AFRICA

Chevron acquires exploration interests in Mauritania

Chevron Corp.’s wholly owned subsidiary Chevron Mauritania Exploration Ltd. has reached an agreement to acquire a 30% nonoperated working interest in blocks C8, C12 and C13 offshore Mauritania from Kosmos Energy. The transaction is subject to the approval of Mauritania's government. The blocks cover a contiguous area of about 6.6 million gross acres in water depths ranging between 1,600 m and 3,000 m (5,249 ft and 9,842 ft). Under the agreement, Kosmos Energy retains a 60% interest and remains the operator. Société Mauritanienne des Hydrocarbures et de Patrimoine Minier, Mauritania's national oil company, will continue to have a 10% interest.

CAMAC completes 2-D seismic acquisitions in Kenya

CAMAC Energy Inc. has finished its onshore 2-D seismic acquisitions on blocks L-1B and L-16 in Kenya. The 2-D seismic program was conducted by BGP Kenya Ltd. and covers about 700 km (435 miles) on L-1B and 325 km (202 miles) on L-16. The objective of the acquisition is to identify potential exploration targets in the Paleozoic, Jurassic, Cretaceous and Middle to Lower Tertiary sections, which are known to be oil-bearing in the East Africa region. The seismic survey paired with the previously completed airborne gravity and magnetic surveys will be used to help identify potential drilling targets on the blocks.

AUSTRALIA

CGG acquires Davros multiclient survey in Northern Carnarvon Basin

CGG started acquiring the Davros 3-D BroadSeis and BroadSource multiclient survey in the Northern Carnarvon Basin on the northwest shelf of Western Australia. Covering more than 11,000 sq km (4,247 sq miles), Davros is the largest seismic survey CGG has ever acquired in the Asia-Pacific region. Viking Vision is conducting the Davros survey using CGG’s BroadSeis variable-depth streamers configuration and BroadSource synchronized broadband multilevel sources. The vessel is equipped with 12 Sercel Sentinel RD 2-Hz streamers, each measuring 8,250 m (27,067 ft). CGG will image the data using its regional expertise and technology including prestack depth migration.

Wood Group Kenny wins FEED contract

Wood Group Kenny has secured a contract with Woodside to provide the FEED of the flowline system and associated procurement support for the proposed Greater Western Flank Phase 2 (GWF-2) development for the North West Shelf project offshore Western Australia. The scope of work includes engineering and procurement support services for the 16-in. GWF-2 corrosion-resistant alloy rigid flowline system, flowline end termination structures, inline tee assembly structures, mid connection structure and subsea tie-in spools. The primary engineering focus of the GWF-2 flowline FEED is to develop the flowline system for the final investment decision planned for second-half 2015.

ASIA-PACIFIC

China considers merging state-owned oil companies

China may merge its state-owned oil companies to create giants that will be more efficient and capable of taking on overseas rivals like Exxon Mobil Corp., the Wall Street Journal reported. The country’s leaders have asked government economic advisers to study the possible mergers, the newspaper said, citing unidentified officials familiar with the research. One plan would combine the country’s largest oil companies, China National Petroleum Corp. and China Petrochemical Corp. Other options include merging China National Offshore Oil Corp. with Sinochem Group. No timetable is set for a decision on whether or when to proceed with the mergers.

Jinzhou 9-3 project starts production

CNOOC Ltd.’s Jinzhou 9-3 comprehensive adjustment project has commenced production. The Jinzhou 9-3 oil field is located in the North Liaodong Bay in Bohai with the water depth in the range of 6.5 m to 10.5 m (21 ft to 34 ft). The main production facilities of this adjustment project include one central processing platform, one wellhead platform and 21 producing wells. There are currently 15 wells producing about 7,600 bbl/d of crude oil. The adjustment project is expected to reach its overall development plan-designed peak production of about 12,000 bbl/d in 2015.

EUROPE

Statoil completes Krafla well program

Statoil and PL035 partners completed a two-well program in the Krafla area of the North Sea. Since 2011 significant new recoverable resources have been proven in the area. The Krafla Main Tarbert appraisal well and the small oil discovery in the Krafla North Prospect in December increased the robustness of the Krafla Field Development project, Statoil said. Since 2011 the company has made five discoveries in the Krafla area, which includes PL035 and PL272. They are Krafla Main, Krafla West, Askja West, Askja East and Krafla North.

Norway’s Arctic E&P activity cut by half

Oil exploration in Norway’s Arctic waters will be cut by half this year as state-controlled Statoil ASA halted drilling in the Barents Sea after crude prices plunged. Companies led by Lundin Petroleum AB plan to drill at most seven exploration wells in the Barents Sea, down from a record 13 in 2014, said the Norwegian Petroleum Directorate. Lundin plans to drill four wells and OMV AG, BASF AG’s unit Wintershall AG and Eni SpA one each. Oil companies are cutting investment plans, in particular high-cost ventures in areas like the Arctic, after prices fell 60% from June to January.

RUSSIA-CIS

Rosneft plans to reduce spending by 10%

OAO Rosneft will cut spending 10% this year after oil prices slumped. The company has set its plans for this year based on an average oil price of $50/bbl. Russia’s largest oil and gas producers, Rosneft and OAO Lukoil, have both cut spending plans after oil prices halved over the past six months. The price squeeze has hit Rosneft particularly hard as it seeks to repay debts raised for the $55 billion acquisition of TNK-BP in 2013.

SOUTH AMERICA

Petrobras detects new reservoir in Farfan area

Petrobras has confirmed the extension of the light oil and gas discovery, as announced to the market on Aug. 9, 2013, by drilling the third extension well in ultradeep waters of Sergipe Basin’s Farfan area. Drilling activities also have detected the presence of a new, shallower 68-m (223-ft) thick light oil-bearing reservoir. Well 3-SES-186/3-BRSA-1286-SES is located 103 km (64 miles) from the city of Aracaju, Brazil, and 10 km (6.2 miles) from the discovery well, at a water depth of 2,467 m (8,094 ft). Well drilling is set to continue until reaching the total depth of 6,060 m (19,882 ft). This accumulation is part of the Sergipe-Alagoas Basin ultradeepwater exploratory project, as provided for in the 2014-18 business and management plan.

GeoPark makes Colombia oilfield discovery

GeoPark Ltd. made a new oilfield discovery following the drilling of exploration well Tilo 1, located on Block Llanos 34 in Colombia. GeoPark operates and has a 45% working interest in the block. The Tilo prospect is a structural trap with three-way dip closure on the side of a normal fault. There are two principal productive reservoirs, the Guadalupe and Mirador sandstones. They are the first and second targets, respectively. GeoPark drilled and completed the Tilo 1 exploratory well to 3,442 m (11,293 ft) total depth. A test conducted with an electrical submersible pump in the Guadalupe resulted in a roughly 1,000 bbl/d production rate. Further technical evaluation will determine if the Tilo Field is potentially a northeast extension of the larger Tigana Field.

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