Diamond Drilling orders new harsh environment semi-sub

Diamond Offshore Drilling has announced that the company has ordered a newbuild harsh environment semi-sub rig from Hyundai Heavy Industries in South Korea. The unit will be built to Moss Maritime's CS-60E design and the total construction cost of the project is valued at US$755 million with completion after November 2015. The unit has also been awarded a contract for drilling operations for BP in Australia upon delivery for an initial three year period with a dayrate of US$585,000.

'Ocean Vanguard' set to drill 25/9-4 exploration well for Statoil on PL 628

The Norwegian Petroleum Directorate (NPD) has granted Statoil Petroleum AS a drilling permit for well 25/9-4, cf. Section 8 of the Resource Management Regulations. Well 25/9-4 will be drilled from the Ocean Vanguard drilling facility at position 59°25’24.4” north and 2°47’15.0” east. The drilling programme for well 25/9-4 relates to drilling of a wildcat well in production licence 628. Statoil Petroleum AS is the operator with a 50 per cent ownership interest. The other licensees are Petoro AS with 20 per cent, Repsol Exploration Norge AS med 20 per cent and Petrolia Norway AS med 10 per cent. The area in this licence comprises parts of blocks 25/6, 25/9, 26/4 and 26/7 in the central part of the North Sea. Production licence 628 was awarded on 3 February 2012 (APA 2011). This is the first exploration well to be drilled in the licence, and the second within the licence area. Wildcat well 26/4-1 was drilled with BP as operator in 1987. The permit is contingent upon the operator securing all other permits and consents required by other authorities prior to commencing the drilling activities.

Statoil set to drill Cerberus prospect using 'Ocean Vanguard'

The Norwegian Petroleum Directorate has granted Statoil ASA a drilling permit for wellbore 30/9-25, cf. Section 8 of the Resource Management Regulations. Wellbore 30/9-25 will be drilled from the Ocean Vanguard drilling facility at position 60°20’06.20’’N and 02°47’47.5’’E following completion of the drilling of wildcat well 16/2-18 S for Statoil ASA in production licence 265. The drilling programme for wellbore 30/9-25 concerns the drilling of a wildcat well in production licence 104. Statoil ASA is the operator with an ownership interest of 49.3 per cent. The other licensees are Petoro AS (33.6 per cent), Total E&P Norge AS (14.7 per cent) and ConocoPhillips Skandinavia AS (2.4 per cent). The acreage in this permit consists of the blocks 30/9. Production licence 104 was awarded on 1 March 1985 (the ninth licensing round on the Norwegian shelf). The permit is contingent upon the operator having secured all other permits and consents required by other authorities before the drilling starts.

Statoil to use Diamond Drilling's 'Ocean Vanguard' to spud wildcat well on Cliffhanger North

The Norwegian Petroleum Directorate has granted Statoil Petroleum AS a drilling permit for well 16/2-18 S, cf. Section 8 of the Resource Management Regulations. Well 16/2-18 S will be drilled from the Ocean Vanguard drilling facility at position 58°49’56.6” north and 2°27’51.2” east on the Johan Sverdrup discovery. The drilling program for well 16/2-18 S relates to drilling of a wildcat well in production licence 265. Statoil Petroleum AS is the operator with an ownership interest of 40 per cent. The other licensees are Petoro AS with 30 per cent, Det norske oljeselskap ASA with 20 per cent and Lundin Norway AS with 10 per cent. The area in this licence consists of part of block 16/2 in the central part of the North Sea. Production licence 265 was awarded on 24 April 2001 (North Sea Awards, 2000). This is the 13th well to be drilled within the licence area and the ninth exploration well in PL 265 on Johan Sverdrup. The permit is contingent upon the operator securing all other permits and consents required by other authorities before commencing drilling activities.

Statoil gains approval to drill Johan Sverdrup appraisal well 16/2-17 B

The Norwegian Petroleum Directorate (NPD) has granted Statoil Petroleum AS a drilling permit for well 16/2-17 B, cf. Section 8 of the Resource Management Regulations. Well 16/2-17 B will be drilled from the Ocean Vanguard drilling facility at position 58°48’15.92” north and 2°31’46.03” east on the Johan Sverdrup discovery after completing the drilling of appraisal well 16/1-17 S for Statoil in production licence 265. The drilling program for well 16/2-17 B relates to drilling of an appraisal well in production licence 265. Statoil Petroleum AS is the operator with an ownership interest of 40 per cent. The other licensees are Petoro AS with 30 per cent, Det norske oljeselskap ASA with 20 per cent and Lundin Norway AS with 10 per cent. The area in this licence consists of part of block 16/2 in the central part of the North Sea. Production licence 265 was awarded on 24 April 2001 (North Sea Awards 2000). This is the twelfth well to be drilled in the licence area, and the eighth appraisal well on Johan Sverdrup in PL 265. The permit is contingent upon the operator securing all other permits and consents required by other authorities before commencing drilling activities.

'Ocean Vanguard' completes dry well in PL 104 for Statoil

Statoil, operator of production licence 104, is in the process of completing the drilling of wildcat well 30/9-25. The well has been drilled about six kilometres south of the Oseberg Sør facility, and about 130 kilometres west of Bergen. The primary exploration target for the well was to prove petroleum in Middle Jurassic reservoir rocks (the Tarbert formation). The secondary exploration target was to prove petroleum in Upper Jurassic reservoir rocks (the Draupne and Heather formation). Traces of petroleum were encountered in the Tarbert, Heather and Draupne formations. The well is classified as dry. Extensive data acquisition and sampling have been carried out. This is the 26th exploration well in production licence 104. The licence was awarded in the 9th licensing round in 1985. The well was drilled to a vertical depth of 3220 metres below the sea surface and was terminated in the Ness formation in the Middle Jurassic. Water depth at the site is 100 metres. The well will now be permanently plugged and abandoned. Well 30/9-25 was drilled by the Ocean Vanguard drilling facility, which will now proceed to production licence 272 in the northern North Sea to drill wildcat well 30/11-9 S, where Statoil is the operator.

Statoil hits oil at Cliffhanger North prospect well in Norway

Statoil Petroleum AS, operator for production licence 265, is in the process of completing the drilling of wildcat well 16/2-18 S. The well has been drilled 9 km west of discovery well 16/2-6 and about 3 km west of appraisal well 16/2-14 in the North Sea. The primary exploration target of the well was to prove petroleum in reservoir rocks of Jurassic Age at basement height (Utsirahøgda), and the secondary target was to examine the reservoir properties in weathered/fractured basement. While the well did not encounter reservoir rocks of Jurassic Age, it did encounter a 15 metres oil zone in weathered/fractured granite in the basement. However, no oil-water contact was established. The oil in the basement is not in communication with the Johan Sverdrup discovery. Extensive data acquisition and sampling have been conducted in the upper part of the basement. Mini DST was conducted in weathered/fractured basement and showed that the reservoir had poor production properties. This is the 13th exploration well in production licence 265. The licence was granted in the North Sea Awards 2000. Well 16/2-18 S was drilled to a vertical depth of 1948 metres below the sea surface and was completed in in basement rocks. The sea depth is 112 metres. The well was permanently plugged and abandoned. The well was drilled by the drilling facility Ocean Vanguard, which will now drill wildcat well 30/9-25 in production licence 104 where Statoil Petroleum AS is the operator.

Statoil in North Sea oil and gas discovery

Statoil Petroleum AS, operator of production licence 272, is in the process of completing the drilling of wildcat wells 30/11-9 S and 30/11-9 A. The well was drilled about 13 kilometres southeast of the 30/11-8 S discovery and about 35 km south of the Oseberg Sør installation in the North Sea. The primary exploration target for well 30/11-9 S was to prove petroleum in Upper to Middle Jurassic reservoir rocks (lower part of the Heather and Tarbert formation). The secondary exploration target was to prove petroleum in reservoir rocks in the Middle Jurassic (Ness and Etive formation). The well encountered gas in a net 90-metre column in the lower part of the Heather formation and in the upper to middle part of the Tarbert formation, both with reservoir properties as expected. The Ness formation was aquiferous and the Etive formation, which lies under the Ness formation, was therefore not explored. The primary exploration target for well 30/11-9 A was to prove petroleum in Middle Jurassic reservoir rocks (the Tarbert formation). The secondary exploration target was to prove petroleum in Middle Jurassic reservoir rocks (the Ness and Etive formation). The well encountered oil in a net 40-metre column in the lower part of the Heather formation and the upper part of the Tarbert formation, both with reservoir properties as expected. The Ness formation was aquiferous and the Etive formation, which lies under the Ness formation, was therefore not explored. Preliminary estimates indicate that the size of the discoveries is between 3 and 7 million Sm3 recoverable oil equivalents. The wells were not formation-tested, but extensive data acquisition was carried out. The licensees in production licence 272 will assess the discoveries together with other discoveries in the production licence. Wells 30/11-9 S and 30/11-9 A were drilled to respective vertical depths of 3637 and 3646 metres below the sea surface, and both were terminated in the Ness formation in the Middle Jurassic. The wells are the second and third exploration wells in production licence 272, which was awarded in the 2001 North Sea Awards (NST2001) in 2002. Water depth is 110 metres. The wells will be permanently plugged and abandoned. Wells 30/11-9 S and 30/11-9 A were drilled by the Ocean Vanguard drilling rig, which will now proceed to production licence 628 in the North Sea to drill wildcat well 25/9-4, where Statoil Petroleum AS is the operator.

Statoil to use 'Ocean Vanguard' to drill Johan Sverdrup appraisal

The Norwegian Petroleum Directorate has granted Statoil Petroleum AS a drilling permit for well 16/2-19, cf. Section 8 of the Resource Management Regulations. Well 16/2-19 will be drilled from the Ocean Vanguard drilling facility at position 58°54’12.3” north and 2°29’37.8” east in production licence 265 in the central part of the North Sea. The drilling programme for well 16/2-19 relates to drilling of an appraisal well in production licence 265. Statoil Petroleum AS is the operator with an ownership interest of 40 per cent. The other licensees are Petoro AS with 30 per cent, Det norske oljeselskap ASA with 20 per cent and Lundin Norway AS with 10 per cent. The area in this licence consists of part of block 16/2. The well will be drilled about 2.1 kilometres north to northeast of the 16/2-12 well in the Geitungen segment on Johan Sverdrup. Production licence 265 was awarded on 24 April 2001 (NSA 2000). This is the 14th exploration well to be drilled within the licence area and the 10th exploration well on or near the 16/2-6 Johan Sverdrup oil discovery. The permit is contingent upon the operator securing all other permits and consents required by other authorities prior to commencing drilling activities.

First Syn-rift Discovery Announced in the Deepwater Angola Pre-salt

Cobalt International Energy, Inc. ("Cobalt") (NYSE:CIE) in partnership with the National Concessionaire Sonangol and the Block 21 partners announces the first discovery in the Syn-rift interval in the Bicuar #1A Pre-salt deepwater exploratory well offshore Angola. The well was successfully drilled to a measured depth of 5,739 meters and encountered approximately 56 meters (180 feet) of net pay from multiple Pre-salt intervals. Results of an extensive logging, coring and fluid acquisition program confirmed the existence of both oil and condensate in multiple intervals. No free gas zones or water contacts were observed. All well data was collected via open hole logging technology. This is Sonangol’s and Cobalt’s fourth deepwater Pre-salt discovery offshore Angola. The Bicuar #1A well is of particular significance as it is the first discovery of mobile hydrocarbons that have been tested in the deeper Pre-salt Syn-rift reservoir. After running production casing, the well was temporarily abandoned. Following full processing and integration of all subsurface data collected from the well, the Block 21 partners will evaluate any additional activities necessary to assess Bicuar’s commerciality. The Bicuar #1A well was drilled to total depth in only 59 days, approximately 63 days ahead of schedule. Cobalt, as operator, owns a 40 percent working interest in Block 21. Partners include Sonangol Pesquisa e Produção, S.A., Nazaki Oil and Gaz, and Alper Oil Limitada. “The Syn-rift discovery in Bicuar validates the presence of a viable seal and trap with quality reservoir rocks in the deeper reservoir section,” said James Farnsworth, Cobalt’s Chief Exploration Officer. “These characteristics have been present in similar features in the Campos Basin of Brazil and will be key to expanding the potential of the broader Angola Kwanza Basin Pre-salt. We are also excited with how quickly Bicuar 1A was drilled, while never compromising our commitment to safety and environmental protection. Continued performance of this type would allow us to drill wells at nearly half the cost we had anticipated.”

