Angola’s National Agency of Petroleum, Gas and Biofuels says it has made available for free consultation the data packages related to the concessions that will be put out to tender starting in April.
“However, the geophysical data (seismic and magnetometric) do not integrate any of these packages, being obligatory to pay a fee for their acquisition”.
According to ANPG, the available packages contain the compilation of existing data, duly selected, related to the concessions to tender. The aim is to assist potential interested parties in the evaluation they are going to carry out and support them in decision making.
The agency, however stresses that companies will still have to buy the data if they want to interprete.
“The geophysical data (seismic and magnetometric) do not include any of these packages, being obligatory to pay a fee for their acquisition”.
For this tender, which started in late 2020, two data packages were prepared, taking into account the two terrestrial basins to be tendered – the Lower Congo and the Kwanza.
The Lower Congo Terrestrial Basin Data Package , relating to three blocks (CON 1, 5 and 6) consists of geological information on the 24 wells of the three blocks to bid and the remaining 33 wells of the adjacent blocks, as well as 14 reports studies that detail the stratigraphy, structural component and prospective; accessibility study (Atlas); georeferenced information (maps); and legal / legal information.
The Kwanza Land Basin Data Package , relating to six blocks (KON5, 6, 8, 9, 17 and 20) is also composed of geological information (reports and diagrams) from 47 wells, 36 of which belong to the blocks to be bid and 11 wells belonging to the neighboring blocks; 13 reports of abandonment of the main producing fields in the basin; seismic data (vintage seismic); accessibility study (atlas); georeferenced information (maps); and legal / legal information.
For both packages, ANPG stresses that geophysical data (seismic and magnetometric) are not part of these packages, so interested parties should purchase them from their partners Delta Development Management (Lower Congo) and GEOTEC and ION / GXT (Kwanza ).
“The disclosure of these packages, in a free session – which can be done in person or online – contributes to making the bidding process moretransparent, allowing interested parties to know the data available before they acquire them for more accurate and accurate study and analysis “
Interested companies should contact the National Oil, Gas and Biofuels Agency through its website ( www.anpg.co.ao ), e-mail or even by letter, requesting an appointment for a data consultation session. These sessions will be free and can be virtual or in person, depending on the possibilities of the interested parties, but always carried out according to the rules in force in the context of the pandemic still in force.
French oil and gas giant TOTAL continues to attract attention in how its core business model is changing the industry: providing a blueprint how to transition an oil company to an energy company and at the same time guaranting financial success to its shareholders. The repercussions will be certainly felt in Africa, where TOTAL’s future growth is expected. Now the company produces approximately 1/3 of its oil and gas production (approx 900 000Barrels of Oil Equivalent per Day (BOEPD)) on the continent and by 2030 is expected to grow by one-third.
Important is to note how TOTAL will grow. Patrick Pouyanné, TOTAL’s chairman and chief executive, now says that by 2030 the company “will grow by one-third, roughly from 3Million BOEPD) to 4Million BOEPD, half from LNG, half from electricity, mainly from renewables.” This, according to IEEFA (Institute Energy Economics & Financial Analysis), is the first time that any major energy company has translated its renewable energy portolio into barrels of oil equivalent. So, at the same time that the company has slashed “proved” oil and gas from its books, it has added renewable power as a new form of reserves.
In the summer of 2020 Total announced a $7Billion impairment charge for two Canadian oil sands projects. This might have seemed like an innocuous move, merely an acknowledgement that the projects hadn’t worked out as planned.
Yet it opened a Pandora’s box that could change the way the industry thinks about its core business model—and point the way towards a new path to financial success in the energy sector. While it wrote off some weak assets, it did something else: TOTAL began to sketch a blueprint for how to transition an oil company into an energy company.
Each of the oil and gas majors spilled red ink last year, and most took significant write-downs. But TOTAL’s tar sands impairments were different. The company wrote off “proved reserves,” or oil and gas that the company had previously deemed all-but-certain to be produced. Proved reserves long stood as the Holy-of-Holies for the oil industry’s finances—the key indicator of whether a company was prepared for the future. For decades, investors equated proved reserves with wealth and a harbinger of long-term profits.
Because reserves were so important, the Reserve Replacement Ratio, or RRR—the share of a company’s production that it replaced each year with new reserves—became a bellwether for oil company performance. The RRR metric was adopted by both the Society of Petroleum Engineers and the U.S. Securities and Exchange Commission. An annual RRR of 100% became the norm. But TOTAL’s write-off showed that even “proved” reserves are no sure thing, and that adding reserves doesn’t necessarily mean adding value. The implications are devastating, upending the oil industry’s entire reserve classification system, as well as decades of financial analysis.
