Upstream News

Chevron confirms first oil from Papa-Terra offshore Brazil

The Brazilian subsidiary of Chevron Corp., along with Petrobras, have started crude oil production from Papa-Terra's floating production, storage and offloading vessel (FPSO) offshore Brazil.

On November 11, Petrobras started production on platform P-63, connected to well PPT-12, in the field located in the southern Campos Basin.

The FPSO platform is anchored at a water depth of 1,200 meters and has capacity to process 140,000 barrels of oil per day, compress 1,000,000 m3 of gas and inject 340,000 barrels of water. It is the first production system to be deployed in Papa Terra.

Chevron holds a 37.5% interest in the Papa-Terra field, discovered in 2003, while Petrobras, the project operator, has the remaining 62.5%. Located approximately 70 miles southeast of Rio de Janeiro at a water depth of approximately 3,900 feet, Papa-Terra is a heavy oil development within Block BC-20 of the southern Campos basin.

Senex Energy Ltd. as operator of southern Cooper Basin permit PPL 207 (Senex 70%, Cooper Energy Ltd., 30%) has discovered a new oil accumulation in the Patchawarra Formation at Worrior oil field The Worrior – 8 development well was drilled in June 2013 to a total depth of 1,778 metres and intersected a net pay originally interpreted as up to 18 metres across the McKinlay Member, Namur Sandstone and the Patchawarra Formation.

On 29 October, Senex completed Worrrior - 8 to allow flow testing from the Patchawarra Formation as information from Worrior- 1 and petrophysical analysis, as well as good oil and gas shows, in Worrior – 8 had indicated the formation was potentially gas bearing.

The intention was to assess whether an opportunity existed to convert the fuel usage for the Worrior field from diesel to gas. Subsequent to the test, the well was scheduled to be completed as an oil producer from shallower horizons, including the McKinlay Member and Murta Formation.

Production testing of Worrior – 8 commenced on November 16, and the well is currently shut in for pressure build - up testing. The test has achieved the primary objective, flowing gas from the Patchawarra Formation at a rate of 0.7 million standard cubic feet per day. Additionally, the well flowed oil at a stabilized rate of 670 barrels of oil per day.

Analysis and interpretation of data received to date has identified the reservoir most likely contains an oil leg to a gas reservoir. Reinterpretation of previous Worrior wells also indicates the Patchawarra oil and gas accumulation may extend across the entire field area.

Senex managing director Ian Davies said the result vindicated the company's approach to in-field development, applying fresh eyes to existing oil fields.

"This is the first time that crude has been produced from the Patchawarra Formation at the Worrior oil field, where oil has historically been produced from the McKinlay Member, Birkhead Formation and Hutton Sandstone," he said.

Tullow makes onshore Kenya discovery

Tullow Oil plc and its partner Africa Oil have discovered oil with an estimated 100 meters of net oil pay in sandstone reservoirs from the Agete-1 exploration well in Block 13T, onshore Northern Kenya.

The Agete-1 wildcat well is part of a major exploration campaign and has made the fifth consecutive oil discovery in the first of a chain of multiple rift basins across Tullow's acreage in the region. This discovery de-risks several follow-on prospects located to the north and is on trend with the Twiga South, Ekales, and Ngamia oil discoveries and adds to the resource base already discovered, the company noted.

The Sakson PR5 rig drilled Agete-1 to a total depth of 1,930 meters. Following completion of logging operations the well will be suspended for future flow testing which will confirm the net pay count. The rig will then move to drill the Ewoi-1 wildcat in the east of this basin, targeting a rift flank prospect similar to the recent Etuko oil discovery.

Tullow operates the Agete-1 well with a 50% interest and Africa Oil (50%) has a non-operated interest.

Elsewhere in Kenya, exploration and appraisal activities continue to accelerate with the Amosing-1 well, in Block 10BB, expected to commence drilling before the end of November with the Weatherford 804 rig. The Etuko-1 well test in Block 10BB is also scheduled to commence this month with the PR Marriott 46 rig which recently arrived in country and the Ekales-1 well test is scheduled to commence with the new SMP-5 workover unit in early December.

Statoil makes snilehorn discovery

Statoil, together with partners in PL348/348B, has made an oil discovery in the Snilehorn prospect in the Norwegian Sea, approximately 15 kilometers northeast of the Njord field. This is the third near-field discovery in the Norwegian Sea in three months.

