Anadarko plans to drill up to 25 deepwater wells in 2014

Anadarko Petroleum is planning to drill up to 25 deepwater wells in 2014, the company’s chairman, president and CEO has said. The comment came as the company revealed its 2014 capital expectations and guidance.

“We expect this capital plan to enable us to increase year-over-year ' same-store' sales volumes by 6 to 7 percent. Driving this year-over-year growth is an expected increase in our oil production of approximately 40,000 barrels per day,” said Al Walker.

"During 2014, Anadarko expects to drill up to 25 high-potential deepwater exploration/appraisal wells. Additionally, we plan to continue accelerating value through active portfolio management and monetizations, as demonstrated by the recently announced divestiture of our non-operated assets in Bohai Bay, China, and the closing of our sale of a 10-percent working interest in Mozambique' s Offshore Area 1 to OVL."

Total 2014 capital investments are expected to be $8.1 to $8.5 billion, excluding capital investments associated with Western Gas Partners, LP, a separate publicly-traded entity controlled by Anadarko and included in its consolidated financial statements.

More than 80 percent of Anadarko' s 2014 U.S. onshore capital investments will be allocated toward oil and liquids-rich opportunities. The company expects to increase its total U.S. onshore year-over-year same-store sales volumes by more than 10 percent to more than 625,000 boe per day for full-year 2014, including an approximate 50,000 barrels-per-day increase in liquids volumes. Much of this growth is expected to be driven by the company' s Wattenberg Horizontal program in Colorado, its Eagle Ford shale development in South Texas, and other liquids-rich growth plays, including the Wolfcamp shale in West Texas and the East Texas/North Louisiana area.

The Wattenberg Horizontal program generates the strongest returns in Anadarko' s U.S. onshore portfolio and is expected to achieve significant growth in 2014. The company plans to operate approximately 13 rigs in the Wattenberg field during the year and drill more than 360 wells.

Anadarko also is accelerating its operated activity in the Wolfcamp oil play where it has evaluated about 20 percent of its approximate 600,000-gross-acre position. The company has already identified more than 1,000 drilling locations in this de-risked area of the Wolfcamp, with significant additional upside as it evaluates the remaining acreage and potential stacked-pay intervals. In 2014, the company expects to operate eight to 10 rigs, with plans to drill more than 80 wells.

In the Gulf of Mexico, Anadarko is on schedule to achieve first oil from its 80,000 barrels-of-oil-per-day Lucius development late in the second half of 2014. The company' s Heidelberg development also remains on track, with spar construction more than 75-percent complete and first oil expected in 2016.

Anadarko' s 2014 deepwater Gulf of Mexico exploration/appraisal program is focused on building upon the tremendous success achieved in the Shenandoah basin in 2013, which is emerging as one of the largest oil accumulations ever discovered in the Gulf. Appraisal activity at the Coronado, Yucatan and Shenandoah discoveries in the Shenandoah basin highlights the company' s six-to-eight-well Gulf program in 2014.

In 2014, Anadarko expects to realize a full-year' s benefit of oil production from the El Merk project in Algeria. El Merk, which recently achieved net production of more than 30,000 barrels per day, is expected to contribute to at least a 30-percent year-over-year increase in sales volumes from Algeria during 2014.

In Ghana, Anadarko and its partners have awarded major contracts and are advancing development of the TEN complex, which is expected to achieve first oil in 2016. In Mozambique, the company' s 2013 appraisal and exploration activities increased its estimated recoverable natural gas resources to a range of 45 to 70-plus Tcf in Offshore Area 1, up from the previous range of 35 to 65-plus Tcf. The company' s 2014 program in Mozambique is focused on advancing the development toward first LNG cargoes in 2018.

The company' s international exploration/appraisal program includes 15 to 18 planned deepwater wells, primarily in East and West Africa.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By O'Niel Petroserve Nigeria Ltd, online.

