Oil, Gas & Energy
Record interest in Barents Sea Licensing Round
Norway's Ministry of Petroleum and Energy has seen a record level of interest in the latest 22nd Licensing Round covering the Barents Sea where a total of 228 blocks were nominated for inclusion.
"In this round of nominations, particular interest has been shown in our northernmost sea areas, confirming that the Barents Sea is an exciting and internationally attractive petroleum province,." declared energy minister Ola Borten Moe after the nominations for blocks closed.
"This represents major opportunities for the entire region,” Borten Moe said. “Exploration in all of the areas which have been opened up is also very important for ensuring further activity, employment and ripple effects throughout Norway."
Source: Offshore.no
Barents Sea bonanza
Statoil and partner Eni now have a major field to develop after drilling on the Havis prospect confrme3d a major new oil and gas find.
And with the previous Skrugrad discovery the two companies are now looking at a major field development for the PL532 region to exploit between 400 and 600 million barrels of oil equivalent recoverable reserves.
And Statoil chief Helge Lund says the two discoveries together confirm the existence of a new petroleum system in the far north region of Norway. Statoil's president and chief executive declared today: "Havis is our second high impact oil discovery in the Barents Sea in nine months. The discovery's volume and reservoir properties make it Skrugard's twin. Skrugard and Havis open up a new petroleum province in the North."
And he added: "The Skrugard and Havis discoveries will be important for industrial development and will further boost activity in the supplier industry, providing new jobs and generating spin-off effects throughout the region," adds Lund.
Source: Offshore.no
Statoil lifts Aldous reserves estimate
Statoil has doubled its estimate of recoverable volumes in the Aldous Major discovery in the Norwegian North Sea to between 900 MMboe and 1.5 Bboe. This follows the results of appraisal well 16/2-10, drilled by the semisub Transocean Leader in license PL265. The previous estimate was 400-800 MMboe.
According to Statoil, the well confirmed a continuous, very good and thick reservoir, with an oil column of roughly 60 m (197 ft). And reservoir quality was similar to that encountered in the 16/2-8 discovery well, 4.2 km (2.7 mi) to the south.
Aldous is in communication with Lundin Petroleum's nearby Avaldsnes discovery in PL501. The combined structure extends more than 180 sq km (70 sq mi), with considerable variation in both reservoir thickness and oil column height. This will need investigating via further appraisal wells in both licenses.
Lundin recently estimated gross recoverable contingent resources for the Avaldsnes at between 800 and 1,800 MMboe. The combined Avaldsnes/Aldous Major South discovery is therefore now estimated to hold 1.7-3.3 Bboe, confirming it as one of the largest discoveries on the Norwegian continental shelf.
Source: Offshore-mag.com
Aldous and Avaldsnes: It's now Johan Sverdrup
Norway's biggest offshore oil discovery in the last 20 years has been given a new name by the government.
Norway's Minister of Petroleum and Energy Ola Borten Moe has decided that the 3 billion barrel Aldous and Avaldsnes discovery should be renamed Johan Sverdrup - the historical Norwegian figure who introduced the parliamentary system to the country in the nineteenth century.
"The Norwegian petroleum adventure is the property of all Norwegians," the energy minister declared, speaking at a business and industry conference.
"That is why it is important that the names of large, independent developments have a signal effect beyond the continental shelf. The choice of name reflects the importance of the project and the operations now being conducted," the Minister has declared.
Source: Offshore.no
Aker Solutions moves north
As the chase for oil and gas moves further north, the oil services industry follows. Today Aker Solutions announces plans to establish a large engineering office in Tromsø as part of the company's northern Norway strategy.
The new office will gather knowledge and expertise related to the northern region. It will become involved in engineering and maintenance and modification projects on the entire Norwegian continental shelf and abroad, and be an integral part of Aker Solutions' international competence network.
"We believe in the reserves potential on the Norwegian continental shelf and in the Arctic. If the marked continues to develop positively and we are successful in our efforts to win work with customers in the region, we believe that we will have a substantial engineering hub in the North with 2-300 employees in three to five years," says executive chairman of Aker Solutions, Øyvind Eriksen.
The establishment of the Tromsø office is part of Aker Solutions' overall strategy to increase the company's footprint in the northern regions of Norway, driven by an increasing number of interesting field development opportunities offshore northern Norway and in the Barents Sea.
Aker Solutions have worked closely with suppliers in northern Norway for many years. The Tromsø office will now develop a sourcing strategy for Aker Solutions in northern Norway and further strengthen our relationships with suppliers in the north.
Source: Silobreaker
Sourcing new engineers
Aker Solutions has swooped on an established engineering firm in northern Norway which will put it in a better position to compete for offshore projects.
Aker has acquired Sandnessjøen Engineering in Sandnessjøen in mid-Norway - which is on the same latitude as Iceland - and which has already been supplying engineering and project management services to the offshore oil and gas industry.
Aker has also promised to double the workforce there from the current staff of 24 in the next couple of years as its grows in the region, following on from the decision to establish a new office in Tromsø last December.
"The pace of growth will of course depend on our success in the market and our ability to recruit first-class team members, but generally our markets are strong,"declared Aker's head of maintenance, modifications and operations, Tore Sjursen.
Sandnessjøen Engineering is to work closely with Aker's new Tromsø office, and others across Norway.
Source: Offshore.no
Norway considers Barents Sea pipeline
The Norwegian government will consider extending its North Sea gas pipeline infrastructure as far as the Barents Sea if sufficient gas is discovered to pay for it.
There is "significant potential" for further discoveries in the Norwegian and Barents Seas, with 30pc of the world's undiscovered gas resources estimated to be in the Arctic, foreign minister Jonas Gahr Store said today. This raises the possibility of extending the Norwegian gas infrastructure from the North Sea to the Barents Sea, he said.
There must be sufficient quantities of gas for the 1,000km project to pay for itself, and an active exploration policy is needed for the Barents Sea. State-owned gas system operator Gassco is examining the possibility of extending its pipelines north from the Nyhamna processing facility to Luva. But this would leave it well short of some of the recent Barents Sea finds near Snohvit. Gassco is due to report its findings this autumn.
Source: Energy Delta
Britannia boost for UK firm
A British based company is boasting the creation of 250 new North sea jobs after landing a deal to modify the UK Britannia field platform.
