Page 12 - GLNG Week 37

GLNG AFRICA GLNG

Equipment problems

force Renergen to

revise gas drilling

programme

PROJECTS & SOUTH Africa’s Renergen has revised its drill-
COMPANIES ing programme for the Victoria gas project after
encountering equipment problems during the
drilling of an inclined well.
Company representatives told local press
agencies last week that it had begun drilling the
well with the aim of reaching gas-bearing frac-
ture systems within its licence area, which covers
1,870 square km in Free State. It was using a per-
cussion rig to sink this well, the first in its current
programme.
In the course of drilling, a drill string rupture
occurred, and the bottom-hole assembly was lost
before the rig could break through to the Karoo
layer of rock. Renergen then decided against
attempting to retrieve the bottom-hole assembly, means we will be able to drill with far greater
on the grounds that the drilling operation was confidence and speed.”
being carried out on a turn-key basis, meaning He added: “This is a very exciting time for us
that no further charges would be incurred prior on the exploration front, with fortune allowing
to the successful penetration of the Karoo layer. us to turn a negative situation into one that could
Instead, the company opted to abandon its well leapfrog our progress.”
and move the rig to another site.
Additionally, it revised its drilling programme LNG plant feedstock
to take a different approach towards reaching the In the Virginia gas project, Renergen aims to
Karoo layer. It said it would drill sub-vertically extract natural gas from fields near Welkom,
to the base of its casing point and then switch to Virginia and Theunissen in Free State. It hopes to
drilling outside of the casing in order to reach the use this gas as feedstock for an LNG plant, which
Once the gas targeted gas-bearing fault structures at increased is currently under construction and due to begin
inclination. This drilling will be carried out with commercial operations in 2021.
liquefaction plant a rotary rig, a fit-for-purpose directional drilling Once the gas liquefaction plant comes online,
comes online, unit that has recently become available. the company will halt production of CNG and
This rig’s first task will be to extend an existing switch to LNG. It has already arranged to work
the company will well drilled several years ago. Renergen recently with a unit of France’s Total to sell its LNG as a
gained access to the shaft, which is already cased fuel for long-haul trucking. Total will use its fill-
halt production of down to the Karoo layer, close to the point ing stations along the Johannesburg-Durban
section of the N3 highway to distribute LNG
where the anticipated gas-bearing fault struc-
CNG and switch ture begins. from the first phase of Renergen’s plant.
The second stage of the LNG plant will then
The company has already identified its next
to LNG. few drilling sites. It hopes to accelerate the pace begin production in 2023. Part of the produc-
of its exploration programme by using a regu- tion from the second stage will be distributed
lar rotary rig to drill vertically to the base of the by Total’s retail outlets along all of South Africa’s
Karoo layer and then switch to a directional rig major highways, and the remaining volumes will
to drill at an incline toward the target strata. be sold to other buyers.
Stefano Marani, Renergen’s CEO, said he was Renergen’s LNG plant will also include a
optimistic about the Virginia gas project despite helium unit, as its fields contain unusually high
the setback. “It is unfortunate that the drilling volumes of helium. Sproule, an international
rod broke, but unfortunately accidents happen energy consulting firm, estimates that these sites
beyond anyone’s control,” he said. “The silver may hold as much as 9.74bn cubic metres of
lining is that it resulted in us gaining access to helium, or more than the total proven reserves
a fit-for-purpose directional drilling rig, which of North America.™

P12 www. NEWSBASE .com Week 37 18•September•2020