Thursday, 26 February 2015

Statoil awards Mariner supply base and warehousing contracts to Asco - 26/02/2015

Statoil awards Mariner supply base and warehousing contracts to Asco

Statoil (U.K.) Limited has on behalf of the Mariner co-venturers awarded the contracts for supply base and warehousing services for the Mariner field to Asco UK Limited.

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Asco is an international oilfield support services company, headquartered in Aberdeen. The  supply base and warehousing facility for Mariner will be operated  by  Asco  from Peterhead, north of Aberdeen.

The scopes awarded encompass the provision of supply base services, including personnel, local transportation, marine gas oil, quayside services and a nearby warehousing facility.

Asco will perform the services for the Mariner field under two five year contracts, anticipated to start during Q1 2016.  The contracts also include 2 x 2 year extension options.

“We are pleased with the interest we received in the market for this tendering process. We received competitive bids from several highly qualified companies,” says managing director for Statoil Production UK, Gunnar Breivik. 

“Production on Mariner requires a high level of drilling activity and the field is reliant on a seamless and cost efficient logistics chain. Asco is a well-established player and their supply base in Peterhead is a proven, high-performing logistics hub. We are looking forward to working closely with Asco to tackle industry challenges and optimise the supply and warehousing services that we depend on for successful operations on Mariner,” Breivik says.

The Statoil operated Mariner field, located approximately 150 kilometers east of the Shetland Isles, is currently under development and production is scheduled to start in 2017.

The development concept includes a production, drilling and quarters (PDQ) platform based on a steel jacket and a floating storage unit (FSU). Drilling will be carried out from the PDQ drilling rig, with a jack-up rig assisting for the initial years.

In the period when both the PDQ and the jack-up are drilling Mariner wells, the field will require at least five sailings a week from the Peterhead supply base.

Statoil is the operator of the Mariner field with 65.11% equity. Co-venturers are JX Nippon Exploration and Production (U.K.) Limited (28.89%) and Dyas Mariner Ltd. (6%).

Wednesday, 25 February 2015

Upstream Data Analytics Challenges Whitepaper - 25/02/2015

Upstream Data Analytics Challenges Whitepaper 

In the current low oil price environment it has never been more important to ensure wells are producing to their maximum efficiency. Converting data to decisions will be critical to achieving this. As such, you may be interested in this whitepaper From Data to Decision: Barriers to Optimizing Production with Analytics

You can access the full whitepaper here: http://bit.ly/data-analytics-whitepaper

This whitepaper was compiled after carrying out over 50 interviews with upstream execs to find out what their greatest data analytics challenges were. The paper outlines the 5 most frequent challenges cited and suggests how they may be overcome.

Gazprom expanding new export routes - 25/02/2015

Gazprom expanding new export routes

The Gazprom Board of Directors approved the Company’s strategy aimed at diversifying its export routes and increasing the Russian gas competitiveness.

It was noted that gas supply alternatives as well as enhanced reliability and safety of supplies were of primary importance to make Gazprom’s products attractive for international markets over a long term.


With a view to provide stable and well-balanced supplies of Russian gas to Europe as well as to mitigate the risks related to gas transit via third countries, Gazprom makes great efforts to expand the existing gas transmission routes and to build up the new ones.
Gazprom expanding new export routes

A project for constructing a new gas pipeline with a capacity of 63 billion cubic meters from Russia to Turkey has entered the execution stage. 

The gas transmission route will be laid via the Black Sea and will annually supply up to 47 billion cubic meters of gas to the Turkish-Greece border. 

The gas pipeline will represent the alternative export route, which, in combination with highly reliable Nord Stream, Blue Stream and the Yamal – Europe gas pipeline, will secure the whole Russian gas exports beyond the CIS and will make it possible to abandon the transit corridor via Ukraine.

Gazprom is also focused on supplying significant volumes of Russian pipeline gas to Asia-Pacific. The work is underway to have the resource and transmission base in place for the start of gas supplies from Russia to China via the eastern route. The Agreement on Russian gas purchase and sales via the western route is being formulated.

Gazprom continues to reinforce its positions in the LNG trade and transportation segments, in addition to gas pipeline projects. Gazprom sold 4.5 billion cubic meters of liquefied natural gas in 2014, thereby having surpassed the 2013 result (2.0 billion cubic meters) more than twofold. The Company is keen to promote Gazprom’s LNG in niche and emerging markets of Asia-Pacific.

The Company intends to build up its presence in new markets primarily by the way of increasing its own production activity. Gazprom plans to construct LNG plants with a capacity of 10 million tons a year in the Leningrad Region and the Primorye Territory. The Company also considers a possibility of constructing a new process train within the Sakhalin II project.

The meeting highlighted that Gazprom had a number of competitive advantages over other gas suppliers. The Company holds a huge resource base and has an access to onshore and offshore gas transmission corridors enabling Gazprom to supply gas to Europe and Asia-Pacific in an efficient manner.

Inside Oil & Gas 6 YouTube Preview Now Live! - 25/02/2015



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Tuesday, 24 February 2015

Subsea processing technology round-up - 24/02/2015

Subsea processing technology round-up

Brent crude recently rose to above $60 for the first time this year, yet market uncertainty is still forcing operators to maximize recovery on existing assets rather than invest in new developments.

With subsea processing forecast to play a major role in achieving this, Upstream Intelligence have put together a round-up of all the latest technologies from the industry’s leading service providers to keep you up to date with new innovations.

Get the complimentary insight from FMC, GE and Aker Solutions here: http://bit.ly/subsea-process-tech 

You’ll receive:
•    The latest project updates on the Åsgard subsea compression project from Aker Solutions to ensure you have the latest information on this first of a kind project
•    Progress being made by GE Oil & Gas into power transmission and distribution systems, pressing forward on the move towards complete subsea processing facilities
•    Data from FMC Technologies to demonstrate the gain in cash flow and oil production that operators can achieve in brownfield applications by using subsea separation and boosting 

Johan Sverdrup contract awarded to Aibel - 24/02/2015

Johan Sverdrup contract awarded to Aibel

Today Statoil, on behalf of the Johan Sverdrup partnership, will sign a contract with Aibel for the construction of the deck for the drilling platform on the field. The contract is worth in excess of NOK 8 billion.


The contract includes engineering work, procurement and construction (EPC) of the drilling platform deck. Engineering design will be undertaken at Aibel’s office in Asker outside Oslo

The platform deck will be built at the Aibel’s yard in Thailand and Haugesund, and at Nymo’s yard in Grimstad.

