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Saturday, 30 August 2014

Proserv launches subsea technology roadshow

HOUSTON -- Proserv will present a series of global workshops to demonstrate the company’s Artemis 2G (A2G), its next generation subsea electronics module for control and monitoring communications as a result of a successful event held in Houston. Workshops are to be held in Stavanger, Aberdeen and London over the next three months with plans to hold other regional events in 2015.


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Trelleborg launches subsea vibration suppression system

TRELLEBORG, Sweden -- Trelleborg’s offshore operation has launched a new vortex induced vibration (VIV) system. The high performance T-Strake features a unique modular design enabling more efficient transportation and installation.


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Total to drill offshore Angola, South Africa after CLOV start

Total SA is preparing to drill an exploratory well beneath a layer of salt in waters off Angola this month after successfully starting production at another of the country’s offshore fields yesterday, June 12.


The well in Angola’s Kwanza basin has been earmarked by the explorer as “high impact” as has another scheduled to be drilled at the start of July off South Africa, said Guy Maurice, head of Africa in the exploration and production division of France’s biggest energy company. The wells are part of a push that began more than three years ago to uncover large reserves of hydrocarbons.


“We’re after elephants,” he said in the interview, referring to discoveries holding half a billion boe or more. With the so-called pre-salt Kwanza exploration, Angola is betting its basins mirror the geology off Brazil, where multibillion-barrel finds have been made.


The Angolan field started yesterday, called Clov, will develop proven and probable reserves of more than 500 MMbbl, Total said in a statement. Located in Block 17 off the capital, Luanda, it’s expected to generate 160,000 bpd. The output will help fill a gap for Total from the giant Kashagan development in Kazakhstan that has been halted, possibly for years, as pipelines are replaced due to leaks.


Usan


Clov will generate $1.5 billion in cash flow annually for three years after the field reaches a production plateau in 2015, Maurice said.


With output from its 34 planned wells, Clov and the three other developments in Block 17 will propel the area into the French company’s “most prolific production site” with 700,000 bpd, according to the statement. Total operates Clov with a 40% stake while Statoil ASA has 23.3%, Exxon Mobil Corp. has 20% and BP Plc 16.7%.


Separately, Maurice said the company is in the “final stages” of completing a sale of a stake in the Nigerian offshore oilfield called Usan. Sold to China Petrochemical Corp. for about $2.5 billion, the deal announced in November has taken longer than expected to close, according to Total.


CEO Christophe de Margerie is selling assets to help pay for development of megaprojects like Clov, which cost about $7 billion.


Total has targeted $15 billion to $20 billion of asset sales from 2012 to 2014 and the figure could reach $25 billion, de Margerie said in February, without giving a timeframe.


The company is counting on projects like Clov to increase its oil production to 2.6 MMbpd in 2015 and to about 3 MMbpd two years later. Total has said output will be unchanged in 2014 as it ramps up projects to make up for a loss of 140,000 bpd from a concession in Abu Dhabi.


Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Providencehelp Worldwide Foundation, online.

Suretank launches world's first heated mud container

DUNLEER, Ireland -- Suretank has launched the world' s first heated mud container. The new container was developed in partnership with Norwegian company Onsite Treatment Technologies. The heated mud container has all the standard features of an offshore mud skip and is fully certified to DNV 2.7-1 and EN 12079.


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Friday, 29 August 2014

Luno II discovery may hold up to 71 MMboe, Lundin says

STOCKHOLM, Sweden -- Lundin Petroleum, through its wholly-owned subsidiary Lundin Norway, has announced that the drilling of appraisal well 16/4- 8 S in the Luno II discovery has been successfully completed. The Luno II discovery is located approximately 15 km south of the Edvard Grieg field in the North Sea sector of the Norwegian Continental Shelf (NCS). The well was drilled 4 km southeast of the Luno II discovery well.


