Oil and Gas

Dugong Tail well comes up dry.

Neptune Energy Norge AS, operator of production licence 882, has concluded the drilling of wildcat well 33/6-5 S. The well is dry and has been permanently plugged and abandoned.

The primary exploration target for the well was to prove petroleum in Middle Jurassic reservoir rocks (the Rannoch Formation). The secondary exploration target was to prove petroleum in the Statfjord Group in the Lower Jurassic, depending on oil in the Rannoch Formation.

The well encountered around 90 metres of the Rannoch Formation with sandstone of moderate to good reservoir quality. In the Upper Jurassic, the well encountered around 30 metres of the Draupne Formation, with 5 metres of intra-Draupne sandstone of poor to moderate reservoir quality. Well 33/6-5 S was terminated at a shallower level than the planned secondary exploration target in the Statfjord Group.

Well 33/6-5 S was drilled by the Deepsea Yantai drilling facility, which will now drill development wells in production licence 586 in the Norwegian Sea, where Neptune Energy Norge AS is the operator.


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LUKOIL Increases Its Share in Shah Deniz Project

PJSC LUKOIL has announced the conclusion of an agreement on acquiring 15.5% interest in the Shah Deniz natural gas project in the Azerbaijan sector of the Caspian Sea from PETRONAS.

The value of the transaction will amount to $2.25 billion, and the completion is subject to fulfilment of conditions precedent, including approval by SOCAR, the State Oil Company of the Azerbaijan Republic.

Following completion of the sale, LUKOIL's interest in the project will increase from 10% to 25.5%. The other parties to the project are bp (operator, 28.8%), TPAO (19%), SOCAR (10%), NICO (10%), and SGC (6.7%).

The Shah Deniz gas condensate field is located in the Azerbaijan sector of the Caspian Sea, 70 kilometres southeast of Baku. The project is implemented under a PSA; commercial production there began in 2006. In 2020, Shah Deniz consortium extracted 18.1 bcm of gas and 3.6 million tonnes of gas condensate.

In 2018, the second stage of the project was launched, with annual production expected to reach 26 bcm of gas and 5 million tonnes of gas condensate. The gas is sold on the markets of Azerbaijan, Georgia, and Turkey. Since December 2020, it is also delivered to Europe via a pipeline system.

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Angola Expression of interest and Suspension

Afentra plc announced that it has submitted a non-binding Expression of Interest to Sonangol E.P to purchase interests in Block 3/05 and Block 23 in Angola.

This is in line with Afentra's strategy of acquiring assets across West Africa with solid low-cost production, proven reserves and significant upside.

Block 3/05 is located in the Lower Congo Basin and consists of eight producing fields - Bufalo, Cobo, Impala, Impala SE, Oombo, Pacassa, Palanca and Pambi. The block is operated by Sonangol alongside partners ENI, Gazprom, Maurel Et Prom, MOL and Somoil. Sonangol is expected to divest between 15 and 20%.

Block 23 contains the pre-salt Azul discovery with Sonangol expected to divest between 30 and 70%


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Panoro Energy - Provisional Exploration License Award Offshore Gabon

Panoro Energy announced that it has provisionally been awarded a 25.0% non-operated interest in exploration blocks G12-13 and H12-13 offshore shallow water Gabon, as notified in writing by the Minister of Petroleum, Gas and Mining of the Republic of Gabon.

The provisional license award is part of the 12th Offshore Licensing Round and remains subject to final agreement of the terms of the production sharing contracts with the Government of Gabon. Partners in the blocks will include BW Energy (37.5% and operator) and VAALCO Energy (37.5%).

The G12-13 and H12-13 blocks cover a surface area of 2,989 km2 and 1,929 km2 respectively and are adjacent to the producing Dussafu Marin Permit in which Panoro holds a 17.5% interest and is partnered with BW Energy. The G12-13 block is also adjacent to the producing Etame Marin PSC which is operated by VAALCO Energy. Both the Dussafu PSC and Etame Marin PSC continue to be successfully explored and developed by the partners with an estimated combined 250 million barrels discovered to date and multiple fields put into production.

