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October 2012
Greetings from StratoChem Services!
Kol sana wa entu tayebeen, as we say here in Egypt; a blessed Eid al-Adha to all of you! Our Eid break followed a full and rewarding month at StratoChem.  Between following up on some exciting leads from September's Southeast Asia trip to hosting Dr. Douglas Waples's talk on the 23rd to the AAPG/EAGE/SPE Shale Gas Workshop, we've had a lot of projects to keep us busy--and November won't be any slower!  StratoChem will be exhibiting in the Petroleum Exploration Society of Great Britain's 2012 London Expo from November 20th-22nd.  If you're in town, stop by and see us!
 

For further information about our services please direct inquiries to: info@stratochemlabs.com

Douglas Waples Speaks at BCA    

 

StratoChem Services sponsored a talk by renowned geochemist Dr. Douglas Waples on October 23rd. The talk, which occurred at the British Community Association in Cairo, covered the topic, "Novel Exploration Applications to Kerogen Kinetics: Organofacies, Sequence Stratigraphy, and Maturity."  Dr. Waples, a long-time associate of StratoChem, is known for his pioneering work with kinetics and his many writings on geochemistry, including three books and dozens of articles.  This year, the Rocky Mountain Association of Geologists honored Dr. Waples with their Outstanding Geologist award.

Waples Talk

Dr. Douglas Waples discusses potential applications of kerogen kinetics in hydrocarbon exploration. 

Circle Provides and Operational Update on Egypt

 

(www.egyptoil-gas.com - October 23rd, 2012)

 

Egyptian flag small 

 

Circle Oil Plc, the international oil and gas exploration, development and production company, is pleased to announce the following update regarding the Al Amir SE Field ("AASE") and the Geyad field.

 

Geyad-6 Well

Infill producer well Geyad-6 was spudded on 10 September 2012 and is located in the south central part of the Geyad field, east-north-east and updip of the Geyad-5 injector. The well's objective was to appraise both the Shagar and Rahmi sands for production in that location.  The well reached a TD of 6,200 ft MD before being sidetracked to the north-east, for geological reasons, as Geyad-6 ST1 and was then successfully drilled to a total depth of 6,350 ft MD into the Upper Rudeis. The well encountered 7 ft of net pay in the Kareem Shagar sand and the well has been completed as a Shagar sand producer. The well was perforated in the interval 5,996-6,006 ft MD and flowed oil and gas on test at an average rate of 1,559 bopd and 1.346 MMscf/d respectively, on a 24/64" choke. The well has now been placed on production at an initial flow rate of 913 bopd using an 18/64" choke.


Al Amir SE 13 Well

Following the successful completion of the Geyad-6 ST1 well, the rig has been mobilised to drill the infill production well AASE-13 in the west central part of the AASE field, located between AASE-4 and AASE-11 ST and updip of water injector AASE-7 ST.

 

Geyad 1X ST Well Work Over

This well is being re-completed as a producer in both Shagar and Rahmi sands.  The total oil production from this discovery well in the Geyad field is 764,000 BO.  Following re-perforation of these intervals comingled production will be flowed through a new completion string.

 

Production and Injection

Currently production from the AASE, Geyad and Al Ola fields is approximately 9,100 bopd (gross). Cumulative production from the NW Gemsa Concession has now exceeded 9.4 million barrels of 42 degree API Crude oil and water injection has now reached a cumulative injection of approximately 6.4 million barrels.  The NW Gemsa Concession, containing the Al Amir, Geyad and Al Ola Development Leases, covering an area of over 260 square kilometres, lies approximately 300 kilometres south-east of Cairo in a partially unexplored area of the Gulf of Suez Basin.

 

In the event of commercial discoveries, the concession agreement includes the right of conversion to a production licence of 20 years plus extensions. The NW Gemsa Concession partners include: Vegas Oil and Gas (50% interest and operator); Circle Oil Plc (40% interest) and Sea Dragon Energy (10% interest).

 

Prof Chris Green, CEO, said:

"Circle is pleased with the results of the Geyad-6 ST1 well, completed as a Shagar oil producer. This well result further proves up the northern extent and pressure communication of the Geyad field and will add to the ultimate recovery from the field. The rig has now being moved to drill the AASE-13 well, which is intended as a central western infill producer, for the AASE field well and is part of the overall plan to improve the productivity of the NW Gemsa accumulations."