Wilton Engineering has landed a deal with ConocoPhillips UK for a Long Term Compression Module contract at the Britannia gas platform which is underway at the firm's Port Clarence construction yard.
Wilton is due to construct the new 2,200 compression module which is due for delivery in March 2013 to extend the life of the Britannia platform
"The contract was awarded following a competitive tender process and we are really pleased that it was placed within the UK,” declared Bill Scott, chief executive of the group. He went on: “To have this project carried out in Teesside will be a great boost not only to our workforce but also the wider local economy. The award further enhances our reputation to build large-scale engineering projects and endorses the skills of our talented workforce."
Source: Offshore.no
Aker Solutions secures UK contract
Aker Solutions has secured a contract for maintenance, modifications and operations work with an undisclosed customer in the UK sector of the North Sea.
The two-year contract will guarantee over 180 jobs annually for Aker Solutions in Aberdeen, UK. There are also two optional one-year contract extensions that may be exercised in the future. Aker Solutions estimates the contract value to be approximately £13 million per year.
Mike Forbes, Aker Solutions' managing director of maintenance, modifications and operations in Aberdeen, comments: "We are delighted to win this important contract. We are dedicated to further developing our highly efficient operations and maintenance service where our activities are currently at an all time high."
The scope of work for Aker Solutions is the provision of operations and maintenance support services for the client's operations in the UK sector of the North Sea.
Source: Reuters
Gannet leak pipeline to be covered
Work is is underway to plan how to remove remaining gas and oil from a pipeline linked to Shell's Central North Sea Gannet platform which developed a leak and led to an oil spill.
Hugh Shaw the UK government official responsible for overseeing the incident said Shell has already started to lay a concrete mattress over sections of the pipeline raised from the seabed and this is expected to take up to 36 hours to complete. This will protect the line from tide and storm damage.
After that Shaw said planning will start for the "safe and timely" removal of remaining gas and oil in the line.
Source: Offshore247
Major North Sea Discovery by Statoil
A huge discovery by Statoil ASA in the North Sea last week has been confirmed by the Norwegian company as one of the largest ever on the Norwegian continental shelf (NCS). Statoil had initially announced a "high-impact" discovery (holding 250 million barrels of oil equivalent or more) on August 8 at their Aldous Major South prospect. Further testing has since revealed that in addition to the 200-400 million barrels of oil equivalent (BOE) found there are strong indications of another 200-400 million BOE in the same structure.
Together with the estimated 100-400 million BOE, the combined formation may hold anywhere from 500 million boe to 1.2 billion BOE. "Aldous/Avaldsnes is a giant oil discovery,” noted Statoil's executive vice president for exploration Tim Dodson, “and according to our estimates the combined discovery may make the top 10 list of NCS oil discoveries. Norway has not seen a similar oil discovery since the mid-eighties."
Aldous/Avaldsnes is the latest in a series of major discoveries for Statoil, who have now turned up their third high-impact discovery of 2011. In April, the company made a 250 million BOE find in the Barents Sea, as well as a 100-300 million BOE discovery at the Peregrino South oil field off the coast of Brazil.
"These are enormous areas, with enormous potential, where we can witness incredible things and we already are,” commented Petroleum and Energy Minister Ola Borten Moe after the initial announcement on August 8. “The activity level in general is high and the discoveries that are being made are raising the level of interest, creating a virtuous circle."
"[Aldous/Avaldsnes] shows Norway still has the capacity to deliver world-class discoveries,” noted Dodson. “It's probably the largest offshore oil discovery anywhere in the world this year. It has given the entire oil industry renewed optimism."
Source: Oil Investing News
'New era' for Barents gas
A possible extension of Norway's gas pipeline network farther north coupled with new industrial applications for gas are set to herald a new era of upstream expansion in the Barents Sea
Recent significant discoveries in the frontier region, including Statoil's landmark Skrugard oil and gas find earlier this year as well as the more recent Norvarg and Skalle gas strikes, have raised the prospect of a new petroleum province in the north as Norway sees production dwindle from its mature fields. ”The development of the Barents Sea as a new European gas region opens large perspectives for economic and industrial development in the north,” Store told a regional conference. "If we raise our sights and take advantage of the opportunities, we could stand on the threshold of a new industrial epoch of great significance for welfare, development and employment in the north."
A new gas pipeline to harness the value creation potential of new Barents discoveries would be a "decisive" factor for development of the region, Store said. At present, Statoil's Snohvit gas field and associated LNG scheme is the only operational project in the region. Norwegian gas trunkline operator Gassco is already working with 11 oil companies towards concept selection for a new Norwegian Sea pipeline later this year, with a final investment decision due in 2012.
Gassco is also looking at options to extend the gas transport network farther but more discoveries are needed first. President Brian Bjordal has said a larger resource base would be needed to realize a Barents pipeline. A plan for an 1000-kilometre extension of the existing pipeline into the Barents, which would cost between Nkr10 billion and Nkr30 billion ($1.8 billion and $5.5 billion), is currently being studied by the gas distributor.
Source: Upstream Online
Upgrades the United Kingdom field for £ 26.7 billion
BP and licensing partners, including Statoil, to upgrade the oil fields Schiehallion and Loyal in the UK, among other things, a new FPSO (Floating Production, Storage and Offloading - device) in place.
The fields have produced a total of 400 million barrels since its inception in 1988, and the companies believe there is still recoverable resources of approximately 450 million barrels left in the ground.
The upgrade, or new development which in practice is involved, will cost 26.7 billion kroner (£ 3 billion) and extend production until 2035, and possibly longer, according to BP. Our share of the investments will be approximately 1.3 billion.
The project in British Quad 204, about 60 kilometers offshore the northern tip of Scotland, including replacing the Schiehallion FPSO, with a new one. This will be 270 meters long and 52 meters wide, able to process and export up to 130,000 barrels per day and save a milion barrels. The new FPSO will be installed during 2015.
Source: Oilinfo (Norsk)
Aker Solutions to create 500 new UK jobs
Two hundred new jobs will be created at Aker's subsea technology division in Aberdeen Continue reading the main story Related Stories UK oil and gas drilling falls 52% Treasury offshore move welcomed Survey warning over new oil tax International oil services firm Aker Solutions has announced it is to create 500 new UK jobs over the next year.
