IN BRIEF NEW S
in the Norwegian sector of the North Sea. The contract covers engineering and fabrication of two smoothbore gas export risers to connect the Gjøa platform with the gas export pipeline, removal of the existing roughbore risers and installation of the two new smoothbore risers, tie-ins and pre- commissioning activities.
RUSSIA & CENTRAL ASIA
Gazprom and Wintershall have signed a memorandum which covers the pos- sible development on a parity basis of two additional sites targeting the Achimov deposits of the Urengoy field in Russia. Under the agreement, Gazprom will also receive equivalent stakes in Wintershall’s exploration and production projects in the North Sea.
Total and Russian independent gas company Novatek have agreed a strategic partnership under which Total will become the main interna- tional partner on the Yamal LNG pro- ject, holding a 20% share. Novatek will hold a 51% stake in the project. Total will also take a 12.08% share- holding in Novatek, with the intent of both parties to increase the share to 15% within 12 months and to 19.4% within 36 months. The Yamal LNG project will develop the South Tambey field located in the Arctic area of the Yamal peninsula, which has reserves put at 44tn cf (1,250bn cm) of gas. Plans are to produce in excess of 15mn t/y of LNG.
ASIA-PACIFIC
Brunei Shell Petroleum (BSP) (in which Shell holds a 50% interest) has made a significant new oil discovery in the coastal waters of Brunei. The dis- covery, named Geronggong, is situ- ated in the 3rd Offshore Acreage Area, approximately 100 km offshore where the water depth is approximately 1,000 metres, the deepest water depth in which BSP has discovered hydrocar- bons in Bruneian acreage. Follow-up plans involve assessment of the full field recovery potential, including fur- ther appraisal drilling over the next two years.
LATIN AMERICA
Northern Petroleum has announced that drilling has commenced on the Zaedyus prospect in the Guyane (French Guiana) maritime permit. Tullow Oil, the operator, believes the
4
upstream Insurance cover for Libyan evacuations
‘We have got all our clients out’, a consultant from a company that specialises in evacuation for the oil industry and other sectors, recently stated about a successful mission to Libya. For many, however, evacuation has been fraught with danger and some nationals remained stranded, writes Nigel Bance. Those left behind were nationals from countries such as Bangladesh, whose government had no capacity to assist in the evacuations of large numbers, and whose only advice to its nationals was to flee to the borders. By comparison, it was reported that the Chinese government, and a number of state-owned Chinese entities, flew out 36,000 of their nationals from Libya over the course of nine days. Media headlines have focused on national government efforts and oil company
charters. However, there have also been many successful parallel evacuation oper- ations set in motion by the insurers whose clients have cover for upheavals, even on this scale. Insurance is crucial, and most companies that operate in countries such as Libya
are covered for evacuation through their existing kidnap and ransom or specific accident and health policies. One of the largest such insurance providers is Chartis UK. Cover for US and British companies is only evoked if the US government (usu-
ally through OSAC, a division of the US Department of State Bureau of Diplomatic Security) and the British government (through the Foreign and Commonwealth Office) state categorically that nationals should evacuate. For example, there were warnings regarding operations in Bahrain, but these were mainly to ‘defer travel’, so cover was not evoked. Once underwriters have agreed evacuation expenditure (up to the agreed
expenses cap in the policies), specialist evacuation firms with operational capacities in terrains as tricky as the Libyan desert take over. In the recent case of Libya, four- man teams, with backup, were tasked with providing transport and an escort for clients to evacuation points or to the border. Chartered aircraft, despite repeated hassles on landing permits, flew to the military airport in Tripoli, with onward escort by vehicle to the city’s international airport. Despite aggressive officials, clients were personally taken to the charter planes on the tarmac, with surveillance maintained from a distance until the aircraft departed.
Arctic resource potential is ‘substantial’
According to Infield Systems’ first Offshore Arctic oil and gas market report there are over 130bn boe in already discovered oil, gas and conden- sate reserves in offshore Arctic and sub- Arctic regions. Approximately 114bn boe of this are offshore gas reserves, or 86% of total reserves, and around 16bn barrels are oil reserves. No less than 99bn boe of the reserves are discovered natural gas fields located in the Russian offshore Arctic region (not including the sub-Arctic Sakhalin Island area). Infield Systems has identified 147 dis-
covered fields, with only 25 actually cur- rently producing in the offshore Arctic and sub-Arctic regions, and a further 13 fields with either a firm plan or under development. The vast majority of fields (101) are classified as ‘possible’ in terms of development status and are not expected to be developed until the longer term, yet the resource potential in the offshore Arctic is substantial should the infrastructure requirements be made. Indeed, the analyst expects capital
expenditure in the Arctic region to increase steadily throughout this decade, rising year on year to over $7bn by 2017. With significant reserves, Russia is expected to drive expenditure
in the region throughout the forecast period, especially in the years 2013–2015 (due mainly to the Shtokman project). The Shtokman field is due to come
onstream in 2016, and with reserves of over 24bn boe, will account for a large proportion of Russian Arctic expendi- ture over the next decade should this project proceed as scheduled. Further development of Sakhalin Island and other projects expected to be devel- oped also contribute to Russia’s large share of capex. Canada may experience a sustained
rise in expenditure after 2013, including for activities associated with fields in sub-Arctic offshore Newfoundland, and, should some cur- rently speculative projects proceed, smaller fields in the Canadian Arctic Islands as well. Norway’s Barents Sea fields Snohvit
and Goliat will contribute to sustained expenditure as well. The remaining Arctic regions of Greenland (Denmark) and the US (Alaska) are expected to contribute modestly to development expenditure. In these regions more expenditure is likely to be concentrated on further exploration.
PETROLEUMREVIEW APRIL 2011
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