Capstone receives microturbine orders from Horizon Power Systems

Capstone Turbine Corporation, a clean technology manufacturer of microturbine energy systems, announced that it has received orders for 50 Capstone C65 microturbines for oil and gas production in the U.S.

Horizon Power Systems, Capstone' s exclusive oil and gas distributor for the Eagle Ford, Permian, San Juan and Wattenberg shale plays, secured the orders. The orders will bring the total fleet to more than 550 microturbines in operation in Horizon' s area of responsibility, and will serve various stages of oil and gas production, including powering central processing stations, well-head operations and flare reduction.

Capstone manufactures low-emission, durable and highly efficient microturbines for around-the-clock production and optimized wellsite performance.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By O'Niel Petroserve Nigeria Ltd, online.

Spain expands constitutional challenge to allow fracing

Spain’s government will seek to overturn a ban on fracing in the wine-making region of La Rioja, relying in part on the European Union’s January guidelines for the drilling technique.

The cabinet voted today to file a constitutional challenge to La Rioja’s prohibition on the water-intensive method used to explore for oil and gas. The ban wrongly strips authority from the national government to regulate prospecting and runs contrary to Spanish law and preliminary EU rules that endorse fracing, the cabinet said in a statement.

The decision widens a policy to wrest control from regional governments over fracing. The cabinet this year voted to appeal a similar ban on fracing in Cantabria, a region that like La Rioja is in the north and is relatively rich in water resources.

The move today is a “logical step” given that Spain had previously acted against Cantabria, Juan Klimowitz, co-owner and general manager of exploration consulting firm Gessal in Madrid, said today in an interview. “It makes sense since the regions went outside the national law that covers hydrocarbon exploration.”

The central government began requiring environmental impact assessments on all fracing projects last year before deciding on permits for those that passed. It says allowing environmentally safe prospecting is necessary in a country dependent on oil and gas imports.

Wine has been cultivated for more than 1,000 years in La Rioja, which is home today to more than 500 vineyards including Marques de Riscal SA and Ramon Bilbao SA.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By O'Niel Petroserve Nigeria Ltd, online.

Petrofac awarded $1.2 billion Khazzan gas processing project in Sultanate of Oman

Petrofac, the international oil and gas services provider, has been awarded a contract by BP, worth approximately $1.2 billion, for the central processing facility (CPF) for the Khazzan gas project in the Oman sultanate.

The scope of work will include engineering, procurement and construction (EPC) of the central processing facility (CPF) at the Khazzan field.  The CPF will include two process trains, each having a capacity of 525 MMcfgd.  The project also includes an associated condensate processing system, power generation plant, water treatment system and all associated utilities and infrastructure.  The project is expected to be completed in 2017.

Subramanian Sarma, Managing Director of Petrofac' s Onshore Engineering & Construction business, commented:  “Petrofac has executed a large number of projects for BP across many aspects of our business and we are delighted to be supporting them on this pioneering project at Khazzan, the largest new upstream project in Oman."

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By O'Niel Petroserve Nigeria Ltd, online.

Schlumberger launches degradable alloy technology to optimize well productivity

Schlumberger has introduced the ELEMENTAL degradable alloy balls for multistage stimulation treatments. The technology demonstrates predictable, complete degradation of the alloy balls, ensuring maximum well productivity.

The alloy balls degrade predictably in a wide range of downhole conditions, well depths, temperatures, pressures and well fluids. Controlled degradation takes place, without the need for chemical additives, low pH environment, retrieval operations or milling after fracturing.

The ELEMENTAL degradable alloy technology can be used with Schlumberger multistage stimulation systems. The technology has been deployed with the Falcon multistage stimulation system for uncemented wells in formations representing a significant challenge to degradation times, such as Gold Creek, Slave Point, Glauconite, Cardium, Montney and Lower Montney, with bottomhole temperatures as low as 86°F. The technology has also been used in the Bakken, where formation temperatures are around 260°F.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By O'Niel Petroserve Nigeria Ltd, online.