Namibia and Chevron Sign Deal for Walvis Basin
Namibia’s national oil company, NAMCOR, has signed a development deal with Chevron, with Chevron taking an 80% operating interest in offshore block PEL 82 in the Walvis Basin. This agreement also involves local company Custos Energy. NAMCOR and Custos Energy each retain 10% interest.
Chevron, through its subsidiary Chevron Namibia Exploration Ltd., operates PEL 90 in the Orange Basin, where significant discoveries have been made recently. Chevron plans to drill an exploration well in PEL 90 in Q4 2024.
Namibia, though yet to produce oil or gas, has become an exploration hotspot following discoveries by TotalEnergies and Shell, with plans for its first output by 2030.
Ukrainian Independent To Develop Iraq’s Akkas Gas Field
The Iraqi Ministry of Oil signed a contract with Ukrainian company Ukrzemresurs to develop the Akkas gas field in western Iraq, marking a significant step toward maximizing Iraq’s natural gas resources. Akkas, located in Anbar province, was first discovered in 1992 with production beginning the following year. Currently, production is estimated between 60 and 100 MMscf/D. Ukrzemresurs announced plans to increase production to 400 MMscf/D within 4 years. With sizable reserves estimated at approximately 5.6 Tcf, the Akkas field holds significant potential for contributing to Iraq’s energy sector.
The competition for the development contract, won by Ukrzemresurs, was highlighted by the interest of multiple international firms in participating in Iraq’s energy sector development. In late April, oil ministry leaders gathered as Ukrzemresurs signed the contract to take over production from Korea Gas Corp.
Sintana Energy Acquires Additional Interest in Namibia Orange Basin
Sintana Energy Inc. announced a definitive agreement with Crown Energy Ltd. for the acquisition of up to 67% of Giraffe Energy Investments Ltd., owner of a 33% interest in PEL 79 in Namibia’s Orange Basin. PEL 79 governs blocks 2815 and 2915 located inboard of blocks operated by BW Energy, Rhino Resources, and Shell.
PEL 79 is one of the last remaining licenses not operated by a private operator with significant existing 2D and 3D coverage supporting a material existing prospect inventory. Through this acquisition, Sintana enhances its position in the emerging hydrocarbon province and deepens technical capabilities through a partnership with Quantum Xploration Inc.
Additionally, an 8% interest in Giraffe’s equity will be contributed to a community trust, facilitated by the Knowledge Katti Foundation, to ensure local communities benefit from the industry’s development.
Aker BP’s Hanz Field Starts Production
Aker BP announced the startup of production at Hanz, a subsea field development tied into the Ivar Aasen platform about 15 km farther south in the North Sea. The field’s development will help maintain good production from the platform. Total reserves are approximately 20 million BOE.
The Plan for Development and Operation of the Ivar Aasen area, which included the Hanz discovery made in 1997, underwent significant optimization to include reuse of subsea production systems from the Jette field. Aker BP said it is the first time that production equipment has been reused in a new development on the Norwegian Continental Shelf. The use of a crossflow well also contributed to lower costs and lower emissions.
The Ivar Aasen field is located on the Utsira High in the northern part of the North Sea, around 175 km west of Karmøy. Discovered in 2008, first oil was produced in 2016.
Aker BP is the operator (35% interest). Equinor and Sval Energy are partners holding 50% and 15% interests, respectively.
Saturn Oil & Gas Reports Results in Alberta’s Brazeau Area
In the first quarter, Saturn Oil & Gas completed four gross (4.0 net) horizontal wells in the Brazeau area, targeting Cardium light oil. These wells achieved an average initial 30-day (IP30) production of approximately 710 BOE/D (50% light oil and NGLs), marking the company’s most successful Cardium development wells to date. The top performer was the Brazeau 100/03-17-045-11W5 well, which recorded an IP30 rate of 723 BOE/D (50% light oil and NGLs), representing the company’s best-performing well since inception. Saturn has identified 121 gross (101 net) de-risked additional horizontal drilling locations in the Brazeau area of central Alberta.
In southeast Saskatchewan, Saturn completed five gross (5.0 net) conventional horizontal wells. These wells targeted three Mississippian-aged Frobisher and Tilston zone targets, along with two Spearfish zone targets. They surpassed expected type curve IP30 average production rates by 33%. The standout performer was the Glen Ewen 101/03-01-004-02W2 Frobisher well, which achieved an IP30 production of 195.6 BOE/D, with 95% light oil. This success de-risks up to three gross (3.0 net) new drilling locations in the area.
In 2023, Saturn acquired, processed, and interpreted its first proprietary 3D seismic data in southeast Saskatchewan, leading to the identification of the Wier Hill 103/14-18-006-04W2 location. Wier Hill 14-18, drilled as a dual lateral well, achieved an IP30 rate of 154.4 B/D of 100% light oil, resulting in the identification of up to three gross (3.0 net) new development locations in the area. Overall, Saturn has identified 429 gross (381 net) additional conventional drilling locations in southeast Saskatchewan.
Hibiscus Petroleum Discovers Oil in Malaysia-Vietnam Agreement Area
The independent exploration and production company Hibiscus Petroleum Bhd. announced a new discovery, Bunga Aster-1, in the offshore Malaysia-Vietnam agreement area, with plans to begin production this month.
The discovery encountered up to 46 m (150.9 ft) of potential oil column, marking the second “significant discovery” within a year in the PM3 Commercial Arrangement Area Production Sharing Contract (PM3 CAA PSC). The first was the Bunga Lavatera discovery in 2023.
PM3-CCA is a shallow-water, conventional oil field.
Drilling the well from the existing Bunga Orkid platform, the rig encountered 17.5 m (574.1 ft) of oil-bearing sandstone, with initial assessments indicating favorable reservoir characteristics.
Bunga Orkid is one of seven producing fields in the Malaysia-Vietnam PSC, alongside Bunga Kekwa, Bunga Lavatera, Bunga Pakma, Bunga Raya, Bunga Seroja, and Bunga Tulip.
As the operator of the license with a 35% stake through Hibiscus Oil & Gas Malaysia Ltd., Hibiscus Petroleum partners with Petronas Carigali Sdn. Bhd. and PetroVietnam Exploration Production Corp. Ltd.
Vår Energi Confirms Oil Discovery in the Central North Sea
New oil has been discovered in the Balder area of the Central North Sea, confirmed by Vår Energi. The successful Ringhorne North exploration well in production license PL 956 yielded estimated recoverable resources ranging between 13 and 23 million bbl of oil. Operator Vår Energi views this discovery as a potential commercial opportunity to integrate with existing infrastructure in the Balder area.
The exploration well and two sidetrack/appraisal wells were drilled by the semisubmersible rig Deepsea Yantai. License partners include Vår Energi ASA (operator) at 50%, Aker BP ASA (20%), Harbour Energy Norge AS (15%), and Sval Energi AS (15%).
