Statoil On Track with Mariner Project

- Statoil On Track with Mariner Project

The concept chosen for the Mariner heavy oil project on the UK continental shelf includes a production, drilling and quarter (PDQ) platform based on a steel jacket, with a floating storage unit (FSU).

Statoil expects a final investment decision in late 2012 and first oil in late 2016.

The Bressay heavy oil project on the UK continental shelf is also progressing according to plan, one year behind Mariner, to ensure transfer of learning and synergies.

The Mariner and Bressay projects were presented at a press briefing by Statoil's executive vice president for Development and Production International, Peter Mellbye, at SPE Offshore Europe 2011 in Aberdeen.

"After a period of uncertainty, I am proud to be able to say that we are back on track with the landmark Mariner and Bressay developments. To be able to once again move these projects forward is important for Statoil and its partners, as well as for the UK and for the Aberdeen region," said Mellbye.

The ultra-heavy oil projects will require pioneering technology in order to be developed. Since its discovery thirty years ago, the Mariner field has been subject to a number of development studies by different operators.

Statoil is the first company ready to put forward a development concept that will fully address the complexities of this field, in particular related to reservoir management, recovery rates and project execution.

Statoil has extensive heavy oil experience, including the successful development of the Grane field in Norway and the Peregrino field in Brazil.

Because of the low well flow rates and early water break-through there is a need for many wells, artificial lift, and a process designed to handle large liquid rates and oil-water emulsions.

A total of 145 reservoir targets for production or injection are planned for Mariner. While the number of well slots at the platforms is less, this will be solved through use of multi-branch technology, sidetracks and reuse of slots.

The Mariner and Bressay projects will entail a gross investment of roughly GBP 6 billion. Statoil estimates lasting employment of at least 700 individuals, mainly locals, directly involved in its operations, and the establishment of a new operations centre in Aberdeen. The indirect employment of numerous others in the supply and service sectors comes in addition to this.

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RWE Dea's UK Fields Breagh and Clipper South on Track

- RWE Dea's UK Fields Breagh and Clipper South on Track

Wednesday, August 31, 2011
RWE Dea AG

RWE Dea UK's field developments Breagh and Clipper South are both progressing on schedule. On a visit to Heerema's fabrication yard in Zwijndrecht (Netherlands) Wednesday, RWE Dea CEO Thomas Rappuhn emphasized the high significance of both projects: "The proven reserves play an important role to significantly increase RWE Dea's gas production in the North Sea."

"Breagh for example is one of the largest natural gas discoveries in the Southern North Sea and our target is to bring field developments on stream quickly," added RWE Dea UK Managing Director René Pawel.

Gross investments are GBP 430 million (Breagh, Phase 1) and GBP 240 million (Clipper South). RWE Dea holds 70% interest in the Breagh gas field as operator (Sterling Resources UK 30%). With a stake of 50% in Clipper South, RWE Dea is operator with Fairfield Energy and Bayerngas each holding a 25% stake.

Pawel said, "We remain on course to achieve production from the Breagh field less than three years after we acquired operatorship of the Breagh license and expect first gas in the second half of 2012 and from Clipper South in the first half of 2012."

Both platforms are being constructed by the Heerema Fabrication Group. The Breagh platform consists of a jacket approximately 85 meters tall with a total weight of some 4,000 tonnes and topside of approximately 1,400 tonnes. The topsides have been moved out of the shed and are ready for sail-away from Heerema's fabrication yard mid September. The jacket is on schedule for load out early September. The Clipper South platform with topsides weighing 1,900 tonnes has accommodation for 40 persons and sailed away for offshore on Thursday 25th and was successfully installed on Saturday, August 27 with standalone overnight manning on the day of installation – testimony to the very high level of completion on departure from the yard. The Clipper South platform is in a water depth of approximately 23 meters, and a 12" pipeline will connect to the ConocoPhilips operated LOGGS complex for onwards transportation of gas to the Theddlethorpe terminal in the UK.

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. Around 100 kilometers of 20" pipeline have been successfully installed offshore. The platform will be installed by Heerema Marine Contractors.

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, planned to receive project sanction in late 2011, is expected to include additional wells in the east of the field likely to be drilled from a further Breagh platform tied back to Alpha.

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Prep Work Back On Track at Imperial's SWDF

- Prep Work Back On Track at Imperial's SWDF

Tuesday, August 02, 2011
Imperial Resources Inc.