Assembly and mechanical completion of the deck will be carried out at the Aibel’s yard in Haugesund with delivery in 2018. 

Installation on the field is planned for the same year.


“The Johan Sverdrup field is one of the biggest discoveries on the Norwegian continental shelf that will, for its entire lifetime, be a pillar for Norwegian industry and value creation for the Norwegian society. On behalf of the partnership we are looking forward to a close cooperation with Aibel in order to ensure a safe and efficient delivery of this project,” says Statoil’s Arne Sigve Nylund, executive vice president of Development & Production Norway.

“Targeted efforts have been made to reduce cost and ensure a cost-efficient delivery and execution. We are therefore pleased to see that Norwegian suppliers have regained their competitiveness. The drilling platform is one of four platforms in the planned field centre and it is a complex and challenging project in itself. In order to succeed we are dependent on competent suppliers at all stages, and Aibel has been awarded this contract in a very competitive market,” says Margareth Øvrum, executive vice president for Technology, Projects & Drilling Statoil.
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Investment costs for full field development are estimated to be in the region of NOK 170-220 billion (2015 value) with recoverable resources of between 1.7 and 3.0 billion barrels oil equivalent.

Johan Sverdrup’s first phase development involves four installations including an accommodation a drilling, a riser and process platform, as well as three seabed templates  for water injection. The platforms will be connected by walkways.

The ambition is a recovery of 70%. At plateau production the field will account for roughly 40% of the total oil production on the Norwegian continental shelf. Start-up is planned for late 2019.

The Johan Sverdrup partnership consists of Statoil, Lundin Norway, Petoro, Det norske oljeselskap and Maersk Oil. The partnership has recommended Statoil as operator for all the field’s phases.

The award of this contract is subject to approval of the Plan for Development and Operation in 2015 by the Norwegian Parliament.

A brief press conference will be held on Aibel’s premises at Forus at 11:45. Meet in Aibel's reception by 11:20 at the latest.

Statoil will be represented by:
Arne Sigve Nylund, EVP Development & Production Norway
Margareth Øvrum, EVP Technology, Projects & Drilling
Anders Opedal, SVP Projects
Jon Arnt Jacobsen, SVP Procurement
Øivind Reinertsen, SVP Johan Sverdrup Development
Kjetel Rokseth Digre, Project Director for Johan Sverdrup  Facilities

Monday, 23 February 2015

Subsea processing market expands under current oil prices - 23/02/2015

Subsea processing market expands under current oil prices

Despite volatile oil prices, subsea processing continues to be a major focus for the most forward looking operators. Its deployment will ultimately reduce operational expenditure and increase oil recovery, making it a necessity to combat the low price of the barrel.

Learn more about the expansion of the subsea processing industry in Upstream Intelligence's new and exclusive whitepaper, right here: http://bit.ly/subprocessing

More than just a commentary on the price of the barrel, this article will give you:

• A full, global overview of where subsea pumping, boosting, separation and compression stand as of the beginning of 2015 to help you identify where to expect high levels of market growth
• Insight into the benefits of using subsea processing equipment to maximize recovery, improve production and cut OPEX and CAPEX costs; qualities needed more than ever in the current climate
• Subsea processing industry statistics and maps highlighting how this emerging market is moving from the periphery to the mainstream so you can prepare an effective subsea strategy in 2015

Tangiers Petroleum Limited Placement to Raise $7 Million - 23/02/2015

Tangiers Petroleum Limited Placement to Raise $7 Million

Tangiers Petroleum Limited (“Tangiers” or the “Company”, ASX:TPT, AIM TPET) is pleased to advise that it has successfully completed the bookbuild for a placement to domestic and
international institutional and sophisticated investors to raise approximately $7 million
(“Placement”). The Placement was strongly oversubscribed.

The Placement of approximately 700 million shares was undertaken at 1 cent per share.
Placement participants will receive one free attaching option for every two Placement shares, with the options exercisable at 2 cents and expiring 1 March 2018. Tangiers will apply to the ASX for quotation of the Placement options. Full details of the Placement are set out in the prospectus that was lodged by Tangiers with the ASX on Monday 16 February 2015.

Funds raised pursuant to the Placement will be utilised by Tangiers for completion of the
acquisition of Project Icewine, progressing exploration at Project Icewine, and for working capital.

Commenting on the success of the Placement, Tangiers Managing Director Dave Wall stated “The strong support for the Placement speaks volumes to the quality of Project Icewine, and is a recognition of the outstanding upside potential that the project offers for investors. Project Icewine benefits from a unique combination of conventional and unconventional potential, along with generous rebates offered by the State of Alaska. We look forward to completing the acquisition of the Project with funds raised from this Placement as well as progressing exploration.”

“Planning and permitting for the drilling of our first well and acquisition of 3D seismic is already underway and we will be providing updates to the market on progress in the very near term. In addition to increasing operational activity over the coming months, the Company continues to progress strong early interest in Project Icewine from a number of potential funding partners and we hope to be able to provide news on that front later this year.”

“The Board of Tangiers welcomes our new shareholders, and we thank our existing shareholders for their ongoing support.” Hartleys Limited acted as Sole Lead Broker to the Offer. DJ Carmichael Pty Ltd and BBY Limited acted as Co-Managers to the Offer.
Settlement of the Placement is scheduled to occur on 27 February 2015 in one tranche, with the shares and options issued pursuant to shareholder approval that was received by Tangiers on 12 February 2015, and pursuant to Tangiers’ ASX Listing Rule 7.1 capacity. 

Oseberg Delta 2 comes on stream - 23/02/2015





Oseberg Delta 2 comes on stream

On 21 February Statoil and its partners started up production from Oseberg Delta 2 in the North Sea. The field’s recoverable reserves are estimated at 77 million barrels oil equivalent.
Oseberg Delta 2 is the tenth project in Statoil’s fast-track portfolio to be completed.

The field, which is tied back to the Oseberg Field Centre, has been developed using two subsea templates with capacity for a total of eight wells.

BildeThe initial phase of the plan initially involves three oil producers and two gas injectors.

“Delta 2 is an important element in extending the lifetime of Oseberg. It pr​ovides a good example of how we can make lesser discoveries profitable by using existing infrastructure while it is still available,” says Arild Dybvig, vice president for fast-track development projects in Development & Production Norway.

The start-up of the first well is in line with the development plan and takes place 38 months after the discovery became part of the fast-track portfolio.

BildeBildeThe total investment is slightly less than NOK 7 billion, well below the estimated investment cost when the project was sanctioned.
“We’ve delivered yet another high quality, fast-track development according to plan and well within budget,” says Torger Rød, senior vice president for subsea projects in Technology, Projects & Drilling.

