It will acquire two-thirds interests in Licenses P1854, covering blocks 208/1b, 208/2, 208/3b, 217/27b, and 217/28b; and
P1935, covering Blocks 217/22a, 217/23a, and 217/24a from Siccar Point Energy E&P Ltd., Aberdeen.
Siccar Point retains one-third interests in the licenses.
Ineos said the farmin complements interests it acquired in
the area and elsewhere off the UK and Norway from DONG
Energy AS earlier this year (OGJ Online, May 24, 2017).
DRILLING & PRODUCTION QUICK TAKES
Hebron comes on stream off Newfoundland and Labrador
ExxonMobil Corp. reported that production through the Hebron platform came on stream safely and ahead of schedule.
Peak heavy oil production is expected to reach as much as
150,000 b/d. Hebron is 19 miles southeast of ExxonMobil’s Hibernia project.
Hebron field, discovered in 1980, is estimated to contain
more than 700 million bbl in reserves. The Hebron platform
consists of a stand-alone, gravity-based structure, which supports an integrated topsides deck. The platform 1. 2 million bbl
of oil storage capacity.
The platform is 200 miles offshore Newfoundland and Labrador in about 300 ft of water.
The Hebron project involved an 8-year engineering, construction, and startup phase with hundreds of vendors contracted (OGJ Online, Jan. 3, 2013).
Some 7,500 jobs were created during the peak of the construction.
ExxonMobil Canada Properties operates Hebron with
35.5%. Chevron Canada Ltd. holds 29.6% interest, Suncor Energy Inc. 21%, Statoil Canada Ltd. 9%, and Nalcor Energy-Oil
& Gas Inc. has 4.9%.
Chevron Corp. was the original operator, but it declined to
move forward with the project in 2002, citing low oil prices and
technical obstacles. ExxonMobil then took over the project, but
it also suspended plans in 2006. Talks renewed in 2008 despite
a world economic slowdown.
More Weizhou oil wells start production in S. China Sea
Phase II production from Weizhou 12-2 oil field has been
brought on stream, CNOOC Ltd. said of its project in Beibu
Gulf in the South China Sea.
The oil field lies in 35. 7 m of water. In addition to existing
Weizhou 12-2 oil field equipment, one platform was built under Phase II.
Seven wells currently produce 6,400 b/d. The project is expected to reach peak production of 11,800 b/d in 2018 (OGJ
Online, Sept. 14, 2016).
CNOOC holds 100% interest and operates the field.
Brazil’s giant Libra field brought on stream
Total SA announced Nov. 27 that the Petroleo Brasileiro SA
(Petrobras)-led Libra consortium has brought production on
stream in ultradeep waters 180 km offshore Rio de Janeiro in
Brazil’s presalt Santos basin.
Petrobras operates Libra and holds 40% interest in an inter-
national consortium. Partners are Total 20%, Royal Dutch Shell
PLC 20%, CNOOC Ltd. 10%, and China National Petroleum
The Pioneiro de Libra floating production, storage, and
offloading unit has a capacity of 50,000 bbl. Initial production
will generate revenue while enabling technical data to be col-
lected to optimize the subsequent development phases.
Total Exploration & Production Pres. Arnaud Breuillac said
Libra fits into Total’s strategy of highly competitive projects
with low break-even points. Libra, discovered in May 2010, is
estimated to contain 8-12 boe of reserves below a 2-km salt
layer (OGJ Online, June 17, 2016).
Petrobras says Libra reservoirs have 27° gravity oil and are
expected to have excellent productivity.
The Libra development awaits an investment decision regarding whether to finalize plans for the Libra 1 FPSO with a
capacity of 150,000 b/d. Partners expect other production units
of similar capacity will be financed in future years to develop
the field’s full potential.
UK dominates North Sea decommissioning
Operators will perform decommissioning on 349 oil and gas
fields in the North Sea during 2017-25, more than half of them
in UK waters, according to an annual report by Oil & Gas UK.
Decommissioning will occur on 214 fields off the UK, 106
off the Netherlands, 23 off Norway, and 6 off Denmark, according to the industry group.
For all four regions, the study projects complete or partial
removal of more than 200 platforms, plugging and abandonment of nearly 2,500 wells, and decommissioning of nearly
7,800 km of pipeline.
During the next 5 years, Oil & Gas UK expects decommissioning expenditures to average £ 1. 7-2 billion/year off the UK
and £400-800 million/year off Norway and to total £650-800
million off the Netherlands.
Off the UK only, 46% of £ 17 billion estimated to be spent on
decommissioning during 2017-25 will be in the central North
Sea, and 49% of the total will be for plugging and abandoning
wells, according to the report.
Harris, Barra oil flow starts off the UK
Dana Petroleum Ltd. has started production from Harris and
Barra oil fields in the northern North Sea (OGJ Online, Sept.
The operator expects the fields, in a project it calls Western
Isles, to produce as much as 44,000 boe/d.
The development, 160 km east of the Shetland Islands, involves production and water injection wells tied back to a floating production, storage, and offloading vessel servicing shuttle
The 28,000-tonne FPSO can handle production of 44,000