BP to Acquire Interest in Indonesia

KrisEnergy Ltd. has entered into a conditional sale and purchase agreement with BP Exploration Operating Co. Ltd.

BP will acquire KrisEnergy’s 30% non-operated working interest in the Andaman II production-sharing contract in the Malacca Strait, Indonesia.

The transaction subject to obtaining all necessary approvals including from the government of Indonesia for the assignment of the working interest.

The Andaman II PSC is a 7,400-sq km (2,857-sq mi) block over the North Sumatra basin. Operator Premier Oil has 40% interest, and Mubadala Petroleum holds 30%.

--Ecopetrol, Gato in Brazil Offshore Discovery

Ecopetrol S.A. subsidiary Ecopetrol Óleo e Gás do Brasil Ltda has entered into an agreement with Shell Brasil Petróleo Ltda. to acquire 30% of the interests, rights, and obligations in two areas corresponding to the BM-S-54 concession agreement and the Sul de Gato do Mato shared production agreement.

These areas are in the presalt Santos basin and includes the Gato do Mato discovery.

Under this agreement, Shell will reduce its stake from 80% to 50% and continue as operator, while Total will retain the remaining 20%. The Brazilian government also participates in the shared production agreement, through Pré-Sal Petróleo S.A.

The agreement is subject to the approvals from Brazil’s Ministry of Mines and Energy, the country’s National Agency of Petroleum, Natural Gas and Biofuels and other customary transaction conditions.

Three wells that have discovered light hydrocarbons have been drilled in these two blocks. The consortium will continue executing activities and operations in order to initiate production in coming years.

-Equinor Awarded Permit Offshore Western Australia

Equinor has secured a new exploration permit in the Northern Carnarvon basin offshore Western Australia.

The company will operate WA-542-P with a 100% interest. The concession covers 4,815 sq km (1,859 sq mi), 100 km (62 mi) offshore, in water depths ranging from 80-350 m (262-1,148 ft).

It is also west of the Santos-operated Dorado oil discovery.

Paul McCafferty, Equinor’s senior vice president for international offshore exploration, said: “An interesting new liquids play has emerged in this part of Australia’s northwest shelf and we are looking forward to assessing the potential in our new permit.”

The work program includes geological and geophysical studies, reprocessing of seismic data, and acquisition of new 3D seismic.

Equinor has also been seeking permission to start exploration on its acreage in the Ceduna basin offshore South Australia.

--Efficiency Measures Serving Norway Offshore Fields

Total remaining recoverable resources across the Norwegian continental shelf are around 8.3 bcmoe, according to the latest estimate by the Norwegian Petroleum Directorate (NPD).

Roughly half the total is thought to lie in proven fields and discoveries.

At the end of last year, there were 85 discoveries with no submitted plan for develop­ment and operation. These hold total reserves of 660 MMcmoe. The NPD estimates that NOK400 billion ($44 billion) would be needed for all these fields to be developed. By end-August 2019, 85 fields were in production on the NCS.

In 2018, wells accounted for half the investment on active fields, and in recent years, efficiency measures have cut average production well costs by more than 40%, the NPD’s report said.

At the same time, operating costs on most fields have been falling, and increased take-up of automation and remote operation, improved use of data and more efficient operation, could further reduce costs and help raise production further, the report claimed.

----- Total, Qatar Petroleum Extend Partnership to Namibia

Total has signed a further farm-out agreement with Qatar Petroleum (QP), this time for two deepwater blocks offshore Namibia.

Pending government approvals, Total will transfer to QP a 30% interest in block 2913B, while retaining a 40% interest; and 28.33% in block 2912, retaining 37.78%.

Both permits are in the Orange basin, in water depths ranging from 2,600-3,800 m (8,530-12,467 ft). Other partners are Impact Oil and Namcor.

The first exploration well is due to be drilled next year on block 2913B. It follows earlier agreements under which QP gains 40% of the company holding Total’s existing 25% interests in the Orinduik and Kanuku blocks offshore Guyana, with Total keeping the remaining 60% of this company.