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North Sea Reporter

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Incremental projects will account for
half Norway spending in next decade

Incremental projects in Norway will account for almost half the sectors
$200 billion upstream development spend over the next decade, according
to new analysis by Wood Mackenzie prepared for ONS in Stavanger this
week. Current intense investor pressure on the upstream industry, resulting
in greater scrutiny of capital allocation and project screening, means
decisions over whether to invest in greenfield developments or incremental
projects are crucial. However, WoodMac finds that on a cost per barrel and
risk basis, incremental projects stack up favourably against new projects.

Lennert Koch, senior NW Europe upstream research analyst, says: As the
Norwegian Shelf is maturing and the government wants to increase overall
recovery rates from 50% to 60%, brownfield and incremental projects are
becoming more important. We estimate that incremental projects - such as
compression installations, infill drilling programmes and field
redevelopments - account for almost half the estimated $200 billion of
upstream development spend over the next 10 years.

WoodMac compared the economics of Norwegian greenfield developments
against those of five large incremental projects: sgard subsea compression,
Heidrun North Flank, Hod redevelopment, Ormen Lange subsea
compression and Valhall West Flank. Combined, these projects carry a total
investment of $11 billion and will add estimated reserves of 1 billion barrels
of oil equivalent, increasing the recovery factor of the initial fields by an
average of 9%, greatly contributing to the overall increase in recovery rates
for Norwegian fields.

The analysis reveals that while some of the projects WoodMac profiled are
challenging, their economics are in line with Norways greenfield
development. In fact, the average investment capex per barrel of these
projects is 30% lower and average rate of return is 18% which means a
reduced economic risk to the companies involved, in addition to the lower
perceived subsurface risk.
27 August 2014
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North Sea Reporter 27 August 2014


Rig Market

By John Kendall

Departure of Energy Endeavour may be delayed until April
Northern Offshore has demonstrated a measure of optimism that current client
Wintershall may exercise an outstanding six-month option with the jack-up Energy
Endeavour, as the contractor now the lists the rig as starting its next contract in
April 2015 with Rosneft, drilling in Russian waters.

Wintershalls current contract expires in early-November and features a dayrate
close to $160,000. The option, if exercised, is likely to involve a similar dayrate.
Meanwhile, when the Rosneft contract does get under way Northern confirms the
Endeavour will be on a higher rate of around $170,000. The contract with Rosneft
covers a firm period of 30 months.

Northern also has the Energy Enhancer under firm contract with Maersk Oil in
Denmark. The current commitment is firm until July 2015, with a one-year option.
The rig is on a dayrate of around $140,000 for the remainder of the firm period,
while a higher rate will apply to the option, if exercised. Due to Maersks forward
workload it seems there is a strong likelihood the operator will retain the rig
through to July 2016.

In contrast to recent negative market views indicating new contract activity could
dip over the next 12 months, not only in the North Sea but internationally too,
Northern has managed to strengthen the contract situation for its two jack-ups.
The contractor is also on course to expand its fleet with the newbuilds Energy
Engager and the Energy Encounter; both are being built by Chinas Dalian shipyard
and are due for delivery in February and August 2016 respectively.

Viking on contract with Lundin for multi-well programme
The N-class jack-up Rowan Viking is reported to be on contract with Lundin after
spending a 115-day period in a yard for inspection and modification work. Rowan
says the jack-up has just left port and will shortly begin the operators planned 15-
well drilling programme in the Norwegian sector.

Lundin has the rig fixed firm until March 2017 under two separate contracts. The
current one runs to January 2016 and features a $345,000 dayrate. The subsequent
deal is in direct continuation and leads to the rigs dayrate increasing marginally to
$355,000. The deal also contains provisions for an improved rate should the
contract exceed 1,000 days.

The contractor expects to have all its six-unit fleet active again by end-month, as
the high-spec Rowan Gorilla VIs departure from Rotterdam is imminent. The jack-
up has spent an extensive period in a yard undergoing repairs, inspection and
modifications, but this month the unit received clearance from Norways PSA to
return to work. The Gorilla VI has a long-term contract to fulfill with ConocoPhillips
that runs to February 2018; the fixture involves a confirmed dayrate of $350,000.

Endeavour on $170,000
rate for Rosneft contract
Rowan Gorilla fixed until
February 2018
North Sea Reporter 27 August 2014


Meanwhile, it seems plans for the Rowan Stavanger to drill in Norway have
changed. The jack-ups current contract was due to expire in September with the
rig then expected to head to Norway for a period of four months, which Rowan
reported as involving a much higher dayrate of $413,000. However, the rig now
looks set to stay in the UK sector until April next year, with its dayrate dropping to
$225,000 after September.

Rowans rig utilisation figure for 2015 has improved and stands at 72%. The
contractor has two rigs showing availability next year - the Rowan Gorilla VII and
the Rowan Stavanger. They end their current and respective commitments in June
and April 2015. The Rowan Gorilla V could also become available after June next
year if client Total elects not to exercise a one-year option with the jack-up.

Transocean confirms GSF Galaxy III completes Nexen contract
Transocean reports minimal changes regarding its North Sea fleet, but confirms the
high-spec jack-up GSF Galaxy III completes its contract with Nexen this month.
Indeed the rig is already thought to have left the Buzzard field where it is
understood to have been used briefly as an accommodation unit. The rigs dayrate
was reported to have been $180,000, although the latest update issued by
Transocean indicates the units final rate was $160,000. Transocean has no further
work lined up for the rig, which is believed to have entered a yard for inspection.
The Galaxy III is one of only four jack-ups Transocean now has operating in the
North Sea; all are classed as high-spec units.

The contractor also confirms the dayrate for the semi-submersible Transocean
Arctic has dipped marginally to $414,000 under its current contract with Rig
Management Norway (RMN). The rig is with RMN until January 2016 and will then
fulfill a six-month commitment with OMV, also in Norway, for which a notably
higher dayrate of $513,000 will apply.

A review of Transoceans North Sea rig utilisation position reveals its 2015 and
2016 figures for semi-submersibles have edged up to 70% and 20% respectively,
while its jack-up utilisation for the next two years stands at 37% and 25%.

In West Africa, VAALCO has fixed the semi-submersible GSF Celtic Sea on a one-well
contract that will start in November. The rig is currently drilling for ExxonMobil off
Angola; the contract expires in October. VAALCO will use the rig in the same sector
and has agreed to pay a dayrate of $338,000 for the short-term deal. At the
moment Transocean has no work lined up for the rig in 2015.

Totals remaining contract time (401 days) with the GSF Rig 135 has been
transferred to the semi-submersible Sedco Energy, which will start working for the
operator next month, drilling in Congos offshore sector. The Sedco Energy was
previously idle. Meanwhile, the GSF 135 has been allocated 198 days of contract
time from the Sedneth 701, which was drilling off Nigeria for state company NPDC.
Therefore the Sedneth 701 is currently believed to be idle.

West Tellus is off contract and arrives in Las Palmas
Seadrills drillship West Tellus, which only entered service in 2013, has completed a
contract drilling for Chevron off Liberia that featured a $635,000 dayrate. The
drillship is another unit now based in Las Palmas with no forward commitment.
Galaxy III appears to be
available this autumn
North Sea Reporter 27 August 2014


North Sea Rig Utilisation 27 August 2014
2014 2015 2016
Rig Co. Current
Rig Months
Rig Months
Rig Months
Awilco 2 24 (24) 100% 24 (23) 96% 24 (10) 42%
COSL 3 36 (36) 100% 36 (36) 100% 36 (32) 89%
Diamond 4 51 (40) 78% 60 (27) 45% 60 (12) 20%
Dolphin 6 66 (66) 100% 75 (72) 96% 84 (57) 68%
N. Atlantic 3 39 (39) 100% 48 (37) 77% 48 (19) 39%
Ocean Rig 1 12 (12) 100% 12 (12) 100% 12 (2) 17%
Odfjell 3 39 (39) 100% 48 (36) 75% 48 (24) 50%
Paragon 1 12 (12) 100% 12 (6) 50% 12 (0) 0%
Saipem 2 24 (24) 100% 24 (15) 62% 24 (12) 50%
Songa 3 36 (36) 100% 66 (66) 100% 84 (66) 78%
Stena 2 24 (24) 96% 24 (15) 50% 24 (1) 4%
Transocean 15 180 (161) 89% 180 (126) 70% 180 (37) 21%
TOTALS 45 543 (513) 94% 589 (472) 80% 636 (278) 44%
Jul-14 516 467 273
Jun-14 516 466 273
May-14 523 464 258
Apr-14 518 458 250
Mar-14 517 458 250
Feb-14 521 461 241
Jan-14 523 467 217
Dec-13 521 467 217
Nov-13 521 445
Oct-13 521 443
Sep-13 505 396
Aug-13 505 396
2014 2015 2016
Rig Co. Current
Rig Months
Rig Months
Rig Months
Ensco 10 116 (111) 96% 132 (116) 88% 132 (57) 43%
Hercules 0 0 (0) 0% 0 (0) 0% 6 (6) 100%
Maersk 9 117 (117) 100% 138 (118) 85% 150 (102) 68%
Noble 3 30 (30) 100% 36 (30) 83% 42 (20) 47%
N. Atlantic 3 32 (32) 100% 36 (36) 100% 36 (24) 66%
North Off. 2 24 (23) 66% 24 (7) 29% 24 (0) 0%
Paragon 7 84 (84) 100% 84 (37) 44% 84 (4) 5%
Prospector 0 7 (7) 100% 24 (24) 100% 24 (21) 87%
Rowan 6 72 (64) 89% 72 (52) 72% 72 (31) 43%
Transocean 4 48 (44) 92% 48 (18) 12% 48 (12) 25%
TOTALS 44 532 (512) 96% 594 (438) 74% 624 (277) 44%
Jul-14 508 432 271
Jun-14 508 435 265
May-14 510 424 254
Apr-14 514 424 248
Mar-14 514 423 248
Feb-14 496 372 220
Jan-14 490 372 220
Dec-13 481 360 220
Nov-13 465 329
Oct-13 475 328
Sep-13 471 299
Aug-13 426 299
North Sea Reporter 27 August 2014


