BP announces  that it has agreed to sell its 60% interest in the Polvo oil field in Brazil to HRT Oil & Gas Ltda for $135m in cash. Subject to regulatory approvals, BP expects the deal to close in the second half of 2013.

“Over the past two years BP has built a significant portfolio of upstream interests in Brazil which offer long term growth potential. We are now actively engaged in exploring this new acreage,” said Guillermo Quintero, BP Brazil President. “The sale of our interest in the Polvo field is part of our ongoing global portfolio optimization as we reposition the company for long-term growth.”

BP currently has interests in fourteen exploration and production blocks in Brazil. BP purchased interests in ten exploration and production blocks – including the shallow-water Polvo field – from Devon Energy in 2011 and farmed into four deepwater blocks operated by Petrobras a year later. Earlier this year BP announced a successful flow test at its operated Itaipu discovery in the Campos basin, one of the blocks acquired from Devon.

The Polvo field is located in the southern part of Campos basin, approximately 100 kilometres off the coast of Rio de Janeiro, in water depths of around 100 metres. Commercial production started in 2007 and BP has operated the field since its acquisition from Devon. The other 40% stake in the field is owned by Maersk.

Polvo currently produces approximately 13,000 barrels of oil per day, with BP taking a 60% share.

Genel Energy has signed a drilling rig contract with Noble Corporation for its African offshore drilling program. The Noble Paul Romano deepwater, semi-submersible rig (photo) will be used to deliver a high impact drilling campaign over a 2 year period, starting in the last quarter of 2013.

The rig, which is currently undergoing a special 5 year class survey in Valletta, Malta, has a rated water depth of up to 1,800 meters and a drilling depth of approx. 7,500 meters.

AGR will be providing drilling management services.

Commenting on the secured rig contract, Dr. John Hurst, Head of Exploration for Genel, said:

'We are very pleased to have concluded the rig contract with Noble. This rig is capable of drilling all of Genel Energy’s off shore wells in the African portfolio and will be available to us for our first well in the fourth quarter. Securing the rig is an important component of our commitment to deliver an exploration drilling campaign of 5-6 high impact wells per annum, targeting over 3.3 billion boe of net unrisked prospective resources.

Petrobras announces that it has signed a Sale and Purchase Agreement (SPA) for the sale of the 20% stake the company holds in exploratory blocks KC 49, 50, 92, 93, 94 and 138 in the US Gulf of Mexico. These blocks make up the asset known as Gila, and the operator is British Petroleum (BP).

Petrobras will receive US$ 110 million for the transaction and additional equity in an exploratory block adjacent the Tiber field, where Petrobras is already operating and has discovered reserved. This transaction is part of Petrobras' divestment program, outlined in the 2013-2017 Business & Management Plan, and is subject to third party preferential rights and approval by the U.S. Bureau of Ocean Energy Management (BOEM).

Total announces that the Ivoire-1X exploration well, located in the western portion of Block CI-100 in 2,280 meters of water, encountered 28 meters of net oil pay in a series of about 100 meters of Cretaceous reservoirs. The oil in the abrupt margin geological play is light 35  API oil.

Operated by Total E&P Côte d’Ivoire, Ivoire-1X is the first well drilled on the CI-100 block. It was drilled to a total depth of 5,044 meters.

The well confirms the extension into Block CI-100 of the already proved active petroleum system in the prolific Tano basin, home to several fields, including Jubilee in Ghana.

The data acquired during drilling is being analyzed to develop an appraisal program for the reservoirs discovered and explore identified prospects further east in the block, near recent discoveries in Ghana.

Total E&P Côte d’Ivoire operates the block with a 60% interest, alongside Yam’s Petroleum LLC (25%) and Petroci Holding (15%).

Total Exploration & Production in Côte d’Ivoire

Total also has interests in three other ultra-deep offshore exploration licenses (CI 514, CI-515, CI-516) in Ivory Coast.

Pacific Rubiales Energy Corp. (TSX: PRE; BVC: PREC; BOVESPA: PREB) has confirmed an oil discovery in the Bilby-1 exploration well, drilling on block S-M-1166, in the Santos Basin, offshore Brazil.

The Bilby-1 well was drilled as part of an agreement announced by the Company on September 18, 2012, as a minimum work commitment for five offshore blocks (S-M-1101, S-M-1102, S-M-1037, S-M-1165 and S-M-1166), where the Company holds a 35% participating interest (subject to approval by Brazil's Agência Nacional do Petróleo, Gás Natural e Biocombustíveis ("ANP")).

