Rosneft spuds Kara Sea well

Rosneft and ExxonMobil joint venture company Karmorneftegaz began drilling at Universitetskaya-1, the Russian Federation's northernmost well using the ‘West Alpha’ rig. The signal to begin drilling was given by Russian President Vladimir Putin in a video link to the Kara Sea with the head of Rosneft Igor Sechin and the head of ExxonMobil Russia Glenn Waller. Special representative of President of the Russian Federation on international cooperation in the Arctic and Antarctic Artur Chilingarov and North Atlantic Drilling representative Jan Tore Theimann also took part in the ceremony. “The start of exploratory drilling in the Kara Sea is the most important event of the year for the global oil and gas industry. As a result of this work we hope to discover a new Kara Sea oil-bearing province. Developing of the Arctic shelf has a huge multiplicative effect on the whole Russian economy” – said Igor Sechin. The ‘West Alpha’ rig was provided by the Norwegian company North Atlantic Drilling which signed long-term agreements with Rosneft on 30th July 2014 for the offshore drilling. ‘West Alpha’ was transported via the Barents, Pechora and Kara Seas and installed on the drilling site of the East Prinovozemelskiy-1 Licence Area in the Kara Sea. The drilling rig made the way of over 1,900 nautical miles to reach its destination. The rig is 30,700 tons in deadweight, 70 m long, 66 m wide, the derrick hangs 108.5 meters over the main deck, and it drafts during drilling for 21.5 m. The rig is held on the drilling site by an 8-anchor positioning system, which provides advanced stability for the rig. Most of the platform is outside the reach of waves, which are no impediment for the rig's operation. The drilling will continue for two months.

Rosneft announces discovery with Universitetskaya-1 well

Rosneft successfully completed the drilling of the northernmost well in the world – the Universitetskaya-1 well in the Arctic. According to the results of the drilling Rosneft has made an oil discovery at the East-Prinovozemelskiy-1 license area. The drilling was completed in record-breaking time - in one and a half month - in compliance with all the technological and ecological standards and requirements. The sea depth at the drilling site is 81 m, the depth of the straight well – 2,113 m. the well was drilled in open-water conditions – at the 74th circle of longitude, 250 km clear off the inland of the Russian Federation. As a result of the drilling formation samples were obtained, a pilot borehole was drilled (diameter 8.5 inches to a depth of 600 m) and horizontal drill samples were collected. Specialists obtained substantial amount of new geological data which will be elaborated. Upon the completion of the analysis a conclusion on the resource base of the discovered field can be made. At the moment the geological data interpretation is being conducted, the field’s development model is being elaborated. The security and fail-safety of the operations of future drilling is guaranteed by the landing of 5 columns. The Universitetskaya structure covers an area of 1,200 thousand kilometers with a 550 m high hydrocarbon trap. Its resources account to more than 1.3 billion tons of oil equivalent. A total of some 30 structures were found in three East Prinovozemelskiy areas of the Kara Sea, and the entire resource base of the three areas is estimated at 87 billion barrels or 13 billion tonnes of oil equivalent. According to experts the volume of the Kara Sea oil province resources exceeds the oil and gas resources the Gulf of Mexico, the Brazilian shelf, the shelf of Alaska and Canada, and it will be comparable to the resource base of Saudi Arabia. Prior to the start of operations in the Kara Sea the ‘West Alpha’ drilling rig was heavily upgraded, which among other things was needed to guarantee ecological safety. The rig is equipped with two groups of blowout preventers and an independent submarine locking device, which in case of minor risks will seal the well. The rig is held at the drilling site by an anchoring positioning system, consisting of 8 anchors. This guarantee an elevate rig stability. Most of the platform is out of the reach of the waves, which can disturb its operations. The rig is capable of drilling to a depth of up to 7 km.

Centrica given approval to drill Ivory prospect

The Norwegian Petroleum Directorate (NPD) has granted Centrica Resources (Norge) AS a drilling permit for wellbore 6707/10-3, cf. Section 8 of the Resource Management Regulations. Wellbore 6707/10-3 will be drilled from the 'West Navigator' drilling facility at position 67°11'31.58 N and 7°19'34.06" east. The drilling programme for wellbore 6707/10-3 relates to drilling of a wildcat well in production licence 528 B. Centrica Resources (Norge) AS is the operator with an ownership interest of 40 per cent. The other licensees are Statoil Petroleum AS (35 per cent), Atlantic Petroleum Norge AS (15 per cent) and Rocksource Exploration Norway AS (10 per cent). The area in this licence consists of part of block 6707/10. The well will be drilled about 20 kilometres north-east of the Aasta Hansteen field. Production licence 528 B was awarded on 13 May 2011) (21st licensing round on the Norwegian shelf.). This is the first well to be drilled in the licence. The permit is contingent upon the operator securing all other permits and consents required by the authorities before the drilling activity commences.

