Offshore staff
DUBLIN -- Petroceltic is aiming to spud an appraisal well in September on the Elsa oil discovery in the Italian sector of the Adriatic Sea.
In January, the Irish company assumed operatorship of license B.R268.RG containing Elsa on acquiring a 30% interest from Cygam Energy subsidiary Vega Oil, thereby lifting its own equity position to 70%.
Petroceltic plans to drill the Elsa-2 well close to the location of the original discovery in 1992, which logged a 65-m (213-ft) oil column. It submitted an environmental impact assessment to Italy’s Environment Ministry last August, and expects approval this spring.
Subject to regulatory clearance for drilling operations, the well will be drilled in around 30 m (98.4 ft) of water, 7 km (4.35 mi) offshore the central Adriatic coast, by a zero-discharge rig, using water-based fluids. The company has identified four suitable rigs and is in discussions with the operators about a contract.
Petroceltic has completed design of the Elsa-2 well and also has drawn up long-lead items for procurement. TRACS International Consultancy, a subsidiary of AGR Petroleum, has completed a screening study of the field’s potential resources. It has also provided economic analysis for a development, options including a fixed and a floating platform.
To mitigate the risks of the drilling costs, Petroceltic may seek farm-in partners for the well, or bring in what it calls a “mezzanine finance investor.”
3/4/2010
