Equinor and Neptune Energy have struck oil in the Sigrun East prospect in the North Sea. Recoverable resources are estimated at 7 million to 17 million BOE.
Two wells were drilled by the West Phoenix semi to a vertical depth of 3,810 m and 4,038 m, respectively, in 109 m of water. The main well proved oil in three zones in moderate-quality sandstone in the Hugin formation.
In others news, Equinor and co-venturers Progress Resources and Repsol E&P announced that they have encountered oil in the Monument exploration well in the US Gulf of Mexico. The well found approximately 60 m of net oil pay with good reservoir characteristics in Paleogene sandstone. This provides an early indication of the productive reservoir interval at the well location. The well was drilled to a total depth of 10,164 m using the Pacific Khamsin rig.
Separately, Equinor and partners Shell and Total announced they have completed the drilling of well 31/5-7 Eos south of the Troll field in the North Sea. The purpose of the well was to determine the suitability of the reservoir in the Johansen formation for CO₂ storage. Preliminary results from the well have been positive, according to Equinor. Located some 2,500 m below the seabed, this was the first well drilled in exploitation license 001.
Keppel FELS has delivered the Hild jackup rig to Borr Drilling. Built to Keppel’s proprietary KFELS Super B Class design, Hild is the sixth jackup that Keppel has delivered to Borr Drilling out of the 11 that were ordered. The rig is capable of operating in 400-ft water depths and drilling to 35,000 ft. Equipped with a maximum combined cantilever load of 2,700 kips and high-capacity hook loads of 2 million lbs, the KFELS Super B Class has tremendous horsepower during drilling operations.
Following this delivery, Borr Drilling will have nine KFELS B Class and two KFELS A Class rigs in its fleet.
Shell has taken a final investment decision to develop the first phase of Arrow Energy’s Surat Gas Project in Queensland, Australia. This decision will bring up to 90 billion cu ft per year of new gas to market at peak production, which will flow to Shell-operated QGC to be sold locally and exported through its plant on Curtis Island.
On 18 March, the US Bureau of Ocean Energy Management announced that region-wide Gulf of Mexico Lease Sale 254 generated $93,083,453 in high bids for 71 tracts covering 397,285 acres in federal waters of the Gulf of Mexico. That amounts to roughly half of the previous lease sale held in August 2019.
Although bidding activity was muted, the majors took part, accounting for more than 60% of the high bid amount.
Lease Sale 254 included 14,594 unleased blocks located from 3 to 231 miles offshore in the Gulf’s Western, Central and Eastern Planning Areas in water depths ranging from 9 to more than 11,115 ft (3 to 3,400 m).
Shelf Drilling recently announced contract updates for three of its jackups:
- The contract end date for the Shelf Drilling Tenacious has been amended from January 2022 to September 2020. This contract was originally executed in 2017 and commenced in early 2018 in the Middle East;
- The company received a notification for the early termination of the Trident XIV contract. The contract end date has been changed from February 2021 to July 2020; and
- The company entered into a mutual agreement to amend the contract end date for the Shelf Drilling Mentor from January 2022 to October 2020. This contract was originally executed in 2017 and commenced in early 2018 in the Middle East.
Equinor recently awarded Maersk Drilling a four-well extension for the Maersk Intrepid jackup to continue drilling on the Martin Linge field offshore Norway. The jackup will drill and complete three additional gas wells, followed by one well P&A. The extension is expected to commence in September 2020.
Apache and Total have announced a significant oil discovery at the Sapakara West-1 well drilled in Block 58 offshore Suriname. Preliminary fluid samples and test results indicate at least 259 ft of net oil and gas condensate pay in two intervals.
McDermott announced early first gas has been achieved on India’s ONGC 98/2 Block in the Krishna Godavari Basin. The project was the largest integrated subsea project in India, which included the supply of 26 deepwater trees, as well as the installation of subsea umbilicals, risers and flowlines at a water depth between 0 and 4,265 ft.