Exploration well 6407/8-6 and sidetrack 6407/8-6A, drilled by the Songa Trym drilling rig, have proven several oil columns in formations dating from the Jurassic period.

The main wellbore has also proven oil at a deeper level, in reservoir rocks of Triassic age, probably Grey Beds formation. Further data analysis will clarify the age of this oil bearing formation. The estimated volume of the discovery is in the range of 55–100 million barrels of recoverable oil equivalent.

"In three months, we have made three new discoveries in the Norne, Åsgard and Njord areas, proving a total of 86–166 million barrels of recoverable oil equivalent. These are high-value barrels that allow us to extend the production life of our installations," noted Gro G. Haatvedt, Statoil senior vice president for exploration on the Norwegian continental shelf.

TPH conference highlights prospects outside North America

Tudor, Pickering, Holt & Co. hosted a full-day "Global Shale Conference" in London on Nov. 21, with featured speakers from government, oil field services and exploration and production companies. The prospects for meaningful shale play development in Argentina, Russia, the UK, Turkey as well as many other countries were discussed.

"Global shale is coming, the question is just when. The governments around the world that set in place the right structure for shale play development may potentially reap huge social and economic rewards for their citizens," said David Pursell, the firm's head of Securities.

UK Minister of State for Business and Energy Michael Fallon gave an optimistic though qualified overview of the prospects for UK shale development as well as that government's attempts to encourage safe and environmentally friendly shale activity.

It was at the conference that Fallon told attendees that the UK government is committed to ensuring the viability of a shale industry and that details of tax incentives for shale gas development will be revealed in early December.

Fallon confirmed that the government will hold a round of onshore licensing in 2014 and a deal put forth by the industry would give local communities 1% of any revenues generated by shale gas production.

Halcon CEO Floyd Wilson was also a featured speaker and offered a personal and US perspective on brisk shale play development.

Canacol finds oil at colombia well

Canacol Energy Ltd. has hit oil pay at the Leono 1 exploration well drilled on the LLA23 Exploration and Production contract located in the Llanos Basin of Colombia. Leono 1 is the second A3 exploration well the corporation has drilled on the contract following the Labrador discovery announced in late 2012. The corporation has an 80% operated working interest on the contract with the other 20% interest held by Petromont S.A. Sucursal Colombia. The Leon 1 encountered 133 feet of net oil pay within four different reservoirs. Charle Gamba, president and CEO of the corporation noted the thickness of the net oil pay section at Leono 1 is "approximately twice that of Labrador, and rivals that of Rancho Hermoso, making Leono a major development project for the corporation in calendar 2014."

The Leono 1 well was spud on November 9, 2013 and reached a total depth of 11,995 feet measured depth on November 26, 2013 with strong oil and gas shows encountered while drilling through the primary reservoir targets. The well encountered 133 ft of net oil pay in the following reservoirs: 13 ft of net oil pay within the C7 reservoir with an average porosity of 19%, 27 ft of net oil pay within the Barco reservoir with an average porosity of 18%, 69 ft of net oil pay within the Gacheta reservoir with an average porosity of 20%, and 24 ft of net oil pay within the Ubaque reservoir with an average porosity of 24%. Canacol is preparing to conduct production testing operations on the Barco and Gacheta reservoirs. Once completed, the company plans to bring the Leono 1 well onto long term production subject to the approval of the Agencia Nacional de Hidrocarburos.

BRIEFS

ALFA LAVAL WINS OFFSHORE OIL AND GAS ORDER

Alfa Laval has won an order from a South Korean company for freshwater generators to an offshore oil platform in Norway.

The order, booked in the Energy & Environment segment, has a value of approximately SEK 90 million (US$14 million).

The Alfa Laval freshwater generators will be installed onboard the platform where they will convert seawater into both potable and process water. The oil platform is located in the Norwegian part of the North Sea. Delivery is scheduled for 2014.

POLAND TO INTRODUCE SHALE GAS BILL BY YEAR-END

Poland's Minister of the Environment Maciej Grabowski said the country will draft a new law to regulate shale gas exploration and production. The law would be sent to the government for approval before the end of 2013.

Recently appointed energy minister, Grabowski formerly served as deputy finance minister. During that time, he drafted a bill to introduce new taxes on oil and gas production - a bill that has yet to be approved by Poland's government.

A lack of clarity surrounding the country's existing oil and gas regulations has been a hurdle to investment by companies in Poland and abroad.