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Planned exploration activity update

27/04/2020

The following information is part of our ongoing 'at-a-glance' review of planned E&P global operational activity:

Total / PTTEP   l   Oman
Total and PTTEP signed an Exploration and Production Sharing Agreement (EPSA) for the onshore Block 12 with the Ministry of Oil and Gas of the Sultanate of Oman. Total is operator of the block with an 80 W.I. while PTTEP hold the remaining 20 percent participating interest. 

Under EPSA for Block 12, PTTEP MENA and Total will realize geological and geophysical studies, 3D seismic surveys and exploration wells during the initial 3-year exploration phase (2020 – 2022).

Wintershall Noordzee   l   Netherlands
Following the announcement of first gas from the Sillimanite field in the Dutch southern North Sea in February this year, the next project for Wintershall Noordzee will be the Rembrandt/Vermeer oilfield developments.

For Vermeer, the company plans an integrated wellhead, process, utility and living quarters platform over a subsea storage tank, offloading production to shuttle tankers will be built. Rembrandt will feature a normally unmanned wellhead platform with minimal facilities: in both cases a final investment decision should follow later this year.

In addition, the company is assessing development potential at the Greater Ravn Area in the Danish North Sea.

Oryx Petroleum   l   Iraq
Oryx are pursuing an active drilling program in 2020 in the Hawler license area that is expected to lead to increased production and will allow the company to further assess fields and reservoirs where they currently have contingent or prospective resources but no reserves. The company's six well 2020 program commenced with the drilling of a horizontal sidetrack of the previously drilled Banan-1 well in the eastern fault block of the Banan field and formation evaluation data was obtained from both the Tertiary and Cretaceous reservoirs. Data obtained in the Tertiary reservoir where Oryx currently have no reserves or contingent resources indicates the presence of a significant column of oil with similar density to that produced from the very successful Banan-3 and Banan-4 wells west of the Great Zab river. Data obtained from the Cretaceous reservoir reconfirmed the presence of an oil column in this reservoir but Oryx were unable to complete the well as an oil producer in this reservoir as planned. Further evaluation of these two reservoirs is planned in 2020 from new wells to be drilled from a more optimal location.

Equinor   l   Norway
Equinor and its partners in the Statfjord area plan to drill up to 100 new wells and extend production by more than 10 years. Previous plans to decommission Statfjord A in 2022 have been shelved to extract even more value from the field.

Extensive mapping of the subsurface has revealed that the remaining potential of the Statfjord area is considerable, with Spirit Energy and its partners agreeing on a new and ambitious business plan for the area.  

The new plan includes drilling up to 100 new wells towards 2030. These wells will help reach an ambition of maintaining the current production level from Statfjord beyond 2025. This will require considerable investment and upgrading of the three platforms at the field.

Australia   l   3D Oil / ConocoPhillips
March 2020: 3D Oil and ConocoPhillips executed a Farmout Agreement in relation to the offshore Tasmanian Permit T/49P. Under the terms of the Agreement ConocoPhillips Australia will be transferred a 75% interest in the permit and become operator. ConocoPhillips Australia will undertake the acquisition of a 3D seismic survey of not less than 1580 sq km within the Permit and in which 3D Oil will make no financial contribution. This activity is currently planned to be undertaken in the third quarter of 2020. Upon completion of the acquisition, processing and interpretation of the 3D seismic survey ConocoPhillips Australia may elect to drill an exploration well which will fulfill the current Year 6 work programme obligation.

Iraq   l   Oryx
In April 2020, Oryx provided the following update on planned operational activity in Iraq: 

  • Demir Dagh drilling: consists of one new horizontal well targeting the Cretaceous reservoir expected to be drilled in the second half of 2020. One previously planned well targeting the Cretaceous reservoir has been deferred.
  • Zey Gawra drilling: consists of a new well targeting the Tertiary reservoir. This new well has replaced the planned sidetrack of the previously drilled Zab-1 well. The drilling of the well is planned in the first half of 2020. The sidetrack of the previously drilled Zey Gawra-2 well targeting the Cretaceous reservoir has been deferred.
  • Banan drilling: consists of two wells in the eastern portion of the Banan field : the workover of the Banan-1 well targeting the Cretaceous reservoir and one new well targeting the Tertiary reservoir; and one well in the western portion of the Banan field targeting the Cretaceous reservoir. The workover of the Banan-1 well was completed in early 2020 and the other two wells are planned for the second half of 2020.
  • Ain Al Safra drilling: consists of the completion of the Ain Al Safra-2 well targeting the Triassic reservoir. The Ain Al Safra-2 well was suspended in 2014 prior to testing due to security developments. The completion of the Ain Al Safra-2 well is expected to be completed in the second half of 2020.
  • Facilities: Demir Dagh facilities expenditures comprised of infrastructure works including the construction of additional storage tanks, replacement of generators and construction of a solar power station. Zey Gawra facilities expenditures comprised of studies and minor infrastructure works including flowlines for new wells. Banan facilities expenditures comprised of studies and infrastructure needed to accommodate drilling plans and additional production, as well as a pipeline between the Banan field and the Hawler processing facilities located at the Demir Dagh field. The construction of the pipeline is expected in the second half of 2020 and is expected to be in service in early 2021. The planned construction of processing facilities at the Banan field has been deferred. The construction of the pipeline is contingent on production performance from the Banan wells. Ain Al Safra facilities expenditures comprised of infrastructure works including flowlines, camp set up, and a tie-in line to the Kurdistan Oil Export Pipeline.

AGC Central License Area
Consists of studies, technical support and license maintenance costs. The drilling of one exploration well in 2020 has been deferred.

Netherlands   l   Tulip Oil
In January 2020, conceptual field development plans were drafted for additional drilling targets near the producing Q10-A field. These targets consist predominantly of reservoirs that have been drilled historically and flowed gas to surface, similar to Q10 before the 2015 “discovery” well.

Tulip says that a phased development concept has been selected for Steig, with combined initial production and further appraisal using horizontal wells.

Germany   l   Tulip Oil
In 2019, Rhein discovered oil at the Steig-1 well, and the estimated resource is 114 million barrels of oil in place. In early 2020. Tulip announced that a phased development concept has been selected for Steig, with combined initial production and further appraisal using horizontal wells.

Tanzania   l   Aminex/ARA Petroleum    
In April 2020, Aminex formally received the extension of the Mtwara Licence from the Ministry of Energy of Tanzania; one of the last remaining conditions required to close the Farm-Out Agreement with ARA Petroleum Tanzania Limited which will see the Company carried for up to US$35 million of its share of costs associated with the development of the Ntorya field, effectively carrying the Company through to material gas production in Tanzania.

The extension is valid for one year. Under the terms of the extension the Company, through the Ruvuma PSA Joint Venture, is committed to perform the following works during the extension period:

  • Acquire 200 square kilometres (surface coverage) of 3D seismic (min. expenditure of US$7 million)
  • Drill the Chikumbi-1 exploration well (min. expenditure of US$15 million)
  • Complete the negotiation of the Gas Terms for the Ruvuma PSA with the Tanzania Petroleum Development Corporation
  • Using the data gathered from Chikumbi-1 and the seismic acquisition, prepare and submit an application for a Development Licence for the Ntorya Location area.
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