Tuesday 19 November 2013


Malaysia’s oil company PETRONAS has informed oil production from the Balai field in the Balai Cluster Risk Service Contract (RSC) area, has started on 6 November 2013.

Oil Flows from Balai Field Offshore Malaysia


The field’s first oil was achieved utilising an early production vessel (EPV) as a part of the RSC area’s extended well testing (EWT) programme.
The Balai Cluster RSC was awarded in August 2011 to BC Petroleum Sdn Bhd, a partnership between Roc Oil (Malaysia) Pty Ltd, Dialog D & P Sdn Bhd and PETRONAS Carigali Sdn Bhd. It is the second RSC that has successfully achieved oil production after the Berantai gas field.
The development area is located approximately 100-130 km northeast of Bintulu. The project facilities consist of four light weight Tarpon Guyed Caisson Well Head Platforms and an EPV, namely the EPV Balai Mutiara, with on board storage capacity of about 50,000 barrels, well testing facilities and accommodation for 40 persons.
The EWT is part of the Balai Cluster pre-development phase and is designed to provide additional production and reservoir performance information required from the oil fields in order to support the field development planning process.

Monday 18 November 2013

Petronas Awards $3.1B in Offshore Jobs to Local Firms






KUALA LUMPUR, Nov 15 (Reuters) – Petroliam Nasional Bhd (Petronas), Malaysia's state oil firm, has awarded a 13-package, five-year offshore hook-up, commissioning and maintenance services contract worth 10 billion ringgit ($3.12 billion) to six local companies. 

The deals, awarded under the Pan Malaysia Integrated Hook-Up & Commissioning and Topside Major Maintenance Contract, mark one of Petronas' largest service contracts currently in place as it seeks to drive and support growth among local companies. 

The companies are Kencana HL Sdn Bhd, Dayang Enterprise Sdn Bhd, Petra Resources Sdn Bhd, PBJV Sdn Bhd, Carimin Engineering Services Sdn Bhd and Sigur Ros Sdn Bhd. The deals are for a period of five years starting from 2013, according to Petronas. "The award of this major contract is Petronas' acknowledgment of the capability of local service providers," said Ramlan A. Malek, Petronas' vice president of Petroleum Management. 

Thursday 14 November 2013

Drilling Rigs



Offshore Drilling
Drilling for natural gas offshore, in some instances hundreds of miles away from the nearest landmass, poses a number of different challenges over drilling onshore. The actual drilling mechanism used to delve into the sea floor is much the same as can be found on an onshore rig. However, with drilling at sea, the sea floor can sometimes be thousands of feet below sea level. Therefore, while with onshore drilling the ground provides a platform from which to drill, at sea an artificial drilling platform must be constructed.
Source: ChevronTexaco Corporation
Drilling offshore dates back as early as 1869, when one of the first patents was granted to T.F. Rowland for his offshore drilling rig design. This rig was designed to operate in very shallow water, but the anchored four legged tower bears much resemblance to modern offshore rigs. It wasn't until after World War II that the first offshore well, completely out of sight from land, was drilled in the Gulf of Mexico in 1947. Since then, offshore production, particularly in the Gulf of Mexico, has resulted in the discovery and delivery of a great number of large natural gas deposits.


The Drilling Template

Since the land that is going to be drilled cannot provide a base for offshore drilling as it does for onshore drilling, an artificial platform must be created. This artificial platform can take many forms, depending on the characteristics of the well to be drilled, including how far underwater the drilling target is. One of the most important pieces of equipment for offshore drilling is the subsea drilling template. Essentially, this piece of equipment connects the underwater well site to the drilling platform on the surface of the water. This device, resembling a cookie cutter, consists of an open steel box with multiple holes in it, dependent on the number of wells to be drilled. This drilling template is placed over the well site, and usually lowered into the exact position required using satellite and GPS technology. A relatively shallow hole is then dug, in which the drilling template is cemented into place. The drilling template, secured to the sea floor and attached to the drilling platform above with cables, allows for accurate drilling to take place, but allows for the movement of the platform, which will inevitably be affected by shifting wind and water currents.
In addition to the drilling template, a blowout preventer is installed on the sea floor. This system, much the same as that used in onshore drilling, prevents any oil or gas from seeping out into the water. Above the blowout preventer, a specialized system known as a 'marine riser' extends from the sea floor to the drilling platform above. The marine riser is designed to house the drill bit and drillstring, and yet be flexible enough to deal with the movement of the drilling platform. Strategically placed slip and ball joints in the marine riser allow the subsea well to be unaffected by the pitching and rolling of the drilling platform.

