DIPP Turns Down Oil Companies for Activities in India

Bharat Petroleum Corporation Limited, The Government of India has issued the following news release:

The commerce and industry ministry has rejected the demand of oil exploration firms to be given fiscal incentives such as subsidy for their activities in northeastern India. Oil companies such as ONGC, Oil India, Jubilant Energy and Assam Company urged the government to include exploration and production (E&P) business in the list of industries getting fiscal incentives under the North East Industrial and Investment Promotion policy (NEIIP).

The department of industrial policy and promotion (DIPP) has turned down the proposal saying oil and gas explorers do not manufacture products, government and industry officials said. DIPP said the government had decided not to expand the service sector under NEIIP since subsidies offered by the department was aligned to the national manufacturing policy to boost manufacturing. NEIIP provides subsidies to manufacturing and select service sector enterprises on condition that the beneficiary units should refund subsidies if they stop their activities within five years of commencing commercial production.

"Thus, the proposal to consider grant of subsidy for E&P units, which are not able to make successful discovery in the North East is not in harmony with the objectives of the scheme," the department said in a letter to the oil ministry. The subsidy policy was launched in 2007 to provide 10-year fiscal incentives that included 100% income tax and excise duty exemptions. The policy also provides capital investment and interest subsidies. Its benefits include reimbursement of insurance premium. But industries in the negative list are not eligible for these incentives.

"DIPP has asked the oil ministry to formulate its own scheme to incentivize exploration companies working in the north east," an oil ministry official said. But industry officials defended industry's position. "It is true that petroleum refineries are in the negative list of NEIIP, but refineries should not be confused with E&P," one official said. It appears that the intent of the policy was to exclude oil refinery from availing incentives, an industry official said. But due to the ambiguous language, it is being misinterpreted as to exclude crude oil and natural gas produced by upstream companies, the official said.

The northeastern region has huge hydrocarbons potential and an unambiguous fiscal incentive package would attract investments, executives of oil companies said. According to industry estimates, the region has about 5.75 billion barrels of oil reserves and more than 21 trillion cubic feet gas. The Assam-Arakan basin that covers an area of 116,000 square kilometers is highly prospective.

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Eni JV Turns on Taps at Orinoco Junin Field

PetroJunin, joint venture formed by PDVSA (60%) and Eni (40%), has started production from the Junin-5 giant heavy oil field, located in the Faja del Orinoco, the area with the largest untapped hydrocarbon reserves in the world. The block is located around 342 miles (550 kilometers) south east of Caracas and covers an area of approximately 164 square miles (425 square kilometers).

The Junín-5 block, currently under development, holds 35 billion barrels of oil equivalent (boe) of certified oil in place and is jointly operated by two joint ventures (Empresa Mixta) formed by PDVSA (60%) and Eni (40%): PetroJunín for the development and production and PetroBicentenario for the construction and operation of a refinery in the Jose Industrial Complex, with a 350,000 barrels per day capacity.

Today, with the first well on stream, the production start-up was achieved nine months ahead of the approved development plan for Phase 1 (early production phase). PDVSA and Eni plan to increase production to approximately 15,000 barrels a day by the year end and subsequently to 75,000 barrels a day by early 2015, through the drilling of approximately 180 wells.

The development of Phase 2 (full field) will bring production to a level of 240,000 barrels a day by the end of 2018. Throughout the expected 40 years of the field life, the drilling of nearly 1500 wells is planned.

The diluted crude oil of Junín-5 will be transported to PetroBicentenario's Refinery in Jose where it will be processed and converted into oil products (diesel, naphtha and LPG) to be exported.

In Venezuela, Eni is also co-operator in Cardón IV, the operating company which manages the super-giant Perla gas field. The current estimated Perla gas in place is approximately 17 Trillion cubic feet (Tcf), or 3.1 billion barrels of oil equivalent. Perla shareholders, following the entry of PDVSA in the project, will be PDVSA (35%), Eni (32.5%) and Repsol (32.5%).

Eni also holds a participating interest in Petrosucre, the operating company of the Corocoro offshore field (PDVSA 74%, Eni 26%), with a net production of approximately 10,000 barrels of oil per day.

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Eni JV Turns on Taps at Orinoco Junin Field

PetroJunin, joint venture formed by PDVSA (60%) and Eni (40%), has started production from the Junin-5 giant heavy oil field, located in the Faja del Orinoco, the area with the largest untapped hydrocarbon reserves in the world. The block is located around 342 miles (550 kilometers) south east of Caracas and covers an area of approximately 164 square miles (425 square kilometers).

The Junín-5 block, currently under development, holds 35 billion barrels of oil equivalent (boe) of certified oil in place and is jointly operated by two joint ventures (Empresa Mixta) formed by PDVSA (60%) and Eni (40%): PetroJunín for the development and production and PetroBicentenario for the construction and operation of a refinery in the Jose Industrial Complex, with a 350,000 barrels per day capacity.

