Saturday, 11 October 2014

GeoPark makes new gas field discovery in Chile

GeoPark, reports the successful drilling and testing of the Ache 1 exploration well located on the Fell Block in Chile. GeoPark operates and has a 100% working interest in the Fell Block.
 
The Ache 1 well was drilled and completed to a total depth of 9,694 ft. A production test through different chokes in the Tobifera formation resulted in an average production rate of 9.2 MMscfpd of gas and approximately 80 bpd of condensate of 47° API with a well head pressure of 2,827 pounds per square inch. Further production history is required to determine stabilized flow rates and the extent of the reservoir. Surface facilities and flow lines will be required in order to commercialize this new discovery.
 
GeoPark is the first and largest non-state controlled oil and gas producer in Chile, which began operating the Fell Block in 2006 with no production and has now grown to over 7,400 boepd in production as of 1Q 2014. In Chile, GeoPark is carrying out a $150 million investment program in 2014 with 15-20 new wells being drilled on the Fell Block and 17-23 new wells being drilled on GeoPark’s new Flamenco, Campanario and Isla Norte Blocks in Tierra del Fuego.
 
During 2014 GeoPark will be carrying out a $220 million to $250 million work program, including the drilling of 50-60 new wells on its properties in Colombia, Brazil, Argentina and Chile.
 
James F. Park, CEO of GeoPark, said, "The new Ache 1 success represents another new field discovery on the Fell Block in Chile and demonstrates the continuing growth potential of the Fell Block – both from the new prospects being delineated and new geological formations being tested. In addition to the significant new growth GeoPark is realizing from its assets in Colombia and Brazil, Chile continues to deliver consistent results. We look forward to further developments this year from our drilling program on our large acreage position in Chile.”


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Thursday, 9 October 2014

Oil falls as Libyan supply seen rising, Iraq output remains safe

West Texas Intermediate fell for a sixth day, the longest losing streak since May 2012, while Brent slid amid speculation that crude supplies will increase after Libyan rebels agreed to hand over two export terminals.


Futures dropped as much as 0.5% in New York. Libya is reopening the Es Sider and Ras Lanuf facilities after reaching an agreement yesterday, July 2, with a group that blockaded ports in the country’s east in the past year, said Ahmed al-Amin, a government spokesman. Fighting in Iraq, OPEC’s second-largest producer, still hasn’t spread to the south, home to more than three-quarters of its crude output.


“Libya will just add more supply, and the world is awash with oil,” Jonathan Barratt, the chief investment officer at Ayers Alliance Securities in Sydney, said by phone. “There’s nothing new from Iraq and investors are starting to realize that there’s not going to be a major affect in terms of supply.”


WTI for August delivery declined as much as 53 cents to $103.95 a barrel in electronic trading on the New York Mercantile Exchange and was at $104.11 at 2:38 p.m. Sydney time. The contract fell 86 cents to $104.48 yesterday, the lowest close since June 11. The volume of all futures traded was about 5% above the 100-day average. Prices have gained 5.8% this year.


Libyan Supply


Brent for August settlement dropped as much as 52 cents, or 0.5%, to $110.72 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude traded at a premium of $6.95 to WTI. The spread narrowed for a third day yesterday to close at $6.76.


Libya’s biggest and third-largest oil ports were handed over in a gesture of support for the newly elected parliament, according to a spokesman for the group that calls itself the Executive Office for Barqa. Es Sider and Ras Lanuf, which can handle a combined 560,000 bpd of crude, may boost Libya’s export capacity almost five-fold.


The rebels, who are seeking self-rule for a region known as Cyrenaica, occupied the facilities in July last year, demanding to share oil revenues to make up for neglect experienced under Muammar Qaddafi’s 42-year rule. Libya, a member of the Organization of Petroleum Exporting Countries, holds Africa’s biggest reserves.


U.S. Stockpiles


In Iraq, oil production has mostly been unaffected by an Islamist insurgency in the north. The country will ship 2.8 MMbpd this month, close to a record high, loading programs obtained by Bloomberg show.


Crude inventories in the U.S., the world’s largest oil consumer, shrank by 3.2 MMbbl to 384.9 million in the week ended June 27, the Energy Information Administration reported yesterday. Supplies were projected to decrease by 2.4 million, according to the median estimate in a Bloomberg News survey of 10 analysts.


