E&P Notes (October 2022)
Authors: JPT staff _ 
Published: November 2022

CNOOC Turns Taps on Bohai Bay Fields

Volumes are flowing from two new CNOOC-operated field developments in the Bohai Sea, offshore China. Production began at the Luda 5-2 oil field north phase 1 project in Liaodong Bay. The field is in an average water depth of around 32 m. CNOOC installed one thermal recovery wellhead platform and one production platform, and connected processing facilities serving the Suizhong 36-1 oil field. The company plans to drill a total of 26 production and two water-source wells, with peak crude oil production of 8,200 B/D targeted for 2024.

Oil also is flowing at the Kenli 6-1 oil field 4-1 block development in the southern Bohai Sea. A new wellhead platform in about 17 km of water is connected to processing facilities at the Bozhong 34-9 oil field. CNOOC plans a total of seven producer and five water-injector wells at Kenli 6-1, with peak oil production later this year of around 4,000 B/D.

CNOOC holds a 100% stake in both projects.

Sailaway for GTA FPSO Expected by Year-End

A BP executive told conference goers in Senegal recently that the FPSO destined for that country’s Greater Tortue Ahmeyim (GTA) gas project is expected to leave China prior to year-end. BP Executive Vice President for Production and Operations Gordon Birrell added that the first phase of the GTA project is 80% complete. The main function of the FPSO will be to remove water and condensate and reduce impurities in the gas stream before exporting processed gas to a nearby FLNG facility and domestic gas offtake.

BP and Kosmos Energy are leading the development of GTA and Yakaar-Teranga, Senegal’s first natural gas projects. GTA straddles the border between Senegal and Mauritania. Phase 1 of the planned development is expected to start delivering gas by the end of 2023.

Birrell added that BP is in discussions with Senegal and Mauritania about GTA’s second phase and other projects in both countries, but did not get into specifics, according to Reuters.

Phase two should double expected production from 2.5 to 5.0 mtpa.

ReconAfrica, NAMCOR Reach Target Depth on Namibia Well

Reconnaissance Energy Africa and its joint venture partner NAMCOR, the state oil company of Namibia, confirmed the third stratigraphic test well in the Kavango basin of northeast Namibia, 1819/8-2, reached target depth. The well was drilled to a total depth of 2056 m reaching all geological targets. However, the duo did not reveal what was found in the well. Instead, the pair said current operations were focused on well data capture and initiating analysis of the data. Company-owned rig Jarvie-1 will remain on site until logging and coring operations are completed. A vertical seismic profile tool will also be run to total depth to tie into the 2D seismic program.

Processing of the second phase of 761 km of 2D seismic is near completion, where early results are being used to refine drilling locations for the upcoming stratigraphic wells. The next well of this planned continuous drilling program was scheduled to have the rig on location by the end of last month.

Pantheon Resources Alaska Discovery Deemed “World Class”

Pantheon Resources has uncovered a “world-class” oil discovery on its Theta West acreage in Alaska, according to independent consultants brought in to assess the area’s potential. Baker Hughes Advanced Hydrocarbon Stratigraphy (AHS) was charged with compiling a report based on data collated after a successful appraisal well drilled early this year.

The firm believes there is a continuous column of oil-bearing cuttings of at least 1,360 ft that is host to a light crude in the order of 37–39 °API. The AHS report concluded there are “abundant good-quality reservoirs” with an “ultimate, nonpermeable seal” at 7,070 ft.

Pantheon said the results are supportive of analyses of cuttings from previous work on the acreage on Alaska’s prolific North Slope. The company estimated the project, which is close to infrastructure, is host to 17 billion bbl of which 10%, or 1.7 billion bbl, is deemed recoverable.

Invictus Well in Zimbabwe a “Game Changer”

The Mukuyu-1 exploration well being drilled in Zimbabwe by Australian firm Invictus Energy in partnership with the government is being called “a game changer” for the country by President Emmerson Mnangagwa. The well is in license SG 4571, which covers 250,000 acres located in the most prospective portion of the Cabora Bassa Basin in northern Zimbabwe. The license is currently in the second exploration period which runs to June 2024. Invictus entered into an agreement with the Zimbabwe government in March 2022 to increase the license area sevenfold to 1.77 million acres.

Previously explored by Mobil Oil, the project contains the largest undrilled structure in onshore Africa. The Muzarabani anticline feature has more than 200 km2 under closure and up to 1500 m vertical relief at favorable depths for conventional oil and gas.

Invictus completed the acquisition of 840 km of high-resolution infill 2D seismic data ahead of spudding the well using Exalo Rig 202 in August.

