All posts tagged Oil Patch Sub-Sahara


Trident Commences a Three Well Drilling Campaign in Equatorial Guinea

Trident Energy has spudded the first of three wells in its 2021-2022 drilling programme in Block G in the Rio Muni Basin, offshore Equatorial Guinea.

The jack up rig Sapphire Driller, owned by Vantage Driller, commenced drilling operations of the first part of the Elon-C well last Tuesday, June 22, 2021.

If completed as prognosed, Elon-A, Elon-C and Elon-D are expected to offset declining hydrocarbon production in the nearby Ceiba and Okume fields.

In addition to the perforation of the three wells, a tripod structure will be permanently installed in the Elon-C well to support the production equipment and flow lines that lead the flow production fluids to the Okume platform.

The locations of Elon-A, Elon-C and Elon-D , were decided on the basis of the interpretation of the four  dimensional (4D) seismic data, acquired by in the first quarter of 2020.

 


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.


Kuwaitis Find New Oil and a Trickle of Gas in Egypt’s Western Desert

Kuwait Energy has flowed a modest crude oil rate and a trickle of gas after drill stem tests were performed on a new field wildcat well in Egypt’s Abu Sennan Concession in the Western Desert Basin.

The company flowed a cumulative maximum rate of 2,834Barrels of Oil Per Day (BOPD and 4.211Million standard cubic feet of gas per day (MMscf/d) on a 64/64″ choke in two reservoirs in the ASD-1Xwell.

For these two reservoirs, the Lower Bahariya and Abu Roash C, the cumulative minimum flow rate was 1,511BOPD and 1.232MMscf/d on a more constrained 32/64″ choke

Modest as these results are, they exceed Kuwait Energy’s pre-drill expectations.

The oil rates are actually higher than the Egyptian average, but the natural gas flow is incredibly small.

Still, the operator has gone ahead to submit an application for a development lease to develop the “field”, within the Abu Senanconcession.

ASD-1X, located 12km to the north-east of the producing Al JahraaField, reached Total Depth (TD) of 3,750m MD on March30, several days ahead of schedule and under-budget.

Apart from the t reservoirs tested, preliminary results suggest the well encountered a combined net pay total of at least 22m across a number of reservoir intervals, including the primary reservoir targets of the AR-C and AR-E, as well as the Lower Bahariya and KharitaFormations.

The well was drilled by the EDC-50 rig, which has now been moved to the Al Jahraa Field, also within the Abu Sennan concession, where the drilling of the AJ-8 development well commenced on May 2, 2021. This well will target the Abu Roash and Bahariyareservoirs in an undrained portion of the Al Jahraa field.

Below are details of the test results:

·    The ASD-1X well tested both the Lower Bahariya and Abu Roash C reservoirs

·    Preliminary short-term test results from the Lower Bahariyareservoir indicate:

o  A maximum flow rate of (c. 2,187bOEPD gross; 481BOEPD net) on a 64/64″ choke

o  A rate of 852BOPD and 1.600MMscf/d (c. 1,172BOEPD gross; 258BOEPD net) on a more constrained 32/64″ choke

·    Preliminary short-term test results from the Abu Roash C (“ARC”) reservoir indicate:

o  A maximum flow rate of 1,215BOPD and 1.371MMscf/d (c. 1,489BOEPD gross; 328BOEPD net) on a 64/64″ choke

o  A rate of 661BOPd and 0.632MMscf/d (c. 787BOEPD gross; 173BOEPD net) on a more constrained 24/64″ choke


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.

 


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.


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”.

 

 


Adom-Frimpong is new Chairman of Ghana’s Oil Revenue Watchdog

Ghana’s Public Interest and Accountability Committee (PIAC), the statutory body with oversight responsibility of the management and use of the country’s petroleum revenues, has elected Kwame Adom-Frimpong as its new chairman.

Mr. Adom-Frimpong, a professor of accounting who represents the Institute of Chartered Accountants, Ghana (ICAG) on the PIAC, was elected in a unanimous decision by the Committee, drawn from 13 nominating institutions, according to a statement by the PIAC communications department. He will steer the affairs of PIAC as Chairman for one year, having taken over from Noble Wadzah, whose membership tenure on the Committee expired at the end of last year.

