Friday, July 12, 2013

Total Strikes Oil off Ivory Coast

Total Strikes Oil off Ivory Coast

France's Total reported Thursday that its Ivoire-1X exploration well, offshore Ivory Coast, has discovered high-quality oil.

Total said that the well, located in the west zone of Block CI-100, in 7,480 feet of water, found approximately 92 feet of net oil pay in a series of around 322 feet of Cretaceous reservoirs. The oil is light, with a gravity of 35 API.

Operated by Total E&P Côte d'Ivoire, Ivoire-1X is the first well drilled on the CI-100 block. It was drilled to a total depth of 16,550 feet. 

Total said the well confirms the extension into Block CI-100 of the already proved active petroleum system in the Tano basin that is home to several fields, including Jubilee in Ghana. 

The data acquired during drilling is being analyzed to develop an appraisal program for the reservoirs discovered and explore identified prospects further east in the block, near recent discoveries in Ghana. 

Total E&P Côte d'Ivoire operates the block with a 60-percent interest, alongside Yam's Petroleum, with 25 percent, and Petroci Holding, which holds 15 percent.

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SPE Celebrates the Differences of Women in Energy

The SPE London Section announces the 7th Annual Women in Energy event, to be held this year at the London South Bank University, May 9.

Entitled "Celebrate the differences – the unique qualities women bring to the workplace", this seminar presents an opportunity for networking amongst female workers across all energy related sectors, allowing them to benefit from sharing experiences and insights on gender-related career themes. The seminar is complemented by interactive skill workshops.  Keynote speakers this year are

Iman Hill, General Manager, Technical and Operational Services Directorate, Sasol;Oonagh Werngren, Operations Director, Oil & Gas UK; and Sarah Cook, Project Director, Fluor Ltd. 

Panelists for a discussion on the unique management qualities of women will be Hamish Wilson, Technical Director, SLR Consulting; Jill Lewis - CEO and MD, Troika International; Jim Ayton, Technical Services Director, OPC Ltd; and Deirdre O'Donnell, MD/Owner, Working Smart Ltd.

The Women in Energy Seminar is particularly noted for its range of interactive workshops, which this year are on the following topics:  

WILD Women in Leadership Development - why purr when you can ROAR? Presented by Tiffany Macedo-Dine of The WILD ConsultancyGoal Mapping - work out what really matters to you and how to get there Presented by Stephanie Saphin of Wight BlueSky ArtsCareer Planning and Development Presented by Anita Edmunds of PennaCommunication and Assertiveness - How to be Heard Presented by Helen Toogood of Hot Chilli ConsultingOn the Move – working and living in a Globalized World Presented by Claire Snowdon of Expat knowhow

The seminar begins at 8:30 a.m. with registration and coffee, and ends at 5:30 p.m. with networking drinks.

Tickets cost £40 for Members and £50 for non-members. There is a 10 percent discount for parties of 6 or more. Book online at www.katemcmillan.co.uk, or contact Kate direct for more details: katespe@aol.com or 07736 070066.

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Technip's 1Q 2013 Order Intake Falls 32%

French oilfield services provider Technip announced Thursday first quarter results that showed the company's order intake for the first three months of the year declined to EUR 2.9 billion ($3.8 billion) from EUR 3.3 billion ($4.3 billion) in 1Q 2012.

Order intake for Technip's onshore/offshore business declined by 32.4 percent to EUR 980.2 million ($1.3 billion) for 1Q 2013, although the firm's subsea business fared better with EUR 1.93 billion ($2.5 billion) of orders compared with EUR 1.86 billion ($2.4 billion) in 1Q 2012.

The firm's order backlog improved by 19.7 percent to EUR 14.8 billion ($19.4 billion) by March 31 compared to a year earlier.

Technip said its order intake during the quarter included a major EPCI contract for Moho Nord, offshore Congo, which combines two field developments. The firm also an offshore project in India, the Heera Redevelopment platform, which is to be installed offshore Mumbia, while Shell's Prelude Floating LNG project offshore Western Australia also contributed to its order intake.

Technip improved its net income for the quarter by 3.6 percent to EUR 116.2 million ($152 million) on the back of revenues that increased 14.2 percent to EUR 2 billion ($2.6 billion).