Spud South Kecapi-1 Exploration Well

Salamander announces the commencement of its exploration drilling programme in the North Kutei basin, East Kalimantan, Indonesia with the spudding of the South Kecapi-1 DIR and DIRA exploration wells in the Bontang PSC. Salamander has a 100% operated interest in the Bontang PSC. The South Kecapi-1 DIR well will be drilled to a depth of approximately 2,450 metres total vertical depth sub sea (‘TVDSS’). On completion it will then be sidetracked approximately 1.5 km to the west with the South Kecapi-1 DIRA being drilled to a depth of approximately 2,100 metres TVDSS. The South Kecapi-1 DIR/DIRA wells are targeting gas and oil pay in a series of stacked Pliocene – Upper Miocene sandstone reservoirs. The combined mean pre-drill estimate of prospective recoverable resources is approximately 275 Bcf and 20 MMbo. The wells will be drilled by the Ocean General semi-submersible rig in a water depth of 388 metres. On completion of the South Kecapi-1 DIR/DIRA wells the rig will move to the South East Sangatta PSC to test the North Kendang prospect.

South Kecapi-1 Oil and Gas Discovery

Salamander Energy plc announces that the South Kecapi-1 DIR/ST exploration well (“SK-1”) in the Bontang PSC has been completed as an oil and gas discovery. South Kecapi is the first well in Salamander’s multi-well programme in the North Kutei basin. SK-1 discovered a combined 40 m of net oil and gas pay in high quality stacked Pliocene channel sandstones. A drill stem test (“DST”) was conducted within one of the well’s primary targets; a well-developed, Pliocene-age channel sandstone, which flowed light oil at a rate of c. 6,000 barrels of oil per day (constrained by testing equipment) and 8 MMscf per day of gas. The well is being plugged and abandoned as an oil and gas discovery. SK-1 was drilled using the Ocean General semi-submersible rig, reaching a total depth (“TD”) of 2,102 m true vertical depth sub-sea (“TVDSS”). Higher pressures than anticipated and numerous gas kicks were encountered throughout the early Pliocene section which is believed to be indicative of a hydrocarbon-charging system that is extremely active.

Spud of North Kendang-1 Exploration Well

Salamander announces the spud of the North Kendang-1 exploration well in the South East Sangatta PSC. Salamander has a 75% operated interest in the South East Sangatta PSC. The North Kendang-1 well will be drilled to a depth of approximately 2,600 m total vertical depth sub-sea ('TVDSS'). The North Kendang-1 well is targeting gas and oil pay in a series of stacked Pliocene – Upper Miocene sandstone reservoirs. The combined mean pre-drill estimate of prospective recoverable resources is approximately 770 Bcf and 91 MMbo. The well will be drilled by the Ocean General semi-submersible rig in a water depth of 465 metres. On completion of the North Kendang well the rig will return to the Bontang PSC to drill the Bedug prospect. The Bedug location is 4 km east and 500 m up-dip of the recent South Kecapi oil and gas discovery.

North Kendang-1 Exploration Well Suspended

Salamander Energy plc announces that the North Kendang-1 exploration well ("NK-1") in its operated South East Sangatta PSC has been suspended as a potential gas discovery. The rig is now being mobilised to the Bontang PSC to drill the Bedug-1 exploration well, the third well in Salamander’s multi-well programme in the North Kutei basin. The Ocean General semi-submersible rig spudded the NK-1 well on the 10th February 2013; to date the well has been drilled to 2,535 metres true vertical depth subsea ("TVDSS"). The well drilled through a predominantly shale-prone section throughout the Pliocene. On reaching what is prognosed to be the first Upper Miocene reservoir target at 2,533 metres TVDSS, the well took a significant kick from an influx of high pressure hydrocarbon gas into the well bore at a wellhead pressure of circa 4,000 psi. As a result of encountering high pressure gas, the well experienced operational challenges ultimately leading to its suspension before evaluating the reservoir section. The gas has been sampled and is being analysed with initial results pointing to a wet gas, while pressure data indicate a potentially significant column height. Salamander is reviewing the option to return to NK-1 as part of the current drilling campaign, in order to drill ahead and evaluate the Upper Miocene section. NK-1 is the second well in Salamander’s multi-well programme in the North Kutei basin and follows on from the oil and gas discovery at the South Kecapi-1 well announced in February.

Spud of Bedug-1 Exploration Well

Salamander announces the spud of the Bedug-1 exploration well in the Bontang PSC. Salamander has a 100% operated interest in the Bontang PSC. The Bedug-1 well will be drilled to a depth of approximately 2,050 m total vertical depth sub-sea ('TVDSS') and is targeting gas and oil pay in both Upper Miocene and Lower Pliocene channel sands on the crest of the Bedug structure. The well is located to the East of the Angklung-1 gas discovery and 4 km East and 500m up-dip of the recent South Kecapi-1 ST oil and gas discovery. Bedug-1 will be drilled by the Ocean General semi-submersible rig in a water depth of 460 metres.

Bedug-1 Gas Discovery

Salamander announces that the Bedug-1 exploration well in the Bontang PSC has been concluded as a gas discovery[i]. Bedug-1 was drilled using the Ocean General semi-submersible rig, the well reaching a total depth (“TD”) of 1,693 m true vertical depth sub-sea (“TVDSS”). The well encountered a gas-bearing sandstone interval of 5m thickness in the Lower Pliocene BT40 primary target as confirmed by log data. Within the BT45 primary target, the interval of well-developed sandstones from which oil was tested at South Kecapi were found to have thinned out on the crest of the Bedug structure. However, with these thinner sandstones containing strong oil shows, the potential for a commercial oil discovery remains and further investigation of the up-dip extent of the South Kecapi oil discovery is warranted. After deepening the well into the top of the BT50 target interval, Bedug-1 experienced a high pressure kick that came from a severely over-pressured 5.5m thick sandstone. Both log and pressure data have demonstrated this reservoir to be gas bearing, with log data from additional underlying thinner bedded sandstones also interpreted to be hydrocarbon-bearing. However, due to increasing formation pressures the well had to be suspended before fully evaluating the BT50 interval and without reaching the BT65 and BT80 targets. Based on the pressure profile in the well it was concluded that the deeper objectives could not be drilled and evaluated safely with the equipment available on the rig. This also precluded the drilling of a side-track down-dip to further evaluate the oil bearing BT45 interval. Completion of the Bedug-1 well concludes the current phase of Salamander’s multi-well programme in the North Kutei basin. This campaign has yielded the South Kecapi oil and gas discovery; the Bedug gas discovery; and wet gas at North Kendang which experienced a high pressure kick. Work is on-going to evaluate the commercial potential of the discoveries made to date, and Salamander intends to re-drill the North Kendang well (which, as announced on 22 May, is subject to an insurance claim). In parallel, new well data is to be integrated into a technical assessment of the Bontang and Southeast Sangatta PSCs, which both retain a significant undrilled inventory of prospects.

'Ocean Confidence' spuds the bamboo prospect in Cameroon

Sterling Energy Plc, the AIM listed oil & gas exploration and production company (AIM: SEY), is pleased to provide the following update for the Ntem Concession, offshore Cameroon. The operator, Murphy Cameroon Ntem Oil Co. Ltd (“Murphy”), has confirmed that drilling operations have commenced on the Bamboo-1 well using the Ocean Confidence, a fifth generation semi-submersible drilling rig. The well, located approximately 56 kilometres from the coast of Cameroon, has an estimated target depth of 4200 metres true vertical depth sub-sea (TVDSS) and will be drilled in a water depth of approximately 1600 metres. Drilling operations are anticipated to take approximately 60-70 days. Sterling Cameroon Limited (“Sterling”) has a 50% non-operated working interest in the Ntem Concession. Murphy will pay Sterling’s share of the costs for the drilling of the Bamboo-1 well. The Bamboo prospect is a basin floor fan target within the highly prospective Upper Cretaceous play. A series of stacked fan targets have been identified and will be intersected by the Bamboo-1 well with the primary objective estimated to have a mean un-risked, gross prospective resource of 422 million barrels of oil and 170 billion cubic feet of gas, a total of some 450 million barrels of oil equivalent.

GEITUNGEN EXPLORATION WELL HAS SPUDDED, NORWAY

Lundin Petroleum AB's (Lundin Petroleum) wholly owned subsidiary Lundin Norway AS (Lundin Norway) is pleased to announce that Statoil Petroleum AS (Statoil) has commenced the drilling of exploration well 16/2-12 targeting the Geitungen structure. The well is located in licence PL265, between the Johan Sverdrup discovery and the 16/2-9S Aldous Major North discovery in the Norwegian North Sea. The main objective of the well 16/2-12 is to prove the presence of oil bearing Jurassic sandstones similar to the Johan Sverdrup discovery. The planned total depth is 2,060 metres below mean sea level. The well will be drilled with the drilling rig Ocean Vanguard and the duration is expected to be 40 days. Lundin Norway holds 10 percent interest in PL265. Partners are Statoil (operator) with 40 percent interest, Petoro (30 percent) and Det norske oljeselskap ASA (20 percent).

EXPLORATION WELL 16/2-18S IN PL265 HAS COMMENCED

Lundin Petroleum AB (Lundin Petroleum) is pleased to announce that drilling of exploration well 16/2-18S in PL265 west of Johan Sverdrup has commenced. The well will target the Cliffhanger North prospect, located in the North Sea sector of the Norwegian Continental Shelf (NCS). The well is located in PL265 west of the bounding fault of the Johan Sverdrup discovery and north of the previously tested Cliffhanger South segment in PL265. The main objective of the well is to investigate the presence of Jurassic reservoir and the quality of fractured and weathered basement approximately 3.2 km south-west of well 16/2-14 (Espeværhøgda) and 4.9 km north-west of 16/2-17B (Cliffhanger South). The planned total depth is approximately 1,970 metres below mean sea level and the well will be drilled using the semi-submersible rig Ocean Vanguard. Drilling is expected to take approximately 40 days. Statoil Petroleum is the operator of PL265 with 40 percent interest. Partners are Petoro (30%), det norske oljeselskap (20%), and Lundin Norway (10%).

BP adds two drilling rigs in the deepwater Gulf of Mexico

BP today announced it has added two drilling rigs to the deepwater Gulf of Mexico, bringing its fleet to a company record nine rigs as it continues to develop its strong portfolio of assets in the key U.S. offshore basin. One of the rigs is a new ultra-deepwater drillship known as the West Auriga that is under long-term contract to BP from Seadrill Ltd, a leading international offshore drilling contractor. The vessel, capable of operating in up to 12,000 feet of water, has begun development drilling work at BP’s Thunder Horse field. The other is a reconstructed drilling rig on BP’s Mad Dog oil and gas production platform. It replaces the original rig on the platform that was badly damaged and left inoperable by Hurricane Ike in 2008. With the new, state-of-the art rig, the platform recently resumed development drilling at the massive Mad Dog field complex. “The addition of these two new rigs reflects the vital importance of the deepwater Gulf of Mexico to the future of BP,” said Richard Morrison, Regional President of BP’s Gulf of Mexico business. “It also clearly demonstrates BP’s commitment to the American economy and U.S. energy security.” BP currently anticipates investing on average at least $4 billion in the Gulf of Mexico each year for the next decade. The company plans to concentrate future activity and investment in the Gulf on growth opportunities around its four major operated production hubs – Thunder Horse, Na Kika, Atlantis and Mad Dog – and three non-operated production hubs – Mars, Ursa and Great White – in the deepwater, as well as on significant exploration and appraisal opportunities in the Paleogene and elsewhere. BP is also advancing a strong pipeline of future development projects in the deepwater Gulf. In April, the company started up the Atlantis North expansion, the first of seven additional wells to be tied back to the existing Atlantis platform. At Na Kika, another field expansion is planned, following the successful startup last year of the Galapagos development, a subsea tieback to the Na Kika production facility. BP is also pursuing plans for a second phase of the Mad Dog field.

