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Recent Articles

French Oil Industry Backs Biofuels Plan
Saipem to Convert Saudi Crude Line to Gas
Mauritania, West Africa's Newest Large Oil Producer
African Has Become a Key Oil and Gas Producing Region
Major Oil Discovery Reported in Western Iran
Petrobras, PDVSA to Build Heavy-Oil Upgrader
Calvalley Increases Oil Production; Yemen Block 9

Archives

World Exploration Results in 2003
Chad-Cameroon Oil Line Flowing with World Bank Help
Talisman Reports Malaysian Discovery
Niko Resources, India
Canadian Natural Resources, Côte d'Ivoire, Western Africa
Nigerian Government Offers Additional Blocks Offshore
BP Proceeds with Hoi Thach Gas Development, Offshore Vietnam
Iran Tender Process Continues
EnCana Targets Squirrel Prospect in North Sea
First Calgary Petroleum's Algerian Discovery
British Gas Sells Interest in Kazakhstan Field
Kudo Gas Field Remains Prospective, Africa

French Oil Industry Backs Biofuels Plan

The French oil and gas industry has indicated it will support the government's target to increase the biofuels content of gasoline and diesel to 5.75% from its current 1.2% by 2008. A further target is to increase the biofuels share to 7% by 2010 and 10% by 2015.

Source: Oil and Gas Journal December 12, 2005

Saipem to Convert Saudi Crude Line to Gas

Saudi Aramco has let a contract to Saipem SPA to convert a crude oil pipeline in Saudi Arabia to natural gas service. The line has been operating at half its 5 million b/d capacity. The system carries crude from near Abgaq to Red Sea export facilities near the industrial city of Yanbu, where a major expansion of petrochemical manufacturing capacity is underway. Most Saudi crude is exported through Ras Tanura on the Persian Gulf.

Source: Oil & Gas Journal, December 12, 2005

Mauritania, West Africa's Newest Large Oil Producer

Mauritania is expected to join the group of West African oil producers in February 2006 when the Chinguetti offshore oil discovery, made by the Woodside group in 2001, will commence producing 75,000 barrels per day. Woodside has made several other offshore oil discoveries including Tiof, Banda, Pelican, and Tevet.

Source: World Petroleum, October 2005

African Has Become a Key Oil and Gas Producing Region

Africa's oil production reached 9.3 MM bo/d in 2004 with Nigeria, Algeria, Angola and Libya in that order being the leading producers. Africa's remaining reserves at the end of 2004 were 105 billion barrels.

Gas production was 21.4 billion cf/d in 2004 with Algeria, Nigeria, Egypt, and Libya being the leading producers. Africa's remaining gas reserves at the end of 2004 were 477 Tcf.

Africa's remaining recoverable reserves at the end of 2004 comprised 8.3 per cent of the world's total for crude oil and 6.9 per cent of the world's total for natural gas.

Source: World Petroleum, October 2005

Major Oil Discovery Reported in Western Iran

Norsk Hydro AS and Lukoil Overseas Holding Ltd. reported a major oil discovery on the Anaran exploration block in Ilam Provine near Deloran in Western Iran.

Located in the Zagras belt, Iran's most productive petroleum province, the 3500 sq. km. Anaran block contains four prospects: Azar, Changuleh-West, Dehloran and Musian.

Norsk Hydro specialists said Anaran could be producing as much as 100,000 b/d of oil by 2010.

Source: Oil & Gas Journal, December 19, 2005

Petrobras, PDVSA to Build Heavy-Oil Upgrader

Brazil's state run Petroleo Brasileiro SA (Petrobras) and Venezuela's Petroleos de Venezuela SA plan to jointly build a heavy oil upgrading plant in Venezuela's Orinco belt. It would convert the heavy oil into crude that can be processed at a refinery to be built as another joint project in northeastern Brazil, said Petrobras International Director Nestor Cervero.

The upgrader would treat production from a jointly operated field that is to start up at a rate of as much as 200,000 b/d in 2009, Cervero said.

Source: Oil & Gas Journal, December 19, 2005

Calvalley Increases Oil Production; Yemen Block 9

Calvalley Petroleum Inc. of Calgary has started production from the Hiswah oil field in the Malik Block 9 in Yemen. Calvalley is the operator and has 50% working interest.

