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BW Offshore Makes New Finds in Dussafu

Oslo listed BW Offshore, has penetrated additional hydrocarbon-bearing reservoirs in the Dentale D2B and Dentale D6 reservoirs with the DTM3, an appraisal well in the Tortue field in Gabon’s offshore Dussafu Licence.
The well successfully delivered on what it was meant to do, which was to appraise the western flank of the Tortue Field, attempting to extend the known distribution of hydrocarbon resources within the Gamba and Dentale formations. 
“The drilling was completed on time, within budget, and without incident, and confirmed the following results:

  • Presence of oil in the western flank of the Gamba formation, which had recently been classified as Contingent Resources by Netherland, Sewell & Associates, Inc
  • Penetration of approximately 30 meters of hydrocarbon-bearing reservoir within the Gamba and immediately underlying Dentale subcrop sandstones at a structural position consistent with the pre-drill estimates”, says Panoro Energy, another Oslo listed company, and a minority partner in the project.

Development of the western flank of the field is likely to form part of Phase 2 development at Tortue, where preliminary preparation has commenced, Panoro explains. “As planned, DTM 3 has been plugged and abandoned. Operations are now underway to drill and complete the second horizontal production well, DTM-3H, which will target the Gamba Sandstone formation in the central part of the field”. 

NewAge Starts Drilling Campaign For 2Tcf of Gas in Cameroon

London based minnow NewAge African Global Energy, has the Vantage Drilling owned jack up, the Topaz-Driller rig, in Cameroon waters.  

The two well appraisal drilling campaign on the Etinde asset, in which the Company holds a 25% interest, is due to commence shortly with the IM-6 well expected to spud at the end of May, 2018.

The plan is to prove up to 1 to 2Trillion Cubic Feet (Tcf ) reserves of natural gas, which will support a 70MMscf/d gas to power project for the country.

NewAge is also looking to monetise the gas resources for an FLNG project.

The Topaz-Driller has been contracted for 150 days.  

Somali Data Looks Good, But Who Will Drill It?

Sterling Energy says there are “encouraging technical indications”, from its review of the two dimensional (2D) seismic dataset acquired by the government of Somaliland, but the company’s published update on operations in the country doesn’t point to a probable time of drilling any prospect.

Somaliland is a sovereign territory outside of the war ravaged Somali.

Sterling, a 34% non-operating partner, “is undertaking a highly focused and rigorous processing effort, independent of the Operator, with the primary technical objective of improving the deeper subsurface image”, the update says. “The first phase deliverables will be a full pre-stack time migrated dataset, consisting of 3 lines of approximately 235km”.

This is about the Odewayne (onshore) Exploration Block, for which production sharing agreement (‘PSA’) was awarded as far back as 2005. That agreement is in the third period, and the government has been generous. The companies; Genel Energy, which is operator and Sterling, have not had to spend a single cent on data acquisition and they have no clear path to drilling, even after the government acquired data and handed it to them. “The minimum work obligation during the optional fourth period of the PSA (also extended by 2 years to May 2020) is for 1,000km of 2D seismic and one exploration well”.

That obligatory 1,000Km of data was acquired by the Somaliland government, rather than the contracting parties, in 2017.

There’s a lot of technical framing of a statement that’s ordinarily meant to say: “We are not ready to invest up to the drill site on this block. Read the following from Sterling’s update: “There is an option in place for a second phase of processing on the remaining 765km (13 lines) of data; the decision to progress to this optional second phase will be made once the initial deliverable have been received and assessed. This workflow will allow for an informed technical and commercial perspective on the block in H2 2018”.

Here is the thing: unless another partner comes into the block, there is no likelihood that either Genel or Sterling will drill any well here, even in 2022.

NDPR Moves Rig To Ogbele, With Omerelu in Sight

Nigerian independent Niger Delta Petroleum Resources (NDPR), commenced a 3 well campaign on the Ogbele field in mid-March 2018.

It is the company’s fourth Drilling Campaign on Ogbele and “it will be a field life changing exercise”, gushes Layi Fatona, the company’s outgoing Managing Director.

NDPR plans to move the rig to drill one well in another small field: Omerelu, after the Ogbele campaign.

