Page 17 - AfrOil Week 23

AfrOil NEWS IN BRIEF AfrOil

UPSTREA M
United Oil & Gas reports

success with El Salmiyah-5
development well at Abu

Sennan, Egypt

AIM-listed United Oil & Gas has provided an
update on the El Salmiyah-5 development well
at the Abu Sennan concession, Egypt, in which
UOG holds a 22% working interest. Early anal-
ysis of logging and testing suggests that the well
significantly exceeds pre-drill estimates, further
building on the success of the last 12 months
which has seen UOG’s share of production
increase significantly. 3,000 bpd, from a production point of view, the activities.
El Salmiyah-5 was spudded on February 3, timing of our entry into the Abu Sennan licence The project entails the expansion of an exist-
2020, and reached total depth of 4,400 metres could not have been better. The Well result is a ing oil central processing facility, with the instal-
MD (3,911 metres TVDSS) on April 17, 2020. further realisation of the value we identified in lation of a new oil separation train to double the
The Well was targeting previously undrained the licence, and is likely to lead to our net pro- total capacity up to 40,000 barrels per day (bpd)
reservoirs of the El Salmiyah Field, with the pri- duction levels from the licence rising to over of oil. The project also includes the installation
mary focus being the Kharita Formation, and 2,500 boepd in the coming weeks - a significant of two additional remote gathering stations and
secondary objectives in the Abu Roash C and increase from January 2019, the effective date of more than 400 km of pipelines to connect the
Abu Roash E. After logging, testing, and com- the purchase of the asset. Importantly, with oper- new oil production wells, along with the imple-
pletion, the rig was released on May 21, 2020. ating costs of around $6.5 per barrel, this pro- mentation of gas lift and water injection facilities.
Net pay was encountered in all of the targeted duction is highly profitable at today’s oil prices. Project completion is scheduled after 40
intervals, totalling in excess of 120 metres for the “We firmly believe there is significant addi- months from the contract effective date.
well and exceeding pre-drill expectations sig- tional potential across the Abu Sennan licence Pierroberto Folgiero, Maire Tecnimont
nificantly. The main Kharita target interval was – and with further development going ahead Group CEO, stated: “After our previous award
encountered some 16 metres shallow to progno- to bring gas from the ASH field into produc- with Sonatrach in 2018, this achievement lets us
sis, indicating a larger than expected undrained tion this year, and with a deferred drilling pro- further consolidate our industrial footprint in
area updip of the existing wells in the field. This gramme ready to be re-instated should market the strategic Algerian market in the crucial oil &
was further supported by the encouraging well- conditions improve, we are looking forward to gas sector, having matured a solid experience of
test results, which achieved flow rates of 4,100 further activity and new flows from the asset.” projects’ execution in other Middle Eastern and
bpd, with a further 18mn cubic feet per day gas United Oil & Gas, June 03 2020 North African countries. We are really proud to
(about 8,700 boepd in total). strengthen a mutually beneficial relationship
With further testing planned, it would be with such prominent clients, as sound evidence
premature to draw any further conclusions on SER VICES of our successful operations in the Country.
the oil volumes associated with the Well. Unit- This is the fifth major award for our Group in
ed’s expectations are that although the well may Tecnimont wins new 2020 in spite of the ongoing COVID pandemic
initially be brought onstream close to the head- and is a further testament of our core business’
line test rate, in the longer-term, it is likely to be $400mn contract in Algeria resilience.”
choked back to lower levels for sustainable pro- Maire Tecnimont, June 09 2020
duction through the existing facilities. Produc- Maire Tecnimont announces that its subsidiary
tion from El Salmiyah-5 is expected to generate Tecnimont has been awarded by Groupement Senegal’s Gorée Offshore
solid operating margins even at low oil price lev- Bir Seba an EPC contract for the execution of
els due to Abu Sennan’s low operating costs of the Bir Seba Phase II and Mouiat Outlad Mes- to offer local capacity
around $6.5 per barrel. saoud Field Development Project, in Algeria.
Brian Larkin, CEO of United Oil & Gas, said: Groupement Bir Seba is composed of Algeria’s With first productions in 2022 and 2023 associ-
“As a development well into a known field, the El state-owned Sonatrach, Petrovietnam Explora- ated with ambitious local content goals, Gaspard
Salmiyah-5 well was always expected to encoun- tion Production Corp. and PTT Exploration & Mendy, CEO of Gorée Offshore spoke to African
ter hydrocarbons. However, with a headline fig- Production Algeria, a subsidiary of Thailand’s Energy Series: Senegal 2020 about how Senega-
ure of about 8,700 boepd achieved on test from national oil company PTTEP. The project will be lese companies are taking action to ensure high
the primary target in the Kharita, it is fair to say implemented in the Bir Seba and Mouiat Out- involvement of the indigenous service sector in
the results have significantly exceeded our pre- lad Messaoud oilfields, located in the Touggourt future oil and gas operations.
drill expectations. area, about 130 km northeast of Hassi Messaoud. He said: “Gorée Offshore Engineering is a
“When coupled with the outstanding result The overall contract value is approximately multi-disciplinary engineering services com-
from the ASH-2 well, which was announced $400mn. The scope of work includes full pany serving oil and gas clients operating in the
in January, and which is still producing at over Engineering, Procurement and Construction MSGBC basin.

Week 23 10•June•2020 www. NEWSBASE .com P17