Eni begins development on Kitan oil field

Eni has begun development of the Kitan oil field, which includes three wells connecting to the Glas Dowr FPSO. First production is expected to commence in the second half of 2011. The Kitan field is situated approximately 100 miles (161 kilometers) off the East

Timor coast and 300 miles (483 kilometers) off the Australian coast, and lies in waters measuring 1,000 feet (305 meters). Kitan is located in the permit 06-105 of the Joint Petroleum Development Area, which is jointly administered by Timor-Leste and Australia.

Eni serves as the operator of the field and holds a 40% working interest; Inpex holds 35%; and Talisman Resources holds the remaining 25%.

Baker Hughes, Saudi Aramco launch 'Superbase'

Longtime supplier and oil-field support company Baker Hughes recently launched its $35 million "Superbase" facility in Dhahran.
The new center features labs, offices, repair and maintenance shops and offsite monitoring facilities.

Speaking at the inauguration on April 4, senior vice president of Exploration and Producing Amin H. Nasser noted that Baker Hughes has had a relationship with Saudi Aramco going back more than 70 years, and the company provided the drill bits used for Dammam No. 7, often called Prosperity Well, the first well to produce crude oil in commercial quantities in 1938.

"Since the drilling of Dammam No. 7, our needs for advanced technical services have increased vastly. Baker has responded by adding a wide range of new services and products including drilling fluids, drilling technologies, well logging, completion and production services, artificial lift, chemical technologies and reservoir consulting," Nasser said.

"A number of Baker technologies have been 'game changers' for us. Let me mention one of these: Baker Completion Equalizers.
"This tool gives our engineers the ability to control pressure drawdown in our extended-reach, multilateral wells by adjusting flow rates along the length of the laterals," Nasser said.

"During the last eight years, more than 470 wells have been completed with Baker Equalizers, allowing our engineers to manage our reservoirs proactively, maximizing both production and hydrocarbon recovery."

The Texas-based company has set a goal that 75 percent of the 475 persons employed at the center will be Saudi nationals.

"For the first time all Baker Hughes product lines are housed in the same facility in Saudi Arabia under one management team, which will drive consistent standards to improve service quality and reliability," Baker Hughes CEO Chad C. Deaton told Arab News.

"Our investments in Saudi Arabia and the rest of the Middle East have positioned us to provide superior operations support in the region," Deaton said.

"The Dhahran base also underscores our commitment to creating new jobs and empowering the local economy in line with the vision of the Kingdom's leaders."

Deaton also told the newspaper about future expansion plans at the King Fahd University of Petroleum and Minerals Dhahran Techno Valley.

"The Dhahran Technology Center will integrate the competencies of engineers and scientists from the Saudi oil and gas industry, King Fahd University of Petroleum and Minerals and Baker Hughes to develop application-specific technologies for complex reservoirs, including the tight sand plays of Saudi Arabia," Deaton said.

GOM rig disaster response continues

BP is accelerating offshore oil recovery and continuing well control efforts in Mississippi Canyon Block 252 (MC252) following improvements in weather conditions in the Gulf of Mexico yesterday. Transocean also released a statement provided updates on the situation.

"The safety of the people working offshore is our top priority and the improved weather has created better conditions for our response," said BP Group Chief Executive Tony Hayward. "This, combined with the light, thin oil we are dealing with has further increased our confidence that we can tackle this spill offshore."

BP, operating with the U.S. Coast Guard and other agencies, has launched its comprehensive, pre-approved oil spill response plan following the April 22 sinking of the Transocean Deepwater Horizon drilling rig 130 miles south-east of New Orleans.

According to National Oceanic and Atmospheric Administration (NOAA) experts participating in the spill response, the spill is "very thin" and consists of "97 per cent sheen."

In Houma, Louisiana where the field operations response is being coordinated, more than 1,000 personnel on and offshore are deployed to coordinate the oil spill response.
BP, as lease operator of MC252, also continues to work below the surface on Transocean’s subsea equipment using remotely operated vehicles to monitor the Macondo/MC252 exploration well, and is working to activate the blow-out preventer.

The Transocean drilling rig Development Driller III will arrive on location today to drill the first of two relief wells to permanently secure the well. A second drilling rig, Transocean’s Discoverer Enterprise, is en route. According to Transocean, the Deepwater Horizon is insured for total loss coverage and for wreck removal, to the extent that removal can be carried out and is required. The total insured value of the rig is $560 million.

RIGZONE - Seadrill Takes Delivery of West Orion Semisub

RIGZONE - Seadrill Takes Delivery of West Orion Semisub

Petrobras finds light oil in new Tupi well

Petróleo Brasileiro S.A. - Petrobras announced that it finalized the drilling of another well in the Tupi area which confirms the potential of the pre-salt reservoirs in that area.