 
Saudi Aramco to Invest $35B in Oil Exploration, Development

 (www.egyptoil-gas.com - October 17th, 2012)

 

  Saudi Arabian Flag  

State-owned oil giant Saudi Arabian Oil Co., known as Saudi Aramco, plans to invest $35 billion over the next five years in crude oil exploration and development in a bid to keep its oil production portfolio robust, the firm's chief executive said.
 
"We are continuing to strengthen our oil business to meet the rising call on our oil production; in fact, we plan to invest $35 billion over the next five years in crude oil exploration and development alone to keep our oil production portfolio robust," Khalid al-Falih said in a speech posted on Aramco's website.
 
"We are also planning to increase our conventional and unconventional gas supplies by almost 250% over the coming couple of decades," he said.
 
Saudi Arabia, the world's largest oil exporter, plans to greatly increase gas production to meet domestic energy demand and free up crude oil for export. However, the country hasn't yet discovered non-associated natural gas in sufficient quantities to replace oil as the fuel for its planned electricity plants and guarantee cheap feedstock for new petrochemical factories.

Saudi Aramco is fully owned by the Kingdom of Saudi Arabia. It is one of the largest oil and gas companies in the world with activities in exploration, production, refining, distribution, shipping and marketing.
 
Mr. al-Falih said that the Arab world's largest economy has many vast areas, which have still not been adequately assessed, and will be aggressively explored by Aramco.
 
The firm also hopes to diversify its energy portfolio and boost earnings from downstream activities by growing and integrating chemicals with its world-scale refining operations.
 
"If we succeed with our strategy we will be spending at least $500 million each year on chemicals-related technology, and creating a very large company of around 20-30,000 employees with well-paid jobs," Mr. al-Falih added.
 
Aramco has previously said it plans to increase its refining capacity to 8 million barrels per day from 4.02 million barrels per day in the next decade through expansion both at home and abroad.
 
Dana Gas Commences Production from New Egypt EGL Plant

(http://www.egyptoil-gas.com  - October 22nd, 2012)                                                                          

 Egyptian flag small 

    

Dana Gas PJSC, the Middle East's largest private sector natural gas company, announces that its joint-venture, the Egyptian Bahrain Gas Derivatives Company ("EBGDCo") NGL extraction plant region at Ras Shukheir in Egypt, first of its kind in the Gulf of Suez region, has loaded its first propane cargo on 1 October, 2012.
 
EBGDCo's first cargo shipment of propane was achieved on 1st October 2012 signalling scheduled plant production start-up on a commercial basis. The plant receives feed gas from the nearby Unit 104 plant of Egyptian General Petroleum Corporation (EGPC) at a rate of 55 million standard cubic feet per day (MMscfd) to 80 MMscfd. When fully operational, the plant will extract 120,000 tonnes per annum of propane & butane from a gas stream of 150 MMscfd. The feed gas rate is expected to increase gradually once gas is received from gas fields in and around Ras Shukheir area.
 
Rashid Al Jawan, Executive Director and Acting CEO of Dana Gas, said: 
               

"We are extremely pleased to complete this plant with our joint-venture partners. It is an important part of our long-term programme in Egypt, in terms of supporting their energy sector, and we are pleased that this has now been successfully completed. The Ras Shukheir plant is now our third gas processing plant to be commissioned in Egypt and we expect first revenue and cash flows in this quarter."
 
The total cost of the project was AED 460 million, which was partly funded through AED 318 million of project finance and AED 105 million of equity, with the remaining to be funded through internal revenue. Dana Gas has contributed AED 28 million as it's share of equity.
 
The gas liquids extraction plant is a valued added project and is adjacent to EGPC's Unit 104 gas plant at Ras Shukheir. The gas processing and marketing of liquid propane and butane are the main activities of the project. The plant is expected to recover 100% of the butane in feed gas form and 97% in propane form. The butane is sold in Egypt whilst the propane is destined to international markets. The residual gas will be supplied to the National Gas grid.
 