Oseberg Delta 2 marks a further development on the Delta terrace where oil from two wells on an existing template has been produced since 2008.

“The new development includes gas injection that will give us a substantially greater recovery rate.”

Bilde“There are also some good opportunities for the further development of the area and an exploration well has already been planned in the southern part of the Delta terrace,” says Terje Gunnar Hauge, vice president for operations on Oseberg East.
The plan for development and operation was submitted to the Ministry of Petroleum and Energy on 30 May 2013.​​​​​​​​

Friday, 20 February 2015

Fourth generation OptaSense Distributed Acoustic Sensing system provides the highest data quality for borehole imaging - 20/02/2015

Fourth generation OptaSense Distributed Acoustic Sensing system provides the highest data quality for borehole imaging

OptaSense, a QinetiQ company and global leader in Distributed Acoustic Sensing (DAS), has successfully demonstrated improved sensitivity of its DAS Interrogator Unit (IU).

As part of its ongoing product development, a pre-production version of the 4th generation of the OptaSense DAS IU was used to acquire a Vertical Seismic Profile (VSP) on a Carbon Capture and Sequestration (CCS) well during customer trials this month in North America. In these tests the new 4th generation IU achieved the targeted 6dB increase, a four times increase in sensitivity over the previous 3rd generation system.  

The next generation ODH4 Interrogator Unit will also have a wider receive bandwidth, finer spatial resolution and greater programmable flexibility so it can be operated simultaneously in one or more acquisition modes. These features will be implemented in the commercial release of the 4th generation IU due in Summer 2015.

Magnus McEwen-King, Managing Director of OptaSense said, “The development of this 4th generation system once again pushes the boundaries of known performance. Our DAS-VSP™ service is already reducing the cost of data acquisition. Our 5th generation system, which is in development with Shell, is also showing great gains that will see OptaSense DAS capability deliver on an extremely ambitious technical target.”

The 4th generation IU will acquire higher quality DAS-VSP™ measurements, enabling geophysicists to see clearer images of the subsurface with the unique flexibility afforded by acquiring seismic measurement on an optical fibre deployed downhole.

The 4th generation IU is also expected to improve microseismic monitoring with smaller events now detectable, and flow monitoring where the simultaneous use of more than one acquisition mode will extend the ability of DAS to accurately measure inflow and axial flow rates across the length of the well.

BSEE executive named keynote speaker at major decommissioning summit - 20/02/2015

BSEE executive named keynote speaker at major decommissioning summit

Susan Green, deputy regional supervisor for field operations at the Bureau of Safety and Environmental Enforcement (BSEE), will deliver a keynote address at the 2015 Decommissioning & Abandonment Summit, 17-19 March in Houston. 

Green will provide a crucial update on the regulator’s priorities at a time when, despite the fall in oil prices, production is expanding in deepwater and ultra-deepwater. 

BSEE has said that it needs to keep pace with technology developments that are helping to drive deepwater oil and gas development. In February it requested $204.7m for its fiscal year 2016 budget, broadly in line with last year’s budget request. 

“Funds will be used to recruit expert engineers, scientists, inspectors and oil spill prevention specialists to support the development of risk-based approaches to oversight and compliance on the Outer Continental Shelf,” BSEE Director Brian Salerno said in announcing the budget request on 2 February. 

Phil Chadney, project director for Summit organizer, DecomWorld, said the chance to hear the regulator’s vision and priorities would be welcomed by the industry. 

“In recent years the regulator has adopted new approaches to risk reduction and the promotion of a safety culture, and this comes at a time when offshore production is actually expanding,” he said. “At the end of last year there were 69 deepwater rigs and non-rig units working in the Gulf of Mexico, up from 40 at the start of the year. Offshore production is projected to keep growing through to 2040. Understanding how BSEE is gearing up to meet this challenge will be critical in planning decommissioning strategies and approaches.” 

More than 20 operators including Shell, Chevron, Exxon and BP will be attending the Summit, plus international operators such as Shell E&P Nigeria and Petrobras. 

A number of new workshops will be held at the Summit to tackle emerging industry issues, including how new drilling and completion technologies may deliver a new lease of life for old platforms by enabling the economic drilling of wells at or close to the pore pressure. 

Also new this year at the seventh annual summit, taking place over 17-19 March, is a full day ‘closed door’ deepwater P&A workshop with exclusive case study insights presented by BHP Billiton and Anadarko on their latest projects. 

More than 700 offshore, decommissioning, abandonment and late life executives and more than 60 leading exhibitors from across the world will be attending the sector’s biggest networking and business development event. 

For more information, visit: http://bit.ly/decomsummit-agenda 

Thursday, 19 February 2015

Drilling permit for well 6706/12-2 in production licence 218 - 19/02/2015

Drilling permit for well 6706/12-2 in production licence 218

The Norwegian Petroleum Directorate has granted Statoil Petroleum AS a drilling permit for well 6706/12-2, cf. Section 8 of the Resource Management Regulations.
Well 6706/12-2 will be drilled from the Transocean Spitsbergen drilling facility in position 67°05’08,63” north and 06°52’00,09”east.

The drilling programme for well 6706/12-2 concerns the drilling of a wildcat well in production licence 218. Statoil is the operator with an ownership interest of 51 per cent. The other licensees are Wintershall Norge AS (24 per cent), OMV Norge AS (15 per cent) and ConocoPhillips Skandinavia AS (10 per cent).

The area in this licence consists of part of block 6706/12 and part of block 6707/10. The well will be drilled about six kilometres northwest of the Aasta Hansteen field.

Production licence 218 was awarded on 2 February 15 1996 (the 15th licensing round on the Norwegian shelf). This is the fifth well drilled in the licence.

The permit is contingent upon the operator having secured all other permits and consents required by other authorities before the drilling starts.

Vladimir Krokha put in charge of Gazprom Dobycha Shelf Yuzhno-Sakhalinsk - 19/02/2015

Vladimir Krokha put in charge of Gazprom Dobycha Shelf Yuzhno-Sakhalinsk

Vladimir Krokha is appointed Director General of Gazprom Dobycha Shelf Yuzhno-Sakhalinsk.


Vladimir Krokha was born in the Bashkir ASSR in 1973. He graduated from Tomsk Polytechnic University in 1995, majoring in ‘oil and gas field development and operation’. He has an MBA degree.