NW European Shelf: Rig location & contract details
Rig Type Operator Block location Sector Dayrate
Contract expiry

WilHunter SS Hess 39/2 UK 385 11/15, yard then 275 day option
WilPhoenix SS Premier 205/26a UK 442 08/14 then Apache

COSLInnovator SS Statoil Troll 31/2 Nor 350-360 11/20 + 8x1 year options
COSLPioneer SS Statoil 34/8 Nor 312-322 08/16
COSLPromotor SS Statoil Troll W 31/5 Nor 350-360 01/21 + 8x1-year options

Ocean Guardian SS Shell 22/24b UK 350 07/15
Ocean Nomad SS Dana 210/24a UK 330 08/15 + 2 6-month options
Ocean Princess SS EnQuest 21/19 UK 300 09/14 then Ithaca, EnQuest

Ensco 70 JU RWE Dea 42/13a UK 170-173 12/14 yard then Maersk Oil
Ensco 71 JU Maersk Oil Halfdan Den 170-173 05/15 + 2x1 year option
Ensco 72 JU Maersk Oil 5505/17 Den 140-143 09/15 + 2x1 year options
Ensco 80 JU GDF SUEZ 44/12a UK 144-146 04/17
Ensco 92 JU ConocoPhillips UK 164-166 08/15
Ensco 100 JU Ithaca 30/6a UK 164-166 01/15 then Premier
Ensco 101 JU BP 22/24a UK 217-219 12/15
Ensco 102 JU ConocoPhillips 30/7a UK 210-213 06/16
Ensco 120 JU Nexen 20/1 UK 234-236 11/15
Ensco 121 JU Wintershall 5503/3 Den 230-233 06/16

Bideford Dolphin SS Statoil Nor 468 01/17
Blackford Dolphin SS MPX 9/14a UK 419 09/14
Borgland Dolphin SS Det norske (RMN) 34/7 Nor 521 09/17
Borgsten Dolphin SS Total 3/14a UK 202-240 05/16 + option
Bredford Dolphin SS Lundin (AGR) 16/4 Nor 442 09/15
Byford Dolphin SS BP 211/18a UK 345 04/16 + 3-year option

Maersk Giant JU Det norske 2/9 Nor 09/14 then Talisman
Maersk Guardian JU Lundin Brynhild 7/7 Nor 01/15 then Premier
Maersk Innovator JU ConocoPhillips Ekofisk 2/4 Nor 02/17 + 2x1-year options
Maersk Inspirer JU Statoil Volve 15/9 Nor 12/17
Maersk Reacher JU BP Valhall 2/8 Nor 09/16
Maersk Resilient JU ConocoPhillips 30/7a UK 08/16
Maersk Resolve JU DONG Hejre Den 02/17 + 2 well options
Maersk Resolute JU Hess South Arne Den 04/15 + four well options

Noble Hans Deul JU Shell 22/30b UK 242 08/16
Noble Regina Allen JU GDF SUEZ L/5 Neth 231 06/15
Noble Sam Turner JU Maersk Oil 5504/7 Den 215 07/16

West Elara JU Statoil Valemon 34/11 Nor 360 03/17 + 2-year option
West Epsilon JU Statoil Gudrun 15/3 Nor 286 12/16
West Hercules SS Statoil 497 01/17 + 1-year option
West Linus JU ConocoPhillips 2/4 Nor 375 05/19
West Navigator DS Shell 6407/9 Nor 589 09/14 then Centrica, then Russia
West Phoenix SS Total 206/1a UK 464 06/15
West Venture SS Statoil Troll W 31/2 Nor 441 07/15
North Sea Reporter 27 August 2014


NW European Shelf: Rig location & contract details (continued)
Rig Type Operator Block location Sector Dayrate
Contract expiry

Energy Endeavour JU Wintershall F/14 Neth 160 11/14 + option then Russia
Energy Enhancer JU Maersk Oil Gorm Den 140-143 07/15 + 1-year option
Leiv Eiriksson SS Total (RMN) 34/6 Nor 610 05/16
Deepsea Atlantic SS Statoil 33/12 Nor 560 08/15 + 2x1-year options
Deepsea Bergen SS Statoil Heidrun 6507/8 Nor 361 06/17 + 1-year option
Island Innovator SS Lundin 7220/11 Nor 04/15
Paragon B391 JU Centrica 43/18b UK 154 04/16
Paragon C461 JU ONE L/6 Neth 162 03/15
Paragon C462 JU GDF SUEZ L/10 Neth 168 01/15
Paragon C463 JU GDF SUEZ K/12 Neth 168 01/15
Paragon C20051 JU Total Neth 176 12/15
Paragon C20052 JU Dana F/6b Neth 180 02/15
Paragon HZ1 JU Wintershall 44/24b UK 168 06/15
Paragon MSS1 SS Nexen 20/1 UK 278 06/15
Rowan Gorilla V JU Total 29/5b UK 274 06/15 + 1-year option
Rowan Gorilla VII JU Apache 22/6a UK 254 06/15
Rowan Norway JU ConocoPhillips 2/4 Nor 361 07/16
Rowan Stavanger JU Talisman UK 250 09/14 then contract to 04/15
Rowan Viking JU Lundin Nor 345 03/17
Scarabeo 5 SS Statoil Visund 34/8 Nor 491 11/17
Scarabeo 8 SS Eni Goliat 7122/7 Nor 460 03/15

Stena Don SS Statoil Troll W 31/2 Nor 399 12/16
Stena Spey SS EnQuest 21/6b UK 06/15
Songa Dee SS Statoil Gullfaks 34/10 Nor 353 08/16
Songa Delta SS Statoil 25/11 Nor 360 11/16+ 1-year option
Songa Trym SS Statoil 35/11 Nor 368 03/16

GSF Galaxy I JU Total 22/30c UK 216 05/17
GSF Galaxy II JU GDF SUEZ 30/1f UK 193 03/15
GSF Monarch JU Perenco (GDF sublet) 53/2a UK 168 03/15
GSF Arctic III SS Chevron 13/22a UK 411 10/14
Paul B Loyd Jr SS BP 206/12a UK 441 07/17
Sedco 704 SS Maersk Oil 15/20a UK 383 02/16
Sedco 711 SS Talisman 22/29c UK 355 12/15
Sedco 712 SS Maersk Oil 30/17a UK 386 10/16 (sublet from Talisman)
Trans. Arctic SS RMN Nor 414 01/16 then OMV Norway
Trans. John Shaw SS TAQA 210/29a UK 361 12/15
Trans. Leader SS Statoil Nor 409 03/15 + 1-yr FPO
Trans. Prospect SS ConocoPhillips 21/3a UK 406 06/15
Trans. Searcher SS BG 34/3 Nor 395 05/15
Trans. Spitsbergen SS Statoil 7220/2 Nor 545 07/15 + 2-year FPO
Trans. Winner SS Marathon 24/9 Nor 456 07/16

North Sea Reporter 27 August 2014


NW Europe Rigs in port: still on contract / contract preparation / available / stacked
Rig Type Operator Current
Sector Dayrate
Contract expiry
JW McLean SS Invergordon UK Stacked
Ocean Vanguard SS Available for hire
Sedco 714 SS Total Nigg UK (439) Resumes contract 09/14
Trans. Barents SS Shell Stord Nor (602) Contract starts 10/14
GSF Galaxy III JU UK Inspection
Maersk Gallant JU Statoil Odense Nor Contract starts 08/14
Rowan Gorilla VI JU ConocoPhillips Rotterdam Neth (350) Imminent departure
NW Europe Rigs: Newbuilds
Ensco 122 JU NAM Rotterdam (230) Contract starts 4Q-14
Maersk Intrepid JU Total Westcon yard Nor (376) Contract starts 08/14
Prospector I JU Total Cromarty UK (185) On standby rate until 4Q-14
Prospector 5 JU Total Mobilising UK (218) Contract starts 09/14

