CENTRAL ASIA/ PACIFIC RIM

ONGC inks deepwater, shale deal

Oil & Natural Gas Corp. (ONGC) has partnered with ConocoPhillips to explore and develop 19 deepwater oil and gas blocks offshore the east coast of India and to initiate cooperation in shale gas exploration through joint studies of opportunities in India, North America, and elsewhere. The first phase of the deepwater activity will involve evaluation of data across the Damodar, Cauvery, and Krishna-Godavari basins. India's recoverable shale gas reserves are estimated to be as much as 69 Tcf, with considerable upside potential.

Karoon spins bit in Browse basin

Karoon Gas Australia is under way with its 2012 exploration drilling campaign with the spudding of the Boreas-1 exploration. The proposed operation is to drill a 36-in. hole to the planned casing point, then run and cement the 30-in. conductor prior to drilling ahead in a 17½-in. hole. Boreas-1 is approximately 4 km (2.5 miles) south of Poseidon-1 in WA-315-P. The exploration program, operated by ConocoPhillips, is using the Transocean Legend semisubmersible rig for the entire campaign and is expected to continue through 2013. A minimum of five wells will be drilled.

Indonesia offers 19 blocks

Indonesia is offering 19 oil and gas blocks to investors in its latest licensing round, according to the country's Ministry of Energy and Mineral Resources. Five blocks will be offered in regular tenders and 14 blocks directly. Bids must be submitted by May 14 in the regular tender and by July 26 for the direct offering. The offshore West Pelikan, East Sokang, South East Mangkalihat, and East Aru blocks and the onshore/offshore South Sampang Block will be offered in the regular tender. The 15 blocks to be offered directly are the offshore Bengkulu l-Mentawai, Martin, Telen, East Sepinggan, and Aru blocks and the onshore Bireun Sigh, Bohorok, Mahato, Bukit Batu, South Link, Tatihu, Palangkaraya, Babai, and Udan Emas blocks.

MIDDLE EAST

Myra prospect lined up offshore Israel

The Noble Homer Ferrington deepwater semisubmersible rig is due to start drilling its next well in the Levantine basin offshore Israel in May. GeoGlobal Resources said the rig will, upon completion of its current operation, mobilize to the Myra prospect (Block 347) to spud an exploration well. As such, the Israel Petroleum Commissioner's Office has granted an extension for the start of drilling the first well on the Myra and Sara (348) licenses until June 15, 2012. GeoGlobal also added that in its Samuel license (388) offshore Israel, the company has completed the processing of 43 sq km (16 sq miles) of ocean-bottom cable 3-D seismic data and has filed a summary interpretation report with the Israel Ministry of National Infrastructure.

Miran West flows gas in Iraq

Heritage Oil has reported its Miran West-3 well in the Kurdistan Region of Iraq has flowed up to 17.5 MMcf/d of dry gas. Technical work is being undertaken to better understand the distribution of this gas-bearing reservoir interval using existing well data and recently processed 3-D seismic. Drilling will now appraise the main Jurassic reservoir intervals, which are the primary targets.

SOUTH AMERICA

Guyane drilling to resume mid-2012

Minority partner Northern Petroleum has confirmed operator Shell's plans to start exploration and appraisal drilling in mid-2012 on its deepwater permit offshore Guyane using the Stena DrillMax ICE drillship. Drilling of the well follows the Zaedyus oil discovery made in late 2011. In the Zaedyus well, 72 m (236 ft) of net oil pay was discovered in two turbidite sand systems in the first phase of drilling, proving that the Jubilee play is mirrored across the Atlantic from West Africa, according to Northern. The second phase of drilling will involve the spudding of a delineation well on the discovery, likely to be followed by an exploration well on one of the neighboring prospects in the area. Additional 3-D seismic also is planned for 2012.

Uruguay round attracts handful of bidders

Uruguay's national petroleum agency ANCAP has received 19 bids for eight of the 15 offshore blocks offered in its latest licensing round, with BP and BG Group the most active companies. There were competing bids from at least three companies in five of the blocks offered, the agency said. More than 50% of the area from the bidding process will see exploration work carried out by four new entrants to the Uruguayan offshore – BP (three blocks), BG (three blocks), and Total and Tullow Oil (one block each).

Already in the country's offshore sector are Petrobras, YPF, and GALP. Blocks were awarded in the three Uruguayan offshore basins: Oriental del Plata, Punta del Este, and Pelotas, with the last of particular interest to the new companies. After an assessment of the winning bids and formal approval from the Uruguayan government, ANCAP will sign 30-year production-sharing contracts with the winning companies by September.

AFRICA

Jodari joy for BG offshore Tanzania

BG Group and its partners have confirmed a fourth large gas discovery offshore Tanzania. Initial results from the Jodari-1 exploration well in Block 1 indicate gross recoverable in-place resources in the range of 2.5 Tcf to 4.5 Tcf of gas based on preliminary evaluation. A total 124 m (407 ft) of net pay was encountered across the stacked target horizons in high-quality reservoirs.

