Oil and Gas
Mexico Drilling Update
Eni announced an oil find in Upper Miocene sequences on the Sayulita Exploration Prospect in Block 10 in the Cuenca Salina Sureste Basin, Offshore Mexico. According to preliminary estimates, the new find may contain between 150 and 200 Mboe in place.
Sayulita-1 EXP is located approximately 70 km off the coast and just 15 km away from the Saasken discovery that will be appraised toward year-end. The well was drilled by the Valaris 8505 Semisub rig in a water depth of 325m, reaching a total depth of 1758m.
Sayulita-1 EXP found 55m of net pay of good quality oil in the Upper Miocene sequences. The reservoirs show excellent petrophysical properties. An intensive data collection has been carried out on the well and the data acquired indicate a production capacity for the well of up to approximately 3,000 barrels of oil per day.
Eni is the operator of Block 10 (65%), alongside Lukoil (20%) and Capricorn, a wholly-owned subsidiary of Cairn Energy PLC (15%)
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Eni starts production of the Cuica field in the Eastern area of Block 15/06, deep offshore Angola
Eni has started production of the Cuica Field, in Block 15/06 of the Angolan deep offshore, via the Armada Olombendo FPSO just over 4 months on from discovery. The Cuica field was discovered by the exploration well Cuica 1 in March 2021. It is located in a water depth of 500 meters, approx. 3 km from the Olombendo FPSO. The early production of the development, that will increase and sustain the Olombendo FPSO production plateau, includes an oil producer well and a water injection well, tied back subsea to the existing Cabaça North subsea production system, thus exploiting the full potential of available infrastructures in the area.
The Armada Olombendo FPSO has a production capacity of 100,000 barrels of oil per day and is designed to operate during her production life with zero discharge. Besides Cuica, whose production rate is in line with expectations, the Olombendo is now receiving and treating the production of Cabaça, Cabaça South East and UM8 fields for a total of 12 wells and 5 manifolds at a water depth ranging from 400 to 500 meters. The Olombendo FPSO will also receive production from the Cabaça North field in 4Q 2021
Block 15/06 is operated by Eni Angola with a 36.84% share. Sonangol Pesquisa e Produção (36.84%) and SSI Fifteen Limited (26.32%) compose the rest of the Joint Venture.
Panoro Energy Announces Oil Discovery Offshore Gabon
BW Energy and Panoro Energy have announced that the Hibiscus North exploration well (DHBNM-1), currently being drilled in the Dussafu Marin Permit offshore Gabon, has encountered hydrocarbons.
Initial results indicate that the DHBNM-1 well has encountered approximately 13.5 metres of the oil-bearing reservoir in the Upper Gamba sandstone, the primary target reservoir. Drilling will continue through the secondary Dentale target to a total depth of approximately 3,500 metres.
Guyana drilling campaigns continue with two new exploration wells
On August 22, 2021, the Kawa-1 well spudded. The well is located in the northeast quadrant of the Corentyne block, approximately 200 kilometres offshore from Georgetown. The water depth is approximately 355 m and the expected total depth of the Kawa-1 well is 6,685 m.
With multiple opportunities based on internal geological studies, the Kawa-1 well targets light oil in combination with structural-stratigraphic traps in large Santonian and Campanian slope fan complexes. The primary target is Santonian sand with updip and lateral pinchout of the reservoir, as well as counter-regional dip and structural closure. The Kawa-1 well is also expected to penetrate secondary objectives in shallower Campanian sand and deeper Santonian sand with the expectation of targeting additional hydrocarbon potential. The stacked targets in Kawa-1 are considered analogous to the discoveries immediately adjacent to the Corentyne Block, in Block 58 in Suriname.
Additionally, the Kawa-1 well is expected to de-risk multiple other prospects on the block which also have stacked reservoirs and similar structural geometries. The proximity of the Corentyne block to the Cretaceous Berbice Canyon sediment source is interpreted to have concentrated sandstone reservoirs in the North Corentyne area. Channelized, stacked internal fan geometries evident on 3D seismic are indicative of thick, stacked, coarser-grained sand reservoirs.
ExxonMobil through its subsidiary ESSO E&P Guyana spud the Sapote-1 exploration well on the 28th of August using the Stena DrillMAX.
Sapote-1 is located in the southeast of the Canje Block, approximately 60kms north of the Campanian and Santonian Maka Central-1 stacked pay discovery, in a new depositional setting linked to the Berbice canyon system. Sapote-1 is an independent multi-layer prospect, which will evaluate several Upper Cretaceous targets, and is potentially the largest prospect drilled on the Canje block to date. Drilling of Sapote-1 is anticipated to take 60 days, with results anticipated in late October.
The Canje Block is operated by ESSO Guyane Française Exploration et Production (35%) alongside TotalEnergies E&P Guyana B.V. (35%), JHI Associates (BVI) Inc. (17.5%) and Mid-Atlantic Oil & Gas Inc. (12.5%) as partners.
SapuraOMV announces the closing of the transaction to divest its stakes in Peninsular Malaysia producing assets
SapuraOMV announced the completion of the transaction to sell its entire interests, held by SapuraOMV Upstream (PM) Inc. in various producing assets, located offshore Peninsular Malaysia to Jadestone Energy PLC, a Singapore-based, London-listed independent oil and gas company. These producing assets are stakes in the PM323, PM329, PM318 and AAKBNLP Production Sharing Contracts.
