EXPLORATION  

Caurus well consented
Consent was given for a new Barents Sea exploration well on a prospect called Caurus which is to be drilled by StatoilHydro.
Norway’s Petroleum Safety Authority gave a green light for the 7222/11-1 well which is due to be drilled by the Polar Pioneer semi-submersible in PL228, northwest of the Nucula discover drilled earlier this year and south of the Obesum discovery and south west of the Ververis find.

Leopard partner sought
Efforts were being made to secure another company willing to share the cost of drilling a new well on the UK Northern North Sea Leopard prospect with prospect partners hoping drilling can start before the end of the year
Operated by Elixir Petroleum, Leopard lies in UK block 211/18b in licence P1381 which was awarded in the UK’s 23rd Licensing Round in December 2005.

Elixir + DNO mull Mulle
Updating progress on UK North Sea appraisal drilling plans Elixir Petroleum has indicated its intention to drill a new well on the Northern North Sea Mulle prospect which could contain between 4 and 36 m bbl of oil.
Mulle, in block 211/22b, is close to the Causeway field.

Dry Gabon well
Drilling on a shallow-water permit area offshore Gabon has concluded with a dry hole.
Operator Sterling Resources said the ICM-1 well was drilled to a depth of 1,640 m (5,379 ft) but was found to be water–bearing after hitting the target reservoir section in the well, which was drilled in the Iris Marin permit area offshore Gabon. The hole is now being plugged and abandoned.

FIELD DEVELOPMENT

Four FPSOs for Angola
Project partners led by BP have been given a green light to go ahead with development of huge oil resources in block 31 offshore Angola with up to four FPSOs and project spend in the region of US $10 Bn.
Block 31 operator BP said it got the go-ahead from Angola’s Sonangol, the block concessionaire, to proceed with a phased development programme of deepwater oil fields using multiple FPSOs. BP and its partners have drilled 15 finds in block 31 and they are to be tied together in a series of hub developments with extensive subsea infrastructure, providing a huge boost to the offshore industry.
A BP spokesman told Offshore247.com that up to four floating production units will be required as part of the process, with a capex in the region of US $10 Bn.

Standard set for block 31
StatoilHydro, confirming plans announced by BP for a programme of block 31 developments offshore Angola, said the first FPSO will be based on a converted hull and the project will use as much standardisation as possible for subsequent production ships.

Modec bags block 31 FPSO
Houston-based Modec was just one of the contractors to secure a deal for BP’s big block 31 developments offshore Angola after being awarded a contract for the FPSO for first four fields in the phased block 31 programme to tap the Plutao, Saturno, Venus and Marte fields.

…And Technip in West African frame
Technip was awarded a major frame agreement for subsea pipeline installation work offshore West Africa, just after BP announced a major development plans for Angola’s block 31.
France’s Technip said it received an award for engineering, equipment procurement, construction and installation of subsea flowlines, under a framework agreement with an undisclosed client.

BritSats begins pumping
ConocoPhillips in the UK started pumping production from its BritSats development which taps the Brodgar and Callanish fields.
Four wells are being used to tap oil from Callanish and two on Brodgar which is producing gas condensate.
Both fields have been brought online via a subsea manifold which is tied back to a new bridge-linked platform hooked up to the main Britannia installation in the UK Central North Sea. The two fields are controlled remotely.

Endeavour readies for Rubie II
Endeavour Energy has filed an environmental impact statement covering the Rubie II development in the UK sector of the North Sea.
Planning for the project involves a further production well to develop the Rubie field in block 15/28b covered by licence P226, which is to be tied back to the existing Renee subsea manifold via an 8-inch subsea flowline and from there to the Hess-operated AH001 semi-submersible floating production facility 22 km (13.75 miles) distant.
Project scheduling indicates drilling of the new development well will commence in the fourth quarter this year, probably November, and will take 60 days to drill, test and complete, with the Transocean’s Sedco 704 semi-submersible, followed by subsea installation and commissioning work in the second quarter 2009.