Centrica strikes gas at Ivory prospect

Atlantic Petroleum is pleased to announce that the PL528 B Ivory exploration well in the Norwegian Sea has discovered gas. The 6707/10-3S well tested the westernmost segment of the Ivory structure, one of several prospects within the license. The primary objective of the Ivory well was to prove the presence of hydrocarbons in the Kvitnos Formation sandstones. A thick, well developed deep marine fan was encountered 61 m shallower than prognosed. The well was drilled down-dip from the crest of the structure and encountered a 12 m gas-zone. In the Lysing Formation the well penetrated a water-bearing sand. Extensive data acquisition has been performed including cores, fluid samples, pressure points, wireline logs and VSP. These data will now be fully analysed. Further work is needed to evaluate the resource potential of the discovery. Given commercial, the discovery can be tied back to the Statoil-operated Aasta Hansteen field, located 20 km to the southwest, and which is due to come on stream in 2017. The exploration well was drilled to a total depth of 4,264 m below sea level by the West Navigator drill ship. The well will now be permanently plugged and abandoned.

Centrica completes drilling of Ivory well in Norway

Centrica Resources Norge AS, operator of production licence 528 B, is about to complete drilling of wildcat well 6707/10-3 S. The well was drilled about 20 kilometres northeast of the Aasta Hansteen field in the Norwegian Sea. The primary and secondary exploration targets for the well were proving petroleum in Upper Cretaceous reservoir rocks, the Kvitnos and Lysing formations, respectively. Well 6707/10-3 S encountered a total gas column of about 12 metres in the Kvitnos formation with good reservoir properties. The entire reservoir zone, including the water zone, has a gross thickness of about 200 metres. Reservoir rocks were encountered in the secondary exploration target with a total of 25 metres thickness in the Lysing formation, which was tight and aquiferous. Preliminary calculations of the size of the discovery are between two and eight billion standard cubic metres (Sm3) of recoverable gas. The licensees will assess well results with regard to profitability. The well was not formation tested, but extensive data acquisition and sampling were carried out. This is the first exploration well in production licence 528 B. The licence was awarded in the 21st licensing round, as an addition to production licence 528. Well 6707/10-3 S was drilled to a vertical depth of 4264 metres below the sea surface, and was terminated in the Lange formation in the Lower Cretaceous. Water depth is 1421 metres. The well will now be permanently plugged and abandoned. Well 6707/10-3 S was drilled by the West Navigator drill ship.

ExxonMobil to use 'West Alpha' on Balder field

ExxonMobil has received consent to use the West Alpha semisub drilling rig for production drilling, completion and installation of subsea equipment on the Balder field. Balder was the first oil field to be discovered on the Norwegian Continental Shelf, with Esso as the sole licensee in production licence 001. This happened as far back as 1967, more than two years before the Ekofisk field was discovered and declared viable. At the time, Balder was not assessed to be commercially interesting. Following new investigations, the Balder field was subsequently developed. Production began in 1999, still with ExxonMobil as the sole licensee and operator. The Balder field is in the central North Sea, around 213 kilometres west of Stavanger. The field has been developed using a subsea solution tied to a floating production, storage and offloading (FPSO) unit. Water depth in the area is approximately 125 metres. ExxonMobil has now received consent from the PSA to use West Alpha to drill and complete new production wells on the field. The activities also concern the installation of subsea equipment and the plugging of wells no longer in use.

North Atlantic Drilling receives notice of termination for the West Navigator

North Atlantic Drilling Ltd. (NADL) has received a notice of termination from Rosneft of the service order for the West Navigator in connection with the Framework Agreement. The drillship was indicatively scheduled to commence operations under its five-year contract with Rosneft during the summer of 2015, which would have required earlier mobilisation. As outlined in our fourth quarter 2014 results report, NADL believes that it will be very challenging to close the transactions with Rosneft on the same terms or in the timeframe contemplated in the executed agreements, and that there were significant risks attached to the US$4.1 billion order backlog related to the drilling contracts with Rosneft. The termination of the service order for West Navigator will reduce NADL's contract backlog by US$1.0 bn. NADL will be marketing the West Navigator for alternative future opportunities, however remains in discussions with Rosneft to explore various alternatives for future co-operation.

Rosneft and NADL delay proposed agreement by two years

On August 22nd, 2014 North Atlantic Drilling Ltd. ("NADL") announced that it had entered into a Framework Agreement between NADL, Seadrill and Rosneft Oil Company ("Rosneft"). On November 7th, 2014, the closing of the transaction was delayed until the end of May 2015. Today, all parties have mutually agreed to extend the termination date of the Framework Agreement until May 31st, 2017, whereby any party can terminate the Framework Agreement and / or any offshore drilling contracts at any time prior to May 31st, 2017 at no cost. Additionally, the parties have agreed to use reasonable efforts to renegotiate the terms and characteristics of the transactions contemplated in the Framework Agreement and the terms of the related offshore drilling contracts. During this time, NADL is permitted to market the offshore drilling rigs subject to existing drilling contracts with Rosneft and enter into binding contracts with third parties. NADL will also be permitted to delay the construction, delivery, or shipyard stay of any of those rigs. This delay follows the decision to cancel the contracts for the ‘West Navigator’ drillship and ‘Energy Endeavour’ jackup, both of which were also due to go on contract with Rosneft in Russia.