Imperial Resources announced that preparation work for bringing its Green Tide Salt Water Disposal Facility ("SWDF") back on line is on schedule.

• Green Tide has contracted a drilling consultant with over 30 years relevant experience to advise on drilling and completion operations;
• Appropriate contractors are being engaged for mud logging, directional work, casing the well, verifying good cement bonds, and all other necessary experts are scheduled to be on hand ready for rig arrival;
• Electrical power to the facility should be restored during the course of this week at which point the computer system that manages the surface plant will be tested and upgraded. During this period the pumps will be de-pickled and a number of the transfer pump actuators are likely to be upgraded. This and any other necessary work will be carried out in parallel with the wellbore deepening to ensure that the facility is brought back on line as soon as is practically possible;
• A marketing plan is being developed and sales staff identified so that Green Tide may commence disposal sales operations as soon as drilling operations on the well are completed.

The drilling rig is expected to arrive over the course of the next three weeks after release from prior commitments elsewhere.

The aim is to deepen the Green Tide SWDF well from 3,100 to 8,500 feet to establish the well around 400 feet to 600 feet into the Ellenburger formation. Casing will then be cemented between about 7,500 and 8,500 feet and the well drilled ahead to ideally create about 2,000 feet of open hole exposure in the Ellenburger so as to maximize disposal capacity. Subject to success, commercial operations will commence immediately targeting full disposal capacity of 15,000 barrels per day as quickly as possible. At full capacity, the Company believes the Green Tide SWDF has the potential to generate significant cash flow at relatively low operating costs.

The Green Tide SWDF

The Green Tide SWDF is conveniently located for the disposal of large volumes of salt water generated from essential fracture stimulation operations on Barnett Shale gas wells. There are approximately 6,000 such Barnett wells within 20 miles of the SWDF.

Imperial plans to reopen Green Tide to dispose of up to 15,000 barrels of salt water a day. The Company's acquisition and development of the low run-time Green Tide assets and disposal permit is expected to save in excess of $5,000,000, compared to a new build cost.

Green Tide is one of two key projects identified as transformational for Imperial (the other being the Company's Oklahoma project).

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Keppel On Track to Deliver Saipem Rig

- Keppel On Track to Deliver Saipem Rig

Monday, August 01, 2011
Keppel Corp. Ltd.

Keppel FELS is on track to deliver Scarabeo 9, a 6th generation ultra-deepwater semisubmersible drilling rig, to Saipem S.p.A (Saipem) on time and with no lost time incidents.

A significant part of Keppel FELS' workscope on Scarabeo 9 involved the completion and commissioning of marine and drilling systems onboard.

The rig was named by Lady Sponsor, Mrs. Anna Tatka, spouse of Mr. Pietro Franco Tali, CEO of Saipem.

Speaking at the ceremony, Mr. Tali said, "With Keppel's proven track record, we were confident of receiving a rig of the highest quality delivered on time and in a safe manner. This sixth generation rig will be an important addition to our fleet as we expand our foothold to be one of the best balanced turnkey operators in the offshore and marine industry."

The Frigstad D90 semisubmersible rig is equipped with a Dynamic Positioning 3 system and will be capable of operating in water depths of up to 3,600 meters.

Mr. Tong Chong Heong, CEO of Keppel Offshore & Marine, added, "In completing this complex rig, we leveraged our in-house engineering expertise, proven project management and execution capabilities to ensure quick turnaround times in providing value added solutions.

"We thank Saipem for their trust in us and are glad to be able to demonstrate our capabilities with this safe and on time delivery. This extends to all our projects for Saipem, including the completion of Castorone at Keppel Shipyard. We look forward to supporting Saipem as they grow their fleet of high specification products for different parts of the world."

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Tap Oil's Manora Development On Track

- Tap Oil's Manora Development On Track

Tuesday, July 26, 2011
Tap Oil Ltd.

Tap Oil provided the following update on its Manora Oil Development in the Gulf of Thailand.

Tap's Managing Director/CEO Troy Hayden said, "The Manora development is a highly significant project for Tap. It is expected to more than triple our existing reserves toward the end of 2011 and deliver production and revenue in early 2014.

While much of our current focus in Thailand is on the Manora development, we also see significant exploration potential in the Kra, Hua-Hin and Sattakut basins. These exploration opportunities are being actively pursued with substantial resources committed over the next six to 18 months to define and drill them."

