E&P Highlights: Oct. 14, 2024

From CNOOC seeing record production to a “substantial” contract from BP, below is a compilation of the latest headlines in the E&P space.

Activity headlines

Chevron Suspends Expansion Work on Israel’s Leviathan Gas Field

In wake of the ongoing Israel-Gaza conflict, Chevron has suspended the planned expansion of Israel’s Leviathan gas field, partner NewMed Energy said Oct. 7.

As one of the largest deepwater gas discoveries, the Leviathan gas field sits in 1,645 m of water and is estimated to contain 22 Tcf of gas.

This expansion was part of a broader strategy to enhance the Leviathan Field’s total gas production capacity to up to 21 Bcm annually. The delay affects the installation of the third subsea transmission pipeline, which would increase gas supply to the country’s natural gas lines by 2 MMcf/d. Work is expected to resume in April 2025.

Chevron Mediterranean operates the field with a 39.66% stake. NewMed Energy owns a 45.34% stake in the field, with Ratio Energies holding the remaining 15%.

CNOOC Achieves Record Production from Deep Sea #1 Field

CNOOC announced Oct. 14 a record-breaking cumulative production of 9 Bcm of natural gas and over 900,000 cu. m of crude oil from its Deep Sea #1 Field.

Deep Sea #1, China’s first independently developed ultradeep water gas field, began operations in June 2021. CNOOC is currently completing the second phase of development for the field, focusing on the gas reserves in the South China Sea. The company hopes to eventually tap into the 50 Bcm of natural gas reserves.

In a separate milestone, CNOOC recently drilled a well in the Liwan 4-1 structure of the Pearl -River Mouth Basin, marking what it called a major exploration achievement in ultradeep water.

Woodside Completes Scarborough Project Trunkline Installation

Australia’s Woodside has completed of the 433 km trunkline installation for the Scarborough Energy project offshore Australia, the company said Oct. 11.

The trunkline will transport gas from the Scarborough Field, located in the Carnarvon Basin offshore Western Australia, to the onshore Pluto LNG facility in Karratha.

The Scarborough Energy project includes installation of a semisubmersible floating production unit and the drilling of eight wells in its initial phase. The project is expected to provide 225 terajoules per day of domestic gas supply into the Western Australian market.

The project is more than two-thirds complete with first LNG cargo expected in 2026.

Contracts and company news

Shell Awards KBR with Engineering and Procurement Contract for the Manatee Gas Field

KBR has been awarded an engineering and procurement services contract for the Beachfield Manatee upgrade, the onshore portion of Shell’s Manatee gas field project, the company said Oct. 14.

KBR will provide engineering and procurement services for Shell’s Manatee project, located in the East Coast Marine Area of Trinidad and Tobago.

Manatee is slated to start production in 2027. Once online, Manatee is expected to reach peak production of approximately 104,000 boe/d, according to Shell’s website.

The award follows recently completed contracts under which KBR successfully delivered the FEED as an integrated member of Shell’s development team across the whole of the Manatee project, which provides gas for the country’s Atlantic LNG facility.

C-Innovation Awarded Multiyear IMR Contract by BP

C-Innovation, an affiliate of Edison Chouest Offshore, has signed a new three-year contract with BP for field development and inspection, maintenance and repair (IMR) work.

The contract, announced Oct. 14, has options for two one-year extensions and includes the provision of two subsea light construction vessels, as well as access to a fleet of specialized subsea and supply vessels. It also includes project management, engineering, equipment, logistics and port services.

The two vessels, the C-Constructor and Holiday are equipped with 150-mt subsea cranes and two Schilling UHD work class ROVs each.

Shelf Drilling Announces New Contracts in West Africa

Shelf Drilling Ltd. has secured new contracts for two jackup rigs offshore Nigeria, the company said Oct. 10.

Shelf has now fully executed a three-year contract for the Shelf Drilling Achiever jackup rig for operations offshore Nigeria. The contract includes an option for up to two years at rates to be mutually agreed. Operations are planned to begin in October.

In addition, the company secured a two-year extension for the Adriatic I jackup rig that will begin February 2025 in direct continuation of the rig’s current contract in Nigeria. The extension has an additional one-year option.

The combined contract value for the five-year total firm period added for the two rigs, excluding mobilization and demobilization revenue, is $234 million.

TechnipFMC Awarded Contract for BP’s Greenfield Kaskida Development

TechnipFMC has been awarded an integrated engineering, procurement, construction, and installation contract for BP’s greenfield Kaskida development in the Gulf of Mexico.

The scope includes the design and manufacture of subsea production systems, including 20,000-psi standardized subsea trees and manifolds as well as the design, manufacture and installation of subsea umbilicals, risers and flowlines.

The contract, announced Oct. 7, is valued between $250 million and $500 million.