Mediterranean & Black Sea: Rig location & contract details
Rig Type Operator Location Dayrate
Contract expiry
Atwood Beacon JU Eni Italy 185 01/16
Zagreb I SS Total Libya 09/14 + two well options
Ocean Endeavour SS ExxonMobil Black Sea 521 12/15
Ensco 5004 SS Mellitah Libya 300 01/17
Maersk Discoverer SS BP Egypt 500-534 07/16 + 1 year option
Noble Paul Romano SS Genel Morocco 420 12/14
Perro Negro 4 JU Petrobel Egypt 03/15
Scarabeo 4 SS Eni Egypt 08/14
Scarabeo 6 SS Burullus Egypt 12/14
Rig 105 JU Petrobel Egypt 70 12/15 + 5 month option
Comet JU Gupco Egypt 70 05/16
Key Manhattan JU Eni Italy 133 10/15
Rig 124 JU Gempetco/Amapetco Egypt 69 04/15
Rig 141 JU GUPCO Egypt 70 09/15
Stena Forth DS Hess Egypt 10/14

Rigs in port
GSF Dev. Driller SS Lukoil Romania (355) Contract start 10/14
Noble Homer Ferrington SS Malta Available
Transocean Amirante SS Malta Available

Stacked rigs & locations
Atwood Southern Cross SS Malta
D R Stewart JU Croatia
Deepwater Discovery DS Spain
Ensco 6000 SS Spain Being sold
Ensco 7500 SS Spain Being sold
GSF Arctic I SS Spain
Interocean III JU Egypt
Sedco 710 SS Spain
North Sea Reporter 27 August 2014


West Africa: Rig location & contract details
Rig Type Operator Location Dayrate
Contract expiry

Atwood Aurora JU Noble Energy Eq. Guinea 182 09/14 then Addax
Atwood Hunter SS CNOOC Eq. Guinea 337 11/14

Ensco DS1 DS Total Angola 357-359 01/16
Ensco DS2 DS Total Angola 437-439 10/14 then yard
Ensco DS6 DS BP Angola 547-549 02/18
Ensco DS7 DS Total Angola 634-636 11/16
Ensco 5001 SS PetroSA South Africa 284-286 01/15 + options - being sold

Hercules Resilience JU Perenco Congo 187-189 10/14

Ben Rinnes JU Sonangol Angola 232 07/16

Maersk Deliverer SS Chevron Angola 06/15
Maersk Endurer JU Addax Cameroon 137 11/14

N. Globetrotter II DS Shell Benin 461 09/23

Energy Searcher DS CAMAC Nigeria 265 05/15

Eirik Raude SS Lukoil Sierra Leone 09/14
Ocean Rig Olympia DS Total Angola 584 07/15
Ocean Rig Poseidon DS Eni Angola 07/16
Ocean Rig Skyros DS Total Angola 432 12/14

Deepsea Stavanger SS BP Angola 420 12/15 + 2x2 well options

Pacific Bora DS Chevron Nigeria 474 08/16
Pacific Khamsin DS Chevron Nigeria 660 12/15
Pacific Scirocco DS Total South Africa 495 01/15 + 2-year option

Paragon L782 JU SOCO Congo 125 09/14 then Marathon (Eq. Guinea)
Paragon L783 JU SAP Benin 145 10/14
Paragon M825 JU Perenco Cameroon (141) Starts late-August
Paragon M826 JU Perenco Cameroon 136 12/14

SSV Catarina SS Cobalt Energy Angola 06/16

Ralph Coffman JU Galp Morocco 243 09/14
Rowan Renaissance DS Repsol Namibia 619 04/17

West Setia SS Chevron (CABGOC) Angola 223 08/14
North Sea Reporter 27 August 2014


West Africa: Rig location & contract details (continued)
Rig Type Operator Location Dayrate
Contract expiry

Perro Negro 6 JU Chevron Angola n/k
Saipem 12000 DS Total Angola 08/17
Scarabeo 3 SS Addax Nigeria 03/15

West Capella DS Total Nigeria 627 04/17
West Eclipse SS Total Angola 450 01/15 + options
West Gemini DS Total Angola 656 10/17
West Leo SS Tullow Ghana 605 06/18
West Mischief JU Eni Congo 175 04/15
West Polaris DS ExxonMobil Angola 655 03/18
West Tellus DS Chevron Liberia 635 07/14 (possibly released)

Adriatic IX JU Afren Nigeria 160 04/16
Adriatic X JU Addax Nigeria 151 10/14
GSF Baltic JU ExxonMobil Nigeria 167 08/14
Trident XIV JU Chevron Angola 116 09/14 then Afren (Nigeria)

Cajun Express SS Cairn Morocco/Senegal 596 09/14 then CNR
Deepwater Discovery DS Shell Nigeria 461 09/14
Discoverer Luanda DS BP Angola 483 01/18
GSF Celtic Sea SS ExxonMobil Angola 328 10/14 then VAALCO
GSF Constellation II JU Total Gabon 162 09/15 then VAALCO (Gabon)
GSF Jack Ryan DS Lukoil Ghana 480 08/14
GSF Rig 135 SS Total Congo 387 08/14 then NPDC (from 11/14)
Sedco Express SS Eni Nigeria 455 10/14
Sedco 702 SS Shell Nigeria 461 02/16
Transocean Honor JU Chevron Angola 155 04/15
Transocean Marianas SS PetroSA South Africa 370 04/15

Rigs in port
Ensco 5000 SS South Africa Warm stacked - being sold
Ocean Confidence SS Las Palmas Maintenance until 02/15
Ocean Valiant SS Las Palmas Available
Sedco Energy SS Total Congo (395) Contract starts 09/14
Stena Carron DS Las Palmas Inspection / maintenance
Trident VIII JU Shebah (Nigeria) Gabon (168) Contract starts 08/14
West Tellus DS Las Palmas Available

Stacked rigs & locations
Ensco 5003 SS Namibia
GSF Aleutian Key SS Gabon
Hercules 260 JU Gabon
Noble Don Walker JU Cameroon

North Sea Reporter 27 August 2014



EIC report gives signs of hope despite decline in contract awards
Despite the mature status of the UKCS and the Norwegian Shelf (NCS), successful
exploration drilling campaigns combined with redevelopment and enhanced
recovery programmes mean more players than ever have converged on the North
Sea in recent years, leading to renewed optimism about opportunities in the
region. However, rising costs generally and tax changes in Norway have seen the
number of contract awards so far this year assume a downward trend. These are
the findings from the Energy Industry Councils (EIC) latest report into contracting
activities in both sectors based on EICDataStream, the global project database that
tracks over 10,000 active and future projects worldwide.

According to EICDataStream, there are currently 271 projects proposed or under
development on the UKCS and NCS, worth a total potential investment of $262.3
billion. Between January 2010 and July 2014 482 major contracts (FEED, EPC and
SURF) were awarded, 203 engineering, procurement & construction contracts, 170
subsea, subsea/umbilical/riser/flowline contracts and 109 FEED contracts.
However, based on figures so far this year, the number of EPC contracts has
suffered the most serious decline since 2012, followed by the number of
subsea/SURF contracts, although the number of FEED contracts awarded so far in
2014 is close to reaching 2013 figures.

Taking a closer look at contracting levels, activity in Norway peaked in 2011-2012
and has entered a fairly rapid decline since, with just six major contracts awarded
in 2014 up until July. Activity in the UK also peaked in 2011, but has declined at a
steadier rate, with 16 major contracts in 2014 up until July. In contrast with the UK,
where the government has introduced a number of tax allowances in the last few
years, the Norwegian offshore industry is being affected by the introduction of new
tax rules in 2013, in addition to high costs. As a result, a number of operators are
delaying projects to reconsider development concepts under the new tax regime,
Statoils Snorre and Johan Castberg projects being two examples.

Nevertheless, while both the UKCS and NCS have seen a decline in contract
activity, the report shows there are still reasons for optimism and that offshore UK
and Norway will continue to see high levels of activity, says Neil Golding, EIC head
of oil & gas. The focus on enhanced recovery, increase in tie-ins between marginal
fields, the hoped for rise in exploration drilling, as well as the continued
commitment to development from operators will provide key engines for growth
over the next few years. However, this can only be achieved with government
support for the UK and Norwegian offshore industry, he adds.

On the UKCS, BP has led contracting activity in recent years, awarding 35 major
contracts across seven North Sea developments. It is joined by Nexen, Talisman,
Statoil, GDF SUEZ, EnQuest, Total, Ithaca, Chevron, Premier Oil and ConocoPhillips.
Statoil leads contracting activity on the NCS, awarding 144 major contracts across
37 developments, although this is not surprising given that it controls 70% of
Norways oil and gas production. It is followed by ConocoPhillips, Det norske, Total,
Shell, BG, Marathon, Lundin, Eni and Premier Oil.

North Sea Reporter 27 August 2014


The most successful contractors in 2010-2014, based on the number of contract
awards, are Technip (25) and Subsea 7 (21) in the UK and Aker Solutions (40) and
Technip (25) in Norway. In the UK and Norway, we have seen a reduction in the
number of major contract awards placed during the last 12 months. For both
countries, the rise in contracting costs across the North Sea has played a major role
in the slowdown of activity, says Golding.

