Page 74: of Offshore Engineer Magazine (May/Jun 2015)

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(images) Hebron 1, Hebron 2:

EyebrowProduction

ExxonMobil expects its 52-well Hebron development project ofshore Newfoundland to bring in frst oil in 2017.

Photos from ExxonMobil.

Arabia in total oil reserves, active heavy oil-producing countries also include the

US (California), Mexico, Brazil, Russia,

Indonesia, China, Colombia, Ecuador, Iraq,

Kuwait, Saudi Arabia, Chad and Angola,” reports the company.

For now, many of the major exploration and production companies are continuing

Offshore heavy oil to eke out profts as they work offshore heavy oil exploration and developments.

At a glance:

Top 15 heavy oil markets

Brazil (includes onshore and ofshore) economics

In February 2015, Petrobras discovered

BrazilIndonesiaOman

Jeannie Stell looks at ofshore new oil accumulations in offshore conces- profts, unlike their peer publically held

CanadaIranRussia sion BM-C-35 (exploratory block C-M- companies. Heavy oil, typically defned heavy oil development

ChinaIraq Saudi Arabia 535) found in the Campos Basin post-salt as <22° gravity API, represents a valu- economics with an eye on the layer (OE: March 2015). The discovery able resource, but defning the potential

ColombiaKuwait USA was made while drilling well 1-BRSA- proves to be problematic as total-resource current low-price environment.

EcuadorMexicoVenezuela 1289-RJS, also known as 1-RJS-737, and reports vary greatly. According to

Source: Visiongain informally known as Basilisco. The well

Chevron, heavy oil comprises about 50% ven as onshore unconventional of known oil resources but represents just reserves of lighter crude oils dwindle and was drilled at a water depth of 2214m and hydrocarbon developments one in 10 bbl of production. New global the rate of new discoveries decreases, oil about 143km from the city of Armação

E fall victim to the downward investment to develop this 8 trillion bbl and gas companies are increasingly look- dos Búzios on the coast of Rio de Janeiro. spiral of oil and gas prices, offshore resource could double production output ing to alternative hydrocarbon sources to

Heavy oil has been found at 3190m and heavy oil developments continue to by 2025, reports the company. According plug the gap,” reports Robin Ray, energy at 3521m. The consortium of concession prove promising for signifcant group of to estimates by London-based Visiongain, analyst for VisionGain. “Heavy oil is one

BM-C-35, operated by Petrobras (65% exploration and production companies. a business-intelligence provider and of those sources.”Such heavy oil plays interest) in partnership with BP (35%),

This is especially true for state-owned trading partner with the US Federal offer signifcant growth and investment are testing the extension of the discoveries entities unconcerned with sustainable Government, on average up to 20% of the opportunities as international companies and the concession’s exploratory potential.

join to form partnerships for develop- world’s remaining oil could be sourced revenues. Although the cost of explor- Also, Brazil’s Parque das Conchas ment. In the long run, as commodity from onshore and offshore heavy oil ing and developing offshore heavy oil project, a Shell development, is continu- prices recover, energy demand grows deposits. The company predicts that the is high due to the diffculty of produc- ing and is notable as the frst project feld and major conventional oil discoveries global market could reach more than ing, transporting and refning heavy oil, development incorporating subsea oil and become increasingly rare, the economics US$50 billion this year, with production major international energy companies gas separation and subsea pumping for of heavy oil should steadily improve. reaching more than 6 MMb/d. The major- continue to develop heavy oil felds in an the company. During two development Today, more than 30 countries are ity of the billion-dollar price tags will be effort to replace reserves. For example, phases, the felds were developed by 13 known to possess recoverable heavy oil spent for cold heavy oil projects because despite the current crude price drop, wells tied-back to the centrally located reserves, according to Halliburton. “Led many of the world’s largest heavy oil China continues to develop its heavy oil Espirito Santo FPSO, moored in 5840ft by Canada and Venezuela (Canada’s heavy markets have well-established cold heavy reserves because its state-owned compa- of water. The frst phase developed four oil deposits rank second only to Saudi oil projects, states the company.“As nies are not particularly concerned with felds, and the second phase will develop

May 2015 | OE oedigital.com 76 076_OE0515_ProdOps1_Jeannie.indd 76 4/20/15 4:04 PM