Saturday, March 2, 2013

Report: 47 Tcf Gas Potential at Buru's Canning Permits

Buru Energy revealed Friday that RISC, an independent evaluation group, has completed an assessment of the prospective resources for all of the company's onshore permit areas in the Canning Superbasin.

The evaluation report confirmed that the Basin Centred Gas System in the Laurel Formation, spanning around 6,708 square miles (17,373 square kilometers), contains an unrisked gross recoverable volume of 47 trillion cubic feet of gas and 1,177 million barrels of condensate.

RISC has only considered the reservoirs in the overpressured part of the Laurel Formation in their analysis, Buru noted in a statement.

More work is required to quantify the resources in the extensive overlyinggas accumulation in the normally pressured section, generally above 8,202 feet (2,500 meters), Buru added.

RISC also stated its view that the existing analysis identified reservoirs which are a combination of conventional and unconventional reservoirs; the latter will likely to require stimulation.

Buru, in a joint agreement with Mitsubishi Corp, owns five permits that lie on the onshore Canning Superbasin. In November last year, the company signed an agreement with Western Australia's state government for EP 71, 391, 428, 431 and 436. The contract runs for 25 years, and comes with a separate 25-year extension option.

Buru said in November last year that the agreement provides a framework for the development of a project to deliver gas to a liquefied natural gas facility in the Pilbara, once sufficient gas has been identified to sustain domestic consumption. The JV is required to submit a proposal for the development of a domestic gas project and pipeline by June 30, 2016.

Quintella has reported on the upstream and downstream oil and petrochemicals markets from 2004. Email Quintella at quintella.koh@rigzone.com.

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Sea Trucks' Nigerian Unit, West African Ventures Win Erha North Contracts

Sea Trucks Group announced Friday the award of the Erha North contract to a consortium of West African Ventures, Sea Trucks’ principle Nigerian business and Subsea 7's Nigerian subsidiary.

The contract was awarded by Esso Exploration and Production Nigeria Ltd for the development of the Erha North field, located offshore Nigeria in water depths between 3,281 feet to 3,937 feet (1,000 meters to 1,200 meters).

West African Ventures' scope of work will be the installation of certain manifolds, provision of a DP3 accommodation vessel as well as the supply of several ancillary marine support vessels.Offshore activities are scheduled to start in 3Q, 2014.

Sea Trucks' President and CEO, Jacques J. Roomans, said: "We are very pleased with the award of this significant project which reflects the well established reputation of our indigenous business, West African Ventures as a reliable partner for subsea construction and accommodation projects in Nigeria."

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Oceaneering Bags BP Quad 204 Gig

Oceaneering International, Inc. announced that it has secured an order from BP Exploration Operating Company Limited (BP), a subsidiary of BP plc (BP), to supply umbilicals for BP's Quad 204 field development west of Shetland, United Kingdom. This order adds over $45 million to Oceaneering's Subsea Products backlog.

The order is for two riser and five infield umbilicals totaling approximately 11.8 miles (19 kilometers) in length. These will be used to supply electrical and hydraulic power and chemical injection to subsea trees and production manifolds located at the Quad 204 drill centers.

Product manufacturing is planned to be performed in three phases at the Oceaneering Umbilical Solutions facility in Rosyth, Scotland. The first phase is scheduled to commence in the first quarter of 2013 and the third phase is anticipated to be completed in the second quarter of 2015.

This order is the first issued by BP under a ten-year term Global Subsea Hardware Umbilical Agreement executed between BP and Oceaneering during the third quarter of 2012. Under the agreement, Oceaneering has committed to supply umbilicals and ancillary equipment and services to BP at mutually agreeable order specifications and terms.

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Tribunal Finds Ecuador in Breach of Legal Obligations in Chevron Dispute

Tribunal Finds Ecuador in Breach of Legal Obligations in Chevron Dispute

An arbitration panel in The Hague said Ecuador should have prevented plaintiffs in a $19 billion award against Chevron Corp. from taking their battle to other countries, and needs to justify why its government shouldn't be held responsible for the costs.

In 2012, an Ecuadorian court ruled Chevron was responsible for environmental damages in that country's Amazon region, a decision the oil company is contesting. The international tribunal, which is studying the issue of whether the ruling constitutes a violation of a bilateral investment treaty between the U.S. and Ecuador, had asked the country to keep the plaintiffs from suing Chevron in foreign courts while the appeal was pending. But the plaintiffs filed lawsuits against Chevron assets in Canada, Argentina and other countries--a move the tribunal decided was a breach of Ecuador's obligations and of its previous rulings. Now the tribunal is asking the country's government why it shouldn't be held responsible for the harm done by the lawsuits filed by the plaintiffs outside Ecuador.

The decision, issued Thursday, comes a few days after an Argentine court of appeals upheld an embargo, requested by the Ecuadorian plaintiffs, on Chevron assets in that country. It underscores the high stakes of a multidecade legal battle emmeshing one of the world's largest oil companies, a national government and Amazonian plaintiffs.

