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IN WESTERN AUSTRALIA - Department of Mines and Petroleum

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will be reached in the fourth quarter <strong>of</strong> 2004. At<br />

that time, the Buffalo Venture FPSO will be released,<br />

the existing wellbores will be ab<strong>and</strong>oned, <strong>and</strong> the<br />

wellhead platform will be recovered <strong>and</strong> towed away<br />

for onshore salvage.<br />

The safety <strong>and</strong> environmental performance <strong>of</strong> the<br />

entire Buffalo operation has been outst<strong>and</strong>ing. There<br />

were no lost time incidents or reportable<br />

environmental incidents during the 97-day drilling<br />

programme in 2002, some <strong>of</strong> which involved<br />

simultaneous activities (drilling, production,<br />

<strong>of</strong>floading <strong>and</strong> construction). The operations were a<br />

complex sequence <strong>of</strong> activities executed under the<br />

simultaneous operations (SIMOPS) constraints<br />

developed specifically for Buffalo <strong>and</strong> included in<br />

the Safety Case documentation. The Ocean Heritage<br />

drilling rig was also new to Australia <strong>and</strong> therefore<br />

required the development <strong>of</strong> a st<strong>and</strong>-alone Safety<br />

Case by the drilling contractor (Diamond Offshore<br />

Drilling, Inc.), <strong>and</strong> Bridging <strong>and</strong> SIMOPS documents,<br />

which were developed by Nexen. The operations<br />

also demonstrated Nexen’s commitment to protect<br />

the environment through the successful use <strong>of</strong> drill<br />

cuttings re-injection sub-sea, when possible, <strong>and</strong><br />

the use <strong>of</strong> a water based sodium silicate drilling<br />

fluid that reduced the impact <strong>of</strong> the remaining<br />

drilling cuttings on the sensitive Big Bank<br />

environment.<br />

Further to this, the Buffalo Venture FPSO achieved<br />

four years without an LTI (Lost Time Incident) on 29<br />

December 2003. This outst<strong>and</strong>ing safety record,<br />

which commenced at the start <strong>of</strong> production from the<br />

field in December 1999, has continued into 2004.<br />

Roc Oil<br />

The Cliff Head field, discovered in 2001 by ROC,<br />

was successfully appraised with the drilling <strong>of</strong> two<br />

wells in January <strong>and</strong> March 2003. Cliff Head 3 was<br />

sidetracked to core <strong>and</strong> was production tested at a<br />

stabilised rate, constrained by surface facilities, <strong>of</strong><br />

477 kL (3000 bbl) <strong>of</strong> oil per day via an 11 mm<br />

(28/64”) choke <strong>and</strong> a down hole electrical<br />

submersible pump. The second appraisal well, Cliff<br />

Head 4, was drilled <strong>and</strong> also cored for reservoir<br />

information.<br />

The EP413 JV conducted an extended production<br />

test on Jingemia 1 (drilled in October 2002) over<br />

the period May to August 2003, to determine the<br />

commerciality <strong>of</strong> the oil discovery <strong>and</strong> development<br />

strategy. During the test, rates in excess <strong>of</strong> 286<br />

kL/d (1800 bbl/d) were recorded.<br />

Jingemia 2 <strong>and</strong> its sidetrack Jingemia 3 were<br />

successfully drilled in August to September 2003,<br />

primarily to provide water injection for the field. A<br />

second extended production test was underway on<br />

Jingemia 1 at year-end.<br />

Detailed engineering <strong>and</strong> design work for the Cliff<br />

Head oil development was undertaken in 2003, <strong>and</strong><br />

ROC established an <strong>of</strong>fice in Perth to manage the<br />

project. On 14 October 2003, the Joint Venture took<br />

a major step towards commercial production with a<br />

unanimous declaration <strong>of</strong> commerciality <strong>and</strong><br />

agreement to move forward to the Front End<br />

Engineering <strong>and</strong> Design review stage (FEED). The<br />

FEED contract was awarded to Worley Pty Ltd. The<br />

decision to proceed towards FEED was based on a<br />

proved <strong>and</strong> probable reserve estimate <strong>of</strong> 3.3 GL (21<br />

MMbbl) <strong>of</strong> recoverable oil.<br />

The cost <strong>of</strong> the development is yet to be<br />

determined, but it is expected to be in the order <strong>of</strong><br />

$140 million, with a final decision on the investment<br />

expected in 2004. An application for the declaration<br />

<strong>of</strong> a location <strong>of</strong> one block was made over the Cliff<br />

