All articles in the Oil patch Sub-Sahara Section:


FAR Will Spud its Second Well in The Gambia in 4Q 2021

Australian explorer FAR Limited, says it has locked in the timetable for drilling the Bambo-1 well offshore The Gambia by executing a contract with Stena Drillmax Ice Limited to commence drilling operations in the fourth quarter of 2021. 

The Bambo-1 well in Block A2 offshore The Gambia, is designed to drill into three prospects with a total estimated recoverable, prospective resource of 1,118MMBbls (arithmetic sum of the Best Estimates, 559MMBbls net to FAR) and the chance of geological success for the various horizons range from 7% to 37%, FAR says in an extensively detailed release.

“These target reservoirs are: 1. Soloo – The extension of the hydrocarbon-bearing reservoirs in the adjacent Sangomar Oil Field, offshore Senegal. 2. Bambo and Soloo Deep – two additional prospects, not drilled during the Senegal drilling campaigns”, the company reports. 

These two prospects carry a lower chance of success but higher volume of hydrocarbons, FAR explains. “The technical assessment of the Bambo Prospect has greatly benefited from FAR’s extensive database and experience in the region and learnings from FAR’s involvement in the 11 successful wells in Senegal and the Samo-1 well drilled in 2018”. 

FAR is Operator with a 50% working interest in the A2 and A5 permits with its joint venture partner, PC Gambia Ltd, a subsidiary of Petroliam Nasional Berhad (PETRONAS). 

If successful, a discovery could result in a standalone development which would be The Gambia’s first oil production.


PACEGATE Commissions Drilling Fluids Manufacturing Plant

By Foluso Ogunsan

PACEGATE Energy & Resources Limited (PEARL) has launched a drilling fluids manufacturing plant in Nigeria and by extension West Africa.

The company will formulate specialised drilling fluids at this ultramodern plant located in Ilupeju, an industrial estate located in the north of Lagos, Nigeria’s commercial city.

PEARL says that the oil field chemicals to be produced fall into three categories including:

  • Corrosion Inhibitors, Biocides, Oxygen and H2S Scavengers, Scale/Salt Inhibitors and Desolvers for Asset Protection and Integrity.
  • Demulsifiers, Defoamers, Flocculant and Water Clarifier or Deoiler for Phase Treatment and Separation.
  • Depressants/Removers, Gas Hydrate Inhibitors and Well Stimulation fluids for Flow Assurance and Well Stimulation Chemicals.

Other products include Glycols, Solvents Amines, Alcohol, Industrial Chemicals, Cleaner and degreasers for the refining and transportation industry.

“We are specialised in things that will enhance stability of drilling activity”, the company says. The chemical plant has a production capacity of 12,900 Metric Tonnes per annum.

The idea to venture into manufacturing of drilling chemicals for the upstream hydrocarbon industry, has so impressed the Nigerian Content Development Monitoring Board (NCDMB), that the agency awarded PEARL the “Nigerian Equipment Certificate”, guaranteeing PEARL the first right of refusal to the chemicals produced and coming out of the facility by hydrocarbon producing companies and their service-related affiliates.

PEARL was established in 2020 as an indigenous local content company seeking to provide indigenous oilfield solution via chemistry to the oil and gas drilling, refining and transportation sectors of the economy.  It exclusively represents Canadian Energy Services, its technical partners, in Africa through the ADIPRO.

Manoj Kirpalani, a second generation Indian-Nigerian who is PEARL’s Chairman, traces the history of its existence from 1979 when it was formed by his father as an importer of finished goods to an in-country manufacturer of specialised production chemicals that it is today.

Niyi Adebayo, Nigeria’s Minister of Investments and Trade who formally commissioned the plant, described it as “first local content chemicals manufacturing plant in Nigeria”.