Drilling Results a Mixed Bag for APA Offshore Suriname

APA Corporation has made an oil discovery offshore Suriname with its Baja-1 well in Block 53 but came away empty with a probe in Block 58. Baja-1 was drilled to a depth of 5290 m and encountered 34 m of net oil pay in a single interval within the Campanian. Preliminary fluid and log analysis indicates light oil with a gas/oil ratio (GOR) of 1,600 to 2,200 scf/bbl, in good-quality reservoir. The discovery at Baja-1 is a down-dip lobe of the same depositional system as the Krabdagu discovery, 11.5 km to the west in Block 58. Evaluation of openhole well logs, cores, and reservoir fluids is ongoing.

The success at Baja marks the sixth oil discovery in which APA has participated in offshore Suriname and the first on Block 53. The company said the result confirms its geologic model for the Campanian in the area and helps to de-risk other prospects in the southern portion of both Blocks 53 and 58.

APA recently received regulatory approval regarding an amendment to the Block 53 production-sharing contract, which provides options to extend the exploration period by up to 4 years. The company is currently proceeding with formalizing the first one-year extension, for which all work commitments are complete.

APA is operator and holds a 45% working interest in Block 53; partners Petronas and CEPSA hold 30% and 25% stakes, respectively.

Baja-1 was drilled using drillship Noble Gerry de Souza in water depths of approximately 1140 m. The rig will mobilize to Block 58 following the completion of current operations, where it will drill the Awari exploration prospect, approximately 27 km north of the Maka Central discovery.

APA was not as fortunate with its Dikkop exploration well in Block 58. The well encountered water-bearing sandstones in the targeted interval and has been plugged and abandoned. Operator TotalEnergies holds a 50% working interest, while APA holds the remaining 50% stake. The drillship Maersk Valiant will be moving to the Sapakara field to drill a second appraisal well at Sapakara South, where the joint venture conducted a successful flow test late last year.

Helix Energy Solutions Secures Production, P&A Work With Thunder Hawk Buy

Helix Energy Solutions Group subsidiary Deepwater Abandonment Alternatives (DAA) acquired all of MP GOM’s 62.5% interest in Mississippi Canyon Block 734, comprising three wells and related subsea infrastructure, collectively known as the Thunder Hawk field. MP GOM is a subsidiary of Murphy Oil. Financial terms of the deal were not disclosed.

“This acquisition furthers Helix’s energy transition business model by taking on decommissioning obligations in exchange for production revenues,” said Owen Kratz, president and chief executive of Helix. “We have long communicated our unique position as a qualified offshore field operator that can also assume and efficiently discharge decommissioning obligations. We continue to pursue opportunities that enable us to enhance and extend the life of existing reserves and safely perform the related decommissioning of the infrastructure in transactions that allow producers to remove noncore assets from their balance sheets.”

Under the terms of the transaction, Helix receives the benefit of ownership of MP GOM’s interest, with a 1 November 2021 effective date purchase price adjustment resulting in nominal cash paid by MP GOM at closing, in exchange for the assumption of MP GOM’s abandonment obligations at the Thunder Hawk Field.

In addition to anticipated future production revenue, DAA will operate the Thunder Hawk field with Helix eventually expected to perform the required plug and abandonment operations.

Kolibri Continues Tishamingo Program in Oklahoma

Kolibri Global Energy has completed the location work for the Glenn 16-3H and Brock 9-3H wells, which are the third and fourth wells in its 2022 drilling program. A fifth location is also being prepped. All three wells in the Tishamingo area of the SCOOP play are planned to be drilled back-to-back, and the completion operations for the Glenn 16-3H and Brock 9-3H wells have been tentatively scheduled for the first week of October.

Neptune Energy Confirms New Discovery in the Gjøa Area

Neptune Energy and its partners announced a new commercial discovery at the Ofelia exploration well (PL 929), close to the Gjøa field in the Norwegian sector of the North Sea.

Neptune has completed drilling of the Ofelia well, 35/6-3 S, and encountered oil in the Agat formation. The preliminary estimate of recoverable volume is in the range of 16 to 39 million BOE. In addition to the Agat volumes, north of the well there is an upside of around 10 million BOE recoverable gas in the shallower Kyrre formation, which brings the total recoverable volume to approximately 26 to 49 million BOE.

Located 15 km north of the operated Gjøa platform, at a water depth of 344 m, Ofelia will be considered for development as a tieback to Gjøa, in parallel with the company’s recent oil and gas discovery at Hamlet. The Ofelia well, drilled by Odfjell-operated semisubmersible Deepsea Yantai, confirmed an oil/water contact at 2639 m total vertical depth.

It is the third discovery by Neptune Energy in the Agat formation, a reservoir which until recently was not part of established exploration models on the Norwegian Shelf. The first was at the Duva field, which is now onstream and being operated by Neptune. The second was the company’s discovery at Hamlet, with estimated recoverable volumes between 8 and 24 million BOE.