Gasoline stockpiles slid by 1.24 MMbbl, the first drop in five weeks, said the EIA, the Energy Department’s statistical arm. Distillate fuels, including heating oil and diesel, climbed by 975,000 bbl to 121.5 million, the highest level since Jan. 10.


WTI’s decline may stall as it approaches technical support, data compiled by Bloomberg show. Futures are trading along an upward-sloping trend line extending from the intraday lows of May 1 and June 5, at about $104 a barrel today. Buy orders tend to be clustered along chart-support levels.


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Tuesday, 7 October 2014

Russia said to approve division of biggest port between owners

Russia’s government has agreed to a plan to divide the country’s largest port operator, OAO Novorossiysk Commercial Sea Port, between its two controlling shareholders to end a battle that has stalled spending on oil terminals, according to two people with knowledge of the deal.


The Federal Property Management Agency sent President Vladimir Putin a request to approve the proposal to split off the port group’s oil terminals to state-run pipeline operator OAO Transneft, according to the people, who asked not to be identified because they’re not authorized to speak on the matter. Businessman Ziyavudin Magomedov’s Summa Group would gain control over the port group’s remaining business, they said.


The agency also asked Putin to decide whether the state will sell its 20% of NSCP Group, as the port group is known, before or after the split, the people said.


NCSP Group, which handles about 33% of Russia’s crude exports, has been unable to approve investments to expand its oil division during the more than yearlong shareholder conflict. Russia depends on oil and gas for half of the government’s revenue.


Transneft and Summa together control 50.1% of NCSP through their jointly owned Novoport Holding Ltd. Transneft will receive the oil-loading facilities, including the Primorsk port on the Baltic Sea and Sheskharis terminal at Novorossiysk on the Black Sea, while Summa will buy Transneft’s stake in NCSP, which will keep the non-oil assets, the people said.


After the deal, Summa will control 60% of the port operator, the people said.


The property agency proposed that NCSP pay out a special dividend before the deal to benefit minority shareholders, the Vedomosti newspaper reported earlier this year. The people declined to comment on whether a decision has been made.


Vladimir Ryzhov, a Federal Property Management Agency official, and Evgeny Timoshinov, a spokesman for Summa, declined to comment. Igor Dyomin, Transneft’s spokesman, said that the companies have agreed on the structure of the deal, while saying he was unaware of any government decision.


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Sunday, 5 October 2014

Statoil opens new IOR research facility

Norway' s minister of petroleum and energy, Tord Lien, has officially opened Statoil’s new research center for improved oil recovery (IOR) at Rotvoll in Trondheim, mid-Norway.


“For several decades Statoil has been highly instrumental in technology development on the NCS and is among the companies with the highest recovery rate. Today’s opening of Statoil’s IOR center is significant for the future of the NCS, and illustrates that Statoil wants to contribute to optimal use of NCS resources also in the future,” Lien said.


The IOR center, which has a price tag of $39 million (NOK 240 million), will be the largest of its kind in Norway and one of the most advanced in the world. Its goal is to develop technologies that will lead to a further increase of the recovery rate from the reservoirs, and to reach the ambition of a 60% recovery rate on the NCS.


Statoil has already approved measures that give the company and partners reason to expect an oil recovery rate above 50% on the NCS. A recovery rate of 50% represents an increase of 7.5 billion barrels based on the 30% estimate of the plan for development and operation -- corresponding to more than two Statfjord fields. The global average is currently 35%, according to the ministry of petroleum and energy.


The main contributing factor to improving recovery is the drilling of new wells and the maintenance of existing wells. The IOR center will play a key role in Statoil’s efforts to improve the efficiency of drilling operations.


The IOR center will focus on improved recovery from all types of reservoirs on the NCS -- old and new. Statoil will also use the technology to improve recovery on its international fields.


The heart of the center is a new industrial scanner, which boasts a resolution 500 times higher than a medical scanner. The scanner will allow Statoil to follow the oil movements and flows in various rocks on pore level. Through high-resolution 2D and 3D images it will be possible to see which IOR method is best suited in each reservoir, and, at the same time, get a deeper understanding of how the reservoir is formed with regard to clay, pore size and cracks.