Dr. Patrick Allman-Ward, General Manager, Dana Gas Egypt, adds:
 
"This project exemplifies the cooperation between Dana Gas and EGPC to deliver LPG to both the domestic and international market. Their involvement will ensure the success of this cornerstone project and will contribute significantly towards our group production figures in Egypt."
 
The project has taken over two years to complete. Dana Gas has 26.4% interest in EBGDCo. The interest is held through Dana Gas' 66% ownership of Danagaz Bahrain. Other shareholders include Egyptian Natural Gas Holding Company (EGAS) with 40% shareholding and Arab Petroleum Investments Corporation (APICORP), a pan-Arab financial institution based in Saudi Arabia, with 20%.
 
Dana Gas is an operator in the Nile Delta currently producing gas and associated liquids from 11 fields, and is the 50% operator alongside Sea Dragon Energy and producing oil from one field in Upper Egypt. During 2011, Dana Gas Egypt produced 77.67 billion cubic feet of gas and 2.6 million barrels of liquids.
 
Dana Gas is currently the 6th highest gas producer in Egypt, a country whose gas reserves has doubled in the past 5 years to over 70 trillion cubic feet, and is among the world's top ten exporters of LNG. In 2007 Dana Gas made Southern (Upper) Egypt's historic first ever commercial oil discovery from its first exploration well drilled in the Komombo Concession. The Company is firmly committed to pursuing further investments, in partnership with the national Egyptian companies and other energy companies from the region and internationally.
Nigeria: "Oil-Gas Sector Mismanagement Costs Billions" 

( www.energy-pedia.com - October 28th, 2012) 

 

nigerian flag

      

A leaked report into Nigeria's oil and gas industry has revealed the extent of mismanagement and corruption that is costing billions of dollars each year. The report, seen by the BBC, was commissioned by the oil minister in the wake of this year's fuel protests to probe the financial side of the sector. It says $29bn (18bn) was lost in the last decade in an apparent price-fixing scam involving the sale of natural gas. It also calculated the treasury loses $6bn a year because of oil theft.

 

Nigeria is one of the world's biggest oil producers but most of its people remain mired in poverty.

 

The Petroleum Revenue Special Task Force report is one of several commissioned by the government - and follows an outcry after a parliamentary investigation uncovered a massive multi-billion fuel subsidy scam. That had been set up after angry nationwide protests in January when the government tried to remove a fuel subsidy.

 

A campaign has recently been launched to clean up Nigeria's oil sector. It is led by Patrick Dele Cole, a politician from the oil-rich Niger Delta region, who said that 90% of the stolen oil was refined in eastern Europe and Singapore.

 

The BBC's Will Ross in Lagos says this leaked report exposes the extent of the rot in Nigeria's oil and gas industry - all the way from the awarding of contracts to the sale of refined products. It is staggering just how much money the people of Nigeria appear to be missing out on, he says.

 

Nigeria's Oil Minister Diezani Alison-Madueke declined to comment on the specifics of the probe but said a report compiled from several committees set up earlier in the year to investigate the oil and gas sector was in its final stages and would be presented to the president soon.

 

The Petroleum Revenue Special Task Force, headed by former anti-corruption chief Nuhu Ribadu, revealed in its report that losses of revenue to the treasury over apparent gas price-fixing involved dealings between Total, Eni and Shell and government officials. The report does not suggest the companies broke the law but called for measures to be put in place to ensure all transactions are more transparent.

It said that oil and gas companies owe the treasury more than $3bn in royalties. For the period 2005 to 2011, it said $566m was owed in signature bonuses - the fees a company is supposed to pay up front for the right to exploit an oil block.

The report looked at the issue of discretionary licenses which companies do not have to bid for. Between 2008 and 2011 it found the Nigerian government had handed out seven discretionary licences, from which $183m in signature bonuses had not been paid.

 

A Shell spokesman said the company would not comment as it had not yet seen the report.

 

Our correspondent says it is well known that oil theft is a major problem in Nigeria, but the report says it may be reaching emergency levels as 250,000 barrels of crude oil could be being stolen every day - 10% of annual production.  

 

The leaked report said that small-scale 'pilfering' had been 'endemic since at least the late 1990s', but it also said it had heard allegations about thefts from crude export terminals, tank farms, refinery storage tanks, jetties and ports.

