Triton signs development contracts for Equatorial Guinea
US-based Triton Energy has stepped up its already fast-tracked development of the Ceiba Field in deepwater Block G off Equatorial Guinea. The company has signed a multi-year leasing contract with Bergesen DY Offshore of Norway for the lease of an FPSO that will be the cornerstone of the field's development.
Triton has specified that the FPSO will have initial onboard processing capacity of 60,000 b/d of oil and storage of two million bbl. The vessel will also be made available to facilitate the possible future addition of production modules to accommodate a capacity of 240,000 b/d with water and gas injection facilities, should the company deem an upgrade necessary. The FPSO is being converted from a 275,000 dwt turbine tanker, the Berge Charlotte at the Jurong Shipyard in Singapore. The Berge Charlotte is a VLCC (very large crude carrier) measuring 1,150 ft in length by 170 ft in width. Long lead items for the vessel have already been ordered and assembly of the initial oil and gas processing facilities by ABB Offshore Systems are underway.
Triton has also signed contracts with Cameron for the wellheads, subsea production trees, pipeline end manifolds, the production and control lines, and the subsea and surface installed production control systems for four wells. Production for the field is expected to commence by year-end.
Elf and Agip sell off interest
Elf has sold off 15% interest in two blocks offshore the Congo in the Lower Congo Deepwater Basin. Chevron acquired the company's 15% interest in the 1,300 sq mile Mer Profonde Sud deepwater exploration block. The block lies adjacent to Chevron's deep water Block 14 offshore Angola and Elf's Haute Mer permit offshore Congo which is the home of the giant N'Kossa Field. Water depths for the block range of 3,300-6,600 ft. Elf will retain a 25% interest and remain the operator for the block.
Elf also released 15% interest in the neighboring Mer Profonde Nord block to Marathon. The block lies in water depths of 500-7,000 ft and is operated by Esso. Drilling programs are planned for both blocks later this year.
In addition to Elf, Agip has also ceded interest in the area. The company released 25% of its interest in three exploration blocks off Gabon to Petronas Cariga* Overseas. The three blocks, Mpolo, Chaillu, and Meboun, are located in the southern region of the country's deepwater. Agip said the move was part of the parent company ENI's plan to rationalize their portfolio of exploration rights.
Chevron evaluating two strikes off Angola
Following the successful production startup of the Kuito Field in deepwater Block 14 off Angola, Chevron is not showing any signs of slowing down. The company has successfully completed two appraisal wells in the block on its Benguela and Belize fields.
The Benguela 2A and Belize 2A wells tested at rates of 8,400 and 11,000 b/d of oil, respectively, both on restrictive chokes and from Miocene sands. The quality of Belize oil is 36° API gravity; while Benguela contains both 24° and 34° API gravity crude.
Technical evaluations of the results are underway and Chevron is studying options for development. Front-end engineering is expected to begin shortly. These appraisal wells are the second for each field. Benguela was discovered in June of 1998 while Belize was made five months later in October. The fields are located 4 km south of Kuito. Chevron is the operator of the block with 31%. Other partners include Sonangol, Agip, Petrogal, and TotalFina.
Angola and Congo joining forces
The governments of Angola and the Congo have been in negotiations to help strengthen one another's oil sector. Government representatives have held meetings to help strengthen marketing ties between the two countries. Angola said that it wanted to help the Congo benefit from the experience the country's state oil company Sonangol has had in oil exploration, production, and marketing. In addition Angola has asked the Congo to help it build a refinery for Chevron's Benguela Field.
These new cooperation discussions are thought to be the result of several recent finds by Chevron, Elf, and others straddling the boarders of these countries. It is thought that any agreement would be similar in nature to the agreements held between these companies with spanning fields.
Nigeria deepwater round getting closer
While Nigeria's announced deepwater round is expected to be underway by the time of this writing, the government was inching ever-closer to opening the country's bidding round. The government, has not at this time released any formal documents, but hinted at some new guidelines for the bidding round. The new guidelines are expected to establish strict requirements for bids as part of the new round.
The new guidelines will provide for a $10 million performance bond by oil companies in addition to submission of proof of a minimum three-years operation prior to application. Also deepwater and ultra-deepwater blocks will require a signature bonus fee of $25 million for deepwater and $20 million for ultra-deepwater. In addition companies that won shallow water and onshore blocks would be required to pay $10 million as a signature bonus. The strict guidelines were established to put an end to Nigeria's former policy of license awards based on patronage rather than competence.
