The nation’s largest refiner Sinopec Corp commenced work on a 9.66-billlion-yuan (.42 billion) liquefied natural gas (LNG) project in Shandong province on Friday, as part of efforts to expand its gas portfolio in the fast-growing domestic market.
The Qingdao unit is Sinopec’s first LNG project in China. It is designed to receive 3 million tons of LNG and supply 4 billion cubic meters of gas every year.
The project will receive LNG from US oil major ExxonMobil’s project in Papua New Guinea. Sinopec has signed long-term contract to buy 2 million tons of LNG from the project annually.
Sinopec expects to start operating the Qingdao plant by November 2013. It is also considering a second phase for the project at a later date.
The project will improve the energy structure in Shandong, said Wang Zhigang, senior vice-president of Sinopec Corp. The province, which became China’s largest energy consuming province in 2005, is now mainly relying on coal and oil to fuel its economy.
At present, natural gas accounts for around 1 percent of energy use in Shandong. Gas consumption is expected to reach 9 billion cu m in Shandong by 2013, according to Sinopec.
Analysts said the LNG project marks a milestone in Sinopec’s expansion in the domestic LNG market. At present, the market is dominated by oil and gas producer, PetroChina and offshore oil company Cnooc.
This LNG project is in line with Sinopec’s efforts to accelerate the development of its gas business. The company will speed up gas exploration and production, pipeline network construction, and market building.
The company’s natural gas production is expected to exceed 10 billion cu m by the end of this year. Its gas pipeline network will also reach 6,500 kilometers by the time, according to the company.
Sinopec officially started operating a 62.7-billion-yuan pipeline linking the Puguang natural gas field in Sichuan province with Shanghai.
Iraq the first time in 30 years, 8 months for the global oil and gas fields auction auction results. Liu Jianping mapping Oriental Morning Post reporter Shen YanfeiYesterday, 32 international oil companies in Iraq as scheduled appointments, bid six major oil fields in Iraq and two gas fields in the project service contract. This is the first time in nearly 30 years of Iraq’s external public auction of oil contracts, foreign companies will be the subject of Iraq’s 20-year service contract signed, and limited access to services, but just before the start of the auction, the Government of Iraq raised a total of 2.6 billion U.S. dollars in “soft loans” requirements. Turbulence combined with the concerns of the Government of Iraq to end Iraqi oil project bidding, the contract reached only Rumaila by British Petroleum (BP) and the China National Petroleum Corporation (hereinafter referred to, in oil) formed physical access to the joint bid. The other seven Liupai of oil (gas) fields, the Iraqi oil ministry expressed the hope that international oil companies to re-bid. To accept Iraq 2 U.S. dollars / barrel rewardThe success of yesterday’s first auction is Rumaila (Rumaila) service contract, BP, and a joint bid in oil body committed to Rumaila output increase from the current 110 million barrels to 280 million barrels. Rumaila is Iraq’s largest oilfield, discovered in 1953, commissioned in 1972, proven oil reserves of 177 billion barrels, but the oil field is located in the Diyala province (Diyala), to Department in border areas between Iraq and Kuwait, is considered the most violent provinces in Iraq in recent years. According to Dow Jones news agency reported, the consortium had made the bid to recover the investment costs for the remuneration of 3.99 U.S. dollars per barrel, but the morning in the 30 last-minute negotiations, the Iraqi Oil Ministry recover the costs paid per barrel down to two U.S. dollars. Before, Exxon Mobil (ExxonMobil) that the Iraqi Oil Ministry for bid is too low and gave up the contract. After the contract reached, analysts say PetroChina chose the appropriate auction model, and equity research Edison Investment analysts believe that this contract is to enter Iraq, British Petroleum a good starting point. Auction period, the Iraqi oil minister Shahristani (Husseinal-Shahristani) said that their goal is, in the next 5 years, oil output from the current 240 barrels to 450 barrels or more, and in the next 20 years for Iraq to create 1,700,000,000,000 U.S. dollars of revenue for Iraq’s infrastructure, such as schools, roads, airports, housing and hospitals. Liupai due to bid too farIn the first round of bidding, because the gap between bid difficult to unity, Iraq’s Oil Ministry announced the withdrawal of bay hasan oil (BaiHassan) and Maysan oilfields (Missan) of the contract, then do not attract any bids because of give up Mansuliya field (Mansouriya) contract auction. The first round of bidding, the U.S. oil company ConocoPhillips had jointly Sinopec and CNOOC bids bay hasan oil (BaiHassan), it would be to get the additional production of oil revenue 26.7 U.S. dollars per barrel, but Iraq’s Oil Ministry said four U.S. dollars is given only when the tender announcement abortion. Then, China National Offshore Oil Corporation (hereinafter referred to CNOOC) led a joint tender body is 21 dollars / barrel, with the Iraqi government to open out far from the price of 2.3 U.S. dollars per barrel, resulting in failed auctions. Maysan oilfields close to the Iranian border, with 25 million barrels of reserves. Surprisingly, the Government of Iraq followed the public Buzubaier oil (Zubair), West Qurna Field (WQurna-1), and Achatz Kirkuk oil field (Akkas) of the tender Contracts have also Liupai. Analysis of Al-Jazeera reported yesterday, foreign oil companies are very worried about instability in Iraq, the government, the Iraqi Oil Ministry in the final conditions, the tenderers are also “common management” articles had questioned. End, Iraqi Prime Minister Nouri al-Maliki (NuriKamalAl-Maliki) proposed that foreign companies willing to provide security guarantees and investment contracts, but the tender, said the company is still very worried about whether the next government will recognize from the auction contract. 7 oil and gas fields in China bidActive participation of Chinese oil companies bidding to press deadlines, in addition to the auction has been successful Rumaila (CNPC), Chinese companies were also involved through a joint tender for the Zubair oilfield (Sinopec), West Qurna oil field (in oil), Maysan oilfields (CNOOC), Kirkuk oil fields (Sinopec, CNPC), bai hassan oil (Sinopec, CNOOC), and Achatz gas field (in oil) auction, but in the end all because of the Iraqi Oil Ministry’s keep the prices down and stranded. Iraqi oil ministry, was the subject of overseas companies with the Iraqi government “shared management”, and access to services, fees and additional income. However, before yesterday’s auction, Iraq, was the subject of overseas companies in need of loans provided by the Government of Iraq, and oil income to repay the loans. Analysis of Al-Jazeera said the Iraqi oil ministry in the service charge on the acquired firm’s initiative, and beginning in the bidding process proposed conditions, the profitability of oil companies that bid is a difficult problem. Moreover, an Iraqi diplomat MahmoudAlmusafir also reminded the Iraqi Dawa Party (Al-Dawa) in the government controlled by the U.S. government, which in the end who is behind the oil contracts in pricing, we must get clear. Extension News Iraq’s oil industry Recovery are still toMorning News do not rush to celebrate the revival of Iraq’s oil industry. Baghdad, with foreign energy companies to reach oil deal, which is the first time in 30 years. Name, which is Iraq’s oil industry, a major step in Iraq’s current oil production capacity of 250 million barrels per day, lower than the 1979 high point of 36%. But the political and security considerations may still hinder these transactions. Even in the price of key factors, there are several negative aspects of these contracts. They are based on 20 years of service transactions, oil companies less likely to book new reserves. Analysts expect the financial returns of these transactions is limited. At the same time the Government of Iraq also made the last minute total 2.6 billion U.S. dollars in “soft loans” requirements. But Iraq’s oil reserves rank third in the world, it is estimated that the cost of mining
Nigeria’s agony dwarfs the Gulf oil spill. The US and Europe ignore it
The Deepwater Horizon disaster caused headlines around the world, yet the people who live in the Niger delta have had to live with environmental catastrophes for decades
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John Vidal, environment editor
The Observer, Sunday 30 May 2010
Article history
A ruptured pipeline burns in a Lagos suburb after an explosion in 2008 which killed at least 100 people. Photograph: George Esiri/Reuters
We reached the edge of the oil spill near the Nigerian village of Otuegwe after a long hike through cassava plantations. Ahead of us lay swamp. We waded into the warm tropical water and began swimming, cameras and notebooks held above our heads. We could smell the oil long before we saw it – the stench of garage forecourts and rotting vegetation hanging thickly in the air.
The farther we travelled, the more nauseous it became. Soon we were swimming in pools of light Nigerian crude, the best-quality oil in the world. One of the many hundreds of 40-year-old pipelines that crisscross the Niger delta had corroded and spewed oil for several months.