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Angola Rig Activity Drops Again

There are five rigs active on the same number of locations in Angola as of March 28, 2018, which means a drop of one rig compared with the situation on February 28, 2018.

Seadrill’s West Polaris, which was drilling for ExxonMobil on Block 15, has left the country.
ExxonMobil is still an active driller though, so is TOTAL.

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Nigeria’s Rig Activity Bumps Up

By Toyin Akinosho

Nigeria’s rig activity has bumped up by more than 50% in the last 12 months.

There were 20 rigs actively working in the country’s onshore, shallow water and deepwater in February 2018, compared with 14 rigs in February 2017.
The busiest company remains Sterling Exploration, an Indian player operating two acreages and responsible for around a third of the country’s overall drilling activity.

Indigenous companies have been quite consistent, considering their size, in the last three years.

They still are.

But more international oil majors have emerged from their retreat, increasing the frenzy, according to the monthly rig report compiled for Africa Oil+Gas Report by Ofserv, a well service and production consulting company.

TOTAL was on two shallow water locations with two jack ups, as well as a deepwater location, during the month in review.

ExxonMobil has, for the first time in three years, returned to drill on the shelf (shallow water), though it has dropped its deepwater rigs.

Chevron has been the most active company with the drill bit, among the majors, in the last two years. It has a rig each onshore, shallow water and deepwater, making three.

Full details of Nigeria’s monthly rig activity can be found in this link.

Conoil Breaks the Cretaceous Code in the Niger Delta

By Toyin Akinosho

The Nigerian junior, Conoil Producing, has encountered “possibly commercial sized” hydrocarbon footage in a cretaceous sequence in the Toju Ejanla-1 in Oil Mining Lease(OML) 103 in the western flank of the Niger Delta.

The well was drilled in a corner of the lease that is the boundary between the Niger Delta and the Benin Basin.

The company is using the Adriatic-1, a jack up rig operated by Shelf Drilling.

Discoveries have been made in two reservoirs but details are still sketchy as testing/sampling is still ongoing to know the extent of their materiality.

Conoil is not in a hurry to drill either an appraisal well or other prospects that are on trend with the Toju Ejanla structure, but would rather integrate the data into ongoing studies.

It is unusual to find hydrocarbon in the Cretaceous sequence of the Niger Delta, which is a tertiary basin. The North western flank of the Niger Delta, in which OML 103 is domiciled, is close to the boundary of the Benin Basin, whose sedimentary deposits are located in the cretaceous, an older geological sequence. Which begs the question as to whether this “discovery” is in the Benin Basin, or in the Niger Delta. Either way, if it is announced to be commercial, it would be a significant find.

GABON: BWOffshore Runs With The Dussafu Plan

By Toyin Akinosho

With proved reserves of 16MMBO, field is unlikely to deliver more than 6,000BOPD

BWOffshore spud the first of the two producer wells in the final lap to first oil in the Dussafu Acreage offshore South Gabon.

The Norwegian operator is angling for first oil from the field in the second half of 2018.

The DTM-2H production probe, on the Tortue oil field, in 116metre water depth, part of the Dussafu Marin Production Sharing Contract, is being drilled with the Borr Norve jack-up rig.

The Tortue field contains oil reserves in two main sandstone reservoirs – the Gamba and the Dentale D6.

DTM-2H is a horizontal well targeting the Dentale D6 reservoir at 3,140 metre true vertical depth (TVD) subsea. Following drilling, the well is intended to be completed as a gas lifted, subsea oil production well with an approximate 500 metre horizontal drain. The drilling and completion for DTM-2H is expected to take approximately 70 days. Following the drilling of the DTM-2H well the rig will move first to drill the DTM-3 pilot hole in order to appraise the northwest of the Tortue field in both the Gamba and Dentale reservoirs. Subsequently, the rig will drill the DTM 3-H production well targeting the Gamba reservoir at Tortue. The two production wells will be tied back to a leased floating production, storage and offloading (FPSO) vessel via subsea trees and flowlines.

The partners have not shared the likely production rates after the wells have been hooked up, but with proved reserves being 15.9Million barrels of oil, certified by NSAI, an industry authority on reserves calculation, the optimum outut should be around 6,000Barrels of oil per day.

