As energy companies produce more oil and gas to meet growing needs, there is movement on the exploration front.
The latest headlines in the E&P space include a natural gas discovery in the Barents Sea and Woodside Energy awarding a contract for the ultra-deepwater Trion greenfield project offshore Mexico it is developing with Pemex.
Below is a compilation of some of the latest E&P news.
Exploration
Equinor Hits Gas at Skred Prospect in Barents Sea
Equinor has made a natural gas discovery at its Skred prospect in the Barents Sea near the Johan Castberg Field.
Preliminary estimates indicate a discovery of between 0.3 billion standard cubic meters (scm) and 0.5 billion scm recoverable gas, which is equivalent to between 1.9 million barrels of oil equivalent (MMboe) and 3.1 MMboe, the Norwegian Offshore Directorate said July 10 in a news release.
Equinor and partners are considering a possible tie-in to the Johan Castberg Field, NOD said.
Drilled by the COSLProspector rig to a vertical depth of 2,144 m, the well encountered a 14-m gas column in the Stø Formation in sandstone totaling 70 m, the Norwegian Offshore Directorate said July 10 in a news release. It called the reservoir quality good, and more gas was hit in a 3-m thick isolated sandstone layer with moderate to good reservoir quality in the Nordmela Formation.
Oil was also encountered above the primary exploration target, but reservoir quality was poor to moderate.
The well was drilled with production license 532, about 23 km north of the Johan Castberg discovery well. Equinor is the operator with a 46.3% stake. Partners are Vår Energi (30%) and Petoro (23.7%).
Hess Joins Exxon, Equinor in Exit from Suriname’s Offshore Block 59
Hess Corp. has exited deepwater Block 59 offshore Suriname, returning the block to Staatsolie, the state-owned company said July 8.
The departure followed the withdrawal and transfer of participation stakes by partners Exxon Mobil and Equinor in 2024 to Hess, which became the sole party in the Block 59.
Spanning about 11,480 sq km offshore Suriname in water depths between 2,700 m and 3,500 m in the Guyana-Suriname Basin, Block 59 is considered a frontier deepwater exploration area. Its location in the same basin as Guyana’s prolific Stabroek Block, where operator Exxon estimates gross recoverable resources of nearly 11 Bboe, was part of Block 59’s allure.
However, Staatsolie said the two previous partners considered the risk too high for drilling an exploration well. “In the past year, despite efforts, Hess did not find any new partners to continue exploration of Block 59,” Staatsolie said.
Hess fulfilled its minimum work obligations and opted not to proceed to the next exploration phase, Staatsolie said.
Shell Gets Permission to Drill Off South Africa’s West Coast
(Reuters) Shell has been granted environmental authorization to drill up to five deepwater wells off South Africa’s West Coast, the company said on July 11.
The oil major applied for authorization last year and plans to drill exploration or appraisal wells in the Northern Cape Ultra Deep Block in the Orange Basin, at water depths ranging between 2,500 m (8,200 ft) and 3,200 m (10,500 ft).
Oil companies, including TotalEnergies, are also aiming to drill off South Africa's west coast, where the prolific Orange Basin extends southwards into the country's waters, with hopes of replicating significant discoveries made in neighboring Namibia.
“Should viable resources be found offshore, this could significantly contribute to South Africa’s energy security and the government’s economic development programmes,” Shell said in a statement without providing any timelines.
Shell's previous exploration program along South Africa’s East Coast has been disrupted by court litigation over concerns about lack of public consultation and that seismic surveys may harm the marine environment.
The long-running case is expected to be heard in South Africa's highest court later this year and could either help usher in a new exploration boom or dampen expectations.
Mounting environmental pressures, including a bevy of court actions to halt drilling, and cumbersome bureaucracy have stifled South Africa's ambitions to develop its oil and gas potential.
Africa's most industrialized economy has lost around half of its refinery capacity over the last few years and depends even more now on imports of refined petroleum products to meet rising demand.
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Business
Expro Wins Contract for Deepwater Project Offshore Mexico
Woodside Energy has selected Expro to provide tubular running and cementing services for what will be Mexico’s first deepwater oil production facility, according to a July 14 news release.
Located in the Perdido Fold Belt at water depths of around 2,500 m, the Trion ultra-deepwater development offshore Mexico is a joint project between Pemex and Woodside. The developers are targeting first oil in 2028.
Expro’s services for the project will include tubular running services, completion and drilling support, provision of casing accessories, cement heads and Expro’s Skyhook system, Expro said in a news release. The company said it aims to optimize well performance while driving cost efficiencies and enhancing operational reliability throughout the project lifecycle.
As part of the project, Expro plans to establish a new hub in the area, while Woodside Energy will manage operations from its Tampico shore base and office, according to the release.
Equinor Taps Aker Solutions for Fram Sør Tie-in Project
Aker Solutions has landed a contract by Equinor to provide engineering, procurement, construction, installation, commissioning and subsea template services for the Fram Sør subsea tie-in project in the North Sea.
In a July 9 news release, Aker said it will prepare the topside of Troll C to receive and process the production from the Fram Sør subsea tie-in project. The company has already carried out FEED work for the project.
The contract, which Aker said will be booked in the Life Cycle segment as order intake for third-quarter 2025, is valued between about $49 million and $148 million.
The subsea tie-in project is scheduled to begin production at year-end 2029.
JDR Lands Middle East Offshore Umbilicals Testing Job
Subsea cable provider JDR Cable Systems has won a contract to support Larsen and Toubro’s offshore umbilicals testing in the Middle East, according to a July 8 news release.
JDR said it will test 14 umbilical cables for offshore platforms in the Middle East.
The work includes testing and monitoring critical hydraulic and electrical control systems. This includes pre-deployment testing, monitoring during lay operations and integration testing. Offshore technicians, equipment and technical support will also be provided to ensure the umbilicals are properly monitored during the installation and integration phases, the company said in the release.
Hart Energy Staff and Reuters contributed to this report.