Following the receipt of necessary approvals, Premier Oil has announced the completion of sale of its interests in the Babbage Area to Verus Petroleum.

Premier received £30.3 million ($38.7 million), after adjustments, for Babbage cash flows collected by Premier since the effective date of 1 January 2018. In addition, Verus will take on exploration commitments valued at around $24 million. Production from Babbage has averaged 2,500 barrels of oil equivalent per day over the year to date. Read more…

 

Sparrows Group has signed a five-year blanket order with Pemex Procurement International, acting on behalf of Pemex Exploracion y Produccion (PEP), to service 41 cranes across assets in four of the national oil company’s developments.

As the original equipment manufacturer (OEM), the first cranes were delivered by Sparrows in the early 1990s to support production in the Kumaza (AS01-02), Abkatun (AS02-03), Litoral (AS02-04) de Tabasco and Cantarell (AS01-01) fields. Read more…

 

Apache Corporation has initiated production from its Garten development on Block 9/18a Area-W in the UK North Sea. The discovery well, located 6 km south of the Beryl Alpha Platform, was placed on production in late November, less than eight months after being drilled in March 2018.

The well is currently producing at a rate of 13,700 barrels of oil per day and 15.7 million cubic feet of gas per day. Recoverable resources are expected to exceed 10 million barrels of light oil plus associated natural gas. The Garten field, in which Apache holds a 100% working interest, is tied back to the Beryl Alpha platform 180 miles northeast of Aberdeen. Read more…

 

London and Stockholm-listed EnQuest has completed its acquisition of the remaining 75% interest in the Magnus oil field and an additional 9% interest in the Sullom Voe oil terminal and supply facility from BP. The deal also includes additional interests in associated infrastructure, as set out in its initial 7 September announcement.

As outlined at the time, the addition of Magnus is expected to add 60 million barrels of oil equivalent in 2P reserves, 10 million boe 2C resources and approximately $500 million of net present value (NPV) to the group.

EnQuest now has a 100% equity stake in Magnus, 15.1% in the Sullom Voe Terminal, 18% in the Ninian Pipeline System and 41.9% in the Northern Leg Gas Pipeline. Read more…

INEOS Oil & Gas UK has completed a project to re-route production from its Clipper South field via the Shell-operated Clipper field into the Bacton processing terminal.

Working with joint venture partner Spirit Energy, the $80 million investment in a new pipeline and subsea equipment will extend the life of the Clipper South field, following the closure of the existing facilities at the Theddlethorpe Gas Terminal in October, previously operated by ConocoPhillips. Read more…

 

Aberdeen-headquartered READ Cased Hole Ltd has acquired US-based well integrity specialist, Proactive Diagnostic Services (PDS).

PDS was founded in 1995 to offer memory well-logging services to the Alaska region. Today the business has grown to service customers throughout the Lower 48 and Gulf of Mexico, providing surface readout and memory diagnostic technologies, data analysis, and proprietary software.

The strategic acquisition positions READ as a leading independent global provider of production logging, well integrity and reservoir evaluation services to the oil and gas industry. The company is now better placed than ever before to support international operators, with best-in-class downhole technologies and data interpretation expertise. Read more…

 

Energy consultancy Xodus Group has strengthened its decommissioning team with the appointment of Gareth Jones as Decom Lead. Jones’ role will include advising and supporting operators in relation to environmental and societal impacts associated with decommissioning.

The appointment follows a successful year for Xodus’ decommissioning division, which has secured several new clients and won £2 million of work in 2018. The division has undertaken more than 100 decommissioning projects globally so far, ranging from M&A due diligence and commercial advice, to training and detailed planning and approvals for decom execution. Read more…

 

Montrose Port Authority has received £5.4 million in funding from the Royal Bank of Scotland (RBS) to assist ongoing redevelopment work. The project aims to increase port capacity and the potential size of berthing vessels from 12,000 to 18,000 deadweight tonnage.

The works also received £1.5m of supporting investment from the Scottish Government earlier this year, and the latest tranche of funding will ensure their continuation. Completion is expected in summer 2019. Read more…

Bender UK has unveiled its ISOMETER isoHR685W subsea line insulation monitor (LIM). Designed primarily for subsea umbilical monitoring and ROV applications, the system monitors, reports and provides early warning of subsea cable insulation degradation and failure, enabling preventative maintenance and reducing unplanned shutdowns.