Moveable Offshore Drilling Rigs

There are two basic types of offshore drilling rigs: those that can be moved from place to place, allowing for drilling in multiple locations, and those rigs that are permanently placed. Moveable rigs are often used for exploratory purposes because they are much cheaper to use than permanent platforms. Once large deposits of hydrocarbons have been found, a permanent platform is built to allow their extraction. The sections below describe a number of different types of moveable offshore platforms.


A Drilling Barge
Source: California Department of Transportation
Drilling Barges

Drilling barges are used mostly for inland, shallow water drilling. This typically takes place in lakes, swamps, rivers, and canals. Drilling barges are large, floating platforms, which must be towed by tugboat from location to location. Suitable for still, shallow waters, drilling barges are not able to withstand the water movement experienced in large open water situations.










Jack-Up Rigs
A Jack-Up Rig
Source: National Oceanic and Atmospheric Administration
 Jack-up rigs are similar to drilling barges, with one difference. Once a jack-up rig is towed to the drilling site, three or four 'legs' are lowered until they rest on the sea bottom. This allows the working platform to rest above the surface of the water, as opposed to a floating barge. However, jack-up rigs are suitable for shallower waters, as extending these legs down too deeply would be impractical. These rigs are typically safer to operate than drilling barges, as their working platform is elevated above the water level.

Submersible Rigs

Submersible rigs, also suitable for shallow water, are like jack-up rigs in that they come in contact with the ocean or lake floor. These rigs consist of platforms with two hulls positioned on top of one another. The upper hull contains the living quarters for the crew, as well as the actual drilling platform. The lower hull works much like the outer hull in a submarine - when the platform is being moved from one place to another, the lower hull is filled with air - making the entire rig buoyant. When the rig is positioned over the drill site, the air is let out of the lower hull, and the rig submerses to the sea or lake floor. This type of rig has the advantage of mobility in the water, however once again its use is limited to shallow water areas.
Semisubmersible Rigs


A Semisubmersible Rig
Source: Department of the Interior
Semisubmersible rigs are the most common type of offshore drilling rigs, combining the advantages of submersible rigs with the ability to drill in deep water. A semisubmersible rig works on the same principle as a submersible rig: through the 'inflating' and 'deflating' of its lower hull. The main difference with a semisubmersible rig, however, is that when the air is let out of the lower hull, the rig does not submerge to the sea floor. Instead, the rig is partially submerged, but still floats above the drill site. When drilling, the lower hull, filled with water, provides stability to the rig. Semisubmersible rigs are held in place by huge anchors, each weighing upwards of 10 tons. These anchors, combined with the submerged portion of the rig, ensure that the platform is stable and safe enough to be used in turbulent offshore waters. Semisubmersible rigs can be used to drill in much deeper water than the rigs mentioned above.

A Drillship in the Beaufort Sea
Source: Mining and Minerals Service
Drillships

Drillships are exactly as they sound: ships designed to carry out drilling operations. These boats are specially designed to carry drilling platforms out to deep-sea locations. A typical drillship will have, in addition to all of the equipment normally found on a large ocean ship, a drilling platform and derrick located on the middle of its deck. In addition, drillships contain a hole (or 'moonpool'), extending right through the ship down through the hull, which allows for the drill string to extend through the boat down into the water. Drillships are often used to drill in very deep water, which can often be turbulent. Drillships use what is known as 'dynamic positioning' systems. Drillships are equipped with electric motors on the underside of the ship’s hull, capable of propelling the ship in any direction. These motors are integrated into the ship’s computer system, which uses satellite positioning technology, in conjunction with sensors located on the drilling template, to ensure that the ship is directly above the drill site at all times.

