Offshore West Africa conference preview
Shell Nigeria Exploration and Production Co. shipped its first crude oil from the Bonga deepwater oil and gas field last month. Bonga has the distinction of being the first deepwater discovery in Nigeria.
Since the Bonga discovery in 1996, deepwater development in Africa has continued at a steady and strong pace.
Over the 2006-2010 period, Africa is expected to be the leader in deepwater development, accounting for about 40% of global deepwater spending, according to oil and gas research firm Douglas-Westwood.
Deepwater development projects already in progress for the period to 2010 include Chevron’s Agbami, ExxonMobil’s Akpo, Bosi, and Erha projects, and Total’s Usan/Ukot, all of which are located offshore Nigeria.
Offshore Angola, BP is moving ahead with its Greater Plutonio development in block 18 and evaluating options for the development of its block 31 discoveries. Total is moving ahead with development of the Rosa and Lirio fields.
Also offshore Angola, Chevron Corp.’s subsidiary, Cabinda Gulf Oil Co. Lt. began oil production from the Belize field, in deepwater block 14(see full story on page 44).
As West Africa’s E&P growth continues, recent events in Nigeria show that geopolitical challenges in this region also continue.
At press, Royal Dutch Shell Plc had cut its production by 221,000 b/d -- a tenth of Nigeria’s output -- and pulled out 500 staff from Benisede and neighboring flow stations Opukushi, Ogbotobo, and Tunu in Bayelsa state.
Benisede is a riverside pumping station, which gathers crude oil from a network of wells in swampland around the Bomadi Creek, and part of the Niger Delta, about 300 km southeast of Lagos.
Sixteen people were killed or wounded on January 15 in an attack by unidentified gunmen.
Four hostages were released 19 days after their kidnapping by Nigerian separatist militants, who made demands for the release of ethnic Ijaw leaders and for local control over the region’s oil revenue.
The militants renewed a threat to destroy oil rigs and pipelines and halt the country’s key crude exports after releasing the hostages.
Agip’s offices were also struck at Port Harcourt where the attackers forced their way into the compound and stole about $28,000 in cash before a shoot-out with security forces in which seven people were killed.
Nigerian National Petroleum Corp.’s Minister of State for Petroleum Resources, and Total, as operator, began developing the offshore Nigeria Akpo field on the oil mining license (OML) 130 in May 2005. Total holds a 24% interest, alongside NNPC, Petrobras, and Sapetro. Discovered in 2000, the Akpo gas and condensate field is located around 200 km offshore Port Harcourt in water depths ranging from 1,100 to 1,700 m.
The field development plan calls for 22 producing wells, 20 water injection wells, and two gas injection wells, tied back to an FPSO with a storage capacity of 2 MMbbl.
Akpo will come onstream in late 2008 and is expected to quickly reach peak production of 225,000 boe/d, of which nearly 80% is condensate.
The condensate will be exported via a buoy located 2 km from the FPSO, while the gas will be piped 150 km to the Amenam/Kpono platforms, from where it will be sent to the Bonny liquefaction plant.
The Agami field is located about 70 km offshore in the central area of the Niger Delta. Located in water depth of about 4,500 ft, the field straddles OMLs 127 and 128. It is scheduled to come onstream in 2008 with a daily production of about 250,000 bbl of oil.
Chevron, through its affiliate, Star Deep Water Petroleum Ltd., is the operator of Agbami. Other partners in the project include Texaco Nigeria Outer Shelf Inc. (a Chevron affiliate), Petroleo Brasileiro Nigeria Ltd., Statoil Nigeria Ltd., Famfa Oil Ltd., and NNPC.
In February 2005, Star Deep Water Petroleum signed a $1.1 billion FPSO construction contract with Daewoo Shipping and Marine Engineering (DSME) Corp. of South Korea.
