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Norwegian oil giant increases foothold in SA

PLUMBING NEW DEPTHS Statoil has numerous projects along the Norwegian continental shelf, as well as around the Southern African coast from Angola to Tanzania

PLUMBING NEW DEPTHS Statoil has numerous projects along the Norwegian continental shelf, as well as around the Southern African coast from Angola to Tanzania

Photo by Statoil

20th October 2017

     

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Norwegian oil and gas company Statoil has acquired a 35% interest in exploration right 12/3/252 Transkei-Algoa, south of the Eastern Cape coastline, in South Africa, which is in line with its aim to position itself for global opportunities.

This announcement, made in September, follows the conclusion of a transaction with US oil and gas corporation affiliate ExxonMobil Exploration & Production South Africa.

At the time of the announcement, Statoil southern hemisphere exploration senior VP Nick Maden explained that ExxonMobil, designated as the approved operator, retains 40% interest in the licence area, while Africa-focused oil and gas company Impact Oil & Gas holds the remaining 25%. The licence covers about 45 000 km2 in water with depths up to 3 000 m.

Statoil has also completed a transaction with oil and energy company OK Energy, acquiring a 90% interest and operatorship in exploration right 12/3/257 East Algoa. The remaining 10% interest is held by OK Energy. The licence covers about 9 300 km2.

“These transactions strengthen Statoil’s position in South Africa and our long-term exploration portfolio. This is in line with our global exploration strategy of early access in basins with high potential,” said Maden.

Statoil acquired its first licence in South Africa in 2015, securing a 35% interest in the ExxonMobil-operated Tugela South exploration right, with Impact holding the remaining 25%.

The Tugela South exploration right is located south-east of the Richards Bay coastline and covers an area of about 9 000 km2, with depths up to 1 800 m.

According to the Statoil website, work commitments for the Tugela South right for the period covering 2015 to 2017 include the acquisition of 1 000 km2 of three-dimensional seismic data and geology and geophysics studies. There are no commitment wells during this exploration period. The website notes that the information obtained from the initial studies and seismic survey will form the basis of the holders’ next steps.

Statoil’s 2017 Exploration Programme
In a statement released in January, Statoil exploration executive VP Tim Dodson announced that Statoil planned to drill around 30 exploration wells in 2017, an increase of about 30%, compared with 2016.

He explained that the majority of the wells would be drilled on the Norwegian continental shelf (NCS). Elsewhere, Statoil’s 2017 exploration drilling activity would comprise growth opportunities in basins where Statoil was already established, as well as new frontier opportunities.

“Following our takeover as the operator of the Carcara discovery last summer, Brazil has become even more important in Statoil’s portfolio, not least on the exploration front. We are stepping up exploration also in the UK, with plans for three Statoil-operated exploration wells in 2017,” said Dodson.

He added that partner-operated wells in other parts of the globe would be spudded in established basins such as the US Gulf of Mexico and in new frontier areas like Indonesia and Suriname. Further, Statoil had also decided to partner with companies in onshore exploration drilling planned in Russia and Turkey.

“The 2017 exploration plans demonstrate our long-term commitment to the NCS, while we continue to position the company for global opportunities. If everything goes to plan, we will, this year, have exploration drilling activity in 11 countries on five continents,” said Dodson.

He commented that the “strong drilling programme for 2017” resulted from the company taking advantage of improvements within Statoil as well as changed market conditions. “We have been able to get more wells, more acreage and more seismic data for our exploration investments [of late],” he noted, while advising that exploration drilling plans would be dependent on permitting, rig availability and partner approvals.

Other African Licences
Statoil also has operations and exploration licences in Angola, Tanzania, Mozambique and Algeria.

It has been active in Angola since 1991 and the Angolan continental shelf is the largest contributor to its oil production outside Norway. Statoil holds stakes in blocks 25 and 40 in the Kwanza pre-salt basin, as well as blocks 15, 17 and 31 in the Congo basin. It is a partner in eight Angolan offshore producing fields in the Congo basin, totalling a production capacity of about 220 000 bbl/d.

The company established an office in Algeria – the largest African gas producer – in 2003 and has since assisted in the development of two of the largest gasfields in the country.

“Together with energy company BP and Algerian State-owned company Sonatrach, we are involved in the development and production of gasfields in the country, [in the Algerian towns of] In Salah and In Amenas,” Statoil states.

In 2014, a new exploration licence, Timissit, was awarded to a consortium comprising Statoil and Dutch energy company Shell. Statoil is the operator with 30% equity, while Sonatrach holds 51% and Shell the remaining 19%. The licence is located in south-east Algeria and covers an area of 2 730 km2.

In 2012 and 2013, Statoil and ExxonMobil made significant Tanzanian gas discoveries, namely Zafarani, Lavani, Tangawizi and Mronge. In 2014, the Piri and Giligiliani discoveries were made. A year later, Statoil added another Tanzanian discovery – Mdalasini.

The company says these discoveries have proven a combined in-place volume of around 622-billion cubic metres.

Statoil and partners also submitted a winning bid on the A5-A block offshore Mozambique in 2015. The partnership is negotiating with State authorities regarding the award.

The A5-A block is located in the Northern Zambezi basin, about 1 500 km north of Maputo and covers 5 145 km2, with depths ranging from 200 m to 1 800 m.

Edited by Tracy Hancock
Creamer Media Contributing Editor

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