The Hiswah-6 horizontal well which began production December 10 was producing 3200 b/d at the 2005 year-end and 5000 bd in early January. The oil is currently being trucked to the delivery terminal.

Four other Hiswah wells are expected to be brought on stream during the next few months. The company expects production to average 10,000 b/d from the block following de-bottlenecking of the unloading facility. A pipeline is being built which is expected to be operational in the fourth quarter of 2006.

Source: Daily Oil Bulletin January 16, 2006

The AAPG Explorer reported that international exploratory drilling achieved a 40% success ratio in 2003, making it a good year. A number of good discoveries were made in established producing areas such as in Poland and the Cooper Basin in Australia. IHS senior editor Ken White observed drilling rates were down but operators appear to have been more selective in their drilling. Using more 3D seismic contributed to the improved success ratio.

IHS Energy's Global E & P Reporting Service whose editors cover more than 200 countries, provided information on major discoveries. It reported as follows:

Africa

Angola - Some 10 deepwater discoveries were made off Angola in 2003. One of the more important was the Total - operated Gindingo 1 well which tested 7400 b/d and 5700 of light oil from two separate zones. It is located in 1445 meters of water and the structure could extend into a neighboring block operated by CNRL.

Nigeria - In October the Nisko 1 wildcat operated by ChevronTexaco, was confirmed an oil discovery. It reportedly encountered a substantial amount of net hydrocarbon pay in multiple zones, one of which was tested at 6500 b/d of high quality crude oil. Pre-drill recoverable oil estimates were in the neighborhood of 300 mmbo.

Australia

BHP - Billiton operated three Carnarvon Basin oil strikes in 2003 having combined recoverable oil in excess of 120 mmb.

Latin America

Brazil - Petrobras had a banner year, making a 14.8 tcf discovery in the Santos Basin. The company also appears to have discovered long-sought-after crude oil both in the Sergipe/Alagoas Basin and Espirito Santo Basin. In the former it reportedly found 150 mmb of 42 degree API oil and in the Espirito Santo Basin 450 mmbo of 40 degree API oil. Petrobras also found another 2.95 billion barrels of heavy oil in the Campos Basin in several discoveries.

Trinidad - In October it was confirmed that the BHP - Billion - operated Howler 1 wildcat was a gas and condensate discovery. It is reported to have tested 18 mmcf/d of gas and 137 bc/d of condensate from an Upper Cretaceous Noparima Hill Formation.

Venezuala - In November, PDVSA completed the Tacata 2X wildcat in the Maturin sub-basin as an oil and gas discovery after conducting extensive tests on the Capaya and Carapita formations. Venezuela's Vice Minister of Hydrocarbons and PDVSA director Luis Vierma, stated that the well is a major oil and gas discovery. It is estimated to contain 236 mmb of light and medium oil and up to 3 tcf of gas.

Far East

China - The country had a particularly good year, reporting nearly 40 potentially commercial discoveries both onshore and off. The HUO 10 with 600 mmb oil in place, is described as a major breakthrough in the foreland belt along the southern margin of the onshore Junggar Basin. Maoba 1 in the onshore Sichuan Basin is deemed to have established reserves of 1.1 tcf of gas. Also in the onshore Sichuan Basin the well Kashagan SW 1 tested 2100 bo/d on a 32/64 inch choke from a Carboniferous interval.

Europe

Russia - While the vast majority of drilling remains onshore, Russia made two important offshore discoveries. In the Caspian Sea, Lukoil recorded its fourth consecutive strike in the Severny license with the Sarmatskaya 1 wildcat, which tested oil and gas from three Jurassic intervals. Pre-drill reserves were estimated to be 879 mmboe. Gazprom's subsidiary, Gasflot, tested 13.7 mmcf/d of gas from the Cenomanian reservoirs in the Obskaya 1 well. Reserves are estimated at 1.7 tcf.

Norway - Marathon announced in April that it had discovered a 47-meter gross oil column in the Heimdal Formation 25/4 - 7 (Kneler) exploration well. The well was the first of three designed to evaluate the West Heimdal area.

Poland - 2003 may prove to be a landmark year for PGNG, as in its Gorzow Wielkopolski - Miedzychod 69/98/p license it confirmed two further discoveries in an accumulation that has estimated in-place oil of 730 - 1100 mmb with 20 - 50 percent recoverable.