Golding adds: Although no development has to date been cancelled in either of
these provinces, there have been a number of delays and postponements to
projects as operators return to concept plans and review the economics of
developments. However, the introduction of tax allowances in the UK and an
increase in discoveries made off Norway in 20132014 will hopefully have a
positive impact on contracting activity in the near future.

ATR is set to introduce new state-of-the-art compressor technology to the
Norwegian market following a 7 million ($11.6 million) investment in its rental
fleet. The company is supplying DNV 2.7-2 Norsok Z-015 and Atex standard zone II
compressors to the Norwegian sector and has invested in an initial 20 units.
Designed to deliver a raft of improved safety and operating features as well as
significantly reduced noise emission levels, the first compressors are scheduled for
delivery in September. ATR is also looking to expand into The Netherlands as well
as several other key strategic areas. A further six units have been commissioned
and are expected to be shipped to its facility in the Caspian region before the end
of next month.

DONG Energy, in a first-half 2014 interim results statement today (Wednesday),
reports the supporting foundation of the platform for the HPHT Hejre field, in
Danish North Sea block 5603/28, has been installed and drilling of the first
production well has started. However, although pipeline activity and an extension
of the oil terminal in Fredericia are ongoing, topsides work is posing a number of
challenges because of delays in the supplier consortium. As a result, first
production from the field is expected to slip from end-2015 to 2017. Meanwhile,
DONG is still awaiting regulatory approval for the Siri storage tank following
completion of repair work on the platform in July which allowed a partial
resumption of production (NSR 286/15).

Statoil is engaged in a four-week familiarisation process with contractors for the
drilling package for the giant Johan Sverdrup field, off Norway, with a formal
bidding process expected to begin shortly.

Swire Oilfield Services has launched OverVu

, the industrys first full-service track

and trace solution. The state-of-the-art software application platform allows
companies to identify, locate and track assets and equipment across the globe
through a web browser. Nick Coaton, general manager of Swires Track & Trace
Solutions business, says: Supply chain inefficiency is a significant issue for the
industry and one that is only set to become greater as operations move into more
challenging environments.

North Sea Reporter 27 August 2014


North Sea Construction Activity 27 August 2014
Recent awards
Operator Sector Field Type of work Value Contractor
Eni Nor Goliat Pipeline, process services NKr500m+ IKM
Statoil Nor Oseberg future Subsea on slim legs - Kvaerner

Current and future construction projects
Operator Sector Field Block(s) Oil/Gas Type of development
Apache UK Forties increment 21/10, 22/6a, 21/9 o Platform
Antrim UK Fyne 21/28a o SPAR
BG Nor Knarr 34/3 o/g FPSO
BP UK Clair Ridge 206/8 o/g Platforms
BP UK Quad 204 204 o Replacement FPSO
Dana UK Western Isles 210/24a o Floater
DEO UK Perth 15/21a, b, c o/g FPSO
Det norske Nor Ivar Aasen 16/1, 25/10 o/g FPSO/platform
EOG UK Conwy/Corfe 110/12 o Platform
Eni Nor Goliat 7122/7, 8, 9, 10, 11, 7123/7 o/g Floater
EnQuest UK Alma/Galia 30/24b, 30/24c, 30/25c o/g FPSO
EnQuest UK Kraken 9/2b o FPSO
GDF SUEZ UK Cygnus 44/11a, 44/12a g Platforms
Ithaca UK Greater Stella 30/6a, 29/10d & 29/10b o/g/c Floater
Lundin Nor Edvard Grieg 16/1 o/g Platform
Maersk UK Culzean 22/5 g Platforms
Maersk DK Tyra SE expansion 5504/12 o Platform
Nexen UK Golden Eagle 20/1 o Platforms
Premier Nor Bream 17/12 o FPSO?
Premier UK Catcher 28/9 o FPSO
Premier UK Solan 205/26a o Subsea + platform
Statoil Nor Aasta Hansteen 6706/2 & 6702/12 g/c SPAR with storage
Statoil Nor Gina Krog 15/5 o/g/c Platform
Statoil N or Johan Sverdrup 16/2, 16/3, 16/5 o/g Field centre + plats
Statoil UK Mariner 9/11a o PDQ + FSU
Statoil Nor Snorre C 34/4, 34/7 o Minimum process TLP
Talisman UK MonArb 22/18 o Platform
Total Nor Martin Linge 30/7, 29/9, 30/4, 29/6 o/g/c WPQ + FSU
Total UK Franklin West (2) 29/5b, 29/4d g Platform
Total UK Laggan-Tormore 206/1a, 205/5a g/c Subsea to onshore plant

2014 start-ups
Operator Sector Field Block(s) Oil/Gas On stream date
Centrica UK Kew 49/4c, 49/5b g January
GDF SUEZ NL Amstel Q/13a o February
GDF SUEZ UK Juliet 47/14b g January
Statoil Nor Gudrun 15/3 l/g April
o oil, g gas, c condensate, l - liquids

North Sea Reporter 27 August 2014



Eni contracts IKM for Goliat pipeline, process services
Eni has awarded IKM Testing a frame contract, for three years, plus two, two-year
options, for pipeline and process services for the Goliat field, in the Barents Sea, off
Norway. The contract is worth over NKr500 million ($81 million), including the
options. The work is divided into two main phases, comprising pipeline and process
services during the operational readiness phase (project scope) and the operational
phase (operations scope). The project scope phase will start immediately and will
involve considerable work with engineering and commissioning of subsea pipelines
and potential completion of process systems.

During the operational phase the contract includes routine pipeline pigging and
pipeline inspection pigging, in addition to topsides process support and
maintenance services such as pressure testing, nitrogen, inspection, steam and
machining services, chemical cleaning, hot oil flushing, hydro jetting and bolt
tensioning. IKM will carry out the majority of engineering and preparation work at
its head office in Sola, with a number of operations and services also being handled
through its Hammerfest base.

Statoil awards Kvaerner Oseberg platform concept study
Statoil has awarded Kvaerner a concept study for a standardised, unmanned dry
tree wellhead platform for the Oseberg future development project. The concept is
focused on minimisation of facilities, equipment and costs down to water depths of
150 metres to offer a cost-effective solution compared with a conventional subsea
tieback. Kvaerner has been working on developing a cost-efficient, standardised
wellhead platform concept called Subsea on a stick for some time. It says the new
wellhead platform could both increase recovery and use the new generations of
jack-up drilling rigs, as well as reduce development costs.

The project is expected to be the first in a series from Statoil where unmanned
wellhead platforms could replace a traditional subsea solution within the
applicable water depths. We fully support the need for cost reductions within the
industry and believe this solution could contribute to significant cost savings. We
have implemented comprehensive improvements within our business over the last
two years and this new concept would be especially suited for future fast-track
delivery from our facilities at Verdal in Norway, says Sverre Myklebust, executive
vice-president for Kvaerners jackets business area. Kvaerner is carrying out work
on the study, which has already started, in Oslo, with support from the jackets
technology engineering team. Completion is scheduled for November, with
concept selection expected by end-year.

BP has contracted Asset Guardian Solutions, which specialises in protecting process
critical software assets, under a global framework agreement for the Clair Ridge
project, in west of Shetland block 206/8. BP will use the Asset Guardian toolset to
improve the performance and security of the process control software it will use
throughout the project and to operate assets associated with the Clair Ridge field
development when it is fully operational. Clair Ridge will comprise two bridge-
linked platforms and new pipeline infrastructure to connect to processing facilities
in Shetland. The development is the first sanctioned large-scale offshore enhanced
North Sea Reporter 27 August 2014


oil recovery scheme to use reduced salinity water injection (LoSal

EOR) to extract a
higher proportion of oil over the life of the field.

Det norske has awarded Plexus a contract, worth about 1 million ($1.7 million), to
supply POS-GRIP surface wellhead and mudline equipment services for an HPHT
appraisal well off Norway. The contract, which has a planned duration of 80 days, is
expected to start before end-year.

Det norske, OMV and VNG have awarded AGR contracts, worth $1 million, to
deliver software solutions to manage the time, risk and cost of well operations off
Norway. Under the contract, AGR will supply software products P1, a probabilistic
planning tool for managing time and risk of well operations, CT , a real-time cost
tracker, and newly developed iQ, designed to simplify the planning and
execution of wells and which has been nominated for the innovation award at ONS
in Stavanger this week.

GDF SUEZ has contracted Asset Guardian Solutions to provide a fully configurable
process software management programme for the Cygnus field development, in UK
southern basin blocks 44/11a and 44/12a. The tool set will enhance management
and security of all process control software used to manage all assets associated
with the project. First gas from Cygnus is targeted for late-2015.

Petrobras has awarded Farstad Shipping a contract, for four years, with an option
for up to four years, for the AHTS BOS Topzio for operations off Brazil. The
contract, worth about NKr375 million ($60.7 million), excluding options, runs from
this month.