'Submissions to the Task Force alleged that officials and private actors disguise theft through manipulation of meters and shipping documents,' the report said. 'Yet there is also evidence that members of the security forces condone and, in some cases, profit from theft. The void in effective security likewise appears to increasingly hand over control of coastal and inland waterways to undesirable elements.'

 

The investigation showed that 40% of refined products - either refined in Nigeria or imported - currently being channelled through state-owned pipelines are lost to theft and sabotage.

 

Mr Ribadu's investigation calls for a total overhaul of the industry with an oil sector transparency law requiring all companies to report all payments and publish all contracts and licences. The Task Force also wants a special financial crimes unit to be established specifically for the oil and gas sector.

Kuwait Energy Makes New Oil Discovery in the Gulf of Suez Area of Egypt   

www.egyptoil-gas.com  - October 15, 2012)

 

   Egyptian flag small   

  

Kuwait Energy, one of the fastest growing independent oil and gas exploration and production companies in the Middle East, today announced a new oil discovery of Ahmad-2 well, located in the Area A license in the Gulf of Suez, Egypt, adjacent to the Shukheir North West field.

 

Kuwait Energy is the operator of the Area A license under a service agreement with Egypt's General Petroleum Company (GPC). Kuwait Energy holds a 70% working interest in the license, and the remaining 30% interest is held by Petrogas E&P, of Oman.

 

The Ahmad-2 well encountered oil in the Rudeis formation for the first time in the Shukheir North West field and Ahmad area, and initial tests showed a production flow rate of 1,300 barrels of oil per day (bopd).  This is the fifth exploration success in the Area A concession, and the 19th discovery in Egypt for Kuwait Energy since 2008.


Kuwait Energy's Chief Executive Officer, Sara Akbar, said, "We are delighted to announce yet another exploration success at the Area A concession, which follows the discovery of the West Ahmad-1X well earlier this year. Area A is now our largest producing oil asset in Egypt and we look forward to more successes."

 

Kuwait Energy started operating in Egypt in 2008 and its operations there contribute the largest share to the Company's current total working interest production. In Egypt, the Company operates three oil blocks, Area A, Burg El Arab development lease and the Abu Sennan concession, and has interests in two other non-Company-operated blocks, namely the Mesaha concession and the East Ras Qattara development lease.

Chariot Adds to Moroccan Acreage     

( www.petroleumafrica.com - September 13, 2012)

Moroccan Flag

Chariot Oil & Gas has picked up more acreage in Morocco. The company entered into a petroleum agreement with the government for a 75% stake and operatorship of the offshore Rabat Deep License.

 

The Rabat Deep is located adjacent to acreage Chariot recently acquired, the Loukos and Casablanca/Safi licenses. The latest license acquisition gives Chariot an aggregate acreage position of 16,207 sq km offshore Morocco.

The agreement remains subject to approval from the authorities and once complete, Chariot will be partnered with ONHYM, who will hold a 25% carried interest.

 

Under the agreement Chariot is required to reprocess existing 2D seismic datasets and then carry out a 1,000 km 2D seismic survey. Once the results of the initial work program have been received, Chariot may elect to move forward into subsequent phases of the agreement which would involve the acquisition of 3D seismic data and, following this, the undertaking of exploration drilling.


Paul Welch, CEO of Chariot, commented: "Morocco is a very desirable location for oil and gas exploration and we are very pleased to have acquired this additional acreage which is positioned to complement and balance our existing assets in this region. We now have a significant holding in this highly prospective province and we look forward to developing its potential. With these assets, alongside our licenses in Namibia and Mauritania, we have expanded and secured a very promising portfolio of opportunities offshore West Africa." 

Oil Deal Falls Under Zanzibar's Authority  

(www.petroleumafrica.com  - October 30th, 2012)


Zanzibar  

The government of Zanzibar has reached a deal on the sharing of oil revenues on future oil and gas production with mainland Tanzania. The deal ends a long-running dispute in a move that is hoped to spark exploration activities on the semi-autonomous island.

