Engie starts gas flow from Cygnus Bravo
Engie E&P UK Ltd. has started natural gas production from
Cygnus Bravo, the satellite wellhead platform in the firm’s operated Cygnus development in the southern North Sea.
Gas from Bravo was exported 7 km southeast to Cygnus Alpha, which itself has been producing at a plateau of 250 MMcfd
since December. Combined output then travels from the Alpha
processing unit, 150 km offshore Lincolnshire, UK, via a 55-
km link to the Esmond Transmission System that ultimately
lands at the Bacton gas terminal in Norfolk.
The overall Cygnus complex comprises four platforms and
two subsea structures, serving a field size of 250 sq km.
Bravo gas flowed from Well B5 in one of the platform’s 10-
well slots out of 20 across the Cygnus complex. A further three
Bravo wells are expected to come online in August with a total
of five available in 2018 after drilling of Well B1 is completed.
Cygnus has estimated 2P reserves of 110 million boe and
an expected production life of more than 20 years. In addition
to output from the complex itself, the partners are evaluating
further opportunities in the Greater Cygnus area with the aim
of bringing additional volumes through Cygnus when capacity
Cygnus was discovered in 1988 and sanctioned in 2012 following the UK government’s decision to introduce a field allowance for new large gas fields in shallow water.
Engie E&P UK has 38.75% interest in Cygnus. Partners
Centrica PLC and Bayerngas GMBH have 48.75% and 12.5%,
respectively. An agreement to merge Centrica’s European oil
and gas exploration and production business and Bayerngas
Norge AS was struck last month.
Hangingstone project expansion brought online
CNOOC Ltd., owner of Nexen Energy ULC, said the Hangingstone expansion commercial project in Canada has come on
stream. Japan Canada Oil Sands Ltd. (JACOS) is the operator
with 75% working interest.
Nexen has 25% working interest in Hangingstone, an oil
sands steam-assisted gravity drainage (SAGD) project about 20
km southwest of Fort McMurray, Alta.
The Alberta project involves steam-generating equipment,
well pads, 32 well pairs, water treatment, and bitumen flow-lines. The project is expected to reach its peak production of
20,000 b/d of bitumen in 2018.
JACOS and its partners experimented with a cyclic steam
stimulation pilot project on the Hangingstone pilot during the
1980s and 1990s. JAPEX participated in experiments at the underground test facility before committing to SAGD technology
Rosneft posts production increases in first half
Rosneft PJSC said first-half hydrocarbon production averaged
5.74 million boe/d, up 10.2% vs. first-half 2016. The company
cited acquisitions and new projects development.
First-half liquids production increased 11.4% while natural
gas production increased 2.9%.
Rosneft said liquids production declined 1.2% in the second
quarter vs. the first quarter due to limitations for Russian oil
producers related to agreements with the Organization of Pe-
troleum Exporting Countries.
Capital expenditures of 407 billion rubles in the first half
were up by 32.1% vs. the first half of 2016. Development drill-
ing in km was up 21.9%.
Acquisition of 3D seismic in sq km was up 16.5% in the first
half while acquisition of 2D seismic in km was more than four
times greater than a year earlier.
Refining throughput in the first half increased 24.3%.
Rosneft’s first-half financial performance included a 23.2%
revenue increase in rubles, while revenues in US dollar terms
increased by 48.7%.
PROCESSING QUICK TAKES
Neste enters home stretch of refinery integration
Neste Corp. will begin a 2-month planned maintenance turnaround starting in mid-August at its 3 million-tonne/year refinery in Naantali, Finland, that, once executed, will complete the
previously announced investment plan to integrate operations
of its two Finnish refineries under uniform management.
The major turnaround—the most extensive ever carried
out at the refinery and its first since 2012—will cost a total of
Following its reconfiguration, the Naantali will continue to
produce diesel and specialty products, including solvents and
bitumen, and maintain an important role in producing feed-stocks, such as vacuum gas oil, for production lines in Porvoo.
Additionally, gasoline components produced at Naantali
will be refined into finished products at Porvoo, with Naantali’s
terminal capacity to be used for distributing Porvoo’s gasoline
Consolidation of the two Finnish refineries also will enable
Neste to increase diesel output alongside a simultaneous reduction in heavy fuel oil production from the integrated unit.
Matti Lehmus, Neste’s executive vice-president of oil products, said the company is targeting an additional margin of at
least $5.50/bbl once the new Naantali-Porvoo operating model