List of West African Oil Discoveries in 2010 - 2011.

Ok.., here it is.. One of the most definitive lists of discoveries in West Africa for 2010-2011 so far. There is increasing excitement about the vast potential in West Africa's offshore basins and I thought it would be worthwhile to list them out. The material has been sourced from Derrick Petroleum's exhaustive data on exploration and deals. For the record, I consider Angola part of West Africa here, although to be more precise, it is located in South-West-Central Africa. 

For more information of discoveries and exploration plans for the following West African countries in 2011, click on the following links. Cote D’ivoire; Ghana discoveries; Ghana Exploration in 2011, Exploration in Mauritania, Benin & Togo; Angola; Sierra Leone; Sengal; Liberia; Cameroon.

Table 1: List of Discoveries in 2010 - 2011. Source Derrick Petroleum Services

Map of West Africa - Source: USGS

Sierra Leone

The Mercury-1 well was announced as a discovery in Nov 2010 with approximately 135 net feet of oil pay in two Cretaceous-age fan systems. Anadarko operates block SL-07B-10 with a 65-percent working interest. Co-owners in the block include Repsol (25%) and Tullow (10%). This was the second well drilled on the block, the first being the Venus-B well on the Venus prospect drilled in August 2009 which encountered 14 m of hydrocarbons.

Source: Anadarko Corp

Ghana
The Dzata - 1 well was drilled in May 2009 in the Cape Three Points Deep Water Block by the Aban Abraham drillship and struck hydrocarbons over 94 m, including a 25-m net section of layered oil and gas pay. The well is temporarily plugged and abandoned for future appraisal activities. Vanco Energy (28.34%) is operator of the block and other partners are Lukoil (56.66%) and Ghana National Petroleum Corporation (15%). 

Source: Hess Corp

In March 2009, Kosmos announced that the Tweneboa-1 well drilled in the Deep Water Tano Licence discovered a light hydrocarbon accumulation with 21 m net pay in a single, good-quality sandstone reservoir similar in age to those found in the Jubilee Field. The Tweneboa-1 well was the seventh consecutive successful well Kosmos and its partners drilled on the West Cape Three Points and Deepwater Tano blocks, including three previous exploration wells that found oil on the West Cape Three Points Block since mid-2007. The Mahogany-1 exploration well discovered the Jubilee Field, which was announced in June 2007; the Odum-1 exploration well discovered the Odum Field, which was announced in February 2008; and the Mahogany-3 well discovered the Mahogany Deep Field which was announced in January 2009.

The Owo prospect in the Deep Water Tano Licence was drilled in early June 2010 and encountered a significant light oil accumulation . The Enyenra-2A appraisal well on this discovery intersected 32 m in 2 channels. Tullow operates the block, holding a 49.95% interest; Kosmos Energy holds 18%; Anadarko Petroleum holds 18%; Sabre Oil and Gas holds 4.05%; and the Ghana National Petroleum Corporation holds a 10% carried interest.  

The Teak-1 exploration well in the West Cape Three Points Block was spud in Q4 2010 and discovered oil. On Mar 28, 2011, the Teak-2 exploration well encountered approximately 90 net feet of high-quality oil, condensate and natural gas pay in stacked Campanian- and Turonian-age reservoirs. Kosmos Energy (30.875%) is the operator of the Block. Other partners are Anadarko (30.875%) Tullow Oil (22.896%), KG Group (3.5%), Sabre Oil and Gas ( 1.854%) and Ghana National Petroleum Corporation (GNPC) which has a 10% carried interest.


To find out which companies are drilling in Ghana in 2011, click here

Nigeria
On June 24, 2010, Total announced that the Agge-3B.T1 well in the OML 136 licence in water depths of 140 m discovered several gas bearing reservoirs totalling a gross thickness in excess of 150 m. A production test performed over the lower intervals yielded a production of 21 million cubic feet of gas per day on a 36/64’’ choke. Conoil Producing Limited (60%) is the operator of the licence and Total (40%) is partner.