Forest and farmland were now covered in a sheen of greasy oil. Drinking wells were polluted and people were distraught. No one knew how much oil had leaked. "We lost our nets, huts and fishing pots," said Chief Promise, village leader of Otuegwe and our guide. "This is where we fished and farmed. We have lost our forest. We told Shell of the spill within days, but they did nothing for six months."
That was the Niger delta a few years ago, where, according to Nigerian academics, writers and environment groups, oil companies have acted with such impunity and recklessness that much of the region has been devastated by leaks.
In fact, more oil is spilled from the delta’s network of terminals, pipes, pumping stations and oil platforms every year than has been lost in the Gulf of Mexico, the site of a major ecological catastrophe caused by oil that has poured from a leak triggered by the explosion that wrecked BP’s Deepwater Horizon rig last month.
That disaster, which claimed the lives of 11 rig workers, has made headlines round the world. By contrast, little information has emerged about the damage inflicted on the Niger delta. Yet the destruction there provides us with a far more accurate picture of the price we have to pay for drilling oil today.
On 1 May this year a ruptured ExxonMobil pipeline in the state of Akwa Ibom spilled more than a million gallons into the delta over seven days before the leak was stopped. Local people demonstrated against the company but say they were attacked by security guards. Community leaders are now demanding bn in compensation for the illness and loss of livelihood they suffered. Few expect they will succeed. In the meantime, thick balls of tar are being washed up along the coast.
Within days of the Ibeno spill, thousands of barrels of oil were spilled when the nearby Shell Trans Niger pipeline was attacked by rebels. A few days after that, a large oil slick was found floating on Lake Adibawa in Bayelsa state and another in Ogoniland. "We are faced with incessant oil spills from rusty pipes, some of which are 40 years old," said Bonny Otavie, a Bayelsa MP.
This point was backed by Williams Mkpa, a community leader in Ibeno: "Oil companies do not value our life; they want us to all die. In the past two years, we have experienced 10 oil spills and fishermen can no longer sustain their families. It is not tolerable."
With 606 oilfields, the Niger delta supplies 40% of all the crude the United States imports and is the world capital of oil pollution. Life expectancy in its rural communities, half of which have no access to clean water, has fallen to little more than 40 years over the past two generations. Locals blame the oil that pollutes their land and can scarcely believe the contrast with the steps taken by BP and the US government to try to stop the Gulf oil leak and to protect the Louisiana shoreline from pollution.
"If this Gulf accident had happened in Nigeria, neither the government nor the company would have paid much attention," said the writer Ben Ikari, a member of the Ogoni people. "This kind of spill happens all the time in the delta."
"The oil companies just ignore it. The lawmakers do not care and people must live with pollution daily. The situation is now worse than it was 30 years ago. Nothing is changing. When I see the efforts that are being made in the US I feel a great sense of sadness at the double standards. What they do in the US or in Europe is very different."
"We see frantic efforts being made to stop the spill in the US," said Nnimo Bassey, Nigerian head of Friends of the Earth International. "But in Nigeria, oil companies largely ignore their spills, cover them up and destroy people’s livelihood and environments. The Gulf spill can be seen as a metaphor for what is happening daily in the oilfields of Nigeria and other parts of Africa.
"This has gone on for 50 years in Nigeria. People depend completely on the environment for their drinking water and farming and fishing. They are amazed that the president of the US can be making speeches daily, because in Nigeria people there would not hear a whimper," he said.
It is impossible to know how much oil is spilled in the Niger delta each year because the companies and the government keep that secret. However, two major independent investigations over the past four years suggest that as much is spilled at sea, in the swamps and on land every year as has been lost in the Gulf of Mexico so far.
One report, compiled by WWF UK, the World Conservation Union and representatives from the Nigerian federal government and the Nigerian Conservation Foundation, calculated in 2006 that up to 1.5m tons of oil – 50 times the pollution unleashed in the Exxon Valdez tanker disaster in Alaska – has been spilled in the delta over the past half century. Last year Amnesty calculated that the equivalent of at least 9m barrels of oil was spilled and accused the oil companies of a human rights outrage.
According to Nigerian federal government figures, there were more than 7,000 spills between 1970 and 2000, and there are 2,000 official major spillages sites, many going back decades, with thousands of smaller ones still waiting to be cleared up. More than 1,000 spill cases have been filed against Shell alone.
Last month Shell admitted to spilling 14,000 tonnes of oil in 2009. The majority, said the company, was lost through two incidents – one in which the company claims that thieves damaged a wellhead at its Odidi field and another where militants bombed the Trans Escravos pipeline.
Shell, which works in partnership with the Nigerian government in the delta, says that 98% of all its oil spills are caused by vandalism, theft or sabotage by militants and only a minimal amount by deteriorating infrastructure. "We had 132 spills last year, as against 175 on average. Safety valves were vandalised; one pipe had 300 illegal taps. We found five explosive devices on one. Sometimes communities do not give us access to clean up the pollution because they can make more money from compensation," said a spokesman.
"We have a full-time oil spill response team. Last year we replaced 197 miles of pipeline and are using every known way to clean up pollution, including microbes. We are committed to cleaning up any spill as fast as possible as soon as and for whatever reason they occur."
These claims are hotly disputed by communities and environmental watchdog groups. They mostly blame the companies’ vast network of rusting pipes and storage tanks, corroding pipelines, semi-derelict pumping stations and old wellheads, as well as tankers and vessels cleaning out tanks.
The scale of the pollution is mind-boggling. The government’s national oil spill detection and response agency (Nosdra) says that between 1976 and 1996 alone, more than 2.4m barrels contaminated the environment. "Oil spills and the dumping of oil into waterways has been extensive, often poisoning drinking water and destroying vegetation. These incidents have become common due to the lack of laws and enforcement measures within the existing political regime," said a spokesman for Nosdra.
The sense of outrage is widespread. "There are more than 300 spills, major and minor, a year," said Bassey. "It happens all the year round. The whole environment is devastated. The latest revelations highlight the massive difference in the response to oil spills. In Nigeria, both companies and government have come to treat an extraordinary level of oil spills as the norm."
A spokesman for the Stakeholder Democracy Network in Lagos, which works to empower those in communities affected by the oil companies’ activities, said: "The response to the spill in the United States should serve as a stiff reminder as to how far spill management in Nigeria has drifted from standards across the world."
Other voices of protest point out that the world has overlooked the scale of the environmental impact. Activist Ben Amunwa, of the London-based oil watch group Platform, said: "Deepwater Horizon may have exceed Exxon Valdez, but within a few years in Nigeria offshore spills from four locations dwarfed the scale of the Exxon Valdez disaster many times over. Estimates put spill volumes in the Niger delta among the worst on the planet, but they do not include the crude oil from waste water and gas flares. Companies such as Shell continue to avoid independent monitoring and keep key data secret."
Worse may be to come. One industry insider, who asked not to be named, said: "Major spills are likely to increase in the coming years as the industry strives to extract oil from increasingly remote and difficult terrains. Future supplies will be offshore, deeper and harder to work. When things go wrong, it will be harder to respond."
Judith Kimerling, a professor of law and policy at the City University of New York and author of Amazon Crude, a book about oil development in Ecuador, said: "Spills, leaks and deliberate discharges are happening in oilfields all over the world and very few people seem to care."
There is an overwhelming sense that the big oil companies act as if they are beyond the law. Bassey said: "What we conclude from the Gulf of Mexico pollution incident is that the oil companies are out of control.
"It is clear that BP has been blocking progressive legislation, both in the US and here. In Nigeria, they have been living above the law. They are now clearly a danger to the planet. The dangers of this happening again and again are high. They must be taken to the international court of justice."
Obama Study: Oil Cos Not Drilling Where They Can
Something serious happened this month to the cultural “drill baby drill” meme. In short, March was the month it became irrelevant. A new Department of Interior study debunks the myth that the US is not opening up ample land for oil and gas exploration. Read more on Forbes
Nigeria set to vote amid oil industry uncertainty
Nigeria begins elections tomorrow amid uncertainty over a major overhaul of its oil industry that has led to a freeze in new investment despite relative calm in the restive Niger Delta region. Read more on Gulf Times
High Gas Prices: Supply and Demand: Efficiency and better cars will fuel America faster than drilling
The following article from the Natural Resources Defense Council outlines a better strategy for fueling our transportation than increased offshore drilling — and a way out of high gas prices. Read more on National Catholic Reporter
Question by Lady Laissez Faire: Why was the Obama Administration going to give BP the Safety Award for Excellence, this year?
