The article says the find is not the major billion-barrel discovery that the Wall Street Journal told readers about last month in an error-filled report by Chip Cummings. Instead, Upstream said, it's "only 100 million barrels" and "is not considered a commercial discovery."
However, it is understood the well site was not chosen for its prime prospectivity but rather located at the margins towards neighbouring Block 2, both to prove up the aerial extent and calculate volumetrics.
The mention of Block 2 indicates there is at least some probability that the reservoir straddles the midline, or at l;east that Chevron worried that it did.
The secrecy surrounding the well has proven to be a thorn in the side of oil officials from Nigeria and Sao Tome, who hoped to command a better price for Blocks 6,7, 8 and 9 in a forthcoming auction.
Details of the Obo-1 find are scant, but Upstream understands this particular structure is estimated to hold only around 100 million barrels of oil.
The good news is that Upstream paints the discovery as one at the edge rather than in the enter of a reservoir the company believes exists in the block.
Nonetheless, OPEC President Edmund Daukoru, Nigeria's oil minister, was quoted by Platt's as saying that the size of the find "might have to be revised upward" from 1 billion barrels, since it is reportedly larger than that, he told the Oilgram News.
Here's the story from UpstreamOnline:
Chevron nod to talk of a find at Obo
By Upstream staff
CHEVRON has confirmed that it has made an oil and gas discovery with its Obo-1 wildcat in the Joint Development Zone (JDZ) managed by Nigeria and Sao Tome&Principe in the deep waters of the Gulf of Guinea.
The well was located on Block 1, where the Obo complex of structures offers several prospects, likely to be drilled this year and next.
Obo-1 logged a cumulative total of at least 45 metres of net hydrocarbon pay in multiple reservoirs and provided important reservoir rock and liquid samples, according to a Chevron spokesman.
"These need to be evaluated and integrated into the interpretation of the Obo area to determine the next step of the appraisal process," he added.
Given that the discovery well lies in 1720 metres of water, Obo-1 is not in itself considered a commercial discovery by operator Chevron and partner Exxon-Mobil.
However, it is understood the well site was not chosen for its prime prospectivity but rather located at the margins towards neighbouring Block 2, both to prove up the aerial extent and calculate volumetrics.
Details of the Obo-1 find are scant, but Upstream understands this particular structure is estimated to hold only around 100 million barrels of oil.
This figure is likely to disappoint companies hoping to generate a rush of interest in JDZ assets following the recently concluded licensing round.
However, the supermajors together with the smaller Block 1 partners, which include Dangote-Energy Equity Resources, a Nigerian-Norwegian tie-up, and AIM-listed independent Afren, are satisfied "regarding the geology of the zone". It is understood the forthcoming well, to be drilled later this year or early 2007, will target the heart of the predicted structure but the precise location has not yet been selected.
Chevron, which holds 51% of the licence, and ExxonMobil, which has a 40% stake, wanted to keep the well tight and not divulge more extensive information at this stage of the programme. However, the Abuja-based JDZ Authority was keen not to have negative interpretations emerging to dampen interest in the play.
Afren chief executive Brian O'Cathain said he was "delighted that the first well in this area has proven oil and gas. This bodes well for the play, and we look forward to further appraisal in this exciting exploration province."
Spudded back in January, the 63-day well has attracted intense attention with industry observers and Nigerian government officials alike indicating that a large-scale play had been identified and hinting at a world-class discovery.
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