Rosneft, ExxonMobil partner to develop Black Sea resources

Rosneft and ExxonMobil have executed a Strategic Cooperation Agreement under which the companies plan to undertake joint exploration and development of hydrocarbon resources in Russia, the United States and other countries throughout the world, and commence technology and expertise sharing activities.

“Today's agreement with Rosneft builds on our 15-year successful relationship in the Sakhalin-1 project. Our technology, innovation and project execution capabilities will complement Rosneft’s strengths and experience, especially in the area of understanding the future of Russian shelf development.”

The agreement, signed by Rosneft President Eduard Khudainatov and ExxonMobil Development Company President Neil Duffin in the presence of Russian Prime Minister Vladimir Putin, includes approximately US $3.2 billion to be spent funding exploration of East Prinovozemelskiy Blocks 1, 2 and 3 in the Kara Sea and the Tuapse License Block in the Black Sea, which are among the most promising and least explored offshore areas globally, with high potential for liquids and gas.

In the course of these projects, the companies will use global best practices to develop state-of-the-art safety and environmental protection systems.

The agreement also provides Rosneft with an opportunity to gain equity interest in a number of ExxonMobil’s exploration opportunities in North America, including deep-water Gulf of Mexico and tight oil fields in Texas (USA), as well as additional opportunities in other countries. The companies have also agreed to conduct a joint study of developing tight oil resources in Western Siberia.

The companies will create an Arctic Research and Design Center for Offshore Developments in St. Petersburg, which will be staffed by Rosneft and ExxonMobil employees. The center will use proprietary ExxonMobil and Rosneft technology and will develop new technology to support the joint Arctic projects, including drilling, production and ice-class drilling platforms, as well as other Rosneft projects.

“We have a clear vision for Rosneft’s strategic direction – building world-class expertise in offshore business and enhancing oil recovery,” said Rosneft president Eduard Khudainatov, following the signing ceremony. “The partnership between Rosneft with its unique resource base, and the largest and one of the most highly capitalized companies in the world reflects our commitment to increasing capitalization of our business through application of best-in-class technology, innovative approach to business management, and enhancement of our staff potential. This venture comes as a result of many years of cooperation with ExxonMobil and brings Rosneft into large scale world-class projects, turning the company into a global energy leader."

ExxonMobil Development Company President Neil Duffin said: "Today's agreement with Rosneft builds on our 15-year successful relationship in the Sakhalin-1 project. Our technology, innovation and project execution capabilities will complement Rosneft’s strengths and experience, especially in the area of understanding the future of Russian shelf development.”

Rex Tillerson, chairman and chief executive officer of Exxon Mobil Corporation (NYSE:XOM), who attended the ceremony, said ExxonMobil will benefit Russian energy development by working closely with Rosneft. “This large-scale partnership represents a significant strategic step by both companies,” said Tillerson. “This agreement takes our relationship to a new level and will create substantial value for both companies.”

The agreement provides for constructive dialogue with the Russian Federation government concerning creation of a fiscal regime based on global best practices.

Additionally Rosneft and ExxonMobil will implement a program of staff exchanges of technical and management employees which will help strengthen the relationships between the companies and provide valuable career development opportunities for personnel of both companies.

Gulf Keystone announces Shaikan-2 Triassic discovery

Gulf Keystone announced that it has made a new Triassic discovery with the Shaikan-2 appraisal well, drilled approximately nine km to the south-east of the Shaikan-1 discovery well in the Kurdistan Region of Iraq.

Gulf Keystone has completed drilling of the Shaikan-2 Appraisal Well to a TD (total depth) of 3,300 meters in the middle Triassic, following which a flow test has been performed in the newly discovered Kurre Chine C zone over a 80 meter interval (3,195m to 3,275m). This new zone is highly pressured and correlates with the high pressure zone penetrated at the bottom of Shaikan-1.

The Kurre Chine C flow test in Shaikan-2 has achieved variable flow rates up to a maximum recorded rate of 4,450 barrels of 36 degree API oil per day with associated gas of 813,000 scf per day through a 36/64" choke.

After success with this first test, the company plans to continue with its programme of Shaikan-2 testing in the Triassic and Jurassic.

The company has a 75 percent working interest in the Shaikan block and is partnered with the MOL subsidiary, Kalegran Ltd., and Texas Keystone Inc. which have the remaining 20 and 5 percent working interests respectively.

Pemex confirms new light crude discovery

Mexican state oil company Pemex E&P successfully completed trial production in the exploratory well Kinbe-1 (Ruta del Sol), confirming the existence of a new deposit of light crude(37°API), located 87 km northwest of Ciudad del Carmen, in a water depth of 22 m.