Today, with the first well on stream, the production start-up was achieved nine months ahead of the approved development plan for Phase 1 (early production phase). PDVSA and Eni plan to increase production to approximately 15,000 barrels a day by the year end and subsequently to 75,000 barrels a day by early 2015, through the drilling of approximately 180 wells.

The development of Phase 2 (full field) will bring production to a level of 240,000 barrels a day by the end of 2018. Throughout the expected 40 years of the field life, the drilling of nearly 1500 wells is planned.

The diluted crude oil of Junín-5 will be transported to PetroBicentenario's Refinery in Jose where it will be processed and converted into oil products (diesel, naphtha and LPG) to be exported.

In Venezuela, Eni is also co-operator in Cardón IV, the operating company which manages the super-giant Perla gas field. The current estimated Perla gas in place is approximately 17 Trillion cubic feet (Tcf), or 3.1 billion barrels of oil equivalent. Perla shareholders, following the entry of PDVSA in the project, will be PDVSA (35%), Eni (32.5%) and Repsol (32.5%).

Eni also holds a participating interest in Petrosucre, the operating company of the Corocoro offshore field (PDVSA 74%, Eni 26%), with a net production of approximately 10,000 barrels of oil per day.

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Statoil Turns on Taps at Hyme Field

Statoil and its partners began production from the Hyme oil field in the southern part of the Norwegian Sea. Hyme is the second of Statoil's 12 fast-track projects.

"The field came on stream one month earlier than we assumed in the plan for development and operation (PDO). The project execution period from we decided to use Njord A as a tie-in platform and to first oil is thus slightly more than two years, which we are very pleased with," said Halfdan Knudsen, head of the "fast-track" portfolio in Development and Production Norway (DPN).

The "fast-track" projects consist of discoveries made close to existing fields. In the longer term the aim is to bring these projects from discovery to first oil within 30 months.

"We have now gained useful experience which helps us accelerate forthcoming development projects, and execution in 30 months will thus be feasible for most of the prospects to be drilled in 2013. We are now on schedule and within budget for Hyme and the other projects. Good portfolio management and good cooperation across the business areas are critical success factors," Knudsen said.

The Hyme field was discovered at Haltenbanken in June 2009, 11.8 miles (19 kilometers) north-east of the Njord A platform. It is tied in to existing infrastructure on Njord A. Hyme extends the production life of the Njord field from 2015 to 2020. The field development plan includes a production well and a water injection well drilled through a subsea template with four well slots. The installation of five new risers and Njord A modifications to receive Hyme production are also part of the project. The investments total some $800 million (NOK 4.5 billion).

"This development will revitalize the entire area, open for further expansion and increase the production life of Njord," Knudsen said.

Due to the high reservoir complexity an unconventional well solution has been chosen for Hyme. It involves the use of a multilateral well for optimal drainage of the reservoir.

"The chosen optimized drainage solution increases the estimated recoverable volumes from Hyme by about 17 percent compared with the assumption at the basis for the PDO. According to recent estimates Hyme contains some 30 million barrels of recoverable reserves. With the field's life expected to last beyond 2020, further volume increases may be expected at Njord. We have successfully delivered another high-quality fast-track project before schedule and below budget. Good cooperation with our partners and suppliers has been essential to this successful execution," said Kjetel Digre, head of the fast-track and subsea project portfolio in Technology, Projects and Drilling (TPD).

"Hyme has added good synergies in relation to the upgrading of the Njord A platform and the Njord low-pressure production project performed in 2012. The extensive Njord activities have been performed in parallel with the Hyme reconstruction. This was possible thanks to the use of a flotel moored up at Njord in the autumn of 2012, which helped ensure the necessary capacity for the performance of all work," Knudsen said.

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BP Turns On Taps Offshore Angola

BP reported Thursday that production has started from the PSVM development area in Block 31 offshore Angola.

Initial production will come from three production wells in the Plutao field and this is expected to ramp up to around 70,000 barrels of oil per day (bopd). PSVM is expected to build towards plateau rates of 150,000 bopd over the coming year, with the additional production coming from the Saturno and Venus fields in 2013 and Marte in 2014.

The International Monetary Fund also reported Thursday that it expects Angola's oil production to grow more than four percent in 2013 to 1.8 million bopd. Angola, Africa's second-largest oil producer after Nigeria, produced 1.73 million bopd last year, according to OPEC.

Commenting on the PSVM start up Thursday, BP Group Chief Executive Bob Dudley said:

"PSVM is one of the largest subsea developments in the world and was one of BP's key project start-ups for 2012 as we grow higher-margin production. Over the coming decade, we expect Angola, where we have extensive interests from exploration through to production, to be one of the main hubs delivering growth for BP."

BP Exploration Angola is the operator of the development with a 26.67-percent interest. Other holders in Block 31 include: Sonangol E.P. (25 percent); Songangol P&P (20 percent), Statoil Angola (13.33 percent), Marathon International Petroleum Angola (10 percent) and SSI 31 (5 percent).

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 Turns On Taps Offshore Angola

BP reported Thursday that production has started from the PSVM development area in Block 31 offshore Angola.

