Page 10 - Euroil Week 39 2019

EurOil PROJECTS & COMPANIES EurOil
Valeura reports third tight gas test flow in Turkey
TURKEY
Valeura currently produces only conventional gas in Turkey.
LONDON-LISTED Valeura Energy and Nor- way’s Equinor are progressing further with their efforts to prove commerciality at a tight gas for- mation in western Turkey.
The pair have successfully flowed gas during the test of a third stimulated zone at the Inanli-1 appraisal well in the onshore Thrace Basin, Valeura said on September 26. The zone was tar- geted at two intervals with depths of 3,855-3,876 and 3,899-3,925 metres respectively, it said. The intervals were stimulated using a total of 130 tonnes of proppant.
Inanli-1 was test-flowed for 10 days at an average rate of 442,000 cubic feet (12,500 cubic metres) per day, according to Valeura. The flow stabilised at just under 7,000 cubic metres in the final day of testing. Tests were carried out at first and second stimulated zones at Inanli-1 this summer, achieving average flow rates of 18,200 and 5,250 cubic metres per day respectively. Gas in the third zone was richer in condensate than in the deeper ones previously tested, Valeura said.
The partners are now preparing to flow gas
from a fourth zone, with tests set to continue until the fourth quarter, fully funded by Equinor. Their goal is to demonstrate the commercial value of what Valeura estimates to be a 286bn cubic metre unrisked tight gas resource, net to itself.
Valeura currently produces only conven- tional gas in Turkey. Its output fell 5% year on year in the second quarter to 700 barrels of oil equivalent per day (boepd), owing to natural decline.
The Toronto-listed company’s operating income was up 20% at C$1.8 ($1.36mn), as out- put losses were offset by a 15% rise in the price at which it sells gas to state-owned Botas. It nev- ertheless booked a heavier loss from operations of C$2.15mn, because of a spike in development costs.
Turkey produces hardly any oil and gas, rely- ing on imports from Azerbaijan, Iran, Russia and LNG suppliers to meet demand. Valeura and others have sought to develop gas projects in the country, however, attracted by high domestic prices. ™
Var Energi awards engineering contract at Balder X
NORWAY
Balder X is focused on redeveloping the Balder and Ringhorne fields.
VAR Energi, the Norwegian arm of Italy’s Eni, has awarded a contract for engineering, pro- curement, construction and installation (EPCI) of subsea systems and associated services at the Balder X oil project in the North Sea.
The contract was handed to US group Baker Hughes and Norwegian player Ocean Installer. The pair’s work will cover 15 new subsea pro- duction systems, umbilicals, risers and flowlines to the Jotun A floating production storage and offloading (FPSO) unit. They will also undertake decommissioning work.
Balder X is focused on redeveloping the Balder and Ringhorne fields in the Norwegian North Sea. The $1.7bn project aims to extend the fields’ pro- duction lives and recover an extra 170mn barrels of crude. It involves the refurbishing and reloca- tion of the Jotun A FPSO, extending its service life to 2045 and that of the Balder FPSO to 2030. Var Energi also plans to sink 15 new production wells at Balder and 11 more at Ringhorne.
“Our subsea connect approach is transform- ing the way we do business and bringing new subsea projects,” Baker Hughes’ CEO for oilfield
equipment, Neil Saunders, said in a press release announcing the contract win. “Working closely with Var Energi and Ocean Installer, we will deploy the key components of subsea connect, including early engagement, advanced field- proven technology, flexible partnerships and digital solutions to improve project economies.”
Var Energi CEO Kristin Kragseth added that the contract would “provide new activity to the world-class oil service industry we have in the Stavanger region.”
“Both companies have a strong local pres- ence and large portions of the construction and engineering work will come from local suppliers, supporting employment in the region,” he said.
Balder X is one of several new developments Var Energi has in store for the North Sea and Nor- wegian Sea over the next few years. The company was formed last year when Eni merged its Nor- wegian business with that of Point Resources. Var Energi is set to become Norway’s second biggest producer after state-owned Equinor, after strik- ing a $4.5bn deal last week to buy ExxonMobil’s stakes in more than 20 fields. ™
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Week 39 03•October•2019