How did TOTAL reach the conclusion that “proved” reserves had no economic value? Simply put, reserves are only reserves if they’re profitable. The prices paid by customers must exceed the cost of production. Given current forecasts that prices would remain lower for longer, TOTAL’s financial team decided those resources could never be developed at a profit.
TOTAL’s strategy is based on the Sustainable Development Scenario(SDS) for medium/long term, developed by the International Energy Agency (IEA). Taking the “Well Below 2 Degrees Centigrade” SDS scenario on board, TOTAL has in essence taken on a new energy classification system. By embracing this strategy TOTAL is the only major to have seen the direct benefit of using the Paris Climate Agreement to expand its renewable energy base.
On the renewables front, TOTAL has confirmed that it will have a 35 gigawatt (GW) capacity by 2025, and hopes to add 10GW per year after 2025. That could mean an additional 250GW by 2050.
A key to TOTAL’s success is its willingness to devote capital to projects at an early stage. Its renewable investments include:
50% portfolio of installed solar activities from Adani Green Energy Ltd., India;
51% Seagreen Offshore Wind project in the United Kingdom;
Major positions in floating wind farm projects in South Korea and France.
Expect that TOTAL will also expand its renewable portfolio in Africa in the coming months.
Renewables in Africa
This could prove to be a double-edged sword for TOTAL and Africa: stimulating new renewable energy and oil and gas projects- if they have a high return on investment. TOTAL’s lead in taking on board renewables as part of its reserve count, will surely set a precedent for other renewable projects in Africa, helping the continent move forward with the Energy Transition. Projects not meeting this investment grade will not be treated so kindly.
Yet the increased speed of the Energy Transition is not necessarily good news for Africa. The greening of Europe, for example, could in the short and medium term have a boomerang affect in Africa. The major oil companies including Shell, TOTAL, BP and Equinor could in fact reduce oil and gas activities in Africa.
Are Africa’s oil and gas assets competitive and worthy of development if compared to other global projects? Why? Simply because the oil and gas majors are choosing low carbon prospects and natural gas projects on a massive scale, leaving many potential prospects in doubt. A prime example is TOTAL’s mega-large LNG project in Mozambique is expected to cost at least $20 Billion and produce up to 13Million tonnes of LNG per annum.
Energy scenarios released by both BP and TOTAL are predicting a sharp decrease of oil production, adding to the view that exploration budgets of the majors will not be a priority item. Instead as TOTAL has explained, low cost, high value projects are the goal: Squeezing more value out of its various African assets, especially in Nigeria and Angola to ensure a prolonged life cycle.
The Norwegian energy research company Rystad, reminded the investment community, in September 2020, that the oil and gas majors are actively pruning their oil and gas assets, stating: “The world’s largest oil and gas firms could sell or swap oil and gas assets of more than $100Billion in order to adjust and transform to cleaner sources of energy”.
The Rystad Energy Study covers a wide geographical spread and includes ExxonMobil, BP, Shell, TOTAL, ENI, Chevron, ConocoPhillips, and Equinor. The eight companies may need to divest combined resources of up to 68BillionBOE, with an estimated value of $111Billion and spending commitments in 2021 totalling $20Billion.
The key criteria for determining whether a major oil company would benefit from staying in a country are the company’s cash flow over the next five years, the potential growth in its current portfolio, and its presence in key E&P growth countries towards 2030. Based on this, Rystad claims that majors may seek to exit about 203 varied country positions and, as a result, reduce their number of country positions from 293 to 90.
How will renewables and oil and gas prospects in Africa be judged? Do the various state oil companies have the management skills to properly assess their energy transition scenarios? Do they have highly qualified, independent consulting companies providing them with advice ?
Many of Africa’s new fledging state oil companies, have been proxies to the international oil majors. In the process, they haven’t developed technical knowledge, capability and expertise to manage and implement oil and gas projects. Being hostage to the whims of the oil majors is no formula to ensure that a country’s oil and gas assets are to be developed. Certainly not, when the window of opportunity to develop oil and gas assets could be closing within the next 20-25 years.