Statoil drills dry well using 'Ocean Vanguard' semisub on PL 628 in Norway

Statoil Petroleum AS, operator of production licence 628, is in the process of concluding the drilling of wildcat well 25/9-4. The well was drilled about 25 kilometres east of the Jotun field in the central part of the North Sea, and about 138 kilometres west of Haugesund. The objective of the well was to prove petroleum in Middle Jurassic reservoir rocks (the Hugin and Sleipner formations). The well encountered an approx. 19-metre thick Hugin formation, of which approx. 15 metres had relatively good reservoir properties, and a Sleipner formation of about 31 metres with relatively poor reservoir properties. The well is dry. Data acquisition and sampling have been carried out. The well is the first exploration well in production licence 628, which was awarded in APA 2011. The well was drilled to a vertical depth of 2397 metres below sea level, and was terminated in the Sleipner formation in the Middle Jurassic. The water depth is 116 metres. The well will be permanently plugged and abandoned. Well 25/9-4 was drilled by the Ocean Vanguard drilling facility, which will now proceed to the 16/2-6 Johan Sverdrup oil discovery in production licence 265 in the central part of the North Sea to drill appraisal well 16/2-19, where Statoil is the operator.

'Ocean General' drills duster in Vietnam

Pan Pacific Petroleum (Vietnam) Pty Ltd has been advised by the Operator of the Block 07/03 Production Sharing Contract, Premier Oil Vietnam South, that 07/03-CD-1X, the Silver Sillago exploration well being drilled by 'Ocean General' drilling rig has reached a measured depth of 3537m BRT (below rotary table) without encountering oil or gas and TD (total depth) has been declared at this depth. The well, which evaluated a tilted fault trap similar to the Cá R?ng Ð? (CRD) structure, encountered sandstones in the main objective sequence as prognosed, but no hydrocarbons were present. Preparations will now be made to plug and abandoned the well as planned.

'Ocean Vanguard' spuds new Johan Sverdrup appraisal well

Lundin Petroleum AB (Lundin Petroleum), through its wholly owned subsidiary Lundin Norway AS (Lundin Norway), is pleased to announce that the appraisal well 16/2-19 has commenced in the Statoil-operated PL265 on the Johan Sverdrup discovery, located in the North Sea sector of the Norwegian Continental Shelf (NCS). The well is located in PL265 in the northern part of the Johan Sverdrup discovery. The main objective of the well is to investigate the Jurassic presence, reservoir thickness, quality and distribution on the north-eastern edge of the discovery 2.2 kilometres north of appraisal well 16/2-12 and 3.2 kilometres south-east of appraisal well16/2-9s. The planned total depth is approximately 1,990 metres below mean sea level and the well will be drilled by the semi-submersible drilling rig ‘Ocean Vanguard’. The drilling operation is expected to take approximately 45 days. Statoil Petroleum is the operator of PL265 with 40 percent interest. The partners are Petoro (30%), Det norske oljeselskap (20%), and Lundin Norway (10%).

Statoil receives approval to use 'Ocean Vanguard' to drill pilot hole on Johan Sverdrup

Statoil has received consent to use Diamond Offshore’s ‘Ocean Vanguard’ semisub for drilling a pilot hole at 16/2-U-7 in the Johan Sverdrup field. Johan Sverdrup is in the North Sea, about 36 km south of the Grane field, 56 km north-east of the Sleipner field (Sleipner Øst) and about 144 km west of Utsira municipality in Rogaland county. The rig's planned position during drilling of well 16/2-U-7 is 58.50098” N 02.33167” E, with water depth at the site approximately 115 metres. Drilling is planned to start during March 2014 with an expected duration of 7 days. Ocean Vanguard is operated by Diamond Offshore with operations offices in Stavanger and technical and operational support from the company's office in Aberdeen.The facility is registered in the Marshall Islands with Det Norske Veritas as the classification society. Ocean Vanguard was built in 1982 and received Acknowledgement of Compliance (AoC) from the PSA in July 2004.

Seadrill agrees to sell 'West Auriga' drillship to Seadrill Partners LLC

Seadrill Limited (Seadrill) announced today that it has entered into an agreement with Seadrill Partners LLC pursuant to which Seadrill will sell to Seadrill Capricorn Holdings LLC, Seadrill Partners' 51% owned subsidiary ("Capricorn Holdings"), all of the ownership interests in the entities that own and operate the drillship, the ‘West Auriga’. Seadrill will own the remaining 49% interest in Capricorn Holdings. The acquisition of the ‘West Auriga’ drillship, which is expected to close within 30 days, will be accomplished through a series of purchases, contributions and assumptions of debt and is subject to the satisfaction of certain closing conditions.The ‘West Auriga’ is a 6th generation, dynamically positioned drillship delivered from the Samsung shipyard to its current customer, BP, in October 2013. The drillship is expected to carry out operations in the U.S. Gulf of Mexico until the end of its contract in October 2020 at a dayrate of US$565,000 per day, excluding approximately $37,500 per day payable by the customer over the term of the contract relating to mobilization, variation orders and other special and standby rates. The implied sale price of the drillship is US$1.24 billion, less US$443.1 million outstanding under the facility related to the ‘West Auriga’. In addition, Capricorn Holdings intends to issue a US$100 million zero coupon limited recourse discount note to the Company that matures in September 2015. Upon maturity of such note, Seadrill Capricorn Holdings LLC will repay US$103.7 million to the Seadrill. Based on the Seadrill Partners' 51% ownership of Seadrill Capricorn Holdings, its portion of the net purchase price after debt will be US$355.4 million.

'Ocean General' completes Vietnam drilling

Pan Pacific Petroleum (Vietnam) Pty Ltd has been advised by the Operator of the Block 07/03 Production Sharing Contract that the plugging and abandonment of the 07/03-CD- 1X exploration well drilled using the 'Ocean General' drilling rig has been completed and the rig has been released.

QGEP announces result of Atlanta well test in Brazil

QGEP Participações S.A. ("Company") announced on February 5th the conclusion of the drilling and testing of the first horizontal well (7-ATL-2HP-RJS) of the Early Production System (EPS) of the Atlanta Field. Located in Block BS-4, Atlanta is a post-salt oil field 185 km off the coast of the city of Rio de Janeiro in the Santos Basin in water depth of approximately 1,500 meters. The well was drilled to a horizontal section length of 750m and a diameter of 9.5 inches. It encountered a very high porosity sand reservoir, with average porosity of 38%. The horizontal part of the well was then cased with screens and packed with gravel, which will maximize oil productivity while preventing the movement of reservoir sand into the borehole and production equipment. A Drill Stem Test (DST) was then successfully performed with two different flow periods, the first one more restricted in order to collect bottom hole samples of oil and gas, and the second flow with less restrictions. The two flow periods produced flow rates of 1,250 barrels of oil per day (bopd) and over 5,000 bopd, respectively. These flow rates were subject to considerable constraints associated with the DST set up and limited capacity of the surface facilities, such as storage, short term flaring limitations and low capacity electrical submersible pump (ESP). Furthermore, the test confirmed a Productivity Index (PI) higher than was estimated during reservoir simulation studies. These excellent results obtained with the drilling, completion and DST indicated that production rates of this well, once brought onstream under normal operation conditions and equipped with a full capacity ESP, will be closer to the high end of estimated 6,000-12,000 bopd range. The results of the tests also confirmed the expected characteristics of the reservoir and the oil, with high permeability and 14º API. As laid out in the development schedule for Atlanta, the Consortium will initiate immediately the drilling of the second horizontal well of the EPS. In the coming days, the Company will launch the bidding process for FPSOs of different capacities, covering both potential scenarios: continuing with the EPS or proceeding directly to Full Development. The decision on which FPSO will be hired will be based on the results of the tender and the impact on the economics of the project. In both scenarios, first oil at Atlanta is expected in late 2015 or early 2016. "Production test results came in at the high end of our expected range, confirming the potential of the Atlanta Field," said Danilo Oliveira, QGEP’s Production Director. "Our experienced team used cutting edge techniques and equipment, to carry out a highly successful test, demonstrating the technical know-how that we have built within QGEP. We will continue to apply this know-how as we develop the Field." Queiroz Galvão Exploração e Produção S.A. is the operator of the Block with a 30% ownership; other consortium members include OGX Petróleo e Gás S.A. (40%) and Barra Energia do Brasil Petróleo e Gás Ltda. (30%).

BP Contracts 'Ocean Victory' for Trinidad drilling

BP has chartered Diamond Offshore Drilling’s (Diamond) ‘Ocean Victory’ semisub rig for drilling off Trinidad. The ‘Ocean Victory’ will begin its two-year firm contract with BP in April 2015, working at a dayrate of US$398,000, with an additional one-year extension option. The unit is currently ready stacked in the USA and is being actively marketed by Diamond, following its completion of a contract with Stone Energy in February 2014. BP currently has two rigs under contract in Trinidad, the ‘Rowan EXL-2’ jackup which has been drilling on the Savonette Field and SapuraKencana Drilling’s ‘SKD Jaya’ semi-tender rig.

Statoil receives consent to drill with the 'Ocean Vanguard'

Statoil has received consent to drill exploration well 25/8-18 S in production licence 169 in the North Sea. The well is to be drilled by the ‘Ocean Vanguard’ mobile drilling facility. The earliest start-up is April 2014 with a drilling duration of approximately 40 days, depending on whether a discovery is made. Water depth at the site is 129 metres. The well is in the North Sea, 12 km north-east of the Grane field and about 164 km from the nearest land, which is Utsira.

Statoil given green light for drilling appraisal on Johan Sverdrup field

The Norwegian Petroleum Directorate has granted Statoil Petroleum AS a drilling permit for well 16/2-19 A, cf. Section 8 of the Resource Management Regulations. Well 16/2-19 A will be drilled from the Ocean Vanguard drilling facility in position 58°54’12.3” north and 2°29’37.7” east in the central North Sea. The drilling program for well 16/2-19 A concerns the drilling of an appraisal well in production licence 265. Statoil Petroleum AS is the operator with an ownership interest of 40 per cent. The other licensees are Petoro AS with 30 per cent, Det norske oljeselskap ASA with 20 per cent and Lundin Norway AS with 10 per cent. The area in this licence consists of part of block 16/2. The well will be drilled 2.1 kilometres north to northeast of well 16/2-12 in the Geitungen segment in Johan Sverdrup. Production licence 265 was awarded on 24 April 2001 (North Sea Awards 2000). This is the 15th exploration well in the licence area and the 11th exploration well in or near the 16/2-6 Johan Sverdrup oil discovery in licence 265. The permit is contingent upon the operator having secured all other permits and consents required by other authorities before the drilling starts.

Drilling update for the Bamboo-1 well

Sterling Energy Plc, provides the following update for the Ntem Concession, offshore Cameroon. Bamboo-1, the first exploration well to be drilled on the Ntem Concession commenced operations on 9 February 2014 and Murphy Cameroon Ntem Oil Co. Ltd (“Murphy”), the operator with 50% working interest, has confirmed that the well, located in 1,600 m of water, has reached a total depth of 4,747 m and evaluation operations have been conducted. The well was designed to target a series of stacked Cretaceous aged, basin floor submarine fans, the main target being the Bamboo fan. The well encountered all pre-drill targets, however analysis of the data indicate that no commercial hydrocarbons were found and the well will now be plugged and abandoned. The data from the Bamboo-1 well will be analysed in detail and the results used to update the assessment of the remaining prospectivity of this large deep-water block that covers some 2,319 km2. The current phase of the Ntem concession runs to April 2015, with the option to extend the exploration term by a further two years. Sterling Cameroon Limited (“Sterling”) has a 50% non-operated working interest in the Ntem Concession. Murphy, under the terms of the farm-in agreement signed in 2011, will pay Sterling’s share of the costs for the drilling of the Bamboo-1 well.

