AFRICA

Eni discovers supergiant gas field offshore Egypt
Eni has discovered the largest known gas field in the Mediterranean off the Egyptian coast, Reuters reported. The Italian major said the offshore Zohr Field could hold 849 Bcm (30 Tcf) of gas, covering an area of about 100 sq km (39 sq miles). “Zohr is the largest gas discovery ever made in Egypt and in the Mediterranean Sea and could become one of the world’s largest natural gas finds,” Eni said in a press release, adding that it has full concession rights to the area. The find is expected to have a major impact on the region’s economy and could potentially offer Europe new supply options, allowing it to lessen its dependence on Russian gas imports. The discovery was located at a depth of 1,450 m (4,757 ft). Eni plans to fast-track development of the site using existing infrastructure.

Cobalt plans to sell stake in Angolan blocks in $1.75 billion deal
Sonangol and Cobalt International Energy Inc. have signed a sale and purchase agreement for Sonangol to acquire Cobalt’s 40% participating interest in blocks 21/09 and 20/11 offshore Angola for $1.75 billion with an effective date of Jan. 1, 2015, according to a press release. This transaction is subject to customary Angolan government approvals, which are expected prior to year-end. The two companies aim to attain the final investment decision for the Cameia development in Block 21/09 by year-end 2015 to deliver first oil from Cameia in 2018. Notwithstanding Cobalt’s continuing as operator for an interim period, all costs going forward will be borne by Sonangol.

ASIA

Ocean Floor completes gas hydrate survey in Japan
Ocean Floor Geophysics Ltd. (OFG), in cooperation with Fukada Salvage and Marine Works Co. Ltd., has completed another high-resolution controlled-source electromagnetics (CSEM) survey of near-surface gas hydrates in Japanese waters, according to a news release. For the survey, OFG used the Scripps Institution of Oceanography Vulcan system. The survey comprised more than 670 line km (416 line miles) of high-resolution data collected from the Fukada vessel Shin Nichi Maru. A 3-D inversion of the CSEM data for an area of interest for this year’s survey has been completed. The contract for the 3-D inversion of the data for the entire 2015 survey area also has been awarded to OFG and will be completed in November.

AUSTRALIA

Buru makes oil find in Western Australia
Buru Energy’s Praslin 1 well in Western Australia’s Ungani oil field has hit oil, the company said. Wireline logs indicate a gross oil-bearing interval of about 23 m (75 ft) at the top of the Ungani Dolomite section in the well. The log response of the interval is similar to that seen over the interpreted highly productive zone at the Ungani oil field, but reservoir characteristics need to be confirmed by a production testing program, the company said. The company said it will plug the well and bring in a testing crew to run production testing. Buru Energy and Mitsubishi Corp. each have a 50% interest in the well.

EUROPE

Subsea 7 awarded contract offshore U.K.
Subsea 7 SA has been awarded a subsea, umbilical, riser and flowline contract by Maersk Oil with a value in excess of $150 million for the Culzean development, the company said. The ultra-HP/HT field, one of the largest gas discoveries offshore the U.K., is located in Block 22/25 of the central North Sea at a water depth of about 90 m (295 ft). The contract scope includes project management, engineering, procurement, construction and installation of a 22-in.-diameter 52-km (32-mile) gas export pipeline connected to the Central Area Transmission System and a 3.6-km (2-mile) pipe-in-pipe (10-in. outer pipe and 6-in. inner pipe) providing insulation for the transportation of the condensate to the infield floating, storage and offloading facility (FSO). The pipe-in-pipe will be laid with a 4-in. piggy-back line that will transport fuel gas to the FSO unit. Subsea 7 also will provide subsea structures, tie-ins to the Culzean platform facilities and precommissioning expertise. Offshore operations are scheduled to commence in 2017.

Maersk wants to shut oil installation in U.K. North Sea
Maersk Oil plans on seeking regulatory permission to shut its Janice installation, which produces about 7,000 bbl/d from three U.K. North Sea oil fi elds, as the Danish fi rm reviews its operations due to falling oil prices, Reuters reported. Maersk Oil said it would approach Britain’s Oil and Gas Authority for approval to stop production in either second-quarter 2016 or third-quarter 2016. As part of the regulatory procedure, Maersk Oil may submit proposals to tie one or some of the fields back to other installations to produce again. “In terms of what happens to the fi elds, that will be covered by our proposals in the plan that we submit to the U.K. Oil & Gas Authority,” a statement from the company noted. “Permission to cease production would then lead to a decommissioning program for the Janice FPU [floating production unit], and this would be submitted to the regulatory authorities.”

MIDDLE EAST

McDermott lands its largest Middle East contract
McDermott International Inc. has been awarded a lump sum contract by Saudi Aramco for brownfield work in various fi elds offshore Saudi Arabia, according to a press release. Work on the contract is expected to be executed through second-quarter 2018. The award follows the June 2015 signing of a second long-term agreement between McDermott and Saudi Aramco for engineering, procurement, construction and installation (EPCI) opportunities. The package of various EPCI projects that make up the lump sum award represent the largest single award for McDermott’s Middle East area operations in company history. Revenue from the fi xed-price award is included in McDermott’s third-quarter 2015 backlog.

Iran expects South Pars production to start in October
Iran plans to bring online two new gas operations in October after the OPEC member completes development of another section of the world’s largest gas fi eld, its oil minister said, according to a Reuters report. Iran and Qatar share the fi eld, which Iran calls South Pars and Qatar calls the North Field. The fi eld, located in the Persian Gulf, accounts for nearly all of Qatar’s gas production and about 35% of Iran’s. Development phases 15 and 16 of the South Pars Field are close to starting production and will be inaugurated by President Hassan Rouhani in October, Iranian Oil Minister Bijan Zangeneh said at a news conference, according to Shana, the oil ministry news agency. Production capacity from the two phases is expected to reach 48 MMcm (1.7 Bcf) within a month, Shana said. The phases also will produce 75,000 bbl/d of gas condensate.

SOUTH AMERICA

GeoPark strikes light oil in Colombia
GeoPark Ltd. has made an oil discovery on the Llanos 34 block in Colombia, the company said. GeoPark drilled and completed the Chachalaca 1 exploratory well to a total depth of 3,740 m (12,270 ft). A test conducted with an electric submersible pump in the Mirador Formation at about 3,538 m (11,606 ft) resulted in a production rate of about 1,100 bbl/d of oil of 30°API. The water cut was about 6%. Further production history is required to determine stabilized fl ow rates of the well and the extent of the fi eld. GeoPark is drilling the Jacana 1 exploration well and the Tilo 2 appraisal well, both in the Llanos 34 block. Testing of these wells was scheduled to be conducted in September. GeoPark, the operator, has a 45% working interest
in the Llanos 34 block.