There is the stern warning and key conclusions coming from a recent report authored by David Manley and Patrick R.D. Heller for the Natural Resource Governance Institute:
“If national oil companies follow their current course, they will invest more than $400Billion in costly oil and gas projects that will only break even if humanity exceeds its emissions targets and allows the global temperature to rise more than 2 o “
“Either the world does what’s necessary to limit global warming, or national oil companies can profit from these investments. Both are not possible.
Investments by State oil companies could pay off, or they could pave the way for economic crises across the emerging and developing world, and necessitate future bailouts that cost the public. Some oil-dependent governments in Africa, Latin America and Eurasia are making particularly risky bets with public money.
Many national oil companies have incentives to continue spending big on new oil and gas projects. As a result, company officials might not, on their own, change course to account for the energy transition away from fossil fuels toward green energy, nor make investment decisions that serve the interests of citizens.
Governments—through finance and planning ministries, presidential offices and public accountability bodies—must act to promote a more sustainable economic path.
Governments should understand the extent of national oil companies’ exposure to decline in oil and gas prices;
Revisit rules on cash flows into and out of state-owned companies.
Require or incentivize lower-risk investment decisions .
Benchmark and measure national oil company performance, improve corporate governance, and report consistently to citizens.”
Some key conclusions
Recently IRENA (International Renewable Energy Agency) and AfDB (African Development Bank) have jointly announced support of low carbon projects to enhance the energy transition. IRENA in its Global Renewable Outlook states the sub-Sahara Africa could generate as much as 67% of its power from indigenous and clean renewable sources by 2030. In the energy transition this would increase welfare and stimulate the creation of up to 2Million green jobs by 2050.
Certainly public-private partnerships should be part of this mix. Governments to ensure a broad basis of support and energy companies who have the know-how and project management skills. A key bonus for oil/energy companies is knowing that renewables can be added to the reserve count.
“TOTAL hasn’t abandoned oil and gas, and its hydrocarbon investments may prove problematic over the long term. But its renewable investments will add ballast to the company’s balance sheets, keeping it afloat as it carefully chooses investments, including oil and gas projects, with a high economic return.
Meanwhile, its competitors that stick to the old oil industry business model will have no choice but to continue to develop hydrocarbons—even if their “proved” reserves ultimately prove to be financial duds.”
Gerard Kreeft, BA (Calvin University, Grand Rapids, USA) and MA (Carleton University, Ottawa, Canada), Energy Transition Adviser, was founder and owner of EnergyWise. He has managed and implemented energy conferences, seminars and university master classes in Alaska, Angola, Brazil, Canada, India, Libya, Kazakhstan, Russia and throughout Europe. Kreeft has Dutch and Canadian citizenship and resides in the Netherlands.He writes on a regular basis for Africa Oil + Gas Report
Egypt’s New and Renewable Energy Authority is preparing to issue a tender for Build, Operate and Maintain the 120 MW capacity Jabal Al-Zeit 3 wind power plant.
It is the third of the three wind power plants in the Jabal al-Zeit wind station, whose total planned capacity is stated to be 580MW, with a production rate of 2MW per turbine. The station is located on a 100-acre site in District 3 of Jabal el-Zeit, along the western side of the coastal road of Hurghada, in Egypt’s Red Sea Governorate.
The first project, Jabal Al-Zeit 1, with 250MW capacity, was commissioned in February 2020; it includes 120 turbines. The second, Jabal Al-Zeit 2, whose construction was only just completed, has 110 turbines. Contract for the operation and maintenance of that second wind farm has gone to Siemens Gamesa.
The third, while the third Jabal Al-Zeit 3 wind power plant will work with 60 turbines and has 120MW capacity.
Three companies, including Siemens Gamesa, Vestas and Volatalia, have informally expressed interest to bid. But they have to wait for the tender to be launched in the second quarter of 2021.
The government’s plan is that, after construction and inauguration, the period of operation and maintenance of the plant will be between five and seven years, and the period can be extended for another year in agreement with the New and Renewable Energy Authority.
The New and Renewable Energy Authority had announced its intention to establish a subsidiary company to maintain and operate wind projects, but it changed the course after studying its feasibility.
The agency decided, instead, to launch tenders to select companies to undertake the operation and maintenance for a specific period, or for an investor to establish the company himself, owning it in full, and undertaking the maintenance of the authority’s stations through a contract between the two parties for a period of 5 to 10 years, provided that the investor gets the fees for operating and maintaining the stations. The Renewable Energy Authority owns two wind stations, the first in Zafarana with a capacity of 550MW, which includes about 700 turbines of different capacities, the second in Jabal Al-Zeit 1 with a capacity of 580MW.