Highlights

• Potential to more than triple Tap's total company reserves by the end of 2011
• Final Investment Decision (FID) for Manora expected second quarter of 2012
• Manora field on schedule for first production in early 2014
• Active exploration program targeting Manora style prospects in the Kra, Hua-Hin and Sattakut basins

Manora Development Timeline

Since the acquisition, Tap has met regularly with Pearl to monitor progress on the development of the Manora field. Pearl has now set a development schedule for the field with key milestones as follows:

• 2011 Third Quarter - Field Development Plan (FDP) completed
• 2011 Fourth Quarter - Fourth Quarter Concept Selection finalized
  • - Award Front End Engineering and Design (FEED)
  • - Tap expects to book reserves
• 2012 Second Quarter - Final Investment Decision
• 2012 Third Quarter - Award Engineering Procurement and Construction (EPC) contract
• 2014 First Quarter - First oil

It is envisaged that construction will commence in 2012 and initial development drilling will occur in 2013. This schedule remains in line with our acquisition assumptions.

Manora Development Concept

The venture has been rigorous in its screening of development options and work continues with the aim of finalizing the concept selection in the fourth quarter of 2011. Tap believes that the likely development concept will be a Central Production and Processing Complex with a Floating Storage and Offtake vessel (FSO).

Following concept selection, the venture will award the contract for FEED and submit the remaining environmental and other regulatory approvals.

Upon completion of the FEED and receipt of key regulatory approvals, the joint venture will make the FID for the field. This is expected to be in the second quarter of 2012.

As the project moves toward FID, the venture will tender the contracts to build the facilities. The construction contracts are expected to be awarded at the same time as the FID is made.

Under this timetable, first production is expected in early 2014.

Reserves and Production

Under Pearl's current development timetable, Tap believes it will be in position to make an initial booking of reserves in late 2011 following concept selection and completion of the Field Development Plan. No further drilling is required to prove reserves.

The reservoirs at Manora are expected to require water flooding to maximize oil recovery. While Tap still carries the 24 mmbbl gross resource (7.2 mmbbls net to Tap) as the likely ultimately recoverable number, it is expected that in late 2011 Tap will be able to book 2P reserves of 20 mmbbls gross (6 mmbbls net to Tap) with the additional 4 mmbbls gross (1.2 mmbbls net to Tap) to be booked once actual field production confirms the effect of waterflood.

It is estimated that production from the field will commence in early 2014 and reach a peak rate of approximately 15,000 bbls per day.

Fiscal Terms

The three concessions that Tap has interests in are governed by the Thailand III Fiscal Regime that was introduced in 1989. The Thailand III Fiscal Regime involves a royalty, special remuneratory benefit (SRB) linked to drilling and income tax at 50%. This all combines to provide the concessionaire with a net take of approximately 15-20% of gross revenues over the life of the project.

Exploration

The joint venture has been focusing its exploration effort on delineating a number of prospects in G1/48 and G3/48 in order to mount a drilling campaign in the second half of 2012.

The venture's exploration effort across these concessions includes the acquisition, processing and interpretation of new seismic, reprocessing of existing seismic and regional geological and geophysical studies.

The Kra 3D seismic survey was acquired in 2007 and interpretation of this data led to the Manora discovery. Tap's interpretation of this data has generated four prospects. Pearl's current interpretation is similar to that of Tap. Deeper objectives have not yet been interpreted.

The venture is currently reprocessing the Kra 3D data using pre stack depth migration (PSDM).

he Kinnaree 3D seismic survey in G1/48 was acquired in early 2011. The fast-track processed data has been received and the interpretation is underway.

Recently the joint venture agreed to two new 3D seismic surveys in G1/48 and G3/48 – Sida and Sattakut. These surveys are aimed at locating similar prospects to Manora and additional prospects in the overlying fluvial section. Pearl is currently finalizing the tendering process and acquisition is expected to commence within the next two months. Acquisition of these surveys will take approximately three months.

The new Sida 3D seismic survey will be conducted over the Hua-Hin basin, adjacent to the existing Hua-Hin survey. The survey will be up to 700 km2 and will straddle G3/48 and G1/48. The larger Sattakut 3D seismic survey will be up to 1,800 km2 and will be over the Sattakut basin and will also straddle G3/48 and G1/48.

