LONDON -- Tullow Oil says it continued to build its resource base in Africa in 2008. Following are some highlights from the region:
To enable drilling of offshore exploration prospects in Lake Albert, Tullow has initiated a front-end engineering and design (FEED) study for an offshore drilling solution. The study has been executed jointly with Heritage Oil and is scheduled for completion in the second quarter. Offshore drilling is anticipated to start in 2010.
During 2008, possible development schemes were reviewed for the Kudu gas resources offshore Nambia. A technical study on emerging offshore Compressed Natural Gas (CNG) technology was also carried out. Commercial analysis of the development options continue. The company intends to present a proposal to the government in 2009 in advance of entering into negotiations with potential gas buyers.
Tullow is reviewing acreage in the Equatorial Atlantic margins of West Africa and South America to identify possible analogues to the deepwater discoveries in Ghana. During 2008, offshore blocks LB-15, LB-16, and LB-17 were targeted as having high potential. A farm-in deal was concluded in January 2009 resulting in Tullow acquiring a 25% interest in all three blocks. A large 3D survey is currently being acquired to delineate high potential prospects identified on existing 2D data.
During the year existing seismic was reprocessed and a further 600 sq km (232 sq mi) of 3D data was acquired. Further evaluation in 2009 will define the future drilling program for offshore block 1/06, which contains the Pitangueira and Bananeira discoveries as well as additional prospects.