GLOBAL E&P BRIEFS

Africa

Ocean Energy is in the process of testing its Lion A5 well off Côte d'Ivoire. The company hopes the well will find new reserves in the block, CI-11, which contains the Lion and Panthere fields. The well is drilling to a depth of 2,682 meters using the Adriatic V rig. Ocean is also in the process of evaluating its dry hole CI-105 drilled last year, and has the option to drill another well on the prospect.

Conoco has was won the rights to explore offshore Morocco. The concession is located off the coasts of Al Hoceima and Nador and cover in excess of 26,400 sq km. The terms of the contract, signed with the national office for oil research and exploitation, call for a 12-month seismic program and upon results Conoco can enter into an exploitation agreement.

Tuskar Resources has contracted with Acker Geophysical of Oslo for a survey over the deepwater portion of Tuskar's OML 110 off Nigeria. The company believes the area has the potential to contain over one billion bbl of recoverable oil, lying in the deep water portion.

Shell announced it will invest $1.8 billion over the next four years to develop the Bonga Field off Nigeria. The field is expected to produce 200,000 b/d beginning in 2003. The project represents part of the company's five-year $8.5 billion Nigerian energy investment announced last year.

Americas

Mariner made a deepwater discovery in the Mississippi Canyon area of the Gulf of Mexico. The company drilled the MC 773 NO. 1 well in 5,610 ft water depths in Block 773 on the Devil's Tower prospect. The well was drilled to 15,625 ft and logged a significant number of hydrocarbon-bearing zones. The company plans to begin appraisal drilling in the second quarter and evaluate development designs. Mariner holds 50% interest with partners CNG Producing (30%), Pioneer (16%), and Westport (4%).

PanCanadian Petroleum has made a gas discovery off the coast of Nova Scotia. The company drilled two wells beneath the depleted Panuke Field and each flowed over 50 MMcf/d of gas. The wells, known as PP-3C and PI-1B intersected gas zones with thicknesses of more than 230 ft and 100 ft respectively. Panuke oil field was Canada's first offshore oil project and in December was said to be nearing the end of economic life. PanCanadian plans at least two more wells in the field to determine the size and extent of the reservoir.

CGX Energy will begin drilling on its Eagle prospect offshore Guyana this month. The company has contracted the C.E. Thornton jackup from R&B Falcon to drill in 270 ft water depth, 135 km from shore. The company has performed extensive seismic analysis on its concession and has identified two targets: Eagle and Wishbone. The well is estimated to cost $7.3 million. The company is also considering a second well on the Wishbone West prospect at an estimated cost of 44.8 million.

Operator Houston Exploration and partner McMoRan Exploration'sVermilion Block 408 No. 1 in the Gulf of Mexico has tested at a flow rate of 3,040 b/d of oil and 11.1 MMcf/d of gas. The well was drilled to a total depth of 8,000 ft and encountered 167 net ft of pay in a single sand. The well will be temporarily abandoned, pending completion of the production facilities. Production is expected by year-end.

Asia/Pacific

BHP drilled a discovery in Block WA-255-P off Western Australia. The Coniston-1 exploration well was drilled in 389.5 meters water depth and reached a TD of 1,350 meters. The well tested at 2,119 b/d of oil under constrained conditions. The company is in the process of evaluating the well results.

China is planning to boost the Suizhong 36-1 oil field in the Bohai Bay from 1.5 million tons per year of production to 3.5 million tons this year. This is the second phase of the project to expand the field's capacity and is expected to be completed by the end of the year. The complete project will boost production to 5 million tons. Total cost of the project is about $627 million.

Central Asia

Conoco has acquired a 20% interest in the Zafar Marshal exploration block in the Caspian Sea from Azerbaijan state-owned Socar. The block is located in the high-potential Volga Delta play in the South Caspian basin. The area has yielded several proven discoveries. Socar will retain a 50% interest in the block. ExxonMobil is the operator with a 30% interest.

Arco has pulled out of the Sakhalin Island project offshore Russia. The company attributed the decision to escalating costs. The company plans to end the partnership with its two Russian partners in the project - RAO Rosneft and OAO Sakhalinmorneftegaz. The companies were drilling on the Astrakhanovskoye prospect called Sakhalin 4.

Europe

Enterprise is increasing production on the Pierce Field in the UK sector of the North Sea from 54,000 b/d of oil to 65,000 b/d. The company shut down production for 10 days to allow for modifications which increase capacity by about 20%. The field is producing to the Berge Hugin FPSO. Production initially began on the field in February of last year and the field has already produced over 10 million bbl.

Norsk Hydro has put its interest on the UK continental shelf up for sale. The company is interested in selling its holdings in several exploration licenses and three producing fields - Britannia, Alba, and Gryphon. The assets were originally owned by Saga and are being sold following Norsk Hydro's acquisition of the company.

BP Amoco is planning to drill its first exploration well on the Vrackie prospect in the next few months. The prospect is on Block 204/28 in the UK West of Shetlands. The company will use the Stena Dee semisubmersible to drill the well. The rig is presently working on BP Amoco's nearby Schiehallion oil field.

Middle East

Yemen is about to sign a production sharing agreement with two companies for an offshore block. Last year, the government signed a memorandum of understanding with Al-Outaiba Group of the United Arab Emirates and Oil Search of Australia for exploration of Block 15 in the southern Mukalla area. The production sharing agreements are expected to be finalized in the next few weeks.

Russian major Lukoil is the latest company to consider opening up shop in Iran. The company said that Iran has proposed that the company develop offshore blocks in the Persian Gulf, but added that the proposal needs a thorough consideration before deciding on participation. The company has since signed a memorandum of understanding with Iran to participate.