North Atlantic Drilling secures new contract for 'West Phoenix'

North Atlantic Drilling ("NADL") has been awarded a contract extension for the semi-submersible rig West Phoenix by Total E&P UK Limited, commencing mid-March 2016 and securing work for the unit through the end of August 2016. The total revenue potential for the contract extension is approximately USD62 million. A portion of the USD62 million will be paid during the currently anticipated idle period from the beginning of September 2015 to the middle of March 2016. The Company has the ability to market the rig for alternate work during this period. As part of the agreement to extend the West Phoenix, the Company has agreed to a dayrate reduction on the current contract effective from June 1, 2015 until its expected conclusion at the end of August 2015, resulting in a reduction to the remaining revenue potential of approximately USD16 million.

AoC for West Phoenix

The West Phoenix mobile drilling unit operated by Seadrill Management AS has received an acknowledgement of compliance (AoC) from the Petroleum Safety Authority of Norway. This facility represents the first in a series of brand new mobile units which are due to be used on the Norwegian continental shelf.

Faroe Petroleum sublets 'West Navigator' drillship to drill Novus prospect

The Norwegian Petroleum Directorate has granted Faroe Petroleum Norge AS a drilling permit for well 6507/10-2 S, cf. Section 8 of the Resource Management Regulations. Well 6507/10-2 S will be drilled from the West Navigator drilling facility at position 65°12'48.46'' north and 7°16'59.03'' east. The drilling programme for well 6507/10-2 S concerns drilling of a wildcat well in production licence 645. Faroe Petroleum Norge AS is the operator with an ownership interest of 50 per cent. The other licensees are Centrica Resources (Norge) AS (40 per cent), Skagen44 AS (5 per cent) and Concedo ASA (5 per cent). The area in this licence consists of parts of blocks 6507/7 and 6507/10. The well will be drilled approx. 14 kilometres south of Heidrun. Production licence 645 was awarded on 3 February 2012 (APA 2011). This is the first well to be drilled in the licence. The permit is contingent upon the operator securing all other permits and consents required by the authorities prior to commencing the drilling activity.

Faroe Petroleum close to completing Novus well in Norwegian Sea

Faroe Petroleum Norge AS, operator of production licence 645, is about to complete drilling of wildcat well 6507/10-2 S. The well was drilled about 13 kilometres south of the Heidrun platform. The primary exploration target for the well was to prove petroleum in Middle Jurassic reservoir rocks (Garn and Ile formations). The secondary exploration target was to prove petroleum in Lower Jurassic reservoir rocks (Tilje formation). An approx. 12.5-metre oil column and approx. 12-metre gas column were encountered in the Garn formation, with thicker reservoir rocks and better reservoir quality than expected. The lower part of the Garn formation is aquiferous. Preliminary estimation of the size of the discovery is between 1 and 2.5 million Sm3 of recoverable oil equivalents. The other exploration targets in the Ile and Tilje formations are aquiferous. Further delineation of the discovery will be considered. The well was not formation tested, but extensive data acquisition and sampling have been carried out. This is the first exploration well in production licence 645. The licence was awarded in APA 2011. The well was drilled to a vertical depth of 2957 metres below the sea surface, and was terminated in the Åre formation in the Lower Jurassic. Water depth is 298 metres. The well will now be permanently plugged and abandoned. Well 6507/10-2 S was drilled by West Navigator which will continue working on contract for Norske Shell AS on the Ormen Lange field.

Well spudding on Fulla

Drilling operations at the Fulla Field started 12 November. The field is operated by StatoilHydro, and Det norske has a 15 percent interest in the license. Fulla is located in licenses 035 and 362, and the drilling operations are carried out by the semi-submersible rig West Alpha. The recoverable volumes are estimated at 63 MBOE (P50), while Det norske`s share is 11 MBOE. Oil, gas, and condensate are expected.The drilling operation is expected to last about 80 days. The water depth on Fulla is 114 meters. The nearest installation is Heimdal, located 36 kilometers away. The well, 30/11-7, has a reservoir of late Jurassic age in the Brent formation.

Discovery at Fulla

StatoilHydro has made a gas and condensate discovery in North Sea license 035b on the Fulla prospect with well 30/11-7. Det norske oljeselskap ASA has an ownership stake of 15 percent in the license. The well is located about 40 kilometers north of the Heimdal Field. The well encountered gas and condensate in Middle Jurassic reservoir rocks of the lower Brent Group. Testing and extensive data sampling has been carried out. Proven volumes are estimated between one and three million standard cubic metres of oil equivalents (6 to 19 million boe). An appraisal well is being planned drilled in the spring to help decide the size of the discovery. It is positive that hydrocarbons have been proven in this area, Det norske Vice President for reserves and area development Odd Ragnar Heum noted. The well was drilled to a vertical depth of 4067 meters below the seabed and ended in rocks of Lower Jurassic age. Water depth in the area is 111 meters. The well, which was drilled on a cost sharing basis between license 035b and 362, is currently being temporarily plugged and abandoned. Det norske holds a 15 percent stake also in license 362.

