Field Development Snapshot: US Gulf of Mexico and North Sea

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Rigzone takes a quick look at five offshore developments expected to make an impact in 2014.

Hydrocarbon usage on a global scale continues to increase at a steady rate. While developed countries need a steady supply of energy resources to maintain dominance, developing countries need new resources close to home to provide a cheap supply of oil and gas to fuel burgeoning economies. As a result, companies associated with the oil and gas industry are tasked with meeting these demands by ensuring a stable supply of resources. Efforts to bring new discoveries into production and to extend the commercial life of existing assets continue daily. Listed below are five active projects in the U.S. Gulf of Mexico and North Sea set to come online in 2014.

Tubular Bells

The Hess Corp.-operated Tubular Bells development is located in the Mississippi Canyon region of the U.S. Gulf of Mexico in 4,300 feet of water. Production and injection wells from two drill centers will be tied back to the first spar-based floating production system (FPS) built entirely in the United States. Startup of the $2.8-billion project is tentatively scheduled for late 2014. Production is expected to peak at roughly 45,000 boepd. Some of the companies involved in the work scope are AMEC plc, Williams Partners LP, InterMoor Inc. and Technip S.A.

  • Development approved: October 2011
  • Quarters capacity: 50
  • Water depth: 4,300 feet

Jack/ St. Malo

Chevron Corp. discovered the Jack and St. Malo fields in the Walker Ridge area of the U.S. Gulf of Mexico in 2004 and 2003 respectively. In 2010, the company made the decision to tie both fields back to a single semisubmersible floating production unit (FPU) moored in 7,000 feet of water. The FPU was designed with the capacity to process 170,000 bopd and 42 MMcf/d. With production scheduled to commence in late 2014, Chevron expects the $7.5-billion project to have a commercial life of 30 years with estimated recoverable oil-equivalent resources in excess of 500 million barrels. Companies participating in the project include Mustang Engineering L.P., Cameron International Corp., Technip, KBR Inc. and First Subsea, among others.

  • Development approved: December 2010
  • Quarters capacity: 60
  • Water depth: 7,000

Lucius

Anadarko Corp.’s $2-billion Lucius development is located in 8,000 feet of water in the Keathley Canyon area of the U.S. Gulf of Mexico. Oil was discovered at Lucius in 2009 and the project was sanctioned for development in 2011. Six development wells will flow oil and gas to a 23,000-ton spar capable of handling 80,000 bopd and 450 MMcf/d with production expected to commence in 2H 2014. Technip built the hull at its yard in Pori, Finland and the topsides modules were built at the Keiwit yard in Ingleside, Texas. Additional project contractors include Mustang Engineering, FMC Technologies Inc., Aker Solutions ASA and First Subsea.

  • Development approved: December 2011
  • Quarters capacity: 44
  • Water depth: 8,000 feet

Golden Eagle

Nexen expects its $3.3-billion Golden Eagle project to produce roughly 140 MMboe over an estimated commercial life of 18 years. Golden Eagle, located in the UK sector of the North Sea, involves the commercialization of the Golden Eagle, Peregrine and Solitaire fields. Discovery of Solitaire occurred in 2001 with Golden Eagle and Peregrine following in 2006 and 2008. Development facilities consist of a fixed wellhead platform and a fixed process, utilities and quarters platform installed in 360 feet of water. Startup is forecast for 4Q 2014 with an initial gross production rate of up to 70,000 boepd. Heerema Fabrication Group built both jackets at its Vlissingen yard in the Netherlands. Lamprell plc fabricated the topsides modules at its Jebel Ali facility in Dubai and Sembmarine SLP built the accommodation unit at its yard in Lowestoft, UK. Other contractors involved with the project include Technip, Wood Group and Prosafe SE.

  • Development approved: October 2011
  • Quarters capacity: 140
  • Water depth: 360 feet

Goliat

When it comes on stream at the end of 2014, Eni S.p.A.’s $5.1-billion Goliat development will be the first operational oil field in the Norwegian sector of the Barents Sea. Due to regulatory stipulations and harsh weather concerns, Eni and its partner Statoil ASA have elected to employ the Sevan 1000 hull design for the Goliat FPSO. The cylindrical vessel is able to handle severe sea conditions and is outfitted to meet strict environmental regulations that are necessary in the Barents Sea. Recoverable oil reserves are estimated at 174 million barrels and the field is expected to produce at a commercial rate for at least 15 years. After startup, production is expected to plateau at 100,000 bopd. Some of the companies involved with this ground breaking project include Sevan Marine ASA, Hyundai Heavy Industries Co. Ltd., Technip and DOF Subsea Norway.

  • Development approved: May 2009
  • Quarters capacity: 120
  • Water depth: 1,300 feet


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