Rig: Ocean Vanguard

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’.

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.

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).

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.

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.

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 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.

'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 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.

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.

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.

'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.

'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 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 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.

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%).

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.

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%).

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).

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%).

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.

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%).

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.

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.

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.

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.

Gas and condensate discovery in the Norwegian Sea

StatoilHydro has confirmed the existence of gas and condensate on the Alve field in the Norwegian Sea around 16 km southeast of the Norne field. Based on a preliminary estimate, the discovery includes three to five billion cubic metres of gas. A thin oil zone was also proven below the gas. ”The find is encouraging and supports our firm belief in other opportunities we are evaluating in the vicinity,” says Ørjan Birkeland, vice president for infrastructure exploration north. Extension drilling was carried out in this production well. Due to come on stream in January 2009, it is the first production well on the Alve field. The purpose of the exploration extension was to prove hydrocarbons in a reservoir located deeper in mid-Jurassic rocks than the resources proven in previous exploration wells on the Alve field. Gas and condensate in sandstone of mid-Jurassic rock were proven during the extension drilling. The drilling of well 6507/3-5S has been completed, and the well will be temporarily plugged. A completion of the previously proven reservoir is planned for the autumn of 2008. The gas is to be transported to the Norne field. The licensees will evaluate how the additional resources proven in the extension drilling can be recovered. Formation testing was not performed in the well, but comprehensive data collection and sampling have been carried out. The well was drilled to a vertical depth of 3,834 metres below sea level, and was completed in lower Jurassic rocks. The water depth is 368 metres. The Ocean Vanguard drilling rig is leaving the location to drill an exploration well for StatoilHydro on the Irish continental shelf. The partners in PL159B are StatoilHydro (operator) with an 85 percent interest and DONG with a 15 percent interest.

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.

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.

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.

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 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.