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Posts Tagged ‘Shell’

The 5 new deepwater GoM platforms are now (or will soon be) producing. What’s next?

Posted in energy policy, Gulf of Mexico, Offshore Energy - General, tagged , , , , , , , , , , , , , , , , on August 21, 2024| Leave a Comment »

Shell Vito
Chevron Anchor
bp Argos
Murphy King’s Quay
Shell Whale

Four of the five simpler, safer, greener deepwater platforms featured on this blog are now producing. The 5th platform (Whale) is on location and scheduled to begin production later this year.

platformoperatorfirst production
King’s QuayMurphyApril 2022
VitoShellFeb 2023
ArgosbpApril 2023
AnchorChevronAug 2024
WhaleShelllate 2024

These platforms are in 4000 to 8600′ of water, are expected to reach peak production rates of 100-150,000 boe/day, and have favorable emissions characteristics on a per barrel basis.

This is all good, but what is next? Will technological advances once again sustain GoM production? The short answer appears to be yes!

The efficiencies achieved with the simpler platform designs combined with the high pressure (>15,000 psi) technology developed over the past 2 decades will facilitate production from the highly prospective Paleogene (Wilcox) deepwater fans. (For those interested in learning more about the geology, see the excellent presentation by Dr. Mike Sweet, Univ. of Texas, that is embedded below.)

Chevron’s Anchor is the first deepwater, high-pressure development. Three similar deepwater hub platforms (table below) will begin production over the next 5 years. These host platforms will also facilitate additional production from nearby fields. Each will have production capacities of approximately 100,000 boe/day. Note the long lead times in achieving first production given the technological issues that had to be evaluated and addressed.

platformoperatordiscovery datefirst production
Kaskidabp20062029
SpartaShell20122028
ShenandoahBeacon20092025

Wood Mackenzie sees these high pressure projects as the key to sustaining GoM production rates. Their projections for 2024 and 2025 seem optimistic based on 2024 YTD data, which adds to the importance of the projected new production.

Related: Movin’ on up to 20,000 psi BOP equipment

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Impressive Brent C decommissioning video – heaviest ever offshore lift – 31,000 tonnes

Posted in decommissioning, Offshore Energy - General, UK, tagged , , , , , on July 12, 2024| Leave a Comment »

Some of us remember the Brent Spar saga (1995). The subsequent Brent field decommissioning activities have been less controversial, including the removal of the Brent C topsides on July 9. The Allseas single lift technology is most impressive. Check out the video!

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How China became a factor in the Stabroek (Guyana) dispute

Posted in Canada, energy policy, Guyana, Offshore Energy - General, tagged , , , , , , on March 25, 2024| 4 Comments »

State-owned Chinese National Offshore Oil Corp. (CNOOC) has now joined Exxon in filing an arbitration claim to establish their right over Hess’s share of the prolific Stabroek block offshore Guyana. How did CNOOC acquire its 25% share in the block?

So, an apparent afterthought in CNOOC’s takeover of Nexen has (1) proven to be extremely profitable, (2) given the company and the Chinese government leverage in the Exxon-Chevron supermajor dispute, and (3) opened the door for CNOOC to increase their interest in the massive Stabroek field.

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2023 Safety Honor Roll: Gulf of Mexico operators

Posted in Uncategorized, tagged , , , , , , , , , on February 6, 2024| Leave a Comment »

The Honor Roll companies for 2023 (listed alphabetically) are Anadarko, bp, Cantium, Chevron, Eni, Hess, LLOG, Murphy, QuarterNorth, and Shell.

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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Saluting the Christmas lease sale (261)

Posted in Gulf of Mexico, Offshore Energy - General, tagged , , , , , , , , , , on December 22, 2023| Leave a Comment »

  • Biggest prize at the holiday party went to Anadarko: Mississippi Canyon 389 – 5 bids, $25.5 million high bid
  • Biggest holiday shopping spree: Shell’s 65 high bids accounted for 24% of the sale’s high bids (excluding CCS bids).
  • Big spender award: Hess – $88.3 million on only 20 high bids. Does Chevron approve? 😀
  • Aussie, Aussie, Aussie, Oi, Oi, Oi: Strong performance by Woodside. 18 high bids, $24.8 million
  • Heia Norge!: Equinor continues to shine in the GoM! 13 high bids, $20.6 million
  • Spirit of America award to Red Willow Offshore which is owned by the Southern Ute tribe. 22 high bids!
  • Deepwater independents for (energy) independence: Beacon, Murphy, LLOG, Kosmos, Talos, Houston Energy, Ridgewood, QuarterNorth, Alta Mar, CSL, CL&F, and Westlawn
  • Smart shelf shoppers: Arena, Byron, Focus, Cantium
  • Even pace wins the race: Another solid lease sale for bp – 24 high bids.
  • So happy together 😀: Chevron and Hess combined for 48 high bids, $114 million
  • Coal in their stockings? Repsol (Sale 261) and Exxon (Sales 257 and 259) made up their own rules for acquiring carbon dumping leases. Perhaps some solid carbon in their Christmas stockings would be appropriate.
  • Christmas in July?: A lease sale in 2024 is needed. Sometime near the 4th of July holiday would be good. It’s up to you Congress!

Holiday greetings to our friends around the world!