The Norway-listed company said it would recruit 300 staff for its Aberdeen operations, with the rest planned for its west London engineering office. The move follows a 19% rise in its order backlog since the start of the year. Aker said it was staffing up its UK organisation as it expected workload levels to remain high in future years.
The jobs announcement has come only two days after an Oil and Gas UK survey suggested the outlook of the UK upstream oil and gas industry remained "fragile" in the second quarter of this year. The industry body said confidence had been hit by a £2bn windfall tax on oil producers announced in the 2011 Budget.
The majority of Aker's new jobs in Aberdeen will be located at its subsea technology business, where 200 new posts will be created. A further 70 staff are being recruited to support work for maintaining and upgrading North Sea oil platforms in order to extend their field life.
Aker also plans to hire about 200 engineering staff for its new offices in Chiswick Park, London, with a target of 500 by the end of 2015. The engineering hub will support field development projects for the North Sea and worldwide.
Source: BBC
Linking Norway to continental Europe
In the period leading up to 2020, Statnett is planning to establish four new cable connections between Norway and continental Europe, with a total capacity of up to 4200 MW.
More international interconnectors will aid the development of tomorrow's energy supply in Norway and Europe, based on renewable energy. In the period leading up to 2020, Statnett is planning to establish four new cable connections between Norway and continental Europe, with a total capacity of up to 4200 MW. The projects will be self-financed, and profits will help reduce grid tariffs for Norwegian households.
Norway is in a unique situation With substantial hydroelectric power production facilities, established through many generations, 98 per cent of the electricity currently generated in Norway comes from hydropower. This is about twice as much as in any other country in Europe. 60–70 percent of the hydroelectric power comes from mountain reservoirs.
Reservoir-based hydroelectric power has high regulating capacity which means that it can be generated as and when required. Consequently, hydropower is in demand and could become an important resource for Europe as wind power becomes increasingly common. Wind power is also a renewable source of energy, though less stable than hydropower.
Source: Statnett
Statnett, National Grid To Lay Power Cable Between Norway, UK
The Norwegian state-owned electricity grid operator Statnett Monday said it plans to lay a 800 kilometer power cable between Norway and the U.K., in cooperation with U.K.'s grid operator National Grid.
According to a statement from Statnett, the project can be completed between 2017 and 2020. It added that the subsea power cable, which will have a capacity of 1,400 megawatt (MW), will be the longest ever laid.
The planned cable between Norway and the U.K. will reduce fluctuations in electricity prices and enable further installment of renewable power, in both Norway and the U.K., Statnett said.
"The cable between Norway and England is planned as part of the main grid. This means that profits will go back to consumers in the form of reduced tariffs," Statnett said.
Source: ADVFN
Amec sees £70 billion of investment in UKCS
Energy services group Amec remains upbeat about the prospects for the future of the North Sea with an indication that it expects 32 new platforms to be developed and Capex to exceed historic levels over the next five years.
Based on figures from an industry survey Amec recognises £22 billion worth of projects already sanctioned and another £30 bn worth still to be given the green light.
Overall, Amec expects £70 bn to be invested in the UKCS over the next decade and beyond. The figures come from a capital markets days presentation by Amec's John Pearson, managing director of Amec's natural resources business for Europe and West Africa, which provides a forward look for prospects on the UK Continental Shelf.
Those 32 new platforms will involve an average of 5,000 to 6,000 tonnes of topsides Pearson's presentation suggests, based on its industry research, and the estimated growth rate for the oil and gas market is put at between 8 and 10% between the 2010 and 2015.
Source: Offshore247
Nuclear ban good news for Statoil
Germany's decision to phase out its nuclear power plants was greeted warmly by Norwegian state oil company Statoil, which sees potential for more gas sales and higher prices. Norwegian consumers will likely face higher energy prices, though, as well.
Statoil can benefit from the closure of Germany's nuclear power plants. PHOTO: Harald Pettersen/Statoil "This is very positive for Statoil," Rune Bjørnson, director of natural gas for Statoil, told newspaper Dagens Næringsliv (DN).
Statoil currently sells 22 percent of all the gas consumed in Germany. With no energy coming from the nuclear plants, Statoil is eyeing the prospects of gaining an even bigger market share. "Everything indicates we can sell more gas to Germany,” Bjørnson said. “Our infrastructure is in place and we have more gas to sell." Statoil has been selling natural gas to Germany for 30 years, with exports going through three pipelines that can handle more capacity. Statoil is in the midst of a major promotional campaign on the continent, with an eye to boosting exports as well.
Source: News in English
Norwegian Oil Museum Launches Interactive Petroleum Map
KADME, a leading provider of information management software and services to the oil and gas industry, is pleased to announce that KADME has developed an interactive map for the Norwegian Oil Museum. The map will be officially unveiled at the European Oil & Gas archives and European Oil Museums conference on 26 May in Stavanger.
The Norwegian Oil Museum provides information about technological advances and the way petroleum influences Norwegian society. In order to inform visitors about offshore infrastructure, the Interactive Petroleum Map allows users to learn about oil platforms in conjunction with fields, licenses, blocks, terrain and other relevant data. Users can overlay different themes of information to view an integrated picture of the offshore installations.
The map, which covers North Sea oil and gas data, will be available on the web and at the Museum. The Norwegian Oil Museum's curator, Harald Tønnesen, explained that, 'The Museum needed to create a system that would allow visitors and researchers access to the vast amounts of North Sea data. We decided that an interactive map, linking images, articles and other information, would bring the most value. Our ambition is that this map could be extended to cover all of Europe's oil and gas infrastructure!'
Source: Oil Voice
No to Lofoten, yes to Barents Sea
The Norwegian government has decided to put on halt the exploration of the Lofoten area, but instead heightens its focus on the petroleum resources in the Barents Sea, following the Skrugard discovery. The Norwegian government has decided not to elaborate any consequence study for the Lofoten waters in this election period. With the decision, the government coalition might have overcome one of its most controversial issues. As previously reported, the Lofoten issue is believed to have had the potential to make the three-party left-green coalitions collapse.
Source: BarentsObserver
Large Barents oil discovery
Statoil says the discovery is a breakthrough in the Barents Sea and one of the most important events on the Norwegian continental shelf in the last ten years. After several dry wells over the last three decades, a significant oil discovery 200 kilometres north of the coast of Finnmark was announced by Statoil on Friday.
