VNG Norway discovers 226-m hydrocarbon column near Njord field

VNG Norge AS, operator of production licence 586, has concluded the drilling of exploration well 6406/12-3 S. The test results indicate a discovery far larger than expected.

The well was drilled on the Halten Terrace, about 33 km southwest of the Njord field.

The main objective of the well was to test the hydrocarbon potential in the Pil prospect, up-dip from the offset well 6406/12-1 S. The primary reservoir target was Upper Jurassic sandstones of the Rogn and Melke formations.

The well encountered a 91 m gas column and a 135 m oil column in Upper Jurassic sandstones. Preliminary analyses based on extensive coring, wireline logs and pressure data show that the well has encountered sandstones with very good reservoir properties.

An extensive data acquisition program was carried out in the well, including a successful production test. The production rate was 1,067 Sm3 oil per flow day through a 56/64-in. nozzle. The test showed good flow properties and the gas/oil ratio was 152 Sm3/Sm3. Preliminary estimates place the size of the discovery at between 8 and 27 million Sm³ recoverable oil equivalents with a considerable additional upside volume within the Pil closure not proven by the well.

Production licence 586 was awarded on 4 February 2011 (APA 2010) and this was the first well to be drilled in the licence. 6406/12-3 S was drilled to a vertical depth of 3,738 ms below sea level, and was terminated in the Upper Jurassic Melke formation. The water depth is 324 meters. The well will now be permanently plugged and abandoned.

Well 6406/12-3 S was drilled by the Transocean Arctic drilling facility, which will now first drill a a down dip sidetrack to prove up the lateral extent of the Pil reservoir and the upside case.

This will be followed by a further sidetrack to assess the potential of the neighbouring Bue target.

VNG Norge is the operator in PL586 with a 30% share. Partners are Spike Exploration (30 %), Faroe Petroleum Norge (25 %) and Rocksource Exploration Norway (15 %).

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Canada needs to push harder on Gateway pipeline, Alberta minister says

Canada’s federal government isn’t doing enough to build support for Enbridge Inc.’s proposed pipeline to ship crude from the oil sands to the nation’s Pacific coast, said Alberta Finance Minister Doug Horner.

“The federal government needs to step up here a little bit” to convince aboriginal groups and the general public that the Northern Gateway pipeline is in the nation’s interest, Horner said in an interview at Bloomberg headquarters in New York. “We’ve suggested to them that they may want to get involved.”

Opposition by aboriginal groups and environmentalists is clouding Canada’s plans to develop Alberta’s oil sands, home to the world’s third-largest recoverable crude reserves. Producers such as Royal Dutch Shell Plc and Total SA are counting on projects such as Northern Gateway and TransCanada Corp.’s Keystone XL to ease a transportation bottleneck that has suppressed the price of Canada’s heavy crude, costing the economy C$50 million ($46 million) a day, according to the Canadian Chamber of Commerce.

The federal government should make it clear the pipeline is of national economic importance, said Horner. “You have to remember that a lot of what we do in western Canada creates economic activity and jobs in eastern Canada,” he said.

Harper’s government must decide whether to approve Northern Gateway by June. A regulatory panel said in December the project could move ahead under certain conditions.

British Columbia, the country’s westernmost province, has said it will only back the project if it meets five conditions, including greater engagement with aboriginals and increased financial benefits for the province. Local communities say there’s too much risk and too little benefit to having an oil pipeline cross their region.

Canadian Finance Minister Joe Oliver, who was the country’s natural resources minister until last month, told reporters today the government is constrained in what it can say until the cabinet issues its decision.

Horner’s comments followed a speech by former Canadian prime minister Brian Mulroney in which he called for a “strong national commitment” to export the nation’s natural resources to markets around the world, in particular Asia.

“We cannot sit back, contemplating our collective navel and expect customers to knock on our door,” Mulroney said yesterday. “We have to demonstrate convincingly that we are capable of doing what is required to earn their confidence that we are a reliable, efficient source of supply.”

