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August 2012
Greetings from StratoChem Services!

 

A blessed Eid to you! The end of Ramadan saw our annual company iftar (breaking of the fast), with a delicious meal prepared by StratoChem staff and much friendship and laughter. Moving into September, we have exciting developments on the horizon. First off, marketing team members Adam Brauner and D.C. Mungo, joined by research and interpretation adviser Henry Halpern, will be attending the American Association of Petroleum Geologists (AAPG) conference in Singapore.  Plus, keep an eye open for our new website, which should start construction in the next few weeks!
 

For further information about our services please direct inquiries to: [email protected]

Joint StratoChem/Spectrum Levantine Basin Study Ready!  

 

It's no secret that offshore Lebanon is an upcoming oil and gas exploration hotspot.  StratoChem and Spectrum Geophysics have compiled together years' worth of geochemical and seismic data from studies conducted in the region into a brand new report guaranteed to shed vital light on the country's hydrocarbon prospects.  Don't get shut out of this exciting new exploration frontier. For more information, contact StratoChem Services or e-mail Spectrum representative Debbie Sewell at [email protected]!
 

Graph

An oil-prone outcropping profiled in our study. Want to know where? Contact us! 

Egypt: Minister of Petroleum Discussed Business Plans with the Heads of Foreign Companies Over the Coming Period

 

(www.egyptoil-gas.com - August 14th, 2012)

 

Egyptian flag small 

 

Eng.  Osama Kamal, Minister of Petroleum and Mineral Resources held a meeting with several heads of foreign companies operating in Egypt, British Petroleum (BP) and the German RWE, Malaysia's Petronas and British Gas and Gaz de France.

 

The meeting discussed the current status of the companies  work plans in the areas of exploration, production and well development along with the vision to develop and increase their investments to accelerate the implementation of development projects in the  discovered gas fields, especially in the deep waters of the Mediterranean Sea.

 

The minister stressed that the strong relationships that connect the Egyptian Petroleum Sector to  the foreign companies is a  like launching pad to expand activities and create an economic partnership to achieve the common interests of both sides.

 

 

The Heads of foreign companies stressed their commitment to pump investment in accordance with their plans and programs announced and continue the implementation of development projects in the  discovered fields, intensifying exploration to support oil & gas reserves, together with increasing production. They stressed that they will continue to expand in their activities in spite of all the challenges experienced in Egypt now, expressing their confidence in Egypt's good petroleum prospects status.

 

During the meeting, The Minister of Petroleum highlighted the companies work programs in the coming period, whereas BP will drill a new well with its partners Shell and Petronas in the Mediterranean Sea at a drilling cost of $ 400 million. Also, BG will drill a deep well in the Mediterranean Sea at a cost of drilling $ 200 million; continue in the ninth stage of development in the area of the West Delta Deep concession in the Mediterranean Sea to increase natural gas production rates.

 

The Minister pointed out that the companies' continuous commitment to implement their programs is a message of reassurance of Egyptian petroleum future in addition to credibility and commitment that relate the petroleum sector with its foreign partners.  

 

BP Expects to Start Libya Oil Exploration Drilling Next Year

 

( www.egyptoil-gas.com - August 26th, 2012)

 

  Libyan Flag 

BP PLC expects to start next year deep-sea drilling work off the coast of Libya, as the U.K. oil giant resumes it $2 billion exploration program halted by the rebel overthrow of Col. Moammar Gadhafi's regime last year.
 
The major oil company, which in May lifted a freeze on its activities in the North African country, will shortly begin the preliminary work needed before it can start drilling exploration wells, a BP spokesman said. Drilling itself will likely start some time before the end of 2013, he said.
 
London-listed BP is deciding on contractors to do underwater geological surveying, a tender invitation posted on the Libyan National Oil Company website showed. The deadline for tender submissions was Aug. 14.
 
As part of a deal agreed in 2007, BP will explore the frontier Sirt basin, which the company has described as being equivalent in size to more than ten of its deep-water blocks in Angola.