Statoil granted drilling permit for well 25/8-18S

The Norwegian Petroleum Directorate (NPD) has granted Statoil Petroleum AS a drilling permit for well 25/8-18 S, cf. Section 8 of the Resource Management Regulations. Well 25/8-18 S will be drilled from the Ocean Vanguard drilling facility at position 59°15’1.12” north and 2°37’0.59” east of the Grane field in the central part of the North Sea. The drilling programme for well 25/8-18 S relates to the drilling of an appraisal well in production licence 169. Statoil Petroleum AS is the operator with a 57 per cent ownership interest. The other licensees are Petoro AS with 30 per cent and ExxonMobil E&P Norway AS with 13 per cent. The area in this licence consists of parts of blocks 25/8 and 25/11. The well will be drilled 0.7 kilometres southeast of wildcat well 25/8-4. Production licence 169 was awarded on 1 March 1991 (supplement to the 13th Round). This is the 14th exploration well drilled within PL169. The permit is contingent upon the licensee securing all other permits and consents required by other authorities before the drilling activity commences.

Diamond secures new contract for 'Ocean Quest'

Diamond Offshore’s (Diamond) midwater semisub the ‘Ocean Quest’ has been contracted for a 10-well contract in Vietnam with Petrovietnam Exploration & Production (PVEP). The unit is expected to begin work in late April 2014, garnering a dayrate of US$198,900 for the contract, which runs into December 2014. The ‘Ocean Quest’ has been stacked in Malaysia since the end of November 2013, following on from the termination of its previous drilling contract with OGX in Brazil. Diamond also announced the signing of a single well contract for the ‘Ocean Monarch’ in Indonesia with Total, alongside two 1-well extensions for the ‘Ocean Saratoga’ and ‘Ocean Princess’.

Premier strikes oil at Kuda Laut

Premier Oil (Premier) today announced that company’s Kuda Laut-1 exploration well in Tuna PSC (Premier operator, 65%) offshore Indonesia has discovered 183 feet of net oil-bearing reservoir and 327 feet of net gas-bearing reservoir. Oil and gas samples have been recovered to surface. Following completion of evaluation operations, the well will be side-tracked to drill the Singa Laut prospect in the adjacent fault block. The results of this side-track are expected in late May and will be incorporated with the results from Kuda Laut to assess the extent of discovered resources at that time. Premier spudded the Kuda Laut-1 well using Diamond Offshore’s ‘Ocean General’ semisub, which will now drill the well at the Singa Laut prospect. Separately, drilling continues at the Ratu Gajah-1 exploration well in the Natuna Sea Block A PSC (Premier operator, 28.67%) with results expected in May.

Det Norske releases positive results from Johan Sverdrup appraisal well

Det norske oljeselskap ASA is as partner in production licence 265, in the process of completing drilling of appraisal wells 16/2-19 and 16/2-19A in the Johan Sverdrup oil discovery. The objective of the wells was to examine the extent and properties of the reservoir rocks in the northernmost part of the Johan Sverdrup discovery. Well 16/2-19 encountered six metres gross oil-bearing sandstone of medium to good quality assumed to constitute part of the Statfjord Group. The well was drilled to a vertical depth of 2,024 metres and was terminated in basement rocks. The license partners decided to drill a 1,000 metre sidetrack well (16/2-19A) towards the southwest in order to clarify the northern extent of the sandstones of the Draupne Formation, constituting the main reservoir on Johan Sverdrup. Here, a 12 metre gross oil-bearing sandstone/siltstone interval of medium good reservoir development was encountered in the Draupne formation. The well was drilled to a vertical depth of 1,971 metres and was terminated in basement rocks. The well results will be incorporated into the Johan Sverdrup field development work. The licensees in production licence 265 are Statoil (operator, 40 percent), Petoro AS (30 percent), Det norske oljeselskap ASA (20 percent), Lundin Norway AS (10 percent).

Johan Sverdrup appraisal drilling close to completion

Statoil Petroleum AS, operator of production licence 265, is currently completing the drilling of appraisal wells 16/2-19 and 16/2-19 A on the 16/2-6 Johan Sverdrup oil discovery in the central part of the North Sea. The discovery was proven in production licence 501 in the summer of 2010. Appraisal wells 16/2-19 and 16/2-19 A were drilled 2.1 kilometres north of well 16/2-12 in the northwestern part of Johan Sverdrup. The objective of well 16/2-19 was to investigate the extent, thickness and properties of Jurassic and Upper Triassic reservoir rocks, as well as the oil/water contact in the Geitungen segment on Johan Sverdrup. The well encountered a six-metre oil column in assumed Lower Jurassic to Upper Triassic sandstone with good reservoir properties. Twelve metres of silty sandstone without reservoir qualities were also encountered. Oil/water contact came in about as expected. The objective of well 16/2-19 A was to investigate Upper Jurassic reservoir rocks and reduce the uncertainty of the resource estimate for this segment by placing the well higher in the structure, 1 kilometre southwest of well 16/2-19. The well encountered a 13-metre gross oil column in Upper Jurassic reservoir rocks, three metres of which were in sandstone with very good reservoir quality. The oil/water contact was not encountered. Comprehensive data acquisition and sampling have been carried out. Multiple small-scale formation tests were carried out and the best, carried out in Upper Jurassic sandstone in 16/2-19 A, showed good flow properties. Both wells contained mobile oil in assumed Lower Triassic/Permian carbonate rocks with poor flow properties. The results from the wells will be incorporated in the work with the Johan Sverdrup field development. These are the 14th and 15th exploration wells in production licence 265, and the 10th and 11th drilled on or close to Johan Sverdrup in licence 265. The licence was awarded in 2001 (NSA 2000). Wells 16/2-19 and 16/2-19 A were drilled to vertical depths of 2024 and 1971 metres, respectively, below the sea surface, the latter with a measured depth of 2348 metres. Both wells were terminated in bedrock. Water depth at the site is 116 metres. The wells will be permanently plugged and abandoned. The wells were drilled by the Ocean Vanguard drilling facility, which will now drill well 16/2-U-7 in the same production licence, where Statoil Petroleum AS is the operator.

Fairmount Alpine Towed Rig Ocean Whittington to Gulf

Fairmount Marine’s tug Fairmount Alpine has towed the rig Ocean Whittington from offshore Belem, Brazil, to offshore Galveston, US. For this job Fairmount Marine was contracted by the rigs owner, Diamond Offshore Drilling, for which Fairmount has performed a series of towages in recent years. Ocean Whittington is a semi-submersible drilling rig for deep water operations. The rig has worked offshore the northern Brazilian coast since 2009. To tow the rig to the Gulf Fairmount Marine mobilized tug Fairmount Alpine, which was in South Africa after performing escort services for bulk carrier Vale Beijing. When Fairmount Alpine arrived at the location of the Ocean Whittington offshore Belem, she was requested to perform heading control duties to the rig prior the start of the towage. Upon readiness of the Ocean Whittington the convoy departed for the journey towards offshore Galveston. The tow over a distance of 3,625 miles was performed by the Fairmount Alpine with an average speed of 7.8 knots.

Ocean Patriot rig has commenced mobilisation to the Galoc oil field for the Phase II development

Nido Petroleum Limited (‘ASX:NDO’ or ‘the Company’) is pleased to advise that the Operator of SC 14C1 (Galoc Production Company W.L.L, a wholly owned subsidiary of Otto Energy Ltd, ASX: OEL) has informed the Company that the Ocean Patriot rig has commenced mobilisation from Singapore and is currently under tow with the tug Pacific Battler. The rig is expected to arrive at the field location in early June. Phil Byrne, Managing Director commented, “The departure from Singapore of the ‘Ocean Patriot’ rig to the Galoc oil field in SC 14C1 to commence the Phase II development project is a major milestone for this project and for the Company. I am very pleased to see the Phase II project enter the operational phase of its life cycle which will result in the drilling of two new additional horizontal development wells into the field. Galoc is the company’s cornerstone asset, and the Phase II development project is strongly aligned with the company’s strategy of focusing on building its reserves and production base and I look forward to the commencement of Phase II production in the fourth quarter this year”.

Galoc Phase II commences drilling

Otto Energy Limited (“Otto”) (ASX:OEL), as operator of the producing Galoc oilfield joint venture offshore the Philippines, provides the following update on the Galoc-5H and Galoc-6H drilling campaign in SC14C, part of the Galoc Phase II development approved in 2012. Otto is pleased to advise that at 1300 hours on 4 June 2013, the Ocean Patriot semi-submersible drilling rig commenced drilling the Galoc-5H and 6H development wells. Drilling is expected to take approximately 115 days including the flowing of the wells for clean-up. The forward plan is to drill the 36" (914 mm) hole to 392 metres and install the 30" conductor prior to drilling the 171/2" (444 mm) hole to 950 meters.

Successful conclusion of the Galoc-5H and Galoc 6-H drilling phase

Otto Energy Limited (“Otto”) (ASX:OEL), as operator of the producing Galoc oilfield joint venture offshore the Philippines, provides the following update on the Galoc-5H and Galoc-6H drilling campaign in SC14C, part of the Galoc Phase II development project approved in 2012. During the period from 0600 hours (AWST) on 11 September 2013 to 0600 hours (AWST) on 18 September 2013, drilled the G-5H well 8½” hole horizontally to a final total depth of 4,497 metres and commenced running the completion liner and assembly. This marks the successful conclusion of the major drilling activities of the Phase II project with remaining drilling rig based operations being for well completions and installation of subsea trees. The G-5H and G-6H wells have been drilled to a combined total of 3,177m through horizontal reservoir section within which a significant 1,645m of net oil pay has been encountered. Data recorded during drilling shows high reservoir permeability in both wells which suggests good production deliverability will be achieved. Well deliverability will be confirmed when the wells are flowed to surface in the coming weeks for the well clean-up operations. Planned upgrades to the FPSO Rubicon Intrepid, which will process the additional Phase II production, have also been successfully completed this week according to schedule. Delivery of subsea equipment and mobilisation of installation vessels are all on schedule to allow final tie-in work to be completed consistent with planned first oil from the G-5H and G-6H wells in November 2013.

Galoc-5H well successfully tested

During the period from 0600 hours (AWST) on 9th October 2013 to 0600 hours (AWST) on 16th October 2013, the subsea tree installation, well clean-up and flow test operations were successfully completed. The Galoc-5H well has successfully flowed oil to surface from the Galoc Clastic Unit (GCU) with the well flowing at a rate of 6,300 barrels per day (“bopd”) on a 64/64” choke setting with a flowing tubing pressure (“FTP”) of ~830 psi. Operations were conducted via the drilling rig “Ocean Patriot” and oil was flared at the location. The initial oil deliverability potential from Galoc-5H under normal field operating conditions is expected to be between 8,000 and 12,000 bopd with final operating rates to be set according to optimum facility and reservoir management constraints. The results from this flow test are in line with the forecast overall field production rate of 12,000 bopd to be delivered once Phase II is brought in to production in late November 2013. The forward plan is to move to Galoc-6H, install the subsea tree and commence clean-up and flow testing prior to releasing the rig.

Galoc Phase II rig demobilisation and commencement of offshore subsea installation

During the period from 0600 hours (AWST) on 21st October 2013 to 0600 hours (AWST) on 4th November 2013, the Galoc-6H well was secured and the drilling rig Ocean Patriot pulled anchors, demobilised to Singapore and is now off-hire. This marks the successful completion of all drilling activities of the Phase II development. The construction vessel arrived in the Galoc field area on 1st November 2013 and has commenced installation activities to connect the Galoc-5H and Galoc-6H wells into the FPSO Rubicon Intrepid. It is expected that these offshore installation activities will be completed before the end of November 2013 resulting in the first oil being produced from the FPSO Rubicon Intrepid. A further update will be provided upon the completion of the installation and commissioning activities in the field.