The new well, 3-BRSA-795-RJS (3-RJS-666), and informally known as Tupi OW, is located in the area of the Tupi Evaluation Plan, at a depth of 2,131 meters below the water line, nearly 270 km of the coast of Rio de Janeiro, and 12.5 km northeast of discovery well 1-RJS-628 (1-BRSA-369), known as Tupi.

The discovery was proved by means of light oil samplings (approximately 25º API) collected via a cable test from reservoirs located at depths greater than those of previously drilled wells and was notified to the National Petroleum Agency (ANP) today. The result reinforces the estimations of the potential of 5 to 8 billion barrels of recoverable light oil and natural gas in the Tupi pre-salt area.

The Consortium, formed by Petrobras (65% - Operator), BG Group (25%), and Galp (10%), to explore block BM-S-11, where Tupi is located, will carry on with the activities and investments called for in the Evaluation Plan which was approved by the ANP and foresees the drilling of other wells until the declaration of commerciality, which is expected to be made in December 2010.

Statoil makes new discovery in North Sea

Statoil discovered oil and gas in the 6608/10-14 S well on the Fossekall prospect in PL 128. Drilled by Diamond Offshore's Ocean Vanguard semisub, the well reached a total vertical depth of 9,019 feet (2,749 meters), ending in the Are formation in the lower Jurassic.

The proved recoverable resources are provisionally estimated at 37 and 63 MMbbl, and associated and free gas is estimated at 1 to 3 billion standard cubic meters. Statoil and partners are considering tying the discovery back to existing Norne infrastructures. Oil production from Norne is processed and stored aboard a floating production vessel, with gas output piped to the Norwegian mainland via the Norne and Asgard pipelines.

The Fossekall prospect lies in 1,155 feet (352 meters) of water in the Norwegian sector of the North Sea, which is operated by Statoil, holding a 63.95% interest.

Eni starts production in Adriatic Sea

Eni commenced production from the Annamaria B gas platform, which is flowing at a rate of 800,000 cm/d, but is expected to reach about 1.2 MMcm/d. The confirmed and estimated reserves of the field comprise 10 Bcm.

Gas is transported via an underwater pipeline to the Fano treatment plant, approximately 43 miles (70 kilometers) away, and is fed into the national distribution network. The Annamaria field lies in 197 feet (60 meters) of water and extends between Italy and Croatia, roughly 37 miles (60 kilometers) from the coast. Annamaria is the first cross-border field producing in the Adriatic Sea, and is considered the most important gas field to come onstream since 1998.

A twin platform, Annamaria A, is also located on the field and is producing roughly 800,000 cm/d. Eni is the operator of the field, owning a 90% interest.

Halliburton to acquire Boots & Coots

Halliburton has entered into a definitive merger agreement to acquire all of the outstanding stock of Boots & Coots in a stock and cash transaction valued around $240 million.

Following completion of the transaction, a new product service line within Halliburton will be created to include Halliburton's existing coiled tubing and hydraulic workover operations and Boots & Coots’ intervention services and pressure control business. Boots & Coots' management will be retained to lead Halliburton's Boots & Coots product service line with operating results reported through Halliburton's Completion and Production reporting segment. Halliburton expects the acquisition to be accretive in the first full year of operation.

Under the merger agreement, Boots & Coots stockholders will receive $3.00 per share for each share of Boots & Coots common stock they hold, comprised of $1.73 in cash and $1.27 in Halliburton common stock, subject to election, proration features and an exchange ratio based on Halliburton's five-day average share price prior to closing as further described in the merger agreement.

The Boards of Directors of both Halliburton and Boots & Coots have approved the transaction, which is expected to close in the summer of 2010, subject to regulatory approvals, approval by Boots & Coots' stockholders and other conditions.

BP awards drilling contracts worth $500 million in Iraq

British supermajor BP announced that it awarded contracts worth around $500 million to rehabilitate the giant Rumaila oil field in the south of Iraq.
BP selected oilfield services provider Schlumberger, through a partnership with the Iraqi Drilling Co., Petrochina subsidiary Daqing Drilling and U.S. drilling company Weatherford to provide work on rigs at Rumaila.

"We are confident that all of the companies will bring the operational and safety standards which will help us achieve our production targets in Iraq for 2010 and beyond," said Michael Townshend, president of BP Iraq.

BP said it plans to drill 70 wells in Rumaila in 2010. The company touts the giant field near the southern port city of Basra as one of the largest in the world. Current production reaches just more than 1 million barrels of oil per day.

Anadarko reports Wahoo appraisal well results

Anadarko reported the results of the Wahoo-1 drill-stem test in the pre-salt Wahoo field located on block BM-C-30 in the deepwater Campos Basin, offshore Brazil. The Wahoo-1 well flowed at a sustained test rate of approximately 7,500 barrels per day of 31-degree API gravity crude oil and approximately 4 million cubic feet per day of associated natural gas. The flow rate was limited by equipment and facilities.