Vladimir Krokha put in charge of Gazprom Dobycha Shelf Yuzhno-SakhalinskBetween 1991 and 1999 – he went up the career ladder, starting from the oil and gas production operator and moving to the position of the Lead Geologist at Kholmogorneft Oil and Gas Production Directorate.

Between 1999 and 2011 he occupied various positions, i.e. the geologist of the 2nd grade, Lead Geologist of the Field Development Division, Deputy Head of the Geologic Division, Head of the Prospective Development and Licensing Division, Head of the Exploration and Field Pre-Development Administration – branch of Gazprom Dobycha Noyabrsk.

Between 2011 and 2015 – Chief Engineer, First Deputy Director General – Chief Engineer of Gazprom Geologorazvedka.

Wednesday, 18 February 2015

Decom & Abandonment Webinar Debate - 18/02/2015

Decom & Abandonment Webinar Debate

Last week Philip Chadney (Project Director DecomWorld) spoke with Stone Energy’s Decommissioning Manager and 2 other renowned experts to assess the impact of low oil prices on decommissioning and abandonment activity and wanted to share the complete audio recording and slides with you!

Listen to the outcome of this cutting-edge decommissioning webinar debate here: http://bit.ly/decomaudio

In this exclusive expert-led debate, you will get:
•    Leading insight from an independent operator on the biggest opportunities for cost efficiency in decommissioning & abandonment right now, as part of an in-depth Q&A session
•    In-depth market assessment and expert commentary on the impact low oil prices will have on well P&A and subsea decommissioning activity so that you can plan for upcoming work
•    North Sea, Asia-Pacific and Gulf of Mexico decommissioning outlook and perspectives from over 500 industry listeners during polling sessions to assess decommissioning market sentiment in 2015

Turkey Minister of Energy to join leaders at national oil and gas event - 18/02/2015

Turkey Minister of Energy to join leaders at national oil and gas event

Taner Yıldız, Minister of Energy, Ministry of Energy and Natural Resources, Turkey has confirmed to present at the 14th Turkish International Oil and Gas Conference (TUROGE), taking place on 18 - 19 March 2015 at the Sheraton Ankara Hotel in Ankara, Turkey.

TUROGE is a central meeting place for local and international industry professionals to discuss the Turkish oil and gas market, evaluate inward investments as well as assess progress towards the country becoming an energy transportation hub.

Joining Minister Yildiz at the event will include:

    Kenan Yavuz, President and CEO, SOCAR Energy Turkey
    Mehmet Konuk, Acting Chairman of the Board and General Director, BOTAŞ
    Joris Grimbergen, General Manager, Shell Upstream Turkey
    Besim Şişman, CEO and President of the Board, TPAO
    İsmail Bahtiyar, President, Turkish Association of Petroleum Geologists
    Matthew Bryza, Board of Directors, TURCAS
    Selami Incedalci, General Manager, Directorate of Petroleum Works, Ministry of Energy and Natural Resources, Turkey

The International Energy Agency estimates that Turkey will likely experience the fastest medium to long-term growth in energy demand among its member countries. It is estimated that electricity, natural gas and oil demand will reach 398-434 billion kWh, 59 BCM and 59 million tons, respectively.

Only 26% of Turkey’s energy needs are met domestically; the remainder is provided by imports. Thus, the Turkish Government is giving priority to the private sector for financing inward investments.

Turkey is also making strong progress in becoming a regional energy hub, with The Kurdistan Regional Government planning to increase oil exports through the Kurdistan crude oil pipeline to Turkey to 400,000 b/d by yearend and 500,000 b/d by the end of first-quarter 2015. This alliance may significantly help Turkey reduce its dependency on Russian and Iranian gas imports.

One of Top Five U.S. Utility Companies Approves MagneGas2® as Replacement to Acetylene - 18/02/2015

One of Top Five U.S. Utility Companies Approves MagneGas2® as Replacement to Acetylene

MagneGas Corporation ("MagneGas" or the "Company") (NASDAQ: MNGA), a leading technology company that counts among its inventions a patented process that converts liquid waste into a hydrogen-based fuel, announced today that one of the five largest electric utilities in the U.S. has approved MagneGas2® fuel to replace acetylene at their power and repair facilities.  The Company has elected to keep the name of the utility confidential due to concerns over competitive interference during the product roll-out period which will occur over the next several months. 

Safety and productivity are of paramount importance to this utility, one of the largest electric holding companies in the United States.  The utility tested MagneGas2® for over one year and found that the cut speed was faster than acetylene and the pre-heat time was shorter, which could lead to higher productivity.  In addition, the utility specified the superior safety aspects of MagneGas2® and the significantly lower environmental impact of using a fuel produced from a renewable source. 

"Acetylene is known to be one of the most dangerous industrial gases available on the market today and our testing has shown that MagneGas2 is faster, safer and cleaner than acetylene and to our knowledge, is the only renewable cutting fuel available.  Apart from sales directly with this large utility a myriad of subcontractors are now authorized to use MagneGas2® whilst at the utility thereby multiplying the opportunity for MagneGas," stated Ermanno Santilli, CEO MagneGas Corporation. "This is expected to become the most significant retail customer for MagneGas. This utility is among the most respected and recognized in the US and we are very pleased to be working with a company as concerned about safety, productivity and the environment as we are."

Monday, 16 February 2015

Flow Assurance Insight– Approaches to Longstanding challenges - 16/02/2015

Flow Assurance Insight– Approaches to Longstanding challenges

In the current oil price climate, subsea Flow Assurance (FA) activities have never been more critical. Effectively preventing and resolving phenomena that interrupt the flow of oil, gas and water from the reservoir to onshore can seriously improve production economics. 

To provide some analysis on how FA operational challenges can be met, Adam Minkley (Project Director – Deepwater, Upstream Intelligence) put together an article for you to highlight:
•    The common FA issues that arise and how they are managed
•    The different approaches that can be taken to mitigate and prevent FA challenges

Click here to read this free article: Flow Assurance Insight – Approaches to Longstanding challenges
http://bit.ly/flowassure-insight

We hope you find this interesting. Let us know your thoughts!

Former Shell president to address new gala dinner at Decommissioning & Abandonment Summit - 16/02/2015

Former Shell president to address new gala dinner at Decommissioning & Abandonment Summit 

The former president of Shell, John D. Hofmeister, has been named speaker at the first-ever gala dinner to be held for the decommissioning and abandonment sector, at the 2015 Decommissioning & Abandonment Summit on 17 March in Houston. 

The dinner represents a major networking and business development opportunity, providing guests the chance to cement relationships with top level executives from key US regions and around the world. 

