Oil production in 5 countries
– exploration in 10
Maersk Oil is active in almost all parts of the world at present producing some 750,000 oil equivalents per day in four countries of which Denmark and Qatar account for the majority, while fields in e.g. Algeria are being produced, too. At present exploration takes place in a number of licences in another 10 countries.
300,000 barrels per day in Denmark
In the Danish sector Maersk Oil is the operator of Dansk Undergrunds Consortium owned by Shell (46%), A.P.Moller-Maersk (39%) and Chevron (15%). A.P.Moller-Maersk was awarded its first concession in 1962, and discovered oil in the North Sea four years later.
Maersk Oil since 1972 has produced oil and since 1984 exported gas. Since 1992 production of oil and gas from the Danish North Sea has exceeded Danish consumption. Production takes place from 14 oil and gas fields concentrated in an area some 200 km west of Esbjerg.
During the latest years Maersk Oil’s daily production of oil has amounted to some 300,000 b/d (40,000 tons), and of gas to 25 million m3. Thereby DUC accounts for 95% of the gas and 85% of the oil produced in the Danish area.
Maersk Oil is employing some 1,200 persons in Denmark of which some 450 are working offshore. Production takes place from 47 platforms connected by a total of 700 km pipelines to the five centres, Dan, Gorm, Tyra, Halfdan and Harald.
At present Halfdan, Tyra SouthEast, Valdemar, Dan, Harald and Kraka are being extended at a total cost of some 2 billion US$ in order to increase production by some 100 million barrels of oil and 15 billion m3 of natural gas.
The Valdemar field contains large amounts of oil – but they are extremely
difficult to produce.
At present the challenges for Maersk Oil in the Danish sector are to make the marginal fields commercial and improve production from mature fields where production has culminated. The strategy calls for producing as much as possible of the resources in place before commercial reasons makes it more prudent to plug and abandon the field. Till now none of the DUC-fields have been taken out of commission, and within a few years production from 3-4 marginal fields are expected to start up using unmanned platforms of the STAR-type developed by Maersk Oil for exactly this purpose.
Halfdan topping production
The Halfdan-field starting production in 1999 and still being developed has turned into one of the most productive fields of the DUC. Halfdan consists of Halfdan, Sif and Igor containing hydrocarbons in several strata. The south-western part of the field primary contains oil, while the northern and eastern parts primarily contain gas. At present design, purchasing and production of infrastructure is taking place for the development of the north-eastern part of the field.
Production takes place using the FAST-technique developed by Maersk Oil for improving production from horizontal wells. Halfdan at present produces some 100,000 oil equivalents per day providing a third of the production of the DUC. Development of the production at Halfdan is one of the major reasons for DUC having been able to maintain a reasonably stable production of some 300,000 b/d throughout the latest five years when production from some of the older fields started to dwindle.
Thanks to its horizontal technology Maersk Oil succeeded in making an existing
discovery commercial, and production from Al Shaheen started up in 1994.
New production technique at Valdemar
Valdemar is another of the fields being developed and an example of how an innovative production strategy has made even hard accessible layers commercial. The reservoirs of Valdemar contain some of the largest amounts of oil-in-place in the Danish area, but production in the Lower Chalk strata is extremely difficult. Lately, increased knowledge of the characteristics of the reservoir and new production technology have made it possible to plan a commercial strategy for production.
Production started up in 1993 from an unmanned STAR-platform, Valdemar AA, and oil and gas were piped to Tyra East for treatment. In 2005 another STAR platform, Valdemar AB, was installed and started production in 2006. Simultaneously, new production facilities were separating oil from gas. All the gas from Valdemar is now being piped to final treatment at Tyra West, while the oil is still being treated at Tyra East.
Mid 2007 the Valdemar field will be further developed when production starts up from a third STAR platform, Valdemar BA, installed in 2006 some 4 km from the other facilities. Production from here will merge with gas from Roar and be send for treatment via the existing pipelines to Tyra East.
