BSEE to establish Ocean Energy Safety Institute for collaborative research, shared learning

Posted on 05 June 2013

The US Bureau of Safety and Environmental Enforcement (BSEE) will establish an independent Ocean Energy Safety Institute to further enhance safe and responsible operations across the offshore oil and gas industry. The institute will provide a forum for dialogue, shared learning and cooperative research among academia, government, industry and other non-government organizations in offshore-related technologies and activities that ensure safe operations with limited impact to the environment.

“The Institute will help federal regulators keep pace with new processes employed by the industry as they move into deeper water and deeper geologic plays that require technological innovation to bring projects into production,” Rear Admiral James Watson, director of BSEE, said. “I look forward to expanding the dialogue and engagement with additional stakeholders to identify and reduce risks to worker safety and the environment.” Interested applicants should register with the grants.gov website to submit an application.

The institute stems from a recommendation from the Ocean Energy Safety Advisory Committee (OESC), a federal advisory group comprised of representatives from industry, federal government agencies, non-governmental organizations and the academic community. The recommendation calls for establishing a body that will provide a program of research, technical assistance and education and serve as a center of expertise in oil and gas exploration, development and production technology. The institute will be an important source of unbiased, independent information and will not have any regulatory authority over the offshore industry.

“As offshore energy development becomes more complex, every effort should be made to make sure it is done ever more safely,” said Dr Thomas O. Hunter, chair of the OESC and former Sandia National Laboratory director. “The Institute provides a unique opportunity for all engaged parties to work together to identify and deploy technology that will make a real and enduring difference. The time is right and the opportunity is clear.”

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BP to add $1 billion investment, two rigs to Alaska North Slope

BP is planning to add US $1 billion in new investment and two drilling rigs to its Alaska North Slope fields over the next five years due to changes in the state’s oil tax policy signed into law this month by Alaska Gov. Sean Parnell. These plans call for an increase in drilling and well-work activity, the upgrading of existing facilities and the addition of up to 200 jobs in the state, giving a boost to both the company’s operations and the state’s economy.

In addition, BP has successfully secured support from the other working interest owners at Prudhoe Bay to begin evaluating an additional $3 billion worth of new development projects. These projects, located in the west end of the Greater Prudhoe Bay Area, could continue for approximately 10 years, further increasing the state’s oil production and providing additional jobs.

“With this new tax law, the Alaska legislature and Governor Parnell have taken an important step toward improving Alaska’s long-term economic future,” Janet Weiss, BP Alaska region president, said. “Our announcement today should make abundantly clear that BP is committed to being a part of that future and to continuing to extend the life of North America’s largest oil field.”

BP Exploration (Alaska) will issue a request for proposals this summer for the two additional rigs in Prudhoe Bay. The first drilling rig is expected to be in place by 2015 and the second in 2016. This will increase BP’s rig fleet in Alaska to nine. Meanwhile, BP expects to increase well work as soon Q4 2013, a move that should improve the performance of existing wells at the Prudhoe Bay and Milne Point fields.

The additional development opportunities being evaluated by working interest owners are in the west end of Prudhoe Bay and include expansion and de-bottlenecking of existing Prudhoe Bay facilities, constructing a new drilling pad, and expansions of existing pads, including the drilling of more than 110 new wells. The appraisal phase will take two to three years and will include engineering work and securing regulatory approvals for multiple development projects.

“Now that an improved tax structure is in place, oil and gas projects can once again move forward, keeping Alaska competitive in the midst of America’s recent energy renaissance,” Ms Weiss said.

BP is also working with other companies and the state of Alaska to commercialize Alaska North Slope natural gas as part of a joint concept selection group focused on a South Central Alaska LNG project.

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Statoil discovers oil in Grane field in the North Sea

Posted on 05 June 2013

Statoil, together with partners in the Grane Unit, has made a new oil discovery in the Grane field in the North Sea.

Statoil and its partners are in the process of concluding drilling operations in exploration well 25/11-27 in the Grane Unit. Drilled by Songa Offshore’s Songa Trym semisubmersible, the well proved an oil column of 20 meters in the Heimdal Formation. The estimated volume of the discovery is in the range of 18 to 33 million bbls of recoverable oil.

“We are pleased with having proven new very high value resources in the Grane area,” Tore Løseth, vice president for exploration in the North Sea, said. “The oil discovery is located directly north of the Grane field and can be developed effectively.”

Timely near-field exploration is an important element in Statoil’s exploration strategy for the Norwegian continental shelf (NCS). This implies exploration close to existing installations that in the near future will have spare capacity for new tie-ins. “Near-field exploration is an important contribution in Statoil’s exploration portfolio on the NCS,” Mr Løseth said. “Even though volumes in these discoveries are moderate compared with the big finds over the last few years, these are fast, high-value barrels that are important for extending the production life of existing installations.”

In 2013, about 40% of Statoil’s exploration wells on the NCS will be near-field exploration. In addition to the Grane area, this includes the Oseberg, Fram/Gjøa and Tampen areas.

Exploration well 25/11-27 is situated in the Grane Unit in the North Sea. Statoil is operator with an interest of 36.66%. The partners are Petoro (28.94%), ExxonMobil Exploration & Production Norway (28.22%) and ConocoPhillips Skandinavia (6.17%).

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