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Posts Tagged ‘QuarterNorth’

BOE Honor Roll 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 3.3 types of inspections in 2023. 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, district investigations and media reports are used to make this determination.
platforms2023 well starts2023 (10 mos.) oil prod. (million bbls)2023 (10 mos.) gas prod. (bcf)
Anadarko10116660
BP71110565
Cantium961056
Chevron8106739
Eni31613
Hess331836
LLOG1072535
Murphy744257
QuarterNorth911323
Shell2020141140

Also noteworthy:

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Safety first: As a descendant of troubled Fieldwood Energy, which had a very poor safety and compliance record, QuarterNorth Energy (QNE) had much to prove. That said, QNE has had a good compliance record in its brief 2 year history. During 76 facility inspections in 2022 and 2023, QNE was cited for only 15 Incidents of noncompliance, all but 2 of which were warnings. This is on par with the companies that had the best compliance records during that period.

BSEE’s incident statistics are hopelessly out-of-date, with the latest data being for 2021, so we have limited information on QNE safety incidents. However, BSEE’s District Investigation Reports, which document the more significant incidents, are relatively current and no QNE incidents were investigated in 2022 and 2023.

Platforms: Consistent with the general sense that QNE inherited the best of Fieldwood’s facilities, the company’s 15 platforms include Bullwinkle, the Thunder Hawk floating production unit in 6050′ of water, and prominent shelf platforms Tarantula and Hickory.

The acquisition reunites 2 iconic Shell platforms under the same ownership. QNE’s Bullwinkle, installed in 1988 in 1353′ of water, is the world’s tallest (non-compliant) steel tower platform. Talos’s Cognac, installed in 1978 in 1023′ of water, is the first platform in >1000′ of water.

Production and reserves: Per Talos, QNE adds 30,000 boe/d of production and 69 million boe of reserves.

Drilling: Per BSEE records, QNE was the operator for 2 deepwater exploration wells, both of which are classified as completed.

Active leases: The QNE acquisition will add 51 leases to the Talos’s 143 lease inventory.

Recent lease sale activity:

SaleQNETalos
2572/110/10
2596/45/4
2616/414/13
total/high bids for QuarterNorth (QNE) and Talos

Sales price and decommissioning: QNE was already on the market for “more than $2 billion,” shortly after the company was formed. Talos is paying $1.29 billion consisting of 24.8 million shares of Talos’s common stock and approximately $965 million in cash. A case study of the complex Fieldwood bankruptcy and the outcomes for the various parties would be most interesting. Also of interest would be a study of the decommissioning obligations of the former companies and the extent to which the sale proceeds are being applied.

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Based on drilling contractor rig activity reports, the table below lists 19 deepwater MODUs under or soon to begin contracts in the GoM. (Further details are pasted at the end of this post.) Per the Valeris report, platform rigs are operating on bp’s Thunder Horse and Mad Dog platforms. Per the BSEE borehole file, Arena and Cantium continue to drill development wells on the GoM shelf.

Rig NameOperator
Deepwater TitanChevron
Deepwater AtlasBeacon
Deepwater PoseidonShell
Deepwater PontusShell
Deepwater ProteusShell
Deepwater Conquerornot disclosed
Deepwater ThalassaShell
Deepwater AsgardMurphy
Deepwater InvictusWoodside
Globetrotter IShell
Globetrotter IIShell
Faye KozackQuarterNorth
LLOG
Kosmos
Stanley LafosseMurphy
Valaris DS-18Chevron
Valaris DS-16Oxy
Ocean BlackHornetbp
Ocean Black Lionbp
Aurigabp
Velabp
Beacon

Excerpts from rig activity reports:

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