Pandion Energy is pleased to announce first oil at Valhall Flank West in the North Sea. Valhall Flank West is a new Normally Unmanned Installation (NUI) which is part of the continued development of the Valhall field. The ambition is to produce another billion barrels in the next 40 years. Pandion Energy holds a 10 percent interest in the Valhall field, where Aker BP is operator.
The Plan for Development and Operation of Valhall Flank West was submitted in December 2017. First steel was cut at Kvaerner’s yard in Verdal in April 2018. Just over one year later, both the jacket and the topsides were installed on the field with no additional carry-over work.
Valhall Flank West is a well head platform, that will normally be unmanned, tied back to the Valhall field centre for processing and export. The installation receives power from shore via the Valhall field centre, in line with the partnership’s strategy of minimising the environmental footprint.
Recoverable reserves for Valhall Flank West were estimated to be around 60 million barrels of oil equivalent based on the drilling of six production wells. Since then, several additional wells have been sanctioned bringing the recoverable reserves close to 80 million barrels of oil equivalent, with further drilling targets being evaluated.
The partnership has invested NOK 5.5 billion in Valhall Flank West development project, which has an estimated break-even price of USD 28.5 per barrel. Around 1,500 people have been involved in the project.
Jan Christian Ellefsen, CEO of Pandion Energy commented:
“This is truly a day to remember. Valhall Flank West is the first development project we have participated in as a partner on Valhall & Hod. We are very impressed with the execution of the project and the way the involved parties have worked as one team, delivering one of the safest projects on the NCS, on schedule and within budget.”
For more information:
Aker BP Press Release: Valhall Flank West starts production
Kerogen Capital Limited (“Kerogen”) is delighted to publish its updated Environmental, Social and Governance (“ESG”) Policy Statement. Since Kerogen’s launch of its first ESG Policy Statement in 2014, Kerogen has continued to develop and expand its approach to ESG-related matters, both at Kerogen and with its portfolio companies.
ESG principles are a vital component of Kerogen’s commitment to doing business the right way. Kerogen believes these principles are a central commercial priority. Kerogen’s investment philosophy aims to promote positive impact in areas such as safe working conditions, social responsibility, and sustainable operations. Kerogen believes that ESG initiatives significantly reduce risk, create long-term value and are a competitive advantage.
Ivor Orchard, Co-Founder and Chairman of Kerogen, said:
“The energy industry is at a critical juncture. The world is moving to lower carbon energy sources, while at the same time a growing global population needs increasing supplies of reliable, affordable energy, particularly in developing countries. A comprehensive, socially responsible investing framework is essential to addressing the key challenges ahead.”
Pandion Energy has agreed to divest its 20% share in the Duva field through two transactions, one with PGNiG Upstream Norway AS and one with Solveig Gas Norway AS, each acquiring a 10% share in PL 636 and PL 636B.
The Duva oil and gas field is located in the northern North Sea and was discovered in the autumn of 2016. The Plan for Development and Operation (PDO) was approved earlier this year, less than three years after discovery. With recoverable reserves of 88 million barrels of oil equivalent, the field is expected to produce around 30 thousand barrels of oil equivalent per day at its peak. The Duva field will be developed as a subsea tie-back to the nearby Gjøa platform, with first production expected in late 2020 / early 2021.
Jan Christian Ellefsen, CEO of Pandion Energy, comments:
“Duva was the first discovery in our portfolio after forming Pandion Energy almost three years ago. We are pleased with the significant value created to date, having participated since the field was discovered through to development. Our engagement in Duva represents the core of our strategy – to add value to high quality assets and mature them up the development curve – in this case with more than a 50% increase in recoverable resources since the initial discovery. With this sale, we will crystallize some of the value created in our portfolio to date, further strengthening Pandion Energy’s capacity to act on future opportunities. We remain deeply committed to the Norwegian Continental Shelf and look forward to continuing to create value in our remaining portfolio and investing in new attractive opportunities on the shelf.”
The transactions are subject to customary conditions for completion, including approval by the Norwegian Ministry of Petroleum and Energy.
