AFRICA

Africa Oil completes Kenyan farm-out deal with Maersk Oil
Africa Oil Corp. has completed a farm-out deal with Maersk Oil for Kenyan blocks 10BB, 13T and 10BA, Africa Oil said in a news release. At completion, Africa Oil received $427 million from Maersk. This amount represents $344 million of reimbursed past costs incurred by Africa Oil prior to the agreed March 31, 2015, effective date of the farm-out and $83 million representing Maersk’s share of costs incurred between the effective date and Dec. 31, 2015, including a carry reimbursement of $15 million of exploration expenditures. An additional $75 million development carry might be available to Africa Oil upon confirmation of existing resources, which is expected to take place in first-quarter 2016. Upon reaching a final investment decision, Maersk will be obligated to carry Africa Oil for an additional amount of up to $405 million depending on meeting certain thresholds of resource growth and timing of first oil. Africa Oil now holds 25% interests in Kenyan blocks 10BB, 13T and 10BA. Maersk holds a 25% interest, and Tullow (operator) holds 50% interest in each of the blocks.

Sasol will develop new oil, gas fields in Mozambique
South Africa’s Sasol has received the green light by Mozambique to develop more oil and gas fields in the southern African state, the company said on Feb. 1, without disclosing how much the project will cost, according to Reuters. Mozambique is sitting on huge gas reserves, and developing LNG export projects are expected to bring tens of billions of dollars to the impoverished state. The petrochemicals giant, which makes 40% of its revenue from oil, said the project, which is about 600 km (372 miles) north of the capital Maputo, will be rolled out in stages. The first phase will include an oil, LPG and gas project adjacent to its Pande and Temane fields. Natural gas from Pande and Temane fields, in which Sasol holds a majority stake, is currently produced and processed at a central facility before being transported through an 865-km (537-mile) pipeline to gas markets in Mozambique and South Africa.

Tullow launches new deepwater production vessel
Tullow Oil is sending one of the world’s biggest floating deepwater oil production platforms to West Africa to pump crude for at least 20 years, Reuters reported. The 340-m-long (1,115-ft-long) production vessel was converted in Singapore from a very large crude carrier and was expected to set sail at the end of January to Ghana, where it is scheduled to gradually ramp up production from the TEN deepwater oil field from July/August 2016, the company’s COO Paul McDade said.

ASIA

Gas flows at Chevron’s Chuandongbei project in China
Chevron Corp.’s fully owned subsidiary Unocal East China Sea Ltd. began natural gas production from the first stage of the Chuandongbei project in southwestern China, a press release stated. Chuandongbei is one of the largest onshore gas projects developed by an international oil company and a national oil company in China. Jay Johnson, executive vice president, upstream, Chevron, said, “The project will be an important supplier of clean and affordable energy to the rapidly growing economy in southwest China.” The Chuandongbei project covers more than 800 sq km (309 sq miles) in Sichuan Province and the Chongqing Municipality. Unocal East China Sea Ltd. holds a 49% participating interest as the operator, and China National Petroleum Corp. holds a 51% participating interest. The startup of the fi rst train commences stage one of the project. Production is planned to ramp up over coming months as all three trains come online. The three trains have a combined design outlet capacity of 7.3 MMcm/d (258 MMcf/d) of natural gas. The Chuandongbei Project is estimated to contain potentially recoverable natural gas resources of 84.9 Bcm 3 Tcf).

AUSTRALIA

Fugro undertakes seabed investigations
Fugro has been awarded a combined geophysical and geotechnical project by Hess Exploration Australia Pty. Ltd. (Hess) to assist in Hess’ activities in the Northern Carnarvon Basin offshore northwestern Australia, Fugro said in a news release. Fugro’s work will include seabed and shallow geological investigations, including areas of diffi cult terrain. For the fi rst phase of the survey, Fugro will use its Hugin 1000 AUVs to map the seabed. The data will be used to optimize planning for the subsequent sediment sampling phase, where a variety of techniques will be used. Fugro’s geoconsultancy team also will deliver an integrated data model for input to Hess’ ongoing analysis. The project is planned to take place in first-quarter 2016.

AGL will exit gas production business
AGL Energy Ltd., Australia’s second largest energy retailer, said it will sell its gas E&P assets because of volatile markets, ending a decade-long attempt to diversify and resulting in a loss of nearly $460 million, Reuters reported. In a statement issued a week before it reports half-yearly earnings, the company said it decided to quit its wholesale gas production business in Queensland state because of “the fall in global oil prices with consequent effect on long-term gas prices.”

EUROPE

Eni, Novatek receive 30-year Montenegro oil concessions
The Montenegrin government awarded 30-year concessions for oil and gas exploration in the Adriatic Sea to Italy’s Eni and Russian No. 2 gas fi rm Novatek consortia, an economy ministry’s spokeswoman said, according to Reuters. The concessions for four blocks have been awarded in line with the terms of a 2014 tender pending parliamentary approval, she said.

MIDDLE EAST

Saudi Aramco will keep same number of rigs in 2016, sources say
Saudi Aramco is expected to keep the same number of its oil and gas drilling rigs this year despite weak oil prices, industry sources said, according to a Reuters report. Saudi Aramco has asked oilfield service companies and suppliers again this year for discounts due to a slump in global oil prices. Saudi Aramco managed to make big savings last year on drilling costs, the sources said. “It is a normal situation in drilling activity,” said one of the sources, who declined to be identifi ed. Saudi Aramco is now operating about 212 oil and gas rigs, which is a level it has kept steady since 2015. That number does not include water rigs. “They want to maintain activity but reduce costs; there might be some movements by replacing offshore rigs to land or oil to gas,” said a second source.

SOUTH AMERICA

CGG pursues survey work offshore Colombia
CGG has been awarded an extension to a major 3-D seismic survey it completed on the Caribbean coast offshore Colombia in late 2015, a news release stated. The new survey follows on from the original survey that covered more than 16,000 sq km (6,178 sq miles) over portions of the Col-1 and Col-2 blocks offshore Colombia. The extension was expected to start in February. The additional data will be processed in CGG’s Houston subsurface imaging center.

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