BGP Challenger completes seismic survey offshore Oman

In early 2011, the BGP Challenger successfully performed a 2D seismic survey in eastern offshore of Oman for Circle Oil.

The work area is located in Block 52, and close to the water areas of Somalia and Yemen, the piracy-prone areas. To make sure the project to be operated smoothly, BGP made rigorous security measures and emergency plan, and employed several security personnel from IBS, an international security company.

The acquisition program proved to be extremely challenging. The work area is covered by intensive fishing boats and nets, and islands. Even more frustrating for the BGP Challenger, was the unpredictable position and movement of the boats and nets. The experienced international crew on board coped well and has subsequently achieved excellent productivity.

The client is very impressed with both the productivity and the quality of data acquired by BGP. The BGP Challenger has demonstrated BGP's position as a leading geophysical contractor in the oil and gas industry.

Bowleven makes discovery offshore Cameroon

Bowleven has found additional pay in the Sapele well in the Douala Basin, offshore Cameroon.

The Sapele sidetrack encountered about 75 feet (23 meters) of net hydrocarbon-bearing pay in the Omicron objectives. The well reached a true vertical depth of 11,923 feet (3,634 meters), 14,708 feet (4,483 meters) measured depth, in a water depth of around 82 feet (25 meters) on the MLHP-5 block in the Etinde permit.

Its main objective was to appraise the Deep Omicron oil discovery encountered in the Sapele-1 exploratory well and to intersect the Upper and Lower Omicron objectives. The well intersected 4.5 feet (1.4 meters) of net pay overlying 79 feet (24 meters) of high quality reservoir which has been confirmed as water-bearing.

In the Lower Omicron, the well intersected a log-evaluated hydrocarbon interval that is interpreted to compromise high-quality thinly interbedded reservoir units. The provisional net pay is conservatively estimated at about 36 feet (11 meters) with an average porosity of 17%. Fluid samples acquired during logging activities indicate the presence of light oil/gas condensate as reservoir fluid.

In the Deep Omicron, the sidetrack intersected a log-evaluated hydrocarbon interval that is interpreted to compromise high-quality thinly interbedded reservoir units. Although less well developed at this location and with a corresponding lower net-to-gross ratio than the Sapele-1, the provisional net pay is estimated at about 33 feet (10 meters) with an average porosity of 19%.

In addition, initial interpretation indicates that certain pay intervals identified in the original Sapele-1 well have been eroded at the Sapele-1ST location. It was not possible to recover, believed due to borehole conditions, reservoir fluid samples and pressure data from Deep Omicron. Consequently, pressure communication could not be confirmed from logging activities. The GC tracer however indicates the presence of light, high GOR oil.

Bowleven stated that further evaluation is necessary to fully understand sand distribution within these tertiary fairways.

Reliance makes gas and condensate discovery in Cauvery-Palar region

Reliance Industries Limited (RIL) announced a rich gas and condensate discovery in the very first well drilled in the block CY-PR-DWN-2001/3(CYPR-D6) located in deepwater Cauvery-Palar basin. The Block with an area of about 8,600 sq km was awarded to RIL under the bidding round of NELP-III. RIL currently holds 100% participating interest in this block. This is one of the 23 exploration blocks where BP Exploration (Alpha)
Limited would have a 30% participating interest subject to the Government approval.

The discovery well CYPR-D6-SA1 is located in a water depth of 1,194 m and was drilled to a target depth of 3,81 5m and terminated in crystalline basement. The well encountered multiple hydrocarbon bearing clastic reservoirs in Late Cretaceous section. The presence of rich Gas and condensate has been confirmed by several tests including Modular Dynamic Testing (MDT) and Drill Stem Testing (DST). During DST the well produced 37 million standard cubic feet of gas and 1,100 barrels of condensate per day through a 56/64” choke size from the main zone that has a gross thickness of about 70m (230 ft). Another zone at a shallower level was established through MDT sampling where gas and condensate sample was collected. This discovery namely ’Dhirubhai-53’ has been notified to Government of India and Directorate General of Hydrocarbons.

Lukoil, Bashneft partner to develop R.Trebs and A.Titov fields

OAO LUKOIL and OAO ANK Bashneft (principal shareholder - Sistema JSFC), signed an agreement in Moscow to establish a joint venture and stipulate conditions for the development of two fields named after Roman Trebs and Anatoly Titov.

According to the agreement, ОАО LUKOIL will purchase 25.1% of an ANK Bashneft subsidiary, while the license and subsoil use rights for R.Trebs and A.Titov fields will be re-issued in favor of this subsidiary. In its turn, the joint venture will purchase from OAO LUKOIL 29 exploration wells located in the license area.

The parties also agreed to transport the oil from R.Trebs and A.Titov fields via the Varandey Oil Export Terminal owned by OAO LUKOIL to the Barents Sea coast, where the crude will be loaded into tankers.

The parties will consider supplying the produced associated petroleum gas to the energy centre of the Yuzhnoye-Khylchuyu field, which is developed by ООО Naryanmarneftegaz (a joint-venture of ОАО LUKOIL - 70% and ConocoPhillips - 30%). The associated petroleum gas will be used for generation of electric power to support the activities of the production units at R.Trebs and A.Titov fields.