More than 20 operators including Shell, Chevron, Exxon and BP will be attending, plus international operators such as Shell E&P Nigeria and Petrobras. 

John D. Hofmeister served as the President of Shell Oil Company from 2005 to 2008. A business leader who has participated in the inner workings of multiple industries for over 36 years, he has also held key leadership positions in General Electric, Nortel and AlliedSignal (now Honeywell International). 

In addition, Chris Peterson, Vice President at Titan Salvage – the company at the face of the largest and most technically demanding salvage project of its kind in history – will share the awe inspiring story behind the lifting of Costa Concodia. 

 “We’re delighted that John and Chris have agreed to speak at the gala dinner, which itself is a first for the sector,” said Phil Chadney, senior industry analyst with summit organizer, DecomWorld. “With the plummeting oil prices forcing a rethink in oil operations all over the world, it will be useful to hear from two experts that have respectively contributed so much to both the oil and gas and salvage industry.” 

“The dinner will also provide an excellent opportunity for the industry to share experiences and make new contacts, which will be critical for the year ahead,” he added. 
Also new this year at the seventh annual summit, taking place over 17-19 March, is a full day ‘closed door’ deepwater D&A workshop with exclusive case study insights presented by BHP Billiton and Anadarko on their latest projects. 

More than 700 offshore, decommissioning, abandonment and late life executives and more than 60 leading exhibitors from across the world will be attending the sector’s biggest networking and business development event. 

Dry wells near the Knarr field in the North Sea - 34/3-4 S and 34/3-4 A - 16/02/2015

Dry wells near the Knarr field in the North Sea - 34/3-4 S and 34/3-4 A

BG Group AS, operator of production licence 373 S, is in the process of completing the drilling of wildcat wells 34/3-4 S and 34/3-4 A.
The wells were drilled about 5 kilometres east of the Knarr field in the northern part of the North Sea.

The purpose of wildcat well 34/3-4 S was to investigate a large channel system in reservoir rocks in the Pleistocene. The well encountered a 250-metre thick channel system, about 50 metres of which was of very good reservoir quality. Traces of gas were encountered in two thin sandstone layers.

The purpose of well 34/3-4 A was to prove petroleum in lower Jurassic reservoir rocks (the Cook formation). Well 34/3-4 A encountered about 110 metres of the Cook formation, 53 metres of which was sandstone with good reservoir quality and traces of gas.

Data sampling and aquisition have been carried out in both wells. Both wells are classified as dry.

These are the fifth and sixth exploration wells in production licence 373 S. Wells 34/3-4 S and 34/3-4 A were drilled to measured depths of 1607 and 4535 metres, respectively, and vertical depths of 1584 and 4321 metres below the sea surface, and were terminated in the Hordaland group in the Miocene and the Amundsen formation in the Lower Jurassic. Water depth at the site is 406 metres.

The wells will now be permanently plugged and abandoned.

Wells 34/3-4 S and 34/3-4 A were drilled by the Transocean Searcher drilling facility, which will now move on to drill wildcat well 34/3-5 S in the same production licence.

Friday, 13 February 2015

Johan Sverdrup - in the company of giants - 13/02/2015

Johan Sverdrup - in the company of giants

Johan Sverdrup was proven in two stages, but it was clear from the start that this was actually one gigantic oil discovery. Ranked by size, it is number five on the Norwegian ranking list.

First out was Lundin, which in 2010 made a discovery they called Avaldsnes. The next year, Statoil proved Aldous, which was ranked as the world's largest discovery that year.

Johan Sverdrup is in a mature area in the eastern Utsira High. The area was awarded in the very first licensing round on the Norwegian shelf in 1965. It has seen a number of different "owners" or licensees over the years, and many exploration wells have been drilled there. But only after exploration results from the western Utsira High indicated functioning petroleum systems, was Johan Sverdrup proven by Lundin with discovery well 16/2-6 in production licence 501 in September 2010. The license was awarded in APA 2008. Between 2010 and February 2015, a total of 21 appraisal wells and eight geological sidetracks have been drilled on Johan Sverdrup.

As big as Northern Jæren
Johan Sverdrup is large, both in resources and extent. When the companies reported their resource figures in the autumn of 2014, they stated that recoverable resources in the field total 370 million standard cubic meters (Sm3) of oil equivalents. The field covers about 200 square kilometres, which corresponds to the combined size of the Rogaland municipalities Stavanger, Sola, Randaberg and part of Sandnes. In other words, it covers an area the size of Northern Jæren.

The reservoir in the Johan Sverdrup discovery is located about 1800 metres under the seabed, and can be described as a relatively flat geological landscape, split into various hills, terraces and basins. The reservoir sand has varying thickness, from a few metres up to 60 metres. "Most of the sand has very high permeability, which means that the recovery rate could exceed 60 per cent," says senior geologist Fridtjof Riis in the Norwegian Petroleum Directorate. He has worked on Johan Sverdrup since the first discovery well.

"Its enormous size makes Johan Sverdrup an extremely important discovery. This is why the NPD has made its own resource assessment," he says.

"We geologists have interpreted seismic data, examined well results and have made a separate geomodel on this basis. Such a model allows us to gain a good understanding of the reservoir, and has been used in communication with the licensees."

The model has also been used as documentation in the studies the NPD reservoir engineers have conducted to consider alternative drainage strategies and methods for improved recovery.

"A large number of appraisal wells have been drilled on Johan Sverdrup, some have been positive surprises, others negative. Overall, however, all the appraisal wells have provided a very good basis for developing the field," says the senior geologist, who expresses great enthusiasm for the work on Sverdrup.

"Opportunities to work on something this big are few and far between."

Minor oil discovery near the Ekofisk field in the North Sea – 2/4-22 S - 13/02/2015

Minor oil discovery near the Ekofisk field in the North Sea – 2/4-22 S

Statoil Petroleum AS, operator of production licence 146, is in the process of completing the drilling of wildcat well 2/4-22 S.
The well was drilled about 20 kilometres north of the Ekofisk field and 2.3 kilometres northeast of the 2/4-21 discovery in the southern part of the North Sea.

The primary exploration target for well 2/4-22 S was to prove petroleum in reservoir rocks in the Permian (the Auk formation in the Rotliegend group). The secondary exploration target was to prove petroleum in reservoir rocks in the Middle Jurassic (the Bryne formation).

