Wirth, who was named Chevron’s vice-chairman this
year and executive vice-president of midstream and development last year, previously served as executive vice-president of
downstream and chemicals at the company for nearly a decade.
Prior to his downstream involvement, he was Chevron’s
president of global supply and trading and president of marketing for the Asia-Middle East-Africa business based in Singapore. Wirth joined Chevron in 1982 as a design engineer.
Watson joined Chevron in 1980 as a financial analyst and
went on to hold financial, analytical, and leadership positions
before being appointed president of Chevron Canada Ltd. in
1996. Two years later, he was named a corporate vice-president.
Watson in 2000 led Chevron’s integration effort following
its merger with Texaco Inc. and then became the combined
company’s chief financial officer. In 2005, he became president
of Chevron International E&P. In April 2009, he was named
vice-chairman of the company before being elected chairman
and CEO in September of that year.
EXPLORATION & DEVELOPMENT QUICK TAKES
NEB assesses marketable oil, gas in Duvernay shale
Canada’s National Energy Board estimates in-place 3. 4 billion
bbl of marketable light oil in Alberta’s Duvernay shale, which
covers nearly 20% of the province from just below Grande Prairie to just north of Calgary and east of Edmonton.
The number of available resources equate to 17 years of Alberta’s annual production, which was 550,000 b/d of light oil
and condensate in 2016. NEB’s latest assessment also determined that the Duvernay region has the potential to produce
6. 3 billion bbl of marketable natural gas liquids and nearly 77
tcf of marketable gas.
The Duvernay shale was first developed in 2011 when Celtic
Exploration Ltd. opened Kaybob field 150 miles northwest of
Edmonton. Duvernay’s western basin has been more developed
in recent years but provincial land sales show increasing industry interest the basin’s eastern region.
The Duvernay is prospective for oil and gas below 2,500 m,
generally with oil in shallow deposits above 3,000 m and gas
in areas deeper than 3,000 m. The Duvernay is rich in condensate, which is in high demand in Alberta as it is mixed with
bitumen from the region’s oil sands to more easily flow through
pipelines. Northern Alberta contains recoverable oil sands reserves of 165 billion bbl.
NEB developed its new assessment with data from the Alberta Geological Survey, a branch of the Alberta Energy Regulator. Later in the fall NEB has said it will release a second report
examining the economics of the Duvernay shale.
Gazprom Neft discovers offshore field
Pending a detailed assessment in mid-2018, Gazprom Neft has
discovered a field that could contain as much as 255 million
tonnes of oil equivalent.
Subsidiary Gazpromneft-Sakhalin reported that it has com-
pleted an appraisal well in the Ayashsky block on the Okhotsk
Sea continental shelf. The block is part of the Sakhalin III proj-
ect and is next to developed fields of the Sakhalin I and Sakha-
lin II projects.
The operator collected 162 m of core from potentially productive strata encountered in the 2,700-m well. The company
reported the discovery with no indication of the type and consistency of encountered hydrocarbons.
In addition to the Ayashsky block, Sakhalin III includes Kirinsky and Vostochno-Odoptinsky blocks where Gazprom is
engaged in further exploration. Similarly, the company reported a “substantial gas and condensate inflow” from a well on the
Kirinsky block in 2016 but with no further details.
Sherritt resumes Cuban drilling after storm Sherritt International Corp., Toronto, has resumed drilling of a key exploration
well in Cuba after an interruption caused by Hurricane Irma.
The storm did minor damage to the company’s oil and gas,
power, and mining operations in Cuba.
Sherritt said on Sept. 20 that drilling had recommenced at
its second exploration well on Block 10, for which it received
a production sharing contract from state-owned Cubapetroleo
SA (Cupet) in 2014.
Its first Block 10 well, drilled directionally from land to a
target in the Bay of Cardenas off Matanzas Province, reached
4,232 m MD of a planned 5,836 m in March.
It failed to reach the target formation in the Upper Jurassic-Lower Cretaceous Veloz Group, the most important producing
formation in Cuba. Sherritt has gross working-interest production totaling about 14,545 b/d of oil from Varadero, Puerto Escondido, and Yumuri fields on older blocks in Cuba.
The Block 10 well targeted the Lower Veloz carbonate, from
which a hole Sherritt drilled in 1994 briefly tested 3,750 b/d of
13. 6° gravity oil.
The new well lost wellbore stability before reaching the
Lower Veloz because of repeated occurrence of the less stable
Vega Alta formation.
Sherritt sidetracked the well into the Upper Veloz formation,
identified before drilling in reprocessed 3D seismic data.
The Upper Veloz yielded good oil shows, but the sidetrack
trajectory was not high enough on the structure.
Testing of the sidetrack produced oil at noncommercial
David Pathe, Sherritt president and chief executive officer,
said results of the first well didn’t change his company’s assessment of Block 10 potential and provided important data about
the basin’s fold-and-thrust geology.
DRILLING & PRODUCTION QUICK TAKES
Output drops from mature oil fields seen quickening
Production from maturing oil fields is declining faster globally due to the fall in capital spending since the oil-price crash,
Oslo-based industry research firm Rystad Energy AS observes.