Monday, February 28th, 2011
Smith Bits announced today the release of its Spear* shale-optimized steel body polycrystalline diamond compact (PDC) bit. The Spear drill bit is specifically designed for shale plays to efficiently drill a curve and a long lateral hole section for faster penetration rates in low hydraulic energy environments.
“The Spear bit makes efficient use of rig time by significantly enhancing both rate of penetration (ROP) and run length,” said Guy Arrington, president, Smith Bits. “Additionally, improved directional control allows for the realization of complex well trajectories. Since the bit is capable of drilling both curve and lateral sections, it reduces the number of trips downhole and the associated rig time. The bit also reduces customer’s NPT by minimizing vibration and preventing packed blades, plugged nozzles and cutter damage.”
The shale-optimized steel body PDC drill bit has been used successfully in the Bakken, Barnett, Marcellus, Haynesville and Eagle Ford shale formations of North America. In the Marcellus shale for example, target ROP for drilling the horizontal leg was 50 ft/h. The Spear bit achieved ROPs in excess of 65 ft/h, a 30 percent improvement over the operator-set target. In the Haynesville, the bit consistently drilled the horizontal section in one run at ROPs 10- to 20-percent faster than the best offset performance.
The Spear drill bit permits high ROP through a combination of tall and thin blades, which provide a large area for cuttings flow. A unique hydraulic design directs flow towards the cutter faces, keeping them sharp, and also sweeping cuttings away from the bottom of the hole and around the bullet-shaped body into the annulus.
Lower torque response and improved directional control are provided through the use of small cutters on the Spear drill bit. To reduce and redistribute cutter loading and minimize vibration that is caused by high formation rock strength, the LoVibe* depth of cut control inserts are placed behind the shoulder and gauge cutters.
The Spear drill bit is IDEAS* certified using a proprietary integrated drillbit design platform and can be fitted with the premium ONYX* PDC cutters option for hard rock drilling applications.
The unique characteristics of the steel bit body have made it possible to overcome hydraulic challenges, maximize hole cleaning, improve directional response, reduce borehole tortuosity and enhance stability.
For more information on Spear, visit www.slb.com/spear.
Monday, February 28th, 2011
An ordinary meeting of the Board of Directors of Gazprom Neft took place on 25 February in St. Petersburg, during which the company’s current business activities were examined.
The Board took notice of progress made in implementing measures for Gazprom Neft’s exit from the oil service business.
The decision to spin off the oil service unit from Gazprom Neft’s structure was taken by the Board of Directors in March 2010. A contract for the sale of Gazprom Neft’s oil service unit Muravlenkovskaya Transportnaya Kompaniya was signed in January 2011. Gazprom Neft is planning to complete the spinoff from the oil service business in full by the end of 2011.
The supply of energy to Gazprom Neft’s facilities was another item on the Board’s agenda.
Gazprom Neft introduced an energy efficiency programme to counter the increases in expenditure on oil production energy supply. As a result, the total cumulative economic effect for the oil production unit will amount to 900 million rubles in 2009-2011 as a result of implementing the energy-saving programme in oil production.
Gazprom Neft’s own share in energy production to supply upstream operations has increased from 4% in 2009 to 19%. This increase is a result of the development of local oil deposits and the commissioning of gas turbine power stations in the Yuzhno-Priobskoye deposit.
Energy efficiency programmes within processing operations will be carried during 2011 to 2013. Through reducing energy consumption by 4.8% by 2013, the anticipated economic effect at the Omsk Refinery will amount to 146 million roubles. Upgrades at the Moscow refinery will result in a saving of 47 million roubles.
Measures for optimising energy consumption will also be carried out in the Gazprom Neft Filling Station Network, with an estimated economic effect of around 50 million roubles to be achieved in 2011 to 2013.
The Board of Directors took notice of progress made in implementing a programme to utilise associated petroleum gas (APG) and increase its efficiency. The programme covers the following three main regional projects: in the Yuzhno-Priobskoye deposit, in the Vyngapurovsky group of deposits (the Noyabrski integrated project) and in the Shinginsky, Urmansky, Archinsky, Lower and West Luginetsky deposits (the Tomsk Integrated project).