 

Tanzanian president Jakaya Kikwete and his Zanzibar counterpart Ali Muhamed Shein reached an agreement earlier in October allowing the Zanzibar government to commence preparations for legal and institutional arrangements to manage its oil and gas reserves, according to Seif Ali Iddi, Zanzibar's second vice president.

 

"The agreement has been reached between the two presidents; it's only awaiting ratification from the union parliament," Iddi said.

 

The deal marks a major breakthrough for oil and gas companies operating in the region's fast-growing sector. The dispute has delayed a number of exploration activities, including a drilling program in four offshore blocks operated by Royal Dutch Shell PLC, which acquired the licenses in 2002.

 

Oil and gas activities will be removed from union affairs and placed under the Zanzibar government which will be responsible for regulating the sector, including issuing new licenses according to a Dow Jones Newswire report.

RWE Dea Continues Successful Development of Gas Resources in Egypt  

( www.egyptoil-gas.com - October 9th, 2012)

  

Egyptian flag small

   



 

RWE Dea Egypt confirmed a further extension of the South Sidi Ghazy-1x discovery in the Egyptian Nile Delta. The latest development well follows the successful appraisal of the North Sidi Ghazy-1x discovery reported in August 2012. The start of production from RWE Dea's Disouq project is planned for 2013.

 

The well SSG-1-2 was the second to be drilled in the South Sidi Ghazy structure and reached a total measured depth of 2,833 metres. The well was drilled 1.3 kilometres northwest from the discovery and confirms the extension of the gas resources and the good Messinian (Abu Madi Formation) reservoir properties in a northwesterly compartment of the field.

 

"The recent successful appraisal of the North and South Sidi Ghazy discoveries together with the North West Khilala Field have confirmed our reserve base and will contribute to the core production during the first phase of the Disouq Development," explained Dirk Warzecha, General Manager RWE Dea Egypt. In the first phase of the project, RWE Dea develops seven gas discoveries together with the Egyptian Natural Gas Holding Company (EGAS) and the Suez Oil Company (SUCO). The production from the Disouq project is meant to supply gas to the growing Egyptian energy market.

 

The Disouq concession was awarded to RWE Dea in July 2004. The block covers an onshore area of 5,375 square kilometres within the Nile Delta region of Egypt.

 

RWE Dea Egypt and its predecessor organisation have been operating successfully in Egypt since 1974 and, as operator, can look back on three decades of oil production in the Gulf of Suez. In recent years the company made a number of major gas discoveries in Egypt and boosted its activities considerably with the acquisition of additional concessions. RWE Dea has a total of 12 onshore and offshore concessions in Egypt, across a concession area of about 19,000 square kilometres.

 

Issue: 10 - 2012

Doctors and Sallam Meeting in Oman, left to right: StratoChem Services General Manager Mohamed Said, Shuram Oil & Gas General Manager Salim Abdullah Al-Maskery, and StratoChem Services Operations Manager Tarek El-Azhary.

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News from StratoChem!
  
During a visit to Muscat, Oman, in mid-October, StratoChem Services General Manager Mohamed Said and Operations Manager Tarek El-Azhary attended several presentations on unconventional hydrocarbons at the AAPG/SPE/EAGE Shale Gas Workshop held in Oman from October 15th-17th.  Moreover, it gave StratoChem a chance to meet with its Muscat-based partners in Shuram Group to discuss some intriguing new business directions regarding the Shuram-run SCS lab in Oman. 

Oman Lab 2

Geochemists at StratoChem's Muscat lab. 

In This Issue
Greetings from StratoChem Services!
Douglas Waples Speaks at BCA
Circle Provides an Operationall Update on Egypt
Saudi Aramco to Invest $35B in Oil Exploration, Development
Dana Gas Commences Production from New Egypt EGL Plant
Nigeria: "Oil-Gas Sector Mismanagement Costs Billions"
Kuwait Energy Makes New Oil Discovery in Gulf of Suez
Chariot Adds to Moroccan Acreage
Oil Deal Falls Under Zanzibar's Authority
RWE Dea Continues Successful Development of Gas Resources in Egypt
Indonesia: Ramba Energy Spuds Selong-1 Well

  


