Details of the twin-platform project to tap the UK’s Golden Eagle area emerged from Nexen. There was a major new oil find offshore Brazil, RWE Dea suggested collaboration was possible for its Norwegian Zidane discovery, and Technip signalled a move into Brazil’s pre-salt deepwater market.

EXPLORATION

New find near Carioca
Another big oil find was confirmed near the huge Carioca discovery offshore Brazil.
Partner BG Group confirmed today that a new light oil discovery has been made in the Santos Basin offshore Brazil at Carioca North Sea with the 3-BRSA-861-SPS well - informally known as Carioca North-East.
“Initial analysis of the discovery has confirmed the presence of a light oil accumulation - approximately 26° API- in a 200-metre (65 6 foot) reservoir section,” BG reported, adding: “Drilling on Carioca North-East has been concluded and drill stem tests will be conducted in due course.”
BG said the well was drilled in a water depth of 2,151 metres (7,055 ft), and was located 275 kilometres (172 miles) offshore from Sao Paulo state, and nine kilometres (5.6 miles) north of the original Carioca discovery which was made in September 2007. Carioca lies close to the giant Tupi discovery – made in October 2006 - in block BM S 11.

Miran West gas is major
London-listed Heritage Oil has reported a huge find after further appraisal drilling at the Miran West structure in Kurdistan which is now thought to be the largest gas field in Iran and the biggest discovery there for 30 years.
In place gas volumes at Miran West are estimated to be between 6.9 and 9.1 Trillion cubic feet with an upside of 12.3 Tcf Heritage Oil stated today – enough for a Liquefied Natural Gas project.
Heritage says the find is worth US $2.7 Billion to the company, with mean risked contingent and prospective resources thought to be worth 744 m boe based on the company’s 75% equity in the find.
Accelerated development of Miran West is planned with a third appraisal well which is due to kick off in the second quarter this year.First production from the field is slated for 2015,

Luno area prospect well spuds
Sweden’s Lundin Petroleum has spudded a new exploration well offshore Norway in PL338 near the Luno field.
Lundin said today that the 16/1-15 exploration is targeting the Tellus prospect, just north of the Luno field development area.
Drilling with Dolphin Drilling’s Bredford Dolphin semi-submersible, the Tellus well is targeting a gross unrisked prospective resource potential of up to 40 million barrels of oil equivalent, which could boost the reserves for the Luno project.

Centrica set for new Irish Sea drilling
Centrica is rolling out a new Irish Sea drilling programme which will aim to tap up to three potential new fields.
Centrica’s subsidiary Hydrocarbon Resources Limited is looking at drilling three wells in block 113/27b targeting the Rhyl development prospect plus two exploration wells on the Whitehaven and Bootle prospects using a jack up rig.
Planning for the drilling programme includes well testing and if commercial hydrocarbons are found, Centrica indicates that the wells will be suspended with xmas trees for future development.
Currently Centrica is planning for a Whitehaven exploration well in June, then a Rhyl gas field development well in July, followed by the Bottle exploration well in July or August.

Ocean Vanguard set for North Sea well
Statoil received permission for using Ocean Vanguard for one of its forthcoming exploration wells in the North Sea.
Diamond Offshore's Ocean Vanguard gained a green light from the Norwegian Petroleum Safety Authority for the 30/11-8 well in production licence 035, about 20 kilometres southwest of the Oseberg Sør field.

Sterling to sidetrack Sangaw North
Sterling Energy said it is to sidetrack its Sangaw North well onshore Kurdistan after recovering some of the drillpipe following an influx of gas into the wellbore.
London-listed Sterling said the well is to be sidetracked to approximately 3,300 metres (10,824 ft) – just above the point where a gas influx was recorded flowing into the wellbore.