Publication Date: February 2004
Source: AAPG Explorer

A Chad-to-Cameroon oil pipeline, the first oil line to ever be partly financed by the World Bank, is now in service. Esso Exploration and Production Chad, Inc., a subsidiary of ExxonMobil Corp. began filling the Chad-Cameroon oil line in mid July 2003. The pipeline was completed a year ahead of schedule. The line pumps oil 1,070 kilometres from the Doba basin oilfields in southern Chad to storage vessels located offshore Kribi, Cameroon, in the Gulf of Guinea. In hopes of alleviating poverty in both countries, the World Bank financed three per cent of the line and will monitor the line's revenue. The scheme has been touted as a model for energy products in developing countries to ensure citizens benefit from production of their natural resources. Chad's parliament has passed legislation calling for 80% of the oil revenue to go to the country's health, education and infrastructure. The World Bank says over the next 25 years the line could yield $2 billion revenue for Chad, where the average income of its seven million people is less than $1 per day. Development of one of three oil fields has been completed, while operations are continuing on the remaining two fields. When completed, production of 225,000 bbls per day is anticipated from the wells and facilities in these fields. Consultation on the line, which began in 1993, has provided the opportunity for tens of thousands of citizens to have input into the planning. The pipeline's consortium is comprised of subsidiaries of ExxonMobil, which has 40% interest, Malaysian state energy company Petronas, with a 35% interest, and ChevronTexaco with a 25% interest.

Publication Date: July 30, 2003
Source: Nickle's Daily Oil Bulletin

Talisman Reports Malaysian Discovery

Talisman Malaysia Ltd. reported its South Angsi No. 1 well discovered oil in Block PM-305 in two reservoir intervals, which will result in Talisman's second production - sharing contract in Malaysia. The well flowed on test at a rate of 8,500 bopd of 41° API gravity oil from 20m of net pay. A lower interval with 15m of net pay flowed on test at a rate of 2,800 bopd of 48° API gravity oil. North and South sidetracks penetrated oil-water contacts resulting in an estimated 25 million bbl of proved and probable reserves. Interests in the block are Talisman 60% and Petronas 40%.

Publication Date: June 2, 2003
Source: Oil & Gas Journal

Niko Resources, India

Niko Resources of Calgary, Canada and Reliance Industries made another important discovery in the Krishna Godavare basin on Block D6, 16 miles off the East Coast of India. The D6-D1 well was drilled in 4,200 ft. of water to a 9,046 ft. TD and encountered 330 ft. of net gas pay. The operator has increased its estimate of initial gas-in-place for its Block D6 discoveries to 10.5 Tcf. Based on six wells drilled in the block.

Publication Date: June 2003
Source: World Oil

Canadian Natural Resources, Côte d'Ivoire, Western Africa

Canadian Natural Resources discovered oil on the Acajou South prospect, 15 mi. offshore Côte d'Ivoire in 3,050 ft. deep water. Well Acajou - 1x reached 8,027 ft. TD and encountered a gross oil column of over 250 ft. A 45 ft. interval of sands at the top of the oil column tested at an average rate of 3,500 bopd. The oil is 33° API, similar to that found in the Espoir field, which lies northeast of the discovery. CNR has 66.0%, with Tullow Oil and Petroci holding 24.0% and 10.0%.

Publication Date: June 2003
Source: World Oil

Nigerian Government Offers Additional Blocks Offshore

Nigeria will offer 22 offshore blocks for bidding in the second round, according to Special Advisor to the President on Petroleum Matters, Dr. Rilwanu Lukman, who disclosed this at the 2003 Offshore Technology Conference in Houston. In addition, 26 blocks in the Gulf of Guinea will be put up for bidding at the same time. Lukman further stated that the nation's reserves now stand at 33 billion barrels of oil and 19 Tcf of gas, up 27% since 1998 mostly due to deepwater discoveries.

Publication Date: June 2003
Source: World Oil

BP Proceeds with Hoi Thach Gas Development, Offshore Vietnam

BP is preparing a platform-based development of its giant Hoi Thach gas and condensate field in the Nam Con Son basin off Vietnam.

The company favored one, or possibly two conventional steel platforms with liquid stripping facilities and a floating storage and off-loading vessel for liquid drop-out at an offshore terminal. Frontier Engineering, a Wood Group company has just completed a conceptual study for the field.