Keppel FELS adds US$300 million to order book with new contracts

Keppel FELS Ltd (Keppel FELS), a wholly-owned subsidiary of Keppel Offshore & Marine (Keppel O&M), has secured a contract to upgrade the semisubmersible Ocean Patriot for Diamond Offshore. Keppel FELS will undertake the fabrication and installation of four 24-foot diameter stability columns and new lower hull inboard pontoon sponsons as well as upgrade the living quarters. Work on Ocean Patriot is expected to commence in June 2013 with redelivery at end 2013. When completed, the semisubmersible will be chartered to Shell for work at the Fram field in the UK North Sea.

Rig charter awarded

A one-year charter worth some NOK 350 million for the Ocean Vanguard drilling rig has been placed by Statoil with US contractor Diamond Offshore. “It will primarily be used for exploration in the North Sea and the Halten Bank area of the Norwegian Sea,” says Tor Gunnar Gloppen, rig deployment manager in Statoil’s rig management unit. “This charter involves a formalised drilling rig collaboration between four operator companies.” Ocean Vanguard is currently drilling for Eni off mid-Norway, with this assignment scheduled for completion by the end of the year. The rig is then due to make a brief yard stop before being ready to start drilling for Statoil in the New Year. Its first assignment will be to drill two exploration wells in the Tampen area of the North Sea, on the Gullfaks and Vigdis fields respectively. Registered in the Marshall Islands, Ocean Vanguard was built at Brevik in Norway in 1982 and is a third-generation rig. It has been designed to drill to a maximum depth of 7,600 metres (25,000 feet) in waters up to 450 metres (1,500 feet) deep. According to Mr Gloppen, Ocean Vanguard is the only Diamond Offshore rig operating off Norway at the moment.

Oil strike near Vigdis

An oil discovery has been made by Statoil in the M5 structure in the Tampen area of the North Sea, which will be produced through the installations on the group’s Vigdis field just to the north. Exploration well 34/7-D-4 H was drilled to a total measured depth of 4,572 metres from Ocean Vanguard, with oil proven in Brent Group rocks dating from the Jurassic. To optimise production from the area, a sidetrack was immediately drilled from this well as 34/7-D-4 AH to a total measured depth of 4,400 metres. Plans call for the well to be completed for production by the Borgland Dolphin rig during October before it is brought on stream. “It’s too early to say anything about the size of this discovery,” says Elin Loktu Rosnes, manager for the Tordis/Vigdis subsurface department. “But even minor volumes will be economic to produce since we already have established infrastructure in this area.” The M5 structure lies in production licence 089, where the water depth is around 251 metres. Vigdis has been developed with subsea templates tied back to Statoil’s Snorre A tension leg platform, with wellstream transfer in two pipelines. Operator Statoil has 28.22 per cent of PL 089. Its partners are Petoro with 30 per cent, Hydro 13.28 per cent, ExxonMobil 10.5 per cent, Idemitsu Petroleum Norge 9.6 per cent, Total 5.6 per cent and RWE-Dea 2.8 per cent.

Rig contract with Diamond extended

Statoil is extending the charter contract with Diamond Offshore Netherlands BV for the Ocean Vanguard drilling rig. The contract is worth NOK 1.8 billion. Lasting for two years, the contract includes an option for Statoil to extend the contract. The contract takes effect in April 2008. The rig will mainly be used for exploration drilling in the North Sea and in the Halten/Nordland area of the Norwegian Sea. ”We are very pleased that we have secured Ocean Vanguard for another two years. This will make it possible to maintain the high exploration activity on the Norwegian continental shelf for a long time,” says Tim Dodson, senior vice president for exploration in Statoil. The Marshall Islands-registered semi-submersible Ocean Vanguard was built in Brevik, Norway in 1982 and is a third-generation rig. It is designed for drilling in water depths of down to 450 metres (1,500 feet). The drilling depth is stated to be maximum 7,600 metres (25,000 feet). The rig has been chartered by Statoil since 2004. Ocean Vanguard is currently drilling a well off Mid-Norway for Shell, which Statoil has a rig collaboration with.

Valkyrie well disappoints

A wildcat on the Valkyrie structure close to the Statoil-operated Norne field in the Norwegian Sea has been completed without yielding commercial hydrocarbons. The Norne production ship ranks as one of the most profitable units on the Norwegian continental shelf, and great expectations have been aroused for continued development of the area. Oil was found two years ago in the Linerle and Falk structures, and a discovery in Valkyrie would have further strengthened the local resource base. It might also have justified a separate infrastructure, so Jostein Gaasemyr, operations vice president for Norne, is very disappointed by the results of the latest well. “We’d hoped to prove substantial reserves,” he says. “We’ll now be going through the well data in order to take a new look at our strategy for the whole area.” The wildcat has now been permanently plugged and abandoned, and plans call for another exploration well on the Valkyrie structure early next year. This formation is located just over 25 kilometres north-east of Norne in production licence 128, and 2.7 kilometres south-east of the Linerle discovery. Drilled to a total depth of 2,248 metres, the 6608/11-5 exploration well terminated in Triassic rocks. It aimed to prove hydrocarbons in Lower Jurassic and Upper Triassic sands, but only traces were discovered. The drilling operation was conducted from Ocean Vanguard, which has now been taken over by Shell for a well in production licence 93 close to Draugen in the Norwegian Sea.

Duster in Bjørk prospect

Drilling of the wildcat 6608/8-2 in the Bjørk prospect north of the Norne field has been completed. No hydrocarbons were proven in the well. StatoilHydro is operator for production licence 352, the Bjørk prospect in block 6608, 33 kilometres north of the Norne field in the Norwegian Sea. The well did not reveal hydrocarbons and has been classified as dry but several reservoir zones were discovered in Cretaceous rocks. This was the first well in PL 352 which was awarded in the APA of 2004. The well was drilled to a vertical depth of 2,809 metres below sea level and was terminated in Triassic rocks. The well has now been plugged and abandoned. “The Bjørk prospect has been defined as an exciting drilling target for quite some time,” says Ørjan Birkeland, StatoilHydro’s exploration vice president for infrastructure in the north. “We had hoped to find oil in Cretaceous sandstone,” says Mr Birkeland. “The sandstone rocks were well-developed but unfortunately did not contain hydrocarbons. The operation was carried out in a safe, efficient and environmentally acceptable manner. The results from the well will now be used to gain a better understanding of the exploration model.” The well 6608/8-2 was drilled by the Ocean Vanguard rig in 337 metres of water. The rig is now to go to a shipyard for a classification survey.

Gas find on the Halten Bank

Drilling of an exploration well in the Gamma prospect in the Norwegian Sea has been concluded. A tie-in of the gas discovery to the Åsgard field will be considered. Rich gas was proven in the Fangst group of middle Jurassic age. According to preliminary calculations the find is in the order of 2 to 3 GSm3 of recoverable gas. Gamma is located eight kilometres southeast of the Mikkel field on the Halten Bank. The exploration well is one of several similar prospects in the Norwegian Sea, and the find helps increase the understanding of the underground in this area. “The results strengthen our belief in the further potential of the area near the Midgard and Mikkel fields, and more wells will be drilled in the next few years,” says Ørjan Birkeland, manager for exploration activities in areas close to existing fields in North Norway. The exploration well was drilled to a total depth of 2,508 metres below sea level, and concluded in rocks of middle Jurassic age. Formation testing of the well has not been performed, but extensive data gathering and sampling have been carried out. The semi-submersible drilling rig, Ocean Vanguard, has drilled in the Gamma prospect. The well will be plugged and abandoned, and the rig will continue to the Alve find in the Norwegian Sea to drill an exploration well.

Lower rig hire rates

The contracts have been signed with Diamond Offshore for the hire of Ocean Vanguard and with Saipem for the hire of the rig Scarabeo 5. “In December last year we announced that we expected the market to revert to the lower 2006 level and now it has responded to our expectations. We are pleased to have gained more reasonably priced rig capacity so that we can further develop the shelf,” says Anders Opedal, Statoil’s senior vice president for Procurement. The Ocean Vanguard deal is valued at USD 382 million. It has duration of three years with a one-year option. The deal for Scarabeo 5 is valued at USD 437 million and also has a three-year duration and one-year option. These rates set a new price level for rigs in the exploration and completion segment. “The two rigs are well known for their contributions to our operations on the shelf. The flexibility provided by these rigs in terms of conventional drilling, completion, high pressure, high temperatures and deep water are in line with our plans for exploration and production in the future,” says Øystein Michelsen, Statoil’s executive vice president for Exploration & Production Norway.

New gas find in the Norwegian Sea

Gas has been proven by StatoilHydro in exploration well 6507/3-7 Idun North in the Norwegian Sea. Currently being completed, the well is located two kilometres northwest of the Idun find and 12 kilometres north of the Skarv find. The well was not formation tested, but extensive data gathering has been carried out. “StatoilHydro and its partners in the production licence will consider tying the gas find back to the production vessel for Skarv and Idun when it is in place,” says Nygård. This is the first exploration well in the carved out production licence 159D. The licensees are the operator StatoilHydro with a 60% interest and E.ON Ruhrgas with 40%. In the original production licence 159 six exploration wells have already been drilled. Well 6507/3-7 was drilled at a water depth of 377 metres by the Ocean Vanguard rig. Drilled to a vertical depth of 3,833 metres below sea level, the well was concluded in the Åre formation of the lower Jurassic age. The well is being permanently plugged and abandoned.

Oil and gas discovery in the Norwegian Se

An oil and gas discovery has been made by StatoilHydro in the Nona prospect ten kilometres south east of the Åsgard field in the Norwegian Sea. Based on preliminary calculations the size of the find is between 13-31 million barrels of oil and 1-2 billion standard cubic metres of gas. “The Nona discovery further confirms the good results achieved by infrastructure-led exploration on the Halten Bank,” says Sivert Jørgenvåg, StatoilHydro’s head of infrastructure-led exploration on the Halten Bank. In his view it is still possible to make new finds in the area. “Thorough mapping and evaluation of the area have been the key success factors and also form the basis for further exploration activities,” says Jørgenvåg. The well was not formation tested, but extensive data gathering and sampling have been carried out. A development of the discovery involving production via the existing infrastructure will be considered.

Gas discovery at Harepus

Gas has been discovered by StatoilHydro in the Harepus prospect in the Norwegian Sea. Located in Middle Jurassic rocks, the Harepus discovery lies seven kilometres south of the Mikkel field. No formation testing has been done, but extensive data and cores have been collected. “Preliminary calculations indicate 0.5 to one billion standard cubic metres of recoverable gas,” says Sivert Jørgenvåg, head of infrastructure-led exploration on the Halten Bank. “A tie-back to Åsgard together with the Gamma discovery made in the same licence in 2008 will be considered.” The discovery well was drilled in 247 metres of water to a total depth of 3,162 metres beneath the sea surface and terminated in Early Jurassic rocks. It will now be permanently plugged before Ocean Vanguard leaves the location to drill an exploration well for StatoilHydro on production licence 159D in the Norwegian Sea.

Keppel secures US$85 million rig upgrade from repeat customer

Keppel FELS Ltd (Keppel FELS), a unit of Keppel Corporation Limited through Keppel Offshore & Marine Ltd (Keppel O&M), has secured a contract from Diamond Offshore Services Company, a subsidiary of Diamond Offshore Drilling, Inc. (Diamond Offshore), to upgrade semisubmersible rig Ocean Endeavor for US$85 million. Completion of the upgrade is scheduled for fourth quarter 2006. Ocean Endeavor will be capable of drilling down to 35,000 feet and be fully outfitted for 8,000 feet moored operations, with design capabilities to operate in up to 10,000 feet of water. In addition, the rig will have increased crew quarters to accommodate up to 140 personnel, over 6,000 tons of operating variable deck load and increased usable deck space. Mr Larry Dickerson, President & COO of Diamond Offshore, said, “Keppel FELS comes with a proven track record of consistently delivering complicated upgrades on time and on budget. “We chose their yard because of the expertise and experience they demonstrated in the previous upgrades of our Victory-class semisubmersibles Ocean Baroness and Ocean Rover. “We are pleased to once again be embarking with them on a major rig upgrade.” In recent years, Diamond rigs upgraded or repaired at Keppel O&M yards include Ocean Baroness, Ocean Rover, Ocean America, Ocean Winner, Ocean Sovereign, Ocean Heritage, Ocean Tower, Ocean Warwick, Ocean Spartan and Ocean Spar. Ocean Endeavor is expected to arrive at Keppel FELS in May 2005 for the upgrading.