This new discovery increases oil potential of the area, which consists of Tsimin, Xux, May fields as part of the Pemex’s light crude marine project.

The well began drilling in May 2010 and ended on August 9 of this year. Average initial production was 5,600 bpd and 9 MMcfd of gas. The producing interval is in the Kimmeridgian formation of the Upper Jurassic.

Halliburton completes first horizontal shale gas well in Argentina for Apache

Halliburton has executed the first horizontal, multistage hydraulic fracture shale gas completion in Argentina’s Neuquén Basin for Apache. Halliburton provided all major well construction and completion services for the project, resulting in the successful delivery of South America’s first horizontal and deepest shale gas well.

As global development of unconventional resources materialize, Halliburton is in the process of pre-positioning Unconventional Reservoir Solutions Teams around the world. These teams draw upon the extensive knowledge and experience garnered from Halliburton’s unrivalled position in North America's unconventional reservoir development. Halliburton, chosen by Apache because of its Buenos Aires-based Unconventional Reservoir Solutions Team’s expertise and understanding of the specific complexities of the Los Molles shale formation, placed 10 hydraulic fracture stages in the horizontal section at a depth of over 4,400 meters.

"Halliburton’s ability to apply its expertise globally will assist operators to efficiently develop frontier unconventional reservoirs," said Roberto Munoz, vice president, Latin America Region, Halliburton. "With the third largest estimated unconventional reserves after China and the United States, Argentina’s shale gas potential will benefit greatly from the application of these technologies."

Brazil to hold off on new leasing round

Brazil is unlikely to hold its 11th oil bidding round until early 2012, Mines and Energy Minister Edison Lobao said, according to news reports.

Brazil had hoped to hold the round later this year but President Dilma Rousseff is still reviewing the exploration and production blocks that are expected to be put up for auction, Reuters reported.

Lobao said that the auction could occur in January or February of next year but that none of the highly sought after concession blocks in the subsalt area off Brazil's southeastern coast will be included in the new auction.

New frontier exploratory blocks, including in the Amazon region, are expected to be auctioned, however, as the government tries to open up new reserves beyond the current focus of exploration and production in the subsalt area.

Brazil suspended the auctions of the most promising deep-water blocks in 2007, shortly after state oil company Petrobras discovered massive deposits of light oil and gas in its Santos and Campos basins.

Discoverer India to head to US Gulf

Reliance Industries, India's oil & gas super major, is planning to move drillship Discoverer India from India to US Gulf of Mexico. Reliance got the drillship in a contract with Transocean in December last year at the day rate of $508,000.

The latest fleet report of Transocean has stated that the company will remain in contract with Reliance through February 2013 before returning of drillship to India in the following month. It is also noted in the report that Reliance can extend its contract in US Gulf for further six months. But it is not clear from Transocean that rig would be given to another operator or not. Guy Cantwell spokesperson of Transocean said that the Discoverer India has the capacity to drill down to a depth of 40,000 feet and it can also operate in the depth of 12,000 feet of water.

San Leon’s Liesa completes seismic acquisition in Poland

San Leon Energy's Polish subsidiary Liesa has completed its 168 sq km 3D seismic acquisition program over the Nowa Sol license in the Southern Permian basin of Poland. The survey was acquired by Acoustic Geophysical Services from Hungary. Permitting and land access agreements were managed by TDE Service Polska. Completion of the survey marks the first time that foreign contractors have carried out a seismic acquisition program in Poland.

The survey was designed to image the conventional oil and gas potential of the proven Permian sediments in the Nowa Sol area as well as to look at the deeper potential of the Carboniferous source rocks.

The survey will be processed by two independent processing companies, one in the US and one in Poland. Final processed results are expected in September followed by detailed interpretation by the company, with plans to commence a two to three well drilling campaign by the end of 2011.

Oisin Fanning Chairman of San Leon Energy commented, "The completion of the Nowa Sol 3D is another step forward in our drilling plans for Poland. The lower risk oil potential of the area is an important part of our short term strategy to organically grow San Leon in the short term while we continue to explore for the significant longer term gas resources in our portfolio. The safe and successful completion of the Nowa Sol 3D is further evidence of San Leon's operational capabilities. We believe that the Carboniferous section below the proven Permian sediments, an approximate 880,000-acre license position, also offers the potential to be a large unconventional gas play in Europe and we look forward to drilling this later in the year."

