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FairWest Energy Corporation announced that Vernon R. Fauth has resigned as the Chairman and Chief Executive Officer and as a director of FairWest effective Friday, February 8, 2013. FairWest extends its thanks to Mr. Fauth for his service to the Company and wishes him all the best in his future endeavours.
Saturday, March 9, 2013
Archer Wins Statoil Rig Contract
Oilfield services supplier Archer announced Monday it has secured a contract with Statoil for the permanent plugging and abandonment of 12 gas wells on the Heimdal field in the Norwegian North Sea. The firm said the work will use its modular rig, the Archer Topaz.
The total contract value, including the startup, operating and decommissioning phases, is estimated at USD 115 million. Operations are expected to begin in the second half of 2014 and the contract duration is 34 months with four option periods of three months each.
Carrying out plugging and abandonment operations on a modular rig is a first for Archer and the industry as a whole. The firm said it represents a major advancement for the industry and will see safer, faster, more efficient plugging and abandonment operations with fewer people on board.
Archer said its Archer Topaz rig has been developed to meet the specific requirements of the Heimdal contract which includes flexibility for the client as regards quick installation and removal times.
Kjetil Bjørnson, Archer's general manager for the North Sea region, commented in a company statement:
"This modular rig contract for Archer in the North Sea represents an important strategic move in the direction of offshore plugging and abandonment solutions. We are excited to secure our first modular rig contract in the North Sea, which is the market the modular rig was designed for."
The rig will be operated by Statoil along with its partners Total, Centrica and Petoro.
Lundin Spuds Jorvik Exploration Well
Lundin Petroleum announced Monday that it has spud an exploration well targeting its Jorvik prospect in the Norwegian North Sea. Well 16/1-17, on production license 338, is located east of the Edvard Grieg field.
The main objective of well 16/1-17 is to prove the presence of oil-bearing sandstones and conglomerates in a basin directly east of Edvard Grieg. Lundin estimates that the Jorvik prospect contains un-risked, gross prospective resources of 46 million barrels of oil equivalent. Lundin, as operatorm, holds a 50-percent working interest in PL 338 while Wintershall Norge and OMV hold 30 percent and 20 percent respectively.
On a day that the Swedish company made a number of announcements, Lundin also revealed that it is to test appraisal well 16/3-5 on production license 501 in the southeastern part of the Johan Sverdrup discovery after it reached its target depth.
Lundin said the appraisal well has drilled through reservoir sections consisting mainly of good quality Volgian reservoir sand and Zechstein carbonates. The top of the Volgian reservoir sandstone was found at 6,210 feet below mean sea level. The total gross reservoir column is approximately 98 feet, of which 46 feet is gross Volgian reservoir.
The oil-bearing Zechstein limestone is in pressure communication with the overlying sand and provides potential upside resources, according to Lundin. Oil has been sampled in both reservoir zones and the well will now drill stem test the two zones.
The well is being drilled by the Bredford Dolphin (mid-water semisub) rig and the testing will take approximately 20 days.
Meanwhile, Lundin added that it will not provide further updates on contingent resources at the Johan Sverdrup discovery since the working operator for the field, Statoil, has indicated that it plans to release details of updated resources later in the year, once conceptual development studies are completed.
"We feel it is appropriate that the working operator of Johan Sverdrup provide updated resource numbers. As the operator of PL501 we continue with our appraisal drilling program which provides new information for both development planning and recoverable resources," Lundin CEO Ashley Heppenstall commented in a company statement.
"The results of the appraisal drilling to date taken as a whole lead us to the view that the current most likely mid case Johan Sverdrup resources located in PL501 will be within the lower half of the previously guided 800-to-1800 million barrel of oil equivalent range. We also believe that the resource calculation range remains wide."
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.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.For More Information on the Offshore Rig Fleet:
RigLogix can provide the information that you need about the offshore rig fleet, whether you need utilization and industry trends or detailed reports on future rig contracts. Subscribing to RigLogix will allow you to access dozens of prebuilt reports and build your own custom reports using hundreds of available data columns. For more information about a RigLogix subscription, visit http://www.riglogix.com/.
Eni CEO to Rethink Structure of Saipem Relationship
NEW YORK - Eni SpA is rethinking the structure of its relationship with oil-services provider Saipem SpA in light of a criminal inquiry into the company for alleged bribes of Algerian officials, Eni Chief Executive Paolo Scaroni said Monday.