Petrobras has awarded Wood Group Kenny (WGK) contracts, worth over $2 million
in total, for work on the pre-salt Lapa field, off Brazil. One contract comprises
conceptual engineering studies of two options for pipeline heating systems - water-
heated pipe-in-pipe and electrically trace-heated pipe-in-pipe. WGKs scope
includes flow assurance analysis, mechanical and installation design, thermo-
mechanical analysis, material selection and technological gap evaluation. Cost
assessment and an installation capabilities survey will also be carried out. The
second contract will focus on engineering support to provide conceptual, basic and
detailed design. In addition, WGK will be responsible for a set of engineering
studies to be carried out within the contract period. The Lapa field, in block BM-S-
9, has estimated recoverable reserves of 459 million barrels of oil equivalent.

Premier Oil has awarded Costain Upstream a three-year contract extension, worth
12 million ($19.9 million), to provide project and technical support across its
assets, including the Catcher development. On Catcher, Costain Upstream will
provide development engineering and consultancy support in various technical
areas, including subsea infrastructure and floating production.

Saipem has awarded Bureau Veritas a contract to provide classification and
certification services for the two FPSOs for Totals Kaombo development, in block
32, off Angola. Saipem is EPIC contractor for the converted turret-moored FPSOs
for the $4 billion development. Bureau Veritas will oversee the conversion of the
vessels and class the floaters in service, while certifying the topsides and turret
assemblies. Two VLCCs will be converted into FPSOs at Sembawang Shipyard,
North Sea Reporter 27 August 2014


Singapore. Each will have an oil treating capacity of 115,000 b/d, a water injection
capacity of 200,000 b/d, a 100 MMcfd gas compression capacity and a storage
capacity of 1.7 million barrels of oil. Some work in connection with engineering,
procurement, topsides modules fabrication and integration as well as onshore and
offshore commissioning work will be carried out in Angola. Topsides fabrication will
be undertaken at Saipems Karimun Island Yard, in Indonesia. The first FPSO is
scheduled to be operational by first-quarter 2017 and the second by second-
quarter 2017.

Wuchang Shipbuilding Industry, China, has awarded Ulstein a contract to design
and equip four newbuild PX121 type PSVs, plus an option for a further four, for
Singapore-based shipowner Otto Offshore. The vessels, scheduled for delivery in
2016, will measure 83.4 metres long and 18 metres wide and will have a cargo deck
of 840 sq metres and a load capacity of 4,000 tonnes. Each will have
accommodation for 30 crew and be equipped with DP2.
Field development

Statoil reports the Aasta Hansteen development, in Norwegian Sea block 6707/10,
is on schedule for first production in third-quarter 2017. Together with Polarled,
the project is moving the boundaries for technology, deep waters and ripple effects
on the Norwegian Shelf, it says. Investment
in the two projects is estimated at NKr57
billion ($9.2 billion) in total. The hull and
the topsides for Aasta Hansteen, which
secured PDO approval in 2013, are being
built in South Korea, while the equipment
packages and subsea facility and pipeline
equipment are being delivered globally. The
first offshore work started this summer
with laying of a fibre-optic cable by
DeepOcean and installation of rocks on the seabed for the pipeline. More than half
of the equipment packages for the topsides are being delivered by Norwegian-
based suppliers, while 93% of the subsea equipment is also being provided by
suppliers in Norway. (Illustration: Aasta Hansteen platform)

Total is facing a delay in starting up production from the Laggan-Tormore
development, in west of Shetland blocks 206/1a and 205/5a, as a result of
problems in the construction of the gas treatment plant at Sullom Voe, partner
DONG Energy reports today (Wednesday) in a first-half 2014 interim results
statement. DONG expects first production to will be postponed from the end of
this year to 2015.

Norway has potential 10 billion boe of undeveloped reserves
Norway has 10 billion barrels of oil equivalent of discovered reserves which have
still to be developed, 60% of which could be commercially viable, potentially
North Sea Reporter 27 August 2014


adding $106 billion to the country's oil and gas industry revenues, according to
Wood Mackenzie. The consultant cautions, however, that bringing the reserves
into production presents significant technical and commercial challenges.

In its most recent upstream analysis, unveiled at ONS in Stavanger this week,
WoodMac shows the undeveloped reserves are held within 206 discoveries,
ranging in size from under 1 million boe to the giant 2.4 billion boe in Johan
Sverdrup and spread across the Norwegian Shelf, with half in the North Sea and the
remainder divided equally between the Norwegian Sea and the frontier Barents
Sea. Although the reserves are at different stages of evaluation, WoodMac says
over half could be developed, generating significant returns.

James Webb, WoodMac NW Europe upstream analyst, says: We consider 4.8
billion boe likely to be economic, 1.6 billion boe potentially economic and the
remaining 3.6 billion boe not commercial and therefore will remain undeveloped.
From this we estimate the volumes in the likely and potentially economic
discoveries represent $22 billion of potential value for companies in the sector and
$84 billion in tax revenue alone for the Norwegian government, excluding the
profits of Statoil and the state direct financial interest.

However, Webb notes that among the technical and commercial challenges which
could threaten the development of the discoveries are low reserves, lack of
infrastructure and/or complex geology. Commercially, the global upstream
industry faces an extremely difficult economic environment. Investors are
increasingly demanding bigger dividends and better rates of return. As a result
many companies have committed to stricter capital discipline and are intensely
screening projects based on financial criteria. Capital intensive projects are
particularly being scrutinised. This means more difficult projects could be delayed
and in some circumstances will simply remain undeveloped.

WoodMac also suggests recent exploration success in Norway has hindered the
pace of the development of the discoveries. Over the last five years the average
size of new discoveries has been greater than the average undeveloped field and
therefore new fields have been prioritised, says Webb. In keeping with the capital
discipline theme, complex developments such as HPHT are also being delayed in
favour of more straightforward projects. Nevertheless, despite the obvious
obstacles WoodMac says the pipeline of future developments in Norway is strong.

Statoil has resumed production from the Troll C platform following a shutdown on
17 August after an inspection programme detected corrosion damage to a pipe
connected to the oil export system. The
pipe has been replaced. Output from Troll
C averages around 58,000 b/d of oil and 8
MMcmd of gas. In addition the platform
handles about 34,000 b/d of oil and 2
MMcmd of gas from the Fram field. Partner
interests in Troll, which straddles blocks
31/2, 31/3, 31/5 and 31/6, are Statoil
(operator) 30.583850%, Petoro 56%, Shell
North Sea Reporter 27 August 2014


8.101450%, Total 3.690960% and ConocoPhillips 1.623740%, while interests in
Fram, in blocks 35/11 and 31/2, are Statoil (operator) 45%, ExxonMobil 25%, GDF
SUEZ 15% and Idemitsu 15%. (Photo: Troll C )

Exploration, appraisal, development activity update
There has been little change in the past week regarding current UK E&A drilling
activity, with seven wells active. Among these only two operators are commenting
on their respective wells progress. Maersk Oil on 22 August plugged Balloch
appraisal 15/20a-20 (TD 11,261 feet) and later the same day the Sedco 704
spudded sidetrack well 15/20a-20z; the current depth is 9,886 feet. BP confirms
the Paul B Loyd Jr continues to operate at TD (11,023 feet) in Clair appraisal
206/12a-4. A round-up of all other drilling is as follows:

BP has the Ensco 101 operating at a TD of 13,815 feet in Marnock/Skua
development well 22/24a-A8. It also has the Byford Dolphin operating in the Don
field, in block 211/18a.

Centrica is drilling Pegasus West appraisal well 43/13b-7 with the Paragon B391.
The well is tight and has been active since mid-July. The operator confirms the rig
will drill a Grove appraisal well next.

Chevron has the GSF Arctic III on Captain. The rig has one more well to drill after
recently completing 13/22a-B30; the rig is with Chevron until October.

ConocoPhillips continues to operate Jasmine well 30/7a-S7 with the Ensco 102. The
Maersk Resilient is operating Joanne 30/7a-M12, while Brodgar development well
21/3a-H3, which spudded back in early-June, is still being operated by the
Transocean Prospect.

EnQuests well workover on Mallard, in block 21/19, is ongoing with the Ocean
Princess. The operation is expected to continue until mid-September.

GDF SUEZ is operating Marconi exploration well 30/1f-13y with the GSF Galaxy II;
the current sidetrack spudded on 16 August. The Ensco 80 is on location on Cygnus
in block 44/12a and is preparing to start a batch-drilling programme.

Ithaca is drilling Stella development well 30/6a-B2z with the Ensco 100. The
plugged 30/6a-B2 well is believed to have been the pilot hole, while B2z is likely to
be the main well penetrating the Stella reservoir.

Maersk Oil, in addition to the already mentioned Balloch appraisal, 15/20a-20z, has
the Sedco 712 abandoning a James development well in central block 30/17a.

For MPX, the Blackford Dolphin is drilling Aragon exploration well 9/14-15a; the
well has been active since mid-July and remains tight.

Nexen has two development wells active, both on Golden Eagle. The Ensco 120 is
drilling 20/1-G2 and 20/1-S1 is being drilled with the Paragon MSS1.
North Sea Reporter 27 August 2014


RWE Dea says the Ensco 70 continues with the completion of Breagh development
well 42/13a-A8, which reached a TD of 10,420 feet.

