CAMAC Energy spuds Oyo-8 development well offshore Nigeria

CAMAC Energy reported that the Oyo-8 development well was spudded on June 15, 2014. The Oyo-8 well is located offshore Nigeria in OML 120, where CAMAC Energy is the operator and owns a 100% working interest.

This development well lies within the Oyo field, which was one of the first deepwater oil discoveries made in Nigeria. The Oyo field is located approximately 75 km offshore Nigeria in water depths of approximately 300 m.

Oyo-8 will be drilled by the Northern Offshore Energy Searcher drillship to a total depth of approximately 1,800 m in water depths of approximately 310 m, and will produce from the Pliocene reservoir. The Oyo-8 well is expected to commence production in the Q4 and, together with the Oyo-7 well which will be completed subsequent to the Oyo-8 well, is expected to significantly increase production from the Oyo Field.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Giftelyon Multi-Sevices Int'l Ltd and services, UK, online.

East African energy boom investments to take focus in budgets

Kenya, Uganda and Tanzania plan to allocate money in their annual budgets to spur investment in infrastructure to exploit oil and natural gas from deposits that companies including Tullow Oil are developing.

Ugandan and Kenyan oil discoveries, made in 2006 and 2012 respectively, and new gas finds off the coast of Tanzania that have boosted reserves to as much as 46 Tcf have seen East Africa become a frontier for petroleum exploration.

The three countries, along with Rwanda, which are all members of the East African Community, will present their budget statements for the financial year starting July 1.

The Kenyan Finance Ministry said in its 2014 budget policy statement that the government wants to “fast track” building a pipeline to export the crude.

Kenya also expects to increase its spending on infrastructure by 15% $2.9 billion in 2014-15 from a year earlier, according to the Treasury’s budget policy statement.

Tanzania is building the $1.23 billion Mtwara gas pipeline project with a loan from the Export-Import Bank of China, while Statoil and BG Group, are working on a project to build a LNG export plant. The government plans to present new natural gas rules to parliament in November aimed at helping the country get more benefit from its natural resources.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Giftelyon Multi-Sevices Int'l Ltd and services, UK, online.

Exxon reports fire, oil spill at Nigeria terminal

Exxon Mobil Corp. said thunderstorms caused a tank fire June 27 and an oil spill today, June 29, at the Mobil Producing Nigeria Qua Iboe Terminal it operates in Akwa Ibom state.

Offshore production and loading of oil continue, the Irving, Texas-based company said in an emailed statement. No fatalities or injuries were reported. The amount of oil lost to the fire and spill hasn’t been calculated, the company said.

Lightning ignited the tank and the fire was extinguished by noon local time June 27, according to the statement.

Lightning knocked out power to the terminal again today, resulting in a spill. Emergency response systems were activated to contain it, shoreline restoration has begun and relevant authorities and community leaders notified, according to the statement.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Giftelyon Multi-Sevices Int'l Ltd and services, UK, online.

Total starts production at CLOV, boosts Block 17 output to 700,000 bpd

Total, operator of Block 17 in Angola, has started up CLOV, a major deep offshore development located 140 km offshore Luanda, in line with the initial project schedule.

With a production capacity of 160,000 bpd, CLOV will develop proven and probable reserves of over 500 MMbbl. After Girassol, Dalia and Pazflor, CLOV is the fourth FPSO unit on Block 17.

"CLOV will contribute to increasing the Block 17 production to 700,000 bpd while also generating significant free cash flow for the Group. Block 17 will therefore become Total’s most prolific production site and bring us a step closer to achieving our production potential of 3 MMbpd by 2017,” commented Arnaud Breuillac, President Exploration & Production at Total.

Developing four fields (Cravo, Lirio, Orquidea and Violeta), the project comprises 34 wells and 8 manifolds connected by 180 km of subsea pipelines to an FPSO unit at water depths of 1,100 to 1,400 m. Measuring 305 m long and 61 m wide, the FPSO has a storage capacity of 1.8 MMbbl of oil. The gas produced on CLOV will be exported via a subsea line to the onshore Angola LNG liquefaction plant.

Angola

A subsea multiphase pump system will be used deep offshore to enable production of two different oil qualities from the oligocene reservoirs and the more viscous miocene reservoirs. A first for Total at this depth, this system will be used to boost the commingled fluid and enhance oil recovery.

