Sao Tome and Principe prepare for round
The government of Sao Tome and Principe will begin promoting offshore acreage in the country's forthcoming licensing round. The company is embarking on acquiring an extensive grid of speculative, non-exclusive 3D seismic data, which will be marketed to interested companies prior to and during the planned licensing round. The deal is coming on the heels of a border dispute with Nigeria.
Upon ratifying of the Joint Development Zone treaty with Nigeria, Sao Tome and Principe will form a legislative framework around which the licensing round will evolve. The maritime border dispute with Nigeria began six years ago when the island nation of Sao Tome and Principe demarcated 22 deepwater leases, one which happened to overlap with leases in deepwater Nigeria. Nigeria's military government was adamant about its maritime boundaries, hence there was no progress. The current civilian administration set up discussions on the dispute immediately when it came to power in 1999. But agreement could not be reached until the first quarter of 2001. At its last bidding round in late 2000, Nigeria could not award the lease OPL 247 because of the demarcation problem.
Sierra Leone throws open deepwater acreage
The Sierra Leone Government was scheduled to throw open the country's prospective deepwater acreages earlier this month. The acreages were expected to extend to the 3,000-meter water depth contour. The licensing round will be the country's first and is in cooperation with TGS-Nopec. A 4,500 km non-exclusive marine speculative 2D seismic survey acquired in the Sierra Leone waters off Liberian Basin by TGS Nopec Joint Venture between November 2000 and March 2001 has led to the licensing. The data was acquired by the Nanhai 502 S/V, which also acquired a 9,000-km non-exclusive survey for Liberia. Sierra Leone has only known peace in the past year, after a decade of civil war.
Shell progresses on Bonga SW1
Shell deepened the Bonga SW1 in deepwater Nigeria, by 500 meters and was prepared to go a further 300 meters at the end of April. The new field wildcat, located about 20 km southwest of the centre of the main Bonga field, was drilling close to 4,000 meters as of May 1. Operations on the well resumed on March 1, after being suspended due to rig collision damage. Bonga SW1 is an exploratory well drilled on a North-South plunging structure, which straddles Texaco's OPL 213 to the south.
Even if it is a discovery, the well will not be a part of the ongoing Bonga development program, which proposes to drain 600 million bbl of oil with 27 wells. "If it's susccessful and we drill more wells, we may eventually hook the field up to the main Bonga field," according to one Shell source, who is part of the Bonga team in New Orleans. "But that will not be in the short to medium term." Bonga holds a conservatively estimated 750 million bbl and is expected to go onstream in the last quarter of 2003.
Mixed fortunes on South Africa's Block 2
Forest Oil was running a drill stem test to examine possible gas pays in South Africa's AY01 (Block 2) at the end of April. Sources said it "looks like a good well." If the test proves successful, it would be a twist in the unhappy turn of events for Forest, which drilled two wells unsuccessfully in the last three months on the same lease by the same Pride rig. Forest had earlier abandoned AW01, with no shows, in 246 meters water depth, 7 km from AY01. Then, the company drilled AV01ST2, encountered gas at levels that were not in the prognosis, but failed to properly test those levels because of mechanical failure.
Vanco keeps shooting off West Africa
Independent Vanco Energy is making progress in acquiring extensive 3D seismic data in half a dozen permits off West Africa. In March, Vanco was on course with a 3,025-sq-km 3D seismic program in the Safi Haute Mer and Ras Tafelney exploration permits off Morocco. The operation commenced January 26, 2001 with CGG/Aker's S/V Symphony and was on schedule for completion by the end of April. The company completed 1,850-sq-km of 3D seismic data coverage in deepwater Namibia and Cote d'Ivoire in mid-April. The vessel Western Geco Trident moved over to Equatorial Guinea to start acquisition on an undisclosed volume of 3D seismic data. In Senegal, the company acquired 1,500 line km of 2D seismic. The main target of the data coverage in Morocco is a toe-thrust trend crossing the two exploration permits, in 1,500-2,000 meter water depths with a secondary interest in the deeper inverted structures in 1,800-2,500 meters water depth. The 3D targets are influenced by Vanco's results of interpretation over 5,000 km of 2D seismic, which Vanco carried out in the last two years. The company says it identified at least 35 leads, mostly in the Cretaceous, on the permits that hold 20 blocks. Vanco's production sharing agreement (PSA) with the Moroccan government calls for 3D data coverage and a well in each of the two permits.
Meanwhile, Vanco has been negotiating for more acreage off the beaten tracks of the majors. In the last two months, the company signed a PSA with the Madagascar government for the 14,865 sq km Majunga deepwater tract. Vanco says it will commence acquisition of 1,900 line km 2D seismic data on the tract in May.
Chevron, Texaco show faith in Agbami program
The appointment of Donald MacDonald and Fred Gibson into the deepwater portfolio team of the Nigeria/Mid-Africa SBU is the strongest indication to date that Chev-ronTexaco management approves of the current field development plan for the huge deepwater field Agbami, located off the Nigerian coast. MacDonald, currently Vice President Exploration Texaco, will become General Manager Deepwater Ventures after the completion of the merger. Gibson, who is Development Business leader for Texaco, will take charge of the Deepwater Asset Management for SBU. The two men will report to Ray Wilcox, currently managing director of Nigeria/Mid-Africa SBU for Chevron, who will be the managing director of Nigeria/Mid-Africa SBU of the merged company. Appointments will become effective after the US Securities and Exchange Commission approves the merger. "I think that what management is saying is 'Hey, we (Chevron) have not been active in deepwater in Nigeria. You guys have interests in four deepwater leases. Please go ahead and guide us,'" according to a source. Before the merger, Texaco scheduled the Agbami field (estimated 800 million bbl) to come onstream in 2004. It is not clear if that date will hold, when all the assets of the new company are ranked.
Petrobras is first to place bid for Tanzania bidding
Bidding began on May 21st after the closing of Tanzania's first offshore licensing round. Petrobras was the first to place a bid for block number 5. Six exploration blocks in the deepwater Mafia Basin were offered to international oil companies in September 2000. Companies were given eight months to submit proposals. Seismic data for the blocks was accomplished through WesternGeco in a two-phase program. WesternGeco acquired a total of approximately 11,000 km of 2D seismic data for about US $11 million. Phase one consisted of 7,000 km acquired in the Mafia Basin in water depths between 300 and 3300 meters. The data was then interpreted by the Tanzania Petroleum Development Corporation (TPDC), Ministry of Energy and Minerals and WesternGeco. In phase two, 4000 km of seismic data were done in Zanizbar and Pemba deepwater. The data is currently being interpreted by TPDC for the second licensing round expected soon.