Drilling on Gudrun

The West Alpha drilling rig has started drilling an exploration and appraisal well on the Gudrun field in the North Sea. “The purpose is to prove sufficient amounts of oil, gas and condensate to develop the Gudrun find,” says Lars Jan Jaarvik, exploration manager for the Troll/Sleipner area. The find has been localised in block 15/3, about 45 kilometres north of the Sleipner East field. Gudrun was found through two exploration wells drilled in 1975 and 1979, when oil, gas and condensate were proven. The reservoir turned out to be complicated with high pressure and high temperature, and the reserves were not sufficiently quantified. Well 15/3-7 is a project in cooperation between the licensees in production licences 025 and 187. Statoil is the operator in PL 025, and is also operator for the drilling. BP has joined as a new partner in PL 025 and it is also the operator in PL 187. The well is to be drilled to a total depth of 4,800 metres. Middle and Upper Jurassic sandstone intervals will be assessed. The operations are planned to be completed at the beginning of August. Statoil has a 46.8 per cent share in PL 025, BP has 25 per cent, TotalFinaElf has 18.2 per cent and Norsk Hydro has 10 per cent.

Find in Gudrun well

Statoil has proven hydrocarbons in an exploration and appraisal well in the Gudrun structure in the Sleipner area of the North Sea. Well 15/3-7 was drilled in the eastern section of the structure. Hydrocarbons were encountered in Middle and Upper Jurassic sandstone intervals. The well was not production tested, but core samples were retrieved and extensive information was collected. “The results of the drilling will now be evaluated in terms of the potential reserves in Gudrun and in the rest of block 15/3,” reports Kjersti Seim, acting exploration manager for the area. Gudrun was found through two exploration wells drilled in 1975 and 1979, when oil, gas and condensate were proven. The reservoir turned out to be complicated with high pressure and high temperature, and the reserves were not sufficiently quantified. Well 15/3-7 has been a cooperation project between the licensees in production licences 025 and 187. BP is operator in 187 and Statoil in 025. Statoil has also been operator for the drilling. The licensees in licence 025 are Statoil with 46.8 per cent, BP (25 per cent), TotalFinaElf (18.2 per cent) and Norsk Hydro (10 per cent). The allocation in licence 187 is BP (25 per cent), Statoil (65 per cent) and Norsk Hydro (10 per cent).

Spudded on Ellida

The first wildcat on Statoil’s Ellida – or Grip High – prospect in the Norwegian Sea was spudded in about 1,200 metres of water on 20 June by the West Navigator drill ship. Located in block 6405/7, allocated in May 2002 as part of Norway’s 17th offshore licensing round, it lies 60 kilometres north of Norsk Hydro’s Ormen Lange development. “We’re looking for gas in this well,” explains Kent Høgseth, exploration manager for the deepwater part of the Norwegian Sea. He adds that the wildcat is being drilled in a little-explored part of the continental shelf, and that the prospects of making a find are therefore a little uncertain. The well is expected to take 2.5 months to complete. Operator Statoil has a 30 per cent interest in production licence 281, with ConocoPhillips holding 10 per cent and Norske Shell, BP and Petoro 20 per cent apiece.

Discovery on UKCS

ChevronTexaco has reported a significant oil and gas discovery in the Rosebank/Lochnagar structure on the UK continental shelf (UKCS), where Statoil holds a 30 per cent interest. Located on the Atlantic Margin, close to the boundary between the UKCS and the Faroese sector, this strike was made with well 213/27-1Z in 1,100 metres of water. Drilling was carried out by the West Navigator in the Faroe-Shetland Channel to a total measured depth of 3,607 metres, and completed on 30 August. No testing was done. ChevronTexaco and its partners plan to drill additional wells to appraise the size of this discovery. "We are very optimistic about the significance of this discovery to Statoil," reports Gregory Himes, vice president for global exploration for the former Soviet Union and Europe, in the International Exploration & Production business area. "We hope this discovery will lead to further exploration success in the UK and Faroes." Rosebank/Lochnagar lies in licence P1026, which embraces blocks 213/26 and 213/27. Statoil took a decision to farm into this licence in January 2004. Prior to drilling the discovery, the partnership applied for and was awarded interests in the five blocks surrounding the prospect during the 22nd round. Statoil has a 30 per cent interest in all five blocks. In addition to operator ChevronTexaco, with 40 per cent, and Statoil, partners in the licence are OMV with 20 per cent and Dong with 10 per cent.

Hydro extends rig contract on Troll

West Venture was hired in 2000 to drill production wells on the Troll field. The development of advanced drilling and well technology has contributed to Troll Oil now being the highest oil producer on the Norwegian continental shelf, with a daily production level of around 400,000 barrels. Today Hydro produces oil from 101 wells on the Troll field, 28 of which are three-branch wells. These help have lower drilling costs and allow greater recovery of the oil reserves. Hydro is planning to have two drilling rigs in activity on Troll Oil in the near future to keep up high production and value creation from the field.