Once the work is complete on the second drill-stem test, Anadarko plans to mobilize the drillship approximately 5 miles south of the original Wahoo discovery to drill the Wahoo South exploration well, which also is located on block BM-C-30.

Anadarko, through a wholly owned subsidiary, holds a 30% working interest and is the operator of BM-C-30. Devon Energy Corp. holds a 25% working interest, IBV Brasil Petróleo Limitada, a wholly owned subsidiary of Bharat PetroResources Limited and Videocon Industries, holds a 25% working interest and SK Energy Co., Ltd. holds the remaining 20% working interest.

Shell starts production at ultra-deepwater Perdido

Shell produced its first oil and natural gas from the Perdido Development, the world’s deepest offshore drilling and production facility. Located in an isolated, ultra-deep sector of the Gulf of Mexico, Perdido marks a new era in innovation and safely unlocks domestic sources of energy for US consumers.

The facility sits in approximately 8,000 feet of water, which is roughly equivalent to six Empire State Buildings stacked one atop the other, and will access reservoirs deep beneath the ocean floor. Perdido smashes the world water depth record for an offshore platform by more than 50%.

“Perdido is an impressive project in a strong Gulf of Mexico portfolio that continues to grow,” said Marvin Odum, Upstream Americas Director, Shell Energy Resources Company. “Perdido presented technical challenges unlike we’ve ever seen in the Gulf of Mexico. Shell’s team used its expertise to open this new frontier and confront complex reservoir characteristics, extreme marine conditions, and record water depth pressures. Perdido demonstrates what companies like Shell can do when US federal lands and waters are opened to responsible energy exploration and production.”

From the first lease purchase to today’s production, the Perdido Development required an industry workforce of approximately 12,000 people, including employees and contractors. Shell designed, and operates, the Perdido host spar, a floating production facility, which is jointly owned by Shell (35%), Chevron (37.5%), and BP (27.5%).

The facility will produce from the Great White, Silvertip, and Tobago offshore fields, requiring perhaps as many as 35 wells over the life of the fields. Tobago sits in more than 2,900 metres (9,600 feet) of water and surpasses the world depth record for a completed subsea well. In addition, all Perdido subsea fields will utilise a unique an innovative subsea separation and boosting system to enable oil and natural gas recovery.

The Perdido Development will ramp up to annual peak production of more than 100,000 barrels of oil equivalent per day.

Brigham sets production record in Williston Basin

Brigham Exploration announced updated production performance on the Sorenson 29-32 #1H. Subsequent to drilling out frac plugs, the Sorenson produced at an early 24 hour peak flow back rate of 5,133 (4,335 barrels of oil and 4.79 MMcf) barrels of oil equivalent per day, which, based on publicly reported data available to the Company, represents an apparent record production rate for the more than 2,700 horizontal wells in the Williston Basin.

The Sorenson is located in Brigham's Ross project area in Mountrail County, North Dakota and is a long lateral completed with 27 frac stages, perf and plug and ceramic proppant. Brigham maintains an approximate 95% working interest in the Sorenson.

Based on this updated production performance, Brigham has completed five long lateral high frac stage wells in Ross with an average early 24 hour peak flow back rate of approximately 2,980 barrels of oil equivalent per day.

Schlumberger buys Geoservices for $1 billion

Schlumberger has acquired Geoservices, a privately owned French oilfield services company specialized in mud logging, slickline and production surveillance operations. The total value of the transaction, including net debt, is $1.70 billion.

Geoservices, founded in 1958, employs approximately 5,000 people active in more than 50 countries worldwide. The company is the leading mud-logging company, and has invested heavily in the development of new technology for exploration and appraisal well activities, particularly in the emerging deepwater market.

"The addition of mud logging technology to the Schlumberger portfolio is an important step in the development of higher-performance drilling systems," commented Andrew Gould, Chairman and CEO, Schlumberger Limited. "The combination of Schlumberger real-time downhole formation sampling measurements with Geoservices' drilling mud analysis will help customers better identify and react to drilling hazards, while the combination of mud logging with Schlumberger formation evaluation measurements will bring more complete understanding of rock lithology and fluid content."

Mud logging extracts information from the drilling mud and drilling process while drilling and provides data for both formation evaluation and drilling efficiency. In formation evaluation, mud logging complements wireline logging and logging-while-drilling measurements. In drilling efficiency, mud logging information provides insight into the dynamic state of the well and allows drilling mud weight properties to be optimized.

In addition to Geoservices' mud-logging technology and expertise, Geoservices' footprint, expertise and technologies in well intervention and field surveillance also complement existing Schlumberger activities.