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BP today provided an update on developments in the response to the MC252 oil well incident in the Gulf of Mexico.
Subsea Source Control and Containment Following approval from the National Incident Commander, BP this past weekend began replacing the existing lower marine riser package (LMRP) containment cap over the Deepwater Horizon's failed blow-out preventer with a new sealing cap assembly.

Installation of the sealing cap is proceeding as planned. The Discoverer Enterprise removed the LMRP cap at approximately 12:40 PM CDT on Saturday, July 10. Initial steps included the removal of six bolts along with the LMRP's flange. A transition spool was subsequently installed on the existing flange. The next step is to install a capping stack that has three closing rams.

The Q4000 containment system continues to capture oil and gas from the MC252 well and flare the hydrocarbons safely at the surface.

The Helix Producer containment system is being commissioned to begin the collection of additional oil and gas, prior to ramping up containment operations.

On July 10, a total of approximately 15,200 barrels of oil were collected or flared and 35.2 million cubic feet of gas were flared. Specifically, the LMRP containment system connected to the Discoverer Enterprise collected 7,096 barrels of oil, and the Q4000 flared an additional 8,100 barrels of oil. With the removal of the LMRP cap, oil recovered from the Discoverer Enterprise was lower on July 10 and recovery from the Discoverer Enterprise has since been discontinued.

As of July 10, the total volume of oil collected or flared by the containment systems is approximately 749,100 barrels.

Work on the first relief well, which started May 2, continues. The well reached a measured depth of 17,810 feet on July 11 and a tenth 'ranging' run was completed. Following the running and cementing of the 9 7/8-inch casing and further ranging runs, the relief well is intended to intercept the original well at approximately 18,000 feet. Operations will then begin to kill the flow of oil and gas from the reservoir by pumping specialised heavy fluids down the relief well. The second relief well, which started May 16, is just below 16,000 feet and preparing to cement casing. Although uncertainty still exists, the first half of August remains the current estimate of the most likely date by which the first relief well will be completed and kill operations performed.

Egypt adds to oil stash

The state Egyptian General Petroleum Corporation (EGPC) has found 65 million barrels of oil offshore in the Gulf of Suez, the Ministry of Petroleum said today.

Two wells drilled in a field in the Gulf's Amer region were producing about 2000 barrels per day, but production could increase to as much as 10,000 barrels per day by the end of the first drilling stage, the ministry said on its website.

Egypt's proven reserves of oil and oil condensates are about 4.4 billion barrels, while its proven reserves of natural gas are about 77.2 trillion cubic feet in the 2008-2009 fiscal year, it said on the website.

 

Kuwait looks to boost output

State-run Kuwait Oil Company (KOC) chief executive, Sami Rushaid said the country will raise production from its northern oilfields to 820,000 barrels per day by the end of July.

Rushaid told told the Seyassah daily that current production from the fields stood at 720,000 bpd.
Kuwait's total production capacity is expected to reach 3.3 million bpd in August, Rushaid said, reiterating the country's current capacity was at 3.17 million bpd.
The world's fourth-largest oil exporter is aiming to reach a capacity of 4 million bpd in 2020.
Kuwait's output is constrained under Opec agreements to 2.22 million bpd currently, Reuters said.
Rushaid said KOC was planning to produce 60,000 bpd of heavy oil by 2015 and that the country's new refinery would be designed to process heavy oil, which is mainly found in the northern oilfields and an area shared with Saudi Arabia.
The $15 billion refinery, which will be Kuwait's fourth, is expected to receive the green light from Kuwait's highest oil policy body before the end of the year.
Another KOC official, Hashem Hashem, told the Jarida daily that the company was working on a plan to increase production from the Wara reservoir, by 80,000 bpd to reach 350,000 bpd by 2014.
Hashem, who heads operations in southern and eastern Kuwait, said Kuwait's largest oilfield, the Greater Burgan, was capable of pumping oil for the next 60 years. The oilfield is the second-largest in the world.
He confirmed reports that the oilfield was bigger than past estimates but declined to elaborate, saying the results of studies would be announced in due time.

Blackbird sings for Nexen

Canadian player Nexen has struck oil in an appraisal well drilled on its Blackbird oilfield in the UK Central North Sea.

The 20/2a-9 appraisal well intercepted about 75 feet of good quality oil sands in 330 vertical feet of gross oil bearing section, project partner, Dana Petroleum said.
The well will be test flowed before being suspended for future tie-back to the Ettrick floating production, storage and offloading vessel.
Nexen operates Blackbird with a 79.73% stake. Dana Petroleum owns 12% in the field after buying out Bow Valley Energy. Atlantic Petroleum holds the remaining interest.

 

 

Foreign players line up for Mozambique

Foreign companies including South Africa's Sasol petrochemicals group are bidding for licenses to exploit oil and gas fields across Mozambique, the National Petroleum Institute said.

INP said in a statement it had closed the fourth tender for the concession of areas for exploration and production of hydrocarbons in various regions of the country, with six companies showing interest to bid.
Currently around a dozen multinational oil companies are involved in research activities and exploration for hydrocarbons in Mozambique.