Linerle wildcat spudded

A first exploration well has been spudded by Statoil on its Linerle prospect close to the Norne field in the Norwegian Sea today, 30 April. Located within block 6608/11 in production licence 128, this wildcat lies roughly 20 kilometres north-east of Norne. “The Linerle prospect has a potential to contain oil,” says Knut Chr Grindstad, exploration manager for the Halten/Nordland cluster. “It belongs to a sequence which also includes the Svale and Falk structures, where recoverable oil deposits have already been proven.” Being drilled from the West Navigator drill ship, the well is expected to take about 20 days to complete.

Oil find in Linerle

An oil discovery has been made by Statoil in its Linerle prospect north-east of the Norne field in the Norwegian Sea. Knut Chr Grindstad, exploration manager for the Halten/Nordland cluster in Harstad, says it is too early to say anything about the volume or type of oil in the deposit. "We've previously discovered oil in the nearby Falk structure, and Linerle underpins our strategy to realise a collective development of these parts," says Mr Grindstad. But the Falk oil has a higher density than average, and preliminary analyses indicate that the oil in Linerle is also heavier. An assessment will now be made to see whether a profitable development is feasible. "And there could be more oil in this sequence of finds in the Norne area," adds Mr Grindstad. It was recently resolved to submit a plan for development and operation of Svale and Stær, two other oil discoveries near Norne. There will however still be available capacity on the Norne production ship after this development. The West Navigator drill ship began exploratory drilling on 30 April, and this was completed on 23 May. Linerle is located in block 6608/11 in production licence 128 (the Norne licence). Statoil is operator, with Eni, Hydro, Petoro and Shell/Enterprise as partners.

New well on Alve

An appraisal well on Alve was spudded yesterday, 14 March, by operator Statoil. This small gas and condensate discovery in the Norwegian Sea lies close to the group’s Norne field. “We’re hoping to establish that the field is considerably larger than has already been proven,” explains Knut Chr Grindstad, exploration manager for the Halten/Nordland cluster. “In our view, there’s a good chance that possible additional resources in Alve will be oil.” The partners must identify more oil or gas in the discovery if they are to achieve a profitable development, he explains. Maturing and harnessing smaller fields located close to existing infrastructure is also important for Statoil, Mr Grindstad adds. The Alve well is being drilled by the West Navigator drill ship (formerly West Navion), with six weeks assigned for the operation. Once this appraisal has been completed, the vessel is due to drill a further exploration well in the Halten/Nordland area. Statoil has a 50 per cent interest in Alve. The other owners are Shell with 40 per cent and Norsk Hydro with 10 per cent.

Selling West Navigator stake

A letter of intent has been concluded by Statoil covering the sale of its 50 per cent interest in the West Navigator deepwater drill ship to Smedvig of Stavanger. The agreed purchase price is USD 175 million. Under the agreement, Smedvig will receive Statoil’s share of cash flow from the vessel from 1 May 2004. “Ownership of mobile drilling units is not defined as part of our core business,” says project manager Arne Wyller Christensen at Statoil. “We have accordingly evaluated the sale of our interest in West Navigator, and recent market developments have helped us to secure an acceptable price for our holding.” Current charters held for the drill ship provide it with employment until the fourth quarter of 2007. The agreement is conditional on board approval.

Charters awarded for 10 rig-years

Three rigs owned by two drilling contractors have been chartered by Statoil on behalf of a partnership which also includes Eni Norge, Norsk Hydro and Norske Shell. Confirming earlier letters of intent, these contracts relate to Smedvig’s West Alpha unit and the Transocean Arctic and Polar Pioneer vessels owned by Transocean. The three-year charter for West Alpha starts in the first quarter of 2006, and this rig will primarily be used for exploration. It is currently drilling production wells on Statoil’s Kristin development in the Norwegian Sea. Transocean Arctic has been chartered for about four years from the second half of 2006, and will be used for exploration drilling by the partners. Currently doing field drilling for Statoil on Norne and the Norne satellites in the Norwegian Sea, it is also due to work on Statoil’s Tyrihans project in the same waters. The charter for Polar Pioneer, currently drilling production wells on Statoil’s Snøhvit field in the Barents Sea, will run for about three years from the second quarter of 2006. This rig will primarily be used for exploration work on the Norwegian continental shelf, including the Barents Sea. The collaboration between the four partners is forward-looking and a milestone for operator cooperation on the NCS, according to Arne Tillerli Statoil’s manager for the partnership. He notes that these waters are currently characterised by a tight rig market for exploration and production drilling as well as for well workovers. The partnership model also represents a crucial step towards achieving the industry’s chosen solution for broad operator cooperation. This approach is supported by the Norwegian government through the Kon-Kraft industrial collaboration. “Our rig cooperation will be highly significant for exploration on the NCS over the next two-three years,” says Tim Dodson, senior vice president for NCS exploration at Statoil. “It ensures that the four companies involved have the rig capacity they need for a large part of their drilling programmes.”