In June 2010, Gazprom Neft announced the construction of a compressor station and an APG collection system in the Yuzhno-Priobskoye deposit. This will allow for around 500 million cubic metres of gas to be sent to the South Balyksky gas processing complex per year, bringing the level of use of APG at the deposit up to 95%. The utilisation of gas at the Noyabrsky integrated project is linked to the modernisation of the Vyngapurovsky compressor station, whose capacity could reach 2.35 billion cubic metres of gas per year in 2012 after expansion. The implementation of the Tomsk integrated project is linked to APG utilisation at the Luginetsky compressor station and the planned project to build the Barabinsky gas refinery. The Noyabrsky and Tomsk projects will require a need to build additional systems for the transportation of APG
Monday, February 28th, 2011
FMC Technologies, Inc. (NYSE:FTI) announced today that Peter D. Kinnear will be succeeded by John T. Gremp as President and Chief Executive Officer effective March 1, 2011. Additionally, Mr. Gremp has joined the Company’s Board of Directors. Mr. Kinnear will continue in the role of Chairman of the Board until October 31, 2011, at which time Mr. Gremp will assume the additional role of Chairman of the Board.
Mr. Gremp was appointed President and Chief Operating Officer of FMC Technologies in April, 2010. During his 35 year career, he has held a variety of management roles, recently serving as the Executive Vice President of Energy Systems in 2007 and Vice President Energy Production in 2004.
Mr. Kinnear said, “John has done an excellent job continuing the worldwide growth of our businesses. His efforts to expand the Company’s technology position and building our global presence have been outstanding.”
In making the announcement, FMC’s Board of Directors noted that the appointment of Mr. Gremp as President and Chief Executive Officer is a tremendous credit to Mr. Kinnear’s leadership and his work regarding succession planning for the Company.
Thursday, February 24th, 2011
The new e-procurement portal for oil and gas procurement specialists will be presented at the sixth annual conference , “Oil and Gas Industry Supply Chain”, in Moscow on March 15.
Prom-oil is the first professional Russian-language website for procurement professionals from of the oil and gas industry. The website contains the information concerning procurement systems of different oil and gas producing companies operating in the Russian market. There are news and analysis pages, interviews, tax code changes, price indices. The website has been created to provide timely information and analysis of the most important events, which are of interest to procurement executives of oil and gas producers.
Prom-oil has been created to improve market transparency and protect the interests of reliable suppliers of products and services to the oil and gas industry. Suppliers who are ready to provide their company information may be included in the website database. The database contains the most important details for suppliers’ preliminary qualification, such as market experience, service centers, certificates, contracts executed, customer feedback, etc. This non-confidential information is presented in a representative style and is very helpful in finding the right supplier. Prom-oil allows users to exchange information concerning their suppliers, which will help to oust dishonest firms from the market. Prom-oil has an on-line notice board to publish invitations to tenders in the oil and gas industry. This will be very helpful to suppliers who otherwise have to monitor many websites of oil industry’s companies to find a call for bid.
Close cooperation with oil and gas companies’ procurement specialists is the keystone of success of Prom-oil. Today, this professional community needs consolidation, which is critical for successful operation and further development of the industry. Prom-oil also has an English version, which will enable Russian companies to communicate with international partners.
Prom-oil is controlled by members of the Coordination Council of oil and gas industry consumers.
The portal’s administration would like to invite market players to post their analytical articles and news on the website
Thursday, February 24th, 2011
OAO Tatneft continues to equip motor vehicles with satellite monitoring systems, which is one of the areas of the Company’s resource-saving activities. As of the beginning of 2010, such systems were additionally installed at 1390 transport vehicles and the total number amounted to 7,715.
Implementation of the satellite monitoring system resulted in daily monitoring the movement routes of the motor vehicles and their speed rates. This allows to use more efficiently the vehicle stock, reduce unproductive and unwarranted runs, as well as to reduce fuel consumption with a concurrent positive effect in reducing the number of traffic rules violations and the strengthening of the transport discipline. Application of the system allowed reducing the average daily mileage of each motor vehicle by 25 percent and fuel consumption by 22 per cent.
The scope of satellite monitoring of motor vehicles used by the Company expands with application of the system to monitor the operation of the surface support service vehicles, control of the vehicles refueling events. In addition to the satellite monitoring of transport vehicles there is a control system of using fuel cards introduced and a decision has been worked out on controlling the level of fuel in the tank trucks. The Company has also organized control over the fuel consumption for steam generation at the mobile steam generating units.
Thursday, February 24th, 2011
КаzМunaiGas Exploration Production (“КМG EP” or the “Company”) today announces results of the annual reserves audit, as at 31 December 2010.