The company says in a press release the Skrugard prospect is believed to contain recoverable reserves of 150 to 250 million barrels of oil equivalent. Statoil says the upside in the licence can be even bigger.
- The discovery on Skrugard is significant and a breakthrough for the frontier-exploration in the Barents Sea, says vice-president for explorations in Statoil Tim Dodson.
Source: Barents Observer
Oil industry maintains fight against North Sea tax
The great North Sea tax debate looked no closer to being resolved following a tense meeting between industry executives and politicians before the UK energy committee.
In a last-ditch attempt to alter the government's decision to raise the tax on offshore drilling profits, UK industry body UK Oil & Gas said it will prompt investors to look to rival opportunities overseas where their capital will earn better returns.
Following the meeting, chief executive Malcolm Webb said: "This increasingly mature sector needs careful handling. It cannot take shocks such as the recent tax hit introduced by the chancellor."
The move to increase taxes, first unveiled in the March Budget, has prompted a backlash from companies operating in the region. Norway's Statoil halted investments in two new oil and gas fields worth over £6 billion, while Valiant Petroleum (VPP) cancelled a project worth up to £93 million. More recently, energy giant Centrica (CNA) has warned that it may not re-open its Morcambe Bay gas field which is closed for maintenance.
Source: Interactive Investor
Centrica threatens to close major UK gas field
Centrica, the owner of British Gas, says it might shut one of its major gas fields because of increased taxes.
The company is closing three fields in Morecambe Bay for a month of maintenance, and says it might not reopen one of them.
In his Budget, Chancellor George Osborne raised supplementary tax on oil and gas production from 20% to 32%.
Centrica says UK producers now face some of the highest taxes in the world. The company has closed the Morecambe Bay North and Rivers gas fields for about four weeks' planned maintenance.
It is also shutting the South Morecambe field for an unspecified period of work, and the firm says it might not be restarted.
Source: BBC
Heilo is diamond
North Energy's CEO Erik Karl Power believes that GDF Suez operated Heilo prospect is the diamond in its exploration portfolio, and believe in an oil discovery about the size of Goliath.
Heilo prospect located in license 530, and must be examined through well 7124/4-1S of "Aker Barents". Scheduled to be drilled around the 1st August, and one of the partners have reported about potential resources of 200 million barrels of oil equivalent, and with a success probability of 65 percent. North Energy believes in his hand, that prospect may contain the entire 308 million barrels, but with a success probability of 49 percent.
- We believe there are great opportunities to make a significant oil discoveries. And it will move quickly to build it out as it is close to Goliath, where the infrastructure will soon be in place. If it should be bigger than Goliath, we must find other solutions. It could not be "the tail that wags the dog," says Karl Power to Tech Magazine.
Source: Oilinfo
Improved results for Hydro
Norwegian global aluminum producer Hydro had underlying earnings before financial items and tax (EBIT) of NOK 1,448 million in the first quarter, up from NOK 588 million in the fourth quarter last year.
In a press release Hydro states that higher realized aluminium prices and premiums, higher volumes and lower operating costs lifted underlying results for the quarter.
"Closing the deal to acquire Vale's aluminium assets (in Brazil) was a milestone in Hydro's history as a global and truly integrated aluminium company. This transforming move secures access to bauxite and alumina for aluminium production for decades to come, providing us with a solid platform for the future," Hydro's President and CEO Svein Richard Brandtzæg said.
Source: Norway Post
NOK 1000 billion in oil income last 10 years
Net cash flow to the government from the State's Direct Financial Interest (SDFI) on the Norwegian continental shelf in 2010 was NOK 104 billion, up almost NOK 7 billion from the year before, Petoro reports.
Net cash flow to the government from the State's Direct Financial Interest (SDFI) on the Norwegian continental shelf since Petoro's creation in 2001 has topped NOK 1 000 billion. Net income increased in 2010 by five per cent, primarily as a result of higher oil prices. Overall daily production averaged 1 080 000 barrels of oil equivalent (boe), a slight increase from 1 074 000 boe in 2009. Revenue from dry gas sales totalled NOK 68 million, compared with NOK 70.3 billion the year before. The total volume of gas sold - including third-party gas - rose by 15 per cent from 2009 to 39.5 billion standard cubic metres (scm), corresponding to 681 000 boe per day.
Source: Norway Post
UK Oil and Gas Production Decline Slows as Investment Rises by 60 Per Cent
Capital investment in UK oil and gas exploration and production has increased by 60 per cent over the last two years, significantly slowing the rate of production decline from the UK continental shelf (UKCS), according to Oil & Gas UK's latest Activity Survey, published today (23 February 2011).
The survey, which incorporates the latest exploration, investment, production and decommissioning data supplied by all the leading exploration and production companies operating in the UK, suggests that investment, which in 2009 was just under £5 billion, could increase this year to around £8 billion (2010 prices). Provided all the development plans now being considered by companies come to fruition, annual investment could be sustained at this rate for the next five years. This will have a significant impact on the country's hydrocarbon production and could ultimately lead to the decline rate halving to around 3 per cent per annum to 2016, down from the basin's yearly average decline of 6 to 7 per cent over the past ten years.
The investment could also lead to a further 10 -15,000 jobs in the supply chain across the UK. Investment has been boosted by the approval of a number of new large field developments in the west of Shetland, the central North Sea and to a lesser extent, in the northern North Sea. Investment was initiated in thirteen new oil and gas fields in 2010 together with four major redevelopment projects on existing fields. There are also 67 potential new field developments with recoverable reserves of 3.1 billion barrels. The ten largest account for over 60 per cent of forecasted capital expenditure: four of these are west of Shetland, three in the central North Sea and three in the northern North Sea.
Source: Oil & Gas UK
Statoil signals Statfjord shutdown
Statoil has started a dialogue about the shutdown of the Statfjord A platform in 2014 - the oldest installation on the Norwegian Shelf - signalling a step towards the decommissioning phase of the field. A consultative document has been issued by the Norwegian oil major describing elements of the platform removal process and it is inviting comments from the government and interested parties on the proposals.
The document has been sent out to the Norwegian government, local authorities, and special interest groups, outlining a draft decommissioning programme with an impact analysis as a precursor to a final decommissioning plan.
