Western Europe: Italy

WESTERN EUROPE

Italy

Exploration. Hardman Resources of Australia and JKX Oil and Gas of the UK agreed to drill the Colombo 1, a gas exploration well near Rome. Scheduled to spud last October, the well will test a seismically defined structure.

Seismic survey activity plummeted last year, accounting for only 145 line mi of 2-D work and 153 sq mi of 3-D data acquisition. Surveys in 1998 totaled 1,024 line mi and 377 sq mi, respectively.

Drilling/development. A set of six agreements have finally been signed with the Basilicata region government, outlining environmental commitments that will allow the continued development of Val d’Agri fields in the southern Apennines. The agreements cover environmental compensation, sustainable development, implementation and management of an environmental monitoring system, contribution toward a gas distribution network and creation of an Environmental Observatory. The contracts finalize the authorization to complete construction of an oil center that is planned to handle first oil in first-quarter 2001.

Val d’Agri fields include Monte Alpi, Monte Enoc, Tempa Rossa, Cerro Falcone and Costa Molina, and together, account for about one billion bbl of oil equivalent reserves. Production from the fields is projected to reach 165,000 bopd in 2002, and oil will be transported to a refinery at Taranto by a new pipeline that is to be completed next year.

Italian production averaged 100,346 bopd and 1.7 Bcfgd last year, down 10.8% and 8%, respectively, from 1998. Production was from 230 oil and 1,204 gas wells.

A total of 44 wells were drilled last year, including two oil, 27 gas and 15 dry holes. Eighteen of the wells were drilled offshore. This year, onshore drilling will be boosted significantly, as 52 wells are planned, many in response to the Val d’Agri development approval. With 22 offshore wells planned, total drilling in 2000 could hit 76 wells.