Petronas strikes oil offshore Suriname
KUALA LUMPUR, 2 November 2023
PETRONAS’ subsidiary, PETRONAS Suriname E&P B.V. (PETRONAS Suriname E&P), discovered oil at the Roystonea-1 exploration well in Suriname Block 52.
The well, located about 185 kilometres offshore in water depth of 904 metres, was successfully drilled to a total depth of 5,315 metres. It encountered several oil-bearing Campanian sandstone reservoirs. Further evaluation is being undertaken to determine the full extent of this discovery and its potential development synergy with the Sloanea-1 discovery made in 2020 within the same block.
Executive Vice President and Chief Executive Officer of Upstream, Datuk Adif Zulkifli said, “PETRONAS views the Roystonea-1 oil discovery as a positive development towards realising our differentiated barrel strategy for international upstream ventures, focusing on a material discovery with minimal contaminants.”
Vice President of Exploration, Mohd Redhani Abdul Rahman added, “The success of Roystonea-1 is expected to drive further exploration for commercially viable hydrocarbon resources in the surrounding areas. PETRONAS will continue to work closely with the host authority, Staatsolie, and partners to unlock Suriname’s hydrocarbon potential. We look forward to implementing safe and successful future exploration programmes together.”
Block 52, which covers an area of 4,749 square kilometres, is located north of the coast of Paramaribo, Suriname’s capital within the prospective Suriname-Guyana basin. PETRONAS Suriname E&P is the operator of Block 52 with a 50 per cent participating interest.
PETRONAS Suriname E&P operates Block 48 with 100 per cent participating interest. It is also a partner with 30 per cent non-operating participating interest in the adjacent Block 53 where the Baja-1 discovered oil in 2022.
Discovery on Block 52 is a result of ongoing efforts towards ensuring energy security to meet growing global energy demands.
Swedish firm Maha Energy gains rights in Venezuela
Fabiola Zerpa and Nicolle Yapur,
Bloomberg, November 02, 2023
(Bloomberg) – A Swedish oil firm is making a bold move into Venezuela after the U.S. eased sanctions, signaling the potential for more Bolivarian crude oil to reach global markets.
Stockholm-based Maha Energy gained rights to a stake in the PetroUrdaneta project that belongs to Brazilian industrial conglomerate Novonor.
Kjetil Solbraekke, the Swedish firm’s chief executive officer said. Maha could eventually take over all of Novonor’s 40% stake in the joint venture with SOC Petroleos de Venezuela if the project pans out. Without disclosing how much it plans to pay Novonor, ,he said in Caracas, “It will be challenging. We don’t intend to make big announcements, but just to boost gradually and bring competence and capital.”
Maha’s move into Venezuela follows a decision by the U.S. on Oct. 18 to lift sanctions for six months in exchange for greater political freedom in the once-mighty oil producer. Venezuela is expected to both expand its output and steer more of its existing production to refineries in the U.S., a development that could help contain U.S. gasoline prices ahead of the 2024 presidential campaign.
Maha is making a bet that OPEC founder Venezuela won’t return to geopolitical isolation of recent years. The U.S. can reimpose sanctions if Maduro does not follow through on a deal to renew political talks with the opposition and allow its candidates to compete in free and fair elections.
Nicolas Maduro’s regime stands to get more revenue from its main export product. PDVSA and Novonor declined to comment on the deal, which the oil ministry would have to approve.
The project is expected to increase from 1,000 bpd to between 20,000 to 40,000 bpd in two to three years, after a contract with the Maduro administration. Maha will focus on ramping up dormant wells through low-cost interventions. It is on the western coast of Lake Maracaibo, a region that was the birthplace of the country’s oil industry and still delivers about a fifth of production.
Solbraekke made clear his company will steer clear of the graft that pervaded the industry.
“There will be zero tolerance with corruption,.”
Maha could be the first in a wave of deals in Venezuela’s oil patch as long-standing partners like Novonor take advantage of the political opening to exit joint ventures with PDVSA. Novonor is under pressure to sell assets to pay off creditors in Brazil.
PDVSA has over 40 oil partnerships with foreign and local companies, some of whom have suspended activity due to the difficult business climate. Before aiming for Petrourdaneta, comprising three onshore oil fields, Maha examined several other ventures.
Maha, which has operations in Oman, the U.S. and Brazil, will pay Novonor 4.6 million euros to have exclusive rights for nine months to conduct due diligence and confirm operational feasibility, and the same amount for an additional 12-month extension,.
Cuba: Melbana Energy update
02 Nov 2023
Highlights
- Delivery of 20 tanker loads of oil to storage from early production testing of Unit 1B of Alameda-2.