Preowei-3 Tops Up The Volume in TOTAL’s Deepwater Reservoirs

A third field can now be developed in OML 130, after Akpo and Egina

TOTAL has discovered new oil in its operated Oil Mining Lease (OML) 130 in deepwater Nigeria.
The evaluation of the results of the Preowei-3 well, concluded in late November 2017, indicate an addition of approximately 80 to 100 Million barrels of oil (MMbo) to the full field contingent recoverable resources, bringing them to 140 to 200MMbo.

Preowei is the third producible oil accumulation in OML 130, which hosts the giants Akpo (in production since 2009) and Egina (with expected first oil in late 2018).

The Preowei-3 well, drilled to a final depth of 3,235 meters, encountered approximately 50 metres net of high-quality oil-bearing sandstone reservoirs, in line with expectations. The well confirms previous results from the Preowei-1B and Preowei-2 wells, which encountered approximately 55 metres of oil-bearing sandstone reservoir.

This result means that Preowei can be developed as a field, and deliver around 40-50,000barrels of oil a day (BOPD). “We are encouraged by the results of this well which confirm the commercial viability of this
deep offshore discovery.

TOTAL is now progressing discussions with our partners and the authorities regarding the development of this resource,” said Arnaud Breuillac, President Exploration & Production at TOTAL.

TOTAL Upstream Nigeria Limited operates OML 130 with a 24% interest, in partnership with
Nigerian National Petroleum Corporation (NNPC), South Atlantic Petroleum (SAPETRO),
CNOOC Limited and Petrobras.

CBGS’ Party, China’s Celebration

The world’s ‘largest geophysical company’s ets on its 20th Year of Winning in Africa’s E&P

It was a party called by a Nigerian service contractor, which turned out to be largely a celebration of China’s twenty years in African hydrocarbon exploration and production.

The world’s second largest economy first arrived in the African oil industry in the mid- nineties as a contractor. The Bureau of Geophysics (BGP), a subsidiary of China National Petroleum Corporation (CNPC), won a seismic acquisition contract from Shell in 1998.

The Anglo Dutch giant was reluctant, but Nigerian National Petroleum Corporation NNPC, the country’s state hydrocarbon company, insisted on opening up the competition to non-western service companies.

BGP fumbled in its first shoots, but the evidence in hand today suggests that it was all a matter of teething. The company went ahead to win a Shell award after that project, successfully executed more contracts and at some point, started squeezing the older, more established geophysical companies from the Western hemisphere out of the market with its low bid prices.

The gentlemen who addressed the investment forum organised by CBGS- a Nigerian seismic processing company- last Tuesday, looked many times more dapper and flashier than the Chinese men in crumpled suits who showed up on the second floor of Chevron Nigeria headquarters in 1997, proposing to acquire and process seismic data for the American company; one of the many solicitation visits marking BGP’s arrival on the continent.

Indeed, the spokes persons at the forum were Western gentlemen, while the Chinese stayed in the background.Their names are withheld because “BGP doesn’t want press coverage”.

By 2003, BGP had become the largest land acquisition company in the world, the forum heard. “In 2015, we became the world’s largest seismic service provider”, the lead presenter noted, with a follow up remark: “Everyone thinks that CGG is still the biggest seismic service provider, but we are”.

He didn’t exactly provide the financial data, nor the company capitalisation to support the claim, preferring, essentially, to lay out the head count and company infrastructure: BGP has 22,000 employees, 115 land crews, six streamer vessels and 10 shallow water Ocean Bottom Node (OBN) vessels.

BGP Marine, a recently formed arm of the company (founded in 2006), had carried out 120 marine projects. The purpose of the forum, indeed, was to show the company’s capacity for acquiring Ocean Bottom Node seismic, especially for high grading existing oil field production projects in shallow water terrain.

CBGS is the Nigerian Local Partner for BGP Marine. “Our objective is to build local capacity and knowledge in Ocean Bottom Seismic (OBS), technology in Nigeria”, says Bank Anthony Okoroafaor, CBGS Chief Executive.“My first step is this Technology forum and training of about 40 persons on OBS on first phase”.

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