Industry News
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02/21/12
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02/21/12
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02/21/12
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02/03/12
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Xcite Upgrade Confirms 'Major North Sea Asset'
North Sea-focused oil explorer Xcite Energy announced Monday an upgrade to its oil reserves that Chief Executive Officer Richard Smith said confirmed the firm's Bentley Field is "a major North Sea asset".
TRACS International Consultancy, an independent reserves auditor, estimated that oil reserves of the type 1P, 2P and 3P for the core area of Bentley of approximately 99 million, 116 million and 140 million barrels of oil respectively. The net present value of these reserves has been calculated at $1.1 billion, $1.5 billion and $1.9 billion respectively.
Morgan Stanley oil analysts, in a note to investors, said that the increase in recoverable reserves to 116 million barrels from 28 million previously "is in line with our expectations but is an important confirmation of the field's potential".
The Bentley Field is located on Block 9/3b in the UK zone of the North Sea. Xcite has a 100-percent working interest in the field as well as 100-percent interests in Blocks 9/3c and 9/3d (both adjacent to Bentley).
Xcite plans to begin developing the field this year. It said that it has completed "significant work" in the latter half of 2011 to prepare for the Bentley Phase 1A work programme in 2012.
The approval request for Phase 1A is now being undertaken through the convention Well Operations Notification Systems approval procedures. The principal objective of Phase 1A is to provide Xcite with additional reservoir and longer-term performance date to confirm and calibrate the existing reservoir model.
The field development plan for Bentley, comprising Phase 1B and Phase 2, was submitted for approval to the Department of Energy and Climate Change in the final quarter of 2011.
"The upgrade to 116 MMstb [million standard tank barrels] of 2P reserves for the core area on the Bentley Field is independent confirmation that Bentley is a major North Sea asset," said Smith. "Furthermore, the Bentley Field is expected to contain significant upside potential from future appraisal of the non-core area prospects, as well as the application of enhanced oil recovery techniques. We now look forward to a successful delivery of Phase 1A on Bentley expected later this year."
Xcite, whose shares are quoted on junior stock markets in London and Toronto, intends to become an independent heavy oil producer by 2014 via the pursuit of potential acquisitions and through the participation in future UK offshore licensing rounds.
Rigzone
by Jon Mainwaring
Rigzone Staff
Monday, February 20, 2012 -
North Sea Islay Production To Start In March
Total SA (TOT) expects to start production at the Islay gas field in the northern North Sea next month, the head of the French oil major's Northern Europe operations said Monday.
Patrice de Vivies also said Total is finalizing the sales of some of its non-controlling interests in the UK North Sea, including the BG Group (BG.LN)-operated Armada fields.
Total expects to expend twice as much labor in the U.K. North Sea this year than in 2011, as it hastens development of its Laggan Tormore project west of the Shetland Islands, said de Vivies.
"We will spend 12 million man hours in 2012 compared to 6 million in 2011," said de Vivies.
Total plans to spend $16 billion on the U.K. and Norwegian North Sea over the next five years, with about 40% of the company's production in the region to come from new developments by 2017.
LONDON (Dow Jones Newswires), Feb. 20, 2012
by Alexis Flynn
Dow Jones Newswires
Monday, February 20, 2012 -
US, Mexico Agree On Joint Oil Projects
The United States and Mexico agreed Monday to work together on oil and gas development in the Gulf of Mexico, paving the way to end a long-running moratorium on their maritime border.
Under the deal, companies from the United States and Mexico would be encouraged to collaborate on projects over their Gulf maritime boundary but would be able to go ahead on their own if they do not find a partner.
"These reservoirs could hold considerable reserves that would benefit the United States and Mexico alike," Secretary of State Hillary Clinton said at a signing ceremony with Mexican President Felipe Calderon.
Clinton was visiting the Mexican resort of Los Cabos for talks of the Group of 20 major economies, where she has voiced concerns about what she saw as unfair advantages enjoyed by state-supported companies.
Mexico's Pemex enjoys a virtual monopoly on the country's energy industry.
by Dow Jones Newswires
Monday, February 20, 2012 -
Total Jump Starts $4.2B Hild Development
Total, operator of the Hild license, launches the development of this field located in the Norwegian North Sea. This development will represent an investment of US $4.2 billion (NOK 25.6 billion) and is subject to the approval of the Norwegian Ministry of Petroleum and Energy and Norwegian Parliament (Storting). Total holds a 51% interest together with its partners Petoro (30 %) and Statoil (19 %). Hild's reserves amount to approximately 190 million barrels of oil equivalent (boe). Production is expected to start end of 2016 and will reach 100,000 boe per day at peak.
"The Hild field development is an important milestone for Total in Norway, made possible thanks to significant technological progress. Innovation has opened up new opportunities for Total offshore Norway, where we will continue to invest annually an average of US $2 billion within the next five years. Norway will remain in the coming years as one of the largest contributors to Group production," said Patrice de Viviès, Senior Vice President Northern Europe, Exploration-Production.
The stand-alone development, in a water depth of 377 feet (115 meters), accesses separate gas/condensate and oil reservoirs. It includes the installation of an integrated wellhead, production and accommodation platform. Processed gas will be exported to St Fergus in the UK via a new link to the existing Frigg UK Pipeline (FUKA). Liquids will be sent to a dedicated storage vessel where water is separated for reinjection, and oil will be exported via shuttle tankers.
The Group strives to minimize its environmental footprint as part of its concern for sustainable development. Therefore Hild's power needs will be supplied from the Norwegian mainland electrical grid via a new 106-miles (170-kilometers) long cable, the world's longest alternating current (AC) power line from shore to an offshore platform. This technical solution is in line with the Norwegian authorities' longstanding objective to curb CO2 emissions from offshore activities. The cable will also incorporate fibre optic links allowing the offshore facilities to be monitored and controlled from Total's operation centre in Stavanger.
In Norway, as in all countries where Total is present, the Group is committed to the safety of the people working on its projects. Development of Hild project will be carried out in line with this key value.
by Total S.A.
Press Release
Thursday, February 02, 2012
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