BGP enters marine market
BGP, the world's largest land seismic contractor, is entering the deepwater marine seismic market. The company has purchased a factory stern trawler, which will be converted into a six- to eight-streamer seismic vessel. It will enter service in late 2006.
PGS converts crew
Petroleum Geo-Services ASA will convert its current four-component
(4-C) ocean bottom crew operation, including the vessels Ocean Explorer and Falcon, to towed streamer vessels. The company explained that it wants to take advantage of the "substantial improvement" in the towed streamer market while retaining competence in the 4-C sector for later re-entry.
Wolf places GPS order
Leica Geosystems has won an order for 30 GPS 1230 surveying systems from Wolf Survey and Mapping, a division of Destiny Resources Services Partnership in Canada. This is the second large order for this equipment from the Alberta-based seismic services company.
Agreements
• IFP has signed a cooperation agreement with RIPED, the research center for exploration and production of the Chinese company Petrochina, for the development of innovative technologies in the upstream oil and gas industry. The first projects, which will focus on reservoir characterization and improved recovery through gas and polymer injection techniques, will begin in 2006.
• Knowledge Reservoir and Concessions International Ltd. will form a study group to identify upstream undeveloped discovery opportunities in Asia. Particular emphasis will be to use advanced technology and proprietary data to evaluate the commercial potential of thousands of undeveloped oil and gas discoveries identified in the region. Some of the discoveries have minimum recoverable reserves of more than 100 MMbo. For more information, visit www.knowledge-reservoir.com/ asiastudygroup/index.htm
• The Gas Technology Institute (GTI) and the Network of Excellence in Training have formed an alliance to market and deliver comprehensive energy industry training to the natural gas sector. Through the agreement, the two organizations will identify opportunities to provide clients with complete training solutions in the areas of finding, developing, producing, processing and distributing natural gas and liquefied natural gas.
New releases
• Ikon Sciences has introduced RokDoc version 5.0, offering improved features such as anisotropy; RokStar, a digitization of geological data; and a pore pressure calculator. For more information, visit www.ikonscience.com.
• Roxar has released version 6.2 of Tempest, a software suite for advanced reservoir simulation. New features include a new method for modeling naturally fractured reservoirs and a Tensor Permeability option that can be used to describe complex heterogeneous reservoir systems.
Statoil plans 20 well
Norway's Statoil plans 20 exploratory wells on the country's continental
shelf in 2006 and will operate half of those wells. It also will drill up to 10 deeper-zone targets in existing wells to look for new pay. The company will drill 14 wells by the end of 2005, but three or four of those will still lie under the bit at the end of the year. With the limited number of rigs available in the North Sea, the 2006 plans could be delayed if rigs don't finish earlier projects on time.
Gazprom goes offshore
Russia's Gazprom, the world's largest gas reserve holder, approved its offshore exploration program through 2030. Although final work on specifics remains undone, the Ob and Taz bays in the Arctic Kara Sea will get top priority for the size of reserves and cost of recovery. The company said the continental shelf contains 733 billion boe, and 80% of that is gas, mostly in the Barents, Pechora and Kara seas. The Pechora Sea is oil prone.
Kazakhstan opens talks
Kazakhstan will begin negotiations in 2006 for exploration on newly available blocks in the northern Caspian Sea. The nation would like to attract investments of US $2.8 billion to $6 billion in the first stage, $7 billion to $10.3 billion in the second stage and up to $15.6 billion in the third stage of exploration.
Halliburton to buy Easy Well
Halliburton's Energy Services Group has signed an agreement to purchase Norwegian based Easy Well Solutions AS. Easy Well is a new-technology company formed in 2001 that specializes in novel reservoir completion products. Revenue has more than doubled year over year for the 4 years since it was founded.
Schlumberger expands
Schlumberger recently opened a new 53,000-sq-ft (15860-sq-m) building at its Global Drilling Technology Center located in Stonehouse, Stroud District, Gloucestershire, United Kingdom. The facility expansion will add 100 jobs and is responsible for the manufacturing and assembly of all Schlumberger drilling tools used worldwide. The new building houses product development engineering, commercial product support, manufacturing and management teams. In Stonehouse, new advanced drilling system prototypes for use in oil exploration and production drilling are taken from the drawing board and built into functional tools for field testing.
KCA Deutag heads east
Drilling contractor KCA Deutag officially opened its new Russian head oOffice in Tyumen, Western Siberia, in October 2005. The new office complex includes a logistics center and workshops. The company expects to employ around 400 people, the majority of whom will work directly on the company's rigs. The company will also maintain its office in Moscow.
