International Highlights

SOUTH AMERICA

Total takes Uruguayan license

Total confirmed the award of a deepwater exploration license offshore Uruguay following the country's second bidding round held earlier this year by the national company ANCAP. The company was awarded Block 14 subject to further approval by Uruguayan authorities. The frontier block has a surface area of 6,690 sq km (2,583 sq miles) and is located in the Pelotas basin around 250 km (155 miles) offshore in 2,000 m to 3,500 m (6,562 ft to 11,483 ft) water depth.

Trinidad and Tobago interest grows

The government of Trinidad and Tobago has received more than 20 nominations for six deepwater blocks up for bid in its 2012 Deepwater Competitive Bidding Round, according to Energy Minister Kevin Ramnarine. Blocks TTDAA 1, TTDAA 5, TTDAA 6, and 25 (a) are located off the east coast, while Blocks TTDAA 28 and TTDAA 29 are off the northeastern coast. Bidding ends July 30. Successful bidders will be granted a contract for nine years with renewals for a term of 30 years from the date of the contract if successful discoveries are made.

To increase deepwater exploration, the government has introduced incentives for this round by reducing the petroleum profits tax from 50% to 35%. The definition of deep water was amended from 400 m (1,300 ft) to 1,000 m (3,280 ft) for cost recovery rates, which also were increased from 60% to 80%.

Presalt Iara western extension confirmed

Petrobras has confirmed the westerly extension of its Iara evaluation area in the presalt Santos basin offshore Brazil with well 3-BRSA-1032-RJS (3-RJS-697). Drilled in 2,150 m (7,054 ft) water depth, the well (informally known as Iara Oeste) is the third drilled in the discovery evaluation plan 1-BRSA-618 (Iara). It reached 6,050 m (19,850 ft) total depth (TD) and flowed good-quality oil samples ranging from 21? to 26? API in carbonate reservoirs. Petrobras operates the block with a 65% stake; BG Group holds 25% and Petrogal Brasil/Galp Energia holds the remaining 10%.

Fresh find north of Lula

A new oil accumulation has been revealed by Petrobras to the north of its giant Lula presalt field in the Santos basin in Block BM-S-42. Well 1-RJS-689A (1-BRSA-925A RJS), informally known as Dolomita Sul, was drilled in 1,747 m (5,732 ft) water depth. The company is the sole concessionaire of the block and said the new find "confirms the potential of the presalt region beyond the limits of the first discoveries (presalt cluster)."

The discovery was confirmed through oil sampling using wireline tests in carbonate reservoirs in presalt layers, situated at a well depth of 5,660 m (18,570 ft).

NORTH AMERICA

Spartacus prospect spudded in GoM

Anadarko Petroleum has spudded a deepwater exploration well at the Spartacus prospect in the US Gulf of Mexico (GoM). The well is targeting subsalt layers near the operator's Lucius megaproject, which is currently under development.

Nexen's Kakuna comes up dry

Nexen Inc. has drilled a dry hole with its Kakuna subsalt exploration well in Green Canyon Block 504 in the deepwater GoM. The company said the well did not encounter commercial hydrocarbons and will be plugged and abandoned. Kakuna was drilled to a depth of 9,235 m (30,300 ft) at a total cost of approximately US $120 million, net to Nexen ($80 million after-tax).

EUROPE

Wintershall scores on Skarfjell offshore Norway

Germany's Wintershall has made a discovery in the Norwegian North Sea on its operated Skarfjell prospect in Production License 418 and hinted that it could form the basis for a new area development hub. Wildcat well 35/9-7 found Upper Jurassic reservoir sands of very good quality containing light oil with a significant oil column.

Preliminary resource estimates range between 60 MMbbl to 160 MMbbl of recoverable oil. Commercial viability as well as potential further upside will need to be confirmed through appraisal drilling.

RWE makes 13 Bcm find near Heidrun

A gas discovery of up to 13 Bcm of recoverable gas has been made near the Heidrun field in the Norwegian Sea in 399 m (1,300 ft) water depth, according to the Norwegian Petroleum Directorate. RWE Dea Norge,

For additional information on these projects READ MORE ONLINE and other global developments: operator of Production License 435, is in the process of completing the drilling of wildcat well 6507/7-15 S, which will be permanently plugged and abandoned. The well was drilled about 3.5 km (2 miles) west of the 6507/7-14 S gas discovery made on the same license in 2010 and 15 km (9 miles) northwest of the Heidrun field in the Norwegian Sea.

