All posts tagged farm in-farm out


Nilepet May Be Fully Established After 2011

Southern Sudan, which has a semi-autonomous government now, will vote in 2011 on whither to remain united with the rest of the country or to establish its own independent state In accordance with a peace deal signed in 2005,. If southerners vote for the independence Nilepet would be southern Sudan national company. Currently, Sudapet, the state hydrocarbon company run from the central capital in Khartoum, undertakes the training of Nilepet staff.


Addax Buys More In Gryphon

GABON Swiss independent Addax Petroleum, has acquired an additional 18.75% interest in the Gryphon Marin license area, bringing its total interest in the license area to 68.75%, prior to third party back-in options. Addax Petroleum is the operator of the Gryphon Marin license area, which covers a gross area of approximately 2,409,200 acres (9,750 km2) and lies immediately west of the Iris Marin and Ibekelia license areas, and immediately north of the Corporation’s Etame Marin license, offshore Gabon.

Addax plans to commence exploration activities on the acreage with the spudding of the Ajomba North and Pompano North prospect wells during the first half of 2009, a company release said. Addax Petroleum holds a 5 1.33% interest in the Iris Marin license area and a 31.36% interest in the Etame Marin license area. The Gryphon Marin license area is in an exploration period ending in November 2009 and carries a commitment to drill two wells. Addax Petroleum has budgeted to drill the Ajomba North and Pompano North prospects in the Gryphon Marin license area in the first half of 2009.


Algerian Bid Round Is A Tssst

American companies stay out of the race

Algeria’s 7th bid round didn’t turn out to be the big bang that the energy press had expected. As it happened, only four bids were received and four awards made. They all went to European companies: OAO Gazprom, Eni SpA, BG Group Plc, and E.ON AG.

At the first announcement in July 2008, more than 50 international companies expressed interest in bidding and numerous firms were pre-approved as operators. Somewhat surprisingly.

However, with the recent economic downturn the actual bidders were few. According to Chakib Khelil, Algeria’s Petroleum Minister, only four of the 16 blocks on offer received bids.

The four licenses went to Russian, European, and UK firms including Russian gas giant Gazprom, who was awarded the El Assel license. BG Group plc won the Guern El Guessa license. Italy’s Eni was awarded an exploration license in Kerza, while E.ON AG’s Ruhrgaz won the Rhourde Yacoub permit.

The 7th international bid round was the first to be held under a 2006 law that gives state parastatal Sonatrach at least a 51% share in every oil and gas exploration contract with foreign partners. This, in addition to the current economic crisis which has E&P company shares trading at a huge disadvantage, and the difficulty in accessing capital, could all have contributed to the low level of participation.

Khelil said the government planned to launch another round in 2010 to award those zones included in the 7th exploration and production licensing round. “We will launch another tender next year after evaluation,” he said after the bids opening ceremony.


Canamens Ventures into Eassaouira

Canamens has signed a suite of agreements — including an Association Contract, a Petroleum Agreement and a Reconnaissance Contract, along with associated permits and a license — to explore for oil in Morocco.

These agreements were signed in Rabat on December 15, 2008 between Canamens and Morocco’s Office National Hydrocarbures et des Mines (ONHYM).

The first agreement is a Reconnaissance Contract in respect of the “Essaouira Shallow Offshore” area, located in shallow water (<500 metres). Canamens will reprocess and acquire new 2D seismic and following evaluation prospectivity, decide whether to convert the license to an exploration permit, or elect not to proceed.

The second and third agreements are an Association Contract and Petroleum Agreement which govern four Exploration Permits for a similar location but in deeper water (generally over 500 metres), the “Essaouira Deep Offshore” area. Under these agreements Canamens will reprocess and acquire new 2D seismic and, following evaluation, have the option to extend into a second period with an accompanying 3D seismic and drilling commitment, or drop without further obligation.

Under these agreements, which cover an area of over 11,000 square kilometres, Canamens will be the operator with a 75% equity stake in both the Reconnaissance Licence and the Exploration Permits, with the remaining equity held by ONHYM. Canamens will bear 100% of the costs up until the development stage. The agreements represent Canamens’ first investment in Morocco.


Tullow Gives Up A Bird in the Hand

The Irish Operator Sells Off A Producing Asset In Congo In Favour Of Development of Spectacular Discoveries In Ghana and Uganda

WHEN TULLOW OIL ANNOUNCED it was selling off its interest in a 46,500BOPD field(2007 average) onshore Congo, some analysts wondered whether that wasn’t a lot to give up for a mid sized independent, especially in an era of high oil prices. The ostensible reason for selling was to raise cash to spend on the promising discoveries in deepwater Ghana and onshore Uganda.

Is that not losing a bird in the hand for two in the bush?

Afterall, deepwater development, at 1,200 metre water depth anywhere, is quite expensive and the Ugandan discoveries, which are over 1,200 km from the nearest seaport, don’t look, on paper at least, like an immediate cash cow.