The ruling is a boost to Chevron's theory that if it loses the lengthy legal tussle with Amazonian plaintiffs, the Ecuadorian government should end up paying the costs. The company has said the ruling is fraudulent, and accused the Ecuadorian government of exerting pressure in favor of the plaintiffs in local courts.

"From the Chevron viewpoint, this makes sure that, at the end of the day, if they're on the hook, Ecuador is on the hook with them," said Ted Folkman, a litigator with Murphy & King who has followed the case.

Ecuador argues the international tribunal's order violates its constitution, because local courts are independent. A representative of the Ecuadorian government wasn't immediately available to comment. The Ecuadorian plaintiffs view the tribunal's decision as "unenforcebale."

"It arrogantly orders Ecuador's government to violate its own Constitution and quash a private civil litigation that resulted in the judgment against Chevron," said Karen Hinton, spokeswoman for the Ecuadorian communities.

Chevron said the tribunal's decision "confirms that the enforcement actions being pursued against Chevron in Argentina, Brazil, and Canada fly in the face of international law," said Hewitt Pate, Chevron vice president and general counsel. "It is not too late for the Republic to reverse course, declare the Lago Agrio judgment illegitimate, and address the real challenges facing its citizens."

The case stems from a decades-old dispute over environmental contamination in Ecuador allegedly produced by Texaco Inc., a company Chevron bought in 2001. Chevron denies the accusations and says it is the victim of fraud, while the plaintiffs say it is the oil company that committed fraud.

Copyright (c) 2012 Dow Jones & Company, Inc.

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BP Executive Director Steps Down

BP announced Thursday that Executive Director Byron Grote will retire from the company and step down from its board of directors on April 11.

BP Chief Executive Bob Dudley commented in a statement:

"Byron has played key roles at critical moments of the company's history, most notably in the integrations of Amoco and Arco, and more recently in guiding BP through the financial challenges following the incidents of April 2010. The company owes him a great debt of gratitude."

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Kansas Community College Explores Oil Industry

Oil exploration is starting to pick up in southwest Kansas, and Garden City Community College is poised to take advantage.

With the creation of its new Oil Technology Program, the college has a variety of certificates a student can earn, including certificates in transportation, production and an associate of applied science.

"As you know, we have a handful of companies here starting to look for workers. I don't think it's really ramped up yet, but that day is coming," Bruce Exstrom, GCCC vice president of instructional services, said about the increased oil activity in southwest Kansas.

The program is designed to not only attract students who are interested in entering the oil industry, but also those already in it who are looking to move upward.

"We have classes designed for someone out in the field already who wants to advance, maybe to management or refining," Exstrom said.

The college also offers the program for students who want to get into the oil industry and spend a couple of years at the college, said Exstrom, who added that the college still wants to establish partnerships with local oil companies to get a feel for what the industry is looking for.

"The curriculum is based on what is out in the field -- safety, coordination and production," he said.

He said the curriculum focuses a lot on safety.

"We're trying to provide a safe worker. It can be hazardous at times," he said.

Exstrom said the college is putting together an advisory committee to work alongside oil companies that will be based in Garden City.

"It's an exciting time. It's starting to ramp up. We just want to be ready for this," he said.

The Kansas Board of Regents approved the Oil Technology program last July.

The program is designed so students can take a set of core classes, then decide whether they want to focus on oil exploration or oil production.

Those who enroll, according to the newly approved plan, can develop real-world job skills in the process of drilling and extraction of oil from underground reservoirs.

Students will be able to earn stackable credentials and can choose an exploration certificate, involving 22 college credit hours, or a production certificate, including 36 credit hours. Either can lead to an associate in applied science degree, based on completion of 67 credit hours.

The curriculum will involve a series of classroom, lab and field courses covering safety, moving, set-up and operation of equipment used in mineral exploration.

Primary outcomes include understanding geological processes in the accumulation of oil reserves; discovering the options and procedures for fossil fuel exploration, drilling, well completion, production, recovery and processing; and building a thorough command of industry terminology.

Students also will learn how to operate basic electrical, hydraulic and fluid-dynamic equipment, as well as pumps, compressors, oil instrumentation equipment and oil processing equipment. Students will be expected to perform all industry work functions in compliance with safety protocols, and understand the economics of oil recovery and production, according to a release from the college.

The drilling component of the curriculum focuses on traditional drilling methods as well as directional drilling.  In directional drilling, an innovative new process, students will get an overview of wellbores and learn about two- and three-dimensional controls, drill string design, stuck pipe prevention and blowout prevention. Those who complete the program will be certified to work as geological technicians, petroleum technicians or roustabouts, according to GCCC.

Students concentrating on the oil production segment will pursue a production certificate or the oil technician associate degree in applied science. Students will learn about well completion, well site maintenance, recovery and production methods, in addition to hydraulics. GCCC officials have said directional drilling offers particular potential because it allows oil recovery where conventional vertical access isn't available and makes it possible to place multiple wellheads in one location for greater efficiency, as well as reduced cost. It also increases the exposed section length through a reservoir, by drilling at an angle.

