VAALCO postpones crude sweetening project offshore Gabon

Offshore staff

HOUSTONVAALCO Energy has completed a workover campaign at the Avouma platform on the Etame Marin block offshore Gabon.

This concerned the South Tchibala 2-H, Avouma 3-H, and Avouma 2-H wells.

Production from the Avouma platform, one of four installations on the block, is tied back to the Petroleo Nautipa FPSO.

South Tchibala 2-H had been offline since August 2014 due to downhole equipment failure, but is now flowing around 3,000 b/d.

The Avouma 2-H post-workover rate has increased by around 500 b/d. However, the Avouma 3-H workover operation had to be suspended with the well secured for future use after downhole equipment became lodged in the wellbore.

VAALCO will assess whether further operations can be conducted on the well at a later date.

In addition, the company is deferring its offshore Gabon Etame Marin crude sweetening project until oil prices recover to levels that justify the program.

Although the study identified more than 15 potential solutions to remove hydrogen sulfide from produced fluids, none are economic at current prices.

Earlier this week the Transocean rig Constellation II began demobilizing and VAALCO has no plans for further drilling this year on the Etame Marin block.

The company is in discussions with Transocean regarding the remaining rig contract term which, it assesses as carrying a maximum net exposure of around $7 million.


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