Source: Total

On 12 July 2010, Sinopec announced that the UDELE-3 well in Block 137, in the Niger Delta, struck an oil layer of 45.9 m and test yields showed an oil flow of 3,365 barrels of oil and 28,300 cubic metres of gas a day. Sinopec is the owner and operator of the licence after acquiring the Swiss firm Addax Petroleum.

The Pegi-1 discovery well encountered 165 net feet (50.3 m) of rich gas condensate. The well was drilled in 315 ft (96 m water depth to a total depth of 11,407 feet (3,477 m) beneath the Awawa field. Analysis of recovered samples indicated an API gravity of ~41 degrees. ExxonMobil is the operator of the block with a 40 percent working interest, with the NNPC holding the remaining 60 percent. 

Cameroon
Bowleven, the West Africa focused oil and gas exploration group traded on AIM, announced that the Sapele-1 exploration well drilling in the Douala Basin, offshore Cameroon was drilled to a total depth (TD) of 4,733 m. Based on an analysis of a major steep change in pressure encountered and the interpretation of the seismic, Bowleven interpreted that the well may have encountered a significant hydrocarbon column in the Cretaceous. Further studies are ongoing. The well was drilled on the MHLP-5 block on Sept 14 2010. The MHLP-5, MLHP-6 and MLHP-7 blocks are located in the Etinde Permit Area and the blocks are operated by Bowleven (75%) and the partner is Vitol Group (25%).

Source: Bowleven

Gabon

Drilling in the Onal licence area yielded the Maroc Nord OMOC-N-1 discovery which identified a 111-metre column of oil. Pump tests established a flow of 1,700 bpd of oil (flow limited by the pump’s maximum capacity) with an API of 33.4. Maurel &  Prom (85%) operates the Onal production licence and is partnered by Tullow (7.5%) and AIC-Petrofi (7.5%).

The Southeast Etame No. 1 (“ETSEM-1”) exploration well completed drilling to a total depth of 9,045 feet (2,757 m) offshore Gabon and encountered approximately sixteen feet (five m) of oil saturated Gamba sandstone. Valco Energy (28.07%) operates the Etame Marin Permit in which this discovery was made with the other partners being Addax Petroleum (31.36%), Sasol Petroleum (27.75%), Sojitz Etame Limited (2.98%), PetroEnergy Resources Corp. (2.34%) and Tullow Oil Gabon SA (7.5%).

Angola
The Castanha-1 well was spud in Nov 2009 and struck 15 m of hydrocarbons in pre-salt sediments at a depth between 2,214 and 2,229 m. The Castanha-4 appraisal well encountered a gross hydrocarbon column of approx. 15 m in the Chela Formation. Production testing of the Castanha-2, Castanha-3 and Castanha-4 appraisal wells is planned to commence following which the consortium will take a decision as to its commerciality. Participating Interests in the Cabinda Onshore South Block in which the discovery was made are: Pluspetrol Angola Corporation (Operator) 45%; Force Petroleum de Angola 20%; Sonangol P&P 20%; Lacula Oil Company (ROC) 10%; Cuba Petroleo 5%.

Source: Roc Oil

The Nzanza-1 and Cinguvu-1 wells, both located in Block 15/06 some 350 km North-West of Luanda, were drilled in a water depth of 1,400 m and reached a total depth of respectively 3,008 m and 3,023 m in April 2010. Both wells encountered oil pay in sands of Lower Miocene age with good reservoir characteristics. During production tests, Nzanza-1 well produced an 18° API oil at rates above 1,600 barrels per day (b/d). Total, one of the partners in the block, indicates that a potential for future production wells in excess of 5,000 b/d per well, when associated to artificial lift, exists. At the Cinguvu-1 well, the production test, limited by surface facilities, reached a flow of 6,400 b/d of a 23° API oil. Eni (35%) is the operator of the block, and the other partners are Sonangol (20%), Sinopec Corp (15%), Total (15%), Falcon Oil SA (5%), Petrobras (5%) and Statoil (5%).