Offshore Drilling and Production Platforms

As mentioned, moveable rigs are commonly used to drill exploratory wells. In some instances, when exploratory wells find commercially viable natural gas or petroleum deposits, it is economical to build a permanent platform from which well completion, extraction, and production can occur. These large, permanent platforms are extremely expensive, however, and generally require large expected hydrocarbon deposits to be economical to construct. Some of the largest offshore platforms are located in the North Sea, where because of almost constant inclement weather, structures able to withstand high winds and large waves are necessary. A typical permanent platform in the North Sea must be able to withstand wind speeds of over 90 knots, and waves over 60 feet high. Correspondingly, these platforms are among the largest structures built by man. There are a number of different types of permanent offshore platforms, each useful for a particular depth range.
An Offshore Platform
Source: Duke Energy Gas Transmission Canada
This depiction of offshore drilling and completion platforms gives an idea of just how massive these offshore rigs can be. For reference, the fixed platform (the shallowest shown) is usually in no more than 1,700 feet of water - whereas the height of the Hoover Dam, from top to bottom, is less than half that, at just under 730 feet. Because of their size, most permanent offshore rigs are constructed near land, in pieces. As the components of the rig are completed, they are taken out to the drilling location. Sometimes construction or assembly can even take place as the rig is being transported to its intended destination.









Fixed Platforms

In certain instances, in shallower water, it is possible to physically attach a platform to the sea floor. This is what is shown above as a fixed platform rig. The 'legs' are constructed with concrete or steel, extending down from the platform, and
Offshore Drilling Platforms
Source: MMS
fixed to the seafloor with piles. With some concrete structures, the weight of the legs and seafloor platform is so great, that they do not have to be physically attached to the seafloor, but instead simply rest on their own mass. There are many possible designs for these fixed, permanent platforms. The main advantages of these types of platforms are their stability, as they are attached to the sea floor there is limited exposure to movement due to wind and water forces. However, these platforms cannot be used in extremely deep water, it simply is not economical to build legs that long.


Compliant Towers

Compliant towers are much like fixed platforms. Each consists of a narrow tower, attached to a foundation on the seafloor and extending up to the platform. This tower is flexible, as opposed to the relatively rigid legs of a fixed platform. This flexibility allows it to operate in much deeper water, as it can 'absorb' much of the pressure exerted on it by the wind and sea. Despite its flexibility, the compliant tower system is strong enough to withstand hurricane conditions.

Seastar Platforms

Seastar platforms are like miniature tension leg platforms. The platform consists of a floating rig, much like the semisubmersible type discussed above. A lower hull is filled with water when drilling, which increases the stability of the platform against wind and water movement. In addition to this semisubmersible rig, however, Seastar platforms also incorporate the tension leg system employed in larger platforms. Tension legs are long, hollow tendons that extend from the seafloor to the floating platform. These legs are kept under constant tension, and do not allow for any up or down movement of the platform. However, their flexibility does allow for side-to-side motion, which allows the platform to withstand the force of the ocean and wind, without breaking the legs off. Seastar platforms are typically used for smaller deep-water reservoirs, when it is not economical to build a larger platform. They can operate in water depths of up to 3,500 feet.
A Floating Production System
Source: Minerals Management Service
Floating Production Systems
Floating production systems are essentially semisubmersible drilling rigs, as discussed above, except that they contain petroleum production equipment, as well as drilling equipment. Ships can also be used as floating production systems. The platforms can be kept in place through large, heavy anchors, or through the dynamic positioning system used by drillships. With a floating production system, the wellhead is actually attached to the seafloor once the drilling is completed, rather than being attached up to the platform. The extracted petroleum is transported via risers from this wellhead to the production facilities on the semisubmersible platform. These production systems can operate in water depths of up to 6,000 feet.
A Tension Leg Platform
Source: Minerals Management Service

Tension Leg Platforms
Tension leg platforms are larger versions of the Seastar platform. The long, flexible legs are attached to the sea floor, and run up to the platform itself. As with the Seastar platform, these legs allow for significant side-to-side movement (up to 20 feet), with little vertical movement. Tension leg platforms can operate at around 7,000 feet.

Subsea System
Subsea production systems are wells located on the sea floor, as opposed to at the surface. Just as in a floating production system, the petroleum is extracted at the seafloor, and then 'tied-back' to an already existing production platform. The well is drilled by a moveable rig, and instead of building a production platform for that well, the extracted natural gas and oil are transported by riser or even undersea pipeline to a nearby production platform. This allows one strategically-placed production platform to service many wells over a reasonably large area. Subsea systems are typically in use at depths of 7,000 feet or more, and do not have the ability to drill, only to extract and transport. To see an example of a subsea production system in the Gulf of Mexico, click here.