Stocking stuffer for that special person! 😉

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Suriname’s new production licenses

Posted in energy policy, Offshore Energy - General, tagged , , , , , , on December 16, 2023| Leave a Comment »

BlockOperatorPartnerswater depth (m)area (sq km)
63Petronas (100%)<13005425
64Total (40%)Qatar Energy (30%)
Petronas (30%)		1300-17006262
65Shell (60%)Qatar Energy (40%)1300-17005000+

Through the PSCs, Staatsolie extends the rights for exploration, development and production to these companies. The costs and risks during the exploration period are fully covered by the latter. The exploration period consists of three phases and will last seven years. An exploration well will be drilled in both Block 64 and Block 65 in the first phase, which will last three years. In Block 63 the first exploration well follows in the second phase of the exploration period. In the event of an oil or gas discovery that is declared commercial, Staatsolie has the right to participate in all three blocks for a maximum of twenty percent from the development period

Staatsolie

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Endangered Whale sighting in the Gulf of Mexico ðŸ˜‰

Posted in energy policy, Gulf of Mexico, Offshore Energy - General, tagged , , , , , on November 17, 2023| Leave a Comment »

Whale FPU; Source: Boskalis

Lars Herbst noted another endangered whale sighting by the US Coast Guard. Unlike their erroneous Rice’s whale report in September (still waiting for their mea culpa), the Coast Guard has gotten this one right. The 25,000 ton Whale is pictured above.

Whale’s species is indeed endangered with the most serious threats coming from a faraway place on the Potomac River. The “newborn” Whale is one of only 15 of its species in the Gulf of Mexico. The entire platformus deepis genus numbers only 59, but their importance to society is enormous (read more).

Perhaps the wise people who control our offshore lands will do more to encourage and support these floating behemoths. Unfortunately, their 5 year management plan is not encouraging in that regard.

More about Whale

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June production bump continues through July

Posted in Gulf of Mexico, Offshore Energy - General, tagged , , , , , , on October 2, 2023| Leave a Comment »

This is presumably due to the new production at Vito and Argos. Will we see 2 million bopd again? Perhaps later this year or next, but production increases are unlikely beyond that given the current state of the offshore leasing program. You can’t efficiently develop and supplement new discoveries without consistent, predictable leasing.

Shell Vito under tow to the Mississippi Canyon area of the Gulf of Mexico.

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Impressive deepwater diligence

Posted in drilling, Gulf of Mexico, Offshore Energy - General, tagged , , , , , , , , on September 27, 2023| Leave a Comment »

Pictured: Transocean’s Deepwater Proteus. T/O should name one of their drillships Deepwater Diligence 😉

Seven of the deepwater exploratory wells drilled in the Gulf of Mexico in 2023 (YTD) were spudded within 4.5 years of the effective date of their leases. Three of these wells were spudded within 3 years of their lease effective dates (see table below).

These are impressive achievements when you consider the time required for consultation with partners (if any) and contractors, site surveys, exploration plan development and approval, well planning, and drilling permit preparation and approval.

The subject wells accounted for 28% of the deepwater exploratory well starts in 2023 (25 net YTD wells after subtracting restarts at the same location).

date lease
effective		spud dateelapsed time
(months)		water
depth (ft)		operator
3/1/20218/27/2023306498Shell
8/1/20205/21/2023342211Talos
8/1/20203/15/2023313338Talos
12/1/20196/5/2023424228Chevron
11/1/20196/1/2023434603Hess
7/1/20197/11/2023487486Kosmos
12/1/20186/6/2023544127bp

Below are the exploration plan (EP) and permit (APD) approval timeframes for these 7 wells. With the exception of the Kosmos EP which required a number of modifications, the regulator actions appear to have been timely. For the bp, Shell, and Chevron wells, only 4-6 months elapsed between EP submittal and APD approval.

operatorblockdate EP
received		date EP
approved		APD
received		APD
approved
ShellWR 3653/1/20235/17/20235/11/20238/8/2023
TalosGC 781/19/20214/16/20213/8/20235/26/2023
TalosMC 1624/1/20227/13/20228/2/20223/2/2023
ChevronMC 93712/7/20225/19/20234/21/20235/21/2023
HessMC 7278/30/202211/3/202212/21/20224/24/2023
KosmosKC 9641/3/202010/12/20224/18/20237/3/2023
bpGC 4361/18/20234/14/20233/29/20236/5/2023
Notes: EP=Exploration Plan, APD=Application for Permit to Drill, WR=Walker Ridge, GC=Green Canyon, MC=Mississippi Canyon, KC=Keathley Canyon

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150th Gulf of Mexico well in >8000′ of water as rig count remains strong

Posted in drilling, Gulf of Mexico, Offshore Energy - General, tagged , , , , , , , on May 22, 2023| Leave a Comment »

Per the BSEE borehole file, there were 2 deepwater exploratory well starts since 4/1/2023. The Shell well is another GoM milestone in that it is the 150th well spudded in >8000′ of water. The first was in the year 2000.

Operatorspud datelocationwater depth
Chevron5/5/2023Mississippi Canyon 6086678′
Shell4/13/2023Alaminos Canyon 7288660′

Arena and Cantium continue to drive shelf drilling. Below are the shelf development wells since 4/1/2023:

Operatorspud datelocationwater depth
Arena5/6/2023Eugene Island 261160′
Cantium4/8/2023Main Pass 3860′
Cantium4/1/2023Main Pass 299217′

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