Africa
Netherlands-based Coparex has awarded Brovig Offshore an FPSO contract for the Isis Field offshore Tunisia. The contract calls for an FPSO moored with Brovig's Tripod Catenary Mooring System and the management and operation of the vessel for the initial four years. The field is expected to begin production by the end of June 2001.
Triton has had major confirmation on its Ceiba discovery on Block G off Equatorial Guinea. The company reported that the Ceiba-3 development well confirmed the primary reservoir discovered in the Ceiba-1 and Ceiba-2 wells and encountered a deeper, similar quality oil reservoir. Also, the Ceiba-4 development well confirmed the oil pool discovered in Ceiba-1, Ceiba-2, and Ceiba-3. Ceiba-3 penetrated 256 ft of net oil-bearing pay with an oil-water contact about 60 ft deeper than in the first two wells, and Ceiba-4 penetrated 269 ft of net oil-bearing pay in three zones. Triton said that Ceiba-4 encountered the best and thickest high-quality reservoirs in the field to date.
TotalFinaElf has signed a $1.16 billion deal with the Nigerian National Petroleum Corp. (NNPC) to develop the Amenam oil field off Nigeria. Under the agreement, TotalFinaElf will take loans on behalf of NNPC and will be through NNPC's margins. The deal is another of Nigeria's new initiatives where international partners' source development funds in behalf of the country. The first deal was made with Shell and Agip last year for the EA Field. Amenam is expected to begin production in 2003.
Americas
Vastar has picked a spar as its production system of choice for the Horn Mountain Field in Block 127 of Mississippi Canyon in the Gulf of Mexico. The company contracted with Aker Maritime for the engineering, procurement, fabrication, and delivery of a spar scheduled for the second quarter of 2002. This will be the fifth spar in the deepwater Gulf of Mexico. The project is expected for sanctioning by the fourth quarter of this year. Horn Mountain is in 5,400 ft water depths and is expected to produce at peak rates of 65,000 b/d of oil and 50 MMcf/d of gas.
McMoRan Exploration has re-established sustained production from four wells onEugene Island Blocks 193, 208, and 215 in the Gulf of Mexico. The wells are producing a combined daily gross production averaging 1,100 b/d of oil and 600 Mcf/d of gas. Cumulative production from the field has been 64.7 million bbl of oil and 243 bcf of gas. The company also plans to drill a wildcat on Block 193 to a proposed depth of 17,500 ft to explore an untested fault in the second half of this year.
Mariner Energy has confirmed the Devils Tower discovery with a successful appraisal well. The well, Mississippi Canyon 773 #3, was drilled to a TD of 15,000 ft with the Noble Homer Ferrington semisubmersible. The well encountered hydrocarbons in three zones in a separate fault block northeast of the discovery well.
CGX is making progress off Guyana despite the ongoing maritime dispute with neighboring Suriname. The company has spudded the Horseshoe #1 well on the Horseshoe West target, outside of the disputed area. The company was forced to abandon its initial drilling target on the Eagle prospect due to the dispute.
Asia/Pacific
Kerr-McGee has drilled a second successful appraisal well on Block 04/36 in the Chinese Bohai Bay. The company drilled to 4,921 ft in 92 ft water depth and tested flow at 1,800 b/d of oil. The appraisal is located three miles north of the discovery well, CFD 11-1-1. Kerr-McGee now estimates the field holds reserves 130-150 million bbl. Drilling of a second exploratory well is underway.
AEC, a subsidiary of Alberta Energy, has made an oil discovery in the Timor Sea on the Northwest Shelf off Western Australia. The company drilled the Puffin-5 well on the AC/P22 Block to a total depth of 7,920 ft using the Ocean General semisubmersible in 341 ft water depth. According to wireline logs, the well cut 31 ft of net oil pay. AEC operates with a 60% interest. WestOil and Norwest Energy hold the remaining 40% with 20% each.
Central Asia
Anadarko has signed a production sharing agreement with Saknavtobi, the state oil company of Georgia, for oil and gas fields in the deepwater portion of the Georgian Black Sea. According to reports, the area under contract covers about 9,000 sq km and is estimated to hold reserves around 200 million tons of oil. Anadarko plans to begin seismic evaluation this summer and complete a survey within 18 months. The production sharing agreement calls for a term of 25 years.
Bulgaria is putting its Black Sea shelf on offer for exploration. The government has said that two blocks are presently on offer, the 2,601 sq km Kaliakra 99 block in the central Black Sea shelf, and a block at the Rezovska river flowing into the Black Sea. The country is not planning a tender, but rather through negotiations with applicants. Terms for the blocks are for three years of exploration with two possible extensions and upon commercial discovery , concession rights on the production.
Europe
Statoil has given PGS a letter of intent to produce the Glitne Field in the Norwegian sector of the North Sea using the Petrojarl I FPSO. The contract is expected to last 26-30 months, with the first 18 months guaranteed by Statoil at a day rate of $162,000, including a provision for upgrades to the processing facilities and potential use of a shuttle tanker. Production is scheduled to begin by July 1, 2001.
Norsk Hydro has sold its interests on the UK continental shelf to Conoco for $540 million excluding net operating capital. The sale includes the Alba, Britannia, and Gryphon fields as well as several exploration licenses, which were acquired with the purchase of Saga Petroleum. Completion of the sale is expected during the third quarter.
Norway has lifted its self-mandated oil production curbs to allow maximum flow and help curb high oil prices. The country had voluntarily withheld 100,000 b/d as part of an attempt by OPEC and other exporting countries to boost prices. Additionally, 15 oil companies have applied to explore 34 of Norway's North Sea blocks in the country's latest licensing round. The government plans to award the new blocks at the beginning of next year.
Middle East
The Egyptian General Petroleum Com-pany has extended the closing date of four unexplored deepwater blocks from the end of June to mid-November. The blocks cover 50,000 sq km of acreage in water depths between 800 and 3,000 meters, and are located adjacent to the 10-million acre Shell and ExxonMobil block. It has been reported that the blocks are subject to additional seismic surveys.
Oman and Iran are expected to conclude final negotiations on the joint development of the Bukha-Henjam offshore gas field. The field is located in the Straits of Hormuz, shared by the two countries, and boasts reserves of 1,800 bcf of gas and 400 million bbl of condensate. It is expected that the agreement will give Oman a 20% interest in the field and Iran the remaining 80%.
TotalFinaElf pledged $350 million to expand production capacity at its Al Khaleej concession off Qatar. The company envisages expanding capacity to 80,000 b/d of oil. This will include doubling the production capacity in the eastern zone of the field to 60,000 b/d and developing the northern zone to add another 20,000 b/d. The company will drill 13 new horizontal wells including four injection wells and install two new production platforms, one injection platform, and additional pipelines and process facilities in the eastern zone.