Shell reports the Noble Hans Deul is abandoning Shearwater well 22/30b-A9;
operations started on 6 August. The operator also has the Ocean Guardian
abandoning development well 22/24b-S1z.

Talisman confirms the Sedco 711 remains operating in Seagull exploration well
22/29c-8y, another tight hole.

Total says the West Phoenix is preparing to test Laggan development well 206/1a-
L1x. Meanwhile, the Rowan Gorilla V is conducting clean-up and perforating
operations in Franklin West 29/5b-H1z, while the GSF Galaxy I is abandoning Elgin

Wintershall has the Paragon HZ1 operating in Wingate development well 44/24b-
A4; the last confirmed depth was 11,299 feet.

In Norway, Lundin Petroleum has been granted NPD approval to drill Lindarormen
exploration well 6405/12-1 (PL584) with the Bredford Dolphin following completion
of current Luno II Central appraisal 16/4-8S, which has been in progress since June.
The well will be drilled about 80 km northeast of the Ormen Lange field. Partner
interests in PL584, which also covers blocks 6405/9, 6406/7, 6406/10, 6305/3 and
6306/1, are Lundin (operator) 60% and Bayerngas 40%.

Statoil yesterday (Tuesday) spudded Isfjell exploration well 7220/2-1 (PL714),
about 35 km north of the Johan Castberg discovery, in the Barents Sea, with the
Transocean Spitsbergen, which had previously drilled Pingvin exploration well
7319/12-1 to a depth of 936 metres. The Isfjell well, which has a planned duration
of about 30 days, has reached a depth of 520 metres after 36-inch hole was drilled
to 501 metres. On completion, the rig will return to Ensis exploration well 7125/4-
3, recently suspended at the 9-inch casing. Partner interests in PL714, which also
covers block 7220/3, are Statoil (operator) 50%, Eni 30% and Petoro 20%.

Meanwhile, Statoil has been granted PSA approval to drill appraisal well 25/8-18S
(PL169) with the Transocean Leader. The well, which has a planned duration of 33
days, will be drilled 12 km northwest of the Grane field. Partner interests in PL169,
which also covers block 25/11, are Statoil (operator) 57%, Petoro 30% and
ExxonMobil 13%.

In The Netherlands, GDF SUEZ reports the Paragon C463 is drilling development
well C5 from the K/12-C platform. Elsewhere, the Noble Regina Allen has drilled
12-inch hole to section TD at 4,857 metres in development well L/5-D3 and is
preparing to run 9-inch casing. In exploration well L/10-37, the Paragon C462 has
run and cemented 9-inch casing at 4,889 metres and is drilling ahead in the 8-
inch hole section.

NAM reports the Swift 10 continues operating at a depth of 1.938 metres in
exploration well L/9-FA106.

For ONE, the Paragon C461 is abandoning L/6d after which a pipeline pigging
operation will be carried out. The rig will then return to development well M/7-8.
North Sea Reporter 27 August 2014


NW Europe Offshore Drilling Activity 27 August 2014
Well Operator Rig Well Type Spud Status

E&A wells
9/14a-15a MPX Blackford Dolphin Exp Aragon 14.07.14 Drilling
15/20a-20 Maersk Oil Sedco 704 App Balloch 26.07.14 Operating @ TD 11,261ft
15/20a-20z Maersk Oil Sedco 704 App Balloch 22.08.14 Operating @ 9,886ft
22/29c-8y Talisman Sedco 711 Exp Seagull 05.08.14 Operating
30/1f-13y GDF SUEZ GSF Galaxy II Exp Marconi 16.08.14 Drilling
43/13b-7 Centrica Paragon B391 App Pegasus W. 14.07.14 Drilling
53/2a-15 Perenco GSF Monarch Exp Leman South 18.07.14 Drilling
206/12a-4 BP Paul B Loyd Jr App Clair 18.06.14 Operating @TD 11,023ft

Development well
13/22a Chevron GSF Arctic III Dev Captain On location
20/1-G2 Nexen Ensco 120 Dev G. Eagle 22.06.14 Drilling
20/1-S1 Nexen Paragon MSS1 Dev G. Eagle 22.07.14 Drilling
21/3a-H3 ConocoPhillips Trans. Prospect Dev Brodgar 04.06.14 Drilling
21/19 EnQuest Ocean Princess Dev Mallard 18.06.14 Workover
22/6a Apache Rowan Gorilla VII Dev Forties On location
22/17-T27 Talisman Rowan Stavanger Dev Godwin 18.12.13 Rig moved off location
22/24a-A8 BP Ensco 101 Dev Marnock/Skua 14.06.14 Operating @ TD 13,815ft
22/24b-S1z Shell Ocean Guardian
30.07.14 Abandonment
22/30b-A9 Shell Noble Hans Deul Dev Shearwater 06.08.14 On location
22/30c-G1 Total GSF Galaxy I Dev Elgin 21.05.14 Abandonment
29/5b-H1z Total Rowan Gorilla V Dev W. Franklin 01.05.14 Rig on standby
30/6a-B2z Ithaca Ensco 100 Dev Stella 13.08.14 Drilling
30/7a-M12 ConocoPhillips Maersk Resilient Dev Joanne 15.06.14 Drilling
30/7a-S7 ConocoPhillips Ensco 102 Dev Jasmine 09.07.14 Drilling
30/17a Maersk Oil Sedco 712 Dev James 16.08.14 Well abandonment
39/2 Hess WilHunter Dev Fergus 10.05.13 Well abandonments
42/13a-A8 RWE Dea Ensco 70 Dev Breagh 22.06.14 Completing. TD 10,420ft
44/12a GDF Ensco 80 Dev Cygnus On standby location
44/24b-A4 Wintershall Paragon HZ1 Dev Wingate 04.07.14 Drilling @ 11,299ft
205/26a-8v Premier WilPhoenix Dev Solan 13.05.14 Operating
206/1a-L1z Total West Phoenix Dev Laggan 14.08.14 Installing production tree
210/24a Dana Ocean Nomad Dev On location
210/29a-7 TAQA Trans. John Shaw Dev Cladhan 18.07.14 Operating in 8" hole
211/18a BP Byford Dolphin Dev Don On location

E&A wells
2/9-5S Det norske Maersk Giant Exp Heimdalsh 21.07.14 Operating
16/4-8S Lundin Bredford Dolphin App Luno 2 Central 19.06.14 Operating
34/6-3S Total Leiv Eiriksson App Garantiana 2 30.05.14 Testing
34/7-36S Det norske Borgland Dolphin Exp Kvitvola 28.07.14 Operating
7220/2-1 Statoil Trans Spitsbergen Exp Isfjell 26.08.14 Drilling @ 520 metres
7220/11-1 Lundin Island Innovator Exp Alta 06.08.14 Drilling
7319/12-1 Statoil Trans Spitsbergen Exp Pingvin 16.08.14 Susp @ 936 metres

North Sea Reporter 27 August 2014


NW Europe Offshore Drilling Activity 27 August 2014 (continued)
Well Operator Rig Well Type Spud Status

Norway (continued)
Development wells
2/4-B ConocoPhillips Rowan Norway Dev Ekofisk Operating
2/4-M11A ConocoPhillips Maersk Innovator Dev Ekofisk 13.07.14 Completed 10.08.14
2/4-Z13 ConocoPhillips West Linus Dev Ekofisk 10.07.14 Operating
2/8 BP Maersk Reacher Dev Valhall Operating
7/7-A3AH Lundin Maersk Guardian Dev Brynhild 25.05.14 Operating
15/3-A5A Statoil West Epsilon Dev Gudrun 29.06.14 Completed 14.08.14
15/9-F1C Statoil Maersk Inspirer Dev Volve 22.02.14 Completed 25.03.14
24/9-M2H Marathon Trans Winner Dev Byla 25.06.13 Operating
25/11-H4BH Statoil Songa Delta Dev Svalin 15.04.14 Completed 18.05.14
31/2-E6EY3H Statoil West Venture Dev Troll West 28.05.14 Operating
31/2-N21AY4H Statoil COSLInnovator Dev Troll West 30.07.14 Operating
31/2-Y14BY2H Statoil Stena Don Dev Troll West 03.08.14 Operating
31/5-I13AY1H Statoil COSLPromoter Dev Troll West 11.07.14 Operating
33/12-N1AH Statoil Deepsea Atlantic Dev Gullfaks S 13.05.14 Operating
34/3-A1H BG Trans Searcher Dev Knarr 17.07.13 Completed 08.05.14
34/7-B2AH Statoil Bideford Dolphin Dev Vigdis 30.03.14 Completed 19.04.14
34/8 Statoil COSLPioneer Dev Visund Operating
34/10-I4AH Statoil Songa Dee Dev Gullfaks 04.08.14 Operating
34/11-B2 Statoil West Elara Dev Valemon 21.02.14 Operating
35/11-A31AY2H Statoil Songa Trym Dev Fram 25.05.14 Operating
6407/1-A3AY1H Statoil Transocean Leader Dev Tyrihans 29.05.14 Completed 08.07.14
6407/2-Z4H Statoil Deepsea Bergen Dev sgard 01.05.14 Completed 26.07.14
6407/9 Shell West Navigator Dev Draugen Operating
6507/8-F1AH Statoil Deepsea Bergen Dev Heidrun 04.08.14 Operating
7122/7-F4H Eni Scarabeo 8 Dev Goliat 02.08.14 Operating

