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Posts Tagged ‘Gulf of Mexico’

Some may not be aware that the Chinese government, through a fully owned subsidiary of the China National Offshore Oil Corp. (CNOOC), is a leaseholder in the US Gulf of Mexico. Per BOEM records, CNOOC Petroleum USA Inc currently has ownership in 12 OCS leases. Most significantly, CNOOC holds 21% interest in the Appomattox Field, operated by Shell, and a 25% working interest in Stampede, operated by Hess. Peak oil production for these projects is expected to be 175,000 bopd for Appomattox and up to 80,000 bopd for Stampede.

CNOOC acquired the Gulf of Mexico properties through its purchase of Nexen, a Canadian company, in 2013.

The state-owned Chinese oil explorer surrendered operating control of those assets to quell U.S. national security concerns, said two people familiar with the agreement who asked not to be named because the terms aren’t public.

FInancial Post

Reuters has reported that CNOOC is considering an exit from its operations in the US, Canada, and the UK because of sanctions concerns. JPMorgan is reportedly assisting with the sale of the US assets.

Stampede TLP

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Comments on 2022 oil production:

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Now that the 2021 US OCS incident spreadsheet has been posted and I have commented on the fatalities, I’ll be looking at some incidents by category starting with losses of well control (LWCs). Incident summaries and links to investigation reports follow the bullet points.

  • 4 LWCs incidents in 2021
  • None posed a significant threat to worker safety or the environment
  • All were deepwater wells
  • 3 were during exploratory drilling and 1 was during completion operations
  • All 3 drilling incidents involved water flows after setting 22″ surface casing.
  • The completion LWC was the result of the inadvertent opening of fluid control devices. The report on this incident provides important information for well completion risk assessments.

Incident summaries

Spreadsheet incident 19: Well completion operation. Inadvertent shearing and opening of the fluid loss control devices were not adequately assessed during the planning and review phases of the completion. While displacing the wellbore from 14.8 ZnBr to 14.8 packer fluid, the downhole equivalent circulating density sheared the upper and lower fluid loss control devices. The rig immediately began to experience fluid losses of 600 bph. A 50 bbl fluid loss pill was spotted and losses slowed to 345 bph. A second fluid loss pill was pumped which significantly decreased the losses eventually resulting in zero losses. After losses stopped, the rig experienced approximately a 14 bbl gain on the trip tank. The well was shut in on the annular and circulated out using the driller’s method. Oil was observed in the returns. While waiting on additional fluids and materials, wellhead pressure was managed by bullheading 14.8 brine when required. The well was killed via bullheading down the annulus followed by bullheading down the workstring with 3 CaCo3 pills. investigation report

BOE comment: While the cause of this incident is classified as “human error,” the failure to properly assess and plan for risks associated with the inadvertent shearing and opening of the fluid loss control devices is an organizational/management issue.

Incident 186: Shallow water flow during exploration drilling. Lost well. A shallow water flow was observed from one of the ports in the 38″ wellhead housing following cementation of the 22″ riserless casing string at Caramel Keg (GB 962 #1). Additional wireline logging (casing bond log and temperature log) runs were performed to gain additional insights into the potential source/location of the flow, as well as the quality and presence of cement behind the 22″ casing string. Approval from BSEE Lafayette district was received on April 1st to proceed with running the riser/BOP and continue with subsequent planned operations. Flow from the wellhead was monitored and a general reduction trend in flow from wellhead port was observed. Approval was received from BSEE on April 19th to install and close ball valves on two wellhead ports to isolate flow from wellbore. On April 20th, the ball valves were closed and flow from the wellbore ceased approximately 23 days after initial observation. Approval to temporarily abandon the well was received from BSEE on April 25, along with a monitoring plan of the wellbore and the surrounding area. TA operations concluded on April 27th. The ongoing monitoring program has since identified no indications of flow/broaching at or near the GB 962 #1 wellbore as of May 7th. No personnel were injured or evacuated as a result of this subsurface shallow water flow. report

Comment: The BSEE incident investigation team determined that salt contamination probably caused the cement to go under-balanced triggering flow and channeling behind the 22-in casing.

Incident 478: Exploration well – 7188′ WD; exploration. The 22″ casing cement job went as planned with positive cement returns to the mudline from dye and pH meter. The rig observed post cementing flow. Flow was predominantly gas. The flow started with a single source from the seabed, about 20 ft away from the wellhead. Within the next 2-3 hours, two other flow sources developed, one immediately adjacent to the jetpipe while another flow source surfaced about 10ft away from the wellhead. The rig continued to monitor the post cementing flow and completed multiple ROV wagon wheel surveys. No new seafloor anomalies or active flow points were identified away from the wellhead. Minor flow of water and gas continued at the wellhead. No investigation report.

Incident 507: Post Cement Flow Summary: The 22″ casing was cemented in place at 2:30 AM on August 18, 2021. At approximately 5:45 AM, a minor post cementing flow was observed by the ROV. The flow was only observed from 1 cement port/ball valve connected to the 28″x22″ annulus. The flow composition was predominately cement and absent hydrocarbons. The ROV continued to monitor the flow. No investigation report.

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The Honor Roll companies for 2022 (listed alphabetically) are Anadarko (Oxy), bp, Cantium, Chevron, Contango, Hess, LLOG, Murphy, and Shell.