Two additional exploration wells have been drilled on the blocks as part of the agreement, the Kangaroo-1 well, previously announced as an Eocene light oil discovery, and the Emu-1 well which was plugged and abandoned after failing to discover hydrocarbons in economic quantities.

As announced by the operator of the blocks, Karoon Gas Australia Ltd. (ASX: KAR) (see www.karoongas.com.au), the Bilby-1 well has been drilled to a measured depth of 3,854 meters (approximately 12,645 feet).  Oil is contained within an inter-bedded sand and shale interval of late Cretaceous age, confirmed from sampling over a 200 meter (656 foot) gross section so far.  The discovery has been verified by wireline petrophysical, pressure data, fluid sampling and mudlog analysis.  The well is positioned approximately 150 meters (492 feet) down dip from the trap crest (as interpreted on seismic data).

Wireline testing of the discovery is continuing, with full results expected over the coming week.  The well will then drill ahead as planned to an expected measured depth of 4,573 meters (approximately 15,000 feet).

Saipem has contracted BMT Scientific Marine Services (BMT) a subsidiary of BMT Group Ltd,  to provide riser monitoring systems for two Free Standing Risers (FSHRs) and four Steel Lazy Wave Risers (SLWRs) for the Sapinhoá Norte and Cernambi Sul pre-salt fields offshore Brazil.

These systems will monitor the integrity of these risers by measuring strains, motions, attitude, and position of submerged portions of the riser strings. Each FSHR system will include BMT’s patent pending ROV-Serviceable Strain Sensor Assembly which allows users to service or replace individual sensors by ROV. BMT’s patented polypropylene welded attachment scheme for attaching strain sensors to submerged, insulated pipes will be employed on the SLWRs.

BMT brings valuable experience to this project having supplied five Free Standing Riser Integrity Monitoring Systems since 2007 covering a total of twelve riser towers, and two SCR monitoring Systems.  The award complements BMT’s extensive order book that includes integrity monitoring systems for three riser towers in West Africa and two in Brazil as well as for eight SCR’s in Brazil. In addition, BMT has in various stages of delivery six Marine Integrity Monitoring Systems for Floating Production Units.

Anadarko Petroleum Corporation (NYSE: APC) today announced its Phobos-1 well in the deepwater Gulf of Mexico encountered approximately 250 net feet of high-quality oil pay in Lower Tertiary-aged reservoirs.

“Our 2013 Gulf of Mexico exploration program is off to an outstanding start, as Phobos marks our third significant deepwater success this year,” Anadarko Sr. Vice President International and Deepwater Exploration Bob Daniels said. “Phobos is our first well in the previously untested Sigsbee Escarpment area of the Gulf of Mexico and successfully tested a significant four-way structure in the Lower Tertiary. Phobos’ close proximity to our Lucius project is expected to further enhance the economics of this potential future development.”

The Phobos discovery, located in Sigsbee Escarpment block 39, was drilled to a total depth of 28,675 feet in approximately 8,500 feet of water, approximately 11 miles south of Anadarko’s Lucius discovery, which is under development. Anadarko currently is incorporating the data from the Phobos well to determine future activities.

Anadarko is the operator of the Phobos discovery with a 30-percent working interest. Other co-owners in Phobos are Plains Exploration & Production Company (NYSE: PXP) with a 50-percent working interest and Exxon Mobil Corporation (NYSE: XOM) with a 20-percent working interest. 

Units will be built in Brazil, with 60% local content

On 04/18 Petrobras signed contracts for 23 support vessels, as part of the 3rd Fleet Renewal Plan for Offshore Support Vessels.

The units, type PSV 4500 and OSRV 750, fulfill 60% local content requirements and will be built in Brazil. Prices presented were competitive, given expected metrics and budgets.

This was the 4th Round of the Fleet Renewal Plan. In July this year, Petrobras will go to the market for another 24 offshore support vessels (5th Round), thus fulfilling the 2014 contracting target of 146 vessels to be built in Brazil, as planned in the 3rd Renewal Plan Fleet for Offshore Support Vessels.