Troll oil discovery

Hydro has proven oil deposits in the Brent formation, the deeper rock types located under the oil and gas producing layers on the Troll field in the North Sea. Hydro regards the opportunities for commercial exploitation of the Brent formation oil as encouraging, given that the find is situated close to existing installations on the Troll field. A well drilled under the oil and gas producing formations on the Troll field has proved the presence of additional oil deposits in the Brent formation. Further analyses and delineation drilling must be carried out to obtain secure data regarding the expected volume of additional reserves and recovery rate. A production test of the formation will also be carried out. The well was drilled by the West Venture rig in the area northeast for Troll C platform. The find is the fourth made this year by Hydro as a Norwegian Continental Shelf operator. Previous discoveries were on the Oseberg Sør field and on the Astero and Peon prospects. Hydro currently produces oil and gas from reservoirs in the Sognefjord and Fensfjord formations. The Brent formation, known as a petroleum-bearing reservoir rock-type in other areas of the North Sea, lies 500 meters under these formations. For example, the oil and gas reserves on the Oseberg field are situated in the Brent formation. Hydro currently produces some 260,000 barrels of oil on the Troll B and Troll C platforms. By developing advanced subsea solutions, plus innovative drilling and well technology, Hydro’s petroleum technologists have managed to exploit the extremely thin oil zone on Troll. As of today, 106 production wells have been drilled, of which 36 are multilateral. The well was drilled at a depth of 341 meters and down to 2,055 meters below sea-level. The West Venture rig will now drill a new production well on Troll Oil.

Finds on Valemon and Morvin

Gas and condensate have been proven by Statoil on Valemon near the Kvitebjørn field in the North Sea and oil has been proven on Morvin on the Halten Bank north of the Kristin field. The finds were made during drilling of appraisal wells 34/11-5S (Valemon) and 6506/11-8 (Morvin). "Developing fields near areas where we already play a leading role is essential to us," says Tim Dodson, senior vice president for the exploration cluster in the Exploration & Production Norway (UPN) business area. "Even if it is too early to determine the size of the reserves on Valemon and Morvin, these finds support the group's high ambitions for the Norwegian continental shelf." The appraisal well on Valemon was drilled from the Statoil-operated Kvitebjørn platform. With a total length of 7,380 metres this well is the longest high pressure/high temperature (HPHT) well ever drilled by the group. "This drilling operation has been highly cost-effective as the well is later to be converted to a production well for Kvitebjørn," says Astrid Sørensen, senior vice president for the Troll/Sleipner business cluster. "Field development studies of Valemon are currently being made, however, it is too early to say anything about any development of this gas/condensate find. We will look at alternatives involving a separate development and hook-up to another infrastructure," Ms Sørensen says. The appraisal well on Morvin was drilled from the West Alpha rig. "The oil find is interesting and confirms the large potential in the Halten Bank area. Morvin will most likely be developed as a satellite to the Kristin or the Åsgard field," Mr Dodson notes. The Kvitebjørn (production licence 193) licensees are Statoil with 43.55%, Petoro 30%, Hydro 15%, Enterprise Oil Norge 6.45% and Total with 5%. The Morvin licensees (production licence 134B) are Statoil with 50%, ENI 30%, Hydro 14% and total with 6%.

Drilling on Morvin

The West Alpha rig has started drilling an appraisal well for operator Statoil in the Morvin structure in the Norwegian Sea. The drilling operation began on 24 March and is expected to take just over four months. Kjell Martin Edin, senior geologist in the Halten/Nordland area and project manager for well 6506/11-8, reports that Morvin is an oil discovery on the Halten Terrace. Morvin lies in production licence 134b, about 10 kilometres from the Statoil-operated Kristin field. Like Kristin, Morvin is challenging owing to high pressure and high temperature in the reservoir. In 2001, Statoil drilled an exploration well on Morvin and found light crude. The well where the find was made was drilled at the top of the structure. The purpose of the new well is to appraise the extent of the find and clarify whether the resources are sufficient to justify a development. "If oil is proven in the well, it is likely that Morvin will be a subsea development phased in to Kristin or Åsgard," says Mr Edin. The well is set to be drilled to a depth of about 4,800 metres below sea level. Water depth in the area is 380 metres. Statoil has a 50 per cent interest in production licence 134b. The other licensees are Eni (30), Hydro (14) and Total (6).

Duster on Antares

Exploration well 6406/3-7 has been completed by operator Statoil on the Antares prospect in production licence 314 in the Norwegian Sea without encountering mobile hydrocarbons. The group now plans to drill three further exploration wells in this part of the Halten Bank area, which lies south of the Åsgard field. Drilled from the West Alpha semi-submersible in 275 metres of water, the 6406/3-7 well was intended to probe for oil and gas in Jurassic sands. “We’re naturally disappointed that the well turned out to be dry, but it was important for clarifying the potential of this area,” says Tim Dodson, Statoil’s senior vice president for exploration on the Norwegian continental shelf. Drilled to a total depth of 4,502 metres below sea level, the well terminated in early Jurassic sediments. It has now been permanently plugged and abandoned. Mr Dodson says that the three other interesting projects available in the area are due to be drilled this year and in 2007. “These operations will be carried out in quick succession, and will be important for clarifying the potential of the area,” he reports. Since Antares lies in a different geological area from the new wells, it has no significance for the probability of discoveries with them or the estimated resources they might contain. Statoil has a 45% interest in PL 314, with Hydro holding 35% and ExxonMobil 20%. West Alpha is now due to spud an exploration well in PL 255, operated by Shell.

