The oil market in the 4th week of 2024 brings updates on discoveries and exploratory drilling across the world. Participation in bidding is also highlighted.
The fourth week of 2024 was busy for Esgian, with lots of relevant news about the oil market. New reports on oil discoveries and exploratory drilling activities were highlighted, as well as updates on contracts and platform mobilization in several regions of the world.
Week 4 of Esgian
Equinor discovered oil No. exploration well 30/12-3 S no Mar North, off Norway. The well also included a diversion, 30/12-3 A, which was dry. Equinor drilled the well on behalf of Aker BP, which is the operator of the 272 B production license where the wells are located. The license is part of the Munin field, which was discovered in 2011. Drilling was conducted by semi-submarine Odfjell Drilling's 10.000-foot Deepsea Stavanger.
Tullow Oil expects to complete its drilling activity at the Jubilee field off the coast of Ghana. about six months ahead of schedule. The company and its joint venture partners then intend to pause drilling in Ghana before resuming in 2025. Tullow Oil has been drilling at its Jubilee and TEN fields offshore Ghana with the 12.000-foot Noble drillship Noble Venturer ( formerly Maersk Venturer) for the last few years.
After more than a year on standby offshore Darwin, Australia, the 1-foot semi-submarine Valaris MS-8.200 has resumed drilling operations at the Barossa development in Santos. The rig arrived at the Barossa field in mid-January from its holding location southeast of Cape Fourcroy, Bathurst Island, in the Beagle Gulf.
Santos said that despite the delays, he still expects first gas from Barossa in 2025, however, not in the first half of 2025 as originally planned when the FID was made in 2021.
Borr Drilling Jackup 400ft Gunnlod completed work with SapuraOMV after drilling six development wells in the Jerun field offshore Sarawak, Malaysia. Gunnlod is expected to remain in Malaysia for upcoming work with an undisclosed operator, scheduled to operate between February and May 2024, based on a binding LOA set in 2023.
Week 4 of Esgian
Murphy Oil is moving forward with plans to drill two exploration wells in the Cuu Long Basin off the coast of Vietnam in 2024. The wells are expected to be drilled in the second half of 2024 with the 11-foot Japan Drilling Hakuryu-425. exploration wells in the eastern U.S. GOM in 2024, with drilling dates expected in the second quarter of 2024. Oxy plans to drill the Ocotillo well in Mississippi Canyon Block 40 and the Orange well in Mississippi Canyon Block 216. The company called these wells of 'promising exploration opportunities' at the end of 2023. Oxy has two drill ships under contract at US GOM; 12.000-foot Valaris DS-16 unit and 10.000-foot Diamond Offshore Ocean Blackhawk unit
Portuguese oil company Galp said on Friday it discovered a significant column of light oil in sands containing high-quality reservoirs at AVO -2, a deeper target of the Mopane-1X well, offshore Namibia. Galp is using the semisubmersible Hercules managed by Odfjell Drilling for the operation.
Demand
Recent updates on Sea Lion's development progress included an updated development plan to align with Navitas Petroleum LP's reservoir models, leading to an 11% increase in certified resources across the entire North Falklands Basin portfolio. Navitas has identified floating production, storage and transfer vessels (FPSOs) suitable and available and is actively working with key industry suppliers to secure all long-range equipment, with the goal of achieving Sea Lion Phase 1 Final Investment Decision (FID) in 2024 and achieving first oil by at the end of 2026.
Sonangol and its partners continue to plan activity in Blocks B3/05 and B3/05A offshore Angola. Partner Afentra stated that planning continues to select the initial phase for the installation of submersible electric pumps, works and filling wells in B3/05 and B3/05A. Drilling candidates include the undeveloped Bufalo Nord field, the Gazela discovery and an exploration well at Pacassa South West.
Platform mobilization/movements
COSL's 4.921-foot semi-submarine COSLProspector has left the Canary Islands and is now en route to its final destination, Norway. The semi-submarine is expected to arrive in Norway in early February 2024. After preparations, it will begin a two-year firm contract with Vår Energi in the Barents Sea in the third quarter of 2024.