The well was drilled to a vertical depth of 4,534 m (14,900 ft) and was terminated in the Tilje formation in the Lower Jurassic. Gas was proven in sandstones in the Garn and Ile formation (the Fangst Group) in a gross column of about 140 m (460 ft). Preliminary estimates place the size of the discovery at 4 Bcm to 13 Bcm of recoverable gas.

AFRICA

The 10-streamer seismic vessel Polarcus Nadia is carrying out a 3-D survey across Blocks 2512A, 2513A, 2513B, and 2612A in the Luderitz basin offshore Namibia. (Image courtesy of Polarcus Seismic Ltd.)

Wentworth completes Tanzanian test

Wentworth Resources has completed testing of its Ziwani-1 exploration well in the Mnazi Bay Concession in Tanzania. The well was spudded in February and drilled to 2,671 m (8,764 ft) TD. A gas-bearing zone was tested using drillstem equipment, with the zone flowing gas at an unstable rate of up to 7.2 MMcf/d. The tested zone is a new reservoir interval not previously encountered in the Mnazi Bay block.

Analysis of the test data indicates the potential resource volumes of the well are subcommercial, and the well has been plugged and abandoned. Although several sandstone intervals of Oligocene/Eocene age were penetrated deeper in the well, logging proved these to be water-bearing. The rig will now be moved to the Mnazi Bay gas field, where it will commence a three-well workover program.

Tullow hits oil onshore Kenya

Tullow Oil has encountered total net oil pay of more than 100 m (328ft ) across multiple reservoir zones at the Ngamia-1 exploration well onshore Kenya in Block 10BB. The well has been deepened from 1,041 m (3,416 ft) to 1,515 m (4,971 ft) and will continue to be drilled to 2,700 m (8,859 ft) TD. A sidetrack was required in this section, and following completion of logging and sampling in difficult hole conditions, a total pay count greater than 100 m was discovered over a gross oil-bearing interval of 650 m (2,133 ft). Oil samples with an API greater than 30° have been recovered to surface from the newly drilled section, with similar properties to the light waxy crude encountered in the upper reservoir zone. The Ngamia structure is the first prospect to be tested as part of a multiwell drilling campaign in Kenya and Ethiopia.

Serica under way with Namibian shoot

Transocean’s Deepwater Millennium drillship conducted a drill-stem test at the Barquentine-1 well in 1,585 m (5,200 ft) water depth. The 2012 testing program also includes drillstem tests in the Lagosta and Camar?o areas to the south of the Barquentine discovery area. (Image courtesy of Transocean Ltd.

Serica Energy has started its planned seismic survey over deepwater acreage covering 4,150 sq km (1,602 sq miles) offshore Namibia. The Polarcus Nadia seismic vessel arrived in Namibia in late April after a 5,070-km (3,150-mile) mobilization from Tanzania. The area to be surveyed comprises Blocks 2512A, 2513A, 2513B, and 2612A, making this one of the largest 3-D seismic surveys to be undertaken offshore Namibia. The survey is expected to take three months to complete. BP will earn a 30% interest in the license under a farm-out agreement with Serica by meeting the survey cost.

Latest Teak appraisal offshore Ghana noncommercial

Kosmos Energy's latest appraisal well offshore Ghana has been deemed noncommercial. The Teak-4A appraisal well in the West Cape Three Points Block, which was targeting the stratigraphic extension of the Teak discovery area, encountered thin, noncommercial reservoirs and is being plugged and abandoned. The company and its partners have begun integrating well results into the Teak field model to determine forward appraisal and development plans. The Atwood Hunter rig drilled Teak-4A to 2,850 m (9,348 ft) TD in 554 m (1,817 ft) water depth. Following the completion of operations at the Teak-4A well, the drilling rig will set gauges at the Teak-2A well and perform a drillstem test at the Akasa oil discovery in the same block.

