1-African Petroleum Mulls Deepwater Drilling
African Petroleum (AP) has signed non-binding heads of terms and a binding exclusivity agreement with an unnamed oil and gas company experienced in deepwater drilling.
The arrangements would give the incoming party a 70% operated interest in AP’s SOSP production-sharing contract off Senegal and the A1 and A4 licenses offshore The Gambia.
Under the initial eight-week period of the exclusivity agreement, both parties will finalize negotiations with the respective governments in order to amend the work commitment off Senegal and to enter the next phase of the licenses in The Gambia.
The incoming party is currently looking to fund 100% of at least two deepwater exploration wells at a cost of up to $35 million each; a 3D seismic acquisition program; pre-stack depth migration processing/reprocessing; and potentially 100% and 85% of two further wells at a cost of up to $35 million per well.
AP CEO Jens Pace said: “Whilst final farm-in agreements are subject to completion and the successful outcome of negotiations with the governments in Senegal and The Gambia, we are confident that the proposed partner’s reputation, strong balance sheet and appetite to explore the potential of these exciting licenses with the drill bit, will greatly increase our ability to conclude the discussions with an outcome that benefits all parties.”
2-CNOOC Fulfils Production Targets
CNOOC achieved 14 commercial discoveries and successfully appraised 25 oil and gas structures last year.
Oil and gas reserves from new finds offshore China continued to grow, and the company made breakthroughs in exploration in new areas.
Despite lower oil prices, CNOOC’s reserve replacement ratio (excluding economic revisions) was 145% for the year. At the end of 2016, the company’s net proved reserves totalled about 3.88 Bboe.
In addition, the company met its annual oil and gas production target despite further capex cuts, producing 476.9 MMboe.
CNOOC’s four offshore projects planned for 2016 have started operations as planned – these are the Kenli 10-4 oilfield, Panyu 11-5 oilfield, Weizhou 6-9/6-10 comprehensive adjustment project, and Enping 18-1 oilfield.
Yang Hua, chairman and CEO, said: “In 2016, the company has maintained a strong cost competitiveness despite low oil prices and sluggish global economic growth.”
3-Cooper to Operate Offshore Australia
Cooper Energy has contracted Subsea 7 to perform subsea installations for the Sole gas development in the VIC/RL3 permit offshore southeast Australia.
The Sole field is in the eastern part of the Gippsland basin, 40 km (25 mi) offshore Victoria.
Subsea 7’s scope comprises the subsea tieback of the Sole well to the existing Orbost Gas Plant, which involves fabrication and installation of 64 km (40 mi) of pipeline, associated spool and manifold, laying of a 64-km umbilical and subsequent commissioning.
The company has started project management and engineering in Perth and will begin offshore operations in 2018, subject to a final investment decision next month.
Following a recent transaction Cooper now has 100% equity in the field, which it aims to bring on-stream by March 2019, and the company is currently arranging finance for the project. Development will involve drilling two horizontal wells.
The company has signed gas sales agreements with Alinta Energy, EnergyAustralia, and AGL Energy, and has agreed with APA to upgrade the Orbost facility to handle Sole’s production.
Cooper also believes it could profitably develop the nearby offshore Manta gas/condensate field in permits VIC/RL 13, VIC/RL 14, and VIC/RL 15.
This would entail drilling the Manta-3 appraisal well, followed by subsea installations and construction of a pipeline to transport produced gas and liquids to Orbost for separation and processing.
In addition, the well would investigate the potential for further gas above and below known gas-bearing reservoirs.
Commercialization of Manta in coordination with Sole gas would offer project synergies and development planning is taking this into account.
Manta’s development would likely form a second-phase Gippsland gas project, commencing with drilling of the appraisal well coordinated with the rig program for the Sole development well in 2018.
Work on Manta development would probably start soon after Sole commences production, with first gas following around two years later.
4-2D Seismic Survey Offshore Argentina
Spectrum, in partnership with BGP Marine, has started a 35,000-km (21,748-mi) multi-client 2D seismic survey covering 435,000 sq km (167,954 sq mi) offshore Argentina.
In cooperation with YPF S.A. and the authorization of the Ministry of Energy and Minerals, the survey will provide a detailed seismic grid over this under-explored frontier area of Argentina, allowing for basin-wide studies of the area as well as prospect/lead level interpretation studies for upcoming license rounds.
Data is being acquired with a 12,000-m (39,370-ft) streamer with continuous recording to enable extended recording lengths and high fold data to enable full interpretation from Moho to water bottom. The data will be processed with PSTM, PSDM, and Broadband products with first deliveries expected in early 4Q 2017.
The new data will be used to assist the ministry in placement and design of parcels for the future license rounds offshore Argentina.
Richie Miller, executive vice president Multi-Client Americas, said: “With the commencement of our first program in Argentina we again start to build a core area for Spectrum to grow and expand on. There has been no deepwater exploration in Argentina and this survey will allow industry to get a look at a frontier area for the first time with modern long offset high fidelity data…”
This survey is supported by industry funding.
5-Oil Field On-Stream in Danish North Sea
Wintershall Noordzee has started production from the Ravn oil field in block 5/06 in the Danish North Sea.
This is the company’s first operated development project in the Danish sector.
Oil produced from a subsurface depth of around 4,000 m (13,123 ft) flows to a new production platform located 300 km (186 mi) north of Den Helder.
Production is then transported via an 18-km (11.2-mi) subsea pipeline to Wintershall’s A6-A processing platform in the German sector, for onward delivery through the existing export network south to the Netherlands.
Wintershall has applied an “Appraisal through Development” concept, which entails continuously compiling data on well productivity and the reservoir’s lateral extent of the reservoir. It aims to use this data for future field development options in the region.
Wintershall operates Ravn with a 63.64% interest, in partnership with the Danish state-owned oil and gas company Nordsøfonden (36.36%).