Cairn considers next-phase drilling offshore Senegal

Offshore staff

EDINBURGH, UKCairn Energy says tendering for a rig to drill a next phase of wells offshore Senegal is progressing well, as the company and its partners look to build on its deepwater oil discoveries.

They are benefiting from the lower cost environment and significant availability of high-quality rigs, Cairn added.

The partners are assessing how best to phase the development of the large resource base, and how the changes in industry pricing will impact capex costs for the development, including the economic field size.

Cairn operates the Sangomar Deep, Sangomar Offshore, and Rufisque Offshore blocks. Last month ConocoPhillips agreed to sell its 35% interest to Woodside Petroleum.

Elsewhere, Cairn is a partner to Kosmos Energy in Morocco’s offshore Boujdour Maritime contract area. The duo has signed an agreement with ONHYM, on behalf of the government of Morocco, regarding a new petroleum agreement that includes a commitment to acquire 3D seismic by 2Q 2020.

Offshore Malta, Cairn is operator of an exploration study agreement for Area 03, which comprises around 6,000 sq km (2,317 sq mi) of acreage. In April 2014, the company completed a 1,715-km (1,066-mi) broadband 2D seismic survey and is currently evaluating the area.

The results could lead to a decision later this year to commit to a 3D seismic survey to be completed before the end of 2018.

Recently Cairn submitted an application for block 8 offshore Cyprus in a tender for oil and/or gas exploration rights with a consortium that includes Delek Drilling and Avner Oil.

In the Norwegian sector, the company expects to take a decision by 4Q on the best concept for the Skarfjell development, operated by Wintershall.

In the UK North Sea, operator Premier Oil is targeting first oil from the Catcher project in 2H 2017. Total project capex to first oil has decreased by 20% to $1.8 billion, helped by the release of contingencies as work scopes are finished and drilling activities are completed below budget.

The subsea installation campaign remains on schedule for completion by 4Q 2016: the flowline towheads and bundles, as well as the buoy and its mooring system are installed, and risers are currently undergoing installation.

Six wells have now been drilled in the Catcher area, the most recent being the first Burgman production well, with all meeting or exceeding pre-drill expectations for reservoir and fluid properties.

Well sequencing has been modified to avoid costly winter rig moves and work continues on reducing the overall well count without impacting production.

The FPSO hull has now been delivered to the Keppel yard in Singapore and fabrication of the topsides modules is progressing.


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