JGC Bags Major EPC Contract for Bir Seba Field in Algeria

- JGC Bags Major EPC Contract for Bir Seba Field in Algeria

Wednesday, August 31, 2011
JGC Corp.

JGC and its subsidiary JGC Algeria Ltd. have been awarded the engineering, procurement and construction (EPC) services contract for the Bir Seba Field Development Project by Groupement Bir Seba, comprising Sonatrach, the Algerian state-owned oil and gas company, Petrovietnam Exploration Production Corporation (PVEP), and PTT Exploration and Production Algeria (PTTEP). Participating interests in Groupement Bir Seba are 25%, 40%, and 35%, respectively.

The Bir Seba Field Development Project, located in an inland and desert area 130 kilometers north east of Hassi Messaoud, calls for construction of a gathering system from 16 productive wells, crude oil processing facilities (20,000 bpd), and oil & gas export pipelines.

The lump-sum turnkey contract has a value of more than US $400 million and calls for Project completion in the first half of 2014.

With the award of the Bir Seba Field Development Project, JGC will be collaborating with JGC Algeria for the fourth time on an EPC project. Moreover, this Project will strengthen JGC Algeria's project execution capabilities.

JGC was awarded the contract for an oil refinery construction project in Arzew in 1969. Since then, the company has accumulated a long and impressive track record of hydrocarbon projects for Sonatrach and other foreign companies. JGC is currently executing three consecutive EPC projects in Algeria: gas and oil separation facilities in the Rhourde Nouss field (awarded in 2008); gas processing facilities in the Gassi Touil field (awarded in 2009); and gas compressors in the In Amenas field (awarded in 2011).

One of the goals set forth in JGC Group's "New Horizon 2015" five-year management plan is the strengthening and expansion of the Group's overseas subsidiaries. As a vastly experienced engineering and construction company in possession of the latest technologies, JGC, together with JGC Algeria, will continue to vigorously promote sales activities aimed at expanding its business opportunities in Algeria.

Oil & Gas Post

Promote Your Page Too
LINK

Statoil Spuds Well at Aldous Major North Structure

- Statoil Spuds Well at Aldous Major North Structure

Wednesday, August 24, 2011
Lundin Petroleum AB
by SubseaIQ

Lundin announced that drilling of appraisal/exploration well 16/2-9S on the Aldous Major North structure has commenced. The well is located in license PL265 in the Norwegian North Sea.

The Aldous Major North structure is believed to be the north-westerly continuation of the Aldous Major South discovery in PL265 and the Lundin Petroleum operated PL501 Avaldsnes discovery with primary target in sandstone of Upper Jurassic age.

The planned total depth is 2,241 meters below mean sea level. The well will be drilled with the drilling rig Transocean Leader and the duration is expected to be 40 days.

Lundin Petroleum holds 10 percent interest in PL265. Partners are Statoil Petroleum AS (operator) with 40 percent interest, Petoro (30 percent) and Detnorskeoljeselskap ASA (20 percent).

Oil & Gas Post

Promote Your Page Too
LINK

BP Readies for Major North Sea Projects

- BP Readies for Major North Sea Projects

Thursday, August 11, 2011
The Herald
by Mark Williamson

The head of BP's North Sea business said the oil and gas giant expects to approve three more huge projects off Scotland this year despite the Budget's tax hike.

Trevor Garlick said BP expects to proceed with projects involving an outlay of billions of dollars within months, subject to winning Government approval.

The plans represent a huge vote of confidence in the mature province by BP, which expects to recruit hundreds of skilled staff to keep pace with increased activity in the North Sea.

Last month the firm confirmed it would proceed with the pound(s) 3 billion redevelopment of the giant Schiehallion field west of Shetland with partners. The field contains much more oil than originally expected.

The projects that Mr. Garlick expects to confirm include a plan to develop a new area of the huge Clair field west of Shetland. This could be on the same scale as the Schiehallion project.

BP expects to invest around $1B (pound(s) 610MM) each in developments on the Kinnoull oil field and the Devenick gas field, in the Central and Northern North Sea respectively.

Mr. Garlick said the oil and gas firms partnering BP on each of the schemes have given their approval, although final agreements have not been written. He believes there could be plenty of money to be made in the North Sea for years.

"People are ill-informed when they talk about this area being over," said Mr. Garlick, noting that there could be billions of barrels oil equivalent still to be recovered.

Mr. Garlick said BP could make big returns by boosting recovery rates on its extensive acreage and making the most of the huge network of production facilities it has in the North Sea. His responsibilities include the Norwegian North Sea.

Advances in technology, combined with the increase in oil prices in the last two years, have transformed the economics of some fields.

