STOCKHOLM, Sweden – PA Resources (PAR) says it has completed detailed work with state oil company ETAP on a full field life plan of development (POD) for the Zarat field southern tract offshore Tunisia.
Zarat is the country’s largest undeveloped offshore oil and gas field, which the authorities consider a strategic asset for Tunisia in light of the country’s increasing gas supply/demand imbalance. The short fall could exceed more than 30% by 2020, PAR claims.
The partners plan to present their POD to the Zarat northern tract partners for their review and approval, prior to submitting an overall unit plan of development (UPOD) to the authorities by March 31.
Both sets of partners are also close to completing a legally and commercially robust Zarat unitized unit operating agreement (UUOA), PAR adds, which again should be submitted to the government by the end of March.
Work also continues on determining a target for the Elyssa 4 appraisal well. PAR has completed a conceptual development plan that includes a tieback to the planned Zarat facilities.
Earlier this year the company reverted to being100% owner of the offshore Didon concession after the Tunisian authorities missed a deadline to sanction EnQuest’s sale and purchase agreements for a 70% interest in Didon and the Zarat permit.
PAR says it has initiated a cost reduction program following the oil price fall, and this has led to the Didon full field incremental oil recovery plan being placed on hold.
At current prices Didon is cash flow negative and this situation will likely worsen as wells decline until a campaign of downhole electric submersible pumps (ESPs) or infill drilling can be conducted. However, both will require a substantial investment.
The ESP in the D6 well failed last November due to a downhole electrical fault, thought to be cable related. Other wells were optimized to partly compensate for this failure.
Work continues on incremental oil opportunities, including the installation of a further ESP, and reviews of locations for future potential Didon infill wells.