Thursday, 14 August 2014

Shell divests gas assets

Shell is giving up its Pinedale and Haynesville onshore gas assets in exchange for about $2.1 billion of cash, plus additional acreage in the Marcellus and Utica Shale areas in Pennsylvania.

In one agreement with Ultra Petroleum, Shell will acquire 155,000 net acres in the Marcellus and Utica Shale areas in Pennsylvania and receive a cash payment of $0.925 billion from Ultra in exchange for 100 percent of Shell’s Pinedale asset in Wyoming, including associated gathering and processing contracts, subject to closing.

In a separate agreement with Vine Oil & Gas LP and its partner Blackstone, Shell has agreed to sell 100 percent of its Haynesville asset in Louisiana, including associated field facilities and infrastructure for $1.2 billion in cash, subject to closing.

“We continue to restructure and focus our North America shale oil and gas portfolio to deliver the most value in the longer term. With this announcement we are adding highly attractive exploration acreage, where we have impressive well results in the Utica, and divesting our more mature, Pinedale and Haynesville dry gas positions,” said Marvin Odum, Shell’s Upstream Americas Director.

The Shell net production from Pinedale in the second quarter 2014 was 190 million standard cubic feet per day (mmscf/d) of dry gas (32 thousand barrels of oil equivalent per day (kboe/d)). During the first half of 2014, Ultra’s net production from the assets Shell is acquiring in Pennsylvania averaged 109 mmscf/d (19 kboe/d).

“We first entered the Pinedale Anticline in 2001, and I am proud of our operational excellence, community engagement, and leadership in responsible energy development over that time,” said Odum.

Shell’s Pinedale asset (which includes 19,000 net acres of leasehold interest, 1,108 gross wells and associated facilities, and an average of 0.7 percent overriding royalty interest in 11,500 acres) will be exchanged for cash and Ultra’s 100 percent interest in the Marshlands area (63,000 net acres) as well as its entire interest (92,000 net acres) in the Tioga Area of Mutual Interest (AMI), an unincorporated joint venture with Shell. After completion of this transaction, Shell will have a 100 percent interest in the Tioga AMI. The agreement is effective 1 April 2014, and is expected to close this year.

Shell’s Haynesville asset includes 107,000 net acres in in north Louisiana. The transaction includes 418 producing wells, 193 of them operated by Shell. As of 1 July 2014, the gross production from the Haynesville asset was approximately 700 mmscf/d of dry gas, with Shell’s net working interest share at approximately 250 mmscf/d (43 kboe/d). The agreement is effective 1 July 2014, and is expected to close in the fourth quarter of this year.

“We very much appreciate the support we have had in north Louisiana, and we will continue to operate in the state, as we have for decades, through our downstream, retail, midstream, and New Orleans-based deep-water operations,” said Odum.
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Latin America’s largest petrochemical company picks AVEVA software

Braskem, Latin America’s largest petrochemical company, has signed a contract with AVEVA to convert the engineering and design data of 12 of its plants to AVEVA PDMS.

This large contract is the result of a successful pilot project executed earlier this year. Braskem chose AVEVA over several other software vendors, attributing their decision to the confidence they had built up in AVEVA’s technology and personnel during the pilot project.

"These petrochemical plants were originally designed with software from another company," said Luis Henrique Barreto, Coordinator of Engineering Systems and Documents, Braskem.

"AVEVA PDMS offers us reliable continuity and the integrity of the original models. Combined with the excellent post-sales support and service we receive from AVEVA, this will ensure that the conversion runs smoothly creating high quality models without significant data loss. At the end of the process we will have AVEVA PDMS models of all of our plants, and we can use those models for the design and execution of maintenance and modification projects. The confidence we have in AVEVA and its technology has put us at ease with the process.

"We are proud to be working with Braskem on such an exciting large-scale project,” said Helmut Schuller, Executive Vice President, Global Sales, AVEVA. “The migration process must ensure maximum data integrity and our solutions and experience in large-scale migrations will ensure we achieve this. We look forward to continuing our work with Braskem and supplying our proven technologies to strengthen their operations. This agreement is a first step in our new relationship and clear evidence of Braskem’s confidence in AVEVA."
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Tuesday, 12 August 2014

OneSubsea, Helix and Schlumberger form alliance

OneSubsea, Helix Energy Solutions Group and Schlumberger have entered into a letter of intent to form an alliance to develop technologies and deliver services to optimize the cost and efficiency of subsea well intervention systems.

Helix is a leading subsea well intervention provider, with the largest fleet size of well intervention vessels, and an unequalled track record in cost-effective subsea well intervention. OneSubsea, a preeminent solution provider for subsea well control, with a global footprint of executed major projects, has significant experience in the manufacture and supply of subsea well intervention equipment and services. Schlumberger is the world's leading supplier of technology and services to the oilfield, including conveyance systems and in-well technologies for subsea applications.

Upon agreement on the final terms of the alliance definitive agreement, the alliance will leverage the capabilities of Helix, OneSubsea and Schlumberger, to provide a unique, fully integrated offering, combining marine support with well access and control technologies. The alliance will focus on several objectives aimed at increasing the operating envelope of today’s subsea intervention technology. These objectives include the expansion of applications enabled by subsea well-access technology, and specific solutions for deep and ultra-deepwater basins and higher well pressure environments. An important consideration is the evolution in the capabilities of Helix’s vessels to provide well intervention and additional support services such as well commissioning, artificial lift support, and abandonment, which are usually performed using drilling rigs.
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Tata Steel secures deal with Subsea 7

Tata Steel has signed a global framework agreement with Subsea 7, one of the world’s leading contractors in engineering, construction and subsea services to the offshore industry, which will formalise a 25-year working relationship between the two global giants. This long-standing partnership, which has seen four multi-million pound North Sea contracts signed in the last 12 months alone, is cemented by the new agreement.