Mr. Garlick discounted the effect of the recent fall in crude prices, saying BP made decisions based on long-term expectations.

"Most predict supply and demand will keep the price reasonably high," he said.

Noting that the tax regime can have a big influence on investment decisions, Mr. Garlick said the changes in North Sea taxes in the Budget were unhelpful.

The 12 percentage point increase in tax rates will reduce returns from all projects. "Some of the fields that we are looking at will be even more marginal, a couple look more difficult," he said. But BP has not scrapped any projects as a result of the tax increase.

Mr. Garlick said BP is investing at record rates in the North Sea. The company is recruiting to help it grow. It plans to hire around 300 skilled workers this year for the North Sea business and the same again in 2012.

Some 3500 BP and agency staff work on its North Sea operations currently. BP's proposals will boost the Government's claims that the tax increase is likely to have only a marginal impact on investment in the province.

The industry body Oil & Gas UK has warned that the hike could threaten billions of pounds of investment in the North Sea.

It said concessions granted by the Government last month, intended to encourage investment, did not go far enough.

However, Mr. Garlick, a board member of Oil and Gas UK, said the industry wants limited changes. He said Oil and Gas UK is lobbying for stability in the fiscal regime. It wants further allowances for difficult fields and predictability about costs of decommissioning assets.

Copyright (c) 2011 The Herald. via ProQuest Information and Learning Company; All Rights Reserved

Oil & Gas Post

Promote Your Page Too
LINK

Total Makes Major Gas Find in Barents Sea

- Total Makes Major Gas Find in Barents Sea

Monday, August 08, 2011
Norwegian Petroleum Directorate

Total EP Norge AS, operator of production license 535, has completed the drilling of wildcat well 7225/3-1. The well, which proved gas, was drilled in the Barents Sea, about 250 kilometers north of Melkoya.

The primary exploration target for the well was to prove petroleum in Triassic reservoir rocks (Snadd and Kobbe formations). The secondary exploration target was to prove petroleum in the Middle Jurassic (Sto formation), Triassic (Havert formation) and Permian (Bjarmeland formation).

Gas was proven both in intervals from the Jurassic and the Triassic: in the Kobbe formation with a 400-meter interval in rocks of varying reservoir quality, and in the Havert formation in two intervals of 80 and 90 meters, respectively, in poorly developed reservoir rocks. Gas was also encountered in the Sto and Snadd formations.

Preliminary estimates place the size of the discovery between 10 and 50 billion standard cubic meters (Sm3) of recoverable gas.

A successful formation test has been carried out in the upper part of the Kobbe formation. The maximum production rate was 180 000 Sm3 gas per flow day through a 44/64-inch nozzle. The gas contains only small amounts of CO2, H2S and N2. The results from the well will be included in the ongoing evaluation of "Norvarg" to establish the size and extent of the gas discoveries.

The well was drilled in 376 meters of water and is the first exploration well in production license 535. The license was awarded in the 20th licensing round in 2009.

The well was drilled to a vertical depth of 4150 meters below the sea surface, and was terminated in the Orn formation in Permian rocks. The well will now be permanently plugged and abandoned.

Well 7225/3-1 was drilled by West Phoenix, which will now go on to drill for Statoil Petroleum AS on the Troll field in the North Sea.

Oil & Gas Post

Promote Your Page Too
LINK

Subsea 7 Scores Major Contract for Gorgon Proj.

- Subsea 7 Scores Major Contract for Gorgon Proj.

Friday, July 29, 2011
Subsea 7

Subsea 7 has been awarded a contract valued at approximately $440 million from Chevron Australia Pty Ltd for the Chevron-operated Gorgon Project, offshore Western Australia.

The work scope includes installation and tie-in of heavy lift structures in the Gorgon and Jansz Fields, respectively 65km and 130km from Barrow Island, off the north-west coast of Western Australia, in water depths of up to 1,350m. The project scope includes engineering, spools fabrication, transportation, installation and pre-commissioning of the following:

• 20 subsea structures and foundations, each of up to 1,065 Te;
• 15 heavy spools, each of up to 190 Te;
• 48 tie-in spools;
• 39 electrical and 18 hydraulic flying leads; and
• 5 infield umbilicals and 2 associated distribution units.

Project management and engineering will commence immediately from Subsea 7's office in Perth, Australia, with offshore operations scheduled to commence in 2013 using Sapura 3000 and other construction vessels from our fleet.

Barry Mahon, Subsea 7's Senior Vice President, Asia Pacific & Middle East, said, "We are delighted to be awarded this pioneering contract, which complements the recent award of the Gorgon Umbilicals Project and provides an excellent opportunity to further build upon our strong local presence, our expertise in engineering, project management and installation and our long standing track record of
delivering significant subsea projects in Australia."

