Tuesday, May 21, 2013

MOG Extends Gas Sales Contract with Repower

Italy-focused Mediterranean Oil & Gas (MOG) reported Thursday that its Medoilgas Italia subsidiary has signed a gas sales contract that will see all the company's production from its Guendalina gas field sold to Repower Italia from Oct. 1. 2013 until Sept. 30, 2014.

Repower has already purchased all production from Guendalina since April 1, 2012 to Sept. 30, 2013 under the firms' existing deal.

The new contract includes an option for the company to sell all or part of its onshore Italy gas production that is connected to the Italian gas distribution network to Repower at the same payment terms. Currently, around 75 percent of the company's onshore Italy gas production is connected to the gas distribution network with the remaining 25 percent sold to local customers.

MOG Chief Executive Dr. Bill Higgs commented in a company statement:

"We are very pleased to renew our relationship with Repower until the end of the thermal year ending in 2014. Repower has proven to be a good customer in what continues to be a challenging gas market in Italy."

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Noreco Nears Huntington First Oil

Norwegian Energy Company ASA (Noreco) reported that the Huntington field development is approaching first oil.

All risers are connected to the subsea facilities, and consequently the entire Huntington system is fully connected from the wells to the FPSO Voyageur Spirit. The final subsea preparations for first oil and pre-commissioning are being finalized prior to start up which is anticipated shortly.

The operator projects first oil by the end of March 2013. This projection is dependent on weather conditions and completion of final technical work according to plan. After a ramp-up period the field is expected to produce around 6,000 barrels oil equivalents per day net to Noreco.

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National P-400 Swivel – Rebuilt

National P-400 Swivel, rebuilt with data book.

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Total Powers up New Supercomputer

French major Total announced that it is inaugurating its new Pangea supercomputer Friday. The computer, located at the company's Scientific and Technical Center in Pau, France, will make Total one of the top 10 international firms in terms of computing power, it said.

The $77.5 million-investment in the new computing power is aimed at improving the time it takes to model subsurface and simulate the behavior of reservoirs, as well as improving the precision of these activities. The Pangea supercomputer was commissioned on 17 January for the Seismic Imagery and Interpretation Department of Total's Center for Hydrocarbon Research. It will be used as a tool to assist decision-making in the exploration of complex geological areas and to increase the efficiency of hydrocarbon production in compliance with safety and environmental standards, Total added.

Designed by Silicon Graphics, the supercomputer has a computing capacity of 2.3 petaFLOPS– meaning it can perform one million, billion simple calculations (or floating-point operations) per second. It will have 110,000 CPUs and required 2.8 megawatts of electric power, with heat generated from the computer recovered to provide all the heating the Scientific and Technical Center needs.

The Pangea computer should beat BP's new high-performance computing center that it began building at its Westlake Campus in Houston, Texas, in December. The HPC – also to be used for processing seismic and geological data – is designed to process information at a rate of up to two petaFLOPS. BP expects this to be ready in mid-2013.

Ahead of the inauguration Friday, Total Upstream President Yves-Louis Darricarrère, commented in a statement:

"We are proud of this leap forward in our performance which positions us in the vanguard of high technology at international level. This supercomputer – 15 times more powerful than its predecessor – has been specifically designed to meet the main technical challenges facing our industry. Its intensive computing capacity constitutes a key competitive asset that is an integral part of the group's bold exploration strategy."

Currently, the world's fastest supercomputer is the non-commercial Cray Titan – which is used for scientific projects at the Oak Ridge National Laboratory in Tennessee and was built with funding from the US Department of Energy. The Titan has a processing speed of 17.59 petaFLOPS.

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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Premier On Track for 75,000 Barrels Per Day

UK oil and gas independent Premier Oil confirmed Thursday production guidance of between 65,000 and 70,000 barrels of oil equivalent per day (boepd) for 2013.

Reporting its final results for 2012, Premier said that it should achieve an exit rate for 2013 of 75,000 boepd once its Huntington and Rochelle fields in the North Sea come on stream. First oil is expected from Huntington at the end of this month, while Rochelle is now expected to be on stream around mid-year after storm damage occurred to the initial development well on the field.

The firm's production in 2012 increased 43 percent to 57,700 boepd from 40,400 boepd in 2011.

Key project milestones expected in 2013 include the completion of the first phase of development drilling on the Solan project and the final sanction of the Catcher project, both in the UK North Sea. Meanwhile, concept selection for the Sea Lion project off the Falkland Islands in the South Atlantic is also expected to be completed during 2013 (Premier entered the Falkland Islands by acquiring operatorship of the estimated 300 million-barrel Sea Lion field in 2012).

Premier also said that it plans 15 exploration and appraisal wells for 2013. Five of these will be high-impact wells targeting in excess of 150 million boe, including Luno II (already spud), Matang (Indonesia) and Bonneville (UK), whose well results are expected imminently.

Premier added that, as well as its Sea Lion prospect in the Falkland Islands, it has a number of maturing play-opening prospects ongoing in Kenya, Norway and Iraq that are set for drilling in 2014 and 2015.