According to the report by the independent energy consulting firm Gaffney, Cline & Associates (“GCA”), proved plus probable (2P) reserves excluding the stakes in JV Kazgermunai LLP, CCEL and PetroKazakhstan Inc. were 232 million tonnes (1,707 million barrels). The reserves replacement ratio1 at Uzen and Emba fields in 2010 was 73%, while in 2009 this figure was 25%. Reserves replacement has been achieved by further exploration, by increased levels of oil recovery in some fields, and in part due to a higher oil price. At the end of 2010 the reserves-to-production ratio was 26 years.
Since IPO of KMG EP in 2006 the Company’s proved plus probable (2P) reserves increased by 14%, while the reserves replacement ratio for the 5 years since the IPO reached 178%. According to the GCA report as of 31 December 2010 proved oil reserves (1P) are 82 million tonnes (600 million barrels), proved, probable and possible (3P) reserves stand at 266 million tonnes (1,955 million barrels).The company continues to work towards increasing its resource
Kenzhebek Ibrashev, the CEO of KMG EP, said: ”We are pleased that active drilling of new wells, additional exploration of fields under development, and return of idle wells to production has allowed us to arrest the decline of the reserves replacement rate. We consider 73% reserve replacement for the mature Uzen and Emba fields as a good result. However, this result emphasizes the need to enhance exploration activity, as rightly envisaged by our current strategy approved in 2010. Given favourable external conditions, we intend to continue investing substantial funds in exploration.”
KMG EP also has a share in proved plus probable (2P) reserves of its associates and joint ventures amounting to 67 million tonnes (475 million barrels).
Tuesday, February 22nd, 2011
Topaz Energy and Marine (‘Topaz’), a leading international oilfield services group, today announced that it has agreed to acquire two offshore supply vessels in Brazil based on a total delivered price of $40.4 million.
The vessels, Sea Otter and Sea Marten, were built in 2007 and 2010 and are both Anchor Handling Tug Supply vessels (AHTSV). AHTSV are specialised vessels used in support of offshore oil and gas activity. The vessels are employed on three year time charter contracts with Petrobras, the semi-public Brazilian oil company and the largest in Latin America.
Fazel Fazelbhoy, Chief Executive Officer of Topaz Energy and Marine, said:
“Brazil offers significant growth opportunity for Topaz, and these vessel acquisitions provide us with an excellent first entry point into the buoyant offshore market. We will continue to pursue growth through partnerships, vessel acquisitions and new build orders. This acquisition is in line with the next steps of our declared business strategy and builds upon extensive preparations to enter the Brazilian market.”
Topaz Energy and Marine is a provider of offshore support vessel and engineering services. It has a modern and diversified fleet of 100 vessels operating primarily in the MENA and Caspian regions.
About Topaz Energy & Marine
Topaz Energy and Marine is a leading oilfield services company providing marine and engineering solutions to the global energy industry with primary focus on MENA and the Caspian Sea. Headquartered in Dubai and with more than 35 years of experience in the Middle East, Topaz operates a fleet of approximately 100 offshore support vessels and provides energy and marine engineering services. Topaz is a wholly owned subsidiary of Renaissance Services SAOG, a publicly traded company on the Muscat Securities Market, Oman.
Friday, February 18th, 2011
On February 17, 2011, a round table session “Environmentally Safe Engineering and Process Solutions for Offshore Oil and Gas Fields Development in the Barents Sea” was held at the Federal Council. The round table was attended by Sergey Mironov, Chairman of the Federal Council of RF Federal Assembly, Victor Orlov, Chairman of FC Committee for Natural Resources and Environment Protection, Vyacheslav Popov, Chairman of FC Commission for National Offshore Policy, Valentin Mezhevich, First Deputy to the Chairman of FC Commission for Natural Monopolies, Vasiliy Duma, Deputy Chairman of FC Committee for Natural Resources and Environment Protection and representatives of Ministries, producers, research agencies and NGO.
In context of this event Alexey Zagorovskiy, Chief Executive Officer of Shtokman Development AG, made a presentation to the round table participants concerning the results of large-scale preparatory works to assure environmental safety of the project.
Shtokman field development is of prime importance as a start project for the Arctic zone development, both considering its economic significance, and acquisition of state-of-art environmentally safe technologies of gas field development in Arctic sensitive ecosystem conditions.
