Judy Maksoud, Houston
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Asia-Pacific
An agreement signed by Brazil and India in New Delhi in early June could be a sign of things to come. The national oil companies of the two countries signed a partnership agreement that involves Petrobras, ONGC, and ONGC (OVL), ONGC’s international branch. The companies will share the operatorship of six deepwater exploration blocks, three in Brazil and three off Inida’s eastern coast.
The Brazil blocks are in the Sergipe-Alagoas basin in Maranhão and the Santos basin. The Indian blocks are in the deepwater Krishna-Godavari, Mahanadi, and Cauvery basins. At least one well will be drilled in each block, Petrobras says.
Following this initial agreement, the partners foresee cooperation opportunities in several oil industry activities, especially offshore E&P in India, Brazil, and in other countries, Petrobras says.
ONGC, which produces 600,000 b/d of oil and 70 MMcm/d of gas, has sought to diversify its operations by investing in other countries. It recently purchased 15% participation in the Shell-operated Ostra, Abalone, Argonauta, and Nautilus fields, in Brazil’s Campos basin, in which Petrobras has 35% participation.
Petrobras has participated in NELP bids in India since 2005, but had no direct partnerships with ONGC before now.
China, meanwhile, is reportedly planning its first solo move into deepwater using its own deepwater rig in October.
CNOOC has publicized its intent to upgrade an existing rig to achieve drilling capability in 1,000-1,500 m (3,280-4,921 ft) water depth. Part of the reason given for the upgrade is the scarcity of deepwater rigs.
If successful, CNOOC stands to benefit considerably from this experiment, because it will be able to begin additional exploration programs earlier than otherwise planned.
Africa
Total drilled the Cominhos-1 well in the northeastern part of block 32, 18 km (11mi) north of the Caril-1 discovery made in 2006. The well, drilled in 1,594 m (5,230 ft) of water, encountered Upper and Lower Oligocene oil bearing reservoirs. The well was tested from a selected Lower Oligocene interval and produced at a rate of 6,258 b/d of oil.
The Louro-1 discovery well, 4.5 km (3 mi) west of the Salsa-1 discovery made in 2006, was also drilled on block 32. The well, drilled in 1,806 m (5,925 ft) water depth found both Miocene and Oligocene oil bearing reservoirs.
Sonangol is block 32 concessionaire. Total E&P Angola (Block 32) Ltd. operates the block with 30% interest. Partners include Marathon Oil Co. with 30% interest, Sonangol E.P. with 20% interest, Esso Exploration and Production Angola (Overseas) Ltd. with 15% interest, and Petrogal with the remaining 5%.
Sterling Energy Plc. plans to drill a record number of wells in the next 12 months, at least four of which will be drilled offshore Mauritania. Sterling’s Mauritania activities fell short of expectations last year, with recoverability per well much lower than forecast.
Woodside, which operates Mauritania’s Chinguetti field, is looking for ways to optimize future production and reserve recovery. A 2007 seismic campaign to acquire high-resolution 3D and 4D data is complete. The resulting data will be processed and interpreted through the year so field recovery and economics can be optimized. It is expected that three or four additional development wells will be drilled in 2008.
At neighboring Tiof, development plans have been delayed, but Sterling says it is hopeful that a field development plan will be proposed this year. The company expects the development to include a tension leg platform tied back to Chinguetti for an initial estimated 40-60 MMbbl development. First oil could be up to 50,000 b/d in 2010/11, the company says.
Sterling also provided an overview of its holdings off Madagascar, where acquisition and processing of over 4,000 km (2,485 mi) of new 2D seismic and reprocessing of 4,000 km of vintage 2D seismic took place last year. This provides a modern processed regional seismic dataset covering both blocks that will be used for prospect generation, Sterling says.
Initial interpretation of seismic data shows that both blocks contain some large structures. The current focus is to evaluate these. In the coming year or so, exploration of this frontier region is expected to enter a new phase. ExxonMobil and partners in the Majunga PSC reportedly are planning the first deepwater exploration well, subject to rig availability and other considerations, in 2008.
Dominion Petroleum Ltd. has signed a production-sharing agreement (PSA) with the Tanzanian Petroleum Development Corp. and the government of the United Republic of Tanzania for exploration block 7. The block covers 8,500 sq km (3,282 sq mi) in the Indian Ocean southeast of Dar es Salaam. Water depth ranges from 100 m (328 ft) to more than 3,000 m (9,842 ft).
Dominion Petroleum Ltd. will spend at least $8.75 million on geological and geophysical surveys during the initial four-year exploration period on block 7 offshore Tanzania.
The PSA has an initial exploration period of four years. During this initial period, Dominion has committed to spend at least $8.75 million on geological and geophysical surveys, 4,000 km (2,485.5 mi) of 2D seismic data acquisition, and 500 sq km (193 sq mi) of 3D seismic surveys. The terms of the PSA also require Dominion to drill a well not later than the second four-year period.
