Shell to up output off Nigeria

Royal Dutch/Shell plans to increase its production off Nigeria by 60% from the current 900,000 b/d to 1.4 MMb/d by 2004, with most of the increase coming from offshore. Bonga, the huge deepwater field, will deliver 250,000 b/d. The EA/Eja fields will produce 80,000 b/d.

Shell spokesman Basil Omiyi said the company would not be able to end gas flaring by 2004 because of the increase. Each additional barrel produced brings with it 1,000 cf of gas. Nigeria's upper legislative house had suggested that the country push forward from 2008 to 2004 the mandatory date to end gas flaring. But Omiyi told the senate: "If we were static and Nigeria was not going to increase its production and Shell would not need to double production to support Nigeria's need by 2004, a volume equivalent to the gas we currently produce will be utilized."

FPSO gets contract offshore Angola

Oceaneering International, Inc.'s UK subsidiary, Oceaneering International Services Limited, was awarded a seven-year contract for FPSO Ocean Producer to work in the Canuku Area of Block 3 offshore Angola.

Sonangol Pesquisa E Producao S.A.R.L. (Sonangol P&P) has already begun a phased fast-track development of the Canuku area. First oil is expected in the third quarter of this year, less than six months after this project received development approval. Angola Drilling Company (ADC) has the service contract with Sonangol P&P to develop and produce the Canuku Area.

Initial plans are to drill one water injection and three production wells. ADC is responsible for project management, reservoir evaluation, drilling and completion services and has contracted Oceaneering to provide the FPSO, umbilicals, specialty subsea hardware, and to manage the subsea tiebacks to the FPSO.

The Ocean Producer left the Kiabo Field in Block 4, Angola in mid-May and is in Cape Town where it will undergo approximately $14 million in repair, life extension, and modifications required for the new contract. Modifications include an upgraded mooring system, addition of water injection equipment, and preparation for the future addition of gas injection equipment. In fulfilling the new seven-year contract, the Ocean Producer is expected to contribute net income equivalent to $0.12 to $0.15 earnings per share annually, beginning in the fourth quarter of this year.

Hunt caps a dry run season off Ghana

Hunt Oil's West Cape Three Points 3X (WCTP) well in CTP block was plugged and abandoned dry in May. It was the third dry hole in a row to be drilled off Ghana this year. The depressing results of WCTP3X follow Nuevo Energy's deepwater hole Nak-1, which was drilled 1,000 ft off target. The well encountered only water wet sands and was plugged and abandoned. Nak-1 was a $12.5 million probe, the first on the Accra Keta permit. It drilled to 10,000 ft, from a seabed that's 320 meters below a body of water.

Earlier, in February, Santa Fe's Dolphin-1, drilled a well in 100 meters water depth in the Keta lease, that had to be plugged and abandoned as a dry hole. Hunt is considering relinquishing the Cape Three Points (CTP) block as all three wells drilled on the lease have been dry. But the company's work program for the adjacent South Cape Three Points (SCTP) block indicates a proposal to drill a well on that lease before the end of the third quarter.

Activity surging in Madagascar

Things appear to be on the upswing in Madagascar after Houston-based Vanco Energy signed a production sharing contract covering the Majunga Offshore Profond Block in the little explored region of the Majunga Basin off Madagascar's northwestern coast adjoining the Mozambique Channel.

Meanwhile, Hunt Oil has also moved in to do a little exploration work. Hunt is awaiting environmental approval from authorities prior to starting a 41-hole, core-drilling program in the Bemolanga (15) and Tsimiroro (25 holes) onshore blocks. Work was scheduled to begin last month.

Meanwhile, Vanco is going ahead with a 1,800-km 2D seismic reconnaissance survey on the Majunga Offshore Profond block, which covers 14,865 sq km (3.67 million acres) in primary interest water depths of 1,000 meters to 3,000 meters. According to the agreement terms, the survey calls for data processing and studies in the first two-year phase and 2D seismic acquisition in the second two-year phase.

CMS hits gas, condensate off Equatorial Guinea

CMS Oil and Gas, CMS Energy Corporation's oil and gas exploration and production unit, announced a significant natural gas and condensate discovery with its exploratory well, Estrella-1, off the Republic of Equatorial Guinea. The Estrella-1 well was drilled to a depth of 10,324 ft in about 200 ft water depth 22 miles northwest of Bioko Island. The well flow tested at a combined stabilized rate of 6,780 bbl of condensate and 47.3 MMcf/d of gas from two intervals between 6,950 ft and 7,200 ft. Interested parties are currently determining if further drilling is required to evaluate the size of the Estrella accumulation.

At present, the Alba Field is producing more than 14,000 b/d of condensate and about 2,300 b/d of natural gas liquids. Operator CMS Oil and Gas Ltd. holds 52.38% in the field. Participants include Samedan of North Africa, Inc. (33.75%), an indirect wholly-owned subsidiary of Noble Affiliates; Globex International, an indirect wholly-owned subsidiary of Globex Energy (10.87%); and the government of Equatorial Guinea (3%).

Africa E&P Briefs

ExxonMobil Angola has made its 10th and 11th deepwater oil discoveries on Angola block 15.
Chevron and Perencorep are to begin further development of DRC oil fields.
Noble Affiliates has announced the discovery of a new natural gas field off Equatorial Guinea.
Australia's Fusion Oil will explore Cameroon's Campo Basin and announced a drilling program off Mauritania.
ABB won a US$180 million subsea contract for work off the Niger-ian coast
Canadian Natural Resources has consolidated Côte d'Ivoire interests and announced the discovery of oil in deepwater off Côte d'Ivoire.
Noble Affiliates has announced initial operation of Atlantic methanol production project in Equatorial Guinea.
The Songo Songo gas project in Tanzania has been delayed while negotiations with the World Bank are completed.
Nigeria's Vice President has commissioned the Lagos gas project.