Latin America
BP has begun gas production from the Mango field offshore Trinidad. The field is expected to deliver 150 MMcf/d. The gas supplies Atlantic LNG’s liquefaction plant. BP Trinidad and Tobago holds a 100% interest in the field. The field has been developed using a single unmanned platform with a capacity to produce from nine wells. Gas is exported through a new subsea four-mile 26-in. (66-cm)-diameter pipeline tied into the current Cannonball pipeline and then to the Cassia B gas processing hub.
El Paso Exploration & Production Co. has drilled two successful exploration wells in the Camamu basin offshore Brazil. The Cacau-1 was drilled to TD of 2,889 m (9,478 ft) and was confirmed as an oil discovery based on a 7-m (23-ft) core. The Acai well went to TD of 2,915 m (9,564 ft) and tested gas and condensate from the top 70 m (230 ft) of a potential 136-m (446-ft) hydrocarbon-bearing zone. These wells extend the south limits of Pinauna field and boost El Paso’s reserves estimate of Pinauna to 90 MMboe.
StatoilHydro has successfully bid on two blocks offshore Brazil in the National Agency of Petroleum’s ninth bidding round. The blocks, CM529 and CM530, are in water depths of around 100 m (328 ft). Anadarko will be the operator of the licenses with a 50% stake, with StatoilHydro holding the remaining 50%. The blocks lie adjacent to the heavy-oil Peregrino field in the Campos basin where the company already holds a 50% interest. Peregrino is expected to come on stream in 2010.
Petroleo Brasileiro SA has brought the FPSOCidade de Vitoria onstream with the second production module at Golfinho field at 1,386 m (4,547 ft) water depth in Espirito Santo. Initial production will be 20,000 b/d of light oil. Petrobras plans to connect two more producing wells by year-end to bring output to 70,000 b/d. The FPSO can process 100,000 b/d of oil.
Africa
Total has a discovery in 2,120 m (6,955 ft) of water at Mer Tres Profonde Sud 185 km (115 mi) offshore Republic of Congo. Drilled to 4,110 m (13,484 ft) TD, the Persee Norde Est Marine-1 well found six Miocene oil reservoirs. This is the fifth oil find in the permit and field development studies for the cluster are expected soon. The MTPS block is 5,000 sq km (1,931 sq mi) with water depths from 1,300 to 3,000 m (4,265 to 9,842 ft). Total E&P Congo is the operator with a 40% interest, alongside ENI Congo (30%) and Esso Exploration and Production Congo (Mer Tres Profonde Sud) Ltd. (30%).
Providence has entered into a new farm-in agreement for the AJE field, offshore Nigeria. This new partnership comprises of Yinka Folawiyo Petroleum Co., Chevron Nigeria, Vitol Exploration Nigeria, Energy Equity Resources Aje, and P.R. Oil and Gas Nigeria. An agreement also has been reached to begin drilling the AJE 4 well to test for hydrocarbon-bearing reservoir intervals and potential reservoir zones. Drilling is scheduled for 1Q 2008.
Noble Energy has found hydrocarbons in the Yolanda prospect at its I-3 block offshore Equatorial Guinea. The well tested at 371 b/d of condensate and 36 MMcf/d of natural gas. Yolanda is in 2,940 ft (896 m) of water, approximately 30 mi (48 km) east of Bioko Island and 6 mi (10 km) south of the Benita discovery, which is also on block I. The well was drilled to 9,482 ft (2,890 m) TD. TheSonga Saturn drillship will remain on block I to test an additional Miocene exploration prospect that is on trend with the Belinda discovery in block O.
Middle East
Qatargas Operating Co. has completed the required offshore drilling for Qatargas 2. All 30 wells on the three wellhead platforms have been completed 27 rig-months ahead of schedule, according to the company. Development drilling began in February 2004. The three platforms will supply gas to the two 7.8 million-tons-per-year LNG processing trains under construction at Ras Laffan Industrial City. The shareholders in Qatargas 2 are Qatar Petroleum, ExxonMobil Qatargas (II) Ltd. and Total E&P Qatargas 2 Holdings Ltd.
Brunei Shell Petroleum (BSP) has discovered gas in the Bubut structure, 7 km (4.3 mi) from the Brunei shoreline and 15 km (9.3 mi) from the Brunei LNG plant. The exploration well was drilled by theDeep Driller 2 rig in deep, high-pressure sand reservoirs. BSP is also re-evaluating the nearby Danau structure, which was drilled in the 1970s. Additional appraisal work will be conducted in both fields to define the full potential of the area. A development team is preparing an integrated field development proposal for early production directly into the Brunei LNG plant.
Reliance Exploration and Production DMCC has signed a production sharing agreement with Oman for offshore block 41. Block 41 covers more than 20,000 sq km (7,722 sq mi) in waters to 3,000 m (9,842 ft) deep, and is adjacent to a 2005 award to Reliance. Reliance says it intends to integrate the two blocks into one operation.
BP has discovered more gas and condensate in its Shah Deniz field, 70-km (43.5 mi) southeast of Baku. The SDX04 appraisal/exploration well found a new high-pressure reservoir in the southwestern part of Shah Deniz, below the currently producing reservoir.
BP also says the drilling depth, beyond 7,300 m (23,950 ft), was a new record for a Caspian Sea well. The well encountered gas-condensate in the currently producing horizons, extending the field’s known limit to the south. Gas flowed at 35 MMcf/d on test, the maximum capacity of the onboard equipment. BP believes there is sufficient gas for a second-stage development. This could be larger in scope than the first-phase project, potentially delivering 8.6 bcm per year (303.7 bcf per year).