But it will also be a clear signal to offshore contractors that Statoil is starting to prepare for the removal process, which in turn means major contracts for decommissioning work in the future. But it will be a fine balancing act as Statoil is still drilling new wells at the field to extend oil recovery there.
Source: Offshore247
Increased recovery to cost NOK 65 billion
The Norwegian Ministry of Petroleum and Energy has received Plans for Development and Operation (PDO) on the Ekofisk and Eldfisk fields. The projects will entail investments in the region of NOK 65 billion.
The new investments will increase the recovery rate from the Ekofisk field from 49,5 percent to 52 percent, and from 22 percent to 28,5 percent from the Eldfisk field. ConocoPhillips is the operator for the projects, while Total, Eni, Statoil and Petoro are partners in the respective production license.
Source: Norway Post
40 Statoil Projects
Statoil signalled today that it expects up to 40 additional projects to be sanctioned over the next two years.
These new developments are in addition to the 13 field projects the Norwegian oil company is working to bring onstream by next year, which will add around 200 million barrels of oil equivalent in daily production.
Another 150 m boe is due to be added from the ramp up of fields which have recently been brought onstream. The developments are part of the strategy Statoil's chief executive Helge Lund is due to outline to the financial community in London as part of his presentation of the company's fourth quarter and full year results for 2010.
"We expect to continue to demonstrate substantial value creation from the Norwegian continental shelf (NCS)," Lund declared today.
"The NCS still has a large resource base with significant yet to find volumes, and we have the experience and the competence to exploit its full potential."
And the Statoil chief continued: “The decline at mature fields is as envisaged, and we expect new projects with competitive break-even prices to deliver significant future growth. We see production outlook as being stable towards 2020 on the NCS, “he added.
Source: Offshore247
Multi-billion investments in the Barents Region
Mining- and metallurgical industry, oil- and gas, el-transmission, roads, ports and railways. Welcome to an investment boom in the North estimated to more than £100 billion over the next ten years.
The single-largest investment in the Barents Region will be the development of the Shtokman natural gas field in the Barents Sea and the landing infrastructure. Several tens of billion Euros could be invested in what will be the largest industrial development north of the Arctic Circle ever in history.
In the Norwegian sector of the Barents Sea, Snøhvit gas field and the attached LNG-plant at Melkøya in Finnmark is the only operational field. Another field, the Goliat oil field is currently under development and production is expected to start in 2013.
Norway has opened for many test-drilling licences in the Barents Sea this year, and the newly signed maritime delimitation agreement with Russia in the Barents Sea could open for even more test-drilling in the eastern part of the Norwegian sector in the years to come.
Up to five Barents Sea wells
Norwegian explorer North Energy has confirmed plans for up to five possible wells this year all in the Barents Sea.
Drilling on the first of these wells is due to kick off this spring and with up to five wells North Energy is set to become one of the most active exploration partners in the Barents Sea region this year.
Drilling is planned in PL535 on the Norvarg prospect in the second quarter this year, probably May, and operated by Total with up to 226 million barrels of oil equivalent - and 13 barrels of oil equivalent net to North Energy which has 20% in the licence area. Norvarg is due to be drilled with the West Phoenix semi-submersible.
Norvarg lies between the Ververis and Arenaria gas discoveries, in Norwegian blocks 7225/2, 7225/3, and 7226/1. If successfully drilled, it could be tapped as part of a second train at the Snøhvit LNG plant at Hammerfest in Northern Norway, North Energy has indicated.
All of the following four wells are due to be drilled by the Aker Barents. Two wells are slated for PL518 operated by Dong Energy on the Zappfe prospect and a contingent sidetrack later this year. Zappfe, near Goliat, is thought to contain 280 m boe - 21 m boe net to the company . Drilling may run over into the first quarter 2012.
North Energy has also signalled plans for further drilling on the Jette prospect in PL385, operated by Statoil in the Norwegian Sea which lies 20 kilometres (12 miles) from the Norne FPSO and which contains 95 m boe of gross mean risked resources - 5 m boe net to North Energy, which is due to be drilled by the Transocean Leader. This well is scheduled for either late 2011 or early 2012.
Source: Offshore247
Barents region on hotspot list for business in 2011
Chile, Barents Sea, Haifa, Berlin and Istanbul are the places to watch for business opportunities in 2011, according to a global forecast analyses presented in the latest edition of the prestigious Monocle magazine. The London-based Monocle magazine is known for presenting trends in global affairs and international business, culture and design.
In their 2011 list of the five best places to look for business possibilities, the Barents Sea region is listed along with Chile, Haifa, Berlin and Istanbul.
"The Barents Sea is thawing fast. Watch this space,” concludes the article that starts with the lead “Things are hotting up in the High North." Read more: Multi-billion investments in the Barents Region Increased shipping due to global warming and the prospective for major developments of hydrocarbons are two of the driving forces for why the Barents Sea region is a business hotspot. The September 2010 agreement between Norway and Russia on the delimitation of the Barents Sea and the Arctic Ocean signals the beginning of a new era, writes Monocle magazine.
Source: Barents Observer
High efficiency rigs required
Statoil has issued a new invitation to tender for a new high efficiency rig design for operations on the Norwegian Continental Shelf which will be aimed a smaller size discoveries.
Accepting the maturity of the NCS, Statoil is looking for a new type of rig which can drill and complete wells at lower cost, with 20% greater efficiency.
"Discoveries on the NCS are getting smaller and it is becoming more important to increase drilling activity in mature fields to attain the full potential of the NCS,” the Norwegian operator has signalled. “To meet this challenge, lower rig rates, greater drilling efficiency and access to rigs are key factors."
Jon Arnt Jacobsen, Statoil's chief procurement officer says many rigs now used by Statoil are too big for the drilling jobs of the future: "The rigs delivered to the NCS in recent years were first and foremost constructed for operations in deep water,” he points out. “They are big and too costly for our requirements and challenges on the NCS."
So Statoil is looking for a new rig type - the design brief has been developed with industry collaborators - which is leaner and better suited to current conditions.
Source: Offshore247
Considering new LNG plant in Finnmark
Statoil and its partners in the Snøhvit natural gas field in the Barents Sea have decided to perform studies of possible concepts for building a new LNG plant in Hammerfest.
