E&P Highlights: Nov. 18, 2024

From production startups to global rig fleet additions, below is a compilation of the latest headlines in the E&P space.

Activity headlines

Equinor Makes Discovery in the North Sea

Equinor struck oil and gas near the Fram field in the North Sea, the company said Nov. 14.

The discovery, which marks the first find in the area in 2024, was made on the Rhombi prospect, and is estimated to hold between 13 MMboe and 28 MMboe. Equinor holds a 45% stake in the license, with Vår Energi holding 40% and INPEX Idemitsu Norge holding 15%.

The license owners will consider tying in to existing infrastructure and other prospects in the area.

GeoPark Announces Production Start at Argentina’s Confluencia Norte

GeoPark Ltd. said Nov. 12 that production at the Confluencia Norte Block in Rio Negro, Argentina, has begun.

The Confluencia Norte Block recently completed its first pad of three unconventional wells, which began production in mid-October. The pad includes a vertical pilot well and three horizontal wells reaching a total measured depth of 6,300 m. Gross production has reached 4,000 bbl/d, with production being transported to the Mata Mora Norte Block facility. The wells are expected to reach peak production within 90 days.

“The start of production at the Confluencia Norte Block in Rio Negro Province is a significant milestone, marking our first major exploration achievement in Vaca Muerta and validating the immense potential that underpinned our entry into this world-class basin,” GeoPark CEO Andrés Ocampo said in a press release.

GeoPark holds a 50% working interest in the block and operator Phoenix Global Resources (PGR) holds the remaining 50%.

As part of its exploration commitment in the Confluencia Norte and Sur blocks, PGR has completed the acquisition of 228 sq km of 3D seismic data, which is currently undergoing interpretation. PGR and GeoPark are working to expand the exploration and development of these assets.

Contracts and company news

Equinor Brings On Another Rig in Norwegian Continental Shelf

Equinor has awarded a two-year firm contract to Northern Ocean to employ the mobile rig Deepsea Bollsta on the Norwegian Continental Shelf.

The $335 million contract, announced Nov. 18, has a planned start-up in the later part of 2025. The contract’s value does not include integrated rig services or mobilization/demobilization fees. The contract also includes five one-year options.

Deepsea Bollsta is a sixth-generation harsh-environment winterized mobile rig. The rig is currently drilling in Namibia but has a previous track-record for operations in Norway. The rig will be operated by Odfjell Drilling.

Additionally, Northern Ocean signed a letter of intent with an undisclosed operator for one well work in Norway, to be completed in advance of the Equinor contract.

Elemental Energies, Archer Enter P&A Joint Venture

Elemental Energies and drilling and well services company Archer are partnering to deliver integrated plugging and abandonment (P&A) services to global decommissioning projects, the companies announced Nov. 13.

“This joint venture (JV) will help deliver highly efficient planning and design, with the ability to integrate best in class barrier philosophy with deep knowledge of most effective methods to plug and abandon various well types. Ultimately, this will help drive down costs of permanent P&A for our clients around the world,” said Dag Skindlo, CEO of Archer, in a press release.

By combining Archer's well services technology and Elemental's technical expertise, the JV is expected to offer end-to-end well abandonment solutions, deliver integrated planning and execution for large-scale campaigns, maximize efficiency and reduce cost, the companies said.

Rival Downhole Tools Expands to Meet Drilling Demand

Drilling technology provider Rival Downhole Tools said Nov. 14 it is continuing international expansion with the establishment of new legal entities in Canada and Mexico as well as strategic partnerships in the Middle East.

Building upon established U.S. operations, Rival is focused on delivering its STORM Tool, AXE Tool, JOLT Tool and its new line of TORX Drilling Motors to a wider client base in North America.

In addition to its North American growth, Rival has entered into multi-year agreements with Gas & Oil Technologies (GOtech) in Saudi Arabia, Almansoori Specialized Engineering in the UAE and Titan Tools in Europe.

Regulatory updates

Trump Nominates Burgum to Serve as Interior Secretary and Chair New National Energy Council

President-elect Donald Trump announced Nov. 15 his nomination for North Dakota Gov. Doug Burgum to serve as the U.S. secretary of the interior and chairman of the newly formed National Energy Council.

As Interior Secretary, Burgum will lead the U.S. Department of the Interior, a Cabinet-level agency managing the nation’s natural and cultural resources. The department provides access to more than 500 million acres of public lands, 700 million acres of subsurface minerals and 1.7 billion acres of the Outer Continental Shelf.

The new National Energy Council will consist of all departments and agencies involved in the permitting, production, generation, distribution, regulation and transportation of all forms of American energy, Trump said.

“The National Energy Council will foster an unprecedented level of coordination among federal agencies to advance American energy. By establishing U.S. energy dominance, we can jumpstart our economy, drive down costs for consumers and generate billions in revenue to help reduce our deficit,” Burgum said. “Focusing on innovation over regulation to solve the nation’s challenges will allow us to smartly expand American energy and make our world cleaner and safer by selling energy to our friends and allies versus them having to buy it from our adversaries.”