E&P Notes (August 2018)

Abstract

E&P Notes ExxonMobil’s Eighth Discovery Off Guyana Adds Another Development Possibility Matt Zborowski, Technology Writer ExxonMobil said it has “encountered 78 m of high-quality, oil-bearing sandstone reservoir” near the Turbot discovery southeast of the Liza field offshore Guyana. The supermajor’s eighth discovery in the burgeoning oil province could bring about a new development opportunity in the southeast portion of the 26,800-sq-km Stabroek Block. The first phase of development drilling on Liza field began in May. The Longtail-1 discovery well was drilled to 5,504 m in 1,940 m of water by the Stena Carron drillship, which spudded the well on 25 May. It is the second discovery in that area after the Turbot discovery of late 2017. The two discoveries’ estimated recoverable resources total more than 500 million BOE, said ExxonMobil. GE To Spin Off Baker Hughes Pam Boschee, Senior Editor GE is spinning off Baker Hughes (BHGE) in its strategic plan for growth and shareholder value creation. It plans to focus on aviation, power, and renewable energy. GE CEO John Flannery said these areas share technologies, digital and additive strategies, and business models. The separation from Baker Hughes will take place over the next 2 to 3 years as part of GE’s effort to “make its corporate structure leaner and substantially reduce debt,” the company said in a statement. GE Oil and Gas merged with Baker Hughes in July 2017, with GE holding a 62.5% stake. BHGE’s revenue on an annualized basis is $22 billion. GE Healthcare will also be separated into a standalone company, which will begin immediately and progress over the next 12 to 18 months. The spinoffs of BHGE and GE Healthcare are part of GE’s efforts announced last fall to sell $20 billion worth of assets. The Big Unknowns for World’s Balancing Act of Supply and Demand Trent Jacobs, Digital Editor Last year was a dynamic one for both oil producers and consumers. For much of 2017, oil prices headed north but consumption still outgrew daily production—even as those totals were rising too. The net effect was seen as a positive for what has been a chaotic oil market in recent years. However, an annual report from BP’s economic group that studies market forces for the company has raised questions about what could disrupt this tenuous balance going forward. Driven by rising but still relatively low prices, 2017 saw world oil demand increase by an impressive 1.7 million B/D. This 1.8% increase stands above the 10-year average of 1.2% and marks the third year in a row that these figures have seen an uptick. Equinor Releases Subsurface and Production Data From NCS Field Stephen Whitfield, Senior Staff Writer For the first time, the general public will have complete access to the subsurface and production data from a field on the Norwegian continental shelf (NCS). Equinor announced that it will disclose the data from Volve, a shallow-water oil field located in the southern part of the Norwegian North Sea approximately 125 miles west of Stavanger. Following its startup in February 2008, Volve’s production lasted for approximately 8 years. It was originally scheduled for 3 to 5 years of operation. At its peak, the field produced 56,000 BOPD, and a total of 63 million bbl of oil were produced before the field’s shutdown in September 2016. Equinor said that one of the goals of the data release is to allow students from relevant fields of study to train on real data sets. Equinor, ExxonMobil Rack Up More Brazilian Pre-Salt Acreage Matt Zborowski, Technology Writer Equinor secured interests in two of three blocks awarded 7 June during Brazil’s 4th pre-salt bid round, further expanding its footprint in the growing offshore province alongside ExxonMobil, Shell, BP, and Chevron. Three of four blocks were awarded overall, each of which will be operated by Petrobras. The state-owned firm has a right of first refusal to petition the government to operate all pre-salt blocks offered. The round received some $800 million in signing bonuses and $190 million in planned exploration investments. The Norwegian firm took a stake in the highly coveted Uirapuru block in the Santos Basin with partners ExxonMobil and Petrogal Brasil. Petrobras exercised its right to enter the consortium and will be the operator with a 30% interest. Equinor and Exxon-Mobil will each have a 28% stake, with Petrogal Brasil holding the remaining 14%.