordance with the provisions of the Etinde PSC, Ministerial approval has been received from the Government of Cameroon for a one year extension to the exploration phase of the Etinde PSC (to December 21, 2012). The Etinde Permit comprises blocks MLHP-5, 6 and 7 and planning for continuing exploration and appraisal activities during 2012 across the Etinde Permit is already underway.

Cameroon LNG

The GDF Suez and SNH initiative to advance the monetization of the substantial undeveloped gas resource within Cameroon via an in-country gas aggregation scheme to supply an LNG facility is progressing. On June 30, 2011, GDF Suez, SNH and the Etinde joint venture signed a term sheet that includes the principles intended to govern the sale and purchase of gas to the proposed LNG facility.

Sapele-2 testing program

The Sapele-2 well was drilled to appraise both the Lower and Deep Omicron discoveries and a testing program is ongoing. Mechanical difficulties, which have now been resolved, were encountered during testing activities and consequently results are now expected in around two weeks.

Kevin Hart, Chief Executive of Bowleven, commented, "We are delighted with progress made in securing an exploration extension for Etinde and in agreeing outline terms for the sale of gas to the proposed Cameroon LNG facility. The Etinde PSC extension allows us to maintain momentum in pursuing our dual strategy of targeting high impact exploration in Cameroon whilst also focusing on converting resources to reserves. We eagerly await the test results from Deep and Lower Omicron at Sapele-2."

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Statoil Gets Go-Ahead to Drill Aldous Wells

- Statoil Gets Go-Ahead to Drill Aldous Well

Wednesday, July 06, 2011
Det norske oljeselskap ASA

Statoil has as operator of production license 265, received the Petroleum Safety Authority Norway's consent for drilling two exploration wells on the prospects Aldous Major and Aldous North. Det norske has a 20 percent share in the license.

Det norske has expectations for the Aldous wells, as there is a chance that the prospects are an extension of Lundin's major discovery on Avaldsnes in 2010.

There have been several encouraging discoveries in this area in the North Sea.

In PL 265 a promising gas discovery at Ragnarrock was made 2009. In wellbore 16/2-4 Statoil discovered both oil and gas in the license, in 2007.

The wells 16/2-8 and 16/2-9S are two of four planned wells in the area in 2011, to define the discoveries in both PL 265 and Avaldsnes.

Expected start of the first well is in week 28. The second well will be drilled immediately after. The whole operation is expected to take around 75 days. The wells will be drilled by the semisubmersible drilling rig Transocean Leader.

Licensees in production license 265:

• Statoil (operator) 40 percent
• Petoro 30 percent
• Det norske 20 percent
• Lundin 10 percent

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Inpex Gets AU Govt OK for Ichthys Project

- Inpex Gets AU Govt OK for Ichthys Project

Tuesday, June 28, 2011
Inpex Corp.

The Australian Government's decision to grant environmental approval to the Ichthys Project is a welcome step forward and helps pave the way for a final investment decision in the fourth quarter of 2011.

INPEX President Director Australia Seiya Ito said Federal environmental approval represents a significant milestone for the project following a rigorous three year assessment process, comprehensive environmental studies and extensive engagement with the community and other stakeholders.

"We are committed to developing and operating the Ichthys Project in an environmentally and socially responsible manner and will continue to work closely with the government and community as we progress the project," Mr. Ito said.

The decision today by the Minister for Sustainability, Environment, Water, Population and Communities, the Hon. Tony Burke, follows the Northern Territory Government's announcement in May that the environmental impacts of the planned Ichthys development in Darwin can be managed within acceptable limits.

"I would like to acknowledge both the Australian and Northern Territory governments for their thorough environmental assessment process," Mr. Ito said. "The input we received from government and the community during the process resulted in improved outcomes for all stakeholders."

The proposed Ichthys Project includes a subsea production system, semi-submersible central processing facility, a floating production, storage and offtake vessel located at the Ichthys Field in the Browse Basin, approximately 200 kilometers off the northwest coast of Western Australia, and onshore gas processing facilities at Blaydin Point, Darwin, Northern Territory. An 885km subsea gas pipeline will link the offshore and onshore facilities.