BG (60% and operator) and Ophir Energy (40%) have had exploration successes in all four wells so far drilled off Tanzania's coast, with mean total gross recoverable resources estimated at nearly 7 Tcf of gas. Jodari-1 is in approximately 1,150 m (3,770 ft) water depth and was drilled by the Deep Sea Metro I drillship to a total depth (TD) of 4,465 m (14,650 ft).

'Giant discovery' ups ante in Rovuma basin

Eni has increased its estimate of its gas reserves offshore East Africa's Mozambique to at least 40 Tcf after unveiling what it has described as a "new giant" discovery near its existing large Mamba finds in the prolific Rovuma basin. The Mamba North East 1 exploration well in the eastern part of Area 4 has increased the resource base by at least 10 Tcf, of which 8 Tcf of these are contained in reservoirs exclusively located in Area 4, according to the Italian major.

Mamba North East 1 is located 50 km (31 miles) off the Capo Delgado coast in 1,848 m (6,063 ft) water depth and reached 4,560 m (14,961 ft) TD. The discovery well encountered 240 m (787 ft) of gas pay in multiple high-quality Oligocene and Eocene sands. The new find further improves the potential of the Mamba complex in Area 4 to at least 40 Tcf of gas in place.

Anadarko to test northern extent of Prosperidade

Anadarko Petroleum plans to start testing the northern potential of its Offshore Area 1 permit offshore Mozambique following its latest appraisal further south in the block. The company said the successful completion of its Barquentine-4 appraisal well completed the drilling portion of its planned appraisal program in the discovery area. The well in the Rovuma basin encountered approximately 160 m (525 net ft) of natural gas pay and was the partnership's ninth successful well in the discovery complex (now renamed Prosperidade).

The complex covers the Offshore Area 1 block, including the Windjammer, Barquentine, Lagosta, and Camarao discoveries, as well as the five subsequent appraisal wells. Prosperidade is estimated to hold recoverable resources between 17 Tcf and more than 30 Tcf of gas. The Barquentine-4 well is in approximately 1,650 m (5,400 ft) water depth.

Extended Enyenra reserves add to Tullow's TEN plans

The latest deepwater appraisal well offshore West Africa's Ghana has helped to firm up plans by operator Tullow Oil and its partners for a new FPSO development. The operator confirmed that its Enyenra-4A appraisal well in the Deepwater Tano license had successfully encountered oil in very good-quality sandstone reservoirs, expanding the areal extent of the TEN (Tweneboa, Enyenra, and Ntomme) complex. Tullow and its partners are expected to choose a winning bid for the supply of the FPSO in 2Q 2012. Results of drilling, wireline logs, fluid samples, and pressure data show that Enyenra-4A has intersected 32 m (105 ft) of net oil pay. Pressure data from the oil leg have demonstrated the oil is in static communication with oil seen in nearby wells and indicate a continuous oil column of approximately 600 m (1,969 ft).

NORTH AMERICA

Vicksburg/Appomattox hub sanction by 2014

Shell and its Canadian partner Nexen are pushing on with their conceptual development plans for a new hub floating production facility in the US Gulf of Mexico following their latest drilling success. Nexen, which holds a 20% stake in the Appomattox discovery, said evaluation of its recent drilling program on the northeast fault block of the Appomattox structure had demonstrated contingent recoverable resources of approximately 215 MMboe (50 MMboe net to Nexen), with a range of 120-370 MMboe (25-90 MMboe net) of light oil.

As well as its 20% stake in Appomattox, Nexen also holds a 25% interest in the nearby Vicksburg discovery, where Shell holds the remaining interests as operator. Concurrent with its appraisal program, the company is evaluating development concepts and scenarios that could result in project development sanction in 2014, the company said.

EUROPE

Valiant's fingers crossed for Handcross

A frontier exploration well west of Shetland has been lined up for drilling early next year by UK independent Valiant Petroleum. The operator has booked Stena Drilling's Stena Carron drillship to spud a wildcat on its Handcross prospect in Block 204/18b near the deepwater Foinaven and Schiehallion fields in the UK Atlantic Margin. According to Valiant, based on the Stena Carron's current schedule, the rig slot is expected to fall within 1Q 2013. The company also has also secured a six-month extension to its initial exploration term from the Department of Energy and Climate Change to facilitate this timetable and is looking to establish gross prospective resources estimated internally at 180 MMboe in the block, where it holds a 90% operated interest.

Repsol takes control in Irish Atlantic Margin

Providence Resources has handed over operatorship of a frontier block off the southwest coast of Ireland to block partner Repsol. The Spanish operator has taken over operatorship of License 11/11, which lies 250 km (155 miles) offshore in approximately 1,000 m (3,000 ft) water depth. The license was awarded to Providence (40%), Repsol (40%), and Sosina (20%) as part of the 2011 Irish Atlantic Margin Licensing Round. The transfer of operatorship has been approved by the Irish government.

Providence and its partners are investing more than $500 million in the drilling of a number of exploration and development wells in six different basins, represent-f- g the largest drilling campaign ever carried out shore Ireland.