Page 10 - LatAmOil Week 32

LatAmOil
NEWS IN BRIEF
LatAmOil
UPSTREAM
BHP approves Ruby petroleum project
e BHP board has today approved US$283mn in funding to develop the Ruby project in Trini- dad and Tobago. Total investment for the oil and gas project (including pre-commitment capital) is approximately US$500mn (gross, 100% basis).
e Ruby Project is located in the Block 3(a) development area of Trinidad and Tobago and provides an opportunity for BHP to safely deliver value by producing resources in the Ruby and Delaware reservoirs. e project consists of ve production wells tied back utilising the latent capacity of the existing processing facilities, proven technology of the existing operated asset, and newly acquired ocean bottom node seismic imaging.
e project has Estimated Recoverable 2C Resources of 13.2mn barrels of oil (100% basis) and 274bn cubic feet (7.76bn cubic metres) of natural gas (100% basis). First production is expected in the 2021 calendar year and is esti- mated to increase production by about 16,000 barrels per day (bpd) of oil and 80mn cubic feet per day (2.27mn cubic metres) gross at its peak.
Geraldine Slattery, BHP’s president oper- ations petroleum, said: “ is is an important milestone for BHP in Trinidad and Tobago. Ruby aligns well with our strategy of maximising value from our existing assets, bringing competi- tive near term value and volume growth.”
BHP, as the operator, holds a 68.46% inter- est, and Heritage Petroleum and the National Gas Company of Trinidad and Tobago (NGC) hold the remaining 20.13% and 11.41% inter- est, respectively. The Block 3(a) joint operat- ing agreement requires at least two parties and 65% of the working interest to approve the
investment.
BHP, August 08 2019
Talos Energy reports on
drilling and exploration
activities in Mexico
Talos has concluded its three-well appraisal of the Zama discovery with highly encouraging results. e Zama-3 well was drilled to test the southern extent of the reservoir. Well results included the logging of approximately 1,000 feet (305 metres) of gross TVD sand and 748 feet (228 metres) of gross TVD oil pay, with better than expected net-to-gross ratios across the pay sections and the capture of a new record whole core (717 feet, or 218.54 metres). The Zama appraisal program was completed 39 days ahead of schedule and under budget. Appraisal opera- tions were successfully completed with zero lost- time incidents or environmental issues.
Throughout the appraisal program, Talos collected a substantial amount of data, including approximately 1,450 feet (442 metres) of whole core, 59 uid samples from the reservoir, over 200 pressure points, 25 logging runs and two extended ow tests. is data will be incorpo- rated into an independent, third-party resource estimate to be prepared by Netherland, Sewell & Associates, Inc. by year end 2019. Talos expects updated resource guidance to fall in the upper half of its previously disclosed pre-appraisal estimated range of gross recoverable resources of 400-800mn barrels of oil equivalent (boe).
front-end engineering and design (FEED) work is advancing via an engagement with io Oil & Gas Consulting (a joint venture between Baker Hughes GE and McDermott Interna- tional) to optimise the recovery and economic development of the eld. Talos has signi cantly
narrowed the number of potential development concepts and the prevailing concept design will be the basis for development. Additionally, uni- tisation discussions with Petroleos Mexicanos (Pemex) are ongoing with the goal of reaching a nal investment decision (FID) in 2020.
Block 2 and Block 31 exploration pro- gramme: In October 2018, Talos announced a cross-assignment transaction with a subsidiary of Pan American Energy (PAE), pursuant to which Talos conveyed a 25% participation inter- est (i.e., half of its interest) in Block 2 to PAE in exchange for a 25% participation interest from PAE in Block 31, resulting in a four well pro- gramme consisting of two wells each on Blocks 2 and 31.
Yaluk-1EXP, the second well at Block 2, was drilled in the second quarter of 2019 and encountered a non-commercial quantity of hydrocarbons. Net costs to Talos were approx- imately $8.0mn.
The first shaft at Block 31, the Xaxama- ni-2EXP well, spud in July and reached total depth in early August with encouraging results. It is the rst well in the Olmeca project area, which is a shallow oil project set up by the Xax- amani-1 exploratory well drilled in 2003, which logged oil pay in several intervals. PAE expects to perform a drill stem test in the Xaxamani-2EXP before moving to the Tolteca well, which has similar objectives. e project is located in very shallow waters (approximately 60 feet, or 18.3 metres) and less than two miles from shore. Talos will provide more details at the conclusion of the programme.
Talos Energy, August 07 2019
DOWNSTREAM
improved facilities boost
Petrojam’s asphalt export
capacity
Jamaica’s economy stands to benefit from increased foreign exchange earnings, following Petrojam’s improved infrastructural capability to export larger volumes of asphalt. On July 30, 2019, Petrojam, for the rst time in the history of its operations, exported a shipment of 22,500 barrels of performance-grade asphalt valued at approximately $1.45mn.
Petrojam’s General Manager Winston Wat- son explained that this shipment represented a milestone in the company’s operation. “ is is not the rst marine shipment of asphalt for Petrojam. Previously, we were only able to export smaller volumes of asphalt to several Caribbean territories – up to 7,000 barrels of asphalt from our dry cargo dock. Today, with an improved
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Week 32 14•August•2019