Africa (Sub-Sahara)

  • Aminex reported that the company-operated Ntorya-2 appraisal well in the Ruvuma Basin of Tanzania encountered a gross gas-bearing reservoir unit of 167 ft. A comprehensive well testing program began in late February. The earlier Ntorya-1 well discovered a net pay of 11.5 ft and flow-tested at 20 MMcf/D, with 139 bbl of associated condensate. The Ntorya field is approximately 25 miles from the Madimba gas processing plant, which connects with the National Gas Pipeline system. Aminex has a 75% working interest in the project with Solo holding the remaining share.

  • Eni has begun production from the East Hub Development Project offshore Angola, 5 months ahead of schedule. The startup of the Cabaça South East field is expected to boost production from Block 15/06 to 150,000 B/D. East Hub production will add to output from the existing West Hub Project in the Sangos, Cinguvu, and Mpungi fields. The company operates Block 15/06 and holds a 36.84% interest. Sonangol (36.84%) and SSI Fifteen (26.32%) are the other participants.

  • Asia Pacific

  • PetroChina plans to step up shale gas development in Sichuan province with a goal of meeting a third of a 2020 government target for the unconventional resource, according to state media and a government official. The Xinhua news agency reported that the state oil and gas company will increase drilling in southern Sichuan, China’s top gas-producing region and a key early shale development area. PetroChina plans to build 353 Bcf of shale gas production capacity in the province over the next 4 years. For 2017, the company plans to deploy 19 new rigs to drill 110 wells there, part of a total 600 wells planned in the next 4 years, Xinhua said. Domestic rival Sinopec likewise plans to achieve 353 Bcf of shale gas output by 2020.

  • Total is drilling ahead to explore a deeper exploration target at the company-operated Antelope-7 sidetrack appraisal well in the Gulf Province of Papua New Guinea, after reaching 7,818 ft without evidence of intersecting the Antelope reservoir. The proposed total depth of the well’s appraisal section was approximately 7,545 ft. Total has a 40.1275% interest in the well, with remaining stakes held by InterOil (36.5375%), Oil Search (22.835%), and minority parties (0.5%).

  • Latin America-Caribbean

  • Rosneft has started drilling its first exploration well in the Solimões Basin of Brazil’s Amazon region. The company plans to drill at least four wells in its basin exploration campaign, with drilling, testing, and evaluation of the initial well to be completed in the second quarter of the year. Rosneft acquired PetroRio’s stake in the project in 2015 to become its sole interest owner.

  • Middle East-North Africa

  • Lukoil has found oil at the Eridu 1 exploration well in Block 10 of southern Iraq. The well flowed at a rate of more than 6,290 B/D of oil from the Mishrif horizon during testing and has now been completed. The discovery confirms geological expectations of a large hydrocarbon field to be present in the Block 10 contract area, the company said. Exploration continues in the block, with plans to drill and test the Eridu-2 appraisal well later this year. Lukoil is the operator with a 60% interest, and Inpex (40%) holds the remaining share.

  • Northern Europe

  • Lundin has made a discovery on production license 533 in the Barents Sea, the Norwegian Petroleum Directorate has announced. Wildcat well 7219/12-1 proved a total oil column of about 196 ft and an overlying total gas column of 196 ft, of which 180 ft and 147 ft, respectively, were in sandstone with good reservoir properties in the Tubåen formation. Appraisal well 7219/12-1 A confirmed a mostly equivalent gas and oil column in the Nordmela and Tubåen formations with good reservoir properties. Preliminary estimates of the size of the discovery are from 5.5 million std m3 to 16 million std m3 of recoverable oil equivalents. The appraisal and wildcat wells were drilled to respective depths of 8,120 ft and 5,905 ft beneath the seabed. Operator Lundin holds a 35% interest in the license. Det norske oljeselskap (35%) and DEA (30%) hold the remaining stakes.

  • Ithaca Energy has started production from the company-operated Stella field in the Central Graben area of the United Kingdom Continental Shelf in the North Sea. The field comprises the Stella Andrew sandstone reservoir, containing light oil and rich gas condensate, and the Stella Ekofisk reservoir, containing volatile oil. Discovered by Shell in 1979, the field encountered gas condensate throughout a 25-ft section of Paleocene Andrew sand. Oil was also observed in the underlying Ekofisk chalk reservoir. Ithaca has a 54.66% interest in the field, with Dyas (25.34%) and Petrofac (20%) also holding interests.

  • Statoil has made a new gas discovery called Valemon West at the Valemon field offshore Norway, 2 years after the company-operated field began production. The recent discovery is estimated to contain between 20 million BOE and 50 million BOE, Statoil said. The well, which lies in the North Sea 100 miles northwest of Bergen, was drilled to a vertical depth of 14,229 ft below sea level. The company has a 53.775% interest in the discovery, with Petoro (30%), Centrica (13%), and Shell (3.225%) holding the remaining stakes.

  • USA

  • Shell has given the green light to develop its Kaikias deepwater field in the United States Gulf of Mexico, the first such project the company has approved since Appomattox in July 2015. Located 130 miles offshore Louisiana, Kaikias is to start production in 2019 and expected to be profitable at oil prices lower than USD 40/bbl as a result of a simplified design that allowed costs to be slashed by 50%. The Shell-operated project will be tied into the company’s nearby Ursa production hub. Kaikias is estimated to contain more than 100 million BOE of recoverable resources and in its three-well first phase is anticipated to produce a peak 40,000 BOE/D. Shell holds an 80% interest in the project with the remaining interest held by Mitsui.