F/6-5 Dana Paragon C20052 Exp 07.08.14 Operating
F/14-8 Wintershall Energy Endeavour Exp 07.08.14 Operating
K/12-C2 GDF SUEZ Paragon C463 Dev Completed slot recovery
K/12-C5 GDF SUEZ Paragon C463 Dev Drilling
L/5-D3 GDF SUEZ Noble Regina Allen Dev re-entry 30.05.14 Drilling @ 4,857 metres
L/6d ONE Paragon C461 Dev re-completion Abandoning
L/9-FA106 NAM Swift 10 Exp 10.08.14 Op @ 1,938 metres
L/10-37 GDF SUEZ Paragon C462 Exp 16.06.14 Drilling @ 4,889 metres

Chabazite Wintershall Ensco 121 Exp 20.06.14 Operating @ 2,755 metres
Gorm-N4A Maersk Oil Energy Enhancer Dev 07.07.14 Workover
Half-HDA29A Maersk Oil Ensco 71 Dev 30.07.14 Workover
Hejre-HA1 Maersk Oil Maersk Resolve Dev 11.07.14 Drilling
S Arne-SAN7 Hess Maersk Resolute Dev Drilling
Siah NE-1X Maersk Oil Noble Sam Turner Exp Drilling
Tyra SE-B Maersk Oil Ensco 72 Dev Operating

North Sea Reporter 27 August 2014


NW Europe: Planned Drilling

Block Operator Rig Type Prospect Spud
9/2b EnQuest Ocean Princess App Kraken 3Q 2014
21/10 Apache Rowan Gorilla VII Exp Les Arcs 3Q/4Q 2014
22/16 GDF SUEZ GSF Galaxy II Exp Dalziel 3Q 2014
15/27a Nexen Exp Ravel 3Q 2014
28/15b Statoil Exp Wall 3Q 2014
29/3b Total Rowan Viking Exp Corfe 3Q 2014
42/15a RWE Dea Ensco 70 App Crosgan 4Q-2014
49/10a Centrica Paragon B391 App Grove 4Q 2014
206/12a BP Paul B Lloyd Jr App Clair 3Q 2014

1/2-3 ConocoPhillips Maersk Gallant Exp Pelikan 2014
2/4-22S, 22A Statoil Maersk Gallant Exp Romeo September
3/7 Premier Exp Myrhauk 4Q 2014
8/10 Centrica Maersk Guardian Exp Butch E 2H 2014
16/1, 4 Lundin Exp Fignon 4Q 2014
25/5 Total Leiv Eiriksson Exp Greip 2014
25/8-18S Statoil Transocean Leader App 2014
25/8-19S ExxonMobil West Alpha Exp Prince November
25/10-12 Lundin Island Innovator Exp Kopervik November
30/11-10, 10A Statoil Transocean Leader Exp Krafla North/Main September
33/2-1 Lundin Transocean Arctic Exp Storm October
33/9, 12 Lundin Island Innovator Exp Vollgrav South 4Q 2014
34/3-4S BG Transocean Searcher Exp Jordbaer SE 4Q 2014
35/9 RWE Leiv Eiriksson Exp Atlas 3Q 2014
6305/8-2 Shell Transocean Barents App Orm Lange D Far South September
6405/12-1 Statoil Bredford Dolphin Exp Lindarormen September
6406/2-8 Wintershall Transocean Arctic Exp Imsa 2014
6406/6-4 Maersk Leiv Eiriksson Exp Tvillingen South 3Q 2014
6607/12 Total Leiv Eiriksson App Alve North 2014
6707/10-3S Centrica West Navigator Exp Ivory 2H 2014
7227/8, 9, 10 Statoil Exp Saturn October?


Petrobras says appraisal well Moita Bonita 3 has confirmed an extension of the gas
and light oil prospect, in Sergipe-Alagoas Basin licence BM-SEAL-10, off Brazil. Well
3-SES-182, the second appraisal, was drilled about 5 km from discovery well Moita
Bonita 1 (1-SES-168), drilled in August 2012. The well encountered a 40-metre thick
reservoir with good permeability and porosity and a subsequent formation test
proved the presence of 41 deg oil and good productivity. Petrobras is sole owner of
Mediterranean briefing

Tunisia: Circle Oil has completed drilling the El Mediouni-1 well (EMD-1) in the
offshore Mahdia permit and early indications are the well could be a significant oil
North Sea Reporter 27 August 2014


discovery. The well, located in the northern central area of the permit where the
water depth is 240 metres, reached a measured TD of 1,200 metres in Upper
Ketatna carbonates. It came in close to prognosis, with good light oil shows
encountered in a Lower Birsa carbonate, primary target, and Upper Ketatna
carbonates, a secondary target. The combined interval measured around 133
metres. The hydrocarbons found in the Birsa and Ketatna sections confirm the
presence of a working petroleum system in the Mahdia permit and enhance other
nearby prospects. The gross oil zone in the Lower Birsa measured 77 metres and
the Upper Ketatna has a minimum interval of 48 metres. Using known reservoir
and fluid parameters from equivalent formations in the Gulf of Hammamet,
recoverable oil reserves discovered in EMD-1 are estimated around 100 million
barrels. However, during drilling operations severe mud losses occurred and
multiple remedial operations to restore circulation were performed. Nevertheless,
hole conditions in the well deteriorated rapidly and attempts at open hole logging
failed, as a result of which the decision was taken to suspend the well.
Oil price


The NPD last week completed, almost a month ahead of schedule, a 5,600-km, 2D
seismic survey in the northern Barents Sea. The survey, which started on 18 July, is
a continuation of the programmes the NPD has undertaken in the southeastern
and northern Barents Sea since 2011. It was carried out by Dolphin Geophysics with
the Artemis Atlantic, which is now in Hammerfest for demobilisation and a crew

Polarcus reports the Polarcus Naila has completed, ahead of schedule, a planned
two-month 3D survey for TGS-Nopec west of Shetland. The complex programme
comprised two individual surveys, each employing a variable depth streamer
spread with a linear gradient from 12 metres to 30 metres. Polarcus says the vessel
is continuing to deliver superior performance since a propulsion upgrade in April.
25-Feb 25-Mar 25-Apr 25-May 25-Jun 25-Jul 25-Aug
Brent Oil Price ($)
Average price for last 6 months - $108.25

North Sea Reporter 27 August 2014


SeaBird Exploration has been awarded a contract, worth an estimated $11 million,
from an unnamed client for a 3D seismic survey in Gulf of Guinea, off West Africa.
The survey, to be carried out with the Geo Pacific, will cover a minimum of 1,450 sq
km. It is expected to start shortly and will have an estimated duration of 78 days.
Licence activity

Atlantic Petroleum is farming out to Repsol 6% of its 15% stake in PL528, covering
blocks 6707/8, 6707/9 and 6707/11 and containing the Ivory prospect, and PL528B,
covering 6707/10, off Norway. Atlantic acquired the interest earlier this year via a
farm-in agreement with Rocksource (NSR 255/32). As a result of the deal, which is
subject to government approval, revised partner interests in both licences will be
Centrica (operator) 40%, Statoil 35%, Rocksource 10%, Atlantic 9% and Repsol 6%.

ExxonMobil to open data room for Wingate, Netherlands assets
ExxonMobil is seeking to offload its 15.5% interest in the Wingate gasfield, in UK
southern basin block 44/24 and surrounding acreage, held through wholly-owned
subsidiary XTO UK, as well as its entire the shareholding in XTO Netherlands (XTO
NL). The XTO NL portfolio comprises producing assets and a 10.08403% stake in
Noordgastransport (NGT). ExxonMobil plans to open an online data room on 1
September, hosted by Schlumberger, with a competitive tendering process being
held seeking cash bids by 17 October. Offers will be invited for the entire portfolio
or any combination of the elements.

Wingate, which came on stream in October 2011, produces from three wells, with
a fourth, 44/24b-A4, currently being drilled with the Paragon HZ1 and a fifth
planned. Gas is exported via the D/15 platform in The Netherlands and NGT. XTOs
share of output is currently averaging 10,000 cfd. The surrounding acreage includes
the Winchelsea prospect, an exploration in which is planned in 2015.

As well as NGT, XTO NLs assets, all GDF-operated, comprise K/9a, K/9b (7.5%),
K/9c (5.8%), K/12 (5%), L/10 and L/11 (10.1%). Its share of production in the sector
in 2013 averaged 1,400 b/d of oil equivalent. It also has interests in non-producing
block N/7b and prospects, development planning for which is under way.

