Chevron Adds to its Angola Assets
Chevron signed two risk service contracts for Block 49 and Block 50 in Angola’s Lower Congo Basin. These contracts mark Chevron’s first operated assets outside its existing Cabinda concessions, while highlighting its 70-year history in the country.
Blocks 49 and 50, near producing Block 17, have significant potential with the operator planning to conduct seismic surveys to enhance geological understanding and advance exploration. These additions bolster Chevron’s strong portfolio in Angola, where it has a 26% market share with interests in Blocks 0 and 14, producing 70,000 bbl of liquids and 259 MMcf/D of gas.
Chevron also has nonoperating interests in the country’s first LNG facility in Soyo, which reached its 400th LNG cargo milestone in 2023. The $300-million Sanha Lean Gas Connection Project aims to boost LNG production by connecting Blocks 0 and 14 to the LNG facility.
The company also signed an agreement in October 2023 to explore carbon offsets and lower‑carbon fuels like hydrogen.
Growing Interest in Galp’s PEL 83
More than 12 oil companies, including Exxon, Shell, and Petrobras, are interested in purchasing a 40% stake in Galp Energia’s major offshore oil discovery in Namibia. Galp’s Mopane discovery, estimated to hold more than 10 billion bbl of oil and gas equivalent, could be valued at over $10 billion. In April, Galp initiated the sale of half its 80% stake in petroleum exploration license 83 and the right to become its operator.
Companies like Exxon Mobil, Chevron, Shell, TotalEnergies, Petrobras, Woodside Energy, and Apache Energy signed agreements to access geological data of the field and submitted nonbinding offers. Bidders’ identities and offers remain unclear with most firms expected to offer upfront cash and cover Galp’s share of field development. The decision on the field’s development depends on further exploration.
ReconAfrica Spuds in Namibia
Reconnaissance Energy Africa Ltd. (ReconAfrica) and its joint venture partner Namcor announced on 7 July the spudding of the Naingopo exploration well on petroleum exploration license 73, onshore northeast Namibia. This is the first well in the Damara Fold Belt, with a planned total depth of 3800 m, targeting 163 million bbl of unrisked prospective oil resources, or 843 Bcf.
ReconAfrica’s President and CEO Brian Reinsborough highlighted the well’s significance, noting it could unlock over 3.1 billion bbl of oil or 18 Tcf of gas, based on a March 2024 report by Netherland, Sewell & Associates Inc.
ReconAfrica, a Canadian company, holds petroleum licenses for about 8 million contiguous acres in northeastern Namibia and northwestern Botswana. The company is progressing with a farm-out joint venture and recently raised approximately $1.9 million from warrant exercises.
CNOOC Starts Up South China Sea Production
CNOOC Ltd. began production at the Enping 21-4 oilfield development project in the eastern South China Sea. The project, located in approximately 89 m of water, is expected to reach peak production of about 5,300 BOE/D of light crude in 2025.
The development includes two, extended-reach wells drilled from the existing production platform, with well depths exceeding 9500 m. This approach has set a benchmark for similar future projects, according to the company.
CNOOC Ltd. holds 100% interest in the project and serves as operator.
Equinor Comes Up Dry in Argentine Exploration
Equinor has completed drilling the Argerich-1 exploration well in the CAN 100 block in the North Argentine Basin, classifying it as dry despite confirmation of the geological model.
Argerich-1, the first ultradeep well off Buenos Aires province, represents a significant milestone in Argentina’s offshore exploration. Data collected will be analyzed to better understand the area’s hydrocarbon potential.
Drilling began in Q1 2024 with high expectations that the well could yield an initial production of 200,000 B/D, a substantial addition to Argentina’s total oil production of 680,500 B/D as of April 2024.
Equinor serves as operator with a 35% stake, partnering with YPF (35%) and Shell (30%).
Barents Sea Discovery Shows Potential
Aker BP and its partners have discovered gas at the Ferdinand Nord prospect in the Barents Sea, Norway. The exploration well 7324/6-2, in production license 1170, found between 3.3 and 4.7 million BOE.
