Africa
Four discoveries offshore Angola in January and February indicate the area is still one of the world’s hottest deepwater plays.
In late January, Chevron subsidiary Cabinda Gulf Oil Co. and partners had a significant oil discovery in deepwater block 14 in the Lower Congo basin.
Lucapa-1 was drilled in 1,201 m (3,940 ft) of water to a TVD of 3,340 m (10,958 ft) and encountered more than 85 m (279 ft) of oil in Miocene sands.
Appraisal drilling and more geological and engineering studies are scheduled.
CABGOC operates the block with 31% interest. Partners include Total with 20% interest, Sonangol with 20% interest, Eni with 20% interest, and Galp with 9% interest.
CABGOC and its partners hit oil with the Lucapa-1 well in deepwater block 14 in the Lower Congo basin offshore Angola.
Shortly after Chevron’s announcement, BP had a discovery with the deepwater Terra well in block 31. The Terra well, in 2,328 m (7,638 ft) water depth 411 km (255 mi) northwest of Luanda, is the 12th discovery drilled by BP on this block.
Terra is 30 km (19 mi) northwest of BP’s Titania discovery, which was announced in late October of last year.
It was Total’s turn next, with oil discoveries from its eighth and ninth exploration wells on ultra deepwater block 32.
Drilled in 1,977 m (6,486 ft) water depth, the Manjericão-1 well tested more than 5,000 b/d of oil from Oligocene reservoirs. This discovery is in the central part of block 32, about 38 km (24 mi) northwest of the Gengibre-1 discovery made in 2004. Total say the discovery demonstrates there is additional resource potential in the previously unexplored central area of block 32.
The Caril-1 well, drilled in 1,673 m (5,489 ft) water depth, also encountered oil. The discovery is in the northeastern part of block 32, 18 km (11 mi) north-northwest of the Gindungo-1 and 7 km (4 mi) west-southwest of Cola-1 discoveries.
Technical studies are being carried out to evaluate the drilling results. Further exploration drilling is under way and planned across the block.
Americas
Brazil has had a busy 1Q and is laying plans for an even busier schedule through 2010.
To keep increasing production in the long term, Petrobras has been enhancing its exploratory portfolio and now has more than 100 local blocks in addition to its overseas acreage.
Seeking to maintain Brazil’s oil self-sufficiency, Petrobras has a portfolio that includes dozens of projects and will involve $38 billion in investments in exploration and production through 2010.
Petrobras will invest $7.4 million in exploration alone through 2010, including investments made by partners and third parties.
The company’s production goal for 2015 is 4,556,000 b/d of oil.
The operator took a step toward increasing production in January when it brought the Espadarte field online via theCidade do Rio de Janeiro FPSO.
TheCidade do Rio de Janeiro FPSO went online in the Espadarte field in the Campos basin offshore Brazil in early January.
Full production is expected this year with nine subsea completions - five for production and four for water injection. A new oil lifting system developed by Cenpes, the Petrobras research center, will use subsea pumps to help move the oil onto the FPSO.
The vessel can produce 100,000 b/d of oil, 2.5 MMcm/d (88 MMcf/d) of gas, and store 1.6 MMbbl of oil.
Modec Inc. was responsible for the engineering, procurement, construction, installation, and commissioning of the FPSO and holds an initial eight-year operating contract with Petrobras, with four one-year renewal options.
Asia-Pacific
There have been several discoveries off Southeast Asia this year.
Talisman Energy Inc. subsidiary Talisman (Vietnam 15-2/01) Ltd. found oil with the Hai Su Trang (HST) exploration well offshore Vietnam early in 1Q 2007.
The HST well is in block 15-2/01, 80 km (50 mi) off the east coast of Vietnam on trend with large oil and gas discoveries in the Cuu Long basin.
The Thang Long Joint Operating Co., established for the purposes of conducting operations on block 15-2/01, plans to drill three new wildcat exploration wells in 2007 to evaluate features on trend with the HST discovery.
Offshore Malaysia, Murphy Oil Corp. encountered significant natural gas pay with the Rotan #1 exploration well offshore Sabah.
Rotan #1, drilled in 1,150 m (3,773 ft) water depth, reached a TD of 2,141m (7,024 ft) in block H.
Rotan #1 is Murphy’s fourth exploration well in block H and its first discovery there.
Murphy operates block H with 80% working interest. Petronas subsidiary Petronas Carigali Sdn. Bhd. holds the remaining 20%.
And the Gulf of Thailand has seen three new gas discoveries on PTTEP-operated blocks 15 and 16.
The Ton Chan-1X and Ton Chan-2x wells are 5 km (3 mi) apart on block 16 of the Bongkot concession about 15 km (9 mi) southeast of the Bongkot central complex. Ton Chan-1X found gas bearing reservoirs in a 143-m (469-ft) interval, while Ton Chan-2X found gas in a 44-m (144-ft) interval.
The third well, Ton Rang-2X, is on block 15 about 5 km (3 mi) south of the Ton Rang-1X discovery and 20 km (12 mi) northwest of the Bongkot central complex. Ton Rang-2X encountered 72 m (236 ft) of gas bearing sand.
A development plan for the three discoveries is under study. Production could begin in 2009.
Middle East
Saudi Aramco has signed a contract with Belgium dredging contractor Jan De Nul to help develop the 900,000 b/d Manifa offshore oil field.
Jan De Nul will carry out dredging works in the Arabian Gulf before building several drilling islands and a 41-km (25-mi) causeway that will provide Saudi Aramco with a direct link from the coast to shallow-water offshore man-made drilling islands. The initial project is scheduled for completion in 2009.
