|
|
|
|
A Long Way to Go |
|
|
|
Written by J. Cresswell
|
|
Thursday, 17 April 2008 |
From a Faroese perspective, patience has to be the name of the Atlantic Frontier Game — but when Chevron finally pushes the button on the most exciting project thus far on the UK Atlantic Frontier, it is only a short distance from the dividing line.
On October 22nd 2007, the fourth generation rig Transocean Rather started drilling the first exploration well on the William Prospect (Faroes License 007) in 743m of water. The rig was still on location 120 days later, with no clear indication as to when the probe would complete. With operator BP maintaining strict communications discipline … even a blackout … media leaks regarding William have been eliminated. Not even in the Faroes has anything slipped out regarding progress. In a brief statement issued for this review, BP said: “The well was scheduled to be a 120-day program and is expected to continue through to mid March as we have experienced some bad weather.”
“We’re drilling a single sub-basalt exploration well as part of our commitment to the license. Drilling commenced in October in an area adjacent to where we drilled the previous well in 2001.”
Jan Müller of Sosialurin, arguably the best-informed media source in the Faroes said: “They have had problems I know with very bad weather, but I can’t get any information.”
The main reservoir objective in William is located towards the flank of a known basalt rock sequence, approximately 20km northwest of the Longan exploration well that was drilled by BP in 2001 and which encountered thick reservoir quality sandstones in multiple objectives … but neither oil nor gas.
While it is likely that the well will have been completed prior to this review being published, the black-out is likely to remain in place for some time, unless of course a significant hydrocarbons column is encountered, in which case it would be highly appropriate for the Faroese Government to get excited and issue a statement as soon as possible.
Partners in William are BP (50 percent and operator), Shell (20 percent) and Anadarko (25 percent).
With only one well completed in 2007 (Brugdan), the same this year and just one scheduled for 2009 (Ann Marie), with nothing firm scheduled thereafter, once again the offshore Faroes outlook appears less than encouraging.
Analyzing Brugdan: However, there is talk of Chevron, teamed up with OMV, StatoilHydro and DONG, drilling the Súlan prospect on the Faroese side of the UK-Faroe boundary, adjacent to Chevron’s large Rosebank oil & gas discovery, perhaps next year subject to suitable drilling hardware being available.
The purpose of such a probe will be to learn whether the geology that has delivered Rosebank/Lochnagar extends westwards across the line.
Meanwhile, to the north of most earlier Faroes sector activity, Sagex Petroleum (60 percent) is working with Atlantic Petroleum (40 percent) on the PL13 and PL14 licenses that, the partnership claims, are home to at least two “Rosebank analogues” … Stella Kristina and Marselius.
In 2006, Sagex and Atlantic completed a 1,800km long-cable 2D seismic survey and Sagex notes in a February 2008 presentation that surrounding licenses are to be drilled within the next two years.
That data continues to be worked on, including integrating information garnered from the unsuccessful Brugdan well.
Indeed, Statoil-operated Brugdan on license PL006 is seen as crucial to understanding the geology of PL13 & 14.
Atlantic says in its 2007 annual review, published February 2008: “It is believed that there is remaining potential for hydrocarbons at deeper levels than the total depth reached by the (Brugdan) well (4,201m).
“The well is significant for future oil & gas exploration in the Faroes, as the well determined the thickness of the basalt on the East Faroe High and has provided significant experience and knowledge of drilling through basalt.”
Once satisfied with the seismic modeling, Sagex (formed in 2007 by merging Geysir, Inoil and Sagex) and Atlantic intend to invite interest from potential farm-in partners, thereby spreading risk during hoped for eventual drilling. Under licensing rules, the partners have to drill by 2009 or drop the PL13 & 14 licenses, though it is hard to see the Faroese authorities enforcing this; rather the granting of an extension may be the pragmatic way ahead.
Meanwhile, Atlantic, which has successfully mitigated risk of late by investing in UK and Irish assets, and Geysir intend to participate in the Third Faroese Licensing Round.
Thicker toward west: However, the persistently low level of activity coupled with serial disappointments begs the question as to what the real level of interest will be in the forthcoming Third Round where, in essence, oil companies are being asked to take their pick of the Faroese Continental Shelf.
Even if the William well was a success, there is a danger that the pessimists will hold sway.
But to dissolve into gloom at this stage is surely ill-advised, given the way in which UK activity West of Shetland is showing signs of warming, even hotting up.
All eyes are especially on Chevron’s Rosebank discovery, with a reserves estimate said to be more than 400million barrels of oil, plus significant quantities of natural gas.
Throughout the past winter, there has been intermittent speculation around Aberdeen about when Chevron will declare Rosebank commercial, notwithstanding that a further appraisal well is planned.