 

Under its 2007 contract, BP has already acquired 31,000 square kilometers of three-dimensional seismic data both offshore and onshore, where it holds acreage positions in the Ghadames basin in Libya's western desert.
 
BP has put increased exploration at the heart of its strategy as its attempts to set a new course in the wake of the 2010 Deepwater Horizon disaster. Chief Executive Bob Dudley wants the company to drill as many as 25 new exploration wells a year by 2013, which he hopes will help drive increased cash flow and allow it greater flexibility to return money to shareholders.
 
The company's stock still trades at a significant discount to peers like Royal Dutch Shell PLC, as investors price in the prospect of massive fines stemming from Deepwater Horizon, which triggered the worst offshore oil spill in U.S. history.
 

Egyptian Oil Flows from EPT in Excess of 2,500 BPD

(http://www.egyptoil-gas.com  - August 5th, 2012)                                                                          

 Egyptian flag small 

    

Extended production tests of the successful exploration wells in Abu Sennan, Egypt, commenced last week. The tests will continue for 6 months and to date have yielded a combined flow rate of up to 2,524 barrels of oil per day, with associated gas.

 

Beach Energy Limited advises that the extended production tests (EPT), on its four successful wells in the Abu Sennan concession (Beach 22%) in Egypt's Western Desert, have commenced.

 

The four wells, Al Ahmadi-1, GPZZ-4, Al Jahraa-1 and El Salmiya-1 flowed oil, gas and condensate during drill stem tests from various intervals, including the Abu Roash C, E, and G members and the Bahariya Formation. The combined maximum production rate achieved to date from the EPT was 2,524 barrels of oil per day, with associated gas.

 

The EPT is planned to continue for 6 months, which will enable the volume of hydrocarbons in place to be estimated. The EPT will also provide the basis for a development plan that will focus on the effective recovery of hydrocarbons within the various reservoirs.

 

A further three exploration wells have been approved by the Abu Sennan Joint Venture. The first of these wells, ASA-1X, spudded on 1 August 2012 and is targeting the GP-ZZ trend to the North East.

The Joint Venture equity interests in Abu Sennan are:  

 

Beach (via wholly owned subsidiary Beach Petroleum (Egypt) Limited) - 22%
Kuwait Energy PLC - 50% and operator
Dover Investments Limited - 28%

Kurdistan "Restarts Oil Exports"

 

( www.egyptoil-gas.com - August 9, 2012) 

 

      

Oil-rich Kurdistan has restarted crude exports as a "goodwill gesture" to the central government in the south, according to a report.

 

The autonomous region in the north of Iraq has started to pump around 100,000 barrels of oil per day following a shut-in over a dispute with the Baghdad regime, Reuters reported on Tuesday.

 

"As we promised, today at around 12:00 we restarted pumping oil at around 100,000 barrels per day as a goodwill gesture towards the central government in Baghdad," Reuters quoted an unidentified senior Kurdistan Regional Government official as saying.

 

A dispute over oil payments had led to the shut-in of exports. The central government has also been aggravated by a series of oil supermajors such as ExxonMobil and Total striking deal in Kurdistan without its consent.

Heritage to Sell Miran Stake to Fund Nigeria  

 

www.petroleumafrica.com - August 23, 2012)

 

   nigerian flag   

  

Heritage Oil is selling a portion of its natural gas block in Kurdistan, and borrowing money from Genel Energy Plc to raise $450 million to aid in funding its purchase of OML 30 in Nigeria.

 

The company said it will sell a 26% stake in Miran Block in Kurdistan to Genel and will take a $294 million loan from the company. The sale of the 26% stake will net Heritage $156 million and will increase Genel's holding in the Miran Block to 51%.

 

The company had originally planned to fund the OML 30 purchase through a rights issue.

 

"There is no need to proceed with the rights (issue) and any capital raising is dropped," Heritage's CFO Paul Atherton told Reuters.

  

Heritage Oil can repay the loan by transferring ownership of its unit Heritage Energy Middle East Ltd, which currently operates the Miran Block, to Genel.