BP, now under federal scrutiny because of its role in the deadly Gulf of Mexico explosion and oil spill, is one of three finalists for a federal award honoring offshore oil companies for “outstanding safety and pollution prevention.”
The winner of the award – chosen before the April 20 oil rig incident – was to be announced this coming Monday at a luncheon in Houston. But the U.S. Department of Interior this week postponed the awards ceremony, saying it needs to devote its resources to the ongoing situation resulting from the Deepwater Horizon oil rig explosion and fire.
According to a Department of Interior’s website, BP Exploration & Production Inc. is one of three finalists for a Safety Award for Excellence, which honors companies for “outstanding safety and pollution prevention performance by the offshore oil and gas industry.” The other nominees are ExxonMobil Corp. and Eni US Operating Co. BP specifically was nominated in the High OCS Activity Operator category, for companies engaged in operations on the outer continental shelf.
http://news.blogs.cnn.com/2010/04/30/in-…
Best answer:
Answer by Lkn4trouble I wonder if campaign contributions play a roll in who gets picked as the winner?
China’s largest refiner Sinopec Corp yesterday signed a 20-year agreement to buy liquefied natural gas (LNG) from the ExxonMobil-led Papua New Guinea LNG project, in a move to meet rising domestic demand for energy.
Under the agreement, Sinopec will purchase 2 million tons of LNG per annum for 20 years from the project, the company said in a statement yesterday.
The LNG will arrive at Qingdao in Shandong province, where Sinopec will build a LNG terminal, said the statement.
The first phase of the Shandong terminal will have a capacity of 3 million tons per year. Sinopec Sony NP-FP50 Battery plans to expand the facility to 5 to 6 million tons per year in the second phase, said Wang Zhigang, senior vice-president of Sinopec Corp.
“This LNG terminal will provide long-term, reliable and clean natural gas resources to the Shandong market and will play a positive role in meeting the local demand, optimizing the energy mix and improving the local environment,” said Wang.
But Sinopec yesterday did not disclose when the terminal would come into operation.
Commenting on the deal, Ron Billings, vice-president, LNG, ExxonMobil Gas & Power Marketing Company said: “We are pleased that the project has completed this important agreement with a key Asian LNG customer.”
The deal is Sinopec’s first LNG purchase Sony NP-FP70 Battery agreement. Analysts said it shows that the company is working to expand its share in the rapidly growing LNG market domestically, which is now dominated by the country’s other two oil majors PetroChina and CNOOC.
China’s largest offshore oil and gas producer CNOOC is now operating two LNG terminals in Shenzhen in Guangdong and Putian in Fujian. The company’s third terminal in Shanghai will soon become operational.
The country’s largest oil company is now building two LNG terminals in Liaoning and Jiangsu provinces.
China, which received its first LNG cargo in May 2006, plans to build more than 10 terminals on the east coast to meet a government target to double the use of natural gas in five years by 2010.
CNOOC in November signed an agreement with Qatargas to buy more LNG from the Middle Eastern country. It is considering boosting its annual LNG purchase from the gas-rich country to 7 million tons.
China and Australia struck their biggest trade deal ever in August as the world’s two most valuable listed oil companies, PetroChina and ExxonMobil, agreed a -billion LNG deal. Sony NP-FP90 Battery is a good deal.
About the Author
China’s largest refiner Sinopec Corp yesterday signed a 20-year agreement to buy liquefied natural gas (LNG) from the ExxonMobil-led Papua New Guinea LNG project, in a move to meet rising domestic demand for energy.
Ukraine wants to involve Texaco, Exxon Mobil, Chevron in development of Black Sea shelf. International majors have been interested in the Black Sea for decades. However, for some reason, only Turkey and Romania together with Bulgaria have attracted majors to such a degree that they have taken acreage and are involved in active geoscietnific studies and drilling after the oil and gas potential on their offshore acreage within the Black Sea.
Recently the Ukrainian Energy Minister Yuriy Boiko wants told the media that Ukraine authorities wants to engage U.S based Exxon Mobil Corp., Texaco and Chevron Corp. to joint efforts in development of the Black Sea shelf. A corresponding program has been drafted, with the goal to engage U.S. Exxon Mobil, Chevron and Texaco, due to their relevant experience with great water depths. Ukraine and the U.S. companies are currently negotiating the establishment of an international consortium to solve these challenging efforts in the Blak Sea. The talks are underway and there is no final decision yet, but parties have received the relevant proposals.
The Russian-British TNK-BP company has also shown their interest in the development of the Ukrainian shelf of the Black Sea and intends to enter the natural gas market of Ukraine. The company leadership discussed this with Prime Minister Mykola Azarov and First Vice Prime Minister Andrii Kliuev on April 8 2010.
Here are some reference work from Stig-Arne Kristoffersen, the author of this article;
What are other countries around the Black Sea doing?
Romania ExxonMobil Exploration and Production Romania Limited, has signed an agreement in 2006 with Petrom SA to help explore deepwater portions of the Neptun Block offshore Romania. The Petrom agreement is ExxonMobil’s second major exploration venture announced in the promising Black Sea in short time. ExxonMobil and Petrom, the largest Romanian oil and gas company and a member of the OMV group, agreed to cooperate on a 3D seismic acquisition and evaluation program of the Neptun Block. Petrom will operate the initial work program. ExxonMobil will help fund the work program and provide expertise in evaluating the deepwater seismic data.ExxonMobil pioneered the development of 3D seismic technology and other technologies for gathering and interpreting data to improve the success rate of deepwater oil and gas exploration efforts. The world’s largest oil companies are preparing to participate in a call for tenders for hydrocarbon exploration and extraction in the Romanian Black Sea. Obtained in 2009, in the wake of an International Court of Justice ruling on the maritime boundary to divide the Black Sea continental shelf between Romania and Ukraine, the 9,700 square kilometres of Romania’s exclusive economic zone have been estimated to contain one trillion cubic metres of natural gas and 10 millions tons of oil. The National Agency for Mineral Resources (NAMR) plans bid round for exploration and development rights to 30 Romanian blocks both on land and off-shore. To date 20 companies and consortiums have purchased data on the area concerned. These include US internationals like ExxonMobil and Hunt Oil, Total from France, Lukoil from Russia, OMV Petrom and Romgaz, both from Roumania), Audax Resources from Australia, Blackstairs Energy from Ireland, and MOL & Expert Petroleum jointly from Hungary-Romania. The exploration of the Romanian Black Sea continental shelf began in 1969, and the first oil find in the area dates back to 1980. Production began a few years later in 1987. Currently, Petrom Roumanie operates two Black Sea fields, which provide 18% of the company’s oil and gas. Its competitor Midia Resources (Romania) is also working on two more fields, which it pledges will begin production in 2011-2012.
Turkey ExxonMobil Exploration and Production Turkey B.V., an ExxonMobil affiliate, will use the Deepwater Champion, a specially designed, newly built drillship from a subsidiary of Transocean Ltd. to explore the deepwater Black Sea offshore Turkey. It is expected to drill its first well in the Turkish Black Sea in the first half of 2011. The Deepwater Champion is a sixth-generation drillship capable of drilling to 12,190 meters (40,000 feet) in up to 3,660 meters (12,000 feet) of water. ExxonMobil entered into an agreement with the Turkish national oil company TPAO in November 2008 to jointly explore deepwater prospects in the Samsun block of AR/TPO/3922 exploration license and the eastern portion of AR/TPO/3921 exploration license in the Black Sea. In January 2010, ExxonMobil signed an agreement with Petrobras and TPAO to acquire a 25 percent interest in the Sinop, Ayancik and Çarşamba sub-blocks of the AR/TPO/3922 exploration license. In January 2010, Petrobras, TPAO, and ExxonMobil signed a partnership agreement for the exploration of Block 3922 (Sinop), located in deep Black Sea waters, in Turkey. Petrobras is the operator of the project, holding 25% of the equity stakes in it, while TPAO holds 50%, and ExxonMobil Exploration and Production Turkey B.V. holds the remaining 25% equity stakes in the Block’s concession license.
BP and Turkey’s TPAO drilled the first well in December 2004 on their Eastern Black Sea Block offshore Turkey’s northeastern coast.