Apache Corporation (NYSE, Nasdaq: APA) announced on Tuesday that its Tonto oil field in the United Kingdom sector of the North Sea commenced production on April 24, 2013. Tonto-1, the first producing well, came on stream at an initial rate of 10,346 barrels of oil per day. Apache holds a 100-percent working interest in the Tonto Field.

Tonto-1 was drilled as a deviated well from the Forties Bravo production platform. The appraisal wellbore encountered 62 feet of net oil pay in an Eocene-aged sandstone reservoir at a depth of 6,325 feet, which was followed by a horizontal completion lateral that logged 243 feet (measured depth) of net oil pay.

"Seismic inversion processing unlocked pay in the Tonto field, which lies above the main Forties Paleocene reservoir," said James L. House, Apache's regional vice president for the North Sea. "We penetrated Tonto several times in wells targeting Forties. New seismic techniques enabled Apache's North Sea geoscience team to gain a better understanding of Tonto and establish a development plan."

House noted that Apache has been working closely with the UK government to commence production ahead of a new 3-D seismic survey that will be acquired over Forties in July 2013. Tonto oil reserves produced in advance of this survey will allow geoscientists to image production patterns within the Eocene reservoir to optimize the placement of future Tonto producers. Drilling of an additional development well is currently planned by year-end 2013 following analysis of the 4-D (time lapse) seismic data.

Tonto follows Maule and Bacchus as the third new oil field brought online by Apache in the Forties area within the last three years. All three of these developments have qualified under the UK government's small field allowance system, which provides economic incentives for operators to bring these discoveries into production.

FMC Technologies, Inc. (NYSE: FTI) announces  that it has been awarded a two year extension to an existing contract by Island Offshore Management AS (Island Offshore) to provide Light Well Intervention (LWI) services.

The LWI services will be performed from Island Offshore's Island Constructor vessel on wells operated by BP Exploration Operating Company Ltd (BP). LWI services enable cost effective intervention operations into existing subsea wells resulting in increased recovery from mature subsea fields. The services are scheduled to be performed in 2014 and 2015.

"We are pleased to continue to support Island Offshore and their customer BP with our LWI services," said Tore Halvorsen , FMC Technologies' Senior Vice President, Subsea Technologies. "This contract illustrates the continued demand for LWI services by major operators such as BP."

August Auction to Offer all Unleased Acreage in Western Gulf of Mexico

As part of President Obama’s all-of-the-above energy strategy to continue to expand domestic energy production, Secretary of the Interior Sally Jewell and Acting Assistant Secretary for Land and Minerals Management and Bureau of Ocean Energy Management (BOEM) Director Tommy P. Beaudreau announced  on Wednesday that Interior will offer more than 21 million acres offshore Texas for oil and gas exploration and development in a lease sale that will include all available unleased areas in the Western Gulf of Mexico Planning Area.

Proposed Lease Sale 233, scheduled to take place in New Orleans in August, will be the third offshore auction under the Administration’s Outer Continental Shelf Oil and Gas Leasing Program for 2012-2017 (Five Year Program). The sale builds on the first two auctions in the current Five Year Program – a 39-million-acre sale held in March, which attracted more than $1.2 billion in high bids and a 20- million-acre sale held last November that netted nearly $134 million.

“The Gulf of Mexico is a cornerstone of the United States’ energy portfolio,” said Secretary Jewell. “This proposed lease sale reflects President Obama’s continued commitment to safely and responsibly develop our domestic energy resources to help create jobs, foster economic opportunities and reduce America’s dependence on foreign oil.”

Domestic oil and gas production has grown each year President Obama has been in office, with domestic oil production currently higher than any time in two decades; natural gas production at its highest level ever; and renewable electricity generation from wind, solar, and geothermal sources having doubled. Combined with recent declines in oil consumption, foreign oil imports now account for less than 40 percent of the oil consumed in America – the lowest level since 1988.

Lease Sale 233 will include 3,953 blocks, covering about 21.1 million acres, located from nine to 250 miles offshore, in water depths ranging from 16 to more than 10,975 feet (5 to 3,346 meters). BOEM estimates the proposed sale could result in the production of 116 to 200 million barrels of oil and 538 to 938 billion cubic feet of natural gas.

