All posts tagged featured

Nigeria: The Marginal Field Experiment At 10


Nine Nigerian independents have a particular reason for celebration this month; the 10th anniversary of the country’s experiment in marginal field operatorship.

In February 2003, the Nigerian government awarded 24 marginal field licences to 31 local enterprises, 24 of them designated operators with seven partners.
10 years after, seven out of those fields(or 29% of the assets) are in some form of sustained production.
The nine companies who own these fields are delivering gross production of 27,200Barrels Of Oil Per Day(BOPD) and 35Million Standard cubic feet per day(35MMscf/d) of gas.

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The “Tullow Model” Is Under Siege

The Tullow Model Is Under Siege

Analysts worry the UK Explorer may not meaningfully maintain production above 100KBOEPD until 2018

Tullow Oil’s newly cut image of the lead game hunter in the African frontier has come under attack.

“While still a best-in-class explorer”, says UK based Investec Securities, “it has grown increasingly leveraged to the “P” rather than the “E”.

The London listed independent is getting stuck in the exploration wilderness, spending money on vast tracts of underexplored basins even as its production flattens out. Uganda is not coming on stream as quickly as the company hoped as recently as 24 months ago; Ghana hasn’t reached peak production that was promised at on-stream date in December 2010.The company is the operator of the flagship oilfield project in Ghana and the main player in the upcoming production in Uganda.

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Tullow Probes The “Ramp” Prospect In Ethiopia


East Africa’s flagship wildcatter, Tullow Oil, was drilling ahead on the Sabisa-1 well in the South Omo Block in Ethiopia on January 23, 2013. The well is located on the ramp structure in the country’s onshore South Omo Basin (see seismic line). Sabisa 1, the first of two exploratory wells on the structure, is expected to take approximately 60 days to reach the planned total depth of 2,600 meters.  The British explorer operates the acreage with 50% and has partners including Africa Oil Corp, with a 30% working interest and Agriterra Limited holding the remaining 20% interest. Marathon Oil Ethiopia has announced a transaction to purchase Agriterra’s interest in the South Omo Block. This transaction is subject to Ethiopian Government approval. 

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Eni Stays The Course In Sankofa

Eni Stays The Course

Italian major  Eni encountered 32metres Net Oil Sand in a gross column of 76metres, in Sankofa East 2A, its first appraisal of  the Sankofa East oil discovery, in Ghana’s prolific deepwater Tano Basin. The oil is 30° API, and is stored in sands of cretaceous age.
The well also saw 17metres net gas and condensate out of 23metres of column  net), and 76m of gross oil pay in sands of cretaceous age.

Eni’s spokesmen say that the Offshore Cape Three Points (OCTP) block is estimated to contain nearly 450 million barrels of oil and recoverable resources of about 150 million barrels.
The well, which was spudded in 990 meters of water, reached a total depth of 4,050m and discovered extension of the oil reserve in the Cenomanian sequence.

Information from the drilling has confirmed hydraulic communication in the oil prone reservoir between the discovery and the appraisal well, which has prompted Eni to start commercial exploitation of the oil reserves. Eni, through its subsidiary, Eni Ghana Exploration and Production operates the block with 47.2% interest and has partners including Vitol Upstream with a 37.8% interest and Ghana National Petroleum with the remaining 15% interest including an option for an additional 5% share.

Testing Begins In Twiga South 1

Testing begins in Twiga south

Tullow Oil has commenced a testing programme, on Twiga South-1 onshore Kenya and is expected to be completed by February 2013.
Operations following testing will include the drilling of the Etuko-1 well on what was formerly known as the Kamba prospect and flow testing Ngamia-1, the first commercial discovery in the country.

The Twiga South test “is to build up our knowledge of the natural variance in reservoir performance”,  the company says, “ Test flow rates are not expected to exceed 500 BOPD per interval due to the limits of the test equipment, reservoir energy and thereservoir quality”. Five tests are planned with three in the Upper Lokhone reservoir.

TOTAL Hits A Dry Patch In Uganda

TOTAL Hits A Dry Patch In Uganda

Four wildcat exploration wells were drilled in TOTAL operated EA 1A block in Uganda in December 2012. Three of them failed to encounter commercial pool of hydrocarbons. The wells were drilled to delineate the ultimate basin potential ahead of potential relinquishments.

Riwu-1 (tested far northwestern limits), Raa-1 (tested northern extent), and Til-1 (tested far northeastern limits) did not encounter commercial hydrocarbons. Lyec-1 successfully tested the northern extent of the Jobi East accumulation, encountering oil pay, which is currently under evaluation and re-mapping.

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Dana’s Gas Plant Achieves Steady State Cash

Dana Gas Chieftains

Production rate averages 75MMscf/d…while full stream is expected to be 150MMscf/d

Dana Gas PJSC says it has made $ 7.7 million revenue in on its Egyptian Bahrain Gas Derivatives Company “EBGDCo” Natural Gas Liquids (NGL) extraction plant at Ras Shukheir, Egypt.

The company has used $2.8MM, or 36% of the money, to repay the first instalment of the project’s development financing.
NGLs extracted at Ras Shukheir are exported to international customers.

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Uquo Reaches First Gas


Frontier Oil operated Uquo field onshore south east Niger Delta basin flamed to life at 4pm on the 29th of December 2012.  The company is now commissioning the 200MMscf/d Uquo field Ekid gas plant. Frontier Oil hopes to start commercial gas production to Ibom power, through the 66km Accugas pipeline  (operated by Seven Energy) by end January 2013. The Uquo Field is a gas field with an oil rim. Frontier anticipates that production from the oil rim will commence around end of March 2013.

Two Steps To First Gas Off Mozambique

American independent Anadarko took the second major step towards a Four Train, 20MMTPA LNG plant from Offshore Mozambique on Tuesday January 8, 2013.

The company’s award of a front-end engineering and design (FEED) contract to a Joint Venture vehicle comprising Fluor and JGC comes two weeks after it reached Heads of Agreement (HOA) with Eni, establishing foundational principles for the coordinated development of the common natural gas reservoirs spanning both Mozambique’s Offshore Area 1 (operated by Anadarko) and Offshore Area 4 (operated by Eni). Anadarko targets the first LNG cargo for 2018.

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Oando’s Expensive Route To 25,000BOPD


The potentials and downsides of the biggest onshore Niger Delta asset sale in History

Oando’s ongoing purchase of the Nigerian assets of ConocoPhillips, the American independent, is a historical event. The price on the table is larger than the proceeds of any single bid round in the country in the last 10 years.

The invoice total comes to $1.79Billion, of which $1.6Billion will be paid by the Nigerian company for 20% stakes in four onshore assets, all of them operated by Agip and producing roughly 100,000 Barrels of Oil Per Day(BOPD) gross, which translates to 20,000BOPD net to Oando, on final purchase, around March 2013. The remaining $190Million is what Oando is paying for ConocoPhillips’ deep-water hydrocarbon properties. The $1.6Billion bill for onshore assets is the biggest price any one company has paid for an onshore asset or group of onshore assets in Nigeria.

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