BAKER HUGHES SIGNS FULLSTREAM
SUPPORT AGREEMENT WITH TWINZA
Baker Hughes, a GE company, has signed an agreement with
Twinza Oil Ltd. to provide fullstream support on the Pasca A
gas condensate field, located off Papua New Guinea (PNG) in
the Gulf of Papua.
The Twinza-BHGE fullstream agreement—an industry first—
covers services and equipment during Phase I of the Pasca A
field Development, including drilling services, wellheads and
pressure control equipment for the fourth and final appraisal
well. The appraisal well will be drilled in 3Q 2017, which will be
suspended as a future development well, and the final investment
decision (FID) to proceed to development is expected in 2018.
Post FID, BHGE expects to provide an integrated gas processing
solution from the wells through to point of export. The fullstream
offering includes a wide range of capabilities in drilling services,
subsea equipment, gas processing topsides, gas compression
and turbomachinery as well as installation and commissioning
services. As part of the fullstream package, BHGE was also able
to bring its expertise to offer a financial solution to enable Twinza
to complete appraisal drilling and proceed to FID.
Pasca is the first offshore oil and gas development in PNG
that will produce natural gas liquids (NGLs) in the form of
condensate (a light crude oil) and LPG, and will also produce
Twinza holds 100% of the Pasca A License and has submitted
a development plan for the field that will produce the resource
across two phases. Phase I consists of the initial production of
NGLs, including condensate and LPG, with reinjection of dry
gas ahead of Phase II. During Phase II, dry gas will be
GEOPARK, WINTERSHALL MAKE DISCOVERY
GeoPark Limited, an independent Latin American oil and gas
explorer, operator, and consolidator with operations and growth
platforms in Colombia, Chile, Brazil, Argentina, and Peru, and
Wintershall Energía SA, a subsidiary of the BASF group, discovered
an oil field in the CN-V block (GeoPark 50% WI, Wintershall 50%
WI) in the Neuquen Basin, Mendoza Province of Argentina.
The Rio Grande Oeste 1 exploration well – operated by
GeoPark - was drilled and completed to a total depth of 5,500
feet targeting the Grupo Neuquen formation, where 15 different
potential reservoir sands were identified - at depths that range
from 1,800 to 5,500 feet - with a potential net pay of 400 feet.
Preliminary logging information indicated hydrocarbons in the
upper, middle, and lower zones. The complete testing program
is still underway. To date, GeoPark has carried out production
tests in four reservoir sands, with early results showing a production rate by natural flow of approximately 300 bopd of 28.0
degrees API, with a 7% water cut. Additional testing and production history will be required to determine stabilized flow
rates of the well.
This discovery derisks other delineated and adjacent light
oil prospects in the CN-V block for future drilling and will provide
GeoPark with a reserve, production and cash flow base in Ar-
gentina. GeoPark and its partner Wintershall are currently
evaluating subsequent activities in the CN-V block, including
a development plan for the Rio Grande Oeste oil field.
GeoPark acquired an interest in the CN-V block in 2015
through a partnership with Wintershall. The block is located in
the Mendoza Province and covers an area of 117,000 acres,
with 3D seismic coverage of 180 sq km next to the producing
Loma Alta Sur oil field operated by YPF. The 3D seismic survey
was acquired by Wintershall in 2015. The CN-V block also has
upside potential in the developing Vaca Muerta unconventional
play. Wintershall has the right to take over operatorship pursuant
to the terms and conditions of the farm-in agreement.
GeoPark’s total work program for 2017 in Argentina includes
7 gross wells ($5-$7 million total) expected to be drilled in
2H2017, targeting shallow heavy oil exploration prospects in
the Sierra del Nevado and Puelen blocks (Pluspetrol operated,
GeoPark with a 18% WI) in the Neuquen Basin. The Puelen
block is located north of the producing El Corcobo oil field,
operated by Pluspetrol, and Sierra del Nevado is located east
of the Llancanelo oil field, operated by YPF.
LEASE SALE 249 YIELDS MORE THAN
$121M IN HIGH BIDS
The Bureau of Ocean Energy Management (BOEM) has reported
that Lease Sale 249 garnered $121,143,055 in high bids for 90
tracts covering 508,096.16 acres in the Gulf of Mexico’s Western,
Central and Eastern planning areas.
Twenty-seven companies submitted 99 bids. The sum of all
bids totaled $137,006,181.
• Shell Offshore Inc. submitted 19 high bids totaling
$25,096,163. Its highest bid, $4,500,725, was for Keathley
Canyon block 214.
• Chevron USA Inc. submitted 15 high bids totaling $27,917,668.
Its highest bid, $5,683,116, was for Alaminos Canyon block
• Exxon Mobil Corp. submitted seven high bids totaling
$20,385,425. Its highest bid, $10,800,775, was for Mississippi
Canyon block 779.
• TOTAL E&P USA Inc. submitted six high bids totaling
$16,799,283. Its and the sale’s highest bid, $12,100,717, was
for Garden Banks block 1003.
• Anadarko US Offshore LLC submitted 10 high bids totaling
$10,601,373. Its highest bid, $3,801,680, was for Mississippi
Canyon block 40.
• Statoil Gulf of Mexico LLC submitted four high bids totaling
• LLOG Bluewater Holdings LLC submitted six high bids totaling $2,649,279.
• Apache Deepwater LLC submitted one high bid totaling
• BP Exploration & Production Inc. submitted three high bids