Page 8 - AfrOil Week 29
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AfrOil PERfoRmanCE AfrOil
EKH starts up Tao production
EgyPt
eGYPT Kuwait Holding (eKH) has begun producing from its O shore North Sinai block. Production began on July 13 and was running at around 708,000 cubic metres per day, with plans to raise this to 1.13mn cubic metres per day, from the Tao eld’s KS-12 well.
e company disclosed this in a ling to the egyptian exchange on July 17. Revenues should amount to eGP500mn ($30mn) over the next two years, it continued. Drilling the well cost $15mn. A second well should start in the third quarter of this year.
eKH completed analysis and interpretation of a 3D seismic shoot in February this year. e seismic covered the 560-square km block. Results suggested natural gas in the block total- ling 66.6bn cubic metres and 112mn barrels of condensate. is was based on WesternGeco’s analysis of seismic, acquired by PGS Interna- tional in March 2017.
ere is dry gas in the shallower Pliocene, with the gas and condensates in the deeper pre-Messinian. e Pliocene is the rst port of call for eKH, with the deeper resources to be de-risked at some point. The com- pany said it might consider selling a stake in order to finance exploration drilling in the pre-Messinian.
eKH’s CeO, Sherif el Zayat, said this analysis demonstrated the “long-term growth potential” of the Offshore North Sinai block. “expan- sion in the upstream natural gas business is at the core of our growth strategy and comes at exactly the right moment as egypt is positioning itself as the premier energy hub in the eastern Mediterranean.”
Setting out the company’s first-quarter results in May, eKH acknowledged there had been delays to drilling on the block as a result of bad weather. It went on to say that it should take around 12 months for production from the Tao eld to begin having a positive impact on its income.
Up next will be the Kamose eld, which will require the drilling of four new wells and the installation of a pipeline, which will be con- nected to the existing conduit. Wood Macken- zie named three discoveries on the block, which were made by Amoco, although eKH did not set out plans for Seti Plio.
eKH is also playing a part in egypt’s mid- stream via a wholly owned Natenergy sub- sidiary. is distributes gas and also generates power. e unit stands “to bene t substantially from egypt’s intensifying e orts at industrial and commercial development”, eKH said in May.
PRojECts & ComPaniEs
Eni preps for Coral South drilling
mozambiquE
eNI has begun installation work on the hull of the Coral South unit, to be moored o shore northern Mozambique. Progress was reported on the oating LNG (FLNG) project on July 20, with the Italian company predicting it would be more than 60% complete by the end of 2019.
Construction began in 2018. e hull should be launched in 2020, with production due to start in 2020.
Construction on the mooring turret began in March, it said, while construction of the hull’s 24 modules began in September 2018. Work on the topside, which is made up of 12 gas treatment and LNG modules, and the living quarters, began in November 2018.
Drilling on the six subsea wells for the project will begin in September. e wells will average 3,000 metres deep and will be carried out by the Saipem 12000 rig, with these to be completed by the end of 2020.
The Coral Sul unit will be able to process 3.4mn tonnes per year (tpy) when completed. It will be 432 metres long and 66 metres wide,
weighing around 220,000 tonnes. It will house up to 350 workers.
It will be moored in water depths of around 2,000 metres, with up to 20 mooring lines, weighing a combined 9,000 tonnes.
eni is also training around 800 locals as part of the Coral South plan. ese workers will be employed during operations.
e Italian company said the discoveries it had made in the Rovuma Basin, in Area 4, held an estimated 2.4tn cm of gas in place, in the Coral, Mamba Complex and Agulha reservoirs.
Anadarko Petroleum and the partners on Area 1 announced the nal investment deci- sion (FID) on Mozambique LNG in June. is has capacity of 12.88mn tpy and is due to start in 2024. eni and its partners on Area 4 are expected to approve the Rovuma LNG project this year, although there has been some talk of high prices for construction pushing back plans. is will have capacity of 15.2mn tpy and may start in 2024-25.
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w w w . N E W S B A S E . c o m Week 29 23•July•2019