FIELD DEVELOPMENT

Golden Eagle to fly with twin platforms
Nexen’s UK North Sea Golden Eagle development will see a major new development with a twin platform complex and two subsea drilling centres with up to 24 wells.
Production from the Golden Eagle Area Development – now referred to as GEAD by Nexen – will be processed at a major new central platform complex and the
project involves tapping two fields, Golden Eagle, and Pink, just north of Nexen’s Buzzard field in the Central North Sea spanning blocks 20/1N, 20/1, and block 14/26a, about 70 kilometres offshore from the UK coast.
One of these new platforms will be a wellhead facility, which is to be linked via a 70-metre (230 ft) bridge to a major production, utility and quarters (PUQ) platform. Both will stand on new steel jackets.
Current planning by Nexen indicates that the PUQ will handle all processing for Golden Eagle field fluids, and will also provide utility systems and accommodation.  This facility will receive output from the new wellhead platform, and from two subsea drill centres to the north and south.
Nexen is considering two oil export options for the project: Either into the Forties Pipeline System using a possible tie-in at Nexen’s Buzzard field, which means a new 20 kilometre (12.5 mile) pipeline, or through the Claymore field to Scotland’s Flotta terminal – which requires a new 75 km (48) mile pipeline.
Gas will be exported to into the Scottish Area Gas Evacuation (SAGE) pipeline via a new 16.75 km (10.5 mile) export line to an Ettrick field pipeline end manifold,
A schematic of the development shows a northern drill centre with six drill slots located 5.2 km (3.25 miles) north of the main field complex. At the southern manifold, 3.9 km (2.43 miles) from the main complex, there will be a four-slot drilling template.
Offshore construction is due to start in 2013.
 
Zidane collaboration possible
RWE Dea has initiated a collaboration which could realise values corresponding to half the Ormen Lange field.
Zidane was one of the largest gas discoveries on the Norwegian continental shelf last year, but it is too small to justify an independent development. Zidane requires a pipeline and gas process facility, but both are scarce in the area, forcing the operator to think differently.
RWE Dea is therefore interested in collaborating to realise development of Zidane, plus Total's Victoria discovery and Centrica's Fogelberg. The Heidrun platform and a possible pipeline from Luva to Nyhamna are also key factors in RWE Dea's plan.
“If we transport our gas to Heidrun, the field could use its own gas to keep the pressure in the reservoir and extract more oil. Victoria is a large, but difficult discovery. Fogelberg is a smaller discovery which may need a solution for the area to be developed. We have talked to all the parties, and everyone thinks it is an exciting thought. We think that gas could be a good contributor. We know the authorities like the idea. This could prove to be a win-win-win-win situation,” Hugo Sandal, RWE Dea president in Norway, told Offshore.no.
Total confirmed collaboration is necessary for developing Victoria.
“We and AS Norway hoped Victoria would be the new hub in a new development in the Norwegian Sea. Drilling results showed that this was not going to happen. Estimates were lowered substantially, but even though Victoria is not the hub, it could still be part of the wheel. The resources are there, but we are in need of collaboration. Therefore, we are keeping a keen eye on the activities in the area,” Total Norge spokesman Dag Olaf Ringe told Offshore.no.

New SNS opportunity
Tullow Oil signalled new opportunities in the UK sector of the Southern North Sea where the Harrison gas field development is moving ahead and a tieback is being considered to defer decommissioning at the Thames gas field.
In a trading update Tullow signalled work was underway on the Harrison field development in the Caister-Murdoch field area. Work on Harrison progressed well last year and Tullow says partners are now aligned on an export route and development concept planning.
“The development is likely to receive partner approval early in 2011 and the Field Development Plan is expected to be submitted mid-year,” Tullow stated.
Also after an equity deal with ConocoPhillips, Tullow increased its stake in the nearby Cameron prospect exploration well which is due to be drilled in April just to south of Harrison in UK block 44/19b.

WEATHER FORECAST

Week 5 - Lows lining up

Last week was dominated by blocking High over the British Ilse and southern parts the North Sea, forcing the Lows to track over the Denmark Strait and eastwards to northern parts of Norwegian Sea and Barents Sea. This week a High pressure will build off the coast of Portugal with ridge extending eastward over the continent, enabling new intense Lows from north Atlantic to take a more easterly path into the Norwegian Sea and later across N Scandinavia.

During the week several frontal systems and troughs will pass in the North Sea and Norwegian Sea, causing SW'ly wind up to near gale or gale force and increasing wave heights. In the Norwegian Sea wave heights up to 5-8 m (Hs). The Barents Sea will as the Lows in the Norwegian Sea continues eastwards across N Scandinavia, experience NE-SE'ly windflow of near gale force at times.

CONTRACTS

Bergen group secures Statfjord modification
Bergen Group Offshore has secured a Statfjord modification job for Statoil.
EPCI-contract includes modifications to Statfjord B and C to upgrade the control systems for diesel engines and fire water pumps.
“Modifications to platform controls systems represent a steady portfolio of projects from our clients in the years to come, and by this award we have demonstrated that a major client such as Statoil recognize our competence within this area”, says Kristin Færøvik, Executive Vice President at Bergen Group Offshore and CEO at Bergen Group Rosenberg.
Planning and engineering will start immediately. Offshore installation and commissioning are scheduled to start in the third quarter 2012.
The project will be executed jointly with Norse Technology AS who is main partner to Bergen Group Rosenberg for the project.