For more information:
Pandion press release
Kerogen Capital is pleased to announce an investment in SparkCognition through Kerogen’s digital platform – Kerogen Digital Solutions (“KDS”).
SparkCognition is a global artificial intelligence (AI) leader focused on solutions for the Energy, Aerospace & Defense, Automotive and Industrials sectors. KDS’s US$10 million investment is part of a fully-subscribed US$100 million Series C Preferred Stock round to advance SparkCognition’s domestic and international growth.
SparkCognition’s AI solution for predictive maintenance, SparkPredict, is being implemented across over 30 offshore topside and subsea oil and gas installations globally, including two offshore platforms in which Kerogen portfolio companies have an interest. In addition, SparkCognition offers three other AI products: Darwin (automated model builder), DeepArmor (cybersecurity solution) and DeepNLP (unstructured-to-structured data automation solution).
Post-investment, KDS will receive a board observer seat and will work together with SparkCognition to grow its international energy business.
Amir Husain, Founder and CEO of SparkCognition:
“In the past several years, SparkCognition has developed a leading AI solution which can solve critical problems across a diverse set of industries including the energy sector. We are proud to have the backing of a large, international energy specialist like Kerogen and are excited to further build our energy franchise together.”
Jason Cheng, Managing Partner and Co-Founder of Kerogen:
“Digital transformation of the energy sector is a key focus for our investing and operating strategy. We are very excited about our future partnership with SparkCognition and we look forward to working together in expanding SparkCognition’s global footprint in the energy industry and to leverage their AI solutions in Kerogen’s future projects.”
Founded in 2013 and based in Austin, Texas, SparkCognition has established itself as a global leader in AI solutions. SparkCognition is led by an experienced management team with track record from companies such as IBM Watson, Boston Consulting Group and Dell. Additionally, the Company’s board of directors comprises of senior executives from Boeing, Cisco Systems and March Capital Partners, as well as the former President of Goldman Sachs and former 4-star US Marine Corps General. SparkCognition has announced partnerships and engagements with industry leaders across multiple sectors, including Boeing, Hitachi High-Technologies, Aker BP and many others.
For more information: SparkCognition Press ReleaseIdeol and Taisei Corporation sign a Memorandum of Understanding on Floating Offshore Wind
Ideol SA (“Ideol”) and Taisei corporation (“Taisei”) have signed a Memorandum of Understanding (MoU) for the joint development and promotion in Japan of concrete foundations for floating offshore wind using Ideol’s patented Damping Pool® technology.
Ideol is a leader in floating offshore wind with precommercial- and commercial-scale projects under development globally and with operating units in France and Japan. Ideol is the only floating wind technology supplier benefiting from the return of experience from two floating wind turbines on 2 different continents, undergoing different environmental conditions and certified by different class societies. Taisei is one of Japan’s largest general contractors with a global expertise in the field of marine construction, such as the development of concrete barges (C-Boat500) and also the recent successful undersea tunnel construction by the immersed tube method in the Bosphorus Straits.
In Japan, the potential of floating offshore wind is three times larger than for bottom-fixed offshore wind farms’. Floating offshore wind is therefore a promising market where the use of concrete will enable Ideol and Taisei to further reduce the cost of floating foundations.
Through this MoU, Ideol and Taisei intend to make the most of both companies’ expertise and resources and closely cooperate to proactively develop concrete floating offshore wind foundations in Japan and contribute to the acceleration as well as the growth of the domestic floating offshore wind market.
For more information: Ideol Press ReleaseHurricane Energy plc – ‘Lincoln Crestal’ 205/26b-14 Well Result
Hurricane Energy plc, the UK based oil and gas company focused on hydrocarbon resources in naturally fractured basement reservoirs, is pleased to report the results of testing of the 205/26b-14 well (“Lincoln Crestal”).
· Maximum stable flow rate of 9,800 stb/d on ESPs
· Lincoln confirmed to contain light, 43° API oil
· No formation water produced
· Well now planned to be suspended as a future producer
Testing of the Lincoln Crestal well recorded a maximum stable flowrate of 9,800 stock tank barrels of oil per day (“stb/d”) with the use of electrical submersible pumps (“ESPs”). The well flowed at an average rate of 4,682 stb/d under natural conditions. No formation water was produced.
