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Londoner, I am sure they are minimising flaring. Power comes from four Wartsila 50DF 16 Cylinder recips, and I would guess they run one pair on gas, and one pair on heated crude. They were designed to be run on Kraken crude, but not sure exactly what problems they are facing.
There are good reasons to value Genel differently to Enquest. The reality is Genel's oil is passed to the Kurdistan Regional Government, who, as long as the pipeline through Turkey is open, can then sell the oil at Ceyhan. The KRG should then pay Genel (and DNO) there shares. However during 2016 cash flow was so tight for the KRG they stopped paying Genel and DNO, so this risk is very real. Whatever you may think abouth the North Sea fiscal regime, it is more reliable than that in Kurdistan, and export for Genel requires co operation from both Turkey and Bagdad. If Bagdad did not need the same pipeline as Genel, for their Kirkuk crude, the risk to export would be even greater. The other valuation difference is simply one of reserves in the ground.
This all seems very convoluted. SeaPulse is linked to SeaCrest, who are linked to Azinor Catalyst.
All very murky. What does Azinor Catalyst is SeaCrests UK Exploration company of choice mean ?
I am not convinced this means anything of much significance.
If anyone wants to understand the Magnus potential, I recommend starting by reading SPE-169167-MS.
This is now a mature Water Alternating Gas injection production system, running since 2002. The paper discusses some of the future issues.
Evaluation of multiple options resulted in a phased WAG optimization programme of which the first phase is being proposed for execution in 2014. A behind flood front core is planned in 2015, which is expected to help calibrate the optimization programme by quantifying Sorm and the degree of vertical sweep achieved in the field. Relatively low cost options were identified to improve the sweep as opposed to drilling new wells. Integration with the operations team was the key in creating a business case for pattern optimization on a 30-yrs old, bed space constrained platform.
The workflow of this study and the learnings are applicable to mature patterns in any WAG scheme. Optimizing the WAG patterns enables more efficient use of the available gas, which -given that cost of gas is a significant component of any gas injection project- makes this more commercially viable and cost effective tertiary recovery option.
Pelle, I do not know all the design details of the FPSO, but DC4 and DC3 each have dual seperate 12 inch flowlines to the FPSO. The only issue is how the testing seperators / metering is configured. However as this is essentially just water and oil, without gas, having a seperate test set would be relatively inexpensive, so my guess would be testing and commissioning DC4 will make no difference to production from the other drill centers. If the bottlenecks are water handling and oil water seperation capacity to the right spec, there will be a minor hit from cleaning up the well fluids and water in the flowlines initially, but that would only be for a matter of hours. In the Middle East till tuesday ten back on European time for a few weeks.
Sad to see the ATM ram raid in Torphins, I was only in that store in December.
L3, You asked why the HSP's were working in the past but not now.
There is no indication there are any problems with the HSP's, in fact as they are in Enquest scope, (Part of the Drilling and Completion workscope) not BUMI, the reverse is true. i.e. The reservoir and pumps are fine, but there are production bottlenecks on the FPSO.
Pelle, Thanks yes that was the part link.
https://www.spe-uk.org/aberdeen/wp-content/uploads/2014/07/
Then item 16, the largest file is the presentation.
As the HSP's use an open cycle, (High pressure water is the motive power for the pumps, and co mingles downhole with the oil)the challenge then is to take the 6000 bbls an hour of water and oil, and get the water in oil down to 2.9 % and the water to zero solids to meet DEFRA standards to go over the side, or with further sulphate reduction to go into the injected water stream. The problems are most likely in the water handling process, in just running the system at the right volumes.
Grrrr...
spe-uk.org/aberdeen/wp-content/uploads/2014/07/16.-The-HSP-Versatile-Artificial-Lift-Choice-for-the-Heavy-Oil-Subsea-Kraken-Development-EnQuest.pdf
Put https://www. in front
For anyone interested in knowing more about the Kraken oil pumps, here is a presentation. This type of ESP is very unusual, and specifically developed for heavy oil.
https://www.spe-uk.org/aberdeen/wp-content/uploads/2014/07/16.-The-HSP-Versatile-Artificial-Lift-Choice-for-the-Heavy-Oil-Subsea-Kraken-Development-EnQuest.pdf
Pelle, No specific knowledge on teh Kraken FPSO, but I am familiar with mant start up issues on FPSO's round the world. The hydraulic pumps used on Kraken are unusual, due to the heavy oil, and are developed for this type of crude. I suspect though the issues are probably relatively mundane, but fixing them often requires custom fabrication of better designs. Replacing parts can be a challenge. One oil major had a heat exchanger with a 25 year design life, that the third party design engineer did not appreciate that a 10 degree hotter gas stream changed the corrosion rate to the point the tubes corroded in six months. However as it was assumed it would last 25 years, so was positioned where the FPSO cranes could not reach it. The replacement Titanium heat exchanger cost 6 million, but the crane barge to change it cost about 20 million to mobilise and demobilise from a remote part of the world. All these problems get fixed. The main issue is the reservoir, and that looks fine.
I need to work out how to post a link...
https://www.onepetro.org/journal-paper/SPE-15560-PA
Romaron, I think saying it that way is just spin. The pipeline is like a rental house, that eventually is so old it needs a new roof or the tenants will have to move out. The 500 million will just keep it going for another 15 years without leaking. SVT is in better shape, but in both cases these are similar to rental property, but equally essential to get the oil to market.
I have been lurking here a long time, and value the comments, and my large share holding has some shares I paid 120 for and some I paid 19 for. You need to be in this for the long game. The issues with the FPSO are not unusual, just for the bigger companies they have less profile in a diverse portfolio. I knew AB back in the 80's when he was a young engineer in Plano, ( https://www.onepetro.org/journal-paper/SPE-15560-PA ) and he certainly impressed with his negotiating skills.
My perspective is simply this. Few investors put the effort into analysis done on this board. They look at the assesments from Yahoo etc., which are all based on the 2017 results. Few read the operational updates and fewer understand the implications. Assuming the 2018 results actually show a reported profit, that will mark the start of the transformation. My biggest concern is being bought by INEOS or DNO.