Rev rescheduled
First oil from the Norwegian Rev field development will be delayed by months says operator Talisman Energy due to a delay in completing final tie-in work.
Rev was scheduled to come onstream by August this year as a tieback to the UK Armada platform.
But safety critical maintenance work at Armada – operated by BG - is taking priority over the final completion of the Rev development. Also an accommodation support vessel currently at Armada has to depart early next month and will not return until the fourth quarter, so that Rev work cannot be completed until then, delaying first oil from Rev until early 2009.

Debut for Vilje
StatoilHydro started pumping production from its Vilje field tied in to the new Marathon-operated Alvheim FPSO offshore Norway.
Vilje, north of the Heimdal area which is estimated to contain around 52 m bbl of oil went into production from two subsea templates and two wells tied back to the Alvheim floating production facility via a 19 km (11.8 miles) export line from a Palaeocene Heimdal turbidite sandstone reservoir 2,150 m (7,052 ft) subsea.
Field production is expected to reach a plateau of 35,000 b/d this year.

Malampaya oil rim FPSO fixed
Oslo-listed Nexus Floating Production secured a letter of intent to supply an FPSO for operations off the Philippines. Singapore-based Nexus said it is to lease its Nexus 1 FPSO to Burgundy Global Exploration Corporation (BGEC) over a seven-year period for the Camago Malampaya Oil Leg project off the Philippines.
Nexus says its FPSO lease deal is worth US $800 m and first oil under the contract is scheduled for the first quarter 2010.


Weatherbulletin

Low pressures toward North Sea
Low pressures will continue to move in a path across North Sea from Monday, while almost no low pressure activity over Barents Sea.
First part of week we expect a a westerly to northwesterly wind field in North Sea behind lows which have moved over North Sea and further east. While in Norwegian Sea a high pressure rigde contribute to a northeasterly wind field. Mainly breeze in both North Sea and Norwegian Sea. Barents Sea will mainly get a cool northwesterly to northeasterly wind field east of this ridge.
Second half of week a low will probably move over North Sea from southwest, and behind this low it might be relative strong northerly wind Friday/Saturday. Wind up to near gale possbile both in North Sea and Norwegian Sea, significant waves may reach 4-5 m in North Sea. In the end of week a temporarily high pressure ridge can lead to calm conditions.
A low in Arctic heading eastward toward Novaya Zemlya may temporarily give slightly increasing west to northwest wind around Thursday in Barents Sea, while else weak low pressure field will dominate the rest of week with calm wind conditions.

COMPANY NEWS

StatoilHydro sees income 36% income surge
Higher production and higher commodity prices helped StatoilHydro lift its financial figures with net income up 36% for the second quarter this year to NOK 18.9 Bn (US $3.68 Bn) from NOK 13.9 Bn last year.
And for the first half of the year the Norwegian oil and gas giant has reported net income up 46% to NOK 35 Bn from NOK 23.9 Bn in the first half last year.
“The second quarter result is primarily influenced by high oil and gas prices,” stated StatoilHydro chief executive Helge Lund. “Our record earnings are also coming as a result of operational focus contributing to high production.”

BP profits up 6%.
BP’s second quarter results published today show that the Anglo-American oil giant made US $9.465 Bn for the period and a huge $16.916 Bn for the first half this year.
BP reported on its usual replacement cost profit basis a $6.853 Bn profit for the three months to June - up 6% compared with a year ago and $13.4431 Bn replacement cost profit for the first half of the year – up 23% on last year.

Shell income shoots up 33%
Shell has seen its income shoot up 33% and earning rise 5% for the second quarter this year boosted like other energy companies by higher oil and gas prices.
Anglo-Dutch Shell reported income for the quarter at US $11.556 Bn, a rise of 33% from $8.667 Bn last year.
Earnings for the second quarter were $7.902 Bn, up 5% from $7.556 Bn last year, using Shell’s usual current cost of supplies accounting base.
Turning to the six months to June, Shell reported income at $20.639 Bn, up 29% from $15.948 Bn last year, and CCS earnings for the half-year were $15.678 Bn, up 8% from $14.488 Bn in the first half of 2007.

