Exploration And Production Co News

The U.S. Department of the Interior’s Minerals Management Service recent central Gulf of Mexico lease sale received 1,428 bids on 723 tracts, attracting $2.9 billion in high bids – the second highest total in U.S. leasing history. Secretary of the Interior Dirk Kempthorne, who officially opened the sale, said the bids made a statement concerning the future of the Gulf of Mexico. “This historic sale emphasizes the Gulf’s strategic value for America’s energy security and the significant economic benefits of environmentally safe oil and gas production for the nation and the Gulf states,” Kempthorne said. The Gulf accounts for about a quarter of domestically produced oil and 15 percent of domestically produced natural gas in the nation.

Fifteen offshore energy companies have been named national finalists for the Department of the Interior’s 2006 Safety Awards for Excellence (SAFE) competition. Sponsored by the Minerals Management Service (MMS), the SAFE awards are presented annually to Outer Continental Shelf (OCS) oil and gas operators and contractors who achieve excellence in safety and pollution prevention. Established in 1983, the SAFE Awards recognize and honor companies making concerted efforts to train and motivate their employees to conduct offshore operations in a safe and environmentally responsible manner. The SAFE Award is presented annually to offshore…

Chevron Corporation said that Raymond I. Wilcox, president of Chevron North America Exploration and Production Co., will retire from the company on March 31, 2006, to become president and chief executive officer of Chevron Phillips Chemical Company LLC, a company owned equally by Chevron and ConocoPhillips. Wilcox will be succeeded by Gary P. Luquette, currently managing director of the European strategic business unit of Chevron International Exploration and Production Co., effective April 1, 2006.

Owner Shell Nigeria Exploration and Production Co. Samsung's latest technological innovation is the successful completion and delivery of an 2,000,000 bbls FPSO, Bonga, built for the Shell Nigeria Exploration and Production Company, SNEPCO in June 2002. The vessel, which is a double hull type floating oil production, storage, and offloading unit (FPSO), will be permanently spread moored in Bonga field located offshore Nigeria in water depth ranging from 1,000 to 1,125 m. The Machinery space will be located underneath the accommodation spaces. The double bottom in way of machinery spaces is used as sludge and oily water drain tanks.

Exxon Mobil Corp. made a major oil and gas discovery in the deepwater off the coast of Nigeria. Located about 100 miles southeast of Lagos, the discovery well, Erha-1, was drilled from December 1998 to February 1999. Exxon Mobil said the appraisal well, Erha-2, stood in 3,860 feet of water and was drilled to a total depth of 12,287 feet. It tested at a flow rate of 2,800 barrels per day. As operator, Exxon will hold a 56.25 percent participating interest and Shell Nigeria Exploration and Production Co., a unit of the Royal Dutch/Shell Group, will a hold 43.75 percent stake. Including the Erha find, Exxon Mobil holds an interest in 44 deepwater blocks in West Africa.

Noble Drilling said its fourth successful EVA-4000 semisubmersible conversion, Noble Amos Runner, began drilling in the Gulf of Mexicofor its contractors - Kerr-McGee Corp., Marathon Oil and Murphy Exploration and Production Co. The semi, capable of drilling in water depths of 6,600 ft., underwent mooring sea trials before it began its five-year drilling project in the Gulf. Noble Drilling, also announced its second conversion, Noble Paul Wolff, drilled a well for Petroleo Brasiliero S.A. (Petrobas) in 8,017 ft. of water, reportedly setting a new world record. Noble Paul Wolff, capable of drilling in 8,900 ft. of water, is currently under a six-year Petrobas contract.

Although this has been considered an off year in the Gulf of Mexico from rig count and fleet utilization standpoints, it is another record year for major offshore operators expanding their fleets and the shipyards that are building these vessels. Last year, over 50 supply boats were delivered and about an equal number of crew/supply vessels made their way into the fleets of operators. This year looks equally robust as vessels are being ordered in quantities of four, six and even 10. This begs the question as to why offshore vessel operators are order record number of vessels if the business is sluggish? The answer is two fold: Deep water and deep gas. Drilling activity is bound to increase based on these two factors industry leaders believe.