Spar Platforms
Spar platforms are among the largest offshore platforms in use. These huge platforms consist of a large cylinder supporting a typical fixed rig platform. The cylinder does not extend all the way to the seafloor, but instead is tethered to the bottom by a series of cables and lines. The large cylinder serves to stabilize the platform in the water, and allows for movement to absorb the force of potential hurricanes. The first Spar platform in the Gulf of Mexico was installed in September of 1996. Its cylinder measured 770 feet long and was 70 feet in diameter, and the platform operated in 1,930 feet of water. To see an example of a Spar platform in the Gulf of Mexico, click here.
To learn more about offshore drilling in the Gulf of Mexico, visit the U.S. Bureau of Ocean Management Regulation and Enforcement here.

Source : http://www.naturalgas.org/naturalgas/extraction_offshore.asp

Wednesday 13 November 2013

ROC announces commencement of extended well test programme Balai Cluster Risk Service Contract (RSC)

 



Wednesday, Nov 13, 2013

 
ROC advises that BC Petroleum Sdn Bhd (BCP), the company incorporated to operate and manage the Cluster RSC in Malaysia, has commenced a programme of Extended Well Testing (EWT) on the 2 well utilising the recently commissioned Early Production Vessel (EPV) "Balai Mutiara".

The EWT commenced on 6 November 2013 and flowed for approximately 24 hours before shutting in to obtain pressure performance data. The production is from two perforated intervals in the upper reservoir sands (1,895 – 1,901m MDRT and 1,906 - 1,912m MDRT) and the initial average rate was in the range 4,000 to 4,200 bopd and the oil gravity was measured at 39 deg API.

Following a short shut in period, EWT production has recommenced and will continue for an extended period.

The EWT programme is designed to provide additional production and reservoir performance information, required from the oil fields to support the field development planning process. The EWT programme is the final operational phase in the pre development EVP gas flare after commencement of production.

Subject to commercial viability, BCP aims to submit a Field Development Plan and move towards Final Investment Decision by the end of 2013.

Shareholders of BCP are ROC (48%), Dialog Group (32%) and PETRONAS Carigali (20%).

Source: ROC

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Tuesday 12 November 2013

Talisman Malaysia


Talisman holds a 41% operated interest in Block PM-3 CAA PSC between Malaysia and Vietnam and associated production facilities. In addition, Talisman holds a 33% interest in Block 46-Cai Nuoc adjacent to PM-3 CAA and a 60% interest in each of Block PM-305 and Block PM-314. In Block PM-3 CAA, Talisman is operating facilities referred to as the ‘‘Southern Fields’’ and the ‘‘Northern Fields.’’ The Kekwa sub block in PM-3 CAA expiry date has been extended nine months to April 2013. Negotiations to further extend the Kekwa sub block as well as the balance of Block PM-3 CAA, which expires in 2017, are ongoing.

Talisman also holds a 70% working interest in exploration licences for SB-309 and SB-310, acreages offshore Sabah in east Malaysia. In 2012 Talisman was awarded a 60% equity interest and operatorship of the Kinabalu Oil PSC, which is a mature oilfield in the offshore Malaysian Sabah Basin. Operatorship of this PSC became effective in December 2012 and has the potential for significant liquids growth as well as providing tieback synergies with potential discoveries in the existing Talisman Sabah exploration licences.
In 2012, production in Malaysia averaged 36.8 mboe/d, which accounted for approximately 29% of Talisman’s total Southeast Asia production. Six development wells were drilled in Malaysia in 2012, one of which was a water injector.
Optimization initiatives at PM-3 CAA to maximize gas production and meet strong regional demand have resulted in an increase of 8% in gas production over the previous year and the highest production levels since 2004.  In 2013, Talisman plans to drill several development wells in Kinabalu and the PM-3 CAA Southern fields.

Malaysia - Exploration
In 2012, Talisman acquired 3D seismic data over the SB310 Block offshore Sabah.
In 2013, Talisman is planning to drill two offshore exploration wells in Sabah Blocks SB309 and SB310.


