Africa (Sub-Sahara)

  • Africa Oil reported that the Erut-1 well has been spudded on Kenya’s Block 13T. Situated on a large structural feature in the northern portion of the South Lokichar Basin, Erut-1 follows the successful Etom-2 well that discovered 334 ft of net pay. The latest well is the first in a firm four-well program slated for the first half of the year, the company said. Contingently, four additional wells could be drilled. Tullow is operator with a 50% interest in the block. Africa Oil and Maersk each hold 25% stakes.

  • Lekoil said that oil has flowed from the Otakikpo Marginal field in Nigeria to onshore storage tanks, from which it will be transported when an offshore pipeline is finished. All onshore facilities have been commissioned and approved by regulators. The pipeline connecting the storage tanks with the tanker offloading manifold is 80% complete, the company said. Upon the line’s completion, shipments to an export terminal will begin, and field production is expected to ramp up gradually to 10,000 B/D. Lekoil is the operator with a 40% interest in the field. Green Energy holds the remaining interest.

  • Asia Pacific

  • Soco announced that two infill development wells in the Te Giac Trang field on Block 16-1 offshore southeast Vietnam have found hydrocarbons. The TGT-27P and TGT-28P wells were drilled to total measured depths of 13,008 ft and 14,468 ft, respectively. Both wells encountered hydrocarbons throughout the Miocene and Oligocene reservoir horizons and are being analyzed to evaluate the initial perforation strategy, the company said. Soco (28.5% interest) is the field operator with other participants including PTTEP (28.5%), Petrovietnam (41%) and OPECO Vietnam (2%).

  • ExxonMobil reported a natural gas discovery in the Papua New Guinea North Highlands, 13 miles northwest of the Hides gas field. The Muruk-1 well encountered high-quality sandstone reservoirs similar to Hides and was in line with predrill expectations, the company said. Spudded on 2 November 2016, the well was drilled to a 10,630-ft depth and is being evaluated to determine the size of the discovery. Muruk-1 is located on petroleum prospecting license 402, which covers 126,000 acres. The company holds a 42.5% interest in the well, which is operated by Oil Search (37.5%). Barracuda Limited, a Santos subsidiary, has a 20% interest that is subject to regulatory approval.

  • AWE said that well performance from Stage 1A of the Waitsia gas project in the North Perth Basin of Western Australia has exceeded preproduction expectations over the first 3 months of operations. Stage 1A of the company-operated project began production in August 2016 from the Senecio-3 discovery well and the Waitsia-1 appraisal well. An independent review of the well performance has determined that preliminary results from the two zones under test indicate an accessed gas-in-place volume of 100 Bcf or more. AWE and Origin Energy each hold 50% interests in the project.

  • Canada

  • TransCanada recently abandoned plans to lower tolls on its cross-country gas pipeline to eastern Canada, which industry analysts believe creates an opening for United States gas producers to expand into Canada’s market. In the absence of additional western-Canadian gas shipments eastward, producers especially in Pennsylvania’s Marcellus Basin could shift supplies to Canadian population centers. Antero Resources, Rice Energy, and Gulfport Energy, which supply Marcellus gas to the US Midwest, could benefit most from this opportunity, said analysts Timm Schneider and Stephen Richardson at Evercore ISI. Proposed US-to-Canada pipeline projects could also benefit, GMP FirstEnergy analyst Martin King said.

  • Latin America-Caribbean

  • Petrobras has started production from the pre-salt Lapa field in the offshore Santos Basin. The floating production, storage, and offloading vessel Caraguatatuba has the capacity to process 100,000 B/D of oil at the company-operated field, Petrobras said. The company has a 45% interest in the field, with the other stakes held by Shell’s BG unit (30%) and Repsol Sinopec (25%).

  • Middle East-North Africa

  • The Rumaila Operating Organization (ROO) announced that Iraq’s Rumaila field has produced 3 billion bbl of oil since the ROO joint venture (JV) started up in January 2010. Rumaila has increased production from 1 million B/D in 2009 to more than 1.45 million B/D today, said lead JV contractor BP. Under ROO, the number of producing wells at the mature field has risen by about 50%. More than 240 new wells have been drilled, and a well workover program has countered the field’s natural decline rate. The JV consists of BP (38%), China National Petroleum Company (37%), and South Oil Company of Iraq (25%).

  • Northern Europe

  • Aker BP reported  that the Ivar Aasen field in the North Sea has produced first oil, with the project coming in on time and within budget. Situated 109 miles west of Karmøy, Norway, the field contains an estimated 186 million BOE and, depending on oil prices and development results, could have an economic life of 20 years, the company said. Aker BP was formed in September 2016 by the merger of Det Norske Oljeselskap and BP Norway.

  • Hurricane Energy announced that its Lincoln well (205/26b-A) in the United Kingdom North Sea, west of the Shetland Islands, discovered a “significant” oil column. The company recently completed drilling and logging the well, which resulted in a significant fractured basement discovery. Gas chromatography and drilling data indicated a hydrocarbon column of at least 2,165 ft that lies outside the structural closure on Hurricane’s nearby Greater Lancaster potential development acreage, according to Robert Trice, chief executive officer. Lincoln’s predrill assessment of 250 million recoverable bbl of oil “may be conservative,” he said.

  • Engie’s Cygnus field has achieved first gas and is on course this year to become the largest producing gas field in the United Kingdom North Sea. Discovered in 1988, Cygnus went into development only after the government introduced a GBP 500-million (USD 810-million) tax allowance for large shallow-water gas fields in July 2012. Located 90 miles offshore Lincolnshire, England, the field has estimated gross 2P reserves of approximately 635 Bcf. Engie has a 38.75% interest in Cygnus with the remaining stakes held by Centrica (48.75%) and Bayerngas (12.5%).