DISCOVERIES/DEVELOPMENTS

Eni confirms Agogo find offshore Angola

Eni has completed drilling on Agogo-2, the first appraisal well of the Agogo discovery in Block 15/06, offshore Angola. The well results confirm 650 MMboe, in place, at Agogo field and indicate further upside in its northern sector that will be assessed with new appraisal wells. Agogo-2 is 3 km northwest of the Agogo-1 discovery well, approximately 180 km from the coast and 23 km from the N’Goma West Hub FPSO. The well is in a water depth of 1,700 m and reached a TD of 3,949 m. Agogo-2 encountered 58 m, net, of light oil, in sandstones of Miocene and Oligocene age, with excellent petrophysical characteristics. The result confirms the extension of the Agogo reservoir to the north of the discovery well and below the salt diapirs. The highly deviated well reached the sequences below the salt diapirs and proved the existence of reservoir and oil charge in this sector of the Agogo megastructure. Data indicates a production capacity in excess of 15,000 bopd. Eni plans to start first production from Agogo before the end of 2019 with a subsea tie back to the N’Goma FPSO.

BHP adds three wells to successful Trinidad deepwater campaign

BHP announced the completion of phase three of its deepwater drilling campaign offshore Trinidad, discovering hydrocarbons in three new exploration wells in Q2 2019. In its operational review for the company’s fiscal year ended June 30, BHP states “This campaign included three wells – Bélé-1, Tuk-1 and Hi-Hat-1 – which have all been successfully drilled and encountered gas. These three discoveries in our northern licenses have established additional volumes around the Bongos discovery, and evaluations are ongoing. Technical work is underway to assess further exploration targets and commercial options for the northern gas play.” These discoveries mark seven successful exploration wells out of nine drilled offshore Trinidad over the course of the fiscal year. BHP is operator of the new Pliocene-era gas wells, owning a 70% stake in each.

Equinor finds more oil in the Oseberg area

Equinor has made a profitable oil discovery related to Oseberg Vestflanken. The well was drilled by the Askepott rig, and the discovery will soon be put onstream via the new, unmanned and remote-operated H platform. Included in the Oseberg Vestflanken phase 2 project, the exploration extension well 30/6-H-9-T4 proved a 112-m oil column in a segment that has not been tested before. Oil was proven in the Statfjord formation in southern parts of the Alpha structure on Oseberg. Reservoir characteristics are excellent, with high oil saturation. Recoverable resources are estimated at 22 MMbbl of oil. The partners will consider water injection to further increase recoverable volumes. The unmanned and remotely operated wellhead platform, Oseberg H, came onstream less than a year ago. 

Total launches Phase 3 of Dunga field, Kazakhstan

Total has approved Phase 3 development of the onshore Dunga field in the Mangystau Region of western Kazakhstan. Phase 3 will consist of adding wells to the existing infrastructure and upgrading the processing plant to increase its capacity 10%, to 20,000 bopd by 2022. This will add production of 70 MMbbl of reserves. The development has been made possible by approval of the government of the Republic of Kazakhstan of a 15-year extension of the Production Sharing Agreement for the field, originally signed in 1994 and due to expire in 2024. The project requires a $300-million investment and will create 400 more direct jobs in the region at the peak of construction activity.

Eni announces potential gas discovery offshore Vietnam

Eni announced that an exploration well in Block 114, Song Hong basin, offshore Vietnam, has proven the presence of gas and condensate in the Ken Bau prospect. The well result indicates a significant potential hydrocarbon accumulation. The Ken Bau 1X well is in 95 m of water, and reached a TD of 3,606 m, encountering about 100 m of gas and condensate reservoir-grade sandstone interbedded with Miocene age shale. Eni is planning a drilling campaign early next year to fully assess the discovery. The well results represent a breakthrough for evaluating the in the Song Hong basin.

