Tolmount sanctioned with first gas by end 2020

Premier Oil, Dana Petroleum and Antin has sanctioned the Tolmount gas field in the UK North Sea which is planned to be onstream towards the end of 2020. This represents major project for the partners with 500bcf of gas and plateau production of 300mmcfpd.

This field will further help steer the fortunes of the two upstream partners. Premier Oil is looking for longer term growth projects having been financially constrained for years under a debt mountain and now that Catcher is onstream. For Dana, the company has been strategically lost with its parent KNOC providing minimal guidance over the years.

In progressing this project, Premier Oil has struck a smart deal. Although not necessarily the cheapest form of financing, Premier Oil has been able to secure a deal which massively limits its capex spend on the development. By bringing in Antin to fund its share of the platform and export pipeline to the Easington terminal, it has halved its capex spend to USD120m which will largely be for drilling. In return, Antin will charge a tariff for use of the platform/pipeline transportation from Premier Oil’s share of revenues.

#Premier #KNOC #Dana #Tolmount #NorthSea #Antin

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Energean bearing fruit in the Eastern Med

Energean has published a new CPR highlighting the conversion of 2C resources into 2P reserves at the Karish and Tanin fields. Net 2P reserves for the fields now stands at 298mmboe with 22tcf gas and 32mmbbl liquids (gross) being upgraded. The company’s net 2P reserves including its Greek fields are now at 349mmboe.

A further 0.2tcf gas and 1mmbbl liquids remain in contingent resources relating to the Karish B reservoir and will be upgraded upon successful well production testing.

Energean is now thinking beyond its flagship development project with the recent award of its exploration acreage offshore Israel (Blocks 12, 21-23 and 31). These are estimated to contain 7.5tcf gas and over 100mmbbl liquids prospective resources. This massively enlarges the company’s exploration portfolio beyond the 1.3tcf Karish North prospect being drilled in early 2019. The company has secured an extension on the drilling rig for further exploration drilling should it have matured targets over the next 12 to 18 months.

#Karish #Tanin # Israel #Energean #EastMed #Greece

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All Tawke on Peshkabir: Is Tawke production declining?

The Tawke PSC encompasses the Tawke and Peshkabir fields. In 2017, operator DNO commenced production at Peshkabir and in 2018, drilled the Peshkabir-4 and -5 wells taking production up to 30-35mbopd.

However, the limited disclosure by DNO means it is difficult to break out the production on the Tawke PSC between the Tawke and Peshkabir fields. Based on various disclosures between DNO and partner Genel, it appears that production at Tawke is declining, masked by an uptick in Peshkabir.

The Tawke PSC has been producing just c.110mbopd. However closer study reveals that Peshkabir production is now compensating on falling production on the main Tawke field, and hence maintaining the c.110mbopd levels across the PSC.

Although more production history is required, there are now concerns of the problems encountered at TaqTaq by Genel where reserves and production were significantly reduced as water started to be produced from the reservoirs.

#Tawke #Peshkabir #TaqTaq #waterbreakthrough #Kurdistan #DNO #Genel

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Total sells Norweigian assets to AkerBP for USD205 million

Total has agreed to sell interests in a portfolio of 11 licences in Norway to AkerBP for a cash consideration of USD205 million. The portfolio includes four discoveries with net recoverable resources of 83mmboe.

The acquisition allows AkerBP to consolidate its position around the Alvheim, NOAKA and Skarv hubs as well as adding exploration acreage near its operated Ula field (AkerBP 80%). Increasing stakes in fields and discoveries and having control of tie-backs will help improve the economics of hubs for AkerBP.

For example two of the discoveries, Trell and Trine, are located near the AkerBP-operated Alvheim field (AkerBP 65% operated interest) and are expected to be produced through the low-cost Alvheim FPSO.

One important part of this transaction is the NOAKA area (North of Alvheim and Krafla Askja) where AkerBP and Equinor are pursuing the development for this complex with FID scheduled for 2020. Resources in NOAKA remain stranded until the partners agree a development concept and export route, but adding acreage and discoveries builds further critical mass on the path to bolstering the case for project sanction. Note that NOAKA is estimated to contain over 500mmboe in resources, but scattered across 15 discoveries hence the complexity of the development. Nevertheless this deal shows further intent by AkerBP to maximise recovery from the area.

Separately the Alve Nord discovery is located north of the AkerBP-operated Skarv field (23.8%) in the Norwegian Sea, and can be produced through the Skarv FPSO as another example of synergy.

The transaction is subject to regulatory approval. The full list of licences being transferred is as follows:

Source: Wood Mackenzie

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