Europa announces Morocco Farmout
Europa Oil and Gas Limited has announced the formal launch of the farmout of its high-impact exploration opportunity, the Inezgane Offshore Permit, offshore Morocco in the Agadir Basin, awarded to the Company in 2019.
Europa holds a 75% interest in, and operatorship of, the Licence, which covers an area of 11,228 sq. km with ONHYM holding the remaining 25% interest.
Europa has access to 6200 sq. km of high-quality 3D seismic data to evaluate the prospectivity of the Licence. Work so far has focused on five prospects namely Alpha, Charlie, Falcon, Turtle and Sandpiper.
Lime Petroleum farms-in to two North Sea licences with an option to farm-in to another.
Lime Petroleum AS has signed an agreement with Aker BP ASA to acquire 20% interests in PL867 and PL867B respectively in the North Sea. The transfer of the interests is pending regulatory approval, which will be announced upon completion of the transfer of the interests. Exploration drilling on the licences is expected to start in late 2022, with the planned well targeting a large prospect called Gjegnalunden, with a reservoir in the traditional Jurassic section. Additionally, Lime has signed a call option for the right to a 20% farm-in to PL1041 in the North Sea. The option must be exercised before 1 October 2021. Drilling in PL1041, targeting the Lyderhorn prospect, is scheduled to start in November 2021.
The licences PL867 and PL867B Gjegnalunden in the Utsira High area are located adjacent to PL818 Orkja, where Lime has a 30% interest. AkerBP is the operator of the licences. The Gjegnalunden prospect is about 12km away from AkerBP's Ivar Aasen platform and complements the Orkja prospect in PL818. Further prospects have been identified in the new licences.
The licence PL1041 Lyderhorn lies in the central part of the North Sea, south of the Alvheim field, and adjacent to the recent Frosk and Froskelår discoveries. The target reservoirs are the prolific Heimdal and Hermod Formation sandstones. AkerBP is the operator for PL1041 Lyderhorn and Neptune Energy Norge AS and Lundin Energy Norway AS are partners.
Longboat Energy complete Farm-In
Longboat Energy has announced that Norway's Ministry of Petroleum and Energy has approved the Company's acquisition of various exploration licence interests announced on 1 June 2021
The Company is thereby qualified as a licence holder on the Norwegian Continental Shelf and subject to the finalisation of the usual completion procedures with the various counterparties, expects to complete the Farm-Ins on 1 September 2021.
The drilling of the Egyptian Vulture prospect, scheduled to commence later this month, will be the first of an anticipated seven well exploration programme which will be drilled by Longboat over the next 18 months on the NCS."
Hess Completes Sale of Interests in Denmark
Hess Corporation announced that it has completed the previously announced sale of its subsidiary Hess Denmark ApS, which holds a 61.5% interest in the South Arne Field, to Ineos E&P AS for a total consideration of $150 million, effective January 1, 2021.
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Indian Government launch OALP VI
On the 6th August 2021, the Indian Government launched OALP Bid Round-VI offering 21 Blocks for Exploration and Development through International Competitive Bidding.
OALP Bid Round–VI features 21 Blocks spread over 11 Sedimentary Basins, 9 States covering 35,346 Sq. Km of area. Out of 21 Blocks, 15 Blocks are Onshore, 4 Blocks are ShallowWater-type and 2 Blocks are Ultra Deep-Water type
Consolidation in the Australian Oil and Gas Market
Woodside and BHP to Create a Global Energy Company
Woodside Petroleum Ltd and BHP Group have entered into a merger commitment to combine their respective oil and gas portfolios by an all-stock merger to create a global top 10 independent energy company by production.
On completion of the Transaction, BHP's oil and gas business would merge with Woodside, and Woodside would issue new shares to be distributed to BHP shareholders. The expanded Woodside would be owned 52 per cent by existing Woodside shareholders and 48 per cent by existing BHP shareholders. The Transaction is subject to confirmatory due diligence, negotiation and execution of full form transaction documents, and satisfaction of conditions precedent including shareholder, regulatory and other approvals.
With the combination of two high-quality asset portfolios, the proposed merger would create the largest energy company listed on the ASX, with a global top 10 position in the LNG industry by production. The combined company will have a high margin oil portfolio, long life LNG assets and the financial resilience to help supply the energy needed for global growth and development over the energy transition.
Santos agrees proposed merger with OilSearch
Santos and Oil Search have reached a merger agreement. Oil Search shareholders will receive 0.6275 new Santos shares for each Oil Search share held via a Scheme of Arrangement. Following approval of the Scheme, Oil Search shareholders will own approximately 38.5 per cent of the merged group and Santos shareholders will own approximately 61.5 per cent.
The Revised Merger Proposal implies a transaction price of A$4.29 per Oil Search share, based on the closing price of Santos and Oil Search shares on 19 July 2021. This represents a 16.8 percent premium to the Oil Search closing price on 19 July and a 16.4 percent premium to the one-month VWAP on that day. In addition, the proposal represents the opportunity to deliver compelling value accretion to both sets of shareholders. The merger of Santos and Oil Search would create a regional champion of size and scale.