Construction of the East African Crude Oil Pipeline (EACOP), 1,443km long, crude oil export pipeline system, is scheduled to start next month, a key Tanzanian official has announced.
Palamagamba Kabudi, Tanzania’s Foreign Affairs minister, told journalists that actual construction of the project would start in the second week of March 2021.
The $3.5Billion EACOP project is the midstream part of the full, basin wide Uganda oil development, which has been on the drawing board for close to a decade. It will, from Hoima in Western Uganda and head in a southeasterly direction to end up in Tanga, a Tanzanian port town on the edge of the Indian Ocean. The line will pump 216,000Barrels of Oil Per Day at peak.
Mr. Kabudi, who returned from France where he had meetings with officials of the French major TOTAL, operator of the pipeline project, was widely quoted by local Tanzanian media on the issue. “While in France I held talks with TOTAL’s director who assured me that all is set for the construction of the pipeline to kick off in the second week of next month,” he told a press conference, specifically mentioning Nicolas Terraz, TOTAL’s Vice President for E&P Africa, as assuring him that the construction would kick off in March 2021.
Commercial quantities of crude oil were discovered in Uganda in 2006. Field development plans have been on the table before 2013. As Uganda is a land locked country, an extensive export pipeline had been part of the sticky points in the negotiation about the full development. But everything had been negotiated between the governments (Tanzania and Uganda) with the partners TOTAL and CNOOC by the time the pandemic fully hit.
Last November, TOTAL invited for provision of various services including site preparation and infrastructure works construction project management services in respect to enabling infrastructure for fields in the CA-1 block and northern panel LA-2 block. The company had previously received certificates of approval for the Environment and Social Impact Assessment (ESIA) from both Tanzanian and Ugandan authorities.
Prior to TOTAL’s invitation for services, Yoweri Museveni, President of Uganda, and John Magufuli, his Tanzanian counterpart, last September, agreed to hasten the implementation of the EACOP project by expediting the harmonisation of pending issues and fast-track the remaining agreements including the Tanzanian HGA with TOTAL.
The East African Crude Oil Pipeline (EACOP) will be the World’s longest heated crude oil pipeline. It will comprise a 24inch insulated buried pipeline, six pumping stations (two in Uganda and four in Tanzania), and end at a marine export terminal in Tanga.
Irish explorer Tullow Oil has sold out of Uganda, Gabon and Equatorial Guinea in the last one year.
The entire proceeds from these asset sales do not come near a billion dollars, so do not make a dent in Tullow’s debt.
Ghana is where the money is, not by selling assets, but by investing over a period of time, making gains and creating more value.
The company “has mapped out a strategy and plan which focuses on the substantial potential within its large resource base, associated with its producing assets where there is extensive infrastructure in place”.
That large resource base is Tullow’s Ghanaian acreage, where the company has produced just over 400Million barrels of oil (gross) from 2.9Billion barrels of oil in place (c.14%). This plan, alongside a rigorous focus on costs, is expected to generate material cash flow over the next decade, which the Group anticipates will enable reduction of its current debt levels and deliver significant value for its host nations and investors.
The new plan will deliver production growth in the medium term and the ability to sustain production over the longer term. The first phase of investment will start in the second quarter of 2021 with the commencement of a multi-well drilling programme in Ghana.
Assuming an oil price of $45 per barrel in 2021 and $55 per barrel flat nominal from 2022 onwards, and with over 90% of future capital expenditure focused on the Group’s West African producing assets, which is mostly in Ghana, Tullow forecasts it will generate c. $7Billion of operating cashflow over the next 10 years. After capital investment of c. $2.7Billion, there will be c.$4Billion cash flow available for debt service and shareholder returns which Tullow will initially apply towards reducing gearing to 1-2x net debt / EBITDAX while retaining appropriate liquidity.
Overall, global LNG demand is estimated to hit 700 million tonnes by 2040, Shell has declared.
“Asia is expected to drive nearly 75% of this growth as domestic gas production declines and LNG substitutes higher emission energy sources, tackling air quality concerns and meeting emissions targets”, the AngloDutch major says in a new report., which also indicated that the demand for LNG had held steady in 2020, despite COVID-19.
The report projects a strong Asian demand, giving an example of China’s heavy-duty transport sector which “consumed nearly 13Million Tonnes of LNG in 2020, almost doubling from 2018, to serve the fast-growing fleet of well over 500,000 LNG-fuelled trucks and buses’.