Eni up by 9.6% for half year
Italy’s ENI saw net profit rise 4.4% for the second quarter and 9.6% for the first half this year.
Adjusted net profit for the second quarter hit €2.32 Bn, (US $3.62 Bn), up 4.4% from €2.22 Bn in the same period last year.
For the first half this year, Eni reported adjusted net profit of €5.37 Bn, up 9.6% on the €4.90 Bn figure from a year ago.

Total reports 29% boost
Total saw second quarter adjusted net income boosted by 29% to hit €3.7 Bn (US $5.8 Bn) and for the half year the figure reached €7 Bn ($10.7 Bn).
All Total’s results information appears to be positive with upstream production up 1.3% to hit 2.353 m boe/d and first production achieved from the Moho Bilondo redevelopment offshore Congo and the Jura field in the UK North Sea achieved during the quarter.

Talisman takes 23% income tumble
North Sea operator Talisman Energy saw net income fall 23% from last year to hit Cdn. $426 m for the second quarter, due largely to assets gains on sales last year.
Talisman reported its Cdn. $426 m net income for the second quarter compared with $550 m for the same period in 2007.
For the half year, the company’s net income also fell to $892 m from $1,070 Bn in the six months to June 2007.

Aker Solutions profit hits US $133.9 m
Norwegian contract giant Aker Solutions saw net profit for the second quarter hit NOK 687 m (US 133.9m) on operating revenue of NOK 15.073 Bn ($2.94 Bn).
For the first half this year, Aker reported net profit at NOK 1.354 Bn ($263.9 m), on operating revenue of NOK 29.290 Bn ($5.70 Bn).
During the quarter the group’s order book was boosted by NOK 14 Bn, taking the total value of orders to NOK 53.4 Bn.

ROC set to merge
North Sea licence holder ROC Oil which holds minority interests in the UK Blane and Enoch oil developments operated by Talisman Energy looked set to seal a tie-up with Anzon Energy in a shareholders meeting scheduled for September.
 
Isle of Grain causes CBI pain
Cost overruns for two UK LNG plants hit Chicago Bridge and Iron as the company reported a US $140.5 m loss on net income for the second quarter this year.
CBI had previously indicated it was making a pre-tax $317 m charge for forecast cost overruns on the UK LNG developments at the Isle of Grain in Kent and South Hook LNG in West Wales.

CONTRACTS

Millions more from block 31
BP’s big-spending plans for block 31 offshore Angola have meant a huge bonanza for the offshore contracting industry with Holland’s Heerema Marine Contractors and Subsea 7 announcing new deals as a result of the US $10 Bn West African investment.
Heerema landed its largest ever contract as a result of the Angola work with a deal to provide installation services for risers and production flowlines on the first phase of the project which will exploit the Plutao, Saturno Venus and Marte fields.
“This US $ 1 Bn contract – the largest contract in HMC’s history- covers engineering flowlines, service flow lines as well as vertical riser systems,” Heerema declared.

Aker snares block 31 scope
Aker Solutions bagged a deal to supply steel tube umbilicals for the first phase of the BP-operated block 31 developments offshore Angola.
Aker said it has been awarded another frame agreement – by BP which covers delivery of umbilicals for the first phase of the block 31 project covering the PSVM fields.

Petrofac picked for fifth Egypt gas plant
UK and Middle-east based engineering and facilities group Petrofac landed a deal to develop a fifth gas train in Egypt for Khalda Petroleum under an engineering and procurement services deal which is expected to become a lump-sum EPC contract for the fifth train at the Salam gas plant in Egypt’s Western Desert region.

BW bags Peregrino mooring deal
Norway-listed BW Offshore secured a letter of intent from Maersk Contractors for installation of an FPSO for use offshore Brazil on the Peregrino project.
BW is responsible for the FPSO mooring system, and a submerged turret production and mooring (STP) buoy.

Dive site secures Subsea 7 training
Scotland’s Underwater Centre in Fort William extended the depth of its relationship with offshore contractor Subsea 7 by providing training for 11 of its inspection engineers in commercial diving and ROV use.
The team of 11 went through an intensive training programme to equip them for subsea diving and ROV work at The Underwater Centre at Loch Linnhe, marking a hat-trick of training deals secured by the centre from Subsea 7.

IRM for Brazil
Fugro landed a US $137 m deal to provide IRM work for Petrobras over the next three years in the deepwater Campos and Santos basins.