“Our next goal is the oil which is difficult to extract. We have a steep learning curve ahead of us, which will be tougher for every percentage point we achieve, but these volumes are of high value to us. A dedicated IOR lab gives Statoil a unique opportunity to solve future IOR challenges,” said Helge Lund, Statoil’s chief executive.


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Friday, 3 October 2014

GE to supply Pemex with pressure control equipment for new wells in GoM

GE Oil & Gas is to provide surface equipment to Pemex for use at its offshore project in the Ayatsil heavy oil field located in the Campeche Sound, in the Gulf of Mexico.


The multi-year contract includes the installation of GE’s surface wellheads and trees in new wells that will be drilled by Pemex through the duration of the contract.


Pemex is focused on strengthening oil extraction in the Marine Zone, an area located within territorial waters near the coasts of Campeche, Yucatan and Quintana Roo. Pemex considers Ayatsil to be one of the fields that will help the company recover the historic production of the zone and continue to increase it in the coming years.


GE’s surface wellheads and trees will be manufactured at the company’s Ecatepec plant in Mexico City, which has been equipped with high-end manufacturing equipment. Employees at the plant have received the required training to handle this type of advanced technology.


While the Ayatsil offshore project is GE' s largest contract currently underway in the Marine Zone, the company is also working with Pemex on several other initiatives.


GE recently announced it is teaming up with Pemex and the Mexico Institute of Petroleum to research and develop technologies to help improve productivity and efficiency in mature fields, develop deep and ultra-deepwater projects, and modernize Mexico' s energy infrastructure.


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Wednesday, 1 October 2014

Eni brings new supercomputer online

Eni has put into operation its second major HPC system. The new supercomputer has an innovative approach based on the usage of accelerators to implement a so called “hybrid cluster architecture.”


It comprises 1,500 IBM iDataPlex dx360 M4 nodes, built on more than 30,000 processing cores, each equipped with two NVIDIA Tesla GPU accelerators connected by a high-speed InfiniBand interconnection. This choice is a result of years of research aimed at identifying the most efficient solution able to deliver the computational power required by proprietary seismic imaging algorithms and by reservoir simulation codes, and ensuring at the same time the best energy efficiency.


The new HPC cluster is working alongside the first GPU computing system installed last year (1,500 IBM iDataPlex nodes and 1,300 NVIDIA Tesla GPU accelerators).


With a total sustained computing capacity of 3 PetaFlops (scored with Linpack Benchmark, the measure of a system' s floating point computing power) and a high performance storage of 7.5 Petabytes, the new HPC System is the largest supercomputer in Europe for oil and gas industrial production use and one of the largest in the oil industry, ranked number 11th on the new TOP500 List.


The “hybrid‘ nature of the computing architecture guarantees performance in terms of energy efficiency with 2.8 GigaFlops/Watt, which will score Eni’s HPC system as the 9th in the Green500. The overall efficiency of the system benefits also from the innovative cooling solution provided by the hosting Eni Green Data Center. The Eni Data Center in Ferrera Erbognone (Pavia) has been built to host Eni’s central computer processing systems, both for information management and oil and gas applications. The Green Data Center uses the most innovative infrastructure for energy efficiency, cutting CO2 emissions by 335,000 tons per year and significantly reduces operating costs.


The new HPC cluster will support the core business of the company by allowing faster and more accurate depth data processing. Eni has adopted the strategy of using the latest computing technology to spur on advances in exploration geophysics and in reservoir simulation. By utilizing its own proprietary code, developed with the latest parallel programming tools, Eni can get high resolution 3D subsurface images from seismic data at more than five times the speed of conventional supercomputers, as well as granting the highest quality data needed to reduce exploration risk.


As far as dynamic reservoir simulation is concerned, the new system allows more and more accurate dynamic simulations of oil and gas deposits to target a significantly higher level of detail of the model, as well as reducing the simulation time. These two aspects can be crucial for optimizing hydrocarbon recovery field development planning and time to market.


Mosdor Global Estates, providing support in the buying and selling of crude oil, other petroleum products. Publishing news and reviews in the oil and gas plus real estate industry online.

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