Doubling of production in Qatar
Maersk Oil’s activities in Qatar started up in 1992 when entering into an agreement for exploration and production sharing with government-owned Qatar Petroleum from Block 5 in a 2,000 km² area some 80 km from the coast. Thanks to its horizontal technology Maersk Oil succeeded in making an existing discovery commercial, and production from Al Shareen started up in 1994. Later, development in 1996 and 2001 gradually increased production to some 250,000 b/d. Maersk Oil has 500 employees in Qatar.
In 2004 Maersk Oil entered into an additional agreement comprising a smaller area north of Block 5 and agreed on an ambitious plan for extension. In 2009, when completed, the plan should result in a doubling of production to more than 500,000 b/d.
During the next couple of years another 18 platforms will be installed at three platform complexes connected via subsea pipelines. The plan calls for drilling more than 160 production and injection wells. Total investments will amount to more than 5 billion US$. At present four drilling rigs are operating in the area, and another two are on their way. Maersk Oil at the moment is having platforms built at yards in Abu Dhabi, Dubai and the UK, and more are planned.
In addition to this the development plan comprises construction and operation of a plant for processing and supply of gas to Qatar Petroleum, while the oil is planned sold via floating storage vessels.
Implementation of this plan is expected to make Qatar the most important production area for Maersk Oil.
Maersk Oil has been active in Algeria since 1990.
Acquisitions and new licences in Great Britain
After Maersk Oil in 2005 bought the rights from Kerr-McGee, Great Britain has become the third most important area of acti-vity. Taking over these rights gave Maersk Oil a share in 13 oil and gas fields of which nine are producing. The rights are shared with various partners, and Maersk Oil is the operator in five of the nine producing fields. Maersk Oil’s share of the production from the nine fields is expected to amount to 40,000-50,000 b/d to increase at the beginning of this year when production of oil from the Dumbarton starts up.
In addition to the 13 oil and gas fields Maersk Oil’s acquisition comprised a number of exploration licences which in addition to the five licences from the 23. concession round in 2005 boosted the total number of licences with Maersk Oil participation to more than 60. In addition to this Maersk Oil has applied for more exploration licences in the current 24. round. Half of the British licences has Maersk Oil as the operator, and the company has more than 600 employees in its office in Aberdeen and offshore.
Two producing fields in Kazakhstan
Maersk Oil has been active in Kazakhstan since 2000 when it got the rights for the Saigaz field together with Vitol. As Maersk Oil has a 60% share it has taken over the operatorship, and the field has been producing since 2002. Vitol is still a 40% partner. A further development has increased production to 5,000 b/d.
In 2002 Maersk Oil extended its activities in the country by taking over 60% of the onshore field, Dunga, close to the Caspian Sea. This field has been producing since the end of the 60es, and Maersk Oil has partnered with Oman Oil (20%) and Partex (20%). As the operator Maersk Oil is considering the potential for development of the field at present producing some 1,500 b/d.
Part of the Algerian Sahara-oil
In the Algerian sector of the Sahara Maersk Oil has interests in 4 blocks awarded in 1990 and 2003, respectively. In 3 of the blocks Sonatrach has a 51% share and 24.5% Anadarco is the operator, while ENI and Maersk Oil each are having a 12.5% share. The last block only seeing exploration has 50% Anadarco as its operator, while Sonatrach and Maersk Oil each have a 25% share.
Till now the consortium has made 15 commercial discoveries, and total production amounts to 450,000 b/d of which Maersk Oil has a share of some 30,000 barrels. Exploration and production activities are still taking place.
In deep water in the US
In 2006 Maersk Oil America bought a third of Hess’s interests in 93 exploration licences comprising an area of 2,000 km² in the western part of the Mexican Gulf. It is an area of water depths of down to 1,500 meters, and the co-operation with Hess, still owning two thirds of the shares, will give Maersk Oil experience in deep water operations.
The joint venture company is carrying out a comprehensive exploration programme at present drilling their first well. Maersk Oil recently opened an office in Houston.
The Janice field is a part of Maersk Oil’s activities in the UK.
… And Angola
During the next four years Maersk Oil as the operator will carry out an exploration programme compiling and evaluating seismics and probably drilling exploration wells in two offshore blocks, 8 and 23, in an area of the Atlantic south of the Angolan capital, Luanda. The water depths are 500 and 1,500 meters, respectively, offering Maersk Oil practical experience in deep water operations. Maersk Oil has a share of 50% of a consortium in November 2006 agreeing on production sharing of the two blocks. The other partners are Occidental Petroleum (30%) and Sonangol (20%).