Brazil’s Petrobras signed a Memorandum of Understanding with the Turkish Petroleum Corporation (TPAO) with the aim to expand deep-water exploration research in the Black Sea region of Turkey. At the end of December 2009, Petrobras announced the arrival of the Leiv Eiriksson drilling rig to Turkey this Thursday. The rig will be used at well Sinop 1, located in ultra-deep waters (around 2,200 meters, about 7,200 feet) in the Black Sea, where the company will drill for the first time. he Leiv Eiriksson drilling rig was built in 2001 and is capable of performing drilling operations in water depths of up to 2,300 meters. Its total drilling capacity is of upwards of 9,000 meters. The rig is 119 meters long, 85 meters wide, and can lodge up to 140 people. The Turkish Petroleum Corporation (TPAO) has invested some billion in offshore oil exploration in the Black Sea since it initiated seismic studies in the region in the 1970s. According to TPAO General Manager Mehmet Uysal, a further investment of billion to billion will be required to start oil extraction if the exploration yields positive results. TPAO believe there are 10 billion barrels of oil and three trillion cubic meters of natural gas in the Black Sea, There are planned 10 deep water wells which will cost an average 0 million to drill each. TPAO is planning to drill a new potential site in the Black Sea every six months
So what is in it for these companies to discuss with Ukraine at the moment?
Ukraine has previously held one auction round where some of these companies were involved back in 2006. However, The PRYKERCHENSKA Block in the offshore Black Sea area was awarded to Vanco international Limited. This award marks a new trend offshore Ukraine. For the first time a Production Sharing Agreement had been developed with an international oil and gas company within Ukraine. Exxon amongst other international compnies did not get anything back then, and therte has not been any movement in the deep waters Black Sea since then. National Oil Company of Ukraine, Naftogaz has had economic problems and can hardly commit themselves in the same fashion as their neighboring state companies, from Romania and Turkey. So Ukraine authorities needs to find an economic model that can meet terms seen in other countries around the Black Sea.
There is not planned a new bid round for Ukraine Black Sea, and there are unresolved issues with existing licenses offshore Ukraine Balck Sea.
Vanco PSA The PSA for the 12960 km2 or 3.2 million acres of offshore acreage Ukraine’s first Production Sharing Agreement was won by Vanco in April 2006; Final PSA negotiations were concluded in 1st quarter of 2008. This PSA made it possible for Vanco to plan to aquire a new 3D seismic survey and plan for one deep water exploration well within the first three years of the PSA. Vanco had mapped out several play models within the Miocene to Oligocene stratigraphy. Play models ranging from compressional anticlines situated in the front of the imbricated fold belt as well as truncated traps within the same regime. Trap types like Slope fan deposits with semi-structural trap mechanisms, plane compactional anticlines and stratigraphic traps are also mapped out in the Sorokin foredeep section. Vanco has also identified large potential play models within the Eocene to Paleocene reefs, where they have mapped out several anticlinal structures. In addition they have identified Upper Jurassic reef structures which could hold potential larger volumes of hydrocarbons. Vanco recognizes a large unexplored deep water area with several play concepts. The Prykerchenska Block may yield up to 6.4 billion barrels of oil – which makes it a ‘World Class’ project. Numerous prospects exhibit direct hydrocarbon indicators and oil has been found on trend near the block. ? Vanco will conduct a work program designed to mature drilling locations in the Sudak Fold Belt and on the Tetyaev Prospect. The 3D Seismic acquisition to commence in 2Q 2008 and to be performed in two areas over the Tetyaev Prospect and to be around 1238 km2. The other 3D area proposed is over the Sudak B prospect and to be around 1800 km2. Tetyaev proect is believed to most likely have around 2091 mmbo and the Sudak B area prospects to be most likely 1370 mmbo of hydrocarbons. The Tetyaev prospect has an areal extent of around 225 km2 and believed to have an vertical closure of 700 meters. The waterdepth at prospect location is around 2185 meters and the prospect is at 4800 meters. At the Andrusov high another prospect is identified with an areal extent of around 110 km2 and with a vertical closure of 700 meters. The resource is mostl likely to be 385 mmbo at a water depth of 2225 meters and the target depth is 5400 meters.
West and East Black Sea basins Black Sea has two extensional basins of different ages, the West and East Black Sea basins, separated by the Mid-Black Sea Rise which is called Andrusov Ridge in the Ukrainian sector. These two sub-basins subsided simultaneously during the last 30 Ma. A regional study of the eastern part of the Ukrainian Black Sea has been carried using regional 2D seismic lines. To the south of the Crimean peninsula there have been mapped out 20 large structures with closures of 50-200 km2. All structures are within the Miocene-Pliocene sediments. Mega structures are also mapped out, with an areal closure in the excess of 350 sq. km. These structures are found within the Tertiary and older Cretaceous sediments further to the east within Sorokin Trough and on the Andrusov Ridge itself. In the easternmost part of the Ukrainian Black Sea a number of anticlines have been mapped out in shallow water depth and in addition a huge Mesozoic structure of 400 km2 is identified within water depth of 150-700 meters. The West Black Sea Basin includes about 50.000 km2 of shelf located mainly within the Ukrainian territory. The sea depth over the majority of shelf is less than 100 meters. The Odessa Bay is a confirmed gas province with one exploited deposit and six deposits in the exploitation preparation stage or development. The total surveyed resource of gas comprises approximately 53 TCF. The Karkinitsk Basin includes several gas deposits with reservoirs confined to coarse-grained sandstone of the Aptian, Pliocene, and Oligocene overlaid by marl of the Upper Cretaceous and Eocene and clay of the Oligocene. The main type of traps is anticlines formed during the Late Eocene and later phases of compression. Eocene, Oligocene and Miocene sediments are considered as source rocks with good potential for generation of hydrocarbons. Potential direct hydrocarbons indicators are observed on 2D seismic data sets throughout various areas within the Black Sea. Major Upper Mesozoic-Cenozoic leads within water depths of 100 m to 2000 m has the potential to contain hundreds of million of barrels of recoverable hydrocarbons.
Upper Jurassic Reefs of the Western Caucasus-Crimea; Hydrocarbon Implications for the Eastern Black Sea Widespread Upper Jurassic reefs are important potential reservoir facies in the Eastern Black Sea Basin. Russian seismic reflection data from the northern Shatskiy Ridge indicate possible offshore reef-facies occurrences up to 1-2 km thick and 10-20 km wide. Data from excellent onshore exposures in the Russian Western Caucasus and Crimea provide a reservoir analogue for offshore targets. A model for development and distribution of the carbonate reefs is presented with reference to possible alternative tectonic settings for the Upper Jurassic north Tethyan Margin. Outcrops of well-preserved Upper Jurassic reefs can be grouped into coral-dominated, siliceous sponge-microbial and microbial types. Patchy and massive coral-dominated reefs formed at shallow-water platform margins or in slightly restricted deeper-water mid shelf settings. Siliceous sponge-microbial and microbial reefs occur as lenses and mounds and are restricted to deeper-water mid-outer shelf environments. The development of these reefs was controlled mainly by local variations in water depth, light, and the availability of nutrients. The reefs exhibit a complex pattern of porosity development reflecting independent diagenetic histories involving near-surface and deep-burial dissolution, dolomitization and dedolomitization. Porosity is particularly common in coral-dominated reef facies and consists of both primary and secondary types. Coral-dominated reefs analogous to onshore outcrops in the Russian Western Caucasus are likely to occur along the northwestern margin of the Yuzhnyi-Adler carbonate platform in the Eastern Black Sea. Possible isolated deeper-water reefs imaged on the northern Shatskiy Ridge could be largely composed of siliceous sponge-microbialite and microbialite facies. Similar reef facies may be present on the Mid Black Sea High.