Keppel undertakes US$102 million upgrading of fourth semi for Diamond

Keppel FELS Ltd (Keppel FELS) has secured a contract from Diamond Offshore Drilling, Inc. (Diamond Offshore) for the major upgrading of semisubmersible rig (semi) for US$102 million. Ocean Monarch will arrive at Keppel FELS in mid 2006 for the upgrading and is expected to be operationally ready in the fourth quarter of 2008. When completed, Ocean Monarch can operate in up to 10,000 feet of water in a moored configuration. It will be among the most modernised and competent of Diamond’s fleet of upgraded Victory-class semis. This semi is the fourth in a series of fifth generation Victory-class upgrades that Keppel FELS has undertaken for Diamond Offshore. The first three semis are Ocean Baroness, Ocean Rover and Ocean Endeavor. Ocean Endeavor is currently undergoing upgrading works at Keppel FELS and is scheduled for completion in fourth quarter 2006. Keppel FELS is currently undertaking the construction of one jackup rig for Diamond Offshore. Its sister company, Keppel AmFELS is also building a jackup rig for the same customer. Both rigs are of the proprietary KFELS B Class jackup design by the R&D arm of Keppel.

Keppel AmFELS to Construct and Upgrade Deepwater Semisubmersible for Diamond Offshore for US$150 million

Keppel AmFELS LLC, a US wholly-owned subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), has secured a contract from Diamond Offshore to construct and upgrade a moored semisubmersible rig with delivery scheduled for 3Q 2013. The estimated shipyard contract price is approximately US$150 million. The rig, to be named Ocean Onyx, will be constructed from an existing hull from a Diamond Offshore cold stacked unit, which previously operated as the Ocean Voyager. Keppel AmFELS' scope of work on the Ocean Onyx includes the reconstruction of the rig, installation of advanced equipment such as a modern drilling package, and installation of sponsons to the pontoons to enhance the stability of the rig in deepwater. The rig will be designed to operate in water depths of up to 6,000 feet and will have a variable deck load of 5,000 long tonnes, a five-ram blowout preventer, and quarters capacity for 140 personnel.

Small oil discovery in the Tampen area

A limited oil column was proven during drilling of an exploration well on the Omega Nord prospect six kilometres north-east of the Snorre field in the North Sea. However, the reservoir qualities of the sand and shale rocks were below expectations and the find is probably not commercially viable. The purpose of the exploration well was to confirm the presence of petroleum in upper Triassic reservoir rocks in the Lunde formation. We have achieved good results in infrastructure-led exploration the last few years, but this well did not produce the results we had hoped for, says Tom Dreyer, head of infrastructure-led exploration in the North Sea. Drilling of the exploration well is now concluded. No formation test was performed in the well, but extensive data gathering and sampling were made. This is the 12th exploration well in production licence 057, which was awarded in the fourth licensing round in 1979. The well was drilled to a vertical depth of 2,940 metres below sea level and was completed in the lower part of the Lunde formation. Water depth in the area is 385 metres. Exploration well 34/4-12 S was drilled by Ocean Vanguard, which will now drill exploration well 34/4-12 A in Snorre Unit from the same rig position. The licensees in PL 057 are: Statoil (operator) (31.0%), Petoro AS (30.0%), RWE Dea Norge AS (24.5%), Idemitsu Petroleum Norge AS (9.6%) and Hess Norge AS (4.9%).

Oil and gas discovery just north of Norne

Statoil has found oil and gas in the Fossekall prospect just north of the Norne field in the Norwegian Sea. The proved recoverable resources are provisionally estimated at between 37 and 63 million barrels of oil. The volume of associated and free gas is estimated at between 1-3 billion standard cubic metres of gas. ”I am pleased that we have made yet another discovery in the area north of the Norne field,” says Geir Richardsen, Statoil’s head of exploration for acreage close to the infrastructure in the Norwegian Sea. Last year Statoil discovered oil on the Dompap prospect, which also lies north of the Norne field. “These discoveries demonstrate that also the deeper, western parts of the Norne area remain prospectable. This may well have a bearing on our field longevity work,” says Richardsen. Together with its partners the company will consider developing the discovery through a tie-in to Norne, where the storage and production ship Norne receives production from seabed templates. Norne is also linked to the gas infrastructure on the continent by means of the pipeline systems Norne gas export and Åsgard transport via Kårstø in Rogaland. The partners on the PL128 licence are: Statoil (operator, 63.95%), Petoro AS (24.55%) and ENI Norge AS (11.5%).

Minor oil discovery in the Tampen area

Statoil has proven the existence of oil in a well in the Tampen area in the north-eastern area of the Snorre field in the North Sea. The purpose of the Statoil-operated well was to prove petroleum in the Upper Triassic reservoir rocks that belong to the lower parts of the Lunde formation. The find has been named Lower Lunde, and its size has been estimated to be between 6 and 19 million barrels of oil equivalents. The well formations are of good reservoir quality. The well was not formation tested, though samples were taken and data collected. “Together with the other discoveries on Tampen in 2009 – such as Vigdis Nordøst, Pan/Pandora and Titan – the Lower Lunde find will help maintain production from the major fields in the area during coming years,” says Nicholas Ashton, who is head of infrastructure-led exploration in the Tampen area. The Snorre Unit licensees will consider tying in production from the find to Snorre. Snorre Unit, formed in 1988 around the Snorre field, covers parts of production licences PL057 and PL089. The well will now be permanently plugged and abandoned. Well 34/4-2 A was drilled by the Ocean Vanguard rig, which will now proceed to production licence PL128 in the Norwegian Sea to drill the Fossekall prospect et on exploration well 6608/10-14 S, where Statoil is operator.

Oil discovery in the North Sea

Oil has been proven by Statoil and its partners Det norske oljeselskap ASA and Svenska Petroleum Exploration AS on the North Sea Krafla prospect. The well is located in block 30/11 around 26 kilometres south of the Oseberg South field. Based on preliminary calculations the size of the discovery is between 12.5 and 56.5 million barrels of recoverable oil equivalent. ”Statoil has had great exploration success in mature areas during the last years,” says Gro Gunleiksrud Haatvedt, Statoil’s head of exploration on the Norwegian continental shelf (NCS). “The North Sea is a strategically important area to Statoil, and this discovery on Krafla confirms once again that the company can still find interesting volumes close to established infrastructure.” ”These discoveries can quickly be put on stream and help extend the life of our installations,” she says. Drilled by the Ocean Vanguard rig the well proved a column of around 200 metres in good quality reservoir rocks. ”Previously six exploration wells have been drilled in block 30/11 without commercial success, so we are very pleased that Statoil seems to have made a fast track discovery in our first operated well in this license,” says Tom Dreyer, exploration manager for the Northern North Sea. “Although data collection is still ongoing, the results so far clearly indicate that this is an oil discovery. If this is the case then we have unlocked the exploration potential of this area and have several follow-up opportunities.” When the Krafla well is completed, the Ocean Vanguard will start drilling the planned sidetrack well on Krafla West, which is located west of the recently drilled well. The find will probably be developed and produced by tie-back to one of the subsea installations in the Oseberg area. The licensees in PL035/PL272 are: Statoil (operator) (50%), Det norske oljeselskap ASA (25%) and Svenska Petroleum Exploration AS (25%).

New oil discovery on Utsira High

Statoil has made an oil discovery in the Geitungen prospect on Utsira High in the North Sea together with partners Petoro, Det norske oljeselskap and Lundin. Exploration well 16/2-12 drilled by the drilling rig Ocean Vanguard has proven a 35 metre oil column in a high quality reservoir dating from the Jurassic period. Statoil estimates the volumes in Geitungen to be between 140 and 270 million barrels of recoverable oil equivalents (o.e.). Oil was also proven in the basement rocks. This is regarded as a possible upside in connection with the development of the area/discovery. "A new oil discovery in the Johan Sverdrup area, in the mature part of the North Sea reinforces Statoil's faith in the exploration potential of the Norwegian continental shelf, and demonstrates that we deliver on our strategy of revitalising the NCS with high value barrels," says Gro Haatvedt, senior vice president exploration Norway in Statoil. Geitungen was drilled approximately three kilometres north of the Johan Sverdrup discovery and was defined as a separate prospect in the licence PL 265. Well data indicate that there probably is communication between the two discoveries. "The Geitungen discovery will be included in the on-going development work for the Johan Sverdrup field. The discovery should therefore be seen in relation with the on-going appraisal program in Johan Sverdrup to narrow down the volume range and uncertainty", says Øivind Reinersten, Statoil VP for Johan Sverdrup field development. There is an extensive appraisal program going on in the Johan Sverdrup discovery, both in PL265 operated by Statoil and PL501 operated by Lundin. Statoil as pre-unit operator plans to communicate a volume range for the Johan Sverdrup pre-unit at a later stage. "Statoil aims to capture the full potential in the greater Utsira High area. In APA2011* we secured new promising acreage both north and south of Johan Sverdrup. We are currently working to improve seismic imaging of the greater Utsira High and have ambitious drilling plans with about 8-12 wells scheduled for 2012-2014", says Haatvedt. Following completion of well 16/2-12, the Ocean Vanguard drilling rig will move to Johan Sverdrup to drill two appraisal wells in the central and southern parts of PL 265. Well 16/2-12 is the eighth well in production licence 265. The well was drilled to a vertical depth of 2045 metres below sea level at a sea depth of 115 metres. Statoil is operator for production licence PL265 with an ownership share of 40% interest. The licence partners are Petoro AS (30%), Det norske oljeselskap ASA (20%) and Lundin Norway AS (10%).

Statoil releases 'Ocean Vanguard' immediately

Diamond Offshore Drilling, Inc. (Diamond) announced today that a subsidiary has received notice of termination of its drilling contract for the mid-water semisubmersible ‘Ocean Vanguard’ from Statoil ASA (Statoil), its customer for the rig. The contract was providing a dayrate of approximately USD454,000 and was estimated to conclude in accordance with its terms in late February 2015 howver, Statoil has acted to cancel the contract nine months in advance of this. Diamond Offshore disputes Statoil's basis for terminating the contract and intends to defend its rights under the drilling contract. The ‘Ocean Vanguard’ was supposed to drill the highly publicised Apollo prospect in the Hoop area of the Barents sea however, Statoil instead chose to drill the prospect using the ‘Transocean Spitsbergen’.

Salamander spuds North Kendang-2

Salamander announces the spud of the North Kendang-2 exploration well (NK-2), a re-drill of the North Kendang-1 (NK-1) well in the South East Sangatta PSC. Salamander has a 75% operated interest in the South East Sangatta PSC. NK-2 will be drilled to a depth of approximately 2,878 m total vertical depth sub-sea (TVDSS) in order to evaluate the Upper Miocene section. The ‘Ocean General’ semi-submersible rig owned by Diamond Drilling, which has now been fitted with managed pressure drilling equipment to enable it to manage the anticipated pressure regime, will be used to drill the NK-2 well. NK-1 was drilled to 2,535 m TVDSS when it encountered a high pressure wet gas kick in the Upper Miocene, which led to it being plugged and abandoned on 13th April 2013. Costs related to the NK-1 well control incident, and to drilling the NK-2 well to this same depth, are covered under the Company’s insurance policies.

