Baker Hughes awarded long-term contract with PETRONAS Carigali

Thursday, Oct 24, 2013 Baker Hughes Incorporated (NYSE: BHI) today announced that PETRONAS Carigali Sdn. Bhd. (PCSB) has entered into a long-term Oilfield Service Agreement (OFSA) with Baker Hughes to enhance the recoverable reserves and production of hydrocarbons in the Greater D18 fields, offshore Malaysia.

The 23-year agreement is the result of a collaborative, 2 1/2-year field development study, leveraging Baker Hughes' reservoir evaluation capabilities to analyze the geology and reservoir attributes of the mature and compartmentalized D18 field. Challenged with production declines, Baker Hughessuccessfully deployed two integrated production enhancement programs to revitalize production in target wells. Through further analysis, technical experts developed a comprehensive field development plan with fit-for-purpose technology solutions.

"We have utilized our best people to come up with solutions which are going to help PETRONAS Carigali Sdn. Bhd. [PCSB] achieve their goals of increased oil recovery from mature fields. The partnership between PCSB and Baker Hughes on this project represents a significant milestone in expanding our offering with reservoir development in addition to our traditional products and services portfolio," says Zvonimir Djerfi, President of Asia Pacific Region for Baker Hughes.

With the challenges surrounding this marginal, complex reservoir, Baker Hughes'field management strategy combines technical expertise and integrated solutions to enhance existing production by identifying new targets and efficiently constructing new wells to maximize production throughout the entire life cycle of the field.

Baker Hughes will participate in the redevelopment cost for the Greater D18 field in return for remuneration from the incremental production. The collaborative arrangement will extend the life of Greater D18 and will help sustain the area's economic strength. The company has successfully implemented a similar modeling strategy in other areas, including Asia Pacific, Mexico and the United States.

Baker Hughes is a leading supplier of oilfield services, products, technology and systems to the worldwide oil and natural gas industry. The company's 60,000-plus employees today work in more than 80 countries helping customers find, evaluate, drill, produce, transport and process hydrocarbon resources. For more information on Baker Hughes' century-long history, visit: www.bakerhughes.com.

Source: Baker Hughes

Technip and MMHE confirm their support to PETRONAS for the development of Block SK316

Monday, Oct 07, 2013

Technip, in a joint venture with Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE), has received confirmation from PETRONAS Carigali for a substantial engineering, procurement, construction, installation and commissioning (EPCIC) contract for the development of two gas fields in Block SK316. Those fields are located approximately 180 kilometers North of Bintulu, Sarawak, at a water depth of 104 meters.

The Technip-MMHE joint venture had earlier participated in the front-end engineering design competition with subsequent rollover to EPCIC execution.

The EPCIC contract includes a central processing platform and a bridge-linked wellhead platform, which will be constructed at MMHE’s fabrication yard at Pasir Gudang in Johor, Malaysia, as well as a 75-kilometer pipeline, which will be installed by one of Technip’s pipe-laying vessels.

MMHE is a wholly-owned subsidiary of Malaysia Marine and Heavy Engineering Holdings Berhad (MHB).

For Technip, a “substantial” offshore contract is ranging from €250 to €500 million (Technip’s part of the contract).

Technip is a world leader in project management, engineering and construction for the energy industry.

From the deepest Subsea oil & gas developments to the largest and most complex Offshore and Onshore infrastructures, our 38,000 people are constantly offering the best solutions and most innovative technologies to meet the world’s energy challenges.

Present in 48 countries, Technip has state-of-the-art industrial assets on all continents and operates a fleet of specialized vessels for pipeline installation and subsea construction.

Source: Technip

FPSO

FPSO technology currently become popular in Malaysian Oil and Gas industry, let go through what is FPSO all about : 

Floating Production Storage and Offloading vessels, or FPSOs, are offshore production facilities that house both processing equipment and storage for produced hydrocarbons. The basic design of most FPSOs encompasses a ship-shaped vessel, with processing equipment, or topsides, aboard the vessel's deck and hydrocarbon storage below in the double hull. After processing, an FPSO stores oil or gas before offloading periodically to shuttle tankers or transmitting processed petroleum via pipelines.

FPSO

Moored in place by various mooring systems, FPSOs are effective development solutions for both deepwater and ultra-deepwater fields. A central mooring system allows the vessel to rotate freely to best respond to weather conditions, or weathervane, while spread-mooring systems anchor the vessel from various locations on the seafloor.

Usually tied to multiple subsea wells, FPSOs gather hydrocarbons from subsea production wells through a series of in-field pipelines. Once tapped by subsea wells, hydrocarbons are transmitted through flowlines to risers, which transport the oil and gas from the seafloor to the vessel's turret and then to the FPSO on the water's surface.

FPSO

The processing equipment aboard the FPSO is similar to what would be found atop a production platform. Usually built in modules, FPSO production equipment can consist of water separation, gas treatment, oil processing, water injection and gas compression, among others. Hydrocarbons are then transferred to the vessel's double-hull for storage.

Crude oil that is stored onboard is frequently transferred to shuttle tankers or ocean barges going ashore, via a loading hose. Loading oil from the stern of the FPSO to the bow of the shuttle tanker is known as tandem loading. While gas is many times transferred to shore via pipeline or re-injected into the field to boost production.

FPSO Characteristics

Permanently moored, FPSOs are viable development solutions for a number of different offshore field situations. Because FPSOs can be disconnected from their moorings, these offshore production vessels are optimal for areas that experience adverse weather conditions, such as cyclones and hurricanes.

