Page 19 - LatAmOil Week 39

LatAmOil NEWS IN BRIEF LatAmOil

As a result of the COVID-19 pandemic, in March in the event of successful exploration and there- being established at the BNorth Perseverance
2020 drilling operations were rescheduled, with after appraisal drilling campaigns. The study #1 location, it is expected that the most likely
the well now expected to spud prior to Christ- was undertaken with the assistance of an inter- resource volumes identified for the remainder
mas 2020, as previously announced. Consistent nationally recognised third-party consultancy of the 70 - 80km long B Structure would be
with that revised schedule BPC has now agreed firm, and focused on (i) development options largely derisked. In such a scenario it could thus
terms for a Master Services Agreement (“MSA) screening, (ii) development option selection, be anticipated that one or more additional FPSO
with Halliburton Overseas Limited (a subsidiary definition and initial design, and (iii) develop- developments would be required to effectively
of Halliburton Inc). ment capital and operating cost estimates. drain the expanded resource base - for example
Pursuant to the MSA, Halliburton will pro- Over the last 8 years of detailed geological one located at the northern end of the struc-
vide a number of services on an integrated basis and geophysical study, BPC has refined both its ture, and the other at the southern end. With a
for the drilling of Perseverance #1. This includes view of the resource potential of the B Structure, similar wells and subsea architecture configura-
provision of drilling fluids, directional drilling and in particular the BNorth segment targeted tion, a commensurate increase in incremental
(including measurement while drilling (MWD) with the drilling of Perseverance #1 (P50 770mn economic worth to the project (and revenues
and logging while drilling (LWD) tools), cement barrels; upside 1.44bn barrels), along with the to the Government of The Bahamas) could be
and cementing services, mudlogging, electric possible range of production rates in the event anticipated.
logging, liner hangers and casing accessories and of a successful development. These pre-drill esti- Bahamas Petroleum, September 30 2020
review of the well control plans. mates, along with expected fluid characteristics,
Other Significant Contracts & Activities: water depth and distance from infrastructure Cuba: Melbana Energy
Prior to the COVID-19 shutdown, BPC had have been combined to confirm the preferred
established a logistics plan for personnel transit development concept, being the use of a subsea starts Block 9 drilling prep
and crew change to and from the drillship via wells system tied to a Floating Production Stor-
S-92 Sikorsky helicopter with ERA Helicopters, age Offloading (FPSO) vessel. This is a known Melbana Energy has commenced civil works for
and had contracted for transport of consuma- technology operating safely up and down the construction of the first well pad in support of
bles, equipment and necessary supplies to the entire Atlantic margin on both sides of the ocean. its two well drilling programme onshore Cuba.
drillship via a range of supply boats with Harvey A preferred development concept for a This marks the beginning of field activities
Gulf International Marine. The Master Flight field size of approximately 0.7bn barrels would that will support the commencement of oper-
Services and Master Time Charter agreements involve an initial 16 wells, with Electric Submers- ations in Block 9; the drilling of two onshore
in respect of both of these crucial logistics ser- ible Pumps (ESPs), connected to subsea well- exploration wells testing four separate targets
vices have been reactivated, in accordance with heads, grouped in pods of 4 wells, then flowing with a combined Prospective Resource of 236mn
the revised drilling schedule, for implementation through a closed-circuit subsea flowline up indi- barrels of oil (Best Estimate). Melbana has a 30%
as previously envisaged. vidual risers to the FPSO. Thereafter additional interest in Block 9.
Physical inspection of the Stena IceMAX and wells would be drilled over the field life in similar Prospectivity: Cuba has a significant and
all associated equipment is scheduled to occur configuration to maintain a production plateau established hydrocarbon sector. About 97% of
shortly, with the vessel location currently in port and optimise FPSO throughput. its oil production occurs in a northern belt of oil
in Las Palmas, in the Canary Islands, Spain. A In a successful development scenario of production extending about 150 km to the east
series of contracts for service providers in the approximately 700mn barrels (i.e., of the P50 of the capital, Havana. The most significant dis-
region will be awarded soon, to facilitate this resource level at Perseverance #1 only), and covery to date is the Varadero field, a heavy oil
process. assuming a real $40 oil price, the project remains field estimated to have more than 11bn barrels
Conceptual Development Study and Update robustly economic with an NPV10 exceeding of oil in place. Melbana’s contract area lies to the
Potential Economics: In anticipation of drilling $2.5bn. In such a scenario, even at these relatively east and on trend of this northern production
of Perseverance #1, BPC has undertaken a study modest oil prices, an aggregate revenue stream of zone – close to the Varadero discovery.
to update its view on potential full-field devel- over $5bn would flow to the Government of The The targets for Melbana’s proposed two well
opment options, their potential costs in the Bahamas in royalty income and other payments drilling programme in Block 9 were selected fol-
current environment, and the ultimate possible over the life of the project. lowing an extensive review of the available data,
economic parameters of a full-field development In the event of a successful development which included several generations of seismic
surveys, gravity studies and prior wells.
Melbana’s first well, Alameda-1, is targeting
the same structure drilled in the late 1980s by
CUPET (Cuba’s National Oil Company) with a
well they called Marti 5, which itself was a follow
up to Marti 1 and 2, both of which had recorded
oil shows.
Marti 5 recorded oil shows over an 850-metre
gross interval and recovered a lighter oil (24°
API) than is typically found in Cuba.
In the early 2000s, CUPET revisited the Marti
2 and Marti 5 well sites and found them to be
leaking oil. A sample was taken from Marti 5
and it was found to be 32 degrees API. A sec-
ond sample taken from Marti 5 before CUPET
plugged both wells was reported to be about 38
degrees API.

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