Lithostratigraphy of the Upper Jurassic – Cretaceous Deposits and Hydrocarbon Perspective in the Romanian Shelf of the Black Sea In the Romanian shelf of the Black Sea (offshore), Petromar Co. drilled and has obtained cores of Middle and Upper Jurassic- Cretaceous deposits, as well as Paleogene and Neogene ones. The Mesozoic and Cenozoic deposits belongs to two main geological units: the North Dobrogea Orogenic Belt and the Moesian Platform. In the offshore of the North Dobrogea Orogenic Belt three cycles of sedimentation have been identified: 1. A lower transgressive cycle corresponding to the compression phase of synrift 1 (Bajocian- Callovian ?), the last stage possible corresponding to a „general” unconformity or to a break up 1 between the Middle and Upper Jurassic , with black calci- and siltic turbidites (Heraclea Formation). 2. A middle transgressive compression phase composed by mudstones, claystones and siltstones ( Pontus Formation), Upper Jurassic- Neocomian in age corresponding to the synrift 2 followed by a break up 2 to the Jurassic-Cretaceous boundary and intra Neocomian covered different times hiatuses. 3. An upper large postrift phase Albian to Senonian, continued during the Paleogene and Neogene. Many short and long time hiatuses are recorded that include the Cretaceous deposits. Three source rocks can be identified for hydrocarbon generation: – the black argillaceous, siltic to sandstones of the Heraclea Formation (Middle Jurassic in age), about 1000 m in thickness.; – the black argillites of the Pontus Formation (Neocomian) and – the Oligocene- Miocene bituminous shales, clays and marls known more or less as the Maikop beds.
Hydrocarbon Accumulation in the Permo-Triassic Reservoirs of the Moesian Platform Romanian petroleum basins contain hydrocarbon fields in the Triassic reservoirs only in the north-west of the Moesian Platform and in its south was identified an “oil show”. This distribution of the oil and gas fields is a little enigmatic, because of their position regarding the Bals-Optasi Uplift. Well logs, cores, some seismic profiles and lithophacies maps define the depositional systems and the dispersal patterns of the reservoirs and seals of the Triassic formations. The Permo-Triassic deposits consist of three lithostratigraphic formations: Lower Red Detrital (LRD Fm) (Lower Triassic), Carbonatic-Evaporitic (C-E Fm) (Middle Triassic) and Upper Red Detrital (URD Fm) (Upper Triassic). The lowest part of the LRD Fm and the URD Fm consists of multiple coarsening-upward parasequences deposited in deltaic and fluviatil environments of the lowstand systems tract during a forced regression. The upper part of the LRD Fm consists of fining-upward parasequences that sugests a strong transgression. This evolution is the result of the Permo-Triassic riftogenesis. The main reservoir is a very well sorted sandstone (“Bradesti sandstone”). The seals consist of marls associated with evaporitic rocks. The reservoirs of the C-E Fm consist of limestones and dolomites, especially in the lower part of this formation and the seals are composed by evaporitic rocks. Analysis of the main Triassic reservoirs (Bradesti sandstone as well as dolomite and limestone in the C-E Fm) suggests that there are others prospective areas for hydrocarbon accumulations in the southern part of the Bals-Optasi Uplift.
Tectonic Style and Oil and Gas Accumulation in the Moldavian Platform The Moldavian Platform represents the western part of the East European Platform. Seismic profiles, well logs, cores as well as geological cross sections and maps show that during Alpine orogeny, the western part of the platform was gradually underthrusted by the Eastern Carpathian Orogene. This structural evolution imprinted a monoclinal character of the deposits and they dip westward beneath the Carpathian Foredeep (Molasse) and Eastern Carpathian Flysch. The compressional tectonic regime accompanied by slowly strike-slip movements and interrupted by short moments of extension imprinted the main tectonic style of the Moldavian Platform. It is dominated by a fault network with two predominantly directions. A first system of major faults, almost parallel with the Eastern Carpathian Orogene is of NNW-SSE orientation (Paltinoasa Fault, West Paltinoasa Fault, and Siret Fault). The second system consists of small cross faults (E-W oriented) and it generated more tectonic block alignments that follow the longitudinal fault trace. The older deposits than the Upper Sarmatian ones plunge step by step beneath Eastern Carpathians along major faults. The tectonic blocks on every step folded and generated gently anticlines and faulted monoclines. The intense compressional regime and the high subsidence rate of the Sarmatian deposits favored the formation of the lithostratigrafic traps. The gas and gas-condensate are reservoired in Albian, Badenian and Sarmatian sandstones and marls and anhydrites seal them. The study of the tectonic evolution of the Moldavian Platform suggests new prospective areas for the gas and gas-condensate in the pre-Badenian deposits.
Paleocene carbonate platform facies distribution (northern part of the Black Sea basin, Ukrainian offshore) This study is aimed to detailed facies subdivision and mapping of the Paleocene carbonates that is stipulated by several oil and gas discoveries recently made in this sequence. An analysis is based on an integrated interpretation of core sets and well logs for more than 40 deep wells drilled in the different tectonic zones of the basin and regional and local seismic data. Carbonates of Paleocene occur at depth of 500-6000 m and extend over the most of structural-tectonic zones of the Black Sea basin. The thickness of these sediments changes from 50-100 m to 600-900m. The study has revealed several facies zones in the carbonate sediments of Paleocene: littoral (alternation of skeletal wackestones and packstone, lime mudstones, marls, calcareous sandstones and siltstones), intra-shelf (skeletal wackestones and packstone 60-70%, marls 10-20%, pelitomorphic limestone 5-15 %, baundstones 3-5%, sales 10%), outer-shelf, (skeletal wackestones and packstone 30-40%, marls 20-30%, pelitomorphic limestones 10 %, sales 20%), gentle slope (marls 20-30%, wackestones and packstone 10-15 %, pelitomorphic limestones 20 % sales 30-50%) and basin (sales and marls with intercalation of pelitomorphic limestones). Four gas and gas-condensate fields are discovered within the Paleocene carbonate to date. All from them are located in the intra-shelf zone. The reservoirs are represented with skeletal wackestones. The reservoirs are porous and porous-fissured types. Open porosity – from 10 to 32%, permeability – 0,0005-0,045 mcm2.
South Akcakoca Gas: A Black Sea Discovery 30 Years in the Making Six Eurasian countries surround the Black Sea. Of those six countries, the Republic of Turkey has the longest coastline, 1595 km. of any bounding country. Prior to 2004 there had been only six well drilled in the Turkish Black Sea, four in the far western Black Sea area and two in the west central area offshore from a small vacation town, Akcakoca. The Akcakoca #1 and #2 wells had been drilled in the mid-1970′s designed to test Mesozoic and Cenozoic sediments seen onshore in outcrops and the subsurface. Early seismic had indicated the presence of sizable structures formed by compressional tectonics bounded by trust faults. The Akcakoca #1 well encountered gas shows in Eocene clastics from 1000m to 1400m and tested 3.25mmcfpd during an open-hole DST. The Akcakoca #2 well encountered gas shows but no tests were run. In 2000 Madison Oil Turkey, later merged with Toreador Resources, acquired a 962,000 acre permit that contained the Akcakoca wells. Utilizing existing seismic and the original wells Toreador explorationists determined that potential existed for a significant accumulation. A conventional 2-D seismic survey and follow-up high resolution 2-D surveys enabled geophysics to map velocity anomalies that could be tied to the 1970′s wells. In 2004 the Ayazli #1 wildcat was drilled on a thrusted anticline 3 km south of the original Akcakoca #1 well. This well tested approximately 12.0mmcfgpd from four Eocene age sands. Drilling over the next two and a half years saw the exploration group drill 12 successful well out of 14 and initiate the first gas production in the Turkish Black Sea. This paper will review the geology and geophysics that went into this effort.
Debunking the Myths of Crimean Geology The Crimea Mountains located in the southernmost part of Crimea Peninsula in southern Ukraine hold keys to the Black Sea understanding as the coastline of Crimean Peninsula spans both Western and Eastern Black Sea. At least two myths of the regional stratigraphy might be debunked. Myth 1: Tauric Group is not Triassic-Early Jurassic in age. Based on published palaeontological data (Ammonites) it is likely the Tauric Group to be younger, the most probably Aptian- Early-Mid Albian in age. It means that the compressive event affected basins in the Crimea region at the end of Albian, not Middle Jurassic. Myth 2: The flysch and conglomerate successions widely developed on eastern Crimea and commonly referred to the Upper Jurassic are Tertiary in age as it might be concluded based on published palaeontological (foraminifera) data. It means the volume of clastics shed from the Crimea Mountains during the Tertiary uplift seems to have been significant. Late Jurassic to Early Cretaceous successions are incorporated in two major thrust sheets, named structurally descending as Yayla thrust and Tauric thrust. Yayla thrust is composed mostly of shallow marine carbonates of Late Jurassic-Neocomian age. Tauric thrust consists of Tauric flysch succession and equivalent siliciclastic deposits of Aptian – Early-Mid Albian age. Both of these thrust sheets were transported northward probably during the Late Albian pulse and sealed by post-tectonic cover of Cenomanian to Late Eocene sediments. The Crimea region was tectonically uplifted and eroded after Late Eocene.
