E&P Highlights: June 23, 2025

Norway-based TGS has completed a survey covering nearly 50 Outer Continental Shelf (OCS) blocks, including in the Mississippi Canyon and Ewing Bank areas, in the Gulf of America, the company said June 20.

The Amendment Phase 4 ultra-long offset ocean bottom node (OBN) survey is intended to provide insight via high-fidelity seismic data for companies preparing for upcoming offshore leasing rounds.

TGS said the survey marked the first deployment of its Gemini enhanced-frequency seismic source in an ultra-long offset acquisition setting in the Gulf. The technology “delivers a unique low-frequency, omnidirectional signal that, combined with advanced processing techniques, significantly improves illumination beneath complex salt bodies,” TGS said in a news release.

The Amendment 4 early-out product will be available in third-quarter 2025, with final data delivery expected in second-quarter 2026.

Undiscovered fields in the Gulf could hold technically recoverable resources of 29.59 Bbbl of oil and 54.84 Tcf of gas, according to estimates from the U.S. Bureau of Ocean Energy Management (BOEM).

Earlier this year, the Interior Department said BOEM published a proposed notice of sale in June for the next scheduled oil and gas lease sale in the Gulf. The current lease sale program includes three Gulf sales: one each in 2025, 2027 and 2029.

TGS also announced the start of the Laconia Phase III OBN survey in the Gulf across 150 OCS blocks. Working with Viridien, formerly CGG, TGS said data will be acquired by a low-frequency broadband marine seismic source called Sercel Tuned Pulse Source. The technology aims to enhance geophysical imaging clarity with low-frequency, deep-penetrating sound energy. Focus is on the central Keathley Canyon area. 

“This acreage is anticipated to be highly sought after in future lease sales for those companies targeting the Paleogene play, which is increasingly attractive following recent success in industry implementation of 20k technologies,” TGS said.

Acquisition started in May and continues through third-quarter 2025. Delivery of initial products is scheduled for first-quarter 2026.

Exploration

ConocoPhillips Appraisal Well Confirms Oil Find in Norwegian Sea

ConocoPhillips Skandinavia has confirmed the Slagugle oil discovery in the Norwegian Sea, with an appraisal well encountering several oil columns, the Norwegian Offshore Directorate (NOD) said June 19.

Drilled by the Deepsea Yantai drilling facility, the well’s objective was to delineate the oil discovery made in 2020 and conduct a formation test to better understand reservoir properties and connectivity in the hydrocarbon-bearing layers. NOD said an attempt was made in 2022 to delineate the discovery with a well, but it was dry.

The latest well, appraisal well 6507/5-12 S, encountered several oil columns in a 188-m interval in the Åre Formation and Grey Beds. The interval included 75 m of sandstone with “very good reservoir properties,” NOD said. It was drilled to a measured depth of 2,260 m with a water depth of 341 m. The maximum production rate was 650 sq m of oil per flow day through a 36/64-inch nozzle opening.

Next steps by the licensees include analyzing the data collected and evaluating a possible development. Preliminary estimates indicate Slagugle may hold between an estimated 30.8 MMboe to 61.6 MMboe in Triassic reservoir rocks, according to the release.

Field development

Equinor: Johan Castberg Hits Peak Production

The Equinor-operated Johan Castberg FPSO in the Barents Sea reached peak production capacity of 220,000 bbl/d about three months after going online, the company said June 20.

The milestone increased energy deliveries from the Barents Sea by 150%.

So far, 17 of the development’s 30 wells have been completed, Equinor said in a news release.

“The Johan Castberg volume base initially estimated at 450-650 million barrels, our ambition is to increase the reserves by between 250-550 million barrels,” said Kjetil Hove, Equinor's executive vice president for E&P Norway. “We are already planning six new wells to extend plateau production.”

Hove added the Isflak project will be a rapid field development, with an investment decision anticipated by year’s end and startup in 2028. Having matured exploration targets, the company also plans to drill one or two exploration wells annually near Johan Castberg.

SBM Offshore Signs O&M Contract for FPSO Offshore Suriname

SBM Offshore announced it has signed an operations and maintenance contract with a TotalEnergies affiliate in Suriname for the FPSO GranMorgu as part of the field development project located in Block 58 in Suriname.

The contract covers the operation readiness phase before first oil, then services for at least two years after first oil with extension options.

The contract makes SBM Offshore the first FPSO operator in Suriname.

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Technology

SLB, Cactus Drilling Expand Digital Partnership

Private drilling contractor Cactus Drilling has partnered with SLB to scale adoption of automated and autonomous drilling solutions, the global energy tech company said June 23.