Drilled to a depth of 1246 m by Saipem’s semisubmersible Scarabeo 8 rig, the well’s primary target was Middle Jurassic to Upper Triassic rocks in the Stø and Fruholmen formations, and the secondary target was Upper Triassic rocks in the Snadd Formation. The well identified a 12-m gas column in the Stø Formation and a 6-m gas column in the Snadd Formation.
Aker BP holds a 35% stake in the license, with Equinor (35%), Petoro (20%), and Inpex Idemitsu Norge (10%).
Eni Makes Discovery Off Mexico Coast
Italian energy group Eni discovered significant oil and gas reserves in the Sureste Basin, 63 km off the coast of Mexico at the Yopaat-1 EXP exploration well. The well, drilled to a depth of 2931 m in 525 m of water, found 200 m of oil- and gas‑bearing sands. This discovery adds to other finds in Eni‑operated Blocks 7 and 10 in the Gulf of Mexico, with total resources now exceeding 1.3 billion BOE, allowing Eni to proceed with studies for potential hub development. Eni has been active in Mexico since 2006 and operates eight blocks in the Sureste Basin.
Eni serves as the operator (50%) with Spanish partner Repsol (50%).
Kristin South Begins Production
Equinor, along with partners Petoro, Vår Energi, and TotalEnergies EP Norge, began production from the first Lavrans well in the Kristin South area on 7 July. The development plan for Lavrans and Kristin Q, approved in 2022, is the first phase of the Kristin South project.
A new subsea template was installed and connected to the Kristin platform, processing oil and gas from Lavrans. The gas will be exported to Europe, while oil will be transported via the Åsgard C storage vessel.
Four more wells are planned in phase one including three at Lavrans and one at Kristin Q. The expected production is 6.2 Bcm of gas and11.95 million bbl of oil. The CO2 intensity for extraction is less than 1 kg/BOE.
Partners in the Haltenbanken Vest Unit are Equinor Energy AS (54.82%), Petoro AS (22.52%), Vår Energi ASA (16.66%), and TotalEnergies EP Norge AS (6%).
Partnership Eyes Prospect in Caribbean Sea
Petrobras, in partnership with Ecopetrol, has started drilling the Uchuva-2 appraisal well in the Tayrona Block to evaluate the Uchuva gas discovery made in 2022. Despite the potential in Colombia’s Caribbean Sea, the country faces short-term supply issues, leading to increased LNG imports.
The Uchuva-1 exploratory well, drilled in 2022, is located 32 km from the coastline and 76 km from Santa Marta and was drilled in deep waters at 837 m. Ecopetrol projects gas production starting by 2026, with the Tayrona Block expected to hold up to 4 Tcf of natural gas reserves.
Petrobras serves as operator and holds a 44.4% stake in the Tayrona Block, while Ecopetrol owns 55.6%.
TotalEnergies Exits South African Exploration
TotalEnergies SE reportedly plans to exit its gas‑condensate discoveries off South Africa’s coast to focus on exploration closer to Namibia, according to Reuters. The company invested over $400 million in the Brulpadda and Luiperd fields but doubts their commercial viability due to South Africa’s small gas market. Instead, TotalEnergies will explore the Orange Basin near promising Namibian oil discoveries, where it has partnered with QatarEnergy for exploration.
This exit would be a setback for South Africa, which had hoped to use the gas to reduce coal dependence and supply PetroSA’s gas-to-liquids plant. TotalEnergies has notified South Africa’s petroleum regulator of its intent to withdraw from Block 11B/12B but hasn’t submitted a formal request.
Proven Oil in North Sea
Wellesley Petroleum discovered oil and gas at the Gnomoria appraisal well (35/10-12 S) in the North Sea, 100 km southwest of Florø. This marks the first appraisal well in production license 1184 S, awarded in APA 2022. Preliminary estimates suggest recoverable oil equivalent ranges from 5 to 25 million bbl. Gnomoria, which is located among multiple discoveries, may tie back to existing infrastructure.
Drilled by the COSLPromoter rig, the objective was to prove petroleum in Upper Jurassic sandstones of the Heather Formation. The well encountered an 11-m gas column and an 18-m oil column in a 21-m sandstone layer with moderate reservoir quality. It was drilled to 3346 m below sea level, terminated in the Upper Jurassic Heather Formation, and has been permanently plugged and abandoned at a water depth of 363 m.
