The PERTH-DOLPHIN-LOWLANDER (SEN, 31/18) development could yet morph into a platform-based scenario, SEN was told this week by operator Parkmead.

With recoverable reserves now doubled to 80mmbls - which according to the operator makes this one of the largest undeveloped oil projects in the UK sector - SEN was told that it assuredly will not be a subsea tieback.

The current base case remains an fpso, but if the reserve base grows any more, it could yet be a small platform development. Earlier concerns about associated sulphur in the wellstream have been dealt with by using corrosion-resistant materials.

Parkmead is also undeterred by the current oil price fall as it does not see this field onstream before 2018. It even believes that development costs will come down to match the falling value of crude.

From Houston (BN): Shell has received regulatory approval for its phase two plan for COULOMB in 2,302m in Mississippi Canyon 657, which currently produces to the Na Kika production semi.

Plans call for two wells to be drilled, the first to spud in February, the second in early 2016, although Shell indicates the schedule could slip. The plan approved was filed in April when the oil price was much higher.

Production will be of very light (APIo46) condensate. It will flow 43km via a new 8in line to the BP-operated semi located to the northwest in MC473. New jumpers, umbilicals and a manifold will be installed on the existing field of three wells.

Coulomb gas already flows to Na Kika via an existing 8in flowline. The semi, which began operation in 2003, is a hub serving eight fields: Kepler, Isabella, Santiago, Ariel, East Anstey, Fourier and Hershel plus Coulomb.

From Australia (RW): Woodside Petroleum is to acquire Apache Energy’s stake in the WHEATSTONE (31/13) LNG project and the nearby producing BALNAVES (30/22) fpso development off Western Australia plus the Kitimat LNG project in British Columbia, Canada, for $2.75bn.

The deal includes 13% interest in Wheatstone and 65% interest in the Julimar and Brunello subsea satellites that will feed into the LNG facility now under construction. Woodside also gains 65% of Balnaves which came onstream in August.

In Canada Woodside has snared 50% of Kitimat which includes 129,000ha of permits in the Horn River and Liars basins.

Julimar-Brunello will provide 60bcm of sales gas into Wheatstone generating net sales of about 4mcm/d of LNG plus 0.6mcm/d of sales gas into the WA domestic market. There will also be 3,250b/d of condensate.

The Chevron-led Wheatstone project will produce 8.9mt/a of LNG when completed. Commissioning is expected in 2016. Chevron also operates Kitimat which expects to export up to 10mt/a of LNG. Financial close of the transaction is due by the end of March 2015.

From Houston (BN): Deep Gulf Energy has received the official go-ahead to drill and complete a well on the ODD JOB field in 1,830m in Mississippi Canyon 215. The field was previously operated by Eni, who sold out, leaving operator DGE and Calypso as partners. Plans call for tying back oil production to LLOG’s Delta House fps in MC254.

Statoil’s Gullfaks A platform in the Norwegian North Sea has received a lifeline which will extend its operating period beyond 2030 as a result of the filing of a plan for development for GULLFAKS RIMFAKSDALEN.

This field, another in Statoil’s ‘fast-track’ programme, will move 80mmboe through Gullfaks A at a cost of NOK4.6bn. There will be two subsea gas wells on a standard subsea template with the possibility of a further pair. Production startup will be 2017.

From Houston (BN): The BG’s STARFISH (29/18) subsea project, offshore Trinidad & Tobago, has achieved first gas. The development consists of three subsea wells linked 10km to the Dolphin A platform. Dolphin A was refitted to handle the added gas and combine it with Dolphin production. The gas is pipelined ashore to the National Gas Co of T&T and to Atlantic LNG.

Husky Energy and CNOOC have begun producing gas from a single subsea well at 0.85mcm/d from the LIUHUA 34-2 satellite field to the existing Liwan 3-1 infrastructure. The field, in waters out to 1,250m, will reach peak production of 1.3mcm/d. The subsea hardware award comes from OneSubsea.

Wintershall has increased the recoverable reserve base for its MARIA (31/18) subsea tieback in the Norwegian sector by 28% to 180mmboe as a result of work associated with its plan for development.

From Australia (RW): Cooper Energy has bought a 50% interest in the SOLE gas field, offshore Gippsland plus 50% of the onshore gas plant in Victoria from Santos who retains operatorship and 50% of the field and plant.

The A$27.5mn deal comprises initial cash of A$2.5mn followed by Cooper funding 100% of the first A$50mn development costs. Cooper says FEED will cost A$25-$29mn.

Sole, originally discovered by Shell in 1972, is in eastern Bass Strait about 65km from the onshore plant. Shell intersected 16m of net gas pay on the flank of the field, but did not continue as it was deemed non-commercial and too far from existing infrastructure. Sole-2 appraiser was drilled by Santos in 2002 near the crest of the structure and found 68m of net gas pay. The well tested 0.6mcm/d.

With FEED about to begin, the field is due onstream late 2018 or early 2019. Gas will be piped to the plant which was used for production from Santos’ Patricia/Baleen fields. Final investment decision is planned for the third quarter of 2016.

Sole will be developed with a single well expected to produce up to 2mcm/d and piped direct to the plant which is currently processing gas from the Longtom (30/10) field in Bass Strait. Modifications will be needed to handle Sole gas which contains 1% CO2, 0.15% H2S and less than 1bbl/mcf of condensate with production due at 30b/d.

Cooper also operates (65%) the Basker-Manta-Gummy complex where it is studying re-development, notably gas reserves. These fields lie 35km southwest of Sole.

Also Down Under, Origin Energy has completed the heavylift phase of the BASSGAS (30/22) mid-life enhancement project. Crane vessel Sapura Acergy 3000 installed the gas compression and condensate pumping modules onto the Yolla platform in the Tasmanian Bass Basin this week.

Tie-in and commissioning of modules is due to begin mid-2015 after development drilling has been completed. Origin says the modules are not critical to current operations and are expected to be commissioned in 2016-17.

BassGas has been shut in since late November for planned maintenance and facilities integrity testing. The compressor installation was integrated during the shut-in period. Gas production from the platform will recommence before the end of the year and will continue until the two-well development drilling programme begins in Q1 2015.

Origin says the two new wells should increase production to 1.5-1.7mcm/d, up from the current average of 1mcm/d.

Wood Group Kenny and AMEC Foster Wheeler will handle FEED for Chevron’s CAPTAIN EOR project in the UK North Sea. WGK will work on subsea trees, controls and the polymer injection flowlines, while Amec FW will be responsbile for the bridge-linked platform which will store, mix and pump the polymers as well as brownfield modifications to the existing facilities.

From Houston (BN): MEXICO has offered 14 shallow-water blocks in the Bay of Campeche to foreign companies, kicking off Round One bidding under historic energy reform.

Hydrocarbons regulator CNH has laid out preliminary terms for deals. Wood Mackenzie analysts told SEN the terms appear to give foreign investors what they want - the ability to book reserves as assets. WoodMac said potential bidders are being invited to give feedback on the terms, so tweaking is likely before the framework becomes final.

To be qualified, companies must have expertise in shallow-water operations and have had capex of at least $1bn over the past four years. Each company can only bid on five blocks and companies that produce more than 1.6mmboe/d cannot partner with each other, intended to increase competition in bidding.

A data room will open 15 January, making available seismic and other data about the tracts. Fiscal terms will be finalised by mid-May and the bid deadline is July 15. It is likely that opportunities to participate in development of shallow-water producing blocks will be added to this first mini-round.

Offshore