Petroleum Africa
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Thursday, July 23, 2009
Noble Energy said that the Ministry of Mines, Industry, and Energy in Equatorial Guinea has approved its Plan of Development for the Aseng oil project, formerly known as the Benita, on Block I offshore the country.
Initial development of the field will include five subsea wells flowing to a FPSO where the production stream will be separated. Noble’s plan calls for the oil to be stored on the vessel until sold, while the natural gas and water will be re-injected back into the reservoir to maintain pressure and maximize oil recoveries.
The FPSO, to be located in approximately 3,100 ft of water, will be designed with the capacity to handle 120,000 boepd, including 80,000 bpd of oil. In addition, the vessel will be capable of re-injecting 170 Mmcf/d of natural gas. Storage on the vessel will be approximately 1.5 million barrels of oil and condensate.
Noble has already launched extensive engineering and design work over the past year. The project team is in place and all long lead items have been secured. The tender process for the FPSO and subsea equipment has been completed, and Noble said it is preparing to award most of the major contracts.
The company has secured two rigs to support the development work at Aseng. The Atwood Hunter semi-submersible, which has been working for Noble Energy offshore Israel, is expected to arrive on site in mid-2010 and a letter of intent has been signed on a second rig, which is expected to be delivered to Noble Energy in Q1 2010.
Noble estimates the total cost of development, excluding the cost of the FPSO, which will be leased, at $1.3 billion. The majority of this capital is to be invested in 2010 and 2011.
First production from the field is estimated to commence by mid-year 2012 at 50,000 barrels of oil per day gross (16,500 barrels per day net). Over the life of the project, Noble expects to recover gross hydrocarbon liquids of approximately 100 to 120 million barrels, with initial reserve bookings beginning in 2009. In addition, there is an estimated 450 to 550 billion cubic feet of gas resources at Aseng that will be produced as part of an integrated gas monetization project once the pressure maintenance phase is completed.
Charles D. Davidson, Noble Energy’s Chairman and CEO, said, “The sanctioning of the Aseng project is a very important milestone for our Company. This stand-alone project is a key component of our long-term growth strategy in West Africa and will provide critical infrastructure for our various other discoveries in the area. In addition, Aseng will be the first operated development in the region for Noble Energy, and we look forward to bringing this project online with our partners and the Republic of Equatorial Guinea.”
The Minister of Mines, Industry, and Energy, H.E Marcelino Owono Edu, stated, “My Ministry is pleased to be able to approve the Aseng Plan of Development in Block I, as it represents the first oil development in the Equatorial Guinea part of the Douala Basin. My Ministry looks forward to the development and monetization of gas resources already discovered in Blocks I and O and to continued exploration activity in this area. The approval of the Aseng Plan of Development will help Equatorial Guinea to accelerate its plans for the regional utilization of gas and oil. The Ministry recognizes the important part the Noble Aseng Plan of Development will play in the development of a regional gas hub.”
The next development objectives for Noble Energy in West Africa will be to accelerate and maximize condensate production at Belinda through gas-cycling, as well as advance an integrated gas monetization project. Exploration activities are also expected to resume in 2010 on the 1.5 million gross acres the company holds in the under-explored Douala basin.
David L. Stover, Noble Energy’s President and COO, said, “Aseng represents the first sanctioned project in our extensive lineup of major developments set to transform Noble Energy over the next few years. Our disciplined investment approach, strong balance sheet, and the phased-in project timing puts us in a very good position to execute these projects on schedule and bring significant growth to our business. We are excited about the path ahead and our ability to continue delivering strong value for Noble Energy and our shareholders.”
Noble’s partners on Block I include Atlas Petroleum International Ltd. (the Administrative Operator) with a 29% participating interest, Glencore Exploration EG Ltd. with a 25% participating interest, and Osborne Resources Ltd., a company within the PA Resources Group with a 6% participating interest. GEPetrol, the national oil company of the Republic of Equatorial Guinea, has a 5% carried interest.
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