Consisting of four separate projects, the latest contracts are believed to be worth in the region of £10 million and will see Tata Steel supply in excess of 55km of pipe weighing more than 9,000 tonnes.

As a leading supplier of products and services to the oil and gas industry, Tata Steel will supply around 28km of carrier pipe, more than 27km of sleeve pipe, girth welding and triple jointing and the application of Glass Flake Epoxy pipe coating. Welding and coating will take place at the company’s offshore processing centre in Hartlepool, UK.

Tata Steel’s exploration and production commercial manager, Richard Broughton said: “Our work with Subsea 7 over the years has been extensive, particularly in the North Sea oil and gas industry which has become an increasingly important market for us. The new framework agreement will extend the work our companies already do together on a global scale demonstrating the value of Tata Steel in today’s oil and gas industry.

“We have the ability to provide the carrier pipe, sleeve pipe and carry out the coating work in-house demonstrating the customer-focused approach Tata Steel takes. Subsea 7 is an important supply chain partner and our relationship with the company continues to grow.”

With the forecast for high growth in the coming years in areas such as the Subsea, Umbilicals, Risers and Flowlines (SURF) market, the future for operational activity looks promising.

 Subsea 7’s category director for group supply chain management, Phil Cran said: “This Global Frame Agreement reinforces the strong cooperation between Subsea 7 and Tata Steel, which has been developed over a period of multiple successful project deliveries. Subsea 7 fully expects this collaborative relationship to continue successfully in the future.”

Mr Broughton added: “This latest series of contracts further demonstrates the breadth of our offering as a company, over the last 25 years we have provided more than 83,000 tonnes of pipe to Subsea 7 over the course of 37 projects worldwide. From production to engineering our ability to consistently add value to the services we provide is what sets us apart in the market place.”
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Monday, 11 August 2014

Physicists create water tractor beam

Physicists at The Australian National University (ANU) have created a tractor beam on water, providing a radical new technique that could confine oil spills, manipulate floating objects or explain rips at the beach.

The group, led by Professor Michael Shats discovered they can control water flow patterns with simple wave generators, enabling them to move floating objects at will.

"We have figured out a way of creating waves that can force a floating object to move against the direction of the wave," said Dr Horst Punzmann, from the Research School of Physics and Engineering, who led the project.

"No one could have guessed this result," he said.

The new technique gives scientists a way of controlling things adrift on water in a way they have never had before, resembling sci-fi tractor beams that draw in objects.

Using a ping-pong ball in a wave tank, the group worked out the size and frequency of the waves required to move the ball in whichever direction they want.

Advanced particle tracking tools, developed by team members Dr Nicolas Francois and Dr Hua Xia, revealed that the waves generate currents on the surface of the water.

"We found that above a certain height, these complex three-dimensional waves generate flow patterns on the surface of the water," Professor Shats said. "The tractor beam is just one of the patterns, they can be inward flows, outward flows or vortices.”

The team also experimented with different shaped plungers to generate different swirling flow patterns.

As yet no mathematical theory can explain these experiments, Dr Punzmann said.

"It's one of the great unresolved problems, yet anyone in the bathtub can reproduce it. We were very surprised no one had described it before."

The research is published in Nature Physics.
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Friday, 8 August 2014

Schlumberger Norway awarded statoil contract

Schlumberger Norway has been awarded a contract with Statoil to provide integrated drilling services for the Norwegian continental shelf licenses Gullfaks, Gullfaks Satellites, Snorre, Statfjord , Tordis/Vigdis, Visund.
The agreement also covers exploration drilling on the Norwegian continental shelf (NCS).

Taking effect on 1 September 2014 the contract has a value of NOK 1.15 billion for an initial duration of two years. The contract also has three optional extensions, each for two years.

The contract will provide jobs for some 350 people in Schlumberger Norway over the next two years.

Services under the agreement include the delivery of directional drilling, measurement while drilling (MWD), logging while drilling (LWD) and mud logging services. In addition, Schlumberger Norway will deliver RT data transfer, integrated operations/onshore support, drilling optimization and drilling equipment.
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Thursday, 7 August 2014

Statoil completes 2014 Hoop exploration programme

Statoil has together with its partner Idemitsu Petroleum Norge made a small gas discovery in the Mercury prospect in PL614 in the Barents Sea.

This completes Statoil’s 2014 exploration programme in the Hoop area.

Statoil drilled three exploration wells in the Hoop area in the Barents Sea: Apollo and Atlantis in PL615 and Mercury in PL614. Those were Statoil’s first operated wells in the Hoop area. Statoil is partner in the OMV-operated oil discoveries Wisting Central and Hanssen in the neighbour licence PL537, which opened a new oil play in the Hoop area.

Unfortunately, the three Statoil-operated wells drilled this summer did not result in commercial discoveries. In Apollo a good reservoir was proved in the well, but no hydrocarbons. Atlantis and Mercury resulted in two small gas discoveries.
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