Source: ENI

Drilled in waters measuring 453 m deep, the Begonia-1 discovery well is located on the northeastern section of Angola's Block 17/06. This was the second discovery on the block; the first was the Gardenia-1 well.  Production tests of the discovery well, Begonia-1, flowed high-quality, 36-degree API oil at a rate of more than 6,000 barrels per day from the Miocene formation. Sonangol is the concessionaire of the block, and Total serves as the operator of Block 17/06 with 30 percent interest. Partners on the block include Sonangol Pesquisa e Producao with 30%, Sonangol Sinopec International Seventeen Limited with 27.5%, ACREP Bloco 17 with 5%, Falcon Oil Holding Angola with 5%, and PARTEX Oil and Gas with the remaining 2.5%.

On the same Block 17/06, the Canna-1 well, drilled in a water depth of 445 m, in the north-eastern area of the deep offshore block 17/06, discovered hydrocarbons in a reservoir of Miocene age and produced more than 5,000 barrels per day of high quality oil (33° API) during a production test.

An exploration well on the Cabaca South East prospect in Block 15/06 was drilled in 2010 and discovered oil in it. The Cabaca South East-1 well, located at a depth of 470 m, at a distance of 100 km from the coast, successfully reached its multi-target objective in the deepest levels of Miocene age, where oil bearing reservoirs, with a total of 450 m of gross thickness, was proven. During production tests, the well flowed high quality 34° API degrees oil at rates of about 7,000 barrels/day. The rates were constrained by the limited capacity of the surface facilities. Eni has a 35% working interest and is the Operator in Block 15/06, while Sonangol E&P is the Concessionaire. The other partners in the JV  are Sonangol Pesquisa e Produção (15%), SSI Fifteen Limited (20%), Total (15%), Falcon Oil Holding Angola SA (5%), Petrobras International Braspetro B.V. (5%) and Statoil Angola Block 15/06 Award AS (5%).

On the same block (15/06), the Mpungi-1 well, 120 km from the Angolan shoreline in 1,050 m of water, was drilled to a total depth of 2,300 m and encountered oil pay in both the Upper and the Middle Miocene sand reservoirs. During the production test of the main pool, the well flowed light oil at rates in excess of 6,000 barrels per day.

Angola Oil - South West Africa's Next Crown Jewel

INTRODUCTION
Angola is a huge country present on the south-west coast of Africa, bordering the South Atlantic Ocean, between Namibia and the Democratic Republic of the Congo. It was home to a 27 year civil war that is estimated to have cost the lives of up to 1.5 million people, and displaced a further 4 million. The war came to an end following the death of Jonas Savimbi, the leader of the National Union for the Total Independence of Angola (UNITA), in 2002. President Jose Eduardo Dos Santos, the leader of the Popular Movement for the Liberation of Angola (MPLA), the main opponent against Savimbi, consolidated his hold on power and despite promising to hold presidential elections in 2009, has since managed to pass legislation to hold elections in 2012.

Figure 1: Map location of Angola. Modified from Google Earth.

Oil and gas exploration started in the early 1900’s, but it wasn’t till 1955 that the first onshore commercial discovery was made at the Benfica field in the Kwanza basin. In 1966, the first offshore commercial discovery was made at the Limba field in the Lower Congo Basin. There was restricted exploration activity onshore due to the civil war that engulfed the country for a quarter century, and exploration efforts were more focused offshore. Deepwater exploration commenced in 1993, and in 1996 the first deepwater commercial discovery, the Girassol field, was made at the Lower Congo Basin, in Block 17, by a consortium led by Total. In 1999 exploration moved to the ultra deepwater and the first commercial ultra deepwater discovery, the Plutao field, was made in 2002 in the Lower Congo Basin.

GEOLOGICAL BACKGROUND
Angola has three main sedimentary basins; the Kwanza, Namibe and Congo basins. Although all three basins have the pre-requisites for hosting hydrocarbons, only the Congo and Kwanza basins have so far yielded them in commercial quantities. Most of the exploratory success has come from the northern portion of Angola, where it seems the geology has favoured the northern blocks. One noteworthy example is Block 0 that lies offshore the Cabinda province, to the immediate north of the Congo river. Chevron operates Block 0 which provides about 20% of Angola's crude oil production. The mighty Congo river deposited huge amounts of sediment in the area along with vegetative matter that eventually turned into oil over geological time, increasing oil concentrations in this area. The block is divided into Areas A and B and together they contain 21 fields whose total production in 2010 was 365,000 boepd. Exploration in the southern blocks ceased after non discoveries in blocks 9, 21, 22 and 25 located offshore of southern Luanda. However, geologists in Sonangol, the concession holder and national oil company of Angola, are keen to begin comprehensive surveys of blocks in the Namibe Basin, which they believe has untapped resources.

