Exploring West Africa 

Svenska is continuing its efforts to find and invest in new ventures for both exploration and for production. The main focus is West Africa but also the MENA region.

Guinea-Bissau – Preparing for Drilling

70.71% interest in Block 2, Sinapa
70.71% interest in Blocks 4A and 5A, Esperança

Prospects in Guinea-Bissau

The Atum and the Anchova prospects in the deeper waters of the western part of the licensed area are currently the main drilling targets. The shallower parts of the Sinapa and Esperança licences contain a number of salt-related traps which may be targets for future drilling. The old 3D seismic data over the Eirozes structure have been reprocessed with good results and the plan is to also reprocess the 2010 3D data covering both licences
during 2019.In 2017 the decision was made to drill the Atum prospect, located in the deep-water western part of our Guinea-Bissau acreage.

The plan is to drill in early 2020, depending on delivery of Long-Lead Items (LLI’s), the rig availability and approvals to drill the well. Meanwhile, a pore pressure study and top-hole hazard analysis have been completed at the chosen well location and a provisional Basis of Design has also been provided. Work on the Environmental Impact Assessment has been started. This will continue during 2019 and will be submitted to the government for approval in due time. Oil spill modelling work and oil spill contingency planning have also started in preparation for a drilling approval.

 



Operated by Svenska

Svenska farmed in to the Guinea-Bissau licences in 2007. When the previous operator, Premier Oil, decided to withdraw from the licences, Svenska assumed the operator’s role with an increased equity. The operator’s role involves responsibility for licence management, drilling activities and other technical work, as well as continuous liaison with the Guinea-Bissau authorities.
 In August 2017, Svenska and the JV received a three-year extension from November 2017 to November 2020. The licence extension came with a larger equity for Svenska, as well as improved fiscal terms for water depths greater than 200 metres.
 Despite the somewhat unstable political situation in the country, long-term Swedish support has facilitated Svenska’s discussions with the authorities. The current as well as the previous regime have shown serious commitment to this project.

Partnership

Svenska holds a 70.71 per cent equity interest in our operated Sinapa Block 2 and Esperança Blocks 4A and 5A licences. Our licence partner Petroguin, Guinea-Bissau’s national energy company, holds 10 per cent, while FAR Ltd holds the remaining 19.29 per cent.

Ivory Coast

27.39% interest in Block CI-40, Kossipo

Kossipo was discovered in 2002 approximately 7.5 kilometres east of Baobab within the CI-40 licence boundaries and as such enjoys the same terms and conditions as Baobab. At the time the discovery was not considered of sufficient size to be included in the Baobab development project. However, in 2014 a new 3D seismic survey was acquired over Baobab which also covered the northern part of the Kossipo prospect. New acquisition and processing technologies allowed a more confident interpretation, identifying flat spots that are assumed to be fluid contacts. This new interpretation justifies an appraisal well in the northern segment of the prospect.
 The Kossipo-2X appraisal well was sanctioned late in 2018 and will be drilled as the last well in the current Baobab Phase 4 drilling campaign in May/June 2019. The base case plan is to appraise the Kossipo North segment with one vertical well, and if successful it will be tested followed by development as a tie-back to Baobab. Tie-back studies have also been performed and the long lead items to drill the well have been ordered.

Partnership

Svenska, with a 27.39 per cent interest, is joined by operator Canadian Natural Resources International
(CNR), with 57.61 per cent, and the national oil company Petroci, with 15 per cent interest.

Nigeria – Focus on Field Developement

21.05% interest in OML 145, Uge

The development of the Uge field has been the main subject for discussion within the licence since 2018. Esso has proposed to participate in a broadband multi-client 3D acquisition and processing project covering the 1400 km2 area of OML 145. The main objective for this work is to improve imaging and resolution to better define deep leads and concepts.

There are a number of options going forward where Svenska believes that the focus should be on identifying commercially viable development solutions for the current resource rather than further exploration activities.

A for now long ongoing factor affecting the development of Uge Main is further delay in anticipation of the new PIGB, which may not only have an impact on technical solutions and affect the project economics but is affecting the whole of Nigeria's oil sector activity.

 

OML 145, UGE
The Uge Main discovery is located in the north-western part of the block in water depth of approximately 1,200 metres. It lies 50 kilometres south-east of the large Shell-operated Bonga field complex in OML 118 and about 60 kilometres east of Chevron’s Nsiko discovery in OML 140.
 Esso has undertaken detailed value enhancement development studies to refine and optimise the development plan for Uge in order to increase recovery at lower costs. A recent estimate for an Uge field development base case indicates Estimated Ultimate Recoverable Reserves (EUR) of approximately 320 mmboe. The licence also contains three potential tieback candidates in the Uge North, Nza and Orso discoveries.
 In 2017 a joint development with the adjacent Nsiko oil field and a shared FPSO was investigated with emphasis on the basis of design and cost estimates. The conclusion of this study was that a joint development was technically feasible, but the economics remained marginal.

Partnership

Operator ExxonMobil and partners Chevron, Oando and Svenska each hold a 21.0526% interest in the OML 145 licence. The Nigerian Petroleum Development Company (NPDC) holds the remaining 15.7896%.

Further reading