The Tertiary Kamtchia Fluvio-Estuary-Fan System of Eastern Bulgaria OMV Bulgaria is holding the “Varna Deep Sea” Exploration license in the near offshore from the city of Varna in Eastern Bulgaria. The block covers a large Tertiary fan system sourced from the Balkanide and Carpathian mountains. The tectonically active Hinterland provided during Eocene to Miocene a vast amount of siliciclastics from eroded crystalline and metamorphic rocks. These sediments were deposited into alluvial plains and alluvial fan aprons during relative high-stands and periods of tectonic quiescence. Relative low-stands produced massive erosion of this detritus which has been funneled through a pronounced Paleo-valley system into the deep sea. This paleovalley system spans over large parts of the Paleogene and Neogene. Two major sequence boundaries have been identified along with several minor unconformities. Today the “Paleo Kamtchia Incised Valley” forms an impressive geomorphologic feature in the landscape south of Varna. Recent geological fieldwork over the last 3 years revealed the sedimentary history from the Eocene to the Pliocene. Field evidence for this clastic system includes fluvial, tidal and estuary sedimentary environments. This long living system of the Paleo Kamtchia came to an end when the Danube River finally broke through the Carpathians during early Quaternary. After this event the Danube captured the drainage area of the Paleo Kamtchia reducing the Kamtchia River system to a creek of minor importance. 3D seismic data acquired in 2006 reveals a pronounced and complex deepwater fan system connected to this “Paleo Kamtchia Incised Valley”. This fan system opens up a new play in the Bulgarian Black Sea similar to that which has been successfully chased by Explorationist’s worldwide over the past 20 years.
The Moesian Platform: a Critical Piece in the Tectonic Puzzle of the Black Sea Region Based on recent results on the structure of the Moesian Platform and the Bohemian Massif segments of the European continental margin, a new model of the evolution of these passive margins is outlined. The Moesian Platform is interpreted as the upper plate, conjugate margin of the Bohemian segment of the European margin, rifted and drifted away during the Middle and Late Jurassic. Moesia, as a new microplate, was separated from the European margin at about the end of the Bathonian and started to drift towards the SE. There are no constraints on the rate of the drifting but by the Aptian Moesia should have reached its present-day position, at least 600 km to the SE from its original position. The direction of drifting can be deduced from the geometry of the major faults to the NE from the present-day Moesian Platform, in the broader Tornquist-Tesseyre fault zone, for example the Peceneaga-Camena fault bounding the Dobrogea orogenic belt. To the SW, the northeastern edge of the Bohemian Spur projecting below the Pannonian Basin is mappable by reflection seismic data providing an additional geometric constraint for the separation of Moesia from Europe. The correct reconstruction of the pre-Jurassic position of the Moesian Platform has important implications for the paleogeography of the Black Sea prior to its opening. For example, the Triassic rift system of Dobrogea in Romania can be directly correlated with the Strandzha rift sequence in southernmost Bulgaria offering a much simpler paleogeographic scenario than previously thought.
The Geological History of the Istria ‘Depression’, Offshore Romania: Tectonic Controls on Second Order Sequence Architecture The Istria ‘Depression’ or trough of offshore Romania, lies at the intersection of the trans-European, Tornquist-Teisseyre ‘Zone’ and the Black Sea back arc basin, just outboard of the East Carpathian orogenic welt. It experienced an extraordinary polyphase history of subsidence, sedimentation and dramatic sediment evacuation during the late Mesozoic and Tertiary, reflecting the interplay between these three tectonic domains. It first developed as a trans-tensional rift in the Triassic- Jurassic to be compressed and deformed during the (?)end-Jurassic Cimmerian orogeny. Residual topography was filled by a west-facing continental clastic-evaporite sequence during the Neocomian. This was terminated by uplift and doming associated with Apto-Albian rifting and back-arc spreading in the western Black Sea. Post break-up subsidence and tilting of the Black Sea rift margin, led to easterly evacuation of its early Cretaceous sedimentary fill by gravity-driven mass wastage. The margin was subsequently transgressed from the east with deposition first confined within the open Istria trough and later expanding out onto the bounding highs. By the end of the Cretaceous, it had been entirely buried, only to be partially evacuated once more in the early Palaeocene and again quite spectacularly during the (?)late Eocene. The deeply incised canyon formed at that time, was rapidly filled by Oligocene-Miocene sediments, but late Miocene (Messinian?) draw-down of the Black Sea basin was reflected by yet a third period of erosional incision. Continental margin outbuilding followed during the Plio-Pleistocene with deposition of several rapidly prograding wedges. This was interrupted by a major gravity slide event and several phases of shelf-margin canyon incision and late phase of shelf margin listric faulting, reflecting the final docking of the Carpathian orogen.
Oil and Gas Prospects of the Ukrainian Part of the Western Black Sea Eight gas-condensate commercial fields have been discovered within the Odessa shelf (western part of the Ukrainian Black Sea) during last three decades. The success factor of drilling is 0.5. The productive horizons are located in Upper Cretaceous, Palaeocene, Eocene, Oligocene and Lower Miocene sequences. Present-day exploration activity is focused on inverted structural highs within shallow water area (350 sq. km) in Tertiary and older sediments exist further to the east within Sorokin Trough and Andrusov Ridge. In the easternmost part of the Ukrainian Black Sea a number of high-amplitude anticlines has been mapped in shallow water depth and a huge Mesozoic structure of 400 sq. km in deep water depth (150-700 m). Eocene, Oligocene and Miocene sediments are considered as source rocks with good generative potential for hydrocarbons. There are strong direct hydrocarbon indicators on seismic data. According to expert appraisal, each major lead formed within Upper Mesozoic-Cenozoic section in water depths of 100 m to 2000 m has an area of several hundred sq. km, with vertical closure of hundreds of meters, and has the potential to contain hundred million barrels of recoverable hydrocarbons. The drilling of Subbotina well up to 4300 m has confirmed the high oil and gas potential of Kerch shelf. Plenty of oil and gas reservoirs were determined along the section of the well. Some of them were tested in the lower part of Oligocene sequence with successful result and commercial oil inflow.
The Tectonic Ecology of the Black Sea The Black Sea formed within a complicated area. It had two orogenic collages plastered against each other and fragments of one Gondwana-Land bound continental margin orogen: the Scythides, and the two parts of the Cimmerides. It began opening as a consequence of Alpide subduction of Neo-Tethyan ocean floor in the Aptian-Albian interval and at least in its eastern part, clearly split a continental margin arc. Eastwards it clearly did not connect with the earlier Flysch trough of the Greater Caucasus and neither did it have any relation to the ongoing Cimmeride shortening as late as the Nish-Trojan trough formation. It disrupted a pre-existing fabric, but it is remarkable that the Andrusov Ridge exactly parallels the old Scythide/Cimmeride fabric of en-echelon arc segments. It evolved as a marginal basin of Japan-Sea type and even in its history of rear-arc shortening it greatly resembles the present structure of the Japan Sea. After the Miocene Arabia/Eurasia final collision, Black Sea began shortening as far east as Zonguuldak. West of there it was extending north-south in unison with Bulgaria, Macedonia and Greece. It is remarkable how ‘continental’ its behaviour is. We compare this with that of the Tarim Basin and suggest that the Tarim is perhaps a palaeo-Black Sea.
Geological History and Hydrocarbon Potential of the Eastern Black Sea Region The Eastern Black Sea Basin originated as a back-arc basin during the Cretaceous times. Both the Western and Eastern Black Sea basins have been opened nearly simultaneously during Cenomanian to Coniacian times. Shatsky Ridge was a carbonate platform and zone of pinnacle-type reefs during the Late Jurassic. It was a platformal area since the Cretaceous. The Tuapse, Guria and Sorokin basins originated at the Eocene-Oligocene transition as a flexural foredeep basins. Shatsky Ridge was affected by flexural tectonics also at those times. Shatsky Ridge has a Miocene river system. Since Pliocene only Shatsky ridge was subsided up to 2 km simultaneously with main folding event in the Tuaspe Basin. Hydrocarbon potential of the Shatsky Ridge, Tuapse Basin and Sorokin Basin is connected with: (1) Late Jurassic carbonate platform and system of large pinnacle-type reefs: (2) Possible Paleocene bioclastic limestones; (3) possible Eocene nummulite limestones; (4) possible Oligocene turbitites with sandstone bodies; (5) Miocene river system; (6) Miocene and Pliocene horizons of sandstones.