"What has happened leads us to think again and look again at the situation," said Mr. Scaroni in response to a question about Eni's stake in Saipem. "There is nothing worse than having no control and full responsibility."
Last week Milan prosecutors placed Mr. Scaroni under investigation as part of the Saipem inquiry. Prosecutors are investigating whether Saipem, which is 43% owned by Eni, paid bribes to secure billions of dollars in natural-gas contracts over a period of years leading up to 2009, according to people familiar with the investigation.
Mr. Scaroni and representatives from Eni said that they believe he is being investigated due to a series of meetings he had with Algeria's oil minister Chekib Kheli. On three or four occasions, Mr. Scaroni said, Mr. Kheli was accompanied by Farid Bedjaoui, who was introduced to Mr. Scaroni as a "personal assistant."
On Friday, Reuters first reported that the investigation into Mr. Scaroni was based on meetings with Mr. Bedjaoui, who allegedly distributed bribes to win gas contracts in Algeria.
In a statement Thursday, Eni said "Eni and its CEO declare themselves totally unrelated to the object of the investigation."
Mr. Scaroni said Monday that he and the company are fully cooperating with authorities but Eni will not conduct its own internal probe.
"We have nothing to investigate," he said. He also said that he never discusses Saipem's business during meetings with customers or other business contacts.
"Saipem has always been managed hands off completely," he said.
Mr. Scaroni said he learned in November that Saipem had a brokerage agreement in place since 2007, which could allow intermediaries to be paid to help arrange contracts.
Eni, he said, "does not have any intermediation contracts, they are forbidden." He said that when he learned of Saipem's arrangements, he "acted immediately" by contacting the chairman of Saipem.
Copyright (c) 2012 Dow Jones & Company, Inc.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.Pink and purple pigments act as sunscreen for corals
7 February 2013, by Tom Marshall. http://planetearth.nerc.ac.uk
The chemicals that give some corals their luminous pink and red colours also protect them from damage caused by too much sunlight, scientists have shown.
The idea isn't altogether new, but this is the first conclusive evidence for it. Corals need light to survive, but too much can kill them, so they've evolved various countermeasures.
This research adds another to their arsenal – chemicals known as chromoproteins (CPs), which turn out to absorb potentially harmful portions of the electromagnetic spectrum.
Smith, E.G., D'Angelo, C., Salih, A., Wiedenmann, J. Screening by coral green fluorescent protein (GFP)-like chromoproteins supports a role in photoprotection of zooxanthellae. Coral Reefs. DOI: 10.1007/s00338-012-0994-9
Lundin Spuds Jorvik Exploration Well
Lundin Petroleum announced Monday that it has spud an exploration well targeting its Jorvik prospect in the Norwegian North Sea. Well 16/1-17, on production license 338, is located east of the Edvard Grieg field.
The main objective of well 16/1-17 is to prove the presence of oil-bearing sandstones and conglomerates in a basin directly east of Edvard Grieg. Lundin estimates that the Jorvik prospect contains un-risked, gross prospective resources of 46 million barrels of oil equivalent. Lundin, as operatorm, holds a 50-percent working interest in PL 338 while Wintershall Norge and OMV hold 30 percent and 20 percent respectively.
On a day that the Swedish company made a number of announcements, Lundin also revealed that it is to test appraisal well 16/3-5 on production license 501 in the southeastern part of the Johan Sverdrup discovery after it reached its target depth.
Lundin said the appraisal well has drilled through reservoir sections consisting mainly of good quality Volgian reservoir sand and Zechstein carbonates. The top of the Volgian reservoir sandstone was found at 6,210 feet below mean sea level. The total gross reservoir column is approximately 98 feet, of which 46 feet is gross Volgian reservoir.
The oil-bearing Zechstein limestone is in pressure communication with the overlying sand and provides potential upside resources, according to Lundin. Oil has been sampled in both reservoir zones and the well will now drill stem test the two zones.
The well is being drilled by the Bredford Dolphin (mid-water semisub) rig and the testing will take approximately 20 days.
Meanwhile, Lundin added that it will not provide further updates on contingent resources at the Johan Sverdrup discovery since the working operator for the field, Statoil, has indicated that it plans to release details of updated resources later in the year, once conceptual development studies are completed.
"We feel it is appropriate that the working operator of Johan Sverdrup provide updated resource numbers. As the operator of PL501 we continue with our appraisal drilling program which provides new information for both development planning and recoverable resources," Lundin CEO Ashley Heppenstall commented in a company statement.