- Production was run for 10 days, yielding valuable data on the reservoir and logistics performance.
- The well has been shut in to monitor pressure build up to complete data acquisition for reservoir modelling and field development planning.
- Casing and other inventory for the Alameda-3 Appraisal Well (to test the deeper two geologically independent reservoirs, designated Alameda and Marti) continues to arrive in country ahead of the commencement of drilling operations.
Executive Chairman, Andrew Purcell, commented:
‘The first phase of the early production operation from the Unit 1B reservoir in Alameda-2 is complete and it has delivered a lot of good data. The second phase is now underway, monitoring the pressure build up after shutting in the well. Together, this will give us more information on this reservoir’s extent and production characteristics to help us refine our field development plan.
I am heading back to Cuba in a few weeks to review procedures and operational status ahead of the commencement of drilling of our next appraisal well, the results of which we are all greatly looking forward to following the excellent outcome of the first appraisal well’.
Melbana Energy, a 30% interest holder in and Operator of Block 9 PSC onshore Cuba, provided this operational update.
Early production from Unit 1B at Alameda-2 is now complete. It was run for 10 days, twice the total duration of the Drill Stem Test conducted in this unit previously, resulting in 20 tanker loads of oil being produced and delivered to offsite storage.
The flow peaked at 1,183 barrels of oil per day (BOPD) and was intentionally choked back to ensure a constant rate for the test period to optimise the collection of reservoir data. The extended period of production also provided important performance data on logistical arrangements for the transport and storage of the oil produced.
The produced oil was sampled for Pressure Volume and Temperature (PVT) analysis and other data obtained were of good quality and are now being analysed by the Company’s geoscience team and consultants. The well has now been shut in and will remain so for two times the period of this early production to gain further valuable data on the reservoir’s characteristics by monitoring the build-up of pressure in the well. The conclusions drawn from this analysis will be an important factor in the refinement of the development plan, including well design and spacing, for this upper sheet reservoir.
Preparations for the commencement of drilling of the Alameda-3 Appraisal Well (the primary objectives of which are the appraisal of the two lower geologically independent oil-bearing reservoirs intercepted by Alameda-1 – designated Alameda and Marti, respectively) are also nearing completion, with remaining equipment (casing, well head, other inventory etc.) continuing to arrive in country.
Saudi Arabia fund
1 November
T&T Energy Minister Stuart Young met officials from the Saudi Fund for Development (SFD), the Saudi Arabian government agency provides development assistance and grants to developing countries by financing social and infrastructural projects.
It seeks to help countries achieve sustainable development goals and supports their economies by enhancing economic and social growth and opportunities.
Young and his permanent secretaries met SFD officials Yaser Albakri, director general of sectoral expertise and Yaser Alzuwayed, director of development monitoring.
Albakri outlined the SFD’s interest in working with the government to fund vital projects that will benefit communities and people. The fund is capitalised at approximately US$30 billion and already a presence in the Caribbean and Latin America.
Young welcomed the opportunity to strengthen the government-to-government relationship and business linkages between Saudi Arabia and TT which remains attractive for international business and investment and expressed the government’s willingness to collaborate with the SFD on energy-sector projects in the near future. Renewable-energy projects such as solar, wind and green hydrogen can be considered in this regard.
NGC, CNC, N2000 sign gas sales contracts
1 nov 2023
The National Gas Company of Trinidad and Tobago Ltd (NGC) completed negotiations with Proman for the execution of a gas sales contract (GSC) for Caribbean Nitrogen Company Ltd (CNC) and Nitrogen (2000) Unlimited (N2000), owners of two anhydrous ammonia plants, which anchor TT’s world-scale ammonia industry.
The agreements signed mark the culmination of many months of negotiations. These GSCs are welcome news for TT’s petrochemical sector, as they will support production at critical ammonia facilities on the Point Lisas Industrial Estate (PLIE).
NGC president Mark Loquan said, “These GSCs represent yet another successful outcome for our teams, our industry and our country. The fact that we have achieved this milestone signals the commitment of our companies to productive dialogue and engagement in pursuit of mutually agreeable contract terms, within the context of an evolving energy landscape.”
NGC looks forward to further strengthening its relationship with the Proman group of companies and building a stronger, more sustainable petrochemical industry for the future.
Executive director of Proman Trinidad, Claus Cronberger said, “Ammonia production is an important part of TT’s downstream sector and I would like to thank the negotiating teams for their dedication and hard work throughout this process. We look forward to working collaboratively with the NGC and the government to secure long-term gas supply and a sustainable and globally competitive future for our national energy industry.”