Africa (Sub-Sahara)

  • Eni announced an oil discovery in Block 15/06 offshore Angola in the Kalimba exploration prospect that is estimated to contain between 230 and 300 million bbl of light oil in place. The Kalimba-1 NFW well, which led to the discovery, is located approximately 150 km off the coast. The well was drilled in a depth of 458 m and reached a total depth of 1901 m. The data acquired in the well indicate a production capacity in excess of 5,000 B/D. The discovery creates opportunities for exploration in the southern part of Block 15/06, so far considered mainly gas-prone. The joint venture, with stakes held by Eni (operator, 36.8421%), Sonangol (36.8421%), and SSI Fifteen Limited (26.3158%), will work to appraise the updip of the discovery and will begin studies to fast-track its development.

  • Asia Pacific

  • Shell announced that its affiliates Shell Integrated Gas Thailand and Thai Energy Company have completed the sale of their 22.2222% interest in the Bongkot fields and adjoining acreage offshore Thailand to PTT Exploration & Production Public Company Limited (PTTEP) and PTTEP International Limited, a wholly-owned subsidiary of PTTEP, for a transaction value of $750 million. This sale, which consists of Shell’s stake in Blocks 15, 16, 17 and Block G12/48, was announced in the first quarter of this year. Bongkot is located in 80 m of water offshore Thailand and is the largest gas field in the Gulf of Thailand. PTTEP, Thailand’s state-owned oil company, has been the operator of Bongkot for over 20 years and, with completion of this transaction, increased its stake in the field to 66.6667%. The remaining 33.3333% belongs to Total.

  • Latin America-Caribbean

  • Kosmos Energy will abandon one of its wells offshore Suriname after it failed to find oil. The company announced that its drilling program in Block 45 will remain unchanged, given the independent nature of the prospects. The Anapai-1A exploration well encountered high-quality reservoirs but did not find hydrocarbons. Earlier this year, the company announced that the design for the well had to be reconfigured and that it had spent about $20 million until then on drilling the well. Kosmos owns a 50% stake and is the exploration operator of Block 45, with Chevron holding the remaining interest. The company said drilling will proceed as planned in Q3 to test Pontoenoe, the first of up to three independent prospects in Block 42, also offshore Suriname. Kosmos, Chevron, and Hess each own a third of Block 42.

  • Middle East-North Africa

  • Oryx Petroleum announced an update on the drilling of an appraisal well targeting the Tertiary reservoir at the Banan field in the Hawler license area in the Kurdistan region of Iraq. In late May and early June, the Banan-3 well was drilled to a depth of approximately 500 m and completed in open hole, partially penetrating the reservoir. Oil production from the well has been enabled by the use of a jet pump and has averaged approximately 1,500 B/D. The company intends to continue the extended production test of the well to assess its performance, identify options for increasing production, and obtain information to refine plans for additional appraisal of the reservoir. On the basis of results from the Banan-3 well, the company expects that, in its reserves report for year-end 2018, oil reserves will be attributed to the Banan Tertiary reservoir.

  • Northern Europe

  • The Norwegian Petroleum Directorate has granted Spirit Energy Norge AS a drilling permit for Well 7322/7-1. The well will be drilled from the Island Innovator drilling facility after completing the drilling of appraisal Well 6506/9-4 A for Spirit Energy. The area in the license consists of Block 7322/7. The well will be drilled approximately 70 km west of 7324/8-1 and approximately 110 km northeast of the Johan Castberg field. The production license represents the 23rd licensing round on the Norwegian shelf. This is the first well to be drilled in the license. Spirit Energy is the operator, with an ownership interest of 60%, and Aker is the licensee, with an ownership interest of 40%.

  • Lundin Norway AS has been granted a drilling permit for Well 6307/1-1 S to be drilled from the Leiv Eiriksson drilling facility after completing the drilling of appraisal well 7220/11-5 S. The area in the license consists of most of Block 6307/1 and Block 6307/4, as well as the south-eastern part of Block 6407/10. The well will be drilled approximately 29 km southeast of the Fenja discovery and approximately 39 km south of the Njord field. The permit is contingent upon the operator securing all other permits and consents required by other authorities prior to beginning drilling activities. Lundin Norway is the operator, with an ownership interest of 40%. The other licensees are VNG Norge (20%), Petoro (20%), and Equinor Energy (20%).

  • Equinor Energy has completed the drilling of Well 34/8-19 S. The well was drilled on the northern side of the Visund field in the northern part of the North Sea. The objective of the well was to prove petroleum in Lower Jurassic reservoir rocks in the Cook formation, and in Upper Triassic reservoir rocks in the Statfjord group. Well 34/8-19 S encountered approximately 90-m-thick rocks in the Cook formation, of which 22 m were effective reservoir, consisting of sandstone with mainly moderate to good reservoir quality. Because of technical drilling challenges, the well was not drilled to the second exploration target in the Statfjord group. The well was drilled to a measured depth of 6100 m, a vertical depth of 3137 m below the sea surface, and was terminated in the Amundsen formation. Water depth is 378 m.

  • Russia-Caspian-Central Asia

  • BP and its partners in the Shah Deniz consortium announced the startup of the Shah Deniz 2 gas development in Azerbaijan, including its first commercial gas delivery to Turkey. The BP-operated $28-billion project is the first subsea development in the Caspian Sea. It is also the starting point for the Southern Gas Corridor series of pipelines that will deliver natural gas from the Caspian Sea direct to European markets. Shah Deniz is the largest gas discovery ever made by BP. The first phase of field development, Shah Deniz 1, began production in 2006 and currently supplies gas to Azerbaijan, Georgia, and Turkey. Shah Deniz 2 is BP’s largest new upstream project in 2018. Together with output from the first phase of development, total production from the Shah Deniz field will be up to 26 billion m3 per year of gas and up to 120,000 B/D of condensate.