GLOBAL E&P Jeremy Beckman • London
Drilling expected to remain subdued
Exploration and appraisal investments worldwide could total
$40 billion during 2016-18, less than half the previous three-year
outlay, according to Wood Mackenzie. Last year the industry only
discovered 2. 9 Bbbl of fresh reserves, the analyst added, and if the
downward trend continues, the global oil market could face a supply
shortfall of 4. 5 MMb/d by 2035. The lower oil price will probably
cause operators to focus for the time being on near-field opportunities with lower cost bases, Wood Mackenzie predicted, with a reduced likelihood of higher-risk frontier finds in the near term.
Eni expects to start a year-long appraisal drilling campaign in December on Mexico’s offshore Area 1, where the Amoca, Mitzon and
Tecoalli discoveries hold estimated reserves of 800 MMbbl of oil
and 480 bcf of associated gas. On conclusion, Eni aims to submit a
development plan to the authorities.
ExxonMobil has started appraisal drilling on its deepwater Liza
oil field in the Stabroek block offshore Guyana, thought to hold 700
MMbl recoverable. This follows the earlier completion of a 17,000-
sq km (96,654-sq mi) 3D seismic survey over the permit.
Partner Hess has agreed to take a 33% stake in the block 42 contract area offshore neighboring Suriname from existing partners
Chevron and Kosmos Energy. In exchange, Hess will provide much
of the funding for a 3D seismic survey, due to start this summer.
The consortium in Brazil’s ultra-deepwater block BM-C- 33 in
the presalt Campos basin has completed appraisal drilling. The lat-
est well, Gavea A1, flowed 16 MMcf/d of gas and 4,000 b/d of oil.
Statoil, which will shortly take over as operator, said the partners
plan to assess results from the three discoveries on the block and
progress development planning.
MODEC has contracted the BrasFELS shipyard to fabricate and
integrate nine production modules for the FPSO Cidade de Campos
dos Gotacazes MV29. The vessel, due to berth in the yard early next
year, will be deployed on the Lapa field in the Santos basin. It is de-
signed to produce 150,000 b/d of oil and 5 MMcm/d (177 MMcf/d)
of gas and to store 1. 6 MMbbl of crude.
Aker Solutions has opened a new subsea plant in the Curitiba area
for machining, assembly, and testing of christmas trees. It will also
provide Brazil’s first subsea control systems manufacturing capabil-
ity, the company claims.
Kosmos Energy has struck big again with its latest ultra-deepwater
gas find off Senegal. Teranga- 1 was drilled in the Cayar Offshore Pro-fond block, 65 km ( 40 mi) northwest of Dakar in nearly 1,800 m ( 5,905 ft)
of water. The well encountered 31 m (102 ft) of net gas pay in the Lower
Cenomanian objective. Results indicate a prolific inboard gas fairway
holding potentially more than 50 tcf, extending 200 km (124 mi) from the
company’s Marsouin- 1 discovery off Mauritania to the north, through
the Greater Tortue area on the maritime boundary to Teranga- 1.
Cairn Energy has proven gas in a previously undrilled deepwater
structure offshore Senegal. BEL- 1, drilled by the Ocean Rig Athena in
1,031 m ( 3,382 ft) of water, encountered two gas-bearing reservoirs
in between the main target and the deeper objective, designed to
appraise the northern part of the SNE oil discovery. The deepened
well section appeared to intersect a 100-m (328-ft) oil column, similar
in quality to the earlier SNE wells.
Last month Anadarko was drilling a horizontal side track of its
successful deepwater Paon-5A appraisal well in block CI-103 off Côte
d’Ivoire. Following a subsequent drillstem test, the company plans
further exploratory drilling on the Pelican and Rossignol prospects
in blocks CI-527 and CI-528.
Yinka Folawiyo Petroleum has started oil production on schedule
from the Aje field in the Dahomey basin offshore western Nigeria, 24
km ( 15 mi) from the coast in 100-1,000 m (328-3,281 ft) of water. The
upgraded FPSO Front Puffin, formerly deployed off Western Australia, can produce 40,000 b/d of oil from Aje and store up to 750,000 bbl.
Ophir Energy and Schlumberger have ended a heads of agreement
provisionally established in January for the Fortuna FLNG project
offshore Equatorial Guinea. Ophir says development planning is un-
affected, with bids in for engineering, construction and installation,
while capex for the project has come down to $450-500 million.
Harvest Natural Resources has completed tenders for planned
exploratory drilling and well testing in the Ruche Exclusive Exploi-
tation Area offshore Gabon. One prospect identified from a 2013 3D
survey could contain multiple pay zones in the same Gamba and
Dentale formations that brought discoveries on the adjacent off-
shore Etame block.
Sonangol claims to have discovered 2. 2 Bboe in two blocks in the
Kwanza basin offshore Angola, according to a Reuters report. One
is the BP-operated block 24, estimated to hold 280 MMbbl of con-
densate and 8 tcf of gas; the other is the Sonangol-operated block 20,
thought to contain 139 MMbbl of condensate and 2. 5 tcf.
LUKOIL-Kaliningradmorneft has secured the rights to produce
hydrocarbons from a block in the Russian sector of the Baltic Sea.
This includes last year’s D29 and D41 oil field discoveries, drilled by
Gazprom Flot’s jackup Arkticheskaya. LUKOIL assesses combined
recoverable reserves at 4,129 MM tons.
Gavea- 1 location offshore Brazil. (Map courtesy Statoil)