-----Deal Reached on Gabon Offshore Rig

VAALCO Energy has reached an accord with Transocean on the remaining contract term for the Constellation II rig, employed for a recent drilling program offshore Gabon.

The agreement provides for payment of $5.1 million net to VAALCO’s interest for unused rig days under the contract. This amount, plus demobilization charges, will be paid in seven monthly installments.

Last month, the electrical submersible pumps (ESPs) in the South Tchibala 2-H well failed - the well, which had been producing 1,700 b/d of oil, has since been shut-in.

VAALCO aims to deploy a hydraulic workover unit (at lower cost than a jackup) to move onto the Avouma platform and replace the ESPs in the well, which should be back on production by early 4Q.

CEO Steve Guidry said: “Thus far in 2016, we have experienced very high production uptime along with more shallow declines from new wells placed on production in the last 12 months.

“The shut-in of the South Tchibala 2-H well is expected to be only a short-term temporary disruption, therefore we don’t see a need to change our current annual production guidance of 3,700-4,500 boe/d at this time.”

2-----Geotechnical Investigation in India

Fugro will begin a major program of geotechnical investigations under a contract awarded by ONGC.

Valued at about $26 million, the contract involves site investigation work to gather geotechnical and geohazard data at the field, which is located in the KG-DWN-98/2 block off the east coast of India. The information will support the design and subsequent installation of wellheads, manifolds, platforms, FPSO anchors, umbilicals, pipelines, and flowlines.

Fugro will deploy its deepwater geotechnical vessel Fugro Voyager, which will perform the work in water depths ranging from 50 to 1,500 m (164 to 4,921 ft). The fieldwork will be followed by extensive laboratory testing, data analysis, interpretation, and integration with other data acquired by Fugro.

For ONGC’s site characterization reports, Fugro said it will integrate the geotechnical and geohazard data from this project with metocean data and AUV geophysical survey data it had acquired previously at this field.

The work is due to begin before the end of 3Q.

3----Australia Subsea Pipeline to Be Upgraded

Hydratight has completed an upgrade project on the John Brookes subsea pipeline on the North West Shelf of Western Australia.

Contracted by Quadrant Energy Pty Ltd. on behalf of the John Brookes joint venture, Hydratight engineered, manufactured, delivered, and supported the installation of an 18-in. MORGRIP connector on the John Brookes subsea pipeline is located 54 km (34 mi) northeast of Quadrant’s Varanus Island facilities.

Hydratight engineers Mark Fisher and Bob Till were embedded in the offshore installation team.

“This was an exciting project to be part of strict safety and environmental expectations in place,” explained Fisher. “These included working closely with a DNV inspector who flew in from Singapore to witness all aspects of the upgrade.  It also meant an independent critique of our manufacturing procedures.

“The component parts were of extremely high specifications and we had strict rules on forging and manufacturing. These included the use of a compliant biodegradable mineral hydraulic fluid used for activating the tensioners and flushing and cleansing all tooling. We ensured no other unassessed hydraulic fluid was used.”

A representative from Quadrant Energy oversaw the factory acceptance test of the completed connector in the UK, before witnessing a second test and diver training on arrival in Australia.  

Bespoke features were included on the engineered product including corrosion resistant alloy cladding, composite graphite seals, the company’s ball and taper technology and its subsea tensioning equipment.

4---Sea Trucks to Install Pipelines in Argentina

Enap Sipetrol Argentina has contracted Sea Trucks for pipelay construction for the PIAM project on the Magallanes field offshore Argentina.

The work scope covers engineering, project management, and installation of three pipelines in diameters from 6 to 14 inch.

It also includes one shore approach, installation of tie-in spools and risers, abandonment of two existing lines and recovery of flexibles. Water depths in the field are up to 70 m (229 ft).

Sea Trucks’ DP-3 vessel Jascon 34 will perform the pipelay and provide accommodation under a separate contract. Offshore activities are due to start in 4Q.

5-----NPD Approves BP’s Tambar Facility Extension

The Norwegian Petroleum Directorate has given BP the green light to extend the Tambar field facility until Jan. 1, 2022, which coincides with the expiry of production license 065.

The lifetime was set at 15 years in the field’s plan for development and operation, which ends on July 15.

The Tambar oil field is located in the southern part of the Norwegian North Sea, about 16 km (10 mi) southeast of the Ula field. The field was developed with a remote-controlled wellhead facility without process equipment.

The field is produced with depressurization. Natural gas expansion combined with pressure support from water drive is the most important drive mechanisms.

The oil is transported to Ula via pipeline. Following processing, the oil is exported by pipeline to Teesside in the UK via Ekofisk, while the gas is injected in the Ula reservoir to increase oil recovery.

BP Norge AS is the operator of production license 065, with an ownership interest of 55%. DONG E&P Norge AS holds the remaining 45%.