WEST AFRICA

Fred Akani
Lagos

Shell sees some success in Angola

Shell has encountered some 300 million bbl of oil (estimated recoverable reserves) so far on the Block 16, Angola, even though two recent wells, Queve-1 and Cubango-1, were both plugged and abandoned. The company plans to acquire 2,350 sq km of 3-D seismic data over the 5,000 sq km lease via the PGS Ramform Explorer. Shell holds 55% equity on this block, along with Exxon 20%, Texaco 15%, and Elf 10%.

Energy Africa attempts to strengthen hold off Angola

Energy Africa, the aggressive South African company, is negotiating for 15% more holding in Block 9, offshore Angola. It currently holds 10%. Mobil is also interested in acquiring 35% of the block. The block is currently operated by Texaco who holds 50% ownership along with state company Sonangol holding 25% equity, Daewoo with 11.25%, and Pedco with 3.75%.

Pride building drillship for Angolan prospects

The boom in deep offshore drilling is spurring commitment to newly built rigs. In one such instance, the drilling company Pride International will construct a dynamically positioned drillship, with the primary objective of drilling development wells for Elf in the huge Girrasol and Dalia fields offshore Angola.

The rig, which will cost $235 million, will be rated to water depths exceeding 3,000 meters. It will utilize the hull midsection of a former Russian naval vessel, the Anadyr, which was recently acquired by the company.

Apart from the Elf deal, Pride is chartering this drillship to take advantage of the boom in deep offshore activity around the world. Pride is anticipating revenues of $300 million (or a day rate of $164,400 ) from operation of the rig over a five-year period. Pride is talking to some other companies to cooperate in building and operating the drillship.

Exxon extends rig contract for Angola

Exxon has added an 18-month extension to the contract for the semisubmersible rig Ocean Valiant, owned and operated by Diamond Offshore. The extension becomes effective on January 1, 1998. Exxon plans to drill three wells in the first instance, in Block 15, Angola. An 885 sq km 3-D survey was completed on the lease in April 1997. Exxon's partners in Block 15 include BP 26.66%, Agip 20%, and Statoil 13.35%.

Ashland liberates driller Liberator

The semisubmersible Ocean Liberator, which recently concluded drilling Okwori-4 for Ashland offshore Nigeria, is on its way to the North Sea. It will be drilling for Amerada Hess for a period of 2-3 years.

Ashland prematurely released the Ocean Liberator when its (Ashland's) operating licenses in Nigeria were revoked by the country's military government, for allegedly failing to notify the government that it was selling its upstream assets in the country. Ashland responded that it had not concluded the sales deal at the time and the Nigerian government acted in haste.

Cavendish plans for Obe development off Nigeria

Indigenous operator Cavendish Petroleum expects to come with the first oil in the Obe field, located in the northwestern offshore flank of the Niger Delta, Nigeria, in March 1998. The company is shopping for an FPSO, after talks with Chevron broke down two months ago.

"They'd have started production by December 1, 1997," says a source at the Department of Petroleum Resources. "They were hoping to flow the crude through Chevron facilities in the North West OML 95." Cavendish sources say that the refusal by Chevron to allow use of its facility will boost the production cost of the field by $2 per barrel.

The Obe field, located in 20 meters water depth in OML 110, holds 10 million bbl of oil estimated recoverable reserves. Cavendish recently reported highly encouraging results on Obe-4, the first development well to be drilled on the structure. The well was drilled to a total depth of 9,315 ft, confirming the productive potential of two oil-bearing reservoirs. The well flowed an average of 9,500 b/d of 39 degree API oil. Cavendish and technical advisor Tuskar Resources of Dublin went ahead to complete the well as a dual-zone producer.

The field was originally discovered by Japan Petroleum in 1973 with the wildcat well, Obe-1, which flowed 3,500 b/d. The second well, Obe-2, tested only 507 b/d from thin sands, forcing Japan Petroleum to leave the field as sub-commercial.

Cavendish's first well on the field was Obe-3, which was drilled on behalf of Japan Petroleum in 1994 by Conoco. It flowed 1,850 b/d of 34 degree API oil with net reservoir pay of 56 ft. Conoco opted out of the partnership in 1995, citing the field as extremely marginal.

Global Industries awarded Nigeria contract

Global Industries has been awarded a contract by Chevron Nigeria to install platforms and pipelines in the Ewan Field, offshore Nigeria. Under the terms of the contract, Global Industries will transport and install two tripod platforms which are being fabricated in Nigeria. Global will also be installing approximately 29 miles of various diameter interfield pipelines, ranging from 4 to 14 inches. The work will be carried out from Global Industries pipelay/derrick barge Cheyenne in water depths ranging from about 15 to 40 ft. The work is expected to be completed in March 1998.