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Thursday, 28 August 2014

ION files lawsuit against Russian entities for infringement of seismic surveying patent

ION files lawsuit against Russian entities for infringement of seismic surveying patent HOUSTON – ION Geophysical has filed a lawsuit against OJSC Marine Arctic Geological Expedition (MAGE) and Arctic and Antarctic Research Institute (AARI) in the Russian Commercial Court of


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Noble Energy discovers additional pay at Katmai and Dantzler in deepwater Gulf of Mexico

Noble Energy discovers additional pay at Katmai and Dantzler in deepwater Gulf of Mexico HOUSTON Noble Energy has announced final well results at the Katmai exploration well and the Dantzler appraisal well in the deepwater Gulf of Mexico. At Katmai,


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ONS ’14: Lloyd’s Register Energy looks to the future

STAVANGER, Norway -- Lloyd’s Register Energy has spent this week at ONS 2014 challenging oil and gas companies to re-think their approach to safety, performance and technical innovation to secure the world’s energy supply in a sustainable way, from reservoir and refinery to beyond.


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Chariot granted new licenses in Namibia

LONDON -- Chariot Oil & Gas has announced an update on its Namibian portfolio, its repositioning in the region and forward work program across these licenses. The company has been granted a new license for blocks 2312 and 2412A -- the Central blocks -- and for Southern block 2714A.


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Hunting to open East Africa service centers

LONDON (Bloomberg) -- Hunting Plc, a UK oil services provider, will open servicing and repair centers in Mozambique and Tanzania as explorers expand off East African shores. “The main customers are all there and we want to provide them with their kit,” Peter Rose, CFO of the London-based company, said Aug. 28 in a phone interview.


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N’Goma FPSO arrives at Paenal shipyard in Angola

Following a voyage of 7,331 miles (13,577 km), N’Goma FPSO safely berthed at Paenal’s 490 m quayside at Port Amboim on June 17, 2014. The arrival of the vessel in Angola from Singapore marks the young yard’s second mega FPSO in just eight months.


“Welcoming N’Goma helps to cement Paenal’s key position in the oil industry. Two of the FPSO’s modules were fabricated here, the Sulphate Removal Package and the Hot Oil Pump, both of which have been successfully lifted and integrated onboard the vessel. Paenal is building a reputation as a world-class fabrication and integration yard,” says Cesar Guerra, the yard’s General Manager.
 
Porto Amboim Estaleiros Navais Ltda - known as Paenal yard - represents an important part in the sustainable growth for Angola. The yard - a JV partnership between national oil company Sonangol, SBM Offshore and DSME with holdings of 40%, 30% and 30% respectively - provides an ideal base for the oil industry’s exploration and production offshore West Africa.


“The shipyard is the biggest employer in the region with over 1,200 employees of which over 85% are Angolan. This is an important consideration for our clients. SBM’s first FPSO to berth at Paenal is an important milestone for both the yard and the country,” says Jean-Philippe Rodrigues, SBM Offshore Business Development SVP.


“It demonstrates SBM’s extensive worldwide expertise in relocations and our EPCI capacity across the lifecycle. Together with our partners we look forward to the completion of this large FPSO for our client Eni,” says Ivan Replumaz, MD SBM Offshore Malaysia.


“To meet the project’s specific requirements, the conversion included major upgrade work on the hull, turret and integration of new and refurbished topsides, which was successfully completed in Singapore at Keppel Shipyard. We are now committed to concluding the heavy lifting campaign and integration at Paenal,” says Jerome Garidou, Project Manager.


Once the FPSO is completed, operations will begin on the Eni operated Block 15/06 West Hub offshore Angola by OPS -- a JV company between Sonangol and SBM Offshore -- which celebrated its 10th year anniversary of operations this month.


“The OPS team is keen to welcome the N’Goma FPSO into the Angolan fleet and to start a fruitful relationship with Eni Angola under the 12-year lease and operate contract,” says Fabrice Dumortier, OPS General Manager.


Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Providencehelp Worldwide Foundation, online.

Gulf Marine pays first dividend as offshore demand boosts profit

ABU DHABI (Bloomberg) -- Gulf Marine Services, a provider of support vessels for offshore oil exploration, is to pay its first dividend after interim profit rose amid strong demand. Net income rose 3% to $33.1 million in the six months to June 30, the Abu Dhabi-based company said in a statement. Sales climbed 5% to $90.7 million. The company announced a maiden interim dividend of 0.41 cents a share.