Applus RTD, the integrity technology services provider, is opening a new office and
test facility in Straume, Bergen, following demand for its non-destructive testing
(NDT) services in the region. The facility, planned to open in October, will provide
in-house and on-site NDT, metallurgic field work and a range of inspection services,
including rig, paint, derrick and hull inspection. Eirik Bjorheim, Applus RTD Norway
manager, says: The organic growth of the company will continue throughout next
year as we also plan to open a base in Hammerfest in February, followed by our
headquarters in Stavanger next summer.

Expro is to invest $40 million in a major new hub in Tanager, Norway, in summer
2015. Europe CIS director Keith Palmer says the move will unify operations that are
North Sea Reporter 27 August 2014


currently run across three different sites. The 19,000 sq metre facility, equipped for
100 staff, will comprise a 5,000 sq metre yard and a 10,600 sq metre workshop,
which will be capable of rigging up four well test packages and service a further six
simultaneously. The new base follows a $10 million investment in new equipment
in Norway to service well test projects over the past two years. The new facility will
complement its other offices in Bergen and Haugesund.

NorSea Group, of Norway, is taking over operatorship of Smith Quay and
Embankment in Peterhead. The 10-year agreement with Peterhead Port Authority,
starting on 1 September, adds to the companys existing partnerships with Scottish
ports, including a 15-year lease at South Quay in Montrose and a long-term
agreement with Scrabster Harbour Trust. The announcement follows a merger
earlier this month of NorSea and the UK arm of Danish base and logistics company
Danbor, securing the groups long-term plans to service operators, service
companies and drilling contractors through its offices and warehouses in both
Aberdeen and Montrose.

Peterson company 80:20 Procurement Services has established an operations
facility in Stavanger as part of an ambitious growth strategy. The move is expected
to create up to 20 new jobs, with the company now actively recruiting in the region
for buyers and procurement specialists. 80:20 director Tony Bannon says: 80:20
Procurement Services represents a significant investment within the Norwegian
sector and is part of our long-term strategy to grow the business internationally.
There may also be potential for acquisition as we continue to expand our
Norwegian footprint.

Premier Oil says a higher-than-expected increase in UKCS production fuelled a 7%
rise in first-half 2014 after-tax profits to 104 million ($172.3 million) following a
73.5 million boost from UK tax credits, although pre-tax profits slumped to 30.7
million, from 129.4 million a year earlier. Premier also says it is well funded, with
about 300 million ($497 million) in operating cashflow that it will use to finance its
exploration campaigns, including in Norway and the Falkland Islands. Total first-half
production was up 11%, at 64,900 boed, ahead of expectations, helped by a
resumption of output from the UKCS Kyle field, shut down in December 2011 after
the Banff FPSO lost its anchors and suffered damage in bad weather. However, the
company has left its output target for the year unchanged at 58,000-63,000 boed.

Riverstone Holdings is joining Barclays Natural Resource Investments (BNRI) and
Singapore-based investment company Temasek as an investor in new Norway and
UK-focused E&P company Origo Exploration. Riverstone and BNRI will each
contribute $200 million of funding, while Temasek will provide an additional $125
million. Origo, headquartered in Stavanger, is led by E&P industry veterans Andrew
Armour, Timothy Sullivan, Svein Ilebekk, Kent Hgseth and rjan Gjerde. It is
aiming to acquire acreage in Norway and the UKCS through farm-ins, licensing
rounds and focused M&A activity. It plans to participate in drilling around 25
exploration wells over the next five years.

North Sea Reporter 27 August 2014



Two pilots have been suspended from flying duties and an investigation is under
way after a helicopter landed on the wrong North Sea installation last Friday (22
August). The Bond-operated S-92 aircraft, with one passenger on board, had been
bound for the Nexen-operated Buzzard platform, but instead it made an
unscheduled landing on the jack-up drilling rig Ensco 120, about nine nautical miles
away, which is currently drilling a well on Golden Eagle, also for Nexen. The aircraft
left Aberdeen Airport and made a number of scheduled landings before arriving on
the rig.

DNV GL has established a joint industry project (JIP) to develop a risk-based
maintenance methodology aimed at delivering more effective and cost-efficient
BOP maintenance. Industry partners are invited to attend a kick-off meeting on 25
September in Norway. Several BOP manufacturers, operators, rig owners and
regulators have already joined the JIP.
Shale Gas

IGas Energy has secured a rig to drill the Ellesmere Port exploration well, in NW
England, which is expected to spud before end-year. The well will be a straight
vertical well and the third in a sequence designed to give the company a suite of
results across its licensed areas in the northwest. The second well, drilled at Barton
Moss and completed in the first quarter, is currently being evaluated. IGas says:
The core analysis has started and full results will be available after the 14
round applications have been submitted. The exploratory work undertaken to date
together with offset well data has given the company sufficient information to be
able to design an appropriate hydraulic fracture programme for wells in the area.
This will prove invaluable for future planning applications for potential shale wells
and the ability to demonstrate the commerciality of gas extraction from these deep

Funding has been secured to build the first phase of the planned 398 MW Meygen
project, the worlds largest tidal energy array in the Pentland Firth, off Scotland.
The first phase of the project alone will almost double the tidal energy capacity
currently installed in UK waters. The 51 million ($84.5 million) needed for the 6
MW first phase will be partly funded by a 10 million grant from the UK
government, with major funding initiatives also coming from Atlantis Resources,
Scottish Enterprise, Highlands and Islands Enterprise and The Crown Estate.
Construction work on the first four 1.5 MW turbines is expected to begin later this
year, with electricity being provided to the grid by 2016.

Sandbank Offshore Wind, a joint venture between Vattenfall (51%) and
Stadtwerke (49%), has awarded Bladt Industries a turnkey EPCI contract to build
the offshore sub-station for the Sandbank wind farm, off Germany. The sub-station,
comprising a topsides facility weighing about 2,000 tons, including two
North Sea Reporter 27 August 2014


transformers and a helideck, and a 1,500t four-legged jacket, is scheduled for sail-
away in second-quarter 2016.

Statoil and Statkraft have awarded Siemens Energy a contract, worth about 500
million ($829 million), including a five-year-service deal, to deliver, install and
commission 67, 6 MW direct-drive wind turbines for the Dudgeon wind farm, off
the UK. Installation is planned to start in early-2017. Partner interests in Dudgeon,
which will have an overall capacity of 402 MW, are Statoil (construction phase
operator) 70% and Statkraft 30%.

Cubility: Gunnar Hviding has been appointed chairman and William James Wright
vice-chairman. Hviding was previously president and CEO of Roxar and Crudecorp.
Wright has spent more than three decades in the oil and gas business, most
recently with Schlumberger, where he was vice-president of sales.

Hunting Energy Services: rjan Fryland has been appointed regional manager for
Norway, based initially in Sandnes.

International Marine Contractors Association (IMCA): Chris Baldwin has joined as
a technical adviser following a short secondment from the Royal Navy. He has wide
maritime experience, including DP, AUV and ROV operations, ship and offshore
installation security, competency training, safety auditing and most recently
commercial diving. He is working mainly in IMCAs marine and remote systems and
ROV divisions, acting as secretary for the management committee, as well as
managing the common marine inspection document scheme.

Maersk Training (UK): John Abate has been appointed general manager. He has
held a number of senior management posts, including with retailers John Lewis and

Petrofac: Rijnhard van Tets, an independent director, has been appointed non-
executive chairman, in succession to Norman Murray, who has resigned as
chairman with immediate effect for personal reasons. Murray is a former chairman
of Cairn Energy, from which he joined Petrofac in May 2011.
Conferences, exhibitions

Oceanology international, 3-5 September, Shanghai, China. Inquiries:

2nd East Mediterranean gas conference, 9-10 September, Paphos, Cyprus.
Inquiries: Jesse Reynolds, phone +44 (0)20 7596 5004; email og@ite-events.com.

Subsea engineering & special materials, 1-2 October, Redditch. Subsea production
systems engineering, course, 14-17 October, Aberdeen. Inquiries: email

North Sea Reporter 27 August 2014


Society of Petroleum Engineers annual technical conference and exhibition, 27-29
October, Amsterdam, The Netherlands. Inquiries: www.spe.org/atce/2014.

Offshore energy, 28-29 October, Amsterdam, The Netherlands. Inquiries: Navingo,
Las Palmas Building, Wilhelminakade 302, 3072 AR Rotterdam, The Netherlands;
email oe@offshore-energy.biz; phone +31 (0)10 2092600; http://www.offshore-

Opito safety and competence conference, 4 November, Abu Dhabi. Inquiries:
www.opito-oscc.com, or email events@bigpartnership.co.uk.

The SPE annual Caspian technical conference and exhibition, 12-14 November,
Astana, Kazakhstan. Inquiries: www.spe.org/events/ctce/2014.

IMCA annual seminar where next for the offshore marine industry, 19-20
November, London. Inquiries: www.imca-int.com or events@imca-int.com.

North Sea Reporter
Published by KL Energy Publishing Ltd

Meg Leitch - Editor
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John Kendall Rig Market/Exploration Editor
01322 665940 Mobile: 07585 604047

Meg Chesshyre Contributing Editor
020 8846 9080

Bill Harris - Freelance Journalist
01224 596487

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