Jackup-owned 300-foot Shelf Drilling, Main Pass IV, has restarted operations with Saudi Aramco in the Middle East. Main Pass IV performed its planned maintenance on Shipyard Zamil, in Saudi Arabia. With the restart of this contract, the platform will be occupied until March 2025.
Stena Drilling's 1.640-foot semi-submarine Stena Don is in a shipyard in Norway, where it is undergoing some recertification work related to the special periodic survey (SPS)/UWILD. The rig has been under contract with Shell in the UK since May 2023, but the contract was recently paused for it to undergo these SPS-related works, which are scheduled for February 27, 2024. Once these operations are completed, the semi-submarine will return to the North Sea.
Valaris 350-ft jackup Valaris 118 has been docked in Chaguaramas, Trinidad, for routine maintenance and upgrades ahead of its upcoming six-well campaign with BP. Valaris 118 has been working for BP in Trinidad since October 2022. Upon completion of its stay at the shipyard, the rig will return to BP offshore Trinidad for a six-well contract extension, set for November 2023.
Transocean The 1.640-foot semi-submarine Transocean Endurance has left Dampier, Australia and is being towed to the Stybarrow facility in Woodside to begin a P&A contract. The probe, which arrived in Australia from Norway earlier this year, is destined for Eskdale, a reservoir that is part of the Stybarrow Development, together with the Stybarrow Reservoir. The Cat D platform is expected to arrive on site on Thursday, January 25th, and following final acceptance, is expected to begin its contract by the end of the week.
Other News
The Government of the Republic of South Africa has given final approval for the transfer of a participation of 6,25% in Block 3B/4B of Eco Atlantic subsidiary Azinam Limited to Africa Oil Corp. With this transaction, first announced in July 2023, Africa Oil now holds a 26,25% operated stake in the block, while Eco Atlantic has a 20% stake and Ricocure (Pty) Ltd holds a of 53,75%.
W&T Offshore acquired six shallow water fields from the US GOM for $72 million, excluding certain closure costs. W&T Offshore has bid on these assets offered by Cox Operating and related companies that filed for bankruptcy in May 2023.
Eco (Atlantic) Oil & Gas Ltd. has entered the second phase of the second renewal period for the Orinduik License in Guyana, effective January 14, 2024. In this Second Phase, there is a commitment to drill a well exploration in the Cretaceous formation until the end of the license period, on January 13, 2026.
Stena Drilling's 5.000-foot harsh environment Stena Spey semi-submersible is being marketed for sale. Maritime consultancy Clarksons is assisting in the divestment of the unit. Stena Spey was delivered by DSME in 1983 as a High Seas Driller and has worked mainly in the UK North Sea and Irish Sea since then.
Malaysia's Petronas granted Contracts Production Sharing Agreements (PSCs) for six exploration blocks and a Discovered Resource Opportunity (DRO) Cluster commercialized in the Malaysian Bidding Round 2023 (MBR 2023). Petronas also launched the 2024 Malaysia Bidding Round.
NEO Energy has submitted the environmental declaration (ES) for its development at Buchan Horst in the UK North Sea to the country's regulator. The Buchan Redevelopment Project, operated by NEO Energy, involves the redevelopment of the Buchan Horst field, in the Outer Moray Firth in UKCS Blocks 20/05a and 21/01a in the Central North Sea, c. 115 km north east of the Aberdeenshire coast. The proposed project will comprise the drilling of up to five production wells and two water injection wells, at two drilling centers located within a single 500 m safety zone. At the time of preparing the ES, NEO had not yet determined whether a semi-submersible or jack-up rig would be used to drill the proposed wells.
United Oil & Gas Plc has secured a two-year extension to its Walton Morant license offshore Jamaica until January 31, 2026. The company has a 100% interest in the block. During this extension, United intends to conduct additional technical studies, including piston core sampling and seismic reprocessing, with the goal of further reducing petroleum system risks and better defining the prospects and leads identified in the permit.
Petrobras formally expressed interest to the National Energy Policy Council (CNPE) in guaranteeing the right of preference for the Jaspe pre-salt block, in the Campos Basin. This asset is scheduled to be tendered in the third round of the Permanent Offer System, operating under the Production Sharing Regime. When exercising the preferential right to bidding, Petrobras can guarantee an operational stake of 30% in Jaspe.
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