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Plexus secures equipment order from Det Norske

Plexus secures equipment order from Det Norske SURREY, Canada Plexus Holdings PLC, reported that it has received a purchase order (PO) from Det Norske Oljeselskap ASA (Det Norske) to supply surface wellhead and mudline equipment services for an oil and


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Wednesday, 27 August 2014

ONS '14: Blowing onshore experience into renewables

STAVANGER, Norway -- Statoil is making a move into renewables while building on its offshore and project experience. Expecting that renewables will part of the future energy mix, Statoil wants to be part of this future. “We are currently working on the first, full-scale, floating offshore turbine, creating value from our offshore experience in a new arena. As a company we have 40 years of experience in harsh environments, working in waters far from land,” said Siri Espedal Kindem, senior V.P. at Statoil, while addressing an ONS audience on Wednesday afternoon.” Given that this is new territory for us, we are doing this step-wise, but with a long-term perspective.”


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ONS '14: Offshore industry challenged to reduce emissions

STAVANGER, Norway -- The Norwegian government has a directive to reduce overall CO2 emissions in the country by 20% by 2020, and 85% by 2050. Accordingly, the offshore industry in Norway, which produces 28% of all Norwegian emissions, is being pressed to reduce energy consumption, in order to reduce emissions. This comes at a time, when older fields in the North Sea are requiring more energy for production. The challenge to reduce emissions, at a time when reduced production is requiring more energy for IOR, was the subject of a session at the ONS 2014, entitled “Increased Energy Efficiency Offshore -- Technologies for Change.”


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AGR secures trio of contracts for software

OSLO, Norway -- With a total contract value of over $1 million, AGR has been awarded software contracts with Det norske oljeselskap, VNG (Norge) and OMV (Norge). AGR will be delivering its bespoke software products P1, CT and iQ? to support operators’ activities on the Norwegian Continental Shelf. AGR has a strong relationship with Det norske, VNG and OMV both on the software side and operational side having previously delivered well management projects.


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DNV GL-led collaboration to enhance BOP maintenance

HØVIK, Norway -- The maintenance of BOPs has significant financial, logistical and safety implications for drilling operators and rig owners. DNV GL has now established a Joint Industry Project (JIP) to develop a risk-based maintenance methodology with the aim to deliver more effective and cost-efficient BOP maintenance. Several BOP manufacturers, operators, rig owners and shelf state regulators have already joined the JIP, and others may still come on board.


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ONS '14: Innovation award winners show why they won

STAVANGER, Norway -- It’s been a good week for Rune Freyer, owner and inventor at Fishbones AS, as well as Schlumberger’s (Ms.) Emmanuelle Regrain, marketing communications manager, and Christophe Dupuis, Well Placement domain manager. That’s because they represent this year’s winners of the ONS Innovation Awards. On Wednesday morning, both companies were given an opportunity in the ONS Centre Court to explain the award-winning facets of their respective products.


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Well test supports potential hub development offshore Tanzania, BG says

READING, United Kingdom -- The results from a recently completed second drill-stem test (DST) on the Mzia discovery in Block 1, offshore southern Tanzania, provided further support for a hub development to supply a potential onshore LNG project, BG Group says.


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Billionaire Roekke’s Det Norske hits out at Statoil’s dominance

STAVANGER, Norway (Bloomberg) -- Det Norske Oljeselskap ASA, the Norwegian oil producer controlled by billionaire Kjell Inge Roekke, called on authorities to increase competition with Statoil ASA as a way of curbing rising costs. Norway should alter framework conditions to improve competition and check the dominance of Statoil, which operates more than 70% of the nation’s oil and gas output, Det Norske’s CEO Karl Johnny Hersvik said Aug. 27 in a presentation in Stavanger, on Norway’s west coast.


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Strike Energy secures block CO2013-B in South Australia's Cooper basin

Strike Energy secures block CO2013 B in South Australia' s Cooper basin PADDINGTON, Australia Strike Energy Limited reported that it has been successful in its application for block CO2013 B in the Cooper Basin exploration acreage release by the Government of


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Statoil abandons OzBeta-1 well in permit EP 127 in Northern Territory

Statoil abandons OzBeta 1 well in permit EP 127 in Northern Territory CALGARY, Alberta PetroFrontier Corp. (PetroFrontier) reported that Statoil Australia Theta BV. (Statoil), PetroFrontier’s joint venture partner and the operator of the 2014 work program and budget has completed


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Tuesday, 26 August 2014

ONS '14: Improved oil recovery will always support the last NCS fields

STAVANGER, Norway -- Although improved oil recovery (IOR) has already made a lot of history on the Norwegian Continental Shelf (NCS), there is still huge potential for additional production being added through IOR activities. This is why companies and the government, alike, are vesting significant time and money, working together to achieve even greater results.