Asia
Reliance Industries has discovered gas in KG-OSN-2001/1 (KG-III-5) in the Krishna basin offshore India. The well (KGIII5-P1) is the second gas discovery in the Miocene clastics reservoir. The well was drilled in 151 m (495 ft) water depth with a target depth of 3,500 m (11,483 ft). It encountered a clastic reservoir with gross hydrocarbon column of approximately 32 m (105 ft) in Miocene section and 4 m (13 ft) in Pliocene section. The two pay zones were established through Reservoir Characterization Imager, wire-line based technology. Reliance holds 100% in the block. It is evaluating the commerciality of this discovery.
Salamander Energy has started drilling the Dong Mun-3 (DM-3) appraisal well in block L27/43, Khorat basin, northeast Thailand. The DM-3 well aims to appraise the Dong Mun gas discovery made by Esso in 1990. It tested gas from the Permian Pha Nok Khao carbonate reservoir. Dong Mun is estimated to contain 150 bcf of recoverable gas reserves and 45 km (29 mi) from the gas-fired Nam Phong power plant.
The well is being drilled withEnsign-16 rig and is programmed to reach a depth of 2,700 m (8,858 ft) subsea. Salamander holds a 27.2% interest in block L27/43 and the estimated net cost of drilling is $2.7 million prior to testing.
CNOOC has made 10 new oil and gas discoveries offshore China, nine of which were independent discoveries.
The six independent discoveries are: Bozhong 28-2 East, Bozhong 26-3, Jinzhou 25-1, Weizhou 11-7, Weizhou 11-8, and Weizhou 6-1 South. While drilling into the second half of this year, CNOOC made three more independent discoveries: Panyu 10-2, Panyu 11-5, and Weizhou11-2. Panyu 10-2-1 and Weizhou 11-2-1 encountered oil pay zones of 57 m (187 ft) and 64 m (209 ft), respectively, while the Panyu 11-5-1 well hit 13-m (42-ft) thick oil-bearing formations.
CNOOC also has appraised seven oil and gas structures so far this year: Bozhong 28-2 East, Bozhong 26-3, Jinxian 1-1, Jinzhou 25-1, Weizhou 11-7, Weizhou11-8, and Weizhou 6-8. Kenli 20-1, under PSC cooperation, also has been evaluated successfully.
The evaluation results indicate that Jinzhou 25-1, Bozhong 26-3, and Weizhou 11-7 are likely to be built into mid to large oil and gas fields in the future.
Australia
During the next nine months, ROC will conduct exploration and appraisal drilling programs in Australia, Angola, China, and Mauritania.
Offshore Northern Perth basin: The ROC-operated WA-286-P joint venture has contracted thePremium Wilcraft jackup rig to drill two exploration/appraisal wells in the Northern Perth basin, beginning January 2008. One well will appraise the 2007 Frankland gas discovery; the other well will target the area around the 2007 Dunsborough oil discovery by drilling the nearby Lilac prospect.
Beibu Gulf, offshore China: The block 22/12 joint venture has contracted thePremium Murmanskaya jackup rig to drill four exploration/appraisal wells starting in mid-December 2007. The first two wells will test the Wei 6-12-West and Wei 6-12-East structural-stratigraphic prospects from the 2006 Wei 6-12-South oil discovery.
Offshore Mauritania: A 2008 deepwater drilling program is expected to begin in January 2008 and end mid-2008. The first well, Khop-1, is an exploration well that will test a structure in block C6. Subsequent wells include an exploration/appraisal well on the Banda gas field in PSC B and several infill development wells in the Chinguetti oil field.
BHP Billiton has begun production on the Stybarrow field in license block WA-32-L in the Exmouth sub-basin. The $760-million field development involves a nine-well subsea development and an FPSO facility, theStybarrow Venture, with capacity of approximately 80,000 b/d of oil. The Stybarrow Venture, a disconnectable, double-hulled vessel, is being used to produce oil from two fields, Stybarrow and Eskdale. Stybarrow and Eskdale, have estimated combined recoverable oil reserves of 60-90 MMbbl, and an economic life of 10 years.
Entek Energy has begun testing of Warragon-1 (ATP 269P). The well is 18 km (11 mi) northeast of Eromanga in southwest Queensland. The well was drilled in July 2007, but flow testing was unsuccessful due to technical problems. The well was cased awaiting further testing. It is being re-entered using a workover rig, which will run tubing conveyed perforating equipment to enable flow testing and assessment of production potential.
Murphy Australia Oil has acquired a 40% interest in the AC/P36 exploration permit in the Browse basin offshore northwestern Australia from Finder Exploration. Murphy will become the operator of the permit that covers approximately 1 million acres. The acquisition is pending approval from the Australian government.
Petrobras has concluded its analysis of the second Tupi well (1-RJS-646) in block BM-S-11, Santos basin. The company estimates recoverable light oil and natural gas for Tupi between 5 to 8 Bbbl with an oil gravity of 28º API. The company is the operator in the area and holds a 65% working interest, with the remaining interests held by BG Group (25%) and Petrogal - Galp Energia (10%). Regional analysis of the pre-salt areas of the South and Southeast basins in Brazil shows that the reservoir is found under an extensive layer of salt, which extends from the state of Espirito Santo to the state of Santa Catarina. The formation is more than 800 km (407 mi) long and up to 200 km (124 mi) wide, and is located in ultra deepwaters of between 1,500 and 3,000 m (4,921 and 9,842 ft) and sub-seafloor between 3,000 and 4,000 m (9,842 and 13,123 ft).
