E&P Highlights: June 20, 2023

From discoveries offshore Nigeria and Guyana to an orphan well P&A program in Oklahoma, below is a compilation of the latest headlines in the E&P space.

Activity headlines

TotalEnergies’ Ntokon Could Exceed 300 MMboe

TotalEnergies’ latest shallow water discovery offshore Nigeria could exceed 300 MMboe, analysts Wood Mackenzie said on June 16.

TotalEnergies announced the Ntokon discovery on June 13 and said the plan is to develop it through a tie-back to the Ofon existing facilities 20 km away in the same block.

“The Ntokon discovery opens a promising outlook for a new tie-back development,” Nicolas Terraz, president, E&P at TotalEnergies, said in a press release.

The Ntokon-1AX discovery well in OML 102 encountered 38 m of net oil pay and 15 m of net gas pay, while its side-track Ntokon-1G1 encountered 73 m of net oil pay in well-developed and excellent quality reservoirs. Ntokon-1G1 tested successfully up to a maximum rate of about 5,000 bbl/d of 40°API oil.

“Ntokon is likely to be Nigeria's biggest shallow water discovery in a decade. Despite the lack of exploration in recent times, this discovery shows that there is still plenty of running room in the shallow water Niger Delta,” Gail Anderson, director of upstream research at Wood Mackenzie, said in a press release.

Based on analogous net pay of shallow water discoveries in the Tertiary Agbada Formation of the Niger Delta, and above-average recovery from high quality reservoirs, WoodMac estimates that the field could hold resources in the range of 300 MMboe to 400 MMboe.

“Assuming 320 MMboe of reserves, a wellhead platform development of 60-70 meters water depth with up to 30 wells and a multi-phase pipeline to Ofon could achieve first oil in 2029. This would generate a healthy IRR of 24%, based on the current concession terms,” according to the report.

The analysis notes that filling the Ofon facilities and the oil terminal will significantly cut emissions intensity, while a ready-made gas export route will make Ntokon a zero-flare development.

While tiebacks typically require shorter cycle times, Anderson said that “Nigeria is not known for short lead-times, particularly where JV [joint ventures] projects are concerned. Ntokon will provide a test in the face of stiff global competition to see if all interested parties could quickly progress lower-cost, lower-carbon projects and allow Nigeria to kick-start desperately-needed investment and recover its declining production.”

TotalEnergies EP Nigeria operates OML 102 with 40% interest, alongside partner NNPC Ltd. with the remaining 60%.

Wei Well Hits Pay Offshore Guyana

The Wei-1 well offshore Guyana has reached total depth (TD) and found 71 ft of net oil pay in secondary targets, Frontera Energy Corp. announced June 13.

The original well reached 19,142 ft TD, after intersecting an aggregate of 71 ft of net pay in secondary target reservoirs in the Maastrichtian and Campanian. A bypass well drilled from 18,757 ft reached 20,450 ft TD and penetrated the primary Santonian targets of the well in the western complex in the northern portion of the Corentyne Block.

Frontera said in a press release the results from the well are encouraging and consistent with pre-drill expectations. Data acquisition was ongoing and updated well results are expected when evaluation is complete.

Frontera and its partner, CGX Energy, have revised the total bypass well cost estimates to approximately $190 million to $195 million to complete the logging runs, finish well operations, and release the rig. The additional costs are primarily due to the lost sampling tool and the drilling of the bypass well.

Frontera holds 68% interest in the Corentyne Block, and CGX holds the remaining 32% interest.

BW Adds More Hibiscus Production

The second well in BW Energy’s Hibiscus/Ruche Phase 1 development in the Dussafu license offshore Gabon has begun production, the company announced June 16. Production from the well has stabilized at 6,000 bbl/d.

The DHIBM-4H well was drilled as a horizontal well from the BW MaBoMo production facility to 4,800 m TD into Gamba sandstone reservoirs on the Hibiscus Field. Following completion, the Borr Norve jackup has begun drilling operations on the third production well, DHIBM-5H.

The drilling campaign targets four Hibiscus Gamba and two Ruche Gamba wells which are expected to add 30,000 bbl/d of total oil production when all wells are completed in early 2024. The oil produced at Hibiscus/Ruche is transported by pipeline to the BW Adolo FPSO for processing and storage before offloading to export tankers.

