GLOBAL E&P

The award is for a period of six years, with a work program that could result in expenditure of up to $17.5 million being invested in 2D and 3D seismic and the drilling of one well.

“The new block not only adds to our established position in the area but also is on trend with our other deep water blocks in the Otway and Sorell Basins,” John Ellice-Flint, Santos’ managing director, says.

“Acquiring this block - which is largely in water depths of less than 200 m - enables us to further evaluate the Cretaceous Shipwreck Group reservoirs along trend from existing fields and opportunities.”

Santos operates the T/40 P license with 100% interest.

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TGS-Nopec Geophysical Co. and partners initiated two new seismic programs offshore Russia in August. TGS and partner Dalmorneftegeophysica (DMNG) will acquire 8,000 km of multi-client 2D seismic data in the Sea of Okhotsk near Sakhalin Island. The new program will infill the companies’ pre-existing seismic grid in the region and extend the program into the Sakhalin 6 area for the first time.

In the Barents Sea, TGS and partner New Field Ventures Ltd. will acquire 7,000 km of multi-client 2D seismic data.

According to Kjell Trommestad, vice president-Europe/Russia for TGS, this is the company’s first multi-client survey in the Barents Sea.

“Many geoscientists believe that the Barents Sea is one of the most prospective petroleum provinces in the world,” Trommestad says.

Both the Sea of Okhotsk and Barents Sea programs are highly pre-funded by the industry. Final data on both surveys is expected to be available by year-end.

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WesternGeco also recently had a “first” in Southeast Asia with the Q-Marine for Sabah Shell Petroleum Co. Ltd. over the St. Joseph field offshore Malaysia.

The 100-sq-km survey, which began in June, is the first Q-Marine project in Southeast Asia.

The shallow, structurally complex St. Joseph reservoir produces oil and gas in an area that poses many surveying and imaging challenges, the company says. Strong currents and obstructions and infrastructure, combined with difficult near-surface conditions, have hindered previous conventional survey attempts to image faults and reservoir sands.

The Q-Technology vessel,Geco Topaz, is conducting the survey towing six 3000-m cables with a separation of 30 m, using WesternGeco’s proprietary calibrated Q-Marine source.

“The combination of imaging requirements and logistical challenges requires a trace density of 6.25 m and cable separation of 30 m, resulting in one of the highest density surveys in the region,” Carel Hooykaas, WesternGeco marine manager, says.

Africa

Sociedade Nacional de Combustíveis de Angola (Sonangol) and BP announced the Juno-1 oil discovery in ultra-deepwater block 31, offshore Angola. Juno-1 is the seventh successful discovery well BP has drilled in block 31 following Plutão, Saturno, Marte, Venus, Palas, and Ceres. The well is 10 km northwest of the recent Palas discovery and 22 km south of the Ceres discovery announced earlier this year.

Juno-1 was drilled by GlobalSantaFe’sJack Ryan drillship in water depth of 1,601 m, 165 km off the Angolan coast.

BP is studying development concepts for the discoveries in the southeastern region of the block.

BP operates the block with 26.67% interest. Partners include Esso Exploration and Production Angola (block 31) Ltd. with 25% interest, Sonangol E.P. with 20%, Statoil Angola AS with 13.33%, Marathon Petroleum Angola (block 31) Ltd. with 10%, and TEPA (block 31) Ltd. (Total group) with the remaining 5%.

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Total’s Nigerian operating subsidiary Elf Petroleum Nigeria Ltd. signed a production sharing contract with the Nigerian National Petroleum Corp. for oil prospecting license (OPL) 223 offshore southeast Nigeria.

OPL 223 lies in water depths between 200 and 1,000 m. The license lies just east of OPL 222, where operator EPNL has made significant commercial discoveries in the Ukot and Usan fields. Both fields are under consideration for development.

NNPC is the concession holder on OPL 223. EPNL operates the permit with 90% interest. NNPC subsidiary Nigerian Petroleum Development Co. has a 10% participating interest.

A seismic survey will kick off exploration activities soon.

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Dana Petroleum (E&P) Ltd. signed a petroleum agreement for exploration and exploitation of hydrocarbons in the North West Safi area offshore Morocco. The exploration phase of the eight-year agreement covers a 6,540-sq-km area.