Technip CEO Thierry Pilenko commented in a company statement:

“In the first quarter we grew revenue in both our segments, reflecting the strong project awards over the last two years. Subsea performance reflected the early phases of recently won large contracts, the absence of major projects completing and some disruptions to offshore operations including for weather. In Onshore/Offshore there was steady progress on projects, including those in later phases such as the Lucius Spar and the Jubail refinery."

Pileno added that the next few months "are important in terms of operations", noting that in its Subsea business Technip is continuing to ramp up its newer projects and it is in the critical phases of its 2013 subsea projects in several regions, including Venezuela, the North Sea, Mexico and Australia.

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Breezer Preps for Fracture Stimulation at Jackson Well

Breezer Ventures Inc. announced that fracture stimulation is expected to commence shortly at Jackson Well 27 in Texas.

The fracture stimulation is intended to break apart the reserves allowing for a significant increase in the flow of oil. The process has proven to be highly effective in dramatically increasing production from the Tannehill and Moran formation in the area.

The status of five other wells was outlined in a previous operational update showing that three had been drilled and were undergoing completion. One was waiting to spud and one was in the drilling phase.

With six wells currently undergoing drilling, completing or fracture stimulation operations, the Company anticipates a further increase in revenues and reserves as these wells are brought into production. Combined with additional multiple proposals on other wells, the Company remains on course to build a significant oil and gas company focused on USA onshore formations, and in the process generate substantial value for shareholders.

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Anadarko Successfully Tests Sigsbee Escarpment with Phobos Well

Anadarko Successfully Tests Sigsbee Escarpment with Phobos Well

Anadarko Petroleum Corp. encountered approximately 250 net feet of oil pay in Lower Tertiary-aged reservoirs with the Phobos-1 well in the Gulf of Mexico.

The Phobos discovery marks Anadarko's third significant deepwater success in 2013, and is the first well in the previously untested Sigsbee Escarpment area of the Gulf of Mexico.

Drilled by Maersk Developer (UDW semisub) to a total depth of 28,675 feet in approximately 8,500 feet of water, Phobos is located in Sigsbee Escarpment Block 39 approximately 11 miles south of Anadarko's Lucius discovery, which is under development.

Phobos successfully tested a significant four-way structure in the Lower Tertiary.

"Phobos' close proximity to our Lucius project is expected to further enhance the economics of this potential future development," said Bob Daniels, senior vice president of international and deepwater exploration at Anadarko, in a statement.

Anadarko is operator of Phobos with a 30-percent working interest. Plains Exploration & Production Company owns a 50-percent working interest and ExxonMobil Corporation holds a 20-percent working interest.

Despite the challenges of exploration in the Lower Tertiary play, including deep well depths, high pressure, high temperature conditions and dense sub-surface salt, recent discoveries in the Lower Tertiary play in the Gulf of Mexico have helped confirm the potential for the deepwater Gulf play.

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Shell, India's ONGC Hold Talks on Opportunities in India

Shell, India's ONGC Hold Talks on Opportunities in India

LONDON - Royal Dutch Shell PLC said Thursday it has been in discussions with India's state-run Oil & Natural Gas Corp. about potential opportunities as it seeks to expand its presence in India, one of the world's fastest growing economies and where energy demand is expected to more than double over the next 25 years.

Executives at ONGC said they were in the process of agreeing a long-term alliance to jointly explore oil and gas production and were looking at both existing and new projects, but added that it was too early to say what form a potential tie-up will take.

If talks between Shell and ONGC are successful, it would mark Shell's return to exploration in India some 16 years after it sold its 50% stake in Rajasthan assets to Cairn for $7.5 million. The Rajasthan fields last year reached 175,000 barrels a day of crude oil production and Cairn aims to increase that to 300,000 b/d.

Talks between Shell and ONGC also mark increased interest on the part of big international oil companies in the country's oil and gas always sector and come as falling output from India's largest gas deposit in the Krishna-Godavari basin in the Bay of Bengal has hit supplies to the power and fertilizer sector.

The government of the energy-hungry nation is seeking to reduce dependence on oil and gas imports and is currently proposing to allow gas prices in India to be benchmarked to global rates, which would lead to an increase in prices and would benefit the companies involved in extraction.

