E&P Notes (October 2020)
Authors: JPT staff _ 
Published: November 2020

Equinor Drilling New Wells in Norwegian North Sea

Equinor will drill three new wells at a cost of $219.3 million at the Martin Linge field in the Norwegian North Sea to ensure safe production after an analysis found four previous wells drilled there did not have necessary barriers. The wells were drilled before the company took over as operator of the field from Total in 2018.

The company will keep the four wells plugged and under continuous monitoring until it has reduced the pressure in the formation by producing from other wells.

Two remaining wells from the development and operation plan will also be drilled for the field’s originally planned production. The field is designed for a mixture of oil and gas and needs gas wells that produce at a certain rate for startup and production.

Equinor is the majority shareholder and operator of Martin Linge (70%); Petoro holds 30% interest.

Petrobras Concludes Drillstem Test in Santos Basin

Petrobras completed a drillstem test (DST) in the Júpiter Discovery Assessment Plan, located in the Santos Basin pre-salt carbonate reservoir. The well Apollonia (3-BRSA-1246-RJS) located approximately 295 km from Rio de Janeiro in a water depth of 2183 m produced fluid samples with a high gas/oil ratio (GOR) and high CO2 content.

The fluid samples will be used to validate the company’s HISEP high-pressure separation technology, which includes separation and reinjection in the reservoir rocks of the CO2 contained in the produced oil. The HISEP technology is in the early stages of development but has the potential to enable the Jupiter production development pilot project and other projects with high GOR and CO2 fluids, Petrobras said.

The Jupiter area is in the BM-S-24 concession, where Petrobras is the operator with an 80% interest; Petrogal Brazil holds 20% interest.

Total Resigns Operator Role for Five Blocks in Brazil

Total resigned its operator role for five exploration blocks located in the Foz do Amazonas Basin, 120 km off-shore Brazil, referenced as FZA-M-57, FZA-M-86, FZA-M-88, FZA-M-125, and FZA-M-127.

The company informed the National Agency of Petroleum, Natural Gas and Biofuels of the decision which opens a 6-month period for a new operator to be appointed. During that period, Total will continue monitoring all regulatory processes on behalf of its partners Petrobras and BP.

ReconAfrica To Advance Kavango Basin Work

A recent round of funding which raised $18 million positioned ReconAfrica to proceed with drilling and seismic programs for the Kavango basin in Namibia, said CEO Scot Evans.

The company will initiate and complete a three-well drilling program with the initial goal of establishing an active Permian aged petroleum system.

Well designs are complete, and the drilling service program was tendered in full. All bids have been received and are under evaluation with contract awards to have been awarded last month. The spud of the first well (6-2) is scheduled for early December. The company is also making upgrades such as installing a 250-ton topdrive, a third mud pump, and key upgrades to safety-related systems.

The funding will also allow the acceleration of the 2D seismic acquisition, processing, and interpretation program. The initial 2D program will cover 400 km with a targeted start in late Q4 2020.

CGG Expands North Sea Multiclient Survey

CGG began a multiclient 3D survey in the Northern North Sea to provide a second azimuth over its existing Northern Viking Graben (NVG) multiclient 3D survey and extend into open acreage on offer in the UK 32nd License Round.

The survey will acquire approximately 2,000 km2 of additional data in an east-west direction, which will be processed with existing north-south data to produce a dual-azimuth volume. The added azimuth will improve the imaging of multidirectional fault patterns prevalent in the region. Improved resolution will help resolve complex and marginal reservoir stratigraphy.

The new survey is the first in a planned multiyear project, leveraging strategic partner Shearwater GeoServices. It also builds on CGG’s 44,000 m2 of existing coverage in the Northern North Sea to further the de-risking of the existing fields and unlock the potential of new plays, near stepout opportunities, and stranded fields.

Petrobras Sells Stakes in Espírito Santo

Petrobras will sell its stakes in 27 onshore exploration and production concessions located in Espírito Santo, called the Cricaré Cluster, to Karavan SPE Cricaré SA, a specific-purpose entity (SPE), for $155 million. The deal is part of Petrobras’ plan for portfolio optimization and capital allocation improvement, shifting its resources to deep and ultradeep waters.

