E&P Notes (September 2020)
Authors: Flowers Lynnmarie P. 
Published: September 2020

Petrobras Slices Time, Cost of Post-Salt Drilling
Lynnmarie P. Flowers, Technology Editor
Petrobras has cut in half the time and cost of drilling some wells using its patented True One Trip Ultra Slender (TOTUS) concept. The technique can be used in certain mature fields of the postsalt where geological and reservoir characteristics favor its application.
With TOTUS, the firm drilled a well in 44 days in early July, compared to the historic average of 96 days, resulting in a cost reduction of approximately 50% or $30 million.
The development of post-salt wells offshore Brazil has been a challenging project. Faced with water depths of 2000-plus m - and a salt layer 2000 m thick - to reach reservoirs at 7000 m below sea level, Petrobras had the need to use novel technological and procedural techniques.
Canada’s Oil Production Sinks to 2016 Levels
In the first half of 2020, Canada’s production declined 20% from its 2019 average of 5.5 million B/D as a result of low crude oil prices, reduced demand, and continued production curtailments imposed by the government of Alberta. Last year, when Canada was the world’s fourth-largest producer, the province accounted for more than 80% of its production.
Canada produced about the same amount of petroleum and other liquids in 2019 as it did in 2018, when western Canadian select crude oil was trading at historically low prices. The government of Alberta imposed production curtailments in early 2019 to reduce associated bitumen production and reduce inventories and growing constraints on export pipeline capacity. These restrictions were extended through the end of this year.
MOL Pakistan Discovers Gas and Condensate
As the operator of the TAL Block in Pakistan, MOL has made a new gas and condensate discovery at the Mamikhel South-1 exploratory well. This marks the company’s thirteenth discovery in Pakistan, its tenth in the TAL Block, and the second time in 3 months to discover hydrocarbon reserves. In March, MOL Norge discovered oil and gas in the North Sea.
MOL has made 13 oil, gas, and condensate discoveries in Pakistan since 2000 including over 400 million BOE hydrocarbon reserves. It is responsible for 89 million BOED gross production (as of Q1 2020) in the TAL Block, where it has an 8.4% share.
DTEK To Conduct Large-Scale Green Seismic Exploration
DTEK Oil & Gas this year will conduct a large-scale seismic survey using green technology on a gas-and-condensate field in Ukraine. The recording of seismic data in real time will allow DTEK to assess the quality of data logged during execution, increasing the quality of geophysical information recorded during the course of work.
The cordless “green seismic” technology is connected via wireless systems in lieu of cables, enabling the exploration of complex and previously inaccessible landscapes, shortening project-completion time, and reducing environmental impact. The technology does not require special heavy machinery for installation.
Supreme Court Ruling on Oklahoma Tribal Land Raises Questions for Oil Industry
A US Supreme Court decision recognizing about half of Oklahoma as Native American reservation land has implications for oil and gas development and raises regulatory and tax questions that could take years to settle.
On 9 July, the court overturned an Oklahoma tribe member’s criminal conviction - in the McGirt v. Oklahoma decision - because the crime was com-mitted on reservation land and therefore outside the reach of state criminal law.
CNOOC Starts Production From Luda Project
Exploration and production independent CNOOC has produced first oil from its Luda 21-2/16-3 regional development in the Bohai Sea, offshore China.
The project currently contains one central platform, three wellhead platforms, and one production platform. CNOOC expects to drill 69 development wells; peak production is expected to reach 25,600 B/D in 2022.
Situated about 25 miles north of the Luda 10-1 oil field and 55 miles northwest of the Suizhong 36-1 onshore terminal, the Liaodong Bay development is operating in an average water depth of 82 ft.
Cairn Sells Senegal Interest to Lukoil
Russia’s Lukoil will sell its entire 40% interest in the Rufisque, Sangomar, and Sangomar Deep (RSSD) contract area to Edinburgh oil and gas producer Cairn Energy for up to $400 million. Lukoil intends to return at least $250 million to shareholders as a special dividend after the sale.
The blocks of the project covering 2212 km2 are located on the deepwater shelf of the Republic of Senegal 80 km from the shore with the sea depth of 800-2175 m. The blocks include two discovered fields, Sangomar and FAN.
The cash consideration payable on completion is $300 million, and up to $100 million depending on the timing of first oil and the average Brent oil price in the first 6 months of production.