Separately, the company said, the commissioning and testing of the second gas lift compressor is ongoing on the BW Adolo. The compressor, which will support production from the six Tortue wells, is expected to begin the final commissioning phase in the next few weeks and, once fully operational, will add average production of 3,000 bbl/d.

Contracts and company news

Baker Hughes Wins Baleine Subsea Trees Contract

Baker Hughes announced June 16 that Eni had awarded it a major subsea contract for the Baleine Phase 2 project offshore Ivory Coast. The award includes eight deepwater trees, three Aptara manifolds, the relevant subsea production control system, and flexible risers and jumpers.

TechnipFMC for Julimar Pipes, Umbilicals

TechnipFMC announced June 14 that Woodside Energy had awarded it a contract to engineer, procure, construct, and install flexible pipes and umbilicals for the Julimar Phase 3 development offshore Western Australia.

The project calls for tying back four subsea gas wells in the Carnarvon Basin to existing Julimar subsea infrastructure producing to the Wheatstone platform, using HP/HT flexible pipe and steel tube umbilicals.

Strohm to Supply Moho Infill TCP Jumpers

Strohm announced on June 13 winning a $3.3 million contract to supply carbon fiber/PA12 composite jumpers to Aker Solutions for the TotalEnergies’ Moho Infill project in the Republic of the Congo.

The thermoplastic composite pipe (TCP) will be provided in six 90 m lengths, with the TCP fittings being directly welded onto the diverless connectors, providing a seamless connection from end to end. The jumpers, which will be delivered by the end of 2023, will be produced at Strohm’s manufacturing facility at its headquarters in the Netherlands. 

The Moho Nord subsea project, which began production in 2017, is in water depths ranging from 650 m to 1,200 m.

TGS Launches Well Data Analytics Platform

TGS has launched the cloud-based Well Data Analytics platform, which brings together subsurface data, powerful visualization and advanced analytics, according to a June 13 company announcement.

The platform leverages the TGS data portfolio, which encompasses every major U.S. basin, to deliver access to competitive well data within seconds, enabling efficient analysis and decision-making. The analytics tool also provides access to cloud-based well data resources that are QC checked and ready to use.

Well Data Analytics combines adaptable search workflows, multi-variate map-based visualizations and analytics, advanced time-series plotting, benchmarking tools and customizable dashboard layouts with well data and well performance data in a cloud-based application. These features allow users to benchmark, predict and optimize well performance more easily and with more accuracy, the company said.

C-I Expands Operations into Houma

Edison Chouest Offshore’s affiliate C-Innovation (C-I) has expanded its remote survey operations to Houma, Louisiana, according a June 15 announcement.

C-I purchased the facility in Houma to support and expand its remote survey operations. This facility will be an addition to the current remote survey operations at its Mandeville, Louisiana, facility. It provides flexibility to improve operations while also giving redundancy, C-I said.

The expansion “gives us the capacity to operate double the number of vessels in the future,” Tim Bingham, survey manager for C-I, said in a press release.

Rebellion’s Orphan P&A Program Listed on ACR

On June 16, Rebellion Energy Solutions announced that its methane abatement and land restoration project became the first orphan oil and gas well plugging project to be listed by the American Carbon Registry (ACR) on June 8.

The wells plugged in Rebellion's Heartland Project are more than 40 years old and have been unattended for more than a decade. Rebellion assumed ownership of the wells and privately funded the project to plug the wells. No state or federal funds were used, the company said.

In May, Rebellion completed the project in a historic Oklahoma oil field, which it said permanently abates approximately 74,000 metric tons of CO2e.

Rebellion's business model for methane-abatement and land-restoration projects provides a sustainable platform for project funding through sales of durable, verifiable carbon-offset credits generated under the ACR framework.

Dragos Training Partners in Cybersecurity

As more oil and gas companies focus on cybersecurity efforts, Dragos has launched an operational technology (OT) cyber global partner program that trains cybersecurity specialists.

“There's ransomware that's running rampant out there,” Jon Pringle, vice president of U.S. Channel at Dragos, told Hart Energy. “There's exposed assets that at a certain time in the oil and gas sector weren't connected to the IT fabric. Now they are because everything's becoming smart.”

OT connections are one vulnerability that Dragos’ program aims to help companies shore up. Participants in the Dragos Global Partner Program can receive certification and will have access to “all of the information, heuristics and historical data that Dragos has,” Pringle said. “They will have ongoing access to the Dragos ecosystem.”