Monday 11 November 2013

TOTAL ACQUIRES INTEREST IN A DEEP OFFSHORE EXPLORATION BLOCK



November 19, 2010: Total announces that it has signed an agreement with the national oil company Petronas to acquire a 85% interest in the Block SK317B, offshore Malaysia. Under the terms of the agreement, Total will operate the Block alongside its partner Petronas Carigali holding the remaining 15% interest. 
The Block SK317B is located around 100 kilometres offshore Sarawak, in water depths ranging from 200 to 1,000 metres. It covers an area of more than 700 square kilometres. The work commitments during the exploration period encompass seismic data acquisition and deep offshore exploration drilling, an area in which Total enjoys a recognized expertise.
This acquisition reflects Total’s strategy to expand its exploration acreages in new areas or on new themes while developing its partnerships with national oil companies such as Petronas”, stated Jean-Marie Guillermou, Senior Vice President Asia-Pacific at Total Exploration & Production.
Total E&P Malaysia
Total is already present in Malaysia with a 70% interest together with Petronas Carigali (30%) in a Production Sharing Agreement signed in 2008 which covers the Block PM303 and PM324, located offshore Peninsular Malaysia. Total operates these two blocks where a seismic campaign was shot in 2009 and where a high-pressure/high temperature exploration drilling campaign will start in 2011.
Total Exploration & Production in Asia-Pacific
Total’s share of production in the Asia-Pacific region averaged 250,000 barrels of oil equivalent per day in 2009, accounting for 11% of the Group’s total output and more than 50% of its liquefied natural gas (LNG) output. Its biggest presence is in Indonesia, where Total has operated the Mahakam Block since 1970 and is one of the country’s leading producers of natural gas. The Group also produces gas in Thailand, Myanmar and the Sultanate of Brunei.

Total diversified its exploration assets with the acquisition of interests in Australia, Cambodia, Malaysia and Vietnam. In addition, it has a 24% interest in Ichthys LNG project in Australia, in partnership with INPEX and it recently acquired a 20% interest in GLNG project in partnership with Santos and Petronas. In China Total has signed a production sharing contract with China National Petroleum Corporation to study the natural gas resources of the South Sulige Block.

Sunday 10 November 2013

Coastal Group secured vessel sales worth RM318 million

Tuesday, Oct 22, 2013


Coastal Contracts Bhd ("Coastal" or "Company", and together with its subsidiaries "Coastal Group" or "Group") today announced that its
wholly-owned subsidiaries, Coastal Offshore (Labuan) Pte Ltd and Thaumas Marine Ltd have collectively secured contracts for the sales of six units Offshore Support Vessels ("OSV"), which comprise one unit Subsea Support Maintenance Vessel ("SSMV"), one unit Platform Supply Vessel ("PSV") and four units Anchor Handling Tug Supply ("AHTS") for
an aggregate value of approximately RM318 million.

Apart from the one unit PSV and two units AHTS which were sold to a repeat customer, the rest of the vessels were sold to new customers. Clinching of these new contracts has further strengthened the Group’s already sizeable order book, which provides greater earnings
visibility for the Group.

All of these vessels are expected to be delivered in 2013 and 2014. Consequently, the revenue stream from these vessels is expected to contribute positively to the top and bottom line performance of the Group for the financial years ending 31 December 2013 and 31 December 2014. As of to date, Coastal Group has approximately RM1.28 billion worth of
vessel sales orders awaiting delivery to customers up to 2014.

Mr Ng Chin Heng, the Executive Chairman of Coastal, commented:

"I am pleased to announce that Coastal Group has secured another major win of vessel sales orders with an aggregate value of approximately RM318 million. Following our order book intakes in April, July and August this year, this is our fourth major win in FY2013. As of to date, the cumulative vessel sales orders secured in FY2013 alone amounted to approximately RM1.35 billion, which is approximately two times of the Group’s total vessel sales orders secured in FY2012 which amounted
RM698 million. This is a strong indicator for the Group’s rebound momentum, which is benefiting from the currently booming oil and gas sector.

Our order inflow looks favourable. Including these new contract wins, Coastal Group’s vessel sales orders as at to date stands at approximately RM1.28 billion. With current highly buoyant offshore market, we believe the Group would be able to capitalise more opportunities moving forward. Anchored on the buoyant oil and gas upstream sector globally with increasing offshore exploration and production activities, we are upbeat with the prospect of OSV market over the medium to long term, especially for more sophisticated and deepwater-capable OSV."

Source: http://www.coastalcontracts.com