Navion wins Lufeng contract extension and Enterprise frame agreement

The Navion Munin production ship is to continue recovering oil from the Lufeng 22-1 field in the South China Sea for a further two years from February 2000.

The Navion Munin production ship is to continue recovering oil from the Lufeng 22-1 field in the South China Sea for a further two years from February 2000.

The extension was been awarded by field operator Statoil AS to the Lufeng Development Co., a joint venture of Norway's Navion AS, owner of the vessel, and Advanced Production Systems (APS), which provides the processing package on the ship.

Licensees on Lufeng are operator Statoil, with a 75% interest, and state firm China National Offshore Oil Co., which holds the remaining 25 per cent.

Lufeng 22-1 is a small oil field located in 330 m of water about 250 km southeast of Hong Kong. Discovered in 1986, it was long considered non-commercial, but new technology made it possible to bring the field on stream in December 1997.

Navion Munin was the first ship to utilize the submerged turret production (STP) system, which makes it possible to disconnect the vessel from its moorings in 6-8 hr.

This is much faster and simpler than taking conventional production ships off station, and represents an important capability in areas where climatic conditions or government requirements call for quick disconnection. Navion Munin has been required to utilize this ability on several occasions because of the frequency of typhoons in the South China Sea.

Since coming on stream in 1997, the ship has recovered almost 21 million bbl of oil from Lufeng. Operational up-time was said by Navion to have been very high throughout, reaching 95% in 1998 and 98% this year.

Meanwhile, Navion secured a 5-year frame agreement with Enterprise Oil PLC, London, covering oil shipments from existing and future British, Norwegian and Danish fields in which Enterprise has interests. This deal runs from 1999.

The first cargo to be lifted under the new contract came from Norway's Jotun development last week. Liftings will begin from Triton/Bittern fields off the UK around the end of the year.

Taken together, said Navion, Enterprise's oil liftings from these two fields will employ slightly less than one shuttle tanker. Navion already holds contracts with Enterprise to transport the UK company's share of oil from Britain's Pierce field, Siri off Denmark and the Norne development in the Norwegian Sea.

These assignments have been incorporated in the new frame agreement. This means that Enterprise shipments will be employing roughly two shuttle tankers by the beginning of next year.

On Pierce, Navion is also responsible for oil production through the Pierce Production Company joint venture with Norwegian companies Advanced Production System (APS) and Bergesen DY. This partnership brought the Berge Hugin production ship into operation in Pierce field on Feb. 1, 1999.

The deal with Enterprise is the third frame agreement concluded by Navion for offshore loading off northwest Europe. A 10-year contract was secured last December from Amerada Hess Ltd., which is the third largest oil and gas producer in the UK. Navion also has a frame agreement with Statoil.

OMV claims successes with its first three Australian wells

OMV Aktiengesellschaft disclosed details of three wells, two offshore and one onshore, in Australia in which its OMV Australia Pty. Ltd. participated.

The Nasutus-1 wildcat was drilled by operator Apache Corp. on the EP 409 permit area in the Barrow sub-basin on Australia's Northwest Shelf, and was spudded on Nov. 12.

Operator Apache has a 50% interest in the block and OMV holds 50%. OMV said the well encountered oil and gas shows while drilling and the well was drilled to a total depth of 750 m.

A 4-m interval was tested and flowed 1,595 bo/d. OMV said the significance of the Nasutus oil find was being evaluated. The discovery lies 12 miles east of Airlie Island, where Apache has oil processing and export facilities.

The Baleen-2 appraisal well was drilled by OMV in the Patricia-Baleen gas discovery on Block VIC/RL5 in the Gippsland Basin offshore Southeast Australia. OMV is 100% interest holder in the license.

The company said the well was gas-bearing as expected and was successful in extending the southwestern limit of the field. A 3-D seismic survey will be undertaken in January 2000, prior to a decision on field development.

OMV also participated in the Meranji East-1 extension well on Block PPL 35 in the Cooper Basin onshore South Australia. OMV holds a 2.1% interest in the block, which is operated by 59.75% interest holder Santos Ltd. Santos said the well added to reserves at the Meranji gas field, and would be brought into production in the first quarter of 2000.

The Baleen-2 and Meranji East-1 wells were both drilled on tracts acquired by OMV when it bought out Australian independent Cultus Petroleum NL.

Project Focus: TotalFina starts up multiphase pumps in Dunbar field

The Total Oil Marine PLC unit of Total Fina SA started up multiphase pumps on the Dunbar platform in the UK North Sea, in a bid to boost oil and gas production.

The Dunbar pumps were built to a rotodynamic design developed by Total, Statoil AS, and the Institut Fran

Total said the pumps were designed to increase production by enabling simultaneous liquids pumping and gas compression of the co-mingled wellhead fluids: "This type of pump simplifies production facilities by reducing the amount of equipment required in a conventional arrangement. In light of the prototypes' promising performance, it was decided to develop large capacity pump units."

The pumps will accelerate oil and gas production from Dunbar and increase economic reserves in Dunbar and its Ellon and Grant subsea satellites. Output from the fields is transported by multiphase pipeline to Alwyn platform for treatment before being piped to shore.

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