The Ilupeju facility includes a steel drum manufacturing plant, a chemicals manufacturing plant and a laboratory and has a branch in Port-Harcourt, in eastern Nigeria. PEARL also has plans to open up another arm at the Lekki free Trade Zone, a growing industrial suburb in the east of Lagos in the coming years, targeting exports.

“As long as crude oil is still being extracted here, production chemicals are our primary focus. Our secondary focus is gas treatment chemicals as gas grows here”, says Umesh Amarani, PEARL’s Managing Director.


M&P to Return to Development Drilling in Gabon’s Ezanga Permit

By John Ankromah, in Libreville

Paris based, Indonesian owned Maurel et Prom (M&P) is to return to its development drilling campaign in the Ezanga permit, onshore Gabon, in the second half of 2021.

The programme continues the exploration and development drilling campaign on the permit, which started in late 2018, to support the production profile and counteract the fields’ natural depletion. The campaign has utilised two rigs so far.

In the first quarter of 2021 (1Q 2021) M&P’s working interest oil production (80%) on the Ezanga permit was 15,120Barrels of Oil Per Day (BOPD) (gross production: 18,901BOPD), more or less unchanged from Q4 2020 (15,096BOPD for M&P working interest). Production from the field was limited to 19,000BOPD (or 15,200BOPD net to M&P’s working interest) due to production cuts imposed under OPEC quotas.

M&P is, in addition to the drilling, carrying out an extensive optimization process on the field; is implementing Electric Submersible Pumps (ESPs) services as well as Pigging.

 


BW Energy Starts a Three Well Drilling Campaign in Gabon

Norwegian independent BW Energy has initiated its 2021 Gabon drilling campaign with the spudding of the Hibiscus Extension well on the Dussafu Marin Permit. This will be followed by drilling at Tortue and Hibiscus North.

The company considers Hibiscus Extension as its largest potential impact well this year.  The Borr Norve jack-up drilling rig will then proceed to drill the final production well at Tortue before drilling another exploration well at Hibiscus North to further test the significant upside at Dussafu.

Hibiscus and Tortue are two out of a total of six discovered fields within the Dussafu Permit offshore Gabon.

The Hibiscus Extension well (DHIBM-2) is located about 56 km offshore Gabon in 119 m water depth. The well is planned as a vertical well to test structure, oil and reservoir presence in what is believed to be a possible northerly extension of the Gamba reservoir in the Hibiscus field. The DHIBM-2 well is positioned approximately 3 km northwest of the Hibiscus discovery well (DHIBM-1) drilled by the joint venture in 2019. The DHIBM-1 well and its appraisal sidetrack established a 2P gross recoverable reserve of 46.1 MMbbls at the Hibiscus field.

The DHIBM-2 well is expected to take around 30 days to drill and log to a total depth of 3,500 metres. In the event of success at DHIBM-2, one or two appraisal sidetracks may be drilled to further delineate the field.

Success at the Hibiscus Extension well and sidetracks could significantly increase the total reserves at Hibiscus. The Hibiscus/Ruche development project, based on the already discovered reserve at Hibiscus, is currently planned to consist of a converted jackup tied back to the FPSO with 12 development wells drilled in two phases, with first oil in early 2023. The additional reserves at Hibiscus, if proven by the DHIBM-2 well, would require additional wells and possibly a converted jackup to fully develop the potential in the area.

 


Nigeria’s High Well Costs are at the Heart of its CAPEX and OPEX Challenges

By Ahmed Gafar, in Lagos

The astronomically high drilling costs of wells in Nigeria are key to the challenges faced by operators in reining in operating and capital expenses, an industry service provider has suggested.

If Africa’s highest crude oil producer is to reach its target of delivering Four Million Barrels of Oil Per day (4MMBOPD) in the near term, those costs need to be brought down, argues Hope Okwa, Founder/ Managing Director of Hd Okwa Drilling Services.

