OCTOBER 2017 OIL & GAS FINANCIAL JOURNAL | WWW.OGFJ.COM 13
Galvão Exploração e Produção SA (QGEP) to acquire a 20%
working interest (WI) in Blocks SEAL-M-351 and SEAL-M-428,
located in the deep water Sergipe-Alagoas Basin, offshore
QGEP will retain a 30% WI in the blocks, and in a related but
separate transaction, ExxonMobil Exploração Brasil Ltda. (an
affiliate of ExxonMobil Corp.) has farmed into the remaining
50% WI as the operator. The blocks are located 80 to 100 kilometers ( 50 to 60 miles) off the coast of Brazil and cover a total
area of approximately 1,500 square kilometers (580 square
In addition, Murphy and its partners are the high bidder in
Brazil’s Round 14 lease sale for Blocks SEAL-M-501 and
SEAL-M-503, which are adjacent to SEAL-M-351 and SEAL-M-428.
ExxonMobil will operate and the partners will maintain the
same WI in each of these blocks. These new acreage positions
are near several major Petrobras discoveries.
Murphy Oil Corp. is a global independent oil and natural
gas exploration and production company. The company’s resource base includes offshore production in Southeast Asia,
Canada and Gulf of Mexico, as well as North America onshore
plays in the Eagle Ford Shale, Kaybob Duvernay and
GAZPROM PLANNING SECOND SUBSEA PROJECT
Gazprom expects to finish development drilling this year at the
Kirinskoye field offshore Sakhalin Island.
Head of Department Vsevolod Cherepanov, speaking at the
Sakhalin Oil & Gas 2017 conference, said production at the
field, part of the Sakhalin III project, is dedicated to consumers
in Russia’s Primorye Territory and the north of the Sakhalin
It was the first Russian field to be developed using subsea
production technologies. With new producing wells in operation, the field should gradually reach the planned plateau of
5. 5 bcm/yr.
Gazprom continues to conduct geological exploration in
the Kirinsky, Vostochno-Odoptinsky and Ayashsky blocks in the
same Sakhalin III project.
The Yuzhno-Kirinskoye gas field remains at the pre-devel-opment stage, with design studies under way for a wholly
Gazprom is also continuing its LNG projects in Sakhalin, said
Alexander Medvedev, deputy chairman of the company’s Management Committee, with design documentation nearly completed for the island’s LNG plant’s third train.
This will have an annual capacity of up to 5. 4 MM tons.
EXTRA TIME FOR BP AND PARTNERS
BP and Azerbaijan today signed a deal extending a production
sharing contract for the super-giant Azeri-Chirag-Guneshli
(ACG) field, the largest field in the Azerbaijani sector of the
Caspian Sea, until 2050.
Commenting on the extension, Laura Bennie, research analyst
with Wood Mackenzie’s upstream Caspian team, said: “Finalizing
the contract extension is fitting recognition of the value that
ACG represents – not only for BP and its partners, but also the
Azerbaijani economy. The combination of the extension, bonus
payment and increased SOCAR stake looks like a balanced
“For the international partners, it’s all about moving down
the cost curve and securing long-life assets. Finalizing the ACG
contract extension is right on trend for BP and partners – the
fruits of many years of talks.”
Bennie added: “For Azerbaijan, this reaffirms the wider
commitment to its oil and gas industry and the future revenues
it will bring.
“ACG production may now be below 600,000 barrels per
day, but there are still billions of barrels to recover and billions
of dollars to invest. Attention will now turn to a brand-new
production platform [Azeri Central East], which will be com-
missioned in the 2020s.”
The production sharing contract extension is pivotal for the
post-2024 outlook for Azerbaijan’s oil sector. ACG currently
produces 75% of Azerbaijan’s liquids production, and is the
lifeblood of its economy.
The existing PSC is due to expire in 2024. The new deal sees
SOCAR increase its stake in the ACG consortium to 25% from
11.65%, while BP, which remains operator, sees its interest drop
from 35.8% to 30.37%.
The other consortium partners have also seen their stakes
reduce. Chevron now holds 9.57%, Inpex 9.31%, Statoil 7.27%,
ExxonMobil 6.79%, TPAO 5.73%, Itochu 3.65% and ONGC
LATEST WISTING APPRAISAL WELL PROVES
OIL IN BARENTS SEA
The semisubmersible Island Innovator has finished drilling
appraisal well 7324/8-3 on the Wisting oil discovery in the
According to the Norwegian Petroleum Directorate, the well
was drilled in 396 m ( 1,300 ft) of water in license PL 537, 2 km
( 1. 2 mi) south of the discovery well 7324/8-1 and 315 km (196
mi) north of Hammerfest.
Prior to drilling this latest well, OMV had estimated the
Wisting area’s resources in in the range of 22-80 MMcmoe.
The well encountered a 55-m (180-ft) oil column in sandstones
from the Mid-Jurassic to Late Triassic (Stø and Fruholmen
formations). The former had better reservoir characteristics.
In addition, the rig conducted a successful water injection
test in the Stø formation, confirming good injection
The well, which will be permanently P&A’d, was the sixth on