TGS begins new multi client 3D survey in Faroe Shetland basin

TGS has commenced a new multi-client 3D survey in the Faroe-Shetland basin. The survey covers 2,500 sq km west of the British Isles over quads 6004, 204 and 205 and is acquired in partnership with PGS.

The new seismic data is being acquired by the PGS Ramform Viking towing 12 X 6,000 m with 75 m separation and utilizes PGS' GeoStreamer Technology. Data acquisition will continue through Q3 2011 and the vessel will return in 2012 to complete the survey. Data processing will be performed by both TGS and PGS. "This is TGS' first investment in a 3D multi-client seismic program west of the British Isles, located in an area with a number of discoveries and further undiscovered hydrocarbon potential," stated Kjell Trommestad, SVP Europe & Russia for TGS.

Jubilant begins drilling campaign in India Kharsang field

Jubilant announced the spudding on July 28, 2011 of KPL-A, the first development well of the Phase-III drilling campaign in the Kharsang field, Arunachal Pradesh, India. The well is located in the northern area of the field and is an infill well targeting the shallow C-50 and D-00 producing Girujan sand layers. The well, which will be deviated by 272 metres towards the northeast, will be drilled to a total depth of around 800 metres TVD, is expected to take three weeks to drill and will cost approximately USD 1.75 million, of which USD 0.44 million will be payable by Jubilant.

The well will test the Upper Girujan C-50 and D-00 sand layers that are currently producing across 10 existing wells ranging from 25 to 140 bopd. The consortium expects to encounter around 35 meters of net reservoir sand.

The well is part of the seven well Phase-III drilling campaign in Kharsang which is planned to be completed by February 2012. On completion of this well, the rig will move to the next development well of the Phase-III drilling campaign.

GeoEnpro Petroleum Ltd., a joint venture of Geopetrol and Jubilant Enpro (a member of the wider Jubilant Bhartia Group), is the operator of Kharsang Field. Jubilant holds a 25% interest in the block through its subsidiary, Jubilant Energy (Kharsang) Pvt Ltd. The other members of the consortium are Oil India Ltd and Geopetrol.

Eni makes new discovery in Kutei basin, offshore Indonesia

Eni has made a new hydrocarbon discovery offshore Indonesia. As the operator, Eni has successfully drilled an exploration well on the Jangkrik North East structure, located in the Muara Bakau block Kutei basin, east of Kalimantan, 15 km from the Jangkrik field.

The Jangkrik North East discovery represents a significant success in Eni's exploration efforts in the Kutei Basin and further confirms the high potential of its portfolio in the area. The Jangkrik North East NFW is located approximately 70 km from the coast of Indonesia and has been drilled to 3633 m at a water depth of 460 m.

The well contains more than 60 m of net gas pay in excellent quality reservoir sands of Pliocene and Miocene age.

During the production test, the well produced high quality gas at a tubing constrained rate of 30.6 MMscfd.

Eni, through its Indonesian subsidiary, is the operator of Muara Bakau PSC with a 55% interest. GDF SUEZ holds the remaining 45% interest in the project.

Overall, in Indonesia, Eni holds working interests in thirteen blocks, and operates seven of them. The offshore activities are located in the Tarakan and Kutei Basins, offshore Kalimantan, north of Sumatra West Timor and West Papua. In the

Kutei basin, Eni is also participating in the development of the significant gas reserves located in the Ganal and Rapak blocks.

Other activities are located in the Mahakam River Delta, East Kalimantan, where Eni has an equity production of approximately 20,000 boed and has recently been awarded an interest in Sanga Sanga CBM, a new coal-bed methane production sharing contract through its operated joint venture affiliate VICO CBM Limited (Eni 50%, BP 50%). The Sanga Sanga project would be the first LNG plant in the world to be supplied by CBM.

Gazprom, Petronas sign agreement for 4 blocks offshore Cuba

Russia’s Gazprom Neft announced it has signed a product-sharing contract with Malaysia’s Petronas and Cuba’s Cubapetroleo for four blocks in the Gulf of Mexico offshore Cuba.

Whereas Petronas previously held a 100% stake in the blocks, following the signing, Petronas will retain 70% while Gazprom Neft will acquire 30%. The original farm-out agreement was signed in October 2010.

"This partnership with Petronas will help Gazprom Neft to enforce its competence in the sphere of deep-water development and expand its expertise in projects outside of Russia," Reuters quoted Alexander Dyukov, chairman of Gazprom Neft management board as saying.

Apart from Cuba, Gazprom Neft participates in international exploration and production projects in Iraq, Equatorial Guinea, Venezuela and-through its Serbian affiliate company-in Angola, Romania and Hungary