Barquentine test boost for Cove

The latest flow test by Cove Energy and its partners offshore Mozambique has confirmed the need for fewer development wells than originally planned for the Barquentine field, which is part of the larger Prosperidade gas complex in the Rovuma Basin Area 1 block. The Bar-

quentine-1 test results at the northern end of the gas complex saw gas flow at a rate of approximately 100 MMcf/d, with minimal pressure drawdown, targeting a deeper Oligocene sand formation than the previously tested Barquentine-2 in March. The test data supports potential unconstrained flow rates of up to 200 MMcf/d, meaning fewer development wells will be needed, with the flow rates also demonstrating a high-permeability reservoir.

MIDDLE EAST/CENTRAL ASIA

ATP spuds Israeli deepwater well

ATP Oil & Gas and subsidiary ATP East Med B.V. have begun drilling the company's latest deepwater exploration well offshore Israel. The US independent is drilling the probe on its Shimshon prospect in the Levant basin using the Ensco 5006 drilling rig. The Shimshon well is being drilled in 1,104 m (3,622 ft) water depth, with a planned target depth of 4,500 m (14,764 ft). After spudding, several protective casing strings will be set until the well has penetrated the salt layer. A full set of electric logs will be run at TD to assist in evaluation of target reservoirs.

RWE Dea surveys Turkmenistan shallow waters

RWE Dea has started a program of seismic surveys in the Caspian Sea offshore Turkmenistan, with plans to spud an exploration well next year. The company is exploring geological structures in the Miocene and Pliocene at depths from 3,000 m to 6,500 m (9,843 ft to 21,326 ft), carrying out a 3-D transition zone seismic survey for the first time on the coast of Turkmenistan. The survey comprises the acquisition of 3-D data over the 400-sq-km (154-sq-mile) Block 23 and a 2-D program to assess further exploration potential of the block. The survey is taking place in less than 5 m (16 ft) water depth, where ocean-bottom cables with dual-sensor receivers (hydrophone and geophone) will be deployed on the seabed.

No laurels for Hardy as D9 relinquished off India

Hardy Oil and Gas has consented to the relinquishment of a deepwater frontier exploration block off the east coast of India. The company said it had received a proposal from KG-DWN-2001/1 (D9) license operator Reliance Industries Ltd. to relinquish the block because of its low hydrocarbon potential despite having made one gas discovery. "The proposal set out that following the integration of all geoscientific data and the results of the three exploration wells, including the KG-D9-A2 natural gas discovery ... further exploration or appraisal activity is unwarranted," the company said in a press release. Hardy's D3 exploration license in the Krishna Godavari basin remains the primary focus, and it "will continue to collaborate actively with partners Reliance and BP to optimize the exploration program for this highly prospective block," the company said.

PACIFIC RIM

CNOOC confirms large Bohai Bay oil find

CNOOC Ltd. has successfully appraised the Penglai (PL) 9-1 hydrocarbon-bearing structure following the discovery made in 2010. The appraisal confirmed that PL9-1 is a large oil field.The field is located in the Miaoxibei uplift in the eastern part of Bohai Bay in 25 m (83 ft) water depth. One of the appraisal wells, PL9-1-5, encountered oil pay zones with a total thickness of more than 200 m (656 ft), and the well was tested to produce around 700 b/d of oil. The company also made a successful discovery on the PL15-2 structure, located 8 km (5 miles) south of PL9-1. The discovery well, PL15-2-1, encountered oil pay zones with a total thickness of 83 m (272 ft), and the test indicated an average rate of more than 1,200 b/d.

Eni signs on for South China Sea block

CNOOC has signed a production-sharing contract with Eni China B.V. for deewater Block 30/27 in the South China Sea. Block 30/27, located 400 km (249 miles) off the coast of Hong Kong, covers a total area of 5,130 sq km (1,980 sq miles) and is one of the blocks CNOOC offered for foreign cooperation last year. According to the terms of the contract, Eni will conduct a 3-D seismic survey covering 2,000 sq km (772 sq miles) and will drill one exploration well on the block. All expenditures incurred during the exploration period will be carried by Eni, which will operate the block with a 100% stake. CNOOC has the right to participate with up to a 51% working interest in any commercial discoveries on the block.