Hope Okwa

“A 10,000 feet well producing only 3,000 BOPD costs up to $25Million to construct in Nigeria”, Okwa allows. “To move from the current 1.5MMBOPD to 4MMBOPD requires massive well construction activities, in the order of over 800 wells per year. The associated investment is $21Billion per annum. Where will this investment come from, especially in an era where top global financiers are moving their investment to renewables?”. 

Okwa is persuasive that he is not just throwing numbers around: “$25Million per well cost is true for land, swamp and shallow offshore, as the rigs all use surface blowout preventers.

“The only way is to rethink well construction efficiency, with a view to drastically reducing well costs from current levels”, he contends. “The sources of inefficiencies in well construction, is very much within our expertise”, Okwa declares: “it is very urgent to implement these solutions”, as “in nine (9) years’ time in 2030, the advanced countries will pivot away from fossil fuel.  What will then happen to Nigeria’s reserves of 37Billion BO?”

 

Okwa’s benchmark is North America. “In Canada/USA, the rig rate for land is $32,000/day compared with $25,000/day for Nigeria. A 10,000 feet land well takes eight (8) days to drill while it takes 83 days in Nigeria. The Canada/USA cost is less than $2Million, while Nigeria is $25Million. The Canadians and Americans achieve the success by efficient well design (without gold plating as we do in Nigeria, efficient supply chain management, avoiding NPT and applying the science of drilling optimisation. We are experts in these areas. I should add that we are currently preparing to execute a $5Million horizontal well for a Nigerian marginal operator, applying our techniques”..  

Cost control in oilfield activities has been a front burner issue in Nigeria. Last February, the state hydrocarbon company NNPC had an elaborate event on cost optimization, at which Timipre Silva, Minister of State for petroleum, asked the country’s 34 oil and gas producing companies to join in working towards reducing operations cost to achieve the $10 or less per barrel production cost target.

Stakeholders have responded to Ministry of Petroleum’s call for cost control by naming causes including insecurity (You need gunboats full of naval officers on the way to rig-site) and taxation (government at all levels level multiple taxes: DPR hikes costs of obligatory services, State Governments demand various tariffs, Local Governments harass operators; communities hold up work; regulators sometimes delay). 

Okwa counters that “those issues relate to production mainly, and companies are having to trade off drilling wells due to the issues mentioned and high well cost”. 

 

Okwa has 29 years industry experience, the first 14 of which he spent in AngloDutch Shell, mostly on well engineering and drilling supervision. He had a stint at BG (the defunct British Gas) as a senior well engineer in the company’s Nigerian deepwater operations. He had a five year stretch as senior drilling and workover well engineer on critical gas operations at Saudi Aramco, after which he had another stint at BP Angola as senior drilling engineer.

“We believe that if we reduce well costs drastically.. we will be able to stimulate activities”, he says. “If we reduce well cost from $25Million to just $5Million hypothetically speaking, requiring only 20% of the previous investment demands, even local banks may be able to fund field development campaigns.

The full interview is in the link


Decklar Moves A Rig for Oza-1 Re-entry

Canadian minnow Decklar Resources has contracted a 1300 HP trailer-mounted drilling rig that is currently located in Port Harcourt, approximately 60 km from the Oza Oil Field in Nigeria’s Niger Delta Basin.

The drilling rig will be used for the re-entry and testing of the Oza-1 well, then immediately followed by the drilling of a horizontal development well from the Oza-1 drilling pad. 

Oza field is a marginal field operated by Millennium Oil &Gas, currently producing no more than 400Barrels a day. 

Decklar Resources has consummated a risk service agreement with Millennium Oil &Gas and its partners on the field, to fund and technically operate a revamp which will lead to increase in output.

The company says that drilling of additional development wells is planned after completion and analysis of the re-entry and horizontal wells at the Oza-1 location. 

It is anticipated that the drilling rig will commence its mobilization to the Oza Field in the week of April 12, 2021, with the move expected to take approximately seven days. 