In February of 2011, ОАО ANK Bashneft obtained a license for a federal-level site of subsurface resources, including R.Trebs and A.Titov oil fields, for a term of 25 years. The license area, 2,151 square kilometers in size, is located in the Nenets Autonomous District. The total recoverable oil reserves of commercial categories (С1+С2) located within the license areas of R.Trebs and A.Titov fields, as booked in the state balance sheet, reach 140.1 million tons.

European companies look to East as Libyan oil production halts

The International Energy Agency (IEA) has reported that between 500,000 bpd and 750,000 bpd of crude had been removed “at present” from the market. This represents less than 1% of global daily consumption.

The drop in production comes days after Libyan representatives accused Britain of damaging an oil pipeline in an air strike. Libyan rebels said that because of government attacks, such as the reported pipeline damage, had halted production of oil they hope to sell to finance their uprising. Reuters also reported on Friday that a lack of staff at ports and security concerns also contributed to the halt in production.

A number of European oil firms said they were looking to buy more crude from Russia, Iran and other Caspian countries and the IEA said there was no need for an immediate strategic stock release.

Libya is the world’s 12th-largest oil exporter, most of which flows to Europe. As of January 2011, according to IEA, Libya’s total proven oil reserves reached 46.4 billion bbl, with nearly 80% of its proven oil reserves are located in the Sirte basin. During Jan-Nov 2010, Libya exported over 1.5 million bpd during that time. Nearly 85% was directed to the European market: Italy (28%), France (15%) and Germany (10%).

Libya’s oil production, which was set at 1.6 million bpd during January 2011, fell by over 70% since the unrest began in February 2011.

Beach begins 3D seismic survey in Albania

Beach advises it has commenced a 3D seismic survey in offshore Albania which will cover 840 square kilometres in the Durresi Block

Beach Energy Limited and its joint venture partner San Leon Energy advise that they have commenced an 840 square kilometre 3D seismic survey in the Durresi Block, offshore Albania.

San Leon is Operator of the joint venture and, through a subsidiary, holds a 75% interest in the Durresi block with Beach holding the remaining 25%. Beach has agreed to pay 50% of the seismic program costs, rather than its 25% working interest requirement, in exchange for an option which, if exercised after review of the seismic data, will give Beach a 50% working interest in the licence moving forward.

Petroleum Geo-Physical AS has been contracted to carry out the survey using the M/V Ramform Vanguard seismic vessel. The 3D seismic program will evaluate a number of prospective targets in the Durresi Block, including the A4-1X discovery, in preparation for drilling in 2012.

The A4-1X gas condensate field was discovered in 1993 and is located 30 km off the southern coast of Albania. San Leon estimates the discovery to contain approximately 38 million barrels of circa 51 API condensate and 150 billion cubic feet of gas. The joint venture is also exploring potentially significant oil and gas targets adjacent to A4-1X.

The Durresi block is situated on the proven Apulian Margin, which extends from Italy into Albania.

Southern Albania contains a highly prolific petroleum system, including one of the largest onshore oil accumulations in Europe, the Patos-Marinza field, which is estimated to contain up to 5.7 billion barrels of original oil in place.

Global Industries awarded contract for deepwater 'Who Dat' project in GOM

Global Industries has been awarded a project from LLOG for the installation of a deepwater subsea development in the Gulf of Mexico. The project, which will take place in Blocks MC 503/547, is located in 3,000 FSW and is scheduled to begin in May.

The project includes the installation of 19 miles of 10-inch export oil pipeline, 17 miles of 14-inch gas pipeline, 10 miles of 6-inch insulated rigid flowlines, 6 flexible risers, nine jumpers and jumper tie-ins, three subsea manifolds, 6 PLETs, and other additional equipment.

Global will be utilizing four vessels for the execution of this project: the 485-foot DLB Hercules, a DP-2 equipped vessel with a crane capable of lifting 2,000 tons; the Global Orion, a DP-2 equipped multi-service vessel; the Olympic Challenger, a 347-foot, DP-2 multi-service subsea construction vessel, equipped with two 200hp Schilling UHD ROVs; and the Chickasaw, a 275-foot reel ship.

Commenting on the award, Global's CEO John B. Reed said, "We are extremely pleased and proud that LLOG Deepwater chose Global to handle this deepwater project. We continue our focus on execution excellence in increasingly challenging deepwater projects and look forward to assisting LLOG in achieving a successful outcome for the 'Who Dat' project."

Eni signs MoU for upstream cooperation in Ukraine

The parties agreed to collaborate on the study of initiatives in conventional and unconventional oil and gas on the basis of a mutual sharing of data, competencies and technology.

The Minister of Ecology and Natural Resources Mykola Zlochevskiy of Ukraine and Eni CEO Paolo Scaroni signed in Kiev a Memorandum of Understanding defining the framework for possible cooperation initiatives in exploration and production of hydrocarbons in Ukraine.

The parties agreed to collaborate on the study of initiatives in conventional and unconventional oil and gas on the basis of a mutual sharing of data, competencies and technology. They also arranged to set up a joint working team that will begin the evaluation of such opportunities.

During his visit to Kiev, Eni CEO Paolo Scaroni also had the opportunity to meet with the Minister of Energy and Coal Industry Yuriy Boyko to discuss possible cooperation in Ukrainian upstream sector.