In its primary exploration target, the well encountered a 27-metre total oil column in the Auk formation, 24 metres of which was sandstone of good reservoir quality. In its secondary exploration target, the well encountered oil columns in two intervals in the Bryne formation, where the top interval also extends into the overlying Ula formation in the Upper Jurassic. No oil/water contact was encountered in either of the intervals in the Jurassic. The Bryne formation has a 46-metre total oil column, about 30 metres of which is sandstone of good to poor reservoir quality. The Bryne and Ula formations have a 49-metre total oil column, about 15 metres of which are from multiple thin sandstone layers with good to poor reservoir quality.

Data acquisition and sampling have been carried out.

Preliminary estimates of the size of the discovery range between 0.7 and 2 million Sm3 of recoverable oil equivalents. Further studies are needed in order to determine whether the discovery can be included as part of a future development of the area.

This is the ninth exploration well in production licence 146. The license was awarded in the 12th licensing round in 1988.

Well 2/4-22 S was drilled to a vertical depth of 4834 metres below sea level and was terminated in the Auk formation. Water depth at the site is 67 metres. The well will now be permanently plugged and abandoned.

Well 2/4-22 S was drilled by the Maersk Gallant drilling facility, which will now move on to drill exploration well 2/4-23 in the same production licence.

Thursday, 12 February 2015

Cameron First Quarter Earnings Release Conference Call - 12/02/2015

Cameron First Quarter Earnings Release Conference Call

Cameron (NYSE: CAM) plans to hold a conference call on Thursday, April 23, 2015 at 9:30 a.m. eastern time to discuss its financial results for the first quarter of 2015.  The company expects to release its quarterly financial results the same day, before the U.S. markets open.

The call will be accessible to the public by telephone or webcast. To listen by telephone, dial 201-689-8261 approximately ten minutes before the call.  The webcast will be available through the company's web site, www.c-a-m.com.

A replay will be available for approximately 30 days after the call via telephone at 201-612-7415 (conference call # 13601332) or through the Cameron web site.

Cameron is a leading provider of flow equipment products, systems and services to worldwide oil and gas industries.

Minor gas discovery northeast of 16/2-6 Johan Sverdrup in the North Sea – 26/10-1 - 12/02/2015

Minor gas discovery northeast of 16/2-6 Johan Sverdrup in the North Sea – 26/10-1

Map - Download pdfLundin Norway AS, operator of production licence 674 BS, is in the process of completing the drilling of wildcat well 26/10-1.
The well was drilled about 33 kilometres northeast of the discovery well, 16/2-6, on Johan Sverdrup in the central North Sea, and about 100 kilometres west of Stavanger.

The purpose of the well was to prove petroleum in reservoir rocks in the Miocene (the Utsira formation). The well encountered a 24-metre total gas column in the Utsira formation with excellent reservoir quality. The well was not formation tested, but data acquisition and sampling have been carried out. Preliminary calculations of the size of the discovery are between 1.5 and 4 billion standard cubic metres (Sm3) of recoverable oil equivalents.

This is the first exploration well in production licence 674 BS. On 28 October 2014, it was carved out from production licence 674, which was awarded in APA 2012. The well was drilled to a vertical depth of 995 metres below the sea surface and was terminated in the Hordaland group. Water depth at the site is 140 metres. The well will now be permanently plugged and abandoned.

Well 26/10-1 was drilled by the Island Innovator drilling facility, which is now moving on to drill wildcat well 16/1-24 in production licence 338 C, where Lundin Norway AS is the operator.

Monday, 9 February 2015

Brand new BSEE, Marathon, Chevron and BOEM execs join ‘unmissable’ Summit program - 10/02/2015

Brand new BSEE, Marathon, Chevron and BOEM execs join ‘unmissable’ Summit program 

The industry’s oil price pressures are not stopping the clock for global decommissioning and abandonment executives as they flock to Houston for what is set to be the most operator-led debate to date. 

The news comes as organizer DecomWorld announces a raft of exciting developments to the program for its 7th Annual Decommissioning & Abandonment Summit, 17-19 March. 
Marathon Oil’s Advanced Senior Facilities Engineer has now been confirmed to join the much anticipated deepwater decommissioning panel session alongside leaders from Stone Energy, Anadarko and BHP Billiton. 

Meanwhile, leading federal representatives from BSEE, including pipeline section chief and deputy regional supervisor will address the 700 attendees on the very latest regulatory updates impacting industry.  

Perspectives on international markets will be boosted by key delegations from Norway, Aberdeen, Brazil and Nigeria – including Talisman, Petrobras and Shell Nigeria Exploration and Production Company. 

Under the brand new “Subsea infrastructure, pipelines and topsides” conference stream, Stone Energy decommissioning manager Gary Siems will share how four toppled decks were recovered in just four days as part of a critical need to address cost-efficiencies.  
And on the social side, the brand new DecomWorld Gala Dinner has cued up the renowned John Hofmeister, former president of Shell Oil Company to open the Summit on the positive note of 21st century energy prosperity. 

“The deep participation of so many operators and thought leaders really confirms the summit as an unmissable event in the industry’s calendar,” said Philip Chadney, senior project director for DecomWorld. 

The 7th Annual Decommissioning & Abandonment Summit takes place 17-19 March, 2015 in Houston. For more information visit the website (http://bit.ly/decomab-summit)

Final Exhibition Opportunities for Decommissioning & Abandonment Summit - 09/02/2015

 Final Exhibition Opportunities for Decommissioning & Abandonment Summit

With less than 6 weeks to go until the world’s largest Decommissioning & Abandonment Summit (March 17-19, Houston), Decom World are down to their last remaining exhibition booths in the 60+ technology hall.

Do you want to showcase your offshore services at this world-renowned industry Summit?

Securing one of the few final exhibit booths will give you the opportunity to engage with over 700 senior level attendees from the leading operators and contractors, including Anadarko, BHP Billiton, BP, Chevron, Inpex, Marathon Oil, Shell, Stone Energy, Talisman Norway, Baker Hughes, Weatherford and many more

 As such, this summit is the perfect platform to demonstrate your offshore products and services to the industry decision-makers. 

With only a few exhibition booths remaining, confirm your space today via the below details. Make sure you don’t miss out on this very final opportunity to win decommissioning and abandonment business in this million dollar global market.

For more info on the Decommissioning & Abandonment Summit, please visit: http://bit.ly/decomaban2015

Exploration success in the Krafla area- 09/02/2015

Exploration success in the Krafla area

Operator Statoil has together with PL035 partners completed a two-well programme in the Krafla area in the North Sea. Since 2011 significant new recoverable resources have been proven in the area.

Bilde
The Krafla Main Tarbert appraisal well and the small oil discovery in the Krafla North prospect in December has increased the robustness of the Krafla field development project.