A measuring range of up to 10 gigaohms allows the trend of the insulation level to be recognised at an early stage, and provides monitoring for IT systems up to 1,760V DC and 12 kV AC. The device can be set remotely and monitored worldwide for remote diagnosis via cloud-based technology. Read more…

 

Following the completed acquisition of the UK unit of EOG Resources, Tailwind Energy Ltd has confirmed sanction of the Columbus Development in the UK North Sea.

The project recently received approval for a Field Development Plan (FDP) from the Oil and Gas Authority (OGA), as announced by Serica Energy in October 2018. Following its acquisition of EOG UK, Tailwind now holds a 25% interest in the Columbus development, alongside operator Serica Energy (50%) and Endeavour Energy UK (25%). Read more…

 

CHC Helicopter is recruiting 12 new apprentice engineers as it looks to strengthen its capabilities in the UK.

The company currently employs approximately 100 engineers in its main operational centre in Aberdeen and other UK locations at Humberside and Norwich, and is presently recruiting additional licensed engineers for its Aberdeen business. Read more…

 

Petrotechnics has released part two of its 2018 Operational Risk and Process Safety Management (PSM) report, suggesting that technology is expected to help drive improvements in process safety and operational risk management (ORM).

In part one, insights from more than 100 senior industry leaders revealed significant areas of concern, including the impact the previous low oil price is still having on PSM and ORM, as well as disconnects between process safety intent and reality. Part two reveals the improved use of technology could make companies and their work teams safer.

Enhanced technology strategy is expected to drive improvements in process safety effectiveness. Seventy-three per cent of respondents believe technology will make companies and their work teams safer by reducing vulnerability to high-potential near-misses and major hazard events. Eighty per cent said giving the workforce access to real-time process safety risk indicators on the plant would improve risk awareness and safety. Read more…

Alpha Petroleum Resources has entered into agreements with Teekay Offshore for use of the Petrojarl Varg Floating Production Storage and Offloading (FPSO) unit, to be deployed to the Cheviot oil field.

The agreements will facilitate Cheviot-specific process modifications to be made to the FPSO unit, ensuring that it can safely operate for the maximum 10-year term of the contract. These will be made by Sembcorp Marine Rigs & Floaters in Singapore, with yard work scheduled to commence in the first quarter of 2019.

Alpha expects to achieve sanction for its 100% owned Cheviot development in Q4 2018 and is targeting first oil production in Q2 2021, at an expected rate of at least 30,000 barrels per day. Read more…

 

Zennor Petroleum has received approval from the Oil and Gas Authority (OGA) to proceed with the Finlaggan Field development in the central North Sea (block 21/05c). It has also secured a £170 million senior secured term loan facility to fund the development into production.

The project to recover 26 million barrels of oil equivalent (boe) of 2P gas condensate reserves will include two subsea production wells tied back 20km to the ConocoPhillips-operated Britannia platform. Development wells are currently being drilled by Transocean’s Paul B Loyd Junior drilling rig, with subsea installation works planned for 2019.

First production from Finlaggan is expected in Q4 2020. Read more…

 

The Oil and Gas Authority (OGA) has approved BP’s plans to proceed with the Alligin development. Located 140km west of Shetland in the Greater Schiehallion Area, the development will target 20 million barrels of oil equivalent (boe), and at peak is expected to produce 12,000 boe per day.

Operated by BP (50%) and partner Shell (50%), the project will consist of two wells, which will be tied back into the existing Schiehallion and Loyal subsea infrastructure and the processing and export facilities of the Glen Lyon floating, production storage, offload (FPSO) vessel. It is expected to come on stream in 2020. Read more…

 

Stork, part of Fluor’s Diversified Services segment, has been awarded a two-year contract extension by Chrysaor to deliver integrated specialist asset integrity services for its Armada, Everest and Lomond offshore production platforms in the central North Sea.

Under the extension, Stork will continue to deliver a range of solutions to extend the offshore assets’ life cycle. Stork’s integrity corrective action teams (ICATs) will assess and optimise work, delivering an inspection process to meet the operational strategy for each asset and undertaking any necessary repairs. Read more…

 

Floating production and subsea specialist Crondall Energy has secured a frame agreement contract with Siccar Point Energy to provide support on the Cambo field, west of Shetland. The contract will initially cover the identification and evaluation of FPSO options for the development and pre-FEED technical assurance of the subsea design.

