Africa Oil reports New Gas discovery at Sala prospect in Block 9 in Kenya

Africa Oil reported that it has made a gas discovery in Block 9 onshore Kenya. The Sala-1 drilled a large 80 sq km anticlinal feature along the northern basin bounding fault in the Cretaceous Anza graben and encountered several sandstone intervals which had oil and gas shows. The well was drilled to a total depth of 3030 m and petrophysical analysis indicated three zones of interest over a 1000 m gross interval which were subsequently drill stem tested. An upper gas bearing interval tested dry gas at a maximum rate of 6 mmcfpd from a 25 m net pay interval.

The interval had net reservoir sand of over 125 m and encountered a gas water contact so there is potential to drill up dip on the structure where this entire interval will be above the gas water contact. A lower interval tested at low rates of dry gas from a 50 m potential net pay interval which can also be accessed at the up dip location. It should also be noted that there were oil shows while drilling and small amounts of oil were recovered during drilling and testing which indicates there may be potential for oil down dip on the structure. Africa Oil is the Operator of Block 9 with a 50% working interest. Marathon Oil Kenya has the remaining 50% interest.

An appraisal plan to follow up this discovery is currently being evaluated by the partnership in consultation with the Kenyan government. Plans being discussed include an up dip location to confirm the a real extent of the gas zones tested where the full net sand interval can be intersected above the gas-water contact. The partnership is also considering a down dip appraisal location to test an on lapping stratigraphic wedge on the flanks of the structure which is of the same age as the zones in the nearby Ndovu-1 well which had oil and gas shows.

In addition, the company is considering drilling an appraisal well on the crest of the large Bogal structure to confirm this large potential gas discovery which has closure over an area of up to 200 sq km. The gross best estimate of prospective resources for Bogal are 1.8 Tcf of gas based on a third party independent resource assessment. The company currently has two optional slots on the Great Wall drilling rig used to drill the Sala-1 well that are available for this appraisal program.

The company believes there is a very strong market for gas development in Kenya and have already engaged in discussions with power companies and the government to potentially fast track a gas to power project that could add significant value and create benefits for the people of Kenya. In 2013 the Government of Kenya launched its "+5000 MW by 2016 - Power to transform Kenya" initiative with ambitious plans to increase Kenya' s power generating capacity by 5,000 Mega Watts in 40 months. This plan includes significant generating capacity fuelled by imported LNG and coal which are currently being bid. The discovery of indigenous gas in significant quantities in Block 9 has the potential to offer a far more cost effective fuel source for these power projects that will also provide positive environmental and local development benefits. Significant interest exists with development agencies and commercial independent power producers to partner on power developments in Kenya.

The Company is also gave an update on additional exploration and appraisal activities in Kenya and Ethiopia.

In Kenya, the Company has 4 additional rigs active in the South Turkana Basin where oil discoveries have previously been at Ngamia, Twiga, Agete, Amosing, Ekales, Etuko and Ewoi.

The PR Marriott 46 rig has recently completed the Ngamia-2 well which was drilled 1.7 km from the Ngamia-1 discovery well to test the northwest flank of the prospect. The well encountered up to 39 m of net oil pay and 11 m of net gas pay and appears to have identified a new fault block trap north of the main Ngamia accumulation. The reservoirs were high quality with more than 200 m of net reservoir sands with good permeability inferred from MDT sampling. The well has been suspended for testing and the rig will continue to drill up to 4 additional appraisal wells in the Ngamia field area for an extended well test program. A 3D seismic program is currently being concluded over the field area which should allow for detailed mapping of the fault trends.

The SMP-5 rig has completed testing operations on the Agete-1 well where it confirmed the Auwerwer pay previously released, the well flow rate was tested at 500 bopd. This rig is now currently on location at the Ewoi-1 discovery and is preparing to test, after which it will continue to be used to test discovery and appraisal wells in this basin.

The Weatherford 804 rig is currently drilling the Agete-2 downdip appraisal well and will then move to drill the Etom prospect located 7 km north of the Agete discovery along the basin bounding ' string of pearls' trend.

The Sakson PR-5 rig is drilling ahead on the Amosing-2 downdip appraisal well, with a planned sidetrack, and will then move to drill the Kodos and Epir (formerly Aze) prospects, which will be the first exploratory wells to test the Kerio Basin, located immediately adjacent to the prolific S. Lokichar basin.

Finally, the Exalo 205 rig is drilling ahead on the Gardim prospect, located in the Chew Bahir basin in the South Omo block in Ethiopia. The partnership is in discussions on the next prospect to be considered for drilling in this block.

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’s 'Disappointment' with Angola LNG adds to output gap

Angola LNG, a $10 billion LNG plant halted in April due to a leak, has proved to be a disappointment for Total.

“The real concern is that we are at least one year late and even much more than that in terms of start of production,” Yves-Louis Darricarrere, head of upstream, said in an interview.

Angola LNG, which produces the super-chilled fuel for spot deliveries to destinations from South Korea to Brazil, is expected to restart in the middle of next year. The plant has experienced halts since production started last June after an 18 month delay caused by several fires and accidents.

Total, with a 13.6% stake, is “missing” about 25,000 boepd in natural gas due to the halt, Darricarrere said. “It’s a disappointment, but at the same time for us it’s marginal.” The French company has sent experts to the site, he said.