In February, BP PLC and Reliance Industries Ltd. said they planned to jointly invest more than $5 billion over the next three to five years to boost declining gas output in the KG D6 block in the Krishna-Godavari field off India's east coast.

In 2011, BP spent $7.2 billion buying a 30% stake in 23 oil and gas production sharing contracts that Reliance operates in India, including the producing KG D6 block. The two companies also formed a joint venture to source and market gas in India.

In India, Shell currently has a small retail presence and is involved in developing a liquefied natural gas import and regasification terminal at Kakinada in Andhra Pradesh.

Copyright (c) 2013 Dow Jones & Company, Inc.

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Noble Energy 1Q Net Down 0.8% on Higher Costs

Noble Energy Inc.'s first-quarter earnings fell 0.8% as the oil-and-gas explorer's higher expenses counterbalanced stronger revenue from oil and condensates, as well as natural gas.

The company has been selling its noncore assets to focus its spending on higher-return areas, including horizontal drilling operations in the U.S. and offshore projects in the Gulf of Mexico, the Mediterranean, and West Africa.

Noble late last year said it would bump up capital spending by 11% in 2013 to $3.9 billion, and said its oil and gas output would grow at a compounded annual growth rate of 17%. About 60% of the capital expenditures were allocated for U.S. onshore projects, while 10% of the capital budget was targeted for its operations in the Eastern Mediterranean region.

Noble Energy reported a profit of $261 million, or $1.45 a share, down from $263 million, or $1.47 a share, a year earlier. Excluding hedging impacts and other items, earnings were down at $1.48 from $1.65.

Revenue rose 5.1% to $1.14 billion amid higher oil and natural-gas revenue.

Analysts polled by Thomson Reuters most recently projected earnings of $1.24 on revenue of $1.08 billion.

Average sales volumes from continuing operations rose to 245,000 barrels of oil equivalent a day, from 236,000 Boe/d. Average crude and condensate realized prices were down 8.2% and natural-gas realized prices rose 20%.

Copyright (c) 2013 Dow Jones & Company, Inc.

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Ice Gas: A Step Closer to Commercial Production

Ice Gas: A Step Closer to Commercial Production

The news in early March that a Japanese company had finally successfully extracted natural gas from methane hydrate deposits under the seabed offshore Japan was hailed as a breakthrough for the energy industry around the world. There are large deposits of methane hydrate, or "ice gas", in several locations around the planet which means, if successfully exploited, they could bring to many regions around the world the low gas prices currently seen in North America as a result of the shale gas boom.

Japan Oil, Gas and Metals National Corporation (JOGMEC) reported March 12 that it successfully extracted natural gas from methane hydrate deposits from around 1,000 feet under the seabed offshore Japan.

Methane hydrate is a compound in which a large amount of methane is trapped within a crystal structure made up of water, so forming a solid that is similar to ice in its composition (although it looks like slush). For methane hydrate deposits to form the right conditions in terms of pressures and temperatures are required. These conditions are normally found in four kinds of environment:

Sediment and sedimentary rock under Arctic permafrostSedimentary deposits along continental marginsDeepwater sediments of seas and lakes (e.g. the fresh water Lake Baijal, Siberia)Beneath Antarctic ice

There are some 40 trillion cubic feet of methane held in methane hydrate deposits under the sea in the eastern Nankai Trough, off the southern coast of the Japanese island of Honshu, according to JOGMEC. This is equivalent to around 11 years of the amount of liquefied natural gas that is currently imported into Japan.

JOGMEC has been working at the Daini Atsumi Knoll, off the coasts of the Atsumi and Shima Peninsula since February 2012. After acquiring pressurized core samples last summer, the company began an experimental flow test in March this year, successfully yielding gas from the methane hydrate deposits.

In order to achieve extraction, JOGMEC used specialized equipment to drill into and depressurize the methane hydrate causing the gas to separate. The gas was then piped to the surface.

JOGMEC hopes its experimental test will help it better understand dissociation behavior of methane hydrate under the seabed and the impact to the surrounding environment. A second offshore test is planned ahead of commercial production that could be achieved later this decade. However, a lot will depend upon whether the costs of extraction can be brought down to low enough levels to make commercial production viable.