Cactus, which already utilizes SLB’s Precise automated drilling control systems, will integrate SLB’s automated controls platform and software suite as part of the agreement. Together, the technologies aim to improve drilling efficiency, increase equipment utilization and provide real-time data insights for better execution, SLB said in a news release.

“The expanded partnership with SLB allows us to offer our customers the benefits of leading-edge automation and control technology and leaves us well-positioned to deliver even greater value by strengthening the safety, precision and consistency of our drilling operations,” said Josh Simons, president and CEO of Cactus Drilling.

An AI-powered drilling automation and advisory solution and technology that supports self-learning, autonomous directional drilling and geosteering capabilities will also be deployed under the agreement.

Miros Introduces Oil Spill Detection System with Cloud-Based Monitoring

Environmental monitoring provider Miros has added cloud-based monitoring capabilities to its Oil Spill Detection (OSD) system technology.

Working with Belga Marine, the company on June 18 said the updated version of the new system was deployed across multiple production assets of a major Brazilian energy company. “The new cloud-based solution aligns with rigorous national guidelines, ensuring the integrity and security of OSD alarms and monitoring,” said Miros CEO Marius Five Aarset. “By creating a secure end-to-end pathway for unbiased reporting, the system delivers unparalleled transparency and reliability in environmental operations.”

The monitoring system is powered by the Miros Cloud IoT platform.

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Policy, Regulations

Serbia’s NIS Oil Company Seeks Fourth Sanctions Waiver from US

(Reuters) Russian-owned Serbian oil company NIS has asked the U.S. for a fourth waiver from sanctions which could cut its crude supply, it said June 20.

NIS, which is majority-owned by Russia’s Gazprom Neft and Gazprom, operates Serbia’s only oil refinery. The facility has an annual capacity of 4.8 million tons and covers most of the Balkan country’s needs.

The U.S. Treasury’s Office of Foreign Assets Control initially placed sanctions on Russia’s oil sector on Jan. 10, and gave Gazprom Neft 45 days to exit ownership of NIS.

NIS has so far secured three waivers, with the third one set to expire on June 27.

On March 14, NIS submitted a request to the U.S. Treasury Department for its removal from the sanctions list, it said.

“Despite the complex environment in which the company operates, NIS continues with regular supply of the domestic market with all kinds of oil derivatives, and remains devoted to maintaining social stability of its employees,” the company said in a statement on its website.

On Feb. 26, Gazprom Neft transferred a stake of around 5.15% in NIS to Gazprom in an attempt to ward off sanctions.

Gazprom Neft owns 44.85% of NIS, while Gazprom has 11.3%. The Serbian government owns 29.87%, with small shareholders accounting for the rest.

NIS imports about 80% of its oil needs through Croatia’s pipeline operator Janaf. The remainder is covered by its own crude oil production in Serbia.

UK Issues Tougher Environmental Rules for New North Sea Oil, Gas Drilling

(Reuters) Britain has issued tougher new environmental rules for fossil fuel projects with implications for the development of two vast North Sea oil and gas fields by Shell and Equinor.

U.S. President Donald Trump has called on the U.K. to speed up rather than slow down projects in the North Sea while overseeing a softening of green requirements in the U.S.

Approval for new projects must now consider the environmental impact of emissions from using or burning the fuels extracted, the U.K.’s Department for Energy Security and Net Zero announced June 19. These so-called downstream, or Scope 3, emissions, were not previously part of the consenting process. This “will ensure the full effects of fossil fuel extraction on the environment are recognized in consenting decisions,” the department said.

In January, a Scottish court had ruled that approval of two North Sea projects—Shell’s Jackdaw and Rosebank involving Equinor and Ithaca Energy—as unlawful and must be retaken. The firms had awaited the new guidance to reapply for approval.

Shell is reviewing the guidance and remains committed to delivering the Jackdaw project, a spokesperson said.

Equinor and Ithaca Energy also said they remained focused on advancing the Rosebank project. Equinor said it would submit an assessment under the new guidance.

Britain has a target to reach net zero emissions by 2050. The Labour government last year said it would not issue any new oil and gas licenses but would not revoke those granted by the previous government.

Energy Minister Ed Miliband will have to decide whether the projects are compatible with the new guidance and the U.K.'s climate targets. He is expected to take a final decision in the autumn at the earliest.

Miliband has frequently spoken of the country’s need to reduce its reliance on fossil fuels to drive down costs and improve energy security but has also said oil and gas will play a role in the country’s economy for many years to come.

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Hart Energy Staff and Reuters contributed to this report.