The questions stopped when it was realized that the Irish operator was getting $435 million from the Korea National Oil Company for giving up about 5,000BOPD of the Mauriel et Prom operated M’boundi field. This is 11% stake. Tullow outrightly sold its subsidiary company – Tullow Congo Limited- to the Koreans. Mboundi is undergoing an injection of 1 0,000Barrels Of Water Per Day (BWPD) which will increase to 40,000BWPD by the end of 2008. Is this the evidence that the reservoirs are difficult to manage? “M’Boundi is now entering a new phase in its development at a time when Tullow is also looking to reallocate capital resources to projects where it has more material participation and influence”, Tullow said in a release.

Tullow’s cash flow comes mainly from Gabon, Equatorial Guinea and Cote Dlvoire, where assets are delivering over 35,000BOPD on a net basis. Tullow is going to be leveraging on the cash generated from fields in these countries as well as money from the Mboundi disposal to advance its appraisal and development programmes in Ghana and Uganda and to continue business development elsewhere.

For some reason, Tullow has been looking to get out of Congo. Two years ago, there was a buzz all over that the Irish owned operator would sell its 4%interests in the Moho-Bilondo, N’Kossa and N’ Soko exploitation permits offshore Congo to TOTAL for $72MM.

Tullow has also divested its 15% in Block 24, located in an unremarkable site off Angola. The acreage is in Benguela sub basin, where oil majors have endured a spate of dry holes. Tullow, however is keen on its 50% participation in Block 1/06, containing three undeveloped oil fields located in the prolific Lower Congo Basin. Tullow is equally bullish on Cote Dlvoire, where it has interest in the 27,000BOPD East and West Espoir fields with 3,000BOEPD of associated gas. Upgrading the processing facilities will increase the liquid handling capacity from 50,000 to 70,000 BFPD by early 2010. This upgrade could also facilitate a further infill drilling programme on East Espoir and the earlier tie-back of potential satellite fields. This is another reason to raise cash.

There are challenges here and there, of course.  Tullow is having a hard time convincing the Namibian authorities to move forward on the 1 .3tcfKudu gas project. The latest report is that Namcor, the state power utility, has dropped down Kudu Gas-to-Power project on the list of its priority power projects, describing it as marginal and a non- commercially viable standalone project, “as it is characterized by a high US dollar-denominated gas price, meaning that the foreign exchange and hedging cost will translate into high electricity tariffs.”

Tullow and its partners have commenced field development studies to ensure earliest first production of the deepwater Jubilee field(formerly known as Mahogany and Hyedua) off Ghana. Two rigs have been contracted to drill up to seven exploration and appraisal wells. In Uganda the Ngassa well was progressing as of the time of writing this report and the Butiaba multi-well programme was scheduled to commence in March on the Taitai prospect.

Tullow has been bullish on Uganda, but the uncertainties of the region cannot be dismissed out of hand. Operators here could easily find themselves in the crossfire between troops loyal to President Yoweri Museveni of Uganda and those who back Joseph Kabila of the Democratic Republic of Congo. The low intensity war in the Great lakes region can blow up in anyone’s face.


SOCO farms out Marine XI block interest

 CONGO

SOCO Exploration and Production Congo S.A. has agreed to farm-out 8.5% of its interest in the Marine XI block, offshore the Republic of Congo, to Petrovietnam Exploration Production. The deal is subject to government approval. SOCO EPC will remain the operator with a 29% working interest in the block. The remaining interests are held by Lundin Marine SARL (18.75%), Raffia Oil SARL (18.75%), the national oil company Société Nationale des Pétroles du Congo (15%), and Africa Oil & Gas (10%). The Marine XI block is in water depths ranging up to 110 metres and covers approximately 1,400 sq km. A multi-well drilling programme is scheduled for the second half of 2008.


Shell Gets Som More Off Gabon

GABON

Shell has been granted offshore blocks BC 9 (5,279 sq km) and BCD 10(8,435 sq km) in Gabon. The licences are adjacent and mainly located in deepwaters, south of Perenco’s Arouwe permit and west of Forest Oil’s Gryphon Mann permit. The permit date is September 13, 2007.


SEYCHELLES Petroquest Gets More Time

A six -month extension has been granted to phase 1 exploration of the 21,600 sq km Petroquest licence area, pushing expiry to August 2008.

The six-block acreage is currently shared between 86.5% operator Petroquest (op) and East African Exploration which holds 13.5%. Partners are being sought.


Frazimex Needs A Farminee In Sierra Leone

SIERRA LEONE

Frazimex, the Nigerian minnow, is seeking partners to share exploration in the 3,860 sq km offshore block SL-3,  off W-central SL. The contract is nearing the end of its first three-year term which called for 1,200km of 2D seismic and 300 sq km of 3D seismic. Phases 2&3 (2 years each) require an exploratory well, and further seismic is planned. Contact emekobi@frazimex.com.

 


DualEx Has Its Way In The Pelagian

TUNISIA

Tunisian authorities have approved DualEx’s application for exclusive rights to the 416-sq km undrilled Bouhajia block, onshore Pelagian Basin. The block was awarded under PSC terms. DualEx is expected to collect 100km of2D seismic data in two years, and should drill one well in the ensuing two years. The final award is subject to finalisation of detailed terms and government ratification. The area was formerly part of Kufpec’s reduced Kairouan Nord block and lies west of the Sidi El Kilani oilfield.

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