The Impact of Recent Data on the Interpretation of the Geologic Evolution and Petroleum System of the Eastern Black Sea Basin, Offshore Georgia The genesis and sediment-fill history of the Eastern Black Sea Basin, offshore Georgia has been largely understudied with little new data being acquired since the Soviet Era. However, recent data acquired demonstrate the existence of a Tertiary petroleum system. The Oligo-Miocene Maykop Formation is a widespread source rock that extends from Romania to Turkmenistan. It has been identified as the source of the hydrocarbons in the giant fields of the South Caspian and the accumulations in both the western and eastern onshore basins in Georgia. In addition, oils collected and analyzed from active seeps offshore Georgia, directly above mapped structural culminations, confirms the presence of a generative Maykop in the Eastern Black Sea Basin. Offshore Georgia can be subdivided into three tectonic provinces, one of which is characterised by high-amplitude anticlines that strike in a southwest-northeast direction as a result of shortening from the Middle Miocene to present day. These fold and thrust anticlines range from classic box folds to overturned folds, with a common decollment within the Maykop. The primary reservoir sands are believed to be of Middle Miocene age, and based on 3D seismic data, the sandstones were deposited in deepwater channel-levee systems that originated from the north. Late Miocene to present day depositional systems have a south-easterly provenance of volcanic/lithic origins. In 2005, the first deepwater well in the Eastern Black Sea Basin was drilled offshore Turkey but did not penetrate the northerly-sourced reservoir system. Consequently, the offshore Georgia petroleum system, with billion barrel opportunities, remains untested.
Mud Volcanoes and Fluid Migration in the Sorokin Trough The Sorokin Trough forms structural depression along the south-eastern margin of the Crimean Peninsula. Compressive deformation affects the growth of diapiric ridges and facilitates fluid flow to the seafloor and the evolution of mud volcanoes above the diapirs. The main objective of a high-resolution multi-channel seismic survey carried out by Bremen University (Germany) was to study the evolution and formation of mud volcanoes correlated to gas/fluid migration and gas hydrates occurrences. We grouped mud volcanoes in the Sorokin Trough in three areas. The different geological setting influences the evolution of the individual mud volcanoes and hence their morphology. Collapsed depressions dominate in Area 1 in the western survey area. A 2.5D seismic data set was collected across the Sevastopol Mud Volcano representing a typical collapsed depression located above a complex diapiric structure with two ridges. Bright Spots in direct vicinity of the conduit of the mud volcano probably mark the base of the gas hydrate stability zone. We postulate that overpressured fluids initiated an explosive eruption generating the collapsed depression of the Sevastopol mud volcano and subsequent mud extrusions formed cones within the depression. The homogeneous fan deposits of the Palaeo Don-Kuban Fan in the central and eastern Sorokin Trough are characterized by increased permeability resulting in quiet effusive mud extrusions in Areas 2 and 3. Mud volcanoes in the central Area 2 reach enormous dimensions with diameters up to 2000 m and heights of about 100 m where faults with large offsets allow high mud flow rates.
Geology and Petroleum Potential of the Shatsky Ridge (Black Sea) The Shatsky Ridge is an anticline structure that is comprised of the Upper Mesozoic-Paleogene rocks. Anticlinels have dimensions up to 66 x 18 km. It lies mainly at water depth about 2 km and extends from the Georgia coast to the Mountain Crimea (Ukraine). The goal of this work was to research perspective of Shatsky Ridge. Seismic and magnetic data have contributed to the recognition of main geological features. There are no wells drilled within the ridge, and the analog data from the Western Georgia and Crimea were used for lithology and reservoir prediction. The lowest sequence consists of the Low Jurassic thick black shales, deposited on the top of Paleozoic basement. Magnetic anomalies caused most likely by the Middle Jurassic gabbro intrusions. Upper Jurassic-Eocene section consists of mainly carbonate rocks. This section contains the reservoir quality rocks. Limestone porosity varies between 5 – 20 %, range of permeability is 10 – 40 md. Presence of Upper Jurassic reefs, Eocene nummulitic limestone points to a shallow marine sedimentation. These reservoirs are overlain by marine thick shale seals of the Oligocene-Quaternary ages. A potential of source rocks belongs probably to the Jurassic and the Low Cretaceous rocks. It is also possible that hydrocarbons could migrate into Mesozoic reservoirs from sources rock of the Eocene and the Maikop succession of the adjacent troughs. Mud volcanoes and seismic anomalies “bright spot” indicate hydrocarbon accumulations in the sedimentary cover of the Shatsky Ridge. Reservoir prediction, sizes of anticlines and hydrocarbon seeps make conclude that the Shatsky Ridge may contains undrilled prospects and form a basis for its future exploration.
Effects of Tectonics on Deposition in the Balkans of Eastern Bulgaria The E Balkans geometry during Paleocene-Recent was characterized by a southeastward plunge toward the Western Black Sea, caused by: 1) a combination of eastward-thinning continental crust in the west, and oceanic crust in the east; 2) post-rift thermal subsidence of the continental crust; 3) buttressing against the Moesian Platform in the west and no buttressing in the east; and 4) northeastward advance of the thrustbelt. The eastward-fading uplift and buttressing are evidenced by: 1) eastward decreasing amount of shortening along constructed profiles, yielding 30km, 10.5km, 11km and 4km from west to east; 2) eastward trend of more complete stratigraphic sections and shallower erosional levels; and 3) eastward increase in décollement depths, being 3.7km, 3.8km, 9.5-13.5km and 12.3-14.1km. The last thrusting age is progressively older toward the east from Middle Eocene through Late Eocene to Late Eocene/Oligocene. Onshore thrustbelt, which was significantly affected by buttressing against the Moesian Platform, exhibits thrusting followed by Late Eocene gravitational collapse, Oligocene quiescence and Neogene extension. The offshore thrustbelt exhibits thrusting followed by Oligocene-Neogene extension. A Paleocene-Middle Eocene piggyback basin formed in the onshore portion of the thrustbelt, centered in the East Balkan Zone, with a southeastward plunging axis, which migrated northeastward with basin shortening and filling.
Sedimentology And Timing Of Hydrocarbon-seepage (Lower Eocene, Varna, Bulgaria) In the Pobiti Kamani area (Varna, NE Bulgaria), Lower Eocene sandy sediments contain several clusters of up to 8m high calcite-cemented chimney structures. ?13C values as low as -43‰ V-PDB indicate a hydrocarbon-seepage related origin. The depositional sequence of the shallow marine platform sediments is characterized by several cemented stratal surfaces which are cross cut by chimney structures. In this contribution, the origin of the cemented surfaces is addressed based on sedimentological, petrographical and stable isotope geochemical data and the implications with respect to the timing of hydrocarbon seepage are evaluated. Grain size measurements in two continuous vertical sections allow to distinguish two depositional sequences. Transgressive (TS) and maximum flooding (MFS) surfaces are characterized by extensive calcite cementation, thus indicating a sequence stratigraphical control on cementation. Different cement-types have been recognized. The bulk stable isotope signature of these cements indicates precipitation from Lower Eocene marine pore fluids, affected by later meteoric resetting. ?13C depletions of the dominant pore cementing “mosaic” cement as low as -20.6‰ V-PDB however supports also a pre-compactional influence of hydrocarbon-seepage which decreases within m-distance from chimney clusters. The MFS near the top of the Dikilitash Formation is partly cemented by transparent poikilotopic calcite in keystone-type vugs and in interparticular porosity. Its very early diagenetic origin and ?13C depletion (-16‰ V-PDB) suggest that hydrocarbon-bearing fluids percolated through the sandy sediments near the seafloor at the end of ??the Upper Ypresian. Other coarse-grained,13C depleted (-26‰ V-PDB) concretionary horizons likely resulted from post-sedimentary lateral migration of seepage fluids.