Our criteria:

  • Must average <0.3 incidents of noncompliance (INCs) per facility-inspection.
  • Must average <0.1 INCs per inspection-type. (Note that each facility-inspection may include multiple types of inspections (e.g. production, pipeline, pollution, Coast Guard, site security, etc). On average, each facility-inspection included 3.25 types of inspections in 2022. Here is a list of the types of inspections that may be performed.)
  • Must operate at least 3 production platforms and have drilled at least one well (i.e. you need operational activity to demonstrate compliance and safety achievement).
  • May not have a disqualifying event (e.g. fatal or life-threatening incident, significant fire, major oil spill). Due to the extreme lag in updates to BSEE’s incident tables, investigation and news reports are used to make this determination.
  • Pacific and Alaska operations will be considered separately.
oil (million bbls)gas (BCF)
Shell145.8163.5
bp82.457.1
Chevron79.445.2
Anadarko59.650.8
Murphy28.145.5
LLOG19.634.3
Hess17.939
Cantium3.95.3
Contango0.023.5
2022 production through Oct.

Mid-Year 2022 review

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Nine operating companies have qualified.

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A rare photo of a Big-Fin Squid, caught on camera on November 11th 2007 by a Shell Oil company ROV, at a depth of 2,386 meters (1.5 miles). This species of Squid dwell at extreme depths, and are characterised by their long, thin tentacles. They can reach almost 20ft long when fully grown.

Hasan Jasim

ROV video:

Of course, much of our knowledge about deepwater biology is attributable to oil and gas exploration and the associated environmental studies. This includes the discovery and study of chemosynthetic communities in the Gulf of Mexico:

Some of the same conditions responsible for petroleum deposits also provide the basis for biological communities that receive energy from chemicals through a process called chemosynthesis (in contrast to photosynthesis that provides energy to terrestrial and shallow-water communities through processes in which sunlight is the basic energy source).

NOAA
An aggregation of ice worms inhabiting methane hydrate. These worms eat chemoautotrophic bacteria using chemicals in the hydrate. Image courtesy of the NOAA Office of Ocean Exploration and Research, Gulf of Mexico 2012

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Ram Powell TLP
  • Talos has announced commercial discoveries at its Lime Rock and Venice prospects.
  • Both discoveries are near the company’s Ram Powell platform, where future production will flow via subsea tiebacks.
  • The Lime Rock prospect was acquired in Lease Sale 256 in November of 2020.
  • The new discoveries will help sustain production at Ram Powell, an early tension leg platform that has produced more than 250 million boe.
  • Ram Powell was the deepest production facility in the world (water depth of 3216′) when it was installed by Shell in 1997.
  • Access to nearby resources through regular lease sales facilitates continued production from existing platforms, reducing costs and environmental impacts.

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BOE is reviewing BSEE compliance data and available incident reports for 2022. The Honor Roll companies will be announced later this month. Our preliminary finding is that 9 of the more than 120 operating companies met the high standard that we have established for this recognition. Our criteria:

  • Must average <0.3 incidents of noncompliance (INCs) per facility-inspection. Note that each facility-inspection may include multiple types of inspections (e.g. production, pipeline, pollution, Coast Guard, site security, etc). On average, each facility-inspection included 3.25 types of inspections in 2022. (Here is a list of the types of inspections that may be performed.)
  • Must operate at least 3 production platforms and have drilled at least one well (i.e. you need operational activity to demonstrate compliance and safety achievement).
  • May not have a disqualifying event (e.g. fatal or life-threatening incident, significant fire, major oil spill). Due to the extreme lag in updates to BSEE’s incident tables, investigation and news reports are used to make this determination.
  • Pacific and Alaska operations are considered separately.

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ainonline:

  • This was the second crash for the operator (Rotorcraft) in two weeks, its second fatal for the year, and the third in the Gulf of Mexico since October.
  •  On December 15, a Rotorcraft Leasing Bell 206L-4 with three aboard crashed while taking off from a platform 35 miles south of Terrebonne Bay, Louisiana. In that accident, one of the helicopter’s skids caught under the helipad’s perimeter railing, and the aircraft fell into the water below. (We have concerns that yesterday’s incident may have had a similar cause.)
  • On October 26, a Westwind Helicopters Bell 407 with three aboard crashed into the Gulf 25 miles south of Morgan City, Louisiana after the pilot apparently experienced an in-flight medical emergency and told his front seat passenger he “was not going to make it” and then slumped over the controls. The front-seat passenger then attempted to gain control of the helicopter prior to the water impact. After several hours, both passengers were rescued with serious injuries, but the pilot died. (This is why I never liked single pilot aircraft.)
  •  Another of the company’s Bell 407s crashed on January 14 near Houma, Louisiana, killing both occupants. A witness to the accident said the helicopter appeared to dive nose-down into terrain. To date, investigators in that accident have not discovered any mechanical or structural failure that would account for that crash. 

Get to work HSAC, NTSB, BSEE, USCG, FAA, and all others who are involved with offshore helicopter safety.

Not a word about this tragedy on the Rotorcraft, Walter Oil & Gas, or BSEE websites, and no public statements can be found. At a minimum, one would have expected condolences to the families and a commitment to find out what happened and prevent recurrences.

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From Lars Herbst:

  • Tragically, the pilot and 3 passengers are assumed dead.
  • Aircraft reported as Bell 407, a very common smaller aircraft used in the GOM
  • Crashed on departure; apparently hit the helideck before tumbling into the Gulf
  • Second Rotorcraft helicopter to go down in the Gulf in three months

The next Helicopter Safety Advisory Conference (HSAC) meeting, scheduled for January 18-19 in Houston, is now urgent.

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