The FPSO scope of work includes consideration of a range of FPSO options, including new builds, redeployments and conversions, while the subsea engineering work scope involves peer review and peer assist activities on the pre-FEED subsea design, including flow assurance and operability reviews. Studies will consider the suitability of the various options from the perspective of their suitability for operations in the challenging offshore environment, as well as compliance and suitability for operations on the UK Continental Shelf (UKCS). Read more…

 

BP has chartered the Prosafe accommodation vessel Safe Zephyrus to provide gangway-connected operations at the Clair Ridge platform west of Shetland during summer 2019.

The US$19 million, five-month contract commences mid-May 2019, with a one-month option, and will support the completion of some post-first oil scopes at the project. The contract will be performed using dynamic positioning, affording flexibility and high bed capacity throughout operations. Read more…

 

The University of Strathclyde’s Advanced Forming Research Centre (AFRC) and Baker Hughes, a GE company (BHGE), have joined forces to explore how new advanced manufacturing tools and processes can drive more efficient, smarter ways to reduce cost and increase productivity across BHGE’s operations.

BHGE will work with the AFRC’s team of engineers and researchers to improve its manufacturing processes and delivery of services, with the aim of identifying opportunities for cutting costs and cycle time, while extending the lifespan of oilfield equipment. BHGE will also take a seat on the AFRC’s managing and technical boards, as well as supporting the centre’s core research programme. Read more…

 

Shell UK Limited, alongside partners Rockrose Energy and Dyas U.K. Limited, has announced a final investment decision (FID) for the Arran gas and condensate field in the UK North Sea. This is Shell’s fourth FID announcement in the North Sea in 2018, and will also see it become operator of the Arran project.

At peak production, Arran is expected to produce around 100 million cubic feet per day of gas and 4,000 barrels per day of condensate, which combined equates to 21,000 barrels of oil equivalent per day. Four new development wells will be drilled, with gas and liquids transported via a newly installed subsea pipeline to the Shearwater platform. Read more…

 

Premier Oil completes Babbage Area sale

Following the receipt of necessary approvals, Premier Oil has announced the completion of sale of its interests in the Babbage Area to Verus Petroleum.

Premier received £30.3 million ($38.7 million), after adjustments, for Babbage cash flows collected by Premier since the effective date of 1 January 2018. In addition, Verus will take on exploration commitments valued at around $24 million. Production from Babbage has averaged 2,500 barrels of oil equivalent per day over the year to date. Read more…

 

Sparrows signs five-year servicing deal with Pemex

Sparrows Group has signed a five-year blanket order with Pemex Procurement International, acting on behalf of Pemex Exploracion y Produccion (PEP), to service 41 cranes across assets in four of the national oil company’s developments.

As the original equipment manufacturer (OEM), the first cranes were delivered by Sparrows in the early 1990s to support production in the Kumaza (AS01-02), Abkatun (AS02-03), Litoral (AS02-04) de Tabasco and Cantarell (AS01-01) fields. Read more…

 

Apache achieves first oil at Garten development

Apache Corporation has initiated production from its Garten development on Block 9/18a Area-W in the UK North Sea. The discovery well, located 6 km south of the Beryl Alpha Platform, was placed on production in late November, less than eight months after being drilled in March 2018.

The well is currently producing at a rate of 13,700 barrels of oil per day and 15.7 million cubic feet of gas per day. Recoverable resources are expected to exceed 10 million barrels of light oil plus associated natural gas. The Garten field, in which Apache holds a 100% working interest, is tied back to the Beryl Alpha platform 180 miles northeast of Aberdeen. Read more…

 

EnQuest completes Magnus acquisition

London and Stockholm-listed EnQuest has completed its acquisition of the remaining 75% interest in the Magnus oil field and an additional 9% interest in the Sullom Voe oil terminal and supply facility from BP. The deal also includes additional interests in associated infrastructure, as set out in its initial 7 September announcement.

As outlined at the time, the addition of Magnus is expected to add 60 million barrels of oil equivalent in 2P reserves, 10 million boe 2C resources and approximately $500 million of net present value (NPV) to the group.

EnQuest now has a 100% equity stake in Magnus, 15.1% in the Sullom Voe Terminal, 18% in the Ninian Pipeline System and 41.9% in the Northern Leg Gas Pipeline. Read more…

INEOS, Spirit complete Clipper South project

INEOS Oil & Gas UK has completed a project to re-route production from its Clipper South field via the Shell-operated Clipper field into the Bacton processing terminal.

Working with joint venture partner Spirit Energy, the $80 million investment in a new pipeline and subsea equipment will extend the life of the Clipper South field, following the closure of the existing facilities at the Theddlethorpe Gas Terminal in October, previously operated by ConocoPhillips. Read more…

 

READ Cased Hole expands in US with key acquisition

Aberdeen-headquartered READ Cased Hole Ltd has acquired US-based well integrity specialist, Proactive Diagnostic Services (PDS).