ExxonMobil spuds Domino-2 well in Romania

ExxonMobil Exploration and Production Romania Limited, a subsidiary of Exxon Mobil Corporation and OMV Petrom (OMV Petrom) announces commencement of drilling at Domino-2 in the Neptune deepwater block in the Romanian sector of the Black Sea. Data collected during the drilling program will be used to assess the size and commercial viability of the reservoir gas exploration well discovered Domino-1, in 2012. "If the discovery proves to be commercially viable, ExxonMobil will use its global expertise in deep water exploration and expertise in project execution to ensure resource development in a safe, responsible to the environment and in a timely manner" said John Knapp, CEO of ExxonMobil Exploration and Production Romania. As operator for the block deep Neptun Romania ExxonMobil brings vast experience and the latest technology with a long history of safe drilling deep wells throughout the world. "We will use the experience of over 40 years in the shallow waters of the Black Sea to contribute to the success of a pioneering project and Neptune Deep" said Gabriel Selischi, OMV Petrom Executive Board member responsible for Exploration and Production. "We are committed to investing significantly in exploration, development and production of hydrocarbons to ensure domestic oil and gas resources for Romania." Domino-2 is located approximately 200 kilometers offshore and is being drilled drilled in waters with a depth of about 800 meters by the ‘Ocean Endeavour’ semisub.

Diamond announces new 'Ocean Onyx' contract and sale of 'Ocean Spartan'

Diamond Offshore Drilling, Inc. (Diamond) has announced the signing of a new contract for its recently rebuilt ‘Ocean Onyx’ semisub. Upon completion of its current contract with Apache in the US Gulf of Mexico (GoM), the unit will head to Trinidad to drill a single firm well for BG International, earning a dayrate of USD390,000. Diamond also announced the sale of the ‘Ocean Spartan’ jackup, the unit has been sold to India’s Mercator Limited (Mercator) who do not plan to use the unit for drilling operations. Mercator are believed to have purchased the 34 year old jackup rig for USD12 million. Meanwhile Diamond also announced delays associated with the delivery of two of its newbuild drillships, the ‘Ocean BlackHornet’ and ‘Ocean BlackRhino’ which were due for delivery in Q3 2014 are now expected to be delivered in Q1 2015.

Salamander fails to find commercial discovery at North Kendang-2

Salamander Energy plc announces that drilling operations on the North Kendang-2 exploration well (NK-2) in its operated South East Sangatta PSC have now been concluded. The well reached a total depth of 2,569 metres true vertical depth sub-sea and encountered two hydrocarbon bearing intervals, one of which was the primary objective zone of high pressure encountered in the North Kendang-1 (NK-1) well. This was successfully penetrated in NK-2 and comprised a 2.5m gas condensate bearing sand. In addition, a 10.5m gas bearing sand with oil shows was encountered at a shallower depth. This sand is at the same stratigraphic interval that flowed 6,000 bopd on test in the South Kecapi-1 DIR/ST well in the Bontang PSC. The volume of hydrocarbons encountered is considered to be sub-commercial and the NK-2 well has been plugged and abandoned. Costs related to the NK-1 well control incident, and to drilling the NK-2 well to this same depth, are covered under the Company’s insurance policies. This well concluded Salamander’s drilling programme in the North Kutei and the ‘Ocean General’ rig has now been released.

Statoil sanctions Stampede development

Statoil has decided to invest USD1.5 billion in the Stampede development in the U.S. Gulf of Mexico, which is expected to begin production in 2018. Statoil owns 25% of Stampede, which is operated by Hess. Total project costs are expected to be approximately USD6 billion. Stampede, a new project named from unitizing the former discoveries of Knotty Head and Pony, is located approximately 350 kilometers (215 miles) from New Orleans, Louisiana at a water depth of more than 1,000 meters (3,500 feet). The reservoir depth is 9,100 meters (30,000 feet). Stampede consists of Green Canyon Blocks 468, 511 and 512. The reservoir contains approximately 350 million barrels of recoverable oil. Stampede’s development plan calls for six subsea production wells and four water injection wells from two subsea drill centers tied back to a tension leg platform. Gross topsides processing capacity for the project is approximately 80,000 barrels of oil per day and 100,000 barrels of water injection capacity per day. Drilling is expected to begin in Q4 2015 and will be performed by two newbuild drillships; the Ocean BlackLion and Ocean BlackRhino.

Seadrill sells drillship to MLP Seadrill Partners

Seadrill Limited (Seadrill) announced today that it has entered into an agreement with Seadrill Partners pursuant to which the Company will sell to Seadrill Capricorn Holdings LLC, Seadrill Partners' 51% owned subsidiary (Capricorn Holdings), all of the ownership interests in the entities that own and operate the drillship, the West Vela (the Vela Acquisition). The Vela Acquisition, which is expected to close within 3 days, will be accomplished through a series of purchases, contributions and assumption of debt. The West Vela is a 6th generation, dynamically positioned drillship delivered from the Samsung shipyard to its current customer, BP, in November 2013. The West Vela is expected to carry out operations in the U.S. Gulf of Mexico until the end of its contract in November 2020. The implied purchase price of the Vela Acquisition is USD900 million, less USD433 million of debt outstanding under the existing facility financing the West Vela. Based on Seadrill Partners' 51% ownership of Capricorn Holdings, its portion of the net purchase price after debt will be USD238 million.

Petrobras discovers gas at Orca-1 in Colombia

Ecopetrol S.A. has announced that the Petrobras operated Orca-1 exploration well has successfully discovered hydrocarbons. The well is located 40 kilometers north of the coast of Guajira province. This is the first discovery in deep waters of the Colombian Caribbean. The Orca-1 well was drilled within the Tayrona block and has as its operating company Petrobras, with a 40% stake, in partnership with Ecopetrol (30%) and Repsol (30%). The Tayrona block was the first contract granted in 2004 by the National Hydrocarbons Agency (Agencia Nacional de Hidrocarburos) for exploration in the Colombian Caribbean. The well reached the expected depth of 13,910 feet (4,243 meters), in water depth of 2,211feet (674 meters). Drilling was completed in September and showed the accumulation of natural gas at a depth of 12,000 feet (3,657 meters). Orca-1's results confirm the hydrocarbon potential of this Colombian frontier basin and demonstrate the capacity of the petroleum system in the deep part of the offshore basin. Following completion of this phase of exploration and initial tests, in-depth technical studies will begin to determine gas potential of the discovery. Ecopetrol is currently a participating partner in 13 offshore blocks in the Colombian Caribbean. A drilling campaign is planned for this basin that will include two wells in 2015 and two or three additional wells in 2016 with its partners.

Diamond Offshore cold stacks trio of rigs

Diamond Offshore (“Diamond”) has announced that the company has decided to stack a further two jackup rigs and another semisubmersible rig, doubling its total of cold stacked units. The units being cold stacked are the Ocean King and Ocean Titan both which will be stacked immediately in the US GoM as well as the Ocean Worker, which will arrive in the US GoM on the 2nd March 2015 and will being stacking preparations. The news that Diamond has chosen to stack these units follows the company’s decision to retire six units in December 2014, as it looks to react to the depressed offshore drilling market.

Diamond struck by contract termination calls

Diamond Offshore Drilling Inc (“Diamond”) today released its 10-K form to the United States Securities and Exchange Commission (“SEC”). The release contained news that the company has received contract cancellation/terminations for six of its operational rigs in Brazil, UK and Mexico. Petrobras notified the company of its intention to terminate the Ocean Baroness’ contract with immediate effect in Brazil. Whilst on the 12th February 2015, Dana Petroleum gave notice to Diamond that it intended to terminate the drilling contract for the Ocean Nomad semisub, currently operating in the UK. However, the largest cancellation/termination notice came from Pemex who informed Diamond that it intends to terminate contracts for the Ocean Ambassador, Ocean Nugget and Ocean Summit as well as cancelling the future contract for the Ocean Lexington. Diamond highlighted in the release that the company is currently in discussion with each of the three operators regarding the proposed terminations and cancellations which if exercised could result in a significant decrease in revenue for the rig manager.

Apache contracts 'Ocean America' to drill Levitt-1

The Levitt-1 exploration well is targeting an unrisked gross prospective resource best estimate of 220 mmbbls in the Legendre and North Rankin formations. The well is positioned to receive migrating hydrocarbons from the oil mature Early Jurassic source kitchen located in the central and eastern side of the permit.

Inpex confirms discovery at Bestari-1

INPEX CORPORATION (“INPEX”) announced today an oil discovery at the Bestari-1 exploration well in Deepwater Block R where preliminary findings point to an approximately 70m column of oil-bearing sands across multiple horizons. INPEX has a participating interest in Block R through its wholly-owned subsidiary, INPEX Offshore South West Sabah, Ltd. Block R located offshore East Malaysia covers an area of 672km2 with a water depth ranging from 100m to 1,400m. INPEX currently owns a 27.5% participating interest in the Block, where it conducts exploration activities alongside operator JX Nippon Oil & Gas Exploration (“Deepwater Sabah”) Limited, PETRONAS CARIGALI Sdn. Bhd., a wholly-owned subsidiary of Petronas, and Santos Sabah Block R Limited, which own participating interests of 27.5%, 25% and 20%, respectively. Moving forward, INPEX and its partners will analyse and evaluate the data retrieved from the well, and proceed with plans to drill two exploratory wells to assess the possibility of new oil and natural gas deposits. Japan Oil, Gas and Metals National Corporation (“JOGMEC”) is to cover up to 50% of exploration expenditures incurred by INPEX Offshore South West Sabah, Ltd. through equity capital.

Chevron announces gas discovery in Australia

Chevron Australia Pty Ltd announced today further drilling success in the Greater Gorgon Area located in the Carnarvon Basin, a premier hydrocarbon basin offshore northwest Australia. The Isosceles-1 exploration discovery well encountered approximately 134 metres (440 feet) of net gas pay in the Triassic Mungaroo Sands in 968 metres of water (3,175 feet). The well fulfilled the second year work commitment in the exploration program. It is located in the WA-392-P permit area approximately 95 kilometres (60 miles) northwest of Barrow Island, off the coast of Western Australia. “This discovery is a continuation of our exploration success and further positions our company as a key supplier for future liquefied natural gas (LNG) demand in the Asia-Pacific region,” said Melody Meyer, president, Chevron Asia Pacific Exploration and Production Company. Roy Krzywosinski, managing director, Chevron Australia, said: “This discovery in the Greater Gorgon Area is an important addition to our portfolio and highlights the industry-leading results of our exploration program in Australia.” Chevron Australia is the operator of WA-392-P with a 50 percent interest while Shell Australia and Mobil Australia Resources each hold a 25 percent interest.

Apache negotiates rate reduction for final two months of future contract

Apache Corporation (“Apache”) has negotiated a reduced dayrate with Diamond Offshore Drilling Inc (“Diamond”) on its future contract for the Ocean Monarch semisubmersible drilling rig. The unit which is expected to begin its 18 month contract in Australia for Apache in June 2015 will see its dayrate reduce from USD410,000 to USD350,000 for the final two months of the 18 month contract.

Diamond announces new wave of rig retirements and stacking activity

Diamond Offshore Drilling Inc. (“Diamond”) today released the company’s updated fleet status report alongside its financial results for Q1 2015. Diamond announced a further wave of rig retirements and cold stacking amid the current downturn in the drilling market. The offshore rig manager retired three semisub units, the Ocean Worker, Ocean Yorktown and Ocean Saratoga. The three retired units had an average age of 37 years. Meanwhile Diamond also cold stacked the Ocean Star, Ocean Princess, Ocean Nomad and Ocean Spur. Diamond has been one of the most active rig managers in terms of stacking and retirement activity thus far in 2015.

'Ocean Victory' arrives in Trinidad for BP contract

BP Trinidad and Tobago LLC (“BP”) has announced that the Ocean Victory semi-submersible drilling rig, owned and operated by Diamond Offshore Drilling Inc (“Diamond”), has arrived in Trinidad and Tobago after mobilising from the USA. The unit will now take on personnel, equipment and supplies, before moving to the offshore location of the Juniper field located 50 miles off the south east coast of Trinidad, where it is expected to commence drilling operations in mid-May. The Juniper project is BP’s first in subsea field development in Trinidad and will have a production capacity of approximately 590 million standard cubic feet a day (mmscfd). First gas from the facility is expected in 2017. The rig, which is capable of drilling to total depths of up to 25,000 feet, and in water depths of up to 6,000 feet, is under contract for an initial term of two years. It is expected to drill 5 subsea wells which will be tied into the Juniper platform. Ocean Victory has travelled 2,168 nautical marine miles in 23 days from Mississippi, US. This will be the third rig in operation on BP’s offshore facilities in Trinidad, joining the SKD Jaya and the Rowan EXL II.