Figure 2: Sedimentary Basins of Angola. Source, Ministry of Petroleum, Angola.

RESERVES AND PRODUCTION
Angola is an oil-dependent state with oil production and its supporting activities contributing about 85% of GDP. Angola has maintained a high growth rate of ~8% over the last 8 years due in large part to oil exports. In 2009 Angola became the leading producer of crude oil in Africa, overtaking Nigeria which experienced extreme sectarian violence and attacks on oil infrastructure. However, at the beginning of 2010, based on EIA data, Nigeria had the highest reserves in Africa, at 37.2 bboe. According to the BP statistical review, Angola’s proved reserves at the end of 2009 were 13.5 bboe and production at the end of the same year was 1.7 mmboe/d. This was up from 0.7 mmboe/d in 1990. The oil minister of Angola has put the reserves as on Dec 2009 at 13.1 billion barrels. Exploration has mainly focused offshore due in a large part to the civil war that divided the country. However, the northern city of Soyo and the disputed Cabinda Province are also host to some proven oil reserves. Angola became a member of OPEC in 2007. According to the EIA, Angola produced 1.82 mmboepd making it the largest crude oil producer in Africa and placing it seventh among OPEC members. Angola has had increasing production capacity from earlier discovered fields coming online but despite this, Angola maintained output at approximately 200,000 bbl/d below capacity, as a response to OPEC’s most recent production allocation. In the first quarter of 2011, EIA estimated Angola supplied 1.7 mmboe/d, which again placed it second behind Nigeria at 2.13 mmboe/d in African crude supply.

Figure 3 – Opec production for Q1 2011. Source: EIA short term outlook, May 10, 2011. Graph, Derrick Petroleum Services.

EXPLORATION
Angola, home to the 3^rd largest proved reserves in Africa after Libya and Nigeria, has had its fair share of exploration, mostly focused offshore and in the deep offshore. The turning-point in the history of oil exploration and production in Angola came about with the commercial discoveries in the deep waters of Block 17 and neighboring Blocks 14, 15 and 16. In 1996 when the reserves of Girassol were discovered in deep water on Block 17, Angola went from being a solid but average oil producing country to a hotspot in the global search for major oil reserves. Oil exploration and production in Angola mainly occurs in the offshore blocks, which are divided into 3 bands; Blocks 0 – 13 are shallow water blocks (Band A); Blocks 14 – 30 are deepwater blocks (Band B); and Blocks 31 – 40 consitute the ultra-deepwater blocks. Angola is also planning to throw up new blocks for exploration in 2011, after deliberation on the terms governing access to its highly prized pre-salt blocks. The pre-salt in Angola is thought widely to be analogues to the pre-salt in Brazils offshore basins which has had many substantial discoveries. Due to the fact that the South American and African continent were joined together in the geological past, many experts now believe that the pre-salt in Angola has potential to host huge reserves of hydrocarbons. In addition, the salt in Angola occurs both onshore and offshore, in contrast to the salt in Brazil which only occurs offshore.

Onshore exploration has been stymied due to the long civil war in the country. The Cabinda province was the site of most onshore exploratory efforts which were halted during the civil war.  At this time the only basin in operation is the Lower Congo, in the onshore area of the Congo River, also known as the Soyo area. However, Angola is now planning new improved policies to tap into its onshore resources and to create a positive atmosphere for drilling onshore.

EXPLORATORY WELLS IN 2011
Unless stated otherwise all data below is from the Derrick Petroleum- Planned Exploration Wells Database. According to this database, updated daily, there are a number of wells planned to be drilled in 2011. 25 wells over 10 blocks are scheduled to be drilled, with most exploratory drilling occurring offshore. 16 of these wells are in the deep offshore with the rest in the shallow offshore. The operators in these blocks are BP, ENI, Sonangol, Vaalco Energy, Petrobras, Maersk Oil, Cobalt International, Chevron, Pluspetrol and Total.