Shell’s LNG Outlook 2021 www.shell.com/lngoutlook reports that LNG-fuelled shipping is also growing, “with the number of vessels expected to more than double and global LNG bunkering vessels set to reach 45 by 2023.
“As demand grows, a supply-demand gap is expected to open in the middle of the current decade with less new production coming on-stream than previously projected. Just 3Million Tonnes in new LNG production capacity was announced in 2020, down from an expected 60Million Tonnes”, the report testifies.
“According to estimates, more than half of future LNG demand will come from countries with net-zero emissions targets. The LNG industry will need to innovate at every stage of the value chain to lower emissions and play a key role in powering hard-to-abate sectors”, Shell notes.
South Africa’s synfuel giant Sasol has announced its final investment decision (FID) on a $760Million gas project in Mozambique, that will provide additional supply to South Africa in the short term.
The company´s Board approved the FID on the development of the Mozambique production sharing agreement (PSA) license area, in the onshore Pande Temane region, which entails an increase in the company’s export of gas to South Africa, as well as in-country monetisation of gas in Mozambique through a 450 megawatt gas-fired power plant and a liquefied petroleum gas (LPG) facility in the same time frame.
“The PSA development underpins Sasol’s gas transformation strategy by securing additional gas supply from southern Mozambique into Sasol’s gas value chain starting 2024 and serves as a cornerstone in addressing Sasol’s sustainability agenda”, the company said.
Fleetwood Grobler, Sasol’s CEO, said the Mozambique project would provide “additional short-term gas supply to South Africa”.
There may be up to 1.2Trillion cubic feet of gas and 10 Million barrels of crude oil in the PSA licence Sasol estimates. Sasol plans to export the crude.
Sasol is also considering LNG and supplies from (Mozambique’s northern)Rovuma Basin, in addition to exploration in Pande Temane. In the next couple of years we will set out steps towards the energy transition, it’s going to involve gas and renewables,” Sasol says.
The Natural Resource Governance Institute (NRGI) has appointed Suneeta Kaimal the new President and CEO of the independent, non-profit organization.
Ms. Kaimal, currently Interim President and CEO of NRGI, joined the organization in 2009 and previously served as Deputy Director and Chief Operating Officer.
“NRGI’s trajectory is such that it requires someone who has a holistic understanding of the field of resource management and knows how to deal with the consequences of the upheavals we are going through,” said Smita Singh, Interim President of the Institute’s Board of Directors.
“After careful and in-depth global research that identified many excellent candidates, the Board of Directors came to the conclusion that Suneeta Kaimal offers the ideal combination of attributes: a vision for the future, interdisciplinary knowledge of issues related to the management of extractive industries in resource-rich countries, extensive external networks and in-depth knowledge of the internal strengths of the Institute. Her unique skills make her the ideal candidate to guide the Institute through the important changes that must continue to take place in order to continue its work with communities. The Board of Directors is unanimously convinced that Suneeta Kaimal has the capacity to continue the activities that make the reputation of the Institute and adapt to the profound changes we are witnessing around the world. “
Suneeta Kaimal to lead Institute’s ambitious programme for 2021, building on the successes f a difficult 2020. The Institute’s programme teams work with national and international civil society organizations, multilateral organizations and governments to facilitate the transition to a more climate-friendly future in countries dependent on fuel extraction. fossils; to help countries with significant mineral deposits meet growing demand for critical minerals in a way that benefits their citizens while reducing corruption and environmental impact; reduce resource-related debt; and to defend and develop governance, environmental and social standards.
“We are at a historic turning point in the area of natural resource governance,” said Suneeta Kaimal. “New thinking conducive to transformation is needed if we are to face the heavy economic consequences of the global pandemic and the looming climate emergency.” I have the honor and the privilege, as President and CEO, to have the opportunity to build on the success of the Institute to meet this challenge. In collaboration with the outstanding staff of the Institute, distinguished members of the Board of Trustees and advisers, committed donors and accomplished partners, I believe we can create a more just and sustainable future for resource-rich countries. “
NRGI’s goal is to ensure a future where countries rich in oil, gas and minerals achieve sustainable, equitable and inclusive development, enabling citizens to benefit sustainably from extractive industries and helping to reduce the associated negative effects. to the sector. The organization is present in more than a dozen resource-rich countries in Latin America, the Middle East and North Africa, Eurasia, sub-Saharan Africa and Asia-Pacific.
