Petronas spreads its success in Malaysia and signs a new deal with Shell in Iraq; good news for Andarko and Cairn; Chevron progress in Mexico; Statoil commits to Snorre; and Shell 'sniffs' out oil from the air.
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Drilling rig Image:After major contract wins, as reported in last month's OATS Bulletin, Petronas appear to be bringing cheer to Malaysia's oil industry, offering a number of multimillion dollar contracts with a claimed commitment to spend RM26bn ($7.6bn) in the domestic market. The capital projects already agreed include pipeline laying, supply vessels and wellhead maintenance.
As part of their Iraq contract success, Petronas have signed a 20-year contract with Shell and the country's Ministry of Oil to develop the Majnoon oilfield. Shell will hold a 45% share in the project, with Petronas taking 30% and the Iraqi state 25%. A production target of 1.8mbd has been set for the field.
Shell, meanwhile has pledged its commitment to continue exploration activities in Gabon, despite pulling out of other African countries. Shell is the second largest operator in the country and produces 50,000bd.
Chevron is also showing its exploration commitment with news that it is moving ahead with the Brazilian deepwater Papa Terra project. The Petrobras-run operation is estimated to cost a total of $5.2bn, with Chevron holding a 37.5% stake, and is set to produce up to 140,000bd. The field is expected onstream in 2013.
The world's largest oil and gas independent, Anadarko, is celebrating possibly its largest find after hitting deepwater oil and gas reserves in the Gulf of Mexico. Initial estimates put the scale of the find at 100m barrels of oil equivalent (mmboe however subsequent data has shown the sands to offer potential yields of 250-500mmboe.
There was also good news for Scotland-based Cairn Energy after their oilfields in Rajasthan came on stream. After a 15,400bd start from the Mangala field in the middle of 2009, production is increasing with 120,000bd predicted by the middle of this year. Mangala is set for a future target of 175,000bd.
Norway's Statoil is another producer making a significant investment. The company is spending NOK 5bn ($857m) on upgrading and enhancing the infrastructure at its North Sea Snorre field. The investment will extend the life of Statoil's largest remaining to 2040 and includes delivery of a new "flotel" in mid-2010 to allow the main accommodation areas to be upgraded at Snorre A.
On a higher note, Shell has revealed new technology which can apparently 'sniff' out the presence of deep underground reserves from the air. Flying an aircraft at low level the instrument can detect hydrocarbons at concentrations of as little as 10 parts per trillion. If successful, the new technology will allow surveys over wide areas or hard-to-reach terrain and detect deposits two or three miles below ground.