Table 1: Table showing companies planning exploratory drilling in 2011 and beyond. The number of columns has been minimized to fit the table on the page. The actual database has many more parameters listed and recorded. Source, Derrick Petroleum- Planned Exploration Wells Database.

Block 15/06
Eni has a 35% working interest and is the Operator in Block 15/06, while Sonangol E&P is the Concessionaire. The other partners of the Contractor Group are Sonangol Pesquisa e Produção (15%), SSI Fifteen Limited (20%), Total (15%), Falcon Oil Holding Angola SA (5%), Petrobras International Braspetro B.V. (5%) and Statoil Angola Block 15/06 Award AS (5%). Six discoveries have been made in the block so far; Sangos, N'Goma, Cabaça Norte-1, Nzanza-1,Cinguvu-1 and Cabaça south east. There are no more exploration wells to be drilled as the consortium is now planning development of discoveries.

Angola LNG II Upstream
Angola LNG II is a joint venture composed of Sonagas (22.8%), Chevron (36.4%), Eni (13.6%), Total (13.6%) and BP (13.6%) that will evaluate existing gas discoveries and explore further potential in the Angolan offshore, with the objective of supporting the feasibility of a second LNG train. The consortium plans to carry out a 3D seismic survey and drill 1 exploration well on the Angola LNG II area in 2011.

Block 5
Interoil is a 40% participant in Block 5, where Vaalco Energy Inc. is operator with an equal interest. Sonangol P&P (national oil company of the Republic of Angola) is also a partner with an interest of 20%. Block 5 is 5708 sq kms and is located in the Kwanza basin in the northern waters, offshore Angola. 95% of the block has a water depth of less then 200 mts. Three prospects, Kindele, Loengo and Jack have been mapped on the block. The gross mean unrisked resource potentials for these prospects are estimated to be 41, 93 and 41 mmboe respectively. The operator plans to drill atleast two prospects out of the three in 2011 and the third one in 2012.

Block 6
In Block 6 Interoil is participating with 20%, where Petrobras is operator with an interest of 40% and Sonangol, Initial Oil & Gas and Falcon Oil are partners with a total interest of 40%. Block 6 covers an area of 4930 sq km and is located in the northern area of Kwanza Basin offshore Angola. The water depth ranges from 50 to 500 m. 8 wells were drilled by the previous owners, which resulted in 2 heavy oil discoveries. The largest of these discoveries is the Cegonha heavy oil field. Petrobras is planning to drill 11 wells on its 3 operated blocks in Angola. Assuming 8 wells drilled on the other 2 blocks, 3 wells are expected to be drilled in this block in 2011.

Blocks 18/06 and Block 26.
The consortium plans to drill 8 wells on these blocks in Angola in 2011. The ownership structure of these two blocks is given below.

Figure 4: Ownership Structure for Block 18/06 and Block 26. Source Derrick Petroleum

Block 16
Maersk Oil operates the block with a 65% interest. Sonangol (20%) and Odebrecht (15%) are partners. Block 16 lies 100 km offshore Angola in water depths ranging from 200 m to 1500 m. Wildcat wells targeting the Omba and Caiundo prospects are scheduled to be drilled in 2011.

Blocks 9 & 21
Block 9 (4000 sq km) is located offshore Benguela Basin and in water depths that range between 50 to 1,000 meters. The block has oil potential of 400 MMBO (25-28 degree API). Prospects are scheduled to be drilled in late 2012. Block 21 (4,900 sq km) is located in the deep-water offshore south-central Kwanza Basin, some 200 Km southwest of Luanda. The water depth of the block is 300 to 1,600 m. Two prospects, Bicuar and Cameia, are scheduled to be drilled in 2011.

Block 0
Chevron operates this block with a 39.2% interest. Other partners are Sonangol (41%), Total (10%) and Agip (9.8%). The block is divided into Areas A and B. Together they contain 21 fields whose total production in 2010 was 365,000 barrels of liquids per day. According to Chevron two exploration wells are planned to be drilled on the block in 2011.

