Asia Pacific

  • Petronas’ floating liquefied natural gas (FLNG) facility PFLNG SATU loaded its first cargo at the Kanowit gas field offshore Miri in the state of Sarawak, Malaysia, on 3 April. The facility is the world’s first to begin commercial FLNG operations. The cargo was loaded onto the LNG carrier Seri Camellia, which was expected to set sail for a South Asian market. “This accomplishment effectively demonstrates Petronas’ proven technology and capability of adapting a conventionally land-based installation to a floating LNG facility, a game-changer in today’s LNG business landscape,” Petronas President and Group Chief Executive Officer (CEO) Datuk Wan Zulkiflee Wan Ariffin said. Operated by an onboard team of 145 crew members, PFLNG SATU has an LNG processing capacity of 1.2 million metric tons/yr.

  • Shell said it will drill 161 new gas wells at its Queensland operations by the end of 2018, helping to secure its ongoing promise to supply 10% of the country’s gas market demand. The drilling will not affect exports from the company’s Queensland Curtis LNG plant. Shell’s announcement came a week after Prime Minister Malcolm Turnbull met with the company and gas producer ExxonMobil to discuss how to increase supplies to offset a predicted market shortage within 2 years. Eastern Australia has experienced power blackouts and brownouts over the past year, and growing LNG exports have led to soaring gas prices for manufacturers.

  • Latin America-Caribbean

  • Shell has opened a treatment plant for shale oil and gas in Argentina’s Vaca Muerta shale play, one of the world’s largest. The plant has the ability to process up to 10,000 B/D of oil from the company-operated Sierras Blancas, Cruz de Lorena, and Coiron Amargo Sur Oeste blocks. Investment has been increasing in the Vaca Muerta in recent months, following a national government agreement with labor unions to lower costs, the clarification of price supports by the national government, and a provincial government agreement to stabilize taxes.

  • Mexico

  • Eni said its recent discovery offshore Mexico would hold more than the 800 million bbl of oil it originally estimated. “This is an important find and we’ve found new layers of good light oil that make us think there’s more,” CEO Claudio Descalzi said at an industry conference on 29 March. The company said earlier in March that its Amoca-2 well in the Bay of Campeche had found “meaningful” oil reserves. With the exploratory project, Eni became the first international operator to drill a well in Mexico following the 2013 reform that opened the oil sector to foreign investors.

     

  • Middle East-North Africa

  • BP has discovered natural gas in the North Damietta offshore concession block in Egypt’s East Nile Delta, the company’s third discovery in the block. The Qattameya Shallow-1 exploration well, in which BP has a 100% interest, was drilled to a total depth of 6,434 ft in water depth of 354 ft. “This latest discovery confirms our belief that the Nile Delta is a world-class basin,” BP Chief Executive Bob Dudley said on 26 March. The well is 37 miles north of Damietta city in the northern part of the country. The company produces approximately 40% of Egypt’s gas.

  • Qatar Petroleum (QP) is planning a new development in the offshore North field, ending a 12-year ban on new projects so it could assess the effect of its extraction rate on the giant reservoir it shares with Iran. The patch, in the southern section of the field, will have a capacity of 2 Bcf/D, or 400,000 BOE/D, and should start production in 5 to 7 years, President and CEO Saad Sherida Al Kaabi told reporters on 3 April. The North field and the connected South Pars field in Iran constitute the world’s biggest reservoir of nonassociated gas. QP was quicker to exploit it, but Iran has begun to catch up.

  • Northern Europe

  • Hurricane Energy reported that it believes the Greater Lancaster Area is a single hydrocarbon accumulation, which would make it the largest undeveloped discovery on the United Kingdom Continental Shelf. Operations on the 205/23-3A Halifax well were complete with the well leading to an oil discovery, the company said. Initial data analysis also indicated that the well is linked to the Lancaster field and forms a single large hydrocarbon accumulation. Preliminary third-party analysis of the well shows a “very significant” hydrocarbon column of at least 3,792 ft within the basement rock and it extends well below the local structural closure, Hurricane said. Following discussions with the UK Oil and Gas Authority, the company said the well has been suspended with future possibilities of deepening and/or further testing.