Adom-Frimpong is a graduate of the University of Wales, Bangor, UK (MBA) and the University of London. He obtained his Doctorate degree in Business Administration (DBA-Finance option) in 2001 from University for Professional Studies, Arcadia, USA and again had PhD in Economics Finance from the same University in 2004.

He is currently the Managing Director of Mainstream Reinsurance Company and a Partner of Adom Boafo & Associates, a firm of Chartered Accountants and Management Consultants. He worked with PricewaterhouseCoopers for five years as Audit Supervisor, five years with SSNIT as Head of Audit and ABC Brewery Company as Senior Cost and Management Accountant for four years.

Adom-Frimpong qualified as a Chartered Accountant in 1990, and is the immediate past President of the Institute of Chartered of Accountants Ghana (ICAG). He is a Fellow of both the Chartered Institute of Bankers (FCIB) and the Chartered Insurance Institute of Ghana (FCIIG). He is also a Barrister-at-Law and a member of the Ghana Bar Association.

 


ENI Discovers Oil and Hooks It Up Quickly in Egypt’s Western Desert

 

By Toyin Akinosho

ENI announced a relatively small new oil discovery in Egypt and hooked it up within a month.

The discovery, in the Meleiha Concession in Egypt’s Western Desert, was achieved through the Arcadia- 9 well, drilled on the Arcadia South structure, which is located 1.5km south of the main Arcadia field already in production.

Arcadia -9 encountered 85 feet of oil column in the Cretaceous sandstones of the Alam El Bueib 3G formation. The well was drilled close to existing production facilities and is already tied-in to production, with a stabilized rate of 5,500 barrels of oil per day.

Following the discovery, two development wells, Arcadia 10 and Arcadia 11, have been drilled back-to-back, the Italian major says in a statement. The first one encountered 25 feet of oil column and the second one 80 feet, within the Alam El Bueib 3G formation. The three wells share the same oil-water contact in the discovered reservoir. Arcadia 11 also encountered 20 feet of oil pay in the overlying Alam El Bueib 3D formation.

“The new discovery adds 10,000 barrels of oil per day to ENI’s gross production in the Western Desert of Egypt”, the company explains.

ENI’s successful implementation of its infrastructure-led exploration strategy in the Western Desert through AGIBA, a joint venture between Eni and Egyptian General Petroleum Corporation (EGPC), allows a quick valorization of these new resources. 

ENI, through its subsidiary IEOC, holds a 38% interest in the Meleiha concession while Lukoil holds a 12% and EGPC a 50% interest.


Sonatrach’s 50% Budget Slash, Cuts Out Sixty Planned Wells in Algeria

Algerian state hydrocarbon company Sonatrach is spending half of its originally planned budget for 2020.

Africa’s largest NOC was ordered to reduce its budget for 2020 from $14 Billion to $7 Billion(or from €12.4Billion to €6.2Billion).

The group, which contributes nearly 60% of the state budget and more than 95% of the country’s foreign exchange earnings, has significantly reduced its drilling and field optimization activities and suspended plans for newfield developments, no matter how close to existing facility. Africa Oil+Gas Report sources say that over 60 planned new wells will be affected.

There were 50 active rigs in Algeria in 2018, but they dropped to 42 in 2019. They would have dropped to 32, with COVID-19 challenges, but now they are likely to slip to 29, Africa Oil+Gas Report research suggests.

Hydrocarbon revenues into Algeria crashed by nearly 30% in the first quarter 2020, compared to last year.

Unlike most other hydrocarbon-led economies in Africa (Nigeria Angola, Libya, etc), most of the work programme in Algeria is performed by Sonatrach, as a result of historic production agreements that always insisted that Sonatrach operate the acreages.

So, unlike its peer countries, the state cannot spread the burden of financing oil and gas field operations in this time of pandemic, in a way that international companies have a good share of the risk.

Algeria, last year approved laws to encourage increased equity stakes and participation in acreages and projects by E&P companies, but the lingering antigovernment protests have discouraged implementation.

This article was originally published in the June 2020 edition of the Africa Oil+Gas Report

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