AFRICA

Major discoveries abound

A flood of new discoveries offshore Angola, Equatorial Guinea, Nigeria, and onshore North Africa, has made this the world’s leading exploration play. Contractors are moving in rigs to take advantage of escalating demand and day rates

Cyril Widdershoven, Consultant, Sittard, Netherlands (Libya, Tunisia, Uganda, Algeria, Sudan, Chad, Egypt, Morocco, Mauritania and Senegal sections); Geoff H.H. King, Managing Editor, energyeuroafrica.com (Libya, Tunisia and Uganda sections); Mark Pabst, Senior Editor, Oil and Gas North Africa magazine, Cairo (Algeria, Sudan and Chad sections); David Fuller, Senior Researcher, Oil and Gas North Africa magazine, Cairo (Egypt, Morocco, Mauritania and Senegal sections); and World Oil Staff

Egypt

The future of Egypt’s energy sector lies in its natural gas fields. Nevertheless, crude oil reserves, though dwindling, are still commercially attractive. Offshore Nile Delta was the hot spot for exploration, led by BG and Edison.

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Exploration. Last November, Egyptian General Petroleum Co. (EGPC) extended the deadline for bids on deepwater blocks until June 28, 2001. EGPC also split the four blocks on offer in the western Mediterranean into eight to 10 smaller parcels. The four original blocks have water depths ranging from 2,625 to 9,843 ft (800 to 3,000 m). EGPC also invited bids from international E&P firms for PSAs in 32 blocks, in different sedimentary basins, on- and offshore. Closing date is Nov. 15, 2001.

Companies remain active throughout Egypt. In July 2000, BG International’s Simian 2 and Simian 3 appraisals confirmed the Simian 1 offshore discovery, which had been tested at 44 MMcfgd. BG later announced the ninth consecutive gas discovery in West Delta Deep Marine (WDDM) at the end of 2000. Work is also progressing on the $500-million development of the first two fields discovered in WDDM.

Badr Petroleum, a Shell Egypt / EGPC JV, awarded a deepwater exploration drilling contract that includes two wells in 4,922 and 5,906-ft (1,500 and 1,800-m) water depths. Meanwhile, MOL Hungary sold a 20% interest in the North Idku Block to RWE-DEA.

Apache Corp.’s Neith S. 3X appraisal confirmed the commerciality of the Khalda Offset concession, testing 1,170 bpd of 44°API crude and 1.3 MMcfgd. At the end of 2000, Apache acquired Repsol-YPF’s oil and gas interests in Egypt for $410 million. The purchase increased Apache’s net production in Egypt by 75%, to more than 75,000 bpd of liquids and 220 MMcfgd.

Exploratory success onshore Egypt continues for Apache Corp. Last December, the firm confirmed its 2,634-bopd Neith 1X discovery and then, in June, struck its first commercial find on the Ras El Hekma concession, testing 2,207 bcpd and 12.4 MMcfgd from the 2X well. (Photo courtesy of Apache Corp.)

Last September, Vanguard Oil’s Tanan 1 indicated the presence of light crude on the West Esh El Mallaha tract, onshore Gulf of Suez. Devon Energy also struck a new Gulf of Suez discovery, in the South-West Gebel El-Zeit tract, where the SWGEZ 2 produced 6,700 bopd and 2.4 MMcfgd.

Shell’s first two wells drilled in the North East Mediterranean Deepwater (NEMED) tract were successful, confirming that NEMED may hold at least 15 Tcf of gas and 1 billion bbl of oil.

Table: Significant African discoveries, July 2000 to July 2001

Drilling / development. Wells drilled rose 18%, while footage increased 9%. Activity was split roughly 70% onshore and 30% offshore.

Drucker Industries completed development of El Hana field, on the West Gharib Block. El Hana Wells 2, 3 and 4 all encountered net pay of about 1,500 bopd. With all six wells pumping, output should grow to more than 5,000 bpd.

After drilling the El Wastani East 1 Well, Centurion Energy declared El Wastani field commercial, and a POD was approved. El Wastani 1 and 2 will be the first gas wells placed onstream in the field as early as fourth-quarter 2001.

Tanganyika Oil’s El Hana 8 was completed at a rate of 3,500 bopd. A new well drilled by TOC in January 2001 struck crude, flowing more than 1,000 bpd of 31°API oil. A multi-well exploration program is planned.

Production. Egyptian crude oil output fell 7.2% in 2000, to 748,410 bpd, versus 806,600 bpd in 1999. Natural gas production was 2.485 Bcfd, of which 53% was onshore.

Natural gas production began at Rosetta field, at about 200 MMcfd. Output was expected to reach 225 MMcfd in July and 275 MMcfd in mid-2002. A $316-million development cost will be carried by Shell, BG and Edison. Devon Energy also reported initial production at North July field, Gulf of Suez, of 5,500 bopd and 3 MMcfgd.