Currently certified gas reserves in block 5-2 are 2.4 trillion cubic feet plus an additional 90 million barrels of condensate. However, industry believes the field contains closer to 4 trillion cubic feet of gas. Production per well ranges to 71 million cubic feet per day of gas and 7,250 barrels of condensate.

The field was initially discovered in 1995 and is expected to ultimately be produced via the Nam Con Son export pipe line. The 399 kilometre trunk line, reportedly the world's largest two phase pipeline, was designed with spare capacity in order to permit a tie-in from the 5-2 block.

BP and national oil company PetroVietnam are partners in Block 5-2 with BP holding 75.9% interest and PetroVietnam 24.1%.

Publication Date: March 2003
Source: Upstream - The International Oil and Gas Newspaper

Iran Tender Process Continues

Iran's state-owned Pars Oil & Gas Company (POGC) has approved financing terms on a $350 million U.S. drilling job at Phases 9 and 10 of the South Pars gas project and is hoping a new prequalification round will illicit more interest than its first tender last year. The drilling job which POGC itself estimates will cost about $300 million U.S. involves 22 directional development wells with a maximum of 62 degrees deviation and two vertical wells.

Two jack-up rigs will be required and the contract will cover all associated services including engineering, procurement, logistics, coring, perforating and testing. Under the new round which includes response to concerns raised earlier by prospective bidders, the National Iranian Oil Company (NIOC) will be involved in arranging financing and "securing the final approval for insurance coverage from respective export credit agencies". An official said NIOC in effect will be responsible for providing guarantees for loans arranged by contractors through their respective state insurance agencies.

The two South Pars phases are to produce 2 billion cubic feet per day of gas for domestic consumption and 80,000 barrels per day of condensate for export. Some sulphur and LPG will also be produced for export.

Publication Date: March 2003
Source: Upstream - The International Oil and Gas Newspaper

EnCana Targets Squirrel Prospect in North Sea

EnCana in conjunction with its partners Roc Oil of Australia, Bow Valley and other international companies, is evaluating the Squirrel prospect with an estimated potential of 100 million barrels. The prospect operated by EnCana is in 114 metres of water, is located 17 kilometres east of the Buzzard Field and would be developed as a satellite to the Buzzard development.

Publication Date: March 2003
Source: Upstream - The International Oil and Gas Newspaper

First Calgary Petroleum's Algerian Discovery

First Calgary Petroleum Ltd. recently reported a promising gas discovery in the Ledjmet block in Algeria. The discovery produced at a cumulative rate of 44,330 barrels of oil equivalent per day of natural gas and natural gas liquids from a number of separately tested zones. This is the second well the company has drilled in the vicinity. The first well produced 8,911 barrels of oil equivalent per day of gas and condensates. Further drilling will be undertaken in May.

Martin Layzell, vice president of exploration, said the discoveries are close to existing liquids and natural gas pipelines.

Publication Date: March 2003
Source: Calgary Herald

British Gas Sells Interest in Kazakhstan Field

British Gas has sold its one sixth interest in the giant Kashagan oil development to China's CNOOC and Sinopec for $1.23 billion U.S. The production sharing agreement (PSA) includes the Kashagan oilfield, the Kalamkas oil discovery, and the Kairan, Aktote and Kashogan SW prospects in Kazakhstan. The PSA is estimated to include 13 billion barrels of oil equivalent and has seen considerable appraisal work over the past two years.

The value of the property appears to have doubled since earlier dispositions were made by BP and Statoil in mid 2001.

Analysts said the move reduces the company's exposure to heavy capital expenditures in the former Soviet republic and channels cash from a long-term project to short-term production growth.

Publication Date: March 2003
Source: Upstream - The International Oil and Gas Newspaper

Kudo Gas Field Remains Prospective, Africa

Namibian President Sam Neijoma Iyambo, while speaking at the recent 7th Annual Offshore West Africa Conference in the country's capital Windhoek, said that 168 fields are under consideration for development in Southern Africa.

Minister of Mines and Energy, Dr. Nickey told delegates the giant offshore Kudu gas field, which Shell walked away from in 2002, will be developed. Nickey revealed that both remaining partners, Chevron Texaco and Energy Africa, are intensely studying the results of the 2001 drilling program in Kudu.

Publication Date: March 2003
Source: Upstream - The International Oil and Gas Newspaper

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