Drilling & Completion News

Maersk Drilling secures work for warm-stacked jackup rig

Maersk Drilling has been awarded a new contract with Petrogas E&P Netherlands for the high-efficiency jackup Maersk Resolute. The firm contract covers the drilling of the A8 and A9 wells in the A12 block of the Dutch Continental Shelf. The drilling of the two wells is estimated to have a duration of 75 days. Further, an option exists to extend the contract for up to five additional wells.

Operations are expected to commence in June 2017 in the Dutch Sector of the North Sea.

The Maersk Resolute had been warm-stacked in the Port of Esbjerg, Denmark. Maersk Drilling has started preparing the rig for the upcoming drilling campaign.

Noble sanctions Leviathan phase 1 offshore Israel

Noble Energy has sanctioned the first phase of the Leviathan natural gas project offshore Israel, with first gas targeted for the end of 2019. The Leviathan field contains an estimated 22 trillion cu ft of gross recoverable natural gas resources.

Leviathan’s initial development will include four subsea wells. Initial proved reserve bookings associated with this investment are 3.3 trillion cu ft net (9.4 trillion cu ft gross) and are expected to be recorded in 2017. This translates into approximately 550 million BOE net, representing an increase of over 35% to total company reserves.

Noble is currently finalizing major project contracts, and long lead materials procurement has begun. Noble Energy and its partners anticipate drilling one to two development wells in 2017. Completion activity for all four producer wells, including two previously drilled wells, is anticipated in 2018. The company expects to initiate commissioning in Q4 2019.

Sakhalin Energy extends rig contract with KCA Deutag

KCA Deutag has been awarded a contract extension by Sakhalin Energy Investment Company for platform drilling services on its three platforms offshore Sakhalin Island in Russia. The four-year contract extension is effective from 1 June 2017 to 31 May 2021.

It covers the provision of a full supply chain service, including drilling and rig maintenance on the Lunskoye-A, Piltun-Astokhskoye-B and Molikpaq platforms, warehousing, management of spare parts and procurement.

KCA Deutag employs approximately 300 employees in Sakhalin. The group’s offshore operations are supported by an onshore operation in Yuzhno-Sakhalinsk and a supply base in Kholmsk, where logistics hub and drill pipe management facilities are located. The group has been contracted with Sakhalin Energy since 2003.

ExxonMobil acquisition to double its permian resource

ExxonMobil will more than double its Permian Basin resource to 6 billion BOE through the acquisition of companies owned by the Bass family of Fort Worth, Texas. Those companies hold an estimated resource of 3.4 billion BOE in New Mexico’s Delaware Basin, a highly prolific, oil-prone section of the Permian Basin.

ExxonMobil will make an upfront payment of $5.6 billion in ExxonMobil shares and a series of additional contingent cash payments totaling up to $1 billion, to be paid beginning in 2020 and ending no later than 2032, commensurate with the development of the resource.

The acquired companies, which include the operating entity BOPCO, hold about 275,000 acres of leasehold and production of more than 18,000 net oil equivalent bbl/day, about 70% of which is liquids. This includes approximately 250,000 acres of leasehold in the Permian Basin, the bulk of that in contiguous, held-by-production units in the New Mexico Delaware Basin, with more than 60 billion BOE estimated in place.

Sevan Marine enters agreement to use cylindrical hull

Sevan Marine ASA has entered into a long-term framework agreement with ExxonMobil for the provision of services and use of Sevan Marine’s cylindrical hull technology.

The company has worked with ExxonMobil since 2015, when the company was awarded a feasibility study to explore the use of Sevan Marine’s cylindrical hull for an FLNG development. The company is currently working on a follow-up study focusing on the hull and marine aspects of its cylindrical design.

The total value of the framework agreement is subject to the calling off of individual orders. Sevan Marine expects the first order under this agreement, involving the continuation of engineering and FLNG design work, to be called off in February.