BP set to partner Serica in deepwater offshore Namibia

Offshore staff

LONDON – BP has agreed to farm into Serica Energy’s license 0047 offshore Namibia.

This comprises blocks 2512A, 2513A, 2513B, and 2612A (part), which cover a total of 17,400 sq km (6,718 sq mi) in the deepwater central Luderitz basin.

Serica has an 85% interest in the blocks, in partnership with state-owned NAMCOR and Indigenous Energy.

Assuming approval by Namibia’s government, BP will pay Serica a sum covering its past costs and earn a 30% stake in the license by covering the full cost of a 4,150-sq km (1,602-sq mi) 3D seismic survey, to be performed by Polarcus.

The program, due to start in early April, is designed to delineate one of three large four-way dip closed structures already identified on the blocks; to identify potential for stratigraphic pinch out prospects which may have formed in conjunction with large channel sand features; and to demonstrate the presence of hydrocarbon indicators

Serica points out that the deepwater geological basins off Namibia, including the Luderitz, are only at a very early stage of exploration.  Although very large structures have been identified from seismic surveys, very few wells have been drilled in the deeper water Namibian basins and the full hydrocarbon potential of the area has not been tested.

Water depths in Serica's blocks range from 300-3,000 m (984-9,842 ft). For a company Serica’s size, drilling in these depths of water is costly and requires advanced drilling techniques and equipment. The company has therefore granted BP an option to increase its interest in the license by meeting the full cost of drilling and testing an exploration well to the Barremian level before the end of the first four-year exploration period.

Should this option be exercised, Serica's interest in the license will be 17.5% carried through the first well.  The company will continue to operate the license during the initial seismic period with BP taking over as operator if opts to drill and test a well.

3/15/2012

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