Lincoln Crestal is the second well in a three-well programme on the Greater Warwick Area (“GWA”). The well was spudded on 12 July 2019 and was drilled to a total depth of 1,780 m TVDSS. It included a 720 m horizontal section of fractured basement reservoir.
The well will now be suspended, subject to regulatory approval, with long term gauges installed to test interference with future GWA wells. It is then planned to be tied-back to the Aoka Mizu FPSO during 2020, subject to further technical evaluations, regulatory consent and final investment decision by the joint venture. Production from the tie-back would generate reservoir data to be used in planning future phases of development.
The Transocean Leader semi-submersible rig will now move to the location for the third well in the 2019 GWA drilling programme, 204/30b-A ‘Warwick West’.
Dr Robert Trice, Chief Executive of Hurricane, commented:
“We are delighted with the results of the Lincoln Crestal well. We have confirmed the presence of light oil which can be produced at commercial rates. The Lincoln Crestal well is now planned to be tied back to the Aoka Mizu FPSO next year. This would make Lincoln the second producing basement field in the UK.
Based on the result of the 2016 Lincoln well, RPS Energy assigned 2C contingent resources of 604 million barrels of oil equivalent to Lincoln. This successful result brings us closer to monetising this huge resource.”
For more information:
Hurricane Energy – ‘Lincoln Crestal’ 205-26b-14 Well Result
Kerogen Capital is pleased to announce that Ivor Orchard, Executive Chairman and Co-Founder, is the winner of the Oil & Gas Council’s 2019 Lifetime Achievement Award.
The Oil & Gas Council is one of the largest networks of oil and gas executives in the world. The Council Awards programme, now in its 11th year, represents a global benchmark of excellence for those working in the industry. It honours and recognises individuals and companies who have been at the heart of ground-breaking achievements that contribute to changing the face of the oil and gas industry.
Ivor has over 40 years’ experience in oil and gas spanning private equity, investment banking and managerial roles in the industry. Prior to founding Kerogen in 2007 as a private equity fund manager specialising in upstream oil and gas, he spent 20 years in energy and natural resources investment banking, principally at J.P. Morgan, where he was Head of the Energy and Natural Resources Group in Asia Pacific, and earlier at CS First Boston as a director in Australia and New Zealand. He has also spent 10 years at the start of his career with Shell, where he served (among other positions) as Managing Director of the Shell Company of Laos, Deputy Treasurer of Shell UK Ltd., and Assistant Area Coordinator for Shell’s operations in the Far East, including oversight of Shell’s re-entry into China.
The awards ceremony will be held at the Oil & Gas Council’s Awards of Excellence Dinner in London on 3 December 2019. Ivor will also be delivering the opening address at the 11th World Energy Capital Assembly on 2 December 2019.
“I am honoured to receive the 2019 Lifetime Achievement Award and to join such a distinguished list of previous recipients. To be recognised by one’s colleagues in the industry is very special. The Award is also a testament to the success of Kerogen and to everyone who has contributed to achieving that success over the last ten years – our LPs, our Executive Board and our portfolio companies, as well as the dedication of the entire team.
The oil and gas industry faces difficult but exciting challenges ahead. As I’ve learned over the course of my career, it’s a resilient industry that succeeds because it embraces change. I am quite certain that we will see some astonishing innovation in the coming years that will ensure that the industry continues to play a leading role in the unfolding transformation of energy.”
For highlights of the World Energy Capital Assembly: Awards of Excellence 2019Pandion Energy acquires 20 percent of PL 891 from ConocoPhillips
Pandion Energy AS (Pandion Energy) has entered into an agreement with ConocoPhillips Skandinavia AS (ConocoPhillips) to acquire a 20 percent interest in PL 891, containing the Slagugle prospect. The license is located in the prolific Haltenbanken area of the Norwegian Sea in blocks 6608/10, 11 and 12. Contingent on approval by the Norwegian Ministry of Petroleum and Energy, the operator will be making preparations to drill the Slagugle prospect in 2020, alternatively 2021.
CEO of Pandion Energy, Jan Christian Ellefsen, commented:
“With this farm-in we commit to our fourth exploration well in less than a year, demonstrating the importance of exploration and appraisal activities in Pandion Energy’s growth strategy. Once again we have identified and secured an attractive exploration opportunity close to existing fields and discoveries in the Norwegian Sea. Together with the upcoming wells in PL 842 (Godalen) and PL 263 D & E (Appolonia), we now have a portfolio of three exploration wells in this prolific part of the Norwegian continental shelf.”
PL 891 was awarded in the 2016 APA round and is operated by ConocoPhillips (100% before farm-down).
The transaction is subject to customary conditions for completion, including approval by the Norwegian Ministry of Petroleum and Energy.
For more information:
Pandion Energy acquires 20 percent of PL 891 from ConocoPhilips
The first operational results of the 2 MW Floatgen floating wind turbine, equipped with the Ideol floating foundation and installed on the Sem-Rev test site (Atlantic Coast of France), meet and even exceed expectations. Ideol’s patented technology is now fully validated and ready for commercial-scale deployments.
During the first half of 2019, the floating wind turbine – which is also France’s first offshore wind turbine – produced a total of 2.2 GWh and faced significant wave heights up to 6.2 metres (waves up to 11.7 metres).
The progressive ramp-up of the full-scale demonstrator was carried out as per a carefully planned commissioning protocol initiated as soon as the demonstrator was put into service (September 2018). This technical validation was performed step-by-step, each time the demonstrator was facing specific combinations of wave and wind conditions at sea. Particularly noteworthy is the fact that the wind turbine was operating and producing power during June 7th Miguel storm, when a combination of 4.4-metre significant wave height (waves up to 8.5 metres) and 22 m/s winds (with gusts up to 103 km/h) was observed.
The measurements acquired by more than one thousand sensors installed on all the components of the wind turbine and its substructure have been fully in line with the company’s initial simulations, hereby validating the accuracy of the models developed by Ideol’s engineers.
The progressive validation of the different combinations allowed to reach an average availability in excess of 90% during the second quarter of 2019 (68% for the first quarter) and should allow to reach the final targeted availability before the end of the year. Such outstanding results were made possible by :
Ideol’s technology, which is also being deployed on a second Japanese demonstrator that has faced three typhoons since its commissioning in September 2018, is thus fully validated and ready for future commercial farms tenders in France, Scotland, Japan and many other geographies.
Energean Oil and Gas plc (LSE: ENOG, TASE) is pleased to announce that it has signed a Detailed Agreement (“Agreement”) with Israel Natural Gas Lines (“INGL”) for the transfer of title (the “hand over”) of the near shore and onshore part of the infrastructure that will deliver gas from the Karish and Tanin FPSO into the Israeli national gas transmission grid. An MOU with INGL was signed in December 2018.
As consideration, INGL will pay Energean 369 million Israeli New Shekels, approximately US$102 million, which will be paid in accordance with milestones detailed in the Agreement.
The Agreement covers the onshore section of the Karish and Tanin infrastructure and the near shore section of pipeline extending to approximately 10km offshore. It is intended that the hand over to INGL will become effective shortly after the delivery of first gas from the Karish field in 1Q 2021. Following hand over, INGL will be responsible for the operation and maintenance of this part of the infrastructure. Energean will not incur any charges or tariffs for use of this infrastructure.
Mathios Rigas, CEO of Energean Oil & Gas:
“The Agreement signed with INGL is an important milestone for the Karish and Tanin development, which will start flowing natural gas to the Israeli market in 1Q 2021. This demonstrates the commitment of the Israeli government to the project, and to long term development of gas resources offshore Israel. The infrastructure being built by Energean will enable connection of future gas discoveries to the system, further contributing to Israel’s energy security and diversity of supply. We thank INGL management and professional team for the collaboration – we look forward to developing more projects together in the future”.
For more information:
Agreement signed with INGL for the transfer of near shore and onshore infrastructure