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ONS '14: Schlumberger’s Norway chief analyzes NCS problems

STAVANGER, Norway -- Cost increases may be a threat to Norwegian E&P activity, but that’s not the only factor in the equation, said Torjer Halle, chairman of Schlumberger Norway. Halle spoke on Tuesday to a late-afternoon, full-house crowd at ONS in Stavanger. “The real problem in Norway,” said Halle, “is that the oil and gas industry is caught between cost increases and a drop in drilling efficiency.” To make his point, Halle pointed to a large chart that showed an overall drop in drilling efficiency, going back to 1999.


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ONS '14: ADNOC strives for 70% ROR as part of production plan

STAVANGER, Norway -- Abu Dhabi’s state-owned company, ADNOC, has set itself the ambitious goal of more than doubling the rate of recovery (ROR) for its producing assets, from 30% to 70%. It is not a wonder that R&D and enhanced oil recovery (EOR) are very high on ADNOC’s agenda these days. Given that this region accounts for about 7% of global oil resources, there is clearly a huge potential for additional value creation.


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ONS '14: Subsea industrialization needed to take cost-cutting deeper

STAVANGER, Norway -- “As an industry, we have to break an unsustainable curve of constant cost increases,” said Tore Halvorsen, FMC’s senior V.P. for Subsea Technologies, while addressing an ONS conference session in Stavanger, Tuesday morning. Furthermore, said Halvorsen, “Within the area of subsea, ‘industrializing’ some of the solutions we are offering may be one answer.”


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Martin LandrØ receives NPD's IOR award for 4D seismic work

STAVANGER, Norway -- Martin LandrØ was presented the Norwegian Petroleum Directorate’s (NPD’s) IOR award for his work on developing 4D seismic for mapping, production management and monitoring of reservoirs, today at the ONS 2014. LandrØ is a professor of geophysics and seismic at the Department of Petroleum Engineering and Applied Geophysics at the Norwegian University of Science and Technology (NTNU).


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Tullow awards subsea contract to WGK for TEN project

Wood Group Kenny (WGK) has been awarded an engineering services contract to support Tullow Ghana Limited and its partners through the execution phase of the Tweneboa, Enyenra and Ntomme (TEN) project, offshore Ghana. WGK will provide subsea, umbilical, risers, flowlines (SURF) engineering services.


The Tweneboa, Enyenra and Ntomme oil fields are situated in the Deepwater Tano area, offshore Ghana, approximately 30 km from the existing Jubilee field.


The TEN Project has been sanctioned by the partners and the Ghanaian government, and contracts have been awarded for the FPSO vessel, subsea hardware, risers, pipelines, umbilicals and for subsea installation.


WGK will provide Tullow with project engineering resources, specialist technical support and technical assurance services across the SURF implementation work scope through to first oil. As well as a core project team based in London, WGK resources will be provided across a range of subsea disciplines and at a number of fabrication sites including the U.S., Norway, Malaysia and Ghana, where Wood Group Ghana Ltd is already established.


The TEN fields lie in the Deepwater Tano block, around 60 km offshore Ghana.  The reservoirs are spread over 800 sq km, and lie in water depths of between 1,000 and 1,800 m.  Development of the TEN Project is being led by Tullow Oil, with partners Ghana National Petroleum Corporation, Kosmos Energy LLC, Anadarko Petroleum Corporation and PetroSA.


The TEN Development Plan was approved by the Government of Ghana in May 2013 and requires the drilling and completion of up to 24 development wells. These will be connected through subsea infrastructure to an FPSO vessel currently under construction in Singapore.  


First oil from the TEN fields is scheduled for mid-2016, and the nominal production capacity of the FPSO is 80,000 bopd.


Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Providencehelp Worldwide Foundation, online.