In March 2004, KCA Deutag won a 4-year contract for the provision of drilling services for the development of Salym, Western Siberia, by Salym Petroleum Development N.V., a 50-50 joint venture between Shell and OAO Evikhon. Two BU-3900 series rigs were commissioned by KCA Deutag. Both rigs have been manufactured to meet arctic conditions and have now successfully commenced drilling operations.
KCA DEUTAG's 2000hp T-2000 rig, the most advanced western rig in Russia, has completed its operations with Schlumberger/RITEK in the Nadym area of Western Siberia. The rig has been awarded a contract by Urals Energy for drilling in Sakhalin. Drilling operations were due to begin fourth quarter 2005.
Together with three platform contracts on Sakhalin Island in far eastern Russia, KCA Deutag now operates eight rigs in Russia.
Asia study scheduled
Knowledge Reservoir, LP, in conjunction with Concessions International, Ltd, is forming a study group to identify upstream undeveloped discovery opportunities in Asia.
The company said it will use its advanced technology and proprietary data to evaluate the commercial potential of thousands undeveloped oil and gas discoveries in this region. According to the company, some of the discoveries have minimum recoverable reserves of over 100 million bbl.
Study group participants will have an exclusive opportunity to participate in a bidding consortium for an "out of round" application on the most prolific undeveloped discoveries identified by the group. In addition this consortium will give smaller independents the ability to participate in upstream projects in these countries where they would not qualify individually for a concession. The study will also identify and evaluate all of the acquisition and farm-in situations in Asia.
Centralizers smooth path
Downhole Products installed 270 of its Blade Runner low-drag casing centralizers in an extremely demanding well on the Chirag production platform offshore Baku, Azerbaijan, in the Caspian Sea.
Since November 2004, Blade Runner centralizers have been successfully run in more than 20 extreme wells in the North Sea, Caspian Sea, Sakhalin Island, Norway and Newfoundland.
Specially engineered Teflon inserts are molded into spiral blades of the centralizer, which greatly reduce drag when running inside casing. The Teflon inserts have a very low friction coefficient. The centralizer is also fitted with unique internal engineered Teflon bushings that significantly reduce start-up torque by up to 50% during liner or casing rotation.
BJ gets Saudi work
A major national oil company in Saudi Arabia has been awarded a 3-year, multimillion-dollar contract to BJ Tubular Services. The contract provides for well services, including casing and tubing running services, to be carried out on multiple rig locations across the Eastern Province Kingdom of Saudi Arabia.
BJ Tubular Services has begun operations, with a number of casing and tubing running operations already completed. All related services are being provided by BJ Tubular Services using dedicated personnel and equipment from the division's regional bases in Dammam, Saudi Arabia.
KNOC picks Peak
The Peak Group has secured its first contract with the Korea National Oil Corp. for an exploration well offshore Benin, West Africa. Peak will deliver complete well project management services including detailed well and test design, tendering and contracting for all services, execution of the drilling program, materials and logistics, project completion and operations wrap-up. The well is expected to spud in late October. The well marks the first project for both Peak and KNOC in Benin.
Alliance helps wells
Upstream software provider Merrick Systems has formed an alliance with NuTech Solutions, a scientific-software company specializing in optimization solutions and Advanced Resources International, a non-conventional gas and enhanced-oil-recovery consultancy. The Intelligent Production-Optimization Alliance will help oil and gas companies efficiently extract fuels from heavy-oil fields, watered-out oil fields and non-conventional gas sources.
The alliance claims that the combination of experience and advanced technology it represents is unprecedented in the complex-recovery market. The alliance will make available to operators of non-conventional gas and enhanced-oil-recovery assets technologies that have previously been limited to deepwater and other high-cost environments.
Schlumberger goes south
Schlumberger Limited is relocating its US corporate office from New York to Houston in the second half of 2006. Schlumberger will continue to maintain corporate offices in Paris and The Hague.
The company has had a long association with Houston from where North American operations have been coordinated since 1934. In 1940, Schlumberger opened a prominent office and industrial complex near the Gulf Freeway, which served as a key operational and manufacturing base. Schlumberger moved from the Gulf Freeway facility to a 200-acre campus in Sugar Land, Texas, just outside of Houston, in 1995. Currently, Schlumberger maintains multiple operational locations and technical engineering facilities, and employs more than 8,000 employees in the Houston area.
