NOVEMBER 2017 OIL & GAS FINANCIAL JOURNAL | WWW.OGFJ.COM 11
holds the remaining 5% on behalf of the Royal Government of
The Cambodia Block A contract area covers 3,083 sq. km over
the Khmer Basin in the Gulf of Thailand where water depths range
between 50 meters and 80 meters. The individual oil accumulations
in Cambodia Block A are small and spread over a large geographic
area, requiring significant funds and time to fully develop. Additionally, reservoir production performance in the Khmer Basin
has yet to be proven. For these reasons, among others, there is
some uncertainty regarding long-term production rates, reserves
and commercial viability and therefore a phased development
approach has been prudently adopted. Once the initial Phase
1A platform is on stream, there will be a period to monitor reservoir
performance before commencing Phase 1B, which envisages up
to three additional platforms producing to the Phase 1A facilities.
A Phase 1C will potentially add up to six additional platforms for
the full 10-platform Apsara development.
TEXAS DRILLING PERMITS, COMPLETIONS STATISTICS
The Railroad Commission of Texas (Commission) issued a total
of 903 original drilling permits in September 2017 compared
to 746 in September 2016. The September total included 781
permits to drill new oil or gas wells, 16 to re-enter plugged well
bores and 106 for re-completions of existing well bores. The
breakdown of well types for those permits issued September
2017 included 215 oil, 64 gas, 554 oil or gas, 58 injection, one
service and 11 other permits.
In September 2017, Commission staff processed 318 oil, 101
gas, 40 injection and four other completions compared to 430
oil, 155 gas, 38 injection and seven other completions in September 2016. Total well completions processed for 2017 year
to date are 5,408; down from 8,737 recorded during the same
period in 2016.
According to Baker Hughes Inc., the Texas rig count as of
October 6 was 448, representing about 48% of all active rigs
in the United States.
WOOD MACKENZIE: WHAT’S BEHIND
THE BOOST IN LIBYAN PRODUCTION?
Libya’s oil production has increased steeply from August 2016’s
low point of below 300,000 barrels per day (b/d) to around
850,000 b/d at present, passing the one million b/d barrier in
July. But Wood Mackenzie believes Libya may now be reaching
its near-term production limits and future growth will be
Effective export capacity will be constrained by damage to
the key ports of As Sidrah and Ras Lanuf limiting production
to a maximum of 1. 25 million barrels per day, National Oil
Corporation’s (NOC) previously announced 2017 year-end
target. Reaching this would be quite an achievement, given
ongoing challenges, including international oil companies’
reluctance to recommit capital and expertise, a national oil
company starved of funding and, not least, the propensity for
violence to flare up and armed groups to hinder oil output.
With political agreement still some way off, international oil
companies have taken differing stances to the country’s upstream sector. North American players continue to view Libya
with trepidation and some may seek to mitigate their exposure
by divesting. But for many European companies, the risks are
manageable and a gradual re-entry into familiar projects without
committing capital makes sense.
OPEC has ruled that Libya will remain exempt from any
production cap: a tacit acknowledgement of the upside limitations to the country’s production recovery. Wood Mackenzie
expects that it will be well into next decade before production
is restored to pre-war levels. Maintaining stable output of one
million b/d and realizing incremental gains in the interim could
be considered a success and may help avert a deepening of
the country’s crisis. The possibility of longer-term political nor-malization and a reduction in conflict will depend on the country
being able to maintain oil production.
CHEVRON SANCTIONS POLYMER-BASED EOR
FOR CAPTAIN OIL FIELD IN THE NORTH SEA
Chevron North Sea has decided to proceed with the first phase
of its Captain enhanced oil recovery (EOR) project in the outer
Moray Firth offshore northeast Scotland.
The program is designed to increase the field’s overall recovery rate through the application of polymer technology.
Stage 1 of the EOR project, which follows several EOR pilot
programs at the Captain field, will involve drilling up to six
long-reach horizontal injection wells within the existing Captain
Greta Lydecker, managing director, Chevron Upstream Europe, said: “Sanctioning Stage 1 EOR at Captain is an important
milestone in the development of the technology, which we
believe will improve the recovery rate from older fields and
help extend the life of assets.
“The application of advanced EOR technology in the North
Sea supports the UK government’s strategy of Maximizing
Economic Recovery of its offshore energy resource, and this is
in direct alignment with Chevron Upstream’s strategy of ex-
Oil & Gas Authority (OGA) area manager Eric Marston said:
“Polymer EOR has the potential to increase recovery, extend
field life, and stimulate field redevelopments…Chevron, along
with BP, Shell and Statoil, has been a driving force behind the
industry-led EOR task force.”
Texaco (since merged with Chevron) discovered the bil-
lion-bbl Captain field in 1977 in UK block 13/22a. First production
followed in March, with the development driven by advances
in horizontal drilling and downhole pumps.
The production complex comprises a wellhead protector
platform and bridge-linked platform connected to an FPSO.
Chevron operates with an 85% interest, in partnership with
Dana Petroleum (15%).