Jean Cahuzac, Subsea 7's Chief Executive Officer, said, "The Gorgon Project represents an important development for the subsea market in Australia and we are delighted to be awarded this prestigious contract by Chevron. This contract builds upon our world class assets and enhanced capabilities to apply advanced solutions to meet the increasingly challenging needs of our clients in their complex
subsea developments, reinforcing our position as a global leader in seabed to surface engineering, construction and services."

The Gorgon Project is one of the world's largest natural gas projects and the largest single-resource project in Australia's history. It is operated by Chevron and is a joint venture of the Australian subsidiaries of Chevron (approximately 47%), ExxonMobil (25%) and Shell (25%), Osaka Gas (1.25%), Tokyo Gas (1%) and Chubu Electric Power (0.417%).

Oil & Gas Post

Promote Your Page Too

Welltec Inks Major Contract with Petrobras

- Welltec Inks Major Contract with Petrobras

Thursday, July 14, 2011
Welltec

Welltec has signed a major contract in Brazil with Petrobras; contract value will be in excess of $15MM for a duration of up to 4 years. Welltec has been selected as the primary service provider for electric line tractor conveyance as well as for a wide portfolio of mechanical intervention services including milling, cleaning, plug setting and sliding sleeve manipulation. These services will allow Petrobras increased flexibility in planning and executing their land as well as their offshore and subsea activity with a higher degree of safety and certainty through the application of Welltec's unique, high precision, robotic technologies.

According to Jorgen Hallundbaek, Chief Executive Officer, Welltec, "We worked diligently with Petrobras to finalize this agreement and both parties are excited about beginning the work. Petrobras have often recognized our capabilities as the premier tractor conveyance company but have also come to realize the value our mechanical intervention services enabled on electric line can provide them. Using Welltec can dramatically reduce the footprint, the number of lifting operations and the rig up time at the well location versus conventional heavier intervention methods. This contract provides Welltec with a great platform to further its expansion in an important, rapidly expanding, deep water market."

Oil & Gas Post

Promote Your Page Too
LINK

CIS Awarded Major Contract by Weatherford Nigeria

- CIS Awarded Major Contract by Weatherford Nigeria

Monday, May 23, 2011
Conductor Installation Services Ltd.

Conductor Installation Services (CIS) has been awarded the largest contract in its history by Weatherford Nigeria. The USD multi-million dollar contract requires CIS to provide a range of conductor installation services in Nigeria on behalf of two major operators in the region.

Services will be carried out in conjunction with construction of a jetty, onshore and offshore platforms, and offshore stand-alone conductors. In addition to installing conductors, CIS will provide conductor make-up and cold-cutting services, and a variety of installation tooling equipment, including connection drive chasers and a range of directional drive shoes.

To carry out the conductor-driving operations, CIS will use two 150 kJ and two 90 kJ hydraulic hammers that are based permanently in Nigeria to support operations in the region. While the powerful 150 kJ hammer is designed to drive the larger conductors that measure up to 42 inches, the 90 kJ hammer is typically used to install smaller 20-inch to 36-inch conductors. CIS anticipates that it will be drive approximately 48 slots throughout the program, which is scheduled for completion in 2013.

Driving slots for construction of offshore barge

Already, CIS has commenced work on the first phase of the conductor installation program, which involves driving slots for construction of an offshore barge. This project requires CIS to install 36-inch conductors utilizing its 90 kJ hydraulic hammer spread. The contract is being supported by CIS from Port Harcourt, Nigeria and from its global headquarters in Great Yarmouth, England.

Oil & Gas Post

Promote Your Page Too

TWMA Wins Bakken Contract from Hess, Plans Major Expansion

TWMA Wins Bakken Contract from Hess, Plans Major Expansion

Wednesday, May 04, 2011
TWMA

Oil and gas environmental waste management contractor TWMA has been awarded a multi-million dollar contract by Hess Corporation to process, recover and recycle drilling wastes from their onshore drilling program in North Dakota, USA.

UK-headquartered TWMA will mobilise the market leading TCC RotoTruck processing equipment this month to process drilling wastes at multiple rig locations in the oil-rich Bakken shale, North Dakota.

The waste management agreement is a one-year contract with two one-year extension options.

The firm will create up to 100 jobs in the US over the next 12 months following the new deal with Hess and other recently secured agreements in the region, which includes its first contract in South America with another major operator

To accommodate expansion TWMA will move to a larger base in Houston with engineering facilities to support maintenance and service of equipment operating across the Americas.