"The results of the appraisal drilling to date taken as a whole lead us to the view that the current most likely mid case Johan Sverdrup resources located in PL501 will be within the lower half of the previously guided 800-to-1800 million barrel of oil equivalent range. We also believe that the resource calculation range remains wide."
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.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.For More Information on the Offshore Rig Fleet:
RigLogix can provide the information that you need about the offshore rig fleet, whether you need utilization and industry trends or detailed reports on future rig contracts. Subscribing to RigLogix will allow you to access dozens of prebuilt reports and build your own custom reports using hundreds of available data columns. For more information about a RigLogix subscription, visit http://www.riglogix.com/.
Private Sector Plays Bigger Role In China Energy Sector
BEIJING - Privately-held enterprises are playing a bigger role in China's energy sector, which has been long dominated by state-owned businesses, a report Sunday from state-run Xinhua news agency said.
Data from the China Petroleum and Chemical Federation showed 32 private enterprises had entered China's oil mining industry by August 2012, as well as nine in the natural-gas sector and 64 in commercial activities related to oil and gas exploitation, it said.
The higher profile of the private sector came after the State Council issued new guidelines in May 2010 to encourage private investment in the industry, a report this weekend by China National Petroleum Corp. said.
Some 877 private enterprises are involved in processing of crude oil and oil-related products, including 50 privately-owned refineries, with a combined capacity accounting for 7.1% of the country's total, the Xinhua report said.
Six private enterprises were included in the national strategic oil reserve storage system for the first time in 2011, it added.
Copyright (c) 2012 Dow Jones & Company, Inc.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.Rigzone Crossword for Week of Feb. 4-8
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Galp Plans 'Intensive' Drilling Campaign for 2013
Portugal's Galp Energia reported Monday that it is planning an intensive exploration campaign for 2013. Several "high impact" wells are scheduled for the year, not only in mature, world-class basins but also in frontier areas, such as the Rovuma basin in Mozambique, the pre-salt Santos basin and the Potiguar basin in Brazil, said the company.
Reporting its results for the fourth quarter of last year, Galp said its net profit for 4Q 2012 increased by 10 percent year-on-year to EUR 83 million. The firm said that an improved performance from its exploration and production business segment, including increased oil and natural gas production in Brazil, contributed to this positive trend.
Galp added that, so far, during 1Q 2013 the firm's working-interest production should reach around 24,000 barrels of oil equivalent per day – which would be in line with 4Q 2012.
The company also said that it planned to expand and diversify its exploration portfolio to underexplored areas with relevant potential, such as Namibia and Morocco.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.Can Leak Detection End the Pipeline Impasse?
Pipelines used to be things that were just built without blinking. It is said that there are enough pipelines now in the US to encircle the Earth 25 times with enough left over to also tie a bow around it. Today, getting a pipeline built is not so easy - there are too many environmental concerns and the industry has become highly polarized. But here's one thing that could bring everyone together: pipeline safety technology. And it's something we all want, especially for those who live along the thousands of miles of aging pipeline routes that carry hazardous liquids.
Spawned by research that started in space, remote-sensing technology designed to detect dangerous leaks in pipelines has the potential to provide the neutral ground for decisions to be made and consensus to be formed. The clincher: This technology is not only affordable -it saves money and could eventually save the industry.
In an exclusive interview with Oilprice.com, Adrian Banica, founder and CEO of Synodon - the forerunner in leak detection systems - discusses:
How a technology that started in space has the potential to quell intensifying protestsWhy Keystone XL will eventually be a reality - sooner rather than laterHow remote sensing technology can fingerprint pipeline leaksHow remote sensing technology can find the little leaks before they become big leaks—at no extra costWhy North America's new pipelines aren't the problem and why the focus should be on aging pipelines that are going to experience a lot more leaksHow this technology could bring the industry and environmentalists togetherHow external leak detection can save lives in high-risk areasJames Stafford: Now that pipelines are the hottest topic on the oil and gas scene and have found themselves on the frontline of conflict between environmentalists and the industry, high-tech leak detection systems such as Synodon's remote sensing technology seem to be offering a way out of the chaos. Can you put this into perspective for us?
Adrian Banica: Yes. In North America alone, there are upwards of a million kilometers of transmission pipelines - and this does not even count the gathering and distribution pipelines. What we offer is attractive to both sides in this conflict: environmentalists want it and the industry can afford it.