New discovery on the Halten Bank

StatoilHydro has made a gas discovery in the Natalia prospect in the Norwegian Sea. According to preliminary calculations the discovery could contain around 1.5 billion cubic metres of recoverable gas. Natalia is located five kilometres north-west of the Midgard structure on the Åsgard field on the Halten Bank and adds to the many finds in this area. Exploration activities in the area have so far this year given good results, such as the Natalia, Gamma and Marulk (partner-operated) finds. Positive results in Gamma and Natalia are also important contributions in evaluating the potential of equivalent structures in the area.

Possible tie-back of Noatun to Njord

Recoverable reserves of the Noatun discovery have been estimated to be between five and eight million standard cubic metres of oil equivalent following the drilling of an appraisal well. A tie-back to the Njord field is being considered. In September gas and condensate were confirmed at Noatun, which lies 16 kilometres north of the Njord field in the Norwegian Sea. StatoilHydro is currently concluding the drilling of a sidetrack well from the original well. The purpose of the well was to confirm the size of a gas/condensate discovery in reservoir rocks of middle to lower Jurassic age. The data gathered in connection with the sidetrack drilling have confirmed recoverable volumes of between five and eight million standard cubic metres of oil equivalent according to a preliminary estimate. The well was drilled to a vertical depth of 5050 metres below sea level and was completed in the lower Jurassic Åre formation. ”The Noatun find proves that it is still possible to make considerable finds in established exploration models in this area, also at water depths of up to 5000 metres,” says Sivert Jørgenvåg, head of exploration activities close to existing fields on the Halten Bank. ”It is encouraging that we make discoveries which can prolong the lifetime of the Njord field.” The well was drilled by the semi-submersible West Alpha drilling rig, which is proceeding to the North Sea to drill the Fulla prospect.

Gas discovery in the Norwegian Sea

StatoilHydro has struck gas during exploration drilling in the Norwegian Sea north-west of Kristiansund and will drill a sidetrack well to further identify the area. StatoilHydro, the operator of production licence 348, now completes the drilling of exploration well 6407/8-4 S. The well is located 30 kilometres north-east of the Njord field and 9 kilometres north-west of the Draugen field. "The purpose of the well was to confirm the existence of hydrocarbons in mid/lower Jurassic rocks in the southern segment of the Galtvort prospect. It is very positive that we again strike hydrocarbons in these areas where finds can quickly be put on stream,” says StatoilHydro’s vice president for infrastructure-led exploration in the North, Ørjan Birkeland. The well has confirmed the existence of gas in Jurassic sandstone. The size of the discovery is so far not determined, and a sidetrack well will be drilled right after the current well has been completed. . This is the first exploration well in production licence 348, which was awarded in TFO 2004 (awards in pre-defined areas). No formation leak-off test has been conducted in the well, but extensive data acquisition and sampling have been performed in the reservoir. The exploration well was drilled to a vertical depth of 2632.3 metres below the sea surface and completed in rocks belonging to the lower Jurassic Åre formation. The well, located in 266 metres of water, will now be permanently plugged and abandoned. The well was drilled by the West Alpha drilling rig, which will now drill sidetrack well 6407/8-4 A on the Galtvort prospect. The licensees in production licence 348 are: StatoilHydro (30.0 percent), Gaz de France Norge (20.0), Norwegian Energy Company (17.5), E.ON Ruhrgas Norge (17.5), Endeavour Energy Norge (7.5) and Petoro (7.5).

Sidetrack to be drilled at Noatun prospect

Drilling of an exploration well in the Noatun prospect 16 kilometres north of the Njord field in the Norwegian Sea has struck gas and condensate. A sidetrack is to be drilled in the well to assess whether the find is worth exploiting. The objective of exploration well 6407/7-8 was to prove gas/condensate in the middle/lower Jurassic reservoirs in the Noatun prospect. The well struck gas/condensates at the prospective Jurassic range, although the size of the find is as yet unconfirmed. The well has been formation tested using mini-DST, and extensive data and samples have been collected. A flank sidetrack will be drilled to confirm gas/water contact and the size of the find. "We are delighted to have found hydrocarbons which can contribute to the extended lifetime of the Njord field, but we need more information before we can say anything about the size of the find, and any possible extraction methods," says Sivert Jørgenvåg, exploration manager for the Halten Bank. This is the eighth exploration well drilled in production licence 107. The licence was awarded during the ninth concession round in 1985. The well was drilled to a vertical depth of 5,110 metres under the sea surface, and terminated at the Åre formation in the lower Jurassic level. Sea depth is 293 metres. The well will be permanently plugged and abandoned. The well was drilled by the semi-submersible drilling rig West Alpha, which will now continue operations in production licence 107 by drilling sidetrack 6407/7-8A. Licensees for production licence 107 are: StatoilHydro (20%), E.ON Ruhrgas (30%), ExxonMobil (20%), Gaz de France (20%), Petoro (7.5%) and Endeavour Energy (2.5%).