The decision to enter into the agreement followed the interpretation of 1,000 km of 2D seismic data acquired in 2004 under the terms of a reconnaissance license. This data, along with other geological studies, confirmed the hydrocarbon potential of the area, Dana says. Preparations are under way to acquire a large 3D seismic survey over the area with a view to beginning exploration drilling in 2007.

Dana acquired its rights under the reconnaissance license in May 2005 through the previously announced transaction with Global Resource Holdings LLP. Norsk Hydro Morocco AS operates the license with 48.75%. Partners include Dana Petroleum (E&P) Ltd. with 26.25% and Moroccan state organization L’Office National de Recherché et d’Exploitations Petrolieres (Onarep) with 25%.

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Independent E&P company, Sterling Energy Plc., signed a farm-out deal with Exxon Mobil Corp. for the Ambilobe and Ampasindava licenses offshore Madagascar.

Sterling secured 100% interest and operatorship of the two licenses, which cover 33,947 sq km in the Ambilobe and the Majunga basins. The exploration license term for each license is eight years. A 25-year production license will be granted in the event of a commercial discovery.

Under the terms of the deal, ExxonMobil will pay for a significant exploration work program in return for 70% interest in the licenses. The agreement is subject to certain milestones being achieved with the initial ExxonMobil commitment for the first two exploration phases under the license covering technical studies and a 2D seismic survey.

Assuming a positive outcome of this initial work, which could take up to three years, ExxonMobil will finance a 3D seismic survey and drill up to two wells per license. The transaction remains subject to approval of the government of Madagascar.

The Ambilobe and Ampasindava licenses cover a large under-explored area offshore Madagascar in which all of the geological elements for a working petroleum system are believed to be present.

Madagascar has seen an increase in exploration activity. Last year, ExxonMobil and Norsk Hydro farmed in to Vanco’s exploration license in the Majunga basin, adjacent to Sterling’s Ampasindava license.

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ExxonMobil Corp. started production on Kizomba B offshore Angola five months ahead of schedule. The company estimates that the field contains 1 Bbbl of recoverable oil, and hopes to produce 250,000 b/d.

Kizomba B is the third field to begin production in the block. The Kizomba B project is virtually identical to the Kizomba A development, including a tension leg platform (TLP) tied back to an FPSO.

Both unit development costs for Kizomba A and B have record lows for projects of this size and complexity, with the second field costing $3.5 billion to bring into production.

Able to store up to 2.2 million barrels, the Kizomba B FPSO lies 322 km off Angola and produces the Kissanje and Dikanza discoveries in 1,010 m of water. Exxon Mobil operates the block with 40% interest. Partners include Statoil with 13.3%, BP with 26.67%, and ENI with 20%.

Mediterranean

TGS-Nopec Geophysical Co. has completed an 8,025-km multi-client 2D seismic, gravity, and magnetic data survey offshore Egypt. The survey was acquired under a license agreement among TGS, the Egyptian Natural Gas Holding Co., and the Egyptian Petroleum Corp.

TGS carried out the industry-supported survey on behalf of the Ministry of Petroleum. This unique program is the first regional multi-client survey to be acquired in the region over the last several years, TGS says.

Data from the program provides high resolution deep imaging (sub-salt) of the Nile delta and surrounding basins. Final processed data (pre-stack time migration) and an interpretation of the data set are being marketed by TGS to oil companies ahead of a competitive license round to be conducted in late 2005.

The new survey also ties to and forms part of the TGS Mega-Med project providing modern regional 2D data over the east Mediterranean region, the company says.

Europe

Central Europe’s OMV signed an agreement with the Ukraine oil and gas companies National Joint Stock Co. (NJSC) Naftogas of Ukraine and National Stock Co. (NSC) Chornomornaftogaz on joint activities in the Black Sea.

The area selected for future joint activities is the unexplored Skifska block, which lies in the area between the Ukrainian/Romanian border and the Crimean peninsula. The water depth of this area is 100-2,000 m. The consortium plans to bid for the block this year.

“E&P activities in the Ukrainian offshore area are the logical continuation of our efforts in offshore Romania and Bulgaria. We will build on our regional knowledge and technical expertise, and are delighted to partner with NJSC Naftogas and NSC Chornomornaftogaz, both of which have long-term local experience,” Helmut Langanger, OMV executive board member responsible for E&P, says.

Igor Franchuk, president of Chornomornaftogaz, says, “This bidding agreement is the result of long-term cooperation with OMV, started in 2002. Today, we can say that we start concrete work on the realization of joint projects within the Black Sea offshore.”•