 

"After we've completed the acquisition of OML 30 ... either party has the right to exercise this option, and we would expect to complete the same, by way of cancelling the loan in exchange for the remaining rights in Miran," Atherton said.

DSME Scores Angola Job

(www.egyptoil-gas.com - August 24, 2012)

Angola Flag

South Korea's Daewoo Shipbuilding & Marine Engineering (DSME) and Angola-based PAENAL will be constructing five fixed offshore oil production and processing platforms for Chevron. Word of the $1.9 billion contract had been making the rounds, although the source of the contract had been kept quiet.

 

"These are oil production and processing platforms with no drilling capabilities," a DSME spokesperson told Rigzone. Among the five platforms, at least one of the platforms will be used in the Mafumeria Sul project.

 

The basic design phase for the project has already begun and DSME plans to start constructing the five platforms in 2013. Most of the construction work will be done at the Paenal yard in Angola.

Genel Joins Sidi Moussa Party   

 

(www.petroleumafrica.com  - May 24, 2012)


Cleaner Morocco Flag Image  

Longreach Oil & Gas and its partners on the Sidi Moussa Offshore area in Morocco, Serica and San Leon Energy, have farmed-out a substantial stake in the permit to Genel Energy.  

Under the transaction, Genel will acquire a 60% equity interest in Sidi Moussa, pro rata from each of Longreach, Serica and San Leon according to their respective equity interests. In return, Genel will pay $1.3 million in recognition of past costs, and will pay for the drilling of the commitment well required under the terms of the first extension period of the Sidi Moussa permits (including the full costs relating to the state's, or ONHYM's, carried interest), up to a cap of $50 million.

As a result of the farm-out, Longreach will hold an ongoing interest of 1.5% in the Sidi Moussa permits with Serica and San Leon holding 5% and 8.5% respectively. The joint venture partners have already informed the Moroccan authorities of their intention to proceed into the first extension period.

 

Commenting, Bryan Benitz, chairman and CEO of Longreach, said: "Longreach and its joint venture partners are delighted to welcome Genel Energy into the Sidi Moussa Permits, offshore Morocco. The work undertaken on the Permits has shown considerable opportunities and
bringing in a company such as Genel will enable the partners to conduct near term exploration drilling on this license." 

Seismic Bulks Up Afren's East African Resource Portfolio 

(www.petroleumafrica.com  - August 23, 2012)

  

   




Afren plc has been busy adding up potential resources in East Africa through its seismic programs in the region. In its Half Yearly Results announcement the company said its prospective resources were upgraded following the maturation of its portfolio via seismic programs in Kenya, the Seychelles, Ethiopia, and Tanzania and its airborne gravity and magnetic surveys in Madagascar.

 

Afren's mean net prospective resources have been upgraded for the East African portfolio from 2,113 mmboe to 5,838 mmboe. In addition the company has identified new plays offshore Kenya and Tanzania.

 

On Kenya's Block 10A the company satisfied all of its seismic work commitments with the acquisition of 750 km of 2D seismic over the block in 2011, Tullow Oil (operator) is expected to spud a well on the Paipai prospect prior to the end of September. Acquisition of the planned 1,800 km of 2D seismic on Kenya's Block 1 is well underway and Afren is making good progress towards completion during Q4. Post period end, the company has increased its equity in the license to 80% under the terms of the original farm-in agreement.

 

Offshore Kenya on Block L17/L18 1,207 km of additional 2D seismic data was acquired targeting the deeper water portion of the block in January 2012. The preliminary interpretation of this data has identified four new highly encouraging prospects, in addition to the previously mapped prospects in the shallow water. These prospects represent a major new play with lower risk and greater materiality than the shallow water play, and together increase the mean prospective resources on the block from 94 mmboe to 1,088 mmboe, since the Black Marlin acquisition. In light of these encouraging results Afren has opted to acquire 1,000 sq km 3D seismic in H2 2012 in lieu of the well commitment, in order to better understand the deep water prospectivity, ahead of exploration drilling in 2013. In addition, an onshore 2D seismic survey of 120 km has been contracted to start in September to simultaneously continue maturation of the shallow water/onshore play.

