VAALCO considers action to counter H2S at Etame offshore Gabon

VAALCO Energy says it is evaluating options for handling oil containing hydrogen sulfide (H2S) that has affected some wells in the Ebouri and Etame fields offshore Gabon.

Offshore staff

HOUSTONVAALCO Energy says it is evaluating options for handling oil containing hydrogen sulfide (H2S) that has affected some wells in the Ebouri and Etame fields offshore Gabon.

During 1Q 2015, an extended test of the Etame 8-H well, drilled from theEtame platform late last year, confirmed the presence of H2S. As a result, the well remains shut-in and options for its future use are under review.

To re-establish and maximize production from the impacted areas, further investments appear inevitable, including one or more processing facilities equipped for removal of H2S; recompletion of the temporarily abandoned wells; and potentially, new wells.

In light of current oil prices, the company and its partners are focusing on more cost-efficient processing options, such as chemical removal, construction of smaller facilities on existing structures, or deployment of surplus equipment/used structures.

VAALCO says the project concept will be decided and timing of startup determined by 4Q 2015 with a view to re-establishing production from the area impacted by H2S as soon as possible.

In block 5 offshore Angola, the company says it is undeterred by recent drilling results from theKindele well and retains faith in the postsalt/presalt potential in the block.

The company continues to interpret 3D seismic data over the block and has added new leads. It does not, however, plan more exploratory drilling off Angola until late 2016.

05/20/2015

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