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Brazil OSX Gets Go-Ahead to Start Building Acu Shipyard

- Brazil OSX Gets Go-Ahead to Start Building Acu Shipyard

Monday, June 27, 2011
Dow Jones Newswires
RIO DE JANEIRO
by Jeff Fick & Diana Kinch

Brazilian oil-field services company OSX Brasil said Monday that it had received approval to start construction of a shipyard at the Acu Port complex in Rio de Janeiro state.

OSX will start work next month to build "the largest shipyard in the Americas," the company said. OSX, part of billionaire Brazilian businessman Eike Batista's industrial conglomerate, will partner with South Korea's Hyundai Heavy Industries Co. to build the shipyard, the company said.

Brazil's ship-building industry is undergoing a renaissance as the company ramps up production to meet growing demand from the country's oil and natural-gas industry. Several new shipyards are under construction along Brazil's Atlantic Ocean coast, while many yards that were closed during an industry downturn in the early 1980s are being revived.

Brazil was among the world's largest ship producing countries in the 1980s before a global downturn in the industry saw the local docks shuttered.

Last week, OSX said that it had received approval for a credit line worth up to 2.7 billion Brazilian reais ($1.69 billion) from Brazil's Merchant Marine Fund to finance construction of the shipyard.

OSX plans to build vessels for sister company OGX Petroleo e Gas Participacoes, which will produce crude oil from the Campos Basin off the coast of Rio de Janeiro state. The 2,400-meter docks at the shipyard will have the capacity to build up to 11 floating production, storage and offloading vessels, or FPSOs, at the same time. The FPSOs use hulls about the size of an oil supertanker.

Another OSX sister company, LLX Logistica, which is responsible for construction of Acu port, said Monday it gained an environmental permit to construct a navigation channel within the port. The channel, called TX2, will provide 8,000 meters of quayside, substantially boosting the quayside capacity available on the port's coastal stretch.

Part of the additional quayside space will be used by the OSX shipyard, while the rest is planned for use in loading and unloading of products including steel, coal, granite and oil, LLX said.

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

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BP Gets Two-for-One Deal off Norway

- BP Gets Two-for-One Deal off Norway

Friday, June 24, 2011
Rigzone Staff
by Jaime Kammerzell

BP is combining two separate fields to develop its Skarv and Idun project in the northern Norwegian Sea. The project, which is due to come online in 3Q 2011, is being developed in 350 to 450 m (1,148 to 1,476 ft) of water, between the Norne and Heidrun fields in Production Licenses 212, 262, and 159. The fields contain hydrocarbons at three reservoir levels. BP and its partners estimate total recoverable reserves to be 16.8 MMcm of oil and condensate and 48.3 Bcm of rich gas.

BP serves as the operator with 24% interest, along with partners Statoil with 36%, E.On Ruhrgas Norge AS with 28%, and PGNiG Norway AS with 12%.

Skarv

Amoco, shortly before merging with BP, made an impressive hydrocarbon find in the Donnatello field on Dec. 24, 1997. The Donnatello field, which would later be renamed Skarv, is in 250 to 450 m of water on Norwegian Blocks 6507/5, 6507/6, 6507/3 and 6507/2.

The Maersk Jutlander semisubmersible drilled the well on behalf of Amoco to 4,224 m TD in the early Jurassic formation. Following the discovery, Amoco suspended the well. In 2002, BP contracted the West Alpha semisubmersible to drill the Skarv 6507/5-5 appraisal well, which reached 3,950 m TD and confirmed the 1997 find.

West Alpha

The field's recoverable resources are made up of 80% gas and 20% liquids. Oil will be produced using pressure support from gas injection, and gas will be produced by depletion.

Idun

Statoil discovered the Idun gas field in 1999. Idun is in PL 159, blocks 6507/3-3 in 350 to 450 m of water. The Byford Dolphin semisubmersible drilled the well to 3,830 m and found gas in the Jurassic sandstones. Statoil confirmed the gas discovery with two appraisal wells drilled at 6507/3-3Q and 6507/3-3B to 4,275 m. Statoil then plugged and abandoned the appraisal wells on March 25, 1999.