The expansion of the processing capacity in Hammerfest is called Snøhvit Train II.
The existing LNG plant at Melkøya, just outside Hammerfest in Finnmark, started its production in August 2007.
Snøhvit was Europe's first export facility for liquefied natural gas.
Statoil says in a press-release on Wednesday that although it is decided to go for a study, the investment decision will earliest be made in late 2013.
The new LNG-plant can then be expected to be in operation in 2018, at the earliest.
- Capacity expansion will accelerate the production of gas that has already been found and open for earlier production of new gas that extensive exploration activities in the Barents Sea can hope to discover, says Statoil's project manager, Geir A. Owren.
The new plant, to be built next to the existing plant, will be feed with gas from a substantial development offshore involving new subsea templates, production wells and a additional new pipeline to Melkøya.
If built, the construction investment will be several billion Euros.
Source: Barents Observer
Major modification spending
Up to NOK 9 Billion (US $ 1.510 Bn) is due to be spent by Statoil this year modifying existing platforms and infrastructure. Signalling a major spend this year, the Norwegian operator has indicated that up to 500 modification projects were carried out on its assets across the Norwegian Continental Shelf last year of which around 300 were aimed at improving health and safety and environmental performance while the remaining 200 projects were primarily geared towards improving production performance and platform uptime, and on reducing operational costs.
Much of the focus this year will also be on HSE issues, the operator has indicated, while projects will also aim to improve earnings from the installations.
Source: Offshore247
Fully financed North exploration
North Energy has renewed and expanded their exploration loan facility from 300 to 760 million Norwegian kroner. This pays for eight wells from 2010 to 2012.
We are very pleased to have in place a syndicate with first-class and complementary banks at competitive terms and conditions. This syndicate will also have the necessary financial capacity and competency for future field development financing, CEO Erik Karlstrøm says.
The renewed loan will pay for a total of eight wells to be drilled in the period between 2010 and 2012.
The bank consortium consists of DnB Nor and SEB, first one mentioned is the coordinator and facilitator for the loan.
Source: Offshore
Britain set for major investment bonanza
Britain's offshore sector is set to see hundreds of billions of new investment according to an inward investment report produced for Norwegian suppliers.
According to Intsok, Norway's oil and gas internationalisation group, the UK sector will see a major development drive in 20011 after 14 projects worth NOK 80 Billion (US $13.75 Bn) were given the green light by the UK's Department of Energy and Climate Change, last year heralding a surge in field development activity.
"We are going to see strong growth in the UK up to 2014," Einar Holmefjord, Intsok regional director of the Bergen Chamber of Commerce declared in an industry briefing this week.
That total of 14 projects equals the tally for the previous four years and there is even more to come, Intsok members were told. Up to 30 projects fall due for approval in the UK sector this year, according to Intsok data. Between now and 2014, there are between 10 and 14 new fixed platform projects due, another 10 to 12 using floating production systems, and another 30 subsea developments, in addition to significant brownfield work involving modifications to existing installations.
"The UK will be the world's fourth largest offshore market [in] the next four years and the third largest export market for the Norwegian offshore industry," Holmefjord predicted.
Statoil's UK operated Mariner and Bressay heavy oil developments will be two of the biggest projects in the UK sector: Statoil now operates both Mariner with 62% and Bressay with 81.625% after taking over from Chevron, which failed to give the fields development priority over competing projects.
Intsok's data suggests both fields will require substantial platforms, with topsides between 20,000 and 24,000 tonnes putting them among the largest built in the UK for years, and with production rates of 50,000 to 60,000 b/d of oil, similar in rank to the Britannia development.
Holmefjord also indicated Statoil is likely to decide next month whether these projects are to be financed and actually implemented. If the answer is yes, then the first contracts for long lead items on both projects are likely to come in the summer and autumn this year. "So this is just around the corner," said Holmefjord.
Source: Offshore
Mostly newcomers in APA 2010
Only one of the international oil majors participated in the latest license award on the Norwegian Continental Shelf, where the Norwegian Government has offered 50 production licenses.
The major oil companies need predictability, a new white paper on petroleum and new exploration area. This has not happened, and the awards in predefined areas 2010 (APA 2010) show that Total is the only major international company in the APA 2010.
The round is completely dominated by newcomers, and of course Statoil.
The 50 production licenses are divided on the North Sea (31), the Norwegian Sea (17) and the Barents Sea (2).
The winners: Statoil was offered three licenses in the North Sea, two in the Norwegian Sea and one in the Barents Sea. Germany's Wintershall was offered three licenses in the North Sea and two in the Norwegian Sea. Det Norske was only offered one license in the North Sea and two in the Norwegian Sea.
Offers of operatorship North Sea: (Lundin (4), Wintershall (3), PetroCanada (2), Bridge Energy (1), Statoil (4), Idemitsu (2), E.ON Ruhrgas (1), Det norske (1), Marathon (1), VNG (1), Rocksource (2), Lotos (1), Dana (1), Talisman (1) and Nexen (2) .
Offers of operatorship in the Norwegian Sea:( Total (1), Spring Energy (3), North Energy (1), Edison (1), Rwe Dea (1), Wintershall (3), Statoil (2), Det norske (2), VNG (1), Rocksource (1), Dana (1) og Centrica (1).
Barents Sea:(Edison and Statoil received one operatorship each.
Source: Offshore
The shelf in 2010
The petroleum sector experienced a temporary decrease in investments in 2010. It is expected that investments in 2011 will be slightly over the peak year 2009 - approx. NOK 150 billion. Slightly more than NOK 130 billion was invested in the petroleum sector in 2010, of which approx. NOK 30 billion were in connection with exploration activities. The decrease from 2009 to 2010 of around NOK 10 billion was mainly caused by decisions regarding expected investments in facilities - both subsea and platforms - being postponed. Some of this can be ascribed to the financial crisis that occurred in the autumn of 2008. There has been no decrease in investments in wells and modifications.
It is expected that investments will increase by around NOK 15 billion from 2010 to 2011, to a total of approx. NOK 150 billion. Increased investments in facilities are the main reason. A large share of these investments are in connection with the development of the North Sea fields Gudrun and Valemon, and Goliat in the Barents Sea, as well as major developments on the existing fields Eldfisk and Åsgard, in the North Sea and Norwegian Sea respectively.