Gas condensate find at Veslefrikk

A small gas condensate discovery has been made by StatoilHydro in the Canon prospect, about 11 kilometres west of the Veslefrikk field in the North Sea. The purpose of the exploration well was to prove petroleum in a fault block between the Huldra and Oseberg fields. The well tested two reservoir levels – an upper one belonging to the Brent group and a deeper level in the Statfjord group. "The exploration well struck gas condensate in the Brent group but the reservoir was thinner than expected and the find is probably not commercial," says Tom Dreyer, StatoilHydro's vice president for infrastructure exploration in the North Sea. Deeper in the structure, the well struck sandstone belonging to the Statfjord group. Data gathered from this interval showed that the reservoir consisted of tight sand and was probably full of water. Drilled by the West Alpha semi-submersible, the well will now be permanently plugged and abandoned. The rig's charter with StatoilHydro will terminate once the well is completed. This is the second well to be tested in the Canon structure. An exploration well drilled in 2000 provided inconclusive results about the economic potential of the structure. The licensees in production licence 052 are: operator StatoilHydro (18%), Petoro (37.0%), RWE Dea Norge (13.5%), Revus Energy (4.5%) and Talisman Resources Norge (27.0%).

Extending Seadrill rig contract

Statoil has offered Seadrill a new five-year contract for the use of the West Venture rig on the Norwegian continental shelf (NCS). The contract is worth about USD 712 million. “This contract will be important in ensuring that we are able to reach our production targets,” says Geir Slora, Statoil’s senior vice president for drilling and wells. Plans call for the contract to take effect from 1 August 2010, one year before the present contract for Statoil’s use of this rig expires. Under the terms of the new contract, the rig will be used by Statoil until August 2015. Statoil has the option up until January 2011 to extend the contract by a further one or two years at the same rig price. Rig capacity needed Statoil aims to maintain its present production level on the NCS for the next 10 years. Enhanced recovery from existing fields, quick and efficient development of new fields and an active exploration programme are the key measures for achieving this goal. To effectuate these measures, it is crucial that rig capacity is available. The new contract means that Statoil will not exercise the one-year extension option in the existing contract. “We are well pleased with the terms of the agreement and we see that the prices in the rig market are now at a more normal level,” says Anders Opedal, Statoil’s senior vice president for procurement. West Venture is a semi-submersible fifth-generation rig. It has been in operation for Statoil on the Troll field in the North Sea since it was built in 2000.

West Alpha returns to Ølensvåg

Westcon Yard has received a Letter of Intent from North Atlantic Drilling (a company partially owned by Seadrill) for work on the submersible rig West Alpha, in the third quarter of 2012. The work includes intermediate inspection and various modification works to prepare the rig for a new contract with ExxonMobil on the Balder field. West Alpha will bore two wells, a job which has an anticipated value of US$100 million, and will have an option for drilling a further four wells.

West Alpha arrives at Westcon

West Alpha arrived at Westcon on the 7th of February; it was also in for a major yard stay in autumn 2009. The main job this time will be to install third party equipment required for the rig’s next task which is involves the drilling and completion of well 6507/3-L-4 AH on the Alve field and the intervention of well. While this work is in progress there will also be a new Gantry Crane installed in addition to various minor works. The rig is expected to remain in the yard for a period of one week.

Rosneft contracts a number of rigs from NADL

North Atlantic Drilling Ltd. (NADL) has announced the signing of six binding offshore contracts with Rosneft Oil Company (Rosneft). The total revenue potential for the six contracts exclusive of mobilization is approximately USD4.25 billion. According to the agreement, any break rights expire after 100 days. The executed contracts include five year contracts for the ‘West Navigator’, the ‘West Rigel’, the ‘West Alpha’, two newbuild CJ-54 class rigs, and a 2.5 year contract for Northern Offshores ‘Energy Endeavour’ Gusto class jackup rig. These contracts commence in Russian waters from 2015 through 2017. These binding contracts are consistent with the provisions of the Investment and Cooperation Agreement between Seadrill, NADL and Rosneft announced on May 24th, 2014. The ‘West Alpha’ is already in Russia and is drilling for ExxonMobil under its partnership with Rosneft. The two CJ-54 newbuild jackups are yet to be identified, the only two units currently being built to this specification are being constructed for Malta Oil & Gas Ltd at Drydocks World in Dubai and it has not been confirmed whether or not NADL has struck a deal to buy these newbuilds.

Centrica set to use 'West Navigator' to drill Ivory prospect

Centrica Resources (Norge) AS has received consent for exploration drilling using the ‘West Navigator’ mobile drilling facility to drill well 6707/10-3 S, in production licences 528 and 528 B. The well is in the Norwegian Sea, around 293 km from Brønnøysund and 20 km from the Aasta Hansteen field. Water depth at the site is approx. 280 metres. Drilling is planned to begin in August 2014, with a duration of around 78 days, depending on whether a discovery is made. ‘West Navigator’ is owned and operated by North Atlantic Norway Limited. The facility received Acknowledgement of Compliance (AoC) in September 2000.