FAR contests ConocoPhillips’ offshore Senegal sale terms

Offshore staff

MELBOURNE, Australia – ConocoPhillips has confirmed to FAR that it has a right of pre-emption over the proposed sale of its interests offshore Senegal to Woodside Petroleum.

These include the deepwater SNE oil field discovery.

FAR claims, however, that ConocoPhillips has failed to comply with the terms of the joint operating agreement in relation to this sale and that the pre-emption period has therefore not yet begun.

Senegal’s government has requested that both companies reach an amicable solution on the matter.

An updated resources report on SNE that FAR commissioned from RISC Operations has raised the field’s contingent (2C) resources by 14% to 641 MMbbl.

This follows drilling earlier in the year of the appraisal wells BEL-1 and SNE-4. RISC based its assessment on improved understanding of SNE oil field parameters after incorporating the results of the SNE-1 discovery well, the four successful SNE oil field appraisal wells, and associated wireline logging, flow testing, core data and re-processed 3D seismic.

SNE is at an advanced stage of appraisal, although further drilling, testing, and studies will likely be needed to define a potential development.

FAR estimates that the field covers more than 350 sq km (135 sq mi). The five wells drilled to date cover a distance of roughly 9 km (5.6 mi) in a north-south direction (BEL-1 to SNE-3) and 5 km (3.1 mi) to the east (SNE-4).

All of the SNE wells have confirmed a ~100-m (328-ft) gross oil column, high quality 32° API oil, and the presence and correlation of principal reservoir units across the field. Flow tests from SNE-2 and SNE-3 have also indicated the potential for commercial well production rates.

08/23/2016

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Deepwater SNE oil field offshore Senegal
(Courtesy FAR)

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