Stig-Arne Kristoffersen has a background as civil engineer and geoscientist. He has worked mainly within the oil and gas industry from the mid 1980s. He has written a few fictional novels as well as being the author of some professional litterature within oil and gas sector, he act as a writer to various web sites.
www.ec-ba.com
sak@ec-ba.com
Stig-Arne Kristoffersen has a background as civil engineer and geoscientist. He has worked mainly within the oil and gas industry from the mid 1980s. He has written a few fictional novels as well as being the author of some professional litterature within oil and gas sector, he act as a writer to various web sites.
Exxon Mobil (NYSE:XOM) Vice President of Public and Government Affairs Ken Cohen said that BP’s oil spill in the Gulf of Mexico will influence the debate over offshore drilling in Washington. Exxon confirmed that it was among the oil and gas companies that received a request from the Obama administration to pool resources on ways to deal with the spill. The oil company said it sent its own experts on deep water drilling and spill control to assist with the effort by BP. Video Rating: 4 / 5
Oil Investors Confident in New Drilling Opportunity
New drilling for oil investment opportunities
(Vocus) April 14, 2010
Liquid gold surges just below the surface of Navarro County, Texas, bringing heavy investors to the Lone Star State. Exxon Mobil Production Company has already announced plans to begin drilling sometime during the first quarter of 2010, and other companies are following suit. Just a hundred miles away – a mere trickle in terms of underground oil reservoirs – Max Tech Oil likewise plans to tap the resource, a plan that has investors smiling wide. The area, formerly owned by Exxon Mobil in the early 1920s, is speculated to have the equivalent of over forty million barrels of oil, enough substance to fuel over one million Texas households for an entire year. Max Tech Oil has acquired the IT Kent project from Black Gold International, taking exclusive control of the projectâs capitalization process. Max Tech is working through the capitalization process in conjunction with the field operation experience of Trinidad Oil and Gas Corporation, a bonded Texas oil and gas field operating company thereby providing a deep foundation of experience which the investors can be very confident.
Underground oil oceans are nothing new to Texas residents. The East Texas Oil Field, the stateâs oldest and largest reservoir, spans five counties, covering just over 140,000 acres. The area is just as rich in history as it is in oil, being home to over 30,000 historic and active wells. Outside of Alaska, the oil field is the largest of its kind in the United States, holding the number one spot for oil production since the 1930s. Everythingâs bigger in Texas, including the availability of a once labeled scarce natural resource.
Additionally, the IT Kent lease is part of the Powell Field, the second most prolific Woodbine Field in Eastern Texas. The fact that the reservoir is a Woodbine Field is yet another reason for investors to smile. Woodbine Fields are categorized by a gas-injection technology expected to increase the fieldâs life by about 25 years. Though the gas injection technologyâs impact various by project, it nonetheless represents a significant advantage over other projects because of the longevity it affords oil wells.
Projects like the IT Kent Lease are affected largely by a countryâs political landscape, and recent Obama Administration news has left a very positive impact. The Administrationâs lifting of the decades old ban on offshore drilling has the energy industry buzzing emphatically. Opportunity is being realized on macro and micro levels, with benefits shared by large-scale corporations and individual investors alike. For most, that benefit is the opportunity to prosper.
Benefits enjoyed by oil corporations trickle down to individual Americans as well, the lift on offshore drilling providing great opportunity for investment. According to the Wall Street Journal, offshore drilling companies like Diamond Offshore Drilling and Transocean have already seen an energetic 4% gain in the short time since the announcement was made. Other companies have likewise seen anxious investors push their numbers into the green, indicating substantial investor confidence.
With the capitalization of the IT Kent Lease Project underway, Max Tech Oil shares industry elation with the Presidentâs recent announcement, stating the news has investors eager to get involved. âWeâre very happy to see the Administration make decisions to strengthen energy production internally,â reports Max Tech Oil executive Michael Cohen. âWeâve seen President Obamaâs action have a ripple effect throughout the industry. Investor confidence is up. Weâre even seeing peaked interest in our oil and gas projects on land.â
With unparalleled attention to individual investors, Max Techâs mission is to seek and purchase undervalued oil and gas properties, as exemplified by their recent acquisition of the IT Kent Lease project in Texas. With building confidence in the oil and gas industry and the current Administrationâs aim to increase domestic oil production, speculative ventures like those hosted by Max Tech are expected to earn considerable returns for investors. The company utilizes three-dimensional Seismic Imaging to determine projects with low risk and high return for investors. As an independent oil and gas company, Max Tech is in an ideal position to capitalize on rising commodity prices and the global demand for oil and gas reserves. The company gains valuable insight from state-of-the-art technology and their experienced team of geologists. The Max Tech Oil management team continues to develop and fund successful ventures for individual investor partners, with whom the company maintains excellent long-term relationships. Visit Max Tech Oil’s website to learn more about this project at http://www.MaxTechOil.com.
CalEnergy Places Order for Super Duplex 2507 Stainless Steel for Geothermal Operations
Lakeland, FL (PRWEB) August 27, 2006
When US-based CalEnergy needed an economical alternative to Inconel 625 for its geothermal operations in Calipatria, California, PM International Suppliers, LLC was asked to provided support for their selection of a mill able to meet their severe Super Duplex 2507 needs.
The brine CalEnergy uses to generate geothermal power, enough power to meet the energy needs of around 340,000 homes, is one of the worlds most hostile. With chloride levels between 106,000 – 167,000 ppm, pH levels between 4.5 and 5.7, and temperatures from 550° to 600° F, the demands on the materials used are extreme. The second part of the geothermal process transports this brine through over 33,000 feet of production pipes. A 340-ft trial production pipeline in 2507 was installed and after 13 months of production, no indication of stress corrosion, cracking or pitting was observed.
According to CalEnergy, the Super Duplex 2507 installation will be the largest ever in the USA.
PM International Suppliers, LLC knew the mill selection was vital to the success of a Super Duplex installation of this size and specification. PMIS identified H. Butting GmbH & Co in Germany as the best solution for CalEnergyâs stringent technical requirements. PMIS, along with Buttingâs sales office in Canada, supported CalEnergy throughout their trial. Consequently, CalEnergy recently placed their initial order for 30â Super Duplex 2507 pipe with Butting.
PM International will continue to provide support to both CalEnergy and Butting throughout the installation process which is expected to begin January 2008.
About PM:
PM International Suppliers, LLC, located in Lakeland, Florida, specializes in pipe, valves, fittings and specialty application products for the offshore petrochemicals industry. With many years in the industry, their technical expertise has solved many application challenges.
Other major Super Duplex (UNS S32750 & S32760) project references include Shellâs Ursa Princess Waterflood Project, Petrobrasâ FPSO P53, Chevronâs Tahiti Project, ExxonMobilâs Kizomba C Development.
ExxonMobil to drill off Vietnam
US oil giant ExxonMobil will begin exploratory drilling off central Vietnam in late April, official media reported Thursday, potentially angering China, which has objected to similar plans in the past. Read more on Philippine Daily Inquirer
Exxonmobil to Start Exploration Offshore Vietnam Next Month
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ExxonMobil to start exploration in Viet Nam
American oil and gas giant ExxonMobil will start its first exploratory drilling off the central coast of Viet Nam late next month. The decision was agreed upon Wednesday (March 30) between leaders of ….. Read more on Asia News Network
In August, 2004, Stephan Zimmermann released pre-publication copies of his new political thriller, The Christmas Strike. The book became available world-wide through most booksellers in January this year. In the novel, Zimmermann posits the scenario of a major struggle for US control of oil resources offshore Sao Tome and Principe, an island nation off the coast of Nigeria.
Much of the premise is based on George W. Bush’s first-term announcement that he intended to derive more than twenty-five percent of all US crude oil imports from West Africa.
Last week, Reuters released the announcement that Chevron/Texaco and Exxon/Mobil had signed a definitive contract for exploration and development rights in the small, volatile country of Sao Tome and Principe in West Africa.
At the same time, Murphy Oil, an Arkansas (US) based oil exploration company, struck oil at more than four thousand foot depths in Congolese offshore waters during the same week.
In commenting on the news, Zimmermann stated “I devoted considerable research time before releasing The Christmas Strike and am not at all surprised at the developments. I hope that the rest of the novel falls short of my dire predictions. Based on my Congressional research, I predict the establishment of a US naval facility in Sao Tome within eighteen months, although State Department and Pentagon sources deny any such plans. However, joint US-British naval maneuvers have already been conducted in the Atlantic waters not far from the offshore oil fields.”
Zimmermann is a professor of international business and economics at Webster University in Little Rock.
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