PDS was founded in 1995 to offer memory well-logging services to the Alaska region. Today the business has grown to service customers throughout the Lower 48 and Gulf of Mexico, providing surface readout and memory diagnostic technologies, data analysis, and proprietary software.

The strategic acquisition positions READ as a leading independent global provider of production logging, well integrity and reservoir evaluation services to the oil and gas industry. The company is now better placed than ever before to support international operators, with best-in-class downhole technologies and data interpretation expertise. Read more…

 

New appointment bolsters Xodus decommissioning expertise

Energy consultancy Xodus Group has strengthened its decommissioning team with the appointment of Gareth Jones as Decom Lead. Jones’ role will include advising and supporting operators in relation to environmental and societal impacts associated with decommissioning.

The appointment follows a successful year for Xodus’ decommissioning division, which has secured several new clients and won £2 million of work in 2018. The division has undertaken more than 100 decommissioning projects globally so far, ranging from M&A due diligence and commercial advice, to training and detailed planning and approvals for decom execution. Read more…

 

Montrose Port Authority secures £5.4m funding package

Montrose Port Authority has received £5.4 million in funding from the Royal Bank of Scotland (RBS) to assist ongoing redevelopment work. The project aims to increase port capacity and the potential size of berthing vessels from 12,000 to 18,000 deadweight tonnage.

The works also received £1.5m of supporting investment from the Scottish Government earlier this year, and the latest tranche of funding will ensure their continuation. Completion is expected in summer 2019. Read more…

Bender UK enhances subsea cable monitoring capabilities

Bender UK has unveiled its ISOMETER isoHR685W subsea line insulation monitor (LIM). Designed primarily for subsea umbilical monitoring and ROV applications, the system monitors, reports and provides early warning of subsea cable insulation degradation and failure, enabling preventative maintenance and reducing unplanned shutdowns.

A measuring range of up to 10 gigaohms allows the trend of the insulation level to be recognised at an early stage, and provides monitoring for IT systems up to 1,760V DC and 12 kV AC. The device can be set remotely and monitored worldwide for remote diagnosis via cloud-based technology. Read more…

 

Tailwind Energy confirms Columbus Field Development, EOG UK acquisition

Following the completed acquisition of the UK unit of EOG Resources, Tailwind Energy Ltd has confirmed sanction of the Columbus Development in the UK North Sea.

The project recently received approval for a Field Development Plan (FDP) from the Oil and Gas Authority (OGA), as announced by Serica Energy in October 2018. Following its acquisition of EOG UK, Tailwind now holds a 25% interest in the Columbus development, alongside operator Serica Energy (50%) and Endeavour Energy UK (25%). Read more…

 

CHC to take on 12 new UK apprentices

CHC Helicopter is recruiting 12 new apprentice engineers as it looks to strengthen its capabilities in the UK.

The company currently employs approximately 100 engineers in its main operational centre in Aberdeen and other UK locations at Humberside and Norwich, and is presently recruiting additional licensed engineers for its Aberdeen business. Read more…

 

Technology to drive safety improvements, says Petrotechnics PSM report

Petrotechnics has released part two of its 2018 Operational Risk and Process Safety Management (PSM) report, suggesting that technology is expected to help drive improvements in process safety and operational risk management (ORM).

In part one, insights from more than 100 senior industry leaders revealed significant areas of concern, including the impact the previous low oil price is still having on PSM and ORM, as well as disconnects between process safety intent and reality. Part two reveals the improved use of technology could make companies and their work teams safer.

Enhanced technology strategy is expected to drive improvements in process safety effectiveness. Seventy-three per cent of respondents believe technology will make companies and their work teams safer by reducing vulnerability to high-potential near-misses and major hazard events. Eighty per cent said giving the workforce access to real-time process safety risk indicators on the plant would improve risk awareness and safety. Read more…

Alpha Petroleum to deploy Teekay FPSO to Cheviot field

Alpha Petroleum Resources has entered into agreements with Teekay Offshore for use of the Petrojarl Varg Floating Production Storage and Offloading (FPSO) unit, to be deployed to the Cheviot oil field.

The agreements will facilitate Cheviot-specific process modifications to be made to the FPSO unit, ensuring that it can safely operate for the maximum 10-year term of the contract. These will be made by Sembcorp Marine Rigs & Floaters in Singapore, with yard work scheduled to commence in the first quarter of 2019.