The decision to move forward with plans for this auction follows extensive environmental analysis, public comment, and consideration of the best scientific information available. BOEM published a Final Supplemental Environmental Impact Statement to update the environmental analysis completed for proposed Lease Sale 233 and other Western and Central Gulf of Mexico lease sales scheduled under the current Five Year Program. The assessments can be found on the web at: http://www.boem.gov/Environmental-Stewardship/Environmental-Assessment/NEPA/nepaprocess.aspx.

“This proposed sale is another important step to promote responsible domestic energy production through the safe, environmentally sound exploration and development of the nation’s Outer Continental Shelf energy resources,” said Beaudreau. “We are advancing the Administration’s goal of continuing to safely increase vital oil and gas production, while encouraging diligent development and a fair return to taxpayers for these valuable public resources that belong to all Americans.”

The proposed terms of this sale include conditions to ensure both orderly resource development and protection of the human, marine and coastal environments. These include stipulations to protect biologically sensitive resources, mitigate potential adverse effects on protected species, and avoid potential conflicts associated with oil and gas development and other uses in the region.

BOEM’s proposed economic terms include the same range of incentives to encourage diligent development and ensure a fair return to taxpayers as used in previous sales, with one exception. The provision for deep gas royalty relief under the Energy Policy Act of 2005 (EPAct) will sunset on May 3, 2013, and, therefore, will not be offered. Ultra-deep gas royalty relief required under EPAct will still be available.

The terms and conditions outlined for Sale 233 in the Proposed Notice of Sale are not final. Different terms and conditions may be employed in the Final Notice of Sale, which will be published at least 30 days before the sale. All terms and conditions for Western Sale 233 are detailed in the new streamlined, more user-friendly Proposed Notice of Sale information package, which is available at: http://www.boem.gov/Sale-233/. Copies can also be requested from the Gulf of Mexico Region’s Public Information Unit at 1201 Elmwood Park Boulevard, New Orleans, LA 70123, or at 800-200-GULF (4853).

The Notice of Availability of the Proposed Notice of Sale is available today for inspection in the Federal Register at: http://www.archives.gov/federal-register/public-inspection/index.html.

Clariant, a world leader in Specialty Chemicals, has announced that it signed an agreement with Ecolab Inc. to acquire certain of its deep water Gulf of Mexico assets. The divestment of the assets by Ecolab was a prerequisite by the U.S. Department of Justice for the approval of the acquisition of Champion Technologies. Financial details of the acquisition are not being disclosed.

Clariant is entering into a series of agreements with Champion related to its deep water Gulf of Mexico business. The acquired assets include Champion Technologies’ oil and gas production chemicals services in the deep water Gulf of Mexico. The transaction is complementary to the company’s strategy to further expand its deep water operations in the region and globally.

“This acquisition is synergistic with our decision to expand Clariant’s deep water business and grow our Oil Services operations in North America, building upon our investment strategy in the U.S.” said John Dunne, Senior Vice President, Clariant Oil & Mining Services.

Noble Energy, Helix to deploy state-of-the-art well control equipment in over 5,000 feet of water

As part of the Obama administration’s ongoing efforts to strengthen the oil and gas industry’s ability to respond in the event of a deepwater blowout and ensure that offshore oil and gas production can continue to expand safely and responsibly, Bureau of Safety and Environmental Enforcement (BSEE) Director Jim Watson has  launched an unannounced exercise to deploy critical pieces of state-of-the-art well control equipment to the ultra-deep seabed of the Gulf of Mexico.

The exercise employs Helix Well Containment Group’s capping stack system, equipment that is used to stop the flow of oil and gas in the event that a blowout preventer is ineffective, with Noble Energy serving as the designated operator.

Following the Deepwater Horizon explosion and oil spill, the Interior Department undertook the most aggressive overhaul of oil and gas safety regulations in U.S. history. Included in these reforms is the requirement that prior to receiving approval of a deepwater drilling permit, an operator must demonstrate that it has enforceable obligations that ensure that it has immediate access to surface and subsea containment resources that would be adequate to promptly respond to a blowout or other loss of well control, several components of which are being tested in the exercise initiated today.

“We fully expect operators to have the plans, equipment and capabilities in place to respond to a subsea blowout in deepwater at a moment’s notice,” Director Watson said. “These types of exercises give us an opportunity to see how the equipment is deployed in real-world conditions and to learn lessons that can be shared across the industry to protect the environment and improve the safety of offshore operations.”

