Oil price heating and warming global oil and gas exploration and development
The UK launched the 31st round of licensing schemes, providing a total of 1,766 blocks in underdeveloped areas of the British continental shelf. In July, a total of 32 large companies participated in the operation of asset transactions, with a total transaction volume of more than $1.2 billion. Major projects include: field development in the Norwegian Sea, Europe's Fogelberg project; Calub, Hilala, Kaombo and Sankofa-GyeNyame projects in Africa; Ichthys, BungkaPakma, 2A and Cluster 2B projects in Asia Pacific; Rakuscheckhnoye in Russia/CIS region, AbshronEPS and ShahDeniz Phase II Project; Mount Providence and North Bay Project in the Americas.
Latin America: In July, Latin America announced two important oil and gas discoveries. Ecopetrol found dry gas and light oil at the approximately 1153-meter-deep Columbia Buffalo-1 well. The first test was about 93,400 cubic meters per day, indicating a large natural gas reserve in the central part of the country. Elsewhere, Equinor announced another oil discovery in the Gunsuma field, which Strata expects will be commercially developed in conjunction with Carcara. In the US Gulf of Mexico, Taros Energy began operations. Located in Providence, in the 28th gorge of Mississippi, the water depth is about 564 meters and the current total production is 3,850 barrels per day, of which 88% is 33° API gravity oil. In Canada, Equinor develops Beibu Gulf oil through subsea connections. The first oil is expected to be mined in 2025, eventually producing about 300 million barrels of crude oil.
Asia Pacific: Woodside Petroleum has discovered two important natural gas resources in Asia. The Flanders-1 is a deepwater exploration well drilled offshore in Western Australia. The well is considered a natural gas discovery and commercialization project and is currently under evaluation. Its prospects may include tens of billions of cubic meters of resources. Woodside also announced that natural gas was being discovered in the Ansdic-1 well in a deepwater area off the Rakhine Basin, and the well was being evaluated.
In July, Inpex launched the production of the Ichthys LNG project in the Browse Basin off Australia. The project is expected to produce approximately 2.83 million cubic meters per day of natural gas and 100,000 barrels per day of condensate. Natural gas will be transported through the submarine pipeline to a land-based LNG plant, producing approximately 8.4 million tons of LNG per year for shipment to the Asian supply market. In other parts of Asia, production in the commercial area of ??Malaysia and Vietnam began in phase 6, launching the natural gas project for the PM3CAA field, which is expected to begin operations in December 2019 and December 2022, respectively.
Europe: The UK launched the 31st round of offshore permits in the most influential border areas. There are 1,766 blocks covering an area of ??370,000 square kilometers. It is now open for auction and the blocks are covered by many ground buildings. In western Scotland, in the eastern Shetland and the central highlands of the North Sea, in some parts of the English Channel and the southwest, there is little or no drilling history. Therefore, the authorities seem to be interested in encouraging further exploration activities in the border areas, which may be to calm people's concerns about low levels of offshore exploration. The UK North Sea crude oil production is expected to decline from the beginning of 2020.
Middle East: Abu Dhabi National Oil Company (ADNOC) and China National Petroleum Corporation (CNPC) signed a $1.6 billion contract to serve the world's largest three-dimensional onshore and offshore seismic exploration company, onshore and The offshore area covers an area of ??53,000 square kilometers. The survey is scheduled to be completed in 2024 and is in line with the UAE's 2030 Smart Growth Strategy.
Russia and the Commonwealth of Independent States: The Caspian and CIS regions are busy with the development of upstream projects. Lukoil made the final investment decision for its Rakuscheckhnoye project in the Caspian Sea, Russia, which will be developed as a seabed bond back to the Vladimir Filanovsky platform. In Azerbaijan, BP began producing natural gas from the ShahDeniz Phase 2 project in the South Caspian Sea.
Africa: Eni has discovered oil on the Faghur Basin, about 4,252 meters deep in the SWMB1-X well in Egypt, and it is expected that the deep geological sequence will have high exploration and production potential. In addition, Vannah Oil Company discovered oil for the third time in the exploration of the Agadem Rift Basin, and further development plans will depend on production test results. The development of special projects in Africa includes new discoveries in the oil fields of Alho, Cominhos and Cominhos in Kaombo, which will be backed up by the Cambo North FPSO. The African Environment Institute has also made some important progress in Africa. Eni began gas production from the second phase of Bahr Essalam outside Libya. It is expected to increase the project by about 400, with a daily output of 28,300 cubic meters to 31 million cubic meters. Eni also recently started producing natural gas in the Sankofa-GyeNyame field through JohnAgyekum KufuorFPSO.