Continued growth in investments is expected in the years immediately following 2011, with a new peak in 2013. This year's estimates are somewhat higher than last year's, due to a number of new projects including both development of new discoveries and new field projects, which have been proposed by the operators in 2010.
It is also expected that exploration activity will remain high in the coming years, triggering major investments. Due to this development in the activities, the Norwegian Petroleum Directorate once again sees that capacity constraints could become an issue. Access to rig capacity is particularly important to realise the expected activity level.
The current plans include many wells, both exploration and production wells on fields.
Source: NPD
New SNS opportunity
Tullow Oil has signalled new opportunities in the UK sector of the Southern North Sea where the Harrison gas field development is moving ahead and a tieback is being considered to defer decommissioning at the Thames gas field.
In a trading update today Tullow Oil signalled that work is now underway on the Harrison field development in the Caister-Murdoch field area. Work on Harrison progressed well last year and Tullow says partners are now aligned on an export route and development concept planning.
"The development is likely to receive partner approval early in 2011 and the Field Development Plan is expected to be submitted mid-year," Tullow stated today.
Also after an equity deal with ConocoPhillips, Tullow has now increased its stake in the nearby Cameron prospect exploration well which is due to be drilled in April and which is just to the south of the Harrison discovery in UK block 44/19b.
Source: Offshore
Connector to install Goliat power cable
Aker Solutions has secured more of the workscope for the offshore construction phase for the Barents Sea Goliat project.
Under a new deal the Norwegian contract group has been selected to install a subsea power cable from the field location back to shore.
Aker Solutions' subsidiary Aker Marine Contractors is to carry out the cable installation programme - a 106.5 kilometres (66 mile) line from Hammerfest in northern Norway to the Goliat FPSO - using its new build marine construction ship AMC Connector.
ABB has already been contracted to supply the power cable which will weigh around 6,000 tonnes - well within the 9,000 tonnes payload capacity of the installation ship - which was previously designated Aker Connector and which is due to be delivered next year by STX Europe after outfitting at their yard in Søviknes, Norway.
Under an agreement signed in March last year ABB agreed to charter the vessel for the cable installation programme at Goliat and Aker will receive a NOK 70 million (US $12.33 million) fee for management of the project. Installation of the cable is due to take place in the second quarter 2013.
Source: Offshore
OTD 2011 is 75% sold out
Offshore Technology Days 2011 OTD which takes place in Stavanger in October is already a huge success.
"Nine months before the exhibition opens, the 3,300 square feet of exhibition space has been to sold to 180 companies representing 75 percent of the available capacity," says sales director Odd Eide Knudsen of Offshore Media Group.
Major offshore companies ABB and Subsea 7 have just agreed to attend OTD 2011 bringing still more enthusiasm for the event in Stavanger Forum, which takes place 19-20. October.
Especially popular is the legendary October Fest, which brings together representatives of all participants in the evening between the exhibition days. In 2011, "We can accommodate between 2200 and 2500 people - which is also a new record. But the records are there to be broken," Knudsen adds.
Source: Offshore
Aker Solutions awarded UK contract
URENCO UK Ltd has awarded Aker Solutions a contract to provide engineering and interface support for a new tails management processing and storage facility at URENCO's Capenhurst site in North West England, UK.
This new storage facility, being designed in accordance with the requirements of industry regulators, is a major combined nuclear and chemical development for UK industry.
Aker Solutions will provide the engineering development for the front end engineering design, including layout and basic engineering documentation to allow the design to be progressed to detailed engineering stage. The contract value is undisclosed.
Johan Cnossen, regional Senior Vice President, Europe, Middle East & Africa region with Aker Solutions' Process and Construction business area said, "Aker Solutions has valuable design engineering experience working within this industry, which we can transfer to this project. We are pleased to be working with URENCO on this important project."
NOK9B to spend on Norwegian Continental Shelf In 2011
Statoil said Thursday it has planned 990 modification projects on the Norwegian continental shelf in 2011, with a price tag totalling NOK9B.
- The modifications will improve health, safety and the environment (HSE) - as well as earnings from the installations.
- "Our new work process for modifications helps enhance quality in the early phase," says Hans Jakob Hegge, senior vice president in Development and production Norway (DPN).
- Nearly 500 modification projects were completed on the NCS in 2010. Around 300 of these were purely HSE projects that contribute to improved safety, reduced emissions or improvements in the working environment on the installations.
-The remaining 200 projects were based on financial assessments and provide increased production, improved regularity, reduced costs and, in many cases, important HSE improvements as well.
Exploration on NCS in 2011
Whilst the number of wells decreased last year to 40 wells compared to 65 exploration wells in 2009, 2011 is set to match the record year of 2009. About 60 wells have been scheduled so far.
The increase is mainly due to an increase in Statoil's plans next year. In 2011 the company drilled ten wells, but according to Øystein Michelsen, director of exploration and production in Norway, the 2011 figure could be around 20-25 wells. So far, only five of these have been named.
Barents Sea and appraisals
Lundin and Wintershall want to know more about Avaldsness, Maria and Grosbeak and will therefore drill appraisal wells.
The current exploration in the Barents Sea expands. A total of nine wells are planned in the Barents Sea in 2011.
Director of exploration Sissel Eriksen, NPD hopes the increased activity will result in a breakthrough in exploration off the Hammerfest Basin.
"So far we have not been able to crack the code. We make discoveries, but the reservoir quality is not good enough. The challenge is to understand the geology of the area and develop new and better search models, "she said.
North Sea most popular
The companies still find the North Sea the most attractive area. Among the 42 wells which are specified in the licenses, 23 are located in the North Sea, 10 in the Norwegian Sea and nine in the Barents Sea.
Source: Offshore247
Contract to dismantle North Sea installations
Environmental specialist Veolia has bagged a deal to dismantle decommissioned platforms from Shells's Indefatigable gas field in the UK sector of the Southern North Sea.
Working with Peterson SBS up to eight gas platforms from Indefatigable are set to be brought back to shore at Tyneside in Newcastle in the UK North-East for dismantling and recycling under a new deal with Shell UK.
After originally winning the Shell decommissioning contract just before Christmas, Veolia Environmental Services has just confirmed it will be investing in new facilities at the former Swan Hunter shipyard site - now owned by North Tyneside Council - at Wallsend on the north bank of the River Tyne, with offshore partner Peterson SBS, to handle the Inde structures.