FPSO

Additionally, because FPSOs can be moved, they are a more economical solution for more marginal fields, in that the vessel can be moved to another development and redeployed once the original field has been depleted. Also, FPSOs are an optimal choice for development when there are no existing pipelines or infrastructure to transfer production to shore. Adding to the economic advantages of FPSOs, existing tankers are frequently converted into FPSOs.

Used in offshore production since the 1970s, FPSOs have been historically utilized in the North Sea, offshore Brazil, Asia Pacific, the Mediterranean Sea and offshore West Africa.

Oil spills do not usually occur from FPSOs, although in the late 1990s the Texaco Captain FPSO spilled approximately 3,900 barrels of oil due to human error. Besides this incident, FPSOs have spilled less than approximately 500 barrels of oil combined.

Besides FPSOs, similar floating systems include Floating Storage and Offloading systems (FSOs), Floating Production Systems (FPSs) and Floating Storage Units (FSUs). Additionally, the world's first FDPSO, or Floating Drilling Production Storage and Offloading vessel, was developed in 2009 for Murphy Oil's Azurite field offshore Republic of Congo. This Azurite FDPSO incorporates deepwater drilling equipment that will help to develop the field and can be removed and reused after all the Azurite production wells have been drilled. Furthermore, the world's first FLNG or Floating Liquid Natural Gas vessel is currently being developed.

Article Source : http://www.rigzone.com/training/insight.asp?insight_id=299&c_id=12

JX Nippon Oil & Gas Exploration announces production sharing contract for deepwater block 2F, offshore Sarawak, Malaysia

Friday, Sep 20, 2013

JX Nippon Oil & Gas Exploration Corporation (President: Mr. Shigeo Hirai) is pleased to announce that JX Nippon Oil & Gas Exploration Corporation has entered into a Production Sharing Contract (PSC) for Deepwater Block 2F, Sarawak with PETROLIAM NASIONAL BERHAD (“PETRONAS”), the national oil company of Malaysia, through its subsidiary, JX Nippon Oil & Gas Exploration (Offshore Malaysia) Sdn. Bhd. (President: Mr. Hironori Wasada) to be effective from September 19, 2013.

Deepwater Block 2F is located in the northwest of Sarawak, with approximately 5,500 square kilometres surface area and 100-1,200 meters water depth. JX Nippon Oil & Gas Exploration (Offshore Malaysia) Sdn. Bhd. holds 40% Participating Interest and will conduct exploration activity as the operator at Deepwater Block 2F.

Deepwater Block 2F is our 6th project (and 4th project as operator) in Malaysia.

In Malaysia, we are operator for Block SK10, offshore Sarawak which is now in the 10th year of gas production and studying further development. We are also the operator carrying out exploration activities in Block SK333 onshore Sarawak and Deepwater Block R offshore Sabah. In Block SK333, accumulation of oil and gas were confirmed at Adong Kecil West-1 well which was drilled in 2012 and we are currently conducting detailed reserves evaluation. In addition, we are participating as non-operator in gas production activities in Block SK8 and also as non-operator in exploration activities in Block PM308A offshore Peninsular Malaysia.

We consider Malaysia as one of our important core countries and will seek to increase our activities and presence in Malaysia.

Source: JX Nippon Oil & Gas Exploration

Lundin Malaysia’s Bertam Oil development

Petronas has approved the Bertam oil field development plan for Lundin Malaysia BV, the first Lundin-operated development project in Malaysia.

The development plan, which Lundin Malaysia submitted in July, looks toward drilling in 2014 and a production start in 2015. Proved and probable reserves total 17 million bbl of oil, and peak production is pegged at 15,000 b/d.

Lundin Malaysia will develop Bertam using a 20-slot wellhead platform in 76 m of water on the 6,126 sq km PM 307 block adjacent to a spread-moored floating production, storage, and offloading vessel. The subsurface development concept consists of 14 horizontal production wells completed with electric submersible pumps.

Gross capital investment associated with the development is $400 million excluding costs related to the FPSO. Working interests are Lundin Malaysia 75% and Petronas Carigali 25%.

News Source : http://www.ogj.com/articles/2013/10/petronas-okays-lundin-malaysia-s-bertam-oil-development.html

Oil Country Tubular Goods (OCTG)

OCTG refers mainly to casing and tubing but also can refer to line pipe and other pipe used in producing or transporting gas and oil. Casing is the pipe that is used while drilling the well. It is placed in the well, cemented in place, and is what keeps the hole from sloughing in while drilling or producing.

Picture  Source : http://www.aogr.com

It “cases” the open hole. It comes in sizes ranging from 30” to 3 ½” in diameter. Usually several “strings” of casing are using in each well. Tubing is the pipe that is inserted in the well during well completion operations. This is the pipe by which the oil and gas flows to the surface. It is frequently removed from a well during workover or completion operations.

Tubing comes in sizes from 4 ½” to 1 ½” diameter. Casing and tubing each use special connectors in order to screw the joints together. These connectors are called connections and come in all types of sizes and thread profiles depending on the intended use.

Picture source : http://www.imoa.info

A joint of tubing or casing is made up of the “tube” and the “connection.” Connections are sometimes separate items called couplings or they can be integral or a part of the tube. Again, the intended use dictates that type of connection. Line pipe is a separate type of tube from tubing and casing. Line pipe is what makes up a pipeline. Pieces are connected together by welding. Line pipe is less expensive and less rigorously used than tubing or casing. Companies that manufacture these items are Tenaris, Vallourec, Sumitomo Steel, JFE  and others.

Malaysia Oil and Gas Feilds

Following are maps / illustration of Malaysia Oil and gas blocks :

Sources : http://investvine.com/malaysian-oil-and-gas-sector-to-keep-bullish-trend/