Rig census confirms gains
Record oil and gas prices during the past year resulted in significant gains
in United States and Canadian rig fleet sizes and utilization in 2004, according to the 52nd ReedHycalog Rig Census. The US rig fleet was up by about 2% over 2004 figures, bringing the fleet size to 2,026. US fleet utilization levels increased to 95% this year, an 11% gain over 2004. The Canadian fleet gained 9% to reach a record 741 units.
The global offshore mobile rig fleet had an aggregate decline of 5% this year, with 641 units, versus 673 rigs in 2004. But, the global offshore mobile fleet experienced an increase in activity and utilization, up 12%. For the first time, ReedHycalog included the international land rig fleet in the census yielding some interesting results. The Middle East had the highest utilization rate, 94%, followed by Latin America, 86%, Africa, 73% and the Far East, 66%. Due to the barriers caused by geographical extent and market diversity, China, Russia and the former Soviet Union were excluded this year.
ROV fleet acquired
Oceaneering International, Inc. has acquired three work vehicles and four observation class vehicles from MTQ Corp. Limited. All three of the acquired work class vehicles are currently operating in Southeast Asia under contracts that are expected to be in effect at least until the end of 2005.
HP/HT LWD tool deployed
Pathfinder Energy Services has placed its Survivor Slim Density Neutron Standoff Caliper Tool in service. The SDNSC tool has a patented formation porosity estimation technique. It is the first tool to use californium-252 as a source for LWD neutron measurement.
Anadarko plans drilling
US-based Anadarko Petroleum Corp. set plans to get drilling rigs it needs for deepwater activity for the next 6 years. Two-thirds of rig time will go to delineation and development, while one-third will go to exploration. Anadarko and two other producers signed a 4-year rig-sharing agreement for a new deepwater semisubmersible rig from Ensco International. Anadarko also signed a 3-year contract for the Bedford Dolphin for US $459 million, starting in 2007. The company will spend another $1.19 billion extending present contracts and signing incremental drilling deals for Gulf of Mexico work.
Aker wins contracts
Aker Kværner will build two turnkey, sixth-generation, deepwater, semisubmersible drilling rigs for Aker Drilling for US $1.16 billion. Aker Drilling has an option to order two more of the H-6e rigs set up for deepwater and harsh environment drilling. The first two rigs are scheduled for delivery in February and October 2008, according to Ogilvie's E&P Daily.
SeaDrill orders rig
SeaDrill Ltd. ordered a turnkey, ultradeepwater semisubmersible,
harsh environment GVA 7600-N
drilling rig from Daewoo Shipbuilding of South Korea for US $496.5 million. Delivery is scheduled for February 2008. The price includes 7,500 ft (2,287.5 m) of riser, a blowout preventer and a full mooring system.
It will pay for the rig from cash flow.
Snøhvit costs climb
The cost of Statoil's Snøhvit gas development project in the Barents
Sea will rise to US $9.2 billion, a $1.1 billion increase from previous estimates. First production now is scheduled for June 1, 2007, some 8 months behind the original date. The company said the project wasn't sufficiently mature when the company approved construction.
Permian Basin costs rise
The average cost of operating oil fields in the Permian Basin of West Texas and southeastern New Mexico climbed 25% between 2002 and 2004 to more than US $7.60/bbl. Costs in gas fields rose by 31% to almost 90 cents/Mcf in the same period, according to a study by Ziff Energy Group of operating costs in 201 fields run by nine operators. The leading operators in the group, however, achieved operating costs of less than $5/bbl for oil and 60 cents/Mcf for gas. Some of the increases came from higher taxes based on higher prices.
Peak Group signs deal
The Peak Group, a global provider of well-construction services to the upstream oil and gas industry, has agreed to a US $18.8 million finance structure with the Royal Bank of Scotland (RBS) to enhance the services the company provides for its clients' well construction projects. The agreement enhances further development of the company's multiwell, multiclient programs. Multiwell programs are being undertaken for Dana Petroleum and Century Exploration in the Central and Southern North Sea, and offshore Australia for AED Oil Limited and Methanol Australia Limited.
Semisubmersible startup
Amethyst-class deepwater semi-submersible Pride Portland, a newly constructed 5,700-ft (1,738.5-m) water depth, dynamically positioned semisubmersible, was accepted for commencement of operations on Oct. 31 offshore Brazil. The rig is operated by Pride International, Inc. and owned by a joint venture. The Pride Portland and its sister rig, the Pride Rio de Janeiro, each have 5-year contracts from Petroleo Brasileiro S.A. (Petrobras) for work offshore Brazil.