Agbami drilling performance overview
Chevron will present its approach to drilling development based on learning curve performance. Drilling time and cost estimates were largely based on performance improvement projection on the baseline (best) early wells and benchmark data. Results demonstrated continued significant performance improvements with new wells targeting better performance than previous wells and realization of learning curve factors quicker than estimated.
This design uses the tensions at each end to significantly minimize the fatigue on the lines, eliminating the risk of collapse. Current calculations on the U-shape give an expectable fatigue life of 200 years.
Available and emerging sensor techniques (both direct and indirect) will be discussed, and techniques for controlling oil and water quality are described. Control valves, actuators and subsea closed loop control are also addressed.•
For additional information about the conference, please visit www.offshorewestafrica.com.
West Africa E&P activity
Sonangol and Total say the Gengibre-2 appraisal well confirmed the potential of the early 2005 Gengibre-1 discovery well in block 32 in the Angolan ultra deep offshore.
Located around 2 km from Gengibre-1 in a water depth of 1,697 m, Gengibre-2 encountered a number of objectives before reaching a total depth of 4,342 m.
During two tests, it flowed at 4,540 b/d of oil from a Miocene reservoir and 5,100 b/d of oil from an Oligocene reservoir.
The Gengibre find is located in the eastern section of block 32, around 17 km from the 2003 Gindungo discovery and 12 km from the 2004 Canela-1 discovery.
Sonangol is the block 32 concessionaire. Total operates the block with a 30% interest, alongside Marathon Oil Co. (30%), Sonangol EP (20%), Esso E&P Angola (Overseas) Ltd. (15%), and Petrogal (5%).
• • •
VAALCO Energy Inc. has reached an agreement with the government of Gabon for a five-year extension of the Etame Marine permit. The extension, which will go into effect July 2006, is divided into a three-year first term and an optional two-year second term.
An exploration well is required during each term.
VAALCO has also successfully qualified as an operator for bidding in the upcoming Angolan licensing round.
Seven blocks are up for bid, with three of them being shallow water blocks of interest to the company. VAALCO was one of 29 companies qualified and one of only a handful of independents successfully able to qualify. Bids are due March 31, 2006.
• • •
PanOcean Energy Corp. Ltd. has approved a $164 million exploration and development capital program for 2006 designed to more than double 2005 production. Approximately 20% of the budget is allocated to exploration activity.
Included in the program are plans for drilling one offshore exploratory well and drilling and completion of two offshore wells in the Etame Marin field off Gabon, operated by VAALCO Energy Inc.
• • •
Chevron Corp. began exploration drilling in the Gulf of Guinea on deepwater block 1 jointly owned by Sao Tome and Principe and Nigeria. It is located approximately 190 mi north of the city of Sao Tome in 5,700 ft of water.
Chevron is the operator and has a 51% share of the block while ExxonMobil has a 40% interest, and Norway’s Equity Energy Resources holds the remaining 9%.
• • •
Petrobras has bought a 50% stake in deepwater block L in Equatorial Guinea from a group of companies for an undisclosed sum. Petrobras says it had acquired a 25% participation from Chevron Corp., 12.5% from Amerada Hess Corp., 10% from Energy Africa Equatorial Guinea Ltd., and 5% from Sasol Petroleum International Ltd.
Chevron remains the block’s co-owner and operator, but Petrobras has an option to become the operator in the event of a commercially viable discovery.
The block, in the Munin basin, lies next to block G operated by Amerada Hess, where eight oil fields have been found, including Ceiba, which is already in the production phase, according to Petrobras.
• • •
Australia-based exploration company Roc Oil Ltd. says it will abandon itsDore-1 exploration well offshore Mauritania after drilling failed to find any significant hydrocarbons.
Roc’s 2005 Mauritanian drilling program is now finished and the Stena Tay drilling rig would be released. Exploration will resume with a new rig, theAtwood Hunter, in 2Q 2006.
Partners in the Dore acreage are Woodside Petroleum Ltd., Hardman Resources Ltd., BG Group, and Premier Oil Plc.
