Statoil to cut oil sands CO2 emissions by 20%

Statoil ASA expects to decrease carbon-dioxide emissions per barrel from its Canadian oil-sands projects by 20% within six years, responding to environmental criticism of the crude production method.

Norway’s biggest energy producer said yesterday that carbon intensity from its oil-sands operations rose 25% from a year earlier to 69.7 kilograms of carbon dioxide per barrel.

Statoil is applying solvents to its steam-assisted techniques and will use valves to better direct steam to areas that need it, Staale Tungesvik, president of Canadian operations, said in a telephone interview. The Stavanger-based company also is considering different drilling techniques and more efficient water-recycling processes.

“The difference between oil sands and conventional oil production is that we use gas to heat water to create steam, so the footprint of CO2 is very much out of the generation of steam,” Tungesvik said. “We believe that we have identified technologies that will help us reach our target of reducing CO2 intensity by 20% by 2020.”

Emissions from Alberta’s oil sands have become a focal point for opposition to Calgary-based TransCanada Corp.’s Keystone XL pipeline, which would carry bitumen from the oil sands to U.S. Gulf Coast refineries. Opponents like billionaire Tom Steyer say the line would encourage companies to exploit the world’s third-largest crude reserves, unlocking vast amounts of carbon and accelerating climate change.

Carbon emissions from the oil sands won’t improve without new government policy, said PJ Partington, an Ottawa-based analyst at the Pembina Institute, an environmental think tank.

“Without more stringent policies to drive innovation and deployment of new technologies, carbon intensity is expected to remain flat for the foreseeable future,” Partington said by phone.

The intensity of greenhouse gases in oil-sands emissions fell 7.7% from 2008 to 2012, the Canadian Association of Petroleum Producers, an industry group, said in a Nov. 5 report.

Oil-sands crude is on average 9% more carbon intensive than the U.S. average on a wells-to-wheels basis, which measures CO2 emissions from the start of oil production through to combustion, according to the CAPP report.

Statoil’s carbon emissions from oil-sands production will likely decline this year, Tungesvik said. “With stable production and new technology, I would expect we’ll have lower numbers this year than we had last year,” he said.

By 2025, the Norwegian company has voluntarily targeted to reduce CO2 intensity at its oil-sands operations by 40%.

“It’s about earning more money,” Tungesvik said. “And we think that should go hand-in-hand to improve environmental impact.”

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Blockline and Associate Ltd Nigeria Ltd, online.

Petrobras starts third well at Santos basin’s Sapinhoá field

Petrobras has announced the start-up of well 7-SPH-04-SPS, at a water depth of 2,120 m, in Sapinhoá field, in the Santos basin pre-salt region. This well has an estimated production potential of 26,000 bpd and is interconnected to the FPSO Cidade de São Paulo through the platform connecting system known as BSR (Buoyancy Supported Risers).

This is the third production well of the Sapinhoá Pilot Project and the second to go in operation through the BSR gathering system, following the start-up of well SPS-77A, which has been producing approximately 36,000 bpd since February 18, 2014.

FPSO Cidade de São Paulo has the capacity to process up to 120,000 bpd and has been in operation since January 5, 2013, when it was directly interconnected to well SPS-55. The fourth production well of the project will be interconnected early in the second half of the year. With the start-up of this well, the platform will reach its full output capacity.

Besides the first buoy already installed in Sapinhoá field, three other similar systems have been commissioned for installation in Santos basin pre-salt fields. Of these three, one more will be destined for Sapinhoá field (Sapinhoá Pilot Project - FPSO Cidade de São Paulo) and the other two for Lula field (Lula Nordeste Pilot Project - FPSO Cidade de Paraty). FPSO Cidade de Paraty, with the capacity to process up to 120,000 bpd, went into operation on June 6, 2013, when it was directly interconnected to the output of well LL-11.

Installation of the second buoy, destined for Lula field, was completed in February in less than a third of the time it took to install the first one, due to improvements made to installation processes. Then, on March 9, installation of the rigid steel pipelines to gather the output from two NE Lula wells, through the buoy, was completed.

At this time, installation is underway of the flexible pipelines of well 7-LL-22D-RJS, the first production well to be connected to the Lula NE buoy. This well will go in operation this quarter. Then, two other wells will be interconnected and FPSO Cidade de Paraty will reach its full output capacity in the third quarter of this year.

Two other buoys will be installed in the first half of the year

Operations to interconnect the third buoy in Sapinhoá field are ahead of schedule. The buoy is already submerged and attached to its foundations. Installation work will be completed this quarter.

The fourth and last buoy, designed for Lula field, is already on site and is currently in the initial installation phase, according to schedule. Installation is also expected to be completed this quarter.

Sapinhoá field is operated by Petrobras (45%), in partnership with BG E&P Brasil Ltda (30%) and Repsol Sinopec Brasil S.A. (25%).

Lula field is operated by Petrobras (65%), in partnership with BG E&P Brasil Ltda (25%) and Petrogal Brasil S.A. (10%).

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Blockline and Associate Ltd Nigeria Ltd, online.