"Since 2011 we have made five discoveries in the Krafla area which includes the licences PL035 and PL272: Krafla Main, Krafla West, Askja West, Askja East and Krafla North," says Irene Rummelhoff, Statoil senior vice president for exploration on the Norwegian continental shelf (NCS).

"Altogether we expect to have discovered recoverable resources in a range of 140-220 million barrels of oil equivalent just 25 kilometres southwest of Oseberg South and 150 kilometres west of Bergen. These are very substantial volumes for a mature area of the shelf," says Rummelhoff.

Statoil puts a lot of effort into unlocking the full potential of the mature areas of the NCS, both through increased recovery initiatives in producing fields and targeted exploration programmes in surrounding areas.

The discoveries in the Krafla area once again demonstrate that growth opportunities still exist in the North Sea. 

"Statoil has a unique role as an area architect in the mature parts of the NCS with long experience in developing new discoveries by utilising existing infrastructure," says Knut Skjoldli, vice president field development west in Statoil.

Statoil is the operator of PL035/PL272 with an interest of 50%. The partners are Svenska Petroleum Exploration AS (25%) and Det norske oljeselskap ASA (25%).

Thursday, 5 February 2015

SAL HEAVY LIFT COMPLETES AFRICA MOVE - 05/02/2015

SAL HEAVY LIFT COMPLETES AFRICA MOVE

Long-term engagement offshore West Africa successfully finalized  

SAL Heavy Lift's Frauke has completed a six-month project transporting oversize car- goes for a West African offshore development. 

Two empty carousels - each measuring 12 m high by 26 m wide and tipping the scales at 620 tonnes - were loaded onboard the heavy lift vessel in Netherlands and exported to the USA. Stateside, more than 2,000 tonnes of umbilicals were spooled onto the carousels. 
The carousels, now weighing 1,465 tonnes and 1,875 tonnes respectively, were then shipped onboard Frauke to the West African project site.

Frauke remained onsite for two months, providing support to the dedicated installation vessel. Upon completion of the works, Frauke was tasked with re-delivering the empty carousels back to the Netherlands. 

A special challenge within this project was the weight spreading calculation on the hatch covers, explained SAL Heavy Lift. The stability of the hatch covers was en- sured with tailor-made steel supports, which were installed beneath each cover.

In addition, a special grillage was designed to spread the weight of the heavier carou- sel. These extensive measures guaranteed the safe handling and transport of the cargo for the entire project duration. 

Gazprom sets up new department - 05/02/2015

Gazprom sets up new department

Gazprom set up a new department to be headed by Pavel Krylov.

Pavel Krylov heads Gazprom’s new department
The department will be in charge of implementing the Gazprom corporate unified technical policy in search, creation and introduction of state-of-the-art solutions, equipment and materials acknowledged worldwide, including substitutes of their non-domestic counterparts, with a view to secure the Company’s technological independence.

Vitaly Markelov, Deputy Chairman of the Gazprom Management Committee will supervise the new department.

Wednesday, 4 February 2015

Eldar Sætre new president and CEO of Statoil - 04/02/2015

Eldar Sætre new president and CEO of Statoil 

Statoil’s (OSE: STL, NYSE: STO) board of directors has appointed Eldar Sætre as new president and CEO

Sætre has been acting as president and CEO since October, and assumes the role with immediate effect. He has 35 years’ experience from Statoil and the oil- and gas industry.

Bilde"Eldar Sætre was our first choice. The industry and company are facing demanding challenges. 

Eldar stands out with his long experience and ability to create change. Those are qualities we need in times like these. I am extra pleased that we were able to recruit the next CEO from within Statoil," says Statoil’s chair of the Board, Svein Rennemo.

Sætre has extensive operational and financial experience from Statoil. He has been a member of the Corporate executive committee since 2003. He started as CFO, and later became executive vice president for the business area Marketing, processing and renewable energy (MPR).

Statoil is well positioned for the future. We have a solid financial platform, and a highly competent organisation. Our industry is currently experiencing large uncertainty. Statoil started the work to improve our competitiveness early. We have our work cut out for us, but we are well prepared to tackle these challenging times," says Eldar Sætre, Statoil’s new president and CEO.

"Statoil is changing, but one thing remains firm: My first and foremost responsibility is for safe and secure operations," Sætre says.

"Going forward we will bring with us the best of what Statoil represents. Our key focus will be on the Norwegian continental shelf, where we will look to deepen and extend our position. At the same time we will continue to pursue international opportunities, where we have competitive advantages," says Sætre.

"Statoil´s strategy is future oriented and well anchored. Three areas stand out to me as of particular importance: On the Norwegian continental shelf we will strengthen and extend our position. Internationally we will invest where we can create material and profitable positions. We will also strengthen our efforts in the transition to a low carbon society. Competitiveness and sustainability is of critical importance, either in oil and gas production or future projects in renewable energy," Sætre says.

Chair of the Board Svein Rennemo has headed a subcommittee of the board that, following the resignation of Helge Lund in October of last year, has been responsible for the search for Statoil’s next CEO.

"We have conducted a comprehensive search. We have evaluated Norwegian and international candidates, both in- and outside the company," says Rennemo. He points to three main challenges for the next CEO:

Improving Statoil’s competitiveness, through a strengthened efficiency and improvement agenda.

Navigating a macroeconomic situation with larger uncertainty and stronger pressure on industry margins.

Increasing the speed of the company’s transition towards a low carbon society.
"The candidate we were looking for needed in depth knowledge of the oil and gas industry, and a strong understanding of Statoil´s challenges and opportunities. Those are non-negotiables for succeeding in this role," says Rennemo.

When Sætre was appointed as acting CEO, he expressed to the board that he would not be a candidate for the job on a permanent basis.

"We are glad he changed his mind. At the same time, we wanted the benefit of carrying out a broad search. Statoil needs the best candidate," Rennemo says.

"When I came into the job, I fully experienced how inspiring and energising this position is. I enjoy the challenges, and look forward to taking on the job with an even longer perspective," says Sætre.

Sætre’s annual fixed salary will be 7.7 million NOK, whereof 5.7 will be pensionable income. He will participate in Statoil’s programs for annual variable pay and long term incentives, as previously established for the CEO position and described in the boards statement on executive remuneration.

Sætre will keep his existing pension agreement, which entails a right to resign at 62.

"I take on the job with a long term perspective on the tasks and challenges. I will do it for as long as the board and I agree that I am the right man for the job," says Eldar Sætre.

