EDINBURGH, UK – Petrofac and Bowleven plan a strategic alliance for the proposed development of the Etinde permit offshore Cameroon.
Subject to approval from Bowleven shareholders, and the outcome of further appraisal work, Petrofac will provide engineering services to Euroil, Bowleven’s Cameroonian subsidiary, for the field development plan (FDP) for the project’s first phase.
Pending agreement on the FDP and co-venturer and government approvals, Petrofac will provide project management, engineering, procurement, and construction services for the development. Petrofac will also commit up to $500 million to the program, receiving remuneration via a share of Bowleven’s production revenue.
Bowleven’s selected concept, based on a“hub and spoke” scheme, involves a staged and flexible approach to the development and early liquids production. Offshore discoveries in block MLHP-7 would be the focus for the first stage, under which all required infrastructure would be constructed and installed, including an onshore processing facility.
The second-stage concept envisages integration of the company’s discoveries on block MLHP-5, using onshore infrastructure installed during the initial stage. Detailed development planning is in progress, and project definition, scope and execution schedule for the Stage 1 scheme are all in place.
In the meantime, subsurface appraisal continues, including evaluation of 3D/4C ocean bottom cable seismic data acquired on the IE and IF fields on block MLHP-7.
An independent subsurface and engineering consultancy is assisting with detailed reservoir engineering work for development planning, including generation of reserves and production profiles.
Drilling of theIM-5 appraisal/development well started in September 2012, with an update due to be issued in mid-January 2013. Results will determine whether further appraisal drilling is needed.
A draft Etinde Exploitation Authorization Application (EEAA) has been submitted to the Cameroon authorities. A final EEAA submission should be issued by Euroil before Dec. 21, the expiry date of the Etinde permit’s exploration period.
Once authorization is received, the Etinde joint venture partners will secure development and exploitation rights for an initial period of 20 years and the state of Cameroon will be able to exercise an option to take a 20% interest.
The joint venture is targeting a final investment decision during the second half of 2013, leading to first production in 2016.