Horner said he’s “cautiously optimistic” the U.S. will approve TransCanada Corp.’s Keystone XL pipeline, which would link the oil sands to refineries along the Gulf Coast.

President Barack Obama’s administration is reviewing the route, which was first proposed in 2008.

“We are not just focused on Keystone,” Horner said. “We are looking at all three of the opportunities that are there today -- that’s east coast, west coast and to the south.”

Horner also said he is “seriously considering” running to succeed Alison Redford as leader of Alberta’s ruling Progressive Conservative Party. Redford stepped down last month amid questions about her expenses and leadership.

Horner is also speaking today to the Canadian Association of New York.

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Baker Hughes acquires software technology company Perfomix

Baker Hughes stated the acquisition of Perfomix, a Texas-based oilfield software technology company focused on solutions to enhance oil and gas operations' performance. Perfomix will operate as a wholly-owned subsidiary of Baker Hughes and will be integrated into the company' s remote operations services organization.

Perfomix offers a data and advisory services delivery platform to support drilling, pressure pumping, completions and production operations, and regulatory reporting requirements. The addition of Perfomix will expand the Baker Hughes portfolio of field devices integration, real-time data management, visualization, and analytics software, thus complementing existing capabilities with a modern, elastically scalable and standards-based technology platform.

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Petronas awards RSC to EQ Petroleum, Uzma Energy Venture

Petronas has awarded a small field risk service contract (SFRSC) to EQ Petroleum Developments Malaysia and Uzma Energy Venture (Sarawak) (Uzma) for the development and production of the Tanjong Baram field, located about 6 km offshore Sarawak.
 
The SFRSC was signed on 27 March in Kuala Lumpur, where Petronas was represented by its V.P. of Petroleum Management Encik Adif Zulkifli, EnQuest by its Head of International Mr Faysal Hamza and Uzma by its CEO Dato’ Kamarul Redzuan Mohamed.
 
Under the terms of the contract, Petronas is the project owner while EnQuest and Uzma are the contractors for this petroleum arrangement.
 
“This SFRSC will see EnQuest and Uzma conduct development and production works at the Tanjong Baram field. The first hydrocarbon from the Tanjong Baram field is expected to be within 11 months from now,” said Adif Zulkifli.
 
Petronas has awarded four RSCs to date, the Berantai field to Petrofac and Sapura Kencana Petroleum in January 2011, the Balai-Bentara cluster off Sarawak to a consortium comprising Roc Oil, Dialog Group and Petronas Carigali in August 2011, the Kapal, Banang and Meranti cluster to Coastal Energy KBM in June 2012 and the Tembikai-Chenang cluster to Vestigo Petroleum in October 2013.

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Inpex to make Australia focus of $44 bn exploration plan

Inpex plans to spend $44 bn on exploration and development to double its production by early next decade, investing a significant amount in Australia.

Inpex, developing the $34 bn Ichthys LNG project in northern Australia, already has stakes in 10 exploration blocks surrounding the Ichthys field, President Toshiaki Kitamura said in notes for a speech he’s scheduled to give at a conference in Perth. The LNG will be produced in the Northern Territory capital of Darwin.

“I fully expect we will discover resources to supply the Ichthys LNG plant in Darwin well into the future,” he said. The investment goal is over five years through 2016, he said.

The Ichthys LNG project, one of seven under construction in Australia to meet rising Asian demand for the fuel, is expected to generate total revenue of more than $232 bn, Kitamura said. The developments are forecast to make the country the world’s largest exporter of LNG.

Disagreement between LNG buyers and sellers about how the gas should be priced and future supply and demand could delay the expansion of the LNG industry in a “worst-case scenario,” Kitamura said. Buyers should consider becoming the sellers’ partners in the development of the gas fields as one way to align their views on the market, the Inpex president said.

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