FEED will Start on VAALCO’s Eq Guinea Project, but No Clear Sight to FID - Africa’s premier report on the oil, gas and energy landscape.

FEED will Start on VAALCO’s Eq Guinea Project, but No Clear Sight to FID

Houston based minnow VAALCO says it will now proceed with its Front-End Engineering Design (FEED) study on the devilment and production of the Venus field, after the Government of Equatorial Guinea approved the Joint Operating agreement (JOA) related to the previously approved the Plan of Development (POD).

Venus has estimated 23.1Million barrels of oil (MMBO) of 2P CPR (Competent Person’s Report) gross reserves, stored in 253 metres of water in the southern Atlantic.

“We anticipate the completion of the FEED study will lead to an economic Final Investment Decision or FID which will enable the development of the Venus POD”, the company says in a release.

The FEED is expected to result in, among others, a new proposed cost for the project, perhaps much different from the $310Million estimates for the development plan, approved in September 2022, based on three subsea wells tied back to a floating production, storage and offloading vessel, with first oil targeted by 2026 and initial production of about 15,000 barrels per day.

The Venus discovery was made in 2005 by US independent Devon Energy.

State hydrocarbon firm, GEPetrol purchased all of Devon’s Equatoguinean assets in 2008 and became operator of Block P. In November 2012, the Malaysian state-owned Petronas Carigali sold its 31% share in Block P to VAALCO Energy, who then became joint operator with GEPetrol.

Block P consists of the Venus Production and Development Area and the Block P Exploration area.

The entire acreage covers an area of 1, 480 square kilometres in the Rio Muni basin, in close proximity to Equatorial Guinea’s mainland.

The Venus Production & Development Area (VPDA) is limited to 227 square kilometres. Its stakeholders include GEPetrol (joint operator 58.4%, paying interest 38.4% plus 20% carried interest), VAALCO Energy (joint operator, 31%), Atlas Petroleum International (5.6%) and Crown Energy AB (5%).

The 1,253 square kilometre Block P Exploration area is held by GEPetrol (operator, 90%) and Atlas Petroleum International (10%). It contains a number of exploration prospects, chiefly the SW Grande Prospect and the Marte Prospect, “each of which has the potential to substantially add to the area’s reserves”, says Atlas Petroleum

 

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