Head field on 19 December 2003.<br />

A location <strong>of</strong> one graticular block over the Jingemia<br />

oilfield in EP413 was gazetted in January 2003, <strong>and</strong><br />

in July 2003, the JV made an application for a<br />

production licence.<br />

Work continues on progressing the Cliff Head oilfield<br />

towards commercial production. Subject to<br />

satisfactory completion <strong>of</strong> FEED <strong>and</strong> receipt <strong>of</strong><br />

regulatory <strong>and</strong> JV approvals, it is anticipated that a<br />

final investment decision for the project will be<br />

made during the second quarter <strong>of</strong> 2004 <strong>and</strong> that<br />

first oil will be produced from Cliff Head during the<br />

second half <strong>of</strong> 2005.<br />

Woodside Energy<br />

Development Activities 2003<br />

WA-271-P<br />

Development <strong>of</strong> the Enfield oilfield has progressed<br />

according to plan in 2003 with the project<br />

commencing the Front End Engineering Phase in<br />

May 2003. Contractors for the FPSO Hull, EPCm<br />

<strong>and</strong> Turret & Mooring facilities have been awarded.<br />

Environmental approval for the development was<br />

given by the Commonwealth Minister for<br />

Environment <strong>and</strong> Heritage in July. The development<br />

is planned to come on stream in late 2006 <strong>and</strong> will<br />

accommodate future area tie-backs such as<br />

Laverda as ullage becomes available.<br />

Following the disappointing appraisal result <strong>of</strong><br />

Laverda 2 (drilled in December 2002), Woodside<br />

participated in the drilling <strong>of</strong> Skiddaw 1 in May<br />

2003 in WA-255-P to appraise the northern extent<br />

<strong>of</strong> the Laverda field. Gas <strong>and</strong> oil columns were<br />

penetrated in Skiddaw 2 (a sidetrack to Skiddaw 1).<br />

Feasibility studies with respect to future<br />

development <strong>of</strong> the technically challenging Vincent<br />

field are continuing.<br />

WA-279-P<br />

Development <strong>of</strong> the Blacktip gasfield progressed<br />

into the concept selection phase in March 2003. In<br />

June 2003, the Blacktip JV signed a Heads <strong>of</strong><br />

Agreement with Alcan for the supply <strong>of</strong> gas to<br />

underpin Alcan’s planned expansion <strong>of</strong> its Gove<br />

alumina production <strong>and</strong> bauxite mining facilities.<br />

PWA April Edition - 2003 Review 19<br />

First gas is currently scheduled for January 2007.<br />

Following a further review in December, the Blacktip<br />

development will commence Basis <strong>of</strong> Design (BOD)<br />

studies in January 2004.<br />

Production Activities 2003<br />

Laminaria <strong>and</strong> Corallina<br />

In November 1999, the Northern Endeavour FPSO<br />

commenced production from the Laminaria <strong>and</strong><br />

Corallina fields in production licence AC/L5 located<br />

in the Timor Sea.<br />

The Laminaria <strong>and</strong> Corallina reservoirs have<br />

performed above expectation. The onset <strong>and</strong> rate <strong>of</strong><br />

increase in water production <strong>and</strong> the associated<br />

decline in productivity has been broadly in-line with<br />

reservoir model predictions. Total produced oil to the<br />

North end Rankin <strong>of</strong> June A platform 2003 was (image 24.13 courtesy GL. <strong>of</strong> Woodside)<br />

Legendre<br />

Development studies carried out in Q4, 2002<br />

resulted in an infill drilling opportunity to develop the<br />

poorly swept southwestern flank <strong>of</strong> the Legendre<br />

North field. The infill well, Legendre North 4H was<br />

drilled in April 2003 using the Ensco 56 <strong>and</strong><br />

commenced production on 10 June 2003.<br />

The performance <strong>of</strong> the Ocean Legend has been<br />

good with an annual average production rate <strong>of</strong><br />

4370 kL/d, with almost all gas re-injected <strong>and</strong><br />

minimal flaring. The maximum rate achieved during<br />

2003 followed the drilling <strong>of</strong> Legendre North 4H <strong>and</strong><br />

optimisation <strong>of</strong> gas h<strong>and</strong>ling facilities. Cumulative<br />

total produced oil to end 2003 was 4.429 GL.<br />

North Rankin<br />

The North Rankin gasfield lies 23 km northeast <strong>of</strong><br />

the Goodwyn field <strong>and</strong> approximately 140 km<br />

<strong>of</strong>fshore from Karratha in approximately 125 m <strong>of</strong><br />

water. The field was discovered in 1971 when the<br />

NRX-01 well penetrated 565 m <strong>of</strong> gross<br />

hydrocarbon column in Triassic, fluvio-estuarine<br />

reservoir quality s<strong>and</strong>s. The trap is structural,<br />

comprising a large horst block complex in the main<br />

body <strong>of</strong> the field with a zone <strong>of</strong> westerly dipping<br />

fault blocks in the northwest part <strong>of</strong> the field.<br />

Reservoir units gently dip northwards <strong>and</strong> sub-crop<br />

sealing Cretaceous shales over the crest <strong>of</strong> the<br />

field. At the northern end <strong>of</strong> the field, the top <strong>of</strong> the<br />

North Rankin reservoir is defined by depositionally<br />

conformable Triassic to Early Jurassic shales.<br />

During 2003, the field produced 3.79 Gm 3 <strong>of</strong> raw<br />

gas <strong>and</strong> 429 ML <strong>of</strong> condensate. During 2003/04,<br />

the NRA life extension <strong>and</strong> North Rankin ‘B’ platform<br />

will be studied to determine an optimum<br />

development infrastructure <strong>and</strong> functionality <strong>of</strong> the<br />

assets.<br />

Perseus<br />

The Perseus gasfield is located approximately 135<br />

km northwest <strong>of</strong> Karratha in 131 m water depth.<br />

The field lies in a graben bounded by the North<br />

Rankin field to the east <strong>and</strong> the Goodwyn field to<br />

the west.

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