The halt adds to output gaps this year for Total at Kashagan in Kazakhstan, where leaky pipelines must be replaced, and the loss of a concession in Abu Dhabi. The company targets increased production over the coming years, a goal that will be helped by the start of production at the Clov field off Angola in June, 2014.

Angola LNG was running at about 50% of planned capacity before the latest incident because the composition of the plant’s associated gas supply required additional equipment, Chevron, the operator and largest shareholder, has said.

The April incident took place during the commissioning and testing phase as part of a ramp up to full LNG production.

Chevron holds 36.4% of the project, with Sonangol EP owning 22.8%. Total, BP and Eni each hold 13.6%, according to Angola LNG’s website.

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.

Marsol International grows in partnership with RMA

Marsol International, a UAE-based global marine solutions provider focused on the offshore oil terminal market and related infrastructure, has entered into a partnership with RMA Engineering Solutions (RMAES) to support its international growth strategy.

RMAES is a member of the RMA Group, a diversified American-owned company headquartered in Bangkok, Thailand.  RMA specializes in providing innovative infrastructure, automotive and engineering solutions to clients in the emerging markets of Asia, Africa, and the Middle East, often in extremely challenging frontier environments.  The company has approximately $1 billion in annual revenues with offices on the ground in 21 counties.

RMA’s global breadth and support via development and investment funding will enable Marsol to deliver its solutions to a greater service level and a wider customer base.  It will also allow Marsol to pursue international growth through its ability to train local resources to take their place in the operation and maintenance of the facilities and related equipment.

Since 2005, Marsol International has provided operational engineering and management solutions to clients, consultants and EPC contractors for new offshore facilities, and operational and IRM services for existing facilities to offshore terminal owners and operators. 

Mike Young, managing director of Marsol International, said: “Marsol International has always employed a holistic approach to growing our business. We understand that the key to developing emerging markets is to train local people to an internationally accepted level, whereby empowering them to manage their own resources.

“Marsol International adds value by managing this process. From the concept and design stage, through to installation and operation, we work closely with clients to understand their requirements to ensure their needs are met by a fully operational solution with minimal modifications. Taking ownership of this process and training local staff to operate the field on a day-to-day basis is key to this integrated approach.”

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.

Polarcus to acquire 3D seismic offshore West Africa

Polarcus reported that the company has received a Letter of Intent for a 3D marine seismic acquisition project for an undisclosed client offshore West Africa.

The project, subject to the execution of a service contract, will commence in July 2014 and is expected to run for approximately three months.

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.

Ophir Energy gives upadte on Okala-1, Gabon

Ophir Energy has reported that drilling operations have now concluded on the Okala-1 well in the Mbeli Block offshore Gabon. Ophir has a 50% net operated interest.

The well was drilled by the Vantage Titanium Explorer drillship to a depth of 4,229 m MD targeting Cretaceous sands in the pre-salt section. The well encountered a thick section of Aptian salt as prognosed and well developed sandstones in the Gamba and Dentale formations.

However, there were no significant hydrocarbon shows in the target reservoirs. Ophir’s share of the Okala-1 well costs was partially covered by carries from the company’s JV partners.

The Vantage Titanium Explorer will now move to Equatorial Guinea to begin a campaign of three exploration and appraisal wells on Block R.

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.

N’Goma FPSO arrives at Paenal shipyard in Angola

Following a voyage of 7,331 miles (13,577 km), N’Goma FPSO safely berthed at Paenal’s 490 m quayside at Port Amboim on June 17, 2014. The arrival of the vessel in Angola from Singapore marks the young yard’s second mega FPSO in just eight months.

“Welcoming N’Goma helps to cement Paenal’s key position in the oil industry. Two of the FPSO’s modules were fabricated here, the Sulphate Removal Package and the Hot Oil Pump, both of which have been successfully lifted and integrated onboard the vessel. Paenal is building a reputation as a world-class fabrication and integration yard,” says Cesar Guerra, the yard’s General Manager.
 
Porto Amboim Estaleiros Navais Ltda - known as Paenal yard - represents an important part in the sustainable growth for Angola. The yard - a JV partnership between national oil company Sonangol, SBM Offshore and DSME with holdings of 40%, 30% and 30% respectively - provides an ideal base for the oil industry’s exploration and production offshore West Africa.

“The shipyard is the biggest employer in the region with over 1,200 employees of which over 85% are Angolan. This is an important consideration for our clients. SBM’s first FPSO to berth at Paenal is an important milestone for both the yard and the country,” says Jean-Philippe Rodrigues, SBM Offshore Business Development SVP.

“It demonstrates SBM’s extensive worldwide expertise in relocations and our EPCI capacity across the lifecycle. Together with our partners we look forward to the completion of this large FPSO for our client Eni,” says Ivan Replumaz, MD SBM Offshore Malaysia.

“To meet the project’s specific requirements, the conversion included major upgrade work on the hull, turret and integration of new and refurbished topsides, which was successfully completed in Singapore at Keppel Shipyard. We are now committed to concluding the heavy lifting campaign and integration at Paenal,” says Jerome Garidou, Project Manager.

Once the FPSO is completed, operations will begin on the Eni operated Block 15/06 West Hub offshore Angola by OPS - a JV company between Sonangol and SBM Offshore - which celebrated its 10th year anniversary of operations this month.

“The OPS team is keen to welcome the N’Goma FPSO into the Angolan fleet and to start a fruitful relationship with Eni Angola under the 12-year lease and operate contract,” says Fabrice Dumortier, OPS General Manager.

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.