E&P Highlights: Dec. 2, 2024

From an approved FDP in the Middle East to a service provider's new billion dollar EPCI contract, below is a compilation of the latest headlines in the E&P space.

Activity headlines

Valeura Energy Updates Jasmine Development Offshore Thailand

Canada’s Valeura Energy Inc. has completed an infill drilling campaign at the offshore Jasmine Field in License B5/27 in the Gulf of Thailand.

Valeura, which holds a 100% operated working interest, had hit aggregate oil production of nearly 10,000 bbl/d during the seven days ending Nov. 25, President and CEO Sean Guest said in a press release.

"Maintaining oil production at this asset is key to generating ongoing cashflow from our portfolio,” Guest said. “In addition, the fact that we continue to see appraisal successes at this relatively mature field bodes well for our objective to further extend the economic life of the asset. We expect the results of these wells, and the recent production rates to be considered as part of our year-end reserves assessment, and to support our target of achieving more than a 100% reserves replacement ratio."

Valeura drilled a five-well program comprised of two infill development wells on the Jasmine A platform, which were completed in September. More recently, three infill development wells on the Jasmine D platform were all successful, the company said, and have been brought online as producers while also successfully appraising several additional reservoir intervals.

The five wells’ aggregate oil production averaged 9,801 bbl/d (before royalties) from Nov. 19 to Nov. 25—an increase of 26% from rates just prior to the new wells coming online.

Following the Jasmine D infill drilling program, the company's contracted drilling rig has been moved to the Manora Field on License G1/48 (70% working interest), where it has started operations on a five-well infill drilling program comprised of three production-oriented wells and two appraisals.

Oman Approves Tethys Oil’s Block 56 Field Development Plan

Oman’s Ministry of Energy and Minerals approved Tethys Oil’s field development plan (FDP) for Block 56 in Oman on Nov. 25. Following this approval, the E&P sharing agreement for the block has been extended 20 years through 2044.

Block 56 covers an area of 5,808 sq km in south-eastern Oman, about 200 km south of blocks 3 and 4. The approved FDP includes the development of the Al Jumd, Menna and Sarha discoveries, along with further exploration potential, with development activities set to begin in 2025.

Tethys Oil operates Block 56 with a 65% stake. Biyaq Oilfield Services holds 25%, with Medco Arabia and Intaj holding 5% each.

Harbour Energy Begins Talbot Development Production in UK North Sea

Harbour Energy started production at its three-well subsea tieback Talbot development on Nov. 28.

Subsea activities for Talbot, located in the U.K. North Sea, began in March with the installation of a 15-km pipe-in-pipe pipeline and an electro-hydraulic chemical control umbilical connecting to the Judy platform.

Gas from Talbot will be transported via the Central Area Transmission System to the Teesside Gas Processing Plant. Oil will be exported to the Teesside terminal through the Norpipe transportation system.

Harbour holds a 67% stake in the development, with Ithaca Energy owning the remaining 33%.

Eni Wins Exploration Rights for Four Blocks Offshore Ivory Coast

Eni has signed contracts with the Ivory Coast’s Ministry of Mines, Oil and Energy to acquire four new offshore exploration blocks.

The Nov. 28 agreement includes blocks CI-504, CI-526, CI-706 and CI-708. The blocks are located near the Calao discovery in Block CI-205 and span 5,720 sq km in water depths between 1,000 m and 3,500 m.

Under the agreements, Eni is permitted to explore the area for up to nine years, which could lead to further discoveries and development in the area.

The company also operates six other blocks in Ivorian deep water—CI-101, CI-205, CI-401, CI-501, CI-801 and CI-802 – in partnership with Petroci Holding.

DNO Discovers Oil in New Play Offshore Norway

DNO ASA announced a “play opener” oil discovery offshore Norway, its second significant discovery in two years.

The Othello discovery is the first time moveable oil has been encountered in the Borr unit of the Vale Formation, DNO said. Othello was drilled in an eastern section of the basin previously known as “the dry belt.”

The company drilled two wells in the formation, and the shallower prospect hit. Preliminary estimates show gross recoverable resources of 27 MMboe to 57 MMboe, with a mean estimate of 41 MMboe.

DNO holds a 50% operated interest in the license. Aker BP ASA and Petoro AS hold 20% each, and Source Energy AS the remaining 10%. The partners are considering tying back the discovery to existing infrastructure. The ConocoPhillips Ekofisk hub is 25 miles west of Othello and Aker’s Valhall hub is 35 southwest.

Last year, DNO announced the Norma gas condensate discovery in the Norwegian North Sea.

CNOOC Ltd. Brings Huizhou 26-6 Oilfield Development Project Onstream

CNOOC Ltd. announced production startup at its Huizhou 26-6 Oilfield Development Project on Dec. 2.

The main production facilities are in the Pearl River Mouth Basin in the South China Sea at an average water depth of 110 m. The facilities include a new intelligent drilling production platform and the Nan Hai Fen Jin FPSO. A total of 19 development wells are planned to be commissioned, including two oil production wells and 17 gas production wells.

The project is expected to achieve a peak production of approximately 20,600 boe/d in 2027.

CNOOC holds 100% interest in this project and is the operator.

Contracts and company news

Saipem Secures EPCI Contract for Indonesia’s Tangguh UCC project

Saipem, in a consortium with PT Meindo Elang Indah, secured an offshore engineering, procurement, construction and installation (EPCI) contract for the Tangguh CCUS and compression project (UCC) in Papua Barat Province, Indonesia, valued at $1.2 billion.

Earlier this month BP announced a $7 billion final investment decision (FID) to develop the Ubadari gas field to supply feedstock to the existing Tangguh liquefaction facility and build an associated carbon capture facility.

Saipem’s activities include the EPCI of two wellhead production platforms, a wellhead platform for the re-injection of CO₂ and approximately 90 km of associated pipelines.

Ubadari is expected to start production 2028. The liquefaction facility, which went online in 2009, was expanded last year with a third train, bringing Tangguh LNG’s total capacity to 11.4 million tonnes per annum (mtpa). The CCUS portion of the UCC project is expected to sequester approximately 15 million metric tons of CO₂ in its initial phase.

BP operates Tangguh with 40.22% interest, with MI Berau BV holding a 16.3% interest, CNOOC Ltd. holding a 13.9% and Nippon Oil Exploration Ltd. holding a 12.23% interest. KG Berau Petroleum Ltd. holds an 8.56% interest, Indonesia Natural Gas Resources Inc. holds 7.35% and KG Wiriagar Petroleum Ltd. holds the remaining 1.44%.