Field Development Plan

It took nearly 10 years for BP to submit a field development plan to jointly develop the fields. In June 2007, BP proposed a $5 billion plan for development and operation of the Skarv and Idun oil and gas fields to Norwegian authorities. The fields contain hydrocarbons at three reservoir levels with a combined estimate of 106 MMbbl, and 48 Bcm (170 Bcf) of natural gas.

According to the development plan, BP plans for oil production capacity to be 85,000 b/d and gas output at 15 MMscm/d. BP also said that it has identified additional resources in the area, which can be linked back to the Skarv/Idun production facilities at a later date.

BP's concept studies concluded that the best development solution was an FPSO [floating production, storage and offloading] vessel with subsea equipment tie backs. According to the operator, power from shore was considered, but at that time it was not technically feasible in combination with an FPSO.

Thus, BP and its partners are developing the fields with the Skarv FPSO, 16 subsea wells, and an 80 km (50 mile) gas export pipeline connected to the Aasgard Transport System. Shuttle tankers will collect oil from the 875,000 bbl vessel every 10 days.

Skarv FPSO

FPSO

The Skarv FPSO is the biggest vessel ever built for deployment on the Norwegian Continental Shelf.

BP contracted Aker Solutions in November 2005 to perform the project's front-end engineering design (FEED) and detail engineering, procurement, and construction management assistance (EPcma). Aker Solutions also carried out the design (FEED) of the hull, based on its Tentech 975 design, and living quarters.

Samsung Heavy Industry in South Korea carried out the fabrication and installation of the hull and topside.

"Skarv is located at a water depth of 370 m. This is a typical place of operation for an FPSO," said Arne Bjørlo, project director for the Skarv project. "Such vessels are also well suited to a combined oil and gas field, like this one. An FPSO provides the necessary deck space for gas processing facilities, while at the same time allowing for storage of oil."

According to Aker Solutions, the Skarv development includes a number of innovations on previous concepts. "The modules used on the topside are bigger than usual, stretching across the entire width of the deck. This gives us a more effective building process, because each module can be finished separately with a lot less hook-up on assembly," says Bjørlo.

In March 2011, Fairmount Marine tugs, Fairmount Sherpa and Fairmount Summit, delivered the Skarv FPSO to the port in Stord, Norway. The trip took 92 days to tow the FPSO 15,300 nautical miles from Samsung Heavy shipyard in Okpo, South Korea. The Skarv FPSO was installed in April 2011 and the risers and templates will be connected in July 2011.

The Fairmount Summit tugged the Skarv FPSO from the Samsung Heavy shipyard in Okpo, South Korea, to the port of Stord, Norway.

The FPSO has a production capacity of 85 MMb/d and 670 MMcf/d (19 MMcm/d) and is 292 m long, 50.6 m wide and has a towing draught of 12.2 m with a deadweight of 128.000 tons. According to Pat McHugh, Skarv project director, the hull's structure and turret, along with the 15 mooring lines anchored to the seabed, were designed to resist three combined eventualities: a total loss of FPSO power, loss of use of positioning thrusters, and 100-year storm conditions, when the hull is not in its optimal position with respect to the prevailing weather conditions.

Contracts

BP began awarding contracts for the project even before it submitted a development plan in June 2007. In March 2006, BP awarded Kongsberg Maritime a contract for the integrated control systems for safety and automation to the FPSO. The initial contract required Kongsberg to conduct a FEED study with BP and Aker Kvaerner looking at the safety and automation systems. The results were part of the materials submitted for final approval by the Norwegian authorities in early 2007.

That same month, BP signed a letter of intent with Offshore Rig Services ASA for use of the OffRig Pioneer semisubmersible to drill on the Skarv/Idun fields. The contract was subject to approval of the PDO, and was valued between $250 and $500 million, depending on the length of the program, extensions, and options.

BP also awarded Bluewater a FEED study for the Turret Mooring System on the FPSO in 2006. Once the project was approved, Bluewater was awarded an engineering, procurement, and construction (EPC) contract for the Turret Mooring System.

After the Norwegian Authorities approved BP's development plan, the operator awarded VetcoGray a contract to supply subsea production system for the Skarv/Idun field. The $265 million contract includes engineering, construction and testing of 17 wellheads and tree systems and five subsea templates with integrated manifolds, as well as work-over, tie-in, and control systems. VetcoGray also supplied five years of service for the installation, with the option to renew the contract every five years.