TGS announces new 3D survey offshore Sierra Leone

ASKER, Norway -- TGS has announced the acquisition of a 3D multi-client survey offshore Sierra Leone. The survey, Sierra Leone Block 4A Extension, will add 1,000 sq km of new 3D data to the existing 6,268 sq km of 3D data library in Sierra Leone.


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ONS '14: The opportunity for enhancing recovery is now, says BP exec

“Norway has stated a goal of reaching a recovery rate of close to 50%. Enhanced Oil Recovery (EOR) can help get this figure higher, and now is the time to do it,” said Trevor Garlick, regional president of BP North Sea, while addressing a Tuesday morning ONS crowd. “Let us not waste what has been found. It is a matter of extending the life of a field.”


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Norway to cut oil-production forecasts as costs delay projects

STAVANGER, Norway (Bloomberg) -- Norway, western Europe’s biggest oil producer, will probably cut its long-term forecast for crude production as companies reduce spending to counter rising costs and improve shareholder returns. As investments in Norway’s oil industry fall after a peak this year, production beyond 2015 will be lower than expected, according to Bente Nyland, head of the Norwegian Petroleum Directorate. The estimate cuts are expected to be reflected in the NPD’s annual prognosis scheduled to be published in January.


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Shell makes gas discovery at Marjoram-1 well in block SK318 offshore Sarawak

Shell makes gas discovery at Marjoram 1 well in block SK318 offshore Sarawak THE HAGUE, Netherlands Shell reported further exploration success in Malaysia with another gas discovery at the Shell operated deep water Marjoram 1 well. “Our strategy to expand


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Norway open to Rosneft expansion as offshore spending slides

Norway open to Rosneft expansion as offshore spending slides MIKAEL HOLTER OSLO, Norway (Bloomberg) Norway is open to OAO Rosneft deepening its involvement in the Nordic country as western Europe’s largest oil and natural gas producer seeks to counter a


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AWE deepens drilling at Senecio-3 in Perth basin after elevated gas shows

AWE deepens drilling at Senecio 3 in Perth basin after elevated gas shows NORTH SYDNEY, Australia AWE Limited (AWE), as Operator of Permits L1 L2 in the Perth Basin, Western Australia, advises that the Senecio 3 appraisal well had drilled


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Cecon takes delivery of Cecon Pride

Cecon takes delivery of Cecon Pride ARENDAL, Norway Cecon ASA (Cecon) has taken delivery of their first vessel Cecon Pride from Davie Yards on Aug. 25, and the vessel is to depart for the Mediterranean at first high tide. Cecon


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Monday, 25 August 2014

Statoil turns to Lundin to make Arctic development profitable

STAVANGER, Norway (Bloomberg) -- Statoil ASA, Norway’s biggest energy company, is seeking talks with Lundin Petroleum AB to link the Swedish explorer’s Gohta discovery to the Johan Castberg field in an attempt to make development profitable.


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ONS '14: Mega projects are game-changers for costs, logistics

STAVANGER, Norway -- In keeping with the theme about upstream cost containment, which swirled through several speeches and presentations on the first day of ONS, an afternoon session devoted to mega-projects had its own references. However, as the speakers all noted, the various projects that they are involved with should be considered “game-changers,” and as such, will generate far more benefits and profits in the long term. Didrik Reymert, project director for Shell’s Prelude FLNG effort offshore Australia’s North West coast, is certainly part of that consensus. Noting the rapid pace by which the project has progressed, Reymert pointed out that this is the first time that Shell’s “revolutionary” FLNG technology will be used. “It has the potential to change the way that we produce natural gas,” said Reymert.


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ONS '14: U.S. shale causing imminent need for NCS cost reductions

ONS ' 14 U.S. shale causing imminent need for NCS cost reductions ANNE EKERN, Contributing Editor STAVANGER, Norway Oil companies and suppliers agree that there is an urgent need for significant cost reductions on the Norwegian Continental Shelf (NCS). Entering into


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ONS '14: Companies need to collaborate on cost situation, conference told

STAVANGER, Norway -- Collaboration is the prescription for innovation, to increase value in the oil and gas industry, said Dr. Helge Hove Halverson in a presentation at the opening day of ONS 2014 in Stavanger, Norway. Dr. Halverson, V.P. for Strategy & Development at Statoil USA, and 2015 SPE President, told an international audience that traditional competitive attitudes must give way to “Collaboration 2.0,” even among traditional rivals, for the industry to become more efficient and innovative, and thereby give greater returns to investors.


