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Thursday, 22 June 2017 21:22

Eni ships first LNG from Jangkrik

Italian oil and gas company Eni carried out its first shipment of liquefied natural gas (LNG) produced for the Indonesian domestic market by the Jangkrik field, located in the Muara Bakau block, Kutei basin, in the deep water of Makassar Strait.

The 22,500 m3 cargo left the Bontang liquefaction plant in East Kalimantan and is headed to Bali, where it will be unloaded as part of a long-term LNG contract signed with Pertamina in June 2015.

Eni started gas production at Jangkrik ahead of schedule on 15 May 2017. Gas produced is processed onboard the (FPU) Jangkrik and then flows to the onshore receiving facility. It then reaches the Bontang gas liquefaction plant through the East Kalimantan transportation system.

The LNG produced is sold under long-term contracts, partly to Pertamina and partly to Eni itself, which will sell it as part of the development of its international LNG portfolio.

Eni operates the Muara Bakau PSC in which it holds a 55% stake through its subsidiary Eni Muara Bakau BV. The other PSC partners are ENGIE E&P with a 33.334% stake and PT. Saka Energi Muara Bakau with an 11.666% stake.

All activities are carried out in coordination with SKK Migas, the entity representing the government of Indonesia. Eni has been operating in Indonesia since 2001 and currently has a large asset portfolio across exploration, production, and development.

Production activities are located in the Mahakam River delta, East Kalimantan, through VICO, a joint venture between Eni (50% stake), which is the operator, and Saka Energi (50% stake). VICO, which is party to the Sanga Sanga PSC, produces on average 20,000 boe/d.

Separately, Eni signed a series of agreements with state-owned JSC KazMunayGas (KMG) to expand its scope of activities in Kazakhstan’s upstream sector. The deal renews the conditions for the transfer to Eni of 50% of the subsoil use rights in the Isatay block, located in the Caspian Sea, for exploration and production.

The block, which is estimated to have significant potential for hydrocarbon resources will be operated by a joint operating company (JOC) formed by Eni and KMG.

In addition, Eni and KazMunayGas EP, a subsidiary of KMG, have signed an agreement to further expand upstream technology co-operation and evaluate potential joint developments in new projects. The agreement also includes a technical and managerial training program for KMG EP staff.

Image: Eni

Monday, 19 June 2017 20:42

Qatargas, Shell ink LNG pact

Qatargas has signed a sales agreement to sell 1.1 million tonne of liquefied natural gas (LNG) annually to Shell for five years, commencing January 2019.

Supply will be sourced from its Qatargas 4 project, which is a joint venture between Qatar Petroleum (70%) and Shell (30%).  

CEO of Qatargas Khalid Bin Khalifa Al-Thani said this deal provides Qatargas with access to Shell's gas sales portfolio in the UK and continental Europe, as well as the flexibility to manage LNG deliveries to a global client portfolio.

It is expected that the LNG will be delivered to either the Dragon LNG Terminal in the UK or the Gate LNG Terminal in the Netherlands.

This agreement comes after Qatargas inked a deal in March that reaffirms its commitment to supporting the development of an LNG hub in Poland.

The Qatari gas producer agreed to increase LNG volume currently shipped to Polish Oil and Gas Co. to two million tonnes per annum. The new arrangement will come into effect in January 2018 and run until June 2034. 

LNG will be supplied from the company's Qatargas 3 development - a joint venture between Qatar Petroleum (68.5%) ConocoPhillips (30%), and Mitsui & Co. (1.5%).

It will be delivered on board the Q-Flex LNG vessels to the President Lech Kaczynski LNG Terminal in Swinoujscie, Poland.

Image: Qatargas 4 / Qatargas

Canadian company Sonoro Energy said it has purchased land, secured its environmental permit, and identified a drilling contractor for its Budong Budong appraisal well program in West Sulawesi, Indonesia.

Offsetting the original LG-1 well drilled in 2011, spudding of the LG-1 updip well, located 674m to the west of LG-1, is expected to begin in early August, targeting the Lariang pliocene 415, 450, and 490 sands.

PT Pontil, an Indonesian subsidiary of TSX-listed Major Drilling Group International, will conduct the drilling activities using a specialized, fit-for-purpose hydraulic rig ideal for the depth of the well.

Sonoro believes this is an efficient and cost-effective tactic toward the possible commercial development of such shallow hydrocarbon resources.

PT Pontil is now proceeding in its planning and permitting of the specified rig, currently located across the Makassar Strait in Balikpapan.

In addition, Sonoro has received approval from SKK Migas, Indonesia’s upstream oil and gas regulator, for its environmental plan submitted to drill up to seven wells in the Budong Budong production sharing contract (PSC), offsetting the original LG-1 well.

The firm has also purchased the land for the first appraisal well location, and may now proceed with preparations to construct the land site to accept a drilling rig and its associated services.

Sonoro said it has further identified and received bids for a majority of the other drilling services involved in the Budong Budong PSC appraisal well program and hopes to sign these contracts in the next several weeks.

With this progress, the Southeast Asia-focused company expects to spud the LG-1 updip well around 1 August, assuming the drilling rig passes its function tests and SKK Migas approvals to commence drilling.

Image: LG-1 drilling / Sonoro

Tuesday, 13 June 2017 22:52

Oil Search, Exxon in new PNG gas find

Oil Search confirmed positive production well test results from the Muruk 1ST3 exploration well in the Papua New Guinea highlands, southwest of the Muruk 1 gas discovery.

The production test was undertaken to assess reservoir productivity and recover hydrocarbon samples over the gas saturated Toro Sandstone interval, between 3968-4065m.

Whilst the test was constrained by tubing limitations and downhole issues, the results confirmed a good quality reservoir with a high deliverability consistent with the Toro reservoirs in the central fold belt.

The well flowed gas and condensate at a rate of 16 MMscf/d of gas on a 32/64in choke. Multiple hydrocarbon samples have been collected for further analysis.

“The Muruk drilling program has successfully discovered a potentially significant new gas field, 21km northwest of the Hides facilities and immediately north of the Juha gas field and further de-risks the gas prospectivity along the Hides to P’nyang trend,” Oil Search said in a statement.

Going forward, the data from the Muruk well and three sidetracks will be evaluated to assess the potential gas resource. Follow-up well site preparations are being scheduled for late 2017 ahead of a potential appraisal program in 2018.

Located in petroleum prospecting license (PPL) 402, the Muruk program is a joint venture between Oil Search (37.5%, operator), ExxonMobil (42.5%), and Santos (20%),

Santos acquired 20% interest in the highly prospective gas-rich acreage last December.

Image: Oil Search engineer in PNG / Oil Search