NVentures Africa E&P News Update, August 2019

Exploration Drilling

AGM have announced a new discovery in Ghana recently. The firm, an amalgamation of investors from Aker, the old Minexco and local investors, have started a two well campaign on South Deepwater Tano. Kyenkyen-1X, has been announced as an oil discovery, assumed to be commercial oil in the Upper Cretaceous. To the north the Sankofa field has oil and gas in Cenomanian and Turonian sands. A second well Nyankom-1X is now being drilled, which looks to be south and on trend with the Pecan field. A number of exploration wells are planned in Ghana, by Springfield, Blue Star and Aker, with Vitol / Eni committing more wells in the latest bid round.

In Algeria ENI announced the Orb-1 well in license Ourhoud II was completed in June.

A number of drilling campaigns continue in Egypt. The main news unfortunately is the multi- TCF prospect Merak, Dana Gas, Block 6 N El Arish offshore, is dry. In the Gulf of Suez, Petrobel (ENI / EGPC) announced Sidri 23 as a major oil discovery in Block Abu Rudeis. ENI have also announced two new near field oil discoveries in the Meleiha DL on Basma and Shemy.

Transglobe reported NWG 38-D1, NW Gharib, spud in early June and is currently drilling.

In Nigeria, ENI is drilling the Ogbaimbiri Deep East well in OML 63.

No news on the Jamm 1XB well offshore Senegal. Total and Petronas appear to have re-spud the well, having hole problems as well as BOP test problems. The drillship appears to be still on prospect. Total are understood to have taken an option to use the same rig to drill one or two wells in C18 offshore Mauritania.

In South Africa Africa Energy have announced that the joint venture for Block 11B/12B has entered into a multi-well drilling contract with Odfjell Drilling for the Deepsea Stavanger semi-submersible rig. The drilling programme is due to start with the Luiperd Prospect in Q1 2020.


 

Appraisal and Development

In Algeria Pertamina said current production is 20 mbopd, which they plan to increase by 10% before the end of 2020.

In Angola, Agogo-2, an appraisal of the Agogo field discovered in March, was drilled by Eni 2.5km west of Agogo-1 and confirmed 650 mmboiip.

In Cameroon, Victoria Oil & Gas reported average gas production in Q2 2019 was 9.72 mmscfd, and 10.01 mmscfd in Q1. Perenco announced the re-entry of Oak South is expected to have begun in July by the Dagda rig and will be followed by a development well on the Oak field.

In Egypt Petrobel has discovered an oil leg of 35m of snadstone and 65m of limestone in the Abu Rudeis-Sidri area in South Sinai. They plan to make an expanded development plan, which includes drilling 10 wells in this otherwise gas prone area. ENI have also announced new production from SW Meleiha Development Lease and two new NF oil discoveries in the Meleiha DL on Basma and Shemy. SDX reported gross production for the first six months of 2019 was: Meseda and Rabul 4,300 bopd; NW Gemsa 3,900 boed. The Rabul-7 development well, West Gharib Concession in Egypt, was brought on stream at a stabilised rate of 415 bopd. Another development well is planned for H2 2019.

In Nigeria Lekoil report the Otakikpo Joint Venture (Lekoil and Green Energy International) has signed an MOU with Schlumberger and a subsidiary of a major oil company, which covers infrastructure sharing and development drilling of marginal field assets in OML 11. Up to 5 new wells will be drilled in Otakikpo. Eland Oil & Gas updated on some issues on Gbetiokun-3, OML 40, after a leak was located. The field is expected to be brought onstream in July with initial gross production of around 12,000 bopd from Gbetiokun-1 and -3.

Gbetiokun-4 will commence shortly. The firm has received approval from DPR for the development. NNPC has signed a $3.15 billion dollars Financing and Technical Services Agreement between Sterling Oil Exploration and other partners for the development of OML 13. First oil of around 7,00 bopd is expected by 1st April 2020.
ENI (NAE) – Abo-10 development well in OML 125 is still ongoing. 

Tullow reported oil production in West Africa averaged 88.7 mbopd in H1. Full year 2019 oil production guidance has been revised down to 89-93 mbopd.

Deals and Transactions

CNOOC appear to be moving on a number of farm-in deals in West Africa, in a bid to fill a drill queue over the next couple of years. In Guinea-Bissau CNOOC have joined Svenska and FAR on blocks 2, 4A and 5A, the Sinapa area. No details released, but CNOOC are understood to have taken 30 to 40% and will drill one or both of the Atum and Anchove prospects. A second firm West Africa Petroleum E&P is part of the deal, with no information released to date.

Qatar Petroleum (QPC) have continued their global relationship with Total, signing agreements for 25% participating interest in three offshore blocks in Kenya : L11A, L11B and L12. After regulatory approvals, Eni will have 41.25% (was 55%) and Total will have 33.75% (was 45%). QPC have taken positions with Total in South Africa and Guyana, as well as with Eni in Mozambique and Morocco and with ExxonMobil in Cyprus. Elsewhere in Kenya, Tullow has exited Block 12A onshore, and a 12 month extension has been given to Delonex to enable seismic reprocessing on 2D and fieldwork to be carried out.

In Angola, Vaalco has paid $4.5 million to the Angola National Agency of Petroleum, Gas and Biofuels as a final settlement payment for terminating VAALCO’s rights, liabilities and outstanding obligations for Block 5/06.

In Egypt United Oil and Gas (AIM:UOG) has proposed to acquire Rockhopper Egypt from Rockhopper Exploration for a headline consideration of US$16 million. The purchase includes a 22% non-operated interest in the Abu Sennan concession. The concession partners are Kuwait Energy (25% and operator), Global Connect (25%) and Dover Investments (28%).

Ghana reported the results of its first open Bid Round. ENI and its partner Vitol have been awarded rights to Block WB03. Eni will be the operator with 70% and Vitol will hold 30%.

Europa Oil and Gas have applied for a block offshore Morocco. In Senegal Woodside and partners have applied for an extension to the Rufisque Block around the SNE North and FAN discoveries, to give them time to evaluate them. In Gambia FAR and Petronas have extended A2 and A5 to August 2019, but then have the option to go into the First 2 years Extension on the PSC.

In South Africa, Azinam has entered into an agreement with Africa Oil Corp, where Africa Oil will acquire 20% participating interest in Block 3B/4B. After completion Azinam will retain 20% and Ricocure’s interest will remain unchanged at 60%.

Bid Rounds

Senegal is to launch an oil and gas Bid Round at the Africa Oil & Power 2019 Conference and Exhibition in October in Cape Town, South Africa. Two blocks are open in the south of the offshore basin (Casamance) and BP/Kosmos recently relinquished two blocks around the Yakaar / Turtue areas.

Ghana announced mediocre Bid round results, after what had started as a very hotly contested bid round. Exxonmobil and BP are understood to have withdrawn from deepwater bids. GNPC were awarded Block 1, ENI and Vitol Block 3 (and a local partner to be announced soon), and First E&P (Nigerian) Block 2. So Blocks 4, 5 and 6 appear to remain open.