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Global and Regional Markets

Middle East driving global growth in conventional oil output

Middle Eastern oil production is expected to grow by 2.7 million BPD by 2025, according to latest Rystad Energy analysis. The boost in conventional oil output from the Middle East is primarily driven by supply additions from Iraq with 1.5 million BPD growth, and an additional 1.2 million BPD mainly coming from the Neutral Zone, the UAE and Iran in the medium term. Iraq Rystad Energy forecasts the country’s oil production could grow to 6.15 million BPD in 2025. The current ramp up from producing assets is expected to add about 625,000 BPD on the country’s output of about 4.65 million BPD. The growth will primarily be driven by the giant southern fields, Rumaila, West Qurna-1 and West Qurna-2. Over the past 18 months, the ...

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US crude oil and natural gas production increased in 2017, with fewer wells

The total number of wells producing crude oil and natural gas in the United States fell to 991,000 in 2017, down from a peak of 1,039,000 wells in 2014. EIA’s updated US Oil and Natural Gas Wells by Production Rate report shows how daily production rates of individual wells contributed to US total crude oil and natural gas production in 2017. Wells classified as nonhorizontal in the report—most of which are vertical wells—have decreased from 940,000 in 2014 to 864,000 in 2017. Horizontal wells are relatively less common, but they are growing as a share of the total: the 99,000 horizontal wells drilled in 2014 accounted for 10% of the total. In 2017, 127,000 horizontal wells accounted for 13% of ...

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Wicklund: Scale matters, and drilling industry needs more consolidation

By Linda Hsieh, Managing Editor The global drilling industry is on the road to recovery, even if the recovery isn’t quite here yet for every segment of the market, Jim Wicklund, Managing Director, Energy, for Credit Suisse, said at the 2018 IADC Annual General Meeting on 9 November in New Orleans. In the meantime, he urged the industry to look more toward consolidation. Onshore North America, the recovery has arrived, with the US rig count up by 300% over the past 2.5 years, Mr Wicklund noted. He forecasts that the rig count will resume its march upwards next year, especially once pipeline capacity is added to increase takeaway capacity in the Permian. In particular, super-spec rigs – featuring greater horsepower, higher ...

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Industry attention redirecting back to more mature unconventional plays

A lot of attention in the drilling industry is being directed back to some of the more mature plays like the Eagle Ford and Bakken, said Todd Bush, VP Commercial and Principal, Westwood Global Energy. In this video from the 2018 IADC Annual General Meeting in New Orleans on 8 November, Mr Bush talks about what’s driving this trend, as well as his forecasts for drilled but uncompleted wells (DUCs) in the Permian and how production might be impacted. Further, he talks about why the Haynesville is now being closed monitored. Watch the video for more information.

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Aquaterra Energy bags another Johan Sverdrup win

Aquaterra Energy has been awarded a contract by Equinor to deliver early well-construction operations for the next 16 wells of the Johan Sverdrup field development. The award follows Aquaterra Energy’s successful Phase I Tie-Back project for the engineering of nine complete strings of centralizers and tieback engineering services, which were delivered in Q3 2018. Under the new contract, the company will supply its Well Start solution to engineer conductor guide, cellar deck and internal centralizers for the field to ensure conductor performance for the 50-year field life. The project, set to commence in Q4, will also include hang-off tools for the conductor. Well Start is a single-source solution that manages the complete set of early well construction activities including third-party interfaces, engineering ...

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Wood secures $53 million of contracts supporting ADNOC Onshore

Wood has been awarded three new, call-off contracts totaling $53 million by ADNOC Onshore, a subsidiary of Abu Dhabi National Oil Company (ADNOC). Project management consultancy (PMC) services will be provided for major projects across the company’s onshore fields in Abu Dhabi, aimed at supporting ADNOC’s group-wide production capacity target of 4 million BPD by 2020. Creating around 100 new jobs in the country, the five-year contracts have one-year extension options available. This win builds on Wood’s successful track record of partnering with ADNOC, which spans over 40 years and has included multiple, significant PMC projects. “Wood has a strong foothold in the Middle East and our strategic focus on continuing to broaden the capabilities we deliver to the oil and ...

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Maersk Giant jackup sold to independent operator

Maersk Drilling has entered into an agreement to sell the Maersk Giant jackup to an Australasian-based independent oil and gas operator. The transaction is expected to close before the end of 2018. The new owner expect to use the rig for its Australasian operations. “The sale is part of our fleet optimization in line with our strategic priority of maintaining a fleet of modern, high-quality assets. Given the limited prospects for Maersk Giant, we believe a sale creates the highest shareholder value,” Jesper Ridder Olsen, CFO of Maersk Drilling, said. In 2015, Maersk Drilling decommissioned the Maersk Endurer jackup rig (delivered in 1984), and in 2016, Maersk Drilling converted the Maersk Guardian jackup (delivered in 1986) from a drilling rig to an accommodation ...

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Equinor wins bids for new licences offshore Newfoundland

Equinor and its partners were the successful bidders for new exploration parcels in the prolific Jeanne d’Arc basin, offshore Newfoundland. Equinor will operate two exploration parcels, NL18-CFB01-14 (Equinor Canada 70%, Husky Energy 30%) and NL18-CFB01-15 (Equinor Canada 60%, Suncor Energy 40%), totaling 4,126 sq km. Further, the company will participate in the Suncor-operated parcel NL18-CFB02-01, totaling 1,425 sq km, (Suncor 40%, Equinor Canada 30%, Husky 30%). “We are pleased to have secured significant acreage and new exploration opportunities offshore Canada. The successful bids aligns with Equinor’s strategy of developing our position in prolific basins,” Tim Dodson, Equinor’s Executive Vice President for Exploration, said. “These exploration investments provide Equinor an important opportunity to advance our position in a region where we have a well-established exploration portfolio while we continue to evaluate and mature our existing exploration assets in the Flemish Pass Basin.” Equinor has ...

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Maersk Drilling named preferred contractor by Wintershall Noordzee

Maersk Drilling and Wintershall Noordzee have extended their previous cooperation in a new agreement which gives Maersk Drilling the status of preferred contractor to Wintershall Noordzee’s offshore drilling work. The agreement, which includes closer cooperation on using data to improve drilling efficiency, comes into effect immediately and will remain in force until the end of June 2020. The first contract under the agreement has been awarded to the Maersk Resolve jackup rig. Wintershall Noordzee has signed up the rig to plug and abandon three wells in the Dutch sector of the North Sea. The plugging and abandonment campaign is expected to commence in January 2019, with an expected duration of 90 days. As part of the agreement, the parties will work ...

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Israel announces 2nd offshore bid round

Israel has launched its second bid round to grant exploration licenses for natural gas and oil in the country’s economic waters in the Eastern Mediterranean. The upcoming bid round is pursuant to an earlier round that began two years ago and granted six licenses; some are expected to commence drilling in the upcoming months. “It is my pleasure to announce the launch of our new bid round for exploration and production of natural gas reservoirs in the East Mediterranean,” Dr Yuval Steinitz, Israeli Energy Minister, said. “This bid is intended to continue the development of the natural gas market in Israel, increase competition by the entry of new international energy companies and broaden Israel’s energy security. These efforts correlate with the progress of the subsea pipeline between ...

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