Project Briefs for Jan. 22

From the North Sea (NT): Tendering for Shell-SSE’s Peterhead CARBON CAPTURE AND STORAGE (CCS) project is due to take place in the first half of the year, opening the way to detailed engineering next year, construction in 2017/18 and commissioning and start-up in 2019/20.

The project is expected to capture 1mt/a of CO₂ a year for a base-case period of 10-15 years, but possibly lasting up to 20 years, to be stored in the depleted Goldeneye reservoir.

That’s assuming that Shell and partner SSE, the operator of the Peterhead gas-fired power station, win the competition with Alstom’s White Rose project for the £1bn prize offered by DECC for a demonstration CCS project. The two schemes are currently performing early design and engineering work with £100mn of government money. Final investment decisions by the two sets of partners are expected late this year with DECC choosing the winner in 2016.

According to environmental statements issued by Shell, its offshore scope of work includes the construction of a 20in pipeline from the Peterhead plant to carry liquid CO₂ to the Goldeneye platform. The new line will tie-in to the 100km Goldeneye export pipeline to St Fergus. Depending on the tie-in point chosen, the new line could be between 15km to 26 km long. The preferred option is for a 20km line.

An existing 4in service line will be used to carry methanol to the platform for the purpose of hydrate suppression in the injection wells.

Some or all of the five wells will be recompleted for injection by a jackup rig. Platform modifications, which will require the support of a flotel, will include the installation of a CO₂ injection manifold, while the subsea safety isolation valve will also be changed out with the old unit being left on the seabed.

J+S has executed a one-off design of a replacement high voltage connection for the multiphase booster pump on CNR’s LYELL field in the UK sector. J+S designed a splice with a pressure compensated housing to be executed in a habitat that could link the existing umbilical to new pigtails. This solution was an alternative to the costly replacement of the umbilical.

From Australia (RW): Emas AMC has been awarded a A$130mn contract by Apache Energy for subsea construction work on the JULIMAR-BRUNELLO (29/14) gas project, offshore Western Australia.

The work will include transport and installation of an electro-hydraulic steel tube umbilical, two subsea manifolds plus flying leads and jumpers and diverless tie-in spools.

Julimar-Brunello will supply gas for Chevron’s Wheatstone (31/19) LNG project. Woodside Petroleum acquired Apache’s interest in the two fields late last year (31/19) with the deal due to close by the end of March.

Emas AMC has already begun project management and engineering work. Offshore actrivity will begin mid-2015 using the company’s heavy-lift deepwater construction vessel Lewek Constellation.

The contractor only recently completed work on the Coniston field development for Apache.

Aker Solutions and sister company Kvaerner Verdal have picked up the first contracts for Statoil’s giant JOHN SVERDRUP (31/18) development in Norway.

AkerSol will handle detailed engineering of the topsides for the processing and riser platforms, while Verdal will build the riser platform jacket. The latter is contingent on the project go-ahead which is due to be made next month.

Statoil has filed a PDO for the NOK4.6bn RUTIL development, part of the Gullfaks South complex. Reserves are 80mmboe, mostly gas.

From Houston (BN): Noble Energy’s MADISON (31/18) deepwater exploration well in the Gulf of Mexico has been declared non-commercial.

It reached the targeted Upper and Middle Miocene objectives, but did not find enough hydrocarbons to be of interest. Drilled to TD of 5,139m in Mississippi Canyon 479, the well has been plugged and abandoned. Noble operated (60%) for Stone Energy with the remaining shares.

From the North Sea (NT): As oil companies take the axe to exploration spending, GREENLAND is one of the victims.

Statoil has relinquished three licences, all covering acreage off the west coast, and now has only one, off the east coast, where it has a longer period to make a ‘drill-or-drop’ decision. GDF Suez and Dong have also handed back licences, while Maersk has agreed a two-year extension to the initial period of its Baffin Bay licence to give it more time for technical and commercial evaluation.

Cairn Energy has farmed out 10% of its stake in Premier’s CATCHER (31/20) fpso project to Dyas UK for $182mn in carried costs...Eni has received a three year extension on its exploration period on the prolific 15/06 block, offshore Angola, while picking up two more deepwater blocks offshore EGYPT in the Mediterranean...The Philippines National Oil Co is looking into a farm-in to Otto Energy’s HAWKEYE deepwater prospect.