During this exercise, Helix’s capping stack will be mobilized and deployed to the sea floor in 5047 feet of water, latched to a test wellhead and pressurized. The exercise is also designed to test Noble Energy’s ability to obtain and schedule the deployment of the supporting systems necessary for successful containment. The Helix capping stack is similar to the technology used to stop the flow of oil from the Deepwater Horizon well.

BSEE inspectors, engineers and spill response experts will be embedded in various locations throughout the exercise, including in the command center and on the vessel deploying the capping stack, to oversee the mobilization, deployment and associated tests of the system. BSEE experts will oversee the capping stack being lowered to the seafloor by wire, a technique that offers the potential to be significantly faster than the deployment via pipe that occurred during the Deepwater Horizon response.

Helix is one of two consortia that provide contract access to well containment equipment to oil and gas operators in the Gulf of Mexico. This equipment is required by BSEE for drilling with subsea blowout preventers in deepwater, among other situations. The other consortium, the Marine Well Containment Company, successfully completed a similar deployment exercise in July 2012.

Over the course of the exercise, BSEE will provide public updates at: http://www.bsee.gov.

WesternGeco has announced that it has begun acquisition of a major multiclient seismic survey offshore Mozambique using the ObliQ* sliding-notch broadband acquisition and imaging technique. The technique optimizes the recorded bandwidth of the seismic signal enabling more detailed imaging of the subsurface and more reliable extraction of rock properties.

“This seismic survey is optimally located to help oil and gas companies evaluate play potential offshore Mozambique,” said Carel Hooykaas, president, WesternGeco. “The ObliQ technique is expected to provide valuable high-resolution broadband imaging in this geologically complex area where recent discoveries and regional appraisals indicate significant frontier exploration potential.”

The survey is being acquired in collaboration with the National Petroleum Institute of Mozambique (INP) and is fully supported by industry prefunding. It consists of more than 31,000 km long-offset 2D data and covers the majority of the offshore territory of Mozambique where future licensing rounds are expected.

For further information about the WesternGeco Mozambique multiclient survey, visit www.slb.com/multiclient_mozambique.

Elfin-1 discovery grows unrivalled natural gas portfolio in Australia

Chevron Corporation (NYSE: CVX) announced  Tuesday, further drilling success by its Australian subsidiary in the Exmouth Plateau area, located in the Carnarvon Basin.

Since mid-2009, Chevron made 21 discoveries offshore western Australia, adding 10 trillion cubic feet of resources.

The Elfin-1 exploration discovery well encountered approximately 132 feet (40 meters) of net gas pay in the upper Mungaroo sands. It is Chevron's 21^st discovery offshore western Australia since mid-2009.

Located in the WA-268-P permit area, the well is located approximately 106 miles (170 kilometers) northwest of Barrow Island and was drilled in 3,570 feet (1,088 meters) of water to a total depth of 11,909 feet (3,630 meters).

"Elfin-1 is a demonstration of our continued industry leading exploration success," said George Kirkland, vice chairman, Chevron Corporation.  "These discoveries build a platform for future growth for Chevron."

Melody Meyer, president, Chevron Asia Pacific Exploration and Production Company said "This remarkable series of exploration discoveries in the Carnarvon Basin has created a robust gas portfolio in Australia. The growth of this portfolio positions the company to supply future LNG demand in the Asia Pacific region."

Chevron Australia is the operator of WA-268-P with a 50 percent interest while Shell Development Australia and Mobil Australia Resources each hold a 25 percent interest.

Aker Solutions has been awarded a contract from Technip to deliver umbilicals for the Girassol Resources Initiative (GirRI) phase 2 development off the coast of Angola. Contract value is undisclosed.

Aker Solutions will deliver two dynamic power and control steel tube umbilicals, one dynamic power cable and ancillary equipment.
 
GirRI is located in Angola's Block 17, 210 kilometres west of Luanda. The development is 1,300 metres under sea level.

"Our advanced umbilical design provides both reliability and durability and we look forward to executing this project in close collaboration with Technip," says Tom Munkejord, head of Aker Solutions' umbilical business area.

The umbilicals will be manufactured at Aker Solutions' facility in Moss, Norway, with project management, design and engineering support from the company's office at Fornebu, Norway.

Subsea umbilicals are deployed on the seabed to supply necessary controls and chemicals to subsea oil and gas wells, subsea manifolds and any subsea systems requiring remote control.

The contract has been booked as order intake in the first quarter of 2013.