Are Deepwater Projects Due for a Revival? The oil price downturn spawned a lull in deepwater enthusiasm, but better project execution and reduced project lead times have helped operators achieve lower costs and better returns. What does the landscape for deep water look like in the near term? Will operators get more involved? Subsea Production Systems—Will 2019 Be a Tipping Point?
Noble’s first row of wells in its massive Mustang project is helping increase the operator’s DJ Basin output, and similar results are soon expected in the Delaware Basin. Devon Energy will be getting simpler and smaller by selling two no-growth assets—gas acreage in the Barnett Shale in Texas and oil sand operations in Canada. Its future is staked on growing oil production in the Permian’s Delaware Basin and three other unconventional oil plays. The Oklahoma City independent has a new-look portfolio and new operational and financial priorities. And now it has enlisted an energy research firm to leverage advanced analytics and machine learning to help get the most out of its assets.
ExxonMobil signed a sales and purchase agreement with Zhejiang Provincial Energy Group for LNG supply. Zhejiang Energy is expected to receive 1 mtpa over 20 years. The gas agreement clears the way for the FEED phase; FID expected in 2020. Are Deepwater Projects Due for a Revival? The oil price downturn spawned a lull in deepwater enthusiasm, but better project execution and reduced project lead times have helped operators achieve lower costs and better returns.
The major’s dominant showing in US Gulf of Mexico Lease Sale 252 propelled another rise in bids and dollars for the biannual regionwide auction. Funding for startups in the upstream industry does not always guarantee that oil and gas companies will want to test the new technology. A new venture and accelerator model hopes to change this through guaranteed pilots. The Pluma-1 discovery could turn the southeast portion of Stabroek Block off Guyana "into a major new development area," the company says. ExxonMobil and Hess led the way in the most active regionwide US gulf lease sale thus far.
Decommissioning and abandonment comes with its share of unexpected surprises, but many of those surprises could be avoided merely through better planning and care. These balls have the potential to alter how pipeline inspections are done, and a consortium of pipeline operators and industry experts in North Dakota is examining just how well this emerging technology can handle the small-diameter pipelines in the area. Scheduled for startup in 2022, the FPSO is expected to produce up to 220,000 BOPD on the development offshore Guyana. Liza is one of eight discoveries ExxonMobil has made in area. The Hess-operated field, which drew first oil in January, is expected to produce 80,000 BOPD as production ramps up this year.
Yellowtail-1 is the fifth discovery in the Turbot area, where ExxonMobil plans another Stabroek Block development hub. The Pluma-1 discovery could turn the southeast portion of Stabroek Block off Guyana "into a major new development area," the company says. Already poised to produce more than 500,000 B/D offshore Guyana, ExxonMobil added yet another discovery to its bounty in the emerging regional oil powerhouse, meaning a fourth development phase could be in order. ExxonMobil continues to make major oil discoveries offshore Guyana, a country that today produces no oil. The just-announced Turbot-1 well is the company’s fifth discovery in Guyana’s waters in a little more than 2 years.
The explorer has so far encountered 400 ft of reservoir pay zone in an area where it has three other producing fields. Murphy Oil to Buy Deepwater US Gulf Assets for up to $1.625 Billion The El Dorado, Arkansas-based Murphy has quickly found a home for some of the cash it will receive from the sale of its Malaysia business. The company has been rapidly expanding its US gulf footprint while simplifying its portfolio and targeting more oil. Yellowtail-1 is the fifth discovery in the Turbot area, where ExxonMobil plans another Stabroek Block development hub. With the purchase, the growing, privately-held Chrysaor Holdings will expand its UK North Sea production to 185,000 BOE/D.
BP and partners have sanctioned the Azeri Central East project, the next stage of development of the giant Azeri-Chirag-Deepwater Gunashli oilfield complex in the Azerbaijan sector of the Caspian Sea. Megaprojects have come to define many of the world’s new resource projects but they are also a testament to the awesome engineering capabilities of the oil and gas industry. Find out who took home this year’s honors. Phase 1 of the development today marked the sail-away from Kværner’s yard of the 560-bed living-quarters topside, the largest of its kind in Norway. The combination will operate and share ownership of midstream gas assets in the Utica and Marcellus Shale plays.
BP and partners have sanctioned the Azeri Central East project, the next stage of development of the giant Azeri-Chirag-Deepwater Gunashli oilfield complex in the Azerbaijan sector of the Caspian Sea. This digital deal is helping to make augmented reality a new reality for oil and gas operations. Called Eelume, the underwater drone will perform subsea inspection, maintenance, and repair work. McDermott will work exclusively with Zamil Offshore to provide Saudi Aramco with maintenance, modifications and operations services. A newly launched JIP aims to bridge the BSEE and API frameworks and achieve industry consensus on the analysis and inspection data required to assess the feasibility of an extended service life.
The independent oil and gas company is aiming to build shareholder value through a change in business focus to midstream with this step into pipeline service and construction. The startup of a second FPSO will add 115,000 BOPD to the deepwater project offshore Angola, bringing overall production capacity to 230,000 BOPD. If sanctioned and developed, the deepwater Pecan field would be Ghana’s fourth producing offshore field. First oil is expected 35 months after sanction, which could come as early as this year. The combination will operate and share ownership of midstream gas assets in the Utica and Marcellus Shale plays.