PRODUCTION

First LNG cargo shipped from Shell’s Prelude FLNG

Shell announced that the first shipment of LNG has sailed from its Prelude FLNG facility, 475 km northeast of Broome in Western Australia. This shipment was delivered by the Valencia Knutsen to customers in Asia. Zoe Yujnovich, Chairman Shell Australia said: “Prelude FLNG combines human endeavor and ingenuity from across the globe and here in Australia. We are proud to work with our local communities, suppliers and partners to ensure its safe, reliable operations into the future.” TechnipFMC was involved in project management, engineering, procurement, installation, commissioning and start-up for Prelude. Nello Uccelletti, president at TechnipFMC, commented, “Prelude FLNG is the largest floating facility ever built, and we can all be proud of this major milestone and of the rewarding relationship we have built with Shell and Samsung Heavy Industries.”

BUSINESS

TechnipFMC scores $7.6-billion contract for Arctic LNG project, Siberia

TechnipFMC has been awarded a $7.6-billion engineering, procurement and construction (EPC) contract by Novatek and its partners for the Arctic LNG 2 project in the Gydan peninsula of West Siberia, Russia. This development will consist of three LNG trains, each with a capacity of 6.6 Mtpa, which will be installed on three gravity-based structure platforms. TechnipFMC will execute this project under a lump sum and reimbursable basis. It will cover the EPC of the three LNG trains and associated topsides, which will be manufactured on a modular basis in Asian and Russian yards. Nello Uccelletti, TechnipFMC president, commented, “We are extremely honored to be entrusted with this new contract by Novatek. We are leveraging our successful track record on the Yamal LNG project and the modular fabrication scheme.” 

Total divests UK assets to Petrogas for $635 million

Total has signed an agreement to divest several UK non-core assets to Petrogas NEO, the exploration and production arm of the Oman-based conglomerate MB Holding. Petrogas has partnered with Norway-based private equity investor HitecVision. Formerly owned by Maersk Oil, these assets are in the eastern North Sea and include Dumbarton, Balloch, Lochranza, Drumtochty, Flyndre, Affleck, Cawdor, GoldenEagle, Scott and Telford fields. The overall consideration for this deal amounts to $635 million. The transaction remains subject to approval from the relevant authorities and is expected to close in December 2019. “This transaction is consistent with our portfolio management strategy, aiming at lowering our break-even point by optimizing capital allocation and divesting high technical cost assets,” commented Arnaud Breuillac, Total E&P president.

Callon acquires Carrizo in $3.2-billion stock transaction

Callon Petroleum and Carrizo Oil & Gas announced that their boards of directors have approved an agreement under which Callon acquires Carrizo in an all-stock transaction valued at $3.2 billion. The complementary combination will create a leading oil and gas company with scaled development operations across a portfolio of core oil-weighted assets in the Permian basin and Eagle Ford shale. Carrizo shareholders will receive a fixed exchange ratio of 2.05 Callon shares for each share of Carrizo common stock they own. Following the close of the transaction, Callon shareholders will own approximately 54% of the combined company, and Carrizo shareholders will own approximately 46%. Joe Gatto, of Callon said, “we are excited about this transaction, and creating a differentiated company by integrating core assets. Together with Carrizo, we will accelerate free cash flow and deleveraging goals through a model of large-scale development across the portfolio.

Aramco awards $18 billion in deals to boost capacity

Saudi Aramco awarded $18 billion in contracts to boost output capacity at two offshore oil fields, even as the kingdom and its OPEC partners restrict production. The development will add a combined 550,000 bopd of capacity at its Marjan and Berri fields. It will raise capacity for natural gas output at the deposits by 2.5 Bcfd. Aramco Chief Executive Officer Amin Nasser said, “these two programs will significantly enhance Aramco’s oil production and gas processing capabilities.”   Of the 34 contracts, half of them are going to Saudi firms. McDermott, Saipem of Italy, Subsea 7, Tecnicas Reunidas of Spain and China Petroleum & Chemical were among the other companies that won contracts. India’s Larsen & Toubro and Hyundai Engineering & Construction of South Korea also secured deals. The statement, itself, didn’t identify the 16 companies that were awarded contracts, nor did it specify when the Marjan or Berri projects would be completed.

About the Authors

Craig Fleming

World Oil

Craig Fleming Craig.Fleming@WorldOil.com