Block 8
Maersk Oil is the operator of the block with a 50% interest. The other partners are Svenska Petroleum (30%) and Sonangol (20%). Block 8 is situated along the early Cretaceous pre-salt lacustrine rift trend. It starts at the beach of the Kwanza and extends westwards, with water depth ranging from the very coastline to 600 metres. A well is scheduled to be drilled in 2011.

Block 23
Maersk Oil is the operator of the block with a 50% interest. The other partners are Svenska Petroleum (30%) and Sonangol (20%). Located in the deepwater Aptian salt basin trend, both pre- and post-salt petroleum systems have been identified. A well is planned to be drilled in 2011.

Block 17/06
Deep offshore Block 17, is operated by Total with a 40% interest and is Total’s principal asset in Angola. It is composed of four major zones: Girassol-Rosa and Dalia, which are currently producing. The other partners are Sonangol (30%), Sonangol Sinopec International (SSI) Seventeen Limited (27.5%), ACREP Bloco 17 S.A. (5%), Falcon Oil Holding Angola S.A. (5%) and PARTEX Oil and Gas (Holdings) Corporation (2.5%). The consortium drilled the Canna-1 well in 2011 which discovered hydrocarbons in a reservoir of Miocene age and produced more than 5,000 barrels per day of high quality oil (33° API) during a production test.

FUTURE
The industry is getting increasingly excited about the prospects in the pre-salt region. So far, all indications are that the pre-salt in Angola is analogous in hydrocarbon bearing potential to the pre-salt regions of Brazil which host substantial reserves. The government of Angola is still mooting production sharing agreements for the pre-salt regions, and once this is done, new pre-salt blocks will be up for grabs. All indications are that exploration activity is bound to increase in Angola. Angola looks set to maintain its high production into the future and, if exploratory success comes from ongoing and future exploration, the country just might topple Nigeria in terms of production and reserves.

For a list of West African oil discoveries in 2010 - 2011 click here

ConocoPhillips increases 2011 capital budget by $2.5 billion to $16 billion!! ConocoPhillips to venture in to GoM, shale areas and Angola.

ConocoPhillips intends to target shale gas and deepwater acquisitions as part of the company's current asset management program. The company will increase planned capital spending of $13.5 billion by $2.5 billion for 2011 for favourable opportunities, the Gulf of Mexico in particular. Conoco is also looking at deep-water prospects off the coast of Angola. Shale assets are being sought in the US, Canada, eastern Europe (Poland) and China. ConocoPhillips’ chief executive Jim Mulva said, “The Company has its sights set on shale plays outside the key Marcellus and Eagle Ford regions”.

Source: Conocophillips - Howard Weil Conference- Mar 2011

Try our free document search tool

Why is ConocoPhillips on shopping spree?? May be these reasons-

• Steady increase in oil price which is reaching approximately $120/barrel, the highest since July 2008 when it had hit $147/barrel
• Unconventional fever is spreading across US, Canada, Europe and China. Recently, the Asians- in particular Chinese are striking back to back deals in US/Canada shale areas. Then, why not the US supermajor?? To make use of the robust oil price season, is ConocoPhillips looking at Bakken and Niobrara plays, if they are looking at the plays outside Marcellus and Eagle Ford.
• Angola- Possesses similar characteristics to the pre-salt play located offshore Brazil. Many companies are active in exploring this pre-salt play in Angolan waters including Cobalt International, which is the operator of three blocks. Other operators that were awarded blocks by the Angolan government include Statoil, Total and BP. So, even ConocoPhillips may like to step into Angola.

Below are the significant deals in Angola:

• Post Macondo oil spill, the companies like Shell, Noble Energy and BHP Billiton have been issued drilling permits in the GoM. This shows that the situation is slowly recovering in GoM. This may be one of the reasons why Conoco is interested towards GoM.

Following are the GoM packages which may be attractive to ConocoPhillips:

Source: Derrick Petroleum E&P Transactions Database

ConocoPhillips, currently being focused onshore US and Canada, wants to establish the company as a diversified player stepping into new areas like GoM, Angola, China, Poland, etc.,