 

Moving on to Tanzania's Tanga Block, during Q4 2011 Afren and its partners acquired over 900 km of 2D seismic data in deeper water areas of the license. Afren said that the interpretation of this data reinforced previous views of the prospectivity of these areas, in the same play that has also been identified in neighboring Kenya blocks L17/18. The result is an increase in mean prospective resources on the block from 1,026 mmboe to 1,244 mmboe. A 3D seismic survey of approximately 550 sq km is planned for H2 2012, prior to exploration drilling.

 

The presence of several large scale structures on all three of Afren's license areas in Seychelles were revealed in previously acquired seismic. A major new survey in Q4 2011 included new basins that could also contain significant Jurassic and Cretaceous sedimentary sections, and is currently being processed. Afren has elected to relinquish Area C in order to focus on higher priority plays in Areas A and B.

 

Finally in Madagascar on Block 1101 anairborne gravity and magnetic survey was completed in January 2012. Geological fieldwork was conducted in June, and 230 km 2D seismic acquisition has been contracted to start in September 2012. An exploration well is expected in 2013.

Issue: 8 - 2012

Ramadan 2012 StratoChem employees enjoy the annual company iftar meal to celebrate the end of Ramadan.

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August 2012 Oil
Gas August 2012

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News from StratoChem!
  

StratoChem Services looks forward to attending the American Association of Petroleum Geologists' 2012 International Conference and Exhibition in Singapore.  Entitled "Asia Pacific Resources: Fueling the Future," the ICE is a four-day event running from September 16th-19th, featuring a number of talks, classes, presentations and  company exhibits and focusing on unconventional petroleum systems in the region.  If you're in town, be sure to visit StratoChem representatives D.C. Mungo, Adam Brauner, and Henry Halpern at booth 1018!  

 

To compliment our rising profile in the oil and gas industry, we're also changing our look a bit here at StratoChem.  In the coming months, expect to see a brand-new, professionally-designed StratoChem website accompanied by all-new promotional materials. Even experience as extensive as ours can still look young, right? 

Antique Map of Egypt

A tourist map of Egypt from the mid-1800's. 

In This Issue
Greetings from StratoChem Services!
StratoChem Lab Opens in Oman
Egypt: Minister of Petroleum Discussed Business Plans with the Heads of Foreign Companies
BP Expects to Start Libya Oil Exploration Drilling Next Year
Egyptian Oil Flows from EPT in Excess of 2,500 BPD
Kurdistan "Restars Oil Exports"
Heritage to Sell Miran Stake to Fund Nigeria
DSME Scores Angola Job
Genel Joins Sidi Moussa Party
Seismic Bulks Up Afren's East African Resoource Portfolio
Egypt: New Rashpetco Well in Mediterranean

  


Upcoming Events
 
    
--------------------------------------------------------   
There are no abstract deadlines occurring in June 2012.  
  ------------------------------------------------------   
The following conferences occur in June 2012:
  • East Africa Gas Forum: Dar Es Salaam, Tanzania - starting September 5th, 2012     

  • 9th MidEast North Africa Mediterranean Upstream 2012 Conference: Geneva, Switzerland - starting September 10th, 2012
  • Gas/LNG Contracts, Negotiation and Pricing Masterclass: Singapore - starting September 10th, 2012
  • East African Power Industry Convention (EAPIC) 2012: Dar Es Salaam, Tanzania - starting September 10th, 2012
  • The 2nd Ghana Oil & Gas Summit: Accra, Ghana - starting September 13th, 2012  
  • 13th Annual FPSO Asia: Singapore - starting September 18th, 2012
  • East Africa New Frontier Exploration Forum: London, UK - starting September 19th, 2012 
  • SPE International Professionals in Energy Conference: Kuwait City, Kuwait - starting September 24th, 2012  
  • Third Egyptian Petrochemicals Conference: Cairo, Egypt - starting September 25th, 2012
  • 2nd Annual Shutdowns and Turnarounds Forum: Vienna, Austria - starting September 26th, 2012.      
For more complete conference information, go to the bottom of our home page at:

 
www.StratoChemServices.com.
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South Sudan to Restart Oil Wells in September, Full Output in a Year

  

(http://www.egyptoil-gas.com - August 9th, 2012)  

     

    

       

 

 

 

South Sudan hopes to resume oil production in September after reaching an interim agreement with Sudan on oil export fees, but it may take a year to return to full capacity, its top negotiator said on Tuesday.
 