In G6/48, Tap is currently assessing the merits of acquiring 3D seismic over the concession. G6/48 contains the Rossukon discovery which is in fluvial sands as is typical for this part of the Gulf. Although Rossukon flowed oil at over 800 bbls per day during test, on current mapping it is not considered large enough for a stand-alone development. Entry into the Year 6 concession period at the end of 2011 involves committing to a well in 2012.

Under the terms of all three of the concessions, 50% of the acreage must be relinquished at the end of concession Year 4. The joint venture submitted its relinquishment plans to the regulator in early 2011. Under the plan, the joint venture retains all of the acreage over the prospective basins. The permit areas outlined in the maps above are prior to any relinquishments.

Concession Partners

• Pearl Energy (Operator) 60%
• Northern Gulf Petroleum Pte Ltd 40% (Tap is the 75% owner of Northern Gulf Petroleum)

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Keppel On Track To Complete FPSO Aseng

- Keppel On Track To Complete FPSO Aseng

Monday, July 18, 2011
Keppel Shipyard

Keppel Shipyard Ltd's (Keppel Shipyard) conversion of the FPSO Aseng is on track to complete. The FPSO will be operated by Aseng Production Company Ltd, a joint venture by SBM Offshore and Compania Nacional de Petroleo de Guinea Ecuatorial (GEPetrol), the national oil company of Equatorial Guinea.

Chartered by Noble Energy for the development of the Aseng field in offshore Equatorial Guinea, FPSO Aseng is capable of processing 80,000 barrels of oil per day and storing approximately 1.7 million barrels of oil.

HE Marcelino Owono Edu, Minister of Mines, Industry and Energy of Equatorial Guinea, witnessed the naming of the FPSO by his daughter, Señorita Doña Ayingono Owono Nchama, at Keppel Shipyard today.

Mr Tony Mace, Managing Director and CEO of SBM Offshore, commented, "We are honoured to be able to contribute to the growth of Equatorial Guinea's oil and gas industry. Through the strong teamwork between SBM and Keppel Shipyard, we add yet another quality vessel to our fleet of FPSOs."

Mr Tong Chong Heong, CEO of Keppel Offshore & Marine added, "Keppel is committed to provide value-added solutions and reliable services to our customers. With safety as our top priority, we have exercised a focused approach to ensure that the needs and expectations of FPSO Aseng's stakeholders are met. Working closely with our partners on this project, we are taking strides towards a quality delivery."

Keppel's work scope on FPSO Aseng includes refurbishment and life extension works, upgrading the accommodation facilities, installing and integrating the topsides as well as fabricating and integrating the internal turret.

Since 2000, Keppel and SBM have completed 13 FPSO/FSO conversion projects together. FPSO Aseng is the second FPSO project which Keppel Shipyard and SBM are delivering for Equatorial Guinea.

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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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Keppel On Track to Deliver P-56 FPU to Petrobras

- Keppel On Track to Deliver P-56 FPU to Petrobras

Monday, June 06, 2011
Keppel Corp. Ltd.

The consortium of Keppel Offshore & Marine Ltd (Keppel O&M) and Technip Engenharia S/A is on track to deliver the P-56 Floating Production Unit (FPU) to Petrobras Netherlands BV (PNBV), safely, on time and within budget.

The first FPU completely built in Brazil, P-56 achieved 9 million man-hours without lost time incidents. With a displacement of 50,000 tonnes, this massive FPU, one of the world's largest, measures 110 meters in length and width, and 125 meters in height.

Brazilian President HE Dilma Rouseff witnessed the christening of P-56 by congresswoman Luiza Erundina at Keppel FELS Brasil's BrasFELS shipyard in Angra dos Reis. Also present were the Governor of Rio de Janeiro, Mr Sergio Cabral, Petrobras' President Mr Jose Sergio Gabrielli, Keppel's management and over 8,000
Brazilian shipyard workers.

Mr Choo Chiau Beng, Chairman of Keppel O&M and non-resident Ambassador of Singapore to Brazil said, "P-56 is a shining example of the technology expertise and execution capabilities built up by BrasFELS and Brazil's offshore and marine industry. This achievement has been built up incrementally through previous projects such as the P-52 and P-51 FPUs. Today, we have turned vision into reality in establishing Brazil as a center for world class shipbuilding, with the first 100% Brazilian-built rig.

