https://www.roc-taiwan.org/smd_en/post/773.html
Taiwan CPC is scheduled to establish an oversea branch company in Somaliland to partner with Genel Energy to explore oil drilling in Somaliland
The UK-headquartered independent’s Drilling plans are now for the back end of next year or early the year after
Exploration of the SL10B13 license in Somaliland targeted for 2023 is at risk of slipping into the following year, the CEO of London-listed operator Genel Energy warns. “This is a frontier exploration in a fairly remote location, and there are a lot of activities to get through before we actually start drilling,” says Paul Weir.
“Drilling is scheduled for the end of 2023 or early in 2024.” But any delay is not dimming Genel’s excitement about the block’s potential. “This is a tremendous opportunity, a highly prospective block with multiple prospects and over 5bn bl of the prospective resource identified already.
“We have agreed on a first well location, which is targeting stacked Mesozoic reservoir objectives with individual prospective resource estimates ranging between 100mn and 200mn bl each,” Weir continues.
The firm holds two licenses in Somaliland֫: SL10B13—in which Genel holds a 51pc operated stake, having farmed out the reminder to Taiwanese NOC CPC in December 2021—and Odewayne—where Genel has 50pc and is operator, UK E&P firm Afentra has 36pc and domestic player Petrosoma has 16pc—but the former is much more at the front of its mind.
“The SL10B13 block is our focus because, following some prolonged and very rigorous scientific study, we consider that block to be the one that holds by far the greatest geological potential,” says Weir. “We have got a drill-ready prospect identified; we have got a surface location identified. We have elected to simply go for the most exciting opportunity. The seismic on Odewayne was not nearly as compelling.”
Genel sees securing CPC as a farm-in partner as a validation of its strategy. “It is an important demonstration how we think about capex risk,” says the firm’s CFO, Luke Clements. “We have sat on that Somaliland prospect for a long time, been excited about it for a long time and we have wanted to explore it for a long time.
“We did not want to do it with 100pc equity on it, so we waited. The commercial and asset team has done a great job to bring in a partner, and we are delighted to have a very good partner [which is] sharing the journey with us. It is an example of our business model in action and our patience,” Clements continues.
Somaliland is a de facto sovereign state in the Horn of Africa on the southern coast of the Gulf of Aden. It is bordered by Djibouti to the northwest, Ethiopia to the south and west, and the rest of Somalia to the east.
17 January 2023
Genel Energy plc
Trading and operations update
2023 OUTLOOK AND GUIDANCE
Up to c.$25 million expenditure in Somaliland, as we progress towards the spudding of theToosan-1 well in this frontier basin
PRE-PRODUCTION BUSINESS
• Somaliland
- Preparation continues for the drilling of the Toosan-1 well on the highly prospective SL10B13
block (51% working interest and operator) - The Toosan prospect contains stacked Mesozoic reservoir objectives, with multiple individual
prospective resource estimates each ranging from 100 to 200 MMbbls - The geotechnical survey has now completed as we progress towards construction of the well
pad. Environmental and social impact assessments are underway, and tendering has
commenced for the rig and well services - Genel continues to target a spud date in the next 12-18 months, acknowledging the challenges
of operating in such a frontier area with limited existing infrastructure
1 Like
1 - 2 years to drill a well?
At the very least.
Most frontier exploration is now offshore, where a single exploratory well can cost $150 million, and the success rate is about one in five. It typically takes several years before an exploratory well can be brought into production. Commercial success rates for onshore exploratory wells rose to 53% in 2017, from 30% in 2016.
Because proven reserves are almost as valuable as oil itself, exploration companies are becoming increasingly hi-tech and are investing heavily in data analytics. Drilling companies are gathering digital data directly from their wells.
The four phases of the oil and gas extraction process are as follows:
- Exploration
- Well development
- Production
- Site abandonment