While the Japanese government says that it is now planning a three-year study into how much ice gas it has within its territorial waters in the Japan Sea, a number of other countries have also been looking to exploit methane hydrate resources.

For example, last August, the U.S. Department of Energy (DOE) announced funding for 13 research projects across 11 U.S. states to help develop methane hydrate deposits as an energy source. At the time, U.S. Energy Secretary Dr. Steven Chu commented that although research on methane hydrates is still at an early stage, these research efforts could one day yield the same kind of benefits achieved by the shale gas boom after the country invested in researching shale gas in the 1970s and 80s.

Meanwhile, China is also investing millions of dollars into the study of methane hydrates.

The energy content of methane occurring in hydrate form is immense and could exceed the combined energy content of all other known fossil fuels (one cubic foot of methane hydrate contains approximately 160 cubic feet of natural gas), according to the U.S. DOE. But there is still the question of how big future production volumes could be. This is what the current project by JOGMEC should go some way towards determining, as will certain projects that the DOE is funding.

One of the projects that the DOE is helping to fund is being carried out Georgia Tech Research Corporation. This organization was granted $626,000 for a project that aims to understand the behavior of gas hydrates hosted in fine-grained sediments such as clay or silt, including how to evaluate extraction methods that could be used to produce gas from such sediments.

The U.S. government's strong research interest in methane hydrates is not surprising given that the U.S. Geological Survey (USGS) has identified several accumulations of methane hydrates offshore United States and Central America. Meanwhile, in the North Slope of Alaska the USGS estimates a mean resource of some 85 trillion cubic feet of natural gas held within methane hydrate deposits.

As well as offshore Japan and the Russian Far East, accumulations of methane hydrates have also been discovered in the Black Sea and off the coast of West Africa. But there are plenty of other locations around the world where methane hydrates are thought likely to occur.

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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Range Proposes Tie-up with International Petroleum

Range Resources is proposing a tie-up with International Petroleum that will see the combined group focused on the expansion and development of projects in Russia, Trinidad and onshore Africa. Range said Thursday that a share-swap deal between the companies would see International Petroleum taken over for approximately $108 million.

Range already holds assets in the Republic of Georgia, Texas, Trinidad, Colombia and Guatemala, while International Petroleum has assets in Russia, Kazakhstan and Niger. The merged entity would hold estimates proved (1P) reserves of 23.6 million barrels, with proved, probable and possible (3P) reserves amounting to 264 million barrels.

The combined production for the enlarged group would be approximately 1,000 barrels of oil equivalent per day, based on current output.

Key assets for the new business will include International Petroleum's interests in five projects in Russia. During the period from August 2012 to December 2012, the firm produced 25,000 barrels of oil from well number 52 at its 100-percent owned Zapadno-Novomolodezhny Project at an average flow rate of 197 barrels of ol per day.

The new business will see Chris Hopkinson appointed as managing director. Hopkinson, the current CEO of International Petroleum, has more than 23 years' experience in the oil and gas industry, including management positions with BG Group, TNK-BP, Yukos, Imperial Energy Corporation and Lukoil.

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CAMAC: Data Acquisition Completed at Kenya Blocks

CAMAC Energy Inc. announced that Sander Geophysics Limited has completed shooting airborne gravity and magnetic geophysical surveys on the Company's Kenya onshore Lamu Basin Blocks L1B and L16. The data acquisition covers essentially the entire 4,683 square miles (12,129 square kilometers) in Block L1B and the entire 1,395 square miles (3,613 square kilometers) in Block L16 and satisfies the gravity and magnetic survey requirements for each Block under the relevant Production Sharing Agreements.

The Company expects to receive initial results of the shoot in the third quarter of 2013. Results will be used to optimize the placement of 2-D seismic lines by identifying faults, basement structures and intra-sedimentary volcanic layers and/or intrusions.

"I am pleased that we completed the acquisition of the airborne gravity and magnetic geophysical surveys in Kenya safely, on time, and under budget," said Senior Vice President of Exploration and Production Segun Omidele. "Our geophysical team will now work with SGL to interpret the data and delineate optimal areas for 2-D seismic acquisition."

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