CONFERENCES

Gas talk for breakfast
Industry association Oil and Gas UK is holding its next industry seminar in early September to discuss the European gas market. The late summer seminar will examine how the gas market in Britain is evolving amid changes in the sources of supply and operating circumstances. The event takes places at Exchange House in Primrose Street, London, on 9 September starting at 8am.

FINANCIAL

Less for Shtokman, more for Yamal
Russia’s Gazprom has reportedly cut this year’s budget for the Barents Sea Shtokman development by around 10% to trim the spending to 16.2 Bn Russian roubles (627.1 m) from the original figure of 16.2 Bn roubles.
According to Russian news agency Interfax citing a company memorandum and reported by Reuters, the budget has been cut while more spending has been authorized for development of fields in the Yamal Peninsula in northwest Siberia, where Gazprom is planning to boost spending by 10 Bn to 105 Bn roubles which includes a railway and export pipeline.

Ithaca offering to raise $75 million
Ithaca Energy looked set to raised $75 m to help finance its purchase of the Beatrice oil field from Talisman Energy and the Stella licence acquisition in the UK North Sea.
Ithaca said its new equity financing will be based on the issue of 50 million new common shares priced at US $1.50 per share to raise Cdn. $75 m with the offering due to close on 11 August.

Providence banks with bonds
Irish and London–listed Providence Resources was back on the cash trail seeking to raise more funds for its forthcoming drilling programme offshore southern Ireland.
Providence launched a placing of convertible bonds to raise €42 m for funding its planned drilling after the Arctic II semi-submersible arrived offshore Ireland to commence drilling offshore southern Ireland in the Celtic Sea on the Hook Head and Dunmore oil discoveries for the company, as well as for Gulf of Mexico projects.
The €42 m (US $65.9 m) placing with institutional investors coincided with delivery of the Arctic for the appraisal drilling start.

C&M in administration
Administrators were called in to help Aberdeen oil and gas electrical contractors C&M Group Holdings and some of its subsidiaries in a bid to sell the business on.
Company directors at C&M called in financial help after they made an application to court under Scottish law, which putting the company into administration. Management group Deloitte was appointed to try and sell C&M which is currently converting a former Russian ice-breaker, Ice Maiden, into a single hull accommodation ship at A&P shipyard on Tyneside, Newcastle, as a going concern.

NATURAL GAS

Portland gas pipeline permit
Portland Gas has obtained a green light from the UK government to construct a new pipeline to carry gas to and from its planned storage site on Isle of Portland on the UK south coast. The new 37 km (23 mile) line will connect the planned underground salt cavern storage facility with the National Transmission System.

POLITICS

Academics attack CCS record on
Academics from several UK universities publicly criticised the government’s lack of progress on carbon capture and storage technology.
Eight professors, doctors, and an independent consultant put their name to a letter published in the Observer newspaper saying the government “appears paralysed by consultation” and unable to move forward on implementation of CCS technology.

RIG NEWS

NOF to take Transocean semis
Houston-based Northern Offshore Limited has provided further details on its plan to buy two semi-submersible rigs after an announcement earlier today.
NOF says it will buy the GSF Arctic II and GSF Arctic IV which are both currently operating in the UK sector of the North Sea in a deal with owner Transocean Inc.
Northern has agreed to pay US $750 m for the two drilling units, with Transocean providing $745 m of selling finance until December 2010.

New land rig for Gazprom
Russian oilfield service group Integra supplied a third land rig to gas giant Gazprom for new drilling operations in the Yamal Peninsula.
 
SEISMIC

North Sea service for Wavefield
Norway’s Wavefield Inseis secured a new StatoilHydro deal for seismic survey services covering the North Sea next year using the Geowave Master survey ship, which will deploy up to ten streamer lines during the programme.

Steerable seismic
Steerable streamers and steer able source technology will be used by StatoilHydro for the first time on board a new seismic ship which has been contracted to undertake a major North Sea survey campaign next year.
PGS was awarded a seismic survey contract by StatoilHydro involving the use of up to four survey ships including the newbuild Ramform Sterling, which is due for delivery July 2009.