Fully understanding the challenges to be met by the project operators, SDAG did a great preparatory job to assure maximum environmental safety of Shtokman field development: integrated engineering and ecological surveys have been carried out throughout the Shtokman field area, along the pipeline route, on onshore facilities installation places; the best available technologies have been analyzed and chosen for subsea production system and subsea pipeline construction; environmental monitoring and control is provided at all stages of the project implementation. On February 15 in Teriberka (Murmansk Region) Phase I start up facility design engineering documentation materials were discussed, including section “List of Environmental Measures including Environment Impact Assessment (EIA)” with the participation of representatives of environmental organizations (Barents Division of WWF and other public ecological organizations — members of the North Coalition, Kola Saami Association, the North Fishermen Association, etc.).
The path-breaking project requires not only application of cutting-edge technologies to assure environmental safety of the project to meet the requirements of the Russian legislation, but also a faster development of RF legal and regulatory framework, inter alia allowing establishment of favorable conditions for investor attraction and reimbursement of operator costs for development of the region.
In particular, implementation of the project at a level allowing assurance of its environmental safety, requires development of the whole regional infrastructure (Murmansk Region), arrangement of conditions for state-of art technologies and know-how transfer from international companies to Russian companies under the project, as well as encouragement of direct foreign investments in new developments and expansion of plant facilities and service capabilities of Russian enterprises of oil and gas sector.
During the presentation of preparatory work results to assure environmental safety of the Shtokman Project А. Zagorovskiy said: “We interact with the state authorities of Russia at different levels, inter alia with regard to improvement of the legislation applicable to the continental shelf of RF. In connection with innovative nature of the project and stricter requirements to environmental safety, we suggest to review an option to offer state support to Arctic offshore projects. We think that achievement of understanding in this regard will not only promote success of Shtokman, but will also give an impulse of economic development of the north-west regions of Russia, contribute to vertical integration of Russian hydrocarbon production sector, particularly in the fields with severe arctic conditions”.
Friday, February 18th, 2011
According to the audit results, as of December 31, 2010, Rosneft had estimated net proved reserves of 22,765 mln boe, which include 18,110 mln bbl (2,487 mln tonnes) of oil and 27,931 bcf (791 bcm) of gas under the PRMS classification. In 2010 the oil reserve replacement ratio was 106%. Rosneft had hydrocarbon reserve life of 25 years, including 21 years – for oil and 67 years – for gas.
Rosneft’s probable and possible reserves under the PRMS classification were estimated by DeGolyer & MacNaughton at 12,539 and 10,484 mln boe, respectively. These reserves include 9,978 mln bbl (1,367 mln tonnes) of oil and 15,369 bcf (435 bcm) of gas of probable reserves, and 8,256 mln bbl (1,122 mln tonnes) of oil and 13,367 bcf (379 bcm) of gas of possible reserves.
DeGolyer & MacNaughton also performed a reserve audit under the SEC life-of-field classification. Proved reserves were estimated at 15,199 mln boe, including 13,747 mln bbl (1,887 mln tonnes) of oil and 8,709 bcf (247 bcm) of gas.
The audit results confirm Rosneft’s global leadership among publicly traded oil companies in terms of liquid hydrocarbon reserves under both PRMS and SEC life-of-field classifications.
In 2010 Rosneft increased its access to new oil & gas resources, obtaining 4 licenses to blocks on Russia’s Arctic shelf. Large potential of these blocks, which were not included in the company’s resource base for 2010, will have long-term positive impact on Rosneft’s reserves.
Thursday, February 17th, 2011
Tethys Petroleum Limited (“Tethys” or the “Company”) (TSX:TPL) today announced the initial results of testing on the NUR96H2 horizontal development well at the North Urtabulak field in Uzbekistan. The well has now been tested at over 1,100 barrels of oil per day (bopd) and is now being put on production.
This well reached a total depth of 3,060 metres (10,039 feet) with a producing section of 437 metres (1,434 feet) of lateral hole within this.
Tethys believes there is significant additional potential in the North Urtabulak field and is currently evaluating other targets for horizontal drilling. In addition to the North Urtabulak oil field Tethys believes it has an opportunity to acquire additional development and exploration projects in Uzbekistan, a country it regards as having great long term potential to add value to shareholders.
Tethys is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republics of Tajikistan, Kazakhstan and Uzbekistan. This highly prolific oil and gas area is rapidly developing and Tethys believes that significant potential exists in both exploration and in discovered deposits.