Methods for inspecting pipelines have existed for many decades. What we're providing is a better way of doing it. Synodon's technology offers an accurate and precise method of oil and gas leak detection. This technology detects small leaks before they become big leaks.
James Stafford: In layman's terms, how does it work?
Adrian Banica: It is relatively simple. Synodon has developed a remote sensing technology that can measure very small ground level concentrations of escaped gas from an aircraft flying overhead. This "realSens" technology is mounted on a helicopter and piloted by GPS over a pipeline.
Think of this gas sensor as a big infrared camera that is particularly adept at detecting very, very small color changes in the infrared spectrum. The color changes that we detect are caused by various gasses that the instrument looks at. Every gas in nature absorbs and colors the infrared light that passes through it in a very specific way. From the shade of the color, we can also infer how much methane or ethane we can see with our instruments. In effect, it's like a color fingerprint of the gas.
James Stafford: Can you give us a sense of how this technology has evolved into what it is today—essentially the potential tool for bringing environmentalists and industry leaders together over the pipeline issue?
Adrian Banica: Yes. It started in space. Back in the 1990s, I was aware of technology being developed for various space programs, including Canada's and NASA's. I was looking for technologies that could solve oil and gas problems, but that were also novel, unique. That is how the whole idea started: It was matching a technology that the Canadian Space Agency funded to develop an instrument that measured carbon monoxide and methane from orbit.
So the idea then was if one can detect methane from space, why couldn't we adapt that technology to detect methane by flying it on a plane? In 2000, I founded Synodon in order to monetize and commercialize this.
James Stafford: How effective are automated leak detection systems?
Adrian Banica: They are typically only able to detect high level leaks above 1% of the pipeline flow. They measure the volume of the product that passes a sensor (flow measurements) and the pressure in the pipeline--if there is a leak the pressure will be lower downstream from it, among other things. However, as a recent report from the Department of Transportation in the US points out, these systems only detect a leak at best about 40% of the time, irrespective of how big a leak is.
It is also important to differentiate between catastrophic leaks and small leaks. For catastrophic leaks, most pipelines use these flow meters which operate 24/7. But smaller leaks can only be detected by performing an above-ground survey either by foot patrol, vehicle or aircraft. The predominant technologies used would be sampling gas sensors, thermal cameras, laser detection or our remote sensing system.
James Stafford: So this remote sensing technology uses a sort of "fingerprinting" to detect leaks, but we understand that it has much more to offer the industry …
Adrian Banica: Yes. The core offering is the technology we developed for natural gas and liquid hydrocarbon leak detection, but there is a basket of services designed to reduce the overall costs for our clients. During our leak detection surveys, we collect a lot of different types of data such as visual images, thermal images and very, very accurate GPS information. We've repackaged all those data sets into new value-added products.
We can provide these extra services without incurring additional costs.
For instance, we could offer some of those services for new construction, in which case it would speed up the process of getting all the information required for the necessary regulatory filings.
The most important thing, as I mentioned earlier, is trying to find small leaks before they become large leaks. All our services and all the data we provide are geared towards preventative maintenance. We sought to add services beyond leak protection because all pipeline operators still need to get their other data sets from somewhere. We are consolidating everything they need in a very cost effective and efficient manner.
James Stafford: A late-2012 study on leak detection by the U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration (PHMSA) has brought this subject to the forefront. Dr. David Shaw, one of the report's authors, says that pipeline leaks, ruptures, and spill are "systematically causing more and more property damage…in bad years you have $5 billion in damages due to pipeline-related accidents". The logic of the study is that pipleline operators could be spending 10 times more on leak detection given what kind of damages they are being awarded now.
Adrian Banica: Yes, the study makes the most valid point here, and that is that leak detection systems represent a bottom line savings, not an expense. For instance, Dr. Shaw has pointed out that pipeline companies would likely be justified in spending $10 million per year for every 400 miles of pipelines because they are already spending more than that on public property damage.
We have demonstrated that we can detect a leak that is less than 1 liter/min or 380 gallons/day. If our technology was deployed every 30 days and the leak were to happen in the middle of this period (on average), the total spill would be 5,700 gallons (380x15 days), which is 50 times smaller than the standard technology daily leak rate. That's a huge difference.
Another difference is that pipeline operators pay around $12 per hour to have personnel walk the pipeline, and they can only catch leaks that are close enough for them to see.