In March 2008, VetcoGray then awarded ClampOn a contact for the supply of ClampOn DSP-06 Subsea Particle Monitors and ClampOn DSP Pig Subsea Detectors.

In 4Q 2007, BP awarded Subsea 7 two contracts -- flowline installation and general subsea construction works -- valued at $125 million and $140 million, respectively.

Subsea 7 engineered, fabricated and installed 42 km of single flowlines, which consist of 35 km 12" x 10" diameter clad production flowlines and 7 km 10 inch diameter carbon steel gas injection flowlines. Subsea 7 attached a Direct Electrical Heating (DEH) cable to the 13 km Idun flowline, which is a part of the 35 km production flowlines.

The general construction contract included survey activities, installation of subsea structures, control umbilicals, tie-in and pre-commissioning of all flowlines, risers, control umbilicals, and the gas export pipeline. Subsea 7 also took care of the tie-in spools and protection systems. The Seven Seas vessel carried out most of the work over the course of 300 days.
In December 2007, BP contracted SBM Offshore for the turnkey supply of an internal turret. SBM says the bogie-wheel type design turret is the world's largest turret in terms of mooring loads.

BP awarded the direct electrical heating (DEH) system for the Skarv subsea production pipeline in February 2009 to Nexans, which supplied all cables and dedicated subsea equipment for the DEH system. Nexans installed a 12 in. diameter production pipeline from one of the production wells at the field to the FPSO at Skarv. The distance between the well and vessel was about 13 km. At low production and shut down, a DEH-system will be used to prevent blockage of the pipe.

In 4Q 2009, BP started drilling 11 production wells using the Borgland Dolphin. The contract was extended in June 2010 to continue drilling through late April 2011. BP then arranged for the Polar Pioneer to continue drilling production wells on the Skarv field from April 2011 to May 2013.

Borgland Dolphin

Transocean's Polar Pioneer

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GSF Labrador Gets New Look

- GSF Labrador Gets New Look

Monday, June 20, 2011
Scheldepoort B.V.

Scheldepoort B.V. has been awarded a contract to convert the GSF Labrador into an accommodation unit. The project will commence when the rig arrives in Vlissingen at the end of June and will take approximately 4 months. Among other things the main scope of work is the removal of the complete drilling package from the rig, such as the derrick, cantilever, cement and mud tanks, all drilling equipment and redundant cabling and piping.

Scheldepoort will build a new accommodation block weighing in at 400 tons which will be placed on the deck. The current accommodation facilities will be completely refurnished and new life saving equipment will be installed. The rig will be fitted with sponsons in order to comply with stability regulations. In addition, a complete survey as well as a painting program will be executed. After delivery the accommodation rig will go into service in the coastal waters of Denmark.

The GSF Labrador is an independent leg cantilever jackup rated to work in water depths up to 300'. The CFEM T-2005-C designed unit entered service in 1983. Transocean cold stacked the unit in August 2010.

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Statoil Gets OK for Development of Visund South Fast Track

- Statoil Gets OK for Development of Visund South Fast Track

Friday, June 10, 2011
Statoil

The Norwegian Ministry of Petroleum and Energy has approved the plan for development and operation for Visund South. Production is planned to start up in the third quarter of 2012, and a subsea template is already on its way out to the field.

Visund South, which is located 10 kilometers from both the Gullfaks C and Visund A platforms in the North Sea, is a subsea development consisting of a template with four slots, from which three wells will be drilled and tied to Gullfaks C for processing.

"With the approval of the ministry, this first project in a series of fast-track developments is well underway, just four months after the PDO was submitted in January. This also means we're one step closer to our goal of halving the time taken from discovery to production," said Statoil senior vice president of Norwegian continental shelf field development Ivar Aasheim.

In the course of June everything will set for the installation of the seabed template, so that the project can commence drilling in August.

The template is the first one built that has its basis in a standard catalogue for subsea equipment, which was compiled in collaboration with the suppler industry. This catalogue will be used for the forthcoming fast-track developments.

Visund South will be installed on the field in conjunction with the Marulk development, which Statoil is carrying out now on behalf of operator Eni.

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