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Wednesday, 04 October 2017 09:52

No bidders for Pemex's Ayin-Batsil farm-out

Petróleos Mexicanos (Pemex) did not receive any offers to partner up for its shallow water Ayin-Batsil area in the Gulf of Mexico in a live auction held by the country’s National Hydrocarbon Commission (CNH) this morning (4 October). 

Ayin-Batsil. Map from Pemex.

CNH declared Ayin-Batsil as abandoned just after 9 a.m. CST at the live auction. Pemex is still hoping to gain partners in two onshore fields later today.

“This will be a lesson for Pemex in terms of adjusting their expectations to what the market is willing to pay. Trion vs Ayin-Batsil - $$$,” Pablo Medina, senior analyst at Wood Mackenzie Latin America upstream research tweeted this morning.

Pemex was looking for a 50:50 partnership for Ayin-Batsil, with the partner taking operatorship.

Ayin-Batsil is off Tabasco state in the eastern province of Salina del Istmo in the Campeche basin, and consists of an area of 1096sq km, in 80-170m water depth.  

The area is expected to hold about 359 MMboe of undeveloped 3P reserves of heavy crude.

According to Pemex, Ayin is the most relevant field with about 60% of total 3P reserves, and Baytsil with about 20%.

The Alux and Makech fields could potentially be developed as subsea tiebacks to Ayin-Batsil.

There are three exploratory opportunities that could offer about 224 MMboe of prospective resources, which include Ichal with 73 MMboe; Ken with 81 MMboe; and Chelpul with 70 MMboe.

Between 1988 and 2015, there have been 10 wells drilled in Ayin-Batsil, consisting of eight wildcats and two appraisal wells.

In December 2016, Pemex held its first-ever farmout opportunity, with BHP Billiton winning the bid to develop the Trion deepwater field. The two made it official several months later in March.

Read more:

The fruits of Mexico's labor

Pemex, BHP Billiton make Trión pact official

Trión first oil set for 2023

Tuesday, 03 October 2017 08:01

Aker BP in Frigg Gamma Delta hit, miss

Aker BP has encountered further oil at the Frigg Gamma Delta discovery offshore Norway, but came up dry at an adjacent wildcat, according to the Norwegian Petroleum Directorate (NPD).

Frigg Gamma Delta. Map from NPD.

Aker BP completed the drilling of appraisal well 25/2-19 S, and wildcat well 25/2-19 A with the Maersk Interceptor ultra harsh environment jackup. Both wells are in production license 442 in the central North Sea, some 12km northeast of the Frøy field and 200km northwest of Stavanger.

The appraisal well encountered an oil column of 13.5m in sandstone with good reservoir quality, after drilling to vertical and measured depths of 2212m and 2325m below the sea surface, respectively. The oil/water contact was encountered near 1950m below the sea surface. The well was terminated in the Sele formation from the Palaeocene Age.

The objective of well 25/2-19 S was to delineate the oil discovery in the Delta structure towards the north and examine the mobility of the oil in the Frigg formation, according to the NPD.

Aker BP is currently analyzing data to confirm the resource estimate. Prior to drilling the appraisal well, Frigg Gamma Delta’s (well 25/2-10 S) was approximately 10 MMcum of recoverable oil, and 2 Bcm of recoverable gas.

The nearby wildcat well 25/2-19 A, has been classified as dry. The well’s primary and secondary exploration targets were to prove petroleum in Middle Jurassic reservoir rocks (Hugin and Sleipner formations). It was drilled to vertical and measured depths of 3989 and 4155m below the sea surface, respectively. The well was terminated in the Sleipner formation. Water depth at the site is 120m.

In the Hugin and Sleipner formations, multiple sandstone layers were encountered at a total of about 50-60m in each of the formations with reservoir quality varying from poor to good; in addition to traces of petroleum in some of the sandstone layers in the Sleipner formation.

The wells, which mark the sixth and seventh exploration wells in PL 442, have been permanently plugged and abandoned.

Aker BP is the operator of PL 442 with 90.26% stake. Partner Lotos E&P Norge holds the remaining 9.74%.

The Maersk Interceptor will now proceed to drill development wells on the Aker BP-operated Tambar field.

