Brasse continues to grow

Faroe has successfully completed the Brasse sidetrack appraisal well 31/7-2A. Very high quality reservoir sands were encountered and the well penetrated an 18m oil and a 4m gas column. Recoverable resource estimates have been increased to 56-92 mmboe (from 43-80 mmboe). The sidetrack was drilled to a total depth of 2,275m. It is located 1km to the west of the appraisal well (31/7-2) and 2.4km to the south of the main discovery well (31/7-1)....

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Centrica and Bayerngas combine forces

On 17th July 2017, Centrica and SWM/Bayerngas announced that they had reached agreement to combine their E&P businesses. The respective E&P businesses will be vended into a newly incorporated JV with Centrica holding 69% and SWM holding the remainder 31% in the JV. Key assets in the combined business include Kvitebjorn, Stratfjord and Ivar Assen in Norway, Cygnus in UK and Hejre in Denmark. Source: Centrica investor presentation The...

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Turkey-Genel gas update

In 2013, Turkey established Turkish Energy Company (“TEC”) as a vehicle to enter into partnerships with IOCs for dealings in Kurdistan. TEC was a state-backed entity and an offshoot of Turkish Petroleum International Company (“TPIC”). Earlier this year TEC was placed under BOTAS, the state-owned oil and gas pipelines and trading company, with gas coming back to one of the top items on the agenda of the Turkish government. It is now commanding attention at the highest levels of government, driven by a strong will to secure Kurdish gas to strengthen...

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Kurdistan independence referendum

At the beginning of June, President Barzani announced that the KRG will hold a referendum for independence from Federal Iraq on 25th September 2017. Given the strong nationalistic sentiment, continued calls for independence for many years and bipartisan support, the referendum is highly likely to have a "yes" outcome. The KDP, led by ‎Barzani, and is the largest party will use the renewed call to consolidate popular support as it seeks to sideline the other parties. ‎Barzani will also see this as his opportunity to get his name in the history...

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Brasse flow test shows promising results

Brasse was discovered in June 2016 and following a side-track, recoverable resources were estimated at 43 – 80mmboe. On 3rd July, a little after a year the original discovery was made, Faroe has reported successful flow testing achieving a maximum rate of 6,187mboepd. An upcoming side-track is planned, following which the resource estimates may be updated. An extensive data acquisition programme was undertaken including a Drill Stem Test, logging,...

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Kurdistan: The Rosneft connection

Rosneft provided a much welcomed source of funding for Kurdistan in February 2017 when it entered into an off-take contract for crude oil. Under the contract, Rosneft will purchase Kurdish crude until 2019 – the volume commitments were not disclosed. In April 2017, Kurdistan received USD1 billion for the first cargo of 600,000 bbl. The was an important landmark deal for the KRG, being the first time that crude was sold directly to a government-linked...

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Point Resources acquires ExxonMobil's Norwegian operated assets

On 29th March 2017, Point Resources announced its acquisition of ExxonMobil's operated upstream business in Norway for an undisclosed amount (estimated valuation of c.USD1bn). The deal transforms Point Resources into a top 10 producer on the Norwegian Continental shelf and increases production c.10-fold to 48mboepd while adding 128mmboe of oil-weighted reserves. The transaction adds significant technical capability with the transfer of 300...

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