E&P Highlights: June 12, 2023

From the Tyrving project approval to a flurry of contract awards, below is a compilation of the latest headlines in the E&P space.

Activity headlines

Aker BP’s Tyrving Tie Back Gets Go-Ahead

Aker BP announced June 8 that the Norwegian Ministry of Petroleum and Energy has approved the plan for development and operation (PDO) for Tyrving, which was previously known as Trell & Trine, in the Alvheim area of the North Sea.

Aker BP and its partners submitted the PDO to authorities in August 2022, and investments to recover the roughly 25 MMbbl of oil are estimated at $700 million. Production will be tied back to the Avlheim FPSO.

The FPSO has been online for 15 years. When the FPSO for the Alvheim Field was submitted in 2004, recoverable reserves were estimated at 171 MMboe, and production exceeded that volume in 2014, Aker BP said. Production from the Alvheim area has now exceeded three times the PDO estimate.

Aker BP operates Tyrving with 61% interest on behalf of partners Norway’s state-owned Petoro with 27% and Poland’s PGNiG Upstream Norway with 12%.

Contracts and company news

Aker BP Extends Subsea7 Frame Agreement

Subsea7 announced on June 6 its frame agreement with Aker BP had been extended for four years to the end of 2028. The agreement covers the provision of engineering, fabrication and installation activities for subsea umbilical, risers and flowlines as part of Aker BP’s field developments on the Norwegian continental shelf.

New Mapping Service Uses Close to Bit Tool

A new near-bit shallow and ultra-deep resistivity service is intended to increase well placement accuracy.

On June 6, Halliburton Co. introduced its EarthStar X service as part of its iStar intelligent drilling and logging platform. The service company says the EarthStar X service's near-bit, ultra-deep reservoir mapping sensor increases well placement accuracy — detecting geological changes early and enabling quick well trajectory correction to remain in the most productive zones and maximize asset value. Integrated shallow resistivity measurements allow early reserves evaluation and accurate fluid characterization to further improve reservoir insight while lowering operational complexity and risks.

The EarthStar X service maps geology in three dimensions using ultra-deep azimuthal resistivity measurements and inversion processing to geosteer, geostop and geomap. Real-time fluid and bed boundaries visualization can place the well in the reservoir's most productive zone and increase the section's net-to-gross value, the company said. The industry's closest ultra-deep azimuthal resistivity sensor to the bit can detect formation changes early and make timely well path adjustments to avoid early exits.

CGG Announces Sercel Awards

CGG announced Sercel had made a pair of sales — one a seabed nodal solution and one for land acquisition.

On June 6, CGG announced that Sinopec had purchased more than 6,000 GPR300 seabed nodes from Sercel for deployment this month in the Bohai Sea on the east coast of China.

In a separate sale, CGG said on June 7 Sercel will deliver a 60,000-channel 508 XT land acquisition system and 25 VE464 digital vibrator control sets to a North African geophysical services provider. The equipment will be deployed on a 3D mega-crew project in harsh terrain and desert conditions in North Africa.

Perenco Signs 20-year PSC For Cameroon Acreage

Perenco announced June 12 it had signed a new 20-year production-sharing contract (PSC) for the continued development of the Rio del Rey Basin, offshore Cameroon. Since acquiring the Rio del Rey Basin acreage over a decade ago, Perenco has maintained average production of 35,000 bbl/d. Peak production reached 65,000 bbl/d in 2016.

Armel Simondin, CEO of Perenco’s Rio del Rey subsidiary, said in a press release that the new contract will enable the operator to modernize facilities, reduce emissions, further explore the area and develop satellite projects.

Project to Test Coriolis Meters for Multiphase Flow 

TÜV SÜD National Engineering Laboratory, a U.K. flow measurement technology lab, announced on June 7 that it had launched an international research project to validate the performance of Coriolis meters when used in multiphase flows. The research aims to increase confidence in measurement results and improve fiscal accuracy for oil and gas operators.

While Coriolis meters are one of the most accurate flow metering technologies for single phase flow measurement, they are increasingly being used for multiphase flow situations. Operators, however, have no way to substantiate the multiphase performance in both flowrate and density measurements.

Chris Mills, a senior consultant, said the lab is seeking partners to join the project.

Aramco Taps Weatherford for Drilling Services

Service company Weatherford International announced that Aramco had awarded it a three-year contract to deliver drilling services, according to a June 8 press release. Under the contract, Weatherford will deploy its drilling services portfolio, which includes a suite of technology that combines services, real-time information analysis and drilling tools.

TGS Starts GoM OBN Survey

TGS announced June 8 it started the Engagement 4 ocean-bottom node (OBN) multi-client acquisition in the U.S. Gulf of Mexico (GoM) covering 152 Outer Continental Shelf (OCS) blocks.

According to TGS, the survey extends contiguous data coverage from prior phases into the western Green Canyon area. Fast-track products will be made available in fourth-quarter 2023, with final processing completion scheduled for the second half of 2024.

Aker Solutions to Use SWIFT Tool for Equinor

Aker Solutions has been awarded an Equinor contract to deliver submersible wireless installer for tubing (SWIFT) for 18 tubing hanger installations on the Johan Castberg Field in the Barents Sea, the company said on June 12.

The project, expected to take two years, is slated to begin in June 2024.

Aker Solutions developed the SWIFT remotely-operated tubing hanger (TH) tool in partnership with Envirex, and the tool will be manufactured at their facilities in Norway.

Aker Solutions said the tool will provide opex and carbon-footprint savings for operators by providing umbilical-less TH installations and retrievals to streamline operations. For Equinor’s Johan Castberg installations, SWIFT will eliminate the need for 60 tons of topside equipment and associated maintenance and transport, Aker Solutions said.

Gulf Marine Services Reports Extensions

Gulf Marine Services announced on June 12 two contract extensions for work in the Gulf Cooperation Council region.

The first contract award involves the extension of a large class vessel until the end of November 2023 and the second for a small class vessel until the end of March 2024.

The council is a political and economic alliance made up of Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain and Oman.

Well Servicing Manual Updated

Energy Workforce & Technology Council, a national trade association, announced on June 8 it is releasing the latest editions of its well servicing reference manuals.

The Energy Workforce Well Servicing Committee has updated and improved upon the Basic Data Manual for Well Servicing Operations (blue book), in addition to revising and modernizing the Recommended Best Practices and Guidelines for Oil and Gas Well Servicing Operations. The updated versions will be available to Energy Workforce members as well as others in the industry.   

Regulatory updates

BSEE to Award Orphan Wells Work

An investment of $3 million from the Bipartisan Infrastructure Law will be used to help reduce the risk of pollution from orphaned infrastructure on the federal OCS, Kevin Sligh, director of the Bureau of Safety and Environmental Enforcement Director (BSEE), announced on June 8.

The funding is intended to support BSEE decommissioning service contracts in the Matagorda Island area in the GoM. The funds are part of a nearly $64 million commitment from President Joe Biden’s agenda to address orphaned oil and gas wells on public lands.

BSEE plans to award contracts to address nine orphan wells and associated pipelines and platforms in the Matagorda Island lease area approximately 12 miles off the Texas coast, with initial contracts addressing the most immediate and urgent needs to reduce the risk of safety incidents and pollution in preparation for well-plugging operations.