It is expected that the PSC's over the two blocks will have an exploration period of eight years with an option to extend by a further two years. During the exploration period, the partners intend to carry out a work programme that may include reprocessing of existing seismic, new seismic acquisition and exploration drilling.

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Longboat Energy announces exploration results

Rødhette

Longboat Energy announced a discovery at the Rødhette exploration well, the first well in its fully-funded, seven well exploration programme.

The exploration well 7122/6-3 S encountered a 29-metre hydrocarbon column in the primary target in the Middle Jurassic Stø Formation. Data acquisition indicates a gas column of approximately 18 metres in the well over an oil rim.

Preliminary estimates by the operator place the size of the discovery between 9 and 12 mmboe recoverable (gross). As the Rødhette volumes are at the lower end of pre-drill expectations, both existing discoveries and additional prospectivity in the area will be considered in the evaluation of the commercial development potential of Rødhette through existing regional infrastructure. The well was drilled 30 km north of the Goliat field and 5 km south of the Tornerose discovery.

The well, operated by Vår Energi, was drilled on time and on budget and will now be plugged and abandoned as planned.

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Egyptian Vulture

There was further success with exploration well 6407/1-9 (Egyptian Vulture) drilled on Production Licence 939 in the Norwegian Sea. The Egyptian Vulture discovery has a very significant oil-in-place upside potential.

PL939 is operated by Equinor Energy AS with 55% working interest along with partners Pgnig Upstream Norway AS (30%) and Longboat Energy Norge AS (15%).

Equinor's preliminary estimate of recoverable resources in the Egyptian Vulture discovery is 19 to 63 MMboe (gross) and the oil-in-place volume has been estimated at 220 to 440 MMboe (gross). Egyptian Vulture sits in an area of significant infrastructure and export opportunities both for oil and gas. With tie-in opportunities with the nearby Åsgard and Kristin fields, both of which are also operated by Equinor, offering development options for Egyptian Vulture.

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The third well, Mugnetind, in licence PL906 was a minor oil discovery. Based on the operator’s preliminary estimates the discovery contain recoverable resources between 5 and 11 MMboe, which is not considered to be commercial in isolation.

The fourth well in the programme, Ginny/Hermine, is anticipated to spud before year-end.

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Maersk Drilling awarded a contract extension to drill world record well in Angola

Records are there to be broken and that is exactly what TotalEnergies, alongside its partners Qatar Petroleum and Sonangol are set to do in Angola!

Maersk Drillings Maersk Voyager is now on location and drilling the Ondjaba-1 exploration well in Block 48, offshore Angola. The well will be drilled in 3628m water depth beating TotalEnergies previous recorded for the Raya-1 well in Uruguay which was drilled in 3400m water depth.

Block 48 is operated by TotalEnergies (50%) alongside partners Qatar Petroleum (30%) and Sonangol (20%).

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Buffalo-10 spud on schedule

In Timor-Leste, preparation to spud the Buffalo-10 well is continuing, with the Valaris JU-107 jack-up rig which is currently working in the Timor Sea.

With a significant recoverable volume of resources - mid-case is estimated to be 31 million barrels - and a low minimum economic field size there is a strong likelihood this redevelopment will confirm a sanctionable economic project for Carnarvon and joint venture partner Advanced Energy.

With site surveys confirming the location is suitable for drilling activity, it is anticipated drilling will commence early next month and is expected to reach the reservoir in around 35 days.

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One Year Extension for the A4 License in The Gambia

In The Gambia, PetroNor has announced that it has received, from the Government of The Gambia, a one-year extension to the Longstop date of the Licence until 18 October 2022, which will enable the Company to progress its ongoing discussions with potential partners.

As set out in the announcement on 19 September 2020, in which the Company announced a settlement agreement with The Gambia resulting in the reinstatement of the A4 licence to PetroNor, the Company was granted a period of one year, ending 18 September 2021.

Independent assessments place the net unrisked mean prospective oil resources of A4 at approximately 2 billion barrels of oil.


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