Ras al Khaimah: Saleh redrill temporarily suspended

By OGJ editors

RAK Petroleum PCL, Dubai, has temporarily suspended drilling the Saleh-5 well off Ras Al Khaimah after consultations with partner RAK Gas LLC, which exercised its 30% back-in option to the field redevelopment project by agreeing to pay its prorata share of past and forward costs.

Saleh-5 drilling costs, including suspension and rig move, are estimated at $35 million. Favorable contract terms allow recovery of all drilling and other capital and operating costs from revenues from Saleh field or adjacent RAK B field, also planned for development, before any tax and royalty payments are made to the state.

The Noble Roy Rhodes jackup will move to nearby RAK Petroleum-operated Block 8 off Oman, where the company is committed to drill three development wells. The Saleh-5 wellbore will be left in a condition that allows reentry, and the rig is available to return to Saleh field at end-2012 even though a search is under way for an alternate rig to accelerate the multiwell redevelopment program.

Separately, RAK Petroleum is in discussions with an undisclosed company that has proposed to pay 100% of the costs of a first exploratory well on the Saleh license to earn partial rights to participate with RAK Petroleum and RAK Gas in acreage that surrounds and excludes Saleh field.

The government of Ras Al Khaimah notified RAK Petroleum that Norwegian company Petrolia ASA through its chairman Berge Gerdt Larsen made a written proposal that the Saleh and RAK B licenses be repurchased from DNO International ASA by RAK Petroleum for a “nominal amount.” RAK Petroleum considers the proposal inappropriate.

The Saleh-5 well was spud on July 3, 2011, as part of a RAK Petroleum multiwell initiative to redevelop Saleh gas-condensate field in 320 ft of water. Difficulties and delays have been encountered while drilling through depleted zones in an attempt to reach the Lower Cretaceous Thamama formation, a proven, producing reservoir that remains largely untapped.

Further technical studies will be conducted before drilling resumes. The eventual outcome of Saleh-5 does not affect RAK Petroleum’s perception of the value of the field given plans to reenter, deepen, and test other wells.

Saleh field, started up in the mid-1980s, has cumulative production of 106 bcf of gas and 14 million bbl of condensate from the Middle Cretaceous Wasia limestone at 14,500-800 ft through seven wells on six wellhead platforms. The field has continued to produce small volumes of gas through an 18-in. pipeline to shore.

Related Articles

BHI: US rig count jumps 19 units to 876

07/24/2015

The US drilling rig count jumped 19 units to reach 876 during the week ended July 24, according to data from Baker Hughes Inc.

ONGC Videsh unit drills horizontally in Russia’s Snezhnoye field

07/24/2015 Imperial Energy Corp. PLC, a subsidiary of ONGC Videsh Ltd., has drilled two horizontal wells in the Naunak formation of Snezhnoye field in the Tom...

MARKET WATCH: Oil futures hover below $49/bbl

07/24/2015 Light, sweet crude oil futures prices settled under $49/bbl July 23 on the New York market, which means US prices have slid more than 20% since the...

EQT reports high IP from Utica dry gas well

07/24/2015 EQT Corp., Pittsburgh, said a deep, dry gas Utica well averaged 72.9 MMcfd with an average flowing casing pressure of 8,641 psi during a 24-hr deli...

Separate Murkowski bill addresses crude exports, OCS revenue sharing

07/24/2015 US Senate Energy and Natural Resources Committee Chair Lisa Murkowski (R-Alas.) introduced legislation that would end the ban on US crude oil expor...

Statoil drilling first production well at Gina Krog field

07/23/2015 Statoil ASA has started drilling the first production well at Gina Krog field, 30 km northwest of Sleipner in the North Sea (OGJ Online, Oct. 28, 2...

OGUK updates guidelines for well abandonments

07/23/2015

Oil & Gas UK has released updated guidelines for abandonment of wells, including cost estimates.

BSEE grants Shell limited drilling rights for Chukchi project

07/23/2015 The US Bureau of Safety and Environmental Enforcement (BSEE) has grated conditional approval to Royal Dutch Shell PLC of two applications for permi...

Gazprom Neft brings fifth well on production in Iraq’s Badra field

07/23/2015

JSC Gazprom Neft said a fifth well has been brought into production in Badra field in eastern Iraq (OGJ Online, June 26, 2015).

White Papers

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by
Available Webcasts


The Resilient Oilfield in the Internet of Things World

When Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.

register:WEBCAST



On Demand

Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors

register:WEBCAST


Driving Growth and Efficiency with Deep Insights into Operational Data

Wed, Aug 19, 2015

Capitalizing on today’s momentum in Oil & Gas requires operational excellence based on a clear view of what your business data is telling you. Which is why nearly half* of oil and gas companies have deployed SAP HANA or have it on their roadmap.

Join SAP and Red Hat to learn more about using data to drive process improvements and identify new opportunities with the SAP HANA platform running on Red Hat Enterprise Linux. This webinar will also show how your choice of infrastructure impacts the performance of core business applications and your ability to achieve data-driven insights quickly and reliably.

*48% use SAP, http://go.sap.com/solution/industry/oil-gas.html

register:WEBCAST


OGJ's Midyear Forecast 2015

Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected