Page 12 - Euroil Week 09 2020

EurOil PROJECTS & COMPANIES EurOil
Energean expands off Greece
GREECE
Energean says the deal gives it a low-risk exploration opportunity in its core region.
LONDON-LISTED Energean Oil and Gas has struck a deal to replace France’s Total as operator of an offshore concession in Greece, known as Block 2.
The producer will also take Total’s 50% stake in the block, whose other shareholders are Greece’s Hellenic Petroleum and Italy’s Edi- son E&P. Energean is preparing to complete its $850mn acquisition of Edison in the first half of 2020, therefore bringing its total interest in the block to 75%.
In a statement on February 27, Energean said its takeover of Block 2 would provide it with further exploration opportunities in the East- ern Mediterranean, its core region, with limited financial exposure.
Work so far at the site has identified a large potential target straddling Greece’s maritime border with Italy, it said. 60% of the prospect is in Greek waters, while the rest is in Italian territory. The structure is thought to be an analogue to the Edison-operated Vega oilfield off Italy.
Energean did not say how much it had agreed
to pay Total for its stake. But it did say it would spend €500,000 ($550,000) covering its share of minimum work obligation costs. This work will include a 1,800-km 2D seismic campaign, which Energean said would help de-risk the project.
Energean already produces oil off Greece at the Prinos concession, and averaged an output of 3,300 barrels per day (bpd) last year. Produc- tion is slated to fall to 2,000-2,500 bpd this year, however, as a result of spending cutbacks. It flows gas from the neighbouring South Kavala block.
The company is also the operator of Greece’s offshore Katakolo concession, where it aims to take a final investment decision (FID) on recovering 14mn barrels of oil this spring. It has interests in two more onshore blocks at the exploration phase.
Energean also works in Egypt, Israel and Montenegro. Its biggest potential lies at the Kar- ish and Tanin gas fields in the Israeli Mediterra- nean, which it aims to bring on stream in 2021. Plateau production is anticipated to be 8 bcm per year. ™
SGC to be full open by autumn 2020t
Azerbaijan’s Energy Minister Parviz Shahbazov met with the US Assistant Secretary of State for Energy Kurt Donnelly on February 27 to announce a push to finish the so-called Southern Gas Corridor (SGC), APA reported.
The US is fully supportive of Azeri efforts to become a counterpole to Russian imports of gas to Europe. However, the recent Trump administration has cooled off in its overall interest in the project so as not to irk Moscow.
The minister said the gas corridor is nearing its final stages, with it expected to be fully completed before winter 2020.
The minister said: “The US has shown its commitment to both the South Gas Corridor and all regional and global energy projects initiated by Azerbaijan.”
The sides discussed the expansion of the SGC to the Balkans, something countries including Ukraine have been open to, Ukrainian President Volodymyr Zelenskiy stated.
The SGC project envisages the transportation of gas produced by the pipeline to Turkey and Europe within the second phase of the Shah Deniz
NEWS IN BRIEF
gas condensate field operation in the Azerbaijani sector of the Caspian Sea.
The SGC project comprises the Shah Deniz-2 project, the South Caucasus Pipeline Expansion, the Trans-Anatolian Pipeline (TANAP) built in Turkey, the main pipeline of the Trans-Adriatic Pipeline (TAP) to the south of Italy through the bottom of Greece, Albania and the Adriatic Sea components.
Previous estimations for SCG completion have suggested a $45bn price tag.
Earlier on February 25, Azerbaijan announced it was in another set of discussions with Turkmenistan over the creation of a new joint venture project.
Turkmenistan wants to connect its oil and gas fields to those of Azerbaijan as means to add further revenue to its ailing economy but now has to face off with Iran, who has been opposed to any bid to route a pipe around its territory.
bne IntelliNews, February 27 2020
IOG continues North Sea farm-in talks with CalEnergy
An option held by CalEnergy Resources (CER) to acquire interest in two Southern North Sea licences owned by Independent
Oil and Gas (IOG) has now expired, but the two companies are still in talks over CER’s potential entry.
IOG confirmed on February 28 that the option held by its Core Project partner, CalEnergy Resources, to acquire 50% of the Harvey and Redwell licenses had expired.
The Harvey (P2085) and Redwell (P2441) licences are located in the UK Southern North Sea.
However, IOG added, discussions remain ongoing as to potential CER participation in these licenses.
To remind, IOG in July 2019 entered into binding agreements to farm out 50% of its Southern North Sea assets, excluding Harvey, to CER. As part of the farm-out, CER was also granted an option to acquire 50% of the Harvey licenses within three months of completion of the Harvey appraisal well.
It was agreed that, should this option be exercised, CER would pay an additional £20mn to IOG and a £0.95 per 1,000 cubic feet royalty on all of CER’s life-of-field net gas production from Harvey (equivalent to £61.3mn if Harvey produces IOG’s 129bn cubic feet best estimate prospective resources). This would maintain full alignment between IOG and CER across IOG’s entire SNS Assets.
The Harvey appraisal well 48/24b-6 was
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Week 09 05•March•2020