The FPSO design minimizes its environmental footprint, with zero flaring under normal operating conditions and an “all electric” concept to increase on-site energy efficiency by producing only the quantity of electricity required to operate the facilities.

As part of Total’s commitment to increasing local content in its projects, a significant part of the CLOV development work was carried out in Angola. This represents more than 10 million man hours achieved in-country to complete fabrication and assembly on Angolan yards.

Total operates the block with a 40% interest, and its partners are Statoil (23.33%), Esso Exploration Angola (Block 17) Limited (20%) and BP (16.67%). Sonangol is the concessionaire for Block 17.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Giftelyon Multi-Sevices Int'l Ltd and services, UK, online.

Libyan rebels say two oil ports reopened after yearlong blockade

Rebels who helped decimate Libyan oil production by blockading eastern ports said the nation’s largest and third-largest export facilities can ship crude again, in a gesture of support for the newly elected parliament.

Es Sider and Ras Lanuf, which have combined capacity of 560,000 bpd, will reopen today, July 2, according to Ali Al-Hasy, a spokesman for the rebels’ Executive Office for Barqa. Libya’s state-run National Oil Corp. hasn’t been informed of the move, said Mohamed Elharari, company spokesman. The two terminals would increase Libya’s crude-export capacity almost five-fold.

The loss of Libya’s oil production boosted the price of Brent, a benchmark for half the world’s traded crude. Brent futures for August settlement fell as much as 0.7% to $111.54 a barrel today, the lowest intraday level in almost three weeks. The restart of operations at the two ports would probably send Brent down to $110 a barrel, Commerzbank AG said.

“The Petroleum Facilities Guards in Es Sider and Ras Lanuf have been instructed to allow the two ports to resume operations,” Al-Hasy said by phone from eastern Libya. “This is an initiative from the Executive Office for Barqa to welcome the newly elected parliament that includes well-known patriots, and to encourage them to fight corruption and protect the natural resources of the nation.”

The self-declared Executive Office for Barqa seeks self-rule for the eastern region of Libya known also as Cyrenaica. It occupied oil ports in the region at the end of July 2013, demanding an oil-revenue-sharing agreement to make up for the neglect the area experienced under Muammar Qaddafi’s 42-year rule.

Brent Falls

Libya is now producing about 320,000 bpd, or about a fifth of its output before Qaddafi was overthrown in 2011, according to state-run National Oil Corp. “We will lift the state of force majeure in Es Sider and Ras Lanuf when we receive confirmation of this agreement from the government,” said Elharari. Force majeure is a legal step that protects a company from liability when it can’t fulfill a contract for reasons beyond its control.

The premium of the front-month Brent contract over the second month, a structure called backwardation that signals tight near-term supplies, narrowed to as little as 7 cents a barrel on the ICE Futures Europe exchange in London today, the least since April 15. Brent’s premium to U.S. benchmark West Texas Intermediate narrowed as much as 41 cents to $6.54 a barrel on ICE.

Government representatives including Justice Minister Salah al-Mirghani and a delegation of the Barqa federalists sealed the agreement yesterday in the eastern city of Tobruk, Al-Hasy said. “The facilities in Es Sider and Ras Lanuf are in very good shape, they are ready to operate.”

‘Ready to Operate’

Es Sider has 340,000 bbl in daily loading capacity and Ras Lanuf 220,000 bbl, according to the oil ministry. The nation has a total of nine oil export terminals, of which three - Brega, Jurf and Bouri - are operating with a combined daily loading capacity of 145,000 bbl.

While the other terminals - Zawiya, Mellitah, Hariga and Zueitina - are under government control, they are not exporting because of protests at the ports or connected oilfields unrelated to those of the Barqa federalists.

The government has agreed to pay “in the next few days” the salaries of Petroleum Facilities Guard who defected to the Barqa group during the blockade and to implement a preliminary agreement reached on April 6, Al-Hasy said. The rebels handed over the oil ports of Hariga and Zueitina after this accord in exchange for amnesty and salary payments for the guards, and an audit of the National Oil Corp.’s oil sales since the overthrow of Qaddafi.

The Barqa federalists in May threatened to re-occupy Hariga and Zueitina in protest over the appointment as prime minister of Ahmed Maiteg, whom they see as allied with the nation’s Islamists. His appointment was later withdrawn, and elections were held last week for a new parliament.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Giftelyon Multi-Sevices Int'l Ltd and services, UK, online.