It is no longer a question of if, rather it is when the US major will push the button on what must surely be the most exciting project thus far on the UK Atlantic Frontier from a Faroese perspective, because it is only a short distance from the dividing line.
Surely the Norse gods would not be so cruel as to deny hydrocarbons on the Faroese side, which is why the intended Súlan probe, about which virtually nothing is known, is so important.
Meanwhile, at Chevron, Rosebank development concept studies are under way, evaluating the options that basically distill down to a floating production unit and a suite of subsea wells. A production vessel (FPSO) is the most likely option as ship specialist BW Offshore has carried out work on the project.
It was in late 2004 that Chevron, with Statoil, OMV and DONG as partners, made the Rosebank/Lochnagar discovery on UK block 213/27. Well 213/27-1z drilled the crest of a large anticlinal structure named Rosebank. Two oil and gas accumulations were encountered with that well.
They were identified within a 3-400m thick Palaeocene volcanic rock sequence, in particular an approximately 100m thick unit of inter-bedded basaltic lava flows.
Rosebank has “proven crestal hydrocarbons” in several separate zones on a large structure. The big challenge is taking full account of the volcanic rocks … basalts that get progressively thicker towards the west — and of course the Faroes. Indeed, basalt remains and will always present the greatest challenge to detecting hydrocarbons anywhere on the Faroese Shelf.
While there remains a lack of clarity over just how many exploration/appraisal wells might be drilled this year outside the core UK West of Shetland producing fields.
Clair and the Foinaven/Schiehallion cluster, there should be at least four and perhaps as many as six or seven, some of which are highly relevant to the Faroes.
Shell is due to drill South Uist using the super-rig Leiv Eiriksson, newcomer Chrysaor wants to drill Solan in a bid to revive the moribund discovery, Faroe Petroleum plans to appraise Freya subject to a suitable farm-in deal and a rig being secured; and Hess is apparently going back to probe Cambo again.
South Uist: Shell has said hardly a thing about this probe, even when approached for a statement. This prospect is located on block 214/21a and lies north of the Torridon gas discovery and east of Rosebank. It IS BEING drilled using the Norwegian super-rig Leiv Eiriksson as part of a three-well sequence — one each on the UK and Irish Atlantic sectors and the third in Norwegian waters. Unfortunately the program was already running several months behind schedule … even before drilling on South Uist started.
Solan: It was in 1990 that Amerada Hess made the Strathmore discovery (well 205/26a-3), closely followed by the Solan find (well 205/26a-4) in 1991. But the initial excitement gave way to a hard slog and failure to formulate a commercially credible project. The acreage was ultimately relinquished back to the British government.
That might have been it, but for former Hess man and successful exploration & production company entrepreneur Phil Kirk who, in 2007, went to the UK authorities to negotiate securing 100 percent control of the block containing Solan/Strathmore.
The upshot is that he is planning an appraisal well in July this year in a bid to firm up reservoir size with a view to moving rapidly towards development, either as a standalone though most likely a tieback to the nearby Schiehallion field operated by BP and which is itself scheduled for a major revamp that will involve a major overhaul of the current production ship, or maybe even replacement.
The rig Byford Dolphin has been contracted to drill Solan with Senergy of Aberdeen managing the project.
Cambo: Also very close to the Faroe sector, the 204/10-1 Cambo well drilled by Hess in 2003 has been the subject of much speculation. It seems that what is known in the trade as a “four-way dip enclosure” will also be drilled this year. Rumors are persistent but, as yet, no hard evidence has come to hand.
Freya: Another hopeful for drilling this year, Freya is running many years behind schedule, bearing in mind that operator Faroe Petroleum once thought it could be developed and onstream by 2005.
However, this analogue and near neighbor to BP-operated Clair will only be drilled if 100 percent interest holder Faroe can entice a farm-in partner to spread the risk, which is low as a significant column of hydrocarbons was encountered when the field was initially drilled by Mobil in 1984.
Among the several other possibles for drilling in 2008 is OMV-operated Tornado. Even if the timetable slips another year, the view is that success on this prospect could transform the Suilven (UK) and Marjun (Faroe) corner by offering scope for joint development.
And will Total be back to appraise its 2007 discovery Tormore, which appears to offer the key that should finally unlock the French group’s long planned Laggan gas development?
So, yet another mini-annual review ends with a distinct lack of tangible results in Faroese waters. But never forget the saying “hope springs eternal,” nor should it be forgotten that, despite over 35 years of exploration, 141 exploration wells, and a number of significant discoveries, UK acreage West of Shetland has yet to fully realize its potential.
|
|
|
Energy, Oil & Gas