The TCC RotoTruck is a pioneering technology solution designed to dispose of hydrocarbon-contaminated drilling wastes in a clean and environmentally friendly manner. It has revolutionized the handling of onshore drill cuttings worldwide.

The TCC RotoTruck is a compact, light and mobile version of TWMA's industry leading TCC RotoMill offshore unit, which is recognized by the UK Government Department of Energy & Climate Change (DECC) as "best available technology'' for treating drilling waste. The mobile truck-mounted unit separates hydrocarbon-contaminated drill cuttings into their constituent parts of water, solids and oil for reuse or recycling.

The technology treats drilling wastes at the source which reduces the volume of wastes and provides major safety and environmental benefits for operators. It also provides significant cost savings through simplified logistics and recovery of valuable drilling fluids through the process, which are then recycled. The technology has an impressive track record worldwide, particularly across the Americas where units have been operating since TWMA entered the US market in 2008. Game-changing technology such as the TCC RotoTruck is driving a step change in the way US operators choose to manage onshore drilling wastes.

US-based Ian Nicolson, vice president of business development Americas, said: "We are delighted to be awarded this contract by Hess to support their onshore drilling programs in North Dakota. There is a lot of interest in our TCC RotoTruck in the US especially since we are the only company in the world offering this type of fully integrated service to the region. We have a field proven track record of improving environmental performance for operators and clients."

He continued: "Our operational cost-advantage is achieved by maximizing the productivity of the equipment and reducing waste transportation costs. We estimate that the annual cost saving to our client for this project is a substantial value."

Greg Manry, onshore Americas drilling manager of Hess, said: "TWMA has unique technology that can help us continue to improve our performance and minimize our environmental footprint. We look forward to working with TWMA and building a long term working relationship with their team of waste management experts."

TWMA is leading the industry in designing, manufacturing and operating technologies that reduce the global environmental impact of onshore and offshore drilling operations. The firm's Americas base is in Houston, Texas. TWMA was formed in 2000 and it employs around 300 people at its bases in the UK, Norway, Americas, North Africa and Middle East.

Oil & Gas Post

Promote Your Page Too

Major Gas Find at Apache's Zola Well

Major Gas Find at Apache's Zola Well

Thursday, April 14, 2011
OMV

OMV announced Apache has discovered gas on the North West Shelf of Australia in the Zola-1 exploration well. This represents one of the largest gas discoveries by the company. Zola-1 is located in the WA-290-P exploration permit and is around 100 km from the Western Australian coast. The discovery well Zola-1 and the subsequently drilled sidetrack appraisal well Zola-1/ST-1 have confirmed the existence of sandstone layers with 130 m of net gas pay in an area south of the giant Gorgon gas field. New 3D seismic data will be acquired to further assess the potential of the discovery.

The sidetrack appraisal well to the original Zola-1 discovery well was drilled down to a total depth of 4,713 m (true vertical depth). An extensive wireline measurement and pressure testing program confirmed the presence of gas within several high quality sands of the target Triassic Mungaroo Formation. The well and sidetrack were drilled in a water depth of 285 m and encountered 130 m of net gas pay. Both will be plugged and abandoned as per plan.

In order to further assess the development potential of Zola, OMV and its partners in WA-290-P, Apache (operator), Santos, Nippon Oil Exploration and Tap Oil, have agreed to acquire a new high resolution 3D seismic survey over the permit, which is likely to commence mid 2011.

Jaap Huijskes, member of the OMV Executive Board responsible for Exploration and Production (E&P), stated, "Zola-1 is one of OMV's biggest gas discoveries and is the result of a successful and safely carried out exploration and appraisal drilling campaign. We are very
proud of OMV's exploration activities in Australia, which have culminated in this significant discovery on the North West Shelf. The next step will be to further appraise the gas discovery, including the acquisition of a new 3D seismic survey."
Balanced international E&P portfolio

In 2010, OMV's oil and gas production was 318,000 boe/d and its proven reserves were about 1.15 bn boe at year-end. In its core countries in Romania and Austria, OMV is focusing on reducing the natural decline and on enhancing the recovery rates from mature fields. Future growth is expected to come via new field developments, exploration and acquisitions internationally. OMV intends to grow the existing portfolio to and beyond critical mass, on a production per country basis, and is looking to find new growth areas within the Caspian, Middle East and North Africa regions where OMV can leverage on its existing E&P exposure.

WA-290-P Joint Venture

* OMV Australia: 20%
* Apache (operator): 30.25%
* Santos: 24.75%
* Nippon Oil Exploration: 15%
* Tap Oil: 10%