CGG Wins Data Processing Contract Offshore Brazil

Petrobras has chosen CGG to process seismic data from a 3-D ocean-bottom node (OBN) survey covering 2,180 sq km (842 sq miles) in Brazil’s deepwater Santos Basin, a news release said.

CGG said this survey will be the largest node survey ever acquired and processed in the industry.

The survey will be acquired by Seabed Geosolutions, CGG’s joint venture with Fugro. The dataset will be processed in CGG’s Rio de Janeiro Subsurface Imaging Center, the release said.

“CGG is a natural choice for this high-profile OBN processing contract given our in-depth geological knowledge of the Santos Basin and our recognized track record and proven advanced technologies for OBN processing,” CGG CEO Jean-Georges Malcor said. “OBN surveys are one option at present for acquiring full-azimuth data offshore Brazil, and we will work closely with Seabed Geosolutions to deliver the best images of the subsurface in the highly prospective Santos Basin.”

Brazil Publishes Contract Model For 14th Round Oil-rights Auction

On July 19 Brazil’s oil watchdog ANP published the model contract for its 14th round auction of oil and natural gas exploration rights scheduled for Sept. 27.

On offer are 287 blocks in the offshore basins of Sergipe-Alagoas, Espírito Santo, Campos, Santos, Pelotas and onshore basins in Parnaíba, Paraná, Potiguar, Recôncavo, Sergipe-Alagoas and Espírito Santo.

If all blocks are assigned, the government will earn a minimum of about $537 million.

ANP Director Decio Oddone said on July 18 he expects more bids this round thanks to a contract model that will be more attractive to investors.

Among the changes, the 14th round eliminates local content as criteria in the bidding process, heeding a long-standing demand of oil majors, and introduces lowers royalties for less explored areas and mature basins, which pose greater risks.

Statoil Says Norwegian Arctic Gas Find Disappoints

Statoil made a smaller-than-expected gas find in the Barents Sea near its Snoehvit gas field, the company said July 17.

The find at the Blaamann well is estimated to hold up to 3 billion standard cubic meters of recoverable gas. No oil was found.

“We were exploring for oil and this is not the result we were hoping for,” Jez Averty, Statoil’s head for exploration in Norway and Britain, said in the statement.

Statoil has a 50% stake in the license, called PL 849, with partners Eni (30%) and Norway’s Petoro (20%).

Statoil will exploit the gas via existing infrastructure for the Snoehvit Field.

Suriname Signs Offshore Oil Deals With ExxonMobil, Hess, Statoil

Suriname’s state oil company Staatsolie said it signed production-sharing contracts involving ExxonMobil Corp., Hess Corp. and Statoil ASA for two blocks off the coast of the South American nation.

The 30-year E&P agreements involve the areas known as Block 59, to be developed by a consortium consisting of ExxonMobil and Hess, and Block 60, to be developed by Statoil.

The area off the shoulder of South America has generated interest from oil companies after Hess and ExxonMobil discovered crude off the coast of nearby Guyana.

Hess and Statoil already own stakes in Suriname oil projects.

Staatsolie will be able to take up to a 10% stake during the development and production phases.

Staatsolie has said 2016 was one of the most difficult years in its 36-year history due to low oil prices, though the company managed to reach a gross profit of $13 million.

UK Offers 12 Licenses For Offshore Acreage

The UK’s Oil and Gas Authority (OGA) has offered 12 licenses to 11 operators under the 2016 Supplementary Offshore Licensing Round.

Originally, 14 blocks were offered in the round, which was launched in response to industry nominations of areas outside of those covered by the 2016 frontier 29th Licensing Round. Bidding closed in March 2017.

The blocks on offer have locations across the U.K. Continental Shelf from the southern North Sea to East of Shetland.

“The round offered blocks under flexible terms, enabling applicants to define a license duration and phasing that will allow them to execute their optimal work program,” the OGA said.

The OGA received 15 applications covering 11 blocks. The OGA said it is ready to offer 12 licenses covering these 11 blocks.

—Staff Reports