James Stafford: Could leak detection systems also save lives?
Adrian Banica: Yes. The PHMSA study points out that 44% of these old hazardous liquid pipelines are in High Consequence Areas (HCAs)—which means that peoples' lives are at risk if they blow up. We're talking about 44% of over 170,000 miles of these pipelines. On a public platform, this alone should lend a new urgency to the leak detection debate. The point is that remote—or external—sensors can head off a dangerous leak faster than an internal system.
The challenge then is to convince pipeline operators to adopt external technologies that actually detect leaks rather than relying on the inconsistencies of visual detection, which sooner or later would see the pools of oil, but it might be a while.
James Stafford: Is the market ready for this technology?
Adrian Banica: The market is ready, but not necessarily because of leak detection—it's the overall basket we discussed earlier.
There is a tremendous need in the industry for remote leak detection. But we had to account for budget constraints within our potential clients. We think we've developed a technology that's very capable of providing the information our customers are looking for and doing so at a competitive price they are willing to pay.
We've been operating on the North American market for the last 2.5 years. It's a very large market that has lately been in the eye of the media and the environmentalists. We're talking about over 55 companies in Canada and almost 700 pipeline operators in the US, where some 100 companies operate or control roughly 80% of the pipeline infrastructure. It is also a regulated market, and regulators require operators to perform some level of leak detection surveys.
James Stafford: Will Keystone XL—or the San Bruno pipeline explosion—have any notable impact on the regulatory environment or the market for remote sensing technology?
Adrian Banica: Personally I don't think that either of these will impact the leak detection practices in the industry. Rather, the driver will be the aging pipelines which will continue to have incidents and spills which the public will not accept.
James Stafford: And how is this playing out on the regulatory scene?
Adrian Banica: Congress passed a new law a year ago on this topic. The US regulators have yet to act on new regulations based on this law, but the trend is indeed there. Pipeline companies are concerned about potential upcoming new regulations and are working with the regulators to try and come up with proactive solutions and preempt their moves. There are a lot of discussions going on in the US on this topic right now and the regulator has proposed a set of new rules which are out for comment and discussion in the industry. It is a slow and drawn out process.
James Stafford: Everyone is waiting for the Obama administration to make a decision on Keystone, and while most analysts seem to think it will be given the final green light, the protest movement shows no sign of letting up. How do you see this playing out?
Adrian Banica: With the governor of Nebraska now approving it, I think the administration has no choice and no excuses for not approving it.
James Stafford: Would regulations governing pipeline safety actually boost support for Keystone XL?
Adrian Banica: Personally, I don't think so. The most vocal opposition for Keystone comes from the side of the environmental movement that does not want to see the pipelines build in order to decrease our overall dependence on oil rather than their concern for spills. So it is a philosophical position based on decreasing CO2 emissions rather than one based on spills in the environment which will not be appeased by regulations.
James Stafford: What about any potential regulatory protection leak detection systems could offer pipeline companies?
Adrian Banica: The benefit to our customers is that they can demonstrate due diligence and that they have employed the best techniques available to ensure pipeline integrity. They will be covered if there is any court action or regulatory action. The value of our data in case something does happen could be quite substantial.
There may be small differences in the regulations with the US being somewhat stricter and tighter than the Canadian regulations. So there are a few more incentives for US based customers to use our service.
James Stafford: Protests continue over the Enbridge pipeline in Vancouver, for instance. How could this play out. Could big pipeline players like Enbridge be able to embrace something like your technology to quell some of those protests?
Adrian Banica: This is a good case in point. Yes they absolutely could, and should. I'm very firm on that answer and I think they are looking at it. Enbridge is a customer of ours already in the United States and they're very aware of what we offer and do.
James Stafford: So these are early days for commercial viability?
Adrian Banica: These are very early days, and we have just turned the corner from a science concept into something that is commercially realizable. We spent 2011 and 2012 working very hard to penetrate the industry and to convince clients that this is not a science project anymore—this is a genuine commercially viable technology. We are now starting to see the adoption of our technology and services. So I believe we are at the tipping point and by no means do I think that shareholders have missed the boat.
James Stafford: Adrian, thank you for your time. This has been a very interesting discussion and the topic is one we will be following closely over the coming months. Hopefully we will get a chance to talk later in the year to see if any of the developments discussed have come to pass.
Adrian Banica: Absolutely, I'd be delighted to catch up later in the year.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
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