Big Foot topsides deal bagged by KBR
Chevron USA has selected KBR to carry out topsides engineering for its US Gulf of Mexico Big Foot deepwater development.
KBR will carry out the work for the Walker Ridge block 29 project after previously completing Front End Engineering and Design for the facility, which will be based in water depth of 5,200 feet (1,585 metres) and 35 miles (56 kilometres) south from Chevron’s Tahiti field.
Engineering, procurement support will be provided by KBR during the detailed design phase for the development which involves an integrated production facility with dry trees, based on an extended tension leg platform hull concept.  Topsides at Big Foot will provide oil and gas separation, gas compression and dehydration services, plus export, oil treatment, and export pumping.
“This contract award is …a symbolic one for KBR as it marks the company’s successful re-entry into the offshore engineering market in the Gulf of Mexico, “ declared said Roy Oelking, president of KBR Oil & Gas.

Russian Pacific deal
Bennex has been contracted to deliver subsea distribution systems to Russia’s Sakhalin III project.
Deliveries, which have already started, include electrical and hydraulic distribution systems. Bennex will manufacture and test the equipment in Kongsberg.

Cape contracts support
Offshore support provider Cape Industrial Services handed out a £4.5 million (US $7.1 m) deal for work in the UK and Dutch sectors of the North Sea.
Cape contracted Aberdeen-based EnerMech to provide power generation, blasting and tooling, lifting and rigging equipment for Cape’s plant hire services for its coatings, insulation, access and cleaning operations for installations in the UK and Dutch North Sea. EnerMech’s three-year deal also includes options to provide service and maintenance for Cape equipment.

Statoil extends Fabricom's TVM deal
Statoil extended a TVM framework contract with Fabricom.
The deal which concerns modifications on Snorre and Statfjord has now been extended from February to end of 2011, according to Fabricom.

Odfjell bags Veslefrikk EPC
Odfjell Drilling clinched an EPC(I) contract for the Veslefrikk field with immediate start up.
Odfjell will cooperate with Aibel on the project that includes upgrading the drilling system and installing a new drilling control centre at Veslefrikk, in a deal worth NOK 160 million.

More work in West Africa for RXT
RXT has received an extension to an existing seismic deal which will provide more work for vessels operating offshore West Africa. The extension secures RXT1 and RXT4 more work in West Africa until the end of February 2011, worth an estimated value of US $13 million, RXT says in a stock exchange notice.

COMPANY NEWS
 
PGS and Seabird join forces
PGS and Seabird Exploration have agreed to develop ocean bottom node solutions for deepwater further, and have signed a cooperation agreement.
CEO Jon Erik Reinhardsen of PGS says: “This agreement enables the two companies to provide a complete seismic offering in deep water areas, in areas with complex geology, and in areas with heavy infrastructure on the sea bottom.”
Seabird will issue a five-year loan of NOK 240 million to PGS. According to a statement, PGS will gain exclusive rights to offer SeaBird's autonomous seabed recording technology at market terms in Brazil.
 
Stream acquires Ahlsell Oil & Gas
Stream - previously Bjørge – has started expanding and acquired Ahlsell Oil & Gas.
When Bjørge recently split into Stream and Align, acquisitions were signalled as the strategy for continued growth.
“Stream specialises in valves and instrumentation. Ahlsell speciality is pipes and flanges. This acquisition therefore enables Stream to offer a more complete system," Steinar Aasland, chief executive of Bjorge told Offshore.no.
“The idea is to expand the product portfolio and create a platform for continued growth. Ahlsell Oil & Gas will get a new name and a new owner with a focus on oil and gas. Employees will get some new colleagues, but the company will still exist as a unity under the Stream umbrella,” Aasland says.

Technip invests in Brazil
Technip started a new investment strategy to expand its pipe manufacturing in Brazil adding capacity for additional volume and high-end products as its seeks to enter the market for pre-salt field products.
Development of Brazil's hydrocarbon reserves in recent years has driven huge growth in demand for flexible pipes for infield flowlines and risers, which is expected to continue, Technip indicated. “It is essential that this increasing demand is met locally, to the benefit of the Brazilian economy,” the company declared.
“The new manufacturing site will focus on high-end products, which are products unique to Technip. The investment process will start in 2011 with preparing the construction site costing an estimated €30 million. Additional phases will follow upon completion of discussion with clients tailored to their technological needs.”