Further, the camp to house the personnel engaged to provide support for operations and related logistics facilities is currently being moved and set up at the Oza Oil Field. 

Additionally, equipment and supplies with longer lead times that are needed to test and complete the Oza-1 well as part of the re-entry activities have been ordered, secured, and are expected to arrive in Nigeria over the next two to five weeks. Service contractors have been sourced and contracted for the near-term operational activities.


Tullow Kicks off a Multi-Year, Multi-Well Drilling Campaign in Ghana

Tullow Oil has announced the start of a multi-year, multi-well drilling campaign offshore Ghana with the commencement of drilling of the first well at the Jubilee Field yesterday.

The drillship Maersk Venturer, which has been contracted for four years, is expected to drill four wells in total in 2021, consisting of two Jubilee production wells, one Jubilee water injector well and one TEN gas injector well.

The 2021 drilling campaign is the first part of Tullow’s 10-year Business Plan which was presented at Tullow’s Capital Markets Day in November 2020. The Ghana portfolio has a large resource base with extensive infrastructure already in place.

“Through a rigorous focus on costs and capital discipline, Tullow believes that these assets have the potential to generate material cash flow over the next decade and deliver significant value for Ghana and investors”, the company says in a statement.

“Throughout this campaign, Tullow will continue to implement its Shared Prosperity strategy through a strong local content programme with suppliers in Ghana, the professional and technical development of Ghanaian nationals and continued investment in STEM education, enterprise development and shared infrastructure”.

 


Anglican Bishops Call for a Halt to Oil Drilling in Namibia’s Kavango Basin

Anglican bishops and archbishop from around the world have called for a Canadian company to cease oil drilling in Namibia’s Kavango Basin. The Bishop of Namibia, Luke Pato, called for a petition to halt the drilling by Reconnaissance Energy Africa, more commonly known as ReconAfrica. So far, he has the support of around 30 bishops and four archbishops.

The process the led to the drilling had not been open, Bishop Luke said. Namibians were “waking up to a mining venture that has already been signed and settled, he said, adding that there were “many questions to be answered.”

Signatories to the petition include Archbishop Thabo Makgoba of Cape Town, Primate of the Anglican Church of Southern Africa, Archbishop Linda Nicholls, Primate of the Anglican Church of Canada; Archbishop Julio Murray, Bishop of Panama, Primate of the Anglican Church in Central America, and Chair of the Anglican Communion Environmental Network; Archbishop Mark Macdonald, the National Indigenous Archbishop of Canadal; and Bishop Kito Pikaahu of Te Pihopatanga o Tai Tokerau in the Anglican Church of New Zealand, Aotearoa and New Zealand, Chair of the Anglican Indigenous Network.

The petition was delivered to the Namibian Government, the Namibian Consulate in Cape Town, and the headquarters of ReconAfrica in Vancouver, Canada. The company has the rights to drill for oil in more than 35,000 square kilometres of the Kavango Basin, an environmentally sensitive, protected area that supplies water to the Okavango Delta.

The Basin is a World Heritage and Ramsar Wetland Site, a key biodiversity area and one of the seven natural wonders of Africa. The region is home to the largest remaining population of African elephants, 400 species of birds and is a sanctuary for many other animals.

The petition says that the oil exploration violates the rights of the San people under the UN Declaration on the Rights of Indigenous people; and that there has not been an adequate environmental impact assessment.

It says: “Water is a scarce and precious commodity in Namibia, the driest country south of the Sahara. . . Concerns raised by local activists have been belittled and The Namibian, the national newspaper which broke the story, is being threatened with legal action.”

The petition calls on the international community for support. “Based on the principle of restorative social and environmental justice, the Bishops call upon the international community to support Namibia and Botswana to develop renewable energy systems and help safeguard the precious Kavango ecosystem.”

