E&P Highlights: Nov. 4, 2024

From a major discovery in the North Sea to a large acquisition in the U.K., below is a compilation of the latest headlines in the E&P space.

Activity headlines

Brazil’s Mero-3 Offshore Development Reaches First Oil

Less than a year after the startup of Mero-2, the third development phase of the Mero Field offshore Brazil, Mero-3, has produced first oil, TotalEnergies announced Oct. 30.

Located in the Libra Block, 180 km off the coast of Rio de Janeiro in the Santos Basin, Mero-3 includes 15 wells connected to the Marechal Duque de Caxias FPSO, with a production capacity of 180,000 bbl/d of oil. With the start-up of Mero-3, the overall production capacity of the Mero field will reach 590,000 bbl/d.

Mero-3 was designed to minimize greenhouse-gas emissions, with reinjection of the associated gas into the reservoir and zero routine flaring. The project’s FPSO will later be connected to the HISEP pilot project. Currently under development, the pilot project will separate oil from CO2-rich gas at the bottom of the ocean and reinject the gas directly into the reservoir.

Mero-4, an additional development phase of 180,000 bbl/d, is currently under construction, with start-up expected in 2025.

Petrobras is the operator of the Mero field with a 38.6% stake. TotalEnergies and Shell Brasil each hold a 19.3% stake and CNPC and CNOOC each have a 9.65% stake in the field. Pré-Sal Petróleo SA holds the remaining 3.5%.

Deltic Energy Discovers Significant Gas at the Selene Prospect in UK

Deltic Energy announced a significant gas discovery at the Selene prospect in the southern North Sea.

The Shell-operated 48/8b-3Z well reached a total depth of 3,540 m, encountering a 160 m-thick section of Leman Sandstone, a key indicator of the presence of gas. Wireline logging and fluid sampling confirmed a live gas column above a gas-water contact at approximately 3,370 m, with a downhole test confirming better-than-expected reservoir quality.

Deltic’s updated volumetric model estimates that the Selene discovery contains gross P50 ultimate recoverable resources of 131 Bcf, aligning with the lower end of pre-drill forecasts. The discovery’s recoverable resources are predominantly located in high-quality B-Sand, potentially enabling a more cost-effective development with higher gas production per well than initially projected.

Contracts and company news

Wood Secures Engineering Contract From Saudi Aramco

Consulting and engineering company Wood has secured a significant engineering services contract for Aramco’s Southern and Northern Areas gas increments project in Saudi Arabia.

Wood will deliver project management consultancy services, including pre-FEED and FEED engineering for gas facilities in Eastern Saudi Arabia. Additionally, Wood will extend support for engineering, procurement and construction contracting in the forthcoming phases of the project.

The project, which is planned to take one million engineering hours to execute, will support the country’s goal of increasing natural gas production.

PipeSense, EnControl Collaborate to Combat Pipeline Leaks

PipeSense, a provider of AI-enhanced pipeline monitoring and leak detection technology, announced the successful installation of three of its systems in the U.S. on Oct. 29. 

Supporting EnControl, a third-party control room company, PipeSense deployed its specialized ‘PipeSentry’ solutions to two separate natural gas systems and one natural gas liquids system. PipeSense was able to achieve 24/7 monitoring using its PipeGuard detection system, which has been proven to accurately detect leaks without the risk of false positives. 

Additionally, PipeSense was asked to provide automatic shut-in valve (ASV) control at one site location, which it was able to achieve through its system configuration capabilities.

Enovate AI Partners with SGS to Enhance Drilling Performance

Enovate AI will partner with SGS, a leader in testing, inspection and certification, the company announced Oct. 31.

The partnership aims to revolutionize drilling efficiency in the oil and gas industry through the application of AI-driven bottom hole assembly (BHA) optimization, specifically focusing on roller reamer placement.

The collaboration leverages Enovate AI's advanced real time AI to optimize BHA configurations, optimizing the placement of roller reamers within the BHA. The optimized placement of roller reamers is expected to lead to significant cost savings by reducing the frequency of equipment failures and minimizing downtime.

The partnership will enable drilling operators to make more informed decisions based on real-time data and predictive analytics, leading to better outcomes and more efficient drilling operations. This approach looks to significantly enhance drilling performance, reduce wear and tear on equipment, improve wellbore quality and increase overall productivity in drilling operations.

Drilling Tools International to Buy UK’s Titan Tools Services

Houston’s Drilling Tools International (DTI) signed a definitive agreement Oct. 29 to acquire Titan Tools Services Ltd., a downhole tool rental company, for an undisclosed sum, according to a press release.

DTI said the acquisition of U.K.-based Titan will enhance the global oilfield services company's product offerings and strengthen its market presence in the North Sea, Europe and Africa.

The proposed transaction continues a steady march of consolidation in the oilfield services sector, including Flowserve Corp.’s recent acquisition of MOGAS Industries for $305 million and Nabors Industries Ltd.’s agreement to acquire Parker Wellbore for about $370 million, among other deals.

"This strategic acquisition aligns perfectly with our global growth strategy," said Wayne Prejean, CEO of Drilling Tools International. "Titan's strong presence in the UK North Sea, Europe and Africa will allow us to better serve our international customers. By combining our expertise in downhole drilling tools with Titan's commitment to service and support, we'll be able to offer a more comprehensive suite of solutions to the oil and gas and geothermal drilling industries worldwide.”

The acquisition of Titan expands DTI’s geographical footprint but also enhances its technological capabilities, positioning the company to provide customers with access to a wider array of products and services, Prejean said.

Bruce Jepp, managing director of Titan Tools, said the transaction will allow the company to leverage DTI's extensive distribution network and technological expertise. Together, the companies will be able to accelerate market adoption of tools, including Drill-N-Ream and Fixedblade stabilizer, “setting new industry standards.”

The transaction is expected to close in first-quarter 2025, subject to customary closing conditions and regulatory approvals.