Asia Pacific

  • Sino Gas & Energy Holdings has submitted the Sanjiaobei Overall Development Plan (ODP) to its production-sharing-contract partner PetroChina CBM (PCCBM) for approval. The move represents “an important regulatory milestone in the development of the Sanjiaobei PSC,” Sino Gas said. The ODP was compiled in collaboration with PCCBM and accounts for approximately 60% of the current discovered area of Sanjiaobei. Sino Gas expects the ODP to be approved in the first half of 2018.

  • Beach Energy has discovered gas at the Haselgrove-3 ST1 well in the Otway Basin of South Australia. Flow-test results from the primary target Sawpit Sandstone indicated a reservoir with high deliverability. The company said it was encouraged about moving ahead to commercialize “a large gas resource.” Beach planned immediate follow-up testing to confirm well deliverability and assess connected volumes and gas composition. Located on state forestry land in PPL 62, approximately five miles south of Penola, the well was drilled to a total measured depth of 14,209 ft. Early indications suggest the Sawpit Sandstone could flow at rates greater than 25 MMcf/D, the company said.

  • Latin America-Caribbean

  • ExxonMobil reported positive test results from its Ranger-1 exploration well, its sixth oil discovery offshore Guyana since 2015. “This discovery proves a new play concept for the 6.6-million-acre Stabroek Block and adds further value to our growing Guyana portfolio,” said Steve Greenlee, ExxonMobil Exploration Company president. The company-operated well was drilled to 21,161 ft in 8,973 ft of water. Further exploration drilling on the block is planned for 2018, including potential appraisal of the Ranger discovery. ExxonMobil has a 45% interest in Stabroek, with Hess (30%) and CNOOC Nexen (25%) holding the remaining stakes.

  • Middle East-North Africa

  • Eni has started production at the Zohr project offshore Egypt, the largest natural gas discovery ever in the Mediterranean Sea. The field, which is located in the Shorouk Block, has potential resources in excess of 30 Tcf of gas in place or approximately 5.5 billion BOE, according to the company. Discovered in August 2015, Zohr obtained investment authorization in only 6 months and began production less than 2½ years after discovery. Zohr “will completely transform Egypt’s energy landscape, allowing it to become self-sufficient and to turn from an importer of natural gas into a future exporter,” Eni’s CEO Claudio Descalzi said. The company holds a 60% stake in the Shorouk Block, with Rosneft (30%) and BP (10%) holding the remainder.

  • Sonatrach, the state-owned energy company of Algeria, has signed an agreement with BP and Statoil to produce an additional 388 Bcf of natural gas from its Tiguentourine field, the Algerian company said. The field produces 318 Bcf per year, but more investment is needed to maintain that output beyond 2035. The field has produced 2,755 Bcf since opening in 2006, with approximately $3.4 billion having been invested in the project.

  • SDX Energy has initiated production from the KSR-15 well on the Sebou permit in Morocco. The well was completed and tested at a restricted average flow rate of 7.52 MMscf/D of natural gas. The company also disclosed that the KSR‑16 well has been connected to existing infrastructure and was soon expected to test production. Paul Welch, SDX CEO, said, “We now have two wells that exceed our existing daily commitments of 6 MMscf/D on a standalone basis. We are now very confident in delivering upon our planned natural gas sales rates of 10 MMscf/D to 11 MMscf/D in 2018.”

  • State-owned Qatargas has made a sale and purchase agreement with Austrian oil and gas company OMV to deliver up to 1.1 million metric tons of liquefied natural gas (LNG) annually for 5 years. Starting in January 2019, the LNG will be provided by Qatar Liquefied Gas Company, a venture between Qatar Petroleum and Shell. The gas will be delivered to the Gate LNG Terminal in the Netherlands onboard Qatargas’ chartered LNG vessels.

  • Northern Europe

  • Statoil is seeking to extend output from its Snorre oil field in the southern Norwegian Sea by some 25 years under a recently announced $2.26-billion investment plan, which is subject to formal approval by government authorities. The work should increase recovery from the field by almost 200 million bbl, with the new production to start in 2021, the company said. The plan includes drilling 24 wells, including 12 producers and 12 injectors, and building six subsea templates that will be tied into the Snorre A platform. The field produced 80,000 B/D of oil per day during the first 10 months of 2017, according to Norwegian Petroleum Directorate. Statoil’s partners in the Snorre license are Petoro, ExxonMobil, Idemitsu, DEA, and Point Resources.

  • Po Valley Energy reported the company-operated Podere Maiar 1 dir exploration well in the Selva gas field of Northern Italy was complete for production and “on gas.” Po Valley said it had successfully cased, perforated, and completed the well and that log analysis, including pressure testing, delineated two gas-bearing reservoirs with 135 ft of net pay. The rig was demobilized, and rigless flow testing was set to take place. The company has a 63% interest in the well, with United Oil & Gas (20%) and Prospex Oil & Gas (17%) holding the remaining stakes.

  • USA

  • Eni began drilling a new well in United States waters off the north coast of Alaska. The company is working from an artificial island in the Beaufort Sea about three miles off Oliktok Point in the Arctic Ocean, with the well planned to extend more than six miles. The project could result in 20,000 B/D of oil production, the US Bureau of Safety and Environmental Enforcement (BSEE) said. BSEE employees are on site to ensure compliance with federal regulations and safety standards. Eni has existing production facilities on the island and at Oliktok Point. With its partner Shell, Eni plans to drill two exploration wells and potentially two sidetrack wells over the next 2 years.