Exploration Drilling

Offshore Congo, Total and Oryx are drilling the Ndouma-1 well, Block Haute Mer B. The Ndouma prospect is a thin-skinned carbonate raft structure (Middle Albian Sendji, Pinda equivalent) over Loeme salt located on the margin of the NW-SE trending Likouala / Loussima Horst. The well lies 15 km NW of the N’Kossa Field (disc. 1984, on-stream 1996), in a similar setting. The N’Kossa carbonate raft has a c. 260 m gas / condensate column and 142 m column of 38-41° API oil and STOIIP of 900 mmbbl oil and condensate, with a GOC at 3,283 m and OWC at 3,425 m. Reservoir quality, with the development of porous dolomite and sandstone facies over the prospect, is considered the main technical risk. The oil is sourced from underlying Pre-salt Barremian lacustrine shales and secondary Aptian marine shales via windows in the tectonised Loeme salt layer.

Offshore Cameroon, New Age and partners have started a two well appraisal drilling campaign on the IM field with IM-6. The principle goal of this long awaited well is to appraise the southward extension of the Intra Isongo Sandstone Horizon 410, a gas condensate bearing reservoir in well IM-5ZR. As currently mapped, Horizon 410 has a potential 200 to 280m vertical closure.

In Egypt, Dana reported Raya-1X, El Qa’a Plain, reached total depth on 30th June and no hydrocarbons were encountered. It has been plugged and abandoned.

Eni continue their run of success in West Meleiha, with SWM B1-X reporting light oil. It has been opened to production and has delivered 5,130 bopd of light oil with low associated gas.

Also in Egypt, Transglobe reported a dry well at NW Sitra 9, Northwest Sitra. It was drilled to a total depth of around 1,813m. The rig is now moving to South Ghazalat #1 for the first of two planned exploration wells. Another rig is rigged up on NWS 12, and is due to start drilling imminently.

In Niger, Savannah continue their successful drilling campaign, mobilising from the oil discovery at Kunama to their fourth wildcat, Eridal. This month Airbus has provided up to the minute satellite imagery for this mobilisation. Kunama-1, on R3 of the R3/R4 PSC Area, encountered 9m net of oil bearing reservoir sandstones. It is being suspended for future re-entry. Eridal-1 has spud and will target similar age clastics with a PTD of 2592m.

In Nigeria, Guarantee Petroleum announced the rig for Ororo-2, OML 95, has commenced critical equipment re-certification which has delayed its mobilisation to the location.

Appraisal and Development

Major news from Angola, Total and partners announce production start up at Kaomba Norte in the ultra-deep Block 32. Target production is 115 mbopd, but a second FPSO at Kaombo Sul will aim to double that in the next two years.

In Egypt SDX reported that the SD-3X well, South Disouq, encountered 9.3m of net conventional natural gas pay. It will be completed as a producer in the Abu Madi horizon and will be tested after the rig has been moved away. A production test has taken place at SD-4X, which produced 23.38 mmscf of conventional natural gas at rates of 5.44, 8.6 and 10.5 mmscfd. Pico announced their SRM-3 appraisal well, South Ramadan. Rockhopper updated that Al Jahraa-6, Al Jahraa field, is due to spud in the first week of July.

Eni announced that production has started from the Nedoko Southwest-3 gas field. It is expected to produce around 180 mmscfd and 1,500 barrels of condensate per day.

Also in Egypt, Transglobe Energy announced their M-North well is due to commence drilling this month, West Bakr. Another well will be drilled in the area, then the rig will move to NW Gharib to drill NWG 38A-7. Corporate production in June averaged 14.9 mboepd.

BW Offshore in Gabon and Panoro announced their FPSO, BW Adolo, is on the way to the Tortue field, on the Dussafu block. It is due to arrive in August and first oil is planned to be delivered this year.

In Nigeria, Opuama-9 was completed by Eland and put on production on 21st June. An indicative interim production result from the MER test is a combined total of 7,000 bopd. Opuama-10 has reached a total measured depth of around 3,090m. Six oil bearing reservoirs were encountered with total net pay of 93.5m.

Deals and Transactions

In Angola, Soco International continue their divestment process from West Africa. The firm entered into a sale and purchase agreement with Quill Trading and WMLC Resources to sell its 85% in Soco Cabinda for up to $5 million. SOCO Cabinda holds 22% in the Cabinda North Block PSC. Soco recently sold its interests in Congo (ROC) to Coastal Energy.

In Egypt the Ministry of Petroleum have award three new contracts. 1) Ganoub El Wadi Petroleum and GHP will have to invest a minimum of $6 million to drill four new wells in West Jabal el-Zeit, south Gulf of Suez concession area. 2) EGPC and the Ras Fanar concession area, Gulf of Suez. 3) EGPC and Perenco, and the Offshore North Sinai concession area. EGPC has also signed a deal with Apache Egypt to drill seven oil wells in the East Bahariya concession. $9 million will be invested and the agreement included a $30 million signing bonus.

Shell have made a late move into deepwater offshore Mauritania, taking Blocks C10 (around Chinguetti and to the south) and C19. Interestingly the supermajor is thought to have been interested in C19 when Chariot had the block with Cairn Energy. Indeed Chariot appear to have won a back-in right for between 10 to 20% in C19 with Shell. Shell has also signed an MOU with the Government that includes jointly evaluating further offshore exploration opportunities. Shell is also understood to be negotiating a re-entry into deepwater Angola.

BP is understood to be considering an entry into deepwater Keta Basin in Ghana.

Onshore Morocco, Schlumberger will convert its indirect 27.5% interest in the Eastern Morocco Portfolio with Sound Energy into participating interest.

The government of Sudan has signed an agreement with RosGeo to look for natural gas in the Red Sea.

Onshore coastal Tanzania, Ndovu / Aminex finally announce a farm out to Zubair / ARA Petroleum (APT) for 50% interest in the Ruvuma PSC. ARA will also become operator and the minimum work programme includes drilling, completing and testing Chukumbi-1 (formally Ntorya-3) and acquiring, processing and interpreting a minimum of 200 sq km of 3D.

In Tunisia, Panoro is set to acquire the assets of DNO Tunisia AS from DNO ASA. DNO Tunisia has 3 offshore assets: Ras El Besh Concession, Hammamet Offshore Permit and Sfax Offshore Exploration Permit.

New Ventures

In Tunisia, an independent evaluation of the Dougga gas condensate discovery has been completed by ERC Equipoise. ADX are seeking partners to drill and test the Dougga Sud appraisal well in quarter 1 of 2019.

Sonangol have extended the deadline for Blocks 20/11 and 21/09 to 30 September 2018. The data room is available in Luanda until the end of August.

Licensing Rounds

Ghana has announced a bid round later in 2018, with around three of nine blocks in the offshore Tano region up for competitive tender. It is understood that the other defined blocks have been subject to direct negotiation, with CNOOC and Chevron amongst those interested.

The Republic of South Africa have announced that the system of licensing acreage will change soon, from direct application and negotiation, to competitive licensing.

In November 2018, The Africa Oil Week in Cape Town will host a new Prospect Forum. The Forum will host presentations from 10 Ministry bodies and NOCs, as well as 15 prospect pitches from independent oil companies. The Forum is co-organised with PVE Consulting Ltd.

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