The two countries agreed on Friday on how much South Sudan should pay to export its oil through northern pipelines, ending a dispute that led to the shutdown in January of South Sudan's output of 350,000 barrels per day.

 

The deal marked a step towards ending hostilities between the African nations, which came close to a war in April when border fighting escalated in the worst violence since South Sudan became independent a year ago.

 

Sudan still wants to reach an agreement on border security, however, before allowing its landlocked neighbor to export oil through its territory. Both nations need to mark their 1,800 km (1,200 miles) border, a tricky issue since much of it is disputed.

 

Pagan Amum, South Sudan's lead negotiator with Sudan at the African Union, said oil production would restart around September, especially in the Upper Nile state fields which contributed to much of the country's previous output.

 

"We're expecting to begin production immediately in September, especially for the Upper Nile oil, of Dar Blend," Amum said in an interview in South Sudan's capital.

 

"We expect, of course, to develop the capacity in time. It will not just be an automatic thing. It will take time to open one well after the other," he said.

 

"The production will begin from 150,000 (bpd)... and within three, four months, it would go to 180,000, 190,000 (bpd), and then it will go to the (old) level, and possibly higher than the time (before shutdown) within one year," he said.

 

Oil is the lifeline of both economies, especially of the war-torn South where it made up 98 percent of state income. Sudan is also suffering, with protests springing up against rising food prices as the government struggles to fund imports.

Industry sources said it might take six months to fully resume production, because the pipelines were filled with water to avoid gelling and some wells were not closed properly.

 

China was the biggest buyer of South Sudanese oil before the shutdown, and Chinese state firms are the biggest oil operators in the world's youngest nation.

 

BORDER SECURITY

Both countries plan to resume talks in Addis Ababa at the end of August to agree on their border and improve border security. Little progress has been reached so far as both sides accuse one another of supporting rebels in the other's territory.

Amum said South Sudan was ready to reach a security deal to establish normal relations and cross-border trade with Khartoum, which the South had fought during decades of civil war.

 

Striking a more optimistic tone than late on Friday when the oil deal was announced, Amum said: "We're aiming at a comprehensive deal ... We will establish the demilitarized zone, we will deploy monitors."

 

He added, "We will ensure full compliance by the two countries of non-interference in the affairs of the other."

Juba accuses Sudan of often bombing its territory. Sudan accuses Juba of supporting rebels of the Sudan People's Liberation Movement (SPLM-North), who are fighting the Sudanese army in the two border states of South Kordofan and Blue Nile.

 

Amum denied that allegation but admitted that South Sudan showed what he described as "solidarity" with the group.

"As people of South Sudan, we're in solidarity with all the marginalized groups in the world, and the marginalized groups in Sudan. It's solidarity. It's solidarity. It takes all its forms," he said.

 

The SPLM-North is part of an alliance with rebels from the western region of Darfur, which want to topple Sudan President Omar Hassan al-Bashir.

 

Amum said Juba preferred that the SPLM-North talk directly to Sudan but wants a "just solution" for them. The rebel group is composed mainly of people who sided with the South during civil war and were left in the north after the southern secession.

 

Amum said a comprehensive deal with Sudan would also call for a referendum for the disputed border region of Abyei and the right of return of the Dinka tribe, which is allied to Juba.

More than 100,000 people, mostly Dinka, fled when Sudan seized Abyei in May 2011 after an attack on a Sudanese army convoy that the United Nations blamed on the southern army.

For more information please contact us at [email protected] or call us at 202-2516-1075. 
 
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