From an expansion of a robotic truck agreement to multiple drilling partnerships, below is a compilation of the latest headlines in the E&P space.
Activity
CNOOC Brings Wenchang Field Development Online
CNOOC Ltd. said its Wenchang 9-7 project has begun producing oil, with plateau production expected to reach about 12,000 boe/d in 2027.
The project is in the western Pearl River Mouth Basin offshore China, with an average water depth of approximately 120 m. The main production facility is a new drilling and production platform, which leverages the adjacent existing facilities for development.
The plans call for 18 production wells and seven gas injection wells. The oil property is light crude.
CNOOC is the owner-operator.
Drilling Starts at Becos-1 Well in Perth Basin
Triangle Energy Global said its Becos-1 exploration well in Australia’s Perth Basin has commenced drilling.
Becos-1 is being drilled by the EP 437 joint venture (JV). Triangle is operator and owns 50% of the JV, with Strike Energy and Echelon Resources at 25% each.
The Becos-1 well will target a fault-bounded structure at the basal Triassic, Bookara Sandstone horizon. Triangle’s best estimate of the formation is 5 MMbbl, with a range of 1 MMbbl to 21 MMbbl.
Contracts and company news
Kodiak Says it Has 100-Truck Commitment from Atlas
Kodiak Robotics Inc. said it has secured a firm commitment from Atlas Energy Solutions for an initial order of 100 driverless trucks. Atlas, which delivers proppant to companies operating in the Permian Basin, began using Kodiak’s technology in two trucks in December.
By the end of February, the trucks had made 300 deliveries.
Atlas and Kodiak began working together in July 2024. A company spokesman confirmed the claim and had no further comment, as the company is in a quiet period before announcing its earnings May 5.
The disclosure came as part of Kodiak’s announcement that it entered into an agreement to become a publicly traded company through a business combination with Ares Acquisition Corp. II, a special purpose acquisition company.
SPIE Awarded Maintenance Contract with Sonangol for Block 3/05
SPIE Global Services Energy has announced the signing of a five-year contract with Sonangol E&P for the general maintenance of the Block 3/05 oil complex in Angola.
This contract, which commenced in early September 2024, covers the offshore maintenance of the Cobo, Pacassa and Palanca platforms in Block 3/05, about 200 km off the coast of Luanda.
ROGII Announces Partnership with Petrobras
ROGII, a Houston-based provider of geosteering software and subsurface analytics solutions, has reached a five-year agreement with Petrobras, marking its entry into Brazil.
Petrobras will use ROGII’s real-time inversion technology to improve operations and get more out of reservoirs.
EnerMech Secures Contract for Anasuria FPSO in North Sea
EnerMech has been awarded a three-year cranes and lifting services contract for the Anasuria floating production storage and offloading (FPSO) vessel, 127 km east of Aberdeen in the central North Sea.
Under the contract, awarded by Anasuria Operating Co., EnerMech will continue to provide its core crew of crane operator and mechanics to conduct maintenance and operations, as well as additional personnel for any major maintenance and project-related work.
Regulatory updates
10th District Energy Activity Up Slightly, Kansas City Fed Reports
Energy activity in the 10th District rose slightly in the first quarter, the Federal Reserve Bank of Kansas City’s quarterly survey showed.
“District drilling and business activity grew modestly for the first time since Q4 2022 as oil and gas prices showed strength in Q1,” said Megan Williams, associate economist and survey manager at the Kansas City Fed.
The survey was conducted March 17-31. The 10th District covers all of Oklahoma, Kansas, Nebraska, Wyoming and Colorado, along with western Missouri and northern New Mexico.
Firms reported oil prices needed to reach $65/bbl for drilling to be profitable, and $85 to prompt a substantial increase in drilling. For natural gas, those numbers were $3.80/MMBtu and $5.10/MMBtu.
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