E&P Highlights: Jan. 21, 2025

From a remote surface vessel exploring off the coast of Norway to a Department of Energy grant supporting methane emissions reduction technology, below is a compilation of the latest headlines in the E&P space.

Activity

Talos Discovers Oil, Gas at Katmai West Well

Talos Energy Inc. said that the Katmai West No. 2 well in the Ewing Bank area of the U.S Gulf of Mexico found commercial quantities of oil and natural gas.

The well was drilled to a true vertical depth of approximately 27,000 ft. It “encountered the primary target sand full-to-base with over 400 feet of gross hydrocarbon pay and excellent rock properties in line with pre-drill expectations.”

Expected deliverability from the well is in line with pre-drill estimates of 15,000 boe/d-20,000 boe/d. First production is expected in late second-quarter 2025.

Flowserve Chosen for ADNOC Carbon Capture Project

Abu Dhabi National Oil Co. (ADNOC) has contracted Flowserve Corp. to supply dry gas seal and dry gas seal systems for a carbon capture project in the Middle East, Flowserve said Jan. 14.

Flowserve’s systems will be integrated into two high-pressure injection packages to be installed in ADNOC’s Habshan gas plant, provided by Celeros Flow Technology in collaboration with Flowserve. It will be the first continuous supercritical CO₂ (sCO₂) pump injection service for EOR.

The injection packages, using Celeros’ high-pressure BB5 pump technology, will transport the captured sCO₂ via pipeline from the Habshan facility to ADNOC’s Bab Far North Field Development CO₂ storage hub.

ADNOC’s carbon capture and storage project will capture and store 1.5 million tons of CO₂ annually. The project is part of ADNOC’s plans to increase its carbon capture capacity of 5 million tons annually.

Vår Energi Makes Gas Discovery in Barents Sea

Vår Energi ASA and its partners reported found gas in the Elgol prospect in the Barents Sea. Under current price assumptions, the discovery isn’t profitable, the companies said.

Exploration well 7122/9-2 is the first in production license 1131, which was awarded in 2021. Exploration activity will continue throughout this year and in 2026.

Kongsberg Maritime Delivers Remote Surface Vessel

Kongsberg Maritime has designed and delivered an uncrewed surface vessel that will conduct underwater surveys off the coast of Norway. The ship, named Reach Remote 1, is the result of Kongsberg’s collaboration with Reach Subsea ASA, Massterly and Trosvik Maritime.

Massterly, a joint venture between Kongsberg and Wilhelmsen, will control the vessel from an operations center in Horten, Norway. In trials before delivery, it was monitored and controlled from a nearby support vessel.

The operators plan to gradually increase the ship’s remote and autonomous functionality. Kongsberg said the remote vessel “offers significant advantages” in costs, safety and emissions compared with a crewed vessel.

A second vessel, Reach Remote 2, is expected to begin sea trials soon.

Kongsberg Maritime was prime contractor for the project, taking responsibility for vessel design, yard delivery, supply chain management, systems integration and commissioning.

“As the world transitions towards more sustainable and efficient operations, this pioneering class of vessel is poised to play a vital role in shaping the future of offshore activities,” said Lisa Edvardsen Haugan, president of Kongsberg Maritime.

Contracts and company news

H&P Completes Acquisition of KCA Deutag

Helmerich & Payne Inc. (H&P) has completed its acquisition of KCA Deutag International Ltd. The $1.97 billion deal was announced in July.

H&P said it expects to accelerate international growth, particularly in the Middle East, and strengthen its cash flow with a more diversified revenue stream.

H&P’s headquarters will remain in Tulsa, Oklahoma, and John Lindsay continues to serve as president and CEO. Joseph Elkhoury, CEO of KCA Deutag, will not continue with H&P.

Envana Awarded DOE Grant to Advance Methane Technologies

Envana Software Solutions has been awarded a $4.2 million grant by the U.S. Department of Energy (DOE) to advance oil and gas methane monitoring and mitigation technologies. The funding is part of the DOE's Methane Emissions Reduction Program.

Envana’s oil and gas greenhouse-gas emissions management platform integrates operational data with methane detection and measurement inputs from multiple sources, helping customers improve their leak detection and repair programs, the company said.

With the grant, Envana will further expand its artificial intelligence and physics-based models by integrating production facility sensor data with methane monitoring sensors.

Regulatory updates

North Dakota Oil, Gas Output Rose in November

North Dakota produced 36.6 MMbbl of oil in November, or 1.22 MMbbl/d, the state’s Department of Mineral Resources reported in a preliminary estimate. October’s production was finalized at 36.5 MMbbl, or 1.18 MMbbl/d.

The November estimate for natural gas production was 3.46 MMcf/d, up from October’s final number of 3.42 MMcf/d.

The current rig count of 31 is down from 39 in October, 37 in November and 36 in December.