 


Savannah Slashes Planned Gas Drilling from Four Wells to One

By Macson Obojemiemoin

…British company annuls $53Million of planned expenditure on three wells and redirects money to gas supply optimisation

Savannah Energy has reported drastic changes in its planned principal work programme in the 2020-23 period. Those changes involve significant reduction in drill bit activity and acceleration of work on the midstream segment of the company’s natural gas production and supply business in Nigeria.

“The changes will see only one gas well drilled on the Uquo field, (as opposed to four assumed previously)”, the company says in a report.

Savannah will however accelerate the Uquo field compression project, previously assumed to commence in 2026/27, to 2021/22.

The change in drilling plans results from the company’s amendment of its planned four-year capital expenditure programme in Nigeria, as originally set out in the Nigeria Competent Person’s Report (the “Nigeria CPR”) published December 2019.

“The Company now expects to reduce its Nigerian capital expenditures by 15% over the 2020-23 period from approximately $118Million to S$100Million”, Savannah explains. “This has resulted in a reduction in the overall indicative Group capital expenditure plans of around 13% from $137Million to $119Million over the same period”.

Savannah explains in a spreadsheet that it will be spending $45Million between 2021 and 2022 on the Uquo field compression project, a project that was not in the previous plan. Conversely, it will be annulling the planned spend of up to $53Million between 2021 and 2023, a programme that was the most prominent in the previous plan.

These changes, Savannah, argues, follow “the completion of the relevant technical and commercial studies”.

Savannah assures that “the Uquo reservoir continues to perform in line with expectations and that the proposed change in the capital expenditure profile is not expected to impact Uquo field production or expected ultimate reserve recovery”. The amendments, it contends, “enhance the project economics of the ongoing Uquo field development”.

 

 


TOTAL Flows 4,330BPD of Condensate in South African Discovery

By Toyin Akinosho

French explorer TOTAL, has finalised a drill stem test on the Luiperd-1X well, its second major discovery on Block 11B/12B offshore South Africa.

The well was opened to flow on November 1, 2020.

After several tests at different choke settings, the well reached a maximum constrained flowrate through a 58/64″ choke of 33Million standard cubic feet per day of natural gas (MMscf/d) and 4,320 barrels of condensate per day (BCPD), an aggregate of approximately 9,820 barrels of oil equivalent per day (BOEPD), according to a report by Africa Energy, a junior partner on the asset.

”The choke configuration could not be increased due to surface equipment limitations”, Africa Energy explains. “The absolute open flow (AOF) potential of the well is expected to be significantly higher than the restricted test rates”.

TOTAL itself had reported the Luiperd-1X discovery last October, stating that the probe intersected 85 metres gross sands of which 73 metres is net good quality pay in the main target interval and thicker than prognosed.

The well reached total depth of approximately 3,400 meters on October 12, 2020, at which point the drill stem testing programme was initiated.

Africa Energy commented: “We are very pleased with the positive test results that show high condensate yield and excellent reservoir connectivity. These results confirm the joint venture’s decision to proceed with development studies and to engage with authorities about commercialization.”

Block 11B/12B is located in the Outeniqua Basin 175 kilometres off the southern coast of South Africa. The block covers an area of approximately 19,000 square kilometers with water depths ranging from 200 to 1,800 metres. The Paddavissie Fairway in the southwest corner of the block now includes both the Brulpadda and Luiperd discoveries, confirming the prolific petroleum system. The original five submarine fan prospects in the fairway all have direct hydrocarbon indicators as recorded on both 2D and 3D seismic data and intersected in the wells, significantly de-risking future exploration.

Africa Energy holds 49% of the shares in Main Street 1549 Proprietary Limited, which has a 10% participating interest in Block 11B/12B. Total E&P South Africa B.V. is operator and has a 45% participating interest in Block 11B/12B.

Africa Energy says it believes Luiperd and Brulpadda can potentially support a significant commercial development.”

 

© 2021 Festac News Press Ltd..