• • •
FirstAfrica Oil Plc has spudded its first well in the East Orovinyare oil field (EOV) offshore Gabon. TheGSF Adriatic IX jackup rig is on location and began drilling of the EOV-4 appraisal/development well. The company expects drilling and testing of EOV-4 to be completed by late February.
EOV-4 will be followed by three additional development wells to be drilled by theGSF Adriatic VI jackup, which is due to arrive at the field in April 2006.
Production is scheduled to begin 4Q 2006.
• • •
Dana Petroleum has released new data on its Faucon-1 discovery well in Mauritania offshore block 1. Preliminary results, aided by subsequent log analysis, suggest a 200 bcf gas reservoir with a thin oil zone. These reserves would not be enough to justify development at this stage, but the result does demonstrate a working petroleum system in the south of the country.
This summer, the company plans to resume drilling with well testing of the Flamant prospect in northern block 8, using theAtwood Hunter. Seismic interpretation suggests a possible 6 tcf structure. The same rig will then drill a well in block 7, where Dana has another gas discovery, named Pelican.
On the other side of Africa, Dana is partnering with Woodside Energy in Kenyan offshore blocks L5 and L7. Drillable prospects have been identified, but progress has been hampered by the tight market for suitable deepwater rigs.
• • •
SBM Offshore has signed an agreement with ExxonMobil affiliate Esso Exploration Angola (Block 15) Ltd. in which SBM will proceed with project development activities for two FPSOs for the Kizomba C development offshore Angola.
While Esso is the operator of the block, further contracts for definitive leasing and operation agreements are subject to approval by the project co-venturers, Sonasing and OPS. Once these contracts are approved and signed, then the remuneration structure and duration of the leases will be disclosed.
The new FPSO conversions are an extension of ExxonMobil’s Early Production System (EPS) concept, with enhanced processing capacity.
The FPSOs will be installed at the Mondo and the Saxi-Batuque fields in water depths of approximately 700 m. Each facility will be designed to produce 100,000 b/d of oil, with a storage capacity of nearly 2 MMbbl.
The FPSOs will be moored by external turrets and further fitted with large capacity water and gas treatment and reinjection facilities, in addition to the related power generation equipment.
The two units will be completed and installed onsite offshore Angola by 2Q 2008.
West Africa E&P activity
Sonangol and Total say the Gengibre-2 appraisal well confirmed the potential of the early 2005 Gengibre-1 discovery well in block 32 in the Angolan ultra deep offshore.
Located around 2 km from Gengibre-1 in a water depth of 1,697 m, Gengibre-2 encountered a number of objectives before reaching a total depth of 4,342 m.
During two tests, it flowed at 4,540 b/d of oil from a Miocene reservoir and 5,100 b/d of oil from an Oligocene reservoir.
The Gengibre find is located in the eastern section of block 32, around 17 km from the 2003 Gindungo discovery and 12 km from the 2004 Canela-1 discovery.
Sonangol is the block 32 concessionaire. Total operates the block with a 30% interest, alongside Marathon Oil Co. (30%), Sonangol EP (20%), Esso E&P Angola (Overseas) Ltd. (15%), and Petrogal (5%).
• • •
VAALCO Energy Inc. has reached an agreement with the government of Gabon for a five-year extension of the Etame Marine permit. The extension, which will go into effect July 2006, is divided into a three-year first term and an optional two-year second term.
An exploration well is required during each term.
VAALCO has also successfully qualified as an operator for bidding in the upcoming Angolan licensing round.
Seven blocks are up for bid, with three of them being shallow water blocks of interest to the company. VAALCO was one of 29 companies qualified and one of only a handful of independents successfully able to qualify. Bids are due March 31, 2006.
• • •
PanOcean Energy Corp. Ltd. has approved a $164 million exploration and development capital program for 2006 designed to more than double 2005 production. Approximately 20% of the budget is allocated to exploration activity.