“Good governance of natural resources is more than ever essential if we want to strengthen economic resilience and advance social justice for the benefit of more than a billion people living in poverty in resource-rich countries” , added Suneeta Kaimal. “The NRGI team remains unfazed by the scale of the challenges and is emboldened by the opportunities ahead. “
Suneeta Kaimal succeeds President Emeritus Daniel Kaufmann, who worked for the Institute from 2013 to February 2020.
Yetunde Taiwo has been appointed the General Manager for New Energy at Seplat.
It is a position that comes with the company’s Gas Business, which she had managed before, so it’s an expanded portfolio.
Seplat is Africa’s largest homegrown E&P company.
Until January 2021, Taiwo was Chief Executive Officer of the ANOH Gas Processing Company (AGPC), the incorporated Joint Venture owned equally between Seplat and the Nigerian Gas Company (NGC), which manages a $700Million midstream development that will monetise 300Million standard cubic feet produced every day from the Assa North /Ohaji South fields, straddling Shell operated Oil Mining Lease (OML) 21 and Seplat operated OML 53, onshore eastern Nigeria.
Taiwo took the AGPC job after three and half years as the first GM Gas (or Head of Gas Business as it is called), where she oversaw the development of one of the fastest growing domestic gas businesses in Nigeria. On her watch, Seplat grew its operated gas production capacity from 300Million standard cubic feet per day (300MMscf/d) to 525MMscf/d.
Her new role of superintending the New Energy unit involves the increase of gas products to be monetised in the form of LPG, CNG and other gas derivatives, with opportunity framing in the renewable energy space. “A different set of skills is required to get into renewables”, Roger Brown the company’s CEO, told London South East last November, but he added that the New Energy unit, would provide guidance for the company.
“We are looking at LPG, Liquid Petroleum Gas on all of our gas plants and that can be utilised in the local market”, Mr. Brown told London South East. “We’re looking to Compress Natural gas (CNG) and, we are looking further down the value chain potentially into supplying smaller scale, probably not retail but certainly, smaller scale wholesale and customers. And then, through that, we look at what renewable energy means for Nigeria into the future and it’s got huge potential, particularly, in solar. We’ve got a lot of the sun all year round here. That will be a great renewable fuel source for the country. And what we really want to do is that we need to get the grid system up to a level we are having more of the gas going through it and then, the grid will rely on grids solar power rather than, off grid small scale. So that’s something we are looking at”. That statement, effectively framed Mrs. Taiwo’s key job responsibilities
Taiwo started her career as a reservoir engineer with Chevron Nigeria Limited in 1991, straight from National Youth Service. By the time she left the American major, for BG, in 2007, she was a planning advisor at the company’s Asset Management Division. She worked for BG as Economics manager before she showed up at Seplat in May 2011 as head of planning and economics. She joined NNPC, the state hydrocarbon company, in 2013, as General Manager, Planning at NAPIMS, the Investment arm. She was appointed head of Gas Business when she returned to Seplat in 2015.
Kuwait Energy Company is moving the ED-50 rig to the north of the Licence, to drill another well, after the moderate success of the last one, which will soon be brought to production.
The next probe is the ASD-1X exploration well, located close to the producing Al Jahraa field. The well is targeting the Abu Roash reservoirs in the Prospect D structure and, if successful, can again be quickly be brought into production.
The last well, ASH-3, a step-out development well in the ASH Field, penetrated a gross hydrocarbon column of 59metres in the primary Alam El Bueib (AEB) reservoir target, 27.5metres of which is estimated to be net pay. The well recorded a maximum flow rate of 6,379 bopd and 6.7 mmscf/d (c. 7,720 boepd gross; 1,700 boepd net), during testing, on a 64/64″ choke, from the AEB reservoir. On a reduced, 30/64″ choke, expected to be more representative of the producing flow rates, the well flowed at 3,561 bopd and 2.9 mmscf/d (c. 4,140 boepd gross; 910 boepd net).
It was spud on the 4th January, and it reached a total depth (TD) of 4,087m MD (3,918m TVDSS) on 8th February.
“The partners, Kuwait Energy and United Oil and Gas when brought on production over the coming days, ASH-3 will provide a significant boost to the concession-wide production rates that averaged 10,500 boepd gross (2,310 boepd net) during January 2021.
“We look forward to the spudding of the forthcoming exploration well and the remainder of our 2021 work programme,” the partners say.