"Premier has built a strong asset portfolio which will act as a springboard for significant further growth over the medium-term. We have a number of development projects coming on-stream in the short-term, an exploration portfolio with increasing materiality and another key leg to our business as a result of our entry into the Falkland Islands," Premier Chief Executive Simon Lockett commented in a statement.

"Over the last seven years, our team has transformed the size and profitability of our business; the strategy we put in place in 2005 has delivered this growth. The next three years will see a further transformation of the business as we increase production and generate significantly greater cash flows."

Premier reported a record profit after tax for 2012 of $252 million (2011: $171.2 million). The company also said it had increased its reserves and resources by 51 percent to 773 million boe.

Analysts at London-based investment bank finnCap described the results as containing "a good set of numbers". 

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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Western Energy Alliance brazenly flubs facts in new poll

Western Energy Alliance is hard at work spinning their new survey, which underscores the lengths to which they’ll go to increase the profit margins of the billion dollar oil and gas industry – even when that means putting water, public health, and local communities at risk.

WEA announced their new poll a month ago, but just released the results today. Was it because they needed all that time to figure out how to spin the poll?

Unfortunately for WEA, since they included so many factually incorrect statements in the poll, they won’t be able to use their results for much other than spin sessions. And, this isn’t the first time that WEA and their vice president for government affairs, Kathleen Sgamma, haven’t been able to keep their facts straight or master basic grade school multiplication skills.

While WEA’s poll also spins that the public supports hydraulic fracturing, there are already 351 towns and cities across the U.S. that have taken action to limit or ban fracking within their borders.

Here’s a look at some of the most glaring factual errors from the WEA poll materials:

WEaccordingto-the-us-energy-information-administration-production-of-crude-oil-3A claim #1: “The government has prevented oil and natural gas development on federal lands, even though less than one-tenth of 1% of public lands is being used for oil and natural gas today.”

Facts: Both the federal government and industry has aggressively pushed to increase drilling activity on public lands. According to the U.S. Energy Information Administration, production of crude oil is at its highest level since 2002, and data from the Department of Interior show that oil production on federal lands was up 7 percent in 2012. This is despite the fact that nearly 21 million of the almost 39 million acres of public lands leased to the oil and gas industry sit idle.

WEA claim #2: The oil and gas industry do such a great job cleaning up lands where they’ve drilled that they’re considered wilderness, or pristine areas, post-clean up.

Drilling infrastructure in Wyoming. Source: EcoFlight. Drilling infrastructure in Wyoming. Source: EcoFlight

Facts: Reports on reclamation efforts in Utah, Wyoming and New York have shown that:

restoration attempts often fail and create long-lasting problems that threaten western wildlife;companies fail to provide adequately funded bonding, leaving behind billions in clean-up costs for states such as Wyoming; andthe oil and gas industry often fails to plug depleted wells – industry neglected to plug 89 percent of wells in New York.

In fact, a recent Government Accountability Office (GAO) analysis pointed to a highly inadequate system for funding clean-up of oil and gas wells on public lands.

WEA claim #3: “Increased energy production of American energy from public lands will lead to lower energy costs for consumers.”

Fact: Unfortunately for WEA’s spin team, experts agree – from BusinessWeek to the Energy Security Leadership Council – that the global market actually drives consumer oil prices, not U.S. production levels, so increased U.S. drilling doesn’t lead to lower energy prices.

Polls are only worth the paper they’re printed on if they fail to relay facts in a straightforward and honest way. Clearly, Western Energy Alliance and the companies they represent such as Anadarko and Noble care more about spin than they do about facts.


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Peak Well Systems Launches New Addition to SIM System

Specialist downhole tool provider, Peak Well Systems announced a new addition to its proprietary SIM System range for well remediation and flow control. SIM FloWellTM is slickline-set remedial technology capable of removing formation damage within selected downhole zones and thus improving well productivity.

SIM FloWell is designed to improve well productivity by being able to remove certain types of formation damage (e.g. crushed zones in perforation tunnels, tenacious filter cakes and scales) in both oil and gas wells that are wireline-perforated. The condition of the near-wellbore region is critical to the production of hydrocarbons, and the perforating process is one major contributor to skin damage. The severe compressive force of perforating can reduce the permeability of the surrounding rock, which in turn reduces productivity.

Like the rest of the products within the SIM System range, SIM FloWell is run, set and retrieved on slickline. Used in conjunction with Peak's SIM Plug Systems to provide selective isolation of the zone to be treated, SIM FloWell induces a sudden pressure drawdown in a wellbore, and hence causes a surge of fluid inflow from the reservoir.

"SIM FloWell has been designed specifically for deployment in monobore oil and gas wells that are wireline-perforated. We anticipate that, given the uptake of our SIM System technology by the largest multi-national operators, the SIM FloWell will also be very well received," commenting on the introduction of SIM FloWell, Tim Williams, business development director for Peak Well Systems, said. 

All SIM System products are mechanically set, providing operational flexibility and safety. As a consequence of being run on slickline, it offers operators a cost effective and low risk intervention method to clean-up wellbore damage while conducting routine slickline operations.

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