CNOOC Ltd. announced Monday a “major” discovery in the Huizhou 19-6 oilfield in the South China Sea. Well HZ19-6-3 has raised the field’s proven in-place volumes to over 100 million metric tons of oil equivalent. During testing the discovery well produced 413 barrels of oil and 2.41 million cubic feet of natural gas a day. Drilled to 5,415 meters (17,765.75 feet), the well encountered 127 meters of oil and gas pay zones, the state-backed oil and gas exploration and production company said in a press release. Huizhou 19-6 sits in the eastern South China Sea at an average water depth of about 100 meters. “The main oil-bearing plays are Paleogene Enping Formation and Wenchang Formation, and the oil property is light crude”, said CNOOC Ltd., majority-owned by China National Offshore Oil Corp. (CNOOC). CNOOC Ltd. chief geologist Xu Changgui commented, “In recent years, CNOOC Limited has strengthened the research on exploration theory and technology of the deep and ultra-deep plays in the South China Sea, and breakthroughs have been achieved”. “This discovery has confirmed the largest integrated clastic oilfield in the northern South China Sea in terms of original oil in place, breaking the traditional theoretical understanding, and demonstrating the enormous exploration potential of deep and ultra-deep plays in high-temperature and highly active basins offshore China”, Xu added. CNOOC Ltd. chief executive Zhou Xinhuai noted, “Oilfields with hundred-million-ton oil in-place have been discovered in this area for two consecutive years, making it a new driver of the offshore oil and gas production growth”. HZ19-6-3 is the second discovery declared by CNOOC Ltd. this year, following WZ10-5-1Sa in the Weizhou 10-5 field. Drilled to a total depth of about 4,840 meters in an area with an average water depth of 37 meters, WZ10-5-1Sa showed a pay zone of 283 meters. During

A new blueprint to save the North Sea as an industrial base for the future warns the window of opportunity is “closing fast”. But experts behind the far-reaching report to government today say it is still possible to transform fortunes – if political leaders act quickly. Crucially, the findings make the case to maximise oil and gas now while building towards a future as a renewable powerhouse. “Unless governments act swiftly, there will be no transition,” the North Sea Transition Taskforce report warns. “The old North Sea will fade away, along with the skills of individuals and the entrepreneurial skills of businesses in the North Sea supply chain.” In a recipe to save thousands of jobs for the future in Aberdeen, the north-east and across the UK, the taskforce makes key demands including: Replace the offshore windfall tax with a “viable” regime before 2030. Set out a clear plan for continued oil and gas extraction. Push ahead with cash for offshore wind, carbon capture and hydrogen. The call for rapid action on carbon capture will delight north-east industry figures who piled pressure on the Labour government to green-light plans near Peterhead. The report, revealed on Sunday night, is now with the UK Government – and includes dire warnings if political leaders dither. It warns confidence is “draining” from the North Sea and brands government action so far as “opaque” . Part of the plan is a call to keep up domestic production of oil, regardless of the push towards “net zero” and more renewable sources. More oil – and renewables The taskforce wants a simpler planning system for new offshore projects. It asks for closer working with foreign neighbours on a North Sea grid to help energy flow. And it wants incentives for “green” hydrogen, along with a big push

Baker Hughes Co. has secured a multi-year contract with Dubai Petroleum Establishment (DPE), on behalf of Dubai Supply Authority (DUSUP), to provide integrated coiled-tubing drilling services for the Margham Gas storage project. The project aims to help ensure stability of energy supply in Dubai by strengthening the system’s ability to switch between natural gas and solar power, Baker Hughes said. Baker Hughes is already providing its Integrated Compressor Line (ICL) units for gas storage, injection, and export. “Baker Hughes has built a reputation as a leader in coiled-tubing drilling and mature assets solutions, and we bring a track record of success across the region to this important project”, Amerino Gatti, executive vice president of Oilfield Services & Equipment at Baker Hughes, said in a statement. “Our integrated solutions approach combines industry-leading technology and expertise across the energy value chain to help DPE scale up and develop reliable, secure, and lower-carbon power solutions for their country”. Baker Hughes will use a combined approach of coiled-tubing drilling and under-balanced drilling, incorporating its CoilTrak BHA system, to enhance underground gas storage projects. The company said the CoilTrak system’s ability to improve horizontal drilling navigation and maximize reservoir contact is essential to these operations. Days earlier Baker Hughes announced a multi-year fully integrated completions systems contract from Petrobras to optimize production across multiple deepwater fields. Baker Hughes said that through this agreement, Petrobras will utilize the SureCONTROL Premium interval control valve, which provides enhanced reliability in the high flow rates of Petrobras’ offshore fields. To contact the author, email [email protected] What do you think? We’d love to hear from you, join the conversation on the Rigzone Energy Network. The Rigzone Energy Network is a new social experience created for you and all energy professionals to Speak Up about our industry, share knowledge, connect with peers