Up 35 jobs will be created at the site, Veolia has indicated, while other sub-contracting work will arise as the decommissioned installations come ashore.
Up to eight platform jackets and eight topsides are due to be brought back to the site with a total tonnage of around 10,500 tonnes, between April and October next year as the offshore removal phase of Shell's Inde decommissioning programme gets going.
Veolia chief executive Jean-Dominique Mallet, underlined that the UK North Sea decommissioning market offers "considerable opportunities."
He said: “We are delighted to be extending our decommissioning capabilities to cover the entire UK North Sea oilfield by supporting Shell and partners on this sustainable new contract.
North Tyneside Council has plans to regenerate the region, by building on the marine engineering and renewable energy expertise that exists in Tyneside.
Source: Offshore247
New projects signalled
Vendors in the offshore supply chain have access to a new database of forthcoming projects in the UK sector of the North Sea under an initiative launched by Britain's Department of Energy and Climate Change.
After consulting with and listening to the UK supply chain, the DECC has set up a new website which provides brief details of new and forthcoming projects on the UKCS.
Project Pathfinder is designed to provide vendors with early warning of the business opportunities available in the offshore oil and gas sector. "It has been developed to provide increased visibility to the contracting community and to build on the information available from existing forums such as the PILOT Share Fair and the PILOT Forward Workplan," the DECC says.
Dozens of new and current project are indicated, ranging from major developments to redevelopments, subsea tiebacks and those which require new normally unmanned installations up to 2017 are detailed, with the aim that it will become a "...valuable tool for the supply chain to plan ahead and be in a more competitive position to win a share of UKCS contracts," the DECC has indicated.
A year of change
Business leaders in the energy sector are facing a challenging year ahead which will be driven by emerging markets in Russia and India and continuing demand for new technology in the exploration and production sector.
Looking ahead to oil industry prospects for 2011, energy sector companies have been surveyed by Deloitte about their predictions for the coming year and those are two of the primary themes that have emerged.
Large energy sector companies with a global footprint can expected to expand their markets with their niche skills but firms further down the supply chain may have to wait a while for activity to pick up again after a decline in drilling in the last couple of years, Deloitte observes.
"In 2011, the drive to secure global energy resources will likely make emerging markets the fastest-growing area for M&A activity.," Deloitte suggests.
Graeme Sheils, an oil sector analyst at Deloitte in Aberdeen notes that in both the UK sector and globally, there has seen considerable merger activity within the last 12 months.
“The global theme continues with a wave of activity in Africa, Asia and South America being followed by a second wave that involves state-owned companies from Russia, South Korea, Brazil and Malaysia, Sheils suggests.
"The third wave, which is only just beginning to take shape, involves national oil companies from India and the CIS region."
Source: Offshore247
No deepwater drilling ban for UK
UK Energy Minister Charles Hendry says a report by a parliamentary committee in deepwater drilling backs his view that no long term ban should be imposed.
"We note in particular that the committee supports the Government's view that a moratorium on UK deepwater drilling is not warranted," Hendry stated, responding to publication of the report by the Energy and Climate Change select committee which heard evidence last year into the state of the UK offshore drilling industry and the implications for the UKCS of the Deepwater Horizon disaster after the Macondo well blowout.
On the same day that parts of the final report from President Obama's Presidential Commission into the disaster were published, Hendry promised further reviews of the UK sector in the wake of the Presidential Commission findings.
"We looked at our regime and increased inspections immediately after Macondo and plan a further review once US reports and the detailed analysis of the factors which caused the Gulf of Mexico incident are available," Hendry said today.
But the UK industry is not off the hook entirely as the Energy Minister left open the possibility of further regulatory control if necessary in future.
He said: "This will look at how we can protect against the root causes of an incident of this nature and look carefully to see whether further steps need to be taken to reinforce our regulatory approach."
Source: Offshore
Rowan Norway extended
Contract terms for the Rowan Norway rig to operate in the UK sector of the North Sea have been extended by operator Xcite Energy which has secured the unit for production at the Bentley field.
Xcite signalled today that it has agreed to extend the letter of intent it holds on the Rowan Norway for another month until 15 January next year. If Xcite fails to agree to a definitive term for the rig by that date, it will be liable for a US $4 million penalty payable to Rowan Drilling subsidiary British American Offshore Limited (BAOL).
Rowan Norway is currently under construction and is due to be used as a permanent production facility at the UK Bentley by the end of next year, once a Bentley horizontal well, 9/3b-6z, has been tested.
But the planned testing programme has been hampered by bad weather and most recently by an operational issue related to an offloading hose, Xcite indicated earlier this week.
Source: Offshore247
Rising Costs of Oil Production Provides UK with Opportunity
Increases in oil-services costs offshore Norway in the past years have been "scary” and raise the risk that “a lot" of the Nordic nation's crude resources will be left underground, Oil Minister Terje Riis-Johansen said.
"Development costs have doubled since 2004, rig rates are about four times higher than they were in 2003, operational costs on the Norwegian shelf have increased by 60 percent since 2000,” he said today at a conference in Oslo. “The break-even price for new field developments typically stood at around $20 a barrel five years ago, while today that price is $50."
"Increased recovery requires a lot of drilling and drilling is, as everybody knows, extremely costly,” the minister said. “We've had a cost development on the Norwegian continental shelf which I actually would qualify as scary when we look at the last years."
Source: Bloomberg
Statoil considers exploration in new licenses
Statoil has been awarded operatorship for parts of eight new licenses in the UK. Two are close to Mariner, and the remaining are close to the Faeroe Island-border.
We are very pleased to secure this new Statoil operated acreage in the UK, senior vice president for global exploration, Tim Dodsen, says.
Two of the licenses are in the blocks 8/15 and 9/11D close to the heavy oil field Mariner, where Statoil already has operatorship. Here the company is considering development.
- The other blocks will further strengthen our position in the area between Statoil's licenses in the Faroes and the Rosebank field in UK waters, where Statoil is partner in the Chevron operated field, Dodsen adds.
Also other Norwegian companies were awarded new exploration acreage in the licensing round. These are; Noreco, Bridges and Rocksource in addition to Statoil.
Source: Oilinfo