Page 9 - AfrElec Week 45

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PetroSA, Rosgeologia continue talks on offshore Blocks 9 and 11A
SOUTH AFRICA
SOUTH Africa’s national oil company (NOC) PetroSA is reportedly still in talks with Rosge- ologia, Russia’s state geological concern, on par- ticipation in the development of two offshore blocks. Sources told Reuters last week that the parties were discussing a farm-in deal that would let Rosgeologia acquire a stake in Block 9 and 11A. They did not say when PetroSA expected to finalise negotiations, but one source inside PetroSA indicated that the Russian enterprise was particularly interest in carrying out more exploration work.
“There are certain parts of the block that are unexplored, so Rosgeo made an offer,” said the source, who spoke on condition of anonymity. He did not elaborate.
PetroSA and the Russian company first announced plans to work together in 2017 but have been slow to sign a final agreement. Accord- ing to Reuters, PetroSA said in a presentation to the South African parliament’s portfolio com- mittee on mineral resources and energy last month that it now hoped to wrap up talks before the end of this year.
This would represent a departure from earlier plans. A source inside Rosgeologia told Reuters last week that the parties had not been able to realise their hopes of reaching agreement in October, during the first Russia-Africa Summit. He did not say whether they had set a deadline for negotiations, but he did say that Russian side was drawing up a series of proposals on the implementation of the project and would submit its ideas to the South African NOC.
The parties are reportedly discussing a plan that provides for Rosgeologia to pay $359mn for a stake in Block 9 and 11B. They have not decided yet how much equity the Russian firm will be able to acquire, but they have said the deal lays the groundwork for an extensive explora- tion campaign involving geochemical studies, geophysical surveys and the spudding of six appraisal and exploration wells. Additionally, they have indicated that Rosgeologia intends to finance its share of expenses through loans.
If the parties reach agreement, PetroSA will need to secure approval from its board of direc- tors and from the South African government.™
Total’s SA subsidiary gives gas update
SOUTH AFRICA
A representative of Total’s South African subsid- iary said last week that his company was making progress at Brulpadda, an offshore field within Block 11B/12B. The French company discov- ered sizeable amounts of hydrocarbons there last year and has estimated the field’s reserves at 1bn barrels of oil equivalent (boe) of natural gas and condensate.
Speaking in Cape Town, Adewale Fayemi, the managing director of Total E&P South Africa, described Brulpadda as a “ground-breaking and world-class” find. The field’s reserves have been proven, and the project has been largely de-risked, he said.
Even so, he commented, the company is still looking for gas. Next month, he said, it will begin collecting 2D and 3D seismic data from other sections of Brulpadda. This information will help determine whether the field holds additional prospects, he stated. Total E&P South Africa intends to begin drilling work at other prospec- tive sites within the Padavissie fan system, which is part of the Outeniqua Basin in the first quarter of 2020, he added.
Fayemi stressed that his company had racked up many successes at Brulpadda. For example,
he said, the company drilled the Brulpadda-1AX re-entry well at the field more quickly than antic- ipated – that is, in just 61 days. This is all the more remarkable, he said, given the harsh weather conditions at Brulpadda, which lies 175km from South Africa’s coast.
Total E&P South Africa began drilling work at the field in 2014 but had to stop after its equip- ment was damaged by strong winds and swift currents, Fayemi said. Since then, he reported, the company has re-engineered systems, installed new equipment and overhauled sec- tions of the rig it is using to develop Brulpadda.
It has, for example, designed and introduced a system capable of keeping much of the rig’s equipment out of the water, he said. “If it’s above water, you are able to care for it, maintain it, inspect it and prevent failure as far as possible,” he commented.
Meanwhile, he said, the company has installed a high-frequency radar system to mon- itor ambient weather conditions and ocean cur- rents. It has also revised its plans for reducing the rig’s exposure to inclement weather, thereby helping employees maximise the operability of the drilling platform.™
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