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ONS '14: Lloyd’s Register Energy, LR Senergy hold joint industry survey

STAVANGER, Norway -- An innovative survey of five crucial issues affecting the North Sea’s future is to be conducted during ONS by Lloyds Register (LR) Energy and LR Senergy. The key issues, which were borne out of an oil and gas executive dinner that the companies recently held in Aberdeen, include knowledge shortage, decommissioning, supply chain, operating costs and technology.


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ONS '14 Speakers balance energy needs against costs, public concerns

STAVANGER, Norway -- On the first day of the ONS (Offshore Northern Seas) conference, the opening session featured a powerhouse group of speakers that did not disappoint the crowd in its intensity on issues. While each of the four speakers had an agenda to pursue, all of them could agree that the global oil and gas industry faces some significant challenges and opportunities in coming years. Leading off the discussion was Statoil President and CEO Helge Lund, who noted that his firm’s “competitiveness” is under pressure, one of several points that he stressed.


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Petrobras proves potential of Moita Bonita area in the Sergipe-Alagoas basin

RIO DE JANEIRO -- The third well drilled by Petrobras in the Moita Bonita area, in the BM-SEAL-10 concession block of the Sergipe-Alagoas basin, has proved the extension of the gas and light oil discovery made in that area, as released to the market on August 24, 2012. This well, informally known as Moita Bonita 3 (3-BRSA-1244-SES / 3-SES-182), is the second extension well drilled in the area, and is located 82 km off the coast of Sergipe, approximately 5 km from discovery well Moita Bonita 1-BRSA-1088-SES (1-SES-168) and at a water depth of 2,790 m.


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ABS to class second-generation ultra-deepwater offloading unit

HOUSTON -- ABS has been selected to class the Remora HiLoad dynamic positioning (DP) BR loading unit, a second generation of the HiLoad DP system that connects to and keeps conventional tankers in position during crude oil offloading from floating production installations. Traditional offloading methods using a mooring buoy solution can be expensive in ultra-deepwater fields such as those in Brazil' s Santos basin. Addressing the need for a cost-effective and flexible offloading solution in remote regions and harsh environments, Norway-based Remora AS developed the HiLoad technology over 14 years to provide a direct offloading method that can deliver cost savings while exporting crude oil from ultra-deepwater areas.


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ONS '14: Lloyd’s Register Energy launches new guidance for fire loadings and protection

STAVANGER, Norway -- Offshore fire risk requires a deep understanding and improved safety management on offshore vessels and installations, and ocean-going vessels. The new Lloyd’s Register Energy Guidance Notes, launched Aug. 25 at ONS 2014, assist designers, owners and operators of oil and gas equipment on how to assess fire loadings on an installation, and how to protect people and equipment against different fire scenarios.


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ONS '14: NPD core samples on show at ONS

STAVANGER, Norway -- The authority stand at this year’s ONS features a selection of core samples from the Norwegian Petroleum Directorate’s core storage. This collection contains samples from around 1,600 exploration and production wells on the Norwegian shelf. The stand features, among others, a core sample from the very first well that proved oil on the Norwegian shelf in 1967.


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New offshore exploration areas create jobs, reports API

New offshore exploration areas create jobs, reports API WASHINGTON The sale of offshore oil and natural gas leases on Aug. 20 in the western Gulf of Mexico highlights the benefit of allowing development in the 87% of the Outer Continental


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Geo Pacific bags West African seismic contract

Geo Pacific bags West African seismic contract LIMASSOL, Cyprus SeaBird Exploration Plc (SeaBird) reported that it has been awarded a contract for a 3D seismic survey in Gulf of Guinea, West Africa for the vessel Geo Pacific. The survey will


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Sunday, 24 August 2014

UN says oil search in Northern Somalia risks stoking tensions

Two semi-autonomous areas of northern Somalia have largely avoided the violence that’s plagued the rest of the Horn of African nation for decades. Now oil exploration may change that, according to the United Nations.