Eldar Sætre played a key role during Statoil’s IPO and the merger with Norsk Hydro’s oil and gas division.  He was responsible for the updated strategy for marketing of natural gas to the European market. He has also led the improvement work at Statoil’s onshore facilities.

Statoil will host a press conference at 10:30 CET at the company´s office at, Martin Linges vei 33, Fornebu, Oslo. Chairman Svein Rennemo and CEO Eldar Sætre will be present. The press conference will be in Norwegian. The press conference will be webcasted.

Tuesday, 3 February 2015

MagneGas Accepted into the United Nations Global Compact - 03/02/2015

MagneGas Accepted into the United Nations Global Compact

MagneGas Corporation, a technology company that counts among its inventions a patented process that converts liquid waste into a hydrogen-based fuel, is pleased to announce that they have been granted membership into the United Nations Global Compact (UNGC), a strategic policy initiative for businesses that are committed to aligning their operations and strategies with ten universally accepted principals in the areas of human rights, labor, environment and anti-corruption. The initiative seeks to combine the best properties of the UN, with the private sector's solution-finding strengths, and the expertise and capacities of a range of key stakeholders.

The United Nations Global Compact has shaped an initiative that provides collaborative solutions to the most fundamental challenges facing both business and society.  The UNGC seeks to catalyze business action in support of UN goals and issues, with emphasis on collaboration and collective action.  Companies from over 145 countries are represented, and the Company believes admission into the UNGC will facilitate expansion into some key areas of the globe which are seeking sustainable solutions to their environmental issues.

Some of the benefits of engagement include the following:  

Advancing sustainability solutions in partnership with a range of stakeholders, including UN agencies, governments, civil society, labor, and other non-business interests.
Linking business units and subsidiaries across the value chain with the Global Compact's Local Networks around the world — many of these in developing and emerging markets.
Accessing the United Nations' extensive knowledge of and experience with sustainability and development issues.

"The foundation of MagneGas has always been deeply influenced by the creation of sustainable solutions, with an emphasis on addressing the global issues related to fuel," noted Ermanno Santilli, CEO of MagneGas. "By joining the United Nations Global Compact, we will be able to work closely with other like-minded organizations and address the upcoming challenges pertaining to business, society, and sustainability.

We believe that cleaner technologies and practices are needed to protect the environment and ensure a healthy future for generations to come.  As an example, the comparative impact of methane on climate change is over twenty times greater than carbon dioxide[1] over a 100-year period, making it a substantially potent greenhouse gas.  MagneGas is working towards taking animal manure and municipal waste water, which naturally produces methane, and transform that waste into clean burning fuel."

The MagneGas IR App is now available for free in Apple's App Store for the iPhone or iPad http://bit.ly/AfLYww and at Google Play http://bit.ly/Km2iyk for Android mobile devices.

China’s biggest independent rating agency Dagong assigns highest credit rating to Gazprom - 03/02/2015

China’s biggest independent rating agency Dagong assigns highest credit rating to Gazprom

China’s biggest independent rating agency Dagong assigns highest credit rating to GazpromDagong Global Credit Rating Company Limited (Dagong), China's biggest independent rating agency assigned today the highest credit rating to Gazprom – 'AAA' with a 'stable' outlook.

The agency named strong fundamentals and a high level of financial solvency among the criteria for assigning the highest rating to Gazprom.

They provide for the assurance in Gazprom's fulfilling all its financial obligations, the Company's firm market position, its importance for the Russian economy as well as a high level of social responsibility of Gazprom's business.

The assigned credit rating will expand the scope of investments from Asia-Pacific into Gazprom's debt financial instruments, including pension funds, insurance companies, investment funds and banks as well as increase the Asian investors' loyalty to the Company.

Monday, 2 February 2015

Stone Energy Decom Manager shares impact of oil price - 02/02/2015



Tackling Decommissioning In A Low Oil Price Environment

Stone Energy Decom Manager shares impact of oil price

On Wednesday 4 February at 10am CST, Stone Energy’s Decommissioning Manager will be joined alongside industry experts Brian Twomey and Bruce Crager to deliver exclusive operator and contractor perspectives on the impact of low oil price on decommissioning & abandonment.

Sign up for the complimentary webinar here (http://bit.ly/web-in-ar-gom) to get exclusive insight into:

•    How an independent operator sees low prices impacting structural decommissioning and well abandonment operations in the Gulf of Mexico to understand how this will impact retirement progress
•    How industry is working on a cutting-edge study to seek lower costs for subsea decommissioning applying rig to intervention vessel methodologies
•    The debate on whether or not low oil prices will increase the pace of decommissioning & abandonment or not by analysing crucial data to inform your strategy

If you can’t listen live, sign up anyway and they’ll send you the recording after!

Norwegian Petroleum Directorate - Fifty years since it all started - 02/02/2015

Fifty years since it all Started

This year marks 50 years since petroleum activities began in Norway. The boundaries of the shelf were laid out, and the first – and largest – licensing round was announced.
On 9 April 1965, the rules shaping petroleum activities on the Norwegian shelf were stipulated in a Royal Decree. Just four days later, the first licensing round was announced for 278 blocks in the North Sea, south of the 62nd parallel.
Sokkelkart_1965_ingressThe announcement came two months after Norway and the United Kingdom had signed a treaty dividing the continental shelf according to the median line principle. A similar treaty was signed with Denmark on 8 December the same year.
At the end of the 1950s, Norwegian geologists had ruled out the possibility of oil and gas deposits off the Norwegian coast. However, the vast Groningen gas discovery in the Netherlands in 1959 caused many people to reconsider the possibility of finding petroleum under the seabed in the North Sea. First out was oil company Phillips Petroleum in the autumn of 1962 with a request to the authorities for permission to conduct geological surveys on the shelf. Several other international companies followed, with applications for exclusive rights to explore for oil in specific areas.
"Norway’s sovereignty over the Norwegian continental shelf for exploration and exploitation of subsea natural resources” was proclaimed in May 1963. This Act confirmed that the Norwegian State was the owner of the Norwegian continental shelf, and that only the Government could grant permission for exploration and production.
The first announcement received 11 applications, and 22 production licences for 78 blocks were awarded in August 1965. It took four more years before the first major oil discovery was made – Ekofisk.
Today, 79 fields are operating on the Norwegian continental shelf. Since the 1970s, the petroleum activities have contributed NOK 11 000 billion to Norway’s domestic product, measured in 2013-NOK.
The 23rd licensing round was announced on 20 January of this year, for 57 blocks and parts of blocks in all of the three maritime zones outside Norway.