Heritage Oil to fast-track Uganda oil discoveries

Uchenna Izundu
OGJ International Editor

LONDON, Feb. 23 -- Heritage Oil Corp., Calgary, plans to bring its oil discoveries in the Lake Albert basin in Uganda on stream before 2015, a senior company official said.

The Buffalo-Giraffe complex on Block 1 is considered the largest onshore oil field in sub-Saharan Africa to have been discovered in the last 20 years, said Brian Smith, Heritage Oil's vice-president of exploration (see map, OGJ, Feb. 16, p. 34).

The company is working with partner Tullow Oil Ltd. to put the discovery on a fast track. It said the block holds multibillion bbl of oil potential. "Sufficient oil reserves have been discovered in the Albert basin to exceed the commercial threshold for development," Smith said.

The partners plan to build a 500,000 b/d crude oil export pipeline from Block 1 to Mombasa on Kenya's East Coast. The line's cost is estimated at $1.5-2 billion. Analysis and development studies are under way on that project.

"Land rights are a big issue," said Smith at International Petroleum Week in London. "Uganda is looking at refining solutions—it's very much part of energy policy, and this is looking at a mix of different solutions."

The companies' discoveries followed 12 years of exploration and a relicensing procedure, finding CO2first before hydrocarbons. "The involvement with government is now politically complex, and we have been talking to government about its energy policy and how to develop its resources," Smith said.

Kingfisher field on Block 3A in Lake Albert has light, sweet crude oil, 30-32°, with a low gas-oil ratio and some associated wax. The two wells have been suspended as future producers. Three zones in Kingfisher-2 flowed at 14,364 b/d, and the equivalent zones in Kingfisher-1A flowed at 9,773 b/d.

"Kingfisher could be larger than what we've found so far," Smith said.

Smith added that, on a P90 basis, Buffalo held 111 million boe, Giraffe held 35 million boe, and the Crocodile and Hartebeest structures, also on Block 1, held 16 million boe and 8 million boe respectively. The Giraffe discovery had a gross oil-bearing interval of 89 m, with 38 m of net oil pay.

Offshore drilling is scheduled to start in first-quarter 2010, and the partners are developing specialist technology to carry this out, Smith told OGJ. A mountain rig in modular form would be installed on a barge. "There are logistics of moving a rig into a remote area, and this is in relatively shallow waters," he said.

Both companies are working with barge and drilling contractors and are completing the front-end engineering and design stage.

"There is no guarantee that we will run with either, but we want to evaluate the solutions. There will be a tender at the end of the exercise in the second or third quarter of this year."

Contact Uchenna Izundu at uchennai@pennwell.com.

Related Articles

Eni reports flow test rates for well offshore Congo (Brazzaville)

12/15/2014 A production test conducted by Eni SPA on the Minsala Marine 1 NFW well offshore Congo (Brazzaville) flowed 5,000 b/d of 41° gravity oil and 14 MMs...

Cook to head DONG Energy E&P group

12/15/2014 David B. Cook has been named group executive vice-president and chief executive officer for exploration and production at DONG Energy, Fredericia, ...

Security takes center stage

12/15/2014

Thwarting terrorists, repelling pirates, and routing organized crime: sounds like themes of familiar, big-budget Hollywood movies.

Frac ban exemption made in Broomfield

12/12/2014 A Colorado District Court judge has ruled that a hydraulic fracturing ban in Broomfield, Colo., does not apply to an operator that entered into an ...

Uncertainty lingers about local content rules as Mexico prepares for competitive bid round

12/12/2014 The energy industry around the world has it eyes on Mexico as the country implements constitutional and legislative reforms that are set to open it...

COGA calls frac fluid study "sound science"

12/12/2014 Chemicals used in fracturing fluid appear to be no more toxic than chemicals commonly found in homes, said an analysis by University of Colorado Bo...

Study links methane contamination in water wells to poor well construction-not fracing-in Marcellus

12/12/2014 A new study found that fugitive gas contamination at eight clusters of water wells in the Marcellus and Barnett shale regions might be linked to we...

WoodMac: US unconventional enters new stage

12/12/2014 The unconventional oil and gas revolution is entering into a new stage with drilling and completion techniques pioneered in unconventional plays no...

Santos makes gas discovery in Cooper basin

12/12/2014

Santos Ltd. has made a wet natural gas discovery in its South Australian Cooper basin permit PEL 513.

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected