Maersk Oil’s US production from the deep-water Jack field is increasing steadily. After four years of execution, the Jack St Malo project came on line, on time and on budget in Q4 2014 and in Q1 2015, Jack delivered an entitlement production of 3,000 barrels per day (bpd) to Maersk Oil.
Maersk Oil owns a 25% working interest in the Jack field, which is part of a co-development with the St Malo and Julia fields. Chevron, the operator of Jack, has a working interest of 50% and Statoil the remaining 25%.
The Jack stage 1 development comprises four subsea wells tied back to a floating production unit (FPU). The facility is now producing around 70,000 bpd. The production capacity allocated to Jack is 34,000 bpd; out of the FPU’s nameplate capacity of 170,000 bbl/day.
Currently the field has two wells on production which are performing above expectation. A third well is expected to come on line in 2015 and the fourth well in 2016. So far Jack has produced 2.4 million barrels, a Maersk Oil share of 600,000 barrels. The plan is that the Jack field will continue to ramp up production during 2015 and early 2016.
There is more upside in the Jack field. A Jack stage 2, with two additional wells planned, is in development and further development opportunities are being assessed.
Maersk Oil has discovered hydrocarbons in the exploration well Xana-1X in licence 9/95 in the northern part of the Danish sector of the North Sea.
“The drilling of the high-pressure, high-temperature exploration well has been completed. At present the partners are in the process of assessing the technical and commercial implications of the discovery and looking at potential follow-up,” said Martin Rune Pedersen, Managing Director of Maersk Oil’s Danish Business Unit.
The Xana-1X well was drilled at a water depth of 68m and a total drilling depth of 5,071m in the Jurassic formation by the jack-up rig Noble Sam Turner.
The partnership in licence 9/95 consists of the following companies: A.P. Møller – Mærsk A/S (34%), Dong E&P A/S (20%), Nordsøfonden (20%), Noreco Oil Denmark A/S (16%) and Danoil Exploration A/S (10%).
Tuesday 28 April, Maersk Oil championed its fourth Global Safety Day, engaging employees and core contractors onshore and offshore.
Maersk Oil held its fourth Global Safety Day and was joined for the first time by all Business Units across the Maersk Group, with 89,000 Maersk employees globally marking the day. For Maersk Oil, the theme for the day was ‘Contract Management – for an Incident-Free Maersk Oil’, and a variety of events took place to kick-start discussions on how Contract Management supports an Incident-Free operation – and how we all have a role to play.
At headquarters, COO Gretchen Watkins hosted two townhall sessions and was joined by CFO Graham Talbot and Head of Corporate Technology and Projects, Troels Albrechtsen.
“Global Safety Day is an important event for Maersk Oil and represents an opportunity for us all to take a moment to reflect and reaffirm our commitment to Incident-Free,” Gretchen says.
“This year we’re focusing on contract management. We want everyone to better understand what contract management means for them and to consider ways in which our roles could be developed to help improve contractor safety and set them up for success,” she added.
In addition to numerous local activities and team discussions, a new way of highlighting Global Safety Day was introduced: Maersk Oil employees and contractors were asked to ‘Snap a photo and share your Global Safety Day moment’ on Instagram, and a number of employee testimonials, sharing reflections on being Incident-Free, were shared on Facebook and LinkedIn.
Qatar Petroleum has initiated an evaluation process for the selection of a partner to undertake the future development of the Al Shaheen field, as the current agreement expires mid-2017.
Maersk Oil has been operator of the Al Shaheen field since 1992 and together with Qatar Petroleum successfully unlocked the potential of the field for more than 20 years producing approx. 300,000 bopd, some 40% of Qatar’s daily oil production.
“We have developed an unrivalled technical experience and understanding of this complex offshore field and have a robust plan to deliver future value from Al Shaheen,” says Jakob Thomasen, CEO of Maersk Oil.
“We have known that we would be challenged on terms and conditions in connection with the 2017 extension and have been awaiting more information on how Qatar Petroleum wished to go about such a process.
We look forward to this opportunity to continue our partnership with Qatar Petroleum, based on our long-term commitment and detailed technical knowledge.”