Statoil is training its sights on eastern and southern Africa as it looks to develop its global exploration portfolio and has taken stakes in blocks off Mozambique and South Africa.
The company has together with partners submitted a winning bid on the A5-A Block offshore Mozambique in the fifth competitive bidding round.
The A5-A Block is located in the Northern Zambesi Basin in the Angoche area about 1,500 km north of the capital Maputo.
The block covers an area of 5,145 sq km in water depths ranging from 200 m to 1,800 m.
Eni is the operator of the joint venture with 34% participating interest. Partners are Statoil and Sasol with 25.5% each and ENH with 15%.
The minimum work programme includes seismic and three commitment wells.
“The Angoche area is a very promising frontier basin with significant oil potential and builds on Statoil’s exploration strategy of access at scale,” said Nick Maden, senior vice president for Statoil’s exploration activities in the Western Hemisphere.
Statoil also has completed a farm-in deal with Exxon Mobil to acquire a 35% interest in the ER 12/3/154 Tugela South Exploration Right.
The remaining interests are held by the operator Exxon Mobil (40%) and co-venturer Impact Africa Ltd. (25%).
Maden said, “This opportunity is in line with Statoil’s exploration strategy of access at scale. It represents access into a frontier basin where we believe we see indications of an active petroleum system and which has impact potential.”
The Tugela South Exploration Right covers an area of about 9,054 sq km. It is located offshore eastern South Africa in water depths up to 1,800 m.
The farm-in deal represents a country entry for Statoil into South Africa. Statoil enters in an early exploration phase with a step-wise exploration programme.
Work commitments between 2015 and 2017 include the acquisition of 1,000 sq km of 3-D seismic data and geology and geophysics studies. There are no commitment wells during this exploration period.
Recommended Reading
Midstream Builds in a Bearish Market
2024-03-11 - Midstream companies are sticking to long term plans for an expanded customer base, despite low gas prices, high storage levels and an uncertain political LNG future.
Permian NatGas Hits 15-month Low as Negative Prices Linger
2024-04-16 - Prices at the Waha Hub in West Texas closed at negative $2.99/MMBtu on April 15, its lowest since December 2022.
Turning Down the Volumes: EQT Latest E&P to Retreat from Painful NatGas Prices
2024-03-05 - Despite moves by EQT, Chesapeake and other gassy E&Ps, natural gas prices will likely remain in a funk for at least the next quarter, analysts said.
US Natgas Prices Hit 5-week High on Rising Feedgas to Freeport LNG, Output Drop
2024-04-10 - U.S. natural gas futures climbed to a five-week high on April 10 on an increase in feedgas to the Freeport LNG export plant and a drop in output as pipeline maintenance trapped gas in Texas.
CNX Joins Crowd of Companies Cutting Back NatGas Production
2024-03-12 - Appalachian gas producer CNX Resources is reducing natural gas production in 2024 and announced delays for well completions on three shale pads.