Tanzania: ORCA Energy submits $50m capex plan for Songo Songo development next year

The ORCA Energy Group has planned a $50m capex for the continued development of the Songo Songo gas project in Tanzania next year. Via its subsidiary PanAfrican Energy, ORCA operates the wells and gas processing plant at the Songo Songo island in central Tanzania.

The 2022 programme includes $20 million for a 200 km2 3D seismic program over the Songo Songo development license, $11.5 million to expand the PanAfrican Energy’s existing downstream gas and CNG distribution system, and approximately $7 million for ongoing maintenance and facilities projects.

The remaining $11.5 million represents the expenditures associated with the current work over program and inlet compression project, representing a combined $63m investment approved in 2019.

The seismic programme would be pretty significant because PanAfrican Energy currently relies on 2D seismic lines ranging from 1978 to 2009. These are insufficient to maximise future upstream gas developments at Songo Songo.

“The 3D seismic program is required to de-risk both the future development drilling in the SS gas field and potential exploration drilling of prospective resources prior to the SS license expiring in October 2026.,” ORCA said last week.

Source: ORCA Energy Group

ORCA continues to see potential for growth and gas production at Songo Songo, even beyond 2026. For now, it is projecting a gas production of at least 100 MMsfd for 2022, including about 40 MMcfd of Protected Gas reserves for the Tanzania Petroleum Development Corp. (TPDC).

Details on the Songo Songo Integrated Gas Development are available in the “Projects” section within your Hawilti+ research terminal.

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FAR Ltd “encouraged” by preliminary findings at Bambo-1 offshore The Gambia

Australian independent FAR has advised that the Bambo-1 well offshore The Gambia has drilled 3,216m measured depth below the rotary table (MDBRT) out of 3,450m. The well has detected oil indications in rock cuttings and logging whilst drilling (LWD) data has interpreted hydrocarbons across several intervals. “Further wireline logging needs to be completed to confirm the finding,” Far said this morning. The company has also announced an increase in the drilling campaign’s cost after significant fluid losses were experienced, forcing the temporary halt of drilling operations. FAR is now planning to plug and side-track the well to continue drilling to the planned total depth. As a result, completing the Bambo-1 well is now expected to cost a total of $61.27m, up from $51.4m. According to FAR, the addition of the side-track programme has also extended the period of operation. Completion is now expected at the very end of 2021. Bambo-1 was spudded in mid-November and is drilling into a series of vertically staked targets with a combined estimated recoverable prospective resource of over 1 billion barrels. Chances of geological success range from 7% to 36%. It is FAR’s second exploratory well on the A2 Block after it drilled the Samo-1 well in 2018. Its main targeted horizons had then proved water bearing. FAR’s success case planning at Bambo-1 relies on a development of 150m barrels of oil via a 48,000 barrels of oil per day (bopd) floating, production, storage and offloading (FPSO) vessel. Three wells would then support production, gas and water injection operations.

TotalEnergies start production at CLOV 2 tie-back offshore Angola

TotalEnergies has achieved first oil from a second subsea tieback project in Block 17 offshore Angola. The French major has announced start of production at CLOV 2 today, a new tie-back expected to reach a peak of 40,000 barrels of oil equivalent per day (boepd) in mid-2022. The entry into production of CLOV 2 via a tie-back to the CLOV FPSO follows that of Zinia 2 last May, via a tie-back to the Pazflor FPSO. Both projects have a production peak capacity of 40,000 boepd each. Block 17 includes a total of four floating, production, storage and offloading (FPSO) vessels: Girassol (2001), Dalia (2006), Pazflor (2011) and CLOV (2014). It remains by far Angola’s biggest producing asset. Source: MinFin Since 2018, TotalEnergies has been engaged in a significant redevelopment of the block. The move was supported by an exrension of standardization of the dates for the production periods of most areas on the license in 2020. All are now valid until December 31, 2045. After Zinia 2 and CLOV 2, TotalEnergies is expected to achieve first oil from Dalia 3 in 2022, and from CLOV 3 in 2023. Details on the development of Block 17 offshore Angola are available in the “Projects” section within your Hawilti+ research terminal. Hawilti also publishes, twice a year, a detailed market report on Angola’s oil & gas sector available within its terminal.