Wood Group sets up Malaysian venture
Aberdeen-headquarter John Wood Group’s US engineering subsidiary Mustang formed a new joint venture to penetrate the Asian energy market.
Mustang Engineering in Houston teamed up with Sime Darby’s energy and utilities division to form Mustang Sime Darby which will target project management, design and procurement support for oil and gas projects in South East Asia operating from a regional hub in Kuala Lumpur.
Sime Darby is a Malaysian conglomerate with interests ranging from plantations, to industrial, automotive, energy and utilities industries with oil and gas operations led by Sime Darby Engineering.

Statoil extends Fabricom's TVM deal
Statoil has extended a TVM framework contract with Fabricom.
The deal which concerns modifications on Snorre and Statfjord has now been extended from February to the end of 2011, according to Fabricom.

Odfjell bags Veslefrikk EPC
Odfjell Drilling won an EPC(I) contract for the Veslefrikk field with immediate start up. Odfjell will cooperate with Aibel on the project that includes and upgrade of the drilling system and installing a new drilling control centre on Veslefrikk.
The contract is worth NOK 160 million.

CONFERENCES AND EXHIBITIONS

OTD 2011 is 75% sold out
Offshore Technology Days 2011 OTD which takes place in Stavanger in October is already a huge success.
“Nine months before the exhibition opens, the 3,300 square feet of exhibition space has been to sold to 180 companies representing 75 percent of the available capacity,” says sales director Odd Eide Knudsen of Offshore Media Group.
Major offshore companies ABB and Subsea 7 have just agreed to attend OTD 2011 bringing still more enthusiasm for the event in Stavanger Forum, which takes place 19-20. October.
It is the first time  in the history of the ten-year-old fair that it is being held in Stavanger after it moved from Bergen because of the lack of exhibition facilities there.

LICENSING

Statoil wins Angolan bid
Statoil has been awarded operatorships and partnerships in five blocks offshore Angola, according to a public announcement from the national oil company Sonangol.
The company submitted a proposal in Sonangol's restricted public bid round for access to pre-salt acreage in the Kwanza Basin. Statoil’s proposal included operatorship of blocks 38 and 39 and participation in blocks 22, 25 and 40 including a work programme and a signature bonus for each block.
“The Angolan pre-salt is a frontier play with high potential. This presents Statoil with the opportunity to access several high impact exploration prospects which are believed to be analogous to pre-salt Brazil. Securing a multiple block portfolio early on in the exploration of this new play is a big advantage. Such a strong and influential position gives Statoil exposure to significant upside potential should the play be proven,” said Tim Dodson, Statoil’s executive vice president for exploration.

RENEWABLES

World wave and tidal market worth US $1.2 Billion
A new report on the offshore renewable energy market suggests spending on the wave and tidal sector could hit US $1.2 Billion worldwide in the next five years.
After annual capital expenditure put a $52 million last year, the figure is set to rise to $500 million by 2015, according to new research.
“Installations in 2011 are more than double those in 2010 and a total of 150MW of wave and tidal current stream capacity is forecast to be installed between 2011-2015,” the World Wave and Tidal Market Report 2011-2015 report by Canterbury, UK-based Douglas Westwood suggests.
Currently the UK is leading the world in the level of installed capacity in the wave and tidal sector, with a total of 110 Megawatts of generating capacity installed.

Vattenfall seeks new offshore wind farm
Sweden’s Vattenfall is looking to build a new North Sea offshore wind farm.
According to the Reuters, the company’s chief executive Oystein Loseth, construction of the new offshore wind farm would begin in 2015.
“We have this area in the North Sea where there is a possibility to build up to 7,200 Megawatts,” the Vattenfall chief was quoted as saying, Reuters reported.
His comments came during an upbeat discussion about the UK’s offshore wind farm prospects.

DC grant powers up research
British-based power conversion specialist Converteam has landed a £328,000 grant to work on game changing technology for offshore wind farms.
Based in Rugby in Warwickshire in central England, Converteam has secured the grant from Scottish Enterprise to progress research and development of direct current (DC) power conversion equipment which the company claims can offer up to a 20% saving on the overall costs of wind farm ownership.