Among specific courses are Math for Technicians, Applied Communication, Physical Geology, Introduction to Mechanics, Basic Hydraulics and Pneumatics, Electro-Hydraulics, Electro-Pneumatics, Electricity I and II, Drilling, Recovery and Production Methods, and other courses covering topics ranging from production and well completion to compliance with Occupational Safety and Health Administration requirements.

Job growth in oil exploration and production is expected to increase significantly in Kansas in the years ahead, according to industry projections. In addition, the U.S. Bureau of Labor Statistics has forecast the creation of 1 million new jobs by 2020 in oil and gas construction and extraction.

Starting wages in the field range from nearly $12 to more than $40 per hour, depending on qualifications, equating to potential annual earnings of greater than $80,000. Oil engineers with bachelor-level degrees command salaries as high as $97,000, according to the 2012 PayScale College Salary Report.

GCCC obtained the support of various industry partners in creating the program, including American Warrior, Chesapeake Energy, Cimarex Energy, and Petro Santander, Inc.  Representatives will serve on a program advisory board, and the companies will be called on to offer apprenticeships, assist in program development, help in obtaining equipment and, in some cases, provide equipment or facilities for on-site training, the release said.

Those interested in finding out more should contact the GCCC Technical Education Division, 276-9521 or 275-3259.

Copyright 2013 Garden City Telegram Distributed by Newsbank, Inc. All Rights Reserved

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Drillsearch Renews MD Contract, Discloses Employment Terms

Drillsearch Energy disclosed Thursday that it has extended the employment contract of its Managing Director Brad Lingo.

Lingo, who was appointed as Managing Director June 15, 2009, has agreed to enter into a new employment agreement.

Drillsearch's Chairman Jim McKerlie noted that Lingo's new remuneration package reflects his qualifications and experience while also reinforcing alignment with shareholder interests.

Lingo will draw $748,852 (AUD 725,000), inclusive of a superannuation of $25,833 (AUD 25,000), under his new employment agreement. In addition, Lingo will be able to earn up to an additional $309,870 (AUD 300,000) upon satisfaction of his annual targets.

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Statoil 'On Track' to Deliver 2.5M Barrels Per Day by 2020

Statoil 'On Track' to Deliver 2.5M Barrels Per Day by 2020

Norwegian major Statoil is on track to see production hit 2.5 million barrels of oil equivalent per day in 2020, according to a results statement released by the firm Thursday. The growth is expected to come from new projects in the period from 2014 to 2016.

However, Statoil CFO Torgrim Reitan cautioned in a presentation to analysts in London that the firm expects production this year to be lower than that achieved in 2012 for a variety of reasons including divestments and uncertainty about the resumption of production at the In Amenas facility in southern Algeria, which was the subject of a terrorist attack in January.

In Thursday's results statement Statoil revealed that it delivered equity production of just above two million barrels of oil equivalent per day (boepd) in 2012 – an increase of eight percent over 2011's figure of 1.85 million boepd.

Proved reserves at the end of 2012 stood at 5.422 million barrels of oil equivalent, which was close to 2011's figure of 5.426 million barrels. Statoil said that a total of 735,000 barrels were added last year through revisions, extensions, discoveries and acquisitions.

"2012 was a year of strong strategic and operational progress for Statoil. We grew our production by eight percent in 2012, in line with the target we announced in 2011, and we delivered strong earnings growth. We are well underway to deliver profitability on our ambition of producing more than 2.5 million barrels of oil equivalents per day in 2020," Statoil CEO Helge Lund commented in the statement.

Statoil is planning to spend around $19 billion on capital projects during 2013 and this will include the drilling of 50 exploration wells, the firm said.

Meanwhile, the company said it will conduct an investigation to determine the relevant chain of events before, during and after the In Amenas attack in order to enable it to improve its security, risk assessment and emergency procedures.

"The whole of Statoil is strongly affected by the terror attack. We continue to assist and support the families, friends and colleagues who have lost those dear to them. The safety of our staff and partners will remain our highest priority," Lund added. 

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

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BP Executive Director Steps Down

BP announced Thursday that Executive Director Byron Grote will retire from the company and step down from its board of directors on April 11.

BP Chief Executive Bob Dudley commented in a statement:

"Byron has played key roles at critical moments of the company's history, most notably in the integrations of Amoco and Arco, and more recently in guiding BP through the financial challenges following the incidents of April 2010. The company owes him a great debt of gratitude."

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Man Working at Carroll Site Crushes Hand

A worker on the Harvey oil-well site on Buttercup Road in Washington Township was injured Tuesday morning when his hand became caught in the main controls for the rig.

Carroll County Sheriff Dale Williams said his office received the call for assistance at 11:22 a.m. and his deputies responded, as well as Fox Township, Carroll County and Carrollton Village fire departments.

Williams said the man's hand was crushed and a piece of metal impaled his hand.

Williams said the injuries were not life-threatening and the main was transported by ambulance to a Canton hospital.

Copyright 2013 The Times Reporter Distributed by Newsbank, Inc. All Rights Reserved

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