"We are proud to be able to support Brazil and Petrobras as they grow their fleet of highly capable production units. Through our near market, near customer strategy, Keppel remains committed to Brazil and her comprehensive oil and gas development program to increase output from Brazilian oil fields with significant local content."

When completed, P-56 will be capable of processing and treating 170,000 barrels of liquids and 100,000 barrels of 16º API oil, 6 million cubic meters of natural gas, and of injecting some 280,000 barrels of water in the reservoir. P-56 will be positioned at depths of 1,670 meters off the Marlim Sul field in the Campos basin.

P-56 is another significant milestone in a series of firsts achieved by Keppel in Brazil since its BrasFELS yard was established in 2000. Notably, BrasFELS carried out the first ever in-country FPSO conversion of P-48 and delivered the P-52, the first project for which Petrobras imposed a minimum 60% local content requirement.

This was followed by the delivery of P-51 in 2008 and the Floating Production Storage and Offloading vessel (FPSO), P-57, in October 2010. P-51, P-52 and P-57 were done in collaboration with Keppel's yards in Singapore and the synergy enabled significant technological and knowledge transfers to Brazil.

Mr. Choo added, "We have a longstanding partnership with Brazil having delivered 19 major projects since 1994 for the country, five of which were completed in BrasFELS. Over the years, we have been equipping BrasFELS and training our workers to take on more sophisticated jobs. We are committed to continue deepening our roots here and be the choice provider of solutions to the Brazilian market.

"One of the most comprehensive offshore and marine facility in Latin America, BrasFELS has an established track record that Petrobras and our customers can rely on to provide local content and support Brazil's requirements as a net oil exporter."

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Colombia Aims to Put Caribbean Oil Exploration Back On Track

- Colombia Aims to Put Caribbean Oil Exploration Back On Track

Wednesday, June 01, 2011
Dow Jones Newswires
by Dan Molinski

Colombia hopes it can resolve before the end of the year environmental issues that have delayed an offshore oil exploration plan in the Caribbean Sea by Spanish oil major Repsol and Colombia's state-controlled Ecopetrol.

Armando Zamora, the head of Colombia's oil licensing agency ANH, told reporters Wednesday that it and the two oil companies hope to reach an agreement with community leaders on the Colombia-owned island of San Andres that would allow for exploration contracts to be signed for the Cayos 1 and Cayos 5 blocks.

Nonetheless, the Colombian government official warned that without final consent from the San Andres island community--which is concerned about the effects on coral reefs and the fishing community--oil exploration in the area west of Nicaragua might prove impossible.

"We're aspiring for a deal to be reached during this year," Zamora said. "But both we the government and the companies don't want to force anything on the island communities. If in the end the communities say 'no,' then it's going to be very difficult" to continue with exploration plans.

The two oil blocks were awarded to Repsol and Ecopetrol last year in a drilling round aimed at boosting production in Colombia's already-booming oil sector. Crude oil output in Colombia reached a record 903,000 barrels a day in April and the government hopes production will reach 1 million barrels a day by the end of 2011.

Colombia has been hoping the waters it owns near San Andres, far from mainland Colombia, could allow it to become an offshore oil driller for the first time. Drilling near mainland Colombia has so far proven to be more gas-prone than oil-prone, although exploration efforts continue in several areas, including the Tayrona block held jointly by Repsol, Ecopetrol and Brazil's state-run company, Petrbras.

An official at Repsol in Bogota confirmed Wednesday that it hasn't yet signed a contract for either the Cayos 1 block or the Cayos 5 block, and he said that until that were to happen the company can't make any comments.

The oil blocks are located in the Seaflower Biosphere Reserve, a marine protected area that reportedly contains 76% of Colombia's coral reefs and is a nesting site for sea turtles. For more than a decade the reserve has been part of the United Nation's network of biosphere reserves.

The plan to begin exploration in the two oil blocks was suspended earlier this year after local groups filed a lawsuit against ANH for awarding the blocks within a protected area before consulting first with fishermen and others in the area that could be affected.

Zamora said the ANH hopes to convince the communities over the coming months that oil exploration would be done in an environmentally friendly fashion, and that the projects could bring jobs and improve the economies for the island of San Andres and Old Providence, a smaller island that is part of the same archipelago and is also owned by Colombia.

The Colombian official said it is too early to estimate how much oil might exist in the area.

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

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