Wood shares have plummeted further after a review of contracts from prior years identified “material weaknesses and failures” in the financial culture of the Aberdeen-headquartered firm, the company has revealed. The review of a number of “legacy lump sum turnkey” (LSTK) projects means Wood will not be able to file its fully year accounts as planned next month which will result in a temporary suspension of its shares. Wood shares dropped more than 30% in early trading as markets digested the investigation, which the firm commissioned last year. The  publication of the audit comes as the group is subject to fresh buyout approach from Dar Al-Handasah Consultants Shair and Partners, otherwise known as Sidara. The review means the firm has had to seek “retrospective waivers” on debt facilities up to the end of April as the revision of books over the last three years means the firm will have breached lending covenants. Nevertheless, Wood said there would be “no material impact” on its historic cash flow as a result of the review, nor does it “expect any material impact” on its ability to generate cash in the future. Weaknesses and failures The “weaknesses and failures” identified by Deloitte included “inappropriate management pressure” and “over-optimism and/or lack of evidence” in respect of accounting judgements. These “cultural failings” led to instances of information being “inappropriately withheld” and “unreliable information” being provided to Wood’s auditors. Wood said it “remains in discussions” with Lebanese-owned Sidara over possible cash offer for the group. Last year Wood rejected a bid worth $1.65 billion, representing an offer price of 205 pence per Wood share. It is thought any fresh bid from Sidara will be less than this. The bidder has until 17 April to announce a firm intention to make an offer for Wood. In addition to requiring a

Italian energy company Eni said it had been notified by US authorities that it can no longer be repaid for gas that it produces in Venezuela through oil supplies from state-owned PDVSA, as Washington exercises its international sanctions on the South American country.  “Eni continues its transparent engagement with US authorities on the matter to identify options for ensuring that non-sanctioned gas supplies, essential to the population, can be remunerated by PdVSA,” the company said in an emailed statement. “Eni always operates in full compliance with the international sanctions framework.” Foreign oil companies such as Eni and Spain’s Repsol that do a lot of business with the US are trying to not fall out of compliance with US and other international sanctions on Venezuela. The first administration of US President Donald Trump essentially banned US imports of oil from the country in 2019.  In recent years, the US Treasury Department had issued different permits to international oil and gas companies, including licenses, waivers or letters of comfort, to allow them to conduct various operations in Venezuela, such as exporting PDVSA’s oil, despite sanctions. Eni and Repsol had accepted oil cargoes from PDVSA to recoup debt the state-owned oil company owed them from investment in an off-shore gas joint venture Cardon IV and from natural gas sales. Cardon IV supplies around 30 percent of the country’s natural gas demand for both household and industrial needs. Now, Trump is squeezing Venezuela on two fronts as a way to pressure Venezuelan President Nicolas Maduro’s regime to accept the return of more migrants who fled to the US: He’s promising 25 percent tariffs on US imports of all goods from countries that buy Venezuelan oil, and he has also pulled Chevron Corp.’s license to drill and sell the nation’s crude. Other companies are impacted, including Global

EnergyPathways has published an update as it pushes to engage with stakeholders on its proposed Marram Energy Storage Hub (MESH) project in the UK Irish Sea off the coast of Northwest England. The update outlines the socioeconomic and environmental benefits associated with MESH, with the company winning to win over groups like the North Sea Transition Authority (NSTA) and local MPs. EnergyPathways published the briefing document, outlining the conclusions from its hydrogen and clean energy pre-front end engineering design (pre-FEED) activities. The document also seeks to highlight the role that hydrogen and compressed air storage technologies can play in reducing carbon dioxide (CO2) emissions, in helping to drive the UK energy transition and in enhancing energy security. The MESH project is designed to combine a number of technologies, initially storing natural gas and power generated from offshore wind in the Irish Sea, before being expanded to include hydrogen storage as the UK’s hydrogen economy develops. EnergyPathways moved to expedite the project towards the end of last year, citing changes to the regulatory and fiscal environment in the UK under the Labour government, which came into power in July. The company has touted MESH as a project that could help the UK meet both its energy security and decarbonisation goals. Since then, EnergyPathways has hit various milestones with the development of MESH, including entering into a £5.1m loan facility and selecting Wood as the lead engineering partner. The company also secured licence operatorship approval for Block 110/4a, which includes the MESH site, in January. On schedule and on track In its latest update, EnergyPathways said pre-FEED activities were on schedule and on track for a final investment decision (FID), subject to the necessary outstanding licences being granted. “We have received indications from the government that a decision on awarding the gas