Included in the program are plans for drilling one offshore exploratory well and drilling and completion of two offshore wells in the Etame Marin field off Gabon, operated by VAALCO Energy Inc.
• • •
Chevron Corp. began exploration drilling in the Gulf of Guinea on deepwater block 1 jointly owned by Sao Tome and Principe and Nigeria. It is located approximately 190 mi north of the city of Sao Tome in 5,700 ft of water.
Chevron is the operator and has a 51% share of the block while ExxonMobil has a 40% interest, and Norway’s Equity Energy Resources holds the remaining 9%.
• • •
Petrobras has bought a 50% stake in deepwater block L in Equatorial Guinea from a group of companies for an undisclosed sum. Petrobras says it had acquired a 25% participation from Chevron Corp., 12.5% from Amerada Hess Corp., 10% from Energy Africa Equatorial Guinea Ltd., and 5% from Sasol Petroleum International Ltd.
Chevron remains the block’s co-owner and operator, but Petrobras has an option to become the operator in the event of a commercially viable discovery.
The block, in the Munin basin, lies next to block G operated by Amerada Hess, where eight oil fields have been found, including Ceiba, which is already in the production phase, according to Petrobras.
• • •
Australia-based exploration company Roc Oil Ltd. says it will abandon itsDore-1 exploration well offshore Mauritania after drilling failed to find any significant hydrocarbons.
Roc’s 2005 Mauritanian drilling program is now finished and the Stena Tay drilling rig would be released. Exploration will resume with a new rig, theAtwood Hunter, in 2Q 2006.
Partners in the Dore acreage are Woodside Petroleum Ltd., Hardman Resources Ltd., BG Group, and Premier Oil Plc.
• • •
FirstAfrica Oil Plc has spudded its first well in the East Orovinyare oil field (EOV) offshore Gabon. TheGSF Adriatic IX jackup rig is on location and began drilling of the EOV-4 appraisal/development well. The company expects drilling and testing of EOV-4 to be completed by late February.
EOV-4 will be followed by three additional development wells to be drilled by theGSF Adriatic VI jackup, which is due to arrive at the field in April 2006.
Production is scheduled to begin 4Q 2006.
• • •
Dana Petroleum has released new data on its Faucon-1 discovery well in Mauritania offshore block 1. Preliminary results, aided by subsequent log analysis, suggest a 200 bcf gas reservoir with a thin oil zone. These reserves would not be enough to justify development at this stage, but the result does demonstrate a working petroleum system in the south of the country.
West Africa E&P activity
... continued from page 50
This summer, the company plans to resume drilling with well testing of the Flamant prospect in northern block 8, using theAtwood Hunter. Seismic interpretation suggests a possible 6 tcf structure. The same rig will then drill a well in block 7, where Dana has another gas discovery, named Pelican.
On the other side of Africa, Dana is partnering with Woodside Energy in Kenyan offshore blocks L5 and L7. Drillable prospects have been identified, but progress has been hampered by the tight market for suitable deepwater rigs.
• • •
SBM Offshore has signed an agreement with ExxonMobil affiliate Esso Exploration Angola (Block 15) Ltd. in which SBM will proceed with project development activities for two FPSOs for the Kizomba C development offshore Angola.
While Esso is the operator of the block, further contracts for definitive leasing and operation agreements are subject to approval by the project co-venturers, Sonasing and OPS. Once these contracts are approved and signed, then the remuneration structure and duration of the leases will be disclosed.
The new FPSO conversions are an extension of ExxonMobil’s Early Production System (EPS) concept, with enhanced processing capacity.
The FPSOs will be installed at the Mondo and the Saxi-Batuque fields in water depths of approximately 700 m. Each facility will be designed to produce 100,000 b/d of oil, with a storage capacity of nearly 2 MMbbl.
The FPSOs will be moored by external turrets and further fitted with large capacity water and gas treatment and reinjection facilities, in addition to the related power generation equipment.
The two units will be completed and installed onsite offshore Angola by 2Q 2008.