Petrobras said that the average production at the Cricaré cluster was approximately 1,700 BOPD and 14,000 m3 of natural gas per day from January to June this year.

The cluster comprises the fields Biguá, Cacimbas, Campo Grande, Córrego Cedro Norte, Córrego Cedro Norte Sul, Córrego Dourado, Córrego das Pedras, Fazenda Cedro, Fazenda Cedro Norte, Fazenda Queimadas, Fazenda São Jorge, Guriri, Inhambu, Jacutinga, Lagoa Bonita, Lagoa Suruaca, Mariricu, Mariricu Norte, Rio Itaúnas, Rio Preto, Rio Preto Oeste, Rio Preto Sul, Rio São Mateus, São Mateus, São Mateus Leste, Seriema, and Tabuiaiá.

Karavan O&G Participações e Consultoria will hold 51% of the SPE and equity provider Seacrest Capital Group will hold the remaining 49%.

Barron Petroleum Makes Permian Basin Discovery

Barron Petroleum drilled a new discovery well in Val Verde County, Texas, finding an estimated 417 Bcf (74.2 million bbl) in oil and gas reserves. The discovery is located approximately six miles southwest of the Massie (Strawn) field, which has produced more than 157 Bcf. The Sahota Carson 20BU #1 was drilled to a total depth of 12,650 ft. Approximately 70 ft of gas-bearing Strawn porosity was encountered. Following stimulation, the well tested at rates up to 5 million ft3 of gas per day.

The company identified 67 high-graded Strawn formation locations and is refining future location placement based on results of the first well. Testing and potential development in the Canyon formation is being considered at an approximate depth of 9,000 ft and Ellenburger at about 16,000-ft depth.

Barron Petroleum holds a 100% working interest in the prospect and holds development rights to more than 13,000 acres over the prospect.

Apache and Total Find Hydrocarbons Off Suriname

In an update to an evaluation of the Kwaskwasi-1 discovery well offshore Suriname, Apache and Total said the Noble Sam Croft drillship gathered reservoir and other technical data in the upper cretaceous-aged Santonian intervals since its 29 July discovery.

Rotary sidewall cores were retrieved, but representative fluid samples from the reservoir were not collected due to conditions caused by cementing operations, which were required to mitigate increased pressure below the base of the Santonian formation. Hydrocarbon shows were also observed in the Santonian reservoirs, and the results of the formation evaluation indicate the presence of oil.

The shallower Campanian interval contains 63 m (207 ft) of net oil pay and 86 m (282 ft) of net volatile oil/gas condensate pay. The Santonian interval contains 129 m (423 ft) of net pay. Fluid samples from the Campanian validated the presence of oil with 30-43 °API.

The drillship also began operations at the Keskesi East-1 exploration well, which will test upper Cretaceous targets in the Campanian and Santonian, approximately 14 km (9 miles) south-east of Sapakara West-1.

Apache holds a 50% working interest in Block 58 and is the operator through completion of the Keskesi well. Total holds the remaining 50% working interest.

Vietnam Approves Pharos Development Plan

Pharos Energy, an independent E&P company, received approval from the Prime Minister of Vietnam for its Te Giac Trang (TGT) full-field development plan (FFDP), enabling the company to begin drilling six new producer wells in Q4 2021.

The FFDP was the last stage of the required process following recent approval of an initial 2-year license extension to 7 December 2026 approved in August.

The infill-drilling program is targeted to increase gross production at TGT from the present 15,000 BOE/D to around 20,000 BOE/D in 2022.

The approval also allows for long-lead items to be ordered to enable the start of drilling for those wells.

CNOOC Begins Production in Central Bohai Bay

CNOOC Limited’s Nanbao 35-2 oil field S1 area offshore China in the central Bohai bay began production. The oil field, fully owned by CNOOC Limited, has an average water depth of 17 m.

The company will utilizing existing facilities of Nanbao 35-2, which include one unmanned wellhead platform.

Three development wells are planned, and the project is expected to reach its peak production of approximately 1,800 B/D of crude in 2021.