At the beginning of the year, the Tambar license approved a development project that will add two production wells to the field, plus modify facilities to provide gas lift from Ula field to new and existing Tambar wells. Drilling will also test the oil-water contact in the northern part of the field, and consequently contribute to increased understanding of the Tambar reservoir.

Read more:

Aker BP targets PDO trio this year

Friday, 29 September 2017 09:56

Mexico reveals Round 3

Mexico’s National Hydrocarbons Commission (CNH) has issued a call for bids for the country’s Round 3, consisting of 35 shallow water areas in the Gulf of Mexico.

Image from iStock.

The 35 areas cover some 26,265sq km, and have a total of about 1.988 MMbo of prospective resources, with a remaining volume of 290 MMboe. They are to be developed through shared production contracts.

Round 3 includes 14 areas in Burgos, 13 area in Tampico-Misantla-Veracruz, and eight areas in Cuencas del Sureste.

The Burgos blocks cover an area of 8424sq km and hold an estimated 579 MMbbl.

The 13 blocks in Tampico-Misantla-Veracruz cover 12,493sq km, with an estimated 1.217 billion boe of prospective resources, in addition to a remaining volume of 193 MMboe.

The Cuencas del Sureste blocks cover 5348sq km, with prospective resources estimated at 192 MMboe, with a remaining volume of 96 MMboe.

“The bidding process of the shallow water contract areas of this Call makes it possible to ensure that the operating companies have proven experience and capacity for the optimum development of oil projects. To this end, various technical, financial, enforcement, safety, health and environmental protection requirements were defined, consistent with the highest industry standards at the international level,” the CNH said.

Earlier this week, Mexico signed 10 exploration and extraction contracts with bid round winners from this June's shallow water Round 2.1. The round offered a total of 15 blocks. 

The country’s first shallow water round was held in July 2015. Round One only awarded two area of the 14 offered.

Read more:

 

Mexico signs contracts from Round 2.1

Mexico's Round 2.1 awards 10 blocks

Mexico's bleak Round One ends

Thursday, 28 September 2017 10:29

Updated: DONG, Ineos complete divestment deal

DONG Energy completed the divestment of its upstream oil and gas business, DONG E&P to Ineos, creating Ineos DeNoS.

Image from Ineos.

Ineos DeNoS will form part of Ineos Oil & Gas, a business division within the Ineos Industries.

"The completion of the deal positions Ineos as a top 10 company in the North Sea and the biggest privately owned exploration and production business operating in the energy basin," says Ineos.

Ineos says DONG E&P brings a good mix of long life and development fields, producing an average of 100,000 boe/d (in 2016) in the North Sea, with around 570 MMboe of commercial and potential oil and gas reserves in Denmark, Norway and the UK (West of Shetland). 

"It is a natural fit for Ineos, further strengthening its long-term activity in the North Sea, which was founded on the acquisition of both DEA’s and Fairfield’s UK portfolios in 2015 and more recently the announcement to buy the Forties Pipeline System from BP," the company says.

“We see lots of opportunity within this impressive portfolio and we are keen to integrate it into our growing portfolio of oil and gas businesses," says Geir Tuft, CEO of Inoes Oil & Gas. "We are very pleased to bring this competitive, well run business into Ineos, with its experienced team, a strong portfolio of long life assets and a very good mix of existing production and developments across the North Sea.”

The portfolio of assets is built around three fields; Ormen Lange is the largest field in the DONG portfolio and the second largest gas field in Norwegian waters, Laggan-Tormore is a new gas field West of Shetland which came on-stream early 2016 and Syd Arne is a large oil field in Denmark. Along with the existing production the portfolio also features several large scale oil & gas developments in Denmark, Norway and UK (West of Shetland).

As part of closing, approximately 430 employees have been transferred from DONG Energy to Ineos across a portfolio of production, development, exploration and appraisal assets in Denmark, Norway and UK (West of Shetland). 

The business has been acquired by the INEOS Industries business division.

Yesterday, regulatory approvals were given for the divestment deal.

“We are pleased to announce that today (28 September) the parties have received the regulatory approvals from the Danish and Norwegian authorities to the indirect transfer of the oil and gas licenses in the respective countries,” DONG said in a statement.

The duo announced the agreement on 24 May 2017, which includes DONG Energy divesting the entire share capital of DONG E&P to Ineos.

Read more:

Ineos acquires DONG's E&P business