Mediterranean
Mediterranean Oil & Gas Plc. conducted a seismic survey offshore Malta in blocks 4, 5, 6, and 7 of Area 4 in late May/early June. Seabird Exploration’sGeo Mariner was contracted to carry out the week-long survey, which included a 1,000-km (621-mi) 2D survey paid for by Leni Gas & Oil Plc as part of a $5-million farm-in agreement that will earn the company 20% interest.
The targets are identified prospects at Hagar Qim, Skorba, Tarxien, and Luzzu. The offshore south of Malta is an underexplored petroleum province that is related to the offshore Libyan and Tunisian proven hydrocarbon provinces.
Americas
Gas is moving to market from offshore Trinidad. In late May, Chevron Corp. affiliate Chevron Trinidad and Tobago Resources SRL and partner BG Group entered into a gas sales agreement with the National Gas Co. (NGC) of Trinidad and Tobago Ltd. for the supply of 220 MMcf/d of gas for a term of 11 years, with an option to extend for another four years. Deliveries are expected to begin in 2009.
Chevron expects the gas to be sourced from the Dolphin field 84 km (52 mi) offshore in the East Coast Marine Area (ECMA). First commercial production from Dolphin began in 1996. Four new development wells are planned to provide the additional gas to be delivered to NGC for use in the domestic market. Operator British Gas and Chevron split the interest in the ECMA 50:50.
More exploration is likely offshore the Falkland Islands. Falkland Oil and Gas Ltd. recently publicized its plans to continue its E&P program over the next 12 months.
A 2D infill seismic program and a controlled source electro-magnetic (CSEM) survey are already under way. The 2D survey began in Dec. 2006, and the CSEM survey started in Feb. 2007.
The survey, which was to be completed in June, included approximately 8,500 km (5,282 mi) of 2D seismic data. Interpretation of the CSEM data is expected to be completed in the second half of 2007.
The company is continuing its search for suitable farm-in partners while evaluating rig options.
In late May, the Barbados Ministry of Energy and the Environment published plans for an upcoming 2007 offshore E&P licensing round offering 20 blocks on the shelf and in deepwater areas in the Northeast Caribbean deformed belt.
Falkland Oil and Gas Ltd. publicized plans to continue its E&P program over the next 12 months, including a controlled source electro-magnetic (CSEM) survey.
The bid round opened with a presentation on June 22, 2007, in St. James, Barbados, followed by a road show on June 27 in Houston.
IHS Inc. is acting as advisor for the round.
A new petroleum law, fiscal system, and petroleum regulations are being drafted in Barbados for ratification in 3Q 2007.
Suriname’s state oil company Staatsolie also is laying plans for a new bidding round. The company plans to offer a number of nearshore blocks in March of next year. Data packages should be available in January. Staatsolie offered three blocks in its 2006 bidding round.
Newfoundland and Labrador released its bidding round plans in late May. The Canada-Newfoundland and Labrador Offshore Petroleum Board plans to hold two separate calls for bids in 2007.
Call for bids NL07-1 for the western Newfoundland and Labrador offshore region will consist of a single parcel. Call for bids NL07-2 for the region offshore Labrador will include four parcels.
Middle East
Anadarko Petroleum Corp. says it will divest 100% of its interest in Anadarko Qatar Energy Co. LLC and Anadarko Resources Co, known collectively as Anadarko Qatar.
Anadarko Qatar holds 92.5% interest in blocks 12 (Al Rayyan field) and 13 offshore Qatar. The company will sell all of its interest to a subsidiary of Occidental Petroleum Corp. for $350 million.
Anadarko Qatar operates block 12, which represents all of the company’s production in Qatar.
Saudi Aramco has awarded McDermott International Inc. subsidiary J. Ray McDermott S.A. a four-year project to engineer, procure, construct, install, hook up, and commission the Manifa field facilities in the Arabian Gulf.
Engineering is to begin this month. J. Ray will provide services from its regional headquarters in Jebel Ali, UAE, as well as from its Chennai, India, engineering office. Fabrication of the platforms, with a combined weight of over 16,700 metric tons (18,408.6 tons), will begin at the Jebel Ali facility in Sept. 2007.
The project also includes modification work that covers design, procurement, installation, hookup, and commissioning of communication packages on 26 existing platforms.
The project is expected to be competed by 2011.
Europe
Petrobras signed an agreement in Lisbon in mid-May with Portuguese corporations Galp Energia and Partex, for oil exploration and production in four blocks in the Lusitaniana basin offshore Portugal north of Lisbon.
This will be the first exploration and production activity ever to be undertaken off the Portuguese coast. The agreement is the outcome of a memorandum of understanding (MOU) signed in August 2006.
Petrobras’ participation in this agreement is significant not only because it is the company’s debut in a new exploratory frontier, but also because of expected positive results to be achieved in Portugal, Petrobras says.
The Camarão, Amêijoa, Mexilhão, and Ostra blocks are in 200-3,000 m (656 to 9,842 ft) water depth and cover 12,000 sq km (4,633 sq mi). The consortium is expected to concentrate on deepwater.
The agreement foresees an 8-year exploration period, involving seismic acquisitions and exploratory well drilling.
Initial investments are expected to range of $20-$30 million.