Levitt-1 well spudded in Australia

Karoon Gas Australia Ltd (“Karoon”) is pleased to announce the commencement of the high impact Levitt-1 exploration well in WA-482-P Carnarvon Basin, off-shore Western Australia. Levitt-1 spudded at 1230 AEST on 4th July 2015. The shallow hole section has been drilled 73 metres, in a water depth of 1,163 metres to the current depth of 1,262 mRT and the conductor casing has been set. Preparations are underway to commence drilling in the 17-1/2” hole section later today. The Ocean America semisubmersible drilling rig is being used to drill the well which is targeting a net unrisked prospective resource best estimate of 110mmbbls (gross 220mmbbls). Total depth is expected to be reached during early August.

Global Maritime to provide mooring for 'Ocean America'

Global Maritime Deep Sea Mooring has been awarded a contract for the provision of mooring and rig positioning services for the Australian oil and gas company Quadrant energy. Under the contract with Quadrant Energy, Global Maritime Deep Sea Mooring will perform mooring and rig positioning services for both semi-submersible and jack-up operations on the Northwest Shelf, Australia. The contract will begin with Quadrant Energy’s use of the Ocean America for drilling operations on the Levitt-1 well.

Global Maritime secures mooring work in Australia

Global Maritime Deep Sea Mooring has been awarded a contract for the provision of mooring and rig positioning services to the Australian oil and gas company Woodside. Under the contract with Woodside, Global Maritime Deep Sea Mooring will perform mooring and rig positioning services for semi-submersible drilling unit Ocean Monarch, which is drilling at the Julimar field on the Northwest Shelf, Australia. Mobilisation and offshore operations commenced in May 2015. “Winning this contract confirms the importance of flexibility and local presence, with availability of equipment and personnel. We are very pleased that our unique advanced technologies and equipment specifications are highly appreciated by key industry players”, says Managing Director Barry Silver in Global Maritime Deep Sea Mooring Australia. “This is our first contract with Woodside, and we look forward to developing a close cooperation going forward”.

Karoon releases Levitt-1 update

Karoon Gas Australia Ltd (“Karoon”) is pleased to announce that the Levitt-1 exploration well in WA-482-P Carnarvon Basin, offshore Western Australia was drilling ahead in the 12-1/4” hole section at a depth of 2,918 mRT. Since the 6th July 2015 Progress Report No 1, the 17-1/2” hole section was drilled to a depth of 2,099 mRT where the 13-5/8” casing was run and cemented in place at 2,094 mRT. Blowout Preventer installation and testing was then completed, the casing shoe drilled out and drilling ahead commenced in the 12-1/4” hole section. The Ocean America semi-submersible drilling rig is being used to drill the well which is targeting a net unrisked prospective resource best estimate of 110mmbbls (gross 220mmbbls) . Total depth is expected to be reached during early August. Levitt-1 is designed to test the presence of a working petroleum system generating from the Wigmore sub-basin.

Quadrant Energy comes up dry at Levitt-1

Karoon Gas Australia Ltd (“Karoon”) announced that as of 19:30 AWST on 8th August 2015, the Levitt-1 exploration well in WA-482-P Carnarvon Basin, off- shore Western Australia reached a final total depth of 4,929 mRT. No hydrocarbons shows were noted while drilling and petrophysical analysis of LWD data indicates the good quality reservoir of the Legendre and North Rankin formations to be water bearing at this location. Since the June 2015 Quarterly Report, announced 31st July 2015, the 9-5/8” casing was run and cemented in place. The 8-1/2” hole section was then drilled 504 metres from 4,425 mRT to TD. A wireline logging program is now underway. Once the wireline logging program is complete, the well will be plugged and abandoned, completing the current exploration drilling program in WA-482-P. Karoon has a 50% equity interest in WA-482-P and is carried for 90% of the cost of the well. Joint venture partner, and operator Quadrant Energy Australia Ltd has the remaining 50% interest. The net cost to Karoon is expected to remain within the USD5 million budget.

Contract Extension Agreed on the Ocean Courage

As announced in Diamond Offshore’s November fleet status report, the company has agreed to terminate the drilling contracts on the Ocean Clipper and Ocean Alliance early and add 875 days to the end of the current term of the Ocean Courage at the rate of US$380,000 per day. The agreement has now been approved by Petrobras. Diamond Offshore is now finalising the amendments to the drilling contracts.

Ocean Clipper to be Retired

According to Diamond Offshore's fleet status report, the Ocean Clipper has been retired and is now preparing for exportation from Brazil. The asset is due to be scrapped. The remaining contract term on the Ocean Clipper has been added to the Ocean Courage.

Upgrades for the Ocean Endeavor

Diamond Offshore Drilling Inc. (NYSE:DO) today announced initiation of a major upgrade of the Victory-class semisubmersible Ocean Endeavor for ultra-deepwater service. The modernized rig will be designed to operate in up to 10,000 ft. of water and will be the most capable of the Company's upgraded Victory-class units. The project is budgeted at $250 million including capitalized overhead and interest, spares, testing and delivery, mobilization to Singapore, and all other associated expenditures. Delivery is expected in approximately two years. The Ocean Endeavor will be fully outfitted for 8,000-ft. moored operations upon delivery and in certain applications will be capable of deploying a 12-point mooring system. In addition, the rig will have increased crew quarters' capacity, over 6,000 tons of operating variable deck load, and more than twice the useable deck space compared to the design of the previously upgraded Ocean Rover and Ocean Baroness. The Endeavor will employ the same Tripsaver(TM) technology that is at work on the Rover and Baroness, which provides for significant drilling efficiencies. "We have made the decision to move forward on the Endeavor upgrade based upon our confidence in the strength of the market," stated Diamond Offshore President and Chief Operating Officer, Larry Dickerson. "The modernized Endeavor will expand our 5th Generation semisubmersible fleet to four units, enhancing our ability to serve both the exploration and development needs of our customers. The estimated construction cost of this unit is significantly below new-build costs, and the relatively short construction schedule represents a large delivery advantage over new builds." The Endeavor, currently cold stacked in the Gulf of Mexico, will be mobilized to Keppel-FELS Ltd.'s shipyard in Singapore.

Newbuild Delivery

Hyundai Heavy Industries (HHI), the world’s largest shipbuilder and a leading offshore facilities manufacturer, today announced it delivered Ocean Greatwhite, the world’s largest semi-submersible drilling rig, to Diamond Offshore, a Houston-based drilling contractor on July 15. The delivery installment worth 460 billion won ($395 million) HHI received from the client will help improve HHI’s cash flow. Ocean Greatwhite, measuring 123 m in length and 78 m in width, is capable of operating in waters up to 3 km deep and drilling down to a depth of 10.67 km from the sea surface. The rig will be chartered to BP for operation in the Great Australian Bight from October this year. HHI won the order worth $630 million to build the rig in 2013 and has delivered four other drillships to the US-based drilling contractor so far. An HHI official said, “The close cooperation between Diamond Offshore and HHI on the basis of mutual trust is what made the delivery of Ocean Greatwhite possible.”

ISDS first for DNV GL classed Ocean Greatwhite - world’s largest semi-submersible

DNV GL has welcomed the world’s largest semi-submersible drilling rig into class recently. Ocean Greatwhite is 123 metres long and 78 metres wide and was delivered at Hyundai Heavy Industries in Ulsan, South Korea. Owned by the Houston-based drilling contractor Diamond Offshore, the rig will be chartered to oil major BP and will operate in the Great Australian Bight. The rig is to be a new design MOSS CS60E high specification state-of- the art semi-submersible drilling unit suitable for operations in harsh environments, which is the first MOSS CS60E and the largest rig in the world. “The Ocean GreatWhite is a unique rig purposely built for drilling in harsh environments,” said Karl Sellers, SVP Technical Services at Diamond Offshore. “HHI and DNV GL were integral in helping us get this rig to market as we prepare for the drilling project in Australia with BP.” “We have a strong relationship with both DNV GL and Diamond Offshore – and it is thanks to this good cooperation that the project went so well. We are proud to deliver the first drilling ship of this size and look forward to many more projects on this scale,” Youngseuk Han, Senior Executive Vice President at HHI said. “We will keep moving the boundaries of technology by completing following large-scale and innovative projects.” “Ocean Greatwhite is capable of operating in depths of up to 3000 metres and can drill down to a depth of 10,670 metres. It represents the state of the art in the semi-submersible sector and we are very pleased to have been asked to contribute our expertise to this project,” says Paal Johansen, Vice President and Regional Director, Americas at DNV GL. Ocean Greatwhite is also the first new-build rig to receive the DNV GL Integrated Software Dependent Systems (ISDS) notation. ISDS are systems whose performance is dependent on the overall behaviour of their integrated software components. DNV GL’s ISDS standard helps owners and operators minimise software integration errors and delays in projects involving complex integrated systems. The certification ensures that software and integration issues are identified and resolved early on during the project design stages. It also represents a new approach to verification, as it emphasises a review of the working methods and processes that lead to the delivery the systems, rather than simply focusing on the final review of documents and installations to ensure they meet product requirements. Industry data suggests that high specification mobile offshore drilling units may experience 30 per cent down-time during their first years of operations, which makes a systematic framework for ensuring that ISDS achieve the required reliability, availability, maintainability and safety essential. “We expect that the operational performance of Ocean Greatwhite will demonstrate how the ISDS notation can contribute to increasing the reliability of the complex systems onboard,” adds Paal Johansen. DNV GL’s ISDS teams in Korea, Norway, and the USA all contributed to the project. DNV GL also provided advisory services to HHI on the integration of the various systems throughout the newbuilding process.

Historic Bedout Sub-basin flow test

Carnarvon Petroleum Limited (“Carnarvon”) (ASX:CVN) advises that the Roc-2 well test successfully flowed gas and condensate to surface over the course of a sustained test program. Quadrant Energy, as operator of the permit, undertook controlled flow test operations in the Roc-2 well. The well flow tested at rates up to 51.2 million scf per day of gas and 2,943 barrels of condensate per day, that is approximately 11,500 barrels of oil equivalent* per day. These rates were achieved through an approximate 1 1/2” choke and were equipment constrained flow rates; meaning the well flowed at the maximum rate possible in the equipment being used. Testing operations were undertaken at controlled flow rates to enable the monitoring of the field including reservoir pressures, gas and condensate ratios and the presence of other substances such as CO2, H2S, water and sand. Encouragingly, there were insignificant levels of these other substances in the gas and condensate recorded during the flow test.

Phoenix South-2 Well Update

Carnarvon Petroleum Limited (“Carnarvon”) (ASX:CVN) is pleased to inform shareholders that operations at the Phoenix South-2 well have been safely completed and the rig has now left the drilling location. The well drilled an estimated 39 metre hydrocarbon-bearing zone between approximately 5,176 and 5,215 metres with significant gas influx and elevated reservoir pore pressures. The well was unable to assess as much as 185 metres of additional potential hydrocarbon bearing Caley reservoir beneath 5,215 metres due to the higher than anticipated pressures being encountered. The higher formation pressures encountered typically support both larger volumes and higher gas and condensate flows rates over a given reservoir. An update on volume estimates will be provided once Carnarvon has had an opportunity to assess all of the information obtained from the well. These results are expected to have a positive impact on volumes assessments in the Phoenix South Caley Sandstone. The joint venture will also assess the results of this well for the purpose of considering the future operations in this area, including quantifying the resources identified in the Phoenix South Barret and Caley Sandstone formations. Unfortunately, the subsurface conditions in this well did not allow for the well to be suspended in a way that would allow for re-entry at a later date.