Upcoming Events
 
    
--------------------------------------------------------   
There are no abstract deadlines occurring in November 2012.  
  ------------------------------------------------------   
The following conferences occur in November 2012:
  • Algeria Future Energy: Algiers, Algeria - starting November 4th, 2012  
  • Abu Dhabi International Petroleum Exhibition and Conference: Abu Dhabi, UAE - starting November 5th, 2012 
  • North Africa Oil & Gas Summit: Vienna, Austria - starting November 6th, 2012
  • The East Africa Oil & Gas Summit: Nairobi, Kenya - starting November 12th, 2012
  • 11th Annual Deepwater Angola Summit 2012: Luanda, Angola - starting November 14th, 2012
  • 6th Gas Tech Cairo Conference & Exhibition: Cairo, Egypt - starting November 18th, 2012   
  • The West African Power Industry Convention (WAPIC 2012): Lagos, Nigeria - starting November 19th, 2012
  • The Libya Summit: Istanbul, Turkey - starting November 20th, 2012  
  • Powering Africa--Finance Options: Cape Town, South Africa - starting November 26th, 2012
  • Refining Technology Africa: Johannesburg, South Africa - starting November 26th, 2012  
For more complete conference information, go to the bottom of our home page at:

 
www.StratoChemServices.com.
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A striking rock formation in the Black and White Desert. 
Indonesia: Ramba Energy Spuds Selong-1 Well on the Lemang Block in South Sumatra, Indonesia 

   

( www.energy-pedia.com - October 30th, 2012)  

     

Indonesian Flag     

       

 

 

 

Ramba Energy has commenced drilling of the Selong-1 well in the Lemang block located in South Sumatra, Indonesia. The well was spudded at approx. 16:00 hours on 29 October 2012.

 

The Selong-1 well is located in the Lemang block's Akatara Prospect, and has a true vertical depth of 6,350 feet. The Selong-1 well is targeting the Intra Gumai Sand Formation, Upper Talangakar Formation, Lower Talangakar Formation and the Crystalline Basement. The Company expects drilling operations to take approx. 20 days, with possibly an additional 20 days for testing and analysis.

The Company will make such further announcements to inform shareholders of any updates or developments at the Lemang block. 

 

Background

 

The Lemang block - located in Riau and Jambi provinces, Sumatra, Indonesia - holds significant potential for Ramba, as the block indicates a potentially strong upside. The block is located in the South Sumatra basin, a region with one of highest technical success rates for oil and gas exploration. The Lemang block is adjacent to the Jabung block, an already producing block operated by petroChina with output of approx. 58,000 boepd of oil and gas (Jakarta post, 2010). In 2009, Ramba purchased a 41% working interest in the block for a purchase price of uS$7 million. Since acquiring a stake in the block, the Group and has identified 27 prospects and leads. Ramba's local subsidiary has a 51% interest in the Lemang block*. The Lemang PSC agreement expires in 2037.

In July 2011, the Group announced the results of an independent, third party valuation of the Lemang block. International petroleum consultancy DeGoyler & Macnaughton valued Ramba's 41% stake in the Lemang block at US$193.6 million**. The report values 10 of Ramba's 27 prospects and leads throughout the block. The valuation estimates the block as holding 511 million barrels of oil and 468 billion cubic feet of gas (gross prospective recoverable resources). The 10 prospects and leads covered by the report are Akatara, Wajik, Ampyang, Sagon, Arem Arem, Smd-1, Cmp-1, Ampyang, Sagon and Wajik. 

 

Following the favourable results from the D&M Report, Ramba announced the Group's intention to drill the Selong-1 well in the block's Akatara Prospect, located in the Southeast portion of the block in proximity to other oil and gas discoveries. The latest D&M evaluation of the Akatara Prospect estimates Akatara's mean prospective resources at 147.2 million barrels of oil, not adjusted for the probability of geologic success (pg), and at 37.4 million barrels of oil when adjusted for geological success at 25.4 per cent.  (Source: Annual Report 2011)

 

*Note: As a result of restructuring with respects to the Group's interest in the Lemang PSC in December 2011.
**Note: This valuation was conducted prior to the restructuring with respect to the Group's interest in the Lemang PSC in December 2011.

 
For more information please contact us at info@stratochemlabs.com or call us at 202-2516-1075. 
 
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