Maersk Oil is already the operator for exploration of Block 16 situated 100 km from the coast in an area north of Luanda. The consortium in June 2005 agreeing on production sharing has Maersk Oil as its 50% share partner. Sonangol has 20%, Devon Energy 15% and Odebrecht 15%. The water depth varies from 200 to 1,500 meters.
Onshore in Columbia
Petrobras (60% and operator) and Maersk Oil (40%) in 2005 were awarded an exploration licence in the Tierra Negra area – some 100 km from Columbian capital, Bogota. The area covers some 1,111 km², and Petrobras at present is drilling the first well.
Offshore exploration in Southern Norway
In the Norwegian part of Central Graben in the North Sea Maersk Oil and Norsk Hydro (60% and operator) in 2003 were awarded an exploration licence for part of Block 2/5 and 2/6. Maersk Oil will take over operatorship for part of the exploration. In 2005 Maersk Oil was awarded 40% of the part of Block 2/4 where Norsk Hydro (40%) is the operator, and Wintershall has the remaining 20%.
In Block 1/5 bordering British sector Maersk Oil (60%) has bought the licence 018C comprising part of the Flyndre oil discovery.
In 2006 Maersk Oil applied for further exploration licen-ces in the Norwegian sector.
Major German licences
Together with its partners in the DUC – Shell (43.9%) and Chevron (26.7%) Maersk Oil (29.4%) was given operatorship of the exploration license 008/19 covering a 400 km2 area in Block B20 bordering to the Danish sector of the Central Graben. Till now Maersk Oil has drilled 5 wells.
In licence 001 – also in Block 20 – Maersk Oil has a 20% share, while 41% Wintershall is the operator. The other partners are RWE DEA (14%) and EWE (5%). It is agreed that if commercial discoveries are made in the chalk reservoirs Maersk Oil shall use its skill as the operator for development and production. Licence 001 covers an area of some 1,800 km2.
Offshore operator in Turkmenistan
Maersk Oil (80% share and operator) and Wintershall (20%) in 2002 agreed on production sharing of Block 11 and 12 in the Turkmenistani sector of the Caspian Sea. At present Maersk Oil is evaluating the seismic data from the area.
First well in Brazil
During the latest five years Maersk Oil has been awarded a share of five exploration licences in the Santos Basin and the operatorship of four of them. In 2001 Maersk Oil (55% and the operator) and Shell (45%) were awarded the licence in Block BM-S-15 south of Rio de Janeiro (675 km2) Four years later the two partners took over the somewhat larger neighbouring licence, BM-S-31, (Shell 55% and operator and Maersk Oil 45%)
In 2002 Maersk Oil (50%) was made the operator of the 1,046 km2 licence BM-S-29 south of São Paulo. Shell is a 50% partner. The following year Maersk Oil got the operatorship for two minor licenses further north. In BM-S-37 Maersk Oil (50%) is the operator, while Shell has the remaining 50%. In BM-S-30 Maersk Oil (60%) is the operator, too, and Petrobras has 40% of the shares. Just now Maersk Oil is compiling the seismic data and expecting to drill its first exploration well in the Santos Basin this year.
Seismics in Morocco
As the operator of a licence in the Tarfaya Shallows in the Atlantic off the coast of southern Morocco, Maersk Oil at present is gathering seismic data. In 2004 Maersk Oil got 75% shares of the licence covering an area of 15,000 km2, while the state-owned Moroccan oil company, ONHYM, keeps the remaining 25%.
Evaluation at Suriname
In November 2004 Maersk Oil signed a production sharing agreement with the state-owned oil company, Staatsoile, comprising Block 31. As a 100% shareowner and operator Maersk Oil has ended its collection of 2-D date and is now evaluating the results. The block covers 14,000 km2.
Two wells in Oman
Since 2004 Maersk Oil has had a 100% share of the Blocks 45 and 48 and as their operator drilled two wells. The two blocks cover 3,877 km2 of central Oman.