Initial production will come from three production wells in the Plutao field and this is expected to ramp up to around 70,000 barrels of oil per day (bopd). PSVM is expected to build towards plateau rates of 150,000 bopd over the coming year, with the additional production coming from the Saturno and Venus fields in 2013 and Marte in 2014.

The International Monetary Fund also reported Thursday that it expects Angola's oil production to grow more than four percent in 2013 to 1.8 million bopd. Angola, Africa's second-largest oil producer after Nigeria, produced 1.73 million bopd last year, according to OPEC.

Commenting on the PSVM start up Thursday, BP Group Chief Executive Bob Dudley said:

"PSVM is one of the largest subsea developments in the world and was one of BP's key project start-ups for 2012 as we grow higher-margin production. Over the coming decade, we expect Angola, where we have extensive interests from exploration through to production, to be one of the main hubs delivering growth for BP."

BP Exploration Angola is the operator of the development with a 26.67-percent interest. Other holders in Block 31 include: Sonangol E.P. (25 percent); Songangol P&P (20 percent), Statoil Angola (13.33 percent), Marathon International Petroleum Angola (10 percent) and SSI 31 (5 percent).

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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Second pond search turns up body near where Arvada man went missing

Font ResizeLocal NewsBy Jessica Fender
The Denver Postdenverpost.comPosted: 12/17/2012 07:35:00 PM MSTDecember 18, 2012 2:35 AM GMTUpdated: 12/17/2012 07:35:01 PM MST

A second search of the pond near the Westminster hotel where a 36-year-old construction worker went missing revealed a body in the water on Monday, said Westminster police investigator Cheri Spottke.

Crews are still working to recover the body from the icy water and have not yet identified the remains.

John Lucas Edwards went missing early Dec. 9 following a Christmas party at the Westin Hotel at 10600 Westminster Blvd.

A Westminster Fire Department crew initially conducted a sonar search of City Park Pond and was satisfied that Edwards' body was not there.

"But there was some ice on the water," said Spottke, noting the weather had warmed a bit in the meantime. "With the storm coming in, if we were going to send divers in, it had to be today."

The second search uncovered a body.

Edwards rented a room for his company's Dec. 8 holiday party. He was last seen around 3 a.m. Dec. 9, and witnesses said he appeared intoxicated.

He never made it to his Arvada home, and both his truck and belongings were discovered at the Westin after a missing persons report was filed.

City Park Pond, about a quarter mile from the hotel, is 18 feet deep and reached temperatures as low as 36 degrees.

Authorities at the time of Edwards' disappearance said they had no reason to suspect foul play.

Spottke said that until the body is recovered and identified, officials won't be able to determine cause of death.

"We've been working ever since he went missing," Spottke said.

Jessica Fender: 303-954-1244 , jfender

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Lone Tree shoplifting incident turns into hit-and-run

Font ResizeCops and CourtsBy Tom McGhee
The Denver Postdenverpost.comPosted: 12/16/2012 11:34:35 AM MSTDecember 16, 2012 6:35 PM GMTUpdated: 12/16/2012 11:34:46 AM MST

  Lone Tree police chased a pick up truck suspected in the hit-and-run of a Park Meadow's Mall parking valet but gave up the pursuit when it became too dangerous on Saturday.

The incident began at about 3:30 p.m. when a woman suspected of shop lifting at a JC Penney store left with an unknown amount of merchandise, according to a release from police spokeswoman Kristen Knoll.

The woman walked to a waiting Maroon and silver 1996 Chevrolet pick-up truck and got in.

The valet was standing in the ring road trying to take down the license plate number when the truck crossed the double yellow line, accelerated and hit the valet.

The valet was hurt, but not seriously injured, Knoll said.

Police tried to stop the truck on Park Meadows Center Drive and Yosemite Street but the driver refused to stop.

The license plate on the vehicle is 975 VNG. Anyone with information can call (303)841-9800.

Tom McGhee: 303-954-1671, tmcghee

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FracFocus Turns One!

A year ago this week the FracFocus.org online chemical disclosure registry was created, and what a year it has been: 130 companies logging in the chemicals used in the hydraulic fracturing of more than 15,000 wells. More than that, the site is information rich on fracking, groundwater protection, state regulatory efforts and more.

The registry was developed by the Groundwater Protection Council and the Interstate Oil and Gas Compact Commission.  Most importantly, it has been embraced by the oil and natural gas industry as a useful response to legitimate questions about the pressurized fluids – 99.5 percent water and sand, 0.5 percent chemicals – used to fracture subterranean shale formations, freeing natural gas and oil.

According to a report in The Oklahoman, the site has become a clearing house for state and federal regulators fielding questions about hydraulic fracturing. “That's what we intended,” said Gerry Baker, the  Interstate Oil and Gas Compact Commission’s associate executive director. Officials estimate about 75 percent of all wells drilled in the U.S. are accounted for on FracFocus.

Transparency equals information, which fosters confidence in communities where hydraulic fracturing is under way. Community support is an essential element in the process that is driving an energy revolution, seen in North Dakota, Pennsylvania, Texas, Ohio and other states.

Happy birthday, FracFocus – and many more!

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