This is the first lump-sum turnkey contract to be signed under Saudi Aramco’s Manifa development program, the company’s largest offshore project. The company expects to add 900,000 b/d of Arabian heavy crude production by 2011.
Mediterranean
Portugal could soon see more offshore exploration.
A group of contractors has signed three oil exploration, development, and production contracts with the Portuguese state.
The three contracts give concession rights for the Gamba, Lavagante, and Santola offshore areas covering more than 9,000 sq km (3,475 sq mi) along the coast of Alentejo. Water depth in the three blocks ranges from 200 m to 3,000 m (656-9,842 ft).
The initial phase of the concession is for eight years. The production phase is for 30 years with the option of 15 more years. In the exploration phase, the consortium is obligated to acquire seismic data and to drill several exploration wells.
Hardman Resources Ltd. will operate the concessions with 80% interest. Partners include Partex Oil and Gas (Holdings) Corp. with 10% interest and Galp Energia with the remaining 10%.
Exxon Mobil Corp. subsidiary ExxonMobil Libya Ltd. has signed an exploration and production-sharing agreement (EPSA) with Libya’s National Oil Corp. to begin exploration in the offshore Sirte basin.
The agreement includes four blocks in Contract Area 20, about 161 km (100 mi) off the Libyan coast. The blocks were awarded to ExxonMobil in the third round of EPSA IV licensing in December. The contract area comprises more than 1 million hectares (2.5 million acres) in water depths ranging from 1,219 m to more than 1,981 m (4,000-6,500 ft). A 2D seismic acquisition program is under way.
In fact, it looks as if a lot of Mediterranean acreage soon will be on the auction block.
PGS, in cooperation with the Cyprus Ministry of Commerce, Industry, and Tourism, officially opened the first licensing round offshore Cyprus on Thursday, Feb. 15, in Nicosia, Cyprus
This license round is based on the PGS multi-client 2D seismic acquisition, which includes 6,770 line km (4,207 mi) of data covering 70,000 sq km (27,027 sq mi) over the Eratosthenes structure, Levant basin, and the prolific Nile Delta.
Unfortunately, politics has raised its ugly head. Turkey wants to have a say in exploration offshore Cyprus, and the protests at being left out of the equation might throw a wrench into the cogs.
While Cyprus sorts out its political issues, new seismic acquisition is going on nearby.
PGS is acquiring two new multi-client 3D surveys offshore Lebanon, one covering 1,500 sq km (579 sq mi) and the other covering 1,000 sq km (386 sq mi). These surveys are to form the basis for the first licensing round offshore Lebanon later this year.
And a little further north, Syria reportedly is preparing to offer new offshore and onshore blocks to international oil companies as well, though no formal plans have been announced.
Europe
There have been interesting developments in the Black Sea in the last couple of months.
For starters, Toreador Resources Corp. and its joint venture partners TPAO (the Turkish national oil company) and Stratic Energy Corp. encountered 37 m (121 ft) of gas-bearing sands in three zones with the Akcakoca-4 well offshore Turkey. Akcakoca-4 is the 11th successful well out of 13 drilled in the South Akcakoca sub-basin.
After testing the upper zone in the Akcakoca-4 and securing the well, theSouthern Cross semisubmersible rig moved 2.5 km (1.6 mi) east-northeast to drill Guluc-1, the third well in its contract with Toreador. The Guluc prospect is on a separate fault block further east along the Akcakoca fault trend.
With operations complete on Guluc-1 the rig will move to Bulgarian waters to begin work for Melrose Resources Plc., which in late January announced its plans for an exploration drilling program offshore Bulgaria for 2007.
The company holds 100% working interest in four exploration concessions in the Bulgarian portion of the western Black Sea covering over 10,000 sq km (3,861 sq mi).
Melrose plans to begin a drilling program that includes three firm and two optional wells. Drilling is expected to begin by late March.
The first well will be in the Bourgas Deep block. The Izgrev No.1 exploration well will be the first in this area of the Black Sea. The prospect is 60 km (37 mi) offshore in 300 m (984 ft) water depth.
The second well, Obzor No.1, is in block Kaliakra 99 in 650 m (2,133 ft) water depth, also about 60 km (37 mi) offshore.
The third well will be the Ropotamo No.1 exploration well in block Rezovska 45 km (28 mi) east of the Bulgarian coast in 160 m (525 ft) water depth. Ropotamo No.1 will be the first well in this region of the Black Sea.
Depending on drilling results, up to two further wells could be drilled.
Central Europe/Caspian
The most recent news from the Caspian is that Dragon Oil Plc. has finished drilling development wells LAM 21/117 and LAM 13/ 118 in the Cheleken contract area offshore Turkmenistan.
According to Dragon, the National Iranian Oil Co. jackupIran Khazar has moved to the new LAM A platform and has spudded well LAM A/119, the first in a series of development wells. Eurasia Drilling Co.’s Astra jackup is scheduled to move to the LAM 28 platform to drill the company’s first exploration/appraisal well on the block, well LAM 28/120
The Cheleken contract area covers 950 sq km (367 sq mi) and comprises two offshore oil and gas fields, Dzheitun (LAM) and Dzhygalybeg (Zhdanov), in water depths ranging from 8 to 42 m (26-138 ft), as well as a minor offshore extension of an adjacent onshore producing field. The company’s operational focus offshore Turkmenistan is the development of the LAM and Zhdanov fields, which originally were discovered during the Soviet era.