Territorial disputes between the governments of Somaliland and Puntland, a separatist campaign by a clan-based group and “discrepancies” in oil licensing throughout Somalia are all contributing to simmering tensions in the region, the United Nations Monitoring Group on Somalia and Eritrea said in a May 28 memorandum. Somaliland’s planned deployment of an oil-protection force in the region may also deepen the strains, it said.


“Urgent attention must be given to this issue to avoid commercial activity triggering conflict further down the road,” Jarat Chopra, the coordinator of the monitoring group, said in the report. The document was sent to Bloomberg by a United Nations official who asked not to be identified because it hasn’t been released publicly.


Somaliland and Puntland dispute a border that’s criss-crossed by oil concessions that have been awarded to companies including DNO International, Horn Petroleum and RAK Gas. Oil deposits in Somalia may amount to as much as 110 billion barrels, according to a report published last week by the Mogadishu-based Heritage Institute for Policy Studies. Saudi Arabia, the world’s biggest oil exporter, has 266 billion barrels of proven reserves, BP data shows.


Somaliland declared independence in 1991 following a coup in the Somali capital, Mogadishu, and drew boundaries along the lines of pre-colonial borders of the British and Italian occupied territories. Puntland, which declared itself an autonomous state in 1998, claims parts of Somaliland in the Sanaag and Sool regions. Khatumo, a clan-based political organization, also claims sovereignty over land that straddles the boundary, according to the UN monitoring group.


Chopra cites March clashes in Sanaag province following a visit by Somaliland’s President Ahmed Mohamed Silanyo and the deployment of forces in Sool by Somaliland and Puntland as examples of worsening relations.


“While there has not been major conflict to report, political and military tensions have nonetheless escalated in recent weeks,” he said.


Somaliland Energy Minister Hussein Abdi Dualeh didn’t immediately respond to emailed questions. In a comment on his Twitter account on June 7, Somaliland’s president urged the United Nation monitoring group to “stop meddling in the affairs of Somaliland.” The semi-autonomous region will “protect its economic assets,” he said.


Since presidential elections in January, Puntland President Abdiwelli Mohamed Ali Gaas has been lobbying Khatumo representatives and other clans to drop their independence movement in support of Puntland, aggravating tensions with Somaliland, the UN said. Khatumo has challenged the legitimacy of DNO’s license with Somaliland in the disputed Nugaal block.


DNO entered Somaliland in April 2013 with a block in the Nugaal valley and have a competing claim with Horn Petroleum, which was issued a license in the disputed area by Puntland’s government.


Horn Petroleum is working to resolve disputes over the Nugaal block with the Puntland, Somaliland and Somali governments, along with London-based Genel Energy Plc, DNO and others organizations like the UN, Alex Budden, V.P. of external relations for Africa Oil Corp., Horn’s parent company, said in a phone interview.


DNO’s press officer Henrik Schwabe didn’t respond to four phone calls and three emailed requests for comment.


The United Nation is also concerned about the Somaliland government’s plan to hire Assaye Risk, a UK-based private security contractor, to train and equip a special force to protect oil exploration workers at a cost of as much as $25 million.


“The deployment of the oil-protection unit could play into internal and regional conflicts that appear to be brewing within Somaliland and between Somaliland and other regional authorities,” Chopra said.


Deeq Yusuf, chief of staff in the Puntland presidency, said his government sees the oil-protection unit as “part of the continued aggression and clan expansion of Somaliland against the territory and people of Puntland.”


Assaye Risk director Arabella Wickham said the 420-member oil protection unit would provide security services to international oil companies allowing the country to pursue one seismic operation.


“Within the blueprint, Assaye Risk clearly defined the operational remit of the OPU as defensive and pre-emptive only with a mandate confined to protective services in support of the energy industry,” Wickham said. The “government owned and commercially operated” unit would be recognized by the UN and constituted by Somaliland law, she said.


Puntland already has a similar force known as the Explorations Security Unit that provides protection for Africa Oil workers, according to the Heritage Institute.


Genel, which is exploring blocks in Somaliland, suspended seismic operations in September because of what it said was a “deteriorating security situation.” The company welcomes Somaliland’s plan to boost security, spokesman Andrew Benbow said in an emailed response to questions.


“Discussions continue with the government in order to facilitate a resumption of activity,” he said.


Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Providencehelp Worldwide Foundation, online.

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