Alpha expects to achieve sanction for its 100% owned Cheviot development in Q4 2018 and is targeting first oil production in Q2 2021, at an expected rate of at least 30,000 barrels per day. Read more…

 

Zennor secures OGA approval for Finlaggan field development

Zennor Petroleum has received approval from the Oil and Gas Authority (OGA) to proceed with the Finlaggan Field development in the central North Sea (block 21/05c). It has also secured a £170 million senior secured term loan facility to fund the development into production.

The project to recover 26 million barrels of oil equivalent (boe) of 2P gas condensate reserves will include two subsea production wells tied back 20km to the ConocoPhillips-operated Britannia platform. Development wells are currently being drilled by Transocean’s Paul B Loyd Junior drilling rig, with subsea installation works planned for 2019.

First production from Finlaggan is expected in Q4 2020. Read more…

 

BP receives OGA approval to develop Alligin field

The Oil and Gas Authority (OGA) has approved BP’s plans to proceed with the Alligin development. Located 140km west of Shetland in the Greater Schiehallion Area, the development will target 20 million barrels of oil equivalent (boe), and at peak is expected to produce 12,000 boe per day.

Operated by BP (50%) and partner Shell (50%), the project will consist of two wells, which will be tied back into the existing Schiehallion and Loyal subsea infrastructure and the processing and export facilities of the Glen Lyon floating, production storage, offload (FPSO) vessel. It is expected to come on stream in 2020. Read more…

 

Stork awarded asset integrity contract extension by Chrysaor

Stork, part of Fluor’s Diversified Services segment, has been awarded a two-year contract extension by Chrysaor to deliver integrated specialist asset integrity services for its Armada, Everest and Lomond offshore production platforms in the central North Sea.

Under the extension, Stork will continue to deliver a range of solutions to extend the offshore assets’ life cycle. Stork’s integrity corrective action teams (ICATs) will assess and optimise work, delivering an inspection process to meet the operational strategy for each asset and undertaking any necessary repairs. Read more…

 

Crondall Energy to support Cambo field development

Floating production and subsea specialist Crondall Energy has secured a frame agreement contract with Siccar Point Energy to provide support on the Cambo field, west of Shetland. The contract will initially cover the identification and evaluation of FPSO options for the development and pre-FEED technical assurance of the subsea design.

The FPSO scope of work includes consideration of a range of FPSO options, including new builds, redeployments and conversions, while the subsea engineering work scope involves peer review and peer assist activities on the pre-FEED subsea design, including flow assurance and operability reviews. Studies will consider the suitability of the various options from the perspective of their suitability for operations in the challenging offshore environment, as well as compliance and suitability for operations on the UK Continental Shelf (UKCS). Read more…

 

Prosafe Safe Zephyrus chartered by BP for 2019

BP has chartered the Prosafe accommodation vessel Safe Zephyrus to provide gangway-connected operations at the Clair Ridge platform west of Shetland during summer 2019.

The US$19 million, five-month contract commences mid-May 2019, with a one-month option, and will support the completion of some post-first oil scopes at the project. The contract will be performed using dynamic positioning, affording flexibility and high bed capacity throughout operations. Read more…

 

BHGE partners with Strathclyde’s AFRC

The University of Strathclyde’s Advanced Forming Research Centre (AFRC) and Baker Hughes, a GE company (BHGE), have joined forces to explore how new advanced manufacturing tools and processes can drive more efficient, smarter ways to reduce cost and increase productivity across BHGE’s operations.

BHGE will work with the AFRC’s team of engineers and researchers to improve its manufacturing processes and delivery of services, with the aim of identifying opportunities for cutting costs and cycle time, while extending the lifespan of oilfield equipment. BHGE will also take a seat on the AFRC’s managing and technical boards, as well as supporting the centre’s core research programme. Read more…

 

Shell invests in the Arran field in the North Sea

Shell UK Limited, alongside partners Rockrose Energy and Dyas U.K. Limited, has announced a final investment decision (FID) for the Arran gas and condensate field in the UK North Sea. This is Shell’s fourth FID announcement in the North Sea in 2018, and will also see it become operator of the Arran project.

At peak production, Arran is expected to produce around 100 million cubic feet per day of gas and 4,000 barrels per day of condensate, which combined equates to 21,000 barrels of oil equivalent per day. Four new development wells will be drilled, with gas and liquids transported via a newly installed subsea pipeline to the Shearwater platform. Read more…